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Investments

12 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Note 4—Investments

Portfolio Composition: Summaries of fixed maturities available for sale by amortized cost, fair value, and allowance for credit losses at December 31, 2020 and 2019, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) are as follows. Redeemable preferred stock is included within the corporates by sector.

As noted in Note 1—Significant Accounting Policies, the Company prospectively adopted ASU 2016-13 as of January 1, 2020 for the available-for-sale fixed maturities. Results after January 1, 2020 are presented under ASU 2016-13, while prior periods continue to be reported in accordance with previously applicable GAAP. See additional discussion of the allowance for credit losses later in this note.


	At December 31, 2020
	Amortized Cost		Allowance for Credit Losses		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	$	380,602	$	—	$	87,272	$	(43)	$	467,831	2
States, municipalities, and political subdivisions	1,880,607		—		251,291		(315)		2,131,583		10
Foreign governments	52,913		—		2,635		(898)		54,650		—
Corporates, by sector:
Financial	4,404,203		—		1,016,813		(24,221)		5,396,795		26
Utilities	1,975,460		—		608,595		(108)		2,583,947		12
Energy	1,623,970		(3,346)		346,197		(3,083)		1,963,738		9
Other corporate sectors	6,687,644		—		1,727,366		(6,218)		8,408,792		40
Total corporates	14,691,277		(3,346)		3,698,971		(33,630)		18,353,272		87
Collateralized debt obligations	57,007		—		23,460		(8,869)		71,598		—
Other asset-backed securities	134,739		—		3,614		(3,778)		134,575		1
Total fixed maturities	$	17,197,145	$	(3,346)	$	4,067,243	$	(47,533)	$	21,213,509	100

(1)Amount reported in the balance sheet.

(2)At fair value.


	At December 31, 2019
	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.

A schedule of fixed maturities available for sale by contractual maturity date at December 31, 2020 is shown below on an amortized cost basis, net of allowance for credit losses and on a fair value basis. Actual disposition dates could differ from contractual maturities due to call or prepayment provisions.


	At December 31, 2020
	Amortized Cost, net		Fair Value
Fixed maturities available for sale:
Due in one year or less	$	70,732	$	72,395
Due after one year through five years	781,183		866,408
Due after five years through ten years	1,870,527		2,260,011
Due after ten years through twenty years	6,109,815		7,884,526
Due after twenty years	8,169,528		9,923,706
Mortgage-backed and asset-backed securities	192,014		206,463
	$	17,193,799	$	21,213,509

Analysis of investment operations: "Net investment income" for the three years ended December 31, 2020 is summarized as follows:


	Year Ended December 31,
	2020		2019		2018
Fixed maturities available for sale	$	873,352	$	864,280	$	843,510
Policy loans	44,801		43,434		41,359
Other long-term investments(1)	26,196		16,198		10,638
Short-term investments	545		2,592		2,642
	944,894		926,504		898,149
Less investment expense	(17,832)		(16,045)		(15,637)
Net investment income	$	927,062	$	910,459	$	882,512

(1)For the years ended 2020, 2019 and 2018, the investment funds, accounted for under the fair value option method, recorded $15.3 million, $5.6 million and $3.9 million, respectively in net investment income.

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


	Year Ended December 31,
	2020		2019		2018
Realized investment gains (losses):
Fixed maturities available for sale:
Sales and other(1)	$	(22,999)	$	19,354	$	5,715
Provision for credit losses	(3,346)		—		—
Investment funds—fair value option	1,045		1,256		2,650
Other investments	21,563		11		909
Realized gains (losses) from investments	(3,737)		20,621		9,274

Realized loss on redemption of debt(2)	(634)		—		(11,078)
	(4,371)		20,621		(1,804)
Applicable tax	1,955		(4,330)		379
Realized gains (losses), net of tax	$	(2,416)	$	16,291	$	(1,425)

(1)For the years ended 2020, 2019 and 2018, the Company recorded $219.8 million, $243.2 million and $193.4 million of exchanges of fixed maturities (noncash transactions) that resulted in $7.9 million, $20.5 million, and $10.1 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,
	2020		2019		2018
Change in investment gains (losses) on:
Fixed maturities available for sale	$	1,528,339	$	1,946,910	$	(1,429,763)

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


	Year Ended December 31,
	2020		2019		2018
Fixed maturities available for sale:
Proceeds from sales(1)	$	52,681	$	79,108	$	32,021
Gross realized gains	2,642		1,227		66
Gross realized losses	(39,153)		(3,674)		(13,996)

(1)There were no unsettled sales in the periods ended December 31, 2020, 2019 and 2018.

