Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 13, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | PRUCO LIFE INSURANCE OF NEW JERSEY | |
Entity Central Index Key | 1,038,509 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 400,000 |
Unaudited Interim Consolidated
Unaudited Interim Consolidated Statements of Financial Position - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
ASSETS | |||
Fixed maturities, available-for-sale, at fair value (amortized cost: 2018– $1,281,351; 2017–$1,204,166) | $ 1,265,603 | $ 1,261,237 | |
Fixed maturities, trading, at fair value (amortized cost: 2018–$7,446; 2017–$7,446) | [1] | 6,227 | 6,643 |
Equity securities, at fair value (cost: 2018–$10,109; 2017–$8,114) | [1] | 11,964 | 10,842 |
Policy loans | 203,384 | 193,244 | |
Commercial mortgage and other loans | 121,218 | 121,796 | |
Other invested assets (includes $9,224 and $726 measured at fair value at September 30, 2018 and December 31, 2017, respectively) | [1] | 55,528 | 46,803 |
Total investments | 1,663,924 | 1,640,565 | |
Cash and cash equivalents | 31,411 | 44,618 | |
Deferred policy acquisition costs | 159,771 | 145,451 | |
Accrued investment income | 17,710 | 16,580 | |
Reinsurance recoverables | 2,399,223 | 2,480,848 | |
Receivables from parent and affiliates | 44,001 | 43,051 | |
Income taxes receivable | 16,711 | 0 | |
Other assets | 24,851 | 27,328 | |
Separate account assets | 14,559,193 | 14,245,159 | |
TOTAL ASSETS | 18,916,795 | 18,643,600 | |
LIABILITIES | |||
Policyholders’ account balances | 2,255,674 | 2,083,582 | |
Future policy benefits | 1,534,667 | 1,707,184 | |
Cash collateral for loaned securities | 977 | 15,208 | |
Income taxes payable | 0 | 241 | |
Short-term debt to affiliates | 1,744 | 0 | |
Payables to parent and affiliates | 17,945 | 22,236 | |
Other liabilities | 109,583 | 103,632 | |
Separate account liabilities | 14,559,193 | 14,245,159 | |
TOTAL LIABILITIES | 18,479,783 | 18,177,242 | |
COMMITMENTS AND CONTINGENT LIABILITIES | |||
EQUITY | |||
Common stock ($5 par value; 400,000 shares authorized, issued and outstanding) | 2,000 | 2,000 | |
Additional paid-in capital | 213,261 | 211,961 | |
Retained earnings | 236,421 | 218,067 | |
Accumulated other comprehensive income (loss) | (14,670) | 34,330 | |
TOTAL EQUITY | 437,012 | 466,358 | |
TOTAL LIABILITIES AND EQUITY | $ 18,916,795 | $ 18,643,600 | |
[1] | (1) Prior period amounts have been reclassified to conform to current period presentation. See "Adoption of ASU 2016-01" in Note 2 for details. |
Unaudited Interim Consolidate_2
Unaudited Interim Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, available-for-sale, amortized cost | $ 1,281,351 | $ 1,204,166 |
Fixed maturities, trading, amortized cost | 7,446 | 7,446 |
Equity securities, at cost | 10,109 | 8,114 |
Other invested assets, at fair value | $ 9,224 | $ 726 |
Common stock, par value (in dollars per share) | $ 5 | $ 5 |
Common stock, shares authorized | 400,000 | 400,000 |
Common stock, shares issued | 400,000 | 400,000 |
Common stock, shares outstanding | 400,000 | 400,000 |
Unaudited Interim Consolidate_3
Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
REVENUES | ||||
Premiums | $ 3,527 | $ 3,426 | $ 9,176 | $ 9,626 |
Policy charges and fee income | 2,871 | 5,829 | 48,223 | 29,734 |
Net investment income | 17,254 | 16,072 | 51,411 | 49,186 |
Asset administration fees | 1,394 | 2,372 | 4,034 | 6,866 |
Other income (loss) | 529 | 896 | 873 | 3,347 |
Realized investment gains (losses), net: | ||||
Other-than-temporary impairments on fixed maturity securities | 0 | 0 | 0 | (80) |
Other realized investment gains (losses), net | (2,786) | (3,600) | (8,613) | (9,963) |
Total realized investment gains (losses), net | (2,786) | (3,600) | (8,613) | (10,043) |
TOTAL REVENUES | 22,789 | 24,995 | 105,104 | 88,716 |
BENEFITS AND EXPENSES | ||||
Policyholders’ benefits | (6,098) | (3,233) | 11,061 | 7,829 |
Interest credited to policyholders’ account balances | 9,145 | 8,444 | 26,620 | 24,411 |
Amortization of deferred policy acquisition costs | 1,328 | 2,080 | 13,322 | 7,969 |
General, administrative and other expenses | 10,725 | 9,431 | 28,584 | 27,860 |
TOTAL BENEFITS AND EXPENSES | 15,100 | 16,722 | 79,587 | 68,069 |
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | 7,689 | 8,273 | 25,517 | 20,647 |
Income tax expense (benefit) | 150 | (3,036) | 1,642 | (5,329) |
NET INCOME (LOSS) | 7,539 | 11,309 | 23,875 | 25,976 |
Other comprehensive income (loss), before tax: | ||||
Foreign currency translation adjustments | (10) | 12 | (1,162) | 37 |
Net unrealized investment gains (losses) | (10,782) | 533 | (68,100) | 23,673 |
Total | (10,792) | 545 | (69,262) | 23,710 |
Less: Income tax expense (benefit) related to other comprehensive income (loss) | (2,265) | 191 | (14,544) | 8,299 |
Other comprehensive income (loss), net of tax | (8,527) | 354 | (54,718) | 15,411 |
COMPREHENSIVE INCOME (LOSS) | $ (988) | $ 11,663 | $ (30,843) | $ 41,387 |
Unaudited Interim Consolidate_4
Unaudited Interim Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Equity |
Balance at Dec. 31, 2016 | $ 2,000 | $ 209,786 | $ 282,810 | $ 12,161 | $ 506,757 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Contributed capital | 1,300 | 1,300 | ||||
Dividend to parent | (100,000) | (100,000) | ||||
Contributed (Distributed) Capital, Parent Child Asset Transfers | 875 | 875 | ||||
Comprehensive income (loss): | ||||||
Net income (loss) | $ 25,976 | 25,976 | 25,976 | |||
Other comprehensive income (loss), net of tax | 15,411 | 15,411 | 15,411 | |||
Total comprehensive income (loss) | 41,387 | |||||
Balance at Sep. 30, 2017 | 2,000 | 211,961 | 208,786 | 27,572 | 450,319 | |
Balance at Dec. 31, 2017 | 2,000 | 211,961 | 218,067 | 34,330 | 466,358 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Contributed capital | 1,300 | 1,300 | ||||
Comprehensive income (loss): | ||||||
Net income (loss) | 23,875 | 23,875 | 23,875 | |||
Other comprehensive income (loss), net of tax | $ (54,718) | (54,718) | (54,718) | |||
Total comprehensive income (loss) | (30,843) | |||||
Balance at Sep. 30, 2018 | $ 2,000 | $ 213,261 | 236,421 | (14,670) | 437,012 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of adoption | ASU 2016-01 | 372 | (175) | 197 | |||
Cumulative effect of adoption | ASU 2018-02 | $ (5,893) | $ 5,893 | $ 0 |
Unaudited Interim Consolidate_5
Unaudited Interim Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ 23,875 | $ 25,976 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Policy charges and fee income | (19,334) | (3,222) | |
Interest credited to policyholders’ account balances | 26,620 | 24,411 | |
Realized investment (gains) losses, net | 8,613 | 10,043 | |
Amortization and other non-cash items | (6,686) | (7,020) | |
Change in: | |||
Future policy benefits | 139,578 | 155,061 | |
Reinsurance recoverables | (138,050) | (148,414) | |
Accrued investment income | (1,130) | (734) | |
Net payables to/receivables from parent and affiliates | (5,124) | (1,000) | |
Deferred policy acquisition costs | (9,464) | (8,006) | |
Income taxes | (2,459) | 2,806 | |
Derivatives, net | (3,216) | 2,102 | |
Other, net | 8,232 | (478) | |
Cash flows from (used in) operating activities | 21,455 | 51,525 | |
Proceeds from the sale/maturity/prepayment of: | |||
Fixed maturities, available-for-sale | 57,292 | 177,511 | |
Equity securities | [1] | 7 | 5 |
Policy loans | 16,736 | 16,727 | |
Ceded policy loans | (905) | (1,707) | |
Short-term investments | 0 | 32,985 | |
Commercial mortgage and other loans | 1,826 | 51,232 | |
Other invested assets | [1] | 2,180 | 1,396 |
Payments for the purchase/origination of: | |||
Fixed maturities, available-for-sale | (132,514) | (239,273) | |
Equity securities | [1] | (2,002) | (2,000) |
Policy loans | (21,666) | (14,524) | |
Ceded policy loans | 1,742 | 1,986 | |
Short-term investments | 0 | (21,981) | |
Commercial mortgage and other loans | (1,595) | (14,111) | |
Other invested assets | [1] | (3,915) | (2,945) |
Notes receivable from parent and affiliates, net | 348 | 234 | |
Derivatives, net | 99 | 226 | |
Other, net | (413) | (453) | |
Cash flows from (used in) investing activities | (82,780) | (14,692) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Policyholders’ account deposits | 379,501 | 367,812 | |
Ceded policyholders’ account deposits | (243,076) | (248,482) | |
Policyholders’ account withdrawals | (206,123) | (184,017) | |
Ceded policyholders’ account withdrawals | 131,978 | 117,881 | |
Net change in securities sold under agreement to repurchase and cash collateral for loaned securities | (14,231) | (4,779) | |
Dividend to parent | 0 | (100,000) | |
Contributed (distributed) capital - parent/child asset transfers | 0 | 1,347 | |
Net change in financing arrangements (maturities 90 days or less) | 1,744 | 0 | |
Drafts outstanding | (1,675) | (761) | |
Cash flows from (used in) financing activities | 48,118 | (50,999) | |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (13,207) | (14,166) | |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 44,618 | 56,984 | |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 31,411 | $ 42,818 | |
[1] | Prior period amounts have been reclassified to conform to current period presentation. See Note 2 for details. |
Business and Basis of Presentat
Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | BUSINESS AND BASIS OF PRESENTATION Pruco Life Insurance Company of New Jersey ("PLNJ") is a wholly-owned subsidiary of Pruco Life Insurance Company (“Pruco Life”), which in turn is a wholly-owned subsidiary of The Prudential Insurance Company of America (“Prudential Insurance”). Prudential Insurance is a direct wholly-owned subsidiary of Prudential Financial, Inc. (“Prudential Financial”). PLNJ is a stock life insurance company organized in 1982 under the laws of the State of New Jersey. It is licensed to sell life insurance and annuities in New Jersey and New York only, and sells such products primarily through affiliated and unaffiliated distributors. PLNJ has one subsidiary, formed in 2009 for the purpose of holding certain commercial loans and other investments. PLNJ and its subsidiary are together referred to as the "Company”, "we" or "our" and all financial information is shown on a consolidated basis. Variable Annuities Recapture Through March 31, 2016, the Company reinsured the majority of its variable annuity living benefit guarantees to its affiliated companies, Pruco Reinsurance, Ltd. ("Pruco Re") and Pruco Life. Effective April 1, 2016, the Company recaptured the risks related to its variable annuity living benefit guarantees that were previously reinsured to Pruco Re and Pruco Life. In addition, the Company reinsured the variable annuity base contracts, along with the living benefit guarantees, to Prudential Insurance under coinsurance and modified coinsurance agreements. This reinsurance agreement covers new and in force business. The product risks related to the reinsured business are being managed in Prudential Insurance. In addition, the living benefit hedging program related to the reinsured living benefit guarantees is being managed within Prudential Insurance. These series of transactions are collectively referred to as the "Variable Annuities Recapture". Basis of Presentation The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Intercompany balances and transactions have been eliminated. In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining deferred policy acquisition costs and related amortization; amortization of deferred sales inducements; valuation of investments including derivatives and the recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; reinsurance recoverables; provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal and regulatory matters. Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
Significant Accounting Policies
Significant Accounting Policies and Pronouncements | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Pronouncements | SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of Accounting Standards Updates ("ASU") to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASU. ASU listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of the date of this filing. ASU not listed below were assessed and determined to be either not applicable or not material. Adoption of ASU 2016-01 Effective January 1, 2018, the Company adopted ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities using a modified retrospective method. Adoption of this ASU impacted the Company’s accounting and presentation related to equity investments. The most significant impact is that the changes in fair value of equity securities previously classified as “available for sale” are to be reported in net income within “Other income” in the Consolidated Statements of Operations. Prior to this, the changes in fair value on equity securities classified as “available for sale” were reported in “Accumulated other comprehensive income”. The impacts of this ASU on the Company’s Consolidated Financial Statements can be categorized as follows: (1) Changes to the presentation within the Consolidated Statements of Financial Position; (2) Cumulative-effect Adjustment Upon Adoption; and (3) Changes to Accounting Policies. Each of these components is described below. This section is meant to serve as an update to, and should be read in conjunction with, Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. (1) Changes to the presentation within the Consolidated Statements of Financial Position Because of the fundamental accounting changes as described in section "(3) Changes to Accounting Policies" below, the Company determined that changes to the presentation of certain balances in the investment section of the Company’s Consolidated Statements of Financial Position were also necessary to maintain clarity and logical presentation. The table below illustrates these changes by presenting the balances as previously reported in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 and the reclassifications that were made, along with a footnote explanation of each reclassification. December 31, 2017 As previously reported Reclassifications As currently reported Consolidated Statements of Financial Position Line Items (1) (2) (3) (in thousands) Fixed maturities, available-for-sale, at fair value $ 1,261,237 $ 1,261,237 *Fixed maturities, trading, at fair value 0 6,643 6,643 Equity securities, available-for-sale, at fair value 3,414 (3,414 ) 0 *Equity securities, at fair value 0 3,414 7,428 10,842 Trading account assets, at fair value 14,071 (14,071 ) 0 Policy loans 193,244 193,244 Short-term investments 0 0 Commercial mortgage and other loans 121,796 121,796 Other long-term investments 46,803 (46,803 ) 0 *Other invested assets 0 46,803 46,803 Total investments $ 1,640,565 $ 0 $ 0 $ 0 $ 1,640,565 * - New line item effective January 1, 2018. Strikethrough - Eliminated line item effective January 1, 2018. (1) Retitled “Equity securities, available-for-sale, at fair value” to “Equity securities, at fair value” as equity securities can no longer be described as available-for-sale. (2) Eliminated the line item “Trading account assets, at fair value” and reclassified each component to another line item. (3) Retitled “Other long-term investments” to “Other invested assets”. (2) Cumulative-effect Adjustment Upon Adoption The provisions of ASU 2016-01 require that the Company apply the amendments through a cumulative-effect adjustment to the Consolidated Statements of Financial Position as of the beginning of the fiscal year of adoption. The following table illustrates the impact on the Company’s Consolidated Statement of Financial Position as a result of recording this cumulative-effect adjustment on January 1, 2018. Summary of ASU 2016-01 Transition Impacts on the Consolidated Statement of Financial Position upon Adoption on January 1, 2018 (in thousands) Increase / (Decrease) Other invested assets $ 250 Total assets $ 250 Income taxes $ 53 Total liabilities 53 Accumulated other comprehensive income (loss) (175 ) Retained earnings 372 Total equity 197 Total liabilities and equity $ 250 (3) Changes to Accounting Policies This section summarizes the changes in our accounting policies resulting from the adoption of ASU 2016-01 as well as an update to the components of the financial statement line items impacted by the Company’s Consolidated Statements of Financial Position presentation changes described above. ASSETS Fixed maturities, trading is a new financial statement line item comprised of fixed maturities that are carried at fair value. Prior to the adoption of the standard, these fixed maturities were reported in “Trading account assets, at fair value”. Realized and unrealized gains and losses on these investments are reported in “Other income”, and interest and dividend income from these investments is reported in “Net investment income”. Equity securities, at fair value is the new title of the financial statement line item formerly titled “Equity securities, available for sale, at fair value”. As a result of the adoption of the standard, equity securities previously reported in “Trading account assets, at fair value” were reclassified to “Equity securities, at fair value”. The retitled financial statement line is comprised of common stock and mutual fund shares, which are carried at fair value. Realized and unrealized gains and losses on these investments are reported in “Other income”, and dividend income is reported in “Net investment income” on the ex-dividend date. Prior to the adoption of the standard, for the equity investments reported in the financial statement line formerly titled “Equity securities, available for sale, at fair value,” the associated net realized gains and losses were included in “Realized investment gains (losses), net” and the associated net unrealized gains and losses were included in “Accumulated other comprehensive income (loss)” (“AOCI”). In addition, with the adoption of the standard, the identification of OTTI for these investments is no longer needed as all of these investments are now measured at fair value with changes in fair value reported in earnings. Other invested assets is the new title of the financial statement line formerly titled “Other long-term investments”. Investments previously reported in “Other long-term investments” were reclassified to “Other invested assets”. The retitled financial statement line consists of the Company’s non-coupon investments in Limited Partnerships and Limited Liability Companies ("LPs/LLCs")(other than operating joint ventures) and derivative assets. LPs/LLCs interests are accounted for using either the equity method of accounting, or at fair value with changes in fair value reported in “Other income”. Prior to the adoption of the standard, the Company applied the cost method of accounting for certain LPs/LLCs interests when its partnership interest was considered minor. The standard effectively eliminated the cost method of accounting for these equity investments. The Company’s income from investments in LPs/LLCs accounted for using the equity method, other than the Company’s investments in operating joint ventures, is included in “Net investment income”. The carrying value of these investments is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. In applying the equity method (including assessment for OTTI), the Company uses financial information provided by the investee, generally on a one to three month lag. For the investments reported at fair value with changes in fair value reported in current earnings, the associated realized and unrealized gains and losses are reported in “Other income”. REVENUES AND BENEFITS AND EXPENSES Other income includes realized and unrealized gains or losses from investments reported as “Fixed maturities, trading”, “Equity securities, at fair value”, and “Other invested assets” that are measured at fair value. Other ASU adopted during the nine months ended September 30, 2018 . Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2014-09 , The ASU is based on the core principle that revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The standard also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, and assets recognized from the costs to obtain or fulfill a contract with a customer. Revenue recognition for insurance contracts and financial instruments is explicitly scoped out of the standard. January 1, 2018 using the modified retrospective method which Adoption of the ASU did not have an impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. ASU 2016-15 , This ASU addresses diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The standard provides clarity on the treatment of eight specifically defined types of cash inflows and outflows. January 1, 2018 using the retrospective method (with early adoption permitted provided that all amendments are adopted in the same period). Adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. ASU 2016-18 , Statement of Cash Flows (Topic 230): Restricted Cash In November 2016, the FASB issued this ASU to address diversity in practice from entities classifying and presenting transfers between cash and restricted cash as operating, investing, or financing activities, or as a combination of those activities in the Statement of Cash Flows. The ASU requires entities to show the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the Statement of Cash Flows. As a result, transfers between such categories will no longer be presented in the Statement of Cash Flows. January 1, 2018 using the retrospective method (with early adoption permitted). Adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. ASU 2018-02 , Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, this ASU was issued following the enactment of the Tax Act of 2017. This ASU allows an entity to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded effects resulting from the Tax Act of 2017. January 1, 2019 with early adoption permitted. The ASU should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act of 2017 is recognized. The Company early adopted the ASU effective January 1, 2018 and elected to apply the ASU in the period of adoption subsequent to recording the adoption impacts of ASU 2016-01 as described above. As a result, the Company reclassified stranded effects resulting from the Tax Act of 2017 by increasing accumulated other comprehensive income and decreasing retained earnings, each by $5.9 million. Stranded effects unrelated to the Tax Act of 2017 are generally released from accumulated other comprehensive income when an entire portfolio of the type of item related to the stranded effect is liquidated, sold or extinguished (i.e., portfolio approach). ASU issued but not yet adopted as of September 30, 2018 — ASU 2018-12 ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, was issued by the FASB on August 15, 2018 and is expected to have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. The ASU is effective January 1, 2021 (with early adoption permitted), and will impact, at least to some extent, the accounting and disclosure requirements for all long-duration insurance and investment contracts issued by the Company. Outlined below are four key areas of change, although there are other less significant changes not noted below. In addition to the impacts to the balance sheet upon adoption, the Company also expects an impact to how earnings emerge thereafter. ASU 2018-12 Amended Topic Description Method of adoption Effect on the financial statements or other significant matters Cash flow assumptions used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products Requires an entity to review, and if necessary, update the cash flow assumptions used to measure the liability for future policy benefits, for both changes in future assumptions and actual experience, at least annually using a retrospective update method with a cumulative catch-up adjustment recorded in a separate line item in the Consolidated Statements of Operations. An entity may choose one of two adoption methods for the liability for future policy benefits: (1) a modified retrospective transition method whereby the entity will apply the amendments to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or (2) a full retrospective transition method. The options for method of adoption and the impacts of such methods are under assessment. Discount rate assumption used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products Requires discount rate assumptions to be based on an upper-medium grade fixed income instrument yield and will be required to be updated each quarter with the impact recorded through Other Comprehensive Income ("OCI"). As noted above, an entity may choose either a modified retrospective transition method or full retrospective transition method for the liability for future policy benefits. Under either method, for balance sheet remeasurement purposes, the liability for future policy benefits will be remeasured using current discount rates as of the beginning of the earliest period presented with the impact recorded as a cumulative effect adjustment to AOCI. Upon adoption, under either transition method, there will be an adjustment to AOCI as a result of remeasuring in force contract liabilities using current upper-medium grade fixed income instrument yields. The adjustment upon adoption will largely reflect the difference between the discount rate locked-in at contract inception versus current discount rates at transition. The magnitude of such adjustment is currently being assessed. Amortization of deferred acquisition costs ("DAC") and other balances Requires DAC and other balances, such as unearned revenue reserves and deferred sales inducements, to be amortized on a constant level basis over the expected term of the related contract, independent of expected profitability. An entity may apply one of two adoption methods: (1) a modified retrospective transition method whereby the entity will apply the amendments to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or (2) if an entity chooses a full retrospective transition method for its future policy benefits, as described above, it is required to also use a retrospective transition method for DAC and other balances. The options for method of adoption and the impacts of such methods are under assessment. Under the modified retrospective transition method, the Company would not expect a significant impact to the balance sheet, other than the impact of the removal of any related amounts in AOCI. Market Risk Benefits Requires an entity to measure all market risk benefits (e.g., living benefit and death benefit guarantees associated with variable annuities) at fair value with changes in value attributable to changes in an entity’s non-performance risk ("NPR") to be recognized in OCI. An entity will apply a retrospective transition method which will include a cumulative-effect adjustment on the balance sheet as of the earliest period presented. Upon adoption, the Company expects an impact to retained earnings for the difference between the fair value and carrying value of benefits not currently measured at fair value (e.g., guaranteed minimum death benefits on variable annuities) and an impact from reclassifying the cumulative effect of changes in NPR from retained earnings to AOCI. The magnitude of such adjustments is currently being assessed. Other ASU issued but not yet adopted as of September 30, 2018 Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2016-13 , This ASU provides a new current expected credit loss model to account for credit losses on certain financial assets and off-balance sheet exposures (e.g., loans held for investment, debt securities held to maturity, reinsurance receivables, net investments in leases and loan commitments). The model requires an entity to estimate lifetime credit losses related to such financial assets and exposures based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The standard also modifies the current other-than-temporary impairment standard for available-for-sale debt securities to require the use of an allowance rather than a direct write down of the investment, and replaces existing standard for purchased credit deteriorated loans and debt securities. January 1, 2020 using the modified retrospective method which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. However, prospective application is required for purchased credit deteriorated assets previously accounted for under ASU 310-30 and for debt securities for which an other-than-temporary-impairment was recognized prior to the date of adoption. Early adoption is permitted beginning January 1, 2019. The Company is currently assessing the impact of the ASU on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization on Purchased Callable Debt Securities This ASU requires certain premiums on callable debt securities to be amortized to the earliest call date. January 1, 2019 using the modified retrospective method (with early adoption permitted) which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. The Company does not expect the adoption of the ASU to have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2017-12 , Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities This ASU makes targeted changes to the existing hedge accounting model to better portray the economics of an entity’s risk management activities and to simplify the use of hedge accounting. January 1, 2019 using the modified retrospective method (with early adoption permitted) which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. The Company does not expect the adoption of the ASU to have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2018 | |
Investments [Abstract] | |
