Investments

12 Months Ended

Dec. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Investments

Note 4—Investments

Portfolio Composition: Summaries of fixed maturities available for sale by cost or amortized cost and estimated fair value at December 31, 2019 and 2018 are as follows. Redeemable preferred stock is included within the corporates by sector.

	At December 31, 2019
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair  Value(1)		% of Total Fixed Maturities(2)
Fixed maturities available for sale:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	396,079	$	41,737	$	(296)	$	437,520	2
States, municipalities, and political subdivisions	1,559,736		158,546		(626)		1,717,656		9
Foreign governments	25,874		2,073		(396)		27,551		—
Corporates, by sector:
Financial	4,101,917		701,196		(22,307)		4,780,806		25
Utilities	1,937,738		416,114		(1,565)		2,352,287		13
Energy	1,678,969		269,640		(33,725)		1,914,884		10
Other corporate sectors	6,514,677		955,908		(16,765)		7,453,820		40
Total corporates	14,233,301		2,342,858		(74,362)		16,501,797		88
Collateralized debt obligations	56,990		24,298		(7,184)		74,104		—
Other asset-backed securities	143,796		5,094		(371)		148,519		1
Total fixed maturities	$	16,415,776	$	2,574,606	$	(83,235)	$	18,907,147	100

(1)Amount reported in the balance sheet.

(2)At fair value.

	At December 31, 2018
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair  Value(1)		% of Total Fixed Maturities(2)
Fixed maturities available for sale:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	390,351	$	5,104	$	(2,787)	$	392,668	2
States, municipalities, and political subdivisions	1,354,810		83,600		(1,750)		1,436,660		9
Foreign governments	19,006		1,810		—		20,816		—
Corporates, by sector:
Financial	3,759,768		262,875		(87,515)		3,935,128		24
Utilities	1,989,506		217,846		(24,399)		2,182,953		13
Energy	1,652,700		93,880		(62,371)		1,684,209		10
Other corporate sectors	6,382,707		283,524		(242,509)		6,423,722		40
Total corporates	13,784,681		858,125		(416,794)		14,226,012		87
Collateralized debt obligations	57,769		22,014		(6,414)		73,369		1
Other asset-backed securities	146,854		2,187		(634)		148,407		1
Total fixed maturities	$	15,753,471	$	972,840	$	(428,379)	$	16,297,932	100

(1)Amount reported in the balance sheet.

(2)At fair value.

A schedule of fixed maturities available for sale by contractual maturity date at December 31, 2019 is shown below on an amortized cost basis and on a fair value basis. Actual disposition dates could differ from contractual maturities due to call or prepayment provisions.

	At December 31, 2019
	Amortized Cost		Fair Value
Fixed maturities available for sale:
Due in one year or less	$	85,822	$	86,840
Due after one year through five years	648,451		699,017
Due after five years through ten years	1,686,684		1,937,987
Due after ten years through twenty years	5,394,107		6,500,168
Due after twenty years	8,399,480		9,460,036
Mortgage-backed and asset-backed securities	201,232		223,099
	$	16,415,776	$	18,907,147

Analysis of investment operations: Net investment income for the three years ended December 31, 2019 is summarized as follows:

	Year Ended December 31,
	2019		2018		2017
Fixed maturities available for sale	$	864,280	$	843,510	$	817,213
Policy loans	43,434		41,359		39,578
Other long-term investments(1)	16,198		10,638		4,991
Short-term investments	2,592		2,642		948
	926,504		898,149		862,730
Less investment expense	(16,045)		(15,637)		(14,845)
Net investment income	$	910,459	$	882,512	$	847,885

(1)For the years ended 2019, 2018 and 2017, the investment funds, accounted for under the fair value option method, recorded $5.6 million, $3.9 million and $2.5 million, respectively in net investment income.

An analysis of realized gains (losses) is as follows:

	Year Ended December 31,
	2019		2018		2017
Realized investment gains (losses):
Fixed maturities available for sale:
Sales and other(1)	$	19,354	$	5,715	$	35,199
Other-than-temporary impairments	—		—		(245)
Fair value option—change in fair value	1,256		2,650		—
Other investments	11		909		(7,302)
Realized gains (losses) from investments	20,621		9,274		27,652
Realized loss on redemption of debt(2)	—		(11,078)		(4,041)
	20,621		(1,804)		23,611
Applicable tax	(4,330)		379		(6,021)
Realized gains (losses), net of tax	$	16,291	$	(1,425)	$	17,590

(1)For the years ended 2019, 2018 and 2017, the Company recorded $243.2 million, $193.4 million and $84.3 million of exchanges of fixed maturities (noncash transactions) that resulted in $20.5 million, $10.1 million, and $4.8 million, respectively in realized gains (losses).

