ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Arizona | 06-1241288 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) |
Large accelerated filer | ¨ | Accelerated filer | ¨ |
Non-accelerated filer | x | Smaller reporting company | ¨ |
Emerging growth company | ¨ |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered |
Not Applicable | Not Applicable | Not Applicable |
Page | |||
Item 1. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Item 1. | |||
Item 1A. | |||
Item 6. | |||
March 31, 2019 | December 31, 2018 | ||||||
ASSETS | |||||||
Fixed maturities, available-for-sale, at fair value (amortized cost: 2019 – $11,736,191; 2018 – $10,186,465) | $ | $ | |||||
Fixed maturities, trading, at fair value (amortized cost: 2019 – $327,977; 2018 – $294,549) | |||||||
Equity securities, at fair value (cost: 2019 – $23,456; 2018 – $18,765) | |||||||
Commercial mortgage and other loans | |||||||
Policy loans | |||||||
Short-term investments | |||||||
Other invested assets (includes $8,200 and $50,945 measured at fair value at March 31, 2019 and December 31, 2018, respectively) | |||||||
Total investments | |||||||
Cash and cash equivalents | |||||||
Deferred policy acquisition costs | |||||||
Accrued investment income | |||||||
Reinsurance recoverables | |||||||
Income taxes | |||||||
Value of business acquired | |||||||
Deferred sales inducements | |||||||
Receivables from parent and affiliates | |||||||
Other assets | |||||||
Separate account assets | |||||||
TOTAL ASSETS | $ | $ | |||||
LIABILITIES AND EQUITY | |||||||
LIABILITIES | |||||||
Future policy benefits | $ | $ | |||||
Policyholders’ account balances | |||||||
Payables to parent and affiliates | |||||||
Cash collateral for loaned securities | |||||||
Short-term debt | |||||||
Long-term debt | |||||||
Reinsurance payables | |||||||
Other liabilities | |||||||
Separate account liabilities | |||||||
Total liabilities | |||||||
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 10) | |||||||
EQUITY | |||||||
Common stock, $100 par value; 25,000 shares authorized, issued and outstanding | |||||||
Additional paid-in capital | |||||||
Retained earnings | |||||||
Accumulated other comprehensive income (loss) | ( | ) | ( | ) | |||
Total equity | |||||||
TOTAL LIABILITIES AND EQUITY | $ | $ |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
REVENUES | |||||||
Premiums | $ | $ | |||||
Policy charges and fee income | |||||||
Net investment income | |||||||
Asset administration fees and other income | |||||||
Realized investment gains (losses), net: | |||||||
Other-than-temporary impairments on fixed maturity securities | ( | ) | ( | ) | |||
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income (loss) | ( | ) | |||||
Other realized investment gains (losses), net | ( | ) | |||||
Total realized investment gains (losses), net | ( | ) | |||||
Total revenues | ( | ) | |||||
BENEFITS AND EXPENSES | |||||||
Policyholders’ benefits | |||||||
Interest credited to policyholders’ account balances | |||||||
Amortization of deferred policy acquisition costs | ( | ) | |||||
Commission expense | |||||||
General, administrative and other expenses | |||||||
Total benefits and expenses | |||||||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | ( | ) | |||||
Income tax expense (benefit) | |||||||
NET INCOME (LOSS) | $ | ( | ) | $ | |||
Other comprehensive income (loss), before tax: | |||||||
Foreign currency translation adjustments | ( | ) | |||||
Net unrealized investment gains (losses) | ( | ) | |||||
Total | ( | ) | |||||
Less: Income tax expense (benefit) related to other comprehensive income (loss) | ( | ) | |||||
Other comprehensive income (loss), net of tax | ( | ) | |||||
Comprehensive income (loss) | $ | ( | ) | $ |
Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Total Equity | |||||||||||||||
Balance, December 31, 2018 | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Cumulative effect of adoption of accounting changes(1) | ( | ) | ( | ) | |||||||||||||||
Return of capital | ( | ) | ( | ) | |||||||||||||||
Comprehensive income: | |||||||||||||||||||
Net income (loss) | ( | ) | ( | ) | |||||||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||||||||
Total comprehensive income (loss) | ( | ) | |||||||||||||||||
Balance, March 31, 2019 | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Total Equity | |||||||||||||||
Balance, December 31, 2017 | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||
Cumulative effect of adoption of ASU 2016-01 | ( | ) | |||||||||||||||||
Cumulative effect of adoption of ASU 2018-02 | ( | ) | |||||||||||||||||
Return of capital | ( | ) | ( | ) | |||||||||||||||
Comprehensive income: | |||||||||||||||||||
Net income (loss) | |||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ) | ( | ) | |||||||||||||||
Total comprehensive income (loss) | |||||||||||||||||||
Balance, March 31, 2018 | $ | $ | $ | ( | ) | $ | ( | ) | $ |
2019 | 2018 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income (loss) | $ | ( | ) | $ | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Policy charges and fee income | ( | ) | ( | ) | |||
Realized investment (gains) losses, net | ( | ) | |||||
Depreciation and amortization | ( | ) | |||||
Interest credited to policyholders’ account balances | |||||||
Change in: | |||||||
Future policy benefits | |||||||
Accrued investment income | ( | ) | |||||
Net receivables from/payables to parent and affiliates | |||||||
Deferred sales inducements | ( | ) | ( | ) | |||
Deferred policy acquisition costs | ( | ) | |||||
Income taxes | |||||||
Reinsurance recoverables, net | |||||||
Derivatives, net | ( | ) | ( | ) | |||
Other, net (1) | ( | ) | |||||
Cash flows from (used in) operating activities | ( | ) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Proceeds from the sale/maturity/prepayment of: | |||||||
Fixed maturities, available-for-sale | |||||||
Fixed maturities, trading | |||||||
Equity securities | |||||||
Commercial mortgage and other loans | |||||||
Policy loans | |||||||
Other invested assets | |||||||
Short-term investments | |||||||
Payments for the purchase/origination of: | |||||||
Fixed maturities, available for sale | ( | ) | ( | ) | |||
Fixed maturities, trading | ( | ) | |||||
Equity securities | ( | ) | ( | ) | |||
Commercial mortgage and other loans | ( | ) | ( | ) | |||
Policy loans | ( | ) | ( | ) | |||
Other invested assets | ( | ) | ( | ) | |||
Short-term investments | ( | ) | |||||
Notes receivable from parent and affiliates, net | |||||||
Derivatives, net | ( | ) | ( | ) | |||
Other, net | ( | ) | |||||
Cash flows from (used in) investing activities | ( | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Cash collateral for loaned securities | ( | ) | ( | ) | |||
Repayments of debt (maturities longer than 90 days) | ( | ) | |||||
Drafts outstanding | ( | ) | ( | ) | |||
Distribution to Parent | ( | ) | ( | ) | |||
Policyholders' account deposits | |||||||
Ceded policyholders' account deposits | ( | ) | ( | ) | |||
Policyholders' account withdrawals | ( | ) | ( | ) | |||
Ceded policyholders' account withdrawals | |||||||
Cash flows from (used in) financing activities | ( | ) | ( | ) | |||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | ( | ) | |||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | |||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | $ |
Standard | Description | Effective date and method of adoption | Effect on the financial statements or other significant matters | |||
ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization on Purchased Callable Debt Securities | This ASU requires certain premiums on callable debt securities to be amortized to the earliest call date. | January 1, 2019 using the modified retrospective method which included cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. | Adoption of the ASU did not have a significant impact on the Company’s Financial Statements and Notes to the Financial Statements. The impact of the cumulative-effect adjustment to retained earnings was immaterial. | |||
ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities | This ASU makes targeted changes to the existing hedge accounting model to better portray the economics of an entity’s risk management activities and to simplify the use of hedge accounting. The ASU eliminates separate measurement and recording of hedge ineffectiveness. It requires entities to present the earnings effect of the hedging instrument in the same income statement line item in which the hedged item is reported and also requires expanded disclosures. | January 1, 2019 using the modified retrospective method which included cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. | Adoption of the ASU did not have a significant impact on the Company’s Financial Statements and Notes to the Financial Statements. The impact of the cumulative-effect adjustment to retained earnings and accumulated other comprehensive income (loss) ("AOCI") related to ineffectiveness of the hedge instruments outstanding at the date of the adoption was immaterial. See Note 4 for additional required disclosures. |
ASU 2018-12 Amended Topic | Description | Method of adoption | Effect on the financial statements or other significant matters | |||
Cash flow assumptions used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products | Requires an entity to review, and if necessary, update the cash flow assumptions used to measure the liability for future policy benefits, for both changes in future assumptions and actual experience, at least annually using a retrospective update method with a cumulative catch-up adjustment recorded in a separate line item in the Statements of Operations. | An entity may choose one of two adoption methods for the liability for future policy benefits: (1) a modified retrospective transition method whereby the entity will apply the amendments to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or (2) a full retrospective transition method. | The options for method of adoption and the impacts of such methods are under assessment. | |||
Discount rate assumption used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products | Requires discount rate assumptions to be based on an upper-medium grade fixed income instrument yield and will be required to be updated each quarter with the impact recorded through Other Comprehensive Income ("OCI"). | As noted above, an entity may choose either a modified retrospective transition method or full retrospective transition method for the liability for future policy benefits. Under either method, for balance sheet remeasurement purposes, the liability for future policy benefits will be remeasured using current discount rates as of the beginning of the earliest period presented with the impact recorded as a cumulative effect adjustment to AOCI. | Upon adoption, under either transition method, there will be an adjustment to AOCI as a result of remeasuring in force contract liabilities using current upper-medium grade fixed income instrument yields. The adjustment upon adoption will largely reflect the difference between the discount rate locked-in at contract inception versus current discount rates at transition. The magnitude of such adjustment is currently being assessed. | |||
Amortization of DAC and other balances | Requires DAC and other balances, such as unearned revenue reserves and DSI, to be amortized on a constant level basis over the expected term of the related contract, independent of expected profitability. | An entity may apply one of two adoption methods: (1) a modified retrospective transition method whereby the entity will apply the amendments to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or (2) if an entity chooses a full retrospective transition method for its future policy benefits, as described above, it is required to also use a retrospective transition method for DAC and other balances. | The options for method of adoption and the impacts of such methods are under assessment. Under the modified retrospective transition method, the Company would not expect a significant impact to the balance sheet, other than the impact of the removal of any related amounts in AOCI. | |||
Market Risk Benefits | Requires an entity to measure all market risk benefits (e.g., living benefit and death benefit guarantees associated with variable annuities) at fair value with changes in value attributable to changes in an entity’s non-performance risk ("NPR") to be recognized in OCI. | An entity will apply a retrospective transition method which will include a cumulative-effect adjustment on the balance sheet as of the earliest period presented. | Upon adoption, the Company expects an impact to retained earnings for the difference between the fair value and carrying value of benefits not currently measured at fair value (e.g., guaranteed minimum death benefits on variable annuities) and an impact from reclassifying the cumulative effect of changes in NPR from retained earnings to AOCI. The magnitude of such adjustments is currently being assessed. |
Standard | Description | Effective date and method of adoption | Effect on the financial statements or other significant matters | |||
ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments | This ASU provides a new current expected credit loss model to account for credit losses on certain financial assets and off-balance sheet exposures (e.g., loans held for investment, debt securities held to maturity, reinsurance receivables, net investments in leases and loan commitments). The model requires an entity to estimate lifetime credit losses related to such financial assets and exposures based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The standard also modifies the current other-than-temporary impairment standard for available-for-sale debt securities to require the use of an allowance rather than a direct write down of the investment, and replaces existing standard for purchased credit deteriorated loans and debt securities. | January 1, 2020 using the modified retrospective method which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. However, prospective application is required for purchased credit deteriorated assets previously accounted for under ASU 310-30 and for debt securities for which an other-than-temporary impairment was recognized prior to the date of adoption. Early adoption is permitted beginning January 1, 2019. | The Company does not plan to early adopt this ASU and is currently assessing its impact on the Company’s Financial Statements and Notes to the Financial Statements. |
March 31, 2019 | |||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | OTTI in AOCI(3) | |||||||||||||||
(in thousands) | |||||||||||||||||||
Fixed maturities, available-for-sale: | |||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government authorities and agencies | $ | $ | $ | $ | $ | ||||||||||||||
Obligations of U.S. states and their political subdivisions | |||||||||||||||||||
Foreign government bonds | |||||||||||||||||||
U.S. public corporate securities | |||||||||||||||||||
U.S. private corporate securities | |||||||||||||||||||
Foreign public corporate securities | |||||||||||||||||||
Foreign private corporate securities | |||||||||||||||||||
Asset-backed securities(1) | ( | ) | |||||||||||||||||
Commercial mortgage-backed securities | |||||||||||||||||||
Residential mortgage-backed securities(2) | |||||||||||||||||||
Total fixed maturities, available-for-sale | $ | $ | $ | $ | $ | ( | ) |
(1) | Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, auto loans, equipment leases, education loans and other asset types. |
(2) | Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. |
(3) | Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $ |
December 31, 2018 | |||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | OTTI in AOCI(3) | |||||||||||||||
(in thousands) | |||||||||||||||||||
Fixed maturities, available-for-sale: | |||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government authorities and agencies | $ | $ | $ | $ | $ | ||||||||||||||
Obligations of U.S. states and their political subdivisions | |||||||||||||||||||
Foreign government bonds | |||||||||||||||||||
U.S. public corporate securities | |||||||||||||||||||
U.S. private corporate securities | |||||||||||||||||||
Foreign public corporate securities | |||||||||||||||||||
Foreign private corporate securities | |||||||||||||||||||
Asset-backed securities(1) | ( | ) | |||||||||||||||||
Commercial mortgage-backed securities | |||||||||||||||||||
Residential mortgage-backed securities(2) | |||||||||||||||||||
Total fixed maturities, available-for-sale | $ | $ | $ | $ | $ | ( | ) |
(1) | Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, auto loans, equipment leases, education loans and other asset types. |
(2) | Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. |
(3) |
March 31, 2019 | |||||||||||||||||||||||
Less Than Twelve Months | Twelve Months or More | Total | |||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Fixed maturities, available-for-sale: | |||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government authorities and agencies | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Obligations of U.S. states and their political subdivisions | |||||||||||||||||||||||
Foreign government bonds | |||||||||||||||||||||||
U.S. public corporate securities | |||||||||||||||||||||||
U.S. private corporate securities | |||||||||||||||||||||||
Foreign public corporate securities | |||||||||||||||||||||||
Foreign private corporate securities | |||||||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||
Commercial mortgage-backed securities | |||||||||||||||||||||||
Residential mortgage-backed securities | |||||||||||||||||||||||
Total fixed maturities, available-for-sale | $ | $ | $ | $ | $ | $ |
December 31, 2018 | |||||||||||||||||||||||
Less Than Twelve Months | Twelve Months or More | Total | |||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Fixed maturities, available-for-sale: | |||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government authorities and agencies | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Obligations of U.S. states and their political subdivisions | |||||||||||||||||||||||
Foreign government bonds | |||||||||||||||||||||||
U.S. public corporate securities | |||||||||||||||||||||||
U.S. private corporate securities | |||||||||||||||||||||||
Foreign public corporate securities | |||||||||||||||||||||||
Foreign private corporate securities | |||||||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||
Commercial mortgage-backed securities | |||||||||||||||||||||||
Residential mortgage-backed securities | |||||||||||||||||||||||
Total fixed maturities, available-for-sale | $ | $ | $ | $ | $ | $ |
March 31, 2019 | |||||||
Amortized Cost | Fair Value | ||||||
(in thousands) | |||||||
Fixed maturities, available-for-sale: | |||||||
Due in one year or less | $ | $ | |||||
Due after one year through five years | |||||||
Due after five years through ten years | |||||||
Due after ten years | |||||||
Asset-backed securities | |||||||
Commercial mortgage-backed securities | |||||||
Residential mortgage-backed securities | |||||||
Total fixed maturities, available-for-sale | $ | $ |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
(in thousands) | ||||||||
Fixed maturities, available-for-sale | ||||||||
Proceeds from sales(1) | $ | $ | ||||||
Proceeds from maturities/prepayments | ||||||||
Gross investment gains from sales and maturities | ||||||||
Gross investment losses from sales and maturities | ( | ) | ( | ) | ||||
OTTI recognized in earnings(2) | ( | ) | ( | ) |
(1) | Includes $ |
(2) |
Three Months Ended March 31, | |||||||||
2019 | 2018 | ||||||||
(in thousands) | |||||||||
Credit loss impairments: | |||||||||
Balance, beginning of period | $ | ( | ) | $ | |||||
New credit loss impairments | |||||||||
Increases due to the passage of time on previously recorded credit losses | |||||||||
Reductions for securities which matured, paid down, prepaid or were sold during the period | ( | ) | |||||||
Balance, end of period | $ | $ |
March 31, 2019 | December 31, 2018 | ||||||||||||
Amount (in thousands) | % of Total | Amount (in thousands) | % of Total | ||||||||||
Commercial mortgage and agricultural property loans by property type: | |||||||||||||
Apartments/Multi-Family | $ | % | $ | % | |||||||||
Hospitality | |||||||||||||
Industrial | |||||||||||||
Office | |||||||||||||
Other | |||||||||||||
Retail | |||||||||||||
Total commercial mortgage loans | |||||||||||||
Agricultural property loans | |||||||||||||
Total commercial mortgage and agricultural property loans by property type | % | % | |||||||||||
Allowance for credit losses | ( | ) | ( | ) | |||||||||
Total commercial mortgage and other loans | $ | $ |
Commercial Mortgage Loans | Agricultural Property Loans | Total | |||||||||
(in thousands) | |||||||||||
Balance at December 31, 2017 | $ | $ | $ | ||||||||
Addition to (release of) allowance for credit losses | |||||||||||
Charge-offs, net of recoveries | |||||||||||
Balance at December 31, 2018 | |||||||||||
Addition to (release of) allowance for credit losses | ( | ) | ( | ) | |||||||
Charge-offs, net of recoveries | |||||||||||
Balance at March 31, 2019 | $ | $ | $ |
March 31, 2019 | |||||||||||
Commercial Mortgage Loans | Agricultural Property Loans | Total | |||||||||
(in thousands) | |||||||||||
Allowance for credit losses: | |||||||||||
Individually evaluated for impairment | $ | $ | $ | ||||||||
Collectively evaluated for impairment | |||||||||||
Total ending balance(1) | $ | $ | $ | ||||||||
Recorded investment(2): | |||||||||||
Individually evaluated for impairment | $ | $ | $ | ||||||||
Collectively evaluated for impairment | |||||||||||
Total ending balance(1) | $ | $ | $ |
(1) | As of March 31, 2019, there were |
(2) | Recorded investment reflects the carrying value gross of related allowance. |
December 31, 2018 | |||||||||||
Commercial Mortgage Loans | Agricultural Property Loans | Total | |||||||||
(in thousands) | |||||||||||
Allowance for credit losses: | |||||||||||
Individually evaluated for impairment | $ | $ | $ | ||||||||
Collectively evaluated for impairment | |||||||||||
Total ending balance(1) | $ | $ | $ | ||||||||
Recorded investment(2): | |||||||||||
Individually evaluated for impairment | $ | $ | $ | ||||||||
Collectively evaluated for impairment | |||||||||||
Total ending balance(1) | $ | $ | $ |
(1) | As of December 31, 2018, there were |
(2) |
March 31, 2019 | |||||||||||||||
Debt Service Coverage Ratio | |||||||||||||||
≥ 1.2X | 1.0X to <1.2X | < 1.0X | Total | ||||||||||||
(in thousands) | |||||||||||||||
Loan-to-Value Ratio: | |||||||||||||||
0%-59.99% | $ | $ | $ | $ | |||||||||||
60%-69.99% | |||||||||||||||
70%-79.99% | |||||||||||||||
80% or greater | |||||||||||||||
