Investments (Tables)

12 Months Ended

Dec. 31, 2015

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, 2015 and 2014 were as follows:

December 31, 2015 — 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	$	163,096	$	5,563	$	(81	)	$	168,578
Obligations of U.S. States and Political Subdivisions		712,948		14,827		(7,018	)		720,757
Foreign government		72,042		202		(10,601	)		61,643
Corporate securities		6,060,561		31,263		(353,149	)		5,738,675
ABS		542,503		2,517		(8,229	)		536,791
CMBS		513,316		627		(7,244	)		506,699
RMBS		209,728		4,600		(1,529	)		212,799
Total fixed maturities	$	8,274,194	$	59,599	$	(387,851	)	$	7,945,942
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	$	287,077	$	20,933	$	(58	)	$	307,952
Obligations of U.S. States and Political Subdivisions		517,378		26,888		(531	)		543,735
Foreign government		250,008		5,637		(437	)		255,208
Corporate securities		7,279,391		132,481		(34,127	)		7,377,745
ABS		378,906		6,145		(2,408	)		382,643
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

Schedule for Fixed Income Securities Based on Contractual Maturities

The scheduled maturities for fixed maturities are as follows as of December 31, 2015:

($ in thousands)	Amortized Cost		Fair Value
Due in one year or less	$	190,261	$	189,547
Due after one year through five years		1,461,237		1,459,059
Due after five years through ten years		2,148,851		2,092,046
Due after ten years		3,208,298		2,949,002
Total before asset and mortgage-backed securities		7,008,647		6,689,654
Asset and mortgage-backed securities		1,265,547		1,256,288
Total fixed maturities	$	8,274,194	$	7,945,942

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, 2015 and December 31, 2014:

($ in thousands)	December 31, 2015		December 31, 2014
Alabama	$	1,508	$	1,720
Arizona		34,911		35,481
California		336,310		255,563
Colorado		57,207		22,381
Connecticut		25,374		—
Florida		86,698		20,779
Georgia		67,213		27,502
Hawaii		7,134		8,125
Illinois		92,813		53,174
Iowa		1,266		1,490
Kansas		9,200		—
Kentucky		7,696		8,260
Maine		3,905		4,114
Maryland		33,844		35,536
Massachusetts		90,897		92,963
Minnesota		148,346		52,496
Missouri		—		9,324
Nevada		14,262		14,705
New Jersey		68,720		84,007
New York		94,985		72,625
North Carolina		58,078		31,111
Ohio		36,954		38,400
Oklahoma		10,803		10,835
Pennsylvania		41,975		37,688
South Carolina		2,532		3,130
Tennessee		5,278		5,719
Texas		107,279		103,778
Utah		44,366		45,914
Virginia		2,353		18,572
Washington		11,550		13,138
Wisconsin		5,675		6,637
General allowance for loan loss		—		—
Total commercial mortgage loans	$	1,509,132	$	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, 2015 and December 31, 2014:

	Recorded Investment
	Debt Service Coverage Ratios
December 31, 2015 ($ in thousands)	> 1.20x		1.00x - 1.20x		< 1.00x		Total		% of Total			Estimated Fair Value		% of Total
	(In thousands)											(In thousands)
Loan-to-value ratios:
Less than 65%	$	869,470	$	85,869	$	19,862	$	975,201		64.6	%	$	1,000,948		65.1	%
65% to 75%		508,557		25,374		—		533,931		35.4			535,690		34.9
76% to 80%		—		—		—		—		0.0			—		0.0
Greater than 80%		—		—		—		—		0.0			—		0.0
Total	$	1,378,027	$	111,243	$	19,862	$	1,509,132		100.0	%	$	1,536,638		100.0	%
	Recorded Investment
	Debt Service Coverage Ratios
December 31, 2014 ($ in thousands)	> 1.20x		1.00x - 1.20x		< 1.00x		Total		% of Total			Estimated Fair Value		% of Total
	(In thousands)											(In thousands)
Loan-to-value ratios:
Less than 65%	$	930,592	$	151,700	$	29,460	$	1,111,752		97.6	%	$	1,146,030		97.6	%
65% to 75%		16,591		10,537		—		27,128		2.4			28,275		2.4
76% to 80%		—		—		—		—		0.0			—		0.0
Greater than 80%		—		—		—		—		0.0			—		0.0
Total	$	947,183	$	162,237	$	29,460	$	1,138,880		100.0	%	$	1,174,305		100.0	%

Composition of Other Invested Assets

The following table sets forth the composition of “Other invested assets” as of December 31, 2015 and December 31, 2014:

Amortized Cost

	Successor		Successor
($ in thousands)	December 31, 2015		December 31, 2014
Low income housing tax credit properties	$	677	$	896
Derivatives		17,735		26,001
	$	18,412	$	26,897

