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 |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered |
Not Applicable | Not Applicable | Not Applicable |
Large Accelerated Filer | ☐ | Accelerated Filer | ☐ |
☒ | Smaller Reporting Company | ||
Emerging Growth Company |
Page | |||
Item 1. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Item 1. | |||
Item 1A. | |||
Item 6. | |||
June 30, 2020 | December 31, 2019 | ||||||
ASSETS | |||||||
Fixed maturities, available-for-sale, at fair value (amortized cost, 2020: $14,517,513; 2019: $12,465,746; 2020-net of $982 allowance for credit losses) | $ | $ | |||||
Fixed maturities, trading, at fair value (amortized cost, 2020: $525,032; 2019: $349,428) | |||||||
Equity securities, at fair value (cost, 2020: $66,470; 2019: $63,647) | |||||||
Commercial mortgage and other loans (net of $6,879 and $2,663 allowance for credit losses at June 30, 2020 and December 31, 2019, respectively)(1) | |||||||
Policy loans | |||||||
Short-term investments | |||||||
Other invested assets (includes $13,524 and $10,492 of assets measured at fair value at June 30, 2020 and December 31, 2019, respectively) | |||||||
Total investments | |||||||
Cash and cash equivalents | |||||||
Deferred policy acquisition costs(1) | |||||||
Accrued investment income | |||||||
Reinsurance recoverables | |||||||
Income taxes(1) | |||||||
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 | |||||||
Short-term debt | |||||||
Long-term debt | |||||||
Reinsurance payables | |||||||
Other liabilities(1) | |||||||
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 deficit) | ( | ) | ( | ) | |||
Accumulated other comprehensive income (loss) | |||||||
Total equity | |||||||
TOTAL LIABILITIES AND EQUITY | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
REVENUES | |||||||||||||||
Premiums | $ | $ | $ | $ | |||||||||||
Policy charges and fee income | |||||||||||||||
Net investment income | |||||||||||||||
Asset administration fees and other income | |||||||||||||||
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 taxes | |||||||||||||||
Comprehensive income (loss) | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Equity | |||||||||||||||
Balance, December 31, 2019 | $ | $ | $ | ( | ) | $ | $ | ||||||||||||
Cumulative effect of adoption of accounting changes(1) | ( | ) | ( | ) | |||||||||||||||
Return of capital | ( | ) | ( | ) | |||||||||||||||
Comprehensive income (loss): | |||||||||||||||||||
Net income (loss) | ( | ) | ( | ) | |||||||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||||||||
Total comprehensive income (loss) | |||||||||||||||||||
Balance, March 31, 2020 | $ | $ | $ | ( | ) | $ | $ | ||||||||||||
Return of capital | ( | ) | ( | ) | |||||||||||||||
Comprehensive income (loss): | |||||||||||||||||||
Net income (loss) | ( | ) | ( | ) | |||||||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||||||||
Total comprehensive income (loss) | ( | ) | |||||||||||||||||
Balance, June 30, 2020 | $ | $ | $ | ( | ) | $ | $ |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Equity | |||||||||||||||
Balance, December 31, 2018 | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Cumulative effect of adoption of accounting changes(2) | ( | ) | ( | ) | |||||||||||||||
Return of capital | ( | ) | ( | ) | |||||||||||||||
Comprehensive income (loss): | |||||||||||||||||||
Net income (loss) | ( | ) | ( | ) | |||||||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||||||||
Total comprehensive income (loss) | ( | ) | |||||||||||||||||
Balance, March 31, 2019 | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Return of capital | ( | ) | ( | ) | |||||||||||||||
Comprehensive income (loss): | |||||||||||||||||||
Net income (loss) | ( | ) | ( | ) | |||||||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||||||||
Total comprehensive income (loss) | |||||||||||||||||||
Balance, June 30, 2019 | $ | $ | $ | ( | ) | $ | $ |
2020 | 2019 | ||||||
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 | ( | ) | |||||
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: | |||||||
Policyholders' account deposits | |||||||
Ceded policyholders' account deposits | ( | ) | ( | ) | |||
Policyholders' account withdrawals | ( | ) | ( | ) | |||
Ceded policyholders' account withdrawals | |||||||
Cash collateral for loaned securities | ( | ) | |||||
Repayments of debt (maturities longer than 90 days) | ( | ) | |||||
Net increase/(decrease) in short-term borrowing | ( | ) | |||||
Drafts outstanding | ( | ) | |||||
Distribution to Parent | ( | ) | ( | ) | |||
Other, net | ( | ) | |||||
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 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting | This ASU provides optional relief for certain contracts impacted by reference rate reform. The standard permits an entity to consider contract modification due to reference rate reform to be an event that does not require contract remeasurement at the modification date or reassessment of a previous accounting determination. The ASU also temporarily (until December 31, 2022) allows hedge relationships to continue without de-designation upon changes due to reference rate reform. | March 12, 2020 to December 31, 2022 using the prospective method. | This ASU did not have a significant impact on the Company’s Financial Statements and Notes to the Financial Statements. The Company made the election under ASU 2020-04 for all applicable contracts as they converted from the current reference rate to the new reference rate. |
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 Accumulated Other Comprehensive Income (loss) ("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 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 liability for 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, and record market risk benefit assets and liabilities separately on the Statements of Financial Position. Changes in fair value of market risk benefits are recorded in net income, except for the portion of the change that is attributable to changes in an entity’s non-performance risk ("NPR"), which is recognized in OCI. | An entity shall adopt the guidance for market risk benefits using the retrospective transition method, which includes a cumulative-effect adjustment on the balance sheet as of the earliest period presented. An entity shall maximize the use of relevant observable information and minimize the use of unobservable information in determining the balance of the market risk benefits upon adoption. | 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. |
June 30, 2020 | |||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses | Fair Value | |||||||||||||||
(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 and education loans. |
(2) | Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. |
December 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 and education loans. |
(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 $ |
June 30, 2020 | |||||||||||||||||||||||
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, 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 | $ | $ | $ | $ | $ | $ |
June 30, 2020 | |||||||
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 June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(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) | N/A | N/A | ( | ) | |||||||||||
Write-downs recognized in earnings(3) | N/A | ( | ) | N/A | |||||||||||
(Addition to) release of allowance for credit losses(4) | ( | ) | N/A | ( | ) | N/A |
(1) | Includes $ |
(2) | For the three and six months ended June 30, 2019, amounts exclude 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 impairment. |
(3) | For the three and six months ended June 30, 2020, amounts represent write-downs on securities approaching maturity related to foreign exchange movements and securities actively marketed for sale. |
(4) | Effective January 1, 2020, credit losses on available-for-sale fixed maturity securities are recorded within the “allowance for credit losses.” |
June 30, 2020 | |||||||||||||||||||||||||||
U.S. Treasury Securities and Obligations of U.S. States | Foreign Government Bonds | U.S. and Foreign Corporate Securities | Asset-Backed Securities | Commercial Mortgage-Backed Securities | Residential Mortgage-Backed Securities | Total | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Fixed maturities, available-for-sale: | |||||||||||||||||||||||||||
Balance, beginning of year | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Additions to allowance for credit losses not previously recorded | |||||||||||||||||||||||||||
Reductions for securities sold during the period | ( | ) | ( | ) | |||||||||||||||||||||||
Addition (reductions) on securities with previous allowance | ( | ) | ( | ) | |||||||||||||||||||||||
Balance, end of period | $ | $ | $ | $ | $ | $ | $ |
June 30, 2020 | December 31, 2019 | ||||||||||||
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 net commercial mortgage and agricultural property loans by property type | |||||||||||||
Other loans: | |||||||||||||
Other collateralized loans | |||||||||||||
Allowance for credit losses | |||||||||||||
Total net other loans | |||||||||||||
Total commercial mortgage and other loans | $ | $ |
Commercial Mortgage Loans | Agricultural Property Loans | Other Collateralized Loans | Total | ||||||||||||
(in thousands) | |||||||||||||||
Balance at December 31, 2018 | $ | $ | $ | $ | |||||||||||
Addition to (release of) allowance for credit losses | ( | ) | ( | ) | |||||||||||
Balance at December 31, 2019 | |||||||||||||||
Cumulative effect of adoption of ASU 2016-13 | |||||||||||||||
Addition to (release of) allowance for expected losses | |||||||||||||||
Balance at June 30, 2020 | $ | $ | $ | $ |
June 30, 2020 | |||||||||||||||||||||||||||||||
Amortized Cost by Origination Year | |||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | Prior | Revolving Loans | Total | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
Loan-to-Value Ratio: | |||||||||||||||||||||||||||||||
Commercial mortgage loans | |||||||||||||||||||||||||||||||
0%-59.99% | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
60%-69.99% | |||||||||||||||||||||||||||||||
70%-79.99% | |||||||||||||||||||||||||||||||
80% or greater | |||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||
Agricultural property loans | |||||||||||||||||||||||||||||||
0%-59.99% | |||||||||||||||||||||||||||||||
60%-69.99% | |||||||||||||||||||||||||||||||
70%-79.99% | |||||||||||||||||||||||||||||||
80% or greater | |||||||||||||||||||||||||||||||
Subtotal | |||||||||||||||||||||||||||||||
Total commercial mortgage and agricultural property loans | |||||||||||||||||||||||||||||||
0%-59.99% | |||||||||||||||||||||||||||||||
60%-69.99% | |||||||||||||||||||||||||||||||
70%-79.99% | |||||||||||||||||||||||||||||||
80% or greater | |||||||||||||||||||||||||||||||
Total commercial mortgage and agricultural property loans | $ | $ | $ | $ | $ | $ | $ | $ |
June 30, 2020 | December 31, 2019 | ||||||||||||||
Commercial Mortgage Loans | Agricultural Property Loans | Commercial Mortgage Loans | Agricultural Property Loans | ||||||||||||
(in thousands) | |||||||||||||||
Debt Service Coverage Ratio: | |||||||||||||||
Greater or equal to 1.2x | $ | $ | $ | $ | |||||||||||
1.0 - 1.2x | |||||||||||||||
Less than 1.0x | |||||||||||||||
Total | $ | $ | $ | $ |
June 30, 2020 | |||||||||||||||||||||||
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 | |||||||||||||||||||||||
Other collateralized loans | |||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
(1) | As of June 30, 2020, 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, 2019. |
December 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 December 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, 2019. |
June 30, 2020 | December 31, 2019 | ||||||
(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 | $ | $ |
June 30, 2020 | |||
(in thousands) | |||
Fixed maturities | $ | ||
Equity securities | |||
Commercial mortgage and other loans | |||
Policy loans | |||
Short-term investments and cash equivalents | |||
Other(1) | |||
Total accrued investment income | $ |
(1) | Primarily includes affiliated accrued income. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(in thousands) | |||||||||||||||
Fixed maturities, available-for-sale | $ | $ | $ | $ | |||||||||||
Fixed maturities, trading | |||||||||||||||
Equity securities | |||||||||||||||
Commercial mortgage and other loans | |||||||||||||||
Policy loans | |||||||||||||||
Other invested assets | |||||||||||||||
Short-term investments and cash equivalents | |||||||||||||||
Gross investment income | |||||||||||||||
Less: investment expenses | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net investment income | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(in thousands) | |||||||||||||||
Fixed maturities(1) | $ | $ | ( | ) | $ | $ | ( | ) | |||||||
Commercial mortgage and other loans | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Derivatives | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Other invested assets | |||||||||||||||
Short-term investments and cash equivalents | |||||||||||||||
Realized investment gains (losses), net | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
(1) | Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading. |
June 30, 2020 | December 31, 2019 | ||||||
(in thousands) | |||||||
Fixed maturity securities, available-for-sale — with OTTI(1) | $ N/A | $ | |||||
Fixed maturity securities, available-for-sale — all other(1) | N/A | ||||||
Fixed maturity securities, available-for-sale with an allowance | ( | ) | N/A | ||||
Fixed maturity securities, available-for-sale without an allowance | N/A | ||||||
Derivatives designated as cash flow hedges(2) | ( | ) | |||||
Affiliated notes | |||||||
Net unrealized gains (losses) on investments | $ | $ |
(1) | Effective January 1, 2020, per ASU 2016-13, fixed maturity securities, available-for-sale are no longer required to be disclosed “with OTTI” and “all other”. |
(2) | For more information on cash flow hedges, see Note 4. |
• | Interest rate contracts: futures, swaps, forwards, options, caps and floors |
• | 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 |
June 30, 2020 | December 31, 2019 | |||||||||||||||||||||||
Primary Underlying Risk/Instrument Type | Gross Notional | Fair Value | Gross Notional | Fair Value | ||||||||||||||||||||
Assets | Liabilities | 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. The fair value of these embedded derivatives was a net liability of $ |
(2) | Recorded in “Other invested assets”, “Other liabilities”, and "Payables to parent and affiliates" on the Unaudited Interim Statements of Financial Position. |
June 30, 2020 | |||||||||||||||||||
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, 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 | $ | $ | ( | ) | $ | $ | ( | ) | $ |
(1) |
Three Months Ended June 30, 2020 | |||||||||||||||
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 | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) |
Six Months Ended June 30, 2020 | |||||||||||||||
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 June 30, 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 | $ | ( | ) | $ | $ | $ |
Six Months Ended June 30, 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 | $ | ( | ) | $ | $ | $ |
(1) | Net change in AOCI. |
(in thousands) | |||
Balance, December 31, 2019 | $ | ( | ) |
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, June 30, 2020 | $ |
As of June 30, 2020 | |||||||||||||||||||
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) | ( | ) | |||||||||||||||||
Other assets | 0 | ||||||||||||||||||
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, 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) | ( | ) | |||||||||||||||||
Other assets | 0 | ||||||||||||||||||
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. At June 30, 2020 and December 31, 2019, 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 June 30, 2020, the net embedded derivative liability position of $ |
As of June 30, 2020 | |||||||||||||||
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 | ||||||||
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(6) | % | % | Decrease | |||||||||
Spread over LIBOR(7) | % | % | Decrease | ||||||||||||
Utilization rate(8) | % | % | Increase | ||||||||||||
Withdrawal rate | See table footnote (9) below. | ||||||||||||||
Mortality rate(10) | % | % | Decrease | ||||||||||||
Equity volatility curve | % | % | Increase | ||||||||||||
Policyholders' account balances(5) | $ | Discounted cash flow | Lapse rate(6) | % | % | Decrease | |||||||||
Spread over LIBOR(7) | % | % | Decrease | ||||||||||||
Equity volatility curve | % | % | Increase |
As of December 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 | EBITDA multiples(3) | X | X | X | 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(6) | % | % | Decrease | |||||||||
Spread over LIBOR(7) | % | % | Decrease | ||||||||||||
Utilization rate(8) | % | % | Increase | ||||||||||||
Withdrawal rate | See table footnote (9) below. | ||||||||||||||
Mortality rate(10) | % | % | Decrease | ||||||||||||
Equity volatility curve | % | % | Increase | ||||||||||||
Policyholders' account balances(5) | $ | Discounted cash flow | Lapse rate(6) | % | % | Decrease | |||||||||
Spread over LIBOR(7) | % | % | 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 and fixed maturities trading. |
(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 a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. |
(5) | Policyholders’ account balances primarily represent general account liabilities for the index-linked interest credited on certain of the Company’s annuity products that 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 a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. |
(6) | Lapse rates for contracts with living benefit guarantees 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 for contracts with index-linked crediting guarantees may be adjusted at the contract level based on the applicability of any surrender charges, product type, and market related factors such as interest rates. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. For any given contract, lapse rates vary throughout the period over which cash flows are projected for the purposes of valuing these embedded derivatives. |
(7) | 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 the Company's estimates of rates that a market participant would use to value the living benefits in both the accumulation and payout phases and index-linked interest crediting guarantees. 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 funding agreements, living benefit guarantees, and index-linked interest crediting guarantees are insurance liabilities and are therefore senior to debt. |
(8) | 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. |
(9) | 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 June 30, 2020 and December 31, 2019, the minimum withdrawal rate assumption is |
(10) | The range reflects the mortality rates for the vast majority of business with living benefits, with policyholders ranging from |
Three Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||
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: | |||||||||||||||||||||||||||||||||
Fixed maturities, trading | |||||||||||||||||||||||||||||||||
Equity securities | |||||||||||||||||||||||||||||||||
Other invested assets | |||||||||||||||||||||||||||||||||
Other assets | ( | ) | |||||||||||||||||||||||||||||||
Reinsurance recoverables | ( | ) | ( | ) | |||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||
Future policy benefits | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||
Policyholders' account balances(6) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) |
Three Months Ended June 30, 2020 | ||||||||||||||||||||||
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 (loss) | Net investment income | Realized investment gains (losses), net | Asset administration fees and other income | Included in other comprehensive income (loss)(7) | ||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Fixed maturities, available-for-sale | $ | ( | ) | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||
Other assets: | ||||||||||||||||||||||
Fixed maturities, trading | ( | ) | ||||||||||||||||||||
Equity securities | ||||||||||||||||||||||
Other invested assets | ||||||||||||||||||||||
Other assets | ||||||||||||||||||||||
Reinsurance recoverables | ( | ) | ( | ) | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||
Future policy benefits | ||||||||||||||||||||||
Policyholders' account balances | ( | ) | ( | ) |
Six Months Ended June 30, 2020 | |||||||||||||||||||||||||||||||||
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: | |||||||||||||||||||||||||||||||||
Fixed maturities, trading | ( | ) | ( | ) | |||||||||||||||||||||||||||||
Equity securities | ( | ) | ( | ) | |||||||||||||||||||||||||||||
Other invested assets | |||||||||||||||||||||||||||||||||
Other assets | ( | ) | |||||||||||||||||||||||||||||||
Reinsurance recoverables | |||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||
Future policy benefits | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Policyholders' account balances(6) | ( | ) | ( | ) | ( | ) |
Six Months Ended June 30, 2020 | ||||||||||||||||||||||
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 (loss) | Net investment income | Realized investment gains (losses), net | Asset administration fees and other income | Included in other comprehensive income (loss)(7) | ||||||||||||||||
(in thousands) | ||||||||||||||||||||||
Fixed maturities, available-for-sale | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | |||||
Other assets: | ||||||||||||||||||||||
Fixed maturities, trading | ( | ) | ( | ) | ( | ) | ||||||||||||||||
Equity securities | ( | ) | ( | ) | ||||||||||||||||||
Other invested assets | ||||||||||||||||||||||
Other assets | ||||||||||||||||||||||
Reinsurance recoverables | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||
Future policy benefits | ( | ) | ( | ) | ||||||||||||||||||
Policyholders' account balances |
Three Months Ended June 30, 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: | |||||||||||||||||||||||||||||||||
Fixed maturities, trading | ( | ) | ( | ) | |||||||||||||||||||||||||||||
Equity securities | ( | ) | |||||||||||||||||||||||||||||||
Other invested assets | |||||||||||||||||||||||||||||||||
Other assets | |||||||||||||||||||||||||||||||||
Reinsurance recoverables | ( | ) | |||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||
Future policy benefits | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Policyholders' account balances(6) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) |
Three Months Ended June 30, 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 (loss) | Net investment income | Realized investment gains (losses), net | Asset administration fees and other income | ||||||||||||||
(in thousands) | |||||||||||||||||||
Fixed maturities, available-for-sale | $ | ( | ) | $ | $ | $ | $ | $ | |||||||||||
Other assets: | |||||||||||||||||||
Fixed maturities, trading | ( | ) | ( | ) | ( | ) | |||||||||||||
Equity securities | |||||||||||||||||||
Other invested assets | |||||||||||||||||||
Other assets | |||||||||||||||||||
Reinsurance recoverables | |||||||||||||||||||
Liabilities: | |||||||||||||||||||
Future policy benefits | ( | ) | ( | ) | |||||||||||||||
Policyholders' account balances | ( | ) | ( | ) |
Six Months Ended June 30, 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: | |||||||||||||||||||||||||||||||||
Fixed maturities, trading | ( | ) | ( | ) | |||||||||||||||||||||||||||||
Equity securities | ( | ) | |||||||||||||||||||||||||||||||
Other invested assets | |||||||||||||||||||||||||||||||||
Other assets | |||||||||||||||||||||||||||||||||
Reinsurance recoverables | |||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||
Future policy benefits | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Policyholders' account balances(6) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) |
Six Months Ended June 30, 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 (loss) | Net investment income | Realized investment gains (losses), net | Asset administration fees and other income | ||||||||||||||
(in thousands) | |||||||||||||||||||
Fixed maturities, available-for-sale | $ | ( | ) | $ | $ | $ | $ | ( | ) | $ | |||||||||
Other assets: | |||||||||||||||||||
Fixed maturities, trading | ( | ) | ( | ) | ( | ) | |||||||||||||
Equity securities | |||||||||||||||||||
Other invested assets | |||||||||||||||||||
Other assets | |||||||||||||||||||
Reinsurance recoverables | |||||||||||||||||||
Liabilities: | |||||||||||||||||||
Future policy benefits | ( | ) | ( | ) | |||||||||||||||
Policyholders' account balances | ( | ) | ( | ) |
(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 includes 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) | Issuances and settlements for Policyholders' account balances are presented net in the rollforward. |
(7) | Effective January 1, 2020, the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period were added prospectively due to adoption of ASU 2018-13. Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. |
June 30, 2020 | |||||||||||||||||||
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, 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 | $ | $ | $ | $ | $ |
(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 out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments. |
June 30, 2020 | December 31, 2019 | ||||||
(in thousands) | |||||||
Reinsurance recoverables(1) | $ | $ | |||||
Deferred policy acquisition costs | |||||||
Deferred sales inducements | |||||||
Value of business acquired | ( | ) | ( | ) | |||
Other assets(2) | |||||||
Policyholders’ account balances | |||||||
Future policy benefits | |||||||
Reinsurance payables(3) | |||||||
Other liabilities(4) |
(1) | Includes $ |
(2) | Includes $( |
(3) | Includes $ |
(4) | Includes $ |
June 30, 2020 | December 31, 2019 | ||||||
(in thousands) | |||||||
Prudential Insurance | $ | $ | |||||
Pruco Life | |||||||
Unaffiliated | |||||||
Total reinsurance recoverables | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(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) | 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, 2019 | $ | ( | ) | $ | $ | ||||||
Change in OCI before reclassifications | ( | ) | |||||||||
Amounts reclassified from AOCI | ( | ) | ( | ) | |||||||
Income tax benefit (expense) | ( | ) | ( | ) | |||||||
