Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value, Assets and Liabilities Measured on Recurring Basis

The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated.



	As of December 31, 2017
	Level 1		Level 2		Level 3		Netting(1)			Total
	(in thousands)
Fixed maturities, available-for-sale:
U.S Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	4,826,413	$	5,237	$	0		$	4,831,650
Obligations of U.S. states and their political subdivisions	0		104,640		0		0			104,640
Foreign government bonds	0		140,305		0		0			140,305
U.S. corporate public securities	0		1,806,888		1,562		0			1,808,450
U.S. corporate private securities	0		1,148,536		59,408		0			1,207,944
Foreign corporate public securities	0		229,006		215		0			229,221
Foreign corporate private securities	0		737,539		34,021		0			771,560
Asset-backed securities(4)	0		160,229		185,358		0			345,587
Commercial mortgage-backed securities	0		505,684		0		0			505,684
Residential mortgage-backed securities	0		165,745		0		0			165,745
Subtotal	0		9,824,985		285,801		0			10,110,786
Trading account assets:
U.S Treasury securities and obligations of U.S. government authorities and agencies	0		123,820		0		0			123,820
Corporate securities	0		42,540		0		0			42,540
Asset-backed securities(4)	0		0		0		0			0
Equity securities	5,599		0		9,758		0			15,357
Subtotal	5,599		166,360		9,758		0			181,717
Equity securities, available-for-sale	0		18		0		0			18
Short-term investments	448,712		262,272		87		0			711,071
Cash equivalents	0		1,146,466		0		0			1,146,466
Other long-term investments(5)	10,738		5,059,779		147		(4,919,486		)	151,178
Reinsurance recoverables	0		0		244,006		0			244,006
Receivables from parent and affiliates	0		38,145		0		0			38,145
Subtotal excluding separate account assets	465,049		16,498,025		539,799		(4,919,486		)	12,583,387
Separate account assets(2)	0		37,990,547		0		0			37,990,547
Total assets	$	465,049	$	54,488,572	$	539,799	$	(4,919,486	)	$	50,573,934
Future policy benefits(3)	$	0	$	0	$	8,151,902	$	0		$	8,151,902
Payables to parent and affiliates	0		1,941,403		0		(1,941,403		)	0
Other liabilities	0		0		0		0			0
Total liabilities	$	0	$	1,941,403	$	8,151,902	$	(1,941,403	)	$	8,151,902



	As of December 31, 2016
	Level 1		Level 2		Level 3		Netting (1)			Total

	(in thousands)
Fixed maturities, available-for-sale:
U.S Treasury securities and obligations of U.S. government authorities and agencies	$	0	$	4,465,025	$	0	$	0		$	4,465,025
Obligations of U.S. states and their political subdivisions	0		89,974		0		0			89,974
Foreign government bonds	0		69,299		87		0			69,386
U.S. corporate public securities	0		1,909,440		15,598		0			1,925,038
U.S. corporate private securities	0		997,004		124,864		0			1,121,868
Foreign corporate public securities	0		217,363		0		0			217,363
Foreign corporate private securities	0		526,504		11,527		0			538,031
Asset-backed securities(4)	0		219,574		31,735		0			251,309
Commercial mortgage-backed securities	0		484,713		0		0			484,713
Residential mortgage-backed securities	0		200,056		0		0			200,056
Subtotal	0		9,178,952		183,811		0			9,362,763
Trading account assets:
U.S Treasury securities and obligations of U.S. government authorities and agencies	0		116,184		0		0			116,184
Corporate securities	0		21,632		0		0			21,632
Asset-backed securities(4)	0		1,697		0		0			1,697
Equity securities	5,494		0		4,864		0			10,358
Subtotal	5,494		139,513		4,864		0			149,871
Equity securities, available-for-sale	0		18		0		0			18
Short-term investments	519,000		392,700		450		0			912,150
Cash equivalents	738,449		847,329		375		0			1,586,153
Other long-term investments(5)	23,967		4,872,392		0		(4,582,540		)	313,819
Reinsurance recoverables	0		0		240,091		0			240,091
Receivables from parent and affiliates	0		6,962		33,962		0			40,924
Subtotal excluding separate account assets	1,286,910		15,437,866		463,553		(4,582,540		)	12,605,789
Separate account assets(2)	0		37,429,739		0		0			37,429,739
Total assets	$	1,286,910	$	52,867,605	$	463,553	$	(4,582,540	)	$	50,035,528
Future policy benefits(3)	$	0	$	0	$	7,707,333	$	0		$	7,707,333
Payables to parent and affiliates	0		1,654,360		0		(1,654,360		)	0
Other liabilities	$	5,051	$	0	$	0	$	0		$	5,051
Total liabilities	$	5,051	$	1,654,360	$	7,707,333	$	(1,654,360	)	$	7,712,384