(2)Refer to Note 11—Debt for further discussion.

An analysis of the net change in unrealized investment gains (losses) is as follows:

	Year Ended December 31,
	2019		2018		2017
Change in investment gains (losses) on:
Fixed maturities available for sale	$	1,946,910	$	(1,429,763)	$	916,413

Selected information about sales of fixed maturities available for sale is as follows:

	Year Ended December 31,
	2019		2018		2017
Fixed maturities available for sale:
Proceeds from sales(1)	$	79,108	$	32,021	$	67,246
Gross realized gains	1,227		66		5,079
Gross realized losses	(3,674)		(13,996)		(1,100)

(1)There were no unsettled sales in the periods ended December 31, 2019, 2018 and 2017.

Fair value measurements: The following tables represent the fair value of fixed maturities measured on a recurring basis at December 31, 2019 and 2018:

	Fair Value Measurement at December 31, 2019:
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Fixed maturities available for sale
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	—		$	437,520		$	—		$	437,520
States, municipalities, and political subdivisions	—			1,717,656			—			1,717,656
Foreign governments	—			27,551			—			27,551
Corporates, by sector:
Financial	—			4,628,875			151,931			4,780,806
Utilities	—			2,195,539			156,748			2,352,287
Energy	—			1,873,482			41,402			1,914,884
Other corporate sectors	—			7,131,773			322,047			7,453,820
Total corporates	—			15,829,669			672,128			16,501,797
Collateralized debt obligations	—			—			74,104			74,104
Other asset-backed securities	—			135,342			13,177			148,519
Total fixed maturities	$	—		$	18,147,738		$	759,409		$	18,907,147
Percentage of total	—		%	96		%	4		%	100		%

	Fair Value Measurement at December 31, 2018:
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Fixed maturities available for sale
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	—		$	392,668		$	—		$	392,668
States, municipalities, and political subdivisions	—			1,436,660			—			1,436,660
Foreign governments	—			20,816			—			20,816
Corporates, by sector:
Financial	—			3,891,728			43,400			3,935,128
Utilities	—			2,032,127			150,826			2,182,953
Energy	—			1,645,077			39,132			1,684,209
Other corporate sectors	—			6,103,609			320,113			6,423,722
Total corporates	—			13,672,541			553,471			14,226,012
Collateralized debt obligations	—			—			73,369			73,369
Other asset-backed securities	—			135,425			12,982			148,407
Total fixed maturities	$	—		$	15,658,110		$	639,822		$	16,297,932
Percentage of total	—		%	96		%	4		%	100		%

The following tables represent changes in fixed maturities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

	Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Asset- backed Securities		Collateralized Debt Obligations		Corporates		Total
Balance at January 1, 2017	$	—	$	63,503	$	559,600	$	623,103
Included in realized gains/losses	—		—		—		—
Included in other comprehensive income	410		9,654		10,900		20,964
Acquisitions(1)	14,000		—		21,666		35,666
Sales	—		—		—		—
Amortization	—		4,914		17		4,931
Other(2)	(361)		(6,490)		(9,373)		(16,224)
Transfers into Level 3(3)	—		—		—		—
Transfers out of Level 3(3)	—		—		—		—
Balance at December 31, 2017	14,049		71,581		582,810		668,440
Included in realized gains/losses	—		—		698		698
Included in other comprehensive income	(591)		3,170		(23,687)		(21,108)
Acquisitions(1)	—		—		27,453		27,453
Sales	—		—		—		—
Amortization	—		4,737		16		4,753
Other(2)	(476)		(6,119)		(38,352)		(44,947)
Transfers into Level 3(3)	—		—		4,533		4,533
Transfers out of Level 3(3)	—		—		—		—
Balance at December 31, 2018	12,982		73,369		553,471		639,822
Included in realized gains/losses	—		—		396		396
Included in other comprehensive income	708		1,514		30,378		32,600
Acquisitions(1)	—		—		—		—
Sales	—		—		—		—
Amortization	—		4,596		13		4,609
Other(2)	(513)		(5,375)		(19,154)		(25,042)
Transfers into Level 3(3)	—		—		107,024		107,024
Transfers out of Level 3(3)	—		—		—		—
Balance at December 31, 2019	$	13,177	$	74,104	$	672,128	$	759,409
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period:
2017	$	410	$	9,654	$	10,900	$	20,964
2018	(591)		3,170		(23,687)		(21,108)
2019	708		1,514		30,378		32,600