Total commercial mortgage and agricultural property loans | $ | $ | $ | $ |
December 31, 2018 | |||||||||||||||
Debt Service Coverage Ratio | |||||||||||||||
≥ 1.2X | 1.0X to <1.2X | < 1.0X | Total | ||||||||||||
(in thousands) | |||||||||||||||
Loan-to-Value Ratio: | |||||||||||||||
0%-59.99% | $ | $ | $ | $ | |||||||||||
60%-69.99% | |||||||||||||||
70%-79.99% | |||||||||||||||
80% or greater | |||||||||||||||
Total commercial mortgage and agricultural property loans | $ | $ | $ | $ |
March 31, 2019 | |||||||||||||||||||||||
Current | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due(1) | Total Loans | Non-Accrual Status(2) | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Commercial mortgage loans | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Agricultural property loans | |||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
(1) | As of March 31, 2019, there were |
(2) | For additional information regarding the Company's policies for accruing interest on loans, see Note 2 to the Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018. |
December 31, 2018 | |||||||||||||||||||||||
Current | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due(1) | Total Loans | Non-Accrual Status(2) | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Commercial mortgage loans | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Agricultural property loans | |||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
(1) | As of December 31, 2018, there were |
(2) |
March 31, 2019 | December 31, 2018 | ||||||
(in thousands) | |||||||
LPs/LLCs: | |||||||
Equity method: | |||||||
Private equity | $ | $ | |||||
Hedge funds | |||||||
Real estate-related | |||||||
Subtotal equity method | |||||||
Fair value: | |||||||
Private equity | |||||||
Hedge funds | |||||||
Real estate-related | |||||||
Subtotal fair value | |||||||
Total LPs/LLCs | |||||||
Derivative instruments | |||||||
Total other invested assets | $ | $ |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
(in thousands) | ||||||||
Fixed maturities, available-for-sale | $ | $ | ||||||
Fixed maturities, trading | ||||||||
Equity securities, at fair value | ||||||||
Commercial mortgage and other loans | ||||||||
Policy loans | ||||||||
Short-term investments and cash equivalents | ||||||||
Other invested assets | ||||||||
Gross investment income | ||||||||
Less: investment expenses | ( | ) | ( | ) | ||||
Net investment income | $ | $ |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
(in thousands) | ||||||||
Fixed maturities(1) | $ | ( | ) | $ | ( | ) | ||
Commercial mortgage and other loans | ( | ) | ( | ) | ||||
LPs/LLCs | ||||||||
Derivatives | ( | ) | ||||||
Short-term investments and cash equivalents | ( | ) | ||||||
Realized investment gains (losses), net | $ | ( | ) | $ |
(1) |
March 31, 2019 | December 31, 2018 | ||||||
(in thousands) | |||||||
Fixed maturity securities, available-for-sale — with OTTI | $ | $ | ( | ) | |||
Fixed maturity securities, available-for-sale — all other | ( | ) | ( | ) | |||
Derivatives designated as cash flow hedges(1) | ( | ) | ( | ) | |||
Affiliated notes | |||||||
Other investments | |||||||
Net unrealized gains (losses) on investments | $ | ( | ) | $ | ( | ) |
(1) |
March 31, 2019 | December 31, 2018 | ||||||||||||||||||||||
Remaining Contractual Maturities of the Agreements | Remaining Contractual Maturities of the Agreements | ||||||||||||||||||||||
Overnight & Continuous | Up to 30 Days | Total | Overnight & Continuous | Up to 30 Days | Total | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Foreign government bonds | $ | $ | $ | $ | $ | $ | |||||||||||||||||
U.S. public corporate securities | |||||||||||||||||||||||
Total cash collateral for loaned securities(1) | $ | $ | $ | $ | $ | $ |
(1) |
• | Interest rate contracts: futures, swaps, forwards, options, swaptions, caps and floors |
March 31, 2019 | December 31, 2018 | |||||||||||||||||||||||
Primary Underlying Risk/Instrument Type | Gross Fair Value | Gross Fair Value | ||||||||||||||||||||||
Notional | Assets | Liabilities | Notional | Assets | Liabilities | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Derivatives Designated as Hedge Accounting Instruments: | ||||||||||||||||||||||||
Currency/Interest Rate | ||||||||||||||||||||||||
Foreign Currency Swaps | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | ||||||||||||||
Total Derivatives Designated as Hedge Accounting Instruments | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | ||||||||||||||
Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||||||||||||||||||||||
Interest Rate | ||||||||||||||||||||||||
Interest Rate Futures | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | ||||||||||||||
Interest Rate Swaps | ( | ) | ( | ) | ||||||||||||||||||||
Interest Rate Options | ( | ) | ( | ) | ||||||||||||||||||||
Interest Rate Forwards | ( | ) | ||||||||||||||||||||||
Foreign Currency | ||||||||||||||||||||||||
Foreign Currency Forwards | ( | ) | ( | ) | ||||||||||||||||||||
Currency/Interest Rate | ||||||||||||||||||||||||
Foreign Currency Swaps | ( | ) | ( | ) | ||||||||||||||||||||
Credit | ||||||||||||||||||||||||
Credit Default Swaps | ( | ) | ||||||||||||||||||||||
Equity | ||||||||||||||||||||||||
Equity Futures | ( | ) | ( | ) | ||||||||||||||||||||
Total Return Swaps | ( | ) | ( | ) | ||||||||||||||||||||
Equity Options | ( | ) | ( | ) | ||||||||||||||||||||
Total Derivatives Not Qualifying as Hedge Accounting Instruments | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | ||||||||||||||
Total Derivatives(1)(2) | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) |
(1) | Excludes embedded derivatives and associated reinsurance recoverables which contain multiple underlying risks. |
(2) |
March 31, 2019 | |||||||||||||||||||
Gross Amounts of Recognized Financial Instruments | Gross Amounts Offset in the Statements of Financial Position | Net Amounts Presented in the Statements of Financial Position | Financial Instruments/ Collateral(1) | Net Amount | |||||||||||||||
(in thousands) | |||||||||||||||||||
Offsetting of Financial Assets: | |||||||||||||||||||
Derivatives(1) | $ | $ | ( | ) | $ | $ | $ | ||||||||||||
Securities purchased under agreements to resell | ( | ) | |||||||||||||||||
Total Assets | $ | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||
Offsetting of Financial Liabilities: | |||||||||||||||||||
Derivatives(1) | $ | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||
Securities sold under agreements to repurchase | |||||||||||||||||||
Total Liabilities | $ | $ | ( | ) | $ | $ | ( | ) | $ |
December 31, 2018 | |||||||||||||||||||
Gross Amounts of Recognized Financial Instruments | Gross Amounts Offset in the Statements of Financial Position | Net Amounts Presented in the Statements of Financial Position | Financial Instruments/ Collateral(1) | Net Amount | |||||||||||||||
(in thousands) | |||||||||||||||||||
Offsetting of Financial Assets: | |||||||||||||||||||
Derivatives(1) | $ | $ | ( | ) | $ | $ | $ | ||||||||||||
Securities purchased under agreements to resell | ( | ) | |||||||||||||||||
Total Assets | $ | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||
Offsetting of Financial Liabilities: | |||||||||||||||||||
Derivatives(1) | $ | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||
Securities sold under agreements to repurchase | |||||||||||||||||||
Total Liabilities | $ | $ | ( | ) | $ | $ | ( | ) | $ |
(1) |
Three Months Ended March 31, 2019 | |||||||||||||||
Realized Investment Gains (Losses) | Net Investment Income | Other Income | AOCI(1) | ||||||||||||
(in thousands) | |||||||||||||||
Derivatives Designated as Hedge Accounting Instruments: | |||||||||||||||
Cash flow hedges | |||||||||||||||
Currency/Interest Rate | $ | ( | ) | $ | $ | ( | ) | $ | |||||||
Total cash flow hedges | ( | ) | ( | ) | |||||||||||
Derivatives Not Qualifying as Hedge Accounting Instruments: | |||||||||||||||
Interest Rate | |||||||||||||||
Currency | ( | ) | |||||||||||||
Currency/Interest Rate | |||||||||||||||
Credit | ( | ) | |||||||||||||
Equity | ( | ) | |||||||||||||
Embedded Derivatives | ( | ) | |||||||||||||
Total Derivatives Not Qualifying as Hedge Accounting Instruments: | ( | ) | |||||||||||||
Total | $ | ( | ) | $ | $ | ( | ) | $ |
Three Months Ended March 31, 2018(2) | |||||||||||||||
Realized Investment Gains (Losses) | Net Investment Income | Other Income | AOCI(1) | ||||||||||||
(in thousands) | |||||||||||||||
Derivatives Designated as Hedge Accounting Instruments: | |||||||||||||||
Cash flow hedges | |||||||||||||||
Currency/Interest Rate | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | |||||
Total cash flow hedges | ( | ) | ( | ) | ( | ) | |||||||||
Derivatives Not Qualifying as Hedge Accounting Instruments: | |||||||||||||||
Interest Rate | ( | ) | |||||||||||||
Currency | ( | ) | |||||||||||||
Currency/Interest Rate | ( | ) | ( | ) | |||||||||||
Equity | |||||||||||||||
Embedded Derivatives | |||||||||||||||
Total Derivatives Not Qualifying as Hedge Accounting Instruments: | ( | ) | |||||||||||||
Total | $ | $ | $ | ( | ) | $ | ( | ) |
(1) | Net change in AOCI. |
(2) |
(in thousands) | |||
Balance, December 31, 2018 | $ | ( | ) |
Cumulative-effect adjustment from the adoption of ASU 2017-12(1) | |||
Amount recorded in AOCI | |||
Currency/Interest Rate | |||
Total amount recorded in AOCI | |||
Amount reclassified from AOCI to income | |||
Currency/Interest Rate | ( | ) | |
Total amount reclassified from AOCI to income | ( | ) | |
Balance, March 31, 2019 | $ | ( | ) |
As of March 31, 2019 | |||||||||||||||||||
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 | $ | |||||||||||||
Obligations of U.S. states and their political subdivisions | 0 | ||||||||||||||||||
Foreign government bonds | 0 | ||||||||||||||||||
U.S. corporate public securities | 0 | ||||||||||||||||||
U.S. corporate private securities | 0 | ||||||||||||||||||
Foreign corporate public securities | 0 | ||||||||||||||||||
Foreign corporate private securities | 0 | ||||||||||||||||||
Asset-backed securities(2) | 0 | ||||||||||||||||||
Commercial mortgage-backed securities | 0 | ||||||||||||||||||
Residential mortgage-backed securities | 0 | ||||||||||||||||||
Subtotal | 0 | ||||||||||||||||||
Fixed maturities, trading | 0 | ||||||||||||||||||
Equity securities | 0 | ||||||||||||||||||
Short-term investments | 0 | ||||||||||||||||||
Cash equivalents | 0 | ||||||||||||||||||
Other invested assets(3) | ( | ) | |||||||||||||||||
Reinsurance recoverables | 0 | ||||||||||||||||||
Receivables from parent and affiliates | 0 | ||||||||||||||||||
Subtotal excluding separate account assets | ( | ) | |||||||||||||||||
Separate account assets(4) | 0 | ||||||||||||||||||
Total assets | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Future policy benefits(5) | $ | $ | $ | $ | 0 | $ | |||||||||||||
Policyholders' account balances | 0 | ||||||||||||||||||
Payables to parent and affiliates | ( | ) | |||||||||||||||||
Other liabilities | ( | ) | |||||||||||||||||
Total liabilities | $ | $ | $ | $ | ( | ) | $ |
As of December 31, 2018 | |||||||||||||||||||
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 | $ | |||||||||||||
Obligations of U.S. states and their political subdivisions | 0 | ||||||||||||||||||
Foreign government bonds | 0 | ||||||||||||||||||
U.S. corporate public securities | 0 | ||||||||||||||||||
U.S. corporate private securities | 0 | ||||||||||||||||||
Foreign corporate public securities | 0 | ||||||||||||||||||
Foreign corporate private securities | 0 | ||||||||||||||||||
Asset-backed securities(2) | 0 | ||||||||||||||||||
Commercial mortgage-backed securities | 0 | ||||||||||||||||||
Residential mortgage-backed securities | 0 | ||||||||||||||||||
Subtotal | 0 | ||||||||||||||||||
Fixed maturities, trading | 0 | ||||||||||||||||||
Equity securities | 0 | ||||||||||||||||||
Short-term investments | 0 | ||||||||||||||||||
Cash equivalents | 0 | ||||||||||||||||||
Other invested assets(3) | ( | ) | |||||||||||||||||
Reinsurance recoverables | 0 | ||||||||||||||||||
Receivables from parent and affiliates | 0 | ||||||||||||||||||
Subtotal excluding separate account assets | ( | ) | |||||||||||||||||
Separate account assets(4) | 0 | ||||||||||||||||||
Total assets | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Future policy benefits(5) | $ | $ | $ | $ | 0 | $ | |||||||||||||
Policyholders' account balances | 0 | ||||||||||||||||||
Payables to parent and affiliates | ( | ) | |||||||||||||||||
Other liabilities | ( | ) | |||||||||||||||||
Total liabilities | $ | $ | $ | $ | ( | ) | $ |
(1) | “Netting” amounts represent cash collateral of $ |
(2) | Includes credit tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types. |
(3) | Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value ("NAV") per share (or its equivalent) as a practical expedient. As of March 31, 2019 and December 31, 2018, the fair values of such investments were $ |
(4) | 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 Unaudited Interim Statements of Financial Position. |
(5) | As of March 31, 2019, the net embedded derivative liability position of $ |
As of March 31, 2019 | |||||||||||||||
Fair Value | Valuation Techniques | Unobservable Inputs | Minimum | Maximum | Weighted Average | Impact of Increase in Input on Fair Value(1) | |||||||||
(in thousands) | |||||||||||||||
Assets: | |||||||||||||||
Corporate securities(2) | $ | Discounted cash flow | Discount rate | % | % | % | Decrease | ||||||||
Market Comparables(3) | EBITDA multiples(8) | Increase | |||||||||||||
Liquidation value | Liquidation value | % | % | % | Increase | ||||||||||
Reinsurance recoverables | $ | Fair values are determined using the same unobservable inputs as future policy benefits. | |||||||||||||
Liabilities: | |||||||||||||||
Future policy benefits(4) | $ | Discounted cash flow | Lapse rate(5) | % | % | Decrease | |||||||||
Spread over LIBOR(6) | % | % | Decrease | ||||||||||||
Utilization rate(7) | % | % | Increase | ||||||||||||
Withdrawal rate | See table footnote (8) below. | ||||||||||||||
Mortality rate(9) | % | % | Decrease | ||||||||||||
Equity volatility curve | % | % | Increase |
As of December 31, 2018 | |||||||||||||||
Fair Value | Valuation Techniques | Unobservable Inputs | Minimum | Maximum | Weighted Average | Impact of Increase in Input on Fair Value(1) | |||||||||
(in thousands) | |||||||||||||||
Assets: | |||||||||||||||
Corporate securities(2) | $ | Discounted cash flow | Discount rate | % | % | % | Decrease | ||||||||
Market Comparables(3) | EBITDA multiples(8) | X | X | X | Increase | ||||||||||
Liquidation | Liquidation value | % | % | % | Increase | ||||||||||
Reinsurance recoverables | $ | Fair values are determined using the same unobservable inputs as future policy benefits. | |||||||||||||
Liabilities: | |||||||||||||||
Future policy benefits(4) | $ | Discounted cash flow | Lapse rate(5) | % | % | Decrease | |||||||||
Spread over LIBOR(6) | % | % | Decrease | ||||||||||||
Utilization rate(7) | % | % | Increase | ||||||||||||
Withdrawal rate | See table footnote (8) below. | ||||||||||||||
Mortality rate(9) | % | % | Decrease | ||||||||||||
Equity volatility curve | % | % | 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) | Includes assets classified as fixed maturities, available-for-sale. |
(3) | Represents multiples of earnings before interest, taxes, depreciation and amortization ("EBITDA"), and are amounts used when the Company has determined that market participants would use such multiples when valuing the investments. |
(4) | Future policy benefits primarily represent general account liabilities for the living benefit features 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. |
(5) | 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. |
(6) | The spread over the London Inter-Bank Offered Rate ("LIBOR") swap curve represents the premium added to the proxy for the risk-free rate (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. |
(7) | 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. |
(8) | 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 March 31, 2019 and December 31, 2018, the minimum withdrawal rate assumption is |
(9) | Range reflects the mortality rate for the vast majority of business with living benefits, with policyholders ranging from |
Three Months Ended March 31, 2019 | |||||||||||||||||||||||||||||||||
Fair Value, beginning of period | Total realized and unrealized gains (losses)(1) | Purchases | Sales | Issuances | Settlements | Other(2) | Transfers into Level 3 | Transfers out of Level 3 | Fair Value, end of period | Unrealized gains (losses) for assets still held(3) | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Fixed maturities, available-for-sale: | |||||||||||||||||||||||||||||||||
U.S. Government | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||
Corporate Securities(4) | ( | ) | ( | ) | |||||||||||||||||||||||||||||
Structured Securities(5) | ( | ) | ( | ) | |||||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||
Equity securities | ( | ) | |||||||||||||||||||||||||||||||
Other invested assets | |||||||||||||||||||||||||||||||||
Short-term investments | |||||||||||||||||||||||||||||||||
Reinsurance recoverables | |||||||||||||||||||||||||||||||||
Receivables from parent and affiliates | |||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||
Future policy benefits | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Policyholders' account balances | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) |
Three Months Ended March 31, 2019 | |||||||||||||||||||
Total realized and unrealized gains (losses) | Unrealized gains (losses) for assets still held(3) | ||||||||||||||||||
Realized investment gains (losses), net(1) | Asset administration fees and other income | Included in other comprehensive income (losses) | Net investment income | Realized investment gains (losses), net | Asset administration fees and other income | ||||||||||||||
(in thousands) | |||||||||||||||||||
Fixed maturities, available-for-sale | $ | ( | ) | $ | $ | $ | $ | ( | ) | $ | |||||||||
Other assets: | |||||||||||||||||||
Equity securities | |||||||||||||||||||
Other invested assets | |||||||||||||||||||
Short-term investments | |||||||||||||||||||
Reinsurance recoverables | |||||||||||||||||||
Receivables from parent and affiliates | |||||||||||||||||||
Liabilities: | |||||||||||||||||||
Future policy benefits | ( | ) | ( | ) | |||||||||||||||
Policyholders' account balances | ( | ) | ( | ) |
Three Months Ended March 31, 2018(6) | |||||||||||||||||||||||||||||||||
Fair Value, beginning of period | Total realized and unrealized gains (losses)(1) | Purchases | Sales | Issuances | Settlements | Other (2) | Transfers into Level 3 | Transfers out of Level 3 | Fair Value, end of period | Unrealized gains (losses) for assets still held(3) | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Fixed maturities, available-for-sale: | |||||||||||||||||||||||||||||||||
U.S. Government | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||
Corporate Securities(4) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||
Structured Securities(5) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||||||
Other invested assets | ( | ) | |||||||||||||||||||||||||||||||
Short-term investments | ( | ) | ( | ) | |||||||||||||||||||||||||||||
Reinsurance recoverables | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||
Receivables from parent and affiliates | ( | ) | |||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||
Future policy benefits | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||
Policyholders' account balances | |||||||||||||||||||||||||||||||||
Reinsurance payable | ( | ) | ( | ) | ( | ) |
Three Months Ended March 31, 2018(6) | |||||||||||||||||||
Total realized and unrealized gains (losses) | Unrealized gains (losses) for assets still held(3) | ||||||||||||||||||
Realized investment gains (losses), net(1) | Asset administration fees and other income | Included in other comprehensive income (losses) | Net investment income | Realized investment gains (losses), net | Asset administration fees and other income | ||||||||||||||
(in thousands) | |||||||||||||||||||
Fixed maturities, available-for-sale | $ | ( | ) | $ | $ | $ | $ | ( | ) | $ | |||||||||
Other assets: | |||||||||||||||||||
Equity securities | |||||||||||||||||||
Other invested assets | |||||||||||||||||||
Short-term investments | ( | ) | |||||||||||||||||
Reinsurance recoverables | ( | ) | ( | ) | |||||||||||||||
Receivables from parent and affiliates | ( | ) | |||||||||||||||||
Liabilities: | |||||||||||||||||||
Future policy benefits | |||||||||||||||||||
Policyholders' account balances | |||||||||||||||||||
Reinsurance payable | ( | ) |
(1) | 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. |
(2) | Other, primarily represents reclassifications of certain assets and liabilities between reporting categories. |
(3) | 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. |
(4) | Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. |
(5) | Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities. |
(6) | Prior period amounts have been updated to conform to current period presentation. |
March 31, 2019 | |||||||||||||||||||
Fair Value | Carrying Amount(1) | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Total | |||||||||||||||
(in thousands) | |||||||||||||||||||
Assets: | |||||||||||||||||||
Commercial mortgage and other loans | $ | $ | $ | $ | $ | ||||||||||||||
Policy loans | |||||||||||||||||||
Short-term investments | |||||||||||||||||||
Cash and cash equivalents | |||||||||||||||||||
Accrued investment income | |||||||||||||||||||
Reinsurance recoverables | |||||||||||||||||||
Receivables from parent and affiliates | |||||||||||||||||||
Other assets | |||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | ||||||||||||||
Liabilities: | |||||||||||||||||||
Policyholders’ account balances - investment contracts | $ | $ | $ | $ | $ | ||||||||||||||
Cash collateral for loaned securities | |||||||||||||||||||
Short-term debt | |||||||||||||||||||
Long-term debt | |||||||||||||||||||
Reinsurance payables | |||||||||||||||||||
Payables to parent and affiliates | |||||||||||||||||||
Other liabilities | |||||||||||||||||||
Separate account liabilities - investment contracts | |||||||||||||||||||
Total liabilities | $ | $ | $ | $ | $ |
December 31, 2018 | |||||||||||||||||||
Fair Value | Carrying Amount(1) | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Total | |||||||||||||||
(in thousands) | |||||||||||||||||||
Assets: | |||||||||||||||||||
Commercial mortgage and other loans | $ | $ | $ | $ | $ | ||||||||||||||
Policy loans | |||||||||||||||||||
Short-term investments | |||||||||||||||||||
Cash and cash equivalents | |||||||||||||||||||
Accrued investment income | |||||||||||||||||||
Reinsurance recoverables | |||||||||||||||||||
