FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2015

FAIR VALUE OF FINANCIAL INSTRUMENTS

Schedule of assets and liabilities measured at fair value on a recurring basis

The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of September 30, 2015 (Successor Company):

	Level 1		Level 2		Level 3		Total
	(Dollars In Thousands)
Assets:
Fixed maturity securities - available-for-sale
Residential mortgage-backed securities	$	—	$	1,615,819	$	3	$	1,615,822
Commercial mortgage-backed securities	—		1,276,615		—		1,276,615
Other asset-backed securities	—		207,263		585,751		793,014
U.S. government-related securities	1,102,371		515,101		—		1,617,472
State, municipalities, and political subdivisions	—		1,613,485		—		1,613,485
Other government-related securities	—		18,884		—		18,884
Corporate securities	83		24,844,977		1,048,738		25,893,798
Preferred stock	62,112		—		—		62,112
Total fixed maturity securities - available-for-sale	1,164,566		30,092,144		1,634,492		32,891,202
Fixed maturity securities - trading
Residential mortgage-backed securities	—		288,280		—		288,280
Commercial mortgage-backed securities	—		148,640		—		148,640
Other asset-backed securities	—		121,937		155,153		277,090
U.S. government-related securities	236,425		4,880		—		241,305
State, municipalities, and political subdivisions	—		310,973		—		310,973
Other government-related securities	—		59,527		—		59,527
Corporate securities	—		1,359,582		18,319		1,377,901
Preferred stock	6,925		—		—		6,925
Total fixed maturity securities - trading	243,350		2,293,819		173,472		2,710,641
Total fixed maturity securities	1,407,916		32,385,963		1,807,964		35,601,843
Equity securities	606,400		11,792		66,504		684,696
Other long-term investments (1)	122,120		172,937		55,750		350,807
Short-term investments	228,621		4,716		—		233,337
Total investments	2,365,057		32,575,408		1,930,218		36,870,683
Cash	517,900		—		—		517,900
Assets related to separate accounts
Variable annuity	12,646,751		—		—		12,646,751
Variable universal life	792,800		—		—		792,800
Total assets measured at fair value on a recurring basis	$	16,322,508	$	32,575,408	$	1,930,218	$	50,828,134
Liabilities:
Annuity account balances(2)	$	—	$	—	$	95,198	$	95,198
Other liabilities (1)	22,085		138,496		383,809		544,390
Total liabilities measured at fair value on a recurring basis	$	22,085	$	138,496	$	479,007	$	639,588

(1)Includes certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 (Predecessor Company):

	Level 1		Level 2		Level 3		Total
	(Dollars In Thousands)
Assets:
Fixed maturity securities - available-for-sale
Residential mortgage-backed securities	$	—	$	1,418,255	$	3	$	1,418,258
Commercial mortgage-backed securities	—		1,177,252		—		1,177,252
Other asset-backed securities	—		275,415		563,961		839,376
U.S. government-related securities	1,165,188		263,707		—		1,428,895
State, municipalities, and political subdivisions	—		1,684,014		3,675		1,687,689
Other government-related securities	—		20,172		—		20,172
Corporate securities	132		26,039,963		1,325,683		27,365,778
Total fixed maturity securities - available-for-sale	1,165,320		30,878,778		1,893,322		33,937,420
Fixed maturity securities - trading
Residential mortgage-backed securities	—		288,114		—		288,114
Commercial mortgage-backed securities	—		151,111		—		151,111
Other asset-backed securities	—		105,118		169,461		274,579
U.S. government-related securities	245,563		4,898		—		250,461
State, municipalities, and political subdivisions	—		325,446		—		325,446
Other government-related securities	—		57,032		—		57,032
Corporate securities	—		1,447,333		24,744		1,472,077
Total fixed maturity securities - trading	245,563		2,379,052		194,205		2,818,820
Total fixed maturity securities	1,410,883		33,257,830		2,087,527		36,756,240
Equity securities	590,832		99,267		66,691		756,790
Other long-term investments (1)	119,997		106,079		44,625		270,701
Short-term investments	243,436		3,281		—		246,717
Total investments	2,365,148		33,466,457		2,198,843		38,030,448
Cash	268,286		—		—		268,286
Other assets	—		—		—		—
Assets related to separate accounts
Variable annuity	13,157,429		—		—		13,157,429
Variable universal life	834,940		—		—		834,940
Total assets measured at fair value on a recurring basis	$	16,625,803	$	33,466,457	$	2,198,843	$	52,291,103
Liabilities:
Annuity account balances (2)	$	—	$	—	$	97,825	$	97,825
Other liabilities (1)	62,146		61,046		506,343		629,535
Total liabilities measured at fair value on a recurring basis	$	62,146	$	61,046	$	604,168	$	727,360