(1)Acquisitions of Level 3 investments in each of the years 2017 through 2019 are comprised of private-placement fixed maturities.

(2)Includes capitalized interest, foreign exchange adjustments, and principal repayments. 

(3)Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available, while transfers out of Level 3 occur when observable inputs become available.

Transfers between levels within the hierarchy occur when there are changes in the observability of the inputs and market data. Transfers into Level 3 occur when there is little unobservable market activity for the asset/liability as of the measurement date and the Company is required to rely upon internally-developed assumptions or third-parties. Transfers out of Level 3 occur when quoted prices in active markets becomes available for identical assets/ liabilities or the ability to corroborate by observable market data.

The following table represents quantitative information about Level 3 fair value measurements:

	Quantitative Information about Level 3 Fair Value Measurements
	As of December 31, 2019
	Fair Value		Valuation Techniques	Significant Unobservable Input	Range	Weighted- Average(1)
Asset-backed securities	$	13,177	Determination of credit spread	Credit rating	BBB-	BBB-
			Discounted Cash Flows	Discount rate	4.80%	4.80%
Collateralized debt obligations	74,104		Discounted Cash Flows	Discount rate	6.10% - 7.00%	6.84%
Private placement fixed maturities	565,104		Determination of credit spread	Credit rating	A+ to CCC-	BBB
			Discounted Cash Flows	Discount rate	2.48% - 9.39%	3.68%
Other corporate bonds	107,024		Present Value Techniques	Market Quotes	105.39%	105.39%
	$	759,409

(1)Unobservable inputs were weighted by the relative fair value of the instruments.

The private placement fixed maturities and asset-backed securities reported as Level 3 are managed by third party investment managers. These securities are valued based on the contractual cash flows discounted by a yield determined as a treasury benchmark adjusted for a credit spread. The credit spread is developed from observable indices for similar public fixed maturities and unobservable indices for private fixed maturities for corresponding credit ratings. However, the credit ratings for the securities are considered unobservable inputs, as they are assigned by the third-party investment manager based on a quantitative and qualitative assessment of the credit underwritten. A higher (lower) credit rating would result in a higher (lower) valuation.

The collateral underlying collateralized debt obligations for which fair values are reported as Level 3 consists primarily of trust preferred securities issued by banks and insurance companies. Collateralized debt obligations are valued at the present value of expected future cash flows using an unobservable discount rate. Expected cash flows are determined by scheduling the projected repayment of the collateral assuming no future defaults, deferrals, or recoveries. The discount rate is risk-adjusted to take these items into account. A significant increase (decrease) in the discount rate will produce a significant decrease (increase) in fair value. Additionally, a significant increase (decrease) in the cash flow expectations would result in a significant increase (decrease) in fair value. For more information regarding valuation procedures, please refer to Note 1—Significant Accounting Policies under the caption Fair Value Measurements, Investments in Securities.

Other corporate bonds consist of obligations issued out of a special purpose vehicle (SPV). The market quotes consisted of Level 3 quotes. An increase (decrease) in the market quotes will produce an increase (decrease) in fair value.

Unrealized Loss Analysis: The following table discloses information about fixed maturities available for sale in an unrealized loss position.

	Less than Twelve Months	Twelve Months or Longer	Total
Number of issues (CUSIPs) held:
As of December 31, 2019	82	51	133
As of December 31, 2018	495	234	729

Globe Life's entire fixed maturity portfolio consisted of 1,633 issues at December 31, 2019 and 1,548 issues at December 31, 2018. The weighted-average quality rating of all unrealized loss positions at amortized cost as of December 31, 2019 was BBB- compared with BBB+ as of December 31, 2018. The drop in quality rating is attributed to the overall decreasing interest rate that has caused certain securities to move from an unrealized loss position to an unrealized gain position.

