OFFSETTING OF ASSETS AND LIABILITIES

9 Months Ended

Sep. 30, 2016

Offsetting [Abstract]

OFFSETTING OF ASSETS AND LIABILITIES

OFFSETTING OF ASSETS AND LIABILITIES

Certain of the Company’s derivative instruments are subject to enforceable master netting arrangements that provide for the net settlement of all derivative contracts between the Company and a counterparty in the event of default or upon the occurrence of certain termination events. Collateral support agreements associated with each master netting arrangement provide that the Company will receive or pledge financial collateral in the event either minimum thresholds, or in certain cases ratings levels, have been reached. Additionally, certain of the Company’s repurchase agreements provide for net settlement on termination of the agreement. Refer to Note 12, Debt and Other Obligations for details of the Company’s repurchase agreement programs.

The tables below present the derivative instruments by assets and liabilities for the Company as of September 30, 2016 (Successor Company):

	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets Presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position
							Financial Instruments		Cash Collateral Received		Net Amount
	(Dollars In Thousands)
Offsetting of Derivative Assets
Derivatives:
Free-Standing derivatives	$	586,545	$	—	$	586,545	$	114,968	$	299,819	$	171,758
Total derivatives, subject to a master netting arrangement or similar arrangement	586,545		—		586,545		114,968		299,819		171,758
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	2,787		—		2,787		—		—		2,787
Embedded derivative - GMWB	67,264		—		67,264		—		—		67,264
Other	123		—		123		—		—		123
Total derivatives, not subject to a master netting arrangement or similar arrangement	70,174		—		70,174		—		—		70,174
Total derivatives	656,719		—		656,719		114,968		299,819		241,932
Total Assets	$	656,719	$	—	$	656,719	$	114,968	$	299,819	$	241,932

	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Liabilities Presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position
							Financial Instruments		Cash Collateral Paid		Net Amount
	(Dollars In Thousands)
Offsetting of Derivative Liabilities
Derivatives:
Free-Standing derivatives	$	129,740	$	—	$	129,740	$	114,968	$	14,772	$	—
Total derivatives, subject to a master netting arrangement or similar arrangement	129,740		—		129,740		114,968		14,772		—
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	254,285		—		254,285		—		—		254,285
Embedded derivative - GMWB	496,987		—		496,987		—		—		496,987
Embedded derivative - FIA	141,651		—		141,651		—		—		141,651
Embedded derivative - IUL	46,348		—		46,348		—		—		46,348
Total derivatives, not subject to a master netting arrangement or similar arrangement	939,271		—		939,271		—		—		939,271
Total derivatives	1,069,011		—		1,069,011		114,968		14,772		939,271
Repurchase agreements(1)	219,457		—		219,457		—		—		219,457
Total Liabilities	$	1,288,468	$	—	$	1,288,468	$	114,968	$	14,772	$	1,158,728

(1)Borrowings under repurchase agreements are for a term less than 90 days.

The tables below present the derivative instruments by assets and liabilities for the Company as of December 31, 2015 (Successor Company):

	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets Presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position
							Financial Instruments		Cash Collateral Received		Net Amount
	(Dollars In Thousands)
Offsetting of Derivative Assets
Derivatives:
Free-Standing derivatives	$	254,840	$	—	$	254,840	$	42,382	$	105,842	$	106,616
Total derivatives, subject to a master netting arrangement or similar arrangement	254,840		—		254,840		42,382		105,842		106,616
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	1,215		—		1,215		—		—		1,215
Embedded derivative - GMWB	95,614		—		95,614		—		—		95,614
Other	347		—		347		—		—		347
Total derivatives, not subject to a master netting arrangement or similar arrangement	97,176		—		97,176		—		—		97,176
Total derivatives	352,016		—		352,016		42,382		105,842		203,792
Total Assets	$	352,016	$	—	$	352,016	$	42,382	$	105,842	$	203,792

	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Liabilities Presented in the Statement of Financial Position		Gross Amounts Not Offset in the Statement of Financial Position
							Financial Instruments		Cash Collateral Paid		Net Amount
	(Dollars In Thousands)
Offsetting of Derivative Liabilities
Derivatives:
Free-Standing derivatives	$	43,999	$	—	$	43,999	$	42,382	$	1,617	$	—
Total derivatives, subject to a master netting arrangement or similar arrangement	43,999		—		43,999		42,382		1,617		—
Derivatives not subject to a master netting arrangement or similar arrangement
Embedded derivative - Modco reinsurance treaties	178,362		—		178,362		—		—		178,362
Embedded derivative - GMWB	277,236		—		277,236		—		—		277,236
Embedded derivative - FIA	100,329		—		100,329		—		—		100,329
Embedded derivative - IUL	29,629		—		29,629		—		—		29,629
Total derivatives, not subject to a master netting arrangement or similar arrangement	585,556		—		585,556		—		—		585,556
Total derivatives	629,555		—		629,555		42,382		1,617		585,556
Repurchase agreements(1)	438,185		—		438,185		—		—		438,185
Total Liabilities	$	1,067,740	$	—	$	1,067,740	$	42,382	$	1,617	$	1,023,741

(1)Borrowings under repurchase agreements are for a term less than 90 days.