(1)Includes certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

Schedule of valuation method for material financial instruments included in Level 3, as well as the unobservable inputs used in the valuation of those financial instruments

	Successor
	Company
	Fair Value
	As of			Valuation	Unobservable	Range
	September 30, 2015			Technique	Input	(Weighted Average)
	(Dollars In Thousands)
Assets:
Other asset-backed securities	$	585,751		Discounted cash flow	Liquidity premium	0.43% - 1.49% (0.70%)
					Paydown rate	9.85% - 15.41% (13.17%)
Corporate securities	1,022,464			Discounted cash flow	Spread over treasury	0.74% - 12.18% (2.45%)
Liabilities:
Embedded derivatives - GMWB(1)	$		14,454	Actuarial cash flow model	Mortality	1994 MGDB table with
						company experience
					Lapse	0.3% - 15%, depending on
						product/duration/funded
						status of guarantee
					Utilization	99%. 10% of policies have
						a one-time over-utilization
						of 400%
					Nonperformance risk	0.21% - 1.17%
Annuity account balances(2)		95,198		Actuarial cash flow model	Asset earned rate	4.53% - 5.67%
					Expenses	$81 per policy
					Withdrawal rate	2.20%
					Mortality	1994 MGDB table with
						company experience
					Lapse	2.2% - 33.0%, depending
						on duration/surrender
						charge period
					Return on assets	1.50% - 1.85% depending on
						surrender charge period
					Nonperformance risk	0.21% - 1.17%
Embedded derivative - FIA	76,709			Actuarial cash flow model	Expenses	$81.5 per policy
					Withdrawal rate	1.1% - 4.5% depending on
						duration and tax qualification
					Mortality	1994 MGDB table with
						company experience
					Lapse	2.5% - 40.0%, depending on
						on duration/surrender
						charge period
					Nonperformance risk	0.21% - 1.17%
Embedded derivative - IUL	21,711			Actuarial cash flow model	Mortality	38% - 153% of 2015
						VBT Primary Tables
					Lapse	0.5% - 10.0%, depending on
						duration/distribution channel
						and smoking class
					Nonperformance risk	0.21% - 1.17%

(1)The fair value for the GMWB embedded derivative is presented as a net liability for the purposes of this chart. Excludes modified coinsurance arrangements.

(2)Represents liabilities related to fixed indexed annuities.

	Predecessor
	Company
	Fair Value
	As of		Valuation	Unobservable	Range
	December 31, 2014		Technique	Input	(Weighted Average)
	(Dollars In Thousands)
Assets:
Other asset-backed securities	$	563,752	Discounted cash flow	Liquidity premium	0.39% - 1.49% (0.69%)
				Paydown rate	9.70% - 15.80% (12.08%)
Corporate securities	1,282,864		Discounted cash flow	Spread over	0.33% - 7.50% (2.19%)
				treasury
Liabilities:
Embedded derivatives - GMWB(1)	$	25,927	Actuarial cash flow model	Mortality	44.5% to 100% of 1994
					MGDB table
				Lapse	0.25% - 17%, depending on
					product/duration/funded
					status of guarantee
				Utilization	97% - 101%
				Nonperformance risk	0.12% - 0.96%
Annuity account balances(2)	97,825		Actuarial cash flow model	Asset earned rate	3.86% - 5.92%
				Expenses	$88 - $102 per policy
				Withdrawal rate	2.20%
				Mortality	49% to 80% of 1994
					MGDB table
				Lapse	2.2% - 33.0%, depending
					on duration/surrender
					charge period
				Return on assets	1.50% - 1.85% depending on
					surrender charge period
				Nonperformance risk	0.12% - 0.96%
Embedded derivative - FIA	124,465		Actuarial cash flow model	Expenses	$83 - $97 per policy
				Withdrawal rate	1.1% - 4.5% depending on
					duration and tax qualification
				Mortality	49% to 80% of 1994
					MGDB table
				Lapse	2.5% - 40.0%, depending
					on duration/surrender
					charge period
				Nonperformance risk	0.12% - 0.96%
Embedded derivative - IUL	6,691		Actuarial cash flow model	Mortality	37% - 74% of 2008
					VBT Primary Tables
				Lapse	0.5% - 10.0%, depending
					on duration/distribution
					channel and smoking class
				Nonperformance risk	0.12% - 0.96%