Balance, June 30, 2020 | $ | ( | ) | $ | $ |
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, June 30, 2019 | $ | ( | ) | $ | $ |
(1) | Includes cash flow hedges of $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(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 DAC and other costs and future policy benefits and other liabilities. |
Net Unrealized Gains (Losses) on Investments | DAC 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, 2019(1) | $ | $ | $ | $ | $ | ||||||||||||||
Net investment gains (losses) on investments arising during the period | ( | ) | |||||||||||||||||
Reclassification adjustment for (gains) losses included in net income | |||||||||||||||||||
Increase (decrease) due to non-credit related losses recognized in AOCI during the period | ( | ) | ( | ) | |||||||||||||||
Impact of net unrealized investment (gains) losses on DAC and other costs | ( | ) | |||||||||||||||||
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities | ( | ) | |||||||||||||||||
Balance, June 30, 2020 | $ | ( | ) | $ | $ | $ | ( | ) | $ |
(1) | Allowance for credit losses on available-for-sale fixed maturity securities effective January 1, 2020. |
(2) | "Other costs" primarily includes reinsurance recoverables, DSI and VOBA. |
(3) | "Other liabilities" primarily includes reinsurance payables and deferred reinsurance gains. |
Net Unrealized Gains (Losses) on Investments(1) | DAC 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, 2019(2) | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ||||||||
Net investment gains (losses) on investments arising during the period | ( | ) | |||||||||||||||||
Reclassification adjustment for (gains) losses included in net income | ( | ) | ( | ) | |||||||||||||||
Reclassification due to allowance for credit losses recorded during the period | ( | ) | |||||||||||||||||
Impact of net unrealized investment (gains) losses on DAC and other costs | ( | ) | ( | ) | |||||||||||||||
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities | ( | ) | ( | ) | |||||||||||||||
Balance, June 30, 2020 | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ |
(1) | Includes cash flow hedges. See Note 4 for information on cash flow hedges. |
(2) | Includes net unrealized gains (losses) for which an OTTI loss had been previously recognized. |
(3) | "Other costs" primarily includes reinsurance recoverables, DSI and VOBA. |
(4) | "Other liabilities" primarily includes reinsurance payables and deferred reinsurance gains. |
Maturity Dates | Interest Rates | June 30, 2020 | December 31, 2019 | |||||||||||||
(in thousands) | ||||||||||||||||
U.S. dollar fixed rate notes | 2026 - 2027 | - | % | $ | $ | |||||||||||
Total notes receivable - affiliated(1) | $ | $ |
(1) | All notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances. |
Maturity Date | Interest Rate | June 30, 2020 | |||||||||
(in thousands) | |||||||||||
Affiliated Commercial Mortgage Loan | 2025 | $ |
Affiliate | Date | Transaction | Security Type | Fair Value | Book Value | APIC, Net of Tax Increase/(Decrease) | Realized Investment Gain (Loss) | |||||||||||||||
(in thousands) | ||||||||||||||||||||||
Prudential Insurance | January 2019 | Sale | Fixed Maturities | $ | $ | $ | $ | ( | ) | |||||||||||||
Prudential Insurance | February 2019 | Sale | Commercial Mortgages | $ | $ | $ | $ | ( | ) | |||||||||||||
Prudential Insurance | March 2019 | Purchase | Fixed Maturities | $ | $ | $ | $ | |||||||||||||||
Prudential Insurance | April 2019 | Purchase | Equity Securities | $ | $ | $ | $ | |||||||||||||||
Prudential Retirement Insurance and Annuity Company | April 2019 | Purchase | Equity Securities | $ | $ | $ | $ | |||||||||||||||
Pruco Life Insurance Company | April 2019 | Purchase | Equity Securities | $ | $ | $ | $ | |||||||||||||||
Prudential Insurance | June 2019 | Transfer out | Fixed Maturities | $ | $ | $ | $ | |||||||||||||||
Prudential Insurance | June 2019 | Transfer In | Fixed Maturities | $ | $ | $ | $ | |||||||||||||||
Prudential Insurance | August 2019 | Sale | Fixed Maturities | $ | $ | $ | $ | |||||||||||||||
Prudential Insurance | August 2019 | Sale | Commercial Mortgages | $ | $ | $ | $ | |||||||||||||||
Prudential Insurance | November 2019 | Sale | Other Invested Assets | $ | $ | $ | $ | ( | ) | |||||||||||||
Prudential Insurance | November 2019 | Sale | Fixed Maturities | $ | $ | $ | $ | ( | ) | |||||||||||||
Prudential Insurance | December 2019 | Purchase | Fixed Maturities | $ | $ | $ | $ | |||||||||||||||
Prudential Insurance | December 2019 | Purchase | Fixed Maturities | $ | $ | $ | $ | |||||||||||||||
Prudential Insurance | December 2019 | Sale | Fixed Maturities | $ | $ | $ | $ | |||||||||||||||
Prudential International Insurance Service Company | March 2020 | Purchase | Fixed Maturities | $ | $ | $ | $ | |||||||||||||||
Prudential Insurance | March 2020 | Purchase | Fixed Maturities | $ | $ | $ | $ | |||||||||||||||
Prudential Insurance | April 2020 | Purchase | Fixed Maturities | $ | $ | $ | $ | |||||||||||||||
Prudential Insurance | June 2020 | Sale | Fixed Maturities | $ | $ | $ | $ | |||||||||||||||
Gibraltar Life Insurance Company | June 2020 | Purchase | Fixed Maturities | $ | $ | $ | $ |
Affiliate | Date Issued | Amount of Notes - June 30, 2020 | Amount of Notes - December 31, 2019 | Interest Rate | Date of Maturity | ||||||||||||||
(in thousands) | |||||||||||||||||||
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 | % | 6/28/2021 | ||||||||||||||||
Prudential Funding LLC | 12/16/2019 | % | 1/16/2020 | ||||||||||||||||
Prudential Funding LLC | 12/17/2019 | % | 1/15/2020 | ||||||||||||||||
Prudential Funding LLC | 12/17/2019 | % | 1/16/2020 | ||||||||||||||||
Prudential Funding LLC | 12/18/2019 | % | 1/16/2020 | ||||||||||||||||
Total Loans Payable to Affiliates | $ | $ |
• | Outlook. In our Individual Annuities business, we expect account values and fee income will be impacted by market volatility. We have taken pricing and product actions to ensure we realize appropriate returns for the current economic environment, and to diversify our product mix to further limit our sensitivity to interest rates, while maintaining a solid value proposition for our customers. In addition, while our distribution platforms include a suite of digital, hybrid advisory, and in-person advisory options, mandated social distancing has limited in-person engagement between customers and advisors. Collectively, we expect the product actions we have taken and the constrained distribution environment to adversely impact our sales prospects in the near-term. In addition, we expect account values and fee income will be impacted by market volatility. |
• | Results of Operations. For the three months and six months ended June 30, 2020 we reported a net loss of $1,756 million and $2,577 million, respectively, as unfavorable financial market conditions had a substantial negative effect on reported results. See “Results of Operations” for a discussion of results for second quarter and first half of the year. |
• | Liquidity. The impact of COVID-19 and related market dislocations could strain our existing liquidity and cause us to increase the use of our alternative sources of liquidity, which could result in increased financial leverage on our balance sheet and negatively impact our credit and financial strength ratings or ratings outlooks. See “Liquidity and Capital Resources-Liquidity” for a discussion of our liquidity. |
• | Capital Resources. Market conditions could negatively impact our statutory capital and constrain our overall capital flexibility. Adverse market conditions could require us to take additional management actions to maintain capital consistent with our ratings objectives, which may include redeploying financial resources from internal sources, or using available affiliate sources of capital or seeking additional sources. See “Liquidity and Capital Resources-Capital” for a discussion of our capital resources. |
• | Risk Factors. The COVID-19 pandemic has adversely impacted our results of operations, financial position, investment portfolio, new business opportunities and operations, and these impacts are expected to continue. For additional information on the risks to our business posed by the COVID-19 pandemic, see “Risk Factors.” |
• | Business Continuity. One of the main impacts of the COVID-19 pandemic has been executing our business continuity protocols to ensure our employees are safe and able to serve our customers. This included effectively transitioning the vast majority of our employees to remote work arrangements. |
• | CARES Act and Other Regulatory Developments. In March 2020 Congress enacted the Coronavirus Aid, Relief, and Economic Security Act ("the CARES Act"), which provides $2 trillion in economic stimulus to taxpayers, small businesses, and corporations through various grant and loan programs, tax provisions and regulatory relief. One provision of the CARES Act amends the Tax Cuts and Jobs Act (“TCJA”) and allows companies with net operating losses (“NOLs”) originating in 2018, 2019 or 2020 to carry back those losses for five years. See Note 7 to the Unaudited Interim Financial Statements for more information. We are continuing to analyze the CARES Act and its potential impact on the Company, and implementing operational changes necessary to accommodate the CARES Act. |
• | DAC, DSI and VOBA; |
• | Policyholder liabilities; |
• | Valuation of investments, including derivatives, measurement of allowance for credit losses, and 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. |
• | Total investments and Cash and cash equivalents increased $11 billion primarily driven by derivative collateral postings, cash flows from insurance operations and unrealized gains on investments due to declining interest rates, partially offset by a return of capital; |
• | Separate account assets decreased $3 billion primarily driven by net unfavorable market conditions and net outflows. |
• | Future policy benefits increased $12 billion primarily driven by an increase in reserves related to our variable annuity living benefit guarantees due to declining interest rates and the widening of credit spreads, partially offset by a favorable NPR adjustment; |
• | Separate account liabilities decreased $3 billion, corresponding to the decrease in Separate account assets as discussed above. |
• | Unfavorable NPR adjustment and unfavorable hedge breakage as a result of the tightening of credit spreads, partially offset by tightening of credit spreads used in measuring our living benefit guarantees liability. Refer to our changes in the U.S. GAAP embedded derivative liability and hedge positions under the Asset Liability Management ("ALM") strategy table below for further details; |
• | Favorable comparative impact of Amortization of deferred policy acquisition costs and Interest credited to policyholders' account balances driven by changes to expected gross profits reflecting change in market conditions. |
• | Unfavorable comparative impact of our duration management swaps due to more significant declines in interest rates in the current period compared to prior period; |
• | Declining interest rates, widening of credit spreads and unfavorable hedge breakage, partially offset by favorable NPR adjustment used in measuring our living benefit guarantees liability; and |
• | Higher Amortization of deferred policy acquisition costs and higher Policyholders' benefits as a result of similar drivers, as discussed above. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | ||||||||||||
(in millions)(1) | |||||||||||||||
U.S. GAAP embedded derivative and hedging positions(2) | |||||||||||||||
Net hedging impact(3) | $ | (878 | ) | $ | (54 | ) | $ | (1,008 | ) | $ | (137 | ) | |||
Change in portions of U.S. GAAP liability, before NPR(4) | 2,449 | (737 | ) | (4,462 | ) | (431 | ) | ||||||||
Change in the NPR adjustment | (3,225 | ) | 207 | 2,733 | (756 | ) | |||||||||
Net impact from changes in the U.S. GAAP embedded derivative and hedge positions | (1,654 | ) | (584 | ) | (2,737 | ) | (1,324 | ) | |||||||
Related benefit (charge) to amortization of DAC and other costs | 523 | 80 | 355 | 231 | |||||||||||
Net impact of assumption updates and other refinements | 199 | 13 | 199 | 13 | |||||||||||
Net impact from changes in the U.S. GAAP embedded derivative and hedge positions, after the impact of NPR, DAC and other costs | $ | (932 | ) | $ | (491 | ) | $ | (2,183 | ) | $ | (1,080 | ) |
(1) | Positive amount represents income; negative amount represents a loss. |
(2) | Excluding impact of assumption updates and other refinements. |
(3) | 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. |
(4) | Represents risk margins and valuation methodology differences between the economic liability managed by the ALM Strategy and the U.S. GAAP liability. |
• | Unfavorable NPR adjustment and unfavorable hedge breakage as a result of the tightening of credit spreads; |
• | Favorable impact related to the portions of the U.S. GAAP liability before NPR, that are excluded from our hedge target driven by the tightening of credit spreads. |
• | Lower Amortization of deferred policy acquisition costs and Interest credited to policyholders' account balances driven by changes to expected gross profits reflecting change in market conditions. |
• | Unfavorable comparative impact of our duration management swaps due to more significant declines in interest rates in the current period compared to the prior year period; and |
• | Unfavorable impact related to the portions of the U.S. GAAP liability before NPR, that are excluded from our hedge target driven by declining interest rates, widening of credit spreads, and unfavorable hedge breakage, partially offset by a favorable NPR adjustment. |
• | Higher Amortization of deferred policy acquisition costs driven by changes to expected gross profits reflecting change in market conditions; and |
• | Higher Policyholders' benefits driven by our guaranteed minimum death benefits due to unfavorable market conditions, resulting in higher reserve provisions. |
As of June 30, 2020 | As of December 31, 2019 | ||||||
(in millions) | |||||||
U.S. GAAP liability (including NPR) | $ | 23,052 | $ | 11,823 | |||
NPR adjustment | 6,010 | 3,245 | |||||
Subtotal | 29,062 | 15,068 | |||||
Adjustments including risk margins and valuation methodology differences | (8,161 | ) | (4,111 | ) | |||
Economic liability managed through the ALM strategy | $ | 20,901 | $ | 10,957 |
• | We executed additional capital hedges that protect a portion of the capital position against additional declines in the equity markets; and |
• | We accelerated our product diversification strategy and repriced certain products, which are expected to support the capital position over time. |
Return of Capital | |||
(in millions) | |||
June 30, 2020 | $ | 173 | |
March 31, 2020 | $ | 207 | |
December 31, 2019 | $ | 241 | |
September 30, 2019 | $ | 245 | |
June 30, 2019 | $ | 247 |
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 |
104.Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
PRUDENTIAL ANNUITIES LIFE ASSURANCE CORPORATION | ||
By: | /s/ Susan M. Mann | |
Name | Susan M. Mann | |
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 is made known to us by others within such entity, 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/ Dylan J. Tyson | |
Dylan J. Tyson | |
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 is made known to us by others within such entity, 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/ Susan M. Mann | |
Susan M. Mann | |
Executive Vice President and Chief Financial Officer |
/s/ Dylan J. Tyson | |
Dylan J. Tyson | |
President and Chief Executive Officer |
/s/ Susan M. Mann | |
Susan M. Mann | |
Executive Vice President and Chief Financial Officer |
Unaudited Interim Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Fixed Maturities, Available-for-sale, Amortized Cost | $ 14,517,513 | $ 12,465,746 |
Fixed Maturities, Available-for-sale, allowance for credit losses | 982 | |
Fixed maturities, trading, amortized cost | 525,032 | 349,428 |
Equity securities, at cost | 66,470 | 63,647 |
Commercial mortgage and other loans, allowance for credit losses | 6,879 | 2,663 |
Other invested assets, at fair value | $ 13,524 | $ 10,492 |
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 Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
REVENUES | ||||
Premiums | $ 15,013 | $ 18,471 | $ 31,592 | $ 35,736 |
Policy charges and fee income | 455,682 | 524,788 | 952,551 | 1,032,722 |
Net investment income | 158,426 | 131,972 | 281,463 | 257,041 |
Asset administration fees and other income | 105,849 | 115,205 | 250,982 | 224,593 |
Realized investment gains (losses), net | (3,375,764) | (894,215) | (4,133,455) | (2,236,434) |
Total revenues | (2,640,794) | (103,779) | (2,616,867) | (686,342) |
BENEFITS AND EXPENSES | ||||
Policyholders’ benefits | (37,768) | 47,890 | 204,761 | 55,840 |
Interest credited to policyholders’ account balances | (33,254) | 33,355 | 79,716 | 43,782 |
Amortization of deferred policy acquisition costs | (194,304) | 40,132 | 235,214 | 30,041 |
Commission expense | 191,055 | 221,090 | 409,129 | 451,282 |
General, administrative and other expenses | 51,771 | 61,810 | 130,883 | 119,973 |
Total benefits and expenses | (22,500) | 404,277 | 1,059,703 | 700,918 |
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | (2,618,294) | (508,056) | (3,676,570) | (1,387,260) |
Income tax expense (benefit) | (862,080) | (339,286) | (1,099,568) | (318,466) |
NET INCOME (LOSS) | (1,756,214) | (168,770) | (2,577,002) | (1,068,794) |
Other comprehensive income (loss), before tax: | ||||
Foreign currency translation adjustments | 2 | (116) | (481) | (16) |
Net unrealized investment gains (losses) | 247,379 | 423,402 | 1,527,467 | 707,830 |
Total | 247,381 | 423,286 | 1,526,986 | 707,814 |
Less: Income tax expense (benefit) related to other comprehensive income (loss) | ||||
Less: Income tax expense (benefit) related to other comprehensive income (loss) | 51,949 | 88,891 | 320,666 | 148,642 |
Other comprehensive income (loss), net of taxes | 195,432 | 334,395 | 1,206,320 | 559,172 |
Comprehensive income (loss) | $ (1,560,782) | $ 165,625 | $ (1,370,682) | $ (509,622) |
Unaudited Interim Statements of Equity - USD ($) $ in Thousands |
Total |
Common Stock |
Additional Paid-in Capital |
Retained Earnings (Accumulated Deficit) |
Accumulated Other Comprehensive Income (Loss) |
Total Equity |
Cumulative effect of adoption of accounting changes
Retained Earnings (Accumulated Deficit)
|
Cumulative effect of adoption of accounting changes
Total Equity
|
||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning Balance at Dec. 31, 2018 | $ 2,500 | $ 6,120,436 | $ 943,005 | $ (324,373) | $ 6,741,568 | $ (371) | [1] | $ (371) | [1] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Return of capital | (245,000) | (245,000) | ||||||||||||
Comprehensive income: | ||||||||||||||
Net income (loss) | (900,024) | (900,024) | ||||||||||||
Other comprehensive income (loss), net of tax | 224,777 | 224,777 | ||||||||||||
Total comprehensive income (loss) | (675,247) | |||||||||||||
Ending Balance at Mar. 31, 2019 | 2,500 | 5,875,436 | 42,610 | (99,596) | 5,820,950 | |||||||||
Beginning Balance at Dec. 31, 2018 | 2,500 | 6,120,436 | 943,005 | (324,373) | 6,741,568 | (371) | [1] | (371) | [1] | |||||
Comprehensive income: | ||||||||||||||
Net income (loss) | $ (1,068,794) | |||||||||||||
Other comprehensive income (loss), net of tax | 559,172 | |||||||||||||
Ending Balance at Jun. 30, 2019 | 2,500 | 5,628,936 | (126,160) | 234,799 | 5,740,075 | |||||||||
Beginning Balance at Mar. 31, 2019 | 2,500 | 5,875,436 | 42,610 | (99,596) | 5,820,950 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Return of capital | (246,500) | (246,500) | ||||||||||||
Comprehensive income: | ||||||||||||||
Net income (loss) | (168,770) | (168,770) | (168,770) | |||||||||||
Other comprehensive income (loss), net of tax | 334,395 | 334,395 | 334,395 | |||||||||||
Total comprehensive income (loss) | 165,625 | |||||||||||||
Ending Balance at Jun. 30, 2019 | 2,500 | 5,628,936 | (126,160) | 234,799 | 5,740,075 | |||||||||
Beginning Balance at Dec. 31, 2019 | 2,500 | 5,142,936 | (46,693) | 428,612 | 5,527,355 | (1,392) | [2] | (1,392) | [2] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Return of capital | (207,000) | (207,000) | ||||||||||||
Comprehensive income: | ||||||||||||||
Net income (loss) | (820,788) | (820,788) | ||||||||||||
Other comprehensive income (loss), net of tax | 1,010,888 | 1,010,888 | ||||||||||||
Total comprehensive income (loss) | 190,100 | |||||||||||||
Ending Balance at Mar. 31, 2020 | 2,500 | 4,935,936 | (868,873) | 1,439,500 | 5,509,063 | |||||||||
Beginning Balance at Dec. 31, 2019 | 2,500 | 5,142,936 | (46,693) | 428,612 | 5,527,355 | $ (1,392) | [2] | $ (1,392) | [2] | |||||
Comprehensive income: | ||||||||||||||
Net income (loss) | (2,577,002) | |||||||||||||
Other comprehensive income (loss), net of tax | 1,206,320 | |||||||||||||
Ending Balance at Jun. 30, 2020 | 2,500 | 4,762,936 | (2,625,087) | 1,634,932 | 3,775,281 | |||||||||
Beginning Balance at Mar. 31, 2020 | 2,500 | 4,935,936 | (868,873) | 1,439,500 | 5,509,063 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Return of capital | (173,000) | (173,000) | ||||||||||||
Comprehensive income: | ||||||||||||||
Net income (loss) | (1,756,214) | (1,756,214) | (1,756,214) | |||||||||||
Other comprehensive income (loss), net of tax | $ 195,432 | 195,432 | 195,432 | |||||||||||
Total comprehensive income (loss) | (1,560,782) | |||||||||||||
Ending Balance at Jun. 30, 2020 | $ 2,500 | $ 4,762,936 | $ (2,625,087) | $ 1,634,932 | $ 3,775,281 | |||||||||
|
Unaudited Interim Statements of Cash Flows - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ (2,577,002) | $ (1,068,794) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Policy charges and fee income | 59 | (618) |
Realized investment (gains) losses, net | 4,133,455 | 2,236,434 |
Depreciation and amortization | (327) | (69) |
Interest credited to policyholders’ account balances | 79,716 | 43,782 |
Change in: | ||
Future policy benefits | 709,681 | 518,143 |
Accrued investment income | (13,593) | (7,254) |
Net receivables from/payables to parent and affiliates | (12,182) | (5,904) |
Deferred sales inducements | (847) | (447) |
Deferred policy acquisition costs | 79,404 | (180,893) |
Income taxes | (883,346) | (238,375) |
Reinsurance recoverables, net | (27,746) | (3,031) |
Derivatives, net | 8,242,322 | 777,708 |
Other, net | (12,169) | 13,117 |
Cash flows from (used in) operating activities | 9,717,425 | 2,083,799 |
Proceeds from the sale/maturity/prepayment of: | ||
Fixed maturities, available-for-sale | 464,413 | 404,235 |
Fixed maturities, trading | 70,843 | 73 |
Equity securities | 14,369 | 2,534 |
Commercial mortgage and other loans | 21,007 | 117,869 |
Policy loans | 529 | 1,069 |
Other invested assets | 13,743 | 20,825 |
Short-term investments | 2,829,379 | 384,990 |
Payments for the purchase/origination of: | ||
Fixed maturities, available for sale | (2,399,294) | (2,481,050) |
Fixed maturities, trading | (243,881) | (54,862) |
Equity securities | (15,863) | (26,246) |
Commercial mortgage and other loans | (207,350) | (83,787) |
Policy loans | (73) | (168) |
Other invested assets | (72,413) | (74,670) |
Short-term investments | (6,134,853) | (353,614) |
Notes receivable from parent and affiliates, net | 0 | 34,008 |
Derivatives, net | (626,097) | (31,536) |
Other, net | 0 | 0 |
Cash flows from (used in) investing activities | (6,285,541) | (2,140,330) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Policyholders' account deposits | 2,768,113 | 1,981,101 |
Ceded policyholders' account deposits | (30,493) | (11,204) |
Policyholders' account withdrawals | (2,155,125) | (1,670,995) |
Ceded policyholders' account withdrawals | 22,107 | 23,598 |
Cash collateral for loaned securities | 0 | (384) |
Repayments of debt (maturities longer than 90 days) | 0 | (274,569) |
Net increase/(decrease) in short-term borrowing | (7,916) | 0 |
Drafts outstanding | 137,072 | (4,650) |
Distribution to Parent | (380,000) | (491,500) |
Other, net | (25,949) | 0 |
Cash flows from (used in) financing activities | 327,809 | (448,603) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 3,759,693 | (505,134) |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 2,795,163 | 4,503,534 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 6,554,856 | $ 3,998,400 |
Business and Basis of Presentation |
6 Months Ended |
---|---|
Jun. 30, 2020 | |
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 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. Effective April 1, 2016, the Company reinsured the variable annuity base contracts, along with the living benefit guarantees, from Pruco Life Insurance Company ("Pruco Life"), excluding the Pruco Life Insurance Company of New Jersey ("PLNJ") business which was reinsured to Prudential Insurance Company of America (“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, 2019. 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; policyholders' account balances related to the fair value of embedded derivative instruments associated with the index-linked features of certain fixed annuity products; value of business acquired ("VOBA") and its amortization; amortization of deferred sales inducements ("DSI"); valuation of investments including derivatives, measurement of allowance for credit losses, and 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. COVID-19 Beginning in the first quarter of 2020, the outbreak of the novel coronavirus (“COVID-19”) has resulted in extreme stress and disruption in the global economy and financial markets and has adversely impacted, and may continue to adversely impact, our results of operations, financial condition and cash flows. Due to the highly uncertain nature of these conditions, it is not possible to estimate the ultimate impacts at this time. The risks may have manifested, and may continue to manifest, in our financial statements in the areas of, among others, i) investments: increased risk of loss on our investments due to default or deterioration in credit quality or value; and ii) insurance liabilities and related balances: potential changes to assumptions regarding investment returns, mortality, morbidity and policyholder behavior which are reflected in our insurance liabilities and certain related balances (e.g., DAC, VOBA, etc.). We cannot predict what impact the COVID-19 pandemic will ultimately have on the global economy, markets or our businesses. Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation.