(1)	“Netting” amounts represent cash collateral of $2,978 million and $2,928 million as of December 31, 2017 and 2016, respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements.

(2)

Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Statements of Financial Position.

(3)

As of December 31, 2017, the net embedded derivative liability position of $8,152 million includes $819 million of embedded derivatives in an asset position and $8,971 million of embedded derivatives in a liability position. As of December 31, 2016, the net embedded derivative liability position of $7,707 million includes $1,060 million of embedded derivatives in an asset position and $8,767 million of embedded derivatives in a liability position.


(4)	Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.


(5)	Other long-term investments excluded from the fair value hierarchy include certain hedge funds, private funds and other funds for which fair value is measured at net asset value ("NAV") per share (or its equivalent) as a practical expedient. At December 31, 2017 and 2016, the fair values of these investments were $0.3 million and $0.4 million.

Fair Value Inputs, Assets, Quantitative Information

The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities.



	As of December 31, 2017
	Fair Value		Primary Valuation Techniques	Unobservable Inputs	Minimum		Maximum		Weighted Average		Impact of Increase in Input on Fair Value(1)

	(in thousands)
Assets:
Corporate securities	$	22,215	Discounted cash flow	Discount rate	5.06	%	22.23	%	8.57	%	Decrease
Reinsurance recoverables	$	244,006	Fair values are determined in the same manner as future policy benefits
Liabilities:
Future policy benefits(2)	$	8,151,902	Discounted cash flow	Lapse rate(3)	1	%	12	%			Decrease
				Spread over LIBOR(4)	0.12	%	1.10	%			Decrease
				Utilization rate(5)	52	%	97	%			Increase
				Withdrawal rate	See table footnote (6) below
				Mortality rate(7)	0	%	14	%			Decrease
				Equity volatility curve	13	%	24	%			Increase



	As of December 31, 2016
	Fair Value		Primary Valuation Techniques	Unobservable Inputs	Minimum		Maximum		Weighted Average		Impact of Increase in Input on Fair Value (1)

	(in thousands)
Assets:
Corporate securities	$	136,391	Discounted cash flow	Discount rate	3.24	%	17.12	%	4.71	%	Decrease
			Liquidation	Liquidation Value	98.21	%	98.68	%	98.64	%	Increase
Reinsurance recoverables	$	240,091	Fair values are determined in the same manner as future policy benefits
Liabilities:
Future policy benefits(2)	$	7,707,333	Discounted cash flow	Lapse rate(3)	0	%	13	%			Decrease
				Spread over LIBOR(4)	0.25	%	1.50	%			Decrease
				Utilization rate(5)	52	%	96	%			Increase
				Withdrawal rate	See table footnote (6) below
				Mortality rate(7)	0	%	14	%			Decrease
				Equity volatility curve	16	%	25	%			Increase


(1)	Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table.

(2)

Future policy benefits primarily represent general account liabilities for the living benefit guarantees of the Company’s variable annuity contracts which are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation.


(3)	Lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefit, and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates are also generally assumed to be lower for the period where surrender charges apply.