Receivables from parent and affiliates | |||||||||||||||||||
Other assets | |||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | ||||||||||||||
Liabilities: | |||||||||||||||||||
Policyholders’ account balances - investment contracts | $ | $ | $ | $ | $ | ||||||||||||||
Cash collateral for loaned securities | |||||||||||||||||||
Short-term debt | |||||||||||||||||||
Long-term debt | |||||||||||||||||||
Reinsurance payables | |||||||||||||||||||
Payables to parent and affiliates | |||||||||||||||||||
Other liabilities | |||||||||||||||||||
Separate account liabilities - investment contracts | |||||||||||||||||||
Total liabilities | $ | $ | $ | $ | $ |
(1) |
March 31, 2019 | December 31, 2018 | ||||||
(in thousands) | |||||||
Reinsurance recoverables(1) | $ | $ | |||||
Deferred policy acquisition costs | |||||||
Deferred sales inducements | |||||||
Value of business acquired | ( | ) | ( | ) | |||
Other assets | |||||||
Policyholders’ account balances | |||||||
Future policy benefits | |||||||
Reinsurance payables(2) | |||||||
Other liabilities |
(1) | "Reinsurance recoverables" includes $ |
(2) | "Reinsurance payables" includes $ |
March 31, 2019 | December 31, 2018 | ||||||
(in thousands) | |||||||
Prudential Insurance | $ | $ | |||||
Pruco Life | |||||||
Unaffiliated | |||||||
Total reinsurance recoverables | $ | $ |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Premiums: | |||||||
Direct | $ | $ | |||||
Assumed | |||||||
Ceded | ( | ) | |||||
Net premiums | |||||||
Policy charges and fee income: | |||||||
Direct | |||||||
Assumed | |||||||
Ceded(1) | ( | ) | ( | ) | |||
Net policy charges and fee income | |||||||
Asset administration fees and other income: | |||||||
Direct | |||||||
Assumed | |||||||
Ceded | ( | ) | ( | ) | |||
Net asset administration fees and other income | |||||||
Realized investment gains (losses), net: | |||||||
Direct | ( | ) | ( | ) | |||
Assumed | ( | ) | |||||
Ceded | ( | ) | |||||
Realized investment gains (losses), net | ( | ) | |||||
Policyholders' benefits (including change in reserves): | |||||||
Direct | |||||||
Assumed | |||||||
Ceded(2) | ( | ) | ( | ) | |||
Net policyholders' benefits (including change in reserves) | |||||||
Interest credited to policyholders’ account balances: | |||||||
Direct | |||||||
Assumed | |||||||
Ceded | ( | ) | ( | ) | |||
Net interest credited to policyholders’ account balances | |||||||
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization |
(1) | "Policy charges and fee income ceded" includes $ |
(2) |
Accumulated Other Comprehensive Income (Loss) | |||||||||||
Foreign Currency Translation Adjustment | Net Unrealized Investment Gains (Losses)(1) | Total Accumulated Other Comprehensive Income (Loss) | |||||||||
(in thousands) | |||||||||||
Balance, December 31, 2018 | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||
Change in OCI before reclassifications | |||||||||||
Amounts reclassified from AOCI | |||||||||||
Income tax benefit (expense) | ( | ) | ( | ) | ( | ) | |||||
Balance, March 31, 2019 | $ | ( | ) | $ | ( | ) | $ | ( | ) |
Accumulated Other Comprehensive Income (Loss) | |||||||||||
Foreign Currency Translation Adjustment | Net Unrealized Investment Gains (Losses)(1) | Total Accumulated Other Comprehensive Income (Loss) | |||||||||
(in thousands) | |||||||||||
Balance, December 31, 2017 | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||
Change in OCI before reclassifications | ( | ) | ( | ) | ( | ) | |||||
Amounts reclassified from AOCI | |||||||||||
Income tax benefit (expense) | |||||||||||
Cumulative effect of adoption of ASU 2016-01 | ( | ) | ( | ) | |||||||
Cumulative effect of adoption of ASU 2018-02 | ( | ) | ( | ) | ( | ) | |||||
Balance, March 31, 2018 | $ | ( | ) | $ | ( | ) | $ | ( | ) |
(1) |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Amounts reclassified from AOCI(1)(2): | |||||||
Net unrealized investment gains (losses): | |||||||
Cash flow hedges—Currency/ Interest rate(3) | $ | ( | ) | $ | ( | ) | |
Net unrealized investment gains (losses) on available-for-sale securities | ( | ) | ( | ) | |||
Total net unrealized investment gains (losses)(4) | ( | ) | ( | ) | |||
Total reclassifications for the period | $ | ( | ) | $ | ( | ) |
(1) | All amounts are shown before tax. |
(2) | Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI. |
(3) | See Note 4 for additional information on cash flow hedges. |
(4) | See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition and other costs and future policy benefits and other liabilities. |
Net Unrealized Gains (Losses) on Investments | Deferred Policy Acquisition Costs and Other Costs(2) | Future Policy Benefits and Other Liabilities(3) | Deferred Income Tax (Liability) Benefit | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |||||||||||||||
(in thousands) | |||||||||||||||||||
Balance, December 31, 2018 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | ||||||
Net investment gains (losses) on investments arising during the period | ( | ) | |||||||||||||||||
Reclassification adjustment for (gains) losses included in net income | ( | ) | ( | ) | |||||||||||||||
Reclassification adjustment for OTTI (gains) losses excluded from net income(1) | ( | ) | ( | ) | |||||||||||||||
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | ( | ) | |||||||||||||||||
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities | ( | ) | |||||||||||||||||
Balance, March 31, 2019 | $ | $ | ( | ) | $ | $ | ( | ) | $ |
(1) | Represents "transfers in" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. |
(2) | "Other costs" primarily includes reinsurance recoverables, DSI and value of business acquired ("VOBA"). |
(3) | "Other liabilities" primarily includes reinsurance payables and deferred reinsurance gains. |
Net Unrealized Gains (Losses) on Investments(1) | Deferred Policy Acquisition Costs and Other Costs(3) | Future Policy Benefits and Other Liabilities(4) | Deferred Income Tax (Liability) Benefit | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |||||||||||||||
(in thousands) | |||||||||||||||||||
Balance, December 31, 2018 | $ | ( | ) | $ | $ | $ | $ | ( | ) | ||||||||||
Net investment gains (losses) on investments arising during the period | ( | ) | |||||||||||||||||
Reclassification adjustment for (gains) losses included in net income | ( | ) | |||||||||||||||||
Reclassification adjustment for OTTI (gains) losses excluded from net income(2) | ( | ) | |||||||||||||||||
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | ( | ) | ( | ) | |||||||||||||||
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities | ( | ) | ( | ) | |||||||||||||||
Balance, March 31, 2019 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) |
(1) | Includes cash flow hedges. See Note 4 for information on cash flow hedges. |
(2) | Represents "transfers out" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. |
(3) | "Other costs" primarily includes reinsurance recoverables, DSI and VOBA. |
(4) |
Maturity Dates | Interest Rates | March 31, 2019 | December 31, 2018 | |||||||||||||
(in thousands) | ||||||||||||||||
U.S. dollar floating rate notes | 2028 | - | % | $ | $ | |||||||||||
U.S. dollar fixed rate notes | 2027 | - | % | |||||||||||||
Total notes receivable - affiliated(1) | $ | $ |
(1) |
Affiliate | Date | Transaction | Security Type | Fair Value | Book Value | APIC, Net of Tax Increase/(Decrease) | Realized Investment Gain (Loss) | |||||||||||||||
(in thousands) | ||||||||||||||||||||||
Prudential Insurance | February 2018 | Purchase | Fixed Maturities | $ | $ | $ | $ | |||||||||||||||
Pruco Life Insurance Company of Arizona | April 2018 | Sale | Fixed Maturities | $ | $ | $ | $ | ( | ) | |||||||||||||
Prudential Insurance | April 2018 | Sale | Fixed Maturities | $ | $ | $ | $ | |||||||||||||||
Prudential Insurance | May 2018 | Sale | Fixed Maturity & Commercial Mortgages | $ | $ | $ | $ | |||||||||||||||
Passaic Fund LLC | June 2018 | Transfer Out | Other Invested Assets - Privates | $ | $ | $ | $ | |||||||||||||||
Prudential Insurance | July 2018 | Sale | Fixed Maturities | $ | $ | $ | $ | |||||||||||||||
Prudential Insurance | August 2018 | Sale | Commercial Mortgages | $ | $ | $ | $ | |||||||||||||||
Prudential Insurance | December 2018 | Purchase | Fixed Maturities | $ | $ | $ | $ | ( | ) | |||||||||||||
Prudential Agricultural Investors LP | December 2018 | Transfer Out | Other Invested Assets - Privates | $ | $ | $ | $ | |||||||||||||||
Prudential Insurance | January 2019 | Sale | Fixed Maturities | $ | $ | $ | $ | ( | ) | |||||||||||||
Prudential Insurance | February 2019 | Sale | Commercial Mortgages | $ | $ | $ | $ | ( | ) | |||||||||||||
Prudential Insurance | March 2019 | Purchase | Fixed Maturities | $ | $ | $ | $ |
Affiliate | Date Issued | Amount of Notes - March 31, 2019 | Amount of Notes - December 31, 2018 | Interest Rate | Date of Maturity | ||||||||||||||
(in thousands) | |||||||||||||||||||
Prudential Insurance | 4/20/2016 | $ | $ | % | 6/20/2019 | ||||||||||||||
Prudential Insurance | 4/20/2016 | % | 6/20/2019 | ||||||||||||||||
Prudential Insurance | 4/20/2016 | % | 12/6/2020 | ||||||||||||||||
Prudential Insurance | 4/20/2016 | % | 12/15/2020 | ||||||||||||||||
Prudential Insurance | 4/20/2016 | % | 12/15/2020 | ||||||||||||||||
Prudential Insurance | 4/20/2016 | % | 6/20/2021 | ||||||||||||||||
Prudential Insurance | 4/20/2016 | % | 12/15/2023 | ||||||||||||||||
Prudential Insurance | 4/20/2016 | % | 12/15/2023 | ||||||||||||||||
Prudential Insurance | 4/20/2016 | % | 6/20/2024 | ||||||||||||||||
Prudential Insurance | 4/20/2016 | % | 6/20/2024 | ||||||||||||||||
Prudential Insurance | 4/20/2016 | % | 6/20/2024 | ||||||||||||||||
Prudential Insurance | 6/28/2016 | % | 6/28/2019 | ||||||||||||||||
Prudential Insurance | 6/28/2016 | % | 6/28/2019 | ||||||||||||||||
Prudential Insurance | 6/28/2016 | % | 6/28/2019 | ||||||||||||||||
Prudential Insurance | 6/28/2016 | % | 6/28/2021 | ||||||||||||||||
Prudential Insurance | 6/28/2016 | % | 6/28/2026 | ||||||||||||||||
Prudential Insurance | 6/28/2016 | % | 6/28/2026 | ||||||||||||||||
Prudential Insurance | 6/28/2016 | % | 6/28/2026 | ||||||||||||||||
Prudential Retirement Insurance & Annuity Company | 6/28/2016 | % | 6/28/2023 | ||||||||||||||||
Total Loans Payable to Affiliates | $ | $ |
• | DAC, DSI and VOBA; |
• | Policyholder liabilities; |
• | Valuation of investments, including derivatives, and the recognition of other-than-temporary impairments ("OTTI"); |
• | Reinsurance recoverables; |
• | Taxes on income; and |
• | Reserves for contingencies, including reserves for losses in connection with unresolved legal matters. |
• | Separate account assets increased $1.9 billion primarily driven by favorable market performance, partially offset by net outflows and policy charges; |
• | Total investments and cash and cash equivalents decreased $0.1 billion primarily driven by settlement timing of investment payable on open trades, a return of capital and debt repayment partially offset by an increase in cash flows from insurance operations and unrealized gains on investments due to a decrease in rates. |
• | Separate account liabilities increased $1.9 billion, corresponding to the increase in separate account assets described above; |
• | Future policy benefits increased $1.0 billion primarily driven by non-performance risk ("NPR") spread tightening and declining rates, partially offset by favorable equity markets; |
• | Payables to parent and affiliates increased $0.2 billion primarily driven by an increase in derivatives payable; and |
• | Policyholders' account balances increased $0.1 billion primarily driven by fixed indexed annuity sales. |
• | Other liabilities decreased $0.4 billion primarily driven by a decrease in investment payable on open trades as a result of settlement timing; and |
• | Long-term debt decreased $0.1 billion as a result of debt repayment. |
Three Months Ended | |||||||
March 31, 2019 | March 31, 2018 | ||||||
(in millions)(1) | |||||||
Excluding impact of assumption updates and other refinements: | |||||||
Net hedging impact(2) | $ | (83 | ) | $ | (120 | ) | |
Change in portions of U.S. GAAP liability, before NPR(3) | 306 | 328 | |||||
Change in the NPR adjustment | (963 | ) | 165 | ||||
Net impact from changes in the U.S. GAAP embedded derivative and hedge positions | (740 | ) | 373 | ||||
Related benefit (charge) to amortization of DAC and other costs | 151 | (99 | ) | ||||
Net impact of assumption updates and other refinements | 0 | 0 | |||||
Net impact from changes in the U.S. GAAP embedded derivative and hedge positions, after the impact of NPR, DAC and other costs. | $ | (589 | ) | $ | 274 |
(1) | Positive amount represents income; negative amount represents a loss. |
(2) | Net hedging impact represents the difference between the change in fair value of the risk we seek to hedge using derivatives and the change in fair value of the derivatives utilized with respect to that risk. |
(3) | Represents risk margins and valuation methodology differences between the economic liability managed by the Asset Liability Management ("ALM") Strategy and the U.S. GAAP liability, as well as the portion of the economic liability managed with fixed income instruments. |
As of March 31, 2019 | As of December 31, 2018 | ||||||
(in millions) | (in millions) | ||||||
U.S. GAAP liability (including non-performance risk) | $ | 9,317 | $ | 8,332 | |||
Non-performance risk adjustment | 3,290 | 4,275 | |||||
Subtotal | 12,607 | 12,608 | |||||
Adjustments including risk margins and valuation methodology differences | (3,602 | ) | (3,831 | ) | |||
Economic liability managed by ALM strategy | $ | 9,005 | $ | 8,777 |
EXHIBIT INDEX |
101.INS - XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
101.SCH - XBRL Taxonomy Extension Schema Document. |
101.CAL - XBRL Taxonomy Extension Calculation Linkbase Document |
101.LAB - XBRL Taxonomy Extension Label Linkbase Document |
101.PRE - XBRL Taxonomy Extension Presentation Linkbase Document |
101.DEF - XBRL Taxonomy Extension Definition Linkbase Document |
PRUDENTIAL ANNUITIES LIFE ASSURANCE CORPORATION | ||
By: | /s/ John Chieffo | |
Name | John Chieffo | |
Executive Vice President and Chief Financial Officer | ||
(Authorized Signatory and Principal Financial Officer) |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiary, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Kent D. Sluyter | |
Kent D. Sluyter | |
President and Chief Executive Officer |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiary, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ John Chieffo | |
John Chieffo | |
Executive Vice President and Chief Financial Officer |
/s/ Kent D. Sluyter | |
Kent D. Sluyter | |
President and Chief Executive Officer |
/s/ John Chieffo | |
John Chieffo | |
Executive Vice President and Chief Financial Officer |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
May 09, 2019 |
|
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | PRUDENTIAL ANNUITIES LIFE ASSURANCE CORP/CT | |
Entity Central Index Key | 0000881453 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 25,000 |
Unaudited Interim Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Fixed maturities, available for sale, amortized cost | $ 11,736,191 | $ 10,186,465 |
Fixed maturities, trading, amortized cost | 327,977 | 294,549 |
Equity securities, at cost | 23,456 | 18,765 |
Other invested assets, at fair value | $ 8,200 | $ 50,945 |
Common stock, par value (in dollars per share) | $ 100 | $ 100 |
Common stock, shares authorized | 25,000 | 25,000 |
Common stock, shares issued | 25,000 | 25,000 |
Common stock, shares outstanding | 25,000 | 25,000 |
Unaudited Interim Statements of Cash Flows - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ (900,024) | $ 635,679 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Policy charges and fee income | (259) | (677) |
Realized investment (gains) losses, net | 1,342,219 | (558,690) |
Depreciation and amortization | (1,162) | 4,017 |
Interest credited to policyholders’ account balances | 10,427 | 69,570 |
Change in: | ||
Future policy benefits | 235,812 | 261,254 |
Accrued investment income | (5,350) | 19,762 |
Net receivables from/payables to parent and affiliates | 8,156 | 13,302 |
Deferred sales inducements | (327) | (483) |
Deferred policy acquisition costs | (107,724) | 76,645 |
Income taxes | 20,754 | 156,193 |
Reinsurance recoverables, net | 21,307 | 8,358 |
Derivatives, net | (428,685) | (1,218,557) |
Other, net | (4,705) | 20,487 |
Cash flows from (used in) operating activities | 190,439 | (513,140) |
Proceeds from the sale/maturity/prepayment of: | ||
Fixed maturities, available-for-sale | 271,473 | 1,345,164 |
Fixed maturities, trading | 36 | 99,578 |
Equity securities | 802 | 1,271 |
Commercial mortgage and other loans | 105,399 | 11,021 |
Policy loans | 341 | 257 |
Other invested assets | 18,880 | 1,161 |
Short-term investments | 19,885 | 697,805 |
Payments for the purchase/origination of: | ||
Fixed maturities, available for sale | (2,232,403) | (612,334) |
Fixed maturities, trading | (33,423) | 0 |
Equity securities | (5,570) | (1,183) |
Commercial mortgage and other loans | (20,112) | (87,238) |
Policy loans | (76) | (55) |
Other invested assets | (37,103) | (25,150) |
Short-term investments | (105,029) | 0 |
Notes receivable from parent and affiliates, net | 34,008 | 2,842 |
Derivatives, net | (21,069) | (1,085) |
Other, net | (1) | 0 |
Cash flows from (used in) investing activities | (2,003,962) | 1,432,054 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Cash collateral for loaned securities | (384) | (9,743) |
Repayments of debt (maturities longer than 90 days) | (134,000) | 0 |
Drafts outstanding | (3,671) | (6,790) |
Distribution to Parent | (245,000) | (300,000) |
Policyholders' account deposits | 964,888 | 737,762 |
Ceded policyholders' account deposits | (7,215) | (21,526) |
Policyholders' account withdrawals | (884,357) | (693,903) |
Ceded policyholders' account withdrawals | 16,323 | 8,254 |
Cash flows from (used in) financing activities | (293,416) | (285,946) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (2,106,939) | 632,968 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 4,503,534 | 1,639,939 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 2,396,595 | $ 2,272,907 |
Business and Basis of Presentation |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | BUSINESS AND BASIS OF PRESENTATION Prudential Annuities Life Assurance Corporation (the “Company” or “PALAC”), with its principal offices in Shelton, Connecticut, is a wholly-owned subsidiary of Prudential Annuities, Inc. (“PAI”), which in turn is an indirect wholly-owned subsidiary of Prudential Financial, Inc. ("Prudential Financial"), a New Jersey corporation. The Company has developed long-term savings and retirement products, which were distributed through its affiliated broker/dealer company, Prudential Annuities Distributors, Inc. (“PAD”). The Company issued variable and fixed deferred and immediate annuities for individuals and groups in the United States of America and Puerto Rico. In addition, the Company has a relatively small in force block of variable life insurance policies. The Company stopped actively selling annuity products in March 2010. In March 2010, the Company ceased offering its variable annuity products (and where offered, the companion market value adjustment option) to new investors upon the launch of a new product line by each of Pruco Life Insurance Company ("Pruco Life") and its wholly-owned subsidiary Pruco Life Insurance Company of New Jersey ("PLNJ") (which are affiliates of the Company). These initiatives were implemented to create operational and administrative efficiencies by offering a single product line of annuity products from a more limited group of legal entities. During 2012, the Company suspended additional customer deposits for variable annuities with certain living benefit guarantees. However, the Company continues to accept additional customer deposits on certain in force contracts, subject to applicable contract provisions and administrative rules. The Company resumed offering annuity products to new investors (except in New York) when it launched a new fixed index annuity and a new deferred income annuity in 2018. The Company is engaged in a business that is highly competitive because of the large number of stock and mutual life insurance companies and other entities engaged in marketing long-term savings and retirement products, including insurance products, and individual and group annuities. The Company surrendered its New York license effective December 31, 2015, and reinsured the majority of its New York business to an affiliate, The Prudential Insurance Company of America (“Prudential Insurance”). The license surrender relieves the Company of the requirement to hold New York statutory reserves on its business in excess of the statutory reserves required by its domiciliary regulator, the Arizona Department of Insurance. For the small portion of New York business retained by the Company, a custodial account has been established to hold collateral assets in an amount equal to a percentage of the reserves associated with such business, as calculated in accordance with PALAC's New York Regulation 109 Plan approved by the New York Department of Financial Services. Effective April 1, 2016, the Company reinsured the variable annuity base contracts, along with the living benefit guarantees, from Pruco Life, excluding the PLNJ business which was reinsured to Prudential Insurance, in each case under a coinsurance and modified coinsurance agreement. This reinsurance agreement covers new and in force business and excludes business reinsured externally. In addition, the living benefit hedging program related to the living benefit guarantees as well as the product risks for retained and reinsured businesses are being managed within the Company and Prudential Insurance, as applicable. Basis of Presentation The Unaudited Interim Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining deferred policy acquisition costs ("DAC") and related amortization; value of business acquired and its amortization; amortization of deferred sales inducements ("DSI"); valuation of investments including derivatives and the recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal and regulatory matters. Reclassifications |
Significant Accounting Policies and Pronouncements |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies and Pronouncements | SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of Accounting Standards Updates ("ASU") to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASU. ASU listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of the date of this filing. ASU not listed below were assessed and determined to be either not applicable or not material. ASU adopted during the three months ended March 31, 2019.