|
Significant Accounting Policies and Pronouncements |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 ("ASUs") to the FASB Accounting Standards Codification ("ASC"). The Company considers the applicability and impact of all ASUs. ASUs 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 June 30, 2020, and as of the date of this filing. ASUs not listed below were assessed and determined to be either not applicable or not material. Adoption of ASU 2016-13 The Company adopted ASU 2016-13, and related ASUs, effective January 1, 2020 using the modified retrospective method for certain financial assets carried at amortized cost and certain off-balance sheet exposures. The modified retrospective method results in a cumulative effect adjustment to opening retained earnings. The Company adopted the guidance related to fixed maturities, available-for-sale on a prospective basis. This ASU requires the use of a new current expected credit loss (“CECL”) model to account for expected credit losses on certain financial assets reported at amortized cost (e.g., loans held for investment, reinsurance receivables, etc.) and certain off-balance sheet credit exposures (e.g., indemnification of serviced mortgage loans and certain loan commitments). The guidance requires an entity to estimate lifetime credit losses related to such financial assets and credit exposures based on relevant information about past events, current conditions, and reasonable and supportable forecasts that may affect the collectability of the reported amounts. The standard also modifies the OTTI guidance for fixed maturities, available-for-sale requiring the use of an allowance rather than a direct write-down of the investment. The impacts of this ASU on the Company’s Financial Statements primarily include (1) A Cumulative Effect Adjustment Upon Adoption; (2) Changes to the Presentation of the Statements of Financial Position and Statements of Operations; and (3) Changes to Accounting Policies. Each of these impacts is described below. This section is meant to serve as an update to, and should be read in conjunction with, Note 2 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. (1) Cumulative Effect Adjustment Upon Adoption Adoption of the standard resulted in a cumulative effect adjustment to opening retained earnings in the amount of $1.4 million, primarily related to commercial mortgage and other loans. The impact of adoption is not material to the following financial statement line items: deferred policy acquisition costs; income taxes; and other liabilities. The prospective adoption of the portions of the standard related to fixed maturities, available-for-sale resulted in no impact to opening retained earnings. (2) Changes to the Presentation of the Statements of Financial Position and Statements of Operations The allowance for credit losses is presented parenthetically on relevant line items in the Statements of Financial Position. In the Statements of Operations, realized investment gains (losses), net are presented on one line item and will no longer reflect the breakout of OTTI on fixed maturity securities; OTTI on fixed maturity securities transferred to other comprehensive income (“OCI”); and other realized investment gains (losses), net. The presentation of this detail in prior periods is immaterial. (3) Changes to Accounting Policies This section has been updated to include the following changes in our accounting policies resulting from the adoption of ASU 2016-13. Fixed maturities, available-for-sale Fixed maturities, available-for-sale (“AFS debt securities”) are reported at fair value in the Statements of Financial Position. Interest income, and amortization of premium and accretion of discount are included in “Net investment income” under the effective yield method. For mortgage-backed and asset-backed securities, the effective yield is based on estimated cash flows, including interest rate and prepayment assumptions based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also vary based on other assumptions relating to the underlying collateral, including default rates and changes in value. These assumptions can significantly impact income recognition and the amount of impairments recognized in earnings and OCI. For mortgage-backed and asset-backed securities rated below AA, the effective yield is adjusted prospectively for any changes in the estimated timing and amount of cash flows unless the investment is impaired or purchased with credit deterioration. For impaired mortgage-backed and asset-backed securities rated below AA, the effective yield is adjusted prospectively only if subsequent favorable or adverse changes in expected cash flows are not reflected in the allowance for credit losses. Prior to the adoption of this standard, the effective yield was adjusted prospectively regardless of whether the investment was impaired or not. AFS debt securities with unrealized losses are reviewed quarterly to determine whether the amortized cost basis of the security is recoverable. In evaluating whether the amortized cost basis is recoverable, the Company considers several factors including, but not limited to the extent of the decline and the reasons for the decline in value (credit events, currency or interest-rate related, including general credit spread widening), and the financial condition of the issuer. When an AFS debt security is in an unrealized loss position and (1) the Company has the intent to sell the AFS debt security, or (2) it is more likely than not the Company will be required to sell the AFS debt security before its anticipated recovery, or (3) the Company has deemed the AFS debt security to be uncollectable, the amortized cost basis of the AFS debt security is written down to fair value and any previously recognized allowance is reversed. The impairment is reported in “Realized investment gains (losses), net.” The new cost basis is not adjusted for subsequent increases in estimated fair value. For an AFS debt security in an unrealized loss position that does not meet these conditions, the Company analyzes its ability to recover the amortized cost by comparing the net present value of projected future cash flows (the “net present value”) with the amortized cost of the security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the AFS debt security at the date of acquisition. The Company may use the estimated fair value of collateral, if any, as a proxy for the net present value if it believes that the security is dependent on the liquidation of collateral for recovery of its investment. If the net present value is less than the amortized cost of the investment, an allowance for losses is recognized in earnings for the difference between amortized cost and the net present value and is limited to the difference between amortized cost and fair value of the AFS debt security. Any difference between the fair value and the net present value of the debt security at the impairment measurement date remains in “Other comprehensive income (loss).” Changes in the allowance for losses are reported in “Realized investment gains (losses), net.” Prior to the adoption of this standard, any impairments on AFS debt securities were reported as an adjustment to the amortized cost basis of the security. Subsequent to the impairment, the AFS debt security was treated as if it were newly acquired at the date of impairment, and any increases in cash flows expected to be collected were accreted into net investment income over the life of the investment. Commercial mortgage and other loans Commercial mortgage and other loans are reported in the Statements of Financial Position at amortized cost net of the CECL allowance. Additionally, certain off-balance sheet credit exposures (e.g., indemnification of serviced mortgage loans, and certain unfunded mortgage loan commitments where the Company cannot unconditionally cancel the commitment) are also subject to a CECL allowance. The CECL allowance represents the Company’s best estimate of expected credit losses over the remaining life of the assets or off-balance sheet credit exposures. The determination of the allowance considers historical credit loss experience, current conditions, and reasonable and supportable forecasts. The allowance is calculated separately for commercial mortgage loans, agricultural mortgage loans, and other collateralized and uncollateralized loans. For commercial mortgage and agricultural mortgage loans (and related unfunded commitments where the Company cannot unconditionally cancel the commitment), the allowance is calculated using an internally developed CECL model. Key inputs to the CECL model include unpaid principal balances, internal credit ratings, annual expected loss factors, average lives of the loans adjusted for prepayment considerations, current and historical interest rate assumptions, and other factors influencing the Company’s view of the current stage of the economic cycle and future economic conditions. Subjective considerations include a review of whether historical loss experience is representative of current market conditions and the Company’s view of the credit cycle. Model assumptions and factors are reviewed and updated as appropriate. Information about certain key inputs is detailed below. Key factors in determining the internal credit ratings for commercial mortgage and agricultural mortgage loans include loan-to value and debt-service-coverage ratios. Other factors include amortization, loan term, and estimated market value growth rate and volatility for the property type and region. The loan-to-value ratio compares the carrying amount of the loan to the fair value of the underlying property or properties collateralizing the loan and is commonly expressed as a percentage. Loan-to-value ratios greater than 100% indicate that the carrying amount of the loan exceeds the collateral value. A loan-to-value ratio less than 100% indicates an excess of collateral value over the carrying amount of the loan. The debt-service-coverage ratio is a property’s net operating income as a percentage of its debt service payments. Debt-service-coverage ratios less than 1.0 times indicate that a property’s operations do not generate enough income to cover the loan’s current debt payments. A debt-service-coverage ratio greater than 1.0 times indicates an excess of net operating income over the debt service payments. The values utilized in calculating these ratios are developed as part of the Company’s periodic review of the commercial mortgage and agricultural mortgage loan portfolios, which includes an internal appraisal of the underlying collateral value. The Company’s periodic review also includes a credit re-rating process, whereby the internal credit rating originally assigned at underwriting is updated based on current loan, property and market information using a proprietary credit quality rating system. See Note 3 for additional information related to the loan-to-value ratios and debt-service-coverage ratios related to the Company’s commercial mortgage and agricultural mortgage loan portfolios. Generally, every loan is re-rated at least annually. Annual expected loss rates are based on historical default and loss experience factors. Using average lives, the annual expected loss rates are converted into life-of-loan loss expectations. When individual loans no longer have the credit risk characteristics of the commercial or agricultural mortgage loan pools, they are removed from the pools and are evaluated individually for an allowance. The allowance is determined based on the outstanding loan balance less the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. The CECL allowance on commercial mortgage and other loans can increase or decrease from period to period based on the factors noted above. The change in allowance is reported in “Realized investment gains (losses), net.” As it relates to unfunded commitments that are in scope of this guidance, the CECL allowance is reported in “Other liabilities”, and the change in the allowance is reported in “Realized investment gains (losses), net.” When a commercial mortgage or other loan is deemed to be uncollectible, any allowance is reversed and a direct write-down of the carrying amount of the loan is recorded through "Realized investment gains (losses), net." The carrying amount of the loan is not adjusted for subsequent recoveries in value. The CECL allowance for other collateralized and uncollateralized loans carried at amortized cost is determined based on probability of default and loss given default assumptions by sector, credit quality and average lives of the loans. Additions to or releases of the allowance are reported in “Realized investment gains (losses), net.” Prior to the adoption of this standard, the impairments on commercial mortgage and other loans were collectively reviewed at a portfolio level for impairment based on probable incurred but not specifically identified losses with any such losses reflected in an allowance for credit losses. When a loan was individually identified to be impaired, the loan was individually evaluated for an allowance. Changes in these allowances were reported in “Realized investment gains (losses), net.” Additionally, an allowance for credit losses was not required on unfunded loan commitments. Reinsurance Reinsurance recoverables are reported on the Statements of Financial Position net of the CECL allowance. The CECL allowance considers the credit quality of the reinsurance counterparty and is generally determined based on the probability of default and loss given default assumptions, after considering any applicable collateral arrangements. The CECL allowance does not apply to reinsurance recoverables with affiliated counterparties under common control. Additions to or releases of the allowance are reported in “Policyholders’ benefits.” Prior to the adoption of this standard, an allowance for credit losses for reinsurance recoverables was established only when it was deemed probable that a reinsurer may fail to make payments to us in a timely manner. Other ASUs adopted during the six months ended June 30, 2020.
ASU issued but not yet adopted as of June 30, 2020 — 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. In October 2019, the FASB issued ASU 2019-09, Financial Services - Insurance (Topic 944): Effective Date to affirm its decision to defer the effective date of ASU 2018-12 to January 1, 2022 (with early adoption permitted), representing a one year extension from the original effective date of January 1, 2021. As a result of the COVID-19 pandemic, the FASB voted in June 2020 to tentatively defer for an additional one year the current effective date of ASU 2018-12 from January 1, 2022 to January 1, 2023, and to provide transition relief to facilitate the early adoption of the ASU. Subsequently in July 2020, the FASB issued a proposed ASU with a comment deadline of August 24, 2020 to obtain additional feedback on the tentative decisions, which are expected to be finalized during the third quarter of 2020. The transition relief would allow large calendar-year public companies that early adopt ASU 2018-12 to apply the guidance as of January 1, 2021 (and record transition adjustments as of January 1, 2021) in the 2022 financial statements. Companies that do not early adopt ASU 2018-12 would also apply the guidance as of January 1, 2021 (and record transition adjustments as of January 1, 2021) in the 2023 financial statements. ASU 2018-12 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.
|
Investments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 table sets forth the fair value and gross unrealized losses on available-for-sale fixed maturity securities without an allowance for credit 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 date indicated:
The following table sets forth the fair value and gross unrealized losses on fixed maturity securities aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the date indicated:
As of June 30, 2020, the gross unrealized losses on fixed maturity available-for-sale securities without an allowance were composed of $43.8 million related to “1” highest quality or “2” high quality securities based on the National Association of Insurance Commissioners (“NAIC”) or equivalent rating and $26.6 million related to other than high or highest quality securities based on NAIC or equivalent rating. As of June 30, 2020, the $19.9 million of gross unrealized losses of twelve months or more were concentrated in the asset-backed securities and in the Company’s corporate securities within the consumer non-cyclical, utility and finance sectors. As of December 31, 2019, the gross unrealized losses on fixed maturity securities were composed of $52.5 million related to “1” highest quality or “2” high quality securities based on the NAIC or equivalent rating and $3.2 million related to other than high or highest quality securities based on NAIC or equivalent rating. As of December 31, 2019, the $10.1 million of gross unrealized losses of twelve months or more were concentrated in the Company’s corporate securities within the consumer non-cyclical, utility and consumer cyclical sectors and in asset-backed securities. In accordance with its policy described in Note 2, the Company concluded that an adjustment to earnings for credit losses related to these fixed maturity securities was not warranted at June 30, 2020. 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, foreign currency exchange rate movements and the financial condition or near-term prospects of the issuer. As of June 30, 2020, 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 write-downs, impairments and the allowance for credit losses of fixed maturities, for the periods indicated:
The following table sets forth the activity in the allowance for credit losses for fixed maturity securities, as of the date indicated:
See Note 2 for additional information about the Company’s methodology for developing our allowance and expected losses. As of June 30, 2020, the allowance for credit losses on available-for-sale securities was primarily related to adverse projected cash flows on private corporate securities. The Company did not have any fixed maturity securities purchased with credit deterioration, as of June 30, 2020. 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 $3.3 million and $0.6 million during the three months ended June 30, 2020 and 2019, respectively, and $1.7 million and $1.5 million during the six months ended June 30, 2020 and 2019, 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 June 30, 2020, the commercial mortgage and agricultural property loans were secured by properties geographically dispersed throughout the United States (with the largest concentrations in California (24%), Texas (12%) and New York (11%)) and included loans secured by properties in Europe (15%) 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:
See Note 2 for additional information about the Company's methodology for developing our allowance and expected losses. As of June 30, 2020, the increase in the allowance for credit losses on commercial mortgage and other loans was primarily related to the cumulative effect of adoption of ASU 2016-13. The following tables set forth key credit quality indicators based upon the recorded investment gross of allowance for credit losses, as of the date indicated:
See Note 2 for additional information about the Company’s commercial mortgage and other loans credit quality monitoring process. 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:
There were $4.3 million of loans on non-accrual status, all of which did not have a related allowance for credit losses as of June 30, 2020, and did not recognize interest income for both the three and six months ended June 30, 2020. For both the three and six months ended June 30, 2020, 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. For the three and six months ended June 30, 2019, there were no commercial mortgage and other loans acquired, other than those through direct origination, and there were $0 million and $101 million, respectively, of commercial mortgage and other loans sold. The Company did not have any commercial mortgage and other loans purchased with credit deterioration, as of June 30, 2020. Other Invested Assets The following table sets forth the composition of “Other invested assets,” as of the dates indicated:
Accrued Investment Income The following table sets forth the composition of “Accrued investment income,” as of the date indicated:
There were no write-downs on accrued investment income for both the three and six months ended June 30, 2020. 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 both June 30, 2020 and December 31, 2019, the Company had no repurchase agreements and securities lending transactions. |
Derivative Instruments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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, 2019. 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 value of derivative contracts prior to taking into account the netting effects of master netting agreements and cash collateral.