Investments | INVESTMENTS Fixed Maturity Securities The following tables set forth information relating to fixed maturity securities (excluding investments classified as trading), as of the dates indicated: September 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI(3) (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 15,487 $ 792 $ 0 $ 16,279 $ 0 Obligations of U.S. states and their political subdivisions 121,075 1,455 983 121,547 0 Foreign government bonds 68,406 111 2,724 65,793 0 Public utilities 208,432 3,631 7,489 204,574 0 All other U.S. public corporate securities 350,726 7,886 8,734 349,878 0 All other U.S. private corporate securities 172,037 595 4,635 167,997 0 All other foreign public corporate securities 46,622 726 1,845 45,503 0 All other foreign private corporate securities 138,333 1,376 3,440 136,269 0 Asset-backed securities(1) 22,355 1,119 2 23,472 (42 ) Commercial mortgage-backed securities 132,804 332 4,428 128,708 0 Residential mortgage-backed securities(2) 5,074 518 9 5,583 (71 ) Total fixed maturities, available-for-sale $ 1,281,351 $ 18,541 $ 34,289 $ 1,265,603 $ (113 ) (1) Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, and education loans. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (3) Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $0.3 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date. December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI(3) (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 17,831 $ 1,465 $ 0 $ 19,296 $ 0 Obligations of U.S. states and their political subdivisions 121,208 6,660 0 127,868 0 Foreign government bonds 29,489 377 161 29,705 0 Public utilities 204,343 14,664 409 218,598 0 All other U.S. public corporate securities 331,641 23,732 1,248 354,125 (45 ) All other U.S. private corporate securities 176,411 3,583 609 179,385 0 All other foreign public corporate securities 36,790 1,448 557 37,681 0 All other foreign private corporate securities 131,896 6,175 859 137,212 0 Asset-backed securities(1) 26,539 1,275 0 27,814 (51 ) Commercial mortgage-backed securities 118,818 1,883 1,174 119,527 0 Residential mortgage-backed securities(2) 9,200 826 0 10,026 (85 ) Total fixed maturities, available-for-sale $ 1,204,166 $ 62,088 $ 5,017 $ 1,261,237 $ (181 ) (1) Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (3) Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $0.3 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date. The following tables set forth the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the dates indicated: September 30, 2018 Less Than Twelve Months Twelve Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in thousands) Fixed maturities, available-for-sale: Obligations of U.S. states and their political subdivisions $ 60,971 $ 983 $ 0 $ 0 $ 60,971 $ 983 Foreign government bonds 50,865 2,092 8,787 632 59,652 2,724 Public utilities 124,613 6,592 11,247 897 135,860 7,489 All other U.S. public corporate securities 148,603 5,201 50,538 3,533 199,141 8,734 All other U.S. private corporate securities 106,891 3,068 29,841 1,567 136,732 4,635 All other foreign public corporate securities 29,437 944 7,161 901 36,598 1,845 All other foreign private corporate securities 72,330 2,569 5,676 871 78,006 3,440 Asset-backed securities 3,050 2 0 0 3,050 2 Commercial mortgage-backed securities 55,224 1,298 44,529 3,130 99,753 4,428 Residential mortgage-backed securities 814 9 0 0 814 9 Total fixed maturities, available-for-sale $ 652,798 $ 22,758 $ 157,779 $ 11,531 $ 810,577 $ 34,289 December 31, 2017 Less Than Twelve Months Twelve Months or More Total Fair Value Gross Fair Value Gross Fair Value Gross (in thousands) Fixed maturities, available-for-sale: Obligations of U.S. states and their political subdivisions $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Foreign government bonds 3,354 42 6,210 119 9,564 161 Public utilities 8,797 263 7,014 146 15,811 409 All other U.S. public corporate securities 12,254 93 43,337 1,155 55,591 1,248 All other U.S. private corporate securities 38,778 377 10,401 232 49,179 609 All other foreign public corporate securities 5,565 27 7,369 530 12,934 557 All other foreign private corporate securities 8,671 148 11,333 711 20,004 859 Asset-backed securities 0 0 0 0 0 0 Commercial mortgage-backed securities 12,774 56 44,627 1,118 57,401 1,174 Residential mortgage-backed securities 0 0 0 0 0 0 Total fixed maturities, available-for-sale $ 90,193 $ 1,006 $ 130,291 $ 4,011 $ 220,484 $ 5,017 As of September 30, 2018 and December 31, 2017 , the gross unrealized losses on fixed maturity securities were composed of $30.7 million and $4.2 million , respectively, related to “1” highest quality or “2” high quality securities based on the National Association of Insurance Commissioners (“NAIC”) or equivalent rating and $3.6 million and $0.8 million , respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. As of September 30, 2018 , the $11.5 million of gross unrealized losses on fixed maturity securities of twelve months or more were concentrated in commercial mortgage-backed securities and in the Company’s corporate securities within the finance , consumer non-cyclical and utility sectors. As of December 31, 2017 , the $4.0 million of gross unrealized losses on fixed maturity securities of twelve months or more were concentrated in commercial mortgage-backed securities and in the Company’s corporate securities within the finance and technology sectors. In accordance with its policy described in Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 , the Company concluded that an adjustment to earnings for OTTI for these fixed maturity securities was not warranted at either September 30, 2018 or December 31, 2017 . These conclusions were based on a detailed analysis of the underlying credit and cash flows on each security. Gross unrealized losses are primarily attributable to general credit spread widening, increases in interest rates and foreign currency exchange rate movements. As of September 30, 2018 , the Company did not intend to sell these securities, and it was not more likely than not that the Company would be required to sell these securities before the anticipated recovery of the remaining amortized cost basis. The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated: September 30, 2018 Amortized Cost Fair Value (in thousands) Fixed maturities, available-for-sale: Due in one year or less $ 20,051 $ 20,355 Due after one year through five years 164,447 160,733 Due after five years through ten years 294,947 287,118 Due after ten years 641,673 639,634 Asset-backed securities 22,355 23,472 Commercial mortgage-backed securities 132,804 128,708 Residential mortgage-backed securities 5,074 5,583 Total fixed maturities, available-for-sale $ 1,281,351 $ 1,265,603 Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Asset-backed, commercial mortgage-backed and residential mortgage-backed securities are shown separately in the table above, as they do not have a single maturity date. The following table sets forth the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on impairments of fixed maturities, for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 251 $ 7,242 $ 1,816 $ 99,849 Proceeds from maturities/prepayments 25,175 11,653 55,486 77,662 Gross investment gains from sales and maturities 247 (419 ) 193 23 Gross investment losses from sales and maturities (9 ) (51 ) (139 ) (957 ) OTTI recognized in earnings(2) 0 0 0 (80 ) (1) Includes $0.0 million and $0.0 million of non-cash related proceeds due to the timing of trade settlements for the nine months ended September 30, 2018 and 2017 , respectively. (2) Excludes the portion of OTTI recorded in OCI, representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of the impairment. The following table sets forth a rollforward of pre-tax amounts remaining in OCI related to fixed maturity securities with credit loss impairments recognized in earnings, for the periods indicated: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 (in thousands) Credit loss impairments: Balance, beginning of period $ 177 $ 561 $ 565 $ 563 Increases due to the passage of time on previously recorded credit losses 6 21 9 32 Reductions for securities which matured, paid down, prepaid or were sold during the period (5 ) (404 ) (9 ) (30 ) Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected 0 0 0 0 Assets transferred to parent and affiliates 0 0 0 0 Balance, end of period $ 178 $ 178 $ 565 $ 565 Equity Securities The net change in unrealized gains (losses) from equity securities still held at period end, recorded within “Other income,” was $(0.2) million and $0.0 million during the three months ended September 30, 2018 and 2017 , respectively. The net change in unrealized gains (losses) from equity securities still held at period end, recorded within “Other income,” was $(0.9) million and $0.5 million during the nine months ended September 30, 2018 and 2017 , respectively. Commercial Mortgage and Other Loans The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: September 30, 2018 December 31, 2017 Amount (in thousands) % of Total Amount (in thousands) % of Total Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 43,769 36.0 % $ 44,405 36.4 % Hospitality 10,058 8.3 10,263 8.4 Industrial 12,342 10.2 10,924 9.0 Office 17,194 14.2 17,738 14.5 Other 19,063 15.7 19,154 15.7 Retail 13,925 11.5 14,180 11.6 Total commercial mortgage loans 116,351 95.9 116,664 95.6 Agricultural property loans 5,037 4.1 5,312 4.4 Total commercial mortgage and agricultural property loans by property type 121,388 100.0 % 121,976 100.0 % Valuation allowance (170 ) (180 ) Total commercial mortgage and other loans $ 121,218 $ 121,796 As of September 30, 2018 , the commercial mortgage and agricultural property loans were geographically dispersed throughout the United States (with the largest concentrations in Illinois ( 16% ), New York ( 14% ) and Texas ( 10% )) and included loans secured by properties in Europe ( 8% ). The following tables set forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated: September 30, 2018 Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance for credit losses: Balance, beginning of year $ 179 $ 1 $ 180 Addition to (release of) allowance for losses (10 ) 0 (10 ) Charge-offs, net of recoveries 0 0 0 Total ending balance $ 169 $ 1 $ 170 December 31, 2017 Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance for credit losses: Balance, beginning of year $ 207 $ 2 $ 209 Addition to (release of) allowance for losses (28 ) (1 ) (29 ) Charge-offs, net of recoveries 0 0 0 Total ending balance $ 179 $ 1 $ 180 The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans, as of the dates indicated: September 30, 2018 Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance for credit losses: Individually evaluated for impairment $ 0 $ 0 $ 0 Collectively evaluated for impairment 169 1 170 Total ending balance(1) $ 169 $ 1 $ 170 Recorded investment(2): Individually evaluated for impairment $ 0 $ 0 $ 0 Collectively evaluated for impairment 116,351 5,037 121,388 Total ending balance(1) $ 116,351 $ 5,037 $ 121,388 (1) As of September 30, 2018 , there were no loans acquired with deteriorated credit quality. (2) Recorded investment reflects the carrying value gross of related allowance. December 31, 2017 Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance for credit losses: Individually evaluated for impairment $ 0 $ 0 $ 0 Collectively evaluated for impairment 179 1 180 Total ending balance(1) $ 179 $ 1 $ 180 Recorded investment(2): Individually evaluated for impairment $ 0 $ 0 $ 0 Collectively evaluated for impairment 116,664 5,312 121,976 Total ending balance(1) $ 116,664 $ 5,312 $ 121,976 (1) As of December 31, 2017 , there were no loans acquired with deteriorated credit quality. (2) Recorded investment reflects the carrying value gross of related allowance. The following tables set forth certain key credit quality indicators for commercial mortgage and agricultural property loans based upon the recorded investment gross of allowance for credit losses, as of the dates indicated: September 30, 2018 Debt Service Coverage Ratio ≥ 1.2X 1.0X to < 1.2X < 1.0X Total (in thousands) Loan-to-Value Ratio: 0%-59.99% $ 84,036 $ 1,229 $ 0 $ 85,265 60%-69.99% 25,093 7,347 0 32,440 70%-79.99% 2,114 1,569 0 3,683 80% or greater 0 0 0 0 Total loans $ 111,243 $ 10,145 $ 0 $ 121,388 December 31, 2017 Debt Service Coverage Ratio ≥ 1.2X 1.0X to < 1.2X < 1.0X Total (in thousands) Loan-to-Value Ratio: 0%-59.99% $ 83,304 $ 0 $ 0 $ 83,304 60%-69.99% 27,727 3,155 2,009 32,891 70%-79.99% 0 5,781 0 5,781 80% or greater 0 0 0 0 Total loans $ 111,031 $ 8,936 $ 2,009 $ 121,976 The following tables set forth an aging of past due commercial mortgage and other loans, based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated: September 30, 2018 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status(2) (in thousands) Commercial mortgage loans $ 116,351 $ 0 $ 0 $ 0 $ 116,351 $ 0 Agricultural property loans 5,037 0 0 0 5,037 0 Total $ 121,388 $ 0 $ 0 $ 0 $ 121,388 $ 0 (1) As of September 30, 2018 , there were no loans in this category accruing interest. (2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . December 31, 2017 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status(2) (in thousands) Commercial mortgage loans $ 116,664 $ 0 $ 0 $ 0 $ 116,664 $ 0 Agricultural property loans 5,312 0 0 0 5,312 0 Total $ 121,976 $ 0 $ 0 $ 0 $ 121,976 $ 0 (1) As of December 31, 2017 , there were no loans in this category accruing interest. (2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . For the three and nine months ended September 30, 2018 , there were no commercial mortgage and other loans acquired, other than those through direct origination, and there were no commercial mortgage and other loans sold. For both the three and nine months ended September 30, 2017 , there were no commercial mortgage and other loans acquired, other than those through direct origination. For the three months ended September 30, 2017 , there were no commercial mortgage and other loans sold. For the nine months ended September 30, 2017 , there were $42 million of commercial mortgage and other loans sold. Other Invested Assets The following table sets forth the composition of “Other invested assets,” as of the dates indicated: September 30, 2018 December 31, 2017 (in thousands) Company’s investment in separate accounts $ 3,140 $ 2,726 LPs/LLCs: Equity method: Private equity 13,011 12,350 Hedge funds 29,088 28,167 Real estate-related 1,065 1,112 Subtotal equity method 43,164 41,629 Fair value: Private equity 1,018 1,141 Hedge funds 107 121 Real estate-related 1,780 1,186 Subtotal fair value(1) 2,905 2,448 Total LPs/LLCs 46,069 44,077 Derivative instruments 6,319 0 Total other invested assets(2) $ 55,528 $ 46,803 (1) As of December 31, 2017 , $2.3 million was accounted for under the cost method. (2) Prior period amounts have been reclassified to conform to current period presentation. For additional information, see Note 2 . Net Investment Income The following table sets forth “Net investment income” by investment type, for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Fixed maturities, available-for-sale $ 13,000 $ 12,343 $ 38,596 $ 35,989 Fixed maturities, trading 80 79 243 227 Equity securities, at fair value 91 91 273 273 Commercial mortgage and other loans 1,211 1,238 3,670 4,846 Policy loans 2,713 2,664 8,121 7,888 Short-term investments and cash equivalents 216 117 366 374 Other invested assets 1,006 410 2,994 2,349 Gross investment income 18,317 16,942 54,263 51,946 Less: investment expenses (1,063 ) (870 ) (2,852 ) (2,760 ) Net investment income(1) $ 17,254 $ 16,072 $ 51,411 $ 49,186 (1) Prior period amounts have been reclassified to conform to current period presentation. Realized Investment Gains (Losses), Net The following table sets forth “Realized investment gains (losses), net,” by investment type, for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Fixed maturities(1) $ 238 $ (470 ) $ 54 $ (1,014 ) Commercial mortgage and other loans 11 30 10 12 LPs/LLCs 0 10 49 11 Derivatives(2) (3,035 ) (3,174 ) (8,726 ) (9,049 ) Short term investments and cash equivalents 0 4 0 (3 ) Realized investment gains (losses), net $ (2,786 ) $ (3,600 ) $ (8,613 ) $ (10,043 ) (1) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading. (2) Includes the hedged items offset in qualifying fair value hedge accounting relationships. Net Unrealized Gains (Losses) on Investments within AOCI The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated: September 30, 2018 December 31, 2017 (in thousands) Fixed maturity securities, available-for-sale—with OTTI $ 145 $ 162 Fixed maturity securities, available-for-sale—all other (15,893 ) 56,909 Equity securities, available-for-sale(1) 0 270 Derivatives designated as cash flow hedges(2) (3,036 ) (5,036 ) Affiliated notes 500 682 Other investments 124 (288 ) Net unrealized gains (losses) on investments $ (18,160 ) $ 52,699 (1) Effective January 1, 2018, unrealized gains (losses) on equity securities are recorded within “Other income (loss).” (2) For more information on cash flow hedges, see Note 4 . Repurchase Agreements and Securities Lending In the normal course of business, the Company sells securities under agreements to repurchase and enters into securities lending transactions. As of September 30, 2018 and December 31, 2017 , the Company had no repurchase agreements. The following table sets forth the composition of “Cash collateral for loaned securities,” which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated: September 30, 2018 December 31, 2017 Remaining Contractual Maturities of the Agreements Remaining Contractual Maturities of the Agreements Overnight & Continuous Up to 30 Days Total Overnight & Continuous Up to 30 Days Total (in thousands) U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 0 $ 0 $ 0 $ 10,310 $ 10,310 Foreign government bonds 0 0 0 4,420 0 4,420 U.S. public corporate securities 977 0 977 0 0 0 Foreign public corporate securities 0 0 0 478 0 478 Total cash collateral for loaned securities(1) $ 977 $ 0 $ 977 $ 4,898 $ 10,310 $ 15,208 (1) The Company did no t have any agreements with remaining contractual maturities of thirty days or greater, as of the dates indicated. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS Types of Derivative Instruments and Derivative Strategies The Company utilizes various derivative instruments and strategies to manage its risk. Commonly used derivative instruments include, but are not necessarily limited to: • Interest rate contracts: futures, swaps, options, swaptions, caps and floors • Equity contracts: futures, options and total return swaps • Foreign exchange contracts: futures, options, forwards and swaps • Credit contracts: single and index reference credit default swaps • Other contracts: embedded derivatives For detailed information on these contracts and the related strategies, see Note 10 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . Primary Risks Managed by Derivatives The table below provides a summary of the gross notional amount and fair value of derivative contracts by the primary underlying risks, excluding embedded derivatives and associated reinsurance recoverables. Many derivative instruments contain multiple underlying risks. The fair value amounts below represent the gross fair value of derivative contracts prior to taking into account the netting effects of master netting agreements, cash collateral, and NPR. September 30, 2018 December 31, 2017 Notional Gross Fair Value Notional Gross Fair Value Primary Underlying Risk/Instrument Type Assets Liabilities Assets Liabilities (in thousands) Derivatives Designated as Hedge Accounting Instruments: Currency/Interest Rate Foreign Currency Swaps $ 119,888 $ 2,116 $ (5,908 ) $ 110,240 $ 1,320 $ (6,869 ) Total Qualifying Hedges $ 119,888 $ 2,116 $ (5,908 ) $ 110,240 $ 1,320 $ (6,869 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 59,075 $ 1,357 $ 0 $ 59,075 $ 3,766 $ 0 Credit Credit Default Swaps 756 0 (18 ) 1,594 0 (96 ) Currency/Interest Rate Foreign Currency Swaps 16,815 1,823 (364 ) 22,237 1,748 (674 ) Foreign Currency Foreign Currency Forwards 1,141 8 0 1,888 0 (52 ) Equity Equity Options 231,549 10,682 (3,094 ) 152,800 8,125 (2,813 ) Total Non-Qualifying Hedges $ 309,336 $ 13,870 $ (3,476 ) $ 237,594 $ 13,639 $ (3,635 ) Total Derivatives(1) $ 429,224 $ 15,986 $ (9,384 ) $ 347,834 $ 14,959 $ (10,504 ) (1) Excludes embedded derivatives and associated reinsurance recoverables which contain multiple underlying risks. The fair value of the embedded derivatives, included in "Future policy benefits," was a net liability of $242 million and $472 million as of September 30, 2018 and December 31, 2017 , respectively. The fair value of the related reinsurance recoverables, included in "Reinsurance recoverables," was a net asset of $242 million and $472 million as of September 30, 2018 and December 31, 2017 , respectively. See Note 7 for additional information on these reinsurance agreements. The fair value of the embedded derivatives, included in "Policyholders' account balances," was a net liability of $8 million and $5 million as of September 30, 2018 and December 31, 2017 , respectively. There were no related reinsurance recoverables at each respective period. Offsetting Assets and Liabilities The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position. September 30, 2018 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Consolidated Statements of Financial Position Net Amounts Presented in the Consolidated Statements of Financial Position Financial Instruments/ Collateral(1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives (1) $ 15,986 $ (9,667 ) $ 6,319 $ (5,961 ) $ 358 Securities purchased under agreements to resell 27,000 0 27,000 (27,000 ) 0 Total Assets $ 42,986 $ (9,667 ) $ 33,319 $ (32,961 ) $ 358 Offsetting of Financial Liabilities: Derivatives (1) $ 9,384 $ (9,384 ) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 9,384 $ (9,384 ) $ 0 $ 0 $ 0 December 31, 2017 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Consolidated Statements of Financial Position Net Amounts Presented in the Consolidated Statements of Financial Position Financial Instruments/ Collateral(1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives (1) $ 14,959 $ (14,959 ) $ 0 $ 0 $ 0 Securities purchased under agreements to resell 43,000 0 43,000 (43,000 ) 0 Total Assets $ 57,959 $ (14,959 ) $ 43,000 $ (43,000 ) $ 0 Offsetting of Financial Liabilities: Derivatives (1) $ 10,504 $ (9,941 ) $ 563 $ 0 $ 563 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 10,504 $ (9,941 ) $ 563 $ 0 $ 563 (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. For information regarding the rights of offset associated with the derivative assets and liabilities in the table above see “Credit Risk” below and Note 9 . For securities purchased under agreements to resell and securities sold under agreements to repurchase, the Company monitors the value of the securities and maintains collateral, as appropriate, to protect against credit exposure. Where the Company has entered into repurchase and resale agreements with the same counterparty, in the event of default, the Company would generally be permitted to exercise rights of offset. For additional information on the Company’s accounting policy for securities repurchase and resale agreements, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . Cash Flow Hedges The primary derivative instruments used by the Company in its cash flow hedge accounting relationships are currency swaps. These instruments are only designated for hedge accounting in instances where the appropriate criteria are met. The Company does not use futures, options, credit, equity or embedded derivatives in any of its cash flow hedge accounting relationships. The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship. Three Months Ended September 30, 2018 Realized Investment Gains (Losses) Net Investment Income Other Income AOCI (1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 0 $ 347 $ 147 $ 395 Total cash flow hedges 0 347 147 395 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (282 ) 0 0 0 Currency 13 0 0 0 Currency/Interest Rate 185 0 3 0 Credit 0 0 0 0 Equity 2,615 0 0 0 Embedded Derivatives (5,566 ) 0 0 0 Total non-qualifying hedges (3,035 ) 0 3 0 Total $ (3,035 ) $ 347 $ 150 $ 395 Nine Months Ended September 30, 2018 Realized Net Investment Income Other Income AOCI (1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 0 $ 993 $ 389 $ 2,000 Total cash flow hedges 0 993 389 2,000 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (1,420 ) 0 0 0 Currency 65 0 0 0 Currency/Interest Rate 349 0 7 0 Credit (2 ) 0 0 0 Equity 2,958 0 0 0 Embedded Derivatives (10,676 ) 0 0 0 Total non-qualifying hedges (8,726 ) 0 7 0 Total $ (8,726 ) $ 993 $ 396 $ 2,000 Three Months Ended September 30, 2017 Realized Net Investment Income Other Income AOCI (1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 0 $ 259 $ (356 ) $ (3,756 ) Total cash flow hedges 0 259 (356 ) (3,756 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 40 0 0 0 Currency (49 ) 0 0 0 Currency/Interest Rate (546 ) 0 (6 ) 0 Credit (7 ) 0 0 0 Equity 828 0 0 0 Embedded Derivatives (3,440 ) 0 0 0 Total non-qualifying hedges (3,174 ) 0 (6 ) 0 Total $ (3,174 ) $ 259 $ (362 ) $ (3,756 ) Nine Months Ended September 30, 2017 Realized Net Investment Income Other Income AOCI (1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 0 $ 515 $ (777 ) $ (6,727 ) Total cash flow hedges 0 515 (777 ) (6,727 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 471 0 0 0 Currency (92 ) 0 0 0 Currency/Interest Rate (1,042 ) 0 (15 ) 0 Credit (44 ) 0 0 0 Equity 2,074 0 0 0 Embedded Derivatives (10,416 ) 0 0 0 Total non-qualifying hedges (9,049 ) 0 (15 ) 0 Total $ (9,049 ) $ 515 $ (792 ) $ (6,727 ) (1) Amounts deferred in AOCI. For the nine months ended September 30, 2018 and 2017 , the ineffective portion of derivatives accounted for using hedge accounting was de minimis to the Company’s results of operations. Also, there were no material amounts reclassified into earnings relating to instances in which the Company discontinued cash flow hedge accounting because the forecasted transaction did not occur by the anticipated date or within the additional time period permitted by the authoritative guidance for the accounting for derivatives and hedging. Presented below is a rollforward of current period cash flow hedges in AOCI before taxes: (in thousands) Balance, December 31, 2017 $ (5,036 ) Net deferred gains (losses) on cash flow hedges from January 1 to September 30, 2018 2,944 Amount reclassified into current period earnings (944 ) Balance, September 30, 2018 $ (3,036 ) The changes in fair value of cash flow hedges are deferred in AOCI and are included in “Net unrealized investment gains (losses)” in the Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss); these amounts are then reclassified to earnings when the hedged item affects earnings. Using September 30, 2018 values, it is estimated that a pre-tax gain of $1.5 million will be reclassified from AOCI to earnings during the subsequent twelve months ending September 30, 2019 , offset by amounts pertaining to the hedged items. The exposures the Company is hedging with these qualifying cash flow hedges include the variability of the payment or receipt of interest or foreign currency amounts on existing financial instruments. Credit Derivatives The Company has no exposure from credit derivative positions where it has written credit protection as of September 30, 2018 and December 31, 2017 . The Company has purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio. The Company has outstanding notional amounts of $1 million and $2 million reported at fair value as a liability of $0.0 million and $0.1 million as of September 30, 2018 and December 31, 2017 , respectively. Credit Risk The Company is exposed to credit-related losses in the event of non-performance by counterparty to financial derivative transactions with a positive fair value. The Company manages credit risk by entering into derivative transactions with its affiliate, Prudential Global Funding LLC (“PGF”), related to its over-the-counter ("OTC") derivatives. PGF, in turn, manages its credit risk by: (i) entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties governed by master netting agreement, as applicable; (ii) trading through central clearing and OTC parties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single party credit exposures which are subject to periodic management review. Substantially all of the Company’s derivative agreements have zero thresholds which require daily full collateralization by the party in a liability position. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | FAIR VALUE OF ASSETS AND LIABILITIES Fair Value Measurement – Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows: Level 1 - Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities. Level 2 - Fair value is based on significant inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, and other market observable inputs. Level 3 - Fair value is based on at least one significant unobservable input for the asset or liability. The assets and liabilities in this category may require significant judgment or estimation in determining the fair value. For a discussion of the Company's valuation methodologies for assets and liabilities measured at fair value and the fair value hierarchy, see Note 9 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. Assets and Liabilities by Hierarchy Level – The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated. As of September 30, 2018 Level 1 Level 2 Level 3 Netting(1) Total (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 16,279 $ 0 $ 0 $ 16,279 Obligations of U.S. states and their political subdivisions 0 121,547 0 0 121,547 Foreign government bonds 0 65,793 0 0 65,793 U.S. corporate public securities 0 484,380 0 0 484,380 U.S. corporate private securities 0 223,986 2,223 0 226,209 Foreign corporate public securities 0 45,503 0 0 45,503 Foreign corporate private securities 0 147,289 840 0 148,129 Asset-backed securities (2) 0 23,472 0 0 23,472 Commercial mortgage-backed securities 0 118,947 9,761 0 128,708 Residential mortgage-backed securities 0 5,583 0 0 5,583 Subtotal 0 1,252,779 12,824 0 1,265,603 Fixed maturities, trading 0 6,227 0 0 6,227 Equity securities 0 5,151 6,813 0 11,964 Other invested assets(3) 0 15,986 0 (9,667 ) 6,319 Reinsurance recoverables 0 0 242,084 0 242,084 Receivables from parent and affiliates 0 8,922 0 0 8,922 Subtotal excluding separate account assets 0 1,289,065 261,721 (9,667 ) 1,541,119 Separate account assets(4)(5) 0 12,732,557 0 0 12,732,557 Total assets $ 0 $ 14,021,622 $ 261,721 $ (9,667 ) $ 14,273,676 Future policy benefits(6) $ 0 $ 0 $ 242,084 $ 0 $ 242,084 Policyholders' account balances 0 0 8,069 0 8,069 Payables to parent and affiliates 0 9,384 0 (9,384 ) 0 Total liabilities $ 0 $ 9,384 $ 250,153 $ (9,384 ) $ 250,153 As of December 31, 2017 Level 1 Level 2 Level 3 Netting(1) Total (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 19,296 $ 0 $ 0 $ 19,296 Obligations of U.S. states and their political subdivisions 0 127,868 0 0 127,868 Foreign government bonds 0 29,705 0 0 29,705 U.S. corporate public securities 0 497,522 0 0 497,522 U.S. corporate private securities 0 228,219 13,871 0 242,090 Foreign corporate public securities 0 37,681 0 0 37,681 Foreign corporate private securities 0 149,063 645 0 149,708 Asset-backed securities(2) 0 16,239 11,575 0 27,814 Commercial mortgage-backed securities 0 119,527 0 0 119,527 Residential mortgage-backed securities 0 10,026 0 0 10,026 Subtotal 0 1,235,146 26,091 0 1,261,237 Fixed maturities, trading(7) 0 6,643 0 0 6,643 Equity securities(7) 0 3,414 7,428 0 10,842 Other invested assets(3)(7) 0 14,959 0 (14,959 ) 0 Reinsurance recoverables 0 0 472,157 0 472,157 Receivables from parent and affiliates 0 9,377 0 0 9,377 Subtotal excluding separate account assets 0 1,269,539 505,676 (14,959 ) 1,760,256 Separate account assets(4)(5) 0 12,454,118 0 0 12,454,118 Total assets $ 0 $ 13,723,657 $ 505,676 $ (14,959 ) $ 14,214,374 Future policy benefits(6) $ 0 $ 0 $ 472,157 $ 0 $ 472,157 Policyholders' account balances 0 0 5,463 0 5,463 Payables to parent and affiliates 0 10,504 0 (9,941 ) 563 Total liabilities $ 0 $ 10,504 $ 477,620 $ (9,941 ) $ 478,183 (1) “Netting” amounts represent cash collateral of $0.3 million and $5.0 million as of September 30, 2018 and December 31, 2017 , respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements. (2) Includes credit tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (3) Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value ("NAV") per share (or its equivalent) as a practical expedient. At September 30, 2018 and December 31, 2017, the fair values of such investments were $2.9 million and $0.7 million , respectively. (4) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Unaudited Interim Consolidated Statements of Financial Position. (5) Separate account assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate, hedge funds and a corporate owned life insurance fund, for which fair value is measured at NAV per share (or its equivalent). As of September 30, 2018 and December 31, 2017, the fair value of such investments was $1,827 million and $1,791 million , respectively. (6) As of September 30, 2018 , the net embedded derivative liability position of $242 million includes $105 million of embedded derivatives in an asset position and $347 million of embedded derivatives in a liability position. As of December 31, 2017 , the net embedded derivative liability position of $472 million includes $77 million of embedded derivatives in an asset position and $549 million of embedded derivatives in a liability position. (7) Prior period amounts have been reclassified to conform to current period presentation. See Note 2 for details. Transfers between Levels 1 and 2 – Transfers between levels are made to reflect changes in observability of inputs and market activity. Transfers into or out of any level are generally reported at the value as of the beginning of the quarter in which the transfers occur for any such assets still held at the end of the quarter. Periodically, there are transfers between Level 1 and Level 2 for assets held in the Company’s Separate account. The fair value of foreign common stock held in the Company's Separate account may reflect differences in market levels between the close of foreign trading markets and the close of U.S. trading markets for the respective day. Dependent on the existence of such a timing difference, the assets may move between Level 1 and Level 2. During both the three and nine months ended September 30, 2018 and 2017 , there were no transfers between Level 1 and Level 2. Quantitative Information Regarding Internally Priced Level 3 Assets and Liabilities – The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities. As of September 30, 2018 Fair Value Valuation Techniques Unobservable Inputs Minimum Maximum Weighted Average Impact of Increase in Input on Fair Value(1) (in thousands) Assets: Corporate securities(2) $ 3,063 Discounted cash flow Discount rate 7.00 % 13.27 % 8.93 % Decrease Reinsurance recoverables $ 242,084 Fair values are determined in the same manner as future policy benefits Liabilities: Future policy benefits(3) $ 242,084 Discounted cash flow Lapse rate(4) 1 % 13 % Decrease Spread over LIBOR(5) 0.16 % 1.21 % Decrease Utilization rate(6) 50 % 97 % Increase Withdrawal rate See table footnote (7) below Mortality rate (8) 0 % 15 % Decrease Equity volatility curve 14 % 22 % Increase As of December 31, 2017 Fair Value Valuation Unobservable Inputs Minimum Maximum Weighted Average Impact of Increase in Input on Fair Value(1) (in thousands) Assets: Corporate securities(2) $ 14,516 Discounted cash flow Discount rate 5.06 % 22.23 % 7.53 % Decrease Reinsurance recoverables $ 472,157 Fair values are determined in the same manner as future policy benefits Liabilities: Future policy benefits(3) $ 472,157 Discounted cash flow Lapse rate(4) 1 % 12 % Decrease Spread over LIBOR(5) 0.12 % 1.10 % Decrease Utilization rate(6) 52 % 97 % Increase Withdrawal rate See table footnote(7) below. Mortality rate(8) 0 % 14 % Decrease Equity volatility curve 13 % 24 % Increase (1) Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table. (2) Includes assets classified as fixed maturities available-for-sale. (3) Future policy benefits primarily represent general account liabilities for the living benefit features of the Company’s variable annuity contracts which are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (4) Lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. (5) The spread over the London Inter-Bank Offered Rate ("LIBOR") swap curve represents the premium added to the proxy for the risk-free rate (LIBOR) to reflect our estimates of rates that a market participant would use to value the living benefit contracts in both the accumulation and payout phases. This spread includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because both funding agreements and living benefit contracts are insurance liabilities and are therefore senior to debt. (6) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits. (7) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of September 30, 2018 and December 31, 2017 , the minimum withdrawal rate assumption is 78% and the maximum withdrawal rate assumption may be greater than 100% . The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%. (8) Range reflects the mortality rate for the vast majority of business with living benefits, with policyholders ranging from 50 to 90 years old. While the majority of living benefits have a minimum age requirement, certain benefits do not have an age restriction. This results in contractholders for certain benefits with mortality rates approaching 0% . Based on historical experience, the Company applies a set of age and duration specific mortality rate adjustments compared to standard industry tables. A mortality improvement assumption is also incorporated into the overall mortality table. Interrelationships Between Unobservable Inputs – In addition to the sensitivities of fair value measurements to changes in each unobservable input in isolation, as reflected in the table above, interrelationships between these inputs may also exist, such that a change in one unobservable input may give rise to a change in another, or multiple, inputs. For the discussion of the relationships between unobservable inputs as well as market factors that may affect the range of inputs used in the valuation of Level 3 assets and liabilities, see Note 9 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 . Changes in Level 3 Assets and Liabilities – The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. All transfers are generally reported at the value as of the beginning of the quarter in which transfers occur for any such assets still held at the end of the quarter. During the second quarter of, 2018, $5 million of investments in collateralized loan obligations (“CLOs”) reported as “Asset-backed securities” were transferred from Level 3 to Level 2 as market activity, liquidity and overall observability of valuation inputs of CLOs have increased. For further information on valuation processes, see Note 9 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 . Three Months Ended September 30, 2018 Fixed Maturities Available-for-Sale Corporate Securities(1) Structured Securities(2) Equity Securities (in