(1)The fair value for the GMWB embedded derivative is presented as a net liability, for the purposes of this chart.  Excludes modified coinsurance arrangements.

(2)Represents liabilities related to fixed indexed annuities.

Schedule of reconciliation of the beginning and ending balances for fair value measurements, for which the Company has used significant unobservable inputs (Level 3)

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the three months ended September 30, 2015 (Successor Company), for which the Company has used significant unobservable inputs (Level 3):

																															Total
																															Gains (losses)
			Total					Total																							included in
			Realized and Unrealized					Realized and Unrealized																							Earnings
			Gains					Losses																							related to
					Included in						Included in																				Instruments
					Other						Other												Transfers								still held at
	Beginning		Included in		Comprehensive			Included in			Comprehensive												in/out of						Ending		the Reporting
	Balance		Earnings		Income			Earnings			Income			Purchases		Sales			Issuances		Settlements		Level 3			Other			Balance		Date
	(Dollars In Thousands)
Assets:
Fixed maturity securities available-for-sale
Residential mortgage-backed securities	$	3	$	—	$	—		$	—		$	—		$	—	$	—		$	—	$	—	$	—		$	—		$	3	$	—
Commercial mortgage-backed securities	—		—		—			—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	590,885		—		—			—			(4,185		)	—		—			—		—		—			(949		)	585,751		—
U.S. government-related securities	—		—		—			—			—			—		—			—		—		—			—			—		—
States, municipals, and political subdivisions	—		—		—			—			—			—		—			—		—		—			—			—		—
Other government-related securities	—		—		—			—			—			—		—			—		—		—			—			—		—
Corporate securities	1,111,431		76		5,939			(164		)	(8,800		)	62,183		(101,161		)	—		—		(20,037		)	(729		)	1,048,738		—
Total fixed maturity securities - available-for-sale	1,702,319		76		5,939			(164		)	(12,985		)	62,183		(101,161		)	—		—		(20,037		)	(1,678		)	1,634,492		—
Fixed maturity securities - trading
Residential mortgage-backed securities	—		—		—			—			—			—		—			—		—		—			—			—		—
Commercial mortgage-backed securities	—		—		—			—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	160,594		83		—			(1,640		)	—			2,000		(6,001		)	—		—		—			117			155,153		(1,500		)
U.S. government-related securities	—		—		—			—			—			—		—			—		—		—			—			—		—
States, municipals and political subdivisions	—		—		—			—			—			—		—			—		—		—			—			—		—
Other government-related securities	—		—		—			—			—			—		—			—		—		—			—			—		—
Corporate securities	19,316		73		—			(970		)	—			—		(56		)	—		—		—			(44		)	18,319		(897		)
Total fixed maturity securities - trading	179,910		156		—			(2,610		)	—			2,000		(6,057		)	—		—		—			73			173,472		(2,397		)
Total fixed maturity securities	1,882,229		232		5,939			(2,774		)	(12,985		)	64,183		(107,218		)	—		—		(20,037		)	(1,605		)	1,807,964		(2,397		)
Equity securities	66,460		—		44			—			—			—		—			—		—		—			—			66,504		—
Other long-term investments(1)	100,519		—		—			(44,769		)	—			—		—			—		—		—			—			55,750		(44,769		)
Short-term investments	—		—		—			—			—			—		—			—		—		—			—			—		—
Total investments	2,049,208		232		5,983			(47,543		)	(12,985		)	64,183		(107,218		)	—		—		(20,037		)	(1,605		)	1,930,218		(47,166		)
Total assets measured at fair value on a recurring basis	$	2,049,208	$	232	$	5,983		$	(47,543	)	$	(12,985	)	$	64,183	$	(107,218	)	$	—	$	—	$	(20,037	)	$	(1,605	)	$	1,930,218	$	(47,166	)
Liabilities:
Annuity account balances(2)	$	95,178	$	—	$	(3,173	)	$	—		$	—		$	—	$	—		$	93	$	3,246	—			$	—		$	95,198	$	—
Other liabilities(1)	342,945		17,329		—			(58,193		)	—			—		—			—		—		—			—			383,809		(40,864		)
Total liabilities measured at fair value on a recurring basis	$	438,123	$	17,329	$	(3,173	)	$	(58,193	)	$	—		$	—	$	—		$	93	$	3,246	$	—		$	—		$	479,007	$	(40,864	)