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, 2019. 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, or equity 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:
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 June 30, 2020 values, it is estimated that a pre-tax gain of $18 million is expected to be reclassified from AOCI to earnings during the subsequent twelve months ending June 30, 2021. 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 Credit derivatives, where the Company has written credit protection on certain index references had outstanding notional amounts of $233 million and $0 million as of June 30, 2020 and December 31, 2019, respectively. These credit derivatives are reported at fair value as a liability of $2 million and $0 million as of June 30, 2020 and December 31, 2019, respectively. As of June 30, 2020, the notional amount of these credit derivatives had the following NAIC rating: $233 million in NAIC 4. 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 $6 million and $0 million reported as of June 30, 2020 and December 31, 2019, respectively with a fair value of $0 million for both periods. Credit Risk The Company is exposed to losses in the event of non-performance by a 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. Substantially all of the Company’s derivative agreements have zero thresholds which require daily full collateralization by the party in a liability position.
|
Fair Value of Assets and Liabilities |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2019. 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. Examples of such interrelationships for significant internally-priced Level 3 assets and liabilities are as follows: Corporate Securities – The rate used to discount future cash flows reflects current risk-free rates plus credit and liquidity spread requirements that market participants would use to value an asset. The discount rate may be influenced by many factors, including market cycles, expectations of default, collateral, term and asset complexity. Each of these factors can influence discount rates, either in isolation, or in response to other factors. During weaker economic cycles, as the expectations of default increases, credit spreads widen, which results in a decrease in fair value. Future Policy Benefits – The Company expects efficient benefit utilization and withdrawal rates to generally be correlated with lapse rates. However, behavior is highly dependent on the facts and circumstances surrounding the individual contractholder, such as their liquidity needs or tax situation, which could drive lapse behavior independent of other contractholder behavior assumptions. To the extent more efficient contractholder behavior results in greater in-the-moneyness at the contract level, lapse rates may decline for those contracts. Similarly, to the extent that increases in equity volatility are correlated with overall declines in the capital markets, lapse rates may decline as contracts become more in-the-money. 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. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate.
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 out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments.
|
Income Taxes |
6 Months Ended |
---|---|
Jun. 30, 2020 | |
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 benefit of $(1,100) million, or 29.91% of income (loss) from operations before income taxes in the first six months of 2020, compared to $(318) million, or 22.96%, in the first six months of 2019. The Company’s current and prior effective tax rates differed from the U.S. statutory tax rate of 21% primarily due to non-taxable investment income and tax credits. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted into law. One provision of the CARES Act amends the Tax Cuts and Jobs Act (“TCJA”) and allows companies with net operating losses (“NOLs”) originating in 2018, 2019 or 2020 to carry back those losses for five years. The Company has incorporated into the full year projected effective tax rate an income tax benefit of $305 million that would result from carrying the estimated 2020 NOL back to tax years that have a 35% tax rate. This amount is an estimate and will change if the amount of, and sources of, 2020 net taxable income are different from forecast. |
Reinsurance |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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. Effective December 31, 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. 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 June 30, 2020 and December 31, 2019 were as follows:
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 and six months ended June 30, were as follows:
(2) Includes $(0.5) million and $(0.1) million of unaffiliated activity for the three months ended June 30, 2020 and 2019, respectively, and $(0.4) million and $(0.1) million for the six months ended June 30, 2020 and 2019, respectively.
|
Equity |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 six months ended June 30, 2020 and 2019 are as follows:
Reclassifications out of Accumulated Other Comprehensive Income (Loss)
Net Unrealized Investment Gains (Losses) Net unrealized investment gains (losses) on available-for-sale fixed maturity securities 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 available-for-sale fixed maturity securities on which an allowance for credit losses has been recognized, and all other net unrealized investment gains (losses), are as follows: Net Unrealized Investment Gains (Losses) on Available-for-Sale Fixed Maturity Securities on which an allowance for credit losses has been recognized
All Other Net Unrealized Investment Gains (Losses) in AOCI
(4) "Other liabilities" primarily includes reinsurance payables and deferred reinsurance gains.
|
Related Party Transactions |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 The majority 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 and $0.1 million for the three months ended June 30, 2020 and 2019, respectively, and $0.1 million for both the six months ended June 30, 2020 and 2019. The expense charged to the Company for the deferred compensation program was $0.0 million and $0.2 million for the three months ended June 30, 2020 and 2019, respectively, and $0.3 million and $0.5 million for the six months ended June 30, 2020 and 2019, respectively. The Company is charged for its share of employee benefit expenses. These expenses include costs for funded and non-funded, 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 and $0.6 million for the three months ended June 30, 2020 and 2019, respectively, and $1.1 million for both the six months ended June 30, 2020 and 2019. 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 $0.4 million and $0.5 million for the three months ended June 30, 2020 and 2019, respectively, and $1.0 million and $1.1 million for the six months ended June 30, 2020 and 2019, respectively. 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 and $0.3 million for the three months ended June 30, 2020 and 2019, respectively, and $0.5 million for both the six months ended June 30, 2020 and 2019. The Company pays commissions and certain other fees to Prudential Annuities Distributors, Inc ("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 $29 million and $25 million for the three months ended June 30, 2020 and 2019, respectively, and $52 million and $49 million for the six months ended June 30, 2020 and 2019, 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 $2 million and $4 million for the three months ended June 30, 2020 and 2019, respectively, and $6 million and $8 million for the six months ended June 30, 2020 and 2019, respectively. 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 $5 million and $4 million for the three months ended June 30, 2020 and 2019, respectively, and $10 million and $8 million for the six months ended June 30, 2020 and 2019, respectively. 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 Affiliated Asset Administration Fee Income 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 $21 million and $24 million for the three months ended June 30, 2020 and 2019, respectively, and $43 million and $48 million for the six months ended June 30, 2020 and 2019, 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 June 30, 2020 and December 31, 2019 were as follows:
The affiliated notes receivable shown above are classified as available-for-sale securities 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 $0.0 million at June 30, 2020 and December 31, 2019, respectively, and is included in “Other assets”. Revenues related to these assets were a gain of $0.4 million and $0.1 million for the three months ended June 30, 2020 and 2019, respectively, and a gain of $0.8 million and a loss of $0.2 million for the six months ended June 30, 2020 and 2019, respectively, and are included in “Asset administration fees and other income”. Affiliated Commercial Mortgage Loan The affiliated commercial mortgage loan included in "Commercial mortgage and other loans" at June 30, 2020 was as follow:
The Company did not have any affiliated commercial mortgage loans outstanding at December 31, 2019. The commercial mortgage loan shown above is carried at unpaid principal balance, net of unamortized deferred loan origination fees and expenses, and net of an allowance for losses. The Company reviews the performance and credit quality of the commercial mortgage on an on-going basis. Accrued interest receivable related to the loan was $0.2 million at June 30, 2020 and is included in "Accrued investment income". Investment income was $0.3 million for the three and six months ended June 30, 2020 and is included in "Net investment 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 six months ended June 30, 2020 and for the year ended December 31, 2019.
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 June 30, 2020 and December 31, 2019:
The total interest expense to the Company related to loans and other payables to affiliates was $8 million and $24 million for the three months ended June 30, 2020 and 2019, respectively, and $36 million and $40 million for the six months ended June 30, 2020 and 2019, respectively. Contributed Capital and Dividends Through June 2020 and December 2019, the Company did not receive any capital contributions. In March and June 2020, there was a $207 million and $173 million return of capital, respectively, to PAI. In March, June, September and December 2019, there was a $245 million, $247 million, $245 million and $241 million return of capital, respectively, to PAI. Reinsurance with Affiliates As discussed in Note 6, the Company participates in reinsurance transactions with certain affiliates.
|
Commitments and Contingent Liabilities |
6 Months Ended |
---|---|
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | COMMITMENTS AND CONTINGENT LIABILITIES Commitments The Company has made commitments to fund commercial mortgage loans. As of June 30, 2020 and December 31, 2019, the outstanding balances on these commitments were $25 million and $43 million, respectively. The above amount includes unfunded commitments that are not unconditionally cancellable. For related credit exposure, there was an allowance for credit losses of $0.0 million as of June 30, 2020, which is a change of $0.0 million for the three and six months ended June 30, 2020. The Company also made commitments to purchase or fund investments, mostly private fixed maturities. As of June 30, 2020 and December 31, 2019, $195 million and $207 million, respectively, of these commitments were outstanding. The above amount includes unfunded commitments that are not unconditionally cancellable. There were no related charges for credit losses for both the three and six months ended June 30, 2020. 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 its 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. For additional discussion of these matters, see “Litigation and Regulatory Matters” below. 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 June 30, 2020, 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. For a discussion of the Company's litigation and regulatory matters, see 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, 2019. There are no material developments in previously reported matters disclosed as of December 31, 2019. Summary The Company’s litigation and regulatory matters are subject to many uncertainties, and given their complexity and scope, their outcome cannot be predicted. It is possible that the Company’s results of operations or cash flows in a particular quarterly or annual period could be materially affected by an ultimate unfavorable resolution of pending litigation and regulatory matters depending, in part, upon the results of operations or cash flows for such period. In light of the unpredictability of the Company’s litigation and regulatory matters, it is also possible that in certain cases an ultimate unfavorable resolution of one or more pending litigation or regulatory matters could have a material adverse effect on the Company’s financial position. Management believes, however, that, based on information currently known to it, the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, is not likely to have a material adverse effect on the Company’s financial position.
|
Significant Accounting Policies and Pronouncements (Policies) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
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”). 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, 2019.
|
|||||||||||||||||||||||||||||||||||||||||||||||||
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. The most significant estimates include those used in determining deferred policy acquisition costs ("DAC") and related amortization; policyholders' account balances related to the fair value of embedded derivative instruments associated with the index-linked features of certain fixed annuity products; value of business acquired ("VOBA") and its amortization; amortization of deferred sales inducements ("DSI"); valuation of investments including derivatives, measurement of allowance for credit losses, and 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 | Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation.
|
|||||||||||||||||||||||||||||||||||||||||||||||||
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 ("ASUs") to the FASB Accounting Standards Codification ("ASC"). The Company considers the applicability and impact of all ASUs. ASUs 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 June 30, 2020, and as of the date of this filing. ASUs not listed below were assessed and determined to be either not applicable or not material. Adoption of ASU 2016-13 The Company adopted ASU 2016-13, and related ASUs, effective January 1, 2020 using the modified retrospective method for certain financial assets carried at amortized cost and certain off-balance sheet exposures. The modified retrospective method results in a cumulative effect adjustment to opening retained earnings. The Company adopted the guidance related to fixed maturities, available-for-sale on a prospective basis. This ASU requires the use of a new current expected credit loss (“CECL”) model to account for expected credit losses on certain financial assets reported at amortized cost (e.g., loans held for investment, reinsurance receivables, etc.) and certain off-balance sheet credit exposures (e.g., indemnification of serviced mortgage loans and certain loan commitments). The guidance requires an entity to estimate lifetime credit losses related to such financial assets and credit exposures based on relevant information about past events, current conditions, and reasonable and supportable forecasts that may affect the collectability of the reported amounts. The standard also modifies the OTTI guidance for fixed maturities, available-for-sale requiring the use of an allowance rather than a direct write-down of the investment. The impacts of this ASU on the Company’s Financial Statements primarily include (1) A Cumulative Effect Adjustment Upon Adoption; (2) Changes to the Presentation of the Statements of Financial Position and Statements of Operations; and (3) Changes to Accounting Policies. Each of these impacts is described below. This section is meant to serve as an update to, and should be read in conjunction with, Note 2 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. (1) Cumulative Effect Adjustment Upon Adoption Adoption of the standard resulted in a cumulative effect adjustment to opening retained earnings in the amount of $1.4 million, primarily related to commercial mortgage and other loans. The impact of adoption is not material to the following financial statement line items: deferred policy acquisition costs; income taxes; and other liabilities. The prospective adoption of the portions of the standard related to fixed maturities, available-for-sale resulted in no impact to opening retained earnings. (2) Changes to the Presentation of the Statements of Financial Position and Statements of Operations The allowance for credit losses is presented parenthetically on relevant line items in the Statements of Financial Position. In the Statements of Operations, realized investment gains (losses), net are presented on one line item and will no longer reflect the breakout of OTTI on fixed maturity securities; OTTI on fixed maturity securities transferred to other comprehensive income (“OCI”); and other realized investment gains (losses), net. The presentation of this detail in prior periods is immaterial. (3) Changes to Accounting Policies This section has been updated to include the following changes in our accounting policies resulting from the adoption of ASU 2016-13. Fixed maturities, available-for-sale Fixed maturities, available-for-sale (“AFS debt securities”) are reported at fair value in the Statements of Financial Position. Interest income, and amortization of premium and accretion of discount are included in “Net investment income” under the effective yield method. For mortgage-backed and asset-backed securities, the effective yield is based on estimated cash flows, including interest rate and prepayment assumptions based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also vary based on other assumptions relating to the underlying collateral, including default rates and changes in value. These assumptions can significantly impact income recognition and the amount of impairments recognized in earnings and OCI. For mortgage-backed and asset-backed securities rated below AA, the effective yield is adjusted prospectively for any changes in the estimated timing and amount of cash flows unless the investment is impaired or purchased with credit deterioration. For impaired mortgage-backed and asset-backed securities rated below AA, the effective yield is adjusted prospectively only if subsequent favorable or adverse changes in expected cash flows are not reflected in the allowance for credit losses. Prior to the adoption of this standard, the effective yield was adjusted prospectively regardless of whether the investment was impaired or not. AFS debt securities with unrealized losses are reviewed quarterly to determine whether the amortized cost basis of the security is recoverable. In evaluating whether the amortized cost basis is recoverable, the Company considers several factors including, but not limited to the extent of the decline and the reasons for the decline in value (credit events, currency or interest-rate related, including general credit spread widening), and the financial condition of the issuer. When an AFS debt security is in an unrealized loss position and (1) the Company has the intent to sell the AFS debt security, or (2) it is more likely than not the Company will be required to sell the AFS debt security before its anticipated recovery, or (3) the Company has deemed the AFS debt security to be uncollectable, the amortized cost basis of the AFS debt security is written down to fair value and any previously recognized allowance is reversed. The impairment is reported in “Realized investment gains (losses), net.” The new cost basis is not adjusted for subsequent increases in estimated fair value. For an AFS debt security in an unrealized loss position that does not meet these conditions, the Company analyzes its ability to recover the amortized cost by comparing the net present value of projected future cash flows (the “net present value”) with the amortized cost of the security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the AFS debt security at the date of acquisition. The Company may use the estimated fair value of collateral, if any, as a proxy for the net present value if it believes that the security is dependent on the liquidation of collateral for recovery of its investment. If the net present value is less than the amortized cost of the investment, an allowance for losses is recognized in earnings for the difference between amortized cost and the net present value and is limited to the difference between amortized cost and fair value of the AFS debt security. Any difference between the fair value and the net present value of the debt security at the impairment measurement date remains in “Other comprehensive income (loss).” Changes in the allowance for losses are reported in “Realized investment gains (losses), net.” Prior to the adoption of this standard, any impairments on AFS debt securities were reported as an adjustment to the amortized cost basis of the security. Subsequent to the impairment, the AFS debt security was treated as if it were newly acquired at the date of impairment, and any increases in cash flows expected to be collected were accreted into net investment income over the life of the investment. Commercial mortgage and other loans Commercial mortgage and other loans are reported in the Statements of Financial Position at amortized cost net of the CECL allowance. Additionally, certain off-balance sheet credit exposures (e.g., indemnification of serviced mortgage loans, and certain unfunded mortgage loan commitments where the Company cannot unconditionally cancel the commitment) are also subject to a CECL allowance. The CECL allowance represents the Company’s best estimate of expected credit losses over the remaining life of the assets or off-balance sheet credit exposures. The determination of the allowance considers historical credit loss experience, current conditions, and reasonable and supportable forecasts. The allowance is calculated separately for commercial mortgage loans, agricultural mortgage loans, and other collateralized and uncollateralized loans. For commercial mortgage and agricultural mortgage loans (and related unfunded commitments where the Company cannot unconditionally cancel the commitment), the allowance is calculated using an internally developed CECL model. Key inputs to the CECL model include unpaid principal balances, internal credit ratings, annual expected loss factors, average lives of the loans adjusted for prepayment considerations, current and historical interest rate assumptions, and other factors influencing the Company’s view of the current stage of the economic cycle and future economic conditions. Subjective considerations include a review of whether historical loss experience is representative of current market conditions and the Company’s view of the credit cycle. Model assumptions and factors are reviewed and updated as appropriate. Information about certain key inputs is detailed below. Key factors in determining the internal credit ratings for commercial mortgage and agricultural mortgage loans include loan-to value and debt-service-coverage ratios. Other factors include amortization, loan term, and estimated market value growth rate and volatility for the property type and region. The loan-to-value ratio compares the carrying amount of the loan to the fair value of the underlying property or properties collateralizing the loan and is commonly expressed as a percentage. Loan-to-value ratios greater than 100% indicate that the carrying amount of the loan exceeds the collateral value. A loan-to-value ratio less than 100% indicates an excess of collateral value over the carrying amount of the loan. The debt-service-coverage ratio is a property’s net operating income as a percentage of its debt service payments. Debt-service-coverage ratios less than 1.0 times indicate that a property’s operations do not generate enough income to cover the loan’s current debt payments. A debt-service-coverage ratio greater than 1.0 times indicates an excess of net operating income over the debt service payments. The values utilized in calculating these ratios are developed as part of the Company’s periodic review of the commercial mortgage and agricultural mortgage loan portfolios, which includes an internal appraisal of the underlying collateral value. The Company’s periodic review also includes a credit re-rating process, whereby the internal credit rating originally assigned at underwriting is updated based on current loan, property and market information using a proprietary credit quality rating system. See Note 3 for additional information related to the loan-to-value ratios and debt-service-coverage ratios related to the Company’s commercial mortgage and agricultural mortgage loan portfolios. Generally, every loan is re-rated at least annually. Annual expected loss rates are based on historical default and loss experience factors. Using average lives, the annual expected loss rates are converted into life-of-loan loss expectations. When individual loans no longer have the credit risk characteristics of the commercial or agricultural mortgage loan pools, they are removed from the pools and are evaluated individually for an allowance. The allowance is determined based on the outstanding loan balance less the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. The CECL allowance on commercial mortgage and other loans can increase or decrease from period to period based on the factors noted above. The change in allowance is reported in “Realized investment gains (losses), net.” As it relates to unfunded commitments that are in scope of this guidance, the CECL allowance is reported in “Other liabilities”, and the change in the allowance is reported in “Realized investment gains (losses), net.” When a commercial mortgage or other loan is deemed to be uncollectible, any allowance is reversed and a direct write-down of the carrying amount of the loan is recorded through "Realized investment gains (losses), net." The carrying amount of the loan is not adjusted for subsequent recoveries in value. The CECL allowance for other collateralized and uncollateralized loans carried at amortized cost is determined based on probability of default and loss given default assumptions by sector, credit quality and average lives of the loans. Additions to or releases of the allowance are reported in “Realized investment gains (losses), net.” Prior to the adoption of this standard, the impairments on commercial mortgage and other loans were collectively reviewed at a portfolio level for impairment based on probable incurred but not specifically identified losses with any such losses reflected in an allowance for credit losses. When a loan was individually identified to be impaired, the loan was individually evaluated for an allowance. Changes in these allowances were reported in “Realized investment gains (losses), net.” Additionally, an allowance for credit losses was not required on unfunded loan commitments. Reinsurance Reinsurance recoverables are reported on the Statements of Financial Position net of the CECL allowance. The CECL allowance considers the credit quality of the reinsurance counterparty and is generally determined based on the probability of default and loss given default assumptions, after considering any applicable collateral arrangements. The CECL allowance does not apply to reinsurance recoverables with affiliated counterparties under common control. Additions to or releases of the allowance are reported in “Policyholders’ benefits.” Prior to the adoption of this standard, an allowance for credit losses for reinsurance recoverables was established only when it was deemed probable that a reinsurer may fail to make payments to us in a timely manner. Other ASUs adopted during the six months ended June 30, 2020.
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Future Adoption Of New Accounting Pronouncements | ASU issued but not yet adopted as of June 30, 2020 — 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. In October 2019, the FASB issued ASU 2019-09, Financial Services - Insurance (Topic 944): Effective Date to affirm its decision to defer the effective date of ASU 2018-12 to January 1, 2022 (with early adoption permitted), representing a one year extension from the original effective date of January 1, 2021. As a result of the COVID-19 pandemic, the FASB voted in June 2020 to tentatively defer for an additional one year the current effective date of ASU 2018-12 from January 1, 2022 to January 1, 2023, and to provide transition relief to facilitate the early adoption of the ASU. Subsequently in July 2020, the FASB issued a proposed ASU with a comment deadline of August 24, 2020 to obtain additional feedback on the tentative decisions, which are expected to be finalized during the third quarter of 2020. The transition relief would allow large calendar-year public companies that early adopt ASU 2018-12 to apply the guidance as of January 1, 2021 (and record transition adjustments as of January 1, 2021) in the 2022 financial statements. Companies that do not early adopt ASU 2018-12 would also apply the guidance as of January 1, 2021 (and record transition adjustments as of January 1, 2021) in the 2023 financial statements. ASU 2018-12 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.
|
Investments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 $14.3 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Duration Of Gross Unrealized Losses On Fixed Maturity Securities | The following table sets forth the fair value and gross unrealized losses on available-for-sale fixed maturity securities without an allowance for credit 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 date indicated:
The following table sets forth the fair value and gross unrealized losses on fixed maturity securities aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the date indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 write-downs, impairments and the allowance for credit losses of fixed maturities, for the periods indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 the activity in the allowance for credit losses for fixed maturity securities, as of the date indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Mortgage and Other Loans | The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivable Credit Quality Indicators | The following tables set forth key credit quality indicators based upon the recorded investment gross of allowance for credit losses, as of the date indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Invested Assets | The following table sets forth the composition of “Other invested assets,” as of the dates indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Investment Income | The following table sets forth the composition of “Accrued investment income,” as of the date 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 and (Losses) on Investments | The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated:
|
Derivative Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 value of derivative contracts prior to taking into account the netting effects of master netting agreements and cash collateral.
