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Investments (Tables)

9 Months Ended

Sep. 30, 2019

The following tables provide information relating to investments in fixed maturity securities by sector as of September 30, 2019 and December 31, 2018 (dollars in thousands):



September 30, 2019:	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value		% of Total		Other-than- temporary Impairments in AOCI
Available-for-sale:
Corporate	$	28,154,301	$	2,277,070	$	78,152	$	30,353,219	61.3	%	$	—
Canadian government	2,962,729		1,670,680		190		4,633,219		9.4		—
RMBS	2,360,691		81,367		2,216		2,439,842		4.9		—
ABS	2,809,008		27,621		13,994		2,822,635		5.7		275
CMBS	1,698,334		84,345		461		1,782,218		3.6		—
U.S. government	1,570,540		98,193		228		1,668,505		3.4		—
State and political subdivisions	1,078,019		113,684		1,600		1,190,103		2.4		—
Other foreign government	4,226,819		370,109		5,402		4,591,526		9.3		—
Total fixed maturity securities	$	44,860,441	$	4,723,069	$	102,243	$	49,481,267	100.0	%	$	275



December 31, 2018:	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value		% of Total		Other-than- temporary Impairments in AOCI
Available-for-sale:
Corporate	$	24,006,407	$	530,804	$	555,092	$	23,982,119	59.9	%	$	—
Canadian government	2,768,466		1,126,227		2,308		3,892,385		9.7		—
RMBS	1,872,236		22,267		25,282		1,869,221		4.7		—
ABS	2,171,254		10,779		32,829		2,149,204		5.4		275
CMBS	1,428,115		9,153		18,234		1,419,034		3.5		—
U.S. government	2,233,537		10,204		57,867		2,185,874		5.5		—
State and political subdivisions	721,290		39,914		9,010		752,194		1.9		—
Other foreign government	3,680,863		109,320		47,868		3,742,315		9.4		—
Total fixed maturity securities	$	38,882,168	$	1,858,668	$	748,490	$	39,992,346	100.0	%	$	275

Schedule of Financial Instruments Owned and Pledged as Collateral [Table Text Block]

The following table includes fixed maturity securities pledged and received as collateral and assets in trust held to satisfy collateral requirements under derivative transactions and certain third-party reinsurance treaties as of September 30, 2019 and December 31, 2018 (dollars in thousands):



	September 30, 2019				December 31, 2018
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Fixed maturity securities pledged as collateral	$	95,387	$	99,393	$	80,891	$	83,950
Fixed maturity securities received as collateral	n/a		696,435		n/a		616,584
Assets in trust held to satisfy collateral requirements	26,332,915		28,368,125		20,072,735		20,366,170

Concentration Risk Disclosure [Text Block]

The Company’s exposure to concentrations of credit risk from single issuers greater than 10% of the Company’s stockholders’ equity included securities of the U.S. government and its agencies as well as the securities disclosed below as of September 30, 2019 and December 31, 2018 (dollars in thousands).



	September 30, 2019				December 31, 2018
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Fixed maturity securities guaranteed or issued by:
Canadian province of Quebec	$	1,167,744	$	2,153,434	$	1,091,018	$	1,757,087
Canadian province of Ontario	981,279		1,371,571		913,642		1,187,526

Investments Classified By Contractual Maturity Date

The amortized cost and estimated fair value of fixed maturity securities classified as available-for-sale at September 30, 2019 are shown by contractual maturity in the table below (dollars in thousands). Actual maturities can differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Asset and mortgage-backed securities are shown separately in the table below, as they are not due at a single maturity date.