Fair value measurements: The following tables represent the fair value of fixed maturities measured on a recurring basis at December 31, 2020 and 2019:


	Fair Value Measurement at December 31, 2020:
	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	$	—		$	467,831		$	—		$	467,831
States, municipalities, and political subdivisions	—			2,131,583			—			2,131,583
Foreign governments	—			54,650			—			54,650
Corporates, by sector:
Financial	—			5,222,066			174,729			5,396,795
Utilities	—			2,400,602			183,345			2,583,947
Energy	—			1,925,549			38,189			1,963,738
Other corporate sectors	—			8,090,550			318,242			8,408,792
Total corporates	—			17,638,767			714,505			18,353,272
Collateralized debt obligations	—			—			71,598			71,598
Other asset-backed securities	—			121,705			12,870			134,575
Total fixed maturities	$	—		$	20,414,536		$	798,973		$	21,213,509
Percentage of total	—		%	96		%	4		%	100		%


	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		%

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, 2018	$	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

Included in realized gains/losses	—		—		1,579		1,579
Included in other comprehensive income	(173)		(2,523)		17,082		14,386
Acquisitions(1)	—		—		67,820		67,820
Sales	—		—		—		—
Amortization	—		4,551		12		4,563
Other(2)	(134)		(4,534)		(44,116)		(48,784)
Transfers into Level 3(3)	—		—		—		—
Transfers out of Level 3(3)	—		—		—		—
Balance at December 31, 2020	$	12,870	$	71,598	$	714,505	$	798,973

Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period:
	Asset- backed Securities		Collateralized Debt Obligations		Corporates		Total
2018	$	(591)	$	3,170	$	(23,687)	$	(21,108)
2019	708		1,514		30,378		32,600
2020	(173)		(2,523)		17,082		14,386

(1)Acquisitions of Level 3 investments in each of the years 2018 through 2020 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, 2020

Fair Value

Valuation
Techniques

Significant Unobservable
Input

Range

Weighted-

Average(1)

Private placement fixed maturities

612,906

Determination of credit spread

Credit rating

A+ to BB-

BBB

Discounted Cash Flows

Discount rate

1.04% - 8.29%

2.29%

Other corporate bonds

101,599

Present Value Techniques

Market Quotes

100.05%

Collateralized debt obligations

71,598

Discounted Cash Flows

Discount rate

6.35% - 7.10%

6.98%

Asset-backed securities

12,870

Determination of credit spread

Credit rating

BBB-

Discounted Cash Flows

Discount rate

5.41%

798,973

(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, 2020	54	24	78
As of December 31, 2019	82	51	133

Globe Life's entire fixed maturity portfolio consisted of 1,900 issues by 777 different issuers at December 31, 2020 and 1,633 issues by 656 different issuers at December 31, 2019. The weighted-average quality rating of all unrealized loss positions at amortized cost was BBB- as of December 31, 2020 and December 31, 2019.

The following table discloses unrealized investment losses by class and major sector of fixed maturities available for sale for which an allowance for credit losses has not been recorded at December 31, 2020.

Analysis of Gross Unrealized Investment Losses


	At December 31, 2020
	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	$	2,006	$	(43)	$	—	$	—	$	2,006	$	(43)
States, municipalities and political subdivisions	32,910		(315)		—		—		32,910		(315)
Foreign governments	19,532		(898)		—		—		19,532		(898)
Corporates, by sector:
Financial	117,762		(2,564)		6,333		(2,168)		124,095		(4,732)
Utilities	2,726		(108)		—		—		2,726		(108)
Energy	1,692		(8)		14,871		(106)		16,563		(114)
Other corporate sectors	21,882		(720)		—		—		21,882		(720)
Total corporates	144,062		(3,400)		21,204		(2,274)		165,266		(5,674)
Collateralized debt obligations	—		—		—		—		—		—
Other asset-backed securities	28,864		(1,051)		5		—		28,869		(1,051)
Total investment grade securities	227,374		(5,707)		21,209		(2,274)		248,583		(7,981)