(4)

The spread over LIBOR swap curve represents the premium added to the risk-free discount rate (i.e., LIBOR) to reflect our estimates of rates that a market participant would use to value the living benefit contracts in both the accumulation and payout phases. This spread includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because both funding agreements and living benefit contracts are insurance liabilities and are therefore senior to debt.

(5)

The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration, and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits.

(6)

The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of December 31, 2017 and 2016, the minimum withdrawal rate assumption is 78% and the maximum withdrawal rate assumption may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%.

(7)

Range reflects the mortality rate for the vast majority of business with living benefits, with policyholders ranging from 35 to 90 years old. While the majority of living benefits have a minimum age requirement, certain benefits do not have an age restriction. This results in contractholders for certain benefits with mortality rates approaching 0%. Based on historical experience, the Company applies a set of age and duration specific mortality rate adjustments compared to standard industry tables. A mortality improvement assumption is also incorporated into the overall mortality table.

Fair Value Inputs, Liabilities, Quantitative Information

The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities.



	As of December 31, 2017
	Fair Value		Primary Valuation Techniques	Unobservable Inputs	Minimum		Maximum		Weighted Average		Impact of Increase in Input on Fair Value(1)

	(in thousands)
Assets:
Corporate securities	$	22,215	Discounted cash flow	Discount rate	5.06	%	22.23	%	8.57	%	Decrease
Reinsurance recoverables	$	244,006	Fair values are determined in the same manner as future policy benefits
Liabilities:
Future policy benefits(2)	$	8,151,902	Discounted cash flow	Lapse rate(3)	1	%	12	%			Decrease
				Spread over LIBOR(4)	0.12	%	1.10	%			Decrease
				Utilization rate(5)	52	%	97	%			Increase
				Withdrawal rate	See table footnote (6) below
				Mortality rate(7)	0	%	14	%			Decrease
				Equity volatility curve	13	%	24	%			Increase



	As of December 31, 2016
	Fair Value		Primary Valuation Techniques	Unobservable Inputs	Minimum		Maximum		Weighted Average		Impact of Increase in Input on Fair Value (1)

	(in thousands)
Assets:
Corporate securities	$	136,391	Discounted cash flow	Discount rate	3.24	%	17.12	%	4.71	%	Decrease
			Liquidation	Liquidation Value	98.21	%	98.68	%	98.64	%	Increase
Reinsurance recoverables	$	240,091	Fair values are determined in the same manner as future policy benefits
Liabilities:
Future policy benefits(2)	$	7,707,333	Discounted cash flow	Lapse rate(3)	0	%	13	%			Decrease
				Spread over LIBOR(4)	0.25	%	1.50	%			Decrease
				Utilization rate(5)	52	%	96	%			Increase
				Withdrawal rate	See table footnote (6) below
				Mortality rate(7)	0	%	14	%			Decrease
				Equity volatility curve	16	%	25	%			Increase


(1)	Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table.

(2)


(3)	Lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefit, and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates are also generally assumed to be lower for the period where surrender charges apply.

(4)

(5)

(6)

(7)

Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods.



	Year Ended December 31, 2017
	Fixed Maturities Available-For-Sale
	U.S. Government		Foreign Government			Corporate Securities(5)			Asset-Backed Securities(4)
	(in thousands)
Fair value, beginning of period	$	0	$	87		$	151,989		$	31,735
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net	0		0			(6,877		)	576
Asset management fees and other income	0		0			0			0
Included in other comprehensive income (loss)	0		0			(3,627		)	217
Net investment income	0		0			7,874			183
Purchases	4,264		0			17,920			237,469
Sales	0		0			(15,283		)	(5,613		)
Issuances	0		0			0			0
Settlements	0		0			(111,675		)	(55,184		)
Transfers into Level 3(1)	0		0			64,412			106,034
Transfers out of Level 3(1)	0		(87		)	(5,370		)	(130,059		)
Other(3)	973		0			(4,157		)	0
Fair Value, end of period	$	5,237	$	0		$	95,206		$	185,358
Unrealized gains (losses) for assets still held(2):
Included in earnings:
Realized investment gains (losses), net	$	0	$	0		$	(6,498	)	$	(8	)
Asset management fees and other income	$	0	$	0		$	0		$	0



