Document and Entity Information
Document and Entity Information | Jul. 14, 2023 |
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Jul. 14, 2023 |
Entity Incorporation, State or Country Code | NJ |
Entity File Number | 333-18053 |
Entity Tax Identification Number | 22-2426091 |
Entity Address, Address Line One | 213 Washington Street |
Entity Address, City or Town | Newark |
Entity Address, State or Province | NJ |
Entity Address, Postal Zip Code | 07102 |
City Area Code | 973 |
Local Phone Number | 802-6000 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Amendment Flag | false |
Entity Central Index Key | 0001038509 |
Entity Registrant Name | PRUCO LIFE INSURANCE OF NEW JERSEY |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
ASSETS | |||
Fixed maturities, available-for-sale, at fair value (allowance for credit losses: 2022 – $363; 2021 – $1,558) (amortized cost: 2022 – $1,990,718; 2021 – $1,762,211) | $ 1,719,488 | $ 1,935,598 | |
Fixed maturities, trading, at fair value (amortized cost: 2022 – $27,566; 2021 – $36,863) | 23,782 | 36,456 | |
Equity securities, at fair value (cost: 2021 – $4,660; 2020 – $4,660) | 4,358 | 5,937 | |
Policy loans | 212,063 | 210,730 | |
Short-term Investments | 7,000 | 9,997 | |
Commercial mortgage and other loans (net of $408 and $246 allowance for credit losses at December 31, 2022 and December 31, 2021, respectively) | 148,179 | 115,576 | |
Other invested assets (includes $2,389 and $10,027 of assets measured at fair value at December 31, 2022 and 2021, respectively) | 129,528 | 124,327 | |
Total investments | 2,244,398 | 2,438,621 | |
Cash and cash equivalents | 255,767 | 136,316 | |
Deferred policy acquisition costs | [1] | 351,874 | 308,744 |
Accrued investment income | 25,222 | 22,539 | |
Reinsurance recoverables | [1] | 3,098,248 | 3,175,195 |
Receivables from parent and affiliates | 19,348 | 21,438 | |
Income Taxes Receivable | [1] | 67,615 | 22,153 |
Market risk benefit assets | [1] | 558,624 | 940,706 |
Other Assets | [1] | 48,391 | 48,867 |
Separate account assets | 13,926,958 | 17,922,367 | |
TOTAL ASSETS | 20,596,445 | 25,036,946 | |
LIABILITIES | |||
Policyholders' account balances | [1] | 2,774,315 | 2,699,934 |
Future policy benefits | [1] | 2,130,042 | 2,361,123 |
Market risk benefits liabilities | [1] | 558,624 | 940,706 |
Payables to parent and affiliates | 7,546 | 2,432 | |
Other liabilities | [1] | 172,305 | 201,033 |
Separate account liabilities | 13,926,958 | 17,922,367 | |
Total liabilities | 19,569,790 | 24,127,595 | |
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 | 775,412 | 450,102 | |
Retained earnings | [1] | 285,433 | 355,262 |
Accumulated other comprehensive income (loss) | [1] | (36,190) | 101,987 |
Total equity | 1,026,655 | 909,351 | |
TOTAL LIABILITIES AND EQUITY | $ 20,596,445 | $ 25,036,946 | |
[1]Amounts adjusted for the implementation of Accounting Standards Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Fixed Maturities, Available-for-sale, at fair value (AFS), Allowance for Credit Losses | $ 363 | $ 1,558 |
Fixed Maturities, Available-for-sale, amortized cost | 1,990,718 | 1,762,211 |
Fixed Maturities, Trading, Amortized Cost | 27,566 | 36,863 |
Equity securities, at cost | 4,614 | 4,660 |
Commercial mtg and other loans, allowance for credit losses | 408 | 246 |
Other invested assets, at fair value | $ 2,389 | $ 10,027 |
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 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
REVENUES | |||||
Premiums | $ 33,708 | [1] | $ 28,749 | [1] | $ 21,660 |
Policy charges and fee income | 57,734 | [1] | 72,162 | [1] | 74,202 |
Net investment income | 98,392 | 100,491 | 82,995 | ||
Asset administration fees | 8,480 | 8,875 | 6,744 | ||
Other income (loss) | (2,153) | 781 | 6,365 | ||
Realized investment gains (losses), net | 13,835 | [1] | 515 | [2] | 1,871 |
Change in value of market risk benefits, net of related hedging gain (loss) | (142,046) | [2] | 39,670 | [2] | 0 |
TOTAL REVENUES | 67,950 | 251,243 | 193,837 | ||
BENEFITS AND EXPENSES | |||||
Policyholders' benefits | 28,189 | [1] | 40,779 | [1] | 41,887 |
Change in estimates of liability for future policy benefits | 16,631 | [1] | 2,819 | [1] | 0 |
Interest credited to policyholders’ account balances | 47,578 | 43,004 | 44,096 | ||
Amortization of deferred policy acquisition costs | 19,290 | [1] | 18,198 | [1] | 18,119 |
General, administrative and other expenses | 56,865 | [1] | 50,727 | [1] | 47,703 |
TOTAL BENEFITS AND EXPENSES | 168,553 | 155,527 | 151,805 | ||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | (100,603) | 95,716 | 42,032 | ||
Income tax expense (benefit) | (30,774) | [1] | 11,093 | [1] | (6,339) |
Net income (loss) | (69,829) | [2] | 84,623 | [2] | 48,371 |
Other comprehensive income (loss), before tax: | |||||
Foreign currency translation adjustments | (336) | (259) | 250 | ||
Net unrealized investment gains (losses) | (376,485) | [1] | (67,261) | [1] | 126,043 |
Interest rate remeasurement of future policy benefits | 59,867 | [1] | 13,404 | [1] | 0 |
Gain (loss) from changes in non-performance risk on market risk benefits | 142,046 | [1] | (39,669) | [1] | 0 |
Total | (174,908) | (93,785) | 126,293 | ||
Less: Income tax expense (benefit) related to other comprehensive income (loss) | (36,731) | [1] | (19,694) | [1] | 26,521 |
Other comprehensive income (loss), net of taxes | (138,177) | (74,091) | 99,772 | ||
Comprehensive income (loss) | $ (208,006) | $ 10,532 | $ 148,143 | ||
[1]Amounts for the years ended December 31, 2022 and 2021 were adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[2]Amounts for the years ended December 31, 2022 and 2021 were adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholder’s Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Cumulative Effect, Period of Adoption, Adjustment | Total Equity | Total Equity Cumulative Effect, Period of Adoption, Adjustment | ||||
Beginning Balance at Dec. 31, 2019 | $ 2,000 | $ 268,021 | $ 280,246 | $ (167) | [1] | $ 85,635 | $ 635,902 | $ (167) | [1] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Contributed capital | 85,112 | 85,112 | |||||||||||
Contributed (distributed) capital- parent/child asset transfers | (4,398) | (4,398) | |||||||||||
Comprehensive income (loss): | |||||||||||||
Net income (loss) | $ 48,371 | 48,371 | 48,371 | ||||||||||
Other comprehensive income (loss), net of tax | 99,772 | 99,772 | 99,772 | ||||||||||
Total comprehensive income (loss) | 148,143 | ||||||||||||
Ending Balance at Dec. 31, 2020 | 2,000 | 348,735 | 328,450 | $ (57,811) | 185,407 | $ (9,329) | 864,592 | $ (67,140) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Contributed capital | 101,300 | 101,300 | |||||||||||
Contributed (distributed) capital- parent/child asset transfers | 67 | 67 | |||||||||||
Comprehensive income (loss): | |||||||||||||
Net income (loss) | 84,623 | [2] | 84,623 | 84,623 | |||||||||
Other comprehensive income (loss), net of tax | (74,091) | (74,091) | (74,091) | ||||||||||
Total comprehensive income (loss) | 10,532 | ||||||||||||
Ending Balance at Dec. 31, 2021 | [3] | 2,000 | 450,102 | 355,262 | 101,987 | 909,351 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Contributed capital | 326,700 | 326,700 | |||||||||||
Contributed (distributed) capital- parent/child asset transfers | (1,390) | (1,390) | |||||||||||
Comprehensive income (loss): | |||||||||||||
Net income (loss) | (69,829) | [2] | (69,829) | (69,829) | |||||||||
Other comprehensive income (loss), net of tax | $ (138,177) | (138,177) | (138,177) | ||||||||||
Total comprehensive income (loss) | (208,006) | ||||||||||||
Ending Balance at Dec. 31, 2022 | [3] | $ 2,000 | $ 775,412 | $ 285,433 | $ (36,190) | $ 1,026,655 | |||||||
[1]Includes the impact from the adoption of ASU 2016-13. See Note 2.[2]Amounts for the years ended December 31, 2022 and 2021 were adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[3]Amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net income (loss) | $ (69,829) | [1] | $ 84,623 | [1] | $ 48,371 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||
Policy charges and fee income | (3,182) | [1] | 6,705 | [1] | (24,935) | |
Interest credited to policyholders' account balances | 47,578 | 43,004 | 44,096 | |||
Realized investment (gains) losses, net | (13,835) | [2] | (515) | [1] | (1,871) | |
Change in value of market risk benefits, net of related hedging (gains) losses | 142,046 | [1] | (39,670) | [1] | 0 | |
Change in: | ||||||
Future policy benefits | 422,975 | [1] | 315,782 | [1] | 289,417 | |
Reinsurance recoverables | (365,401) | [1] | (116,031) | [1] | (272,450) | |
Accrued investment income | (2,683) | (1,291) | (1,709) | |||
Net payables to/receivables from parent and affiliates | 3,073 | (4,223) | (8,567) | |||
Deferred policy acquisition costs | (43,130) | [1] | (64,526) | [1] | (58,425) | |
Income taxes | (8,362) | [1] | 4,550 | [1] | (8,215) | |
Derivatives, net | 4,514 | 25,229 | 5,305 | |||
Other, net | [3] | (102,980) | [1] | (123,099) | [1] | (9,467) |
Cash flows from (used in) operating activities | 10,784 | 130,538 | 1,550 | |||
Proceeds from the sale/maturity/prepayment of: | ||||||
Fixed maturities, available-for-sale | 101,647 | 101,100 | 60,422 | |||
Fixed maturities, trading | 6,251 | 580 | 0 | |||
Equity securities | 45 | 0 | 3,591 | |||
Policy loans | 28,786 | 28,007 | 26,439 | |||
Ceded policy loans | (1,687) | (1,827) | (1,434) | |||
Short-term investments | 9,997 | 32 | 0 | |||
Commercial mortgage and other loans | 18,108 | 21,360 | 14,559 | |||
Other invested assets | 3,014 | 6,414 | 1,908 | |||
Payments for the purchase/origination of: | ||||||
Fixed maturities, available-for-sale | (335,123) | (226,125) | (181,796) | |||
Fixed maturities, trading | 0 | (19,724) | (3,497) | |||
Equity securities | (182) | 0 | (2) | |||
Policy loans | (21,782) | (17,769) | (19,774) | |||
Ceded policy loans | 2,033 | 1,770 | 3,602 | |||
Short-term investments | (7,000) | (9,997) | 0 | |||
Commercial mortgage and other loans | (51,654) | (3,912) | (3,978) | |||
Other invested assets | (16,508) | (23,513) | (11,046) | |||
Notes receivable from parent and affiliates, net | (36) | (33) | (1,391) | |||
Derivatives, net | 3,806 | 1,301 | 505 | |||
Other, net | 4,053 | (785) | 149 | |||
Cash flows from (used in) investing activities | (256,232) | (143,121) | (108,961) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Policyholders’ account deposits | 496,074 | 559,970 | 529,874 | |||
Ceded policyholders’ account deposits | (313,962) | (331,276) | (347,786) | |||
Policyholders’ account withdrawals | (384,210) | (514,729) | (327,130) | |||
Ceded policyholders’ account withdrawals | 240,291 | 248,163 | 248,680 | |||
Net change in securities sold under agreement to repurchase and cash collateral for loaned securities | 0 | (2,725) | 244 | |||
Contributed capital | 325,400 | 100,000 | 0 | |||
Contributed (distributed) capital - parent/child asset transfers | (1,759) | 85 | (165) | |||
Net change in financing arrangements (maturities 90 days or less) | 0 | 0 | (89) | |||
Drafts outstanding | 5,501 | (1,804) | 9,111 | |||
Other, net | (2,436) | 22,688 | 7,275 | |||
Cash flows from (used in) financing activities | 364,899 | 80,372 | 120,014 | |||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 119,451 | 67,789 | 12,603 | |||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 136,316 | 68,527 | 55,924 | |||
CASH AND CASH EQUIVALENTS, END OF YEAR | 255,767 | 136,316 | 68,527 | |||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||
Income taxes paid (refund) | (22,412) | (6,543) | (1,880) | |||
Interest paid | $ 0 | $ 18 | $ 18 | |||
[1]Amounts for the years ended December 31, 2022 and 2021 were adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[2]Amounts for the years ended December 31, 2022 and 2021 were adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[3]Prior periods have been reclassified to conform to the current period presentation. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Non-cash assets received | $ 0 | $ 0 | |
Pruco Life Insurance Company | |||
Non-cash assets received | $ 85 |
Business and Basis of Presentat
Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
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 (the "Company" or "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. Basis of Presentation On January 1, 2023, the Company adopted ASU 2018-12, Financial Services— Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts , which provided new authoritative guidance impacting the accounting and disclosure requirements for long-duration insurance and investment contracts issued by the Company. See “Adoption of ASU 2018-12” below for additional information regarding this adoption, including the impacts to the Company’s 2022 and 2021 financial statements from implementing the new accounting standard as well as the transition impacts recorded as of January 1, 2021. See Note 2 for additional details regarding the key policy changes effected by this ASU and updated accounting policies resulting from the adoption of this ASU for the years ended December 31, 2022 and 2021 presented in the Financial Statements. The Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). Intercompany balances and transactions have been eliminated. Adoption of ASU 2018-12 In August 2018, the FASB issued ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts which provides new authoritative guidance impacting the accounting and disclosure requirements for long-duration insurance and investment contracts issued by the Company. The Company adopted this guidance, effective January 1, 2023, using the modified retrospective transition method, where permitted, for changes to the liability for future policy benefits and deferred policy acquisition costs ("DAC") and related balances, and using the retrospective transition method, as required, for market risk benefits. The Company applied the guidance as of the transition date of January 1, 2021 and retrospectively adjusted prior period amounts for the years ended December 31, 2022 and 2021 for financial statements to reflect the new guidance. The Company has not retrospectively adjusted its financial statements for the year ended December 31, 2020 to reflect the adoption of ASU 2018-12, consistent with the Division of Corporation Finance’s Financial Reporting Manual Section 11410.1. As of December 31, 2022 and 2021, the impact of adoption is primarily from remeasuring in force contract liabilities using upper-medium grade fixed income instrument yields as reported in future policy benefits, other changes in reserves, and market risk benefits. The following tables present amounts as previously reported in 2022, the effect upon those amounts from the adoption of the new guidance under ASU 2018-12 Statements of Financial Position: December 31, 2022 IMPACTED LINES ONLY As Previously Reported Effect of As Currently Reported (in thousands) Deferred policy acquisition costs $ 364,494 $ (12,620) $ 351,874 Reinsurance recoverables 3,258,526 (160,278) 3,098,248 Income tax assets 67,126 489 67,615 Market risk benefit assets 0 558,624 558,624 Other assets 16,207 32,184 48,391 TOTAL ASSETS $ 20,178,046 $ 418,399 $ 20,596,445 Policyholders’ account balances $ 2,763,730 $ 10,585 $ 2,774,315 Future policy benefits 2,303,407 (173,365) 2,130,042 Market risk benefit liabilities 0 558,624 558,624 Other liabilities 147,908 24,397 172,305 Total liabilities 19,149,549 420,241 19,569,790 Retained earnings 439,236 (153,803) 285,433 Accumulated other comprehensive income (loss) (188,151) 151,961 (36,190) Total equity 1,028,497 (1,842) 1,026,655 TOTAL LIABILITIES AND EQUITY $ 20,178,046 $ 418,399 $ 20,596,445 December 31, 2021 IMPACTED LINES ONLY As Previously Reported Effect of As Currently Reported (in thousands) Deferred policy acquisition costs $ 290,299 $ 18,445 $ 308,744 Reinsurance recoverables 3,601,212 (426,017) 3,175,195 Income tax assets 5,842 16,311 22,153 Market risk benefit assets 0 940,706 940,706 Other assets 17,581 31,286 48,867 TOTAL ASSETS $ 24,456,215 $ 580,731 $ 25,036,946 Policyholders’ account balances $ 2,608,640 $ 91,294 $ 2,699,934 Future policy benefits 2,757,941 (396,818) 2,361,123 Market risk benefit liabilities 0 940,706 940,706 Other liabilities 194,123 6,910 201,033 Total liabilities 23,485,503 642,092 24,127,595 Retained earnings 387,957 (32,695) 355,262 Accumulated other comprehensive income (loss) 130,653 (28,666) 101,987 Total equity 970,712 (61,361) 909,351 TOTAL LIABILITIES AND EQUITY $ 24,456,215 $ 580,731 $ 25,036,946 Statements of Operations and Comprehensive Income (Loss): Year Ended December 31, 2022 IMPACTED LINES ONLY As Previously Reported Effect of As Currently Reported (in thousands) REVENUES Premiums $ 34,901 $ (1,193) $ 33,708 Policy charges and fee income 85,416 (27,682) 57,734 Realized investment gains (losses), net 13,416 419 13,835 Change in value of market risk benefits, net of related hedging gain (loss) 0 (142,046) (142,046) TOTAL REVENUES 238,452 (170,502) 67,950 BENEFITS AND EXPENSES Policyholders’ benefits 55,094 (26,905) 28,189 Change in estimates of liability for future policy benefits 0 16,631 16,631 Amortization of deferred policy acquisition costs 24,512 (5,222) 19,290 General, administrative and other expenses 58,570 (1,705) 56,865 TOTAL BENEFITS AND EXPENSES 185,754 (17,201) 168,553 INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES 52,698 (153,301) (100,603) Income tax expense (benefit) 1,419 (32,193) (30,774) NET INCOME (LOSS) $ 51,279 $ (121,108) $ (69,829) Other comprehensive income (loss), before tax: Net unrealized investment gains (losses) (403,214) 26,729 (376,485) Interest rate remeasurement of future policy benefits 0 59,867 59,867 Gain (loss) from changes in non-performance risk on market risk benefits 0 142,046 142,046 Total (403,550) 228,642 (174,908) Less: Income tax expense (benefit) related to other comprehensive income (loss) (84,746) 48,015 (36,731) Other comprehensive income (loss), net of taxes (318,804) 180,627 (138,177) Comprehensive income (loss) $ (267,525) $ 59,519 $ (208,006) Year Ended December 31, 2021 IMPACTED LINES ONLY As Previously Reported Effect of As Currently Reported (in thousands) REVENUES Premiums $ 29,945 $ (1,196) $ 28,749 Policy charges and fee income 89,781 (17,619) 72,162 Realized investment gains (losses), net 1,968 (1,453) 515 Change in value of market risk benefits, net of related hedging gain (loss) 0 39,670 39,670 TOTAL REVENUES 231,841 19,402 251,243 BENEFITS AND EXPENSES Policyholders’ benefits 48,516 (7,737) 40,779 Change in estimates of liability for future policy benefits 0 2,819 2,819 Amortization of deferred policy acquisition costs 24,203 (6,005) 18,198 General, administrative and other expenses 52,194 (1,467) 50,727 TOTAL BENEFITS AND EXPENSES 167,917 (12,390) 155,527 INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES 63,924 31,792 95,716 Income tax expense (benefit) 4,417 6,676 11,093 NET INCOME (LOSS) $ 59,507 $ 25,116 $ 84,623 Other comprehensive income (loss), before tax: Net unrealized investment gains (losses) (69,049) 1,788 (67,261) Interest rate remeasurement of future policy benefits 0 13,404 13,404 Gain (loss) from changes in non-performance risk on market risk benefits 0 (39,669) (39,669) Total (69,308) (24,477) (93,785) Less: Income tax expense (benefit) related to other comprehensive income (loss) (14,554) (5,140) (19,694) Other comprehensive income (loss), net of taxes (54,754) (19,337) (74,091) Comprehensive income (loss) $ 4,753 $ 5,779 $ 10,532 Statements of Cash Flows: Year Ended December 31, 2022 IMPACTED LINES ONLY As Previously Reported Effect of As Currently Reported (in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 51,279 $ (121,108) $ (69,829) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Policy charges and fee income (19,960) 16,778 (3,182) Realized investment (gains) losses, net (13,416) (419) (13,835) Change in value of market risk benefits, net of related hedging (gains) losses 0 142,046 142,046 Change in: Future policy benefits and other insurance liabilities 222,224 200,751 422,975 Reinsurance recoverables (268,022) (97,379) (365,401) Deferred policy acquisition costs (38,058) (5,072) (43,130) Income taxes 23,831 (32,193) (8,362) Other, net (1) 424 (103,404) (102,980) Cash flows from (used in) operating activities $ 10,784 $ 0 $ 10,784 (1) Prior period has been reclassified to conform to the current period presentation. Year Ended December 31, 2021 IMPACTED LINES ONLY As Previously Reported Effect of As Currently Reported (in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 59,507 $ 25,116 $ 84,623 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Policy charges and fee income (21,724) 28,429 6,705 Realized investment (gains) losses, net (1,968) 1,453 (515) Change in value of market risk benefits, net of related hedging (gains) losses 0 (39,670) (39,670) Change in: Future policy benefits and other insurance liabilities 294,654 21,128 315,782 Reinsurance recoverables (209,431) 93,400 (116,031) Deferred policy acquisition costs (58,421) (6,105) (64,526) Income taxes (2,127) 6,677 4,550 Other, net (1) 7,329 (130,428) (123,099) Cash flows from (used in) operating activities $ 130,538 $ 0 $ 130,538 (1) Prior period has been reclassified to conform to the current period presentation. The following tables detail the January 1, 2021 transition adjustments by providing a rollforward of the ending reported balances as of December 31, 2020 to the opening balances as of January 1, 2021 for retained earnings, accumulated other comprehensive income (“AOCI”) and the impacted insurance-related balances. January 1, 2021 Retained Earnings (in thousands) Balance after-tax, prior to transition $ 328,450 Reclassification of market risk benefits non-performance risk to accumulated other comprehensive income(1) (60,792) Updates to certain universal life contract liabilities(2) (20,108) Other(3) 7,722 Total pre-tax adjustments (73,178) Tax impacts 15,367 Balance after-tax, after transition $ 270,639 (1) Reflects the cumulative impact of changes in the fair value of market risk benefits (“MRB”) non-performance risk (“NPR”) from the date of contract issuance to January 1, 2021. These amounts were previously recorded in retained earnings but are now reflected in AOCI under the new guidance. (2) Reflects the impact on additional insurance reserves ("AIR") and other related balances primarily related to the no-lapse guarantee features on certain universal life contracts. For additional information, see Note 2. (3) Primarily reflects the reassessment of deferred reinsurance losses ("DRL"). January 1, 2021 Accumulated Other Comprehensive Income (in thousands) Balance after-tax, prior to transition $ 185,407 Interest rate remeasurement of future policy benefits (57,440) Reclassification of market risk benefits non-performance risk to accumulated other comprehensive income(1) 60,792 Unwinding amounts related to unrealized investment gains and losses(2) (15,161) Total pre-tax adjustments (11,809) Tax impacts 2,480 Balance after-tax, after transition $ 176,078 (1) Reflects the cumulative impact of changes in NPR on the fair value of market risk benefits from the date of contract issuance to January 1, 2021. These amounts were previously recorded in retained earnings but are now reflected in AOCI under the new guidance. (2) Primarily reflects amounts related to DAC and other balances as unrealized investment gains or losses no longer impact the amortization pattern of such balances under the new guidance. Also includes the impacts from updates to reserves and other related balances for certain universal life contracts. For additional information, see Note 2. January 1, 2021 Deferred Policy Acquisition Costs Term Life Variable/Universal Life Total (in thousands) Balance prior to transition $ 51,526 $ 172,899 $ 224,425 Unwinding amounts related to unrealized investment gains and losses 0 21,714 21,714 Other(1) 1 (1,922) (1,921) Balance after transition $ 51,527 $ 192,691 $ 244,218 (1) Represents miscellaneous model refinements. January 1, 2021 Deferred Reinsurance Losses(1) Variable Annuities (in thousands) Balance prior to transition $ 15,209 Unwinding amounts related to unrealized investment gains and losses 1,187 Effect of change in reserve basis to market risk benefits 4,236 Balance after transition $ 20,632 (1) Deferred reinsurance losses are included in "Other assets". January 1, 2021 Benefit Reserves(1) Term Life Fixed Annuities Total (in thousands) Balance prior to transition $ 1,049,445 $ 16,468 $ 1,065,913 Changes in cash flow assumptions and other activity 30 (687) (657) Balance after transition, at original discount rate 1,049,475 15,781 1,065,256 Cumulative changes in discount rate assumptions 401,072 2,188 403,260 Balance after transition, at current discount rate 1,450,547 17,969 1,468,516 Less: Reinsurance recoverable 1,264,199 17,944 1,282,143 Balance after transition, net of reinsurance recoverable $ 186,348 $ 25 $ 186,373 (1) Benefit reserves, excluding amounts for reinsurance recoverable, are included in "Future policy benefits". For additional information on the liability for future policy benefits, see Note 8 . January 1, 2021 Deferred Profit Liability(1) Fixed Annuities (in thousands) Balance prior to transition $ 102 Changes in benefit reserves 882 Balance after transition 984 Less: Reinsurance recoverable 984 Balance after transition, net of reinsurance recoverable $ 0 (1) Deferred profit liability ("DPL"), excluding amounts for reinsurance recoverable, is included in "Future policy benefits". For additional information regarding the liability for future policy benefits, see Note 8. January 1, 2021 Additional Insurance Reserves(1) Variable/Universal Life Variable Annuities Total (in thousands) Balance prior to transition $ 513,812 $ 24,433 $ 538,245 Unwinding amounts related to unrealized investment gains and losses (109,355) (1,698) (111,053) Balance prior to transition, excluding amounts related to unrealized investment gains and losses 404,457 22,735 427,192 Reclassification of future policy benefits additional insurance reserves to market risk benefits 0 (22,735) (22,735) Updates to certain universal life contract liabilities(2) 142,726 0 142,726 Balance after transition, excluding amounts related to unrealized investment gains and losses 547,183 0 547,183 Amounts related to unrealized investment gains and losses after transition 95,331 0 95,331 Balance after transition 642,514 0 642,514 Less: Reinsurance recoverable 613,009 0 613,009 Balance after transition, net of reinsurance recoverable $ 29,505 $ 0 $ 29,505 (1) AIR, excluding amounts for reinsurance recoverable, are included in "Future policy benefits". For additional information regarding the liability for future policy benefits, see Note 8. (2) For additional information regarding updates to reserves and other related balances for certain universal life contracts, see Note 2. January 1, 2021 Unearned Revenue Reserves(1) Variable/Universal Life (in thousands) Balance prior to transition $ 94,480 Unwinding amounts related to unrealized investment gains and losses and other activity 92,103 Balance after transition 186,583 Less: Reinsurance recoverable 45,019 Balance after transition, net of reinsurance recoverable $ 141,564 (1) Unearned revenue reserves ("URR") are included in "Policyholders' account balances". For additional information regarding the liability for policyholders' account balances, see Note 9. January 1, 2021 Market Risk Benefits(1) Variable Annuities (in thousands) Liability for guaranteed benefits recorded at fair value, prior to transition $ 1,195,470 Additional insurance reserves to be reclassed to market risk benefits, prior to transition, excluding amounts related to unrealized investment gains and losses 22,735 Total liability prior to transition 1,218,205 Change in reserve basis to market risk benefits framework (12,634) Market risk benefits after transition, at current non-performance risk value 1,205,571 Less: Reinsured market risk benefits 1,205,571 Market risk benefits after transition, net of reinsurance 0 Market risk benefits after transition, at contract inception non-performance risk value $ 1,266,363 Cumulative change in non-performance risk 60,792 Market risk benefits after transition, at current non-performance risk value $ 1,205,571 (1) For additional information regarding market risk benefits, see Note 10. January 1, 2021 Cost of Reinsurance(1) Variable/ Universal Life (in thousands) Balance prior to transition $ 85,773 Unwinding amounts related to unrealized investment gains and losses (34,617) Balance prior to transition, excluding amounts related to unrealized investment gains and losses 51,156 Impact from updates to certain universal life contract liabilities(2) 14,045 Balance after transition, excluding amounts related to unrealized investment gains and losses 65,201 Amounts related to unrealized investment gains and losses after transition 27,620 Balance after transition $ 92,821 (1) Cost of reinsurance is included in "Other liabilities". (2) For additional information regarding updates to reserves and other related balances for certain universal life contracts, see Note 2. 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 future policy benefits; policyholders' account balances and reinsurance related to the fair value of embedded derivative instruments associated with the index-linked features of certain universal life and annuity products; market risk benefits; the valuation of investments including derivatives, the measurement of allowance for credit losses, and the recognition of other-than-temporary impairments; reinsurance recoverables; any 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. COVID-19 Since the first quarter of 2020, the novel coronavirus (“COVID-19”) has resulted in extreme stress and disruption in the global economy and financial markets. The pandemic has adversely impacted, and may continue to adversely impact, the Company's results of operations, financial condition and cash flows. The risks have manifested, and may continue to manifest, in the Company's financial statements in the areas of, among others, (i) insurance liabilities and related balances: potential changes to assumptions regarding investment returns, mortality and policyholder behavior which are reflected in our insurance liabilities and certain related balances (e.g., DAC, etc.); and (ii) investments: increased risk of loss on our investments due to default or deterioration in credit quality or value. The Company cannot predict what impact the COVID-19 pandemic will ultimately have on its businesses. Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. Out of Period Adjustments In 2022, the Company recorded out of period adjustments resulting in an aggregate net benefit of $1 million to "Income (loss) from operations before income taxes". These adjustments relate to reserves for certain universal and variable life products and certain portions of reinsurance activity. Management has evaluated the impact of all out of period adjustments, both individually and in the aggregate, and concluded that they are not material to any current or previously reported quarterly or annual financial statements. |