thousands) Fair Value, beginning of period $ 10,007 $ 2,292 $ 6,966 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 257 (6 ) 0 Asset administration fees and other income 0 0 (153 ) Included in other comprehensive income (loss) (2,009 ) (29 ) 0 Net investment income 58 (1 ) 0 Purchases 87 9,606 0 Sales 0 0 0 Issuances 0 0 0 Settlements (5,337 ) (2,101 ) 0 Transfers into Level 3(4) 0 0 0 Transfers out of Level 3(4) 0 0 0 Other 0 0 0 Fair Value, end of period $ 3,063 $ 9,761 $ 6,813 Unrealized gains (losses) for assets still held(5): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 Asset administration fees and other income $ 0 $ 0 $ (153 ) Three Months Ended September 30, 2018 Reinsurance Recoverables Receivables from Future Policy Benefits Policyholders' Account Balances (in thousands) Fair Value, beginning of period $ 336,084 $ 0 $ (336,084 ) $ (5,627 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net(6) (115,916 ) 0 115,916 (2,785 ) Asset administration fees and other income 0 0 0 0 Included in other comprehensive income (loss) 0 0 0 0 Net investment income 0 0 0 0 Purchases 21,916 0 0 0 Sales 0 0 0 0 Issuances 0 0 (21,916 ) 0 Settlements 0 0 0 343 Transfers into Level 3(4) 0 0 0 0 Transfers out of Level 3(4) 0 0 0 0 Other 0 0 0 0 Fair Value, end of period $ 242,084 $ 0 $ (242,084 ) $ (8,069 ) Unrealized gains (losses) for assets/liabilities still held(5): Included in earnings: Realized investment gains (losses), net $ (113,221 ) $ 0 $ 113,221 $ (2,785 ) Asset administration fees and other income $ 0 $ 0 $ 0 $ 0 Nine Months Ended September 30, 2018 Fixed Maturities Available-for-Sale Corporate Securities(1) Structured Securities(2) Equity Securities (in thousands) Fair Value, beginning of period $ 14,516 $ 11,575 $ 7,428 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 133 15 0 Asset administration fees and other income 0 0 (615 ) Included in other comprehensive income (loss) (2,645 ) (59 ) 0 Net investment income 134 5 0 Purchases 233 9,797 0 Sales (45 ) (196 ) 0 Issuances 0 0 0 Settlements (9,263 ) (2,682 ) 0 Transfers into Level 3(4) 0 196 0 Transfers out of Level 3(4) 0 (8,890 ) 0 Other 0 0 0 Fair Value, end of period $ 3,063 $ 9,761 $ 6,813 Unrealized gains (losses) for assets still held(5): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 Asset administration fees and other income $ 0 $ 0 $ (615 ) Nine Months Ended September 30, 2018 Reinsurance Recoverables Receivables from Future Policy Benefits Policyholders' Account Balances (in thousands) Fair Value, beginning of period $ 472,157 $ 0 $ (472,157 ) $ (5,463 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net(6) (294,969 ) 0 294,969 (3,111 ) Asset administration fees and other income 0 0 0 0 Included in other comprehensive income (loss) 0 (18 ) 0 0 Net investment income 0 0 0 0 Purchases 64,896 0 0 0 Sales 0 0 0 0 Issuances 0 0 (64,896 ) 0 Settlements 0 0 0 505 Transfers into Level 3(4) 0 6,047 0 0 Transfers out of Level 3(4) 0 (6,029 ) 0 0 Other 0 0 0 0 Fair Value, end of period $ 242,084 $ 0 $ (242,084 ) $ (8,069 ) Unrealized gains (losses) for assets/liabilities still held(5): Included in earnings: Realized investment gains (losses), net $ (283,085 ) $ 0 $ 283,085 $ (3,111 ) Asset administration fees and other income $ 0 $ 0 $ 0 $ 0 Three Months Ended September 30, 2017 Fixed Maturities Available-For-Sale Corporate Securities(1) Structured Securities(2) Equity Securities(3) (in thousands) Fair Value, beginning of period $ 14,703 $ 8,506 $ 7,264 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net (12 ) 2 0 Asset administration fees and other income 0 0 (28 ) Included in other comprehensive income (loss) (58 ) (11 ) 0 Net investment income 36 2 0 Purchases 7 2,993 0 Sales 0 0 0 Issuances 0 0 0 Settlements (21 ) (865 ) 0 Transfers into Level 3(4) 404 1,507 0 Transfers out of Level 3(4) 0 0 0 Other (10 ) 0 10 Fair Value, end of period $ 15,049 $ 12,134 $ 7,246 Unrealized gains (losses) for assets still held(5): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 Asset administration fees and other income $ 0 $ 0 $ (28 ) Three Months Ended September 30, 2017 Reinsurance Recoverables Receivables from Parent and Affiliates Future Policy Benefits Policyholders' Account Balances (in thousands) Fair Value, beginning of period $ 562,818 $ 0 $ (562,818 ) $ (3,556 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net(6) (128,465 ) 0 128,465 (672 ) Asset administration fees and other income 0 0 0 0 Interest credited to policyholders' account balances 0 0 0 2,291 Included in other comprehensive income (loss) 0 0 0 0 Net investment income 0 0 0 0 Purchases 20,843 0 0 0 Sales 0 0 0 0 Issuances 0 0 (20,843 ) 0 Settlements 0 0 0 (2,280 ) Transfers into Level 3(4) 0 0 0 0 Transfers out of Level 3(4) 0 0 0 0 Other 0 0 0 0 Fair Value, end of period $ 455,196 $ 0 $ (455,196 ) $ (4,217 ) Unrealized gains (losses) for assets/liabilities still held(5): Included in earnings: Realized investment gains (losses), net $ (124,390 ) $ 0 $ 124,390 $ (672 ) Asset administration fees and other income $ 0 $ 0 $ 0 $ 0 Interest credited to policyholders' account balances $ 0 $ 0 $ 0 $ 885 Nine Months Ended September 30, 2017 Fixed Maturities Available-For-Sale Corporate Securities(1) Structured Securities(2) Equity Securities(3) (in thousands) Fair Value, beginning of period $ 15,489 $ 2,328 $ 6,721 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net (74 ) 14 0 Asset administration fees and other income 0 0 515 Included in other comprehensive income (loss) 338 (48 ) 0 Net investment income 101 8 0 Purchases 1,422 2,993 0 Sales (767 ) 0 0 Issuances 0 0 0 Settlements (64 ) (6,816 ) 0 Transfers into Level 3(4) 404 15,153 0 Transfers out of Level 3(4) (1,790 ) (1,498 ) 0 Other (10 ) 0 10 Fair Value, end of period $ 15,049 $ 12,134 $ 7,246 Unrealized gains (losses) for assets still held(5): Included in earnings: Realized investment gains (losses), net $ (62 ) $ 0 $ 0 Asset administration fees and other income $ 0 $ 0 $ 515 Nine Months Ended September 30, 2017 Reinsurance Recoverables Receivables from Parent and Affiliates Future Policy Benefits Policyholders' Account Balances (in thousands) Fair Value, beginning of period $ 434,713 $ 5,993 $ (434,713 ) $ (2,298 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net(6) (40,796 ) 0 40,796 (1,967 ) Asset administration fees and other income 0 0 0 0 Interest credited to policyholders' account balances 0 0 0 2,291 Included in other comprehensive income (loss) 0 0 0 0 Net investment income 0 0 0 0 Purchases 61,279 0 0 0 Sales 0 0 0 0 Issuances 0 0 (61,279 ) 0 Settlements 0 0 0 (2,243 ) Transfers into Level 3(4) 0 0 0 0 Transfers out of Level 3(4) 0 (5,993 ) 0 0 Other 0 0 0 0 Fair Value, end of period $ 455,196 $ 0 $ (455,196 ) $ (4,217 ) Unrealized gains (losses) for assets/liabilities still held(5): Included in earnings: Realized investment gains (losses), net $ (31,015 ) $ 0 $ 31,015 $ (1,967 ) Asset administration fees and other income $ 0 $ 0 $ 0 $ 0 Interest credited to policyholders' account balances $ 0 $ 0 $ 0 $ 2,291 (1) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. Prior period amounts were aggregated to conform to current period presentation. (2) Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities. Prior period amounts were aggregated to conform to current period presentation. (3) Prior period amounts have been reclassified to conform to current period presentation. See Note 2 for details. (4) Transfers into or out of any level are generally reported at the value as of the beginning of the quarter in which the transfers occur for any such assets still held at the end of the quarter. (5) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts. (6) Realized investment gains (losses) on future policy benefits and reinsurance recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts. Fair Value of Financial Instruments The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Unaudited Interim Consolidated Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value. September 30, 2018 (1) Fair Value Carrying Amount(2) Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 120,859 $ 120,859 $ 121,218 Policy loans 0 0 203,384 203,384 203,384 Cash and cash equivalents 4,411 27,000 0 31,411 31,411 Accrued investment income 0 17,710 0 17,710 17,710 Receivables from parent and affiliates 0 35,079 0 35,079 35,079 Other assets 0 5,891 0 5,891 5,891 Total assets $ 4,411 $ 85,680 $ 324,243 $ 414,334 $ 414,693 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 179,909 $ 38,973 $ 218,882 $ 219,964 Cash collateral for loaned securities 0 977 0 977 977 Short-term debt to affiliates 0 1,744 0 1,744 1,744 Payables to parent and affiliates 0 17,945 0 17,945 17,945 Other liabilities 0 45,331 0 45,331 45,331 Total liabilities $ 0 $ 245,906 $ 38,973 $ 284,879 $ 285,961 December 31, 2017(1) Fair Value Carrying Amount(2) Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 125,121 $ 125,121 $ 121,796 Policy loans 0 0 193,244 193,244 193,244 Cash and cash equivalents 1,618 43,000 0 44,618 44,618 Accrued investment income 0 16,580 0 16,580 16,580 Receivables from parent and affiliates 0 33,674 0 33,674 33,674 Other assets 0 5,768 0 5,768 5,768 Total assets $ 1,618 $ 99,022 $ 318,365 $ 419,005 $ 415,680 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 179,246 $ 41,702 $ 220,948 $ 221,407 Cash collateral for loaned securities 0 15,208 0 15,208 15,208 Short-term debt to affiliates 0 0 0 0 0 Payables to parent and affiliates 0 21,673 0 21,673 21,673 Other liabilities 0 39,561 0 39,561 39,561 Total liabilities $ 0 $ 255,688 $ 41,702 $ 297,390 $ 297,849 (1) The information presented as of December 31, 2017 , excludes certain hedge funds, private equity funds and other funds that were accounted for using the cost method and for which the fair value was measured at NAV per share (or its equivalent) as a practical expedient. The fair value and the carrying value of these cost method investments were $2.3 million and $2.6 million , respectively. Due to the adoption of ASU 2016-01 effective January 1, 2018, these assets are carried at fair value at each reporting date with changes in fair value reported in “Other income.” Therefore, as of September 30, 2018 , these assets are excluded from this table but are reported in the fair value recurring measurement table. (2) Carrying values presented herein differ from those in the Company’s Unaudited Interim Consolidated Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or are out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company uses a full year projected effective tax rate approach to calculate year-to-date taxes. In addition, certain items impacting total income tax expense are recorded in the periods in which they occur. The projected effective tax rate is the ratio of projected “Total income tax expense” divided by projected “Income from operations before income taxes". The interim period tax expense (or benefit) is the difference between the year-to-date income tax provision and the amounts reported for the previous interim periods of the fiscal year. The Company's income tax provision, on a consolidated basis, amounted to an income tax expense of $1.6 million , or 6.4% of income from operations before income taxes in the first nine months of 2018, compared to an income tax benefit of $5.3 million , or (25.8)% , in the first nine months of 2017. The Company’s 2018 effective tax rates differed from the U.S. statutory tax rate of 21% primarily due to non-taxable investment income, tax credits and unique items described below that were recorded in the periods in which they occurred. The Company's 2017 effective tax rate differed from the U.S. statutory tax rate of 35% primarily due to non-taxable investment income, tax credits and domestic production activities deduction. The Tax Cuts and Jobs Act of 2017 ("Tax Act of 2017") modified the methodology for determining the dividend received deduction and will likely reduce the tax benefit of non-taxable investment income in periods starting after December 31, 2017. Resolution of tax audit issues - During the third quarter of 2018, the Company reached an agreement with the Internal Revenue Service (“IRS”) to resolve outstanding tax audit issues for tax years 2015 and 2016 and partially for 2017 which resulted in a $2.1 million increase to our income tax expense for the first nine months of 2018. U.S. Tax Cuts and Jobs Act of 2017 - On December 22, 2017, the Tax Act of 2017 was enacted into U.S. law. As a result, the Company recognized a $2.5 million tax expense in “Total income tax expense (benefit)” in the Company’s Statements of Operations for the year ended December 31, 2017. In accordance with SEC Staff Accounting Bulletin 118, the Company recorded the effects of the Tax Act of 2017 using reasonable estimates due to the need for further analysis of the provisions within the Tax Act of 2017 and collection, preparation and analysis of relevant data necessary to complete the accounting. The Company has not fully completed its accounting for the tax effects of the Tax Act of 2017. As the Company completes the collection, preparation and analysis of data relevant to the Tax Act of 2017, and interprets any additional guidance issued by the IRS, U.S. Department of the Treasury, or other standard-setting organizations, the Company may make adjustments to these provisional amounts. These adjustments may materially impact the Company’s provision for income taxes in the period in which the adjustments are made. During the first nine months of 2018, the Company recognized a $0.1 million increase in income tax expense primarily related to refinements of our provisional estimates. |
Reinsurance
Reinsurance | 9 Months Ended |
Sep. 30, 2018 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | REINSURANCE The Company participates in reinsurance with its affiliates Prudential Arizona Reinsurance Captive Company (“PARCC”), Prudential Arizona Reinsurance Term Company (“PAR Term”), Prudential Arizona Reinsurance Universal Company (“PAR U”), and Prudential Term Reinsurance Company (“Term Re”), Dryden Arizona Reinsurance Term Company (“DART”), its parent companies, Pruco Life and Prudential Insurance, as well as third parties, and participated in reinsurance with its affiliate Pruco Re through March 31, 2016 . The reinsurance agreements provide risk diversification and additional capacity for future growth, limit the maximum net loss potential, manage statutory capital, facilitate the Company's capital market hedging program, and align accounting methodology for the assets and liabilities of living benefit guarantees contained in annuities contracts. See Note 1 for additional information on the change effective April 1, 2016 related to the Variable Annuities Recapture. Life reinsurance is accomplished through various plans of reinsurance, primarily yearly renewable term and coinsurance. Reinsurance ceded arrangements do not discharge the Company as the primary insurer. Ceded balances would represent a liability of the Company in the event the reinsurers were unable to meet their obligations to the Company under the terms of the reinsurance agreements. The Company believes a material reinsurance liability resulting from such inability of reinsurers to meet their obligations is unlikely. Reserves related to reinsured long-duration contracts are accounted for using assumptions consistent with those used to account for the underlying contracts. Amounts recoverable from reinsurers for long-duration reinsurance arrangements are estimated in a manner consistent with the claim liabilities and policy benefits associated with the reinsured policies. Reinsurance premiums ceded for universal life products are accounted for as a reduction of policy charges and fee income. Reinsurance premiums ceded for term insurance products are accounted for as a reduction of premiums. Realized investment gains and losses include the impact of reinsurance agreements, particularly reinsurance agreements involving living benefit guarantees. The Company has entered into a reinsurance agreement to transfer the risk related to living benefit guarantees on variable annuities to Prudential Insurance. See Note 1 for additional information on the change effective April 1, 2016 related to the Variable Annuities Recapture. These reinsurance agreements are derivatives and have been accounted for in the same manner as embedded derivatives and the changes in the fair value of these derivatives are recognized through “Realized investment gains (losses), net”. For additional information related to the accounting for embedded derivatives, see Note 10 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. Reinsurance amounts included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as of September 30, 2018 and December 31, 2017 were as follows: September 30, 2018 December 31, 2017 (in thousands) Reinsurance recoverables $ 2,399,223 $ 2,480,848 Policy loans (17,256 ) (16,065 ) Deferred policy acquisition costs (740,172 ) (708,740 ) Deferred sales inducements (53,582 ) (58,399 ) Other assets 16,384 19,159 Other liabilities 58,847 56,232 The reinsurance recoverables by counterparty are broken out below: September 30, 2018 December 31, 2017 (in thousands) PAR U $ 889,117 $ 814,408 Prudential Insurance 661,491 859,122 PARCC 475,546 485,809 PAR Term 200,560 188,756 Term Re 143,171 116,869 Pruco Life 16,113 13,671 DART 9,355 0 Unaffiliated 3,870 2,213 Total reinsurance recoverables $ 2,399,223 $ 2,480,848 Reinsurance amounts, included in the Company’s Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and nine months ended September 30, were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Premiums: Direct $ 58,529 $ 57,376 $ 178,388 $ 172,762 Ceded (55,002 ) (53,950 ) (169,212 ) (163,136 ) Net premiums 3,527 3,426 9,176 9,626 Policy charges and fee income: Direct 90,576 96,618 275,199 314,799 Ceded(1) (87,705 ) (90,789 ) (226,976 ) (285,065 ) Net policy charges and fee income 2,871 5,829 48,223 29,734 Net investment income: Direct 17,418 16,223 51,863 49,633 Ceded (164 ) (151 ) (452 ) (447 ) Net investment income 17,254 16,072 51,411 49,186 Asset administration fees: Direct 9,295 9,936 27,355 28,757 Ceded (7,901 ) (7,564 ) (23,321 ) (21,891 ) Net asset administration fees 1,394 2,372 4,034 6,866 Realized investment gains (losses), net: Direct 115,879 127,633 293,654 39,201 Ceded (118,665 ) (131,233 ) (302,267 ) (49,244 ) Realized investment gains (losses), net (2,786 ) (3,600 ) (8,613 ) (10,043 ) Policyholders’ benefits (including change in reserves): Direct 61,835 69,360 209,306 220,229 Ceded(2) (67,933 ) (72,593 ) (198,245 ) (212,400 ) Net policyholders’ benefits (including change in reserves) (6,098 ) (3,233 ) 11,061 7,829 Interest credited to policyholders’ account balances: Direct 17,975 17,921 51,105 40,079 Ceded (8,830 ) (9,477 ) (24,485 ) (15,668 ) Net interest credited to policyholders’ account balances 9,145 8,444 26,620 24,411 Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization (43,142 ) (54,460 ) (124,588 ) (133,435 ) (1) "Policy charges and fee income ceded" includes $(4) million of unaffiliated activity for both the three and nine months ended September 30, 2018 and 2017 . (2) "Policyholders’ benefits (including change in reserves) ceded" includes $(3) million of unaffiliated activity for both the three months ended September 30, 2018 and 2017 , and $(3) million and $(1) million for the nine months ended September 30, 2018 and 2017 , respectively. The gross and net amounts of life insurance face amount in force as of September 30, 2018 and 2017 were as follows: 2018 2017 (in thousands) Direct gross life insurance face amount in force $ 139,873,270 $ 134,814,151 Reinsurance ceded (127,440,273 ) (122,782,744 ) Net life insurance face amount in force $ 12,432,997 $ 12,031,407 Information regarding significant affiliated reinsurance agreements is described below. PAR U Effective July 1, 2011 , the Company reinsures an amount equal to 95% of all risks associated with Universal Protector policies having no-lapse guarantees as well as certain of its universal policies, excluding those policies that are subject to principles-based reserving. Prudential Insurance The Company has a yearly renewable term reinsurance agreement with Prudential Insurance and reinsures the majority of all mortality risks not otherwise reinsured. Effective July 1, 2017, this agreement was terminated for certain new business, primarily Universal Life business, and such business was reinsured to Pruco Life under a yearly renewable term reinsurance agreement. Effective April 1, 2016 the Company entered into a reinsurance agreement with Prudential Insurance to reinsure its variable annuity base contracts, along with the living benefit guarantees. See Note 1 for additional information related to the Variable Annuities Recapture. PARCC The Company reinsures 90% of the risks under its term life insurance policies with effective dates prior to January 1, 2010 through an automatic coinsurance agreement with PARCC. PAR Term The Company reinsures 95% of the risks under its term life insurance policies, with effective dates January 1, 2010 through December 31, 2013 , through an automatic coinsurance agreement with PAR Term. Term Re The Company reinsures 95% of the risks under its term life insurance policies with effective dates on or after January 1, 2014 through December 31, 2017 , through an automatic coinsurance agreement with Term Re. Pruco Life Effective July 1, 2017 , the Company entered into a yearly renewable term reinsurance agreement with Pruco Life for new business, primarily covering Universal Life policies. Under this agreement the majority of all mortality risk is ceded to Pruco Life. The Company also reinsures certain Corporate Owned Life Insurance (“COLI”) policies with Pruco Life. Through March 31, 2016 , the Company reinsured Prudential Defined Income ("PDI") living benefit guarantees with Pruco Life. Effective April 1, 2016 , the Company recaptured PDI living benefit guarantees from Pruco Life and reinsured them with Prudential Insurance. See Note 1 for additional information related to the Variable Annuities Recapture. DART Effective January 1, 2018 , the Company entered into an automatic coinsurance agreement with DART to reinsure an amount equal to 95% of the risks associated with its term life insurance policies with effective dates on or after January 1, 2018 . Pruco Re Through March 31, 2016 , the Company entered into various automatic coinsurance agreements with Pruco Re to reinsure its living benefit guarantees sold on certain of its annuities. See Note 1 for additional information on the change effective April 1, 2016 related to the Variable Annuities Recapture. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Equity | EQUITY Accumulated Other Comprehensive Income (Loss) The balance of and changes in each component of “Accumulated other comprehensive income (loss)” for the nine months ended September 30, 2018 and 2017 , are as follows: Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustments Net Unrealized Investment Gains (Losses)(1) Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, December 31, 2017 $ (42 ) $ 34,372 $ 34,330 Change in OCI before reclassifications (1,162 ) (67,102 ) (68,264 ) Amounts reclassified from AOCI 0 (998 ) (998 ) Income tax benefit (expense) 243 14,301 14,544 Cumulative effect of adoption of ASU 2016-01 0 (175 ) (175 ) Cumulative effect of adoption of ASU 2018-02 (8 ) 5,901 5,893 Balance, September 30, 2018 $ (969 ) $ (13,701 ) $ (14,670 ) Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustments Net Unrealized Investment Gains (Losses)(1) Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, December 31, 2016 $ (70 ) $ 12,231 $ 12,161 Change in OCI before reclassifications 37 22,659 22,696 Amounts reclassified from AOCI 0 1,014 1,014 Income tax benefit (expense) (13 ) (8,286 ) (8,299 ) Balance, September 30, 2017 $ (46 ) $ 27,618 $ 27,572 (1) Includes cash flow hedges of $(3) million and $(5) million as of September 30, 2018 and December 31, 2017 , respectively, and $(2) million and $5 million as of September 30, 2017 and December 31, 2016 , respectively . Reclassifications out of Accumulated Other Comprehensive Income (Loss) Three Months Ended Nine Months Ended 2018 2017 2018 2017 (in thousands) Amounts reclassified from AOCI (1)(2): Net unrealized investment gains (losses): Cash flow hedges - Currency/ Interest rate(3) $ 554 $ 18 $ 944 $ (275 ) Net unrealized investment gains (losses) on available-for-sale securities(4) 238 (488 ) 54 (739 ) Total net unrealized investment gains (losses) 792 (470 ) 998 (1,014 ) Total reclassifications for the period $ 792 $ (470 ) $ 998 $ (1,014 ) (1) All amounts are shown before tax. (2) Positive amounts indicate gains/ benefits reclassified out of AOCI. Negative amounts indicate losses/ costs reclassified out of AOCI. (3) See Note 4 for additional information on cash flow hedges. (4) See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition costs and other costs, future policy benefits, policyholders’ account balances and other liabilities. Net Unrealized Investment Gains (Losses) Net unrealized investment gains (losses) on securities classified as available-for-sale, certain other invested assets and other assets are included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as a component of AOCI. Changes in these amounts include reclassification adjustments to exclude from “Other comprehensive income (loss)” those items that are included as part of “Net income” for a period that had been part of “Other comprehensive income (loss)” in earlier periods. The amounts for the periods indicated below, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains (losses), are as follows: Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities on which an OTTI loss has been recognized Net Unrealized Gains (Losses) on Deferred Policy Acquisition Costs and Other Costs Future Policy Benefits, Policyholders' Account Balances and Other Liabilities Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) (in thousands) Balance, December 31, 2017 $ 162 $ (63 ) $ 109 $ (70 ) $ 138 Net investment gains (losses) on investments arising during the period 6 0 0 (1 ) 5 Reclassification adjustment for (gains) losses included in net income (23 ) 0 0 5 (18 ) Reclassification adjustment for OTTI (gains) losses excluded from net income(1) 0 0 0 0 0 Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 24 0 (5 ) 19 Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities 0 0 (55 ) 12 (43 ) Balance, September 30, 2018 $ 145 $ (39 ) $ 54 $ (59 ) $ 101 (1) Represents "transfers in" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. All Other Net Unrealized Investment Gains (Losses) in AOCI Net Unrealized Gains (Losses) on Investments(1) Deferred Policy Acquisition Costs and Other Costs Future Policy Benefits, Policyholders' Account Balances and Other Liabilities Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive (in thousands) Balance, December 31, 2017 $ 52,537 $ 35 $ (1,754 ) $ (16,584 ) $ 34,234 Net investment gains (losses) on investments arising during the period (69,597 ) 0 0 14,614 (54,983 ) Reclassification adjustment for (gains) losses included in net income (975 ) 0 0 205 (770 ) Reclassification adjustment for OTTI (gains) losses excluded from net income(2) 0 0 0 0 0 Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 3,434 0 (721 ) 2,713 Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities 0 0 (914 ) 192 (722 ) Cumulative effect of adoption of ASU 2016-01 (270 ) 0 0 95 (175 ) Cumulative effect of adoption of ASU 2018-02 0 0 0 5,901 5,901 Balance, September 30, 2018 $ (18,305 ) $ 3,469 $ (2,668 ) $ 3,702 $ (13,802 ) (1) Includes cash flow hedges. See Note 4 for information on cash flow hedges. (2) Represents "transfers out" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS The Company has extensive transactions and relationships with Prudential Insurance and other affiliates. Although we seek to ensure that these transactions and relationships are fair and reasonable, it is possible that the terms of these transactions are not the same as those that would result from transactions among unrelated parties. Expense Charges and Allocations Many of the Company’s expenses are allocations or charges from Prudential Insurance or other affiliates. These expenses can be grouped into general and administrative expenses and agency distribution expenses. The Company’s general and administrative expenses are charged to the Company using allocation methodologies based on business production processes. Management believes that the methodology is reasonable and reflects costs incurred by Prudential Insurance to process transactions on behalf of the Company. The Company operates under service and lease agreements whereby services of officers and employees, supplies, use of equipment and office space are provided by Prudential Insurance. The Company reviews its allocation methodology periodically which it may adjust accordingly. General and administrative expenses include allocations of stock compensation expenses related to a stock-based awards program and a deferred compensation program issued by Prudential Financial. The expense charged to the Company for the stock-based awards program was $0.0 million for both the three months ended September 30, 2018 and 2017 , and $0.1 million for both the nine months ended September 30, 2018 and 2017 . The expense charged to the Company for the deferred compensation program was $0.2 million for both the three months ended September 30, 2018 and 2017 , and $0.6 million and $0.9 million for the nine months ended September 30, 2018 and 2017 , respectively. The Company is charged for its share of employee benefit expenses. These expenses include costs for funded and non-funded contributory and non-contributory defined benefit pension plans. Some of these benefits are based on final earnings and length of service while others are based on an account balance, which takes into consideration age, service and earnings during a career. The Company’s share of net expense for the pension plans was $0.6 million and $0.7 million for the three months ended September 30, 2018 and 2017 , respectively, and $2 million for both the nine months ended September 30, 2018 and 2017 . The Company is also charged for its share of the costs associated with welfare plans issued by Prudential Insurance. These expenses include costs related to medical, dental, life insurance and disability. The Company's share of net expense for the welfare plans was $0.8 million for both the three months ended September 30, 2018 and 2017 , respectively, and $2 million and $3 million for the nine months ended September 30, 2018 and 2017 , respectively. Prudential Insurance sponsors voluntary savings plans for its employee 401(k) plans. The plans provide for salary reduction contributions by employees and matching contributions by the Company of up to 4% of annual salary. The Company’s expense for its share of the voluntary savings plan was $0.3 million for both the three months ended September 30, 2018 and 2017 , and $0.8 million and $0.9 million for the nine months ended September 30, 2018 and 2017 respectively. The Company is charged distribution expenses from Prudential Insurance’s agency network for both its domestic life and annuity products through a transfer pricing agreement, which is intended to reflect a market-based pricing arrangement. The Company pays commissions and certain other fees to Prudential Annuities Distributors, Inc. (“PAD”) in consideration for PAD’s marketing and underwriting of the Company’s annuity products. Commissions and fees are paid by PAD to broker-dealers who sell the Company’s annuity products. Commissions and fees paid by the Company to PAD were $19 million and $15 million for the three months ended September 30, 2018 and 2017 , respectively, and $54 million and $46 million for the nine months ended September 30, 2018 and 2017 , respectively. The Company is charged for its share of corporate expenses incurred by Prudential Financial to benefit its businesses, such as advertising, executive oversight, external affairs and philanthropic activity. The Company’s share of corporate expenses was $2 million for both the three months ended September 30, 2018 and 2017 , and $6 million for both the nine months ended September 30, 2018 and 2017 . Corporate Owned Life Insurance The Company has sold three Corporate Owned Life Insurance ("COLI") policies to Prudential Insurance and one to Prudential Financial. The cash surrender value included in separate accounts for these COLI policies was $2,417 million at September 30, 2018 and $2,244 million at December 31, 2017 . Fees related to these COLI policies were $6 million for both the three months ended September 30, 2018 and 2017 , and $19 million for both the nine months ended September 30, 2018 and 2017 . The Company retains 10% of the mortality risk associated with these COLI policies up to $0.1 million per policy. Affiliated Investment Management Expenses In accordance with an agreement with PGIM, Inc. (“PGIM”), the Company pays investment management expenses to PGIM who acts as investment manager to certain Company general account and separate account assets. Investment management expenses paid to PGIM related to this agreement were $0.7 million and $0.6 million for the three months ended September 30, 2018 and 2017 , respectively, and $2 million for both the nine months ended September 30, 2018 and 2017 . These expenses are recorded as “Net investment income” in the Company's Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss). Derivative Trades In its ordinary course of business, the Company enters into OTC derivative contracts with an affiliate, PGF. For these OTC derivative contracts, PGF has a substantially equal and offsetting position with an external counterparty. See Note 4 for additional information. Joint Ventures The Company has made investments in joint ventures with certain subsidiaries of Prudential Financial. "Other invested assets" includes $34 million and $29 million as of September 30, 2018 and December 31, 2017 , respectively. "Net investment income" related to these ventures includes a gain of $0.4 million and $0.5 million for the three months ended September 30, 2018 and 2017 , respectively, and $1 million and $2 million for the nine months ended September 30, 2018 and 2017 , respectively. Affiliated Asset Administration Fee Income The Company has a revenue sharing agreement with AST Investment Services, Inc. ("ASTISI") and PGIM Investments LLC ("PGIM Investments") whereby the Company receives fee income based on policyholders' separate account balances invested in the Advanced Series Trust. Income received from ASTISI and PGIM Investments related to this agreement was $8 million for both the three months ended September 30, 2018 and 2017 , and $23 million and $22 million for the nine months ended September 30, 2018 and 2017 , respectively. These revenues are recorded as “Asset administration fees” in the Company's Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss). The Company has a revenue sharing agreement with PGIM Investments, whereby the Company receives fee income based on policyholders' separate account balances invested in The Prudential Series Fund. Income received from PGIM Investments related to this agreement was $1 million and $2 million for the three months ended September 30, 2018 and 2017 , respectively, and $4 million and $7 million for the nine months ended September 30, 2018 and 2017 , respectively. These revenues are recorded as “Asset administration fees” in the Company’s Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss). Affiliated Notes Receivable Affiliated notes receivable included in “Receivables from parent and affiliates” at September 30, 2018 and December 31, 2017 were as follows: Maturity Dates Interest Rates September 30, 2018 December 31, 2017 (in thousands) U.S. dollar floating rate notes 2028 3.74% - 3.83 % $ 6,007 $ 6,047 U.S. dollar fixed rate notes 2026 - 2027 0.00% - 14.85 % 2,915 3,330 Total long-term notes receivable - affiliated(1) $ 8,922 $ 9,377 (1) All long-term notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances. The affiliated notes receivable shown above are classified as available-for-sale securities and other trading assets carried at fair value. The Company monitors the internal and external credit ratings of these loans and loan performance. The Company also considers any guarantees made by Prudential Insurance for loans due from affiliates. Accrued interest receivable related to these loans was $0.1 million at both September 30, 2018 and December 31, 2017 , and is included in “Other assets”. Revenues related to these assets were $0.1 million for both the three months ended September 30, 2018 and 2017 , and $0.2 million for both the nine months ended September 30, 2018 and 2017 , and are included in “Other income”. Affiliated Asset Transfers The Company participates in affiliated asset trades with parent and sister companies. Book and market value differences for trades with a parent and sister are recognized within "Additional paid-in capital" (“APIC”) and "Realized investment gains (losses), net", respectively. The table below shows affiliated asset trades for the nine months ended September 30, 2018 and for the year ended December 31, 2017 . Affiliate Date Transaction Security Type Fair Value Book Value APIC, Net of Tax Increase/(Decrease) Realized Investment Gain (Loss), Net of Tax (in thousands) Prudential Insurance June 2017 Sale Fixed Maturities & Short-Term Investments $ 16,965 $ 16,515 $ 293 $ 0 Prudential Insurance June 2017 Sale Commercial Mortgages $ 43,198 $ 42,301 $ 584 $ 0 Gibraltar Universal Life Reinsurance Company May 2018 Purchase Fixed Maturities $ 17,904 $ 17,904 $ 0 $ 0 Debt Agreements The Company is authorized to borrow funds up to $200 million from affiliates to meet its capital and other funding needs. The following table provides the breakout of the Company's short-term debt to affiliates as of September 30, 2018 and December 31, 2017 . Affiliate Date Issued Amount of Notes - September 30, 2018 Amount of Notes - December 31, 2017 Interest Rate Date of Maturity (in thousands) Prudential Funding, LLC 9/28/2018 $ 1,744 $ 0 0.23 % 10/1/2018 Total Loans Payable to Affiliates $ 1,744 $ 0 The total interest expense to the Company related to loans payable to affiliates was $0.0 million for both the three and nine months ended September 30, 2018 and 2017 . Contributed Capital and Dividends In both March of 2018 and 2017 , the Company received a capital contribution in the amount of $1 million from Pruco Life. Through September 30, 2018, the Company did not pay any dividends. In June 2017, the Company paid a dividend in the amount of $100 million to Pruco Life. Reinsurance with Affiliates As discussed in Note 7 , the Company participates in reinsurance transactions with certain affiliates. