Investments (Tables)

12 Months Ended

Dec. 31, 2014

Schedule for Fixed Income Securities at Amortized Cost, Gross Unrealized Gains and Losses and Fair Value

The amortized cost, gross unrealized gains and losses and fair value for fixed maturities as of December 31, 2014 and 2013 were as follows:

December 31, 2014 — Successor ($ in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed maturities
U.S. Treasury Securities and Obligations of U.S. Government Authority and Agencies	$	810,057	$	47,859	$	(590	)	$	857,326
Obligations of U.S. States and Political Subdivisions		250,008		5,638		(437	)		255,209
All other corporate securities		7,279,391		132,480		(34,126	)		7,377,745
ABS		373,304		6,107		(2,408	)		377,003
CMBS		331,041		3,507		(1,065	)		333,483
RMBS		188,055		2,849		(1,023	)		189,881
Total fixed maturities	$	9,231,856	$	198,440	$	(39,649	)	$	9,390,647
December 31, 2013 — Predecessor ($ in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed maturities
U.S. government and agenciies	$	70,790	$	3,113	$	(57	)	$	73,846
Municipal		2,499		270		—			2,769
Corporate		190,186		5,784		(3,993	)		191,977
Foreign government		4,999		165		—			5,164
CMBS		2,588		88		—			2,676
RMBS		13,866		584		—			14,450
Total fixed maturities	$	284,928	$	10,004	$	(4,050	)	$	290,882

Schedule for Fixed Income Securities Based on Contractual Maturities

The scheduled maturities for fixed maturities are as follows as of December 31, 2014:

($ in thousands)	Amortized Cost		Fair Value
Due in one year or less	$	425,248	$	425,238
Due after one year through five years		1,775,910		1,779,194
Due after five years through ten years		4,001,723		4,060,017
Due after ten years		2,136,575		2,225,831
Total before asset and mortgage-backed securities		8,339,456		8,490,280
Asset and mortgage-backed securities		892,400		900,367
Total fixed maturities	$	9,231,856	$	9,390,647

Schedule of Commercial Mortgage Loan Portfolio by Geographical Region

The Company diversifies its commercial mortgage loan portfolio by geographical region to reduce concentration risk. The following table presents the Company’s commercial mortgage loan portfolio by geographical region as of December 31, 2014:

($ in thousands)	Carrying Value
Alabama	$	1,720
Arizona		35,481
California		255,563
Colorado		22,381
Florida		20,779
Georgia		27,502
Hawaii		8,125
Illinois		53,174
Iowa		1,490
Kentucky		8,260
Maine		4,114
Maryland		35,536
Massachusetts		92,963
Minnesota		52,496
Missouri		9,324
Nevada		14,705
New Jersey		84,007
New York		72,625
North Carolina		31,111
Ohio		38,400
Oklahoma		10,835
Pennsylvania		37,688
South Carolina		3,130
Tennessee		5,719
Texas		103,778
Utah		45,914
Virginia		18,572
Washington		13,138
Wisconsin		6,637
General allowance for loan loss		—
Total commercial mortgage loans	$	1,115,167

Schedule of Credit Quality of Commercial Mortgage Loans Held-For-Investment

The credit quality of commercial mortgage loans held-for-investment were as follows at December 31, 2014:

	Recorded Investment
	Debt Service Coverage Ratios
($ in thousands)	> 1.20x		1.00x - 1.20x		< 1.00x		Total		% of Total			Estimated Fair Value		% of Total
Loan-to-value ratios:
Less than 65%	$	930,592	$	151,700	$	29,460	$	1,111,752		98	%	$	1,146,030		98	%
65% to 75%		16,591		10,537		—		27,128		2			28,275		2
76% to 80%		—		—		—		—		—			—		—
Greater than 80%		—		—		—		—		—			—		—
Total	$	947,183	$	162,237	$	29,460	$	1,138,880		100	%	$	1,174,305		100	%

Composition of Other Invested Assets

The following table sets forth the composition of “Other invested assets” at December 31, 2014:

	Successor
($ in thousands)	December 31, 2014
Low income housing tax credit properties	$	896
Derivatives		26,001
	$	26,897

Schedule of Net Investment Income

Net investment income for the Successor Period from April 1, 2014 through December 31, 2014 and Predecessor Periods for the period from January 1, 2014 through March 31, 2014 and years ended December 31, 2013 and 2012 were as follows:

	Successor		Predecessor
($ in thousands)	For the Period from April 1, 2014 through December 31, 2014		For the Period from January 1, 2014 through March 31, 2014		For the Year Ended December 31, 2013		For the Year Ended December 31, 2012
Fixed maturities	$	231,972	$	2,461	$	11,545	$	12,138
Commercial mortgage loans		49,417		—		—		—
Cash and short-term investments		4,786		16		23		20
Other investment (loss) income		7,353		—		—		—
Gross investment income		293,528		2,477		11,568		12,158
Investment expenses		4,957		127		633		568
Net investment income	$	288,571	$	2,350	$	10,935	$	11,590