Significant Accounting Policies
Significant Accounting Policies and Pronouncements | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Pronouncements | SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS Adoption of ASU 2018-12 Effective January 1, 2023, the Company adopted ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts . Adoption of this ASU impacted, at least to some extent, the accounting and disclosure requirements for all long-duration insurance and investment contracts issued by the Company and had a significant financial impact on the Financial Statements and disclosures. See Note 1 for additional information. As of the January 1, 2021 transition date, the adoption of the standard resulted in a decrease to “Total equity” of $67 million, primarily from remeasuring in force contract liabilities using upper-medium grade fixed income instrument yields as of the transition date and from other changes in reserves. As of the January 1, 2023 adoption date, the impact amounted to a decrease to "Total equity" of $2 million. The changes in the impacts from January 1, 2021 to January 1, 2023 primarily reflect the increase in market interest rates during 2021 and 2022. Outlined below are: (1) key accounting policy changes effected by the ASU; (2) updated accounting policies for the periods ended December 31, 2022 and 2021 presented in the Financial Statements; (3) accounting policies not impacted by the adoption of ASU 2018-12; and (4) prior accounting policies no longer applicable with the adoption of ASU 2018-12. (1) Key Accounting Policy Changes Area of Change 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-payment 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 Statements of Operations. Effective January 1, 2023 using the modified retrospective transition method, which includes a cumulative effect adjustment to the balance sheet as of January 1, 2021 (the “transition date”). Under this method, the amendments to contracts in force were applied as of January 1, 2021 on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI The impact upon transition reflects the impact on in force contract liabilities in instances where expected net premiums exceeded expected gross premiums at an issue-year cohort level as a result of updating to current best estimate cash flow assumptions as of the transition date. As a result of the modified retrospective transition method, the vast majority of the impact of updating cash flow assumptions to best estimates as of the transition date will be reflected in the pattern of earnings in subsequent periods. See Note 1 for additional information regarding the effect on the financial statements. Adoption of the standard also resulted in additional required disclosures. See Note 8 for additional information. Discount rate assumption used to measure the liability for future policy benefits for non-participating traditional and limited-payment insurance products Requires discount rate assumptions to be based on an upper-medium grade fixed income instrument yields, which will be updated each quarter with the impact recorded through OCI. An entity shall maximize the use of relevant observable information and minimize the use of unobservable information in determining the discount rate assumptions. As noted above, the guidance for the liability for future policy benefits was adopted effective January 1, 2023 using the modified retrospective transition method, which includes a cumulative effect adjustment to the balance sheet as of January 1, 2021. Under this method, for balance sheet remeasurement purposes, the liability for future policy benefits is remeasured using discount rates as of January 1, 2021 with the impact recorded as a cumulative effect adjustment to AOCI. Adoption of the ASU resulted in a significant impact to AOCI as a result of remeasuring in force contract liabilities using current upper-medium grade fixed income instrument yields. This adjustment largely reflects the difference between discount rates locked-in at contract inception versus current discount rates. See Note 1 for additional information regarding the effect on the financial statements. Adoption of the standard also resulted in additional required disclosures. See Note 8 for additional information. Amortization of deferred acquisition costs and other balances Requires DAC and other balances, such as URR and Deferred Sales Inducements ("DSI"), to be amortized on a constant level basis over the expected term of the related contract, independent of expected profitability. Effective January 1, 2023 using the modified retrospective transition method, which includes a cumulative effect adjustment to the balance sheet as of January 1, 2021. Under this method, the amendments to contracts in force were applied as of January 1, 2021 on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI. Adoption of the ASU did not have a significant impact on DAC and other balances upon transition, other than the impact of the removal of any related amounts in AOCI. See Note 1 for additional information regarding the effect on the financial statements. Adoption of the standard also resulted in additional required disclosures. See Note 6 for additional information. 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, and record MRB assets and liabilities separately on the Statements of Financial Position. Changes in the fair value of market risk benefits are recorded in net income, except for the portion attributable to changes in an entity’s NPR, which is recognized in OCI. An entity shall maximize the use of relevant observable information and minimize the use of unobservable information in determining the balance of the market risk benefits upon adoption. Effective January 1, 2023 using the retrospective transition method, which includes a cumulative effect adjustment to the balance sheet as of January 1, 2021. Adoption of the ASU resulted in an adjustment to retained earnings for the difference between the fair value and carrying value of benefits not measured at fair value prior to the adoption of the ASU (e.g., guaranteed minimum death benefits on variable annuities) and a reclass of the cumulative effect of changes in NPR from retained earnings to AOCI. See Note 1 for additional information regarding the effect on the financial statements. Adoption of the standard also resulted in additional required disclosures. See Note 10 for additional information. In addition to the significant key accounting changes noted above, ASU 2018-12 also clarified the definition of assessments used to accrue additional insurance reserves and other related balances, primarily for no-lapse guarantee features on certain universal life contracts. Application of the new guidance changed the pattern of reserve recognition for these guarantees and resulted in an increase to the net contract liabilities related to these products at transition. See Note 1 for additional information regarding the effect on the financial statements. ASU 2022-05, Financial Services – Insurance (Topic 944) Transition for Sold Contracts was issued on December 15, 2022, to amend the transition guidance in ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts . The amendment allows an insurance entity to make an accounting policy election to not apply ASU 2018-12 to contracts or legal entities sold or disposed of before the effective date, and in which the insurance entity has no significant continuing involvement with the derecognized contracts. An insurance entity is permitted to apply the policy election on a transaction by transaction basis to each sale or disposal transaction. An insurance entity is required to disclose whether it has chosen to apply this accounting policy election and provide a qualitative description of the sale or disposal transactions to which the accounting policy election is applied. The Company did not apply this accounting policy election. (2) Updated Accounting Policies This section includes the updated accounting policies resulting from the adoption of ASU 2018-12 which are applicable to the periods ended December 31, 2022 and 2021 presented in the Financial Statements. ASSETS Deferred policy acquisition costs represents costs directly related to the successful acquisition of new and renewal insurance and annuity business. Such DAC primarily includes commissions, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully acquired contracts. In each reporting period, previously capitalized DAC is amortized and included in “Amortization of deferred policy acquisition costs”, and the carrying amount of DAC is not subject to recoverability testing upon adoption of the ASU. DAC is amortized on a constant-level basis at a grouped contract level over the expected life of the underlying insurance contracts. Contracts are grouped consistent with the groupings used to estimate the liability for future policy benefits (or other related balances) for the corresponding contracts. Since contracts within a grouping may be of different sizes, contracts within a group are weighted to achieve appropriate amortization and to ensure that DAC is derecognized when a policy is no longer in force. The constant-level basis used to weight contracts within a grouping and amortize DAC is generally defined as follows: • Life insurance contracts – DAC associated with life insurance contracts is generally amortized in proportion to the initial face amount of life insurance in force. This is applicable to traditional and universal life insurance. • Payout annuity contracts – DAC associated with payout annuity contracts is amortized in proportion to annual benefit payments. • Deferred annuity contracts – DAC associated with fixed and variable deferred annuity contracts is amortized in proportion to deposits. For single premium immediate annuities without life contingencies, acquisition expenses are deferred and amortized over the expected life of the contracts using the interest method. Current period DAC amortization reflects the impact of changes in actual insurance in force during the period and changes in future assumptions effected as of the end of the quarter, where applicable. The Company typically updates actuarial assumptions annually in the second quarter, (see " Annual Assumptions Review " below), unless a material change is observed in an interim period that is indicative of a long-term trend. Generally, the Company does not expect trends to change significantly in the short-term and, to the extent these trends may change, the Company expects such changes to be gradual over the long-term. Assumptions used for DAC are consistent with those used in estimating the liability for future policy benefits (or any other related balance) for the corresponding contract. Determining the level of aggregation and actuarial assumptions used in projecting in force terminations requires judgment. Internal criteria are developed to determine the level of aggregation by considering both qualitative and quantitative materiality thresholds. The assumptions used in projecting in force terminations are mortality, mortality improvement, and lapse assumptions. These assumptions are generally based on the Company’s experience, industry experience and/or other factors, as applicable. For variable deferred annuity contracts, lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefits 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. For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. If policyholders surrender traditional life insurance policies in exchange for life insurance policies that do not have fixed and guaranteed terms, the Company immediately charges to expense the remaining unamortized DAC on the surrendered policies. For other internal replacement transactions, except those that involve the addition of a non-integrated contract feature that does not change the existing base contract, the unamortized DAC is immediately charged to expense if the terms of the new policies are not substantially similar to those of the former policies. If the new terms are substantially similar to those of the earlier policies, the DAC is retained with respect to the new policies and amortized over the expected life of the new policies. See Note 6 for additional information regarding DAC. Reinsurance recoverables include corresponding receivables associated with reinsurance arrangements with affiliates and third party reinsurers, and are reported on the Statements of Financial Position net of the CECL allowance. Reinsurance recoverables also include assumed modified coinsurance arrangements which generally reflect the value of the invested assets retained by the cedant and the associated asset returns. Modified coinsurance recoverables contain an embedded derivative (bifurcated and accounted for separately from the host contract) that is presented together with the derivative embedded in the modified coinsurance payables as one compound derivative. For additional information about these arrangements see Note 11. The CECL allowance considers the credit quality of the reinsurance counterparty and is generally determined based on the probability of default and loss given default assumptions, after considering any applicable collateral arrangements. The CECL allowance does not apply to reinsurance recoverables with affiliated counterparties under common control. Additions to or releases of the allowance are reported in “Policyholders’ benefits.” Prior to the adoption of this standard, an allowance for credit losses for reinsurance recoverables was established only when it was deemed probable that a reinsurer may fail to make payments to us in a timely manner. Reinsurance premiums, commissions, expense reimbursements, benefits and reserves related to reinsured long-duration contracts under coinsurance arrangements are accounted for over the life of the underlying reinsured contracts using assumptions consistent with those used to account for the underlying contracts. For reinsurance of in force blocks of non-participating traditional and limited-payment contracts, the current value of the direct liability as of inception of the reinsurance agreement is used to calculate the reinsurance recoverable and cost of reinsurance such that there is no immediate other comprehensive income or loss from recognition of the reinsurance recoverable at inception. Consistent with the direct liability, the reinsurance recoverable for non-participating traditional and limited-payment contracts is remeasured each period using current single A rates with the effect on the liability resulting from such updates recorded in "Interest rate remeasurement of future policy benefits" in OCI. Coinsurance arrangements contrast with the Company’s yearly renewable term arrangements, where only mortality risk is transferred to the reinsurer and premiums are paid to the reinsurer to reinsure that risk. The mortality risk that is reinsured under yearly renewable term arrangements represents the difference between the stated death benefits in the underlying reinsured contracts and the corresponding reserves or account value carried by the Company on those same contracts. The premiums paid to the reinsurer are based upon negotiated amounts, not on the actual premiums paid by the underlying contract holders to the Company. As yearly renewable term arrangements are usually entered into by the Company with the expectation that the contracts will be in force for the lives of the underlying policies, they are considered to be long-duration reinsurance contracts. The cost of reinsurance for universal life products is generally recognized based on the gross assessments of the underlying direct policies. The cost of reinsurance for term insurance products is generally recognized in proportion to direct premiums over the life of the underlying policies. Market risk benefits in an asset position are presented separately from market risk benefits in a liability position. See “ Market risk benefits ” below. Other assets consists primarily of premiums due and deferred loss on reinsurance which is amortized over the expected life of the reinsured contracts on a constant-level basis. Separate account assets represents segregated funds that are invested for certain policyholders, and other customers. The assets consist primarily of equity securities, fixed maturities, real estate-related investments, real estate mortgage loans, short-term investments and derivative instruments and are reported at fair value. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company. 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. The investment income and realized investment gains or losses from separate account assets generally accrue to the policyholders and are not included in the Company’s results of operations. Mortality, policy administration and surrender charges assessed against the accounts are included in “Policy charges and fee income”. Asset administration fees charged to the accounts are included in “Asset administration fees”. Seed money that the Company invests in separate accounts is reported in the appropriate general account asset line. Investment income and realized investment gains or losses from seed money invested in separate accounts accrue to the Company and are included in the Company’s results of operations. See Note 7 for additional information regarding separate account arrangements with contractual guarantees. See also “Separate account liabilities ” below. LIABILITIES Future policy benefits is primarily comprised of the present value of expected future payments to or on behalf of policyholders, where the timing and amount of payment depends on policyholder mortality or morbidity, less the present value of expected future net premiums (where net premiums are gross premiums multiplied by the Net-To-Gross ("NTG") ratio discussed below). The liability for future policy benefits is accrued over time as premium revenue is recognized. See Note 8 for additional information regarding future policy benefits. The reserving methodology used for non-participating traditional and limited-payment contracts include the following: • Cash Flow Assumptions . In measuring the liability for future policy benefits, the net premium valuation methodology is utilized. Under this methodology, a liability for future policy benefits is established using current best estimate insurance assumptions and interest rate assumptions locked-in at contract issuance date. The NTG ratio is calculated as the ratio of the present value of expected policy benefits and non-level claim settlement expenses divided by the present value of expected gross premiums. The NTG ratio is applied to gross premiums, as premium revenue is recognized, to determine net premiums. The liability is then determined as the present value of expected future policy benefits and non-level claim settlement expenses less the present value of expected future net premiums. For purposes of liability measurement, contracts are grouped into cohorts based primarily on issue year and major product line. The NTG ratio is generally updated quarterly for actual experience and annually for future cash flow assumption updates during the Company’s annual assumptions review process in the second quarter of each year unless a material change is observed in an interim period that is indicative of a long-term trend (see “ Annual Assumptions Review” below), and with the exception of claim settlement expense assumptions which the Company has made an entity-wide election to lock-in as of contract issuance. The NTG ratio is subject to a retrospective unlocking method whereby the Company updates its best estimate of cash flows expected over the life of the cohort using actual historical experience and updated future cash flow assumptions. These updated cash flows are used to calculate the revised NTG ratio, which is used to derive an updated liability for future policy benefits as of the beginning of the current reporting period, discounted at the original contract issuance discount rate. The updated liability for future policy benefit amount as of the beginning of the quarter is then compared to the carrying amount of the liability as of that same date, before the updates for actual experience or future cash flow assumptions, to determine the current period change in liability estimate. This current period change in the liability is the liability remeasurement gain or loss that is recorded through current period earnings in “Change in estimates of liability for future policy benefits.” In subsequent periods, the revised NTG ratio is used to measure the liability for future policy benefits, subject to future revisions. If a cohort is in a loss position where the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for expected future policy benefits and non-level claim settlement expenses, the NTG ratio is capped at 100%. In these instances, all changes in expected benefits resulting from both actual experience deviations and changes in future assumptions are reflected immediately. While the liability for future policy benefits cannot be less than zero (i.e., a contra-liability) at the cohort level and thus the balance is floored at zero (i.e., “flooring”), the NTG ratio may be negative. This would be the case whereby conditions have improved such that the present value of future net premiums plus the existing liability for future policy benefits as of the valuation date exceed the present value of expected future policy benefits and non-level claim settlement expenses. In this case, the negative NTG ratio would be applied going forward to gross premiums received, effectively amortizing the gain into income and reducing the liability over time. For contracts issued prior to January 1, 2021, the modified retrospective transition method was used to transition to ASU 2018-12. Under this method, the transition date of January 1, 2021 serves as the new issue date of the contracts in force for purposes of retrospectively unlocking the NTG ratio as described above. • Discount Rate Assumption. The locked-in discount rate is generally based on expected investment returns at contract inception for contracts issued prior to January 1, 2021 and the upper medium grade fixed income corporate instrument yield (i.e., global single A) at contract inception for contracts issued after January 1, 2021. The discount rate in effect at contract inception is locked-in for the calculation of the NTG ratio and accretion of interest cost on the liability through net income. However, for balance sheet remeasurement purposes, the discount rate is updated using the current single A rate at each reporting period, with the effect on the liability resulting from such update recorded in “Interest rate remeasurement of future policy benefits" in OCI. The methodology used in constructing the single A discount rate curve for discounting cash flows used to calculate the liability for future policy benefits is intended to be reflective of the characteristics of the applicable insurance liabilities. The single A discount rate curve is developed by reference to upper medium grade (low credit risk) fixed income instrument yields that reflect the duration characteristics of the applicable insurance liabilities. The single A discount curve for the United States and foreign economies, such as Japan, with observable corporate A spreads, is developed using government bond rates, plus globally equivalent public corporate A spreads in the observable periods. The definition of upper medium grade is based on Moody’s definition which includes the spectrum of A (i.e., A- to A+). The rate used in foreign operations (with the exception of certain emerging markets, as discussed below) is based on the equivalent of a single A rate from a global rating agency for corporate bonds issued in the same currency and country in which the insurance contract is written. Liquidity is considered in defining the observable period and linear extrapolation is performed to the Company's ultimate long-term economic assumptions. See “Annual Assumptions Review” below for further discussion regarding the Company’s long-term economic assumption setting process. The Company’s liability for future policy benefits also includes net liabilities for guaranteed benefits related to certain long-duration life contracts, such as no-lapse guarantee contract features (AIR liability), for which a liability is established when associated assessments are recognized (which include investment margin on policyholders' account balances in the general account and all policy charges including charges for administration, mortality, expense, surrender, and other charges). This liability is established using current best estimate assumptions and is based on the ratio of the present value of total expected excess payments (i.e., payments in excess of account value) over the life of the contract divided by the present value of total expected assessments (i.e., benefit ratio). For universal life type contracts and participating contracts, the Company performs premium deficiency tests using best estimate assumptions as of the testing date. If the liabilities determined based on these best estimate assumptions are greater than the net reserves (i.e., GAAP reserves including URR, net of reinsurance), the existing net reserves are adjusted by first reducing these assets by the amount of the deficiency or to zero through a charge to current period earnings. If the deficiency is more than these asset balances for insurance contracts, the net reserves are increased by the excess through a charge to current period earnings included in "policyholders' benefits". Since investment yields are used as the discount rate, the premium deficiency test is also performed using a discount rate based on the market yield (i.e., assuming what would be the impact if any unrealized gains (losses) were realized as of the testing date). In the event that by using the market yield a deficiency occurs, an adjustment is established for the deficiency and is included in AOCI. In certain instances, for universal life type contracts and participating contracts, the policyholder liability for a particular line of business may not be deficient in the aggregate to trigger loss recognition, but the pattern of earnings may be such that profits are expected to be recognized in earlier years followed by losses in later years. In these situations, accounting standards require that an additional liability (Profits Followed by Losses or “PFL” liability) be recognized by an amount necessary to sufficiently offset the losses that would be recognized in later years. To date, the Company has not recorded a PFL liability on any such contracts. The Company’s liability for future policy benefits also includes a liability for unpaid claims and claim adjustment expenses. The Company does not establish claim liabilities until a loss has been incurred. However, unpaid claims and claim adjustment expenses include estimates of claims that the Company believes have been incurred but have not yet been reported as of the balance sheet date. Policyholders’ account balances liability represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. This liability is primarily associated with the accumulated account deposits, plus interest credited, less policyholder withdrawals and other charges assessed against the account balance, as applicable. These policyholders’ account balances also include provision for benefits under non-life contingent payout annuities and certain unearned revenues. The unearned revenue liability represents policy charges for services to be provided in future periods. The charges are deferred as incurred and are generally amortized over the expected life of the contract using the same methodology, factors, and assumption used to amortize DAC. See Note 9 for additional information regarding policyholders’ account balances. Policyholders' account balances also include amounts representing the fair value of embedded derivative instruments associated with the index-linked feature of certain universal life and annuity products. For additional information regarding the valuation of these embedded derivatives, see Note 5. Market risk benefit liabilities (or assets ) represents contracts or contract features that provide protection to the contractholder and exposes the Company to other than nominal capital market risk, primarily related to deferred annuities with guaranteed minimum benefits associated with annuities products including guaranteed minimum death benefits (“GMDB”), guaranteed minimum income benefits (“GMIB”), guaranteed minimum accumulation benefits (“GMAB”), guaranteed minimum withdrawal benefits (“GMWB”) and guaranteed minimum income and withdrawal benefits (“GMIWB”). The benefits are accounted for using a fair value measurement framework. If a contract contains multiple market risk benefits, the benefits are bundled together and accounted for as a single compound market risk benefit. Market risk benefits in an asset position are presented separately from those in a liability position as there is no legal right of offset between contracts. The fair value of market risk benefits is calculated as the present value of expected future benefit payments to contractholders less the present value of expected future rider fees attributable to the market risk benefit. The fair value of market risk benefits is based on assumptions a market participant would use in valuing market risk benefits. For additional information regarding the valuation of market risk benefits, see Note 5. On a quarterly basis, changes in the fair value of market risk benefits are recorded in net income, net of related hedges, in "Change in value of market risk benefits, net of related hedging gains (losses)", except for the portion of the change attributable to changes in the Company’s NPR which is recorded in OCI. See Note 10 for additional information regarding market risk benefits. Other liabilities consists primarily of accrued expenses, reinsurance payables and technical overdrafts. Separate account liabilities primarily represents the contractholders’ account balance in separate account assets and to a lesser extent borrowings of the separate account, and will be equal and offsetting to total separate account assets. See also “ Separate account assets” above. REVENUES AND BENEFITS AND EXPENSES Insurance Revenue and Expense Recognition Premiums from individual life products, other than universal and variable life contracts, are recognized when due. When premiums are due over a significantly shorter period than the period over which benefits are provided, any gross premium in excess of the net premium (i.e., the portion of the gross premium required to provide for all expected future benefits and expenses) is generally deferred and recognized into revenue in a constant relationship to insurance in force. Benefits are recorded as an expense when they are incurred. A liability for future |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Investments [Abstract] | |