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | COMMITMENTS AND CONTINGENT LIABILITIES Commitments The Company has made commitments to fund commercial loans. As of September 30, 2018 , there were no outstanding commitments to fund commercial loans, and $2 million as of December 31, 2017 . The Company has made commitments to purchase or fund investments, mostly private fixed maturities. As of September 30, 2018 and December 31, 2017 , $35 million and $33 million , respectively, of these commitments were outstanding. Contingent Liabilities On an ongoing basis, the Company’s internal supervisory and control functions review the quality of sales, marketing and other customer interface procedures and practices and may recommend modifications or enhancements. From time to time, this review process results in the discovery of product administration, servicing or other errors, including errors relating to the timing or amount of payments or contract values due to customers. In certain cases, if appropriate, the Company may offer customers remediation and may incur charges, including the cost of such remediation, administrative costs and regulatory fines. The Company is subject to the laws and regulations of states and other jurisdictions concerning the identification, reporting and escheatment of unclaimed or abandoned funds, and is subject to audit and examination for compliance with these requirements. For additional discussion of these matters, see “Litigation and Regulatory Matters” below. It is possible that the results of operations or the cash flows of the Company in a particular quarterly or annual period could be materially affected as a result of payments in connection with the matters discussed above or other matters depending, in part, upon the results of operations or cash flows for such period. Management believes, however, that ultimate payments in connection with these matters, after consideration of applicable reserves and rights to indemnification, should not have a material adverse effect on the Company’s financial position. Litigation and Regulatory Matters The Company is subject to legal and regulatory actions in the ordinary course of its business. Pending legal and regulatory actions include proceedings specific to the Company and proceedings generally applicable to business practices in the industry in which it operates. The Company is subject to class action lawsuits and other litigation involving a variety of issues and allegations involving sales practices, claims payments and procedures, premium charges, policy servicing and breach of fiduciary duty to customers. The Company is also subject to litigation arising out of its general business activities, such as its investments, contracts, leases and labor and employment relationships, including claims of discrimination and harassment, and could be exposed to claims or litigation concerning certain business or process patents. In addition, the Company, along with other participants in the businesses in which it engages, may be subject from time to time to investigations, examinations and inquiries, in some cases industry-wide, concerning issues or matters upon which such regulators have determined to focus. In some of the Company’s pending legal and regulatory actions, parties are seeking large and/or indeterminate amounts, including punitive or exemplary damages. The outcome of litigation or a regulatory matter, and the amount or range of potential loss at any particular time, is often inherently uncertain. The Company establishes accruals for litigation and regulatory matters when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. For litigation and regulatory matters where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimable, no accrual is established, but the matter, if material, is disclosed. The Company estimates that as of September 30, 2018 , the aggregate range of reasonably possible losses in excess of accruals established for those litigation and regulatory matters for which such an estimate currently can be made is less than $10 million . This estimate is not an indication of expected loss, if any, or the Company's maximum possible loss exposure on such matters. The Company reviews relevant information with respect to its litigation and regulatory matters on a quarterly and annual basis and updates its accruals, disclosures and estimates of reasonably possible loss based on such reviews. For a discussion of the Company's litigation and regulatory matters, see Note 11 to the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . Wells Fargo MyTerm Sales In November 2018, the Company and Wells Fargo resolved the Company’s claims emanating from the MyTerm distribution agreement. Securities Lending and Foreign Tax Reclaim Matter In 2016, Prudential Financial self-reported to the SEC and the U.S. Department of Labor ("DOL"), and notified other regulators, that in some cases it failed to maximize securities lending income for the benefit of certain separate account investments due to a long-standing restriction benefiting Prudential Financial that limited the availability of loanable securities. Prudential Financial has removed the restriction and implemented a remediation plan for the benefit of customers. As part of Prudential Financial’s review of this matter, in 2018 it further self-reported to the SEC, and notified other regulators, that in some cases it failed to timely process foreign tax reclaims for the separate account investments. Prudential Financial has corrected the foreign tax reclaim process and is implementing a remediation plan for the benefit of customers. The DOL’s review of the securities lending matter is closed. Prudential Financial is cooperating with the SEC in its review of the securities lending and foreign tax reclaim matters (which includes a review of the remediation plans) and has entered into discussions with the SEC staff regarding a possible settlement of the securities lending matter that would potentially involve charges under the Investment Advisers Act and financial remedies. Prudential Financial cannot predict the outcome of the discussions with the SEC regarding the foreign tax reclaim matter or the possible settlement of the securities lending matter. Summary The Company’s litigation and regulatory matters are subject to many uncertainties, and given their complexity and scope, their outcome cannot be predicted. It is possible that the Company’s results of operations or cash flows in a particular quarterly or annual period could be materially affected by an ultimate unfavorable resolution of pending litigation and regulatory matters depending, in part, upon the results of operations or cash flows for such period. In light of the unpredictability of the Company’s litigation and regulatory matters, it is also possible that in certain cases an ultimate unfavorable resolution of one or more pending litigation or regulatory matters could have a material adverse effect on the Company’s financial position. Management believes, however, that, based on information currently known to it, the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, is not likely to have a material adverse effect on the Company’s financial position. |
Significant Accounting Polici_2
Significant Accounting Policies and Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Intercompany balances and transactions have been eliminated. In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining deferred policy acquisition costs and related amortization; amortization of deferred sales inducements; valuation of investments including derivatives and the recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; reinsurance recoverables; provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal and regulatory matters. |
Reclassifications | Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
Investment and Investment Related Lines | Fixed maturities, trading is a new financial statement line item comprised of fixed maturities that are carried at fair value. Prior to the adoption of the standard, these fixed maturities were reported in “Trading account assets, at fair value”. Realized and unrealized gains and losses on these investments are reported in “Other income”, and interest and dividend income from these investments is reported in “Net investment income”. Equity securities, at fair value is the new title of the financial statement line item formerly titled “Equity securities, available for sale, at fair value”. As a result of the adoption of the standard, equity securities previously reported in “Trading account assets, at fair value” were reclassified to “Equity securities, at fair value”. The retitled financial statement line is comprised of common stock and mutual fund shares, which are carried at fair value. Realized and unrealized gains and losses on these investments are reported in “Other income”, and dividend income is reported in “Net investment income” on the ex-dividend date. Prior to the adoption of the standard, for the equity investments reported in the financial statement line formerly titled “Equity securities, available for sale, at fair value,” the associated net realized gains and losses were included in “Realized investment gains (losses), net” and the associated net unrealized gains and losses were included in “Accumulated other comprehensive income (loss)” (“AOCI”). In addition, with the adoption of the standard, the identification of OTTI for these investments is no longer needed as all of these investments are now measured at fair value with changes in fair value reported in earnings. Other invested assets is the new title of the financial statement line formerly titled “Other long-term investments”. Investments previously reported in “Other long-term investments” were reclassified to “Other invested assets”. The retitled financial statement line consists of the Company’s non-coupon investments in Limited Partnerships and Limited Liability Companies ("LPs/LLCs")(other than operating joint ventures) and derivative assets. LPs/LLCs interests are accounted for using either the equity method of accounting, or at fair value with changes in fair value reported in “Other income”. Prior to the adoption of the standard, the Company applied the cost method of accounting for certain LPs/LLCs interests when its partnership interest was considered minor. The standard effectively eliminated the cost method of accounting for these equity investments. The Company’s income from investments in LPs/LLCs accounted for using the equity method, other than the Company’s investments in operating joint ventures, is included in “Net investment income”. The carrying value of these investments is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. In applying the equity method (including assessment for OTTI), the Company uses financial information provided by the investee, generally on a one to three month lag. For the investments reported at fair value with changes in fair value reported in current earnings, the associated realized and unrealized gains and losses are reported in “Other income”. |
Other income | Other income includes realized and unrealized gains or losses from investments reported as “Fixed maturities, trading”, “Equity securities, at fair value”, and “Other invested assets” that are measured at fair value. |
Adoption of New Accounting Pronouncements | Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of Accounting Standards Updates ("ASU") to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASU. ASU listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of the date of this filing. ASU not listed below were assessed and determined to be either not applicable or not material. Adoption of ASU 2016-01 Effective January 1, 2018, the Company adopted ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities using a modified retrospective method. Adoption of this ASU impacted the Company’s accounting and presentation related to equity investments. The most significant impact is that the changes in fair value of equity securities previously classified as “available for sale” are to be reported in net income within “Other income” in the Consolidated Statements of Operations. Prior to this, the changes in fair value on equity securities classified as “available for sale” were reported in “Accumulated other comprehensive income”. The impacts of this ASU on the Company’s Consolidated Financial Statements can be categorized as follows: (1) Changes to the presentation within the Consolidated Statements of Financial Position; (2) Cumulative-effect Adjustment Upon Adoption; and (3) Changes to Accounting Policies. Each of these components is described below. This section is meant to serve as an update to, and should be read in conjunction with, Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. (1) Changes to the presentation within the Consolidated Statements of Financial Position Because of the fundamental accounting changes as described in section "(3) Changes to Accounting Policies" below, the Company determined that changes to the presentation of certain balances in the investment section of the Company’s Consolidated Statements of Financial Position were also necessary to maintain clarity and logical presentation. The table below illustrates these changes by presenting the balances as previously reported in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 and the reclassifications that were made, along with a footnote explanation of each reclassification. December 31, 2017 As previously reported Reclassifications As currently reported Consolidated Statements of Financial Position Line Items (1) (2) (3) (in thousands) Fixed maturities, available-for-sale, at fair value $ 1,261,237 $ 1,261,237 *Fixed maturities, trading, at fair value 0 6,643 6,643 Equity securities, available-for-sale, at fair value 3,414 (3,414 ) 0 *Equity securities, at fair value 0 3,414 7,428 10,842 Trading account assets, at fair value 14,071 (14,071 ) 0 Policy loans 193,244 193,244 Short-term investments 0 0 Commercial mortgage and other loans 121,796 121,796 Other long-term investments 46,803 (46,803 ) 0 *Other invested assets 0 46,803 46,803 Total investments $ 1,640,565 $ 0 $ 0 $ 0 $ 1,640,565 * - New line item effective January 1, 2018. Strikethrough - Eliminated line item effective January 1, 2018. (1) Retitled “Equity securities, available-for-sale, at fair value” to “Equity securities, at fair value” as equity securities can no longer be described as available-for-sale. (2) Eliminated the line item “Trading account assets, at fair value” and reclassified each component to another line item. (3) Retitled “Other long-term investments” to “Other invested assets”. (2) Cumulative-effect Adjustment Upon Adoption The provisions of ASU 2016-01 require that the Company apply the amendments through a cumulative-effect adjustment to the Consolidated Statements of Financial Position as of the beginning of the fiscal year of adoption. The following table illustrates the impact on the Company’s Consolidated Statement of Financial Position as a result of recording this cumulative-effect adjustment on January 1, 2018. Summary of ASU 2016-01 Transition Impacts on the Consolidated Statement of Financial Position upon Adoption on January 1, 2018 (in thousands) Increase / (Decrease) Other invested assets $ 250 Total assets $ 250 Income taxes $ 53 Total liabilities 53 Accumulated other comprehensive income (loss) (175 ) Retained earnings 372 Total equity 197 Total liabilities and equity $ 250 (3) Changes to Accounting Policies This section summarizes the changes in our accounting policies resulting from the adoption of ASU 2016-01 as well as an update to the components of the financial statement line items impacted by the Company’s Consolidated Statements of Financial Position presentation changes described above. Other ASU adopted during the nine months ended September 30, 2018 . Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2014-09 , The ASU is based on the core principle that revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The standard also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, and assets recognized from the costs to obtain or fulfill a contract with a customer. Revenue recognition for insurance contracts and financial instruments is explicitly scoped out of the standard. January 1, 2018 using the modified retrospective method which Adoption of the ASU did not have an impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. ASU 2016-15 , This ASU addresses diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The standard provides clarity on the treatment of eight specifically defined types of cash inflows and outflows. January 1, 2018 using the retrospective method (with early adoption permitted provided that all amendments are adopted in the same period). Adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. ASU 2016-18 , Statement of Cash Flows (Topic 230): Restricted Cash In November 2016, the FASB issued this ASU to address diversity in practice from entities classifying and presenting transfers between cash and restricted cash as operating, investing, or financing activities, or as a combination of those activities in the Statement of Cash Flows. The ASU requires entities to show the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the Statement of Cash Flows. As a result, transfers between such categories will no longer be presented in the Statement of Cash Flows. January 1, 2018 using the retrospective method (with early adoption permitted). Adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. ASU 2018-02 , Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, this ASU was issued following the enactment of the Tax Act of 2017. This ASU allows an entity to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded effects resulting from the Tax Act of 2017. January 1, 2019 with early adoption permitted. The ASU should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act of 2017 is recognized. The Company early adopted the ASU effective January 1, 2018 and elected to apply the ASU in the period of adoption subsequent to recording the adoption impacts of ASU 2016-01 as described above. As a result, the Company reclassified stranded effects resulting from the Tax Act of 2017 by increasing accumulated other comprehensive income and decreasing retained earnings, each by $5.9 million. Stranded effects unrelated to the Tax Act of 2017 are generally released from accumulated other comprehensive income when an entire portfolio of the type of item related to the stranded effect is liquidated, sold or extinguished (i.e., portfolio approach). |
Future Adoption Of New Accounting Pronouncements | ASU issued but not yet adopted as of September 30, 2018 — ASU 2018-12 ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, was issued by the FASB on August 15, 2018 and is expected to have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. The ASU is effective January 1, 2021 (with early adoption permitted), and will impact, at least to some extent, the accounting and disclosure requirements for all long-duration insurance and investment contracts issued by the Company. Outlined below are four key areas of change, although there are other less significant changes not noted below. In addition to the impacts to the balance sheet upon adoption, the Company also expects an impact to how earnings emerge thereafter. ASU 2018-12 Amended Topic Description Method of adoption Effect on the financial statements or other significant matters Cash flow assumptions used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products Requires an entity to review, and if necessary, update the cash flow assumptions used to measure the liability for future policy benefits, for both changes in future assumptions and actual experience, at least annually using a retrospective update method with a cumulative catch-up adjustment recorded in a separate line item in the Consolidated Statements of Operations. An entity may choose one of two adoption methods for the liability for future policy benefits: (1) a modified retrospective transition method whereby the entity will apply the amendments to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or (2) a full retrospective transition method. The options for method of adoption and the impacts of such methods are under assessment. Discount rate assumption used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products Requires discount rate assumptions to be based on an upper-medium grade fixed income instrument yield and will be required to be updated each quarter with the impact recorded through Other Comprehensive Income ("OCI"). As noted above, an entity may choose either a modified retrospective transition method or full retrospective transition method for the liability for future policy benefits. Under either method, for balance sheet remeasurement purposes, the liability for future policy benefits will be remeasured using current discount rates as of the beginning of the earliest period presented with the impact recorded as a cumulative effect adjustment to AOCI. Upon adoption, under either transition method, there will be an adjustment to AOCI as a result of remeasuring in force contract liabilities using current upper-medium grade fixed income instrument yields. The adjustment upon adoption will largely reflect the difference between the discount rate locked-in at contract inception versus current discount rates at transition. The magnitude of such adjustment is currently being assessed. Amortization of deferred acquisition costs ("DAC") and other balances Requires DAC and other balances, such as unearned revenue reserves and deferred sales inducements, to be amortized on a constant level basis over the expected term of the related contract, independent of expected profitability. An entity may apply one of two adoption methods: (1) a modified retrospective transition method whereby the entity will apply the amendments to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or (2) if an entity chooses a full retrospective transition method for its future policy benefits, as described above, it is required to also use a retrospective transition method for DAC and other balances. The options for method of adoption and the impacts of such methods are under assessment. Under the modified retrospective transition method, the Company would not expect a significant impact to the balance sheet, other than the impact of the removal of any related amounts in AOCI. Market Risk Benefits Requires an entity to measure all market risk benefits (e.g., living benefit and death benefit guarantees associated with variable annuities) at fair value with changes in value attributable to changes in an entity’s non-performance risk ("NPR") to be recognized in OCI. An entity will apply a retrospective transition method which will include a cumulative-effect adjustment on the balance sheet as of the earliest period presented. Upon adoption, the Company expects an impact to retained earnings for the difference between the fair value and carrying value of benefits not currently measured at fair value (e.g., guaranteed minimum death benefits on variable annuities) and an impact from reclassifying the cumulative effect of changes in NPR from retained earnings to AOCI. The magnitude of such adjustments is currently being assessed. Other ASU issued but not yet adopted as of September 30, 2018 Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2016-13 , This ASU provides a new current expected credit loss model to account for credit losses on certain financial assets and off-balance sheet exposures (e.g., loans held for investment, debt securities held to maturity, reinsurance receivables, net investments in leases and loan commitments). The model requires an entity to estimate lifetime credit losses related to such financial assets and exposures based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The standard also modifies the current other-than-temporary impairment standard for available-for-sale debt securities to require the use of an allowance rather than a direct write down of the investment, and replaces existing standard for purchased credit deteriorated loans and debt securities. January 1, 2020 using the modified retrospective method which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. However, prospective application is required for purchased credit deteriorated assets previously accounted for under ASU 310-30 and for debt securities for which an other-than-temporary-impairment was recognized prior to the date of adoption. Early adoption is permitted beginning January 1, 2019. The Company is currently assessing the impact of the ASU on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization on Purchased Callable Debt Securities This ASU requires certain premiums on callable debt securities to be amortized to the earliest call date. January 1, 2019 using the modified retrospective method (with early adoption permitted) which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. The Company does not expect the adoption of the ASU to have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2017-12 , Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities This ASU makes targeted changes to the existing hedge accounting model to better portray the economics of an entity’s risk management activities and to simplify the use of hedge accounting. January 1, 2019 using the modified retrospective method (with early adoption permitted) which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. The Company does not expect the adoption of the ASU to have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. |
Significant Accounting Polici_3
Significant Accounting Policies and Pronouncements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Adoption of ASU 2016-01 | The following table illustrates the impact on the Company’s Consolidated Statement of Financial Position as a result of recording this cumulative-effect adjustment on January 1, 2018. Summary of ASU 2016-01 Transition Impacts on the Consolidated Statement of Financial Position upon Adoption on January 1, 2018 (in thousands) Increase / (Decrease) Other invested assets $ 250 Total assets $ 250 Income taxes $ 53 Total liabilities 53 Accumulated other comprehensive income (loss) (175 ) Retained earnings 372 Total equity 197 Total liabilities and equity $ 250 The table below illustrates these changes by presenting the balances as previously reported in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 and the reclassifications that were made, along with a footnote explanation of each reclassification. December 31, 2017 As previously reported Reclassifications As currently reported Consolidated Statements of Financial Position Line Items (1) (2) (3) (in thousands) Fixed maturities, available-for-sale, at fair value $ 1,261,237 $ 1,261,237 *Fixed maturities, trading, at fair value 0 6,643 6,643 Equity securities, available-for-sale, at fair value 3,414 (3,414 ) 0 *Equity securities, at fair value 0 3,414 7,428 10,842 Trading account assets, at fair value 14,071 (14,071 ) 0 Policy loans 193,244 193,244 Short-term investments 0 0 Commercial mortgage and other loans 121,796 121,796 Other long-term investments 46,803 (46,803 ) 0 *Other invested assets 0 46,803 46,803 Total investments $ 1,640,565 $ 0 $ 0 $ 0 $ 1,640,565 * - New line item effective January 1, 2018. Strikethrough - Eliminated line item effective January 1, 2018. (1) Retitled “Equity securities, available-for-sale, at fair value” to “Equity securities, at fair value” as equity securities can no longer be described as available-for-sale. (2) Eliminated the line item “Trading account assets, at fair value” and reclassified each component to another line item. (3) Retitled “Other long-term investments” to “Other invested assets”. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments [Abstract] | |
Fixed Maturities, Available-for-sale Securities | The following tables set forth information relating to fixed maturity securities (excluding investments classified as trading), as of the dates indicated: September 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI(3) (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 15,487 $ 792 $ 0 $ 16,279 $ 0 Obligations of U.S. states and their political subdivisions 121,075 1,455 983 121,547 0 Foreign government bonds 68,406 111 2,724 65,793 0 Public utilities 208,432 3,631 7,489 204,574 0 All other U.S. public corporate securities 350,726 7,886 8,734 349,878 0 All other U.S. private corporate securities 172,037 595 4,635 167,997 0 All other foreign public corporate securities 46,622 726 1,845 45,503 0 All other foreign private corporate securities 138,333 1,376 3,440 136,269 0 Asset-backed securities(1) 22,355 1,119 2 23,472 (42 ) Commercial mortgage-backed securities 132,804 332 4,428 128,708 0 Residential mortgage-backed securities(2) 5,074 518 9 5,583 (71 ) Total fixed maturities, available-for-sale $ 1,281,351 $ 18,541 $ 34,289 $ 1,265,603 $ (113 ) (1) Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, and education loans. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (3) Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $0.3 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date. December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI(3) (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 17,831 $ 1,465 $ 0 $ 19,296 $ 0 Obligations of U.S. states and their political subdivisions 121,208 6,660 0 127,868 0 Foreign government bonds 29,489 377 161 29,705 0 Public utilities 204,343 14,664 409 218,598 0 All other U.S. public corporate securities 331,641 23,732 1,248 354,125 (45 ) All other U.S. private corporate securities 176,411 3,583 609 179,385 0 All other foreign public corporate securities 36,790 1,448 557 37,681 0 All other foreign private corporate securities 131,896 6,175 859 137,212 0 Asset-backed securities(1) 26,539 1,275 0 27,814 (51 ) Commercial mortgage-backed securities 118,818 1,883 1,174 119,527 0 Residential mortgage-backed securities(2) 9,200 826 0 10,026 (85 ) Total fixed maturities, available-for-sale $ 1,204,166 $ 62,088 $ 5,017 $ 1,261,237 $ (181 ) (1) Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (3) Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $0.3 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date. |