ASU issued but not yet adopted as of March 31, 2019 — ASU 2018-12 ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, was issued by the FASB on August 15, 2018 and is expected to have a significant impact on the Company’s Financial Statements and Notes to the Financial Statements. The ASU is effective January 1, 2021 (with early adoption permitted), and will impact, at least to some extent, the accounting and disclosure requirements for all long-duration insurance and investment contracts issued by the Company. Outlined below are four key areas of change, although there are other changes not noted below. In addition to the impacts to the balance sheet upon adoption, the Company also expects an impact to how earnings emerge thereafter.
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Investments |
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Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | 3. INVESTMENTS Fixed Maturity Securities The following tables set forth the composition of fixed maturity securities (excluding investments classified as trading), as of the dates indicated:
The following tables set forth the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the dates indicated:
As of March 31, 2019 and December 31, 2018, the gross unrealized losses on fixed maturity securities were composed of $276.8 million and $485.7 million, respectively, related to “1” highest quality or “2” high quality securities based on the National Association of Insurance Commissioners (“NAIC”) or equivalent rating and $7.0 million and $15.9 million, respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. As of March 31, 2019, the $271.5 million of gross unrealized losses of twelve months or more were concentrated in U.S. government bonds and in the Company’s corporate securities within the consumer non-cyclical, utility and finance sectors. As of December 31, 2018, the $432.3 million of gross unrealized losses of twelve months or more were concentrated in U.S. government bonds and in the Company’s corporate securities within the finance, consumer non-cyclical and capital goods sectors. In accordance with its policy described in Note 2 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, the Company concluded that an adjustment to earnings for OTTI for these fixed maturity securities was not warranted at either March 31, 2019 or December 31, 2018. These conclusions were based on a detailed analysis of the underlying credit and cash flows on each security. Gross unrealized losses are primarily attributable to general credit spread widening, increases in interest rates and foreign currency exchange rate movements. As of March 31, 2019, the Company did not intend to sell these securities, and it was not more likely than not that the Company would be required to sell these securities before the anticipated recovery of the remaining amortized cost basis. The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated:
Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Asset-backed, commercial mortgage-backed and residential mortgage-backed securities are shown separately in the table above, as they do not have a single maturity date. The following table sets forth the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on impairments of fixed maturities, for the periods indicated:
The following table sets forth a rollforward of pre-tax amounts remaining in OCI related to fixed maturity securities with credit loss impairments recognized in earnings, for the periods indicated:
Equity Securities The net change in unrealized gains (losses) from equity securities still held at period end, recorded within “Asset administration fees and other income”, was $0.9 million and $0.8 million during the three months ended March 31, 2019 and 2018, respectively. Commercial Mortgage and Other Loans The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated:
As of March 31, 2019, the commercial mortgage and agricultural property loans were secured by properties geographically dispersed throughout the United States (with the largest concentrations in California (27%), Texas (13%) and New York (7%)) and included loans secured by properties in Europe (12%) and Australia (3%). The following table sets forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated:
The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans, as of the dates indicated:
The following tables set forth certain key credit quality indicators for commercial mortgage and agricultural property loans based upon the recorded investment gross of allowance for credit losses, as of the dates indicated:
The following tables set forth an aging of past due commercial mortgage and other loans based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated:
For the three months ended March 31, 2019, there were no commercial mortgage and other loans acquired, other than those through direct origination, and there were $101 million of commercial mortgage and other loans sold. For the three months ended March 31, 2018, there were no commercial mortgage and other loans acquired, other than those through direct origination, and there were no commercial mortgage and other loans sold. Other Invested Assets The following table sets forth the composition of “Other invested assets,” as of the dates indicated:
Net Investment Income The following table sets forth “Net investment income” by investment type, for the periods indicated:
Realized Investment Gains (Losses), Net The following table sets forth “Realized investment gains (losses), net,” by investment type, for the periods indicated:
Net Unrealized Gains (Losses) on Investments within AOCI The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated:
Repurchase Agreements and Securities Lending In the normal course of business, the Company sells securities under agreements to repurchase and enters into securities lending transactions. As of March 31, 2019 and December 31, 2018, the Company had no repurchase agreements. The following table sets forth the composition of “Cash collateral for loaned securities” which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated:
(1) The Company did not have any agreements with remaining contractual maturities of thirty days or greater, as of the dates indicated.
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Derivative Instruments |
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Derivative Instruments | 4. DERIVATIVE INSTRUMENTS Types of Derivative Instruments and Derivative Strategies The Company utilizes various derivative instruments and strategies to manage its risk. Commonly used derivative instruments include but are not necessarily limited to:
•Equity contracts: futures, options and total return swaps •Foreign exchange contracts: futures, options, forwards and swaps •Credit contracts: single and index reference credit default swaps Other types of financial contracts that the Company accounts for as derivatives include: •Embedded derivatives For detailed information on these contracts and the related strategies, see Note 4 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. Primary Risks Managed by Derivatives The table below provides a summary of the gross notional amount and fair value of derivative contracts by the primary underlying risks, excluding embedded derivatives and associated reinsurance recoverables. Many derivative instruments contain multiple underlying risks. The fair value amounts below represent the gross fair value of derivative contracts prior to taking into account the netting effects of master netting agreements, cash collateral and NPR.
The fair value of the embedded derivatives, included in "Future policy benefits", was a net liability of $9,317 million and $8,332 million as of March 31, 2019 and December 31, 2018, respectively. The fair value of the related reinsurance recoverables to Prudential Insurance was a net asset of $250 million and $234 million as of March 31, 2019 and December 31, 2018, respectively, included in "Reinsurance recoverables". See Note 6 for additional information on these reinsurance agreements. The fair value of the embedded derivatives pertaining to the variable annuity products with a market value adjustment option assumed from Pruco Life, included in "Reinsurance recoverables" or "Reinsurance payables", was a net asset of $34 million and $6 million as of March 31, 2019 and December 31, 2018, respectively. The fair value of the embedded derivatives, included in "Policyholders' account balances", was a net liability of $81 million and $42 million as of March 31, 2019 and December 31, 2018, respectively, with no related reinsurance recoverables. Offsetting Assets and Liabilities The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Statements of Financial Position.
For information regarding the rights of offset associated with the derivative assets and liabilities in the table above see “Credit Risk” below and Note 9. For securities purchased under agreements to resell and securities sold under agreements to repurchase, the Company monitors the value of the securities and maintains collateral, as appropriate, to protect against credit exposure. Where the Company has entered into repurchase and resale agreements with the same counterparty, in the event of default, the Company would generally be permitted to exercise rights of offset. For additional information on the Company’s accounting policy for securities repurchase and resale agreements, see Note 2 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. Cash Flow Hedges The primary derivative instruments used by the Company in its cash flow hedge accounting relationships are currency swaps. These instruments are only designated for hedge accounting in instances where the appropriate criteria are met. The Company does not use futures, options, credit, equity or embedded derivatives in any of its cash flow hedge accounting relationships. The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship.
Presented below is a rollforward of current period cash flow hedges in AOCI before taxes:
(1) See Note 2 for details. The changes in fair value of cash flow hedges are deferred in AOCI and are included in "Net unrealized investment gains (losses)" in the Unaudited Interim Statements of Operations and Comprehensive Income (Loss); these amounts are then reclassified to earnings when the hedged item affects earnings. Using March 31, 2019 values, it is estimated that a pre-tax gain of $11 million is expected to be reclassified from AOCI to earnings during the subsequent twelve months ending March 31, 2020, offset by amounts pertaining to the hedged items. The exposures the Company is hedging with these qualifying cash flow hedges include the variability of the payment or receipt of interest or foreign currency amounts on existing financial instruments. There were no material amounts reclassified from AOCI into earnings relating to instances in which the Company discontinued cash flow hedge accounting because the forecasted transaction did not occur by the anticipated date or within the additional time period permitted by the authoritative guidance for the accounting for derivatives and hedging. Credit Derivatives The Company has no exposure from credit derivative positions where it has written credit protection as of March 31, 2019 and December 31, 2018. The Company has purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio. The Company has outstanding notional amounts of $0.1 million and $0.0 million reported as of March 31, 2019 and December 31, 2018 respectively with a fair value of $0.0 million for both periods. Credit Risk The Company is exposed to credit-related losses in the event of non-performance by counterparty to financial derivative transactions with a positive fair value. The Company manages credit risk by entering into derivative transactions with its affiliate, Prudential Global Funding, LLC (“PGF”), related to its over-the-counter ("OTC") derivatives. PGF, in turn, manages its credit risk by: (i) entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties governed by master netting agreement, as applicable; (ii) trading through central clearing and OTC parties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single-party credit exposures which are subject to periodic management review. |
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Fair Value of Assets and Liabilities | FAIR VALUE OF ASSETS AND LIABILITIES Fair Value Measurement – Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows: Level 1 - Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities. Level 2 - Fair value is based on significant inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, and other market observable inputs. Level 3 - Fair value is based on at least one significant unobservable input for the asset or liability. The assets and liabilities in this category may require significant judgment or estimation in determining the fair value. For a discussion of the Company's valuation methodologies for assets and liabilities measured at fair value and the fair value hierarchy, see Note 5 to the Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018. Assets and Liabilities by Hierarchy Level – The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated.
Quantitative Information Regarding Internally Priced Level 3 Assets and Liabilities – The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities.
Interrelationships Between Unobservable Inputs – In addition to the sensitivities of fair value measurements to changes in each unobservable input in isolation, as reflected in the table above, interrelationships between these inputs may also exist, such that a change in one unobservable input may give rise to a change in another, or multiple, inputs. For the discussion of the relationships between unobservable inputs as well as market factors that may affect the range of inputs used in the valuation of Level 3 assets and liabilities, see Note 5 to the Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018. Changes in Level 3 Assets and Liabilities – 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. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. All transfers are generally reported at the value as of the beginning of the quarter in which transfers occur for any such assets still held at the end of the quarter.
Fair Value of Financial Instruments 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 Unaudited Interim Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value.
(1) Carrying values presented herein differ from those in the Company’s Unaudited Interim Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or are out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments.
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Income Taxes |
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Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company uses a full year projected effective tax rate approach to calculate year-to-date taxes. In addition, certain items impacting total income tax expense are recorded in the periods in which they occur. The projected effective tax rate is the ratio of projected “Income tax expense (benefit)” divided by projected “Income (loss) from operations before income taxes”. The interim period tax expense (or benefit) is the difference between the year-to-date income tax provision and the amounts reported for the previous interim periods of the fiscal year. The Company's income tax provision amounted to an income tax expense of $21 million, or (2.37)% of income (loss) from operations before income taxes in the first three months of 2019, compared to $156 million, or 19.73%, in the first three months of 2018. The Company’s current and prior effective tax rates differed from the U.S. statutory rate of 21% primarily due to non-taxable investment income and tax credits. |
Reinsurance |
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Reinsurance | REINSURANCE The Company uses reinsurance as part of its risk management and capital management strategies for certain of its living benefit guarantees and variable annuity base contracts. Effective April, 1, 2016, the Company recaptured the risks related to its variable annuity living benefit guarantees that were previously reinsured to affiliates. In addition, the Company reinsured variable annuity base contracts, along with the living benefit guarantees, from Pruco Life, excluding the PLNJ business which was reinsured to Prudential Insurance. This reinsurance covers new and in force business and excludes business reinsured externally. In the fourth quarter of 2015, the Company surrendered its New York license and reinsured the majority of its New York business, both the living benefit guarantees and base contracts, to Prudential Insurance. See Note 1 for additional information. Reinsurance ceded arrangements do not discharge the Company as the primary insurer. Ceded balances would represent a liability of the Company in the event the reinsurers were unable to meet their obligations to the Company under the terms of the reinsurance agreements. The Company believes a material reinsurance liability resulting from such inability of reinsurers to meet their obligations is unlikely. Realized investment gains and losses include the impact of reinsurance agreements, particularly reinsurance agreements involving living benefit guarantees. These reinsurance agreements are derivatives and have been accounted for in the same manner as embedded derivatives and the changes in the fair value of these derivatives are recognized through "Realized investment gains (losses), net". See Note 4 for additional information related to the accounting for embedded derivatives. Reinsurance amounts included in the Company's Unaudited Interim Statements of Financial Position as of March 31, 2019 and December 31, 2018 were as follows:
The reinsurance recoverables by counterparty are broken out below:
Reinsurance amounts, included in the Company’s Unaudited Interim Statements of Operations and Comprehensive Income (Loss) for the three months ended March 31, were as follows:
(2) "Policyholders' benefits (including change in reserves) ceded" includes $0.0 million and $(0.2) million of unaffiliated activity for the three months ended March 31, 2019 and 2018, respectively.
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | EQUITY Accumulated Other Comprehensive Income (Loss) AOCI represents the cumulative OCI items that are reported separate from net income and detailed on the Statements of Comprehensive Income. The balance of and changes in each component of AOCI as of and for the three months ended March 31, 2019 and 2018 are as follows:
Reclassifications out of Accumulated Other Comprehensive Income (Loss)
Net Unrealized Investment Gains (Losses) Net unrealized investment gains (losses) on securities classified as available-for-sale and certain other invested assets and other assets are included in the Company’s Unaudited Interim Statements of Financial Position as a component of AOCI. Changes in these amounts include reclassification adjustments to exclude from OCI those items that are included as part of “Net income” for a period that had been part of OCI in earlier periods. The amounts for the periods indicated below, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains (losses), are as follows: Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities on which an OTTI loss has been recognized
All Other Net Unrealized Investment Gains (Losses) in AOCI
(4) "Other liabilities" primarily includes reinsurance payables and deferred reinsurance gains.
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Related Party Transactions |
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Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | RELATED PARTY TRANSACTIONS The Company has extensive transactions and relationships with Prudential Insurance and other affiliates. Although we seek to ensure that these transactions and relationships are fair and reasonable, it is possible that the terms of these transactions are not the same as those that would result from transactions among unrelated parties. Expense Charges and Allocations Many of the Company’s expenses are allocations or charges from Prudential Insurance or other affiliates. These expenses can be grouped into general and administrative expenses and agency distribution expenses. The Company’s general and administrative expenses are charged to the Company using allocation methodologies based on business production processes. Management believes that the methodology is reasonable and reflects costs incurred by Prudential Insurance to process transactions on behalf of the Company. The Company operates under service and lease agreements whereby services of officers and employees, supplies, use of equipment and office space are provided by Prudential Insurance. The Company reviews its allocation methodology periodically which it may adjust accordingly. General and administrative expenses include allocations of stock compensation expenses related to a stock-based awards program and a deferred compensation program issued by Prudential Financial. The expense charged to the Company for the stock-based awards program was $0.0 million for both the three months ended March 31, 2019 and 2018. The expense charged to the Company for the deferred compensation program was $0.3 million and $0.2 million for the three months ended March 31, 2019 and 2018, respectively. The Company is charged for its share of employee benefit expenses. These expenses include costs for funded and non-funded contributory and non-contributory defined benefit pension plans. Some of these benefits are based on final earnings and length of service while others are based on an account balance, which takes into consideration age, service and earnings during a career. The Company’s share of net expense for the pension plans was $0.5 million for both the three months ended March 31, 2019 and 2018. The Company is also charged for its share of the costs associated with welfare plans issued by Prudential Insurance. These expenses include costs related to medical, dental, life insurance and disability. The Company's share of net expense for the welfare plans was $0.5 million for both the three months ended March 31, 2019 and 2018. Prudential Insurance sponsors voluntary savings plans for its employee 401(k) plans. The plans provide for salary reduction contributions by employees and matching contributions by the Company of up to 4% of annual salary. The Company's expense for its share of the voluntary savings plan was $0.2 million for both the three months ended March 31, 2019 and 2018. The Company pays commissions and certain other fees to PAD in consideration for PAD’s marketing and underwriting of the Company’s products. Commissions and fees are paid by PAD to broker-dealers who sell the Company’s products. Commissions and fees paid by the Company to PAD was $24 million and $29 million for the three months ended March 31, 2019 and 2018, respectively. The Company is charged for its share of corporate expenses incurred by Prudential Financial to benefit its businesses, such as advertising, executive oversight, external affairs and philanthropic activity. The Company’s share of corporate expenses was $4 million for both the three months ended March 31, 2019 and 2018. Affiliated Investment Management Expenses In accordance with an agreement with PGIM, Inc. (“PGIM”), the Company pays investment management expenses to PGIM who acts as investment manager to certain Company general account and separate account assets. Investment management expenses paid to PGIM related to this agreement were $3 million for both the three months ended March 31, 2019 and 2018. These expenses are recorded as “Net investment income” in the Company's Unaudited Interim Statements of Operations and Comprehensive Income (Loss). Derivative Trades In its ordinary course of business, the Company enters into OTC derivative contracts with an affiliate, PGF. For these OTC derivative contracts, PGF has a substantially equal and offsetting position with an external counterparty. See Note 4 for additional information. Joint Ventures The Company has a revenue sharing agreement with AST Investment Services, Inc. (“ASTISI”) and PGIM Investments LLC (“PGIM Investments”) whereby the Company receives fee income based on policyholders' separate account balances invested in the Advanced Series Trust and The Prudential Series Fund. Income received from ASTISI and PGIM Investments related to this agreement was $24 million and $27 million for the three months ended March 31, 2019 and 2018, respectively. These revenues are recorded as “Asset administration fees and other income” in the Company's Unaudited Interim Statements of Operations and Comprehensive Income (Loss). Affiliated Notes Receivable Affiliated notes receivable included in "Receivables from parent and affiliates" at March 31, 2019 and December 31, 2018 were as follows:
The affiliated notes receivable shown above are classified as available-for-sale securities and other trading assets carried at fair value. The Company monitors the internal and external credit ratings of these loans and loan performance. The Company also considers any guarantees made by Prudential Insurance for loans due from affiliates. Accrued interest receivable related to these loans was $0.1 million and $0.3 million at March 31, 2019 and December 31, 2018, respectively, and is included in “Other assets”. Revenues related to these assets were a loss of $0.2 million and a gain of $0.1 million for the three months ended March 31, 2019 and 2018, respectively, and are included in “Asset administration fees and other income”. Affiliated Asset Transfers The Company participates in affiliated asset trades with parent and sister companies. Book and market value differences for trades with a parent and sister are recognized within "Additional paid in capital" ("APIC") and "Realized investment gains (losses), net", respectively. The table below shows affiliated asset trades for the three months ended March 31, 2019 and for the year ended December 31, 2018.