Investments | . INVESTMENTS Fixed Maturity Securities The following tables set forth the composition of fixed maturity securities (excluding investments classified as trading), as of the dates indicated: December 31, 2022 Amortized Gross Gross Allowance for Credit Losses Fair (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 62,210 $ 0 $ 1,074 $ 0 $ 61,136 Obligations of U.S. states and their political subdivisions 165,109 421 6,315 0 159,215 Foreign government bonds 87,853 1 15,891 0 71,963 U.S. public corporate securities 1,062,342 1,943 180,880 0 883,405 U.S. private corporate securities 186,123 141 13,465 358 172,441 Foreign public corporate securities 138,717 28 25,783 0 112,962 Foreign private corporate securities 133,074 523 21,562 0 112,035 Asset-backed securities(1) 18,358 272 256 0 18,374 Commercial mortgage-backed securities 124,486 0 8,595 0 115,891 Residential mortgage-backed securities(2) 12,446 92 467 5 12,066 Total fixed maturities, available-for-sale $ 1,990,718 $ 3,421 $ 274,288 $ 363 $ 1,719,488 (1) Includes credit-tranched securities collateralized by loan obligations and education loans. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. December 31, 2021 Amortized Gross Gross Allowance for Credit Losses Fair (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 12,832 $ 673 $ 0 $ 0 $ 13,505 Obligations of U.S. states and their political subdivisions 161,812 17,198 0 0 179,010 Foreign government bonds 93,062 8,731 1,002 0 100,791 U.S. public corporate securities 908,129 117,450 2,994 0 1,022,585 U.S. private corporate securities 190,157 13,128 52 1,558 201,675 Foreign public corporate securities 105,346 8,481 644 0 113,183 Foreign private corporate securities 138,753 6,620 2,015 0 143,358 Asset-backed securities(1) 16,685 596 4 0 17,277 Commercial mortgage-backed securities 132,961 8,401 7 0 141,355 Residential mortgage-backed securities(2) 2,474 385 0 0 2,859 Total fixed maturities, available-for-sale $ 1,762,211 $ 181,663 $ 6,718 $ 1,558 $ 1,935,598 (1) Includes credit-tranched securities collateralized by education loans and loan obligations. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. The following tables set forth the fair value and gross unrealized losses on available-for-sale fixed maturity securities without an allowance for credit 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: December 31, 2022 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: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 61,136 $ 1,074 $ 0 $ 0 $ 61,136 $ 1,074 Obligations of U.S. states and their political subdivisions 113,693 6,315 0 0 113,693 6,315 Foreign government bonds 46,826 5,741 24,746 10,150 71,572 15,891 U.S. public corporate securities 704,906 111,763 155,138 69,117 860,044 180,880 U.S. private corporate securities 149,670 11,857 9,273 1,608 158,943 13,465 Foreign public corporate securities 69,310 11,016 38,996 14,767 108,306 25,783 Foreign private corporate securities 62,044 12,499 33,858 9,063 95,902 21,562 Asset-backed securities 5,570 160 3,289 96 8,859 256 Commercial mortgage-backed securities 110,820 8,398 5,071 197 115,891 8,595 Residential mortgage-backed securities 10,509 467 0 0 10,509 467 Total fixed maturities, available-for-sale $ 1,334,484 $ 169,290 $ 270,371 $ 104,998 $ 1,604,855 $ 274,288 December 31, 2021 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: Foreign government bonds $ 17,306 $ 928 $ 2,072 $ 74 $ 19,378 $ 1,002 U.S. public corporate securities 72,360 1,255 42,496 1,739 114,856 2,994 U.S. private corporate securities 2,349 27 979 25 3,328 52 Foreign public corporate securities 9,439 192 6,726 452 16,165 644 Foreign private corporate securities 18,912 596 11,402 1,419 30,314 2,015 Asset-backed securities 3,426 4 0 0 3,426 4 Commercial mortgage-backed securities 3,083 7 0 0 3,083 7 Total fixed maturities, available-for-sale $ 126,875 $ 3,009 $ 63,675 $ 3,709 $ 190,550 $ 6,718 As of December 31, 2022 and 2021, the gross unrealized losses on fixed maturity available-for-sale securities without an allowance were composed of $269.6 million and $5.3 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 $4.7 million and $1.4 million, respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. As of December 31, 2022, the $105.0 million of gross unrealized losses of twelve months or more were concentrated in the Company’s corporate securities within the finance, consumer non-cyclical and capital goods sectors. As of December 31, 2021, the $3.7 million of gross unrealized losses of twelve months or more were concentrated in the Company’s corporate securities within the consumer non-cyclical, finance and capital goods sectors. In accordance with its policy described in Note 2, the Company concluded that an adjustment to earnings for credit losses related to these fixed maturity securities was not warranted at December 31, 2022. This conclusion was based on a detailed analysis of the underlying credit and cash flows on each security. Gross unrealized losses are primarily attributable to increases in interest rates, general credit spread widening, foreign currency exchange rate movements and the financial condition or near-term prospects of the issuer. As of December 31, 2022, 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: December 31, 2022 Amortized Cost Fair Value (in thousands) Fixed maturities, available-for-sale: Due in one year or less $ 40,526 $ 39,539 Due after one year through five years 240,259 226,070 Due after five years through ten years 154,492 140,664 Due after ten years 1,400,151 1,166,884 Asset-backed securities 18,358 18,374 Commercial mortgage-backed securities 124,486 115,891 Residential mortgage-backed securities 12,446 12,066 Total fixed maturities, available-for-sale $ 1,990,718 $ 1,719,488 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 write-downs, and the allowance for credit losses of fixed maturities, for the periods indicated: Years Ended December 31, 2022 2021 2020 (in thousands) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 37,605 $ 49,835 $ 4,085 Proceeds from maturities/prepayments 64,177 49,793 57,837 Gross investment gains from sales and maturities 224 708 (4) Gross investment losses from sales and maturities (5,451) (1,024) (43) Write-downs recognized in earnings(2) 0 0 (625) (Addition to) release of allowance for credit losses 1,195 (1,558) 0 (1) Excludes activity from non-cash related proceeds due to the timing of trade settlements of $(0.1) million, $1.5 million and $(1.5) million for the years ended December 31, 2022, 2021 and 2020, respectively. (2) Amounts represent write-downs of credit adverse securities and securities actively marketed for sale. The following tables set forth the activity in the allowance for credit losses for fixed maturity securities, as of the dates indicated: Year Ended December 31, 2022 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of period $ 0 $ 0 $ 1,558 $ 0 $ 0 $ 0 $ 1,558 Additions (reductions) on securities with previous allowance 0 0 (1,200) 0 0 1 (1,199) Additions to allowance for credit losses not previously recorded 0 0 0 0 0 4 4 Balance, end of period $ 0 $ 0 $ 358 $ 0 $ 0 $ 5 $ 363 Year Ended December 31, 2021 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of period $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Additions to allowance for credit losses not previously recorded 0 0 1,558 0 0 0 1,558 Balance, end of period $ 0 $ 0 $ 1,558 $ 0 $ 0 $ 0 $ 1,558 For the year ended December 31, 2020, there was no activity in the allowance for credit losses for fixed maturity securities. See Note 2 for additional information about the Company's methodology for developing our allowance for credit losses. For the year ended December 31, 2022, the net decrease in the allowance for credit losses on available-for-sale securities was primarily related to a net release on restructured private corporate securities within the transportation sector. For the year ended December 31, 2021, the net increase in the allowance for credit losses for fixed maturity securities was primarily related to adverse projected cash flows on securities in the transportation sector within private corporate securities. The Company did not have any fixed maturity securities purchased with credit deterioration, as of both December 31, 2022 and 2021. Fixed Maturities, Trading The net change in unrealized gains (losses) from fixed maturities, trading still held at period end, recorded within “Other income (loss),” was $(3.4) million, $(2.0) million and $2.1 million during the years ended December 31, 2022, 2021 and 2020, respectively. Equity Securities The net change in unrealized gains (losses) from equity securities still held at period end, recorded within “Other income (loss),” was $(1.5) million, $(0.3) million and $(0.8) million during the years ended December 31, 2022, 2021 and 2020, respectively. Commercial Mortgage and Other Loans The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: December 31, 2022 December 31, 2021 Amount % of Amount % of Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 62,434 42.0 % $ 42,188 36.4 % Hospitality 12,996 8.7 13,709 11.8 Industrial 17,132 11.5 17,356 15.0 Office 10,568 7.1 16,880 14.6 Other 7,767 5.2 7,927 6.8 Retail 22,123 14.9 15,511 13.4 Total commercial mortgage loans 133,020 89.4 113,571 98.0 Agricultural property loans 15,567 10.6 2,251 2.0 Total commercial mortgage and agricultural property loans 148,587 100.0 % 115,822 100.0 % Allowance for credit losses (408) (246) Total net commercial mortgage and agricultural property loans $ 148,179 $ 115,576 As of December 31, 2022, the commercial mortgage and agricultural property loans were secured by properties geographically dispersed throughout the United States with the largest concentrations in Florida (12%), New York (10%), Oregon (9%) and included loans secured by properties in Europe (3%) and Mexico (3%). The following table sets forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated: Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Balance at December 31, 2019 $ 164 $ 1 $ 165 Cumulative effect of adoption of ASU 2016-13 204 0 204 Addition to (release of) allowance for expected losses 72 (1) 71 Balance at December 31, 2020 $ 440 $ 0 $ 440 Addition to (release of) allowance for expected losses (194) 0 (194) Balance at December 31, 2021 $ 246 $ 0 $ 246 Addition to (release of) allowance for expected losses 159 3 162 Balance at December 31, 2022 $ 405 $ 3 $ 408 See Note 2 for additional information about the Company's methodology for developing our allowance and expected losses. For the year ended December 31, 2022, the net increase in the allowance for credit losses on commercial mortgage and other loans was primarily related to an increase in the general allowance due to declining market conditions and loan originations. For the year ended December 31, 2021, the net decrease in the allowance for credit losses on commercial mortgage and other loans was primarily related to the improving credit environment. The following tables set forth key credit quality indicators based upon the recorded investment gross of allowance for credit losses, as of the dates indicated: December 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total (in thousands) Commercial mortgage loans Loan-to-Value Ratio: 0%-59.99% $ 20,000 $ 792 $ 0 $ 9,993 $ 1,387 $ 48,812 $ 80,984 60%-69.99% 15,000 1,615 2,198 18,982 0 1,016 38,811 70%-79.99% 0 347 0 3,855 0 7,213 11,415 80% or greater 0 0 0 0 0 1,810 1,810 Total $ 35,000 $ 2,754 $ 2,198 $ 32,830 $ 1,387 $ 58,851 $ 133,020 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 35,000 $ 2,754 $ 2,198 $ 27,697 $ 1,387 $ 40,285 $ 109,321 1.0 - 1.2x 0 0 0 0 0 8,809 8,809 Less than 1.0x 0 0 0 5,133 0 9,757 14,890 Total $ 35,000 $ 2,754 $ 2,198 $ 32,830 $ 1,387 $ 58,851 $ 133,020 Agricultural property loans Loan-to-Value Ratio: 0%-59.99% $ 1,078 $ 1,092 $ 0 $ 0 $ 0 $ 1,052 $ 3,222 60%-69.99% 12,345 0 0 0 0 0 12,345 70%-79.99% 0 0 0 0 0 0 0 80% or greater 0 0 0 0 0 0 0 Total $ 13,423 $ 1,092 $ 0 $ 0 $ 0 $ 1,052 $ 15,567 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 13,423 $ 1,092 $ 0 $ 0 $ 0 $ 1,052 $ 15,567 1.0 - 1.2x 0 0 0 0 0 0 0 Less than 1.0x 0 0 0 0 0 0 0 Total $ 13,423 $ 1,092 $ 0 $ 0 $ 0 $ 1,052 $ 15,567 December 31, 2021 Amortized Cost by Origination Year 2021 2020 2019 2018 2017 Prior Total (in thousands) Commercial mortgage loans Loan-to-Value Ratio: 0%-59.99% $ 360 $ 0 $ 7,203 $ 1,433 $ 8,836 $ 50,537 $ 68,369 60%-69.99% 2,066 2,198 24,368 0 1,016 8,524 38,172 70%-79.99% 347 0 3,855 0 0 1,870 6,072 80% or greater 0 0 0 0 958 0 958 Total $ 2,773 $ 2,198 $ 35,426 $ 1,433 $ 10,810 $ 60,931 $ 113,571 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 2,773 $ 2,198 $ 30,009 $ 1,433 $ 5,671 $ 42,469 $ 84,553 1.0 - 1.2x 0 0 0 0 958 9,186 10,144 Less than 1.0x 0 0 5,417 0 4,181 9,276 18,874 Total $ 2,773 $ 2,198 $ 35,426 $ 1,433 $ 10,810 $ 60,931 $ 113,571 Agricultural property loans Loan-to-Value Ratio: 0%-59.99% $ 1,126 $ 0 $ 0 $ 0 $ 0 $ 1,125 $ 2,251 60%-69.99% 0 0 0 0 0 0 0 70%-79.99% 0 0 0 0 0 0 0 80% or greater 0 0 0 0 0 0 0 Total $ 1,126 $ 0 $ 0 $ 0 $ 0 $ 1,125 $ 2,251 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 1,126 $ 0 $ 0 $ 0 $ 0 $ 1,125 $ 2,251 1.0 - 1.2x 0 0 0 0 0 0 0 Less than 1.0x 0 0 0 0 0 0 0 Total $ 1,126 $ 0 $ 0 $ 0 $ 0 $ 1,125 $ 2,251 See Note 2 for additional information about the Company’s commercial mortgage and other loans credit quality monitoring process. 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: December 31, 2022 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 $ 133,020 $ 0 $ 0 $ 0 $ 133,020 $ 0 Agricultural property loans 15,567 0 0 0 15,567 0 Total $ 148,587 $ 0 $ 0 $ 0 $ 148,587 $ 0 (1) As of December 31, 2022, 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. December 31, 2021 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 $ 113,571 $ 0 $ 0 $ 0 $ 113,571 $ 0 Agricultural property loans 2,251 0 0 0 2,251 0 Total $ 115,822 $ 0 $ 0 $ 0 $ 115,822 $ 0 (1) As of December 31, 2021, 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. For the year ended December 31, 2022, there were $3.4 million of commercial mortgage and other loans acquired, other than those through direct origination, and there were $3.8 million of commercial mortgage and other loans sold. For the year ended December 31, 2021, 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. The Company did not have any commercial mortgage and other loans purchased with credit deterioration, as of both December 31, 2022 and 2021. Other Invested Assets The following table sets forth the composition of “Other invested assets,” as of the dates indicated: December 31, 2022 2021 (in thousands) Company's investment in separate accounts $ 0 $ 4,053 LPs/LLCs: Equity method: Private equity 74,468 63,705 Hedge funds 42,472 38,216 Real estate-related 10,199 8,326 Subtotal equity method 127,139 110,247 Fair value: Private equity 279 400 Hedge funds 55 66 Real estate-related 2,055 2,374 Subtotal fair value 2,389 2,840 Total LPs/LLCs 129,528 113,087 Derivative instruments 0 7,187 Total other invested assets $ 129,528 $ 124,327 Equity Method Investments The following tables set forth summarized combined financial information for significant LP/LLC interests accounted for under the equity method. Changes between periods in the tables below reflect changes in the activities within the LPs/LLCs, as well as changes in the Company’s level of investment in such entities. December 31, 2022 2021 (in thousands) STATEMENTS OF FINANCIAL POSITION Total assets(1) $ 2,012,092 $ 1,950,577 Total liabilities $ 0 $ 0 Partners’ capital 2,012,092 1,950,577 Total liabilities and partners’ capital $ 2,012,092 $ 1,950,577 Total liabilities and partners’ capital included above $ 37,626 $ 36,671 Equity in LP/LLC interests not included above 89,513 73,576 Carrying value $ 127,139 $ 110,247 (1) Amount represents gross assets of each fund where the Company has a significant investment. These assets consist primarily of investments in securities and other miscellaneous assets. Years Ended December 31, 2022 2021 2020 (in thousands) STATEMENTS OF OPERATIONS Total revenue(1) $ 51,084 $ 154,144 $ 168,120 Total expenses 0 0 0 Net earnings (losses) $ 51,084 $ 154,144 $ 168,120 Equity in net earnings (losses) included above $ 955 $ 2,898 $ 3,144 Equity in net earnings (losses) of LP/LLC interests not included above 5,836 16,814 3,858 Total equity in net earnings (losses) $ 6,791 $ 19,712 $ 7,002 (1) Amount represents gross revenue of each fund where the Company has a significant investment. This revenue consists of income from investments in securities and other income. Accrued Investment Income The following table sets forth the composition of “Accrued investment income,” as of the dates indicated: December 31, 2022 2021 (in thousands) Fixed maturities $ 18,653 $ 16,561 Equity securities 1 1 Commercial mortgage and other loans 352 301 Policy loans 5,612 5,670 Short-term investments and cash equivalents 604 6 Total accrued investment income $ 25,222 $ 22,539 There were $0.0 million and $0.1 million of write-downs on accrued investment income for the years ended December 31, 2022 and 2021. Net Investment Income The following table sets forth “Net investment income” by investment type, for the periods indicated: Years Ended December 31, 2022 2021 2020 (in thousands) Fixed maturities, available-for-sale $ 73,656 $ 65,882 $ 61,250 Fixed maturities, trading 1,012 827 542 Equity securities 364 363 363 Commercial mortgage and other loans 4,609 5,654 5,485 Policy loans 10,427 11,414 11,597 Other invested assets 8,873 20,660 7,509 Short-term investments and cash equivalents 3,384 46 431 Gross investment income 102,325 104,846 87,177 Less: investment expenses (3,933) (4,355) (4,182) Net investment income $ 98,392 $ 100,491 $ 82,995 There were no non-income producing assets as of December 31, 2022. Non-income producing assets represent investments that had not produced income for the twelve months preceding December 31, 2022. Realized Investment Gains (Losses), Net The following table sets forth “Realized investment gains (losses), net” by investment type, for the periods indicated: Years Ended December 31, 2022 2021 2020 (in thousands) Fixed maturities(1) $ (4,032) $ (1,874) $ (672) Commercial mortgage and other loans (153) 194 (71) Other invested assets (51) 625 (51) Derivatives(2) 18,123 1,549 2,721 Short-term investments and cash equivalents (52) 21 (56) Realized investment gains (losses), net(2) $ 13,835 $ 515 $ 1,871 (1) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading. (2) Amounts for the years ended December 31, 2022 and 2021 were adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. Net Unrealized Gains (Losses) on Investments within AOCI The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated: December 31, 2022 2021 2020 (in thousands) Fixed maturity securities, available-for-sale without an allowance $ (270,867) $ 174,945 $ 258,325 Derivatives designated as cash flow hedges(1) 14,102 5,407 (2,998) Affiliated notes 59 194 254 Other investments 122 260 143 Net unrealized gains (losses) on investments $ (256,584) $ 180,806 $ 255,724 (1) 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 both December 31, 2022 and 2021, the Company had no repurchase agreements. Securities Pledged, Restricted Assets and Special Deposits The Company pledges as collateral investment securities it owns to unaffiliated parties through certain transactions, including securities lending, securities sold under agreements to repurchase, collateralized borrowings and postings of collateral with derivative counterparties. In the normal course of its business activities, the Company accepts collateral that can be sold or repledged. The primary sources of this collateral are securities purchased under agreements to resell. As of both December 31, 2022 and 2021, there were no collateral that could be sold or repledged. As of December 31, 2022 and 2021, there were available-for-sale fixed maturities of $0.0 million and $0.5 million, respectively, on deposit with governmental authorities or trustees as required by certain insurance laws. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | . DERIVATIVES AND HEDGING Types of Derivative Instruments and Derivative Strategies Interest Rate Contracts Interest rate swaps are used by the Company to reduce risks from changes in interest rates, manage interest rate exposures arising from mismatches between assets and liabilities and to hedge against changes in their values it owns or anticipates acquiring or selling. Swaps may be attributed to specific assets or liabilities or to a portfolio of assets or liabilities. Under interest rate swaps, the Company agrees with counterparties to exchange, at specified intervals, the difference between fixed-rate and floating-rate interest amounts calculated by reference to an agreed upon notional principal amount. Equity Contracts Equity options are used by the Company to manage its exposure to the equity markets which impacts the value of assets and liabilities it owns or anticipates acquiring or selling. Equity index options are contracts which will settle in cash based on differentials in the underlying indices at the time of exercise and the strike price. The Company uses combinations of purchases and sales of equity index options to hedge the effects of adverse changes in equity indices within a predetermined range. Foreign Exchange Contracts Currency derivatives, including currency swaps and forwards, are used by the Company to reduce risks from changes in currency exchange rates with respect to investments denominated in foreign currencies that the Company either holds or intends to acquire or sell. Under currency forwards, the Company agrees with counterparties to deliver a specified amount of an identified currency at a specified future date. Typically, the price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. The Company executes forward sales of the hedged currency in exchange for U.S. dollars at a specified exchange rate. The maturities of these forwards correspond with the future periods in which the non-U.S. dollar-denominated earnings are expected to be generated. Under currency swaps, the Company agrees with counterparties to exchange, at specified intervals, the difference between one currency and another at an exchange rate and calculated by reference to an agreed principal amount. Generally, the principal amount of each currency is exchanged at the beginning and termination of the currency swap by each party. Credit Contracts The Company writes credit protection to gain exposure similar to investment in public fixed maturity cash instruments. With these credit derivatives the Company sells credit protection on a single name reference, or certain index reference, and in return receives a quarterly premium. This premium or credit spread generally corresponds to the difference between the yield on the referenced name (or an index’s referenced names) public fixed maturity cash instruments and swap rates, at the time the agreement is executed. If there is an event of default by the referenced name or one of the referenced names in the index, as defined by the agreement, then the Company is obligated to pay the referenced amount of the contract to the counterparty and receive in return the referenced defaulted security or similar security or (in the case of a credit default index) pay the referenced amount less the auction recovery rate. In addition to selling credit protection, the Company purchases credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio. Embedded Derivatives The Company offers certain products (for example, index-linked universal life), which may include features that are accounted for as embedded derivatives. Related to certain of these derivatives, the Company has entered into reinsurance agreements with an affiliate, Prudential Insurance, effective April 1, 2016. See Note 11 for additional information on the reinsurance agreements. These embedded derivatives and reinsurance agreements, also accounted for as derivatives, are carried at fair value and marked to market through “Realized investment gains (losses), net” based on the change in value of the underlying contractual guarantees, which are determined using valuation models, as described in Note 5. 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. Many derivative instruments contain multiple underlying risks. The fair value amounts below represent the value of derivative contracts prior to taking into account of the netting effects of master netting agreements and cash collateral. December 31, 2022 December 31, 2021 Primary Underlying Risk/Instrument Type Gross Fair Value Gross Fair Value Assets Liabilities Assets Liabilities (in thousands) Derivatives Designated as Hedge Accounting Instruments: Currency/Interest Rate Foreign Currency Swaps $ 117,015 $ 14,281 $ (516) $ 124,950 $ 4,416 $ (291) Total Derivatives Designated as Hedge Accounting Instruments: $ 117,015 $ 14,281 $ (516) $ 124,950 $ 4,416 $ (291) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 30,200 $ 0 $ (383) $ 30,200 $ 2,757 $ 0 Credit Credit Default Swaps 0 0 0 0 0 0 Currency/Interest Rate Foreign Currency Swaps 24,035 2,957 0 35,204 2,685 (637) Foreign Currency Foreign Currency Forwards 7,520 3 (368) 4,667 66 (9) Equity Equity Options 509,200 555 (20,562) 488,850 18,761 (20,561) Total Derivatives Not Qualifying as Hedge Accounting Instruments: $ 570,955 $ 3,515 $ (21,313) $ 558,921 $ 24,269 $ (21,207) Total Derivatives(1)(2) $ 687,970 $ 17,796 $ (21,829) $ 683,871 $ 28,685 $ (21,498) (1) Excludes embedded derivatives which contain multiple underlying risks. The fair value of these embedded derivatives was a net liability of $108 million and $153 million as of December 31, 2022 and 2021, respectively included in “Policyholders’ account balances". (2) Recorded in "Other invested assets" and "Payables to parent and affiliates" on the Statements of Financial Position. Offsetting Assets and Liabilities The following table presents recognized derivative instruments (excluding embedded derivatives), and repurchase and reverse repurchase agreements that are offset in the 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 Statements of Financial Position. December 31, 2022 Gross Gross Net Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 17,796 $ (17,796) $ 0 $ 0 $ 0 Securities purchased under agreements to resell 0 0 0 0 0 Total Assets $ 17,796 $ (17,796) $ 0 $ 0 $ 0 Offsetting of Financial Liabilities: Derivatives $ 21,829 $ (17,796) $ 4,033 $ (4,033) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 21,829 $ (17,796) $ 4,033 $ (4,033) $ 0 December 31, 2021 Gross Gross Net Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 28,685 $ (21,498) $ 7,187 $ (7,187) $ 0 Securities purchased under agreements to resell 0 0 0 0 0 Total Assets $ 28,685 $ (21,498) $ 7,187 $ (7,187) $ 0 Offsetting of Financial Liabilities: Derivatives $ 21,498 $ (21,498) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 21,498 $ (21,498) $ 0 $ 0 $ 0 (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 15. 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 Financial Statements. 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 or equity 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. Year Ended December 31, 2022 Realized Net Other Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 1,802 $ 1,891 $ 1,202 $ 8,695 Total cash flow hedges 1,802 1,891 1,202 8,695 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (2,666) 0 0 0 Currency 493 0 0 0 Currency/Interest Rate 2,100 0 35 0 Credit 0 0 0 0 Equity (13,420) 0 0 0 Embedded Derivatives 29,814 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments 16,321 0 35 0 Total $ 18,123 $ 1,891 $ 1,237 $ 8,695 Year Ended December 31, 2021 Realized Net Other Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 245 $ 1,583 $ 464 $ 8,405 Total cash flow hedges 245 1,583 464 8,405 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (815) 0 0 0 Currency 252 0 0 0 Currency/Interest Rate 2,519 0 6 0 Credit (4) 0 0 0 Equity 8,334 0 0 0 Embedded Derivatives (8,982) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments 1,304 0 6 0 Total $ 1,549 $ 1,583 $ 470 $ 8,405 Year Ended December 31, 2020 Realized Net Other Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 106 $ 1,868 $ (1,016) $ (6,191) Total cash flow hedges 106 1,868 (1,016) (6,191) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 1,919 0 0 0 Currency (174) 0 0 0 Currency/Interest Rate (894) 0 (25) 0 Credit (88) 0 0 0 Equity 4,603 0 0 0 Embedded Derivatives (2,751) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments 2,615 0 (25) 0 Total $ 2,721 $ 1,868 $ (1,041) $ (6,191) (1) Amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. Presented below is a rollforward of current period cash flow hedges in AOCI before taxes: (in thousands) Balance, December 31, 2019 $ 3,193 Amount recorded in AOCI Currency/Interest Rate (5,233) Total amount recorded in AOCI (5,233) Amount reclassified from AOCI to income Currency/Interest Rate (958) Total amount reclassified from AOCI to income (958) Balance, December 31, 2020 $ (2,998) Amount recorded in AOCI Currency/Interest Rate 10,697 Total amount recorded in AOCI 10,697 Amount reclassified from AOCI to income Currency/Interest Rate (2,292) Total amount reclassified from AOCI to income (2,292) Balance, December 31, 2021 $ 5,407 Amount recorded in AOCI Currency/Interest Rate 13,590 Total amount recorded in AOCI 13,590 Amount reclassified from AOCI to income Currency/Interest Rate (4,895) Total amount reclassified from AOCI to income (4,895) Balance, December 31, 2022 $ 14,102 The changes in fair value of cash flow hedges are deferred in AOCI and are included in “Net unrealized investment gains (losses)” in the Statements of Operations and Comprehensive Income (Loss); these amounts are then reclassified to earnings when the hedged item affects earnings. Using December 31, 2022 values, it is estimated that a pre-tax gain of $1.8 million is expected to be reclassified from AOCI to earnings during the subsequent twelve months ending December 31, 2023. 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. There were no material amounts reclassified from AOCI 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. Credit Derivatives The Company has no exposure from credit derivative positions where it has written or purchased credit protection as of December 31, 2022 and 2021. Counterparty Credit Risk The Company is exposed to credit-related losses in the event of non-performance by counterparties to financial derivative transactions with a positive fair value. The Company manages credit risk by entering into derivative transactions with regulated derivatives exchanges for exchange traded derivatives and its affiliate, Prudential Global Funding LLC (“PGF”), related to its 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 | 12 Months Ended |