	Amortized Cost		Estimated Fair Value
Available-for-sale:
Due in one year or less	$	1,538,152	$	1,547,966
Due after one year through five years	8,318,044		8,656,979
Due after five years through ten years	9,485,912		10,275,538
Due after ten years	18,650,300		21,956,089
Asset and mortgage-backed securities	6,868,033		7,044,695
Total	$	44,860,441	$	49,481,267

Fixed Maturity Holdings Industry Types Weighted Average Credit Ratings [Table Text Block]

The tables below show the major industry types of the Company’s corporate fixed maturity holdings as of September 30, 2019 and December 31, 2018 (dollars in thousands):



September 30, 2019:			Estimated
	Amortized Cost		Fair Value		% of Total
Finance	$	10,604,290	$	11,327,324	37.3	%
Industrial	14,099,496		15,213,256		50.1
Utility	3,450,515		3,812,639		12.6
Total	$	28,154,301	$	30,353,219	100.0	%

December 31, 2018:			Estimated
	Amortized Cost		Fair Value		% of Total
Finance	$	8,793,742	$	8,730,568	36.3	%
Industrial	12,336,857		12,342,111		51.6
Utility	2,875,808		2,909,440		12.1
Total	$	24,006,407	$	23,982,119	100.0	%

Investments In Debt And Equity Securities Gross Unrealized Losses Disclosures

The following table presents the total gross unrealized losses for the 856 and 3,109 fixed maturity securities as of September 30, 2019 and December 31, 2018, respectively, where the estimated fair value had declined and remained below amortized cost by the indicated amount (dollars in thousands):



	September 30, 2019				December 31, 2018
	Gross Unrealized Losses		% of Total		Gross Unrealized Losses		% of Total
Less than 20%	$	75,658	74.0	%	$	721,015	96.3	%
20% or more for less than six months	10,064		9.8		21,336		2.9
20% or more for six months or greater	16,521		16.2		6,139		0.8
Total	$	102,243	100.0	%	$	748,490	100.0	%

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block]

The following tables present the estimated fair values and gross unrealized losses, including other-than-temporary impairment losses reported in AOCI, for 856 and 3,109 fixed maturity securities that have estimated fair values below amortized cost as of September 30, 2019 and December 31, 2018, respectively (dollars in thousands). These investments are presented by class and grade of security, as well as the length of time the related fair value has remained below amortized cost.



	Less than 12 months				12 months or greater				Total
			Gross				Gross				Gross
September 30, 2019:	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Investment grade securities:
Corporate	$	1,570,113	$	25,598	$	410,462	$	11,576	$	1,980,575	$	37,174
Canadian government	867		10		17,509		180		18,376		190
RMBS	222,644		987		116,037		1,218		338,681		2,205
ABS	765,223		4,861		413,297		9,133		1,178,520		13,994
CMBS	48,699		218		32,638		232		81,337		450
U.S. government	2,758		7		65,220		221		67,978		228
State and political subdivisions	11,129		97		13,838		1,503		24,967		1,600
Other foreign government	198,170		3,474		45,430		761		243,600		4,235
Total investment grade securities	2,819,603		35,252		1,114,431		24,824		3,934,034		60,076
Below investment grade securities:
Corporate	206,108		24,561		122,670		16,417		328,778		40,978
RMBS	—		—		939		11		939		11
CMBS	1,042		11		—		—		1,042		11
Other foreign government	12,914		290		13,173		877		26,087		1,167
Total below investment grade securities	220,064		24,862		136,782		17,305		356,846		42,167
Total fixed maturity securities	$	3,039,667	$	60,114	$	1,251,213	$	42,129	$	4,290,880	$	102,243



	Less than 12 months				12 months or greater				Total
			Gross				Gross				Gross
December 31, 2018:	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Investment grade securities:
Corporate	$	8,505,371	$	302,604	$	3,611,266	$	195,082	$	12,116,637	$	497,686
Canadian government	25,169		419		131,806		1,612		156,975		2,031
RMBS	269,558		2,488		836,741		22,760		1,106,299		25,248
ABS	1,102,677		24,271		381,609		8,523		1,484,286		32,794
CMBS	384,259		4,304		414,719		13,930		798,978		18,234
U.S. government	8,616		80		1,086,694		57,787		1,095,310		57,867
State and political subdivisions	103,504		1,538		157,330		7,472		260,834		9,010
Other foreign government	789,859		24,509		472,934		17,446		1,262,793		41,955
Total investment grade securities	11,189,013		360,213		7,093,099		324,612		18,282,112		684,825
Below investment grade securities:
Corporate	755,679		42,760		122,559		14,646		878,238		57,406
Canadian government	443		34		1,770		243		2,213		277
RMBS	—		—		1,026		34		1,026		34
ABS	—		—		1,063		35		1,063		35
Other foreign government	128,725		5,574		7,479		339		136,204		5,913
Total below investment grade securities	884,847		48,368		133,897		15,297		1,018,744		63,665
Total fixed maturity securities	$	12,073,860	$	408,581	$	7,226,996	$	339,909	$	19,300,856	$	748,490