Debt Agreements The Company is authorized to borrow funds up to $9 billion from Prudential Financial and its affiliates to meet its capital and other funding needs. The following table provides the breakout of the Company's short and long-term debt to affiliates as of March 31, 2019 and December 31, 2018:
The total interest expense to the Company related to loans and other payables to affiliates was $16 million for both the three months ended March 31, 2019 and 2018. Contributed Capital and Dividends Through March 2019 and December 31, 2018, the Company did not receive any capital contributions. In March 2019, there was a $245 million return of capital, to PAI. In March, June, September and December of 2018, there was a $300 million, $250 million, $250 million and $225 million return of capital, respectively, to PAI. Reinsurance with Affiliates |
Commitments and Contingent Liabilities |
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Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments The Company has made commitments to fund $43 million and $4 million of commercial mortgage loans as of March 31, 2019 and December 31, 2018, respectively. The Company also made commitments to purchase or fund investments, mostly private fixed maturities, of $210 million and $271 million as of March 31, 2019 and December 31, 2018, respectively. Contingent Liabilities On an ongoing basis, the Company and its regulators review its operations including, but not limited to, sales and other customer interface procedures and practices, and procedures for meeting obligations to our customers and other parties. These reviews may result in the modification or enhancement of processes or the imposition of other action plans, including concerning management oversight, sales and other customer interface procedures and practices, and the timing or computation of payments to customers and other parties. In certain cases, if appropriate, the Company may offer customers or other parties remediation and may incur charges, including the cost of such remediation, administrative costs and regulatory fines. The Company is subject to the laws and regulations of states and other jurisdictions concerning the identification, reporting and escheatment of unclaimed or abandoned funds, and is subject to audit and examination for compliance with these requirements. It is possible that the results of operations or the cash flows of the Company in a particular quarterly or annual period could be materially affected as a result of payments in connection with the matters discussed above or other matters depending, in part, upon the results of operations or cash flows for such period. Management believes, however, that ultimate payments in connection with these matters, after consideration of applicable reserves and rights to indemnification, should not have a material adverse effect on the Company’s financial position. Litigation and Regulatory Matters The Company is subject to legal and regulatory actions in the ordinary course of its business. Pending legal and regulatory actions include proceedings specific to the Company and proceedings generally applicable to business practices in the industry in which it operates. The Company is subject to class action lawsuits and other litigation involving a variety of issues and allegations involving sales practices, claims payments and procedures, premium charges, policy servicing and breach of fiduciary duty to customers. The Company is also subject to litigation arising out of its general business activities, such as its investments, contracts, leases and labor and employment relationships, including claims of discrimination and harassment, and could be exposed to claims or litigation concerning certain business or process patents. In addition, the Company, along with other participants in the businesses in which it engages, may be subject from time to time to investigations, examinations and inquiries, in some cases industry-wide, concerning issues or matters upon which such regulators have determined to focus. In some of the Company’s pending legal and regulatory actions, parties are seeking large and/or indeterminate amounts, including punitive or exemplary damages. The outcome of litigation or a regulatory matter, and the amount or range of potential loss at any particular time, is often inherently uncertain. The Company establishes accruals for litigation and regulatory matters when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. For litigation and regulatory matters where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimable, no accrual is established, but the matter, if material, is disclosed. The Company estimates that as of March 31, 2019, the aggregate range of reasonably possible losses in excess of accruals established for those litigation and regulatory matters for which such an estimate currently can be made is less than $150 million. This estimate is not an indication of expected loss, if any, or the Company’s maximum possible loss exposure on such matters. The Company reviews relevant information with respect to its litigation and regulatory matters on a quarterly and annual basis and updates its accruals, disclosures and estimates of reasonably possible loss based on such reviews. The following discussion of litigation and regulatory matters provides an update of those matters discussed in Note 15 to the Company's Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018, and should be read in conjunction with the complete descriptions provided in the Form 10-K. Securities Lending and Foreign Tax Reclaim Matter In 2016, Prudential Financial self-reported to the SEC and the U.S. Department of Labor ("DOL"), and notified other regulators, that in some cases it failed to maximize securities lending income for the benefit of certain separate account investments due to a long-standing restriction benefiting Prudential Financial that limited the availability of loanable securities. Prudential Financial has removed the restriction and implemented a remediation plan for the benefit of customers. As part of Prudential Financial’s review of this matter, in 2018 it further self-reported to the SEC, and notified other regulators, that in some cases it failed to timely process foreign tax reclaims for the separate account investments. Prudential Financial has corrected the foreign tax reclaim process and has implemented a remediation plan for the benefit of customers. The DOL’s review of the securities lending matter is closed. Prudential Financial is cooperating with the SEC in its review of the securities lending and foreign tax reclaim matters (which includes a review of the remediation plans) and has entered into discussions with the SEC staff regarding a possible settlement of both matters that would potentially involve charges under the Investment Advisers Act and financial remedies. Prudential Financial cannot predict the outcome of the discussions with the SEC regarding these matters. Summary |
Significant Accounting Policies and Pronouncements (Policies) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation The Unaudited Interim Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). |
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
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Reclassifications | Reclassifications |
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Adoption of New Accounting Pronouncements | Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of Accounting Standards Updates ("ASU") to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASU. ASU listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of the date of this filing. ASU not listed below were assessed and determined to be either not applicable or not material. ASU adopted during the three months ended March 31, 2019.
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Future Adoption Of New Accounting Pronouncements | ASU issued but not yet adopted as of March 31, 2019 — ASU 2018-12 ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, was issued by the FASB on August 15, 2018 and is expected to have a significant impact on the Company’s Financial Statements and Notes to the Financial Statements. The ASU is effective January 1, 2021 (with early adoption permitted), and will impact, at least to some extent, the accounting and disclosure requirements for all long-duration insurance and investment contracts issued by the Company. Outlined below are four key areas of change, although there are other changes not noted below. In addition to the impacts to the balance sheet upon adoption, the Company also expects an impact to how earnings emerge thereafter.
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Investments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed Maturities, Available-for-sale Securities | The following tables set forth the composition of fixed maturity securities (excluding investments classified as trading), as of the dates indicated:
(3) Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $3.3 million of net unrealized losses on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date.
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Duration Of Gross Unrealized Losses On Fixed Maturity Securities | The following tables set forth the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the dates indicated:
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Fixed Maturities Classified by Contractual Maturity Date | The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated:
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Sources of Fixed Maturity Proceeds, Realized Investment Gains (Losses), and Losses on Impairments | The following table sets forth the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on impairments of fixed maturities, for the periods indicated:
(2) Excludes the portion of OTTI amounts remaining in OCI, representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of the impairment.
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Credit Losses Recognized in Earnings on Fixed Maturity Securities Held by the Company for which a Portion of the OTTI Loss was Recognized in OCI | The following table sets forth a rollforward of pre-tax amounts remaining in OCI related to fixed maturity securities with credit loss impairments recognized in earnings, for the periods indicated:
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Commercial Mortgage and Other Loans | The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated:
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Allowance for Credit Losses | The following table sets forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated:
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Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans | The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans, as of the dates indicated:
(2) Recorded investment reflects the carrying value gross of related allowance.
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Financing Receivable Credit Quality Indicators | The following tables set forth certain key credit quality indicators for commercial mortgage and agricultural property loans based upon the recorded investment gross of allowance for credit losses, as of the dates indicated:
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Aging of Past Due Commercial Mortgage and Other Loans and Nonaccrual Status | The following tables set forth an aging of past due commercial mortgage and other loans based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated:
(2) For additional information regarding the Company's policies for accruing interest on loans, see Note 2 to the Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018.
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Other Invested Assets | The following table sets forth the composition of “Other invested assets,” as of the dates indicated:
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Net Investment Income | The following table sets forth “Net investment income” by investment type, for the periods indicated:
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Realized Investment Gains (Losses), Net | The following table sets forth “Realized investment gains (losses), net,” by investment type, for the periods indicated:
(1) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading.
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Net Unrealized Gains and (Losses) on Investments | The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated:
(1) For more information on cash flow hedges, see Note 4.
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Repurchase Agreements and Securities Lending | The following table sets forth the composition of “Cash collateral for loaned securities” which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated:
(1) The Company did not have any agreements with remaining contractual maturities of thirty days or greater, as of the dates indicated.
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Derivative Instruments (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The table below provides a summary of the gross notional amount and fair value of derivative contracts by the primary underlying risks, excluding embedded derivatives and associated reinsurance recoverables. Many derivative instruments contain multiple underlying risks. The fair value amounts below represent the gross fair value of derivative contracts prior to taking into account the netting effects of master netting agreements, cash collateral and NPR.
(2) Recorded in “Other invested assets”, “Other liabilities”, and "Payables to parent and affiliates" on the Unaudited Interim Statements of Financial Position.
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Offsetting of Financial Assets | The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Statements of Financial Position.
(1) Amounts exclude the excess of collateral received/pledged from/to the counterparty
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Offsetting of Financial Liabilities | The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Statements of Financial Position.
(1) Amounts exclude the excess of collateral received/pledged from/to the counterparty
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Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship.
(2) Prior period amounts have been updated to conform to current period presentation.
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Schedule of Derivative Instruments Recognized in Accumulated Other Comprehensive Income(Loss) Before Taxes | Presented below is a rollforward of current period cash flow hedges in AOCI before taxes:
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Fair Value of Assets and Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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.
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Fair Value Inputs, Assets and Liabilities, Quantitative Information | The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities.
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Fair Value, Assets 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. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. All transfers are generally reported at the value as of the beginning of the quarter in which transfers occur for any such assets still held at the end of the quarter.
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Fair Value, 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. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. All transfers are generally reported at the value as of the beginning of the quarter in which transfers occur for any such assets still held at the end of the quarter.
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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 Unaudited Interim Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value.
(1) Carrying values presented herein differ from those in the Company’s Unaudited Interim Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or are out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments.
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Reinsurance (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance Impact on Statements of Financial Position | Reinsurance amounts included in the Company's Unaudited Interim Statements of Financial Position as of March 31, 2019 and December 31, 2018 were as follows:
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Reinsurance Recoverables by Counterparty | The reinsurance recoverables by counterparty are broken out below:
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Reinsurance Impact on Statements of Operations and Comprehensive Income (Loss) | Reinsurance amounts, included in the Company’s Unaudited Interim Statements of Operations and Comprehensive Income (Loss) for the three months ended March 31, were as follows:
(2) "Policyholders' benefits (including change in reserves) ceded" includes $0.0 million and $(0.2) million of unaffiliated activity for the three months ended March 31, 2019 and 2018, respectively.
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Equity (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | The balance of and changes in each component of AOCI as of and for the three months ended March 31, 2019 and 2018 are as follows:
(1) Includes cash flow hedges of $(2) million and $(4) million as of March 31, 2019 and December 31, 2018, respectively, and $(39) million and $(26) million as of March 31, 2018 and December 31, 2017, respectively.
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Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of Accumulated Other Comprehensive Income (Loss)
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OTTI Net Unrealized Investment Gains (Losses) AOCI Rollforward | The amounts for the periods indicated below, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains (losses), are as follows: Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities on which an OTTI loss has been recognized
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All Other Net Unrealized Investment Gains (Losses) in AOCI Rollforward | All Other Net Unrealized Investment Gains (Losses) in AOCI
(4) "Other liabilities" primarily includes reinsurance payables and deferred reinsurance gains.
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Related Party Transactions (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Affiliated Notes Receivable | Affiliated notes receivable included in "Receivables from parent and affiliates" at March 31, 2019 and December 31, 2018 were as follows:
(1) All notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances.
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Affiliated Asset Transfer | The table below shows affiliated asset trades for the three months ended March 31, 2019 and for the year ended December 31, 2018.
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Debt Agreements | and December 31, 2018:
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Investments (Fixed Maturities Securities Excluding Investments Classified as Trading) (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
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Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 11,736,191 | $ 10,186,465 |
Fair Value | 11,700,494 | 9,771,673 |
Fixed maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 11,736,191 | 10,186,465 |
Gross Unrealized Gains | 248,106 | 86,799 |
Gross Unrealized Losses | 283,803 | 501,591 |
Fair Value | 11,700,494 | 9,771,673 |
Fixed maturities | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 6,541,281 | 5,240,519 |
Gross Unrealized Gains | 128,893 | 20,065 |
Gross Unrealized Losses | 232,980 | 376,493 |
Fair Value | 6,437,194 | 4,884,091 |
Fixed maturities | Obligations of U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 132,943 | 133,670 |
Gross Unrealized Gains | 2,309 | 621 |
Gross Unrealized Losses | 153 | 3,127 |
Fair Value | 135,099 | 131,164 |
Fixed maturities | Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 203,645 | 199,044 |
Gross Unrealized Gains | 7,991 | 4,748 |
Gross Unrealized Losses | 162 | 4,156 |
Fair Value | 211,474 | 199,636 |
Fixed maturities | U.S. public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,590,583 | 1,498,130 |
Gross Unrealized Gains | 47,315 | 26,425 |
Gross Unrealized Losses | 18,172 | 50,582 |
Fair Value | 1,619,726 | 1,473,973 |
Fixed maturities | U.S. private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,050,716 | 1,070,400 |
Gross Unrealized Gains | 24,133 | 15,430 |
Gross Unrealized Losses | 10,624 | 22,877 |
Fair Value | 1,064,225 | 1,062,953 |
Fixed maturities | Foreign public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 297,301 | 296,029 |
Gross Unrealized Gains | 5,573 | 1,888 |
Gross Unrealized Losses | 1,626 | 6,831 |
Fair Value | 301,248 | 291,086 |
Fixed maturities | Foreign private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 912,013 | 829,588 |
Gross Unrealized Gains | 18,537 | 10,415 |
Gross Unrealized Losses | 14,241 | 27,771 |
Fair Value | 916,309 | 812,232 |
Fixed maturities | Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 512,855 | 505,862 |
Gross Unrealized Gains | 3,353 | 3,147 |
Gross Unrealized Losses | 3,239 | 3,765 |
Fair Value | 512,969 | 505,244 |
Fixed maturities | Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 411,390 | 364,601 |
Gross Unrealized Gains | 7,603 | 2,770 |
Gross Unrealized Losses | 2,260 | 5,491 |
Fair Value | 416,733 | 361,880 |
Fixed maturities | Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 83,464 | 48,622 |
Gross Unrealized Gains | 2,399 | 1,290 |
Gross Unrealized Losses | 346 | 498 |
Fair Value | 85,517 | 49,414 |
OTTI | Fixed maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | (12) | (16) |
Net Unrealized Gains (Losses) | 3,300 | 3,300 |
OTTI | Fixed maturities | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | Obligations of U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | U.S. public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | U.S. private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | Foreign public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | Foreign private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | (12) | (16) |
OTTI | Fixed maturities | Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | $ 0 | $ 0 |
Investments (Fair Value and Losses by Investment Category and Length of Time in a Loss Position) (Details) - Fixed maturities - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | $ 678,889 | $ 2,264,523 |
Less than Twelve Months, Gross Unrealized Losses | 12,288 | 69,336 |
Twelve Months or More, Fair Value | 4,850,197 | 4,678,656 |
Twelve Months or More, Gross Unrealized Losses | 271,515 | 432,255 |
Total, Fair Value | 5,529,086 | 6,943,179 |
Total, Gross Unrealized Losses | 283,803 | 501,591 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 0 | 367,796 |
Less than Twelve Months, Gross Unrealized Losses | 0 | 4,844 |
Twelve Months or More, Fair Value | 3,443,363 | 3,304,663 |
Twelve Months or More, Gross Unrealized Losses | 232,980 | 371,649 |
Total, Fair Value | 3,443,363 | 3,672,459 |
Total, Gross Unrealized Losses | 232,980 | 376,493 |
Obligations of U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 0 | 25,764 |
Less than Twelve Months, Gross Unrealized Losses | 0 | 322 |
Twelve Months or More, Fair Value | 33,474 | 83,950 |
Twelve Months or More, Gross Unrealized Losses | 153 | 2,805 |
Total, Fair Value | 33,474 | 109,714 |
Total, Gross Unrealized Losses | 153 | 3,127 |
Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 107 | 98,437 |
Less than Twelve Months, Gross Unrealized Losses | 7 | 2,346 |
Twelve Months or More, Fair Value | 32,005 | 58,975 |
Twelve Months or More, Gross Unrealized Losses | 155 | 1,810 |
Total, Fair Value | 32,112 | 157,412 |
Total, Gross Unrealized Losses | 162 | 4,156 |
U.S. public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 121,372 | 627,589 |
Less than Twelve Months, Gross Unrealized Losses | 2,518 | 28,474 |
Twelve Months or More, Fair Value | 510,344 | 386,599 |
Twelve Months or More, Gross Unrealized Losses | 15,654 | 22,108 |
Total, Fair Value | 631,716 | 1,014,188 |
Total, Gross Unrealized Losses | 18,172 | 50,582 |
U.S. private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 57,980 | 269,545 |
Less than Twelve Months, Gross Unrealized Losses | 3,187 | 7,755 |
Twelve Months or More, Fair Value | 367,284 | 422,498 |
Twelve Months or More, Gross Unrealized Losses | 7,437 | 15,122 |
Total, Fair Value | 425,264 | 692,043 |
Total, Gross Unrealized Losses | 10,624 | 22,877 |
Foreign public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 16,098 | 97,367 |