Below investment grade securities:
States, municipalities and political subdivisions	—		—		—		—		—		—

Corporates, by sector:
Financial	6,822		(36)		115,093		(19,453)		121,915		(19,489)
Utilities	—		—		—		—		—		—
Energy	18,432		(757)		38,720		(2,212)		57,152		(2,969)
Other corporate sectors	25,711		(3,588)		19,516		(1,910)		45,227		(5,498)
Total corporates	50,965		(4,381)		173,329		(23,575)		224,294		(27,956)
Collateralized debt obligations	—		—		11,131		(8,869)		11,131		(8,869)
Other asset-backed securities	—		—		11,223		(2,727)		11,223		(2,727)
Total below investment grade securities	50,965		(4,381)		195,683		(35,171)		246,648		(39,552)
Total fixed maturities	$	278,339	$	(10,088)	$	216,892	$	(37,445)	$	495,231	$	(47,533)

Gross unrealized losses may fluctuate quarter over quarter due to adverse factors in the market that affect our holdings, such as changes in interest rates or credit spreads. As noted in Note 1, the Company considers many factors when determining whether a credit loss exists. While the Company holds securities that may be in an unrealized loss position from time to time, Globe Life does not intend to sell and it is likely that management will not be required to sell the fixed maturities prior to their anticipated recovery due to the strong cash flows generated by its insurance operations.

The following table discloses unrealized investment losses by class and major sector of fixed maturities available for sale at December 31, 2019. Globe Life considered 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)
Collateralized debt obligations	—		—		—		—		—		—
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)

Gross unrealized losses decreased from $83.2 million at December 31, 2019 to $47.5 million at December 31, 2020, a decrease of $35.7 million. The decrease in the gross unrealized losses from the prior year was primarily attributable to the decrease in market interest rates.

Fixed Maturities, Allowance for Credit Losses: A summary of the activity in the allowance for credit losses is as follows. Refer to Note 1 for factors considered in the recording of the allowance for credit losses.


	Twelve Months Ended December 31,
	2020		2019
Allowance for credit losses beginning balance	$	—	$	—
Additions to allowance for which credit losses were not previously recorded	36,065		—
Additions (reductions) to allowance for fixed maturities that previously had an allowance	—		—
Reduction of allowance for which the Company intends to sell or more likely than not will be required to sell or sold during the period	(32,719)		—
Allowance for credit losses ending balance	$	3,346	$	—

Under previous applicable GAAP, the Company concluded that there were no other-than-temporary impairments for years ended December 31, 2019 and 2018.

As of December 31, 2020 and December 31, 2019, the Company did not have any fixed maturities in non-accrual status.

Concentrations of Credit Risk: Globe Life maintains a diversified investment portfolio with limited concentration in any given issuer. At December 31, 2020, the investment portfolio, at fair value, consisted of the following:


Investment grade fixed maturities:
Corporates	78	%
States, municipalities, and political subdivisions	9
U.S. Government direct, guaranteed, and government-sponsored enterprises	2
Other	1

Below investment grade fixed maturities:
Corporates	4
States, municipalities, and political subdivisions	—
U.S. Government direct, guaranteed, and government-sponsored enterprises	—
Other	—
	94

Other
Policy loans, which are secured by the underlying insurance policy values	3
Other investments	3
	100	%

As of December 31, 2020, state and municipal governments represented 9% of invested assets at fair value. Such investments are made throughout the U.S. At December 31, 2020, the state and municipal bond portfolio at fair value was invested in securities issued within the following states: Texas (18%), New York (10%), Michigan (8%), California (7%), Ohio (6%), and Florida (5%). Otherwise, there was no concentration within any given state greater than 5%.

Corporate fixed maturities represent 82% 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, 2020, based on fair value:


Insurance	15	%
Electric utilities	10
Banks	7
Oil and natural gas pipelines	6
Chemicals	4
Transportation	4
Food	4
Oil and natural gas exploration and production	4
Real estate investment trusts	4
Telecommunications	3

At December 31, 2020, 4% of invested assets at fair value were represented by fixed maturities rated below investment grade. Par value of these investments was $931 million, amortized cost was $841 million, and fair value was $877 million. While these investments could be subject to additional credit risk, such risk should generally be reflected in their fair value.