(2) Recorded in “Other invested assets”, “Other liabilities”, and "Payables to parent and affiliates" on the Unaudited Interim Statements of Financial Position.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
Fair Value of Assets and Liabilities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Inputs, Assets and Liabilities, Quantitative Information | The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments.
|
Reinsurance (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 June 30, 2020 and December 31, 2019 were as follows:
(4) Includes $214.3 million and $60.4 million of unaffiliated activity as of June 30, 2020 and December 31, 2019, respectively.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance Recoverables by Counterparty | Reinsurance recoverables by counterparty are broken out below:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 and six months ended June 30, were as follows:
(2) Includes $(0.5) million and $(0.1) million of unaffiliated activity for the three months ended June 30, 2020 and 2019, respectively, and $(0.4) million and $(0.1) million for the six months ended June 30, 2020 and 2019, respectively.
|
Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | The balance of and changes in each component of AOCI as of and for the six months ended June 30, 2020 and 2019 are as follows:
(1) Includes cash flow hedges of $68 million and $0 million as of June 30, 2020 and December 31, 2019, respectively, and $0 million and $(4) million as of June 30, 2019 and December 31, 2018, respectively.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of Accumulated Other Comprehensive Income (Loss)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses Net Unrealized Investment Gain (Loss) AOCI Rollforward | The amounts for the periods indicated below, split between amounts related to available-for-sale fixed maturity securities on which an allowance for credit losses has been recognized, and all other net unrealized investment gains (losses), are as follows: Net Unrealized Investment Gains (Losses) on Available-for-Sale Fixed Maturity Securities on which an allowance for credit losses has been recognized
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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.
|
Related Party Transactions (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Affiliated Commercial Mortgage Loan | The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Affiliated Asset Transfer | The table below shows affiliated asset trades for the six months ended June 30, 2020 and for the year ended December 31, 2019.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Affiliated Entity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Affiliated Notes Receivables | Affiliated notes receivable included in "Receivables from parent and affiliates" at June 30, 2020 and December 31, 2019 were as follows:
(1) All notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Affiliated Commercial Mortgage Loan | The affiliated commercial mortgage loan included in "Commercial mortgage and other loans" at June 30, 2020 was as follow:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Agreements | The following table provides the breakout of the Company's short and long-term debt to affiliates as of June 30, 2020 and December 31, 2019:
|
Significant Accounting Policies and Pronouncements Significant Accounting Policies and Pronouncements (Narrative) (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Jan. 01, 2020 |
Dec. 31, 2019 |
---|---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ (2,625,087) | $ (46,693) | |
Cumulative Effect Adjustment Upon Adoption | ASU 2016-13 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 1,400 |
Investments (Fixed Maturities Securities Excluding Investments Classified as Trading) (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 14,517,513 | $ 12,465,746 |
Allowance for Credit Losses | 982 | |
Fair Value | 16,894,879 | 13,202,365 |
Fixed maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 14,517,513 | 12,465,746 |
Gross Unrealized Gains | 2,448,803 | 792,306 |
Gross Unrealized Losses | 70,455 | 55,687 |
Allowance for Credit Losses | 982 | |
Fair Value | 16,894,879 | 13,202,365 |
Fixed maturities | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,209,338 | 6,667,347 |
Gross Unrealized Gains | 1,959,308 | 491,943 |
Gross Unrealized Losses | 10,467 | 39,466 |
Allowance for Credit Losses | 0 | |
Fair Value | 9,158,179 | 7,119,824 |
Fixed maturities | Obligations of U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 244,211 | 252,304 |
Gross Unrealized Gains | 15,004 | 7,814 |
Gross Unrealized Losses | 5 | 436 |
Allowance for Credit Losses | 0 | |
Fair Value | 259,210 | 259,682 |
Fixed maturities | Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 161,316 | 203,386 |
Gross Unrealized Gains | 19,384 | 19,518 |
Gross Unrealized Losses | 25 | 20 |
Allowance for Credit Losses | 0 | |
Fair Value | 180,675 | 222,884 |
Fixed maturities | U.S. public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,552,065 | 1,615,060 |
Gross Unrealized Gains | 246,280 | 126,947 |
Gross Unrealized Losses | 7,499 | 1,331 |
Allowance for Credit Losses | 0 | |
Fair Value | 2,790,846 | 1,740,676 |
Fixed maturities | U.S. private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,458,519 | 1,159,962 |
Gross Unrealized Gains | 87,180 | 50,720 |
Gross Unrealized Losses | 8,102 | 3,343 |
Allowance for Credit Losses | 0 | |
Fair Value | 1,537,597 | 1,207,339 |
Fixed maturities | Foreign public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 317,646 | 321,111 |
Gross Unrealized Gains | 20,654 | 16,989 |
Gross Unrealized Losses | 7,671 | 113 |
Allowance for Credit Losses | 0 | |
Fair Value | 330,629 | 337,987 |
Fixed maturities | Foreign private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,231,622 | 1,171,411 |
Gross Unrealized Gains | 35,456 | 50,069 |
Gross Unrealized Losses | 27,817 | 7,995 |
Allowance for Credit Losses | 982 | |
Fair Value | 1,238,279 | 1,213,485 |
Fixed maturities | Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 621,254 | 443,767 |
Gross Unrealized Gains | 6,735 | 3,405 |
Gross Unrealized Losses | 8,846 | 2,734 |
Allowance for Credit Losses | 0 | |
Fair Value | 619,143 | 444,438 |
Fixed maturities | Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 647,722 | 557,584 |
Gross Unrealized Gains | 52,733 | 20,941 |
Gross Unrealized Losses | 20 | 236 |
Allowance for Credit Losses | 0 | |
Fair Value | 700,435 | 578,289 |
Fixed maturities | Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 73,820 | 73,814 |
Gross Unrealized Gains | 6,069 | 3,960 |
Gross Unrealized Losses | 3 | 13 |
Allowance for Credit Losses | 0 | |
Fair Value | $ 79,886 | 77,761 |
OTTI | Fixed maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | (20) | |
Net Unrealized Gains (Losses) | 14,300 | |
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 | |
OTTI | Fixed maturities | Obligations of U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | |
OTTI | Fixed maturities | Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | |
OTTI | Fixed maturities | U.S. public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | |
OTTI | Fixed maturities | U.S. private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | |
OTTI | Fixed maturities | Foreign public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | |
OTTI | Fixed maturities | Foreign private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | |
OTTI | Fixed maturities | Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | (20) | |
OTTI | Fixed maturities | Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | |
OTTI | Fixed maturities | Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | $ 0 |
Investments (Fair Value and Losses by Investment Category and Length of Time in a Loss Position) (Details) - Fixed maturities - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | $ 1,538,273 | $ 1,928,598 |
Less than Twelve Months, Gross Unrealized Losses | 50,518 | 45,616 |
Twelve Months or More, Fair Value | 357,070 | 408,904 |
Twelve Months or More, Gross Unrealized Losses | 19,932 | 10,071 |
Total, Fair Value | 1,895,343 | 2,337,502 |
Total, Gross Unrealized Losses | 70,450 | 55,687 |
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 | 539,420 | 1,336,007 |
Less than Twelve Months, Gross Unrealized Losses | 10,467 | 39,456 |
Twelve Months or More, Fair Value | 0 | 5,855 |
Twelve Months or More, Gross Unrealized Losses | 0 | 10 |
Total, Fair Value | 539,420 | 1,341,862 |
Total, Gross Unrealized Losses | 10,467 | 39,466 |
Obligations of U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 3,084 | 97,752 |
Less than Twelve Months, Gross Unrealized Losses | 5 | 436 |
Twelve Months or More, Fair Value | 0 | 0 |
Twelve Months or More, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 3,084 | 97,752 |
Total, Gross Unrealized Losses | 5 | 436 |
Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 368 | 804 |
Less than Twelve Months, Gross Unrealized Losses | 14 | 13 |
Twelve Months or More, Fair Value | 81 | 132 |
Twelve Months or More, Gross Unrealized Losses | 11 | 7 |
Total, Fair Value | 449 | 936 |
Total, Gross Unrealized Losses | 25 | 20 |
U.S. public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 220,713 | 93,147 |
Less than Twelve Months, Gross Unrealized Losses | 6,981 | 870 |
Twelve Months or More, Fair Value | 2,332 | 15,491 |
Twelve Months or More, Gross Unrealized Losses | 518 | 461 |
Total, Fair Value | 223,045 | 108,638 |
Total, Gross Unrealized Losses | 7,499 | 1,331 |
U.S. private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 124,703 | 82,709 |
Less than Twelve Months, Gross Unrealized Losses | 6,429 | 2,111 |
Twelve Months or More, Fair Value | 19,376 | 59,797 |
Twelve Months or More, Gross Unrealized Losses | 1,673 | 1,232 |
Total, Fair Value | 144,079 | 142,506 |
Total, Gross Unrealized Losses | 8,102 | 3,343 |
Foreign public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 63,792 | 50,150 |
Less than Twelve Months, Gross Unrealized Losses | 7,671 | 113 |
Twelve Months or More, Fair Value | 0 | 0 |
Twelve Months or More, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 63,792 | 50,150 |
Total, Gross Unrealized Losses | 7,671 | 113 |
Foreign private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 412,032 | 97,414 |
Less than Twelve Months, Gross Unrealized Losses | 15,832 | 1,652 |
Twelve Months or More, Fair Value | 118,199 | 91,863 |
Twelve Months or More, Gross Unrealized Losses | 11,980 | 6,343 |
Total, Fair Value | 530,231 | 189,277 |
Total, Gross Unrealized Losses | 27,812 | 7,995 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 170,685 | 103,911 |
Less than Twelve Months, Gross Unrealized Losses | 3,099 | 717 |
Twelve Months or More, Fair Value | 216,998 | 235,759 |
Twelve Months or More, Gross Unrealized Losses | 5,747 | 2,017 |
Total, Fair Value | 387,683 | 339,670 |
Total, Gross Unrealized Losses | 8,846 | 2,734 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 3,476 | 66,071 |
Less than Twelve Months, Gross Unrealized Losses | 20 | 236 |
Twelve Months or More, Fair Value | 0 | 0 |
Twelve Months or More, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 3,476 | 66,071 |
Total, Gross Unrealized Losses | 20 | 236 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 0 | 633 |
Less than Twelve Months, Gross Unrealized Losses | 0 | 12 |
Twelve Months or More, Fair Value | 84 | 7 |
Twelve Months or More, Gross Unrealized Losses | 3 | 1 |
Total, Fair Value | 84 | 640 |
Total, Gross Unrealized Losses | $ 3 | $ 13 |
Investments (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
Schedule of Investments [Line Items] | |||||
Loans Acquired | $ 0 | $ 0 | $ 0 | $ 0 | |
Loans Sold | 0 | 0 | 0 | 101,000 | |
Commercial mortgage and others loans Purchased with Credit Deterioration | 0 | ||||
Accrued Investment Income Write Down | 0 | 0 | |||
Repurchase Agreements | 0 | 0 | $ 0 | ||
Securities Lending | $ 0 | $ 0 | $ 0 | ||
Commercial mortgage loans, Percentage | 100.00% | 100.00% | 100.00% | ||
Loans on non-accrual status recognized in interest income | $ 0 | $ 0 | |||
Loans on non accrual status, do not have allowance for credit losses | 4,300 | ||||
Fixed maturities purchased with credit deterioration | 0 | ||||
Fixed maturities | |||||
Schedule of Investments [Line Items] | |||||
Gross Unrealized Losses | 70,450 | 70,450 | $ 55,687 | ||
Gross unrealized losses of twelve months or more concentrated in various sectors | 19,932 | 19,932 | 10,071 | ||
NAIC high or highest quality rating | Fixed maturities | |||||
Schedule of Investments [Line Items] | |||||
Gross Unrealized Losses | 43,800 | 43,800 | 52,500 | ||
NAIC other than high or highest quality rating | Fixed maturities | |||||
Schedule of Investments [Line Items] | |||||
Gross Unrealized Losses | $ 26,600 | $ 26,600 | 3,200 | ||
California | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 24.00% | 24.00% | |||
Texas | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 12.00% | 12.00% | |||
New York | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 11.00% | 11.00% | |||
Europe | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 15.00% | 15.00% | |||
Australia | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 3.00% | 3.00% | |||
Other Income | Equity Securities | |||||
Schedule of Investments [Line Items] | |||||
Unrealized Gain (Loss) on Investments | $ 3,300 | $ 600 | $ 1,700 | $ 1,500 | |
Fixed maturities | |||||
Schedule of Investments [Line Items] | |||||
Gross unrealized losses of twelve months or more concentrated in various sectors | $ 19,900 | $ 19,900 | $ 10,100 |
Investments (Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturities) (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Amortized Cost: | ||
Due in one or less | $ 234,713 | |
Due after one year through five years | 1,202,685 | |
Due after five years through ten years | 2,187,012 | |
Due after ten years | 9,550,307 | |
Amortized Cost | 14,517,513 | $ 12,465,746 |
Fair Value | ||
Due in one year or less | 237,640 | |
Due after one year through five years | 1,243,281 | |
Due after five years through ten years | 2,301,245 | |
Due after ten years | 11,713,249 | |
Fair Value | 16,894,879 | 13,202,365 |
Asset-backed securities | ||
Amortized Cost: | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 621,254 | |
Fair Value | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 619,143 | |
Commercial mortgage-backed securities | ||
Amortized Cost: | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 647,722 | |
Fair Value | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 700,435 | |
Residential mortgage-backed securities | ||
Amortized Cost: | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 73,820 | |
Fair Value | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 79,886 | |
Fixed maturities | ||
Amortized Cost: | ||
Amortized Cost | 14,517,513 | 12,465,746 |
Fair Value | ||
Fair Value | 16,894,879 | 13,202,365 |
Fixed maturities | Asset-backed securities | ||
Amortized Cost: | ||
Amortized Cost | 621,254 | 443,767 |
Fair Value | ||
Fair Value | 619,143 | 444,438 |
Fixed maturities | Commercial mortgage-backed securities | ||
Amortized Cost: | ||
Amortized Cost | 647,722 | 557,584 |
Fair Value | ||
Fair Value | 700,435 | 578,289 |
Fixed maturities | Residential mortgage-backed securities | ||
Amortized Cost: | ||
Amortized Cost | 73,820 | 73,814 |
Fair Value | ||
Fair Value | $ 79,886 | $ 77,761 |
Investments (Fixed Maturities Securities Proceeds) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from maturities/prepayments | $ 464,413 | $ 404,235 | ||
Fixed maturities | Available-for-sale | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from sales | $ 136,699 | $ 21,640 | 332,677 | 153,409 |
Proceeds from maturities/prepayments | 53,821 | 109,974 | 131,901 | 254,417 |
Gross investment gains from sales and maturities | 10,774 | (983) | 18,255 | 967 |
Gross investment losses from sales and maturities | (1,310) | (1,985) | (1,490) | (2,641) |
OTTI recognized in earnings | $ 0 | (2,025) | ||
Write-downs recognized in earnings | 0 | (693) | ||
(Addition to) release of allowance for credit losses | $ (796) | (982) | ||
Non-cash related proceeds | $ 200 | $ 3,600 |
Investments (Credit Losses Recognized In Earnings on Fixed Maturity Securities Held by the Company) (Details) - Fixed maturities $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2020
USD ($)
| |
Debt Securities, Available-for-sale [Line Items] | |
Balance, beginning of year | $ 0 |
Additions to allowance for credit losses not previously recorded | 1,168 |
Reductions for securities sold during the period | (2) |
Addition (reductions) on securities with previous allowance | (184) |
Balance, end of period | 982 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | |
Debt Securities, Available-for-sale [Line Items] | |
Balance, beginning of year | 0 |
Additions to allowance for credit losses not previously recorded | 0 |
Reductions for securities sold during the period | 0 |
Addition (reductions) on securities with previous allowance | 0 |
Balance, end of period | 0 |
Foreign government bonds | |
Debt Securities, Available-for-sale [Line Items] | |
Balance, beginning of year | 0 |
Additions to allowance for credit losses not previously recorded | 0 |
Reductions for securities sold during the period | 0 |
Addition (reductions) on securities with previous allowance | 0 |
Balance, end of period | 0 |
U.S. and Foreign Corporate Securities | |
Debt Securities, Available-for-sale [Line Items] | |
Balance, beginning of year | 0 |
Additions to allowance for credit losses not previously recorded | 1,168 |
Reductions for securities sold during the period | (2) |
Addition (reductions) on securities with previous allowance | (184) |
Balance, end of period | 982 |
Asset-backed securities | |
Debt Securities, Available-for-sale [Line Items] | |
Balance, beginning of year | 0 |
Additions to allowance for credit losses not previously recorded | 0 |
Reductions for securities sold during the period | 0 |
Addition (reductions) on securities with previous allowance | 0 |
Balance, end of period | 0 |
Commercial mortgage-backed securities | |
Debt Securities, Available-for-sale [Line Items] | |
Balance, beginning of year | 0 |
Additions to allowance for credit losses not previously recorded | 0 |
Reductions for securities sold during the period | 0 |
Addition (reductions) on securities with previous allowance | 0 |
Balance, end of period | 0 |
Residential mortgage-backed securities | |
Debt Securities, Available-for-sale [Line Items] | |
Balance, beginning of year | 0 |
Additions to allowance for credit losses not previously recorded | 0 |
Reductions for securities sold during the period | 0 |
Addition (reductions) on securities with previous allowance | 0 |
Balance, end of period | $ 0 |
Investments (Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 1,647,291 | $ 1,474,185 |
Commercial mortgage loans, Percentage | 100.00% | 100.00% |
Allowance for credit losses | $ (6,879) | $ (2,663) |
Total net other loans | 3,908 | 0 |
Allowance for credit losses, other loans | 0 | 0 |
Total commercial mortgage and other loans | 1,644,320 | 1,471,522 |
Commercial Mortgage and Agricultural Loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Total net other loans | 1,640,412 | 1,471,522 |
Other Collateralized Loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Other loans | 3,908 | 0 |
Apartments and multi-family | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 367,359 | $ 272,150 |
Commercial mortgage loans, Percentage | 22.30% | 18.50% |
Hospitality | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 16,705 | $ 16,819 |
Commercial mortgage loans, Percentage | 1.00% | 1.10% |
Industrial | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 498,323 | $ 464,528 |
Commercial mortgage loans, Percentage | 30.30% | 31.50% |
Office | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 359,595 | $ 372,823 |
Commercial mortgage loans, Percentage | 21.80% | 25.30% |
Other | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 182,189 | $ 156,768 |
Commercial mortgage loans, Percentage | 11.10% | 10.60% |
Retail | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 130,606 | $ 131,051 |
Commercial mortgage loans, Percentage | 7.90% | 8.90% |
Commercial Mortgage Loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 1,554,777 | $ 1,414,139 |
Commercial mortgage loans, Percentage | 94.40% | 95.90% |
Agricultural property loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 92,514 | $ 60,046 |
Commercial mortgage loans, Percentage | 5.60% | 4.10% |
Investments (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2020 |
Dec. 31, 2019 |
|
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | $ 2,663 | $ 2,896 |
Addition to (release of) allowance for credit losses | (233) | |
Cumulative effect of adoption of ASU 2016-13 | 3,157 | |
Addition to (release of) allowance for expected losses | 1,059 | |
Total ending balance | 6,879 | 2,663 |
Commercial Mortgage Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | 2,622 | 2,861 |
Addition to (release of) allowance for credit losses | (239) | |
Cumulative effect of adoption of ASU 2016-13 | 3,118 | |
Addition to (release of) allowance for expected losses | 961 | |
Total ending balance | 6,701 | 2,622 |
Agricultural Property Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | 41 | 35 |
Addition to (release of) allowance for credit losses | 6 | |
Cumulative effect of adoption of ASU 2016-13 | 39 | |
Addition to (release of) allowance for expected losses | 98 | |
Total ending balance | 178 | 41 |
Other Collateralized Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | 0 | 0 |
Addition to (release of) allowance for credit losses | 0 | |
Cumulative effect of adoption of ASU 2016-13 | 0 | |
Addition to (release of) allowance for expected losses | 0 | |
Total ending balance | $ 0 | $ 0 |
Investments (Loan-to-value ratios) (Details) $ in Thousands |
Jun. 30, 2020
USD ($)
|
---|---|
Commercial Mortgage Loans | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | $ 173,149 |
2019 | 348,988 |
2018 | 106,494 |
2017 | 280,983 |
2016 | 284,788 |
Prior | 360,375 |
Revolving Loans | 0 |
Recording investment gross of allowance for credit losses | 1,554,777 |
Agricultural Property Loans | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 34,465 |
2019 | 13,798 |
2018 | 1,261 |
2017 | 8,553 |
2016 | 1,180 |
Prior | 33,257 |
Revolving Loans | 0 |
Recording investment gross of allowance for credit losses | 92,514 |
Commercial Mortgage and Agricultural Loans | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 207,614 |
2019 | 362,786 |
2018 | 107,755 |
2017 | 289,536 |
2016 | 285,968 |
Prior | 393,632 |
Revolving Loans | 0 |
Recording investment gross of allowance for credit losses | 1,647,291 |
0%-59.99% | Commercial Mortgage Loans | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 0 |
2019 | 115,190 |
2018 | 26,510 |
2017 | 82,913 |
2016 | 162,983 |
Prior | 247,331 |
Revolving Loans | 0 |