(1)Represents certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the period of February 1, 2015 to September 30, 2015 (Successor Company), for which the Company has used significant unobservable inputs (Level 3):

																														Total
																														Gains (losses)
			Total				Total																							included in
			Realized and Unrealized				Realized and Unrealized																							Earnings
			Gains				Losses																							related to
					Included in					Included in																				Instruments
					Other					Other												Transfers								still held at
	Beginning		Included in		Comprehensive		Included in			Comprehensive												in/out of						Ending		the Reporting
	Balance		Earnings		Income		Earnings			Income			Purchases		Sales			Issuances		Settlements		Level 3			Other			Balance		Date
	(Dollars In Thousands)
Assets:
Fixed maturity securities available-for-sale
Residential mortgage-backed securities	$	3	$	—	$	—	$	—		$	—		$	—	$	—		$	—	$	—	$	—		$	—		$	3	$	—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	603,646		—		165		(92		)	(17,076		)	—		(127		)	—		—		—			(765		)	585,751		—
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals, and political subdivisions	3,675		—		—		—			—			—		(3,675		)	—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	1,307,259		4,367		21,558		(851		)	(33,047		)	174,112		(356,096		)	—		—		(61,890		)	(6,674		)	1,048,738		—
Total fixed maturity securities - available-for-sale	1,914,583		4,367		21,723		(943		)	(50,123		)	174,112		(359,898		)	—		—		(61,890		)	(7,439		)	1,634,492		—
Fixed maturity securities - trading
Residential mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	169,473		4,032		—		(6,813		)	—			2,000		(13,877		)	—		—		—			338			155,153		(6,896		)
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals and political subdivisions	—		—		—		—			—			—		—			—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	25,130		247		—		(1,269		)	—			—		(5,640		)	—		—		—			(149		)	18,319		(1,546		)
Total fixed maturity securities - trading	194,603		4,279		—		(8,082		)	—			2,000		(19,517		)	—		—		—			189			173,472		(8,442		)
Total fixed maturity securities	2,109,186		8,646		21,723		(9,025		)	(50,123		)	176,112		(379,415		)	—		—		(61,890		)	(7,250		)	1,807,964		(8,442		)
Equity securities	66,691		—		44		—			—			—		(231		)	—		—		—			—			66,504		—
Other long-term investments(1)	64,200		40,032		—		(48,482		)	—			—		—			—		—		—			—			55,750		(8,450		)
Short-term investments	—		—		—		—			—			—		—			—		—		—			—			—		—
Total investments	2,240,077		48,678		21,767		(57,507		)	(50,123		)	176,112		(379,646		)	—		—		(61,890		)	(7,250		)	1,930,218		(16,892		)
Total assets measured at fair value on a recurring basis	$	2,240,077	$	48,678	$	21,767	$	(57,507	)	$	(50,123	)	$	176,112	$	(379,646	)	$	—	$	—	$	(61,890	)	$	(7,250	)	$	1,930,218	$	(16,892	)
Liabilities:
Annuity account balances(2)	$	98,279	$	—	$	—	$	(4,716	)	$	—		$	—	$	—		$	179	$	7,976	$	—		$	—		$	95,198	$	—
Other liabilities(1)	530,118		230,183		—		(83,874		)	—			—		—			—		—		—			—			383,809		146,309
Total liabilities measured at fair value on a recurring basis	$	628,397	$	230,183	$	—	$	(88,590	)	$	—		$	—	$	—		$	179	$	7,976	$	—		$	—		$	479,007	$	146,309