Investment Income

Major categories of investment income, net of related expenses, consist of the following (dollars in thousands):



	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019			2018
Fixed maturity securities available-for-sale	$	464,431		$	378,669		$	1,307,359		$	1,121,496
Equity securities	1,709			1,319			3,600			3,710
Mortgage loans on real estate	67,071			54,424			187,142			155,083
Policy loans	14,580			14,730			43,083			44,285
Funds withheld at interest	81,862			108,232			209,568			270,094
Short-term investments and cash and cash equivalents	6,152			3,067			20,517			9,276
Other invested assets	66,611			35,594			140,757			80,207
Investment income	702,416			596,035			1,912,026			1,684,151
Investment expense	(23,611		)	(23,293		)	(69,266		)	(67,019		)
Investment income, net of related expenses	$	678,805		$	572,742		$	1,842,760		$	1,617,132

Gain Loss On Investments

Investment related gains (losses), net, consist of the following (dollars in thousands):



	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019			2018
Fixed maturity securities available-for-sale:
Other-than-temporary impairment losses	$	(8,539	)	$	(10,705	)	$	(17,992	)	$	(14,055	)
Gain on investment activity	67,980			20,040			116,409			52,146
Loss on investment activity	(12,996		)	(37,880		)	(38,589		)	(94,194		)
Equity securities:
Gain on investment activity	432			3,932			506			4,429
Loss on investment activity	—			(174		)	(1		)	(1,124		)
Change in unrealized gains (losses) recognized in earnings	3,396			3,539			9,813			(7,564		)
Other impairment losses and change in mortgage loan provision	(4,030		)	(6,566		)	(11,498		)	(8,235		)
Derivatives and other, net	2,541			7,797			10,396			37,538
Total investment related gains (losses), net	$	48,784		$	(20,017	)	$	69,044		$	(31,059	)

Schedule of Repurchase Agreements [Table Text Block]

The following table includes the amount of borrowed securities, securities lent and securities collateral received as part of the securities lending program and repurchased/reverse repurchased securities pledged and received as of September 30, 2019 and December 31, 2018 (dollars in thousands).



	September 30, 2019				December 31, 2018
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Borrowed securities	$	335,408	$	372,617	$	335,781	$	366,663
Securities lending:
Securities loaned	97,606		104,191		101,981		102,618
Securities received	n/a		107,000		n/a		112,000
Repurchase program/reverse repurchase program:
Securities pledged	610,701		644,471		554,806		554,589
Securities received	n/a		624,348		n/a		530,932

Schedule of Underlying Assets of Repurchase Agreements when Amount of Repurchase Agreements Exceeds 10 Percent of Assets [Table Text Block]

The following tables present information on the Company’s securities lending and repurchase transactions as of September 30, 2019 and December 31, 2018, respectively (dollars in thousands). Collateral associated with certain borrowed securities is not included within the table, as the collateral pledged to each counterparty is the right to reinsurance treaty cash flows.