	Year Ended December 31, 2017
	Trading Account Assets
	Asset-Backed Securities(4)		Equity Securities		Equity Securities, Available- for-Sale			Short-term Investments			Cash Equivalents
	(in thousands)
Fair value, beginning of period	$	0	$	4,864	$	0		$	450		$	375
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net	0		0		0			0			0
Asset management fees and other income	0		689		0			0			0
Included in other comprehensive income (loss)	0		0		351			0			0
Net investment income	0		0		0			0			0
Purchases	0		0		0			94			0
Sales	0		0		0			(5		)	0
Issuances	0		0		0			0			0
Settlements	0		0		0			(2		)	0
Transfers into Level 3(1)	0		0		0			0			0
Transfers out of Level 3(1)	0		0		0			0			0
Other(3)	0		4,205		(351		)	(450		)	(375		)
Fair Value, end of period	$	0	$	9,758	$	0		$	87		$	0
Unrealized gains (losses) for assets still held(2):
Included in earnings:
Realized investment gains (losses), net	$	0	$	0	$	0		$	0		$	0
Asset management fees and other income	$	0	$	338	$	0		$	0		$	0



	Year Ended December 31, 2017
	Other Long-term Investments			Reinsurance Recoverables			Receivables from Parent and Affiliates			Future Policy Benefits
	(in thousands)
Fair value, beginning of period	$	0		$	240,091		$	33,962		$	(7,707,333	)
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(6)	(7		)	(18,240		)	0			552,047
Asset management fees and other income	0			0			0			0
Included in other comprehensive income (loss)	0			0			0			0
Net investment income	0			0			0			0
Purchases	0			19,416			0			0
Sales	0			0			0			0
Issuances	0			0			0			(996,616		)
Settlements	0			0			0			0
Transfers into Level 3(1)	0			0			0			0
Transfers out of Level 3(1)	0			0			(33,962		)	0
Other(3)	154			2,739			0			0
Fair value, end of period	$	147		$	244,006		$	0		$	(8,151,902	)
Unrealized gains (losses) for assets/liabilities still held(2):
Included in earnings:
Realized investment gains (losses), net	$	(7	)	$	(10,303	)	$	0		$	307,529
Asset management fees and other income	$	0		$	0		$	0		$	0



	Year Ended December 31, 2016
	Fixed Maturities Available-For-Sale
	Foreign Government			Corporate Securities(5)			Asset-Backed Securities(4)
	(in thousands)
Fair value, beginning of period	$	0		$	127,308		$	46,493
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net	0			(3,988		)	(26		)
Asset management fees and other income	0			0			0
Included in other comprehensive income (loss)	(8		)	2,313			161
Net investment income	0			5,835			139
Purchases	0			22,871			72,939
Sales	0			(105		)	(6,739		)
Issuances	0			0			0
Settlements	0			(9,085		)	(540		)
Transfers into Level 3(1)	95			19,694			34,984
Transfers out of Level 3(1)	0			(12,854		)	(115,676		)
Other	0			0			0
Fair value, end of period	$	87		$	151,989		$	31,735
Unrealized gains (losses) for assets still held(2):
Included in earnings:
Realized investment gains (losses), net	$	0		$	(4,917	)	$	(26	)
Asset management fees and other income	$	0		$	0		$	0



	Year Ended December 31, 2016
	Trading Account Assets
	Asset-Backed Securities(4)			Equity Securities			Equity Securities, Available-For-Sale			Short-Term Investments		Cash Equivalents
	(in thousands)
Fair value, beginning of period	$	0		$	0		$	0		$	450	$	225
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net	0			0			0			0		0
Asset management fees and other income	(161		)	(123		)	0			0		0
Included in other comprehensive income (loss)	0			0			(351		)	0		0
Net investment income	0			0			0			0		0
Purchases	0			3,422			351			0		150
Sales	0			0			0			0		0
Issuances	0			0			0			0		0
Settlements	(2,634		)	0			0			0		0
Transfers into Level 3(1)	0			0			0			0		0
Transfers out of Level 3(1)	0			0			0			0		0
Other(3)	2,795			1,565			0			0		0
Fair value, end of period	$	0		$	4,864		$	0		$	450	$	375
Unrealized gains (losses) for assets still held(2):
Included in earnings:
Realized investment gains (losses), net	$	0		$	0		$	0		$	0	$	0
Asset management fees and other income	$	0		$	(123	)	$	0		$	0	$	0