Less than Twelve Months, Gross Unrealized Losses | 255 | 2,521 |
Twelve Months or More, Fair Value | 86,214 | 107,286 |
Twelve Months or More, Gross Unrealized Losses | 1,371 | 4,310 |
Total, Fair Value | 102,312 | 204,653 |
Total, Gross Unrealized Losses | 1,626 | 6,831 |
Foreign private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 175,953 | 373,891 |
Less than Twelve Months, Gross Unrealized Losses | 3,541 | 19,217 |
Twelve Months or More, Fair Value | 183,723 | 116,743 |
Twelve Months or More, Gross Unrealized Losses | 10,700 | 8,554 |
Total, Fair Value | 359,676 | 490,634 |
Total, Gross Unrealized Losses | 14,241 | 27,771 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 307,379 | 358,668 |
Less than Twelve Months, Gross Unrealized Losses | 2,780 | 3,501 |
Twelve Months or More, Fair Value | 31,211 | 24,529 |
Twelve Months or More, Gross Unrealized Losses | 459 | 264 |
Total, Fair Value | 338,590 | 383,197 |
Total, Gross Unrealized Losses | 3,239 | 3,765 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 0 | 45,432 |
Less than Twelve Months, Gross Unrealized Losses | 0 | 355 |
Twelve Months or More, Fair Value | 152,283 | 159,638 |
Twelve Months or More, Gross Unrealized Losses | 2,260 | 5,136 |
Total, Fair Value | 152,283 | 205,070 |
Total, Gross Unrealized Losses | 2,260 | 5,491 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 0 | 34 |
Less than Twelve Months, Gross Unrealized Losses | 0 | 1 |
Twelve Months or More, Fair Value | 10,296 | 13,775 |
Twelve Months or More, Gross Unrealized Losses | 346 | 497 |
Total, Fair Value | 10,296 | 13,809 |
Total, Gross Unrealized Losses | $ 346 | $ 498 |
Investments (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Investment [Line Items] | |||
Securities Sold under Agreements to Repurchase | $ 0 | $ 0 | |
Commercial mortgage loans, Percentage | 100.00% | 100.00% | |
Commercial mortgage and other loans, Acquired | $ 0 | $ 0 | |
Commercial mortgage and other loans, Sold | 101,000 | 0 | |
Fixed maturities | |||
Investment [Line Items] | |||
Gross unrealized losses | 283,803 | $ 501,591 | |
Gross unrealized losses of twelve months or more concentrated in various sectors | 271,515 | 432,255 | |
NAIC high or highest quality rating | Fixed maturities | |||
Investment [Line Items] | |||
Gross unrealized losses | 276,800 | 485,700 | |
NAIC other than high or highest quality rating | Fixed maturities | |||
Investment [Line Items] | |||
Gross unrealized losses | $ 7,000 | 15,900 | |
California | |||
Investment [Line Items] | |||
Commercial mortgage loans, Percentage | 27.00% | ||
Texas | |||
Investment [Line Items] | |||
Commercial mortgage loans, Percentage | 13.00% | ||
New York | |||
Investment [Line Items] | |||
Commercial mortgage loans, Percentage | 7.00% | ||
Europe | |||
Investment [Line Items] | |||
Commercial mortgage loans, Percentage | 12.00% | ||
Australia | |||
Investment [Line Items] | |||
Commercial mortgage loans, Percentage | 3.00% | ||
Other Income | Equity Securities | |||
Investment [Line Items] | |||
Unrealized Gain (Loss) on Investments | $ 900 | $ 800 | |
Fixed maturities | |||
Investment [Line Items] | |||
Gross unrealized losses of twelve months or more concentrated in various sectors | $ 271,500 | $ 432,300 |
Investments (Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturities) (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Amortized Cost | ||
Due in one year or less | $ 191,944 | |
Due after one year through five years | 1,198,681 | |
Due after five years through ten years | 1,440,920 | |
Due after ten years | 7,896,937 | |
Amortized Cost | 11,736,191 | $ 10,186,465 |
Fair Value | ||
Due in one year or less | 192,769 | |
Due after one year through five years | 1,210,583 | |
Due after five years through ten years | 1,477,358 | |
Due after ten years | 7,804,565 | |
Fair Value | 11,700,494 | $ 9,771,673 |
Asset-backed securities | ||
Amortized Cost | ||
Debt Maturities, without single maturity date | 512,855 | |
Fair Value | ||
Debt Maturities, without Single Maturity Date | 512,969 | |
Commercial mortgage-backed securities | ||
Amortized Cost | ||
Debt Maturities, without single maturity date | 411,390 | |
Fair Value | ||
Debt Maturities, without Single Maturity Date | 416,733 | |
Residential mortgage-backed securities | ||
Amortized Cost | ||
Debt Maturities, without single maturity date | 83,464 | |
Fair Value | ||
Debt Maturities, without Single Maturity Date | $ 85,517 |
Investments (Fixed Maturities Securities Proceeds) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Debt Securities, Available-for-sale [Line Items] | ||
Proceeds from maturities/prepayments | $ 271,473 | $ 1,345,164 |
Fixed maturities | Available-for-sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Proceeds from sales | 131,769 | 1,234,653 |
Proceeds from maturities/prepayments | 144,443 | 115,857 |
Gross investment gains from sales and maturities | 1,950 | 112 |
Gross investment losses from sales and maturities | (656) | (73,625) |
OTTI recognized in earnings | (2,025) | (286) |
Non-cash related proceeds | $ 4,700 | $ 5,300 |
Investments (Credit Losses Recognized In Earnings on Fixed Maturity Securities Held by the Company) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Investments [Abstract] | ||
Balance, beginning of period | $ (209) | $ 792 |
New credit loss impairments | 1,343 | 0 |
Increases due to the passage of time on previously recorded credit losses | 0 | 1 |
Reductions for securities which matured, paid down, prepaid or were sold during the period | 0 | (2) |
Balance, end of period | $ 1,134 | $ 791 |
Investments (Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 1,271,081 | $ 1,356,374 |
Commercial mortgage loans, Percentage | 100.00% | 100.00% |
Allowance for credit losses | $ (2,704) | $ (2,896) |
Total commercial mortgage and other loans | 1,268,377 | 1,353,478 |
Apartments and multi-family | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 270,922 | $ 304,644 |
Commercial mortgage loans, Percentage | 21.30% | 22.40% |
Hospitality | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 4,825 | $ 3,633 |
Commercial mortgage loans, Percentage | 0.40% | 0.30% |
Industrial | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 355,400 | $ 355,758 |
Commercial mortgage loans, Percentage | 28.00% | 26.20% |
Office | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 278,439 | $ 305,537 |
Commercial mortgage loans, Percentage | 21.90% | 22.50% |
Other | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 138,470 | $ 137,781 |
Commercial mortgage loans, Percentage | 10.90% | 10.20% |
Retail | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 169,617 | $ 194,646 |
Commercial mortgage loans, Percentage | 13.30% | 14.40% |
Commercial Mortgage Loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 1,217,673 | $ 1,301,999 |
Commercial mortgage loans, Percentage | 95.80% | 96.00% |
Agricultural property loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 53,408 | $ 54,375 |
Commercial mortgage loans, Percentage | 4.20% | 4.00% |
Investments (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | $ 2,896 | $ 2,650 |
Addition to (release of) allowance for credit losses | (192) | 246 |
Charge-offs, net of recoveries | 0 | 0 |
Total ending balance | 2,704 | 2,896 |
Commercial Mortgage Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | 2,861 | 2,616 |
Addition to (release of) allowance for credit losses | (205) | 245 |
Charge-offs, net of recoveries | 0 | 0 |
Total ending balance | 2,656 | 2,861 |
Agricultural Property Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | 35 | 34 |
Addition to (release of) allowance for credit losses | 13 | 1 |
Charge-offs, net of recoveries | 0 | 0 |
Total ending balance | $ 48 | $ 35 |
Investments (Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|---|
Allowance for Credit Losses: | |||
Individually evaluated for impairment | $ 0 | $ 0 | |
Collectively evaluated for impairment | 2,704 | 2,896 | |
Total ending balance | 2,704 | 2,896 | $ 2,650 |
Recorded Investment: | |||
Individually evaluated for impairment | 0 | 3,439 | |
Collectively evaluated for impairment | 1,271,081 | 1,352,935 | |
Total ending balance | 1,271,081 | 1,356,374 | |
Receivables Acquired with Deteriorated Credit Quality | |||
Recorded Investment: | |||
Financing Receivable Total | 0 | 0 | |
Commercial Mortgage Loans | |||
Allowance for Credit Losses: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 2,656 | 2,861 | |
Total ending balance | 2,656 | 2,861 | 2,616 |
Recorded Investment: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 1,217,673 | 1,301,999 | |
Total ending balance | 1,217,673 | 1,301,999 | |
Agricultural Property Loans | |||
Allowance for Credit Losses: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 48 | 35 | |
Total ending balance | 48 | 35 | $ 34 |
Recorded Investment: | |||
Individually evaluated for impairment | 0 | 3,439 | |
Collectively evaluated for impairment | 53,408 | 50,936 | |
Total ending balance | $ 53,408 | $ 54,375 |
Investments (Credit Quality Indicators) (Details) - Commercial Mortgage and Agricultural Loans - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 1,271,081 | $ 1,356,374 |
0%-59.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 689,380 | 724,501 |
60%-69.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 411,251 | 465,568 |
70%-79.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 167,436 | 163,285 |
80% or greater | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 3,014 | 3,020 |
≥ 1.2X | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 1,225,302 | 1,309,699 |
≥ 1.2X | 0%-59.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 670,461 | 709,342 |
≥ 1.2X | 60%-69.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 392,595 | 442,308 |
≥ 1.2X | 70%-79.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 160,246 | 156,049 |
≥ 1.2X | 80% or greater | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 2,000 | 2,000 |
1.0X to 1.2X | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 44,765 | 46,330 |
1.0X to 1.2X | 0%-59.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 18,919 | 14,814 |
1.0X to 1.2X | 60%-69.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 18,656 | 23,260 |
1.0X to 1.2X | 70%-79.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 7,190 | 7,236 |
1.0X to 1.2X | 80% or greater | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 1,020 |
Less than 1.0X | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 1,014 | 345 |
Less than 1.0X | 0%-59.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 345 |
Less than 1.0X | 60%-69.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Less than 1.0X | 70%-79.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Less than 1.0X | 80% or greater | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 1,014 | $ 0 |
Investments (Analysis of Past Due Commercial Mortgage, Agricultural and Other Loans) (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 1,271,081 | $ 1,356,374 |
Total Loans | 1,271,081 | 1,356,374 |
Non-Accrual Status | 0 | 0 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial Mortgage Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,217,673 | 1,301,999 |
Total Loans | 1,217,673 | 1,301,999 |
Non-Accrual Status | 0 | 0 |
Commercial Mortgage Loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial Mortgage Loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial Mortgage Loans | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Agricultural Property Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 53,408 | 54,375 |
Total Loans | 53,408 | 54,375 |
Non-Accrual Status | 0 | 0 |
Agricultural Property Loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Agricultural Property Loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Agricultural Property Loans | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Loans | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest | $ 0 | $ 0 |
Investments (Other Invested Assets) (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Other Invested Assets [Line Items] | ||
Other invested assets | $ 334,737 | $ 348,541 |
LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 334,735 | 305,563 |
Derivative Instruments | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 2 | 42,978 |
Equity Method | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 326,537 | 297,596 |
Equity Method | Private equity | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 24,851 | 23,844 |
Equity Method | Hedge funds | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 183,801 | 179,014 |
Equity Method | Real estate-related | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 117,885 | 94,738 |
Fair Value | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 8,198 | 7,967 |
Fair Value | Private equity | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 4,027 | 4,142 |
Fair Value | Hedge funds | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 265 | 263 |
Fair Value | Real estate-related | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | $ 3,906 | $ 3,562 |
Investments (Net Investment Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | $ 129,022 | $ 100,505 |
Less: investment expenses | (3,953) | (3,794) |
Net investment income | 125,069 | 96,711 |
Equity securities | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | 73 | 68 |
Commercial mortgage and other loans | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | 11,732 | 13,493 |
Policy loans | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | 59 | 135 |
Short-term investments and cash equivalents | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | 13,740 | 6,527 |
Other invested assets | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | 8,842 | 3,630 |
Available-for-sale | Fixed maturities | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | 92,211 | 76,051 |
Trading | Fixed maturities | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | $ 2,365 | $ 601 |
Investments (Realized Investment Gains Losses, Net) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Schedule Of Gain Loss On Investments [Line Items] | ||
Realized investment (gains) losses, net | $ (1,342,219) | $ 558,690 |
Fixed maturities | ||
Schedule Of Gain Loss On Investments [Line Items] | ||
Realized investment (gains) losses, net | (731) | (73,799) |
Commercial mortgage and other loans | ||
Schedule Of Gain Loss On Investments [Line Items] | ||
Realized investment (gains) losses, net | (781) | (620) |
LPs/LLCs | ||
Schedule Of Gain Loss On Investments [Line Items] | ||
Realized investment (gains) losses, net | 0 | 0 |
Derivatives | ||
Schedule Of Gain Loss On Investments [Line Items] | ||
Realized investment (gains) losses, net | (1,340,928) | 633,120 |
Short-term investments and cash equivalents | ||
Schedule Of Gain Loss On Investments [Line Items] | ||
Realized investment (gains) losses, net | $ 221 | $ (11) |
Investments (Net Unrealized Gains Losses on Investments by Asset Class) (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | $ (36,160) | $ (416,909) |
Fixed maturities | Available-for-sale | OTTI | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 3,283 | (3,334) |
Fixed maturities | Available-for-sale | All other | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | (38,980) | (411,458) |
Derivatives designated as cash flow hedges | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | (2,184) | (3,849) |
Affiliated notes | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 646 | 658 |
Other investments | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | $ 1,075 | $ 1,074 |
Investments (Repurchase Agreement and Securities Lending) (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | $ 0 | $ 384 |
Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 384 |
Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 0 |
30 days or greater | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 0 |
Foreign government bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 0 |
Foreign government bonds | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 0 |
Foreign government bonds | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 0 |
U.S. public corporate securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 384 |
U.S. public corporate securities | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 384 |
U.S. public corporate securities | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | $ 0 | $ 0 |
Derivative Instruments (Gross Notional Amount and Fair Value of Derivatives Contracts) (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Derivative [Line Items] | ||
Notional | $ 152,738,492 | $ 147,248,020 |
Assets | 4,467,949 | 4,847,794 |
Liabilities | (2,260,681) | (2,140,789) |
Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 838,657 | 768,075 |
Assets | 33,158 | 33,348 |
Liabilities | (20,530) | (21,794) |
Derivatives Designated as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Notional | 838,657 | 768,075 |
Assets | 33,158 | 33,348 |
Liabilities | (20,530) | (21,794) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 151,899,835 | 146,479,945 |
Assets | 4,434,791 | 4,814,446 |
Liabilities | (2,240,151) | (2,118,995) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Notional | 216,835 | 231,245 |
Assets | 10,332 | 11,659 |
Liabilities | (1,580) | (2,850) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Default Swap | ||
Derivative [Line Items] | ||
Notional | 100 | 0 |
Assets | 0 | 0 |
Liabilities | (2) | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Futures | ||
Derivative [Line Items] | ||
Notional | 2,867,600 | 908,100 |
Assets | 463 | 4,380 |
Liabilities | (7,020) | (664) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional | 86,415,325 | 82,172,825 |
Assets | 3,904,603 | 3,344,033 |
Liabilities | (1,093,824) | (1,395,270) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Options | ||
Derivative [Line Items] | ||
Notional | 18,435,000 | 19,255,000 |
Assets | 159,096 | 139,765 |
Liabilities | (268,250) | (245,523) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Forwards | ||
Derivative [Line Items] | ||
Notional | 501,438 | 1,713,947 |
Assets | 29,715 | 56,562 |
Liabilities | 0 | (1,976) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Forwards | ||
Derivative [Line Items] | ||
Notional | 20,058 | 19,467 |
Assets | 154 | 287 |
Liabilities | (55) | (27) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Futures | ||
Derivative [Line Items] | ||
Notional | 1,188,970 | 860,718 |
Assets | 0 | 0 |
Liabilities | (6,867) | (6,629) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Total Return Swaps | ||
Derivative [Line Items] | ||
Notional | 14,958,889 | 14,456,836 |
Assets | 69,834 | 986,130 |
Liabilities | (519,910) | (53,235) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Options | ||
Derivative [Line Items] | ||
Notional | 27,295,620 | 26,861,807 |
Assets | 260,594 | 271,630 |
Liabilities | $ (342,643) | $ (412,821) |
Derivative Instruments (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Derivatives Assets | ||
Gross Amounts of Recognized Financial Instruments | $ 4,467,949 | $ 4,847,794 |
Gross Amounts Offset in the Statements of Financial Position | (4,467,947) | (4,804,816) |
Net Amounts Presented in the Statements of Financial Position | 2 | 42,978 |
Financial Instruments/Collateral | 0 | 0 |
Net Amount | 2 | 42,978 |
Securities Purchased under Agreements to Resell | ||
Gross Amounts of Recognized Financial Instruments | 1,003,000 | 675,000 |
Gross Amounts Offset in the Statements of Financial Position | 0 | 0 |
Net Amounts Presented in the Statements of Financial Position | 1,003,000 | 675,000 |
Financial Instruments/Collateral | (1,003,000) | (675,000) |
Net Amount | 0 | 0 |
Total Assets | ||
Gross Amounts of Recognized Financial Instruments | 5,470,949 | 5,522,794 |
Gross Amounts Offset in the Statements of Financial Position | (4,467,947) | (4,804,816) |
Net Amounts Presented in the Statements of Financial Position | 1,003,002 | 717,978 |
Financial Instruments/Collateral | (1,003,000) | (675,000) |
Net Amount | 2 | 42,978 |
Derivatives Liabilities | ||
Gross Amounts of Recognized Financial Instruments | 2,260,681 | 2,140,789 |
Gross Amounts Offset in the Statements of Financial Position | (2,095,054) | (2,134,160) |
Net Amounts Presented in the Statements of Financial Position | 165,627 | 6,629 |
Financial Instruments/Collateral | (66,349) | (6,629) |
Net Amount | 99,278 | 0 |
Securities sold under agreement to repurchase | ||
Gross Amounts of Recognized Financial Instruments | 0 | 0 |
Gross amounts Offset in the Statements of Financial Position | 0 | 0 |
Net Amounts Presented in the Statements of Financial Position | 0 | 0 |
Financial Instruments/Collateral | 0 | 0 |
Net Amount | 0 | 0 |
Total Liabilities | ||
Gross Amounts of Recognized Financial Instruments | 2,260,681 | 2,140,789 |
Gross amounts Offset in the Statements of Financial Position Agreements to Repurchase, Securities Loaned, Asset | (2,095,054) | (2,134,160) |
Net Amounts Presented in the Statements of Financial Position | 165,627 | 6,629 |
Financial Instruments/Collateral | (66,349) | (6,629) |
Net Amount | $ 99,278 | $ 0 |
Derivative Instruments (Financial Statement Classification and Impact of Derivatives Used in Qualifying and Non-qualifying Hedge Relationships) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Realized Investment Gains (Losses) | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | $ (1,340,928) | $ 633,120 |
Net Investment Income | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 2,733 | 1,615 |
Other Income | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (1,556) | (4,049) |
Accumulated Other Comprehensive Income (Loss) | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1,623 | (12,971) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Realized Investment Gains (Losses) | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (321) | (838) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Net Investment Income | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 2,733 | 1,615 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Other Income | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (1,559) | (3,994) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Accumulated Other Comprehensive Income (Loss) | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1,623 | (12,971) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Realized Investment Gains (Losses) | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (321) | (838) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Net Investment Income | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 2,733 | 1,615 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Other Income | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (1,559) | (3,994) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Accumulated Other Comprehensive Income (Loss) | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1,623 | (12,971) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Realized Investment Gains (Losses) | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (1,340,607) | 633,958 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Net Investment Income | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Income | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 3 | (55) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Accumulated Other Comprehensive Income (Loss) | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Realized Investment Gains (Losses) | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 992,444 | (1,183,795) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Net Investment Income | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Other Income | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Accumulated Other Comprehensive Income (Loss) | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Realized Investment Gains (Losses) | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (186) | (470) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Net Investment Income | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Other Income | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Accumulated Other Comprehensive Income (Loss) | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Realized Investment Gains (Losses) | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1,831 | (12,494) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Net Investment Income | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Other Income | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 3 | (55) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Accumulated Other Comprehensive Income (Loss) | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Risk Contract | Realized Investment Gains (Losses) | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (1) | |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Risk Contract | Net Investment Income | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Risk Contract | Other Income | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Risk Contract | Accumulated Other Comprehensive Income (Loss) | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Realized Investment Gains (Losses) | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (1,650,110) | 12,066 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Net Investment Income | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Other Income | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Accumulated Other Comprehensive Income (Loss) | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Realized Investment Gains (Losses) | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | (684,585) | 1,818,651 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Net Investment Income | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Other Income | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Accumulated Other Comprehensive Income (Loss) | ||