Dec. 31, 2022 | |
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. The Company’s Level 1 assets and liabilities primarily include short-term investments. 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. The Company’s Level 2 assets and liabilities include: fixed maturities (corporate public and private bonds, most government securities, certain asset-backed and mortgage-backed securities, etc.), certain equity securities (mutual funds, which do not trade in active markets because they are not publicly available), certain cash equivalents (primarily commercial paper), short-term investments and certain OTC derivatives. 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. The Company’s Level 3 assets and liabilities primarily include: certain private fixed maturities and equity securities, certain manually priced public fixed maturities, certain highly structured OTC derivative contracts, contracts or contract features pertaining to living benefit features (market risk benefits) of the Company's variable annuity contracts and embedded derivatives associated with the index-linked features of certain universal life and annuity products. 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. December 31, 2022 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 $ 61,136 $ 0 $ $ 61,136 Obligations of U.S. states and their political subdivisions 0 159,215 0 159,215 Foreign government bonds 0 71,963 0 71,963 U.S. corporate public securities 0 883,405 0 883,405 U.S. corporate private securities 0 168,638 3,803 172,441 Foreign corporate public securities 0 112,962 0 112,962 Foreign corporate private securities 0 112,035 0 112,035 Asset-backed securities(2) 0 18,374 0 18,374 Commercial mortgage-backed securities 0 95,190 20,701 115,891 Residential mortgage-backed securities 0 12,066 0 12,066 Subtotal 0 1,694,984 24,504 1,719,488 Market risk benefit assets(3) 0 0 558,624 558,624 Fixed maturities, trading 0 23,782 0 23,782 Equity securities 0 67 4,291 4,358 Short-term investments 0 3,000 0 3,000 Cash equivalents 0 245,302 0 245,302 Other invested assets(4) 0 17,796 0 (17,796) 0 Receivables from parent and affiliates 0 688 0 688 Subtotal excluding separate account assets 0 1,985,619 587,419 (17,796) 2,555,242 Separate account assets(5)(6) 0 12,014,623 0 12,014,623 Total assets $ 0 $ 14,000,242 $ 587,419 $ (17,796) $ 14,569,865 Market risk benefit liabilities(3) $ 0 $ 0 $ 558,624 $ $ 558,624 Policyholders' account balances 0 0 108,144 108,144 Payables to parent and affiliates 0 21,829 0 (17,796) 4,033 Total liabilities $ 0 $ 21,829 $ 666,768 $ (17,796) $ 670,801 December 31, 2021 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 $ 13,505 $ 0 $ $ 13,505 Obligations of U.S. states and their political subdivisions 0 179,010 0 179,010 Foreign government bonds 0 100,791 0 100,791 U.S. corporate public securities 0 1,022,585 0 1,022,585 U.S. corporate private securities 0 199,070 2,605 201,675 Foreign corporate public securities 0 113,183 0 113,183 Foreign corporate private securities 0 121,644 21,714 143,358 Asset-backed securities(2) 0 17,277 0 17,277 Commercial mortgage-backed securities 0 114,081 27,274 141,355 Residential mortgage-backed securities 0 2,859 0 2,859 Subtotal 0 1,884,005 51,593 1,935,598 Market risk benefit assets(3) 0 0 940,706 940,706 Fixed maturities, trading 0 36,456 0 36,456 Equity securities 0 125 5,812 5,937 Short-term investments 9,997 0 0 9,997 Cash equivalents 0 128,719 0 128,719 Other invested assets(4) 0 28,685 0 (21,498) 7,187 Receivables from parent and affiliates 0 788 0 788 Subtotal excluding separate account assets 9,997 2,078,778 998,111 (21,498) 3,065,388 Separate account assets(5)(6) 0 15,731,959 0 15,731,959 Total assets $ 9,997 $ 17,810,737 $ 998,111 $ (21,498) $ 18,797,347 Market risk benefit liabilities(3) $ 0 $ 0 $ 940,706 $ $ 940,706 Policyholders' account balances 0 0 153,127 153,127 Payables to parent and affiliates 0 21,498 0 (21,498) 0 Total liabilities $ 0 $ 21,498 $ 1,093,833 $ (21,498) $ 1,093,833 (1) “Netting” amounts represent cash collateral of $0 million as of both December 31, 2022 and 2021. (2) Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (3) Amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. (4) 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 December 31, 2022 and 2021, the fair values of such investments were $2.4 million and $2.8 million, respectively. (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). At December 31, 2022 and 2021, the fair value of such investments was $1,912 million and $2,190 million, respectively. (6) 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 Statements of Financial Position. The methods and assumptions the Company uses to estimate the fair value of assets and liabilities measured at fair value on a recurring basis are summarized below. Fixed Maturity Securities – The fair values of the Company’s public fixed maturity securities are generally based on prices obtained from independent pricing services. Prices for each security are generally sourced from multiple pricing vendors, and a vendor hierarchy is maintained by asset type based on historical pricing experience and vendor expertise. The Company ultimately uses the price from the pricing service highest in the vendor hierarchy based on the respective asset type. The pricing hierarchy is updated for new financial products and recent pricing experience with various vendors. Consistent with the fair value hierarchy described above, securities with validated quotes from pricing services are generally reflected within Level 2, as they are primarily based on observable pricing for similar assets and/or other market observable inputs. Typical inputs used by these pricing services include but are not limited to, reported trades, benchmark yields, issuer spreads, bids, offers, and/or estimated cash flow, prepayment speeds, and default rates. If the pricing information received from third-party pricing services is deemed not reflective of market activity or other inputs observable in the market, the Company may challenge the price through a formal process with the pricing service or classify the securities as Level 3. If the pricing service updates the price to be more consistent with the presented market observations, the security remains within Level 2. Internally-developed valuations or indicative broker quotes are also used to determine fair value in circumstances where vendor pricing is not available, or where the Company ultimately concludes that pricing information received from the independent pricing services is not reflective of market activity. If the Company concludes the values from both pricing services and brokers are not reflective of market activity, it may override the information with an internally-developed valuation. As of December 31, 2022 and 2021, overrides on a net basis were not material. Pricing service overrides, internally-developed valuations and indicative broker quotes are generally included in Level 3 in the fair value hierarchy. The Company conducts several specific price monitoring activities. Daily analyses identify price changes over predetermined thresholds defined at the financial instrument level. Various pricing integrity reports are reviewed on a daily and monthly basis to determine if pricing is reflective of market activity or if it would warrant any adjustments. Other procedures performed include, but are not limited to, reviews of third-party pricing services methodologies, reviews of pricing trends and back testing. The fair values of private fixed maturities, which are originated by internal private asset managers, are primarily determined using discounted cash flow models. These models primarily use observable inputs that include Treasury or similar base rates plus estimated credit spreads to value each security. The credit spreads are obtained through a survey of private market intermediaries who are active in both primary and secondary transactions, and consider, among other factors, the credit quality and the reduced liquidity associated with private placements. Internal adjustments are made to reflect variation in observed sector spreads. Since most private placements are valued using standard market observable inputs and inputs derived from, or corroborated by, market observable data including, but not limited to observed prices and spreads for similar publicly or privately traded issues, they have been reflected within Level 2. For certain private fixed maturities, the discounted cash flow model may incorporate significant unobservable inputs, which reflect the Company’s own assumptions about the inputs that market participants would use in pricing the asset. To the extent management determines that such unobservable inputs are significant to the price of a security, a Level 3 classification is made. Equity Securities – Equity securities consist principally of investments in common and preferred stock of publicly traded companies, privately traded securities, as well as mutual fund shares. The fair values of most publicly traded equity securities are based on quoted market prices in active markets for identical assets and are classified within Level 1 in the fair value hierarchy. Estimated fair values for most privately traded equity securities are determined using discounted cash flow, earnings multiple and other valuation models that require a substantial level of judgment around inputs and therefore are classified within Level 3. The fair values of mutual fund shares that transact regularly (but do not trade in active markets because they are not publicly available) are based on transaction prices of identical fund shares and are classified within Level 2 in the fair value hierarchy. Derivative Instruments – Derivatives are recorded at fair value either as assets within “Other invested assets”, or as liabilities within “Payables to parent and affiliates”, except for embedded derivatives which are recorded with the associated host contract. The fair values of derivative contracts can be affected by changes in interest rates, foreign exchange rates, credit spreads, market volatility, expected returns, NPR, liquidity and other factors. The Company's exchange-traded futures and options include treasury and equity futures. Exchange-traded futures and options are valued using quoted prices in active markets and are classified within Level 1 in the fair value hierarchy. The majority of the Company’s derivative positions are traded in the OTC derivative market and are classified within Level 2 in the fair value hierarchy. OTC derivatives classified within Level 2 are valued using models that utilize actively quoted or observable market inputs from external market data providers, third-party pricing vendors and/or recent trading activity. The Company’s policy is to use mid-market pricing in determining its best estimate of fair value. The fair values of most OTC derivatives, including interest rate and cross-currency swaps, currency forward contracts and credit default swaps are determined using discounted cash flow models. The fair values of European style option contracts are determined using Black-Scholes option pricing models. These models’ key inputs include the contractual terms of the respective contract, along with significant observable inputs, including interest rates, currency rates, credit spreads, equity prices, index dividend yields, NPR, volatility and other factors. The Company’s cleared interest rate swaps and credit derivatives linked to an index are valued using models that utilize actively quoted or observable market inputs, including the secured overnight financing rate ("SOFR"), obtained from external market data providers, third-party pricing vendors and/or recent trading activity. These derivatives are classified as Level 2 in the fair value hierarchy. Cash Equivalents and Short-Term Investments – Cash equivalents and short-term investments include money market instruments, commercial paper and other highly liquid debt instruments. Certain money market instruments are valued using unadjusted quoted prices in active markets that are accessible for identical assets and are primarily classified as Level 1. The remaining instruments in this category are generally fair valued based on market observable inputs, and these investments have primarily been classified within Level 2. Separate Account Assets – Separate account assets include fixed maturity securities, treasuries, equity securities, real estate, mutual funds and commercial mortgage loans for which values are determined consistent with similar instruments described above under “Fixed Maturity Securities” and “Equity Securities”. Receivables from Parent and Affiliates – Receivables from parent and affiliates carried at fair value include affiliated bonds within the Company’s legal entity where fair value is determined consistent with similar securities described above under “Fixed Maturity Securities” managed by affiliated asset managers. Market Risk Benefits – As a result of the adoption of ASU 2018-12 in the first quarter of 2023, the Company is required to measure all market risk benefits (e.g., living benefit and death benefit guarantees associated with variable annuities) at fair value. Market risk benefit liabilities (or assets) represent contracts or contract features that provide protection to the contractholder and exposes the Company to other than nominal capital market risk, primarily related to deferred annuities with guaranteed minimum benefits in the annuities products including GMDB, GMIB, GMAB, GMWB and GMIWB. The benefits are bundled together and accounted for as single compound market risk benefits using a fair value measurement framework. The fair value of these market risk benefits is calculated as the present value of expected future benefit payments to contract holders less the present value of expected future rider fees attributable to the market risk benefit. The fair value of these benefit features is based on assumptions a market participant would use in valuing market risk benefits. This methodology could result in either a liability or asset balance, given changing capital market conditions and various actuarial assumptions. Since there is no observable active market for the transfer of these obligations, the valuations are calculated using internally-developed models with option pricing techniques. The models are based on a risk neutral valuation framework and incorporate premiums for risks inherent in valuation techniques, inputs, and the general uncertainty around the timing and amount of future cash flows. The determination of these risk premiums requires the use of management’s judgment. The significant inputs to the valuation models for these market risk benefits include capital market assumptions, such as interest rate levels and volatility assumptions, the Company’s market-perceived NPR, as well as actuarially determined assumptions, including contractholder behavior, such as lapse rates, benefit utilization rates, withdrawal rates, and mortality rates. Since many of these assumptions are unobservable and are considered to be significant inputs to the valuations, the assets and liabilities included in market risk benefits have been reflected within Level 3 in the fair value hierarchy. Capital market inputs and actual policyholders’ account values are updated each quarter based on capital market conditions as of the end of the quarter, including interest rates, equity markets and volatility. In the risk neutral valuation, the initial swap curve drives the total return used to grow the policyholders’ account values. The Company’s discount rate assumption is based on the SOFR swap curve adjusted for an additional spread relative to SOFR to reflect the Company’s market-perceived 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 the Company issued 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 funding agreements, living benefit guarantees, and index-linked interest crediting guarantees are insurance liabilities and are therefore senior to debt. Actuarial assumptions, including contractholder behavior and mortality, are reviewed at least annually, and updated based upon company emerging experience and industry studies, future expectations and other data, including any observable market data. These assumptions are generally updated annually unless a material change that the Company feels is indicative of a long-term trend is observed in an interim period. Policyholders' Account Balances – The liability for policyholders’ account balances is related to certain embedded derivative instruments associated with certain universal life products that provide policyholders with index-linked interest credited over contract specified term periods. The fair values of these liabilities are determined using discounted cash flow models which include capital market assumptions such as interest rates and equity index volatility assumptions, the Company’s market-perceived NPR and actuarially determined assumptions for mortality, lapses and projected hedge costs. As there is no observable active market for these liabilities, the fair value is determined as the present value of account balances paid to policyholders in excess of contractually guaranteed minimums using option pricing techniques for index term periods that contain deposits as of the valuation date, and the expected option cost for future index term periods, where the terms of index crediting rates have not yet been declared by the Company. Premiums for risks inherent in valuation techniques, inputs, and the general uncertainty around the timing and amount of future cash flows are also incorporated in the fair value of these liabilities. Since the valuation of these liabilities require the use of management’s judgment to determine these risk premiums and the use of unobservable inputs, these liabilities are reflected within Level 3 in the fair value hierarchy. Capital market inputs, including interest rates and equity markets volatility, and actual policyholders’ account values are updated each quarter. Actuarial assumptions are reviewed at least annually and updated based upon emerging experience, future expectations and other data, including any observable market data. Aside from these annual updates, assumptions are generally updated only if a material change is observed in an interim period that the Company believes is indicative of a long-term trend. Quantitative Information Regarding Internally-Priced Level 3 Assets and Liabilities – The tables below present quantitative information regarding significant internally-priced Level 3 assets and liabilities. December 31, 2022 Fair Value Valuation Unobservable Inputs Minimum Maximum Weighted Impact of Increase (in thousands) Assets: Corporate securities(2) $ 3,803 Discounted cash flow Discount rate 10.18 % 10.18 % 10.18 % Decrease Commercial mortgage-backed securities $ 20,701 Discounted cash flow Liquidity premium 60 % 75 % 69.05% Decrease Market risk benefit assets(3)(4) $ 558,624 Discounted cash flow Lapse rate(5) 1 % 20 % Increase Spread over SOFR(6) 0.50 % 2.20 % Increase Utilization rate(7) 38 % 95 % Decrease Withdrawal rate See table footnote (8) below. Mortality rate(9) 0 % 15 % Increase Equity volatility curve 18 % 26 % Decrease Liabilities: Market risk benefit liabilities(3)(4) $ 558,624 Discounted cash flow Lapse rate(5) 1 % 20 % Decrease Spread over SOFR(6) 0.50 % 2.20 % Decrease Utilization rate(7) 38 % 95 % Increase Withdrawal rate See table footnote (8) below. Mortality rate(9) 0 % 15 % Decrease Equity volatility curve 18 % 26 % Increase Policyholders' account balances(10) $ 108,144 Discounted cash flow Lapse rate(5) 1 % 6 % Decrease Spread over SOFR(6) 0.53 % 2.26 % Decrease Mortality rate(9) 0 % 23 % Decrease Equity volatility curve 18 % 28 % Increase December 31, 2021 Fair Value Valuation Unobservable Inputs Minimum Maximum Weighted Impact of Increase (in thousands) Assets: Corporate securities(2) $ 24,319 Discounted cash flow Discount rate 2.41 % 3.99 % 2.62 % Decrease Liquidation Liquidation value 62.58 % 62.58 % 62.58 % Increase Market risk benefit assets(3)(4) $ 940,706 Discounted cash flow Lapse rate(5) 1 % 20 % Increase Spread over LIBOR(6) 0.03 % 1.13 % Increase Utilization rate(7) 39 % 96 % Decrease Withdrawal rate See table footnote (8) below. Mortality rate(9) 0 % 15 % Increase Equity volatility curve 16 % 25 % Decrease Liabilities: Market risk benefit liabilities(3)(4) $ 940,706 Discounted cash flow Lapse rate(5) 1 % 20 % Decrease Spread over LIBOR(6) 0.03 % 1.13 % Decrease Utilization rate(7) 39 % 96 % Increase Withdrawal rate See table footnote (8) below. Mortality rate(9) 0 % 15 % Decrease Equity volatility curve 16 % 25 % Increase Policyholders' account balances(10) $ 153,127 Discounted cash flow Lapse rate(5) 1 % 6 % Decrease Spread over LIBOR(6) 0.03 % 1.13 % Decrease Mortality rate(9) 0 % 23 % Decrease Equity volatility curve 12 % 27 % 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) Market risk benefits primarily represent fair value for all living benefit guarantees including accommodation, withdrawal and income benefits. Since the valuation methodology for these assets and 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) Amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. (5) Lapse rates for contracts with living benefit guarantees 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 for contracts with index-linked crediting guarantees may be adjusted at the contract level based on the applicability of any surrender charges, product type, and market related factors such as interest rates. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. For any given contract, lapse rates vary throughout the period over which cash flows are projected for the purposes of valuing these embedded derivatives. (6) The spread over the SOFR swap curve and the LIBOR swap curve represents the premium added to the proxy for the risk-free rate (SOFR or LIBOR, as applicable) to reflect the Company's estimates of rates that a market participant would use to value the living benefits in both the accumulation and payout phases and index-linked interest crediting guarantees as of December 31, 2022 and 2021, respectively. 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 funding agreements, living benefit guarantees, and index-linked interest crediting guarantees are insurance liabilities and are therefore senior to debt. (7) 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. (8) 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 December 31, 2022 and 2021, the minimum withdrawal rate assumption is 77% and 76%, respectively. As of December 31, 2022 and 2021, 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%. (9) The range reflects the mortality rates for the vast majority of business with living benefits and other contracts, with policyholders ranging from 50 to 90 years old. While the majority of living benefits have a minimum age requirement, certain other contracts do not have an age restriction. This results in contractholders with mortality rates approaching 0% for certain benefits. Mortality rates may vary by product, age and duration. A mortality improvement assumption is also incorporated into the overall mortality table. (10) Policyholders’ account balances primarily represent general account liabilities for the index-linked interest credited on certain of the Company’s life products that 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 a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. 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. Examples of such interrelationships for significant internally-priced Level 3 assets and liabilities are as follows: Corporate Securities - The rate used to discount future cash flows reflects current risk-free rates plus credit and liquidity spread requirements that market participants would use to value an asset. The discount rate may be influenced by many factors, including market cycles, expectations of default, collateral, term, and asset complexity. Each of these factors can influence discount rates, either in isolation, or in response to other factors. During weaker economic cycles, as the expectations of default increases, credit spreads widen, which results in a decrease in fair value. Commercial Mortgage-backed Securities - Interrelationships may exist between the prepayment rate, the default rate and/or loss severity, depending on specific market conditions. In stronger economic cycles, prepayment rates are generally driven by underlying property appreciation and subsequent cash-out refinances, while default rates and loss severity may be lower. During weaker economic cycles, prepayment rates may decline, while default rates and loss severity increase. Generally, a change in the assumption used for the probability of default would have been accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for prepayment rates. The impact of these factors on average life and economics varies with the deal structure and tranche subordination. Market Risk Benefits – The Company expects efficient benefit utilization and withdrawal rates to generally be correlated with lapse rates. However, behavior is generally highly dependent on the facts and circumstances surrounding the individual contractholder, such as their liquidity needs or tax situation, which could drive lapse behavior independent of other contractholder behavior assumptions. To the extent more efficient contractholder behavior results in greater in-the-moneyness at the contract level, lapse rates may decline for those contracts. Similarly, to the extent that increases in equity volatility are correlated with overall declines in the capital markets, lapse rates may decline as contracts become more in-the-money. 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 (excluding MRBs disclosed in Note 10). 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. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicativ |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs and Deferred Reinsurance | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Charges, Insurers [Abstract] | |
Deferred Policy Acquisition Costs and Deferred Reinsurance | DEFERRED POLICY ACQUISITION COSTS AND DEFERRED REINSURANCE Deferred Policy Acquisition Costs The following tables show a rollforward for the lines of business that contain DAC balances, along with a reconciliation to the Company's total DAC balance: Term Life Variable / Universal Life Total (in thousands) Balance, January 1, 2021 $ 51,527 $ 192,691 $ 244,218 Capitalization 17,427 65,297 82,724 Amortization expense (6,863) (11,335) (18,198) Other 0 0 0 Balance, December 31, 2021 $ 62,091 $ 246,653 $ 308,744 Capitalization 14,911 47,531 62,442 Amortization expense (6,737) (12,553) (19,290) Other (52) 30 (22) Balance, December 31, 2022 $ 70,213 $ 281,661 $ 351,874 2020 (in thousands) Balance, beginning of year $ 178,813 Capitalization of commissions, sales and issue expenses 76,544 Amortization-Impact of assumption and experience unlocking and true-ups (6,688) Amortization-All other (11,431) Change due to unrealized investment gains and losses (12,813) Balance, end of year 224,425 Transition adjustments(1) 19,793 Balance after transition, January 1, 2021 $ 244,218 (1) Adjustments for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. Deferred Reinsurance Losses The following tables show a rollforward of DRL balances for variable annuity products, which is the only line of business that contains a DRL balance, along with a reconciliation to the Company's total DRL balance: December 31, 2022 Variable Annuities (in thousands) Balance, beginning of period $ 18,977 Amortization expense (1,547) Other (5) Balance, end of period $ 17,425 December 31, 2021 Variable Annuities (in thousands) Balance, beginning of period $ 20,632 Amortization expense (1,655) Balance, end of period $ 18,977 |