Recording investment gross of allowance for credit losses | 634,927 |
0%-59.99% | Agricultural Property Loans | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 34,465 |
2019 | 13,798 |
2018 | 1,261 |
2017 | 8,553 |
2016 | 1,180 |
Prior | 33,257 |
Revolving Loans | 0 |
Recording investment gross of allowance for credit losses | 92,514 |
0%-59.99% | Commercial Mortgage and Agricultural Loans | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 34,465 |
2019 | 128,988 |
2018 | 27,771 |
2017 | 91,466 |
2016 | 164,163 |
Prior | 280,588 |
Revolving Loans | 0 |
Recording investment gross of allowance for credit losses | 727,441 |
60%-69.99% | Commercial Mortgage Loans | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 125,732 |
2019 | 165,219 |
2018 | 32,186 |
2017 | 121,512 |
2016 | 93,427 |
Prior | 104,153 |
Revolving Loans | 0 |
Recording investment gross of allowance for credit losses | 642,229 |
60%-69.99% | Agricultural Property Loans | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 0 |
Revolving Loans | 0 |
Recording investment gross of allowance for credit losses | 0 |
60%-69.99% | Commercial Mortgage and Agricultural Loans | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 125,732 |
2019 | 165,219 |
2018 | 32,186 |
2017 | 121,512 |
2016 | 93,427 |
Prior | 104,153 |
Revolving Loans | 0 |
Recording investment gross of allowance for credit losses | 642,229 |
70%-79.99% | Commercial Mortgage Loans | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 47,417 |
2019 | 68,579 |
2018 | 47,798 |
2017 | 76,558 |
2016 | 28,378 |
Prior | 7,906 |
Revolving Loans | 0 |
Recording investment gross of allowance for credit losses | 276,636 |
70%-79.99% | Agricultural Property Loans | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 0 |
Revolving Loans | 0 |
Recording investment gross of allowance for credit losses | 0 |
70%-79.99% | Commercial Mortgage and Agricultural Loans | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 47,417 |
2019 | 68,579 |
2018 | 47,798 |
2017 | 76,558 |
2016 | 28,378 |
Prior | 7,906 |
Revolving Loans | 0 |
Recording investment gross of allowance for credit losses | 276,636 |
80% or greater | Commercial Mortgage Loans | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 985 |
Revolving Loans | 0 |
Recording investment gross of allowance for credit losses | 985 |
80% or greater | Agricultural Property Loans | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 0 |
Revolving Loans | 0 |
Recording investment gross of allowance for credit losses | 0 |
80% or greater | Commercial Mortgage and Agricultural Loans | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 985 |
Revolving Loans | 0 |
Recording investment gross of allowance for credit losses | $ 985 |
Investments (Debt Service Coverage Ratio) (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | $ 1,554,777 | $ 1,414,139 |
Commercial Mortgage Loans | ≥ 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 1,501,432 | 1,361,868 |
Commercial Mortgage Loans | 1.0X to 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 50,597 | 52,271 |
Commercial Mortgage Loans | Less than 1.0X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 2,748 | 0 |
Agricultural Property Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 92,514 | 60,046 |
Agricultural Property Loans | ≥ 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 88,916 | 56,437 |
Agricultural Property Loans | 1.0X to 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 0 | 0 |
Agricultural Property Loans | Less than 1.0X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | $ 3,598 | $ 3,609 |
Investments (Analysis of Past Due Commercial Mortgage, Agricultural and Other Loans) (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Financing Receivable, Past Due [Line Items] | ||
Current | $ 1,645,692 | $ 1,474,185 |
Total Loans | 1,651,199 | 1,474,185 |
Non-Accrual Status | 4,277 | 0 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 1,230 | 0 |
90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 4,277 | 0 |
Commercial Mortgage Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 1,553,547 | 1,414,139 |
Total Loans | 1,554,777 | 1,414,139 |
Non-Accrual Status | 0 | 0 |
Commercial Mortgage Loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial Mortgage Loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 1,230 | 0 |
Commercial Mortgage Loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Agricultural Property Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 88,237 | 60,046 |
Total Loans | 92,514 | 60,046 |
Non-Accrual Status | 4,277 | 0 |
Agricultural Property Loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Agricultural Property Loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Agricultural Property Loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 4,277 | 0 |
Other collateralized loans | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 3,908 | |
Total Loans | 3,908 | |
Non-Accrual Status | 0 | |
Other collateralized loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | |
Other collateralized loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | |
Other collateralized loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | |
Loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Interest | $ 0 | $ 0 |
Investments (Other Invested Assets) (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Other Invested Assets [Line Items] | ||
Other invested assets | $ 529,040 | $ 474,013 |
LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 526,167 | 474,011 |
Derivative Instruments | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 2,873 | 2 |
Equity Method | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 515,515 | 463,521 |
Equity Method | Private equity | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 22,283 | 23,414 |
Equity Method | Hedge funds | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 313,198 | 273,615 |
Equity Method | Real estate-related | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 180,034 | 166,492 |
Fair Value | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 10,652 | 10,490 |
Fair Value | Private equity | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 4,116 | 4,115 |
Fair Value | Hedge funds | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 174 | 194 |
Fair Value | Real estate-related | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | $ 6,362 | $ 6,181 |
Investments (Accrued Investment Income) (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Net Investment Income | ||
Accrued investment income | $ 116,317 | $ 102,724 |
Fixed maturities | ||
Net Investment Income | ||
Accrued investment income | 108,200 | |
Equity Securities | ||
Net Investment Income | ||
Accrued investment income | 1 | |
Commercial mortgage and other loans | ||
Net Investment Income | ||
Accrued investment income | 4,585 | |
Policy loans | ||
Net Investment Income | ||
Accrued investment income | 10 | |
Other | ||
Net Investment Income | ||
Accrued investment income | 259 | |
Short-term investments and cash equivalents | ||
Net Investment Income | ||
Accrued investment income | $ 3,262 |
Investments (Net Investment Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | $ 165,211 | $ 137,372 | $ 294,641 | $ 266,394 |
Less: investment expenses | (6,785) | (5,400) | (13,178) | (9,353) |
Net investment income | 158,426 | 131,972 | 281,463 | 257,041 |
Equity securities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 64 | 73 | 131 | 146 |
Commercial mortgage and other loans | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 15,437 | 13,168 | 28,619 | 24,900 |
Policy loans | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 229 | 218 | 356 | 277 |
Other invested assets | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 18,579 | 7,765 | 5,866 | 16,607 |
Short-term investments and cash equivalents | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 18,516 | 16,766 | 43,968 | 30,506 |
Available-for-sale | Fixed maturities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 109,465 | 96,829 | 210,199 | 189,040 |
Trading | Fixed maturities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | $ 2,921 | $ 2,553 | $ 5,502 | $ 4,918 |
Investments (Realized Investment Gains Losses, Net) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | $ (3,375,764) | $ (894,215) | $ (4,133,455) | $ (2,236,434) |
Fixed maturities | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | 8,668 | (2,968) | 15,090 | (3,699) |
Commercial mortgage and other loans | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | (1,394) | (461) | (1,736) | (1,242) |
Derivatives | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | (3,386,059) | (890,952) | (4,150,599) | (2,231,880) |
Other invested assets | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | 970 | 0 | 1,470 | 0 |
Short-term investments and cash equivalents | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | $ 2,051 | $ 166 | $ 2,320 | $ 387 |
Investments (Net Unrealized Gains Losses on Investments by Asset Class) (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | $ 2,450,336 | $ 736,930 |
Fixed maturities | Available-for-sale | OTTI | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 14,309 | |
Fixed maturities | Available-for-sale | All other | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 722,310 | |
Fixed maturities | Available-for-sale | With an allowance | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | (47) | |
Fixed maturities | Available-for-sale | Without an allowance | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 2,378,395 | |
Derivatives designated as cash flow hedges | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 68,175 | (287) |
Affiliated notes | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | $ 3,813 | $ 598 |
Derivative Instruments (Gross Notional Amount and Fair Value of Derivatives Contracts) (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Derivative [Line Items] | ||
Notional | $ 187,180,171 | $ 137,753,691 |
Assets | 18,955,257 | 7,324,051 |
Liabilities | (8,471,972) | (3,206,949) |
Future policy benefits | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | (23,999,000) | (11,823,000) |
Policyholders' account balances | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | (226,000) | (197,000) |
Other assets | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | 27,000 | 8,000 |
Other liabilities | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | (11,000) | 0 |
Reinsurance Recoverables (Payables) | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net | 593,000 | 350,000 |
Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 1,264,012 | 1,172,899 |
Assets | 106,587 | 39,019 |
Liabilities | (1,326) | (26,511) |
Derivatives Designated as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Notional | 1,264,012 | 1,172,899 |
Assets | 106,587 | 39,019 |
Liabilities | (1,326) | (26,511) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 185,916,159 | 136,580,792 |
Assets | 18,848,670 | 7,285,032 |
Liabilities | (8,470,646) | (3,180,438) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Futures | ||
Derivative [Line Items] | ||
Notional | 5,489,400 | 3,857,700 |
Assets | 2,606 | 638 |
Liabilities | (7,609) | (5,872) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional | 103,962,850 | 88,557,425 |
Assets | 16,394,336 | 6,598,625 |
Liabilities | (6,850,128) | (1,997,944) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Options | ||
Derivative [Line Items] | ||
Notional | 10,648,000 | 12,583,000 |
Assets | 1,622,018 | 283,386 |
Liabilities | (191,759) | (172,085) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Forwards | ||
Derivative [Line Items] | ||
Notional | 496,300 | 959,772 |
Assets | 9,051 | 24,487 |
Liabilities | 0 | (4,185) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Forwards | ||
Derivative [Line Items] | ||
Notional | 18,874 | 16,683 |
Assets | 48 | 0 |
Liabilities | (46) | (394) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Notional | 187,151 | 234,767 |
Assets | 27,400 | 11,482 |
Liabilities | 0 | (663) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Default Swap | ||
Derivative [Line Items] | ||
Notional | 239,173 | 0 |
Assets | 182 | 0 |
Liabilities | (2,311) | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Futures | ||
Derivative [Line Items] | ||
Notional | 7,018,091 | 1,191,237 |
Assets | 1,197 | 0 |
Liabilities | (83,449) | (2,638) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Total Return Swaps | ||
Derivative [Line Items] | ||
Notional | 24,138,579 | 16,314,165 |
Assets | 277,250 | 36,692 |
Liabilities | (971,604) | (573,957) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Options | ||
Derivative [Line Items] | ||
Notional | 33,717,741 | 12,866,043 |
Assets | 514,582 | 329,722 |
Liabilities | $ (363,740) | $ (422,700) |
Derivative Instruments (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Derivatives Assets | ||
Gross Amounts of Recognized Financial Instruments | $ 18,955,257 | $ 7,324,051 |
Gross Amounts Offset in the Statements of Financial Position | (18,952,384) | (7,324,049) |
Net Amounts Presented in the Statements of Financial Position | 2,873 | 2 |
Financial Instruments/Collateral | (2,873) | 0 |
Net Amount | 0 | 2 |
Securities Purchased under Agreements to Resell | ||
Gross Amounts of Recognized Financial Instruments | 1,016,505 | 302,000 |
Gross Amounts Offset in the Statements of Financial Position | 0 | 0 |
Net Amounts Presented in the Statements of Financial Position | 1,016,505 | 302,000 |
Financial Instruments/Collateral | (1,016,505) | (302,000) |
Net Amount | 0 | 0 |
Total Assets | ||
Gross Amounts of Recognized Financial Instruments | 19,971,762 | 7,626,051 |
Gross Amounts Offset in the Statements of Financial Position | (18,952,384) | (7,324,049) |
Net Amounts Presented in the Statements of Financial Position | 1,019,378 | 302,002 |
Financial Instruments/Collateral | (1,019,378) | (302,000) |
Net Amount | 0 | 2 |
Derivatives Liabilities | ||
Gross Amounts of Recognized Financial Instruments | 8,471,972 | 3,206,949 |
Gross Amounts Offset in the Statements of Financial Position | (7,947,699) | (3,053,132) |
Net Amounts Presented in the Statements of Financial Position | 524,273 | 153,817 |
Financial Instruments/Collateral | 0 | (820) |
Net Amount | 524,273 | 152,997 |
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 | 8,471,972 | 3,206,949 |
Gross amounts Offset in the Statements of Financial Position Agreements to Repurchase, Securities Loaned, Asset | (7,947,699) | (3,053,132) |
Net Amounts Presented in the Statements of Financial Position | 524,273 | 153,817 |
Financial Instruments/Collateral | 0 | (820) |
Net Amount | $ 524,273 | $ 152,997 |
Derivative Instruments (Financial Statement Classification and Impact of Derivatives Used in Qualifying and Non-qualifying Hedge Relationships) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Net Realized Investments Gain Loss | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | $ (3,386,059) | $ (890,952) | $ (4,150,599) | $ (2,231,880) |
Net investment income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 4,668 | 2,977 | 8,928 | 5,710 |
Other Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (9,650) | 1,973 | 7,364 | 418 |
Accumulated Other Comprehensive Income (Loss) | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (34,394) | 1,882 | 68,462 | 3,505 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Net Realized Investments Gain Loss | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 2,712 | (399) | 4,567 | (720) |
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 | 4,668 | 2,977 | 8,928 | 5,710 |
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 | (9,648) | 1,956 | 7,295 | 398 |
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 | (34,394) | 1,882 | 68,462 | 3,505 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Net Realized Investments Gain Loss | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 2,712 | (399) | 4,567 | (720) |
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 | 4,668 | 2,977 | 8,928 | 5,710 |
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 | (9,648) | 1,956 | 7,295 | 398 |
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 | (34,394) | 1,882 | 68,462 | 3,505 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Net Realized Investments Gain Loss | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (3,388,771) | (890,553) | (4,155,166) | (2,231,160) |
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 | 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 | (2) | 17 | 69 | 20 |
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 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Net Realized Investments Gain Loss | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (79,874) | 1,764,300 | 6,970,027 | 2,756,745 |
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 | 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 | 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 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Net Realized Investments Gain Loss | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 57 | 435 | 1,087 | 248 |
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 | 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 | 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 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Net Realized Investments Gain Loss | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (11,767) | 6,784 | 30,082 | 8,616 |
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 | 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 | (2) | 17 | 69 | 20 |
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 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Risk Contract | Net Realized Investments Gain Loss | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1,629 | 1,579 | (5,528) | 1,577 |
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 | 0 | 0 | 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 | 0 | 0 | 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 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Net Realized Investments Gain Loss | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (4,830,379) | (583,113) | 184,909 | (2,233,223) |
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 | 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 | 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 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivative [Member] | Net Realized Investments Gain Loss | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1,531,563 | (2,080,538) | (11,335,743) | (2,765,123) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivative [Member] | Net investment income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivative [Member] | Other Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivative [Member] | Accumulated Other Comprehensive Income (Loss) | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Instruments (Current Period Cash Flow Hedges in AOCI (loss) before Taxes) (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2020
USD ($)
| |
Cash flow hedges in AOCI | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |
Balance, beginning | $ (287) |
Amount recorded in AOCI | 89,252 |
Amount reclassified into current period earnings | (20,790) |
Balance, ending | 68,175 |
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 | 89,252 |
Amount reclassified into current period earnings | $ (20,790) |
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2020 |
Dec. 31, 2019 |
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 18 | |
Credit Default Swaps Referencing Indices, Sell Protection | ||
Credit Derivatives | ||
Credit Derivative, Maximum Exposure, Undiscounted | 233 | $ 0 |
Credit Risk Derivatives, at Fair Value, Net | (2) | 0 |
Credit Default Swap, Buying Protection | ||
Credit Derivatives | ||
Credit Derivative, Maximum Exposure, Undiscounted | 6 | 0 |
Credit Risk Derivatives, at Fair Value, Net | 0 | $ 0 |
NAIC 4 | Credit Default Swaps Referencing Indices, Sell Protection | ||
Credit Derivatives | ||
Credit Derivative, Maximum Exposure, Undiscounted | $ 233 |
Fair Value of Assets and Liabilities (Balances of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
|||
---|---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, available-for-sale | $ 16,894,879 | $ 13,202,365 | |||
Fixed maturities trading | 620,449 | 383,198 | |||
Equity securities | 72,065 | 67,503 | |||
Short-term investments | 3,642,940 | 335,358 | |||
Other invested assets | 529,040 | 474,013 | |||
Other Assets | 312,198 | 139,933 | |||
Reinsurance recoverables | 860,518 | 621,510 | |||
Receivables from parent and affiliates | 89,092 | 62,765 | |||
Separate account assets | 29,379,668 | 32,665,431 | |||
TOTAL ASSETS | 67,516,468 | 58,834,997 | |||
Future policy benefits | 25,263,142 | 12,932,461 | |||
Policyholders’ account balances | 6,859,669 | 6,180,359 | |||
Payables to parent and affiliates | 480,793 | 185,156 | |||
Other Liabilities | 893,740 | [1] | 447,405 | ||
Total Liabilities | 63,741,187 | 53,307,642 | |||
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 | 23,999,000 | 11,823,000 | |||
Embedded Derivative, Fair Value of Embedded Derivative Gross Asset | 223,000 | 583,000 | |||
Embedded Derivative, Fair Value of Embedded Derivative Gross Liability | 24,222,000 | 12,406,000 | |||
Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, available-for-sale | 16,894,879 | 13,202,365 | |||
Fixed maturities trading | 620,449 | 383,198 | |||
Equity securities | 62,065 | 57,503 | |||
Short-term investments | 2,818,001 | 260,354 | |||
Cash equivalents | 4,544,970 | 1,805,605 | |||
Other invested assets | 2,873 | 2 | |||
Other Assets | 27,136 | 8,059 | |||
Reinsurance recoverables | 592,528 | 349,820 | |||
Receivables from parent and affiliates | 55,789 | 2,573 | |||
Subtotal excluding separate account assets | 25,618,690 | 16,069,479 | |||
Separate account assets | 29,379,668 | 32,665,431 | |||
TOTAL ASSETS | 54,998,358 | 48,734,910 | |||
Future policy benefits | 23,998,671 | 11,822,998 | |||
Policyholders’ account balances | 226,072 | 196,892 | |||
Payables to parent and affiliates | 435,822 | 145,947 | |||
Other Liabilities | 99,539 | 8,130 | |||
Total Liabilities | 24,760,104 | 12,173,967 | |||
Assets Netting | (18,952,384) | (7,324,049) | |||
Liabilities Netting | (7,947,699) | (3,053,132) | |||
Netting | (11,005,000) | (4,271,000) | |||
Fair Value, Measurements, Recurring | Other invested assets | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets Netting | (18,952,384) | (7,324,049) | |||
Fair Value, Measurements, Recurring | Payables to parent and affiliates | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Liabilities Netting | (7,945,093) | (3,052,493) | |||
Fair Value, Measurements, Recurring | Other liabilities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Liabilities Netting | (2,606) | (639) | |||
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 | 9,158,179 | 7,119,824 | |||
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 | 259,210 | 259,682 | |||