	September 30, 2019
	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
Securities lending transactions:
Corporate	$	—	$	—	$	—	$	104,191	$	104,191
Total	—		—		—		104,191		104,191
Repurchase transactions:
Corporate	—		—		—		324,033		324,033
U.S. government	—		—		66,264		142,124		208,388
Foreign government	—		—		—		112,050		112,050
Other	—		—		—		—		—
Total	—		—		66,264		578,207		644,471
Total borrowings	$	—	$	—	$	66,264	$	682,398	$	748,662

Gross amount of recognized liabilities for securities lending and repurchase transactions in preceding table									$	758,883
Amounts related to agreements not included in offsetting disclosure									$	10,221



	December 31, 2018
	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
Securities lending transactions:
Corporate	$	—	$	—	$	—	$	102,618	$	102,618
Total	$	—	$	—	$	—	$	102,618	$	102,618
Repurchase transactions:
Corporate	$	—	$	—	$	—	$	254,151	$	254,151
U.S. government	—		—		—		221,572		221,572
Foreign government	—		—		—		78,866		78,866
Total	—		—		—		554,589		554,589
Total borrowings	$	—	$	—	$	—	$	657,207	$	657,207

Gross amount of recognized liabilities for securities lending and repurchase transactions in preceding table									$	671,492
Amounts related to agreements not included in offsetting disclosure									$	14,285

Disclosure Of Real Estate Holdings By Property Type [Table Text Block]

The distribution of mortgage loans by property type is as follows as of September 30, 2019 and December 31, 2018 (dollars in thousands):



	September 30, 2019					December 31, 2018
Property type:	Carrying Value			% of Total		Carrying Value			% of Total
Office building	$	1,787,871		31.6	%	$	1,725,748		34.6	%
Retail	1,645,521			29.0		1,432,394			28.7
Industrial	1,137,598			20.1		961,924			19.3
Apartment	748,392			13.2		571,291			11.5
Other commercial	347,972			6.1		291,997			5.9
Recorded investment	5,667,354			100.0	%	4,983,354			100.0	%
Unamortized balance of loan origination fees and expenses	(8,314		)			(5,770		)
Valuation allowances	(11,775		)			(11,286		)
Total mortgage loans on real estate	$	5,647,265				$	4,966,298

Mortgage Loans Classified By Contractual Maturity Date [Table Text Block]

The maturities of mortgage loans as of September 30, 2019 and December 31, 2018 are as follows (dollars in thousands):



	September 30, 2019				December 31, 2018
	Recorded Investment		% of Total		Recorded Investment		% of Total
Due within five years	$	1,750,771	30.9	%	$	1,425,598	28.6	%
Due after five years through ten years	3,001,527		53.0		2,686,264		53.9
Due after ten years	915,056		16.1		871,492		17.5
Total	$	5,667,354	100.0	%	$	4,983,354	100.0	%

Financing Receivable Credit Quality Indicators [Table Text Block]

The following tables set forth certain key credit quality indicators of the Company’s recorded investment in mortgage loans as of September 30, 2019 and December 31, 2018 (dollars in thousands):



	Recorded Investment
	Debt Service Ratios						Construction Loans
	>1.20x		1.00x - 1.20x		<1.00x		Construction Loans		Total		% of Total
September 30, 2019:
Loan-to-Value Ratio
0% - 59.99%	$	2,912,673	$	91,954	$	12,932	$	21,434	$	3,038,993	53.6	%
60% - 69.99%	1,889,981		83,814		37,321		—		2,011,116		35.5
70% - 79.99%	395,599		—		32,586		—		428,185		7.6
Greater than 80%	116,605		49,087		23,368		—		189,060		3.3
Total	$	5,314,858	$	224,855	$	106,207	$	21,434	$	5,667,354	100.0	%



	Recorded Investment
	Debt Service Ratios						Construction Loans
	>1.20x		1.00x - 1.20x		<1.00x		Construction Loans		Total		% of Total
December 31, 2018:
Loan-to-Value Ratio
0% - 59.99%	$	2,410,556	$	61,246	$	38,177	$	13,691	$	2,523,670	50.6	%
60% - 69.99%	1,618,374		73,908		38,120		18,929		1,749,331		35.1
70% - 79.99%	414,269		48,438		54,440		—		517,147		10.4
Greater than 80%	117,978		49,668		25,560		—		193,206		3.9
Total	$	4,561,177	$	233,260	$	156,297	$	32,620	$	4,983,354	100.0	%

Financing Receivable, Past Due [Table Text Block]