Duration Of Gross Unrealized Losses On Fixed Maturity Securities | The following tables set forth the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the dates indicated: September 30, 2018 Less Than Twelve Months Twelve Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in thousands) Fixed maturities, available-for-sale: Obligations of U.S. states and their political subdivisions $ 60,971 $ 983 $ 0 $ 0 $ 60,971 $ 983 Foreign government bonds 50,865 2,092 8,787 632 59,652 2,724 Public utilities 124,613 6,592 11,247 897 135,860 7,489 All other U.S. public corporate securities 148,603 5,201 50,538 3,533 199,141 8,734 All other U.S. private corporate securities 106,891 3,068 29,841 1,567 136,732 4,635 All other foreign public corporate securities 29,437 944 7,161 901 36,598 1,845 All other foreign private corporate securities 72,330 2,569 5,676 871 78,006 3,440 Asset-backed securities 3,050 2 0 0 3,050 2 Commercial mortgage-backed securities 55,224 1,298 44,529 3,130 99,753 4,428 Residential mortgage-backed securities 814 9 0 0 814 9 Total fixed maturities, available-for-sale $ 652,798 $ 22,758 $ 157,779 $ 11,531 $ 810,577 $ 34,289 December 31, 2017 Less Than Twelve Months Twelve Months or More Total Fair Value Gross Fair Value Gross Fair Value Gross (in thousands) Fixed maturities, available-for-sale: Obligations of U.S. states and their political subdivisions $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Foreign government bonds 3,354 42 6,210 119 9,564 161 Public utilities 8,797 263 7,014 146 15,811 409 All other U.S. public corporate securities 12,254 93 43,337 1,155 55,591 1,248 All other U.S. private corporate securities 38,778 377 10,401 232 49,179 609 All other foreign public corporate securities 5,565 27 7,369 530 12,934 557 All other foreign private corporate securities 8,671 148 11,333 711 20,004 859 Asset-backed securities 0 0 0 0 0 0 Commercial mortgage-backed securities 12,774 56 44,627 1,118 57,401 1,174 Residential mortgage-backed securities 0 0 0 0 0 0 Total fixed maturities, available-for-sale $ 90,193 $ 1,006 $ 130,291 $ 4,011 $ 220,484 $ 5,017 |
Investments Classified by Contractual Maturity Date | The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated: September 30, 2018 Amortized Cost Fair Value (in thousands) Fixed maturities, available-for-sale: Due in one year or less $ 20,051 $ 20,355 Due after one year through five years 164,447 160,733 Due after five years through ten years 294,947 287,118 Due after ten years 641,673 639,634 Asset-backed securities 22,355 23,472 Commercial mortgage-backed securities 132,804 128,708 Residential mortgage-backed securities 5,074 5,583 Total fixed maturities, available-for-sale $ 1,281,351 $ 1,265,603 |
Sources of Fixed Maturity Proceeds and Related Investment Gains (Losses) as well as Losses on Impairments | The following table sets forth the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on impairments of fixed maturities, for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 251 $ 7,242 $ 1,816 $ 99,849 Proceeds from maturities/prepayments 25,175 11,653 55,486 77,662 Gross investment gains from sales and maturities 247 (419 ) 193 23 Gross investment losses from sales and maturities (9 ) (51 ) (139 ) (957 ) OTTI recognized in earnings(2) 0 0 0 (80 ) (1) Includes $0.0 million and $0.0 million of non-cash related proceeds due to the timing of trade settlements for the nine months ended September 30, 2018 and 2017 , respectively. (2) Excludes the portion of OTTI recorded in OCI, representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of the impairment. |
Credit Losses Recognized in Earnings on Fixed Maturity Securities Held by the Company for which a Portion of the OTTI Loss was Recognized in OCI | The following table sets forth a rollforward of pre-tax amounts remaining in OCI related to fixed maturity securities with credit loss impairments recognized in earnings, for the periods indicated: Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 (in thousands) Credit loss impairments: Balance, beginning of period $ 177 $ 561 $ 565 $ 563 Increases due to the passage of time on previously recorded credit losses 6 21 9 32 Reductions for securities which matured, paid down, prepaid or were sold during the period (5 ) (404 ) (9 ) (30 ) Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected 0 0 0 0 Assets transferred to parent and affiliates 0 0 0 0 Balance, end of period $ 178 $ 178 $ 565 $ 565 |
Commercial Mortgage and Other Loans | The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: September 30, 2018 December 31, 2017 Amount (in thousands) % of Total Amount (in thousands) % of Total Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 43,769 36.0 % $ 44,405 36.4 % Hospitality 10,058 8.3 10,263 8.4 Industrial 12,342 10.2 10,924 9.0 Office 17,194 14.2 17,738 14.5 Other 19,063 15.7 19,154 15.7 Retail 13,925 11.5 14,180 11.6 Total commercial mortgage loans 116,351 95.9 116,664 95.6 Agricultural property loans 5,037 4.1 5,312 4.4 Total commercial mortgage and agricultural property loans by property type 121,388 100.0 % 121,976 100.0 % Valuation allowance (170 ) (180 ) Total commercial mortgage and other loans $ 121,218 $ 121,796 |
Allowance for Credit Losses | The following tables set forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated: September 30, 2018 Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance for credit losses: Balance, beginning of year $ 179 $ 1 $ 180 Addition to (release of) allowance for losses (10 ) 0 (10 ) Charge-offs, net of recoveries 0 0 0 Total ending balance $ 169 $ 1 $ 170 December 31, 2017 Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance for credit losses: Balance, beginning of year $ 207 $ 2 $ 209 Addition to (release of) allowance for losses (28 ) (1 ) (29 ) Charge-offs, net of recoveries 0 0 0 Total ending balance $ 179 $ 1 $ 180 |
Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans | The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans, as of the dates indicated: September 30, 2018 Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance for credit losses: Individually evaluated for impairment $ 0 $ 0 $ 0 Collectively evaluated for impairment 169 1 170 Total ending balance(1) $ 169 $ 1 $ 170 Recorded investment(2): Individually evaluated for impairment $ 0 $ 0 $ 0 Collectively evaluated for impairment 116,351 5,037 121,388 Total ending balance(1) $ 116,351 $ 5,037 $ 121,388 (1) As of September 30, 2018 , there were no loans acquired with deteriorated credit quality. (2) Recorded investment reflects the carrying value gross of related allowance. December 31, 2017 Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance for credit losses: Individually evaluated for impairment $ 0 $ 0 $ 0 Collectively evaluated for impairment 179 1 180 Total ending balance(1) $ 179 $ 1 $ 180 Recorded investment(2): Individually evaluated for impairment $ 0 $ 0 $ 0 Collectively evaluated for impairment 116,664 5,312 121,976 Total ending balance(1) $ 116,664 $ 5,312 $ 121,976 (1) As of December 31, 2017 , there were no loans acquired with deteriorated credit quality. (2) Recorded investment reflects the carrying value gross of related allowance. |
Financing Receivable Credit Quality Indicators | The following tables set forth certain key credit quality indicators for commercial mortgage and agricultural property loans based upon the recorded investment gross of allowance for credit losses, as of the dates indicated: September 30, 2018 Debt Service Coverage Ratio ≥ 1.2X 1.0X to < 1.2X < 1.0X Total (in thousands) Loan-to-Value Ratio: 0%-59.99% $ 84,036 $ 1,229 $ 0 $ 85,265 60%-69.99% 25,093 7,347 0 32,440 70%-79.99% 2,114 1,569 0 3,683 80% or greater 0 0 0 0 Total loans $ 111,243 $ 10,145 $ 0 $ 121,388 December 31, 2017 Debt Service Coverage Ratio ≥ 1.2X 1.0X to < 1.2X < 1.0X Total (in thousands) Loan-to-Value Ratio: 0%-59.99% $ 83,304 $ 0 $ 0 $ 83,304 60%-69.99% 27,727 3,155 2,009 32,891 70%-79.99% 0 5,781 0 5,781 80% or greater 0 0 0 0 Total loans $ 111,031 $ 8,936 $ 2,009 $ 121,976 |
Aging of Past Due Commercial Mortgage and Other Loans and Nonaccrual Status | The following tables set forth an aging of past due commercial mortgage and other loans, based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated: September 30, 2018 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status(2) (in thousands) Commercial mortgage loans $ 116,351 $ 0 $ 0 $ 0 $ 116,351 $ 0 Agricultural property loans 5,037 0 0 0 5,037 0 Total $ 121,388 $ 0 $ 0 $ 0 $ 121,388 $ 0 (1) As of September 30, 2018 , there were no loans in this category accruing interest. (2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . December 31, 2017 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status(2) (in thousands) Commercial mortgage loans $ 116,664 $ 0 $ 0 $ 0 $ 116,664 $ 0 Agricultural property loans 5,312 0 0 0 5,312 0 Total $ 121,976 $ 0 $ 0 $ 0 $ 121,976 $ 0 (1) As of December 31, 2017 , there were no loans in this category accruing interest. (2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . |
Other Invested Assets | The following table sets forth the composition of “Other invested assets,” as of the dates indicated: September 30, 2018 December 31, 2017 (in thousands) Company’s investment in separate accounts $ 3,140 $ 2,726 LPs/LLCs: Equity method: Private equity 13,011 12,350 Hedge funds 29,088 28,167 Real estate-related 1,065 1,112 Subtotal equity method 43,164 41,629 Fair value: Private equity 1,018 1,141 Hedge funds 107 121 Real estate-related 1,780 1,186 Subtotal fair value(1) 2,905 2,448 Total LPs/LLCs 46,069 44,077 Derivative instruments 6,319 0 Total other invested assets(2) $ 55,528 $ 46,803 (1) As of December 31, 2017 , $2.3 million was accounted for under the cost method. (2) Prior period amounts have been reclassified to conform to current period presentation. For additional information, see Note 2 . |
Net Investment Income | The following table sets forth “Net investment income” by investment type, for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Fixed maturities, available-for-sale $ 13,000 $ 12,343 $ 38,596 $ 35,989 Fixed maturities, trading 80 79 243 227 Equity securities, at fair value 91 91 273 273 Commercial mortgage and other loans 1,211 1,238 3,670 4,846 Policy loans 2,713 2,664 8,121 7,888 Short-term investments and cash equivalents 216 117 366 374 Other invested assets 1,006 410 2,994 2,349 Gross investment income 18,317 16,942 54,263 51,946 Less: investment expenses (1,063 ) (870 ) (2,852 ) (2,760 ) Net investment income(1) $ 17,254 $ 16,072 $ 51,411 $ 49,186 (1) Prior period amounts have been reclassified to conform to current period presentation. |
Realized Investment Gains (Losses), Net | The following table sets forth “Realized investment gains (losses), net,” by investment type, for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Fixed maturities(1) $ 238 $ (470 ) $ 54 $ (1,014 ) Commercial mortgage and other loans 11 30 10 12 LPs/LLCs 0 10 49 11 Derivatives(2) (3,035 ) (3,174 ) (8,726 ) (9,049 ) Short term investments and cash equivalents 0 4 0 (3 ) Realized investment gains (losses), net $ (2,786 ) $ (3,600 ) $ (8,613 ) $ (10,043 ) (1) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading. (2) Includes the hedged items offset in qualifying fair value hedge accounting relationships. |
Unrealized Gains and (Losses) on Investments | The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated: September 30, 2018 December 31, 2017 (in thousands) Fixed maturity securities, available-for-sale—with OTTI $ 145 $ 162 Fixed maturity securities, available-for-sale—all other (15,893 ) 56,909 Equity securities, available-for-sale(1) 0 270 Derivatives designated as cash flow hedges(2) (3,036 ) (5,036 ) Affiliated notes 500 682 Other investments 124 (288 ) Net unrealized gains (losses) on investments $ (18,160 ) $ 52,699 (1) Effective January 1, 2018, unrealized gains (losses) on equity securities are recorded within “Other income (loss).” (2) For more information on cash flow hedges, see Note 4 . |
Repurchase Agreements and Securities Lending | The following table sets forth the composition of “Cash collateral for loaned securities,” which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated: September 30, 2018 December 31, 2017 Remaining Contractual Maturities of the Agreements Remaining Contractual Maturities of the Agreements Overnight & Continuous Up to 30 Days Total Overnight & Continuous Up to 30 Days Total (in thousands) U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 0 $ 0 $ 0 $ 10,310 $ 10,310 Foreign government bonds 0 0 0 4,420 0 4,420 U.S. public corporate securities 977 0 977 0 0 0 Foreign public corporate securities 0 0 0 478 0 478 Total cash collateral for loaned securities(1) $ 977 $ 0 $ 977 $ 4,898 $ 10,310 $ 15,208 (1) The Company did no t have any agreements with remaining contractual maturities of thirty days or greater, as of the dates indicated. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The table below provides a summary of the gross notional amount and fair value of derivative contracts by the primary underlying risks, excluding embedded derivatives and associated reinsurance recoverables. Many derivative instruments contain multiple underlying risks. The fair value amounts below represent the gross fair value of derivative contracts prior to taking into account the netting effects of master netting agreements, cash collateral, and NPR. September 30, 2018 December 31, 2017 Notional Gross Fair Value Notional Gross Fair Value Primary Underlying Risk/Instrument Type Assets Liabilities Assets Liabilities (in thousands) Derivatives Designated as Hedge Accounting Instruments: Currency/Interest Rate Foreign Currency Swaps $ 119,888 $ 2,116 $ (5,908 ) $ 110,240 $ 1,320 $ (6,869 ) Total Qualifying Hedges $ 119,888 $ 2,116 $ (5,908 ) $ 110,240 $ 1,320 $ (6,869 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 59,075 $ 1,357 $ 0 $ 59,075 $ 3,766 $ 0 Credit Credit Default Swaps 756 0 (18 ) 1,594 0 (96 ) Currency/Interest Rate Foreign Currency Swaps 16,815 1,823 (364 ) 22,237 1,748 (674 ) Foreign Currency Foreign Currency Forwards 1,141 8 0 1,888 0 (52 ) Equity Equity Options 231,549 10,682 (3,094 ) 152,800 8,125 (2,813 ) Total Non-Qualifying Hedges $ 309,336 $ 13,870 $ (3,476 ) $ 237,594 $ 13,639 $ (3,635 ) Total Derivatives(1) $ 429,224 $ 15,986 $ (9,384 ) $ 347,834 $ 14,959 $ (10,504 ) (1) Excludes embedded derivatives and associated reinsurance recoverables which contain multiple underlying risks. |
Offsetting of Financial Assets | The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position. September 30, 2018 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Consolidated Statements of Financial Position Net Amounts Presented in the Consolidated Statements of Financial Position Financial Instruments/ Collateral(1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives (1) $ 15,986 $ (9,667 ) $ 6,319 $ (5,961 ) $ 358 Securities purchased under agreements to resell 27,000 0 27,000 (27,000 ) 0 Total Assets $ 42,986 $ (9,667 ) $ 33,319 $ (32,961 ) $ 358 Offsetting of Financial Liabilities: Derivatives (1) $ 9,384 $ (9,384 ) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 9,384 $ (9,384 ) $ 0 $ 0 $ 0 December 31, 2017 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Consolidated Statements of Financial Position Net Amounts Presented in the Consolidated Statements of Financial Position Financial Instruments/ Collateral(1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives (1) $ 14,959 $ (14,959 ) $ 0 $ 0 $ 0 Securities purchased under agreements to resell 43,000 0 43,000 (43,000 ) 0 Total Assets $ 57,959 $ (14,959 ) $ 43,000 $ (43,000 ) $ 0 Offsetting of Financial Liabilities: Derivatives (1) $ 10,504 $ (9,941 ) $ 563 $ 0 $ 563 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 10,504 $ (9,941 ) $ 563 $ 0 $ 563 (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. |
Offsetting of Financial Liabilities | The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position. September 30, 2018 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Consolidated Statements of Financial Position Net Amounts Presented in the Consolidated Statements of Financial Position Financial Instruments/ Collateral(1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives (1) $ 15,986 $ (9,667 ) $ 6,319 $ (5,961 ) $ 358 Securities purchased under agreements to resell 27,000 0 27,000 (27,000 ) 0 Total Assets $ 42,986 $ (9,667 ) $ 33,319 $ (32,961 ) $ 358 Offsetting of Financial Liabilities: Derivatives (1) $ 9,384 $ (9,384 ) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 9,384 $ (9,384 ) $ 0 $ 0 $ 0 December 31, 2017 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Consolidated Statements of Financial Position Net Amounts Presented in the Consolidated Statements of Financial Position Financial Instruments/ Collateral(1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives (1) $ 14,959 $ (14,959 ) $ 0 $ 0 $ 0 Securities purchased under agreements to resell 43,000 0 43,000 (43,000 ) 0 Total Assets $ 57,959 $ (14,959 ) $ 43,000 $ (43,000 ) $ 0 Offsetting of Financial Liabilities: Derivatives (1) $ 10,504 $ (9,941 ) $ 563 $ 0 $ 563 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 10,504 $ (9,941 ) $ 563 $ 0 $ 563 (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship. Three Months Ended September 30, 2018 Realized Investment Gains (Losses) Net Investment Income Other Income AOCI (1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 0 $ 347 $ 147 $ 395 Total cash flow hedges 0 347 147 395 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (282 ) 0 0 0 Currency 13 0 0 0 Currency/Interest Rate 185 0 3 0 Credit 0 0 0 0 Equity 2,615 0 0 0 Embedded Derivatives (5,566 ) 0 0 0 Total non-qualifying hedges (3,035 ) 0 3 0 Total $ (3,035 ) $ 347 $ 150 $ 395 Nine Months Ended September 30, 2018 Realized Net Investment Income Other Income AOCI (1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 0 $ 993 $ 389 $ 2,000 Total cash flow hedges 0 993 389 2,000 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (1,420 ) 0 0 0 Currency 65 0 0 0 Currency/Interest Rate 349 0 7 0 Credit (2 ) 0 0 0 Equity 2,958 0 0 0 Embedded Derivatives (10,676 ) 0 0 0 Total non-qualifying hedges (8,726 ) 0 7 0 Total $ (8,726 ) $ 993 $ 396 $ 2,000 Three Months Ended September 30, 2017 Realized Net Investment Income Other Income AOCI (1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 0 $ 259 $ (356 ) $ (3,756 ) Total cash flow hedges 0 259 (356 ) (3,756 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 40 0 0 0 Currency (49 ) 0 0 0 Currency/Interest Rate (546 ) 0 (6 ) 0 Credit (7 ) 0 0 0 Equity 828 0 0 0 Embedded Derivatives (3,440 ) 0 0 0 Total non-qualifying hedges (3,174 ) 0 (6 ) 0 Total $ (3,174 ) $ 259 $ (362 ) $ (3,756 ) Nine Months Ended September 30, 2017 Realized Net Investment Income Other Income AOCI (1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 0 $ 515 $ (777 ) $ (6,727 ) Total cash flow hedges 0 515 (777 ) (6,727 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 471 0 0 0 Currency (92 ) 0 0 0 Currency/Interest Rate (1,042 ) 0 (15 ) 0 Credit (44 ) 0 0 0 Equity 2,074 0 0 0 Embedded Derivatives (10,416 ) 0 0 0 Total non-qualifying hedges (9,049 ) 0 (15 ) 0 Total $ (9,049 ) $ 515 $ (792 ) $ (6,727 ) (1) Amounts deferred in AOCI. |
Schedule of Derivative Instruments Recognized in Accumulated Other Comprehensive Income (Loss) Before Taxes | Presented below is a rollforward of current period cash flow hedges in AOCI before taxes: (in thousands) Balance, December 31, 2017 $ (5,036 ) Net deferred gains (losses) on cash flow hedges from January 1 to September 30, 2018 2,944 Amount reclassified into current period earnings (944 ) Balance, September 30, 2018 $ (3,036 ) |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis | The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated. As of September 30, 2018 Level 1 Level 2 Level 3 Netting(1) Total (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 16,279 $ 0 $ 0 $ 16,279 Obligations of U.S. states and their political subdivisions 0 121,547 0 0 121,547 Foreign government bonds 0 65,793 0 0 65,793 U.S. corporate public securities 0 484,380 0 0 484,380 U.S. corporate private securities 0 223,986 2,223 0 226,209 Foreign corporate public securities 0 45,503 0 0 45,503 Foreign corporate private securities 0 147,289 840 0 148,129 Asset-backed securities (2) 0 23,472 0 0 23,472 Commercial mortgage-backed securities 0 118,947 9,761 0 128,708 Residential mortgage-backed securities 0 5,583 0 0 5,583 Subtotal 0 1,252,779 12,824 0 1,265,603 Fixed maturities, trading 0 6,227 0 0 6,227 Equity securities 0 5,151 6,813 0 11,964 Other invested assets(3) 0 15,986 0 (9,667 ) 6,319 Reinsurance recoverables 0 0 242,084 0 242,084 Receivables from parent and affiliates 0 8,922 0 0 8,922 Subtotal excluding separate account assets 0 1,289,065 261,721 (9,667 ) 1,541,119 Separate account assets(4)(5) 0 12,732,557 0 0 12,732,557 Total assets $ 0 $ 14,021,622 $ 261,721 $ (9,667 ) $ 14,273,676 Future policy benefits(6) $ 0 $ 0 $ 242,084 $ 0 $ 242,084 Policyholders' account balances 0 0 8,069 0 8,069 Payables to parent and affiliates 0 9,384 0 (9,384 ) 0 Total liabilities $ 0 $ 9,384 $ 250,153 $ (9,384 ) $ 250,153 As of December 31, 2017 Level 1 Level 2 Level 3 Netting(1) Total (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 19,296 $ 0 $ 0 $ 19,296 Obligations of U.S. states and their political subdivisions 0 127,868 0 0 127,868 Foreign government bonds 0 29,705 0 0 29,705 U.S. corporate public securities 0 497,522 0 0 497,522 U.S. corporate private securities 0 228,219 13,871 0 242,090 Foreign corporate public securities 0 37,681 0 0 37,681 Foreign corporate private securities 0 149,063 645 0 149,708 Asset-backed securities(2) 0 16,239 11,575 0 27,814 Commercial mortgage-backed securities 0 119,527 0 0 119,527 Residential mortgage-backed securities 0 10,026 0 0 10,026 Subtotal 0 1,235,146 26,091 0 1,261,237 Fixed maturities, trading(7) 0 6,643 0 0 6,643 Equity securities(7) 0 3,414 7,428 0 10,842 Other invested assets(3)(7) 0 14,959 0 (14,959 ) 0 Reinsurance recoverables 0 0 472,157 0 472,157 Receivables from parent and affiliates 0 9,377 0 0 9,377 Subtotal excluding separate account assets 0 1,269,539 505,676 (14,959 ) 1,760,256 Separate account assets(4)(5) 0 12,454,118 0 0 12,454,118 Total assets $ 0 $ 13,723,657 $ 505,676 $ (14,959 ) $ 14,214,374 Future policy benefits(6) $ 0 $ 0 $ 472,157 $ 0 $ 472,157 Policyholders' account balances 0 0 5,463 0 5,463 Payables to parent and affiliates 0 10,504 0 (9,941 ) 563 Total liabilities $ 0 $ 10,504 $ 477,620 $ (9,941 ) $ 478,183 (1) “Netting” amounts represent cash collateral of $0.3 million and $5.0 million as of September 30, 2018 and December 31, 2017 , respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements. (2) Includes credit tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (3) Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value ("NAV") per share (or its equivalent) as a practical expedient. At September 30, 2018 and December 31, 2017, the fair values of such investments were $2.9 million and $0.7 million , respectively. (4) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Unaudited Interim Consolidated Statements of Financial Position. (5) Separate account assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate, hedge funds and a corporate owned life insurance fund, for which fair value is measured at NAV per share (or its equivalent). As of September 30, 2018 and December 31, 2017, the fair value of such investments was $1,827 million and $1,791 million , respectively. (6) As of September 30, 2018 , the net embedded derivative liability position of $242 million includes $105 million of embedded derivatives in an asset position and $347 million of embedded derivatives in a liability position. As of December 31, 2017 , the net embedded derivative liability position of $472 million includes $77 million of embedded derivatives in an asset position and $549 million of embedded derivatives in a liability position. (7) Prior period amounts have been reclassified to conform to current period presentation. See Note 2 for details. |
Fair Value Inputs, Assets and Liabilities, Quantitative Information | The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities. As of September 30, 2018 Fair Value Valuation Techniques Unobservable Inputs Minimum Maximum Weighted Average Impact of Increase in Input on Fair Value(1) (in thousands) Assets: Corporate securities(2) $ 3,063 Discounted cash flow Discount rate 7.00 % 13.27 % 8.93 % Decrease Reinsurance recoverables $ 242,084 Fair values are determined in the same manner as future policy benefits Liabilities: Future policy benefits(3) $ 242,084 Discounted cash flow Lapse rate(4) 1 % 13 % Decrease Spread over LIBOR(5) 0.16 % 1.21 % Decrease Utilization rate(6) 50 % 97 % Increase Withdrawal rate See table footnote (7) below Mortality rate (8) 0 % 15 % Decrease Equity volatility curve 14 % 22 % Increase As of December 31, 2017 Fair Value Valuation Unobservable Inputs Minimum Maximum Weighted Average Impact of Increase in Input on Fair Value(1) (in thousands) Assets: Corporate securities(2) $ 14,516 Discounted cash flow Discount rate 5.06 % 22.23 % 7.53 % Decrease Reinsurance recoverables $ 472,157 Fair values are determined in the same manner as future policy benefits Liabilities: Future policy benefits(3) $ 472,157 Discounted cash flow Lapse rate(4) 1 % 12 % Decrease Spread over LIBOR(5) 0.12 % 1.10 % Decrease Utilization rate(6) 52 % 97 % Increase Withdrawal rate See table footnote(7) below. Mortality rate(8) 0 % 14 % Decrease Equity volatility curve 13 % 24 % Increase (1) Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table. (2) Includes assets classified as fixed maturities available-for-sale. (3) Future policy benefits primarily represent general account liabilities for the living benefit features of the Company’s variable annuity contracts which are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (4) Lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. (5) The spread over the London Inter-Bank Offered Rate ("LIBOR") swap curve represents the premium added to the proxy for the risk-free rate (LIBOR) to reflect our estimates of rates that a market participant would use to value the living benefit contracts in both the accumulation and payout phases. This spread includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because both funding agreements and living benefit contracts are insurance liabilities and are therefore senior to debt. (6) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits. (7) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of September 30, 2018 and December 31, 2017 , the minimum withdrawal rate assumption is 78% and the maximum withdrawal rate assumption may be greater than 100% . The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%. (8) Range reflects the mortality rate for the vast majority of business with living benefits, with policyholders ranging from 50 to 90 years old. While the majority of living benefits have a minimum age requirement, certain benefits do not have an age restriction. This results in contractholders for certain benefits with mortality rates approaching 0% . Based on historical experience, the Company applies a set of age and duration specific mortality rate adjustments compared to standard industry tables. A mortality improvement assumption is also incorporated into the overall mortality table. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. All transfers are generally reported at the value as of the beginning of the quarter in which transfers occur for any such assets still held at the end of the quarter. During the second quarter of, 2018, $5 million of investments in collateralized loan obligations (“CLOs”) reported as “Asset-backed securities” were transferred from Level 3 to Level 2 as market activity, liquidity and overall observability of valuation inputs of CLOs have increased. For further information on valuation processes, see Note 9 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 . Three Months Ended September 30, 2018 Fixed Maturities Available-for-Sale Corporate Securities(1) Structured Securities(2) Equity Securities (in thousands) Fair Value, beginning of period $ 10,007 $ 2,292 $ 6,966 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 257 (6 ) 0 Asset administration fees and other income 0 0 (153 ) Included in other comprehensive income (loss) (2,009 ) (29 ) 0 Net investment income 58 (1 ) 0 Purchases 87 9,606 0 Sales 0 0 0 Issuances 0 0 0 Settlements (5,337 ) (2,101 ) 0 Transfers into Level 3(4) 0 0 0 Transfers out of Level 3(4) 0 0 0 Other 0 0 0 Fair Value, end of period $ 3,063 $ 9,761 $ 6,813 Unrealized gains (losses) for assets still held(5): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 Asset administration fees and other income $ 0 $ 0 $ (153 ) Three Months Ended September 30, 2018 Reinsurance Recoverables Receivables from Future Policy Benefits Policyholders' Account Balances (in thousands) Fair Value, beginning of period $ 336,084 $ 0 $ (336,084 ) $ (5,627 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net(6) (115,916 ) 0 115,916 (2,785 ) Asset administration fees and other income 0 0 0 0 Included in other comprehensive income (loss) 0 0 0 0 Net investment income 0 0 0 0 Purchases 21,916 0 0 0 Sales 0 0 0 0 Issuances 0 0 (21,916 ) 0 Settlements 0 0 0 343 Transfers into Level 3(4) 0 0 0 0 Transfers out of Level 3(4) 0 0 0 0 Other 0 0 0 0 Fair Value, end of period $ 242,084 $ 0 $ (242,084 ) $ (8,069 ) Unrealized gains (losses) for assets/liabilities still held(5): Included in earnings: Realized investment gains (losses), net $ (113,221 ) $ 0 $ 113,221 $ (2,785 ) Asset administration fees and other income $ 0 $ 0 $ 0 $ 0 Nine Months Ended September 30, 2018 Fixed Maturities Available-for-Sale Corporate Securities(1) Structured Securities(2) Equity Securities (in thousands) Fair Value, beginning of period $ 14,516 $ 11,575 $ 7,428 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 133 15 0 Asset administration fees and other income 0 0 (615 ) Included in other comprehensive income (loss) (2,645 ) (59 ) 0 Net investment income 134 5 0 Purchases 233 9,797 0 Sales (45 ) (196 ) 0 Issuances 0 0 0 Settlements (9,263 ) (2,682 ) 0 Transfers into Level 3(4) 0 196 0 Transfers out of Level 3(4) 0 (8,890 ) 0 Other 0 0 0 Fair Value, end of period $ 3,063 $ 9,761 $ 6,813 Unrealized gains (losses) for assets still held(5): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 Asset administration fees and other income $ 0 $ 0 $ (615 ) Nine Months Ended September 30, 2018 Reinsurance Recoverables Receivables from Future Policy Benefits Policyholders' Account Balances (in thousands) Fair Value, beginning of period $ 472,157 $ 0 $ (472,157 ) $ (5,463 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net(6) (294,969 ) 0 294,969 (3,111 ) Asset administration fees and other income 0 0 0 0 Included in other comprehensive income (loss) 0 (18 ) 0 0 Net investment income 0 0 0 0 Purchases 64,896 0 0 0 Sales 0 0 0 0 Issuances 0 0 (64,896 ) 0 Settlements 0 0 0 505 Transfers into Level 3(4) 0 6,047 0 0 Transfers out of Level 3(4) 0 (6,029 ) 0 0 Other 0 0 0 0 Fair Value, end of period $ 242,084 $ 0 $ (242,084 ) $ (8,069 ) Unrealized gains (losses) for assets/liabilities still held(5): Included in earnings: Realized investment gains (losses), net $ (283,085 ) $ 0 $ 283,085 $ (3,111 ) Asset administration fees and other income $ 0 $ 0 $ 0 $ 0 Three Months Ended September 30, 2017 Fixed Maturities Available-For-Sale Corporate Securities(1) Structured Securities(2) Equity Securities(3) (in thousands) Fair Value, beginning of period $ 14,703 $ 8,506 $ 7,264 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net (12 ) 2 0 Asset administration fees and other income 0 0 (28 ) Included in other comprehensive income (loss) (58 ) (11 ) 0 Net investment income 36 2 0 Purchases 7 2,993 0 Sales 0 0 0 Issuances 0 0 0 Settlements (21 ) (865 ) 0 Transfers into Level 3(4) 404 1,507 0 Transfers out of Level 3(4) 0 0 0 Other (10 ) 0 10 Fair Value, end of period $ 15,049 $ 12,134 $ 7,246 Unrealized gains (losses) for assets still held(5): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 Asset administration fees and other income $ 0 $ 0 $ (28 ) Three Months Ended September 30, 2017 Reinsurance Recoverables Receivables from Parent and Affiliates Future Policy Benefits Policyholders' Account Balances (in thousands) Fair Value, beginning of period $ 562,818 $ 0 $ (562,818 ) $ (3,556 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net(6) (128,465 ) 0 128,465 (672 ) Asset administration fees and other income 0 0 0 0 Interest credited to policyholders' account balances 0 0 0 2,291 Included in other comprehensive income (loss) 0 0 0 0 Net investment income 0 0 0 0 Purchases 20,843 0 0 0 Sales 0 0 0 0 Issuances 0 0 (20,843 ) 0 Settlements 0 0 0 (2,280 ) Transfers into Level 3(4) 0 0 0 0 Transfers out of Level 3(4) 0 0 0 0 Other 0 0 0 0 Fair Value, end of period $ 455,196 $ 0 $ (455,196 ) $ (4,217 ) Unrealized gains (losses) for assets/liabilities still held(5): Included in earnings: Realized investment gains (losses), net $ (124,390 ) $ 0 $ 124,390 $ (672 ) Asset administration fees and other income $ 0 $ 0 $ 0 $ 0 Interest credited to policyholders' account balances $ 0 $ 0 $ 0 $ 885 Nine Months Ended September 30, 2017 Fixed Maturities Available-For-Sale Corporate Securities(1) Structured Securities(2) Equity Securities(3) (in thousands) Fair Value, beginning of period $ 15,489 $ 2,328 $ 6,721 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net (74 ) 14 0 Asset administration fees and other income 0 0 515 Included in other comprehensive income (loss) 338 (48 ) 0 Net investment income 101 8 0 Purchases 1,422 2,993 0 Sales (767 ) 0 0 Issuances 0 0 0 Settlements (64 ) (6,816 ) 0 Transfers into Level 3(4) 404 15,153 0 Transfers out of Level 3(4) (1,790 ) (1,498 ) 0 Other (10 ) 0 10 Fair Value, end of period $ 15,049 $ 12,134 $ 7,246 Unrealized gains (losses) for assets still held(5): Included in earnings: Realized investment gains (losses), net $ (62 ) $ 0 $ 0 Asset administration fees and other income $ 0 $ 0 $ 515 Nine Months Ended September 30, 2017 Reinsurance Recoverables Receivables from Parent and Affiliates Future Policy Benefits Policyholders' Account Balances (in thousands) Fair Value, beginning of period $ 434,713 $ 5,993 $ (434,713 ) $ (2,298 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net(6) (40,796 ) 0 40,796 (1,967 ) Asset administration fees and other income 0 0 0 0 Interest credited to policyholders' account balances 0 0 0 2,291 Included in other comprehensive income (loss) 0 0 0 0 Net