Fair Value, Measurements, Recurring | Foreign government | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, available-for-sale | 180,675 | 222,884 | |||
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 | 2,790,846 | 1,740,676 | |||
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 | 1,537,597 | 1,207,339 | |||
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 | 330,629 | 337,987 | |||
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 | 1,238,279 | 1,213,485 | |||
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 | 619,143 | 444,438 | |||
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 | 700,435 | 578,289 | |||
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 | 79,886 | 77,761 | |||
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 | 4,561 | 5,314 | |||
Short-term investments | 1,484,744 | 0 | |||
Cash equivalents | 2,691,682 | 150,631 | |||
Other invested assets | 3,803 | 639 | |||
Other Assets | 0 | 0 | |||
Reinsurance recoverables | 0 | 0 | |||
Receivables from parent and affiliates | 0 | 0 | |||
Subtotal excluding separate account assets | 4,184,790 | 156,584 | |||
Separate account assets | 0 | 0 | |||
TOTAL ASSETS | 4,184,790 | 156,584 | |||
Future policy benefits | 0 | 0 | |||
Policyholders’ account balances | 0 | 0 | |||
Payables to parent and affiliates | 0 | 0 | |||
Other Liabilities | 91,057 | 8,509 | |||
Total Liabilities | 91,057 | 8,509 | |||
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 | 16,741,146 | 13,068,726 | |||
Fixed maturities trading | 616,148 | 378,734 | |||
Equity securities | 52,262 | 46,942 | |||
Short-term investments | 1,333,257 | 260,354 | |||
Cash equivalents | 1,853,288 | 1,654,974 | |||
Other invested assets | 18,951,454 | 7,323,412 | |||
Other Assets | 0 | 0 | |||
Reinsurance recoverables | 53,405 | 47,006 | |||
Receivables from parent and affiliates | 55,789 | 2,573 | |||
Subtotal excluding separate account assets | 39,656,749 | 22,782,721 | |||
Separate account assets | 29,379,668 | 32,665,431 | |||
TOTAL ASSETS | 69,036,417 | 55,448,152 | |||
Future policy benefits | 0 | 0 | |||
Policyholders’ account balances | 0 | 0 | |||
Payables to parent and affiliates | 8,380,915 | 3,198,440 | |||
Other Liabilities | 11,088 | 260 | |||
Total Liabilities | 8,392,003 | 3,198,700 | |||
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 | 9,145,963 | 7,109,277 | |||
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 | 259,210 | 259,682 | |||
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 | 180,675 | 222,884 | |||
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 | 2,782,763 | 1,732,632 | |||
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 | 1,478,651 | 1,155,464 | |||
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 | 330,445 | 337,800 | |||
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 | 1,182,103 | 1,169,324 | |||
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 | 601,015 | 425,613 | |||
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 | 700,435 | 578,289 | |||
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 | 79,886 | 77,761 | |||
Fair Value, Measurements, Recurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, available-for-sale | 153,733 | 133,639 | |||
Fixed maturities trading | 4,301 | 4,464 | |||
Equity securities | 5,242 | 5,247 | |||
Short-term investments | 0 | 0 | |||
Cash equivalents | 0 | 0 | |||
Other invested assets | 0 | 0 | |||
Other Assets | 27,136 | 8,059 | |||
Reinsurance recoverables | 539,123 | 302,814 | |||
Receivables from parent and affiliates | 0 | 0 | |||
Subtotal excluding separate account assets | 729,535 | 454,223 | |||
Separate account assets | 0 | 0 | |||
TOTAL ASSETS | 729,535 | 454,223 | |||
Future policy benefits | 23,998,671 | 11,822,998 | |||
Policyholders’ account balances | 226,072 | 196,892 | |||
Payables to parent and affiliates | 0 | 0 | |||
Other Liabilities | 0 | 0 | |||
Total Liabilities | 24,224,743 | 12,019,890 | |||
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 | 12,216 | 10,547 | |||
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 | 8,083 | 8,044 | |||
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 | 58,946 | 51,875 | |||
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 | 184 | 187 | |||
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 | 56,176 | 44,161 | |||
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 | 18,128 | 18,825 | |||
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 | 0 | 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 | $ 10,700 | $ 10,500 | |||
|
Fair Value of Assets and Liabilities (Quantitative Info for Level 3 Inputs) (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2020 |
Dec. 31, 2019 |
|
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Corporate securities | $ 66,470 | $ 63,647 |
Future policy benefits | 25,263,142 | 12,932,461 |
Policyholders’ account balances | 6,859,669 | 6,180,359 |
Fair Value, Measurements, Recurring | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Future policy benefits | 23,998,671 | 11,822,998 |
Policyholders’ account balances | $ 226,072 | 196,892 |
Level 3 | Minimum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Fair Value Inputs, Policyholder Age | 45 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 | $ 23,998,671 | 11,822,998 |
Policyholders’ account balances | $ 226,072 | $ 196,892 |
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 | 0.17% | 0.10% |
Utilization rate | 39.00% | 43.00% |
Withdrawal rate (greater than maximum range) | 76.00% | 78.00% |
Mortality rate | 0.00% | 0.00% |
Equity volatility curve | 18.00% | 13.00% |
Level 3 | Internal | Minimum | Discounted cash flow | Policyholders' account balances | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 1.00% | 1.00% |
Spread over LIBOR | 0.17% | 0.10% |
Equity volatility curve | 6.00% | 6.00% |
Level 3 | Internal | Minimum | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 1.44% | 4.79% |
Level 3 | Internal | Minimum | Market comparables | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA multiples | 6.7 | |
Level 3 | Internal | Maximum | Discounted cash flow | Future policy benefits | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 20.00% | 18.00% |
Spread over LIBOR | 1.69% | 1.23% |
Utilization rate | 96.00% | 97.00% |
Withdrawal rate (greater than maximum range) | 100.00% | 100.00% |
Mortality rate | 15.00% | 15.00% |
Equity volatility curve | 29.00% | 23.00% |
Level 3 | Internal | Maximum | Discounted cash flow | Policyholders' account balances | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 42.00% | 42.00% |
Spread over LIBOR | 1.69% | 1.23% |
Equity volatility curve | 38.00% | 25.00% |
Level 3 | Internal | Maximum | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 25.00% | 20.00% |
Level 3 | Internal | Maximum | Market comparables | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA multiples | 6.7 | |
Level 3 | Internal | Weighted Average | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 6.15% | 8.66% |
Level 3 | Internal | Weighted Average | Market comparables | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA multiples | 6.7 | |
Level 3 | Internal | Fair Value, Measurements, Recurring | Future policy benefits | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Future policy benefits | $ 23,998,671 | $ 11,822,998 |
Level 3 | Internal | Fair Value, Measurements, Recurring | Policyholders' account balances | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Policyholders’ account balances | 226,072 | 196,892 |
Level 3 | Internal | Fair Value, Measurements, Recurring | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Corporate securities | 35,072 | 17,149 |
Level 3 | Internal | Fair Value, Measurements, Recurring | Reinsurance recoverables | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Reinsurance recoverables | $ 539,123 | $ 302,814 |
Fair Value of Assets and Liabilities (Changes in Level 3 Assets and Liabilities) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Equity Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | $ 4,986 | $ 5,616 | $ 5,247 | $ 5,705 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | (734) | 0 | (929) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 5,242 | 5,363 | 5,242 | 5,363 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 256 | 481 | (5) | 587 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 256 | 480 | (5) | 598 |
Equity Securities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Equity Securities | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 256 | 481 | (5) | 587 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 256 | 480 | (5) | 598 |
Equity Securities | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | ||
Equity Securities | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other invested assets | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 0 | 0 | 0 | 0 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other invested assets | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other invested assets | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other invested assets | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | ||
Other invested assets | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other assets | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 12,242 | 0 | 8,059 | 0 |
Purchases | 10,338 | 0 | 18,134 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (2) | 0 | (2) | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 27,136 | 0 | 27,136 | 0 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 4,558 | 0 | 945 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 4,556 | 0 | 944 | 0 |
Other assets | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 4,558 | 0 | 945 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 4,556 | 0 | 944 | 0 |
Other assets | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other assets | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | ||
Other assets | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Reinsurance recoverables | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 565,090 | 283,991 | 302,814 | 239,911 |
Purchases | 4,240 | 4,518 | 8,563 | 9,077 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | (1) | 0 | 21,895 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 539,123 | 339,744 | 539,123 | 339,744 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (30,207) | 51,236 | 227,746 | 68,861 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (26,137) | 53,335 | 232,325 | 72,829 |
Reinsurance recoverables | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (30,207) | 51,236 | 227,746 | 68,861 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (26,137) | 53,335 | 232,325 | 72,829 |
Reinsurance recoverables | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Reinsurance recoverables | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | ||
Reinsurance recoverables | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Future policy benefits | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | (25,302,654) | (9,316,905) | (11,822,998) | (8,332,474) |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | (284,426) | (264,465) | (566,610) | (521,806) |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | (23,998,671) | (11,738,480) | (23,998,671) | (11,738,480) |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 1,588,409 | (2,157,110) | (11,609,063) | (2,884,200) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 1,421,382 | (2,240,816) | (11,807,482) | (3,025,994) |
Future policy benefits | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 1,588,409 | (2,157,110) | (11,609,063) | (2,884,200) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 1,421,382 | (2,240,816) | (11,807,482) | (3,025,994) |
Future policy benefits | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Future policy benefits | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | ||
Future policy benefits | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Policyholders' account balances | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | (158,920) | (80,579) | (196,892) | (42,350) |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | (28,057) | (35,428) | (50,514) | (65,674) |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | (226,072) | (121,102) | (226,072) | (121,102) |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (39,095) | (5,095) | 21,334 | (13,078) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (34,321) | (3,299) | 10,084 | (11,282) |
Policyholders' account balances | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (39,095) | (5,095) | 21,334 | (13,078) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (34,321) | (3,299) | 10,084 | (11,282) |
Policyholders' account balances | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Policyholders' account balances | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | ||
Policyholders' account balances | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Available-for-sale | Fixed maturities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (57) | (1,175) | (167) | (1,900) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (982) | 0 | (982) | (1,998) |
Available-for-sale | Fixed maturities | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Available-for-sale | Fixed maturities | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 8,799 | 1,473 | (6,125) | 2,914 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 8,875 | (7,191) | ||
Available-for-sale | Fixed maturities | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 18 | 99 | (3) | 138 |
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 | 11,458 | 8,779 | 10,547 | 8,132 |
Purchases | 758 | 601 | 1,669 | 1,248 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 12,216 | 9,380 | 12,216 | 9,380 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 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 | 111,606 | 84,800 | 104,267 | 85,452 |
Purchases | 3,896 | 4,087 | 15,173 | 7,313 |
Sales | (7,810) | 0 | (8,965) | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (3,445) | (16,626) | (5,810) | (22,089) |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 10,783 | 815 | 25,132 | 1,790 |
Transfers out of Level 3 | (244) | (2,018) | (244) | (2,018) |
Fair Value, end of period | 123,389 | 71,071 | 123,389 | 71,071 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 8,603 | 13 | (6,164) | 623 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 7,738 | 0 | (8,042) | (1,996) |
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 | 24,227 | 50,258 | 18,825 | 9,336 |
Purchases | 0 | 0 | 6,145 | 44,273 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (620) | (339) | (1,075) | (4,386) |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 551 |
Transfers out of Level 3 | (5,636) | (30,578) | (5,636) | (30,578) |
Fair Value, end of period | 18,128 | 19,725 | 18,128 | 19,725 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 157 | 384 | (131) | 529 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 155 | 0 | (131) | (2) |
Trading | Fixed maturities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 3,593 | 0 | 4,464 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 5,021 | 0 | 5,021 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 4,301 | 4,044 | 4,301 | 4,044 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 708 | (977) | (163) | (977) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 713 | (972) | (153) | (972) |
Trading | Fixed maturities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Trading | Fixed maturities | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 713 | (972) | (153) | (972) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 713 | (972) | (153) | (972) |
Trading | Fixed maturities | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | ||
Trading | Fixed maturities | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | $ (5) | $ (5) | $ (10) | $ (5) |
Fair Value of Assets and Liabilities (Financial Instruments where Carrying Amounts and Fair Values May Differ) (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Assets: | ||
Policy loans | $ 12,257 | $ 12,366 |
Cash and cash equivalents | 6,554,856 | 2,795,163 |
Accrued investment income | 116,317 | 102,724 |
Reinsurance recoverables | 860,518 | 621,510 |
Receivables from parent and affiliates | 89,092 | 62,765 |
Liabilities: | ||
Long-term debt | 299,747 | 419,418 |
Reinsurance payables | 210,579 | 235,318 |
Fair Value | ||
Assets: | ||
Commercial mortgage and other loans | 1,697,362 | 1,512,283 |
Policy loans | 12,257 | 12,366 |
Short-term investments | 824,939 | 75,004 |
Cash and cash equivalents | 2,009,886 | 989,558 |
Accrued investment income | 116,317 | 102,724 |
Reinsurance recoverables | 53,392 | 56,171 |
Receivables from parent and affiliates | 33,303 | 60,779 |
Other assets | 231,338 | 64,999 |
Total assets | 4,978,794 | 2,873,884 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 1,891,373 | 1,445,486 |
Cash collateral for loaned securities | 0 | 0 |
Short-term debt | 359,900 | 245,617 |
Long-term debt | 335,225 | 446,105 |
Reinsurance payables | 46,079 | 50,035 |
Payables to parent and affiliates | 44,971 | 39,209 |
Other liabilities | 588,257 | 205,988 |
Separate account liabilities - investment contracts | 38 | 54 |
Total liabilities | 3,265,843 | 2,432,494 |
Carrying Amount | ||
Assets: | ||
Commercial mortgage and other loans | 1,644,320 | 1,471,522 |
Policy loans | 12,257 | 12,366 |
Short-term investments | 824,939 | 75,004 |
Cash and cash equivalents | 2,009,886 | 989,558 |
Accrued investment income | 116,317 | 102,724 |
Reinsurance recoverables | 52,596 | 55,796 |
Receivables from parent and affiliates | 33,303 | 60,192 |
Other assets | 231,338 | 64,999 |
Total assets | 4,924,956 | 2,832,161 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 1,871,759 | 1,438,742 |
Cash collateral for loaned securities | 0 | 0 |
Short-term debt | 353,849 | 242,094 |
Long-term debt | 299,747 | 419,418 |
Reinsurance payables | 46,079 | 50,035 |
Payables to parent and affiliates | 44,971 | 39,209 |
Other liabilities | 588,257 | 205,988 |
Separate account liabilities - investment contracts | 38 | 54 |
Total liabilities | 3,204,700 | 2,395,540 |
Level 1 | Fair Value | ||
Assets: | ||
Commercial mortgage and other loans | 0 | 0 |
Policy loans | 0 | 0 |
Short-term investments | 824,939 | 75,004 |
Cash and cash equivalents | 993,381 | 687,558 |
Accrued investment income | 0 | 0 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 1,818,320 | 762,562 |
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 | 1,016,505 | 302,000 |
Accrued investment income | 116,317 | 102,724 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 33,303 | 10,192 |
Other assets | 5,173 | 1,893 |
Total assets | 1,171,298 | 416,809 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 0 | 0 |
Cash collateral for loaned securities | 0 | 0 |
Short-term debt | 359,900 | 245,617 |
Long-term debt | 335,225 | 446,105 |
Reinsurance payables | 0 | 0 |
Payables to parent and affiliates | 44,971 | 39,209 |
Other liabilities | 588,257 | 205,988 |
Separate account liabilities - investment contracts | 38 | 54 |
Total liabilities | 1,328,391 | 936,973 |
Level 3 | Fair Value | ||
Assets: | ||
Commercial mortgage and other loans | 1,697,362 | 1,512,283 |
Policy loans | 12,257 | 12,366 |
Short-term investments | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Accrued investment income | 0 | 0 |
Reinsurance recoverables | 53,392 | 56,171 |
Receivables from parent and affiliates | 0 | 50,587 |
Other assets | 226,165 | 63,106 |
Total assets | 1,989,176 | 1,694,513 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 1,891,373 | 1,445,486 |
Cash collateral for loaned securities | 0 | 0 |
Short-term debt | 0 | 0 |
Long-term debt | 0 | 0 |
Reinsurance payables | 46,079 | 50,035 |
Payables to parent and affiliates | 0 | 0 |
Other liabilities | 0 | 0 |
Separate account liabilities - investment contracts | 0 | 0 |
Total liabilities | $ 1,937,452 | $ 1,495,521 |
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2017 |
|
Income Tax Disclosure [Abstract] | |||||
Income tax expense (benefit) | $ (862,080) | $ (339,286) | $ (1,099,568) | $ (318,466) | |
Effective income tax rate, percent | 29.91% | 22.96% | |||
Federal Statutory income tax rate, percent | 21.00% | 35.00% | |||
CARES Act NOL Carryback | $ 305,000 |
Reinsurance (Reinsurance amounts included in the Statements of Financial Position) (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
|||
---|---|---|---|---|---|
Effects of Reinsurance [Line Items] | |||||
Reinsurance recoverables | $ 860,518 | $ 621,510 | |||
Deferred policy acquisition costs | 4,243,190 | [1] | 4,455,683 | ||
Deferred sales inducements | 751,671 | 812,724 | |||
Value of business acquired | 27,246 | 30,025 | |||
Other assets | 312,198 | 139,933 | |||
Policyholders’ account balances | 6,859,669 | 6,180,359 | |||
Future policy benefits | 25,263,142 | 12,932,461 | |||
Reinsurance payables | 210,579 | 235,318 | |||
Other liabilities | 893,740 | [1] | 447,405 | ||
Impacts of Reinsurance | |||||
Effects of Reinsurance [Line Items] | |||||
Reinsurance recoverables | 860,518 | 621,510 | |||
Deferred policy acquisition costs | 3,530,644 | 3,725,719 | |||
Deferred sales inducements | 397,925 | 437,594 | |||
Value of business acquired | (2,135) | (2,275) | |||
Other assets | 52,143 | 65,819 | |||
Policyholders’ account balances | 3,322,132 | 3,253,474 | |||
Future policy benefits | 17,724,091 | 8,328,777 | |||
Reinsurance payables | 210,579 | 235,318 | |||
Other liabilities | 489,594 | 337,909 | |||
Unaffiliated activity | |||||
Effects of Reinsurance [Line Items] | |||||
Reinsurance recoverables | 500 | 200 | |||
Other assets | (13,300) | (3,900) | |||
Reinsurance payables | 100 | 100 | |||
Other liabilities | $ 214,300 | $ 60,400 | |||
|
Reinsurance (Reinsurance Recoverables by Counterparty) (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | $ 860,518 | $ 621,510 |
Prudential Insurance | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 634,470 | 387,355 |
Pruco Life | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 225,566 | 233,933 |
Unaffiliated | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | $ 482 | $ 222 |
Reinsurance (Reinsurance amounts included in the Statements of Operations and Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Premiums: | ||||
Direct | $ 7,717 | $ 8,381 | $ 14,215 | $ 16,435 |
Assumed | 8,003 | 10,398 | 18,430 | 19,493 |
Ceded | (707) | (308) | (1,053) | (192) |
Net premiums | 15,013 | 18,471 | 31,592 | 35,736 |
Policy charges and fee income: | ||||
Direct | 95,670 | 122,420 | 201,924 | 244,031 |
Assumed | 367,194 | 411,058 | 765,855 | 806,146 |
Ceded | (7,182) | (8,690) | (15,228) | (17,455) |
Net policy charges and fee income | 455,682 | 524,788 | 952,551 | 1,032,722 |
Asset administration fees and other income: | ||||
Direct | 35,964 | 41,226 | 105,837 | 79,971 |
Assumed | 71,725 | 76,079 | 148,964 | 148,774 |
Ceded | (1,840) | (2,100) | (3,819) | (4,152) |
