XML 30 R18.htm IDEA: XBRL DOCUMENT v3.20.4
Equity
 12 Months Ended
Dec. 31, 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. Net unrealized investment gains (losses) are described in further detail in Note 2. The balance of and changes in each component of AOCI as of and for the years ended December 31, are as follows:
 Accumulated Other Comprehensive Income (Loss)
 Foreign Currency
Translation
Adjustment		Net Unrealized
Investment
Gains (Losses)(1)		Total Accumulated
Other
Comprehensive
Income (Loss)
 (in thousands)
Balance, December 31, 2017$(7)$(90,117)$(90,124)
Change in OCI before reclassifications(1,354)(311,658)(313,012)
Amounts reclassified from AOCI0 62,970 62,970 
Income tax benefit (expense)285 52,225 52,510 
Cumulative effect of adoption of ASU 2016-010 (3)(3)
Cumulative effect of adoption of ASU 2018-02(2)(36,712)(36,714)
Balance, December 31, 2018(1,078)(323,295)(324,373)
Change in OCI before reclassifications182 956,373 956,555 
Amounts reclassified from AOCI0 (3,123)(3,123)
Income tax benefit (expense)(38)(200,409)(200,447)
Balance, December 31, 2019(934)429,546 428,612 
Change in OCI before reclassifications286 1,389,181 1,389,467 
Amounts reclassified from AOCI0 8,568 8,568 
Income tax benefit (expense)(60)(293,528)(293,588)
Balance, December 31, 2020$(708)$1,533,767 $1,533,059 
(1)Includes cash flow hedges of $(43) million, $0 million and $(4) million as of December 31, 2020, 2019, and 2018, respectively.
Reclassifications out of Accumulated Other Comprehensive Income (Loss)
Year Ended December 31,
202020192018
 (in thousands)
Amounts reclassified from AOCI(1)(2):
Net unrealized investment gains (losses):
Cash flow hedges - Currency/Interest rate(3)$(4,766)$7,054 $20,761 
Net unrealized investment gains (losses) on available-for-sale securities(3,802)(3,931)(83,731)
Total net unrealized investment gains (losses)(4)(8,568)3,123 (62,970)
Total reclassifications for the period$(8,568)$3,123 $(62,970)

(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 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 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 OTTI had been previously recognized, an allowance for credit losses has been recognized, and all other net unrealized investment gains (losses), are as follows:
Net Unrealized Gains (Losses) on Available-for-Sale Fixed Maturity Securities on which an OTTI had been previously recognized
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, 2017$12,311 $(1,008)$(157)$(3,263)$7,883 
Net unrealized investment gains (losses) on investments arising during the period(15,199)0 0 3,192 (12,007)
Reclassification adjustment for (gains) losses included in net income(205)0 0 43 (162)
Reclassification adjustment for OTTI losses excluded from net income(1)
(241)0 0 51 (190)
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs0 (111)0 23 (88)
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities0 0 89 (19)70 
Balance, December 31, 2018(3,334)(1,119)(68)27 (4,494)
Net unrealized investment gains (losses) on investments arising during the period17,795 0 0 (3,741)14,054 
Reclassification adjustment for (gains) losses included in net income(100)0 0 21 (79)
Reclassification adjustment for OTTI losses excluded from net income(1)
(52)0 0 11 (41)
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs0 (80)0 17 (63)
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities0 0 (51)11 (40)
Balance, December 31, 201914,309 (1,199)(119)(3,654)9,337 
Reclassification due to implementation of ASU 2016-13(4)(14,309)1,199 119 3,654 (9,337)
Balance, December 31, 2020$0 $0 $0 $0 $0 

(1)Represents "transfers in" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss.
(2)"Other costs" primarily includes reinsurance recoverables, DSI and VOBA.
(3)"Other liabilities" primarily includes reinsurance payables and deferred reinsurance gains.
(4)Represents net unrealized gains (losses) for which an OTTI had been previously recognized.
Net Unrealized Gains (Losses) on Available-for-Sale Fixed Maturity Securities on which an allowance for credit losses has been recognized and All Other
Net Unrealized Gains (Losses) on Investments on Available-for-Sale Fixed Maturity Securities on which an allowance for credit losses has been recognized(1)Net Unrealized
Gains (Losses)
on All Other  Investments(3)		DAC and Other Costs(4)Future Policy Benefits and Other Liabilities(5)Deferred
Income Tax
(Liability)
Benefit		Accumulated
Other
Comprehensive
Income (Loss)
Related to Net
Unrealized
Investment
Gains (Losses)
 (in thousands)
Balance, December 31, 2017$0 $(71,723)$(82,212)$(16,997)$72,932 $(98,000)
Net investment gains (losses) on investments arising during the period0 (405,264)0 0 85,105 (320,159)
Reclassification adjustment for (gains) losses included in net income0 63,175 0 0 (13,267)49,908 
Reclassification adjustment for OTTI losses excluded from net income(2)
0 241 0 0 (51)190 
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs0 0 90,717 0 (19,049)71,668 
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities0 0 0 18,110 (3,803)14,307 
Cumulative effect of adoption of ASU 2016-010 (4)0 0 1 (3)
Cumulative effect of adoption of ASU 2018-020 0 0 0 (36,712)(36,712)
Balance, December 31, 20180 (413,575)8,505 1,113 85,156 (318,801)
Net investment gains (losses) on investments arising during the period0 1,139,167 0 0 (239,496)899,671 
Reclassification adjustment for (gains) losses included in net income0 (3,023)0 0 636 (2,387)
Reclassification adjustment for OTTI losses excluded from net income(2)
0 52 0 0 (11)41 
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs0 0 (163,481)0 34,369 (129,112)
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities0 0 0 (36,977)7,774 (29,203)
Balance, December 31, 20190 722,621 (154,976)(35,864)(111,572)420,209 
Reclassification due to implementation of ASU 2016-13(6)0 14,309 (1,199)(119)(3,654)9,337 
Net investment gains (losses) on investments arising during the period59 1,623,552 0 0 (341,050)1,282,561 
Reclassification adjustment for (gains) losses included in net income3 8,565 0 0 (1,800)6,768 
Reclassification due to allowance for credit losses recorded during the period(60)60 0 0 0 0 
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs0 0 (207,254)0 43,613 (163,641)
Impact of net unrealized investment (gains) losses on future policy benefits and other liabilities0 0 0 (27,176)5,709 (21,467)
Balance, December 31, 2020$2 $2,369,107 $(363,429)$(63,159)$(408,754)$1,533,767 
(1)Allowance for credit losses on available-for-sale fixed maturity securities effective January 1, 2020.
(2)Represents "transfers out" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss.
(3)Includes cash flow hedges. See Note 4 for information on cash flow hedges.
(4)"Other costs" primarily includes reinsurance recoverables, DSI and VOBA.
(5)"Other liabilities" primarily includes reinsurance payables and deferred reinsurance gains.
(6)Represents net unrealized gains (losses) for which an OTTI had been previously recognized.