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 $892 million and $1.1 billion at December 31, 2020 and $816 million and $956 million at December 31, 2019.

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


	Year Ended December 31,
	2020		2019
Investment funds	$	385,038	$	185,851
Commercial mortgage loan participations	160,602		137,692
Other	1,341		2,804
Total	$	546,981	$	326,347

The following table presents additional information about the Company's investment funds as of December 31, 2020 and December 31, 2019 at fair value:


	As of December 31,
	Fair Value				Unfunded Commitments
Investment Category	2020		2019		2020		Redemption Term/Notice




Commercial mortgage loans	$	227,050	$	26,145	$	285,287	Portion non-redeemable and fully redeemable after 6 month period, subject to fund liquidity/discretion of General Partner. Expected life is 7 years for non-redeemable fund.
Opportunistic credit	157,461		159,399		—		Initial 2 year lock on each new investment/semi-annual withdrawals thereafter/full redemption within 36 month period.
Other	527		307		149,715		Not redeemable. Expected life is approximately 12 years.


Total investment funds	$	385,038	$	185,851	$	435,002

Commercial mortgage loan participations: Summaries of commercial mortgage loans at December 31, 2020 and 2019 are as follows:


	2020			2019
	Carrying Value		% of Total	Carrying Value		% of Total
Property type:
Mixed use	$	49,002	31	$	27,501	20
Office	36,153		22	42,350		31
Hospitality	22,605		14	22,324		16
Retail	19,319		12	17,318		12
Multi-family	19,128		12	10,587		8
Industrial	17,900		11	17,612		13

Total recorded investment	164,107		102	137,692		100
Less allowance for credit losses	(3,505)		(2)	—		—
Carrying value, net of valuation allowance	$	160,602	100	$	137,692	100


	2020			2019
	Carrying Value		% of Total	Carrying Value		% of Total
Geographic location:
California	$	61,610	38	$	35,412	26
Virginia	27,019		17	25,448		18
New York	16,602		10	21,117		15
Florida	12,420		8	11,910		9
Pennsylvania	11,314		7	4,211		3
Other	35,142		22	39,594		29
Total recorded investment	164,107		102	137,692		100
Less allowance for credit losses	(3,505)		(2)	—		—
Carrying value, net of valuation allowance	$	160,602	100	$	137,692	100

As noted in Note 1, the Company adopted ASU 2016-13 using the modified retrospective method for commercial mortgage loans. On January 1, 2020, a cumulative effect adjustment was recorded to retained earnings of $335 thousand ($265 thousand, net of tax). As of December 31, 2020, the Company evaluated the commercial mortgage loan portfolio on a pool basis to determine the allowance for credit losses, except for individual loans where the practical expedient was elected. At the end of the period, the Company had 24 loans in the portfolio.


	Year Ended December 31,
	2020		2019
Allowance for credit losses beginning balance	$	—	$	—
Cumulative effect of adoption ASU 2016-13	335		—
Provision (reversal) for credit losses	3,170		—

Allowance for credit losses ending balance	$	3,505	$	—

The following table is reflective of Management's internal risk ratings of the loan portfolio. Loans are rated low, moderate, and high. The risk categories consider many different factors such as quality of asset, borrower status, as well as macroeconomic factors including COVID-19. These loans, originated in 2017 to 2020, are transitional or under construction and may not yet be income producing. Certain ratios such as loan to value and debt service coverage ratios may not be evaluated as the value of the underlying transitional property significantly fluctuates based on completion of the project.


	Net Book Value of Commercial Mortgage Loans Receivable by Year of Origination
	As of December 31, 2020
Risk Rating:	Number of Loans	2020		2019		2018		2017		Total
Low	17	$	20,176	$	14,757	$	33,132	$	61,460	$	129,525
Medium	4	—		10,640		7,796		—		18,436
High	3	—		4,554		11,592		—		16,146
Total commercial mortgage loans	24	20,176		29,951		52,520		61,460		164,107
Less allowance for credit losses on the investment pool										(2,503)
Less allowance for credit losses on individual loans										(1,002)
Carrying value, net of valuation allowance										$	160,602

As of December 31, 2020, the Company had one commercial mortgage loan in non-accrual status. As of December 31, 2019, the Company did not have any commercial mortgage loans in non-accrual status.