Schedule of Net Investment Income

Net investment income for Successor Periods for the year ended December 31, 2015 and the period from April 1, 2014 through December 31, 2014 and Predecessor Periods for the period from January 1, 2014 through March 31, 2014 and year ended December 31, 2013 were as follows:

	Successor				Predecessor
($ in thousands)	For the Year Ended December 31, 2015		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
Fixed maturities	$	334,931	$	231,972	$	2,461	$	11,545
Commercial mortgage loans		63,028		49,417		—		—
Cash, cash equivalents and short-term investments		511		4,786		16		23
Other investment (loss) income		9,543		7,353		—		—
Gross investment income		408,013		293,528		2,477		11,568
Investment expenses		9,082		4,957		127		633
Net investment income	$	398,931	$	288,571	$	2,350	$	10,935

Schedule of Realized Investment Gains and Losses

Realized investment gains and losses for Successor Periods for the year ended December 31, 2015 and for the period from April 1, 2014 through December 31, 2014 and Predecessor Periods for the period from January 1, 2014 through March 31, 2014 and year ended December 31, 2013 were as follows:

	Successor					Predecessor
($ in thousands)	For the Year Ended December 31, 2015			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
Realized investment gains, net
Fixed maturities	$	120,421		$	25,795	$	285	$	—
Commercial mortgage loans		2,325			2,880		—		—
Derivatives		(9,208	)		17,417		—		—
Net realized gains	$	113,538		$	46,092	$	285	$	—

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 Successor Periods for the year ended December 31, 2015 and for the period from April 1, 2014 through December 31, 2014 and Predecessor Periods for the period from January 1, 2014 through March 31, 2014 and year ended December 31, 2013 were as follows:

	Successor						Predecessor
($ in thousands)	For the Year Ended December 31, 2015			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
Fixed maturities, available-for-sale
Proceeds from sales	$	3,864,356		$	1,429,177		$	5,277		$	9,170
Gross investment gains from sales		147,287			30,403			317			3
Gross investment losses from sales		(26,829	)		(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, 2015 and December 31, 2014:

	Less than 12 months					Greater than 12 months
December 31, 2015 ($ in thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
U.S. Treasury Securities and Obligations of U.S. Government Authority and Agencies	$	18,639	$	(77	)	$	98	$	(4	)	$	18,737	$	(81	)
Obligations of U.S. States and Political Subdivisions		207,889		(6,983	)		4,030		(35	)		211,919		(7,018	)
Foreign government		41,507		(8,665	)		5,965		(1,936	)		47,472		(10,601	)
All other corporate securities		3,523,371		(293,131	)		209,474		(60,018	)		3,732,845		(353,149	)
ABS		397,884		(7,031	)		15,040		(1,198	)		412,924		(8,229	)
CMBS		437,244		(7,164	)		8,419		(80	)		445,663		(7,244	)
RMBS		65,470		(776	)		29,659		(753	)		95,129		(1,529	)
Total fixed income securities	$	4,692,004	$	(323,827	)	$	272,685	$	(64,024	)	$	4,964,689	$	(387,851	)
	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
U.S. Treasury Securities and Obligations of U.S. Government Authority and Agencies	$	14,160	$	(58	)	$	—	$	—		$	14,160	$	(58	)
Obligations of U.S. States and Political Subdivisions		57,605		(531	)		—		—			57,605		(531	)
Foreign government		37,543		(437	)		—		—			37,543		(437	)
All other corporate securities		1,683,186		(34,127	)		—		—			1,683,186		(34,127	)
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	)

Net Unrealized Investment Gains and Losses in AOCI

Net Unrealized Investment Gains and Losses in AOCI

($ in thousands) Predecessor	Net Unrealized Gain (Losses) on Investments			VOBA			Future Policy Benefits and Policyholders’ Account Balances			Deferred Income Tax (Liability) Benefit			Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses)
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			—			—			(55,675	)		103,586
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	)		2,640			(4,901	)
Balance, December 31, 2014	$	159,261		$	(20,287	)	$	(7,541	)	$	(45,935	)	$	85,498
Net investment gains and losses on investments arising during the period		(408,019	)		—			—			142,807			(265,212	)
Reclassification adjustment for gains and losses included in net income		79,023			—			—			(27,658	)		51,365
Impact of net unrealized investment gains and losses on VOBA		—			57,061			—			(19,971	)		37,090
Impact of net unrealized investment gains and losses on future policy benefits and policyholders’ account balances		—			—			60,447			(21,157	)		39,290
Balance, December 31, 2015	$	(327,781	)	$	36,774		$	52,906		$	83,402		$	(154,699	)