The age analysis of the Company’s past due recorded investments in mortgage loans as of September 30, 2019 and December 31, 2018 is as follows (dollars in thousands):



	September 30, 2019		December 31, 2018
31-60 days past due	$	21,065	$	—
Total past due	21,065		—
Current	5,646,289		4,983,354
Total	$	5,667,354	$	4,983,354

Recorded Investment And Allowance For Credit Losses

The following table presents the recorded investment in mortgage loans, by method of measuring impairment, and the related valuation allowances as of September 30, 2019 and December 31, 2018 (dollars in thousands):



	September 30, 2019		December 31, 2018
Mortgage loans:
Individually measured for impairment	$	17,016	$	30,635
Collectively measured for impairment	5,650,338		4,952,719
Recorded investment	$	5,667,354	$	4,983,354
Valuation allowances:
Individually measured for impairment	$	—	$	—
Collectively measured for impairment	11,775		11,286
Total valuation allowances	$	11,775	$	11,286

Allowance For Mortgage Loan And Lease Losses Provision For Loss Net

Information regarding the Company’s loan valuation allowances for mortgage loans for the three and nine months ended September 30, 2019 and 2018 is as follows (dollars in thousands):



	Three months ended September 30,					Nine months ended September 30,
	2019			2018		2019		2018
Balance, beginning of period	$	11,692		$	9,706	$	11,286	$	9,384
Provision (release)	88			656		485		986
Translation adjustment	(5		)	4		4		(4		)
Balance, end of period	$	11,775		$	10,366	$	11,775	$	10,366

Impaired Financing Receivables Table

Information regarding the portion of the Company’s mortgage loans that were impaired as of September 30, 2019 and December 31, 2018 is as follows (dollars in thousands):



	Unpaid Principal Balance		Recorded Investment		Related Allowance		Carrying Value
September 30, 2019:
Impaired mortgage loans with no valuation allowance recorded	$	17,017	$	17,016	$	—	$	17,016
Impaired mortgage loans with valuation allowance recorded	—		—		—		—
Total impaired mortgage loans	$	17,017	$	17,016	$	—	$	17,016
December 31, 2018:
Impaired mortgage loans with no valuation allowance recorded	$	30,660	$	30,635	$	—	$	30,635
Impaired mortgage loans with valuation allowance recorded	—		—		—		—
Total impaired mortgage loans	$	30,660	$	30,635	$	—	$	30,635

The Company’s average investment balance of impaired mortgage loans and the related interest income are reflected in the table below for the periods indicated (dollars in thousands):
	Three months ended September 30,
	2019				2018
	Average Recorded Investment⁽¹⁾		Interest Income		Average Recorded Investment⁽¹⁾		Interest Income
Impaired mortgage loans with no valuation allowance recorded	$	17,015	$	170	$	30,641	$	346
Impaired mortgage loans with valuation allowance recorded	—		—		—		—
Total impaired mortgage loans	$	17,015	$	170	$	30,641	$	346

	Nine months ended September 30,
	2019				2018
	Average Recorded Investment⁽¹⁾		Interest Income		Average Recorded Investment⁽¹⁾		Interest Income
Impaired mortgage loans with no valuation allowance recorded	$	20,436	$	669	$	22,641	$	650
Impaired mortgage loans with valuation allowance recorded	—		—		—		—
Total impaired mortgage loans	$	20,436	$	669	$	22,641	$	650

(1) Average recorded investment represents the average loan balances as of the beginning of period and all subsequent quarterly end of period balances.

Schedule Of Other Invested Assets [Table Text Block]

Carrying values of these assets as of September 30, 2019 and December 31, 2018 were as follows (dollars in thousands):



	September 30, 2019		December 31, 2018
Limited partnership interests and real estate joint ventures	$	1,059,025	$	965,094
Lifetime mortgages	669,981		475,905
Derivatives	142,099		180,699
FVO contractholder-directed unit-linked investments	252,277		197,770
Other	91,893		95,829
Total other invested assets	$	2,215,275	$	1,915,297