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Future Policy Benefits and Other Policyholder Liabilities
12 Months Ended
Dec. 31, 2014
Future Policy Benefits and Other Policyholder Liabilities
8. Future Policy Benefits and Other Policyholder Liabilities

Life insurance liabilities include reserves for death benefits and other policy benefits. As of December 31, 2014 and 2013, future policy benefits and other policyholder liabilities consisted of the following:

 

     Successor          Predecessor  

($ in thousands)

   December 31, 2014          December 31, 2013  

Traditional life insurance

   $ 1,492,438          $ 1,548,134   

Immediate fixed annuities

     635,858            676,565   

Accident and health insurance

     1,462,110            1,324,268   

Equity indexed annuities

     1,895,889            —     

Other

     977,669            8,444   
  

 

 

       

 

 

 

Total

$ 6,463,964      $ 3,557,411   
  

 

 

       

 

 

 

 

Successor

Future policy benefits are generally equal to the present value of future benefit payments and related expenses, less the present value of future net premiums. Assumptions as to mortality, morbidity and persistency are based on the Company’s experience, industry data, and/or other factors, when the basis of the reserve is established. Interest rates used in the determination of present values range from 2.5% to 6.0% for setting reserves.

Predecessor

The following table highlights the key assumptions generally used in calculating the reserve for life-contingent contract benefits as of December 31, 2013:

 

Product

 

Mortality

 

Interest rate

 

Estimation method

Traditional life insurance   Actual company experience plus loading   Interest rate assumptions range from 2.5% to 8.0%   Net level premium reserve method using the Company’s withdrawal experience rates; includes reserves for unpaid claims
Immediate fixed annuities   1983 individual annuity mortality table with internal modifications; 1983 individual annuity mortality table; Annuity 2000 mortality table with internal modifications   Interest rate assumptions range from 0% to 8.8%   Present value of expected future benefits based on historical experience
Accident and health insurance   Actual company experience plus loading   Interest rate assumptions range from 4.0% to 5.3%   Unearned premium; additional contract reserves for mortality risk and unpaid claims
Other:
Variable annuity guaranteed minimum death benefits
  Annuity 2000 mortality table with internal modifications   Interest rate assumptions range from 4.0% to 5.8%   Projected benefit ratio applied to cumulative assessments