Derivative Instruments Gain Loss [Line Items] | ||
Derivative Instruments Gain (Loss) Recognized In Income Net | $ 0 | $ 0 |
Derivative Instruments (Current Period Cash Flow Hedges in AOCI (loss) before Taxes) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Cumulative effect of adoption | $ 42 | |
Cash flow hedges in AOCI | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Balance, beginning | $ (3,849) | |
Amount recorded in AOCI | 2,476 | |
Amount reclassified into current period earnings | (853) | |
Balance, ending | (2,184) | |
Currency/Interest Rate | Accumulated Gain (Loss), Net, Cash Flow Hedge | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Amount recorded in AOCI | 2,476 | |
Amount reclassified into current period earnings | $ (853) |
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Credit Risk Derivatives, at Fair Value, Net | $ 0.0 | $ 0.0 |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 11.0 | |
Credit Derivative, Maximum Exposure, Undiscounted | 0.1 | 0.0 |
Future policy benefits | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | (9,317.0) | (8,332.0) |
Policyholders' Account Balances | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | (81.0) | (42.0) |
Prudential Insurance | Reinsurance Recoverables (Payables) | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | 250.0 | 234.0 |
Pruco Life | Reinsurance Recoverables (Payables) | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | $ 34.0 | $ 6.0 |
Fair Value of Assets and Liabilities (Balances of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | $ 11,700,494 | $ 9,771,673 |
Fixed maturities trading | 335,751 | 289,752 |
Equity securities | 26,247 | 20,613 |
Short-term investments | 123,310 | 37,568 |
Other invested assets | 334,737 | 348,541 |
Reinsurance recoverables | 592,751 | 572,102 |
Receivables from parent and affiliates | 15,676 | 46,381 |
Separate account assets | 33,071,354 | 31,210,346 |
TOTAL ASSETS | 56,370,730 | 54,677,844 |
Future policy benefits | 10,346,448 | 9,368,986 |
Policyholders’ account balances | 5,465,749 | 5,353,596 |
Payables to parent and affiliates | 197,220 | 30,846 |
Other Liabilities | 406,009 | 811,016 |
Total Liabilities | 50,549,780 | 47,936,276 |
Future policy benefits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net Liability | 9,317,000 | 8,332,000 |
Embedded Derivative, Fair Value of Embedded Derivative Gross Asset | 608,000 | 625,000 |
Embedded Derivative, Fair Value of Embedded Derivative Gross Liability | 9,925,000 | 8,957,000 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 11,700,494 | 9,771,673 |
Fixed maturities trading | 335,751 | 289,752 |
Equity securities | 16,247 | 10,613 |
Short-term investments | 115,560 | 29,818 |
Cash equivalents | 1,331,528 | 3,692,359 |
Other invested assets | 2 | 42,978 |
Reinsurance recoverables | 283,991 | 239,911 |
Receivables from parent and affiliates | 3,171 | 37,193 |
Subtotal excluding separate account assets | 13,786,744 | 14,114,297 |
Separate account assets | 33,071,354 | 31,210,346 |
TOTAL ASSETS | 46,858,098 | 45,324,643 |
Future policy benefits | 9,316,905 | 8,332,474 |
Policyholders’ account balances | 80,579 | 42,350 |
Payables to parent and affiliates | 152,202 | 0 |
Other Liabilities | 13,425 | 6,629 |
Total Liabilities | 9,563,111 | 8,381,453 |
Assets Netting | (4,467,947) | (4,804,816) |
Liabilities Netting | (2,095,054) | (2,134,160) |
Netting | 2,373,000 | 2,671,000 |
Fair Value, Measurements, Recurring | Other invested assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Netting | (4,467,947) | (4,804,816) |
Fair Value, Measurements, Recurring | Payables to parent and affiliates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Netting | (2,094,591) | (2,133,496) |
Fair Value, Measurements, Recurring | Other liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Netting | (463) | (664) |
Fair Value, Measurements, Recurring | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 6,437,194 | 4,884,091 |
Fair Value, Measurements, Recurring | Obligations of U.S. states and their political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 135,099 | 131,164 |
Fair Value, Measurements, Recurring | Foreign government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 211,474 | 199,636 |
Fair Value, Measurements, Recurring | U.S. corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 1,619,726 | 1,473,973 |
Fair Value, Measurements, Recurring | U.S. corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 1,064,225 | 1,062,953 |
Fair Value, Measurements, Recurring | Foreign corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 301,248 | 291,086 |
Fair Value, Measurements, Recurring | Foreign corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 916,309 | 812,232 |
Fair Value, Measurements, Recurring | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 512,969 | 505,244 |
Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 416,733 | 361,880 |
Fair Value, Measurements, Recurring | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 85,517 | 49,414 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fixed maturities trading | 0 | 0 |
Equity securities | 5,324 | 4,896 |
Short-term investments | 0 | 0 |
Cash equivalents | 499,687 | 1,098,903 |
Other invested assets | 463 | 4,380 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 0 | 0 |
Subtotal excluding separate account assets | 505,474 | 1,108,179 |
Separate account assets | 0 | 0 |
TOTAL ASSETS | 505,474 | 1,108,179 |
Future policy benefits | 0 | 0 |
Policyholders’ account balances | 0 | 0 |
Payables to parent and affiliates | 0 | 0 |
Other Liabilities | 13,888 | 7,293 |
Total Liabilities | 13,888 | 7,293 |
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Obligations of U.S. states and their political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 11,556,657 | 9,668,753 |
Fixed maturities trading | 335,751 | 289,752 |
Equity securities | 5,307 | 12 |
Short-term investments | 115,560 | 29,818 |
Cash equivalents | 831,841 | 2,593,456 |
Other invested assets | 4,467,486 | 4,843,414 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 3,171 | 37,193 |
Subtotal excluding separate account assets | 17,315,773 | 17,462,398 |
Separate account assets | 33,071,354 | 31,210,346 |
TOTAL ASSETS | 50,387,127 | 48,672,744 |
Future policy benefits | 0 | 0 |
Policyholders’ account balances | 0 | 0 |
Payables to parent and affiliates | 2,246,793 | 2,133,496 |
Other Liabilities | 0 | 0 |
Total Liabilities | 2,246,793 | 2,133,496 |
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 6,428,415 | 4,875,959 |
Fair Value, Measurements, Recurring | Level 2 | Obligations of U.S. states and their political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 135,099 | 131,164 |
Fair Value, Measurements, Recurring | Level 2 | Foreign government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 211,474 | 199,636 |
Fair Value, Measurements, Recurring | Level 2 | U.S. corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 1,619,726 | 1,473,973 |
Fair Value, Measurements, Recurring | Level 2 | U.S. corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 1,010,861 | 1,008,632 |
Fair Value, Measurements, Recurring | Level 2 | Foreign corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 301,031 | 291,086 |
Fair Value, Measurements, Recurring | Level 2 | Foreign corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 885,090 | 781,101 |
Fair Value, Measurements, Recurring | Level 2 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 493,289 | 495,908 |
Fair Value, Measurements, Recurring | Level 2 | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 386,155 | 361,880 |
Fair Value, Measurements, Recurring | Level 2 | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 85,517 | 49,414 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 143,837 | 102,920 |
Fixed maturities trading | 0 | 0 |
Equity securities | 5,616 | 5,705 |
Short-term investments | 0 | 0 |
Cash equivalents | 0 | 0 |
Other invested assets | 0 | 0 |
Reinsurance recoverables | 283,991 | 239,911 |
Receivables from parent and affiliates | 0 | 0 |
Subtotal excluding separate account assets | 433,444 | 348,536 |
Separate account assets | 0 | 0 |
TOTAL ASSETS | 433,444 | 348,536 |
Future policy benefits | 9,316,905 | 8,332,474 |
Policyholders’ account balances | 80,579 | 42,350 |
Payables to parent and affiliates | 0 | 0 |
Other Liabilities | 0 | 0 |
Total Liabilities | 9,397,484 | 8,374,824 |
Fair Value, Measurements, Recurring | Level 3 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 8,779 | 8,132 |
Fair Value, Measurements, Recurring | Level 3 | Obligations of U.S. states and their political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Foreign government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 53,364 | 54,321 |
Fair Value, Measurements, Recurring | Level 3 | Foreign corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 217 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Foreign corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 31,219 | 31,131 |
Fair Value, Measurements, Recurring | Level 3 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 19,680 | 9,336 |
Fair Value, Measurements, Recurring | Level 3 | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 30,578 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Other invested assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value investment measured at NAV per share | $ 8,200 | $ 8,000 |
Fair Value of Assets and Liabilities (Quantitative Info for Level 3 Inputs) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Corporate securities | $ 23,456 | $ 18,765 |
Future policy benefits | 10,346,448 | 9,368,986 |
Fair Value, Measurements, Recurring | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Future policy benefits | $ 9,316,905 | 8,332,474 |
Level 3 | Minimum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Fair Value Inputs, Policyholder Age | 50 years | |
Level 3 | Minimum | Future policy benefits | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Mortality rate | 0.00% | |
Level 3 | Maximum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Fair Value Inputs, Policyholder Age | 90 years | |
Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Future policy benefits | $ 9,316,905 | $ 8,332,474 |
Level 3 | Internal | Minimum | Discounted cash flow | Future policy benefits | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 1.00% | 1.00% |
Spread over LIBOR | 0.12% | 0.36% |
Utilization rate | 50.00% | 50.00% |
Withdrawal rate (greater than maximum range) | 78.00% | 78.00% |
Mortality rate | 0.00% | 0.00% |
Equity volatility curve | 15.00% | 18.00% |
Level 3 | Internal | Minimum | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 7.89% | 7.00% |
Level 3 | Internal | Minimum | Market comparables | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA multiples | 6.7 | 6.7 |
Level 3 | Internal | Minimum | Liquidation | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Liquidation value | 13.18% | 41.00% |
Level 3 | Internal | Maximum | Discounted cash flow | Future policy benefits | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 13.00% | 13.00% |
Spread over LIBOR | 1.35% | 1.60% |
Utilization rate | 97.00% | 97.00% |
Withdrawal rate (greater than maximum range) | 100.00% | 100.00% |
Mortality rate | 15.00% | 15.00% |
Equity volatility curve | 22.00% | 22.00% |
Level 3 | Internal | Maximum | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 20.00% | 20.00% |
Level 3 | Internal | Maximum | Market comparables | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA multiples | 6.7 | 6.7 |
Level 3 | Internal | Maximum | Liquidation | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Liquidation value | 13.18% | 41.00% |
Level 3 | Internal | Weighted Average | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 13.18% | 11.30% |
Level 3 | Internal | Weighted Average | Market comparables | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA multiples | 6.7 | 6.7 |
Level 3 | Internal | Weighted Average | Liquidation | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Liquidation value | 13.18% | 41.00% |
Level 3 | Internal | Fair Value, Measurements, Recurring | Future policy benefits | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Future policy benefits | $ 9,316,905 | $ 8,332,474 |
Level 3 | Internal | Fair Value, Measurements, Recurring | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Corporate securities | 14,957 | 18,609 |
Level 3 | Internal | Fair Value, Measurements, Recurring | Reinsurance recoverables | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Reinsurance recoverables | $ 283,991 | $ 239,911 |
Fair Value of Assets and Liabilities (Changes in Level 3 Assets and Liabilities) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Equity Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | $ 5,705 | $ 9,758 |
Purchases | 0 | 0 |
Sales | (195) | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Other | 0 | 147 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | 5,616 | 10,617 |
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 106 | 712 |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | 118 | 0 |
Equity Securities | Realized investment gains (losses), net | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | 0 | 0 |
Equity Securities | Other income | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 106 | 712 |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | 118 | 0 |
Equity Securities | Included in other comprehensive income (loss) | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | 0 |
Equity Securities | Net investment income | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | 0 |
Other invested assets | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 0 | 147 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Other | 0 | (147) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | 0 | 0 |
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | 0 | 0 |
Other invested assets | Realized investment gains (losses), net | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | 0 | 0 |
Other invested assets | Other income | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | 0 | 0 |
Other invested assets | Included in other comprehensive income (loss) | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | 0 |
Other invested assets | Net investment income | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | 0 |
Short-term investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 0 | 87 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Other | 0 | (23) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | 0 | 11 |
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | (53) |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | 0 | 0 |
Short-term investments | Realized investment gains (losses), net | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | (53) |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | 0 | 0 |
Short-term investments | Other income | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | 0 | 0 |
Short-term investments | Included in other comprehensive income (loss) | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | 0 |
Short-term investments | Net investment income | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | 0 |
Reinsurance recoverables | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 239,911 | 244,006 |
Purchases | 4,559 | 4,850 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Other | 21,896 | (12,317) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | 283,991 | 195,497 |
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 17,625 | (41,042) |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | 17,625 | (38,617) |
Reinsurance recoverables | Realized investment gains (losses), net | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 17,625 | (41,042) |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | 17,625 | (38,617) |
Reinsurance recoverables | Other income | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | 0 | 0 |
Reinsurance recoverables | Included in other comprehensive income (loss) | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | 0 |
Reinsurance recoverables | Net investment income | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | 0 |
Receivables from parents and affiliates | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Other | 0 | 0 |
Transfers into Level 3 | 0 | 34,269 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | 0 | 34,163 |
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | (106) |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | 0 | 0 |
Receivables from parents and affiliates | Realized investment gains (losses), net | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | 0 | 0 |
Receivables from parents and affiliates | Other income | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | 0 | 0 |
Receivables from parents and affiliates | Included in other comprehensive income (loss) | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | (106) |
Receivables from parents and affiliates | Net investment income | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | 0 |
Future policy benefits | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | (8,332,474) | (8,151,902) |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | (257,341) | (254,920) |
Settlements | 0 | 0 |
Other | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | (9,316,905) | (6,578,210) |
Total gains (losses) (realized/unrealized): | ||
Included in earnings | (727,090) | 1,828,612 |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | (790,926) | 1,745,629 |
Future policy benefits | Realized investment gains (losses), net | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | (727,090) | 1,828,612 |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | (790,926) | 1,745,629 |
Future policy benefits | Other income | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | 0 | 0 |
Future policy benefits | Included in other comprehensive income (loss) | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | 0 |
Future policy benefits | Net investment income | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | 0 |
Policyholders' Account Balances | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | (42,350) | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | (30,246) | 0 |
Settlements | 0 | 0 |
Other | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | (80,579) | 0 |
Total gains (losses) (realized/unrealized): | ||
Included in earnings | (7,983) | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | (7,983) | 0 |
Policyholders' Account Balances | Realized investment gains (losses), net | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | (7,983) | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | (7,983) | 0 |
Policyholders' Account Balances | Other income | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | 0 | 0 |
Policyholders' Account Balances | Included in other comprehensive income (loss) | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | 0 |
Policyholders' Account Balances | Net investment income | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | 0 |
Reinsurance payable | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 0 | |
Purchases | 0 | |
Sales | 0 | |
Issuances | 0 | |
Settlements | 0 | |
Other | (129) | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Fair Value, end of period | (129) | |
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | (12,317) | |
Reinsurance payable | Realized investment gains (losses), net | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | (12,317) | |
Reinsurance payable | Other income | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | 0 | |
Reinsurance payable | Included in other comprehensive income (loss) | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | |
Reinsurance payable | Net investment income | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | |
Available-for-sale | Fixed maturities | Realized investment gains (losses), net | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | (725) | (66) |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | (1,998) | (76) |
Available-for-sale | Fixed maturities | Other income | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | 0 | 0 |
Available-for-sale | Fixed maturities | Included in other comprehensive income (loss) | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 1,441 | 1,050 |
Available-for-sale | Fixed maturities | Net investment income | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 39 | 95 |
Available-for-sale | Fixed maturities | U.S. government | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 8,132 | 5,237 |
Purchases | 647 | 645 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Other | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | 8,779 | 5,882 |
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | 0 | 0 |
Available-for-sale | Fixed maturities | Corporate securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 85,452 | 95,206 |
Purchases | 3,226 | 151 |
Sales | 0 | (36) |
Issuances | 0 | 0 |
Settlements | (5,463) | (6,035) |
Other | 0 | 23 |
Transfers into Level 3 | 975 | 0 |
Transfers out of Level 3 | 0 | (215) |
Fair Value, end of period | 84,800 | 90,273 |
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 610 | 1,179 |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | (1,996) | (76) |
Available-for-sale | Fixed maturities | Structured securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 9,336 | 185,358 |
Purchases | 44,273 | 63,810 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (4,047) | (8,899) |
Other | 0 | 0 |
Transfers into Level 3 | 551 | 41,954 |
Transfers out of Level 3 | 0 | (25,879) |
Fair Value, end of period | 50,258 | 256,244 |
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 145 | (100) |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | $ (2) | $ 0 |
Fair Value of Assets and Liabilities (Financial Instruments where Carrying Amounts and Fair Values May Differ) (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|---|---|
Assets: | ||||
Policy loans | $ 12,664 | $ 12,805 | ||
Cash and cash equivalents | 2,396,595 | 4,503,534 | $ 2,272,907 | $ 1,639,939 |
Accrued investment income | 96,245 | 90,895 | ||
Reinsurance recoverables | 592,751 | 572,102 | ||
Receivables from parent and affiliates | 15,676 | 46,381 | ||
Liabilities: | ||||
Cash collateral for loaned securities | 0 | 384 | ||
Short-term debt | 140,569 | 140,569 | ||
Long-term debt | 653,596 | 787,596 | ||
Reinsurance payables | 268,835 | 232,937 | ||
Fair Value | ||||
Assets: | ||||
Commercial mortgage and other loans | 1,280,080 | 1,339,707 | ||
Policy loans | 12,664 | 12,805 | ||
Short-term investments | 7,750 | 7,750 | ||
Cash and cash equivalents | 1,065,067 | 811,175 | ||
Accrued investment income | 96,245 | 90,895 | ||
Reinsurance recoverables | 54,113 | 55,236 | ||
Receivables from parent and affiliates | 12,505 | 9,188 | ||
Other assets | 5,823 | 3,735 | ||
Total assets | 2,534,247 | 2,330,491 | ||
Liabilities: | ||||
Policyholders’ account balances - investment contracts | 752,629 | 560,548 | ||
Cash collateral for loaned securities | 0 | 384 | ||
Short-term debt | 140,329 | 139,843 | ||
Long-term debt | 675,041 | 791,670 | ||
Reinsurance payables | 54,113 | 55,236 | ||
Payables to parent and affiliates | 45,018 | 30,846 | ||
Other liabilities | 142,407 | 554,162 | ||
Separate account liabilities - investment contracts | 70 | 71 | ||
Total liabilities | 1,809,607 | 2,132,760 | ||
Carrying Amount | ||||
Assets: | ||||
Commercial mortgage and other loans | 1,268,377 | 1,353,478 | ||
Policy loans | 12,664 | 12,805 | ||
Short-term investments | 7,750 | 7,750 | ||