(1)Represents certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for period of January 1, 2015 to January 31, 2015 (Predecessor Company), for which the Company has used significant unobservable inputs (Level 3):

																													Total
																													Gains (losses)
			Total				Total																						included in
			Realized and Unrealized				Realized and Unrealized																						Earnings
			Gains				Losses																						related to
					Included in					Included in																			Instruments
					Other					Other												Transfers							still held at
	Beginning		Included in		Comprehensive		Included in			Comprehensive												in/out of					Ending		the Reporting
	Balance		Earnings		Income		Earnings			Income			Purchases		Sales			Issuances		Settlements		Level 3		Other			Balance		Date
	(Dollars In Thousands)
Assets:
Fixed maturity securities available-for-sale
Residential mortgage-backed securities	$	3	$	—	$	—	$	—		$	—		$	—	$	—		$	—	$	—	$	—	$	—		$	3	$	—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Other asset-backed securities	563,961		—		—		—			(3,867		)	—		(32		)	—		—		43,205		379			603,646		—
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
States, municipals, and political subdivisions	3,675		—		—		—			—			—		—			—		—		—		—			3,675		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Corporate securities	1,325,683		—		12,282		—			(23,029		)	—		(7,062		)	—		—		—		(615		)	1,307,259		—
Total fixed maturity securities - available-for-sale	1,893,322		—		12,282		—			(26,896		)	—		(7,094		)	—		—		43,205		(236		)	1,914,583		—
Fixed maturity securities - trading
Residential mortgage-backed securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Other asset-backed securities	169,461		586		—		(139		)	—			—		(472		)	—		—		—		37			169,473		447
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
States, municipals and political subdivisions	—		—		—		—			—			—		—			—		—		—		—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—		—			—		—
Corporate securities	24,744		602		—		(196		)	—			—		(20		)	—		—		—		—			25,130		406
Total fixed maturity securities - trading	194,205		1,188		—		(335		)	—			—		(492		)	—		—		—		37			194,603		853
Total fixed maturity securities	2,087,527		1,188		12,282		(335		)	(26,896		)	—		(7,586		)	—		—		43,205		(199		)	2,109,186		853
Equity securities	66,691		—		—		—			—			—		—			—		—		—		—			66,691		—
Other long-term investments(1)	44,625		16,617		—		(15,166		)	—			—		—			—		—		—		—			46,076		1,451
Short-term investments	—		—		—		—			—			—		—			—		—		—		—			—		—
Total investments	2,198,843		17,805		12,282		(15,501		)	(26,896		)	—		(7,586		)	—		—		43,205		(199		)	2,221,953		2,304
Total assets measured at fair value on a recurring basis	$	2,198,843	$	17,805	$	12,282	$	(15,501	)	$	(26,896	)	$	—	$	(7,586	)	$	—	$	—	$	43,205	$	(199	)	$	2,221,953	$	2,304
Liabilities:
Annuity account balances(2)	$	97,825	$	—	$	—	$	(536	)	$	—		$	—	$	—		$	7	$	419	$	—	$	—		$	97,949	$	—
Other liabilities(1)	506,343		61		—		(125,995		)	—			—		—			—		—		—		—			632,277		(125,934		)
Total liabilities measured at fair value on a recurring basis	$	604,168	$	61	$	—	$	(126,531	)	$	—		$	—	$	—		$	7	$	419	$	—	$	—		$	730,226	$	(125,934	)

(1)Represents certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the three months ended September 30, 2014 (Predecessor Company), for which the Company has used significant unobservable inputs (Level 3):