Schedule of Realized Investment Gains and Losses

Realized investment gains and losses for the Successor Period from April 1, 2014 through December 31, 2014 and Predecessor Periods for the period from January 1, 2014 through March 31, 2014 and years ended December 31, 2013 and 2012 were as follows:

	Successor		Predecessor
($ in thousands)	For the Period from April 1, 2014 through December 31, 2014		For the Period from January 1, 2014 through March 31, 2014		For the Year Ended December 31, 2013		For the Year Ended December 31, 2012
Realized investment gains, net
Fixed maturities	$	25,795	$	285	$	—	$	626
Commercial mortgage loans		2,880		—		—		—
Derivatives		17,417		—		—		—
Other		—		—		—		—
Net realized gains	$	46,092	$	285	$	—	$	626

Proceeds from Sale of Fixed Maturities and Gross Realized Investment Gains and Losses

Proceeds from sales of fixed maturities and gross realized investment gains and losses for the Successor Period from April 1, 2014 through December 31, 2014 and Predecessor Periods for the period from January 1, 2014 through March 31, 2014 and years ended December 31, 2013 and 2012 were as follows:

	Successor			Predecessor
($ in thousands)	For the Period from April 1, 2014 through December 31, 2014			For the Period from January 1, 2014 through March 31, 2014			For the Year Ended December 31, 2013			For the Year Ended December 31, 2012
Fixed maturities, available-for-sale
Proceeds from sales	$	1,429,177		$	5,277		$	9,170		$	25,367
Gross investment gains from sales		30,403			317			3			645
Gross investment losses from sales		(4,608	)		(32	)		(1	)		—

Summary of Gross Unrealized Losses and Fair Value of Fixed Income by Length of Time

The following table summarizes the gross unrealized losses and fair value of fixed maturities by the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2014 and 2013:

Successor	Less than 12 months					Greater than 12 months
December 31, 2014 ($ in thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Fixed maturities
U.S. Treasury Securities and Obligations of U.S. Government Authority and Agencies	$	71,766	$	(590	)	$	—	$	—		$	71,766	$	(590	)
Obligations of U.S. States and Political Subdivisions		37,543		(437	)		—		—			37,543		(437	)
All other corporate securities		1,683,185		(34,126	)		—		—			1,683,185		(34,126	)
ABS		115,568		(2,408	)		—		—			115,568		(2,408	)
CMBS		135,203		(1,065	)		—		—			135,203		(1,065	)
RMBS		92,804		(1,023	)		—		—			92,804		(1,023	)
Total fixed income securities	$	2,136,069	$	(39,649	)	$	—	$	—		$	2,136,069	$	(39,649	)
Predecessor	Less than 12 months					Greater than 12 months
December 31, 2013 ($ in thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Fixed maturities
U.S. government agencies	$	4,942	$	(57	)	$	—	$	—		$	4,942	$	(57	)
Corporate		75,754		(3,795	)		1,770		(198	)		77,524		(3,993	)
Total fixed income securities	$	80,696	$	(3,852	)	$	1,770	$	(198	)	$	82,466	$	(4,050	)

Net Unrealized Investment Gains and Losses in AOCI

Net Unrealized Investment Gains and Losses in Accumulated Other Comprehensive Income

($ in thousands) Predecessor	Net Unrealized Gain (Losses) on Investments			VOBA			Future Policy Benefits and Policyholders’ Account Balances			Deferred Income Tax (Liability) Asset			Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses)
Balance, December 31, 2011	$	20,855		$	—		$	—		$	(7,299	)	$	13,556
Net investment gains and losses on investments arising during the period		977			—			—			(343	)		634
Reclassification adjustment for gains and losses included in net income		596			—			—			(209	)		387
Balance, December 31, 2012	$	21,236		$	—		$	—		$	(7,433	)	$	13,803
Net investment gains and losses on investments arising during the period		(15,281	)		—			—			5,349			(9,932	)
Reclassification adjustment for gains and losses included in net income		1			—			—			—			1
Balance, December 31, 2013	$	5,954		$	—		$	—		$	(2,084	)	$	3,870
Net investment gains and losses on investments arising during the period		2,364			—			—			(828	)		1,536
Reclassification adjustment for gains and losses included in net income		285			—			—			(100	)		185
Balance, March 31, 2014	$	8,033		$	—		$	—		$	(2,812	)	$	5,221
Successor
Balance, April 1, 2014	$	—		$	—		$	—		$	—		$	—
Net investment gains and losses on investments arising during the period		159,261			—			—			(55,674	)		103,587
Reclassification adjustment for gains and losses included in net income		—			—			—			—			—
Impact of net unrealized investment gains and losses on VOBA		—			(20,287	)		—			7,100			(13,187	)
Impact of net unrealized investment gains and losses on future policy benefits and policyholders’ account balances		—			—			(7,541	)		2,639			(4,902	)
Balance, December 31, 2014	$	159,261		$	(20,287	)	$	(7,541	)	$	(45,935	)	$	85,498