Separate Accounts
Separate Accounts | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Separate Accounts | The Company issues variable annuity and variable life insurance contracts through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contractholder. Most variable annuity and variable life insurance contracts are offered with both separate and general account options. See Note 9 for additional information. The assets supporting the variable portion of variable annuity and variable life insurance contracts are carried at fair value and reported as “Separate account assets” with an equivalent amount reported as “Separate account liabilities”. The liabilities related to the net amount at risk are reflected within future policy benefits or market risk benefits. Amounts assessed against the contractholders for mortality, administration, and other services are included within revenue in “Policy charges and fee income” and changes in liabilities for minimum guarantees are generally included in “Policyholders’ benefits” or “Realized investment gains (losses), net”. Separate Account Assets The aggregate fair value of assets, by major investment asset category, supporting separate accounts is as follows: December 31, 2022 December 31, 2021 (in thousands) Asset Type: Mutual funds: Equity $ 7,430,452 $ 10,668,762 Fixed Income 3,973,001 4,306,815 Other 611,170 756,382 Other invested assets 1,912,335 2,190,408 Total $ 13,926,958 $ 17,922,367 For the periods ended December 31, 2022 and December 31, 2021, there were no transfers of assets, other than cash, from the general account to a separate account; therefore, no gains or losses were recorded. Separate Account Liabilities The balances of and changes in separate account liabilities as of and for the periods indicated are as follows: December 31, 2022 Variable Annuities Variable Life Total (in thousands) Balance, beginning of period $ 11,982,322 $ 5,940,045 $ 17,922,367 Deposits 67,216 200,686 267,902 Investment performance (2,113,606) (925,970) (3,039,576) Policy charges (238,173) (100,968) (339,141) Surrenders and withdrawals (764,069) (42,118) (806,187) Benefit payments (5,622) (42,934) (48,556) Net transfers (to) from general account (895) (37,577) (38,472) Other 1,395 7,226 8,621 Balance, end of period $ 8,928,568 $ 4,998,390 $ 13,926,958 Cash surrender value(1) $ 8,747,915 $ 4,897,409 $ 13,645,324 (1) Cash surrender value represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. December 31, 2021 Variable Annuities Variable Life Total (in thousands) Balance, beginning of period $ 11,963,399 $ 5,154,111 $ 17,117,510 Deposits 99,941 236,158 336,099 Investment performance 1,171,547 797,051 1,968,598 Policy charges (277,346) (98,839) (376,185) Surrenders and withdrawals (972,834) (58,845) (1,031,679) Benefit payments (7,378) (61,608) (68,986) Net transfers (to) from general account 4,108 (33,480) (29,372) Other 885 5,497 6,382 Balance, end of period $ 11,982,322 $ 5,940,045 $ 17,922,367 Cash surrender value(1) $ 11,749,197 $ 5,850,808 $ 17,600,005 (1) Cash surrender value represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. |
Liability for Future Policy Ben
Liability for Future Policy Benefits | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Liability for Future Policy Benefits | LIABILITY FOR FUTURE POLICY BENEFITS Liability for Future Policy Benefits primarily consists of the following sub-components, which are discussed in greater detail below. • Benefit Reserves; • Deferred Profit Liability; and • Additional Insurance Reserves Benefit Reserves The balances of and changes in Benefit Reserves as of and for the periods indicated consist of the three tables presented below: Present Value of Expected Net Premiums rollforward, Present Value of Expected Future Policy Benefits rollforward, and Net Liability for Future Policy Benefits. December 31, 2022 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 1,641,933 $ 0 $ 1,641,933 Effect of cumulative changes in discount rate assumptions, beginning of period (253,752) 0 (253,752) Balance at original discount rate, beginning of period 1,388,181 0 1,388,181 Effect of assumption update 174,263 0 174,263 Effect of actual variances from expected experience and other activity (29,416) (746) (30,162) Adjusted balance, beginning of period 1,533,028 (746) 1,532,282 Issuances 58,215 2,110 60,325 Net premiums / considerations collected (170,297) (1,364) (171,661) Interest accrual 69,424 0 69,424 Balance at original discount rate, end of period 1,490,370 0 1,490,370 Effect of cumulative changes in discount rate assumptions, end of period (73,563) 0 (73,563) Balance, end of period $ 1,416,807 $ 0 $ 1,416,807 December 31, 2022 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 3,041,562 $ 19,314 $ 3,060,876 Effect of cumulative changes in discount rate assumptions, beginning of period (561,455) (1,459) (562,914) Balance at original discount rate, beginning of period 2,480,107 17,855 2,497,962 Effect of assumption update 255,336 0 255,336 Effect of actual variances from expected experience and other activity (60,049) 149 (59,900) Adjusted balance, beginning of period 2,675,394 18,004 2,693,398 Issuances 58,215 2,111 60,326 Interest accrual 129,657 627 130,284 Benefit payments (173,998) (2,308) (176,306) Other adjustments (115) (75) (190) Balance at original discount rate, end of period 2,689,153 18,359 2,707,512 Effect of cumulative changes in discount rate assumptions, end of period (137,962) (1,899) (139,861) Balance, end of period $ 2,551,191 $ 16,460 $ 2,567,651 December 31, 2022 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, pre-flooring $ 1,134,384 $ 16,460 $ 1,150,844 Flooring impact, end of period 0 0 0 Balance, end of period, post-flooring 1,134,384 16,460 1,150,844 Less: Reinsurance recoverable 1,002,277 16,460 1,018,737 Balance after reinsurance recoverable, end of period, post-flooring $ 132,107 $ 0 $ 132,107 December 31, 2021 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 1,762,111 $ 0 $ 1,762,111 Effect of cumulative changes in discount rate assumptions, beginning of period (352,891) 0 (352,891) Balance at original discount rate, beginning of period 1,409,220 0 1,409,220 Effect of assumption update 5,651 0 5,651 Effect of actual variances from expected experience and other activity (13,285) 0 (13,285) Adjusted balance, beginning of period 1,401,586 0 1,401,586 Issuances 75,944 3,763 79,707 Net premiums / considerations collected (155,282) (3,763) (159,045) Interest accrual 65,933 0 65,933 Balance at original discount rate, end of period 1,388,181 0 1,388,181 Effect of cumulative changes in discount rate assumptions, end of period 253,752 0 253,752 Balance, end of period $ 1,641,933 $ 0 $ 1,641,933 December 31, 2021 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 3,212,658 $ 17,969 $ 3,230,627 Effect of cumulative changes in discount rate assumptions, beginning of period (753,963) (2,188) (756,151) Balance at original discount rate, beginning of period 2,458,695 15,781 2,474,476 Effect of assumption update 5,817 0 5,817 Effect of actual variances from expected experience and other activity (9,219) (297) (9,516) Adjusted balance, beginning of period 2,455,293 15,484 2,470,777 Issuances 75,944 3,763 79,707 Interest accrual 120,981 620 121,601 Benefit payments (171,572) (2,012) (173,584) Other adjustments (539) 0 (539) Balance at original discount rate, end of period 2,480,107 17,855 2,497,962 Effect of cumulative changes in discount rate assumptions, end of period 561,455 1,459 562,914 Balance, end of period $ 3,041,562 $ 19,314 $ 3,060,876 December 31, 2021 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, pre-flooring $ 1,399,629 $ 19,314 $ 1,418,943 Flooring impact, end of period 899 0 899 Balance, end of period, post-flooring 1,400,528 19,314 1,419,842 Less: Reinsurance recoverable 1,216,756 19,314 1,236,070 Balance after reinsurance recoverable, end of period, post-flooring $ 183,772 $ 0 $ 183,772 The following tables provide supplemental information related to the balances of and changes in Benefit Reserves included in the disaggregated tables above, on a gross (direct and assumed) basis, as of and for the periods indicated: December 31, 2022 Term Life Fixed Annuities ($ in thousands) Undiscounted expected future gross premiums $ 3,073,048 $ 0 Discounted expected future gross premiums (at original discount rate) $ 2,069,441 $ 0 Discounted expected future gross premiums (at current discount rate) $ 1,973,031 $ 0 Undiscounted expected future benefits and expenses $ 4,352,500 $ 24,056 Interest accrual $ 60,233 $ 627 Gross premiums $ 242,406 $ 1,700 Weighted-average duration of the liability in years (at original discount rate) 11 7 Weighted-average duration of the liability in years (at current discount rate) 10 6 Weighted-average interest rate (at original discount rate) 5.33 % 3.56 % Weighted-average interest rate (at current discount rate) 5.40 % 5.30 % December 31, 2021 Term Life Fixed Annuities ($ in thousands) Undiscounted expected future gross premiums $ 3,309,037 $ 0 Discounted expected future gross premiums (at original discount rate) $ 2,185,726 $ 0 Discounted expected future gross premiums (at current discount rate) $ 2,597,734 $ 0 Undiscounted expected future benefits and expenses $ 4,023,185 $ 23,747 Interest accrual $ 55,048 $ 620 Gross premiums $ 241,783 $ 4,553 Weighted-average duration of the liability in years (at original discount rate) 11 7 Weighted-average duration of the liability in years (at current discount rate) 11 7 Weighted-average interest rate (at original discount rate) 5.37 % 3.56 % Weighted-average interest rate (at current discount rate) 2.54 % 2.48 % For additional information regarding observable market information and the techniques used to determine the interest rate assumptions seen above, see Note 2. For non-participating traditional and limited-payment products, if a cohort is in a loss position where the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for the present value of expected future policy benefits and non-level claim settlement expenses, then the liability for future policy benefits is adjusted at that time, and thereafter such that all changes, both favorable and unfavorable, in expected benefits resulting from both actual experience deviations and changes in future assumptions are recognized immediately as a gain or loss. In 2022, there was an $11 million charge to net income for nonparticipating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts, mostly offset by a $10 million gain, reflecting the impact of ceded reinsurance on the affected cohorts. The unfavorable impact in 2022 was primarily due to unfavorable assumption updates related to individual term life products. In 2021, there was a $6 million charge to net income for nonparticipating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts, mostly offset by a $5 million gain, reflecting the impact of ceded reinsurance on the affected cohorts. The unfavorable impact in 2021 was primarily due to unfavorable mortality experience related to individual term life products. Deferred Profit Liability The balances of and changes in Deferred Profit Liability as of and for the periods indicated are as follows: December 31, 2022 December 31, 2021 Fixed Annuities (in thousands) Balance, beginning of period $ 1,726 $ 984 Effect of actual variances from expected experience and other activity (169) 98 Adjusted balance, beginning of period 1,557 1,082 Profits deferred 309 771 Interest accrual 60 60 Amortization (222) (187) Other adjustments (20) 0 Balance, end of period 1,684 1,726 Less: Reinsurance recoverable 1,684 1,726 Balance after reinsurance recoverable $ 0 $ 0 The following table provides supplemental information related to the balances of and changes in Deferred Profit Liability, included in the disaggregated table above, on a gross (direct and assumed) basis, as of and for the period indicated: December 31, 2022 December 31, 2021 Fixed Annuities (in thousands) Revenue(1) $ 42 $ (742) Interest accrual 60 60 (1) Represents the gross premiums collected in changes in deferred profit liability. Additional Insurance Reserves AIR represents the additional liability for annuitization, death, or other insurance benefits, including GMDB and GMIB contract features, that are above and beyond the contractholder's account balance. The following table shows a rollforward of AIR balances for variable and universal life products, for the periods indicated: December 31, 2022 December 31, 2021 (in thousands) Balance including amounts in AOCI, beginning of period, post-flooring $ 703,968 $ 642,514 Flooring impact and amounts in AOCI (71,467) (95,331) Balance, excluding amounts in AOCI, beginning of period, pre-flooring 632,501 547,183 Effect of assumption update 180,404 369 Effect of actual variances from expected experience and other activity (39,475) 8,089 Adjusted balance, beginning of period 773,430 555,641 Assessments collected(1) 134,822 62,891 Interest accrual 27,479 20,039 Benefits paid (17,138) (6,070) Balance, excluding amounts in AOCI, end of period, pre-flooring 918,593 632,501 Flooring impact and amounts in AOCI (91,115) 71,467 Balance, including amounts in AOCI, end of period, post-flooring 827,478 703,968 Less: Reinsurance recoverable 793,577 666,813 Balance after reinsurance recoverable, including amounts in AOCI, end of period $ 33,901 $ 37,155 (1) Represents the portion of gross assessments required to fund the future policy benefits. December 31, 2022 December 31, 2021 ($ in thousands) Interest accrual $ 27,479 $ 20,039 Gross assessments $ 303,979 $ 215,741 Weighted-average duration of the liability in years (at original discount rate) 28 26 Weighted-average interest rate (at original discount rate) 3.41 % 3.44 % Future Policy Benefits Reconciliation The following table presents the reconciliation of the ending balances from the above rollforwards, Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability including other liabilities, gross of related reinsurance recoverables, to the total liability for Future Policy Benefits as reported on the Company's Statements of Financial Position as of the periods indicated: December 31, 2022 December 31, 2021 (in thousands) Benefit reserves, end of period, post-flooring $ 1,150,844 $ 1,419,842 Additional insurance reserves, including amounts in AOCI, end of period, post-flooring 827,478 703,968 Deferred profit liability, end of period, post-flooring 1,684 1,726 Subtotal of amounts disclosed above 1,980,006 2,125,536 Other Future policy benefits reserves(1) 150,036 235,587 Total Future policy benefits $ 2,130,042 $ 2,361,123 (1) Represents balances for which disaggregated rollforward disclosures are not required, including unpaid claims and claims expenses, and incurred but not reported and in course of settlement claim liabilities. Revenue and Interest Expense The following tables present revenue and interest expense related to Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability, as well as related revenue and interest expense not presented in the above supplemental tables, in the Company's Statement of Operations for the periods indicated: December 31, 2022 Revenues(1) Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 1,700 $ 242,406 $ 0 $ 244,106 Additional insurance reserves 0 0 303,979 303,979 Deferred profit liability 42 0 0 42 Total $ 1,742 $ 242,406 $ 303,979 $ 548,127 December 31, 2021 Revenues(1) Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 4,553 $ 241,783 $ 0 $ 246,336 Additional insurance reserves 0 0 215,741 215,741 Deferred profit liability (742) 0 0 (742) Total $ 3,811 $ 241,783 $ 215,741 $ 461,335 (1) Represents "Gross premiums" for benefit reserves; "Gross assessments" for additional insurance reserves; and "Revenue" for deferred profit liability. December 31, 2022 Interest Expense Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 627 $ 60,233 $ 0 $ 60,860 Additional insurance reserves 0 0 27,479 27,479 Deferred profit liability 60 0 0 60 Total $ 687 $ 60,233 $ 27,479 $ 88,399 December 31, 2021 Interest Expense Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 620 $ 55,048 $ 0 $ 55,668 Additional insurance reserves 0 0 20,039 20,039 Deferred profit liability 60 0 0 60 Total $ 680 $ 55,048 $ 20,039 $ 75,767 The following tables show a rollforward of MRB balances for variable annuity products, along with a reconciliation to the Company’s total net MRB positions as of the following dates: December 31, 2022 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 796,913 $ (796,913) $ 0 Effect of cumulative changes in non-performance risk 21,123 0 21,123 Balance, beginning of period, before effect of changes in non-performance risk 818,036 (796,913) 21,123 Attributed fees collected 117,867 (117,867) 0 Claims paid (3,456) 3,456 0 Interest accrual 12,950 (12,950) 0 Actual in force different from expected 10,199 (10,199) 0 Effect of changes in interest rates (642,920) 642,920 0 Effect of changes in equity markets 266,177 (266,177) 0 Effect of assumption update (17,430) 17,430 0 Effect of changes in current period counterparty non-performance risk 0 142,046 142,046 Balance, end of period, before effect of changes in non-performance risk 561,423 (398,254) 163,169 Effect of cumulative changes in non-performance risk (163,169) 0 (163,169) Balance, end of period $ 398,254 $ (398,254) $ 0 December 31, 2021 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 1,205,571 $ (1,205,571) $ 0 Effect of cumulative changes in non-performance risk 60,792 0 60,792 Balance, beginning of period, before effect of changes in non-performance risk 1,266,363 (1,205,571) 60,792 Attributed fees collected 129,583 (129,583) 0 Claims paid (199) 199 0 Interest accrual 2,200 (2,200) 0 Actual in force different from expected 934 (934) 0 Effect of changes in interest rates (324,926) 324,926 0 Effect of changes in equity markets (235,734) 235,734 0 Effect of assumption update (20,185) 20,185 0 Effect of changes in current period counterparty non-performance risk 0 (39,669) (39,669) Balance, end of period, before effect of changes in non-performance risk 818,036 (796,913) 21,123 Effect of cumulative changes in non-performance risk (21,123) 0 (21,123) Balance, end of period $ 796,913 $ (796,913) $ 0 The following table presents accompanying information to the rollforward table above. See Note 9 for information on "Net amount at risk". December 31, 2022 December 31, 2021 Variable Annuities ($ in thousands) Net amount at risk(1) $ 1,050,063 $ 128,292 Weighted-average attained age of contractholders 68 65 (1) For contracts with multiple benefit features, the highest net amount at risk for each contract is included. The table below reconciles MRB asset and liability positions as of the following dates: December 31, 2022 December 31, 2021 Variable Annuities (in thousands) Market risk benefit assets $ 558,624 $ 940,706 Market risk benefit liabilities 558,624 940,706 Net liability $ 0 $ 0 |
Policyholders' Liabilities
Policyholders' Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities [Abstract] | |
Policyholders' Liabilities | POLICYHOLDERS' ACCOUNT BALANCES Policyholders' Account Balances The Company issues variable life and universal life insurance contracts where the Company contractually guarantees to the contractholder a death benefit even when there is insufficient value to cover monthly mortality and expense charges, whereas otherwise the contract would typically lapse (“no-lapse guarantee”). The Company also issues variable annuity insurance contracts where the Company contractually guarantees to the contractholder a return of no less than (1) total deposits made to the contract adjusted for any partial withdrawals plus a minimum return, and/or (2) the highest contract value on a specified date adjusted for any withdrawals. These guarantees include benefits that are payable in the event of death, annuitization or at specified dates during the accumulation period and withdrawal and income benefits payable during specified periods. For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, contract lapses and contractholder mortality. For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, timing of annuitization, contract lapses and contractholder mortality. For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including equity market returns, interest rates, market volatility and contractholder behavior. The balance of and changes in policyholders' account balances as of and for the periods ended are as follows: December 31, 2022 Variable Annuities Variable Life / Universal Life Total ($ in thousands) Balance, beginning of period $ 344,945 $ 2,052,065 $ 2,397,010 Deposits 1,066 227,017 228,083 Interest credited 6,174 64,979 71,153 Policy charges (234) (145,194) (145,428) Surrenders and withdrawals (22,412) (125,011) (147,423) Benefit payments (3,310) 2,378 (932) Net transfers (to) from separate account 895 37,577 38,472 Change in market value and other adjustments 0 (29,131) (29,131) Balance, end of period 327,124 2,084,680 2,411,804 Less: Reinsurance and other recoverables(1) 323,981 759,273 1,083,254 Policyholders' account balance net of reinsurance and other recoverables $ 3,143 $ 1,325,407 $ 1,328,550 Unearned revenue reserve 313,710 Other 48,801 Total Policyholders' account balance $ 2,774,315 Weighted-average crediting rate 1.84 % 3.14 % 2.96 % Net amount at risk(2) $ 0 $ 33,702,745 $ 33,702,745 Cash surrender value(3) $ 305,239 $ 1,750,451 $ 2,055,690 (1) The amount of recoverables related to reinsurance agreements that reduce the risk of the policyholders’ account balances gross liability. (2) The net amount at risk calculation includes both general and separate account balances. (3) Cash surrender value represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. December 31, 2021 Variable Annuities Variable Life / Universal Life Total ($ in thousands) Balance, beginning of period $ 365,751 $ 2,023,030 $ 2,388,781 Deposits 1,610 279,102 280,712 Interest credited 6,524 55,457 61,981 Policy charges (169) (141,977) (142,146) Surrenders and withdrawals (18,111) (133,669) (151,780) Benefit payments (6,552) (72,340) (78,892) Net transfers (to) from separate account (4,108) 33,480 29,372 Change in market value and other adjustments 0 8,982 8,982 Balance, end of period 344,945 2,052,065 2,397,010 Less: Reinsurance and other recoverables(1) 340,527 732,293 1,072,820 Policyholders' account balance net of reinsurance and other recoverables $ 4,418 $ 1,319,772 $ 1,324,190 Unearned revenue reserve 251,573 Other 51,351 Total Policyholders' account balance $ 2,699,934 Weighted-average crediting rate 1.84 % 2.72 % 2.59 % Net amount at risk(2) $ 0 $ 32,380,414 $ 32,380,414 Cash surrender value(3) $ 323,406 $ 1,676,529 $ 1,999,935 (1) The amount of recoverables related to reinsurance agreements that reduce the risk of the policyholders’ account balances gross liability. (2) The net amount at risk calculation includes both general and separate account balances. (3) Cash surrender value represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums are as follows: December 31, 2022 Range of Guaranteed Minimum At guaranteed minimum 1 - 50 bps above guaranteed minimum 51 - 150 bps above guaranteed minimum Greater than 150 bps above guaranteed minimum Total ($ in thousands) Variable Annuities Less than 1.00% $ 0 $ 0 $ 0 $ 0 $ 0 1.00% - 1.99% 192,551 1,593 0 0 194,144 2.00% - 2.99% 1,812 0 0 0 1,812 3.00% - 4.00% 132,969 231 0 0 133,200 Greater than 4.00% 125 0 0 0 125 Total $ 327,457 $ 1,824 $ 0 $ 0 $ 329,281 Variable Life / Universal Life Less than 1.00% $ 705 $ 0 $ 0 $ 0 $ 705 1.00% - 1.99% 56,396 0 105,883 286,496 448,775 2.00% - 2.99% 4,433 15,602 203,101 136,109 359,245 3.00% - 4.00% 156,567 633 435,220 0 592,420 Greater than 4.00% 377,674 0 0 0 377,674 Total $ 595,775 $ 16,235 $ 744,204 $ 422,605 $ 1,778,819 (1) Excludes contracts without minimum guaranteed crediting rates, such as funds with indexed-linked crediting options. December 31, 2021 Range of Guaranteed Minimum At guaranteed minimum 1 - 50 bps above guaranteed minimum 51 - 150 bps above guaranteed minimum Greater than 150 bps above guaranteed minimum Total ($ in thousands) Variable Annuities Less than 1.00% $ 0 $ 0 $ 0 $ 0 $ 0 1.00% - 1.99% 202,917 1,627 0 0 204,544 2.00% - 2.99% 1,901 0 0 0 1,901 3.00% - 4.00% 142,452 0 0 0 142,452 Greater than 4.00% 120 0 0 0 120 Total $ 347,390 $ 1,627 $ 0 $ 0 $ 349,017 Variable Life / Universal Life Less than 1.00% $ 1,143 $ 0 $ 0 $ 0 $ 1,143 1.00% - 1.99% 48,298 0 0 362,043 410,341 2.00% - 2.99% 679 0 288,371 53,031 342,081 3.00% - 4.00% 142,942 390,853 62,559 0 596,354 Greater than 4.00% 362,150 0 0 0 362,150 Total $ 555,212 $ 390,853 $ 350,930 $ 415,074 $ 1,712,069 (1) Excludes contracts without minimum guaranteed crediting rates, such as funds with indexed-linked crediting options. Unearned Revenue Reserve The balances of and changes in URR as of and for the periods ended are as follows: December 31, 2022 December 31, 2021 Variable Life / Universal Life (in thousands) Balance, beginning of period $ 251,573 $ 186,582 Unearned revenue 75,757 76,179 Amortization expense (13,681) (11,188) Other adjustments 61 0 Balance, end of period 313,710 251,573 Less: Reinsurance recoverables 81,256 63,830 Unearned revenue reserve net of reinsurance recoverables $ 232,454 $ 187,743 |
Market Risk Benefits