	Year Ended December 31, 2016
	Other Long-term Investments			Reinsurance Recoverables			Receivables from Parent and Affiliates			Future Policy Benefits
	(in thousands)
Fair value, beginning of period	$	1,565		$	3,012,653		$	7,664		$	(3,134,077	)
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(6)	0			(2,852,588		)	(13		)	(3,791,759		)
Asset management fees and other income	0			0			0			0
Included in other comprehensive income (loss)	0			0			50			0
Net investment income	0			0			0			0
Purchases	0			70,448			34,000			0
Sales	0			0			(1,987		)	0
Issuances	0			0			0			(781,497		)
Settlements	0			0			0			0
Transfers into Level 3(1)	0			0			0			0
Transfers out of Level 3(1)	0			0			(2,957		)	0
Other(3)	(1,565		)	9,578			(2,795		)	0
Fair value, end of period	$	0		$	240,091		$	33,962		$	(7,707,333	)
Unrealized gains (losses) for assets/liabilities still held(2):
Included in earnings:
Realized investment gains (losses), net	$	0		$	59,501		$	0		$	(3,740,535	)
Asset management fees and other income	$	0		$	0		$	0		$	0

The following tables summarize the portion of changes in fair values of Level 3 assets and liabilities included in earnings and other comprehensive income for the year ended December 31, 2015, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held as of December 31, 2015.



	Year Ended December 31, 2015
	Fixed Maturities Available-For-Sale
	Foreign Government		Corporate Securities(5)			Asset-Backed Securities(4)
	(in thousands)
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net	$	0	$	46		$	9
Asset management fees and other income	$	0	$	0		$	0
Included in other comprehensive income (loss)	$	0	$	(3,039	)	$	(170	)
Net investment income	$	0	$	5,274		$	49
Unrealized gains (losses) for assets still held(2):
Included in earnings:
Realized investment gains (losses), net	$	0	$	0		$	0
Asset management fees and other income	$	0	$	0		$	0



	Year Ended December 31, 2015
	Trading Account Assets
	Asset-Backed Securities(4)		Equity Securities		Equity Securities, Available-For-Sale		Short-term Investments		Cash Equivalents
	(in thousands)
Total gains or (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net	$	0	$	0	$	0	$	0	$	0
Asset management fees and other income	$	0	$	0	$	0	$	0	$	0
Included in other comprehensive income (loss)	$	0	$	0	$	0	$	0	$	0
Net investment income	$	0	$	0	$	0	$	0	$	0
Unrealized gains (losses) for assets/liabilities still held(2):
Included in earnings:
Realized investment gains (losses), net	$	0	$	0	$	0	$	0	$	0
Asset management fees and other income	$	0	$	0	$	0	$	0	$	0



	Year Ended December 31, 2015
	Other Long-term Investments		Reinsurance Recoverables			Receivables from Parent and Affiliates			Future Policy Benefits
	(in thousands)
Total gains(losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net(6)	$	1,405	$	(212,035	)	$	0		$	217,101
Asset management fees and other income	$	0	$	0		$	0		$	0
Included in other comprehensive income (loss)	$	0	$	0		$	(264	)	$	0
Net investment income	$	0	$	0		$	1		$	0
Unrealized gains (losses) for assets/liabilities still held(2):
Included in earnings:
Realized investment gains (losses), net	$	1,405	$	(117,840	)	$	0		$	119,609
Asset management fees and other income	$	0	$	0		$	0		$	0


(1)	Transfers into or out of any level are generally reported at the value as of the beginning of the quarter in which the transfer occurs for any such assets still held at the end of the quarter.