																														Total
																														Gains (losses)
			Total				Total																							included in
			Realized and Unrealized				Realized and Unrealized																							Earnings
			Gains				Losses																							related to
					Included in					Included in																				Instruments
					Other					Other												Transfers								still held at
	Beginning		Included in		Comprehensive		Included in			Comprehensive												in/out of						Ending		the Reporting
	Balance		Earnings		Income		Earnings			Income			Purchases		Sales			Issuances		Settlements		Level 3			Other			Balance		Date
	(Dollars In Thousands)
Assets:
Fixed maturity securities available-for-sale
Residential mortgage-backed securities	$	10	$	—	$	—	$	—		$	(1	)	$	—	$	(5	)	$	—	$	—	$	—		$	1		$	5	$	—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	568,097		—		2,161		(71		)	(4,299		)	—		(140		)	—		—		—			(380		)	565,368		—
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals, and political subdivisions	3,675		—		—		—			—			—		—			—		—		—			—			3,675		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	1,524,297		201		8,435		—			(9,452		)	11,797		(59,352		)	—		—		(96,565		)	(1,555		)	1,377,806		—
Total fixed maturity securities - available-for-sale	2,096,079		201		10,596		(71		)	(13,752		)	11,797		(59,497		)	—		—		(96,565		)	(1,934		)	1,946,854		—
Fixed maturity securities - trading
Residential mortgage-backed securities	842		11		—		—			—			—		—			—		—		(853		)	—			—		—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	176,386		1,834		—		(837		)	—			—		(7,137		)	—		—		—			430			170,676		1,287
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals and political subdivisions	—		—		—		—			—			—		—			—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	31,520		182		—		(676		)	—			—		(5,583		)	—		—		(2,518		)	252			23,177		234
Total fixed maturity securities - trading	208,748		2,027		—		(1,513		)	—			—		(12,720		)	—		—		(3,371		)	682			193,853		1,521
Total fixed maturity securities	2,304,827		2,228		10,596		(1,584		)	(13,752		)	11,797		(72,217		)	—		—		(99,936		)	(1,252		)	2,140,707		1,521
Equity securities	77,882		—		—		—			(91		)	—		(445		)	—		—		(10,651		)	—			66,695		—
Other long-term investments(1)	67,222		895		—		(6,843		)	—			—		—			—		—		—			—			61,274		(5,948		)
Short-term investments	—		—		—		—			—			—		—			—		—		—			—			—		—
Total investments	2,449,931		3,123		10,596		(8,427		)	(13,843		)	11,797		(72,662		)	—		—		(110,587		)	(1,252		)	2,268,676		(4,427		)
Total assets measured at fair value on a recurring basis	$	2,449,931	$	3,123	$	10,596	$	(8,427	)	$	(13,843	)	$	11,797	$	(72,662	)	$	—	$	—	$	(110,587	)	$	(1,252	)	$	2,268,676	$	(4,427	)
Liabilities:
Annuity account balances(2)	$	102,456	$	862	$	—	$	—		$	—		$	—	$	—		$	125	$	3,590	$	—		$	—		$	98,129	$	—
Other liabilities(1)	399,669		22,317		—		(42,833		)	—			—		—			—		—		—			—			420,185		(20,516		)
Total liabilities measured at fair value on a recurring basis	$	502,125	$	23,179	$	—	$	(42,833	)	$	—		$	—	$	—		$	125	$	3,590	$	—		$	—		$	518,314	$	(20,516	)

(1)Represents certain freestanding and embedded derivatives.

(2)Represents liabilities related to fixed indexed annuities.

The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the nine months ended September 30, 2014 (Predecessor Company), for which the Company has used significant unobservable inputs (Level 3):