investment income 0 0 0 0 Purchases 61,279 0 0 0 Sales 0 0 0 0 Issuances 0 0 (61,279 ) 0 Settlements 0 0 0 (2,243 ) Transfers into Level 3(4) 0 0 0 0 Transfers out of Level 3(4) 0 (5,993 ) 0 0 Other 0 0 0 0 Fair Value, end of period $ 455,196 $ 0 $ (455,196 ) $ (4,217 ) Unrealized gains (losses) for assets/liabilities still held(5): Included in earnings: Realized investment gains (losses), net $ (31,015 ) $ 0 $ 31,015 $ (1,967 ) Asset administration fees and other income $ 0 $ 0 $ 0 $ 0 Interest credited to policyholders' account balances $ 0 $ 0 $ 0 $ 2,291 (1) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. Prior period amounts were aggregated to conform to current period presentation. (2) Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities. Prior period amounts were aggregated to conform to current period presentation. (3) Prior period amounts have been reclassified to conform to current period presentation. See Note 2 for details. (4) Transfers into or out of any level are generally reported at the value as of the beginning of the quarter in which the transfers occur for any such assets still held at the end of the quarter. (5) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts. (6) Realized investment gains (losses) on future policy benefits and reinsurance recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. All transfers are generally reported at the value as of the beginning of the quarter in which transfers occur for any such assets still held at the end of the quarter. During the second quarter of, 2018, $5 million of investments in collateralized loan obligations (“CLOs”) reported as “Asset-backed securities” were transferred from Level 3 to Level 2 as market activity, liquidity and overall observability of valuation inputs of CLOs have increased. For further information on valuation processes, see Note 9 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 . Three Months Ended September 30, 2018 Fixed Maturities Available-for-Sale Corporate Securities(1) Structured Securities(2) Equity Securities (in thousands) Fair Value, beginning of period $ 10,007 $ 2,292 $ 6,966 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 257 (6 ) 0 Asset administration fees and other income 0 0 (153 ) Included in other comprehensive income (loss) (2,009 ) (29 ) 0 Net investment income 58 (1 ) 0 Purchases 87 9,606 0 Sales 0 0 0 Issuances 0 0 0 Settlements (5,337 ) (2,101 ) 0 Transfers into Level 3(4) 0 0 0 Transfers out of Level 3(4) 0 0 0 Other 0 0 0 Fair Value, end of period $ 3,063 $ 9,761 $ 6,813 Unrealized gains (losses) for assets still held(5): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 Asset administration fees and other income $ 0 $ 0 $ (153 ) Three Months Ended September 30, 2018 Reinsurance Recoverables Receivables from Future Policy Benefits Policyholders' Account Balances (in thousands) Fair Value, beginning of period $ 336,084 $ 0 $ (336,084 ) $ (5,627 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net(6) (115,916 ) 0 115,916 (2,785 ) Asset administration fees and other income 0 0 0 0 Included in other comprehensive income (loss) 0 0 0 0 Net investment income 0 0 0 0 Purchases 21,916 0 0 0 Sales 0 0 0 0 Issuances 0 0 (21,916 ) 0 Settlements 0 0 0 343 Transfers into Level 3(4) 0 0 0 0 Transfers out of Level 3(4) 0 0 0 0 Other 0 0 0 0 Fair Value, end of period $ 242,084 $ 0 $ (242,084 ) $ (8,069 ) Unrealized gains (losses) for assets/liabilities still held(5): Included in earnings: Realized investment gains (losses), net $ (113,221 ) $ 0 $ 113,221 $ (2,785 ) Asset administration fees and other income $ 0 $ 0 $ 0 $ 0 Nine Months Ended September 30, 2018 Fixed Maturities Available-for-Sale Corporate Securities(1) Structured Securities(2) Equity Securities (in thousands) Fair Value, beginning of period $ 14,516 $ 11,575 $ 7,428 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 133 15 0 Asset administration fees and other income 0 0 (615 ) Included in other comprehensive income (loss) (2,645 ) (59 ) 0 Net investment income 134 5 0 Purchases 233 9,797 0 Sales (45 ) (196 ) 0 Issuances 0 0 0 Settlements (9,263 ) (2,682 ) 0 Transfers into Level 3(4) 0 196 0 Transfers out of Level 3(4) 0 (8,890 ) 0 Other 0 0 0 Fair Value, end of period $ 3,063 $ 9,761 $ 6,813 Unrealized gains (losses) for assets still held(5): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 Asset administration fees and other income $ 0 $ 0 $ (615 ) Nine Months Ended September 30, 2018 Reinsurance Recoverables Receivables from Future Policy Benefits Policyholders' Account Balances (in thousands) Fair Value, beginning of period $ 472,157 $ 0 $ (472,157 ) $ (5,463 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net(6) (294,969 ) 0 294,969 (3,111 ) Asset administration fees and other income 0 0 0 0 Included in other comprehensive income (loss) 0 (18 ) 0 0 Net investment income 0 0 0 0 Purchases 64,896 0 0 0 Sales 0 0 0 0 Issuances 0 0 (64,896 ) 0 Settlements 0 0 0 505 Transfers into Level 3(4) 0 6,047 0 0 Transfers out of Level 3(4) 0 (6,029 ) 0 0 Other 0 0 0 0 Fair Value, end of period $ 242,084 $ 0 $ (242,084 ) $ (8,069 ) Unrealized gains (losses) for assets/liabilities still held(5): Included in earnings: Realized investment gains (losses), net $ (283,085 ) $ 0 $ 283,085 $ (3,111 ) Asset administration fees and other income $ 0 $ 0 $ 0 $ 0 Three Months Ended September 30, 2017 Fixed Maturities Available-For-Sale Corporate Securities(1) Structured Securities(2) Equity Securities(3) (in thousands) Fair Value, beginning of period $ 14,703 $ 8,506 $ 7,264 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net (12 ) 2 0 Asset administration fees and other income 0 0 (28 ) Included in other comprehensive income (loss) (58 ) (11 ) 0 Net investment income 36 2 0 Purchases 7 2,993 0 Sales 0 0 0 Issuances 0 0 0 Settlements (21 ) (865 ) 0 Transfers into Level 3(4) 404 1,507 0 Transfers out of Level 3(4) 0 0 0 Other (10 ) 0 10 Fair Value, end of period $ 15,049 $ 12,134 $ 7,246 Unrealized gains (losses) for assets still held(5): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 Asset administration fees and other income $ 0 $ 0 $ (28 ) Three Months Ended September 30, 2017 Reinsurance Recoverables Receivables from Parent and Affiliates Future Policy Benefits Policyholders' Account Balances (in thousands) Fair Value, beginning of period $ 562,818 $ 0 $ (562,818 ) $ (3,556 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net(6) (128,465 ) 0 128,465 (672 ) Asset administration fees and other income 0 0 0 0 Interest credited to policyholders' account balances 0 0 0 2,291 Included in other comprehensive income (loss) 0 0 0 0 Net investment income 0 0 0 0 Purchases 20,843 0 0 0 Sales 0 0 0 0 Issuances 0 0 (20,843 ) 0 Settlements 0 0 0 (2,280 ) Transfers into Level 3(4) 0 0 0 0 Transfers out of Level 3(4) 0 0 0 0 Other 0 0 0 0 Fair Value, end of period $ 455,196 $ 0 $ (455,196 ) $ (4,217 ) Unrealized gains (losses) for assets/liabilities still held(5): Included in earnings: Realized investment gains (losses), net $ (124,390 ) $ 0 $ 124,390 $ (672 ) Asset administration fees and other income $ 0 $ 0 $ 0 $ 0 Interest credited to policyholders' account balances $ 0 $ 0 $ 0 $ 885 Nine Months Ended September 30, 2017 Fixed Maturities Available-For-Sale Corporate Securities(1) Structured Securities(2) Equity Securities(3) (in thousands) Fair Value, beginning of period $ 15,489 $ 2,328 $ 6,721 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net (74 ) 14 0 Asset administration fees and other income 0 0 515 Included in other comprehensive income (loss) 338 (48 ) 0 Net investment income 101 8 0 Purchases 1,422 2,993 0 Sales (767 ) 0 0 Issuances 0 0 0 Settlements (64 ) (6,816 ) 0 Transfers into Level 3(4) 404 15,153 0 Transfers out of Level 3(4) (1,790 ) (1,498 ) 0 Other (10 ) 0 10 Fair Value, end of period $ 15,049 $ 12,134 $ 7,246 Unrealized gains (losses) for assets still held(5): Included in earnings: Realized investment gains (losses), net $ (62 ) $ 0 $ 0 Asset administration fees and other income $ 0 $ 0 $ 515 Nine Months Ended September 30, 2017 Reinsurance Recoverables Receivables from Parent and Affiliates Future Policy Benefits Policyholders' Account Balances (in thousands) Fair Value, beginning of period $ 434,713 $ 5,993 $ (434,713 ) $ (2,298 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net(6) (40,796 ) 0 40,796 (1,967 ) Asset administration fees and other income 0 0 0 0 Interest credited to policyholders' account balances 0 0 0 2,291 Included in other comprehensive income (loss) 0 0 0 0 Net investment income 0 0 0 0 Purchases 61,279 0 0 0 Sales 0 0 0 0 Issuances 0 0 (61,279 ) 0 Settlements 0 0 0 (2,243 ) Transfers into Level 3(4) 0 0 0 0 Transfers out of Level 3(4) 0 (5,993 ) 0 0 Other 0 0 0 0 Fair Value, end of period $ 455,196 $ 0 $ (455,196 ) $ (4,217 ) Unrealized gains (losses) for assets/liabilities still held(5): Included in earnings: Realized investment gains (losses), net $ (31,015 ) $ 0 $ 31,015 $ (1,967 ) Asset administration fees and other income $ 0 $ 0 $ 0 $ 0 Interest credited to policyholders' account balances $ 0 $ 0 $ 0 $ 2,291 (1) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. Prior period amounts were aggregated to conform to current period presentation. (2) Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities. Prior period amounts were aggregated to conform to current period presentation. (3) Prior period amounts have been reclassified to conform to current period presentation. See Note 2 for details. (4) Transfers into or out of any level are generally reported at the value as of the beginning of the quarter in which the transfers occur for any such assets still held at the end of the quarter. (5) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts. (6) Realized investment gains (losses) on future policy benefits and reinsurance recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts. |
Fair Value Disclosure Financial Instruments Not Carried at Fair Value | The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Unaudited Interim Consolidated Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value. September 30, 2018 (1) Fair Value Carrying Amount(2) Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 120,859 $ 120,859 $ 121,218 Policy loans 0 0 203,384 203,384 203,384 Cash and cash equivalents 4,411 27,000 0 31,411 31,411 Accrued investment income 0 17,710 0 17,710 17,710 Receivables from parent and affiliates 0 35,079 0 35,079 35,079 Other assets 0 5,891 0 5,891 5,891 Total assets $ 4,411 $ 85,680 $ 324,243 $ 414,334 $ 414,693 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 179,909 $ 38,973 $ 218,882 $ 219,964 Cash collateral for loaned securities 0 977 0 977 977 Short-term debt to affiliates 0 1,744 0 1,744 1,744 Payables to parent and affiliates 0 17,945 0 17,945 17,945 Other liabilities 0 45,331 0 45,331 45,331 Total liabilities $ 0 $ 245,906 $ 38,973 $ 284,879 $ 285,961 December 31, 2017(1) Fair Value Carrying Amount(2) Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 125,121 $ 125,121 $ 121,796 Policy loans 0 0 193,244 193,244 193,244 Cash and cash equivalents 1,618 43,000 0 44,618 44,618 Accrued investment income 0 16,580 0 16,580 16,580 Receivables from parent and affiliates 0 33,674 0 33,674 33,674 Other assets 0 5,768 0 5,768 5,768 Total assets $ 1,618 $ 99,022 $ 318,365 $ 419,005 $ 415,680 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 179,246 $ 41,702 $ 220,948 $ 221,407 Cash collateral for loaned securities 0 15,208 0 15,208 15,208 Short-term debt to affiliates 0 0 0 0 0 Payables to parent and affiliates 0 21,673 0 21,673 21,673 Other liabilities 0 39,561 0 39,561 39,561 Total liabilities $ 0 $ 255,688 $ 41,702 $ 297,390 $ 297,849 (1) The information presented as of December 31, 2017 , excludes certain hedge funds, private equity funds and other funds that were accounted for using the cost method and for which the fair value was measured at NAV per share (or its equivalent) as a practical expedient. The fair value and the carrying value of these cost method investments were $2.3 million and $2.6 million , respectively. Due to the adoption of ASU 2016-01 effective January 1, 2018, these assets are carried at fair value at each reporting date with changes in fair value reported in “Other income.” Therefore, as of September 30, 2018 , these assets are excluded from this table but are reported in the fair value recurring measurement table. (2) Carrying values presented herein differ from those in the Company’s Unaudited Interim Consolidated Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or are out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments. |
Reinsurance (Tables)
Reinsurance (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance amounts included in the Statement of Financial Position | Reinsurance amounts included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as of September 30, 2018 and December 31, 2017 were as follows: September 30, 2018 December 31, 2017 (in thousands) Reinsurance recoverables $ 2,399,223 $ 2,480,848 Policy loans (17,256 ) (16,065 ) Deferred policy acquisition costs (740,172 ) (708,740 ) Deferred sales inducements (53,582 ) (58,399 ) Other assets 16,384 19,159 Other liabilities 58,847 56,232 |
Reinsurance recoverables by counterparty | The reinsurance recoverables by counterparty are broken out below: September 30, 2018 December 31, 2017 (in thousands) PAR U $ 889,117 $ 814,408 Prudential Insurance 661,491 859,122 PARCC 475,546 485,809 PAR Term 200,560 188,756 Term Re 143,171 116,869 Pruco Life 16,113 13,671 DART 9,355 0 Unaffiliated 3,870 2,213 Total reinsurance recoverables $ 2,399,223 $ 2,480,848 |
Reinsurance amounts included in the Statements of Operations and Comprehensive Income (Loss) | Reinsurance amounts, included in the Company’s Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and nine months ended September 30, were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 (in thousands) Premiums: Direct $ 58,529 $ 57,376 $ 178,388 $ 172,762 Ceded (55,002 ) (53,950 ) (169,212 ) (163,136 ) Net premiums 3,527 3,426 9,176 9,626 Policy charges and fee income: Direct 90,576 96,618 275,199 314,799 Ceded(1) (87,705 ) (90,789 ) (226,976 ) (285,065 ) Net policy charges and fee income 2,871 5,829 48,223 29,734 Net investment income: Direct 17,418 16,223 51,863 49,633 Ceded (164 ) (151 ) (452 ) (447 ) Net investment income 17,254 16,072 51,411 49,186 Asset administration fees: Direct 9,295 9,936 27,355 28,757 Ceded (7,901 ) (7,564 ) (23,321 ) (21,891 ) Net asset administration fees 1,394 2,372 4,034 6,866 Realized investment gains (losses), net: Direct 115,879 127,633 293,654 39,201 Ceded (118,665 ) (131,233 ) (302,267 ) (49,244 ) Realized investment gains (losses), net (2,786 ) (3,600 ) (8,613 ) (10,043 ) Policyholders’ benefits (including change in reserves): Direct 61,835 69,360 209,306 220,229 Ceded(2) (67,933 ) (72,593 ) (198,245 ) (212,400 ) Net policyholders’ benefits (including change in reserves) (6,098 ) (3,233 ) 11,061 7,829 Interest credited to policyholders’ account balances: Direct 17,975 17,921 51,105 40,079 Ceded (8,830 ) (9,477 ) (24,485 ) (15,668 ) Net interest credited to policyholders’ account balances 9,145 8,444 26,620 24,411 Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization (43,142 ) (54,460 ) (124,588 ) (133,435 ) (1) "Policy charges and fee income ceded" includes $(4) million of unaffiliated activity for both the three and nine months ended September 30, 2018 and 2017 . (2) "Policyholders’ benefits (including change in reserves) ceded" includes $(3) million of unaffiliated activity for both the three months ended September 30, 2018 and 2017 , and $(3) million and $(1) million for the nine months ended September 30, 2018 and 2017 , respectively. |
Gross and net life insurance in force | The gross and net amounts of life insurance face amount in force as of September 30, 2018 and 2017 were as follows: 2018 2017 (in thousands) Direct gross life insurance face amount in force $ 139,873,270 $ 134,814,151 Reinsurance ceded (127,440,273 ) (122,782,744 ) Net life insurance face amount in force $ 12,432,997 $ 12,031,407 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | The balance of and changes in each component of “Accumulated other comprehensive income (loss)” for the nine months ended September 30, 2018 and 2017 , are as follows: Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustments Net Unrealized Investment Gains (Losses)(1) Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, December 31, 2017 $ (42 ) $ 34,372 $ 34,330 Change in OCI before reclassifications (1,162 ) (67,102 ) (68,264 ) Amounts reclassified from AOCI 0 (998 ) (998 ) Income tax benefit (expense) 243 14,301 14,544 Cumulative effect of adoption of ASU 2016-01 0 (175 ) (175 ) Cumulative effect of adoption of ASU 2018-02 (8 ) 5,901 5,893 Balance, September 30, 2018 $ (969 ) $ (13,701 ) $ (14,670 ) Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustments Net Unrealized Investment Gains (Losses)(1) Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, December 31, 2016 $ (70 ) $ 12,231 $ 12,161 Change in OCI before reclassifications 37 22,659 22,696 Amounts reclassified from AOCI 0 1,014 1,014 Income tax benefit (expense) (13 ) (8,286 ) (8,299 ) Balance, September 30, 2017 $ (46 ) $ 27,618 $ 27,572 (1) Includes cash flow hedges of $(3) million and $(5) million as of September 30, 2018 and December 31, 2017 , respectively, and $(2) million and $5 million as of September 30, 2017 and December 31, 2016 , respectively . |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of Accumulated Other Comprehensive Income (Loss) Three Months Ended Nine Months Ended 2018 2017 2018 2017 (in thousands) Amounts reclassified from AOCI (1)(2): Net unrealized investment gains (losses): Cash flow hedges - Currency/ Interest rate(3) $ 554 $ 18 $ 944 $ (275 ) Net unrealized investment gains (losses) on available-for-sale securities(4) 238 (488 ) 54 (739 ) Total net unrealized investment gains (losses) 792 (470 ) 998 (1,014 ) Total reclassifications for the period $ 792 $ (470 ) $ 998 $ (1,014 ) (1) All amounts are shown before tax. (2) Positive amounts indicate gains/ benefits reclassified out of AOCI. Negative amounts indicate losses/ costs reclassified out of AOCI. (3) See Note 4 for additional information on cash flow hedges. (4) See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition costs and other costs, future policy benefits, policyholders’ account balances and other liabilities. |
OTTI Net Unrealized Investment Gain (Loss) AOCI Rollforward | The amounts for the periods indicated below, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains (losses), are as follows: Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities on which an OTTI loss has been recognized Net Unrealized Gains (Losses) on Deferred Policy Acquisition Costs and Other Costs Future Policy Benefits, Policyholders' Account Balances and Other Liabilities Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) (in thousands) Balance, December 31, 2017 $ 162 $ (63 ) $ 109 $ (70 ) $ 138 Net investment gains (losses) on investments arising during the period 6 0 0 (1 ) 5 Reclassification adjustment for (gains) losses included in net income (23 ) 0 0 5 (18 ) Reclassification adjustment for OTTI (gains) losses excluded from net income(1) 0 0 0 0 0 Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 24 0 (5 ) 19 Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities 0 0 (55 ) 12 (43 ) Balance, September 30, 2018 $ 145 $ (39 ) $ 54 $ (59 ) $ 101 (1) Represents "transfers in" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. |
All Other Net Unrealized Investment Gain Loss AOCI Rollforward | All Other Net Unrealized Investment Gains (Losses) in AOCI Net Unrealized Gains (Losses) on Investments(1) Deferred Policy Acquisition Costs and Other Costs Future Policy Benefits, Policyholders' Account Balances and Other Liabilities Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive (in thousands) Balance, December 31, 2017 $ 52,537 $ 35 $ (1,754 ) $ (16,584 ) $ 34,234 Net investment gains (losses) on investments arising during the period (69,597 ) 0 0 14,614 (54,983 ) Reclassification adjustment for (gains) losses included in net income (975 ) 0 0 205 (770 ) Reclassification adjustment for OTTI (gains) losses excluded from net income(2) 0 0 0 0 0 Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 3,434 0 (721 ) 2,713 Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities 0 0 (914 ) 192 (722 ) Cumulative effect of adoption of ASU 2016-01 (270 ) 0 0 95 (175 ) Cumulative effect of adoption of ASU 2018-02 0 0 0 5,901 5,901 Balance, September 30, 2018 $ (18,305 ) $ 3,469 $ (2,668 ) $ 3,702 $ (13,802 ) (1) Includes cash flow hedges. See Note 4 for information on cash flow hedges. (2) Represents "transfers out" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transaction [Line Items] | |
Affiliated Notes Receivable | Affiliated notes receivable included in “Receivables from parent and affiliates” at September 30, 2018 and December 31, 2017 were as follows: Maturity Dates Interest Rates September 30, 2018 December 31, 2017 (in thousands) U.S. dollar floating rate notes 2028 3.74% - 3.83 % $ 6,007 $ 6,047 U.S. dollar fixed rate notes 2026 - 2027 0.00% - 14.85 % 2,915 3,330 Total long-term notes receivable - affiliated(1) $ 8,922 $ 9,377 (1) All long-term notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances. |
Affiliated Asset Transfers | The Company participates in affiliated asset trades with parent and sister companies. Book and market value differences for trades with a parent and sister are recognized within "Additional paid-in capital" (“APIC”) and "Realized investment gains (losses), net", respectively. The table below shows affiliated asset trades for the nine months ended September 30, 2018 and for the year ended December 31, 2017 . Affiliate Date Transaction Security Type Fair Value Book Value APIC, Net of Tax Increase/(Decrease) Realized Investment Gain (Loss), Net of Tax (in thousands) Prudential Insurance June 2017 Sale Fixed Maturities & Short-Term Investments $ 16,965 $ 16,515 $ 293 $ 0 Prudential Insurance June 2017 Sale Commercial Mortgages $ 43,198 $ 42,301 $ 584 $ 0 Gibraltar Universal Life Reinsurance Company May 2018 Purchase Fixed Maturities $ 17,904 $ 17,904 $ 0 $ 0 |
Affiliated Debt Agreement | The following table provides the breakout of the Company's short-term debt to affiliates as of September 30, 2018 and December 31, 2017 . Affiliate Date Issued Amount of Notes - September 30, 2018 Amount of Notes - December 31, 2017 Interest Rate Date of Maturity (in thousands) Prudential Funding, LLC 9/28/2018 $ 1,744 $ 0 0.23 % 10/1/2018 Total Loans Payable to Affiliates $ 1,744 $ 0 |
Business and Basis of Present_2
Business and Basis of Presentation (Narratives) (Details) | 9 Months Ended |
Sep. 30, 2018subsidiary | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of subsidiaries | 1 |
Significant Accounting Polici_4
Significant Accounting Policies and Pronouncements (Changes to the presentation within the Consolidated Statement of Financial Position) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Fixed maturities, available-for-sale | $ 1,265,603 | $ 1,261,237 | ||
Fixed maturities, trading, at fair value | [1] | 6,227 | 6,643 | |
Equity securities, available for sale, at fair value | 0 | |||
Equity securities, at fair value | [1] | 11,964 | 10,842 | |
Trading account assets, at fair value | 0 | |||
Policy loans | 203,384 | 193,244 | ||
Short-term investments | 0 | |||
Commercial mortgage and other loans | 121,218 | 121,796 | ||
Other Long-term Investments | 0 | |||
Other invested assets | [1] | 55,528 | 46,803 | |
Total investments | $ 1,663,924 | 1,640,565 | ||
As Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Fixed maturities, available-for-sale | 1,261,237 | |||
Fixed maturities, trading, at fair value | 0 | |||
Equity securities, available for sale, at fair value | 3,414 | |||
Equity securities, at fair value | 0 | |||
Trading account assets, at fair value | 14,071 | |||
Policy loans | 193,244 | |||
Short-term investments | 0 | |||
Commercial mortgage and other loans | 121,796 | |||
Other Long-term Investments | 46,803 | |||
Other invested assets | 0 | |||
Total investments | 1,640,565 | |||
Reclassification (1) | ASU 2016-01 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Equity securities, available for sale, at fair value | (3,414) | |||
Equity securities, at fair value | 3,414 | |||
Other invested assets | $ 250 | |||
Total investments | 0 | |||
Reclassification (2) | ASU 2016-01 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Fixed maturities, trading, at fair value | 6,643 | |||
Equity securities, at fair value | 7,428 | |||
Trading account assets, at fair value | (14,071) | |||
Total investments | 0 | |||
Reclassification (3) | ASU 2016-01 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other Long-term Investments | (46,803) | |||
Other invested assets | 46,803 | |||
Total investments | $ 0 | |||
[1] | (1) Prior period amounts have been reclassified to conform to current period presentation. See "Adoption of ASU 2016-01" in Note 2 for details. |
Significant Accounting Polici_5
Significant Accounting Policies and Pronouncements (Cumulative-effect Adjustment Upon Adoption) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other invested assets | [1] | $ 55,528 | $ 46,803 | |
Total assets | 18,916,795 | 18,643,600 | ||
Income taxes | 0 | 241 | ||
Total liabilities | 18,479,783 | 18,177,242 | ||
Accumulated other comprehensive income (loss) | (14,670) | 34,330 | ||
Retained earnings | 236,421 | 218,067 | ||
Total liabilities and equity | $ 18,916,795 | $ 18,643,600 | ||
ASU 2016-01 | Restatement Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other invested assets | $ 250 | |||
Total assets | 250 | |||
Income taxes | 53 | |||
Total liabilities | 53 | |||
Accumulated other comprehensive income (loss) | (175) | |||
Retained earnings | 372 | |||
Total equity | 197 | |||
Total liabilities and equity | $ 250 | |||
[1] | (1) Prior period amounts have been reclassified to conform to current period presentation. See "Adoption of ASU 2016-01" in Note 2 for details. |
Significant Accounting Polici_6
Significant Accounting Policies and Pronouncements (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Accumulated other comprehensive income (loss) | $ (14,670) | $ 34,330 |
ASU 2018-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Accumulated other comprehensive income (loss) | 5,900 | |
Retained earnings | $ (5,900) |
Investments (Fixed Maturities S
Investments (Fixed Maturities Securities Excluding Investments Classified as Trading) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,281,351 | $ 1,204,166 |
Fair Value | 1,265,603 | 1,261,237 |
Fixed maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,281,351 | 1,204,166 |
Gross Unrealized Gains | 18,541 | 62,088 |
Gross Unrealized Losses | 34,289 | 5,017 |
Fair Value | 1,265,603 | 1,261,237 |
Fixed maturities | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 15,487 | 17,831 |
Gross Unrealized Gains | 792 | 1,465 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 16,279 | 19,296 |
Fixed maturities | Obligations of U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 121,075 | 121,208 |
Gross Unrealized Gains | 1,455 | 6,660 |
Gross Unrealized Losses | 983 | 0 |
Fair Value | 121,547 | 127,868 |
Fixed maturities | Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 68,406 | 29,489 |
Gross Unrealized Gains | 111 | 377 |
Gross Unrealized Losses | 2,724 | 161 |
Fair Value | 65,793 | 29,705 |
Fixed maturities | Public utilities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 208,432 | 204,343 |
Gross Unrealized Gains | 3,631 | 14,664 |
Gross Unrealized Losses | 7,489 | 409 |
Fair Value | 204,574 | 218,598 |
Fixed maturities | All other U.S. public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 350,726 | 331,641 |
Gross Unrealized Gains | 7,886 | 23,732 |
Gross Unrealized Losses | 8,734 | 1,248 |
Fair Value | 349,878 | 354,125 |
Fixed maturities | All other U.S. private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 172,037 | 176,411 |
Gross Unrealized Gains | 595 | 3,583 |
Gross Unrealized Losses | 4,635 | 609 |
Fair Value | 167,997 | 179,385 |
Fixed maturities | All other foreign public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 46,622 | 36,790 |
Gross Unrealized Gains | 726 | 1,448 |
Gross Unrealized Losses | 1,845 | 557 |
Fair Value | 45,503 | 37,681 |
Fixed maturities | All other foreign private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 138,333 | 131,896 |
Gross Unrealized Gains | 1,376 | 6,175 |
Gross Unrealized Losses | 3,440 | 859 |
Fair Value | 136,269 | 137,212 |
Fixed maturities | Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 22,355 | 26,539 |
Gross Unrealized Gains | 1,119 | 1,275 |
Gross Unrealized Losses | 2 | 0 |
Fair Value | 23,472 | 27,814 |
Fixed maturities | Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 132,804 | 118,818 |
Gross Unrealized Gains | 332 | 1,883 |
Gross Unrealized Losses | 4,428 | 1,174 |
Fair Value | 128,708 | 119,527 |
Fixed maturities | Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5,074 | 9,200 |
Gross Unrealized Gains | 518 | 826 |
Gross Unrealized Losses | 9 | 0 |
Fair Value | 5,583 | 10,026 |
OTTI | Fixed maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Gains | 300 | 300 |
OTTI in AOCI | (113) | (181) |
OTTI | Fixed maturities | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | Obligations of U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | Public utilities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | All other U.S. public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | (45) |
OTTI | Fixed maturities | All other U.S. private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | All other foreign public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | All other foreign private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | (42) | (51) |
OTTI | Fixed maturities | Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | $ (71) | $ (85) |
Investments (Fair Value and Los
Investments (Fair Value and Losses by Investment Category and Length of Time in a Loss Position) (Details) - Fixed maturities - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | $ 652,798 | $ 90,193 |
Less than Twelve Months, Gross Unrealized Losses | 22,758 | 1,006 |
Twelve Months or More, Fair Value | 157,779 | 130,291 |
Twelve Months or More, Gross Unrealized Losses | 11,531 | 4,011 |
Total, Fair Value | 810,577 | 220,484 |
Total, Gross Unrealized Losses | 34,289 | 5,017 |
Obligations of U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 60,971 | 0 |
Less than Twelve Months, Gross Unrealized Losses | 983 | 0 |
Twelve Months or More, Fair Value | 0 | 0 |
Twelve Months or More, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 60,971 | 0 |
Total, Gross Unrealized Losses | 983 | 0 |
Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 50,865 | 3,354 |
Less than Twelve Months, Gross Unrealized Losses | 2,092 | 42 |
Twelve Months or More, Fair Value | 8,787 | 6,210 |
Twelve Months or More, Gross Unrealized Losses | 632 | 119 |
Total, Fair Value | 59,652 | 9,564 |
Total, Gross Unrealized Losses | 2,724 | 161 |
Public utilities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 124,613 | 8,797 |
Less than Twelve Months, Gross Unrealized Losses | 6,592 | 263 |
Twelve Months or More, Fair Value | 11,247 | 7,014 |
Twelve Months or More, Gross Unrealized Losses | 897 | 146 |
Total, Fair Value | 135,860 | 15,811 |
Total, Gross Unrealized Losses | 7,489 | 409 |
All other U.S. public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 148,603 | 12,254 |
Less than Twelve Months, Gross Unrealized Losses | 5,201 | 93 |
Twelve Months or More, Fair Value | 50,538 | 43,337 |
Twelve Months or More, Gross Unrealized Losses | 3,533 | 1,155 |
Total, Fair Value | 199,141 | 55,591 |
Total, Gross Unrealized Losses | 8,734 | 1,248 |
All other U.S. private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 106,891 | 38,778 |
Less than Twelve Months, Gross Unrealized Losses | 3,068 | 377 |
Twelve Months or More, Fair Value | 29,841 | 10,401 |
Twelve Months or More, Gross Unrealized Losses | 1,567 | 232 |
Total, Fair Value | 136,732 | 49,179 |
Total, Gross Unrealized Losses | 4,635 | 609 |
All other foreign public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 29,437 | 5,565 |
Less than Twelve Months, Gross Unrealized Losses | 944 | 27 |
Twelve Months or More, Fair Value | 7,161 | 7,369 |
Twelve Months or More, Gross Unrealized Losses | 901 | 530 |
Total, Fair Value | 36,598 | 12,934 |
Total, Gross Unrealized Losses | 1,845 | 557 |
All other foreign private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 72,330 | 8,671 |
Less than Twelve Months, Gross Unrealized Losses | 2,569 | 148 |
Twelve Months or More, Fair Value | 5,676 | 11,333 |
Twelve Months or More, Gross Unrealized Losses | 871 | 711 |
Total, Fair Value | 78,006 | 20,004 |
Total, Gross Unrealized Losses | 3,440 | 859 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 3,050 | 0 |
Less than Twelve Months, Gross Unrealized Losses | 2 | 0 |
Twelve Months or More, Fair Value | 0 | 0 |
Twelve Months or More, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 3,050 | 0 |
Total, Gross Unrealized Losses | 2 | 0 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 55,224 | 12,774 |
Less than Twelve Months, Gross Unrealized Losses | 1,298 | 56 |
Twelve Months or More, Fair Value | 44,529 | 44,627 |
Twelve Months or More, Gross Unrealized Losses | 3,130 | 1,118 |
Total, Fair Value | 99,753 | 57,401 |
Total, Gross Unrealized Losses | 4,428 | 1,174 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 814 | 0 |
Less than Twelve Months, Gross Unrealized Losses | 9 | 0 |
Twelve Months or More, Fair Value | 0 | 0 |
Twelve Months or More, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 814 | 0 |
Total, Gross Unrealized Losses | $ 9 | $ 0 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 100.00% | 100.00% | 100.00% | ||
Securities sold under agreements to repurchase | $ 0 | $ 0 | $ 0 | ||
Commercial mortgage and other loans, Acquired | 0 | $ 0 | 0 | $ 0 | |
Commercial mortgage and other loans, Sold | 0 | 0 | 0 | 42,000,000 | |
Fixed maturities | |||||
Schedule of Investments [Line Items] | |||||
Gross unrealized losses | 34,289,000 | 34,289,000 | 5,017,000 | ||
Gross unrealized losses of twelve months or more concentrated in various sectors | 11,531,000 | 11,531,000 | 4,011,000 | ||
Fixed maturities | NAIC high or highest quality rating | |||||
Schedule of Investments [Line Items] | |||||
Gross unrealized losses | 30,700,000 | 30,700,000 | 4,200,000 | ||