Market Risk Benefits | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Policyholders' Liabilities | LIABILITY FOR FUTURE POLICY BENEFITS Liability for Future Policy Benefits primarily consists of the following sub-components, which are discussed in greater detail below. • Benefit Reserves; • Deferred Profit Liability; and • Additional Insurance Reserves Benefit Reserves The balances of and changes in Benefit Reserves as of and for the periods indicated consist of the three tables presented below: Present Value of Expected Net Premiums rollforward, Present Value of Expected Future Policy Benefits rollforward, and Net Liability for Future Policy Benefits. December 31, 2022 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 1,641,933 $ 0 $ 1,641,933 Effect of cumulative changes in discount rate assumptions, beginning of period (253,752) 0 (253,752) Balance at original discount rate, beginning of period 1,388,181 0 1,388,181 Effect of assumption update 174,263 0 174,263 Effect of actual variances from expected experience and other activity (29,416) (746) (30,162) Adjusted balance, beginning of period 1,533,028 (746) 1,532,282 Issuances 58,215 2,110 60,325 Net premiums / considerations collected (170,297) (1,364) (171,661) Interest accrual 69,424 0 69,424 Balance at original discount rate, end of period 1,490,370 0 1,490,370 Effect of cumulative changes in discount rate assumptions, end of period (73,563) 0 (73,563) Balance, end of period $ 1,416,807 $ 0 $ 1,416,807 December 31, 2022 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 3,041,562 $ 19,314 $ 3,060,876 Effect of cumulative changes in discount rate assumptions, beginning of period (561,455) (1,459) (562,914) Balance at original discount rate, beginning of period 2,480,107 17,855 2,497,962 Effect of assumption update 255,336 0 255,336 Effect of actual variances from expected experience and other activity (60,049) 149 (59,900) Adjusted balance, beginning of period 2,675,394 18,004 2,693,398 Issuances 58,215 2,111 60,326 Interest accrual 129,657 627 130,284 Benefit payments (173,998) (2,308) (176,306) Other adjustments (115) (75) (190) Balance at original discount rate, end of period 2,689,153 18,359 2,707,512 Effect of cumulative changes in discount rate assumptions, end of period (137,962) (1,899) (139,861) Balance, end of period $ 2,551,191 $ 16,460 $ 2,567,651 December 31, 2022 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, pre-flooring $ 1,134,384 $ 16,460 $ 1,150,844 Flooring impact, end of period 0 0 0 Balance, end of period, post-flooring 1,134,384 16,460 1,150,844 Less: Reinsurance recoverable 1,002,277 16,460 1,018,737 Balance after reinsurance recoverable, end of period, post-flooring $ 132,107 $ 0 $ 132,107 December 31, 2021 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 1,762,111 $ 0 $ 1,762,111 Effect of cumulative changes in discount rate assumptions, beginning of period (352,891) 0 (352,891) Balance at original discount rate, beginning of period 1,409,220 0 1,409,220 Effect of assumption update 5,651 0 5,651 Effect of actual variances from expected experience and other activity (13,285) 0 (13,285) Adjusted balance, beginning of period 1,401,586 0 1,401,586 Issuances 75,944 3,763 79,707 Net premiums / considerations collected (155,282) (3,763) (159,045) Interest accrual 65,933 0 65,933 Balance at original discount rate, end of period 1,388,181 0 1,388,181 Effect of cumulative changes in discount rate assumptions, end of period 253,752 0 253,752 Balance, end of period $ 1,641,933 $ 0 $ 1,641,933 December 31, 2021 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 3,212,658 $ 17,969 $ 3,230,627 Effect of cumulative changes in discount rate assumptions, beginning of period (753,963) (2,188) (756,151) Balance at original discount rate, beginning of period 2,458,695 15,781 2,474,476 Effect of assumption update 5,817 0 5,817 Effect of actual variances from expected experience and other activity (9,219) (297) (9,516) Adjusted balance, beginning of period 2,455,293 15,484 2,470,777 Issuances 75,944 3,763 79,707 Interest accrual 120,981 620 121,601 Benefit payments (171,572) (2,012) (173,584) Other adjustments (539) 0 (539) Balance at original discount rate, end of period 2,480,107 17,855 2,497,962 Effect of cumulative changes in discount rate assumptions, end of period 561,455 1,459 562,914 Balance, end of period $ 3,041,562 $ 19,314 $ 3,060,876 December 31, 2021 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, pre-flooring $ 1,399,629 $ 19,314 $ 1,418,943 Flooring impact, end of period 899 0 899 Balance, end of period, post-flooring 1,400,528 19,314 1,419,842 Less: Reinsurance recoverable 1,216,756 19,314 1,236,070 Balance after reinsurance recoverable, end of period, post-flooring $ 183,772 $ 0 $ 183,772 The following tables provide supplemental information related to the balances of and changes in Benefit Reserves included in the disaggregated tables above, on a gross (direct and assumed) basis, as of and for the periods indicated: December 31, 2022 Term Life Fixed Annuities ($ in thousands) Undiscounted expected future gross premiums $ 3,073,048 $ 0 Discounted expected future gross premiums (at original discount rate) $ 2,069,441 $ 0 Discounted expected future gross premiums (at current discount rate) $ 1,973,031 $ 0 Undiscounted expected future benefits and expenses $ 4,352,500 $ 24,056 Interest accrual $ 60,233 $ 627 Gross premiums $ 242,406 $ 1,700 Weighted-average duration of the liability in years (at original discount rate) 11 7 Weighted-average duration of the liability in years (at current discount rate) 10 6 Weighted-average interest rate (at original discount rate) 5.33 % 3.56 % Weighted-average interest rate (at current discount rate) 5.40 % 5.30 % December 31, 2021 Term Life Fixed Annuities ($ in thousands) Undiscounted expected future gross premiums $ 3,309,037 $ 0 Discounted expected future gross premiums (at original discount rate) $ 2,185,726 $ 0 Discounted expected future gross premiums (at current discount rate) $ 2,597,734 $ 0 Undiscounted expected future benefits and expenses $ 4,023,185 $ 23,747 Interest accrual $ 55,048 $ 620 Gross premiums $ 241,783 $ 4,553 Weighted-average duration of the liability in years (at original discount rate) 11 7 Weighted-average duration of the liability in years (at current discount rate) 11 7 Weighted-average interest rate (at original discount rate) 5.37 % 3.56 % Weighted-average interest rate (at current discount rate) 2.54 % 2.48 % For additional information regarding observable market information and the techniques used to determine the interest rate assumptions seen above, see Note 2. For non-participating traditional and limited-payment products, if a cohort is in a loss position where the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for the present value of expected future policy benefits and non-level claim settlement expenses, then the liability for future policy benefits is adjusted at that time, and thereafter such that all changes, both favorable and unfavorable, in expected benefits resulting from both actual experience deviations and changes in future assumptions are recognized immediately as a gain or loss. In 2022, there was an $11 million charge to net income for nonparticipating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts, mostly offset by a $10 million gain, reflecting the impact of ceded reinsurance on the affected cohorts. The unfavorable impact in 2022 was primarily due to unfavorable assumption updates related to individual term life products. In 2021, there was a $6 million charge to net income for nonparticipating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts, mostly offset by a $5 million gain, reflecting the impact of ceded reinsurance on the affected cohorts. The unfavorable impact in 2021 was primarily due to unfavorable mortality experience related to individual term life products. Deferred Profit Liability The balances of and changes in Deferred Profit Liability as of and for the periods indicated are as follows: December 31, 2022 December 31, 2021 Fixed Annuities (in thousands) Balance, beginning of period $ 1,726 $ 984 Effect of actual variances from expected experience and other activity (169) 98 Adjusted balance, beginning of period 1,557 1,082 Profits deferred 309 771 Interest accrual 60 60 Amortization (222) (187) Other adjustments (20) 0 Balance, end of period 1,684 1,726 Less: Reinsurance recoverable 1,684 1,726 Balance after reinsurance recoverable $ 0 $ 0 The following table provides supplemental information related to the balances of and changes in Deferred Profit Liability, included in the disaggregated table above, on a gross (direct and assumed) basis, as of and for the period indicated: December 31, 2022 December 31, 2021 Fixed Annuities (in thousands) Revenue(1) $ 42 $ (742) Interest accrual 60 60 (1) Represents the gross premiums collected in changes in deferred profit liability. Additional Insurance Reserves AIR represents the additional liability for annuitization, death, or other insurance benefits, including GMDB and GMIB contract features, that are above and beyond the contractholder's account balance. The following table shows a rollforward of AIR balances for variable and universal life products, for the periods indicated: December 31, 2022 December 31, 2021 (in thousands) Balance including amounts in AOCI, beginning of period, post-flooring $ 703,968 $ 642,514 Flooring impact and amounts in AOCI (71,467) (95,331) Balance, excluding amounts in AOCI, beginning of period, pre-flooring 632,501 547,183 Effect of assumption update 180,404 369 Effect of actual variances from expected experience and other activity (39,475) 8,089 Adjusted balance, beginning of period 773,430 555,641 Assessments collected(1) 134,822 62,891 Interest accrual 27,479 20,039 Benefits paid (17,138) (6,070) Balance, excluding amounts in AOCI, end of period, pre-flooring 918,593 632,501 Flooring impact and amounts in AOCI (91,115) 71,467 Balance, including amounts in AOCI, end of period, post-flooring 827,478 703,968 Less: Reinsurance recoverable 793,577 666,813 Balance after reinsurance recoverable, including amounts in AOCI, end of period $ 33,901 $ 37,155 (1) Represents the portion of gross assessments required to fund the future policy benefits. December 31, 2022 December 31, 2021 ($ in thousands) Interest accrual $ 27,479 $ 20,039 Gross assessments $ 303,979 $ 215,741 Weighted-average duration of the liability in years (at original discount rate) 28 26 Weighted-average interest rate (at original discount rate) 3.41 % 3.44 % Future Policy Benefits Reconciliation The following table presents the reconciliation of the ending balances from the above rollforwards, Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability including other liabilities, gross of related reinsurance recoverables, to the total liability for Future Policy Benefits as reported on the Company's Statements of Financial Position as of the periods indicated: December 31, 2022 December 31, 2021 (in thousands) Benefit reserves, end of period, post-flooring $ 1,150,844 $ 1,419,842 Additional insurance reserves, including amounts in AOCI, end of period, post-flooring 827,478 703,968 Deferred profit liability, end of period, post-flooring 1,684 1,726 Subtotal of amounts disclosed above 1,980,006 2,125,536 Other Future policy benefits reserves(1) 150,036 235,587 Total Future policy benefits $ 2,130,042 $ 2,361,123 (1) Represents balances for which disaggregated rollforward disclosures are not required, including unpaid claims and claims expenses, and incurred but not reported and in course of settlement claim liabilities. Revenue and Interest Expense The following tables present revenue and interest expense related to Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability, as well as related revenue and interest expense not presented in the above supplemental tables, in the Company's Statement of Operations for the periods indicated: December 31, 2022 Revenues(1) Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 1,700 $ 242,406 $ 0 $ 244,106 Additional insurance reserves 0 0 303,979 303,979 Deferred profit liability 42 0 0 42 Total $ 1,742 $ 242,406 $ 303,979 $ 548,127 December 31, 2021 Revenues(1) Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 4,553 $ 241,783 $ 0 $ 246,336 Additional insurance reserves 0 0 215,741 215,741 Deferred profit liability (742) 0 0 (742) Total $ 3,811 $ 241,783 $ 215,741 $ 461,335 (1) Represents "Gross premiums" for benefit reserves; "Gross assessments" for additional insurance reserves; and "Revenue" for deferred profit liability. December 31, 2022 Interest Expense Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 627 $ 60,233 $ 0 $ 60,860 Additional insurance reserves 0 0 27,479 27,479 Deferred profit liability 60 0 0 60 Total $ 687 $ 60,233 $ 27,479 $ 88,399 December 31, 2021 Interest Expense Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 620 $ 55,048 $ 0 $ 55,668 Additional insurance reserves 0 0 20,039 20,039 Deferred profit liability 60 0 0 60 Total $ 680 $ 55,048 $ 20,039 $ 75,767 The following tables show a rollforward of MRB balances for variable annuity products, along with a reconciliation to the Company’s total net MRB positions as of the following dates: December 31, 2022 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 796,913 $ (796,913) $ 0 Effect of cumulative changes in non-performance risk 21,123 0 21,123 Balance, beginning of period, before effect of changes in non-performance risk 818,036 (796,913) 21,123 Attributed fees collected 117,867 (117,867) 0 Claims paid (3,456) 3,456 0 Interest accrual 12,950 (12,950) 0 Actual in force different from expected 10,199 (10,199) 0 Effect of changes in interest rates (642,920) 642,920 0 Effect of changes in equity markets 266,177 (266,177) 0 Effect of assumption update (17,430) 17,430 0 Effect of changes in current period counterparty non-performance risk 0 142,046 142,046 Balance, end of period, before effect of changes in non-performance risk 561,423 (398,254) 163,169 Effect of cumulative changes in non-performance risk (163,169) 0 (163,169) Balance, end of period $ 398,254 $ (398,254) $ 0 December 31, 2021 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 1,205,571 $ (1,205,571) $ 0 Effect of cumulative changes in non-performance risk 60,792 0 60,792 Balance, beginning of period, before effect of changes in non-performance risk 1,266,363 (1,205,571) 60,792 Attributed fees collected 129,583 (129,583) 0 Claims paid (199) 199 0 Interest accrual 2,200 (2,200) 0 Actual in force different from expected 934 (934) 0 Effect of changes in interest rates (324,926) 324,926 0 Effect of changes in equity markets (235,734) 235,734 0 Effect of assumption update (20,185) 20,185 0 Effect of changes in current period counterparty non-performance risk 0 (39,669) (39,669) Balance, end of period, before effect of changes in non-performance risk 818,036 (796,913) 21,123 Effect of cumulative changes in non-performance risk (21,123) 0 (21,123) Balance, end of period $ 796,913 $ (796,913) $ 0 The following table presents accompanying information to the rollforward table above. See Note 9 for information on "Net amount at risk". December 31, 2022 December 31, 2021 Variable Annuities ($ in thousands) Net amount at risk(1) $ 1,050,063 $ 128,292 Weighted-average attained age of contractholders 68 65 (1) For contracts with multiple benefit features, the highest net amount at risk for each contract is included. The table below reconciles MRB asset and liability positions as of the following dates: December 31, 2022 December 31, 2021 Variable Annuities (in thousands) Market risk benefit assets $ 558,624 $ 940,706 Market risk benefit liabilities 558,624 940,706 Net liability $ 0 $ 0 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2022 | |
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”), Prudential Term Reinsurance Company (“Term Re”) and Dryden Arizona Reinsurance Term Company (“DART”), its parent companies, Pruco Life and Prudential Insurance, as well as third parties. The reinsurance agreements provide risk diversification and additional capacity for future growth, limit the maximum net loss potential, manage statutory capital, and facilitate the Company's capital market hedging program. 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 policy charges and fee income ceded for universal life and variable annuity 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. Change in value of market risk benefits, net of related hedging gain (loss) 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. These reinsurance agreements are market risk benefits and have been accounted for in the same manner. See Note 4 for additional information related to the accounting for market risk benefits. Reinsurance amounts included in the Company’s Statements of Financial Position as of December 31, were as follows: 2022 2021 (in thousands) Reinsurance recoverables(1) $ 3,098,248 $ 3,175,195 Policy loans (22,999) (22,028) Deferred policy acquisition costs(1) (646,737) (691,795) Deferred sales inducements(1) (38,146) (41,346) Market risk benefit assets(1) 478,439 868,810 Other assets(1) 42,265 44,226 Market risk benefit liabilities(1) 80,185 71,896 Other liabilities(1) 115,351 147,160 (1) Amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. Reinsurance recoverables by counterparty as of December 31, were as follows: 2022 2021 (in thousands) Prudential Insurance(1) $ 456,633 $ 484,807 PAR U(1) 1,575,260 1,385,187 PARCC(1) 464,142 510,618 PAR Term(1) 258,169 329,514 Term Re(1) 232,796 313,481 DART(1) 73,702 105,596 Pruco Life(1) 34,720 40,804 Unaffiliated 2,826 5,188 Total reinsurance recoverables(1) $ 3,098,248 $ 3,175,195 (1) Amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. Reinsurance amounts, included in the Company’s Statements of Operations and Comprehensive Income (Loss) for the years ended December 31, were as follows: 2022 2021 2020 (in thousands) Premiums: Direct(1) $ 245,525 $ 249,162 $ 249,426 Ceded(1) (211,817) (220,413) (227,766) Net premiums(1) 33,708 28,749 21,660 Policy charges and fee income: Direct(1) 370,855 395,576 407,449 Ceded(1)(2) (313,121) (323,414) (333,247) Net policy charges and fee income(1) 57,734 72,162 74,202 Net investment income: Direct 99,164 101,279 83,800 Ceded (772) (788) (805) Net investment income 98,392 100,491 82,995 Asset administration fees: Direct 38,061 44,882 39,773 Ceded (29,581) (36,007) (33,029) Net asset administration fees 8,480 8,875 6,744 Realized investment gains (losses), net: Direct(1) 12,855 465 (324,737) Ceded(1) 980 50 326,608 Realized investment gains (losses), net(1) 13,835 515 1,871 Change in value of market risk benefits, net of related hedging gain (loss): Direct(1) 256,613 448,327 0 Ceded(1) (398,659) (408,657) 0 Net change in value of market risk benefits, net of related hedging gain (loss)(1) (142,046) 39,670 0 Policyholders’ benefits (including change in reserves): Direct(1) 472,033 391,308 470,557 Ceded(1)(3) (443,844) (350,529) (428,670) Net policyholders’ benefits (including change in reserves)(1) 28,189 40,779 41,887 Change in estimates of liability for future policy benefits: Direct(1) 208,188 14,590 0 Ceded(1) (191,557) (11,771) 0 Net change in estimates of liability for future policy benefits(1) 16,631 2,819 0 Interest credited to policyholders’ account balances: Direct(1) 82,469 73,809 75,609 Ceded(1) (34,891) (30,805) (31,513) Net interest credited to policyholders’ account balances 47,578 43,004 44,096 Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization(1) $ (128,013) $ (135,863) $ (176,420) (1) Amounts for the years ended December 31, 2022 and 2021 were adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. (2) Includes $(5) million of unaffiliated activity for each of the years ended December 31, 2022 and 2021, and $(4) million for 2020. (3) Includes $2 million, $(2) million and $(1) million of unaffiliated activity for the years ended December 31, 2022, 2021 and 2020, respectively. The gross and net amounts of life insurance face amount in force as of December 31, were as follows: 2022 2021 2020 (in thousands) Direct gross life insurance face amount in force $ 154,382,891 $ 156,103,597 $ 154,173,267 Reinsurance ceded (140,370,532) (140,856,353) (139,478,523) Net life insurance face amount in force $ 14,012,359 $ 15,247,244 $ 14,694,744 Information regarding significant affiliated reinsurance agreements is described below. 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. As of January 1, 2020, the remaining portions of new business (specifically Term policies) ceased being reinsured by the Company to Prudential Insurance, and a separate yearly renewable term reinsurance agreement was established with Pruco Life for Term policies. 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. As of December 31, 2020, the Company discontinued the sales of traditional variable annuities with guaranteed living benefit riders. This discontinuation has no impact on the reinsurance agreement between Prudential Insurance and the Company. PAR U Effective July 1, 2012, 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, with effective dates through December 31, 2019, excluding those policies that are subject to principle-based reserving. 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. Effective January 1, 2020, the Company entered in a similar yearly renewable term reinsurance agreement with Pruco Life for new business relating to Term policies. Under these agreements 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, together with the related variable annuity base contracts, with Prudential Insurance. DART |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The following schedule discloses significant components of income tax expense (benefit) for each year presented: Year Ended December 31, 2022 2021 2020 (in thousands) Current tax expense (benefit): U.S. federal $ (22,713) $ 10,969 $ (34,698) State and local (103) 137 0 Total (22,816) 11,106 (34,698) Deferred tax expense (benefit): U.S. federal(1) (7,958) (13) 28,359 Total (7,958) (13) 28,359 Income tax expense (benefit) from operations (30,774) 11,093 (6,339) Income tax expense (benefit) reported in equity related to: Other comprehensive income (loss)(1) (36,731) (19,694) 26,521 Total income tax expense (benefit) $ (67,505) $ (8,601) $ 20,182 (1) Amounts for the years ended December 31, 2022 and 2021 were adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. Reconciliation of Expected Tax at Statutory Rates to Reported Income Tax Expense (Benefit) The differences between income taxes expected at the U.S. federal statutory income tax rate of 21% applicable for 2022, 2021 and 2020, and the reported income tax expense (benefit) are summarized as follows: Year Ended December 31, 2022 2021 2020 ($ in thousands) Expected federal income tax expense (benefit)(1) $ (21,126) $ 20,100 $ 8,827 Non-taxable investment income (6,259) (6,371) (5,819) Tax credits (3,393) (3,478) (2,451) Changes in tax law 0 67 (6,941) Other 4 775 45 Reported income tax expense (benefit) $ (30,774) $ 11,093 $ (6,339) Effective tax rate(1) 30.6 % 11.6 % (15.1) % (1) Amounts for the years ended December 31, 2022 and 2021 were adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. The effective tax rate is the ratio of “Income tax expense (benefit)” divided by “Income (loss) from operations before income taxes.” The Company’s effective tax rate for fiscal years 2022, 2021 and 2020 was 30.6%, 11.6% and (15.1)%, respectively. The following is a description of items that had a significant impact on the difference between the Company’s statutory U.S. federal income tax rate of 21% applicable for 2022, 2021 and 2020, and the Company's effective tax rate during the periods presented: Non-Taxable Investment Income . The U.S. Dividends Received Deduction (“DRD”) reduces the amount of dividend income subject to U.S. tax and is included in the non-taxable investment income shown in the table above. More specifically, the U.S. DRD constitutes $5 million of the total $6 million of 2022 non-taxable investment income, $6 million of the total $6 million of 2021 non-taxable investment income, and $5 million of the total $6 million of 2020 non-taxable investment income. The DRD for the current period was estimated using information from 2021, current year investment results, and current year’s equity market performance. The actual current year DRD can vary based on factors such as, but not limited to, changes in the amount of dividends received that are eligible for the DRD, changes in the amount of distributions received from fund investments, changes in the account balances of variable life and annuity contracts, and the Company’s taxable income before the DRD. Tax credits . These amounts primarily represent tax credits relating to foreign taxes withheld on the Company’s separate account investments. Changes in Tax Law . The following is a notable change in tax law that impacted the Company’s effective tax rate for the periods presented: The CARES Act. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted into law. One provision of the CARES Act amends the Tax Act of 2017 and allows companies with net operating losses (“NOLs”) originating in 2020, 2019 or 2018 to carry back those losses for up to five years. For 2020, the Company recorded an income tax benefit of $7 million from carrying the 2020 NOL back to tax years that have a 35% tax rate. Other . This line item represents reconciling items that are individually less than 5% of the computed expected federal income tax expense (benefit) and have therefore been aggregated for purposes of this reconciliation in accordance with relevant disclosure guidance. Schedule of Deferred Tax Assets and Deferred Tax Liabilities As of December 31, 2022 2021 (in thousands) Deferred tax assets: Insurance reserves(1) $ 1,677 $ 49,117 Net unrealized loss on securities 56,805 0 Other 465 398 Deferred tax assets 58,947 49,515 Deferred tax liabilities: Deferred policy acquisition cost(1) 15,078 8,639 Net unrealized gain on securities 0 36,834 Investments(1) 4,149 9,381 Deferred tax liabilities 19,227 54,854 Net deferred tax asset (liability) $ 39,720 $ (5,339) (1) Amounts adjusted for the implementation of Accounting Standards Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. The application of U.S. GAAP requires the Company to evaluate the recoverability of deferred tax assets and establish a valuation allowance if necessary to reduce the deferred tax asset to an amount that is more likely than not expected to be realized. Considerable judgment is required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance, the Company considers many factors, including: (1) the nature of the deferred tax assets and liabilities; (2) whether they are ordinary or capital; (3) in which tax jurisdictions they were generated and the timing of their reversal; (4) taxable income in prior carryback years as well as projected taxable earnings exclusive of reversing temporary differences and carryforwards; (5) the length of time that carryovers can be utilized in the various taxing jurisdictions; (6) any unique tax rules that would impact the utilization of the deferred tax assets; and (7) any tax planning strategies that the Company would employ to avoid a tax benefit from expiring unused. Although realization is not assured, management believes it is more likely than not that the deferred tax assets, net of valuation allowances, will be realized. Changes in market conditions during 2022, including rising interest rates, resulted in the recording of deferred tax assets related to net unrealized tax capital losses. When assessing recoverability of these deferred tax assets, we consider our ability and intent to hold the underlying securities to recovery in value, if necessary, as well as other factors as noted above. As of December 31, 2022, based on all available evidence, including capital loss carryback capacity, we concluded that the deferred tax assets related to the unrealized tax capital losses on the available for sale securities portfolios are, more likely than not, expected to be realized. The Company had no valuation allowance as of December 31, 2022, and 2021. Adjustments to the valuation allowance will be made if there is a change in management’s assessment of the amount of deferred tax asset that is realizable. The Company’s "Income (loss) from operations before income taxes" includes income from domestic operations of $(101) million, $96 million and $42 million for the years ended December 31, 2022, 2021 and 2020, respectively. Tax Audit and Unrecognized Tax Benefits The Company’s liability for income taxes includes the liability for unrecognized tax benefits and interest that relate to tax years still subject to review by the IRS or other taxing authorities. The completion of review or the expiration of the Federal statute of limitations for a given audit period could result in an adjustment to the liability for income taxes. The Company had no unrecognized tax benefits as of December 31, 2022, 2021, and 2020. The Company does not anticipate any significant changes within the next twelve months to its total unrecognized tax benefits related to tax years for which the statute of limitations has not expired. The Company classifies all interest and penalties related to tax uncertainties as income tax expense (benefit). The Company did not recognize tax related interest and penalties. At December 31, 2022, the Company remains subject to examination in the U.S. for tax years 2014 through 2022. The Company participates in the IRS’s Compliance Assurance Program. Under this program, the IRS assigns an examination team to review completed transactions as they occur in order to reach agreement with the Company on how they should be reported in the relevant tax returns. If disagreements arise, accelerated resolutions programs are available to resolve the disagreements in a timely manner. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Equity | EQUITY Accumulated Other Comprehensive Income (Loss) AOCI represents the cumulative OCI items that are reported separate from net income and detailed on the Statements of Operations and Comprehensive Income (Loss). Net unrealized investment gains (losses) are described in further detail in Note 2. The balance of and changes in each component of AOCI as of and for the years ended December 31, are as follows: Accumulated Other Comprehensive Income (Loss) Foreign Currency Net Unrealized Interest Rate Remeasurement of Future Policy Benefits Gain (loss) from Changes in Non-Performance Risk on Market Risk Benefits Total Accumulated (in thousands) Balance, December 31, 2019 $ (981) $ 86,616 $ $ $ 85,635 Change in OCI before reclassifications 250 126,329 126,579 Amounts reclassified from AOCI 0 (286) (286) Income tax benefit (expense) (52) (26,469) (26,521) Balance, December 31, 2020 (783) 186,190 185,407 Cumulative effect of adoption of ASU 2018-12 0 (11,979) (45,378) 48,028 (9,329) Change in OCI before reclassifications(2) (259) (66,843) 13,404 (39,669) (93,367) Amounts reclassified from AOCI 0 (418) 0 0 (418) Income tax benefit (expense)(2) 54 14,125 (2,814) 8,329 19,694 Balance, December 31, 2021 (988) 121,075 (34,788) 16,688 101,987 Change in OCI before reclassifications(2) (336) (375,622) 59,865 142,048 (174,045) Amounts reclassified from AOCI 0 (863) 0 0 (863) Income tax benefit (expense)(2) 110 79,024 (12,573) (29,830) 36,731 Balance, December 31, 2022 $ (1,214) $ (176,386) $ 12,504 $ 128,906 $ (36,190) (1) Includes cash flow hedges of $14 million, $5 million and $(3) million as of December 31, 2022, 2021 and 2020, respectively. (2) Amounts were adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. Reclassifications out of Accumulated Other Comprehensive Income (Loss) Year Ended December 31, 2022 2021 2020 (in thousands) Amounts reclassified from AOCI(1)(2): Net unrealized investment gains (losses): Cash flow hedges - Currency/Interest rate(3) $ 4,895 $ 2,292 $ 958 Net unrealized investment gains (losses) on available-for-sale securities (4,032) (1,874) (672) Total net unrealized investment gains (losses)(4) 863 418 286 Total reclassifications for the period $ 863 $ 418 $ 286 (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 DAC and other costs, future policy benefits, policyholders’account balances and other liabilities. Net Unrealized Investment Gains (Losses) Net unrealized investment gains (losses) on available-for-sale fixed maturity securities and certain other invested assets and other assets are included in the Company’s Statements of Financial Position as a component of AOCI. Changes in these amounts include reclassification adjustments to exclude from OCI those items that are included as part of “Net income (loss)” for a period that had been part of OCI in earlier periods. The amounts for the periods indicated below, split between amounts related to available-for-sale fixed maturity securities on which an OTTI had been previously recognized, an allowance for credit losses has been recorded, and all other net unrealized investment gains (losses), are as follows: Net Unrealized Gains (Losses) on Available-for-Sale Fixed Maturity Securities on which an OTTI Loss has been Recognized Net Unrealized Other Costs(2) Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(3) Income Tax Accumulated (in thousands) Balance, December 31, 2019 $ 51 $ 115,988 $ 8,973 $ (15,373) $ (23,023) $ 86,616 Reclassification due to implementation of ASU 2016-13 (4) (51) 51 0 0 0 0 Net investment gains (losses) on investments arising during the period 0 139,971 0 0 (29,394) 110,577 Reclassification adjustment for (gains) losses included in net income 0 (286) 0 0 61 (225) Impact of net unrealized investment (gains) losses 0 0 19,268 (32,910) 2,864 (10,778) Balance, December 31, 2020 0 255,724 28,241 (48,283) (49,492) 186,190 Cumulative effect of adoption of ASU 2018-12 0 0 59,506 (74,668) 3,183 (11,979) Net investment gains (losses) on investments arising during the period 0 (74,500) 0 0 15,644 (58,856) Reclassification adjustment for (gains) losses included in net income 0 (418) 0 0 88 (330) Impact of net unrealized investment (gains) losses(5) 0 0 (22,975) 30,632 (1,607) 6,050 Balance, December 31, 2021 0 180,806 64,772 (92,319) (32,184) 121,075 Net investment gains (losses) on investments arising during the period 0 (436,527) 0 0 91,638 (344,889) Reclassification adjustment for (gains) losses included in net income 0 (863) 0 0 181 (682) Impact of net unrealized investment (gains) losses(5) 0 0 (148,484) 209,389 (12,795) 48,110 Balance, December 31, 2022 $ 0 $ (256,584) $ (83,712) $ 117,070 $ 46,840 $ (176,386) (1) Includes cash flow hedges. See Note 4 for information on cash flow hedges. (2) "Other costs" primarily includes reinsurance recoverables. (3) "Other liabilities" primarily includes reinsurance payables. (4) Represents net unrealized gains (losses) for which an OTTI had been previously recognized. |
