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Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2017
Summary of Notional and Fair Value Positions of Derivative Instruments

The notional and fair value positions of derivative financial instruments as of December 31, 2017 and 2016 were as follows:

 

    December 31, 2017     December 31, 2016  
    Notional     Gross Fair Value     Notional     Gross Fair Value  
    Assets     Liabilities     Assets     Liabilities     Assets     Liabilities     Assets     Liabilities  

($ in thousands)

                

Assets

                

Equity Options

   $ 237,250     $ 234,375     $ 39,397     $ (18,352 )    $ 410,500     $ 419,225     $ 34,248     $ (15,158 ) 

Futures

     —         —         —         —         16,913       —         —         (141 ) 

Liabilities

                

Policyholders account balances

                

Derivatives embedded in life and annuity contracts

                

Equity-indexed annuity contracts (2)

   $ —       $ 1,095,253     $ —       $ (57,531 )    $ —       $ 1,281,993     $ —       $ (55,871 ) 

Equity-indexed life contracts

     —         531,800       —         (29,911 )      —         460,261       —         (23,803 ) 

Guaranteed accumulation benefits (1)

     —         53,517       —         (4,557 )      —         77,212       —         (6,724 ) 

Guaranteed withdrawal benefits (1)

     —         9,939       —         (113 )      —         11,064       —         (111 ) 

 

(1)  These amounts are fully ceded in accordance with the Company’s reinsurance agreements. The corresponding receivables have been excluded from the table above.
(2)  Notional amount represents account value of equity indexed contracts
Amount and Location of Gains (Losses) Recognized in Income Net of Reinsurance for Derivatives Not Designated or Qualifying as Hedging Instruments

The amount and location of gains (losses) recognized in income, net of reinsurance, for derivatives that were not designated or qualifying as hedging instruments for the years ended December 31, 2017, 2016 and 2015 were as follows:

 

    2017     2016     2015  
    Realized
Investment Gains
(Losses)		     Policyholder
Benefits		     Realized
Investment Gains
(Losses)		     Policyholder
Benefits		     Realized
Investment Gains
(Losses)		     Policyholder
Benefits		  

($ in thousands)

            

Assets

            

Equity options

   $ 17,969     $ —       $ 2,472     $ —       $ (7,557 )    $ —    

Futures

     1,391       —         884       —         (1,651 )      —    

Interest rate swaps

     —         —         500       —         —         —    

Liabilities

            

Policyholders’ account balances

            

Equity-indexed annuity contracts

   $ —       $ (1,660 )    $ —       $ 8,267     $ —       $ (478 ) 

Equity-indexed life contracts

     —         (168 )      —         (121 )      —         956