Fixed maturities | NAIC other than high or highest quality rating | |||||
Schedule of Investments [Line Items] | |||||
Gross unrealized losses | 3,600,000 | 3,600,000 | 800,000 | ||
Corporate securities | |||||
Schedule of Investments [Line Items] | |||||
Gross unrealized losses of twelve months or more concentrated in various sectors | $ 11,500,000 | $ 11,500,000 | $ 4,000,000 | ||
Illinois | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 16.00% | 16.00% | |||
New York | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 14.00% | 14.00% | |||
Texas | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 10.00% | 10.00% | |||
Europe | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 8.00% | 8.00% | |||
Other Income | Equity securities | |||||
Schedule of Investments [Line Items] | |||||
Unrealized Gain (Loss) on Investments | $ (200,000) | $ 0 | $ (900,000) | $ 500,000 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturities) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Due in one year or less | $ 20,051 | |
Due after one year through five years | 164,447 | |
Due after five years through ten years | 294,947 | |
Due after ten years | 641,673 | |
Amortized Cost | 1,281,351 | $ 1,204,166 |
Fair Value | ||
Due in one year or less | 20,355 | |
Due after one year through five years | 160,733 | |
Due after five years through ten years | 287,118 | |
Due after ten years | 639,634 | |
Fair Value | 1,265,603 | $ 1,261,237 |
Asset-backed securities | ||
Amortized Cost | ||
Debt maturities, without single maturity date | 22,355 | |
Fair Value | ||
Debt maturities, without single maturity date | 23,472 | |
Commercial mortgage-backed securities | ||
Amortized Cost | ||
Debt maturities, without single maturity date | 132,804 | |
Fair Value | ||
Debt maturities, without single maturity date | 128,708 | |
Residential mortgage-backed securities | ||
Amortized Cost | ||
Debt maturities, without single maturity date | 5,074 | |
Fair Value | ||
Debt maturities, without single maturity date | $ 5,583 |
Investments (Fixed Maturities_2
Investments (Fixed Maturities Securities Proceeds) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from maturities/prepayments | $ 57,292 | $ 177,511 | ||
Fixed maturities | Available-for-sale | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from sales | $ 251 | $ 7,242 | 1,816 | 99,849 |
Proceeds from maturities/prepayments | 25,175 | 11,653 | 55,486 | 77,662 |
Gross investment gains from sales and maturities | 247 | 419 | 193 | 23 |
Gross investment losses from sales and maturities | (9) | (51) | (139) | (957) |
OTTI recognized in earnings | $ 0 | $ 0 | 0 | (80) |
Non-cash related proceeds from sales | $ 0 | $ 0 |
Investments (Credit Losses Reco
Investments (Credit Losses Recognized In Earnings on Fixed Maturity Securities Held by the Company) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Balance, beginning of period | $ 177 | $ 565 | $ 561 | $ 563 |
Increases due to the passage of time on previously recorded credit losses | 6 | 9 | 21 | 32 |
Reductions for securities which matured, paid down, prepaid or were sold during the period | (5) | (9) | (404) | (30) |
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected | 0 | 0 | 0 | 0 |
Assets transferred to parent and affiliates | 0 | 0 | 0 | 0 |
Balance, end of period | $ 178 | $ 565 | $ 178 | $ 565 |
Investments (Commercial Mortgag
Investments (Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 121,388 | $ 121,976 |
% of Total | 100.00% | 100.00% |
Valuation allowance | $ (170) | $ (180) |
Total commercial mortgage and other loans | 121,218 | 121,796 |
Apartments/Multi-Family | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 43,769 | $ 44,405 |
% of Total | 36.00% | 36.40% |
Hospitality | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 10,058 | $ 10,263 |
% of Total | 8.30% | 8.40% |
Industrial | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 12,342 | $ 10,924 |
% of Total | 10.20% | 9.00% |
Office | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 17,194 | $ 17,738 |
% of Total | 14.20% | 14.50% |
Other | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 19,063 | $ 19,154 |
% of Total | 15.70% | 15.70% |
Retail | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 13,925 | $ 14,180 |
% of Total | 11.50% | 11.60% |
Commercial Mortgage Loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 116,351 | $ 116,664 |
% of Total | 95.90% | 95.60% |
Agricultural property loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 5,037 | $ 5,312 |
% of Total | 4.10% | 4.40% |
Investments (Allowance for Cred
Investments (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | $ 180 | $ 209 |
Addition to (release of) allowance for losses | (10) | (29) |
Charge-offs, net of recoveries | 0 | 0 |
Total ending balance | 170 | 180 |
Commercial Mortgage Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | 179 | 207 |
Addition to (release of) allowance for losses | (10) | (28) |
Charge-offs, net of recoveries | 0 | 0 |
Total ending balance | 169 | 179 |
Agricultural Property Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | 1 | 2 |
Addition to (release of) allowance for losses | 0 | (1) |
Charge-offs, net of recoveries | 0 | 0 |
Total ending balance | $ 1 | $ 1 |
Investments (Allowance for Cr_2
Investments (Allowance for Credit Losses and Recorded Investments in Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Allowance for Credit Losses: | |||
Individually evaluated for impairment | $ 0 | $ 0 | |
Collectively evaluated for impairment | 170 | 180 | |
Total ending balance | 170 | 180 | $ 209 |
Recorded Investment: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 121,388 | 121,976 | |
Total ending balance | 121,388 | 121,976 | |
Commercial Mortgage Loans | |||
Allowance for Credit Losses: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 169 | 179 | |
Total ending balance | 169 | 179 | 207 |
Recorded Investment: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 116,351 | 116,664 | |
Total ending balance | 116,351 | 116,664 | |
Agricultural Property Loans | |||
Allowance for Credit Losses: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 1 | 1 | |
Total ending balance | 1 | 1 | $ 2 |
Recorded Investment: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 5,037 | 5,312 | |
Total ending balance | 5,037 | 5,312 | |
Receivables Acquired with Deteriorated Credit Quality | |||
Recorded Investment: | |||
Financing Receivable Total | $ 0 | $ 0 |
Investments (Credit Quality Ind
Investments (Credit Quality Indicators) (Details) - Commercial Mortgage and Agricultural Loans - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 121,388 | $ 121,976 |
0% to 59.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 85,265 | 83,304 |
60% to 69.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 32,440 | 32,891 |
70% to 79.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 3,683 | 5,781 |
80% or greater | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
≥ 1.2X | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 111,243 | 111,031 |
≥ 1.2X | 0% to 59.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 84,036 | 83,304 |
≥ 1.2X | 60% to 69.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 25,093 | 27,727 |
≥ 1.2X | 70% to 79.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 2,114 | 0 |
≥ 1.2X | 80% or greater | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
1.0X to 1.2X | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 10,145 | 8,936 |
1.0X to 1.2X | 0% to 59.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 1,229 | 0 |
1.0X to 1.2X | 60% to 69.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 7,347 | 3,155 |
1.0X to 1.2X | 70% to 79.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 1,569 | 5,781 |
1.0X to 1.2X | 80% or greater | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Less than 1.0X | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 2,009 |
Less than 1.0X | 0% to 59.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Less than 1.0X | 60% to 69.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 2,009 |
Less than 1.0X | 70% to 79.99% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Less than 1.0X | 80% or greater | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 0 | $ 0 |
Investments (Analysis of Past D
Investments (Analysis of Past Due Commercial Mortgage, Agricultural and Other Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 121,388 | $ 121,976 |
Total Loans | 121,388 | 121,976 |
Non-Accrual Status | 0 | 0 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial mortgage loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 116,351 | 116,664 |
Total Loans | 116,351 | 116,664 |
Non-Accrual Status | 0 | 0 |
Commercial mortgage loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial mortgage loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial mortgage loans | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Agricultural property loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 5,037 | 5,312 |
Total Loans | 5,037 | 5,312 |
Non-Accrual Status | 0 | 0 |
Agricultural property loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Agricultural property loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Agricultural property loans | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Loans | 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 0 | $ 0 |
Investments (Other Invested Ass
Investments (Other Invested Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Other Invested Assets [Line Items] | |||
Other invested assets | [1] | $ 55,528 | $ 46,803 |
LPs/LLCs | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 46,069 | 44,077 | |
Company’s investment in separate accounts | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 3,140 | 2,726 | |
Derivative instruments | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 6,319 | 0 | |
Equity-method | LPs/LLCs | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 43,164 | 41,629 | |
Equity-method | Private equity | LPs/LLCs | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 13,011 | 12,350 | |
Equity-method | Hedge funds | LPs/LLCs | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 29,088 | 28,167 | |
Equity-method | Real estate-related | LPs/LLCs | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 1,065 | 1,112 | |
Cost-method | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 2,300 | ||
Fair Value | LPs/LLCs | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 2,905 | 2,448 | |
Fair Value | Private equity | LPs/LLCs | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 1,018 | 1,141 | |
Fair Value | Hedge funds | LPs/LLCs | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 107 | 121 | |
Fair Value | Real estate-related | LPs/LLCs | |||
Other Invested Assets [Line Items] | |||
Other invested assets | $ 1,780 | $ 1,186 | |
[1] | (1) Prior period amounts have been reclassified to conform to current period presentation. See "Adoption of ASU 2016-01" in Note 2 for details. |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | $ 18,317 | $ 16,942 | $ 54,263 | $ 51,946 |
Less: investment expenses | (1,063) | (870) | (2,852) | (2,760) |
Net investment income | 17,254 | 16,072 | 51,411 | 49,186 |
Equity securities, at fair value | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 91 | 91 | 273 | 273 |
Commercial mortgage and other loans | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 1,211 | 1,238 | 3,670 | 4,846 |
Policy loans | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 2,713 | 2,664 | 8,121 | 7,888 |
Short-term investments and cash equivalents | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 216 | 117 | 366 | 374 |
Other invested assets | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 1,006 | 410 | 2,994 | 2,349 |
Available-for-sale | Fixed maturities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 13,000 | 12,343 | 38,596 | 35,989 |
Trading | Fixed maturities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | $ 80 | $ 79 | $ 243 | $ 227 |
Investments (Realized Investmen
Investments (Realized Investment Gains Losses, Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Gain (Loss) on Securities [Line Items] | ||||
Total realized investment gains (losses), net | $ (2,786) | $ (3,600) | $ (8,613) | $ (10,043) |
Fixed maturities | ||||
Gain (Loss) on Securities [Line Items] | ||||
Total realized investment gains (losses), net | 238 | (470) | 54 | (1,014) |
Commercial mortgage and other loans | ||||
Gain (Loss) on Securities [Line Items] | ||||
Total realized investment gains (losses), net | 11 | 30 | 10 | 12 |
LPs/LLCs | ||||
Gain (Loss) on Securities [Line Items] | ||||
Total realized investment gains (losses), net | 0 | 10 | 49 | 11 |
Derivatives | ||||
Gain (Loss) on Securities [Line Items] | ||||
Total realized investment gains (losses), net | (3,035) | (3,174) | (8,726) | (9,049) |
Short-term investments and cash equivalents | ||||
Gain (Loss) on Securities [Line Items] | ||||
Total realized investment gains (losses), net | $ 0 | $ 4 | $ 0 | $ (3) |
Investments (Net Unrealized Gai
Investments (Net Unrealized Gains Losses on Investments by Asset Class) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | $ (18,160) | $ 52,699 |
Derivatives designated as cash flow hedges | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | (3,036) | (5,036) |
Affiliated notes | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 500 | 682 |
Other investments | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 124 | (288) |
Available-for-sale | Fixed maturities | OTTI | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 145 | 162 |
Available-for-sale | Fixed maturities | All Other | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | (15,893) | 56,909 |
Available-for-sale | Equity securities | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | $ 0 | $ 270 |
Investments (Repurchase Agreeme
Investments (Repurchase Agreement and Securities Lending) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | $ 977 | $ 15,208 |
Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 977 | 4,898 |
Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 10,310 |
Maturity 30 Days or Greater | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 0 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 10,310 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 0 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 10,310 |
Foreign government bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 4,420 |
Foreign government bonds | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 4,420 |
Foreign government bonds | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 0 |
U.S. corporate public securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 977 | 0 |
U.S. corporate public securities | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 977 | 0 |
U.S. corporate public securities | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 0 |
Foreign corporate public securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 478 |
Foreign corporate public securities | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 478 |
Foreign corporate public securities | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | $ 0 | $ 0 |
Derivative Instruments (Gross N
Derivative Instruments (Gross Notional Amount and Fair Value of Derivatives Contracts) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Notional | $ 429,224 | $ 347,834 |
Assets | 15,986 | 14,959 |
Liabilities | (9,384) | (10,504) |
Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 119,888 | 110,240 |
Assets | 2,116 | 1,320 |
Liabilities | (5,908) | (6,869) |
Derivatives Designated as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Notional | 119,888 | 110,240 |
Assets | 2,116 | 1,320 |
Liabilities | (5,908) | (6,869) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 309,336 | 237,594 |
Assets | 13,870 | 13,639 |
Liabilities | (3,476) | (3,635) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional | 59,075 | 59,075 |
Assets | 1,357 | 3,766 |
Liabilities | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Default Swaps | ||
Derivative [Line Items] | ||
Notional | 756 | 1,594 |
Assets | 0 | 0 |
Liabilities | (18) | (96) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Notional | 16,815 | 22,237 |
Assets | 1,823 | 1,748 |
Liabilities | (364) | (674) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Forward | ||
Derivative [Line Items] | ||
Notional | 1,141 | 1,888 |
Assets | 8 | 0 |
Liabilities | 0 | (52) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Options | ||
Derivative [Line Items] | ||
Notional | 231,549 | 152,800 |
Assets | 10,682 | 8,125 |
Liabilities | $ (3,094) | $ (2,813) |
Derivative Instruments (Offsett
Derivative Instruments (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Derivatives Assets | ||
Gross Amounts of Recognized Financial Instruments | $ 15,986 | $ 14,959 |
Gross Amounts Offset in the Consolidated Statements of Financial Position | (9,667) | (14,959) |
Net Amounts Presented in the Consolidated Statements of Financial Position | 6,319 | 0 |
Financial Instruments/ Collateral | (5,961) | 0 |
Net Amount | 358 | 0 |
Securities purchased under agreements to resell | ||
Gross Amounts of Recognized Financial Instruments | 27,000 | 43,000 |
Gross Amounts Offset in the Consolidated Statements of Financial Position | 0 | 0 |
Net Amounts Presented in the Consolidated Statements of Financial Position | 27,000 | 43,000 |
Financial Instruments/ Collateral | (27,000) | (43,000) |
Net Amount | 0 | 0 |
Total Assets | ||
Gross Amounts of Recognized Financial Instruments | 42,986 | 57,959 |
Gross Amounts Offset in the Consolidated Statements of Financial Position | (9,667) | (14,959) |
Net Amounts Presented in the Consolidated Statements of Financial Position | 33,319 | 43,000 |
Financial Instruments/ Collateral | (32,961) | (43,000) |
Net Amount | 358 | 0 |
Derivatives Liabilities | ||
Gross Amounts of Recognized Financial Instruments | 9,384 | 10,504 |
Gross Amounts Offset in the Consolidated Statements of Financial Position | (9,384) | (9,941) |
Net Amounts Presented in the Consolidated Statements of Financial Position | 0 | 563 |
Financial Instruments/ Collateral | 0 | 0 |
Net Amount | 0 | 563 |
Securities sold under agreements to repurchase | ||
Gross Amounts of Recognized Financial Instruments | 0 | 0 |
Gross Amounts Offset in the Consolidated Statements of Financial Position | 0 | 0 |
Net Amounts Presented in the Consolidated Statements of Financial Position | 0 | 0 |
Financial Instruments/ Collateral | 0 | 0 |
Net Amount | 0 | 0 |
Total Liabilities | ||
Gross Amounts of Recognized Financial Instruments | 9,384 | 10,504 |
Gross Amounts Offset in the Consolidated Statements of Financial Position | (9,384) | (9,941) |
Net Amounts Presented in the Consolidated Statements of Financial Position | 0 | 563 |
Financial Instruments/ Collateral | 0 | 0 |
Net Amount | $ 0 | $ 563 |
Derivative Instruments (Financi
Derivative Instruments (Financial Statement Classification and Impact of Derivatives Used in Qualifying and Non-qualifying Hedge Relationships) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Realized Investment Gains (Losses) | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | $ (3,035) | $ (3,174) | $ (8,726) | $ (9,049) |
Net Investment Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 347 | 259 | 993 | 515 |
Other Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 150 | (362) | 396 | (792) |
AOCI | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 395 | (3,756) | 2,000 | (6,727) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Realized Investment Gains (Losses) | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Net Investment Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 347 | 259 | 993 | 515 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Other Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 147 | (356) | 389 | (777) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | AOCI | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 395 | (3,756) | 2,000 | (6,727) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Realized Investment Gains (Losses) | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Net Investment Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 347 | 259 | 993 | 515 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Other Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 147 | (356) | 389 | (777) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | AOCI | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 395 | (3,756) | 2,000 | (6,727) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Realized Investment Gains (Losses) | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (3,035) | (3,174) | (8,726) | (9,049) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Net Investment Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 3 | (6) | 7 | (15) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | AOCI | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Realized Investment Gains (Losses) | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (282) | 40 | (1,420) | 471 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Net Investment Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Other Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | AOCI | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Realized Investment Gains (Losses) | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 13 | (49) | 65 | (92) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Net Investment Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Other Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | AOCI | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Realized Investment Gains (Losses) | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 185 | (546) | 349 | (1,042) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Net Investment Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Other Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 3 | (6) | 7 | (15) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | AOCI | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Realized Investment Gains (Losses) | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | (7) | (2) | (44) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Net Investment Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Other Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | AOCI | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Realized Investment Gains (Losses) | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 2,615 | 828 | 2,958 | 2,074 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Net Investment Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Other Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | AOCI | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Realized Investment Gains (Losses) | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (5,566) | (3,440) | (10,676) | (10,416) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Net Investment Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Other Income | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | AOCI | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Instruments (Current
Derivative Instruments (Current Period Cash Flow Hedges in AOCI (loss) before Taxes) (Details) - Cash flow hedges in AOCI $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |
Balance, beginning | $ (5,036) |
Net deferred gains/(losses) on cash flow hedges from January 1 to September 30, 2018 | 2,944 |
Amounts reclassified into current period earnings | (944) |
Balance, ending | $ (3,036) |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 1.5 | |
Credit Protection Purchased Notional Amounts | 1 | $ 2 |
Credit Derivative Protection Purchased Fair Value Asset (Liability) | 0 | (0.1) |
Future Policy Benefits | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net | (242) | (472) |
Reinsurance recoverables | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net | 242 | 472 |
Policyholders' Account Balances | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net | $ (8) | $ (5) |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities (Balances of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | $ 1,265,603 | $ 1,261,237 | |
Fixed maturities, trading, at fair value | [1] | 6,227 | 6,643 |
Equity securities | [1] | 11,964 | 10,842 |
Other invested assets | [1] | 55,528 | 46,803 |
Reinsurance recoverables | 2,399,223 | 2,480,848 | |
Receivables from parent and affiliates | 44,001 | 43,051 | |
Separate account assets | 14,559,193 | 14,245,159 | |
TOTAL ASSETS | 18,916,795 | 18,643,600 | |
Future policy benefits | 1,534,667 | 1,707,184 | |
Policyholders' account balances | 2,255,674 | 2,083,582 | |
Payables to parent and affiliates | 17,945 | 22,236 | |
TOTAL LIABILITIES | 18,479,783 | 18,177,242 | |
Future Policy Benefits | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Embedded Derivative, Fair Value of Embedded Derivative, Net Liability | 242,000 | 472,000 | |
Embedded Derivative, Fair Value of Embedded Derivative Gross Asset | 105,000 | 77,000 | |
Embedded Derivative, Fair Value of Embedded Derivative Gross Liability | 347,000 | 549,000 | |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 1,265,603 | 1,261,237 | |
Fixed maturities, trading, at fair value | 6,227 | 6,643 | |
Equity securities | 11,964 | 10,842 | |
Other invested assets | 6,319 | 0 | |
Reinsurance recoverables | 242,084 | 472,157 | |
Receivables from parent and affiliates | 8,922 | 9,377 | |
Subtotal excluding separate account assets | 1,541,119 | 1,760,256 | |
Separate account assets | 12,732,557 | 12,454,118 | |
TOTAL ASSETS | 14,273,676 | 14,214,374 | |
Future policy benefits | 242,084 | 472,157 | |
Policyholders' account balances | 8,069 | 5,463 | |
Payables to parent and affiliates | 0 | 563 | |
TOTAL LIABILITIES | 250,153 | 478,183 | |
Assets Netting | (9,667) | (14,959) | |
Liabilities Netting | (9,384) | (9,941) | |
Netting | 300 | 5,000 | |
Fair Value, Measurements, Recurring | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets Netting | (9,667) | (14,959) | |
Fair Value, Measurements, Recurring | Payables to parent and affiliates | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liabilities Netting | (9,384) | (9,941) | |
Fair Value, Measurements, Recurring | U.S. Treasury securities and obligations of U.S. government authorities and agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 16,279 | 19,296 | |
Fair Value, Measurements, Recurring | Obligations of U.S. states and their political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 121,547 | 127,868 | |
Fair Value, Measurements, Recurring | Foreign government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 65,793 | 29,705 | |
Fair Value, Measurements, Recurring | U.S. corporate public securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 484,380 | 497,522 | |
Fair Value, Measurements, Recurring | U.S. corporate private securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 226,209 | 242,090 | |
Fair Value, Measurements, Recurring | Foreign corporate public securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 45,503 | 37,681 | |
Fair Value, Measurements, Recurring | Foreign corporate private securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 148,129 | 149,708 | |
Fair Value, Measurements, Recurring | Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 23,472 | 27,814 | |
Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 128,708 | 119,527 | |
Fair Value, Measurements, Recurring | Residential mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 5,583 | 10,026 | |
Fair Value, Measurements, Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 0 | 0 | |
Fixed maturities, trading, at fair value | 0 | 0 | |
Equity securities | 0 | 0 | |
Other invested assets | 0 | 0 | |
Reinsurance recoverables | 0 | 0 | |
Receivables from parent and affiliates | 0 | 0 | |
Subtotal excluding separate account assets | 0 | 0 | |
Separate account assets | 0 | 0 | |
TOTAL ASSETS | 0 | 0 | |
Future policy benefits | 0 | 0 | |
Policyholders' account balances | 0 | 0 | |
Payables to parent and affiliates | 0 | 0 | |
TOTAL LIABILITIES | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Obligations of U.S. states and their political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Foreign government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | U.S. corporate public securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | U.S. corporate private securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Foreign corporate public securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Foreign corporate private securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Commercial mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Residential mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 1,252,779 | 1,235,146 | |
Fixed maturities, trading, at fair value | 6,227 | 6,643 | |
Equity securities | 5,151 | 3,414 | |
Other invested assets | 15,986 | 14,959 | |
Reinsurance recoverables | 0 | 0 | |
Receivables from parent and affiliates | 8,922 | 9,377 | |
Subtotal excluding separate account assets | 1,289,065 | 1,269,539 | |
Separate account assets | 12,732,557 | 12,454,118 | |
TOTAL ASSETS | 14,021,622 | 13,723,657 | |
Future policy benefits | 0 | 0 | |
Policyholders' account balances | 0 | 0 | |
Payables to parent and affiliates | 9,384 | 10,504 | |
TOTAL LIABILITIES | 9,384 | 10,504 | |
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 16,279 | 19,296 | |
Fair Value, Measurements, Recurring | Level 2 | Obligations of U.S. states and their political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 121,547 | 127,868 | |
Fair Value, Measurements, Recurring | Level 2 | Foreign government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 65,793 | 29,705 | |
Fair Value, Measurements, Recurring | Level 2 | U.S. corporate public securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 484,380 | 497,522 | |
Fair Value, Measurements, Recurring | Level 2 | U.S. corporate private securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 223,986 | 228,219 | |
Fair Value, Measurements, Recurring | Level 2 | Foreign corporate public securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 45,503 | 37,681 | |
Fair Value, Measurements, Recurring | Level 2 | Foreign corporate private securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 147,289 | 149,063 | |
Fair Value, Measurements, Recurring | Level 2 | Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 23,472 | 16,239 | |
Fair Value, Measurements, Recurring | Level 2 | Commercial mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 118,947 | 119,527 | |
Fair Value, Measurements, Recurring | Level 2 | Residential mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 5,583 | 10,026 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 12,824 | 26,091 | |
Fixed maturities, trading, at fair value | 0 | 0 | |
Equity securities | 6,813 | 7,428 | |
Other invested assets | 0 | 0 | |
Reinsurance recoverables | 242,084 | 472,157 | |
Receivables from parent and affiliates | 0 | 0 | |
Subtotal excluding separate account assets | 261,721 | 505,676 | |
Separate account assets | 0 | 0 | |
TOTAL ASSETS | 261,721 | 505,676 | |
Future policy benefits | 242,084 | 472,157 | |
Policyholders' account balances | 8,069 | 5,463 | |
Payables to parent and affiliates | 0 | 0 | |
TOTAL LIABILITIES | 250,153 | 477,620 | |
Fair Value, Measurements, Recurring | Level 3 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Obligations of U.S. states and their political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Foreign government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | U.S. corporate public securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | U.S. corporate private securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 2,223 | 13,871 | |
Fair Value, Measurements, Recurring | Level 3 | Foreign corporate public securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Foreign corporate private securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 840 | 645 | |
Fair Value, Measurements, Recurring | Level 3 | Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 0 | 11,575 | |
Fair Value, Measurements, Recurring | Level 3 | Commercial mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 9,761 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Residential mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 0 | 0 | |
Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value investment measured at NAV per share | 2,900 | 700 | |
Separate account assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value investment measured at NAV per share | $ 1,827,000 | $ 1,791,000 | |
[1] | (1) Prior period amounts have been reclassified to conform to current period presentation. See "Adoption of ASU 2016-01" in Note 2 for details. |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | ||
Transfers Between Level 1 and Level 2 | $ 0 | $ 0 |
Available-for-sale | Collateralized Loan Obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Transfers out of Level 3 | $ 5,000,000 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities (Quantitative Info for Level 3 Inputs) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Corporate securities | [1] | $ 6,227 | $ 6,643 |
Future policy benefits | 1,534,667 | 1,707,184 | |
Fair Value, Measurements, Recurring | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Corporate securities | 6,227 | 6,643 | |
Future policy benefits | $ 242,084 | 472,157 | |
Level 3 | Minimum | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Policyholder Age | 50 years | ||
Level 3 | Minimum | Future Policy Benefits | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Mortality rate | 0.00% | ||
Level 3 | Maximum | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Policyholder Age | 90 years | ||
Level 3 | Fair Value, Measurements, Recurring | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Corporate securities | $ 0 | 0 | |
Future policy benefits | $ 242,084 | $ 472,157 | |
Level 3 | Internal | Minimum | Discounted cash flow | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Discount rate | 7.00% | 5.06% | |
Level 3 | Internal | Minimum | Discounted cash flow | Future Policy Benefits | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Lapse rate | 1.00% | 1.00% | |
Spread over LIBOR | 0.16% | 0.12% | |
Utilization rate | 50.00% | 52.00% | |
Withdrawal rate (greater than maximum) | 78.00% | 78.00% | |
Mortality rate | 0.00% | 0.00% | |
Equity volatility curve | 14.00% | 13.00% | |
Level 3 | Internal | Maximum | Discounted cash flow | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Discount rate | 13.27% | 22.23% | |