(2)	Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts.


(3)	Other primarily represents reclassifications of certain assets and liabilities between reporting categories.


(4)	Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.


(5)	Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. Prior period amounts were aggregated to conform to current period presentation.


(6)	Realized investment gains (losses) on Future Policy Benefits and Reinsurance Recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts. Refer to Note 1 for impacts to Realized investment gains (losses) related to the Variable Annuities Recapture.

Fair Value Disclosure Financial Instruments Not Carried at Fair Value

The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value.



	December 31, 2017(1)
	Fair Value								Carrying Amount(2)
	Level 1		Level 2		Level 3		Total		Total

	(in thousands)
Assets:
Commercial mortgage and other loans	$	0	$	0	$	1,396,167	$	1,396,167	$	1,387,012
Policy loans	0		0		12,558		12,558		12,558
Short-term investments	0		0		0		0		0
Cash and cash equivalents	493,473		0		0		493,473		493,473
Accrued investment income	0		88,331		0		88,331		88,331
Reinsurance recoverables	0		0		59,588		59,588		59,588
Receivables from parent and affiliates	0		11,206		0		11,206		11,206
Other assets	0		13,802		0		13,802		13,802
Total assets	$	493,473	$	113,339	$	1,468,313	$	2,075,125	$	2,065,970
Liabilities:
Policyholders’ account balances - investment contracts	$	0	$	0	$	281,582	$	281,582	$	281,051
Cash collateral for loaned securities	0		17,383		0		17,383		17,383
Short-term debt	0		43,734		0		43,734		43,734
Long-term debt	0		1,003,251		0		1,003,251		928,165
Reinsurance Payables	0		0		59,588		59,588		59,588
Payables to parent and affiliates	0		36,026		0		36,026		36,026
Other liabilities	0		135,556		0		135,556		135,556
Separate account liabilities - investment contracts	0		102		0		102		102
Total liabilities	$	0	$	1,236,052	$	341,170	$	1,577,222	$	1,501,605



	December 31, 2016(1)
	Fair Value								Carrying Amount(2)
	Level 1		Level 2		Level 3		Total		Total

	(in thousands)
Assets:
Commercial mortgage and other loans	$	0	$	0	$	1,235,842	$	1,235,842	$	1,231,893
Policy loans	0		0		12,719		12,719		12,719
Short-term investments	0		35,000		0		35,000		35,000
Cash and cash equivalents	6,886		255,000		0		261,886		261,886
Accrued investment income	0		86,004		0		86,004		86,004
Reinsurance recoverables	0		0		63,775		63,775		63,775
Receivables from parent and affiliates	0		70,779		0		70,779		70,779
Other assets	0		53,858		0		53,858		53,858
Total assets	$	6,886	$	500,641	$	1,312,336	$	1,819,863	$	1,815,914
Liabilities:
Policyholders’ account balances - investment contracts	$	0	$	0	$	247,986	$	247,986	$	250,493
Cash collateral for loaned securities	0		23,350		0		23,350		23,350
Short-term debt	0		28,146		0		28,146		28,101
Long-term debt	0		994,198		0		994,198		971,899
Reinsurance payables	0		0		63,775		63,775		63,775
Payables to parent and affiliates	0		91,432		0		91,432		91,432
Other liabilities	0		189,366		0		189,366		189,366
Separate account liabilities - investment contracts	0		187		0		187		187
Total liabilities	$	0	$	1,326,679	$	311,761	$	1,638,440	$	1,618,603

(1)

Other long-term investments excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at NAV per share (or its equivalent) as a practical expedient. At December 31, 2017 and December 31, 2016, the fair values of these cost method investments were $6.4 million and $3.4 million, respectively. The carrying values of these investments were $6.0 million and $3.1 million as of December 31, 2017 and December 31, 2016, respectively.

(2)

Carrying values presented herein differ from those in the Company’s Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments. Financial statement captions excluded from the above table are not considered financial instruments.