The following tables disclose unrealized investment losses by class and major sector of fixed maturities available for sale at December 31, 2019 and 2018, respectively. Globe Life considers these investments to be only temporarily impaired.

Analysis of Gross Unrealized Investment Losses

	At December 31, 2019
	Less than Twelve Months				Twelve Months or Longer				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Fixed maturities available for sale:
Investment grade securities:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	1,255	$	(2)	$	21,044	$	(294)	$	22,299	$	(296)
States, municipalities and political subdivisions	66,774		(626)		—		—		66,774		(626)
Foreign governments	6,496		(396)		—		—		6,496		(396)
Corporates, by sector:
Financial	117,389		(1,733)		7,183		(1,317)		124,572		(3,050)
Utilities	8,400		(166)		—		—		8,400		(166)
Energy	52,312		(1,058)		1,833		(115)		54,145		(1,173)
Other corporate sectors	136,386		(1,584)		61,473		(3,260)		197,859		(4,844)
Total corporates	314,487		(4,541)		70,489		(4,692)		384,976		(9,233)
Other asset-backed securities	—		—		—		—		—		—
Total investment grade securities	389,012		(5,565)		91,533		(4,986)		480,545		(10,551)
Below investment grade securities:
States, municipalities and political subdivisions	—		—		—		—		—		—
Corporates, by sector:
Financial	—		—		113,481		(19,257)		113,481		(19,257)
Utilities	7,529		(135)		14,985		(1,264)		22,514		(1,399)
Energy	14,968		(146)		69,956		(32,406)		84,924		(32,552)
Other corporate sectors	—		—		67,655		(11,921)		67,655		(11,921)
Total corporates	22,497		(281)		266,077		(64,848)		288,574		(65,129)
Collateralized debt obligations	—		—		12,816		(7,184)		12,816		(7,184)
Other asset-backed securities	—		—		13,879		(371)		13,879		(371)
Total below investment grade securities	22,497		(281)		292,772		(72,403)		315,269		(72,684)
Total fixed maturities	$	411,509	$	(5,846)	$	384,305	$	(77,389)	$	795,814	$	(83,235)

Analysis of Gross Unrealized Investment Losses

	At December 31, 2018
	Less than Twelve Months				Twelve Months or Longer				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Fixed maturities available for sale:
Investment grade securities:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	37,182	$	(212)	$	89,664	$	(2,575)	$	126,846	$	(2,787)
States, municipalities and political subdivisions	124,907		(1,648)		7,981		(102)		132,888		(1,750)
Foreign governments	—		—		—		—		—		—
Corporates, by sector:
Financial	931,161		(36,337)		241,442		(21,572)		1,172,603		(57,909)
Utilities	329,753		(11,680)		121,308		(9,442)		451,061		(21,122)
Energy	475,736		(29,426)		54,937		(9,382)		530,673		(38,808)
Other corporate sectors	2,515,541		(149,168)		575,796		(62,994)		3,091,337		(212,162)
Total corporates	4,252,191		(226,611)		993,483		(103,390)		5,245,674		(330,001)
Other asset-backed securities	44,603		(634)		—		—		44,603		(634)
Total investment grade securities	4,458,883		(229,105)		1,091,128		(106,067)		5,550,011		(335,172)
Below investment grade securities:
States, municipalities and political subdivisions	—		—		—		—		—		—
Corporates, by sector:
Financial	22,087		(8,674)		81,101		(20,932)		103,188		(29,606)
Utilities	28,613		(3,277)		—		—		28,613		(3,277)
Energy	42,874		(3,901)		36,122		(19,662)		78,996		(23,563)
Other corporate sectors	146,373		(7,235)		69,053		(23,112)		215,426		(30,347)
Total corporates	239,947		(23,087)		186,276		(63,706)		426,223		(86,793)
Collateralized debt obligations	—		—		13,586		(6,414)		13,586		(6,414)
Total below investment grade securities	239,947		(23,087)		199,862		(70,120)		439,809		(93,207)
Total fixed maturities	$	4,698,830	$	(252,192)	$	1,290,990	$	(176,187)	$	5,989,820	$	(428,379)

Gross unrealized losses decreased from $428 million at December 31, 2018 to $83 million at December 31, 2019, a decrease of $345 million. The decrease in the gross unrealized losses from the prior year was primarily attributable to the decrease in market interest rates.