Statutory Net Income and Surplu
Statutory Net Income and Surplus and Dividend Restrictions | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Statutory Net Income and Surplus and Dividend Restrictions | STATUTORY NET INCOME AND SURPLUS AND DIVIDEND RESTRICTIONSThe Company is required to prepare statutory financial statements in accordance with accounting practices prescribed or permitted by the New Jersey Department of Insurance and Banking. Statutory accounting practices primarily differ from U.S. GAAP by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions and valuing investments, deferred taxes, and certain assets on a different basis. The following table summarizes certain statutory financial information for the Company for the periods indicated: Year Ended December 31, 2022 2021 2020 (in millions) Statutory net income (loss) $ (134) $ 52 $ (70) Statutory capital and surplus 851 592 337 The Company does not utilize prescribed or permitted practices that vary materially from the statutory accounting practices prescribed by the NAIC. The Company is subject to New Jersey law, which limits the amount of dividends that insurance companies can pay to stockholders without approval of the New Jersey Department of Banking and Insurance. The maximum dividend, which may be paid in any twelve-month period without notification or approval, is limited to the greater of 10% of statutory surplus as of December 31 of the preceding year or the net gain from operations of the preceding calendar year. Cash dividends may only be paid out of surplus derived from realized net profits. Based on these limitations, there is a capacity to pay a dividend of $13 million in 2023 without prior approval. The Company did not pay dividends to Pruco Life in 2022, 2021, and 2020. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONSThe 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 The majority 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 $0.1 million for each of the years ended December 31, 2022, 2021 and 2020. The expense charged to the Company for the deferred compensation program was $0.4 million, $0.4 million and $0.6 million for the years ended December 31, 2022, 2021 and 2020, respectively. The Company is charged for its share of employee benefit expenses. These expenses include costs for funded and non-funded, 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 $1 million, $1 million and $2 million for each of the years ended December 31, 2022, 2021 and 2020, respectively. 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 $1 million, $1 million and $2 million for the years ended December 31, 2022, 2021 and 2020, 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 $0.5 million, $0.5 million and $1.0 million for the years ended December 31, 2022, 2021 and 2020, respectively. The Company is charged distribution expenses from Prudential’s proprietary nationwide sales organization, “Prudential Advisors” through a transfer pricing agreement, which is intended to reflect a market-based pricing arrangement. Prudential Advisors distributes Prudential life insurance, annuities, and investment products with proprietary and non-proprietary product options. 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 $29 million, $37 million and $53 million for the years ended December 31, 2022, 2021 and 2020, 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 $12 million, $10 million and $9 million for the years ended December 31, 2022, 2021 and 2020, respectively. Corporate-Owned Life Insurance The Company has sold three COLI policies to Prudential Insurance and one to Prudential Financial. The cash surrender value included in separate accounts for these COLI policies was $2,946 million at December 31, 2022 and $3,465 million at December 31, 2021. Fees related to these COLI policies were $27 million, $30 million and $27 million for the years ended December 31, 2022, 2021 and 2020, respectively. The Company retains 10% of the mortality risk associated with these COLI policies up to $0.1 million per individual 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 $3 million for the years ended December 31, 2022, 2021 and 2020. These expenses are recorded as “Net investment income” in the Statements of Operations and Comprehensive Income. 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 $51 million and $48 million as of December 31, 2022 and 2021, respectively. "Net investment income" related to these ventures includes gains of $2 million, $4 million and $4 million for the years ended December 31, 2022, 2021 and 2020, 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 $30 million, $36 million and $33 million for the years ended December 31, 2022, 2021 and 2020, respectively. These revenues are recorded as “Asset administration fees” in the Statements of Operations and Comprehensive Income. 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 $7 million, $8 million and $6 million for the years ended December 31, 2022, 2021 and 2020, respectively. These revenues are recorded as “Asset administration fees” in the Statements of Operations and Comprehensive Income. Affiliated Notes Receivable Affiliated notes receivable included in “Receivables from parent and affiliates” at December 31, were as follows: Maturity Dates Interest Rates 2022 2021 (in thousands) U.S. dollar fixed rate notes 2027 0.00% - 14.85 % $ 688 $ 788 Total long-term notes receivable - affiliated(1) $ 688 $ 788 (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. There was no accrued interest receivable related to these loans as of December 31, 2022 and 2021. Revenues were $0.0 million, $0.0 million and $0.1 million for the years ended December 31, 2022, 2021 and 2020, respectively, and are included in “Other income (loss).” 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 years ended December 31, 2022 and 2021: Affiliate Date Transaction Security Type Fair Value Book Value APIC, Net of Tax Increase/(Decrease) Realized Investment Gain (Loss) (in thousands) Prudential Insurance September 2021 Purchase Fixed Maturities $ 10,810 $ 10,520 $ (229) $ 0 Prudential Insurance September 2021 Sale Fixed Maturities $ 7,356 $ 6,477 $ 695 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Purchase Fixed Maturities $ 19,724 $ 19,724 $ 0 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Sale Fixed Maturities $ 22,557 $ 22,038 $ 0 $ 519 Prudential Insurance September 2021 Purchase Derivatives $ 715 $ 213 $ (396) $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Purchase Derivatives $ 21 $ 21 $ 0 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Sale Derivatives $ 816 $ 233 $ 0 $ 583 Prudential Insurance August 2022 Purchase Fixed Maturities $ 21,389 $ 19,630 $ (1,390) $ 0 Debt Agreements The Company is authorized to borrow funds up to $200 million from affiliates to meet its capital and other funding needs. There was no debt outstanding for both 2022 and 2021. The total interest expense to the Company related to loans payable to affiliates was $0.0 million for each of the years ended December 31, 2022, 2021 and 2020. Contributed Capital and Dividends In February 2023, the Company received a capital contribution in the amount of $175 million from Pruco Life. In February, March, September and December 2022 the Company received capital contributions in the amount of $100 million, $2 million, $100 million and $125 million from Pruco Life, respectively. In March 2021 and December 2021, the Company received capital contributions in the amounts of $1 million and $100 million from Pruco Life, respectively. In March 2020, the Company received a capital contribution in the amount of $85 million from Pruco Life. There was no return of capital in 2022, 2021 and 2020. The Company did not pay any dividends in 2022, 2021 and 2020. Reinsurance with Affiliates As discussed in Note 11, the Company participates in reinsurance transactions with certain affiliates. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | COMMITMENTS AND CONTINGENT LIABILITIES Commitments The Company has made commitments to fund commercial mortgage loans. As of December 31, 2022 and 2021, the outstanding balances on these commitments were $15 million and $1 million, respectively. These amounts do not include unfunded commitments that are not unconditionally cancellable. For related credit exposure, there was no allowance for credit losses as of either December 31, 2022 or 2021. There was no change in allowance for credit losses for both the years ended December 31, 2022 and 2021. The Company has made commitments to purchase or fund investments, mostly private fixed maturities. As of December 31, 2022 and 2021, $62 million and $61 million, respectively, of these commitments were outstanding. These amounts include unfunded commitments that are not unconditionally cancellable. There were no related charges for credit losses for both the years ended December 31, 2022 and 2021. Contingent Liabilities On an ongoing basis, the Company and its regulators review its operations including, but not limited to, sales and other customer interface procedures and practices, and procedures for meeting obligations to its customers and other parties. These reviews may result in the modification or enhancement of processes or the imposition of other action plans, including concerning management oversight, sales and other customer interface procedures and practices, and the timing or computation of payments to customers and other parties. In certain cases, if appropriate, the Company may offer customers or other parties 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. 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 December 31, 2022, 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. Regulatory Variable Products The Company has received regulatory inquiries and requests for information from state and federal regulators, including subpoenas from the U.S. Securities and Exchange Commission, concerning the appropriateness of variable product sales and replacement activity. The Company is cooperating with regulators and may become subject to additional regulatory inquiries and other actions related to this 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 statements. 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 statements. |
Significant Accounting Polici_2
Significant Accounting Policies and Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation On January 1, 2023, the Company adopted ASU 2018-12, Financial Services— Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts , which provided new authoritative guidance impacting the accounting and disclosure requirements for long-duration insurance and investment contracts issued by the Company. See “Adoption of ASU 2018-12” below for additional information regarding this adoption, including the impacts to the Company’s 2022 and 2021 financial statements from implementing the new accounting standard as well as the transition impacts recorded as of January 1, 2021. See Note 2 for additional details regarding the key policy changes effected by this ASU and updated accounting policies resulting from the adoption of this ASU for the years ended December 31, 2022 and 2021 presented in the Financial Statements. The Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). Intercompany balances and transactions have been eliminated. |
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. |
Reclassifications | ReclassificationsCertain amounts in prior periods have been reclassified to conform to the current period presentation. |
New accounting pronouncements including the Adoption of ASU 2018-12 | Adoption of ASU 2018-12 Effective January 1, 2023, the Company adopted ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts . Adoption of this ASU impacted, at least to some extent, the accounting and disclosure requirements for all long-duration insurance and investment contracts issued by the Company and had a significant financial impact on the Financial Statements and disclosures. See Note 1 for additional information. As of the January 1, 2021 transition date, the adoption of the standard resulted in a decrease to “Total equity” of $67 million, primarily from remeasuring in force contract liabilities using upper-medium grade fixed income instrument yields as of the transition date and from other changes in reserves. As of the January 1, 2023 adoption date, the impact amounted to a decrease to "Total equity" of $2 million. The changes in the impacts from January 1, 2021 to January 1, 2023 primarily reflect the increase in market interest rates during 2021 and 2022. Outlined below are: (1) key accounting policy changes effected by the ASU; (2) updated accounting policies for the periods ended December 31, 2022 and 2021 presented in the Financial Statements; (3) accounting policies not impacted by the adoption of ASU 2018-12; and (4) prior accounting policies no longer applicable with the adoption of ASU 2018-12. (1) Key Accounting Policy Changes Area of Change 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-payment 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 Statements of Operations. Effective January 1, 2023 using the modified retrospective transition method, which includes a cumulative effect adjustment to the balance sheet as of January 1, 2021 (the “transition date”). Under this method, the amendments to contracts in force were applied as of January 1, 2021 on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI The impact upon transition reflects the impact on in force contract liabilities in instances where expected net premiums exceeded expected gross premiums at an issue-year cohort level as a result of updating to current best estimate cash flow assumptions as of the transition date. As a result of the modified retrospective transition method, the vast majority of the impact of updating cash flow assumptions to best estimates as of the transition date will be reflected in the pattern of earnings in subsequent periods. See Note 1 for additional information regarding the effect on the financial statements. Adoption of the standard also resulted in additional required disclosures. See Note 8 for additional information. Discount rate assumption used to measure the liability for future policy benefits for non-participating traditional and limited-payment insurance products Requires discount rate assumptions to be based on an upper-medium grade fixed income instrument yields, which will be updated each quarter with the impact recorded through OCI. An entity shall maximize the use of relevant observable information and minimize the use of unobservable information in determining the discount rate assumptions. As noted above, the guidance for the liability for future policy benefits was adopted effective January 1, 2023 using the modified retrospective transition method, which includes a cumulative effect adjustment to the balance sheet as of January 1, 2021. Under this method, for balance sheet remeasurement purposes, the liability for future policy benefits is remeasured using discount rates as of January 1, 2021 with the impact recorded as a cumulative effect adjustment to AOCI. Adoption of the ASU resulted in a significant impact to AOCI as a result of remeasuring in force contract liabilities using current upper-medium grade fixed income instrument yields. This adjustment largely reflects the difference between discount rates locked-in at contract inception versus current discount rates. See Note 1 for additional information regarding the effect on the financial statements. Adoption of the standard also resulted in additional required disclosures. See Note 8 for additional information. Amortization of deferred acquisition costs and other balances Requires DAC and other balances, such as URR and Deferred Sales Inducements ("DSI"), to be amortized on a constant level basis over the expected term of the related contract, independent of expected profitability. Effective January 1, 2023 using the modified retrospective transition method, which includes a cumulative effect adjustment to the balance sheet as of January 1, 2021. Under this method, the amendments to contracts in force were applied as of January 1, 2021 on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI. Adoption of the ASU did not have a significant impact on DAC and other balances upon transition, other than the impact of the removal of any related amounts in AOCI. See Note 1 for additional information regarding the effect on the financial statements. Adoption of the standard also resulted in additional required disclosures. See Note 6 for additional information. 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, and record MRB assets and liabilities separately on the Statements of Financial Position. Changes in the fair value of market risk benefits are recorded in net income, except for the portion attributable to changes in an entity’s NPR, which is recognized in OCI. An entity shall maximize the use of relevant observable information and minimize the use of unobservable information in determining the balance of the market risk benefits upon adoption. Effective January 1, 2023 using the retrospective transition method, which includes a cumulative effect adjustment to the balance sheet as of January 1, 2021. Adoption of the ASU resulted in an adjustment to retained earnings for the difference between the fair value and carrying value of benefits not measured at fair value prior to the adoption of the ASU (e.g., guaranteed minimum death benefits on variable annuities) and a reclass of the cumulative effect of changes in NPR from retained earnings to AOCI. See Note 1 for additional information regarding the effect on the financial statements. Adoption of the standard also resulted in additional required disclosures. See Note 10 for additional information. In addition to the significant key accounting changes noted above, ASU 2018-12 also clarified the definition of assessments used to accrue additional insurance reserves and other related balances, primarily for no-lapse guarantee features on certain universal life contracts. Application of the new guidance changed the pattern of reserve recognition for these guarantees and resulted in an increase to the net contract liabilities related to these products at transition. See Note 1 for additional information regarding the effect on the financial statements. ASU 2022-05, Financial Services – Insurance (Topic 944) Transition for Sold Contracts was issued on December 15, 2022, to amend the transition guidance in ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts . The amendment allows an insurance entity to make an accounting policy election to not apply ASU 2018-12 to contracts or legal entities sold or disposed of before the effective date, and in which the insurance entity has no significant continuing involvement with the derecognized contracts. An insurance entity is permitted to apply the policy election on a transaction by transaction basis to each sale or disposal transaction. An insurance entity is required to disclose whether it has chosen to apply this accounting policy election and provide a qualitative description of the sale or disposal transactions to which the accounting policy election is applied. The Company did not apply this accounting policy election. |
Deferred policy acquisition costs | Deferred policy acquisition costs represents costs directly related to the successful acquisition of new and renewal insurance and annuity business. Such DAC primarily includes commissions, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully acquired contracts. In each reporting period, previously capitalized DAC is amortized and included in “Amortization of deferred policy acquisition costs”, and the carrying amount of DAC is not subject to recoverability testing upon adoption of the ASU. DAC is amortized on a constant-level basis at a grouped contract level over the expected life of the underlying insurance contracts. Contracts are grouped consistent with the groupings used to estimate the liability for future policy benefits (or other related balances) for the corresponding contracts. Since contracts within a grouping may be of different sizes, contracts within a group are weighted to achieve appropriate amortization and to ensure that DAC is derecognized when a policy is no longer in force. The constant-level basis used to weight contracts within a grouping and amortize DAC is generally defined as follows: • Life insurance contracts – DAC associated with life insurance contracts is generally amortized in proportion to the initial face amount of life insurance in force. This is applicable to traditional and universal life insurance. • Payout annuity contracts – DAC associated with payout annuity contracts is amortized in proportion to annual benefit payments. • Deferred annuity contracts – DAC associated with fixed and variable deferred annuity contracts is amortized in proportion to deposits. For single premium immediate annuities without life contingencies, acquisition expenses are deferred and amortized over the expected life of the contracts using the interest method. Current period DAC amortization reflects the impact of changes in actual insurance in force during the period and changes in future assumptions effected as of the end of the quarter, where applicable. The Company typically updates actuarial assumptions annually in the second quarter, (see " Annual Assumptions Review " below), unless a material change is observed in an interim period that is indicative of a long-term trend. Generally, the Company does not expect trends to change significantly in the short-term and, to the extent these trends may change, the Company expects such changes to be gradual over the long-term. Assumptions used for DAC are consistent with those used in estimating the liability for future policy benefits (or any other related balance) for the corresponding contract. Determining the level of aggregation and actuarial assumptions used in projecting in force terminations requires judgment. Internal criteria are developed to determine the level of aggregation by considering both qualitative and quantitative materiality thresholds. The assumptions used in projecting in force terminations are mortality, mortality improvement, and lapse assumptions. These assumptions are generally based on the Company’s experience, industry experience and/or other factors, as applicable. For variable deferred annuity contracts, lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefits 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. For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. If policyholders surrender traditional life insurance policies in exchange for life insurance policies that do not have fixed and guaranteed terms, the Company immediately charges to expense the remaining unamortized DAC on the surrendered policies. For other internal replacement transactions, except those that involve the addition of a non-integrated contract feature that does not change the existing base contract, the unamortized DAC is immediately charged to expense if the terms of the new policies are not substantially similar to those of the former policies. If the new terms are substantially similar to those of the earlier policies, the DAC is retained with respect to the new policies and amortized over the expected life of the new policies. See Note 6 for additional information regarding DAC. Deferred policy acquisition costs represent costs directly related to the successful acquisition of new and renewal insurance and annuity business that have been deferred to the extent such costs are deemed recoverable from future profits. Such DAC primarily includes commissions, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully acquired contracts. In each reporting period, capitalized DAC is amortized to “Amortization of DAC,” net of the accrual of imputed interest on DAC balances. DAC is subject to periodic recoverability testing. DAC, for applicable products, is adjusted for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. DAC related to universal and variable life products and fixed and variable deferred annuity products are generally deferred and amortized over the expected life of the contracts in proportion to gross profits arising principally from investment margins, mortality and expense margins, and surrender charges, based on historical and anticipated future experience, which is updated periodically. The Company uses a reversion to the mean approach for equities to derive future equity return assumptions; however, if the projected equity return calculated using this approach is greater than the maximum equity return assumption, the maximum equity return is utilized, and if the projected equity return is negative, the return is floored at 0%. Gross profits also include impacts from the embedded derivatives associated with certain of the optional living benefit features of variable annuity contracts, and index-linked crediting features of certain universal life contracts and related hedging activities. In calculating gross profits, profits and losses related to contracts issued by the Company that are reported in affiliated legal entities other than the Company as a result of, for example, reinsurance agreements with those affiliated entities are also included. The Company is an indirect subsidiary of Prudential Financial, a United States SEC registrant, and has extensive transactions and relationships with other subsidiaries of Prudential Financial, including reinsurance agreements, as described in Note 11. Incorporating all product-related profits and losses in gross profits, including those that are reported in affiliated legal entities, produces a DAC amortization pattern representative of the total economics of the products. Total gross profits include both actual gross profits and estimates of gross profits for future periods. The Company regularly evaluates and adjusts DAC balances with a corresponding charge or credit to current period earnings, representing a cumulative adjustment to all prior periods’ amortization, for the impact of actual gross profits and changes in the Company’s projections of estimated future gross profits. Adjustments to DAC balances result from: (i) the annual review of assumptions that reflect the comprehensive review of the assumptions used in estimating gross profits for future periods; (ii) quarterly adjustments for current period experience (also referred to as “experience true-up” adjustments) that reflect the impact of differences between actual gross profits for a given period and the previously estimated expected gross profits for that period; and (iii) quarterly adjustments for market performance (also referred to as “experience unlocking”) that reflect the impact of changes to the Company’s estimate of total gross profits to reflect actual fund performance and market conditions. For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. If policyholders surrender traditional life insurance policies in exchange for life insurance policies that do not have fixed and guaranteed terms, the Company immediately charges to expense the remaining unamortized DAC on the surrendered policies. For other internal replacement transactions, except those that involve the addition of a nonintegrated contract feature that does not change the existing base contract, the unamortized DAC is immediately charged to expense if the terms of the new policies are not substantially similar to those of the former policies. If the new terms are substantially similar to those of the earlier policies, the DAC is retained with respect to the new policies and amortized over the expected life of the new policies. See Note 6 for additional information regarding DAC. |