Net asset administration fees and other income | 105,849 | 115,205 | 250,982 | 224,593 |
Realized investment gains (losses), net: | ||||
Direct | (4,643,352) | 593,738 | 4,399,638 | (240,470) |
Assumed | 1,305,763 | (1,530,524) | (8,754,691) | (2,046,233) |
Ceded | (38,175) | 42,571 | 221,598 | 50,269 |
Realized investment gains (losses), net | (3,375,764) | (894,215) | (4,133,455) | (2,236,434) |
Policyholders' benefits (including change in reserves): | ||||
Direct | 467 | 17,616 | 59,633 | 24,719 |
Assumed | (38,289) | 31,619 | 150,235 | 33,976 |
Ceded | 54 | (1,345) | (5,107) | (2,855) |
Net policyholders' benefits (including change in reserves) | (37,768) | 47,890 | 204,761 | 55,840 |
Interest credited to policyholders’ account balances: | ||||
Direct | (12,284) | 15,335 | 33,555 | 21,345 |
Assumed | (22,561) | 19,283 | 45,854 | 24,094 |
Ceded | 1,591 | (1,263) | 307 | (1,657) |
Net interest credited to policyholders’ account balances | (33,254) | 33,355 | 79,716 | 43,782 |
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization | 38,342 | 240,225 | 583,806 | 439,480 |
Unaffiliated activity | ||||
Policy charges and fee income: | ||||
Ceded | (400) | (1,000) | (700) | (1,000) |
Policyholders' benefits (including change in reserves): | ||||
Ceded | $ (500) | $ (100) | $ (400) | $ (100) |
Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 428,612 | |||
Income tax benefit (expense) | $ (51,949) | $ (88,891) | (320,666) | $ (148,642) |
Ending balance | 1,634,932 | 1,634,932 | ||
Foreign Currency Translation Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (934) | (1,078) | ||
Change in OCI before reclassifications | (481) | (16) | ||
Amounts reclassified from AOCI | 0 | 0 | ||
Income tax benefit (expense) | 101 | 3 | ||
Ending balance | (1,314) | (1,091) | (1,314) | (1,091) |
Net Unrealized Investment Gains (Losses) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 429,546 | (323,295) | ||
Change in OCI before reclassifications | 1,563,347 | 698,743 | ||
Amounts reclassified from AOCI | (35,880) | 9,087 | ||
Income tax benefit (expense) | (320,767) | (148,645) | ||
Ending balance | 1,636,246 | 235,890 | 1,636,246 | 235,890 |
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 428,612 | (324,373) | ||
Change in OCI before reclassifications | 1,562,866 | 698,727 | ||
Amounts reclassified from AOCI | (35,880) | 9,087 | ||
Income tax benefit (expense) | (320,666) | (148,642) | ||
Ending balance | 1,634,932 | 234,799 | 1,634,932 | 234,799 |
Cash flow hedges | Net Unrealized Investment Gains (Losses) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 0 | (4,000) | ||
Ending balance | $ 68,000 | $ 0 | $ 68,000 | $ 0 |
Equity (Reclassification out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Net Unrealized Investment Gains (Losses) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | $ (35,880) | $ 9,087 | ||
Total reclassifications for the period | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | (35,880) | 9,087 | ||
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 | $ 6,401 | $ (7,503) | 35,880 | (9,087) |
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 | 6,401 | (7,503) | 35,880 | (9,087) |
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) | 8,668 | (2,968) | 15,090 | (3,699) |
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) | $ (2,267) | $ (4,535) | $ 20,790 | $ (5,388) |
Equity (Net Unrealized Investment Gains (Losses) in AOCI with Allowance for Credit Losses) (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2020
USD ($)
| |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | $ 428,612 |
Ending balance | 1,634,932 |
Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | 429,546 |
Ending balance | 1,636,246 |
With an allowance | Net Unrealized Gains (Losses) on Investments | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | 0 |
Net investment gains (losses) on investments arising during the period | 15 |
Reclassification adjustment for (gains) losses included in net income | 0 |
Increase (decrease) due to non-credit related losses recognized in AOCI during the period | (62) |
Impact of net unrealized investment (gains) losses on DAC and other costs | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities | 0 |
Ending balance | (47) |
With an allowance | Deferred Policy Acquisition Costs and Other Costs | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | 0 |
Net investment gains (losses) on investments arising during the period | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 |
Increase (decrease) due to non-credit related losses recognized in AOCI during the period | 0 |
Impact of net unrealized investment (gains) losses on DAC and other costs | 868 |
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities | 0 |
Ending balance | 868 |
With an allowance | Future Policy Benefits and Other Liabilities | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | 0 |
Net investment gains (losses) on investments arising during the period | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 |
Increase (decrease) due to non-credit related losses recognized in AOCI during the period | 0 |
Impact of net unrealized investment (gains) losses on DAC and other costs | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities | 157 |
Ending balance | 157 |
With an allowance | Deferred Income Tax (Liability) Benefit | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | 0 |
Net investment gains (losses) on investments arising during the period | (3) |
Reclassification adjustment for (gains) losses included in net income | 0 |
Increase (decrease) due to non-credit related losses recognized in AOCI during the period | 14 |
Impact of net unrealized investment (gains) losses on DAC and other costs | (180) |
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities | (33) |
Ending balance | (202) |
With an allowance | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | 0 |
Net investment gains (losses) on investments arising during the period | 12 |
Reclassification adjustment for (gains) losses included in net income | 0 |
Increase (decrease) due to non-credit related losses recognized in AOCI during the period | (48) |
Impact of net unrealized investment (gains) losses on DAC and other costs | 688 |
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities | 124 |
Ending balance | $ 776 |
Equity (All Other Net Unrealized Investment Gains (Losses) in AOCI) (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2020
USD ($)
| |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | $ 428,612 |
Ending balance | 1,634,932 |
Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | 429,546 |
Ending balance | 1,636,246 |
All Other | Net Unrealized Gains (Losses) on Investments | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | 736,930 |
Net investment gains (losses) on investments arising during the period | 1,749,271 |
Reclassification adjustment for (gains) losses included in net income | (35,880) |
Reclassification due to allowance for credit losses recorded during the period | 62 |
Impact of net unrealized investment (gains) losses on DAC and other costs | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities | 0 |
Ending balance | 2,450,383 |
All Other | Deferred Policy Acquisition Costs and Other Costs | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (156,175) |
Net investment gains (losses) on investments arising during the period | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 |
Reclassification due to allowance for credit losses recorded during the period | 0 |
Impact of net unrealized investment (gains) losses on DAC and other costs | (183,205) |
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities | 0 |
Ending balance | (339,380) |
All Other | Future Policy Benefits and Other Liabilities | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (35,983) |
Net investment gains (losses) on investments arising during the period | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 |
Reclassification due to allowance for credit losses recorded during the period | 0 |
Impact of net unrealized investment (gains) losses on DAC and other costs | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities | (3,759) |
Ending balance | (39,742) |
All Other | Deferred Income Tax (Liability) Benefit | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (115,226) |
Net investment gains (losses) on investments arising during the period | (367,349) |
Reclassification adjustment for (gains) losses included in net income | 7,535 |
Reclassification due to allowance for credit losses recorded during the period | (13) |
Impact of net unrealized investment (gains) losses on DAC and other costs | 38,473 |
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities | 789 |
Ending balance | (435,791) |
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 | 429,546 |
Net investment gains (losses) on investments arising during the period | 1,381,922 |
Reclassification adjustment for (gains) losses included in net income | (28,345) |
Reclassification due to allowance for credit losses recorded during the period | 49 |
Impact of net unrealized investment (gains) losses on DAC and other costs | (144,732) |
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities | (2,970) |
Ending balance | $ 1,635,470 |
Related Party Transactions (Narrative) (Details) - USD ($) |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 |
Mar. 31, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
Related Party Transaction [Line Items] | |||||||||
Investment expense | $ 6,785,000 | $ 5,400,000 | $ 13,178,000 | $ 9,353,000 | |||||
Commissions and fees | 455,682,000 | 524,788,000 | 952,551,000 | 1,032,722,000 | |||||
Other invested assets | 529,040,000 | $ 474,013,000 | 529,040,000 | $ 474,013,000 | |||||
Net investment income | 158,426,000 | 131,972,000 | 281,463,000 | 257,041,000 | |||||
Fee income from revenue sharing agreement | 105,849,000 | 115,205,000 | 250,982,000 | 224,593,000 | |||||
Accrued investment income | 116,317,000 | 102,724,000 | 116,317,000 | 102,724,000 | |||||
Contributed capital | 0 | 0 | |||||||
Prudential Insurance | |||||||||
Related Party Transaction [Line Items] | |||||||||
Stock option program plan expense | 0.0 | 100,000 | 100,000 | 100,000 | |||||
Deferred compensation program expense | 0.0 | 200,000 | 300,000 | 500,000 | |||||
Pension plan expense | 500,000 | 600,000 | 1,100,000 | 1,100,000 | |||||
Welfare plan expense | 400,000 | 500,000 | $ 1,000,000.0 | 1,100,000 | |||||
Defined contribution plan employer matching contribution percent | 4.00% | ||||||||
Defined contribution plan, cost recognized | 200,000 | 300,000 | $ 500,000 | 500,000 | |||||
Affiliated Entity | |||||||||
Related Party Transaction [Line Items] | |||||||||
Net investment income | 300,000 | 300,000 | |||||||
Accrued interest receivable related to long-term notes receivables | 100,000 | 0.0 | 100,000 | 0.0 | |||||
Revenue related to long-term notes receivable | 400,000 | 100,000 | 800,000 | 200,000 | |||||
Accrued investment income | 200,000 | 200,000 | |||||||
Interest expense related to loans payable | 8,000,000 | 24,000,000 | 36,000,000 | 40,000,000 | |||||
Affiliated Entity | PAD | |||||||||
Related Party Transaction [Line Items] | |||||||||
Commissions and fees | 29,000,000 | 25,000,000 | 52,000,000 | 49,000,000 | |||||
Affiliated Entity | ASTISI and PGIM Investments | |||||||||
Related Party Transaction [Line Items] | |||||||||
Fee income from revenue sharing agreement | 21,000,000 | 24,000,000 | 43,000,000 | 48,000,000 | |||||
Affiliated Entity | PGIM | |||||||||
Related Party Transaction [Line Items] | |||||||||
Investment expense | 5,000,000 | 4,000,000 | 10,000,000 | 8,000,000 | |||||
Prudential Financial Joint Venture | |||||||||
Related Party Transaction [Line Items] | |||||||||
Other invested assets | 444,000,000 | 391,000,000 | 444,000,000 | $ 391,000,000 | |||||
Net investment income | 15,000,000 | 4,000,000 | 3,000,000 | 9,000,000 | |||||
Prudential Financial | |||||||||
Related Party Transaction [Line Items] | |||||||||
Company's share of corporate expenses (benefits) | 2,000,000 | 4,000,000 | 6,000,000 | $ 8,000,000 | |||||
Line of credit facility, maximum borrowing capacity | 9,000,000,000 | $ 9,000,000,000 | |||||||
PAI | |||||||||
Related Party Transaction [Line Items] | |||||||||
Return of capital | $ 173,000,000 | $ 207,000,000 | $ 241,000,000 | $ 245,000,000 | $ 247,000,000 | $ 245,000,000 |
Related Party Transactions (Affiliated Notes Receivable) (Details) - Affiliated Entity - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2020 |
Dec. 31, 2019 |
|
Related Party Transaction [Line Items] | ||
Total notes receivable - affiliated | $ 55,789 | $ 52,573 |
U.S. dollar fixed rate notes | ||
Related Party Transaction [Line Items] | ||
Total notes receivable - affiliated | $ 55,789 | $ 52,573 |
U.S. dollar fixed rate notes | Minimum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 2.62% | |
U.S. dollar fixed rate notes | Maximum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 14.85% |
Related Party Transactions (Affiliated Commercial Mortgage Loan) (Details) - USD ($) $ in Thousands |
6 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2020 |
Dec. 31, 2019 |
||||
Related Party Transaction [Line Items] | |||||
Commercial Mortgage Loans | $ 1,644,320 | [1] | $ 1,471,522 | ||
Affiliated Entity | Commercial Mortgage Loans | |||||
Related Party Transaction [Line Items] | |||||
Interest Rates | 4.67% | ||||
Commercial Mortgage Loans | $ 74,005 | ||||
|
Related Party Transactions (Affiliated Asset Transfers) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Related Party Transaction [Line Items] | ||||
Realized investment (gains) losses, net | $ (3,375,764) | $ (894,215) | $ (4,133,455) | $ (2,236,434) |
Affiliated Entity | Prudential Insurance January 2019 Sale | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 20,504 | 20,504 | ||
Book Value | 20,781 | 20,781 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment (gains) losses, net | (277) | |||
Affiliated Entity | Prudential Insurance February 2019 Sale | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 97,953 | 97,953 | ||
Book Value | 98,506 | 98,506 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment (gains) losses, net | (554) | |||
Affiliated Entity | Prudential Insurance March 2019 Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 141,476 | 141,476 | ||
Book Value | 141,476 | 141,476 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment (gains) losses, net | 7,776 | |||
Affiliated Entity | Prudential Insurance April 2019 Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 4,300 | 4,300 | ||
Book Value | 4,300 | 4,300 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment (gains) losses, net | 0 | |||
Affiliated Entity | Prudential Retirement Insurance & Annuity April 2019 Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 1,258 | 1,258 | ||
Book Value | 1,258 | 1,258 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment (gains) losses, net | 0 | |||
Affiliated Entity | Pruco Life April 2019 Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 14,525 | 14,525 | ||
Book Value | 14,525 | 14,525 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment (gains) losses, net | 0 | |||
Affiliated Entity | Prudential Insurance June 2019 - Transfer Out | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 23,066 | 23,066 | ||
Book Value | 23,002 | 23,002 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment (gains) losses, net | 64 | |||
Affiliated Entity | Prudential Insurance June 2019 - Transfer In | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 19,919 | 19,919 | ||
Book Value | 19,919 | 19,919 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment (gains) losses, net | 0 | |||
Affiliated Entity | Prudential Insurance August 2019 - Sale | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 66,346 | 66,346 | ||
Book Value | 64,735 | 64,735 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment (gains) losses, net | 1,611 | |||
Affiliated Entity | Prudential Insurance August 2019 - Sale | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 106,307 | 106,307 | ||
Book Value | 104,733 | 104,733 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment (gains) losses, net | 1,574 | |||
Affiliated Entity | Prudential Insurance November 2019 Sale | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 2,289 | 2,289 | ||
Book Value | 2,362 | 2,362 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment (gains) losses, net | (73) | |||
Affiliated Entity | Prudential Insurance November 2019 Sale | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 6,517 | 6,517 | ||
Book Value | 8,550 | 8,550 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment (gains) losses, net | (2,033) | |||
Affiliated Entity | Prudential Insurance December 2019 Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 5,271 | 5,271 | ||
Book Value | 5,271 | 5,271 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment (gains) losses, net | 0 | |||
Affiliated Entity | Prudential Insurance December 2019 Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 85,261 | 85,261 | ||
Book Value | 85,261 | 85,261 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment (gains) losses, net | 0 | |||
Affiliated Entity | Prudential Insurance December 2019 Sale | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 21,425 | 21,425 | ||
Book Value | 20,628 | 20,628 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment (gains) losses, net | 797 | |||
Affiliated Entity | Prudential International Insurance Service Company March 2020 - Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 107,014 | 107,014 | ||
Book Value | 107,014 | 107,014 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment (gains) losses, net | 0 | |||
Affiliated Entity | Prudential Insurance March 2020 Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 258,885 | 258,885 | ||
Book Value | 258,885 | 258,885 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment (gains) losses, net | 0 | |||
Affiliated Entity | Prudential Insurance April 2020 Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 91,131 | 91,131 | ||
Book Value | 91,131 | 91,131 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment (gains) losses, net | 0 | |||
Affiliated Entity | Prudential Insurance June 2020 Sale | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 65,646 | 65,646 | ||
Book Value | 57,699 | 57,699 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment (gains) losses, net | 7,947 | |||
Affiliated Entity | Gibraltar life insurance company June 2020 Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 222,091 | 222,091 | ||
Book Value | 222,091 | 222,091 | ||
APIC, Net of Tax Increase/(Decrease) | $ 0 | 0 | ||
Realized investment (gains) losses, net | $ 0 |
Related Party Transactions (Debt Agreements) (Details) - Affiliated Entity - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2020 |
Dec. 31, 2019 |
|
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 653,596 | $ 661,512 |
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 | $ 26,000 | 26,000 |
Interest Rate | 2.59% | |
Prudential Funding Loan Issued 12/16/2019 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 1,298 |
Interest Rate | 2.02% | |
Prudential Funding Loan Issued 12/17/2019 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 1,478 |
Interest Rate | 2.02% | |
Prudential Funding Loan Issued 12/17/2019 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | 502 |
Interest Rate | 2.02% | |
Prudential Funding Loan Issued 12/18/2019 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 0 | $ 4,638 |
Interest Rate | 2.02% |
Commitments and Contingent Liabilities (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2020 |
Dec. 31, 2019 |
|
Commitments and Contingent Liabilities [Line Items] | |||
Litigation and regulatory matters loss contingency, range of possible loss, maximum (less than) | $ 150.0 | $ 150.0 | |
Commitments | Commercial Mortgage Loans | |||
Commitments and Contingent Liabilities [Line Items] | |||
Total outstanding mortgage loan commitments | 25.0 | 25.0 | $ 43.0 |
Allowance or related charges for credit losses | 0.0 | 0.0 | |
Change in allowance for credit losses | 0.0 | 0.0 | |
Commitments | Investments | |||
Commitments and Contingent Liabilities [Line Items] | |||
Commitments to Purchase Investment (excluding Commercial Mortgage Loans) | 195.0 | 195.0 | $ 207.0 |
Purchase Commitment | |||
Commitments and Contingent Liabilities [Line Items] | |||
Change in allowance for credit losses | $ 0.0 | $ 0.0 |
K%IBX+[+J9JM02F3^_#)[:U9$I[K
M7?&OX.4#,[&J2^C)N/RO2Q5FLB33F+,+EQ9+&V8[.H_"=,QF]L-,MDN5@U#>
MKP=/,EK/?X#UCD*HRZX'$/5&"CR[.0'>,UKW$@G8:,1&WKFWC,+*ZI+AE^31
M6*HH>0BY:)/?@"\]MKA5;U%A0]B4@DSJP.>-!PULT V@M<\^.&$HQ]R@]'2Y
MN%PN,1QJ@Y2V<$'^)Y%9TT((KUL R!8'UY\J$V!7E@ &"Y-"X-=7D=$1_F
M=FPR9*/UC@;9$L*EQX9M<5NA$#]9.$\>)N$_M]I 9K[5J%N- F#KK'L:UI7VRS'IOZ:O(/^=?A_W+^^IH;G&\(NU^LVY6P[
MR"?22CZK< 7.M=90%5;4BT/+.F*@@$E4:'^A[L<>*%_:8K"GMW2X$]"7^_;<@(#-R]NXO&73R(_B7GV69P
MN76@$LVGDK7F#*89W36D4+5W*>+A.;LZ,M/V*_=O=G;W.(Z(09IM1AVB=U=O
MK^E",YZ?C)4*R_#+>-S5(K/V?>=#PV[9*1Y9FQR>IK8S=IC=*R0?=9WV&\#F
M5&]R$#7(%)"BJ ^Y^RITIJ?,TUOX>Z^)L+N4>V%SL )MM5F-,7;7FFY_4>-_
M)(F-!K6QP0(G;R[2YL?7EJ-=-
*!AX8YZ+FMG.M$$7WL3VCF"#1,DU'1&1V8,^_#! M!4%R&K^.\NUXDVG>34@%NG2.BB=.MZO-]YDV@X$Q/HDJA'WDGZB,L=!8M-0A MZ8/EFA4(<'_LPY!-'WH O#R,A.E$3)[22M*ZST'2C_1#> M0#(8!H+"=<2-MCT^,.A1$?&'.OX-U?&7:E>8\6&G0.DL/#I)).W=A<_B7$]Y M G*98E5'L2G;W"?QY"0G3H>QA.^TV W. "!)D)C8>@>ZE'V!_\>JC2F$P792)BE7CJB2D,X M@W\W50HUF;JN%25V$KG G!/K6#Z43I*& V4:PP<&R"=Q>H)%\"#R E&-"6PD MS^DW!ZAW)YI6IC[0&6*A@Q.5:0 #/N0WZ4BP6.O/603;)0XFM"F&]-A:?T1V M_*%,_R\HTY3)1YT5":JET[I
YL
MC0] \%$MM_[GNYYXQ#SQ-S">VW>+'D6P*#G>&=]3LNC$103\*$ZS(3_
M5WL?.7P/P!^T]ZGOL*<[G[5+A0Y&'^^-FP7=%^[Q[OC_@0OW67R[W?USX6 #0&+R8/,L%N +X/\3;OG*1@<
MJX*GA5!K#,@5;M14AO%K*YS_.E9642L9)?JP;A%IJRTR2?0R9/3C^.U>12L&
M>F9 *YC5P?ZP(E90=:L8XCU!-.@S"E<*W:L!(H('N4!PDM9MY!]/2*R^8">Q
MX=/F^Y5
M+ R9#8A'Z;^15 17?(%=OA6H9)G^#P1?%O>J>?)7%#-CQ2ESW/6.Q6U9R^Q
M/;J:#%PN#'#A\MS:SQ$?U5CE=V ./,?B/1+=81"*8RQ"?^@,PHA7B1-YOKA@
M0Y.=R:AW"L8D5X\S:8R>Z#'C@K9AXD&"YPRBP G"F%>^DT21&.7E@MR[8H+^
M'!KL)U=T@X&3)"[85ZL&2RT?L6>A)KH67?6(7F 4=G$]D/JN$T$W@6H^=$0>3XC)+6H3,,_/^/D_],/R86I1LGC!)&"1Q_.&@O0B>(
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M\O?5@OJ/O$
I283.RB+
MGV2QD-63\*PR=IKI7*VLUQ%S-!^$'&9JW1X/<' KS*)B;,W=#OM&*P,1=%1_9.&.&<)&R\-$LI,T&<2!+=R%
MP>%MUE=MU!WY.]ABTBZK!X%]A3H(EWC]@)6'RPU9[E8^0"M^AZ."@UUJ$T#:
M$5CRTS.T!I*(L+"ZD:P$?-[R%L+:4C=9TU"16RQD)&W'8ZM!\EZ:@)5G;>36
M3DO>6;&H:\3R/F&29'O\.0]C<
DA/9
M8<3 BY@RZ38=^969%!ZKPC4^1J@<
]%-2P-88W0+5$RFI+6&&?@8
M]""Z 0@(24, D0ZQL AWC &\>I%/ !EV1,8A18'/)(0]2Y@U G2,H0F$G(S
MR8#]470#L"C"=G 2)T+!(@W ,8FC(8$'&(D M: !1@@4,#H)B!%E/#\FX!\!
M-M\W7@1_A4=E0/!NL GP-SXE57U#I[BF
M9(2K#B']/% "XJ)H8L^JLN+FE^"C!4" 61.OSQ"%?@PV*
DXR.#:< 3A$K&:7^8L*OZAK;X/$2>"2,YFO)?8NV4
MSG82'L?^4%/']XGKI<72K8_#2(7>7J2NBX__8P ,X,G8)OU4).Z8(0WI: Y5
M ,J=!Z#GJ!R-HVC'GPYT6+%CCWMB'V)4;R6?P!T<[B4"_5':0VX:\M >%XY0
MYRHPOZ <)O*UB8DV3BVU7,:1O8W21Z$6TOE:!R%&W\ZN-%"%=B#VSVX!3(\
M#K:(Q]@)8#,1#Y