Level 3 | Internal | Maximum | Discounted cash flow | Future Policy Benefits | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Lapse rate | 13.00% | 12.00% | |
Spread over LIBOR | 1.21% | 1.10% | |
Utilization rate | 97.00% | 97.00% | |
Withdrawal rate (greater than maximum) | 100.00% | 100.00% | |
Mortality rate | 15.00% | 14.00% | |
Equity volatility curve | 22.00% | 24.00% | |
Level 3 | Internal | Weighted Average | Discounted cash flow | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Discount rate | 8.93% | 7.53% | |
Level 3 | Internal | Fair Value, Measurements, Recurring | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Corporate securities | $ 3,063 | $ 14,516 | |
Level 3 | Internal | Fair Value, Measurements, Recurring | Reinsurance recoverables | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Reinsurance recoverables | 242,084 | 472,157 | |
Level 3 | Internal | Fair Value, Measurements, Recurring | Future Policy Benefits | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Future policy benefits | $ 242,084 | $ 472,157 | |
[1] | (1) Prior period amounts have been reclassified to conform to current period presentation. See "Adoption of ASU 2016-01" in Note 2 for details. |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities (Changes in Level 3 Assets and Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Equity securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | $ 6,966 | $ 7,264 | $ 7,428 | $ 6,721 |
Total gains (losses) (realized/unrealized): | ||||
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Other | 0 | 10 | 0 | 10 |
Fair Value, end of period | 6,813 | 7,246 | 6,813 | 7,246 |
Equity securities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Net unrealized investment gains (losses): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Equity securities | Asset management fees and other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (153) | (28) | (615) | 515 |
Net unrealized investment gains (losses): | ||||
Included in earnings | (153) | (28) | (615) | 515 |
Reinsurance recoverables | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 336,084 | 562,818 | 472,157 | 434,713 |
Total gains (losses) (realized/unrealized): | ||||
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 21,916 | 20,843 | 64,896 | 61,279 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Fair Value, end of period | 242,084 | 455,196 | 242,084 | 455,196 |
Reinsurance recoverables | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (115,916) | (128,465) | (294,969) | (40,796) |
Net unrealized investment gains (losses): | ||||
Included in earnings | (113,221) | (124,390) | (283,085) | (31,015) |
Reinsurance recoverables | Asset management fees and other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Net unrealized investment gains (losses): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Reinsurance recoverables | Interest credited to polcyholder account balances | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | ||
Net unrealized investment gains (losses): | ||||
Included in earnings | 0 | 0 | ||
Receivables from Parent and Affiliates | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 0 | 0 | 0 | 5,993 |
Total gains (losses) (realized/unrealized): | ||||
Included in other comprehensive income (loss) | 0 | 0 | (18) | 0 |
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 6,047 | 0 |
Transfers out of Level 3 | 0 | 0 | (6,029) | (5,993) |
Other | 0 | 0 | 0 | 0 |
Fair Value, end of period | 0 | 0 | 0 | 0 |
Receivables from Parent and Affiliates | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Net unrealized investment gains (losses): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Receivables from Parent and Affiliates | Asset management fees and other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Net unrealized investment gains (losses): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Receivables from Parent and Affiliates | Interest credited to polcyholder account balances | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | ||
Net unrealized investment gains (losses): | ||||
Included in earnings | 0 | 0 | ||
Future Policy Benefits | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | (336,084) | (562,818) | (472,157) | (434,713) |
Total gains (losses) (realized/unrealized): | ||||
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | (21,916) | (20,843) | (64,896) | (61,279) |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Fair Value, end of period | (242,084) | (455,196) | (242,084) | (455,196) |
Future Policy Benefits | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 115,916 | 128,465 | 294,969 | 40,796 |
Net unrealized investment gains (losses): | ||||
Included in earnings | 113,221 | 124,390 | 283,085 | 31,015 |
Future Policy Benefits | Asset management fees and other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Net unrealized investment gains (losses): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Future Policy Benefits | Interest credited to polcyholder account balances | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | ||
Net unrealized investment gains (losses): | ||||
Included in earnings | 0 | 0 | ||
Policyholders' Account Balances | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | (5,627) | (3,556) | (5,463) | (2,298) |
Total gains (losses) (realized/unrealized): | ||||
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 343 | (2,280) | 505 | (2,243) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Fair Value, end of period | (8,069) | (4,217) | (8,069) | (4,217) |
Policyholders' Account Balances | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (2,785) | (672) | (3,111) | (1,967) |
Net unrealized investment gains (losses): | ||||
Included in earnings | (2,785) | (672) | (3,111) | (1,967) |
Policyholders' Account Balances | Asset management fees and other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Net unrealized investment gains (losses): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Policyholders' Account Balances | Interest credited to polcyholder account balances | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 2,291 | 2,291 | ||
Net unrealized investment gains (losses): | ||||
Included in earnings | 885 | 2,291 | ||
Available-for-sale | Fixed maturities | Corporate securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 10,007 | 14,703 | 14,516 | 15,489 |
Total gains (losses) (realized/unrealized): | ||||
Included in other comprehensive income (loss) | (2,009) | (58) | (2,645) | 338 |
Net investment income | 58 | 36 | 134 | 101 |
Purchases | 87 | 7 | 233 | 1,422 |
Sales | 0 | 0 | (45) | (767) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (5,337) | (21) | (9,263) | (64) |
Transfers into Level 3 | 0 | 404 | 0 | 404 |
Transfers out of Level 3 | 0 | 0 | 0 | (1,790) |
Other | 0 | (10) | 0 | (10) |
Fair Value, end of period | 3,063 | 15,049 | 3,063 | 15,049 |
Available-for-sale | Fixed maturities | Corporate securities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 257 | (12) | 133 | (74) |
Net unrealized investment gains (losses): | ||||
Included in earnings | 0 | 0 | 0 | (62) |
Available-for-sale | Fixed maturities | Corporate securities | Asset management fees and other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Net unrealized investment gains (losses): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Available-for-sale | Fixed maturities | Structured securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 2,292 | 8,506 | 11,575 | 2,328 |
Total gains (losses) (realized/unrealized): | ||||
Included in other comprehensive income (loss) | (29) | (11) | (59) | (48) |
Net investment income | (1) | 2 | 5 | 8 |
Purchases | 9,606 | 2,993 | 9,797 | 2,993 |
Sales | 0 | 0 | (196) | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (2,101) | (865) | (2,682) | (6,816) |
Transfers into Level 3 | 0 | 1,507 | 196 | 15,153 |
Transfers out of Level 3 | 0 | 0 | (8,890) | (1,498) |
Other | 0 | 0 | 0 | 0 |
Fair Value, end of period | 9,761 | 12,134 | 9,761 | 12,134 |
Available-for-sale | Fixed maturities | Structured securities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (6) | 2 | 15 | 14 |
Net unrealized investment gains (losses): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Available-for-sale | Fixed maturities | Structured securities | Asset management fees and other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Net unrealized investment gains (losses): | ||||
Included in earnings | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value of Assets and Liab_7
Fair Value of Assets and Liabilities (Financial Instruments where Carrying Amounts and Fair Values May Differ) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Assets: | ||||
Policy loans | $ 203,384 | $ 193,244 | ||
Cash and cash equivalents | 31,411 | 44,618 | $ 42,818 | $ 56,984 |
Accrued investment income | 17,710 | 16,580 | ||
Receivables from parent and affiliates | 44,001 | 43,051 | ||
Liabilities: | ||||
Cash collateral for loaned securities | 977 | 15,208 | ||
Fair Value | ||||
Assets: | ||||
Commercial mortgage and other loans | 120,859 | 125,121 | ||
Policy loans | 203,384 | 193,244 | ||
Cash and cash equivalents | 31,411 | 44,618 | ||
Accrued investment income | 17,710 | 16,580 | ||
Receivables from parent and affiliates | 35,079 | 33,674 | ||
Other assets | 5,891 | 5,768 | ||
Total assets | 414,334 | 419,005 | ||
Liabilities: | ||||
Policyholders’ account balances - investment contracts | 218,882 | 220,948 | ||
Cash collateral for loaned securities | 977 | 15,208 | ||
Short-term debt | 1,744 | 0 | ||
Payables to parent and affiliates | 17,945 | 21,673 | ||
Other liabilities | 45,331 | 39,561 | ||
Total liabilities | 284,879 | 297,390 | ||
Carrying Amount | ||||
Assets: | ||||
Commercial mortgage and other loans | 121,218 | 121,796 | ||
Policy loans | 203,384 | 193,244 | ||
Cash and cash equivalents | 31,411 | 44,618 | ||
Accrued investment income | 17,710 | 16,580 | ||
Receivables from parent and affiliates | 35,079 | 33,674 | ||
Other assets | 5,891 | 5,768 | ||
Total assets | 414,693 | 415,680 | ||
Liabilities: | ||||
Policyholders’ account balances - investment contracts | 219,964 | 221,407 | ||
Cash collateral for loaned securities | 977 | 15,208 | ||
Short-term debt | 1,744 | 0 | ||
Payables to parent and affiliates | 17,945 | 21,673 | ||
Other liabilities | 45,331 | 39,561 | ||
Total liabilities | 285,961 | 297,849 | ||
Level 1 | Fair Value | ||||
Assets: | ||||
Commercial mortgage and other loans | 0 | 0 | ||
Policy loans | 0 | 0 | ||
Cash and cash equivalents | 4,411 | 1,618 | ||
Accrued investment income | 0 | 0 | ||
Receivables from parent and affiliates | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets | 4,411 | 1,618 | ||
Liabilities: | ||||
Policyholders’ account balances - investment contracts | 0 | 0 | ||
Cash collateral for loaned securities | 0 | 0 | ||
Short-term debt | 0 | 0 | ||
Payables to parent and affiliates | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Level 2 | Fair Value | ||||
Assets: | ||||
Commercial mortgage and other loans | 0 | 0 | ||
Policy loans | 0 | 0 | ||
Cash and cash equivalents | 27,000 | 43,000 | ||
Accrued investment income | 17,710 | 16,580 | ||
Receivables from parent and affiliates | 35,079 | 33,674 | ||
Other assets | 5,891 | 5,768 | ||
Total assets | 85,680 | 99,022 | ||
Liabilities: | ||||
Policyholders’ account balances - investment contracts | 179,909 | 179,246 | ||
Cash collateral for loaned securities | 977 | 15,208 | ||
Short-term debt | 1,744 | 0 | ||
Payables to parent and affiliates | 17,945 | 21,673 | ||
Other liabilities | 45,331 | 39,561 | ||
Total liabilities | 245,906 | 255,688 | ||
Level 3 | Fair Value | ||||
Assets: | ||||
Commercial mortgage and other loans | 120,859 | 125,121 | ||
Policy loans | 203,384 | 193,244 | ||
Cash and cash equivalents | 0 | 0 | ||
Accrued investment income | 0 | 0 | ||
Receivables from parent and affiliates | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets | 324,243 | 318,365 | ||
Liabilities: | ||||
Policyholders’ account balances - investment contracts | 38,973 | 41,702 | ||
Cash collateral for loaned securities | 0 | 0 | ||
Short-term debt | 0 | 0 | ||
Payables to parent and affiliates | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | $ 38,973 | 41,702 | ||
Other invested assets | Fair Value | Measurement at NAV per share | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cost Method Investments, Fair Value Disclosure | 2,300 | |||
Other invested assets | Carrying Amount | Measurement at NAV per share | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cost Method Investments, Fair Value Disclosure | $ 2,600 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense (benefit) | $ 150 | $ (3,036) | $ 1,642 | $ (5,329) | |
Effective income tax rate, percent | 6.40% | (25.81%) | |||
Federal Statutory income tax rate, percent | 21.00% | 35.00% | |||
Tax Adjustments, Settlements, and Unusual Provisions | $ 2,100 | ||||
Total provision for income tax expense (benefit) | $ 100 | $ 2,500 |
Reinsurance (Amounts included i
Reinsurance (Amounts included in the Statement of Financial Position) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Effects of Reinsurance [Line Items] | ||
Reinsurance recoverables | $ 2,399,223 | $ 2,480,848 |
Policy loans | (203,384) | (193,244) |
Deferred policy acquisition costs | (159,771) | (145,451) |
Other assets | 24,851 | 27,328 |
Other liabilities | 109,583 | 103,632 |
Impacts of Reinsurance | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance recoverables | 2,399,223 | 2,480,848 |
Policy loans | (17,256) | (16,065) |
Deferred policy acquisition costs | (740,172) | (708,740) |
Deferred sales inducements | (53,582) | (58,399) |
Other assets | 16,384 | 19,159 |
Other liabilities | $ 58,847 | $ 56,232 |
Reinsurance (Reinsurance recove
Reinsurance (Reinsurance recoverables by counterparty) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | $ 2,399,223 | $ 2,480,848 |
PAR U | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 889,117 | 814,408 |
Prudential Insurance | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 661,491 | 859,122 |
PARCC | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 475,546 | 485,809 |
PAR Term | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 200,560 | 188,756 |
Term Re | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 143,171 | 116,869 |
Pruco Life | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 16,113 | 13,671 |
DART | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 9,355 | 0 |
Unaffiliated | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | $ 3,870 | $ 2,213 |
Reinsurance (Amounts included_2
Reinsurance (Amounts included in the Statements of Operations and Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Premiums: | ||||
Direct | $ 58,529 | $ 57,376 | $ 178,388 | $ 172,762 |
Ceded | (55,002) | (53,950) | (169,212) | (163,136) |
Net premiums | 3,527 | 3,426 | 9,176 | 9,626 |
Policy charges and fee income: | ||||
Direct | 90,576 | 96,618 | 275,199 | 314,799 |
Ceded | (87,705) | (90,789) | (226,976) | (285,065) |
Net policy charges and fee income | 2,871 | 5,829 | 48,223 | 29,734 |
Net investment income: | ||||
Direct | 17,418 | 16,223 | 51,863 | 49,633 |
Ceded | (164) | (151) | (452) | (447) |
Net investment income | 17,254 | 16,072 | 51,411 | 49,186 |
Asset administration fees: | ||||
Direct | 9,295 | 9,936 | 27,355 | 28,757 |
Ceded | (7,901) | (7,564) | (23,321) | (21,891) |
Net asset administration fees | 1,394 | 2,372 | 4,034 | 6,866 |
Realized investment gains (losses), net: | ||||
Direct | 115,879 | 127,633 | 293,654 | 39,201 |
Ceded | (118,665) | (131,233) | (302,267) | (49,244) |
Realized investment gains (losses), net | (2,786) | (3,600) | (8,613) | (10,043) |
Policyholders’ benefits (including change in reserves): | ||||
Direct | 61,835 | 69,360 | 209,306 | 220,229 |
Ceded | (67,933) | (72,593) | (198,245) | (212,400) |
Net policyholders’ benefits (including change in reserves) | (6,098) | (3,233) | 11,061 | 7,829 |
Interest credited to policyholders’ account balances: | ||||
Direct | 17,975 | 17,921 | 51,105 | 40,079 |
Ceded | (8,830) | (9,477) | (24,485) | (15,668) |
Net interest credited to policyholders’ account balances | 9,145 | 8,444 | 26,620 | 24,411 |
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization | (43,142) | (54,460) | (124,588) | (133,435) |
Unaffiliated activity | ||||
Policy charges and fee income: | ||||
Ceded | (4,000) | (4,000) | (4,000) | (4,000) |
Policyholders’ benefits (including change in reserves): | ||||
Ceded | $ (3,000) | $ (3,000) | $ (3,000) | $ (1,000) |
Reinsurance (Gross and net life
Reinsurance (Gross and net life insurance in force) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2017 |
Reinsurance Disclosures [Abstract] | ||
Direct gross life insurance face amount in force | $ 139,873,270 | $ 134,814,151 |
Reinsurance ceded | (127,440,273) | (122,782,744) |
Net life insurance face amount in force | $ 12,432,997 | $ 12,031,407 |
Reinsurance (Narratives) (Detai
Reinsurance (Narratives) (Details) - Affiliated Entity | Jan. 01, 2018 | Jul. 01, 2011 | Dec. 31, 2009 | Dec. 31, 2017 | Dec. 31, 2013 |
PAR U | |||||
Effects of Reinsurance [Line Items] | |||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95.00% | ||||
PARCC | |||||
Effects of Reinsurance [Line Items] | |||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 90.00% | ||||
PAR Term | |||||
Effects of Reinsurance [Line Items] | |||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95.00% | ||||
Term Re | |||||
Effects of Reinsurance [Line Items] | |||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95.00% | ||||
DART | |||||
Effects of Reinsurance [Line Items] | |||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95.00% |
Equity (Accumulated Other Compr
Equity (Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | $ 34,330 | |||
Income tax benefit (expense) | $ 2,265 | $ (191) | 14,544 | $ (8,299) |
Ending Balance | (14,670) | (14,670) | ||
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (42) | (70) | ||
Change in OCI before reclassifications | (1,162) | 37 | ||
Amounts reclassified from AOCI | 0 | 0 | ||
Income tax benefit (expense) | 243 | (13) | ||
Ending Balance | (969) | (46) | (969) | (46) |
Net Unrealized Investment Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | 34,372 | 12,231 | ||
Change in OCI before reclassifications | (67,102) | 22,659 | ||
Amounts reclassified from AOCI | (998) | 1,014 | ||
Income tax benefit (expense) | 14,301 | (8,286) | ||
Ending Balance | (13,701) | 27,618 | (13,701) | 27,618 |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | 34,330 | 12,161 | ||
Change in OCI before reclassifications | (68,264) | 22,696 | ||
Amounts reclassified from AOCI | (998) | 1,014 | ||
Income tax benefit (expense) | 14,544 | (8,299) | ||
Ending Balance | (14,670) | 27,572 | (14,670) | 27,572 |
ASU 2016-01 | Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative effect of adoption | 0 | 0 | ||
ASU 2016-01 | Net Unrealized Investment Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative effect of adoption | (175) | (175) | ||
ASU 2016-01 | Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative effect of adoption | (175) | (175) | ||
ASU 2018-02 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Ending Balance | 5,900 | 5,900 | ||
ASU 2018-02 | Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative effect of adoption | (8) | (8) | ||
ASU 2018-02 | Net Unrealized Investment Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative effect of adoption | 5,901 | 5,901 | ||
ASU 2018-02 | Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative effect of adoption | 5,893 | 5,893 | ||
Cash flow hedges | Net Unrealized Investment Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning Balance | (5,000) | 5,000 | ||
Ending Balance | $ (3,000) | $ (2,000) | $ (3,000) | $ (2,000) |
Equity (Reclassification out of
Equity (Reclassification out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net Unrealized Investment Gains (Losses) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | $ (998) | $ 1,014 | ||
Total reclassifications for the period | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | (998) | 1,014 | ||
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Investment Gains (Losses) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | $ 792 | $ (470) | 998 | (1,014) |
Reclassification out of Accumulated Other Comprehensive Income | Total reclassifications for the period | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | 792 | (470) | 998 | (1,014) |
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized investment gains (losses) on available-for-sale securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net unrealized investment gains (losses) | 238 | (488) | 54 | (739) |
Reclassification out of Accumulated Other Comprehensive Income | Currency/Interest Rate | Cash flow hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net unrealized investment gains (losses) | $ 554 | $ 18 | $ 944 | $ (275) |
Equity (OTTI Unrealized Investm
Equity (OTTI Unrealized Investment Gain (Loss) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | $ 34,330 |
Ending Balance | (14,670) |
Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | 34,372 |
Ending Balance | (13,701) |
OTTI | Net Unrealized Gains (Losses) on Investments | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | 162 |
Net investment gains (losses) on investments arising during the period | 6 |
Reclassification adjustment for (gains) losses included in net income | (23) |
Reclassification adjustment for OTTI (gains) losses excluded from net income | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities | 0 |
Ending Balance | 145 |
OTTI | Deferred Policy Acquisition Costs and Other Costs | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | (63) |
Net investment gains (losses) on investments arising during the period | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 |
Reclassification adjustment for OTTI (gains) losses excluded from net income | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 24 |
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities | 0 |
Ending Balance | (39) |
OTTI | Future Policy Benefits and Policyholders' Account Balances | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | 109 |
Net investment gains (losses) on investments arising during the period | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 |
Reclassification adjustment for OTTI (gains) losses excluded from net income | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities | (55) |
Ending Balance | 54 |
OTTI | Deferred Income Tax (Liability) Benefit | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | (70) |
Net investment gains (losses) on investments arising during the period | (1) |
Reclassification adjustment for (gains) losses included in net income | 5 |
Reclassification adjustment for OTTI (gains) losses excluded from net income | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | (5) |
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities | 12 |
Ending Balance | (59) |
OTTI | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | 138 |
Net investment gains (losses) on investments arising during the period | 5 |
Reclassification adjustment for (gains) losses included in net income | (18) |
Reclassification adjustment for OTTI (gains) losses excluded from net income | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 19 |
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities | (43) |
Ending Balance | $ 101 |
Equity (All Other Net Unrealize
Equity (All Other Net Unrealized Investment Gains (Losses) in AOCI) (Details) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | $ 34,330 |
Ending Balance | (14,670) |
Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | 34,372 |
Ending Balance | (13,701) |
All Other | Net Unrealized Gains (Losses) on Investments | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | 52,537 |
Net investment gains (losses) on investments arising during the period | (69,597) |
Reclassification adjustment for (gains) losses included in net income | (975) |
Reclassification adjustment for OTTI (gains) losses excluded from net income | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities | 0 |
Ending Balance | (18,305) |
All Other | Deferred Policy Acquisition Costs and Other Costs | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | 35 |
Net investment gains (losses) on investments arising during the period | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 |
Reclassification adjustment for OTTI (gains) losses excluded from net income | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 3,434 |
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities | 0 |
Ending Balance | 3,469 |
All Other | Future Policy Benefits and Policyholders' Account Balances | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | (1,754) |
Net investment gains (losses) on investments arising during the period | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 |
Reclassification adjustment for OTTI (gains) losses excluded from net income | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities | (914) |
Ending Balance | (2,668) |
All Other | Deferred Income Tax (Liability) Benefit | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | (16,584) |
Net investment gains (losses) on investments arising during the period | 14,614 |
Reclassification adjustment for (gains) losses included in net income | 205 |
Reclassification adjustment for OTTI (gains) losses excluded from net income | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | (721) |
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities | 192 |
Ending Balance | 3,702 |
All Other | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Beginning Balance | 34,234 |
Net investment gains (losses) on investments arising during the period | (54,983) |
Reclassification adjustment for (gains) losses included in net income | (770) |
Reclassification adjustment for OTTI (gains) losses excluded from net income | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 2,713 |
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities | (722) |
Ending Balance | (13,802) |
ASU 2016-01 | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Cumulative effect of adoption | (175) |
ASU 2016-01 | All Other | Net Unrealized Gains (Losses) on Investments | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Cumulative effect of adoption | (270) |
ASU 2016-01 | All Other | Deferred Policy Acquisition Costs and Other Costs | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Cumulative effect of adoption | 0 |
ASU 2016-01 | All Other | Future Policy Benefits and Policyholders' Account Balances | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Cumulative effect of adoption | 0 |
ASU 2016-01 | All Other | Deferred Income Tax (Liability) Benefit | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Cumulative effect of adoption | 95 |
ASU 2016-01 | All Other | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Cumulative effect of adoption | (175) |
ASU 2018-02 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Ending Balance | 5,900 |
ASU 2018-02 | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Cumulative effect of adoption | 5,901 |
ASU 2018-02 | All Other | Net Unrealized Gains (Losses) on Investments | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Cumulative effect of adoption | 0 |
ASU 2018-02 | All Other | Deferred Policy Acquisition Costs and Other Costs | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Cumulative effect of adoption | 0 |
ASU 2018-02 | All Other | Future Policy Benefits and Policyholders' Account Balances | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Cumulative effect of adoption | 0 |
ASU 2018-02 | All Other | Deferred Income Tax (Liability) Benefit | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Cumulative effect of adoption | 5,901 |
ASU 2018-02 | All Other | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Cumulative effect of adoption | $ 5,901 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2018USD ($)policy | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | ||
Related Party Transaction [Line Items] | |||||||||
Proceeds from Sale of Loans Receivable | $ 0 | $ 0 | $ 0 | $ 42,000,000 | |||||
Commissions and fees | 2,871,000 | 5,829,000 | 48,223,000 | 29,734,000 | |||||
Other invested assets | [1] | 55,528,000 | 55,528,000 | $ 46,803,000 | |||||
Net investment income | 17,254,000 | 16,072,000 | 51,411,000 | 49,186,000 | |||||
Fee income from revenue sharing agreement | 1,394,000 | 2,372,000 | 4,034,000 | 6,866,000 | |||||
Pruco Life | |||||||||
Related Party Transaction [Line Items] | |||||||||
Contributed capital | $ 1,000,000 | $ 1,000,000 | |||||||
Dividend | $ 100,000,000 | 0 | |||||||
Prudential Insurance | |||||||||
Related Party Transaction [Line Items] | |||||||||
Stock option program plan expense | 0 | 0 | 100,000 | 100,000 | |||||
Deferred compensation program expense | 200,000 | 200,000 | 600,000 | 900,000 | |||||
Pension plan expense | 600,000 | 700,000 | 2,000,000 | 2,000,000 | |||||
Welfare plan expense | 800,000 | 800,000 | $ 2,000,000 | 3,000,000 | |||||
Defined contribution plan employer matching contribution percent | 4.00% | ||||||||
Defined contribution plan, cost recognized | 300,000 | 300,000 | $ 800,000 | 900,000 | |||||
Number of Corporate Owned Life Insurance policies sold | policy | 3 | ||||||||
Prudential Financial | |||||||||
Related Party Transaction [Line Items] | |||||||||
Company’s share of corporate expenses | 2,000,000 | 2,000,000 | $ 6,000,000 | 6,000,000 | |||||
Number of Corporate Owned Life Insurance policies sold | policy | 1 | ||||||||
Affiliated Entity | |||||||||
Related Party Transaction [Line Items] | |||||||||
Accrued interest receivable related to long-term notes receivable | 100,000 | $ 100,000 | 100,000 | ||||||
Revenue related to long-term notes receivables | 100,000 | 100,000 | 200,000 | 200,000 | |||||
Line of credit facility, maximum borrowing capacity | 200,000,000 | 200,000,000 | |||||||
Interest expense related to loans payable | 0 | 0 | 0 | 0 | |||||
Affiliated Entity | PAD | |||||||||
Related Party Transaction [Line Items] | |||||||||
Commissions and fees | 19,000,000 | 15,000,000 | 54,000,000 | 46,000,000 | |||||
Affiliated Entity | ASTISI and PGIM Investments | |||||||||
Related Party Transaction [Line Items] | |||||||||
Fee income from revenue sharing agreement | 8,000,000 | 8,000,000 | 23,000,000 | 22,000,000 | |||||
Affiliated Entity | PGIM Investments | |||||||||
Related Party Transaction [Line Items] | |||||||||
Fee income from revenue sharing agreement | 1,000,000 | 2,000,000 | 4,000,000 | 7,000,000 | |||||
Affiliated Entity | PGIM | |||||||||
Related Party Transaction [Line Items] | |||||||||
Net investment income | 700,000 | 600,000 | 2,000,000 | 2,000,000 | |||||
Prudential Financial Joint Ventures | |||||||||
Related Party Transaction [Line Items] | |||||||||
Other invested assets | 34,000,000 | 34,000,000 | 29,000,000 | ||||||
Net investment income | 400,000 | 500,000 | 1,000,000 | 2,000,000 | |||||
Prudential Insurance and Prudential Financial | |||||||||
Related Party Transaction [Line Items] | |||||||||
Life Insurance, Corporate or Bank Owned, amount | 2,417,000,000 | 2,417,000,000 | $ 2,244,000,000 | ||||||
Fees related to Life Insurance, Corporate or Bank Owned, amount | 6,000,000 | $ 6,000,000 | $ 19,000,000 | $ 19,000,000 | |||||
Concentration Risk, Percentage | 10.00% | ||||||||
Maximum COLI Mortality Risk | $ 100,000 | $ 100,000 | |||||||
[1] | (1) Prior period amounts have been reclassified to conform to current period presentation. See "Adoption of ASU 2016-01" in Note 2 for details. |
Related Party Transactions (Aff
Related Party Transactions (Affiliated Notes Receivable) (Details) - Affiliated Entity - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||
Total long-term notes receivable - affiliated | $ 8,922 | $ 9,377 |
U.S. dollar floating rate notes | ||
Related Party Transaction [Line Items] | ||
Total long-term notes receivable - affiliated | $ 6,007 | 6,047 |
U.S. dollar floating rate notes | Minimum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 3.74% | |
U.S. dollar floating rate notes | Maximum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 3.83% | |
U.S. Dollar fixed rate notes | ||
Related Party Transaction [Line Items] | ||
Total long-term notes receivable - affiliated | $ 2,915 | $ 3,330 |
U.S. Dollar fixed rate notes | Minimum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 0.00% | |
U.S. Dollar fixed rate notes | Maximum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 14.85% |
Related Party Transactions (A_2
Related Party Transactions (Affiliated Asset Transfer) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||||
Total realized investment gains (losses), net | $ (2,786) | $ (3,600) | $ (8,613) | $ (10,043) | |
Affiliated Entity | Prudential Insurance June 17 Sale | |||||
Related Party Transaction [Line Items] | |||||
Fair Value | $ 16,965 | ||||
Book Value | 16,515 | ||||
APIC, Net of Tax Increase/(Decrease) | 293 | ||||
Total realized investment gains (losses), net | 0 | ||||
Affiliated Entity | Prudential Insurance June 17 Sale | |||||
Related Party Transaction [Line Items] | |||||
Fair Value | 43,198 | ||||
Book Value | 42,301 | ||||
APIC, Net of Tax Increase/(Decrease) | 584 | ||||
Total realized investment gains (losses), net | $ 0 | ||||
Affiliated Entity | Gibraltar Universal Life Re [Member] | |||||
Related Party Transaction [Line Items] | |||||
Fair Value | 17,904 | 17,904 | |||
Book Value | 17,904 | 17,904 | |||
APIC, Net of Tax Increase/(Decrease) | $ 0 | 0 | |||
Total realized investment gains (losses), net | $ 0 |
Related Party Transactions Rela
Related Party Transactions Related Party Transactions (Debt Agreements) (Details) - Affiliated Entity - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 1,744 | $ 0 |
Prudential Funding, LLC | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 1,744 | $ 0 |
Interest Rates | 0.23% |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Narratives) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Commitments and Contingent Liabilities [Line Items] | ||
Litigation and regulatory matters loss contingency, range of possible loss, maximum (less than) | $ 10 | |
Commitments | Commercial Mortgage Loans | ||
Commitments and Contingent Liabilities [Line Items] | ||
Total outstanding mortgage loan commitments | 0 | $ 2 |
Commitments | Investments | ||
Commitments and Contingent Liabilities [Line Items] | ||
Commitments to Purchase Investment (excluding Commercial Mortgage Loans) | $ 35 | $ 33 |