Cash and cash equivalents | 1,065,067 | 811,175 | ||
Accrued investment income | 96,245 | 90,895 | ||
Reinsurance recoverables | 54,113 | 55,236 | ||
Receivables from parent and affiliates | 12,505 | 9,188 | ||
Other assets | 5,823 | 3,735 | ||
Total assets | 2,522,544 | 2,344,262 | ||
Liabilities: | ||||
Policyholders’ account balances - investment contracts | 753,178 | 565,903 | ||
Cash collateral for loaned securities | 0 | 384 | ||
Short-term debt | 140,569 | 140,569 | ||
Long-term debt | 653,596 | 787,596 | ||
Reinsurance payables | 54,113 | 55,236 | ||
Payables to parent and affiliates | 45,018 | 30,846 | ||
Other liabilities | 142,407 | 554,162 | ||
Separate account liabilities - investment contracts | 70 | 71 | ||
Total liabilities | 1,788,951 | 2,134,767 | ||
Level 1 | Fair Value | ||||
Assets: | ||||
Commercial mortgage and other loans | 0 | 0 | ||
Policy loans | 0 | 0 | ||
Short-term investments | 7,750 | 7,750 | ||
Cash and cash equivalents | 62,067 | 136,175 | ||
Accrued investment income | 0 | 0 | ||
Reinsurance recoverables | 0 | 0 | ||
Receivables from parent and affiliates | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets | 69,817 | 143,925 | ||
Liabilities: | ||||
Policyholders’ account balances - investment contracts | 0 | 0 | ||
Cash collateral for loaned securities | 0 | 0 | ||
Short-term debt | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Reinsurance payables | 0 | 0 | ||
Payables to parent and affiliates | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Separate account liabilities - investment contracts | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Level 2 | Fair Value | ||||
Assets: | ||||
Commercial mortgage and other loans | 0 | 0 | ||
Policy loans | 0 | 0 | ||
Short-term investments | 0 | 0 | ||
Cash and cash equivalents | 1,003,000 | 675,000 | ||
Accrued investment income | 96,245 | 90,895 | ||
Reinsurance recoverables | 0 | 0 | ||
Receivables from parent and affiliates | 12,505 | 9,188 | ||
Other assets | 5,823 | 3,735 | ||
Total assets | 1,117,573 | 778,818 | ||
Liabilities: | ||||
Policyholders’ account balances - investment contracts | 0 | 0 | ||
Cash collateral for loaned securities | 0 | 384 | ||
Short-term debt | 140,329 | 139,843 | ||
Long-term debt | 675,041 | 791,670 | ||
Reinsurance payables | 0 | 0 | ||
Payables to parent and affiliates | 45,018 | 30,846 | ||
Other liabilities | 142,407 | 554,162 | ||
Separate account liabilities - investment contracts | 70 | 71 | ||
Total liabilities | 1,002,865 | 1,516,976 | ||
Level 3 | Fair Value | ||||
Assets: | ||||
Commercial mortgage and other loans | 1,280,080 | 1,339,707 | ||
Policy loans | 12,664 | 12,805 | ||
Short-term investments | 0 | 0 | ||
Cash and cash equivalents | 0 | 0 | ||
Accrued investment income | 0 | 0 | ||
Reinsurance recoverables | 54,113 | 55,236 | ||
Receivables from parent and affiliates | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets | 1,346,857 | 1,407,748 | ||
Liabilities: | ||||
Policyholders’ account balances - investment contracts | 752,629 | 560,548 | ||
Cash collateral for loaned securities | 0 | 0 | ||
Short-term debt | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Reinsurance payables | 54,113 | 55,236 | ||
Payables to parent and affiliates | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Separate account liabilities - investment contracts | 0 | 0 | ||
Total liabilities | $ 806,742 | $ 615,784 |
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ 20,820 | $ 156,256 |
Effective income tax rate, percent | (2.37%) | 19.73% |
Federal Statutory income tax rate, percent | 21.00% |
Reinsurance (Reinsurance amounts included in the Statements of Financial Position) (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Effects of Reinsurance [Line Items] | ||
Reinsurance recoverables | $ 592,751 | $ 572,102 |
Deferred policy acquisition costs | 4,496,083 | 4,447,505 |
Deferred sales inducements | 881,464 | 889,598 |
Value of business acquired | 33,012 | 33,222 |
Other assets | 101,856 | 85,310 |
Policyholders’ account balances | 5,465,749 | 5,353,596 |
Future policy benefits | 10,346,448 | 9,368,986 |
Reinsurance payables | 268,835 | 232,937 |
Other liabilities | 406,009 | 811,016 |
Impacts of Reinsurance | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance recoverables | 592,751 | 572,102 |
Deferred policy acquisition costs | 3,762,300 | 3,703,166 |
Deferred sales inducements | 481,564 | 476,608 |
Value of business acquired | (2,425) | (2,431) |
Other assets | 90,099 | 79,992 |
Policyholders’ account balances | 3,132,527 | 3,098,537 |
Future policy benefits | 6,439,923 | 5,680,939 |
Reinsurance payables | 268,835 | 232,937 |
Other liabilities | 299,065 | 290,330 |
Unaffiliated activity | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance recoverables | 200 | 0 |
Reinsurance payables | $ 100 | $ 100 |
Reinsurance (Reinsurance Recoverables by Counterparty) (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | $ 592,751 | $ 572,102 |
Prudential Insurance | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 342,343 | 335,349 |
Pruco Life | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 250,235 | 236,716 |
Unaffiliated | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | $ 173 | $ 37 |
Reinsurance (Reinsurance amounts included in the Statements of Operations and Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Premiums: | ||
Direct | $ 8,054 | $ 12,113 |
Assumed | 9,095 | 10,181 |
Ceded | 116 | (1,260) |
Net premiums | 17,265 | 21,034 |
Policy charges and fee income: | ||
Direct | 121,611 | 145,713 |
Assumed | 395,088 | 420,026 |
Ceded | (8,765) | (10,449) |
Net policy charges and fee income | 507,934 | 555,290 |
Asset administration fees and other income: | ||
Direct | 38,745 | 26,033 |
Assumed | 72,695 | 75,892 |
Ceded | (2,052) | (2,388) |
Net asset administration fees and other income | 109,388 | 99,537 |
Realized investment gains (losses), net: | ||
Direct | (834,208) | (748,325) |
Assumed | (515,709) | 1,349,104 |
Ceded | 7,698 | (42,089) |
Realized investment gains (losses), net | (1,342,219) | 558,690 |
Policyholders' benefits (including change in reserves): | ||
Direct | 7,103 | 18,164 |
Assumed | 2,357 | 17,892 |
Ceded | (1,510) | (1,030) |
Net policyholders' benefits (including change in reserves) | 7,950 | 35,026 |
Interest credited to policyholders’ account balances: | ||
Direct | 6,010 | 36,388 |
Assumed | 4,811 | 35,791 |
Ceded | (394) | (2,609) |
Net interest credited to policyholders’ account balances | 10,427 | 69,570 |
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization | 199,255 | 296,197 |
Unaffiliated activity | ||
Policy charges and fee income: | ||
Ceded | 0 | (200) |
Policyholders' benefits (including change in reserves): | ||
Ceded | $ (0) | $ (200) |
Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | $ (324,373) | ||||
Income tax benefit (expense) | (59,751) | $ 37,180 | |||
Cumulative effect of adoption | $ 42 | ||||
Ending balance | (99,596) | ||||
Foreign Currency Translation Adjustment | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (1,078) | (7) | |||
Change in OCI before reclassifications | 100 | (767) | |||
Amounts reclassified from AOCI | 0 | 0 | |||
Income tax benefit (expense) | (21) | 161 | |||
Ending balance | (999) | (615) | |||
Net Unrealized Investment Gains (Losses) | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (323,295) | (90,117) | |||
Change in OCI before reclassifications | 282,844 | (253,296) | |||
Amounts reclassified from AOCI | 1,584 | 77,017 | |||
Income tax benefit (expense) | (59,730) | 37,019 | |||
Ending balance | (98,597) | (266,092) | |||
Accumulated Other Comprehensive Income (Loss) | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (324,373) | (90,124) | |||
Change in OCI before reclassifications | 282,944 | (254,063) | |||
Amounts reclassified from AOCI | 1,584 | 77,017 | |||
Income tax benefit (expense) | (59,751) | 37,180 | |||
Cumulative effect of adoption | [1] | 0 | |||
Ending balance | (99,596) | (266,707) | |||
ASU 2016-01 | Foreign Currency Translation Adjustment | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Cumulative effect of adoption | 0 | ||||
ASU 2016-01 | Net Unrealized Investment Gains (Losses) | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Cumulative effect of adoption | (3) | ||||
ASU 2016-01 | Accumulated Other Comprehensive Income (Loss) | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Cumulative effect of adoption | (3) | ||||
ASU 2018-02 | Foreign Currency Translation Adjustment | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Cumulative effect of adoption | (2) | ||||
ASU 2018-02 | Net Unrealized Investment Gains (Losses) | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Cumulative effect of adoption | (36,712) | ||||
ASU 2018-02 | Accumulated Other Comprehensive Income (Loss) | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Cumulative effect of adoption | (36,714) | ||||
Cash flow hedges | Net Unrealized Investment Gains (Losses) | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (4,000) | (26,000) | |||
Ending balance | $ (2,000) | $ (39,000) | |||
|
Equity (Reclassification out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Net Unrealized Investment Gains (Losses) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from AOCI | $ 1,584 | $ 77,017 |
Total reclassifications for the period | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from AOCI | 1,584 | 77,017 |
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Investment Gains (Losses) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from AOCI | (1,584) | (77,017) |
Reclassification out of Accumulated Other Comprehensive Income | Total reclassifications for the period | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from AOCI | (1,584) | (77,017) |
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized investment gains (losses) on available-for-sale securities | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net unrealized investment gains (losses) | (731) | (73,799) |
Reclassification out of Accumulated Other Comprehensive Income | Currency/Interest Rate | Cash flow hedges | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net unrealized investment gains (losses) | $ (853) | $ (3,218) |
Equity (OTTI Net Unrealized Investment Gains (Losses) in AOCI) (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | $ (324,373) |
Ending balance | (99,596) |
Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (323,295) |
Ending balance | (98,597) |
OTTI | Net Unrealized Gains (Losses) on Investments | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (3,334) |
Net investment gains (losses) on investments arising during the period | 6,786 |
Reclassification adjustment for (gains) losses included in net income | (77) |
Reclassification adjustment for OTTI (gains) losses excluded from net income | (92) |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities | 0 |
Ending balance | 3,283 |
OTTI | Deferred Policy Acquisition Costs and Other Costs | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (1,119) |
Net investment gains (losses) on investments arising during the period | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 |
Reclassification adjustment for OTTI (gains) losses excluded from net income | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 1,074 |
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities | 0 |
Ending balance | (45) |
OTTI | Future Policy Benefits and Other Liabilities | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (68) |
Net investment gains (losses) on investments arising during the period | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 |
Reclassification adjustment for OTTI (gains) losses excluded from net income | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities | 115 |
Ending balance | 47 |
OTTI | Deferred Income Tax (Liability) Benefit | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | 27 |
Net investment gains (losses) on investments arising during the period | (1,425) |
Reclassification adjustment for (gains) losses included in net income | 16 |
Reclassification adjustment for OTTI (gains) losses excluded from net income | 19 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | (226) |
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities | (24) |
Ending balance | (1,613) |
OTTI | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (4,494) |
Net investment gains (losses) on investments arising during the period | 5,361 |
Reclassification adjustment for (gains) losses included in net income | (61) |
Reclassification adjustment for OTTI (gains) losses excluded from net income | (73) |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 848 |
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities | 91 |
Ending balance | $ 1,672 |
Equity (All Other Net Unrealized Investment Gains (Losses) in AOCI) (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | $ (324,373) |
Ending balance | (99,596) |
Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (323,295) |
Ending balance | (98,597) |
All Other | Net Unrealized Gains (Losses) on Investments | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (413,575) |
Net investment gains (losses) on investments arising during the period | 372,379 |
Reclassification adjustment for (gains) losses included in net income | 1,661 |
Reclassification adjustment for OTTI (gains) losses excluded from net income | 92 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities | 0 |
Ending balance | (39,443) |
All Other | Deferred Policy Acquisition Costs and Other Costs | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | 8,505 |
Net investment gains (losses) on investments arising during the period | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 |
Reclassification adjustment for OTTI (gains) losses excluded from net income | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | (84,466) |
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities | 0 |
Ending balance | (75,961) |
All Other | Future Policy Benefits and Other Liabilities | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | 1,113 |
Net investment gains (losses) on investments arising during the period | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 |
Reclassification adjustment for OTTI (gains) losses excluded from net income | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities | (13,044) |
Ending balance | (11,931) |
All Other | Deferred Income Tax (Liability) Benefit | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | 85,156 |
Net investment gains (losses) on investments arising during the period | (78,199) |
Reclassification adjustment for (gains) losses included in net income | (349) |
Reclassification adjustment for OTTI (gains) losses excluded from net income | (19) |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 17,738 |
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities | 2,739 |
Ending balance | 27,066 |
All Other | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (318,801) |
Net investment gains (losses) on investments arising during the period | 294,180 |
Reclassification adjustment for (gains) losses included in net income | 1,312 |
Reclassification adjustment for OTTI (gains) losses excluded from net income | 73 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | (66,728) |
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities | (10,305) |
Ending balance | $ (100,269) |
Related Party Transactions (Narrative) (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Related Party Transaction [Line Items] | ||||||
Investment expense | $ 3,953,000 | $ 3,794,000 | ||||
Commissions and fees | 507,934,000 | 555,290,000 | ||||
Other invested assets | 334,737,000 | $ 348,541,000 | $ 348,541,000 | |||
Net investment income | 125,069,000 | 96,711,000 | ||||
Fee income from revenue sharing agreement | 109,388,000 | 99,537,000 | ||||
Contributed capital | 0 | 0 | ||||
Prudential Insurance | ||||||
Related Party Transaction [Line Items] | ||||||
Stock option program plan expense | 0.0 | 0 | ||||
Deferred compensation program expense | 300,000 | 200,000 | ||||
Pension plan expense | 500,000 | 0 | ||||
Welfare plan expense | $ 500,000 | 500,000 | ||||
Defined contribution plan employer matching contribution percent | 4.00% | |||||
Defined contribution plan, cost recognized | $ 200,000 | 200,000 | ||||
Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Accrued interest receivable related to long-term notes receivables | 100,000 | 300,000 | 300,000 | |||
Revenue related to long-term notes receivable | 200,000 | 100,000 | ||||
Interest expense related to loans payable | 16,000,000 | 16,000,000 | ||||
Affiliated Entity | PAD | ||||||
Related Party Transaction [Line Items] | ||||||
Commissions and fees | 24,000,000 | 29,000,000 | ||||
Affiliated Entity | ASTISI and PGIM Investments | ||||||
Related Party Transaction [Line Items] | ||||||
Fee income from revenue sharing agreement | 24,000,000 | 27,000,000 | ||||
Affiliated Entity | PGIM | ||||||
Related Party Transaction [Line Items] | ||||||
Investment expense | 3,000,000 | 0 | ||||
Prudential Financial Joint Venture | ||||||
Related Party Transaction [Line Items] | ||||||
Other invested assets | 256,000,000 | 228,000,000 | $ 228,000,000 | |||
Net investment income | 5,000,000 | 400,000 | ||||
Prudential Financial | ||||||
Related Party Transaction [Line Items] | ||||||
Company's share of corporate expenses (benefits) | 4,000,000 | 4,000,000 | ||||
Line of credit facility, maximum borrowing capacity | 9,000,000,000 | |||||
PAI | ||||||
Related Party Transaction [Line Items] | ||||||
Return of capital | $ 245,000,000 | $ 225,000,000 | $ 250,000,000 | $ 250,000,000 | $ 300,000,000 |
Related Party Transactions (Affiliated Notes Receivable) (Details) - Affiliated Entity - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Related Party Transaction [Line Items] | ||
Total notes receivable - affiliated | $ 3,171 | $ 37,192 |
U.S. dollar floating rate notes | ||
Related Party Transaction [Line Items] | ||
Total notes receivable - affiliated | $ 0 | 34,008 |
U.S. dollar floating rate notes | Minimum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 4.02% | |
U.S. dollar floating rate notes | Maximum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 4.23% | |
U.S. dollar fixed rate notes | ||
Related Party Transaction [Line Items] | ||
Total notes receivable - affiliated | $ 3,171 | $ 3,184 |
U.S. dollar fixed rate notes | Minimum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 8.15% | |
U.S. dollar fixed rate notes | Maximum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 14.85% |
Related Party Transactions (Affiliated Asset Transfers) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Related Party Transaction [Line Items] | ||
Realized investment (gains) losses, net | $ (1,342,219) | $ 558,690 |
Affiliated Entity | Prudential Insurance February 2018 Purchase | ||
Related Party Transaction [Line Items] | ||
Fair Value | 136,963 | |
Book Value | 136,963 | |
APIC, Net of Tax Increase/(Decrease) | 0 | |
Realized investment (gains) losses, net | 0 | |
Affiliated Entity | Pruco Life April 2018 Sale | ||
Related Party Transaction [Line Items] | ||
Fair Value | 64,313 | |
Book Value | 64,514 | |
APIC, Net of Tax Increase/(Decrease) | 0 | |
Realized investment (gains) losses, net | (159) | |
Affiliated Entity | Prudential Insurance April 2018 Sale | ||
Related Party Transaction [Line Items] | ||
Fair Value | 57,747 | |
Book Value | 43,434 | |
APIC, Net of Tax Increase/(Decrease) | 0 | |
Realized investment (gains) losses, net | 11,308 | |
Affiliated Entity | Prudential Insurance May 2018 Sale | ||
Related Party Transaction [Line Items] | ||
Fair Value | 162,111 | |
Book Value | 159,237 | |
APIC, Net of Tax Increase/(Decrease) | 0 | |
Realized investment (gains) losses, net | 2,271 | |
Affiliated Entity | Passaic Fund June 2018 Transfer Out | ||
Related Party Transaction [Line Items] | ||
Fair Value | 15,281 | |
Book Value | 15,281 | |
APIC, Net of Tax Increase/(Decrease) | 0 | |
Realized investment (gains) losses, net | 0 | |
Affiliated Entity | Prudential Insurance July 2018 Sale | ||
Related Party Transaction [Line Items] | ||
Fair Value | 11,160 | |
Book Value | 9,277 | |
APIC, Net of Tax Increase/(Decrease) | 0 | |
Realized investment (gains) losses, net | 1,488 | |
Affiliated Entity | Prudential Insurance August 2018 Sale | ||
Related Party Transaction [Line Items] | ||
Fair Value | 13,414 | |
Book Value | 13,165 | |
APIC, Net of Tax Increase/(Decrease) | 0 | |
Realized investment (gains) losses, net | 196 | |
Affiliated Entity | Prudential Insurance December 2018 Purchase | ||
Related Party Transaction [Line Items] | ||
Fair Value | 33,256 | |
Book Value | 33,166 | |
APIC, Net of Tax Increase/(Decrease) | 0 | |
Realized investment (gains) losses, net | (71) | |
Affiliated Entity | Prudential Agricultural Investors December 2018 Transfer Out | ||
Related Party Transaction [Line Items] | ||
Fair Value | 7,324 | |
Book Value | 7,324 | |
APIC, Net of Tax Increase/(Decrease) | 0 | |
Realized investment (gains) losses, net | 0 | |
Affiliated Entity | Prudential Insurance January 2019 Sale | ||
Related Party Transaction [Line Items] | ||
Fair Value | 20,504 | |
Book Value | 20,781 | |
APIC, Net of Tax Increase/(Decrease) | 0 | |
Realized investment (gains) losses, net | (277) | |
Affiliated Entity | Prudential Insurance February 2019 Sale | ||
Related Party Transaction [Line Items] | ||
Fair Value | 97,953 | |
Book Value | 98,506 | |
APIC, Net of Tax Increase/(Decrease) | 0 | |
Realized investment (gains) losses, net | (554) | |
Affiliated Entity | Prudential Insurance March 2019 Purchase | ||
Related Party Transaction [Line Items] | ||
Fair Value | 141,476 | |
Book Value | 141,476 | |
APIC, Net of Tax Increase/(Decrease) | 0 | |
Realized investment (gains) losses, net | $ 7,776 |
Related Party Transactions (Debt Agreements) (Details) - Affiliated Entity - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 794,165 | $ 928,165 |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 46,835 | 46,835 |
Interest Rate | 2.80% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 18,734 | 18,734 |
Interest Rate | 2.80% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 37,468 | 37,468 |
Interest Rate | 3.64% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 103,039 | 103,039 |
Interest Rate | 3.64% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 93,671 | 93,671 |
Interest Rate | 3.64% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 93,671 | 93,671 |
Interest Rate | 3.47% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 93,671 | 93,671 |
Interest Rate | 4.39% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 28,102 | 28,102 |
Interest Rate | 4.39% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 93,671 | 93,671 |
Interest Rate | 3.95% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 37,468 | 37,468 |
Interest Rate | 3.95% | |
Prudential Insurance Loan Issued 4/20/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 46,835 | 46,835 |
Interest Rate | 3.95% | |
Prudential Insurance Loan Issued 6/28/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 20,000 | 20,000 |
Interest Rate | 2.08% | |
Prudential Insurance Loan Issued 6/28/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 30,000 | 30,000 |
Interest Rate | 2.08% | |
Prudential Insurance Loan Issued 6/28/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 25,000 | 25,000 |
Interest Rate | 2.08% | |
Prudential Insurance Loan Issued 6/28/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 26,000 | 26,000 |
Interest Rate | 2.59% | |
Prudential Insurance Loan Issued 6/28/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 50,000 |
Interest Rate | 3.49% | |
Prudential Insurance Loan Issued 6/28/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 25,000 |
Interest Rate | 3.49% | |
Prudential Insurance Loan Issued 6/28/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 25,000 |
Interest Rate | 3.49% | |
Prudential Retirement Insurance & Annuity Issued 6/28/2016 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | $ 34,000 |
Interest Rate | 3.09% |
Commitments and Contingent Liabilities (Narrative) (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Commitments and Contingent Liabilities [Line Items] | ||
Litigation and regulatory matters loss contingency, range of possible loss, maximum (less than) | $ 150 | |
Commitments | Commercial Mortgage Loans | ||
Commitments and Contingent Liabilities [Line Items] | ||
Total outstanding mortgage loan commitments | 43 | $ 4 |
Commitments | Investments | ||
Commitments and Contingent Liabilities [Line Items] | ||
Commitments to Purchase Investment (excluding Commercial Mortgage Loans) | $ 210 | $ 271 |
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