																														Total
																														Gains (losses)
			Total				Total																							included in
			Realized and Unrealized				Realized and Unrealized																							Earnings
			Gains				Losses																							related to
					Included in					Included in																				Instruments
					Other					Other												Transfers								still held at
	Beginning		Included in		Comprehensive		Included in			Comprehensive												in/out of						Ending		the Reporting
	Balance		Earnings		Income		Earnings			Income			Purchases		Sales			Issuances		Settlements		Level 3			Other			Balance		Date
	(Dollars In Thousands)
Assets:
Fixed maturity securities available-for-sale
Residential mortgage-backed securities	$	28	$	—	$	—	$	—		$	(1	)	$	—	$	(23	)	$	—	$	—	$	—		$	1		$	5	$	—
Commercial mortgage-backed securities	—		—				—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	545,808		—		36,227		(71		)	(5,532		)	—		(9,934		)	—		—		—			(1,130		)	565,368		—
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals, and political subdivisions	3,675		—		—		—			—			—		—			—		—		—			—			3,675		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	1,549,940		1,170		62,723		—			(16,717		)	102,029		(162,391		)	—		—		(151,858		)	(7,090		)	1,377,806		—
Total fixed maturity securities - available-for-sale	2,099,451		1,170		98,950		(71		)	(22,250		)	102,029		(172,348		)	—		—		(151,858		)	(8,219		)	1,946,854		—
Fixed maturity securities - trading
Residential mortgage-backed securities	—		11		—		—			—			842		—			—		—		(853		)	—			—		—
Commercial mortgage-backed securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Other asset-backed securities	194,977		8,685		—		(3,951		)	—			—		(29,832		)	—		—		—			797			170,676		1,959
U.S. government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
States, municipals and political subdivisions	—		—		—		—			—			—		—			—		—		—			—			—		—
Other government-related securities	—		—		—		—			—			—		—			—		—		—			—			—		—
Corporate securities	29,199		1,060		—		(729		)	—			4,059		(10,693		)	—		—		4			277			23,177		(1		)
Total fixed maturity securities - trading	224,176		9,756		—		(4,680		)	—			4,901		(40,525		)	—		—		(849		)	1,074			193,853		1,958
Total fixed maturity securities	2,323,627		10,926		98,950		(4,751		)	(22,250		)	106,930		(212,873		)	—		—		(152,707		)	(7,145		)	2,140,707		1,958
Equity securities	67,979		—		1,192		—			(257		)	9,551		(1,119		)	—		—		(10,651		)	—			66,695		—
Other long-term investments(1)	98,886		1,320		—		(38,932		)	—			—		—			—		—		—			—			61,274		(37,612		)
Short-term investments	—		—		—		—			—			—		—			—		—		—			—			—		—
Total investments	2,490,492		12,246		100,142		(43,683		)	(22,507		)	116,481		(213,992		)	—		—		(163,358		)	(7,145		)	2,268,676		(35,654		)
Total assets measured at fair value on a recurring basis	$	2,490,492	$	12,246	$	100,142	$	(43,683	)	$	(22,507	)	$	116,481	$	(213,992	)	$	—	$	—	$	(163,358	)	$	(7,145	)	$	2,268,676	$	(35,654	)
Liabilities:
Annuity account balances(2)	$	107,000	$	—	$	—	$	(2,261	)	$	—		$	—	$	—		$	300	$	11,432	$	—		$	—		$	98,129	$	—
Other liabilities(1)	233,738		22,342		—		(208,789		)	—			—		—			—		—		—			—			420,185		(186,447		)
Total liabilities measured at fair value on a recurring basis	$	340,738	$	22,342	$	—	$	(211,050	)	$	—		$	—	$	—		$	300	$	11,432	$	—		$	—		$	518,314	$	(186,447	)

Schedule of the carrying amounts and estimated fair value of the Company's financial instruments

		Successor				Predecessor
		Company				Company
		As of				As of
		September 30, 2015				December 31, 2014
	Fair Value	Carrying				Carrying
	Level	Amounts		Fair Values		Amounts		Fair Values
		(Dollars In Thousands)				(Dollars In Thousands)
Assets:
Mortgage loans on real estate	3	$	5,728,237	$	5,590,446	$	5,133,780	$	5,524,059
Policy loans	3	1,706,402		1,706,402		1,758,237		1,758,237
Fixed maturities, held-to-maturity(1)	3	579,329		518,363		435,000		458,422
Liabilities:
Stable value product account balances	3	$	1,914,093	$	1,903,615	$	1,959,488	$	1,973,624
Annuity account balances	3	10,754,799		10,321,313		10,950,729		10,491,775
Debt:
Non-recourse funding obligations(2)	3	$	1,939,078	$	1,630,091	$	1,527,752	$	1,753,183

Except as noted below, fair values were estimated using quoted market prices.
(1)	Security purchased from unconsolidated subsidiary, Red Mountain LLC.
(2)	Of this carrying amount, $485.0 million, fair value of $496.7 million, as of September 30, 2015 (Successor Company), and $435.0 million, fair value of $461.4 million, as of December 31, 2014 (Predecessor Company), relates to non-recourse funding obligations issued by Golden Gate V.