Other-than-temporary impairments (OTTI): Gross unrealized losses may fluctuate quarter over quarter due to adverse factors in the market that affect our holdings, such as changes in the interest rates or credit spreads. While the Company holds securities that may be in an unrealized loss position from time to time, Globe Life has the ability and intent to hold these investments to recovery. Additionally, the Company does not expect to be required to sell any of its securities due to the strong cash flows generated by its insurance operations.

In accordance with the other-than-temporary impairment policy, the Company evaluated its fixed maturities available for sale in an unrealized loss position to determine if there was any impairment for the year. Based on the results of the evaluation, the Company concluded there were no other-than-temporary impairments for the years ended December 31, 2019 and 2018. During the year ended 2017, the Company recorded $245 thousand ($159 thousand, net of tax) in impairment.

As of December 31, 2019, previously written down securities remaining in the portfolio were carried at a fair value of $61 million, or less than 0.4% of the fair value of the fixed maturity portfolio. Globe Life is continuously monitoring the market conditions impacting its portfolio.

Concentrations of Credit Risk: Globe Life maintains a diversified investment portfolio with limited concentration in any given issuer. At December 31, 2019, the investment portfolio, at fair value, consisted of the following:

Investment grade fixed maturities:
Corporates	80	%
States, municipalities, and political subdivisions	9
U.S. Government direct, guaranteed, and government-sponsored enterprises	2
Other	1
Below investment grade fixed maturities:
Corporates	3
States, municipalities, and political subdivisions	—
U.S. Government direct, guaranteed, and government-sponsored enterprises	—
Other	—
	95
Other
Policy loans, which are secured by the underlying insurance policy values	3
Other investments	2
	100	%

As of December 31, 2019, state and municipal governments represented 9% of invested assets at fair value. Such investments are made throughout the U.S. At December 31, 2019, the state and municipal bond portfolio at fair value was invested in securities issued within the following states: Texas (22%), Michigan (8%), New York (7%), Florida (6%), Washington (6%), and Ohio (5%). Otherwise, there was no concentration within any given state greater than 5%.

Corporate fixed maturities represent 83% of Globe Life's invested assets. These investments are spread across a wide range of industries. Below are the ten largest industry concentrations held in the portfolio of corporate fixed maturities at December 31, 2019, based on fair value:

Insurance	15	%
Electric utilities	11
Banks	7
Oil and natural gas pipelines	6
Transportation	4
Chemicals	4
Oil and natural gas exploration and production	4
Food	4
Real estate investment trusts	4
Telecommunications	3

At December 31, 2019, 3% of invested assets at fair value were represented by fixed maturities rated below investment grade. Par value of these investments was $768 million, amortized cost was $674 million, and fair value was $645 million. While these investments could be subject to additional credit risk, such risk should generally be reflected in their fair value. As noted previously, we believe we will recover the cost basis of these investments because we have the intent and the ability to hold them until maturity.

Securities, cash, and short-term investments held on deposit with various state and federal regulatory authorities had an amortized cost and fair value, respectively, of $816 million and $956 million at December 31, 2019 and $712 million and $763 million at December 31, 2018.

Other Long-Term Investments: Other long-term investments consist of the following assets:

	Year Ended December 31,
	2019		2018
Investment funds	$	185,851	$	108,241
Commercial mortgage loan participations	137,692		96,266
Other	2,804		2,751
Total	$	326,347	$	207,258

The investment funds consist of limited partnerships whereby the Company has a prorata share of ownership ranging from less than 1% to 20%. For each investment, the Company has elected the fair value option, but would have been otherwise accounted for as an equity method investment. The fair value option is assessed for each individual investment and concluded at the recording of the asset. Additionally, these investments are evaluated under ASC 810, Consolidation to determine if it is a variable interest entity and would qualify for consolidation. As previously discussed in Note 1 — Significant Accounting Policies, none of the investments qualify for consolidation as the Company is not the primary beneficiary in any of the instances.

The investments are reported at the Company's pro-rata share of the investment fund's net asset value per share or its equivalent (NAV), as a practical expedient for fair value. Changes in the net asset value per share are recorded in Realized Gains (Losses) on the Consolidated Statements of Operations. Distributions received from the funds arise from income generated by the underlying investments as well as the liquidation of the underlying investments. Periodic, primarily quarterly, distributions are recorded in net investment income. Our maximum exposure to loss is equal to the outstanding carrying value and future funding commitments.

The following table presents additional information about the Company's investment funds as of December 31, 2019 and 2018 at fair value:

	As of December 31,
	Fair Value				Unfunded Commitments
Investment Category	2019		2018		2019		Redemption Term/Notice
Commercial mortgage loans	$	26,145	$	—	$	225,000	Not redeemable.
Commercial mortgage loans	—		—		250,000		Full redemption within 6 month period, subject to fund liquidity and General Partner discretion.
Total commercial mortgage loans(1)	26,145		—		475,000
Opportunistic credit(2)	159,399		108,241		—		Initial 2 year lock on each new investment/semi-annual withdrawals thereafter/full redemption within 36 month period.
Infrastructure equity(3)	307		—		75,000		Not redeemable.
Total investment funds	$	185,851	$	108,241	$	550,000

(1)Diversified commercial mortgage loan portfolio primarily invested in high quality, floating rate, transitional senior mortgage loans secured by U.S. commercial real estate. Expected life is 7 years for non-redeemable fund.

(2)Opportunistic credit seeking to capitalize on locations across global, public and private residential, commercial, corporate and specialty credit markets.

(3)Equity investments in core infrastructure assets less sensitive to economic cycles, with long-term contractual cash flows, often operating in monopolistic environments invested across sectors including airports, midstream, ports, power generation, renewables, liquefied natural gas off-take, rail, utilities, waste, and other. Expected life is approximately 10 years.

Commercial mortgage loan participations: Summaries of commercial mortgage loan participations at December 31, 2019 and 2018 are as follows:

	2019			2018
	Carrying Value		% of Total	Carrying Value		% of Total
Property type:
Office	$	42,350	31	35,289		37
Mixed use	27,501		20	11,309		12
Hospitality	22,324		16	15,137		16
Industrial	17,612		13	13,896		14
Retail	17,318		12	12,934		13
Multi-family	10,587		8	7,701		8
Total recorded investment	137,692		100	96,266		100
Less valuation allowance	—		—	—		—
Carrying value, net of valuation allowance	$	137,692	100	$	96,266	100

	2019			2018
	Carrying Value		% of Total	Carrying Value		% of Total
Geographic location:
South Atlantic	$	50,867	37	39,414		41
Pacific	36,546		27	20,843		22
Middle Atlantic	25,328		18	23,488		24
East North Central	10,568		8	10,531		11
West South Central	8,072		6	1,990		2
East South Central	4,676		3	—		—
New England	1,635		1	—		—
Total recorded investment	137,692		100	96,266		100
Less valuation allowance	—		—	—		—
Carrying value, net of valuation allowance	$	137,692	100	$	96,266	100

	2019
	Recorded Investment
	Debt Service Coverage Ratios(1)
	<1.00x		1.00x—1.20x		>1.20x		Total		% of Total
Loan-to-value ratio:
Less than 70%	$	64,160	$	47,634	$	12,666	$	124,460	90
70% to 80%	11,445		1,787		—		13,232		10
81% to 90%	—		—		—		—		—
Greater than 90%	—		—		—		—		—
Total	$	75,605	$	49,421	$	12,666	$	137,692	100

(1)Annual net operating income divided by annual mortgage debt service (principal and interest).

	2018
	Recorded Investment
	Debt Service Coverage Ratios(1)
	<1.00x		1.00x—1.20x		>1.20x		Total		% of Total
Loan-to-value ratio:
Less than 70%	$	18,343	$	56,813	$	10,531	$	85,687	89
70% to 80%	10,579		—		—		10,579		11
81% to 90%	—		—		—		—		—
Greater than 90%	—		—		—		—		—
Total	$	28,922	$	56,813	$	10,531	$	96,266	100

(1)Annual net operating income divided by annual mortgage debt service (principal and interest).

As of December 31, 2019 and 2018, the Company evaluated the commercial mortgage loan portfolio on a loan-by-loan basis to determine any allowance for loan loss. Factors considered include, but are not limited to, collateral value, loan-to-value ratio, debt service coverage ratio, local market conditions, credit quality of the borrower and tenants, and loan performance. As of December 31, 2019 and 2018, there was no allowance for loan loss.