Reinsurance recoverables | Reinsurance recoverables include corresponding receivables associated with reinsurance arrangements with affiliates and third party reinsurers, and are reported on the Statements of Financial Position net of the CECL allowance. Reinsurance recoverables also include assumed modified coinsurance arrangements which generally reflect the value of the invested assets retained by the cedant and the associated asset returns. Modified coinsurance recoverables contain an embedded derivative (bifurcated and accounted for separately from the host contract) that is presented together with the derivative embedded in the modified coinsurance payables as one compound derivative. For additional information about these arrangements see Note 11. The CECL allowance considers the credit quality of the reinsurance counterparty and is generally determined based on the probability of default and loss given default assumptions, after considering any applicable collateral arrangements. The CECL allowance does not apply to reinsurance recoverables with affiliated counterparties under common control. Additions to or releases of the allowance are reported in “Policyholders’ benefits.” Prior to the adoption of this standard, an allowance for credit losses for reinsurance recoverables was established only when it was deemed probable that a reinsurer may fail to make payments to us in a timely manner. Reinsurance premiums, commissions, expense reimbursements, benefits and reserves related to reinsured long-duration contracts under coinsurance arrangements are accounted for over the life of the underlying reinsured contracts using assumptions consistent with those used to account for the underlying contracts. For reinsurance of in force blocks of non-participating traditional and limited-payment contracts, the current value of the direct liability as of inception of the reinsurance agreement is used to calculate the reinsurance recoverable and cost of reinsurance such that there is no immediate other comprehensive income or loss from recognition of the reinsurance recoverable at inception. Consistent with the direct liability, the reinsurance recoverable for non-participating traditional and limited-payment contracts is remeasured each period using current single A rates with the effect on the liability resulting from such updates recorded in "Interest rate remeasurement of future policy benefits" in OCI. Coinsurance arrangements contrast with the Company’s yearly renewable term arrangements, where only mortality risk is transferred to the reinsurer and premiums are paid to the reinsurer to reinsure that risk. The mortality risk that is reinsured under yearly renewable term arrangements represents the difference between the stated death benefits in the underlying reinsured contracts and the corresponding reserves or account value carried by the Company on those same contracts. The premiums paid to the reinsurer are based upon negotiated amounts, not on the actual premiums paid by the underlying contract holders to the Company. As yearly renewable term arrangements are usually entered into by the Company with the expectation that the contracts will be in force for the lives of the underlying policies, they are considered to be long-duration reinsurance contracts. The cost of reinsurance for universal life products is generally recognized based on the gross assessments of the underlying direct policies. The cost of reinsurance for term insurance products is generally recognized in proportion to direct premiums over the life of the underlying policies. Reinsurance recoverables include corresponding receivables associated with reinsurance arrangements with affiliates and third-party reinsurers, and are reported on the Statements of Financial Position net of the CECL allowance. The CECL allowance considers the credit quality of the reinsurance counterparty and is generally determined based on the probability of default and loss given default assumptions, after considering any applicable collateral arrangements. The CECL allowance does not apply to reinsurance recoverables with affiliated counterparties under common control. Additions to or releases of the allowance are reported in “Policyholders’ benefits.” Prior to the adoption of this standard, an allowance for credit losses for reinsurance recoverables was established only when it was deemed probable that a reinsurer may fail to make payments to us in a timely manner. For additional information about these arrangements see Note 11. |
Market risk benefits (assets and liabilities) | Market risk benefits in an asset position are presented separately from market risk benefits in a liability position. See “ Market risk benefits ” below. Market risk benefit liabilities (or assets ) represents contracts or contract features that provide protection to the contractholder and exposes the Company to other than nominal capital market risk, primarily related to deferred annuities with guaranteed minimum benefits associated with annuities products including guaranteed minimum death benefits (“GMDB”), guaranteed minimum income benefits (“GMIB”), guaranteed minimum accumulation benefits (“GMAB”), guaranteed minimum withdrawal benefits (“GMWB”) and guaranteed minimum income and withdrawal benefits (“GMIWB”). The benefits are accounted for using a fair value measurement framework. If a contract contains multiple market risk benefits, the benefits are bundled together and accounted for as a single compound market risk benefit. Market risk benefits in an asset position are presented separately from those in a liability position as there is no legal right of offset between contracts. The fair value of market risk benefits is calculated as the present value of expected future benefit payments to contractholders less the present value of expected future rider fees attributable to the market risk benefit. The fair value of market risk benefits is based on assumptions a market participant would use in valuing market risk benefits. For additional information regarding the valuation of market risk benefits, see Note 5. On a quarterly basis, changes in the fair value of market risk benefits are recorded in net income, net of related hedges, in "Change in value of market risk benefits, net of related hedging gains (losses)", except for the portion of the change attributable to changes in the Company’s NPR which is recorded in OCI. See Note 10 for additional information regarding market risk benefits. |
Other assets and Other liabilities | Other assets consists primarily of premiums due and deferred loss on reinsurance which is amortized over the expected life of the reinsured contracts on a constant-level basis. Other liabilities consists primarily of accrued expenses, reinsurance payables and technical overdrafts. Other assets consists primarily of premiums due and deferred loss on reinsurance with affiliates. Other liabilities consists primarily of accrued expenses, reinsurance payables and technical overdrafts. |
Separate account assets and Separate account liabilities | Separate account assets represents segregated funds that are invested for certain policyholders, and other customers. The assets consist primarily of equity securities, fixed maturities, real estate-related investments, real estate mortgage loans, short-term investments and derivative instruments and are reported at fair value. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company. 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. The investment income and realized investment gains or losses from separate account assets generally accrue to the policyholders and are not included in the Company’s results of operations. Mortality, policy administration and surrender charges assessed against the accounts are included in “Policy charges and fee income”. Asset administration fees charged to the accounts are included in “Asset administration fees”. Seed money that the Company invests in separate accounts is reported in the appropriate general account asset line. Investment income and realized investment gains or losses from seed money invested in separate accounts accrue to the Company and are included in the Company’s results of operations. See Note 7 for additional information regarding separate account arrangements with contractual guarantees. See also “Separate account liabilities ” below. Separate account liabilities primarily represents the contractholders’ account balance in separate account assets and to a lesser extent borrowings of the separate account, and will be equal and offsetting to total separate account assets. See also “ Separate account assets” above. Separate account assets represents segregated funds that are invested for certain contractholders and other customers. The assets consist primarily of equity securities, fixed maturities, and real estate-related investments and are reported at fair value. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company. Investment risks associated with market value changes are borne by the contractholders, except to the extent of minimum guarantees made by the Company with respect to certain accounts. The investment income and realized investment gains or losses from separate account assets generally accrue to the contractholders and are not included in the Company’s results of operations. Mortality, policy administration and surrender charges assessed against the accounts are included in “Policy charges and fee income.” Asset administration fees charged to the accounts are included in “Asset administration fees.” See Note 7 for additional information regarding separate account arrangements with contractual guarantees. See also “Separate account liabilities ” below. Separate account liabilities primarily represents the contractholders’ account balances in separate account assets and to a lesser extent borrowings of the separate account, and will be equal and offsetting to total separate account assets. See also “ Separate account assets” above. |
Future policy benefits | Future policy benefits is primarily comprised of the present value of expected future payments to or on behalf of policyholders, where the timing and amount of payment depends on policyholder mortality or morbidity, less the present value of expected future net premiums (where net premiums are gross premiums multiplied by the Net-To-Gross ("NTG") ratio discussed below). The liability for future policy benefits is accrued over time as premium revenue is recognized. See Note 8 for additional information regarding future policy benefits. The reserving methodology used for non-participating traditional and limited-payment contracts include the following: • Cash Flow Assumptions . In measuring the liability for future policy benefits, the net premium valuation methodology is utilized. Under this methodology, a liability for future policy benefits is established using current best estimate insurance assumptions and interest rate assumptions locked-in at contract issuance date. The NTG ratio is calculated as the ratio of the present value of expected policy benefits and non-level claim settlement expenses divided by the present value of expected gross premiums. The NTG ratio is applied to gross premiums, as premium revenue is recognized, to determine net premiums. The liability is then determined as the present value of expected future policy benefits and non-level claim settlement expenses less the present value of expected future net premiums. For purposes of liability measurement, contracts are grouped into cohorts based primarily on issue year and major product line. The NTG ratio is generally updated quarterly for actual experience and annually for future cash flow assumption updates during the Company’s annual assumptions review process in the second quarter of each year unless a material change is observed in an interim period that is indicative of a long-term trend (see “ Annual Assumptions Review” below), and with the exception of claim settlement expense assumptions which the Company has made an entity-wide election to lock-in as of contract issuance. The NTG ratio is subject to a retrospective unlocking method whereby the Company updates its best estimate of cash flows expected over the life of the cohort using actual historical experience and updated future cash flow assumptions. These updated cash flows are used to calculate the revised NTG ratio, which is used to derive an updated liability for future policy benefits as of the beginning of the current reporting period, discounted at the original contract issuance discount rate. The updated liability for future policy benefit amount as of the beginning of the quarter is then compared to the carrying amount of the liability as of that same date, before the updates for actual experience or future cash flow assumptions, to determine the current period change in liability estimate. This current period change in the liability is the liability remeasurement gain or loss that is recorded through current period earnings in “Change in estimates of liability for future policy benefits.” In subsequent periods, the revised NTG ratio is used to measure the liability for future policy benefits, subject to future revisions. If a cohort is in a loss position where the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for expected future policy benefits and non-level claim settlement expenses, the NTG ratio is capped at 100%. In these instances, all changes in expected benefits resulting from both actual experience deviations and changes in future assumptions are reflected immediately. While the liability for future policy benefits cannot be less than zero (i.e., a contra-liability) at the cohort level and thus the balance is floored at zero (i.e., “flooring”), the NTG ratio may be negative. This would be the case whereby conditions have improved such that the present value of future net premiums plus the existing liability for future policy benefits as of the valuation date exceed the present value of expected future policy benefits and non-level claim settlement expenses. In this case, the negative NTG ratio would be applied going forward to gross premiums received, effectively amortizing the gain into income and reducing the liability over time. For contracts issued prior to January 1, 2021, the modified retrospective transition method was used to transition to ASU 2018-12. Under this method, the transition date of January 1, 2021 serves as the new issue date of the contracts in force for purposes of retrospectively unlocking the NTG ratio as described above. • Discount Rate Assumption. The locked-in discount rate is generally based on expected investment returns at contract inception for contracts issued prior to January 1, 2021 and the upper medium grade fixed income corporate instrument yield (i.e., global single A) at contract inception for contracts issued after January 1, 2021. The discount rate in effect at contract inception is locked-in for the calculation of the NTG ratio and accretion of interest cost on the liability through net income. However, for balance sheet remeasurement purposes, the discount rate is updated using the current single A rate at each reporting period, with the effect on the liability resulting from such update recorded in “Interest rate remeasurement of future policy benefits" in OCI. The methodology used in constructing the single A discount rate curve for discounting cash flows used to calculate the liability for future policy benefits is intended to be reflective of the characteristics of the applicable insurance liabilities. The single A discount rate curve is developed by reference to upper medium grade (low credit risk) fixed income instrument yields that reflect the duration characteristics of the applicable insurance liabilities. The single A discount curve for the United States and foreign economies, such as Japan, with observable corporate A spreads, is developed using government bond rates, plus globally equivalent public corporate A spreads in the observable periods. The definition of upper medium grade is based on Moody’s definition which includes the spectrum of A (i.e., A- to A+). The rate used in foreign operations (with the exception of certain emerging markets, as discussed below) is based on the equivalent of a single A rate from a global rating agency for corporate bonds issued in the same currency and country in which the insurance contract is written. Liquidity is considered in defining the observable period and linear extrapolation is performed to the Company's ultimate long-term economic assumptions. See “Annual Assumptions Review” below for further discussion regarding the Company’s long-term economic assumption setting process. The Company’s liability for future policy benefits also includes net liabilities for guaranteed benefits related to certain long-duration life contracts, such as no-lapse guarantee contract features (AIR liability), for which a liability is established when associated assessments are recognized (which include investment margin on policyholders' account balances in the general account and all policy charges including charges for administration, mortality, expense, surrender, and other charges). This liability is established using current best estimate assumptions and is based on the ratio of the present value of total expected excess payments (i.e., payments in excess of account value) over the life of the contract divided by the present value of total expected assessments (i.e., benefit ratio). For universal life type contracts and participating contracts, the Company performs premium deficiency tests using best estimate assumptions as of the testing date. If the liabilities determined based on these best estimate assumptions are greater than the net reserves (i.e., GAAP reserves including URR, net of reinsurance), the existing net reserves are adjusted by first reducing these assets by the amount of the deficiency or to zero through a charge to current period earnings. If the deficiency is more than these asset balances for insurance contracts, the net reserves are increased by the excess through a charge to current period earnings included in "policyholders' benefits". Since investment yields are used as the discount rate, the premium deficiency test is also performed using a discount rate based on the market yield (i.e., assuming what would be the impact if any unrealized gains (losses) were realized as of the testing date). In the event that by using the market yield a deficiency occurs, an adjustment is established for the deficiency and is included in AOCI. In certain instances, for universal life type contracts and participating contracts, the policyholder liability for a particular line of business may not be deficient in the aggregate to trigger loss recognition, but the pattern of earnings may be such that profits are expected to be recognized in earlier years followed by losses in later years. In these situations, accounting standards require that an additional liability (Profits Followed by Losses or “PFL” liability) be recognized by an amount necessary to sufficiently offset the losses that would be recognized in later years. To date, the Company has not recorded a PFL liability on any such contracts. The Company’s liability for future policy benefits also includes a liability for unpaid claims and claim adjustment expenses. The Company does not establish claim liabilities until a loss has been incurred. However, unpaid claims and claim adjustment expenses include estimates of claims that the Company believes have been incurred but have not yet been reported as of the balance sheet date. Future policy benefits represents liabilities related to certain long-duration life and annuity contracts, which are discussed more fully in Note 8. These liabilities represent reserves for the guaranteed minimum death and optional living benefit features on our variable annuity products and no-lapse guarantees for our variable and universal life products. The optional living benefits are primarily accounted for as embedded derivatives, with fair values calculated as the present value of future expected benefit payments to customers less the present value of assessed rider fees attributable to the embedded derivative feature. For additional information regarding the valuation of these optional living benefit features, see Note 5. The Company’s liability for future policy benefits also includes reserves based on the present value of estimated future payments to or on behalf of policyholders related to contracts that have fixed and guaranteed terms, where the timing and amount of payment depends on policyholder mortality and maintenance expenses less the present value of future net premiums. Expected mortality is generally based on Company experience, industry data, and/or other factors. Interest rate assumptions are based on factors such as market conditions and expected investment returns. Although mortality and interest rate assumptions are “locked-in” upon the issuance of new insurance or annuity business with fixed and guaranteed terms, significant changes in experience or assumptions may require the Company to provide for expected future losses on a product by recognizing a premium deficiency. A premium deficiency exists when the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for expected future policy benefits and expenses. If a premium deficiency is recognized, the assumptions without a provision for the risk of adverse deviation as of the premium deficiency test date are locked-in and used in subsequent valuations. The net reserves continue to be subject to premium deficiency testing. Any adjustments to future policy benefit reserves related to net unrealized gains on securities classified as available-for-sale are included in AOCI. See Note 8 for additional information regarding future policy benefits. |
Policyholders' account balances | Policyholders’ account balances liability represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. This liability is primarily associated with the accumulated account deposits, plus interest credited, less policyholder withdrawals and other charges assessed against the account balance, as applicable. These policyholders’ account balances also include provision for benefits under non-life contingent payout annuities and certain unearned revenues. The unearned revenue liability represents policy charges for services to be provided in future periods. The charges are deferred as incurred and are generally amortized over the expected life of the contract using the same methodology, factors, and assumption used to amortize DAC. See Note 9 for additional information regarding policyholders’ account balances. Policyholders' account balances also include amounts representing the fair value of embedded derivative instruments associated with the index-linked feature of certain universal life and annuity products. For additional information regarding the valuation of these embedded derivatives, see Note 5. Policyholders’ account balances represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. This liability is primarily associated with the accumulated account deposits, plus interest credited, less policyholder withdrawals and other charges assessed against the account balance, as applicable. These policyholders’ account balances also include provision for benefits under non-life contingent payout annuities. See Note 9 for additional information regarding policyholders’ account balances. Policyholders’ account balances also include amounts representing the fair value of embedded derivative instruments associated with the index-linked features of certain universal life products. For additional information regarding the valuation of these embedded derivatives, see Note 5. |
Insurance Revenue and Expense Recognition | Insurance Revenue and Expense Recognition Premiums from individual life products, other than universal and variable life contracts, are recognized when due. When premiums are due over a significantly shorter period than the period over which benefits are provided, any gross premium in excess of the net premium (i.e., the portion of the gross premium required to provide for all expected future benefits and expenses) is generally deferred and recognized into revenue in a constant relationship to insurance in force. Benefits are recorded as an expense when they are incurred. A liability for future policy benefits is recorded when premiums are recognized using the net level premium valuation methodology. Premiums from single premium immediate annuities with life contingencies are recognized when due. When premiums are due over a significantly shorter period than the period over which benefits are provided, any gross premium in excess of the net premium is generally deferred and recognized into revenue based on expected future benefit payments. Benefits are recorded as an expense when they are incurred. A liability for future policy benefits is recorded when premiums are recognized using the net level premium valuation methodology. Certain individual annuity contracts provide the contractholder a guarantee that the benefit received upon death or annuitization will be no less than a minimum prescribed amount. These benefits are generally accounted for as market risk benefits (see “ Market risk benefits ” above). Amounts received as payment for universal or variable individual life contracts, deferred fixed or variable annuities and other contracts without life contingencies are reported as deposits to “Policyholders’ account balances” and/or “Separate account liabilities.” Revenues from these contracts are reflected in “Policy charges and fee income” consisting primarily of fees assessed during the period against the policyholders’ account balances for mortality and other benefit charges, policy administration charges and surrender charges. In addition to fees, the Company earns investment income from the investment of deposits in the Company’s general account portfolio. Fees assessed that represent compensation to the Company for services to be provided in future periods and certain other fees are generally deferred and amortized into revenue over the life of the related contracts using the same methodology, factors, and assumption used to amortize DAC as described above. Benefits and expenses for these products include claims in excess of related account balances, expenses of contract administration, interest credited to policyholders’ account balances and amortization of DAC. Policyholders’ account balances also includes amounts representing the fair value of embedded derivative instruments associated with the index-linked features of certain universal life and annuity products where changes in the value of the embedded derivatives are recorded through "Realized investment gains (losses), net". For additional information regarding the valuation of these embedded derivatives, see Note 5. Insurance Revenue and Expense Recognition Premiums from individual life products, other than universal and variable life contracts, are recognized when due. Benefits are recorded as an expense when they are incurred. A liability for future policy benefits is recorded when premiums are recognized using the net level premium valuation methodology. Premiums from single premium immediate annuities with life contingencies are recognized when due. When premiums are due over a significantly shorter period than the period over which benefits are provided, any gross premium in excess of the net premium is generally deferred and recognized into revenue based on expected future benefit payments. Benefits are recorded as an expense when they are incurred. A liability for future policy benefits is recorded when premiums are recognized using the net level premium methodology. Certain individual annuity contracts provide the contractholder a guarantee that the benefit received upon death or annuitization will be no less than a minimum prescribed amount. These benefits are accounted for as insurance contracts. The Company also provides contracts with certain living benefits which are considered embedded derivatives. See Note 5 for information regarding the valuation of these embedded derivatives and Note 8 for additional information regarding these contracts. |
Investments and Investment-Related Liabilities | Fixed maturities, available-for-sale, at fair value ("AFS debt securities") includes bonds, notes and redeemable preferred stock that are carried at fair value. See Note 5 for additional information regarding the determination of fair value. The purchased cost of fixed maturities is adjusted for amortization of premiums and accretion of discounts to maturity or, if applicable, call date. AFS debt securities, where fair value is below amortized cost, are reviewed quarterly to determine whether the amortized cost basis of the security is recoverable. For mortgage-backed and asset-backed AFS debt securities, a credit impairment will be recognized in earnings as an allowance for credit losses and reported in “Realized investment gains (losses), net,” to the extent the amortized cost exceeds the net present value of projected future cash flows (the “net present value”) for the security. However, the credit impairment recorded cannot exceed the difference between the amortized cost and fair value of the respective security. The net present value used to measure a credit impairment is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the AFS debt security at the date of acquisition. Once the Company has deemed all or a portion of the amortized cost uncollectible, the allowance is removed from the balance sheet by writing down the amortized cost basis of the AFS debt security. Any amount of an AFS debt security’s change in fair value not recorded as an allowance for credit losses will be recorded in Other Comprehensive Income (loss) (“OCI”). For all other AFS debt securities, qualitative factors are first considered including, but not limited to, the extent of the decline and the reasons for the decline in value (e.g., credit events, currency or interest-rate related, including general credit spread widening), and the financial condition of the issuer. If analysis of these qualitative factors results in the security needing to be impaired, a credit impairment will be recognized and measured using the same process for mortgage-backed and asset-backed AFS debt securities. When an AFS debt security's fair value is below amortized cost and the Company has the intent to sell the AFS debt security, or it is more likely than not the Company will be required to sell the AFS debt security before its anticipated recovery, the amortized cost basis of the AFS debt security is written down to fair value and any previously recognized allowance is reversed. The write-down is reported in "Realized investment gains (losses), net." Interest income, including amortization of premium and accretion of discount, are included in “Net investment income” under the effective yield method. Prepayment premiums are also included in “Net investment income.” For high credit quality mortgage-backed and asset-backed AFS debt securities (those rated AA or above), the amortized cost and effective yield of the securities are adjusted as necessary to reflect historical prepayment experience and changes in estimated future prepayments. The adjustments to amortized cost are recorded as a charge or credit to “Net investment income” in accordance with the retrospective method. For mortgage-backed and asset-backed AFS debt securities rated below AA, the effective yield is adjusted prospectively for any changes in the estimated timing and amount of cash flows unless the investment is purchased with credit deterioration or an allowance is currently recorded for the respective security. If an investment is impaired, any changes in the estimated timing and amount of cash flows will be recorded as the credit impairment, as opposed to a yield adjustment. If the asset is purchased with credit deterioration (or previously impaired) the effective yield will be adjusted if there are favorable changes in cash flows subsequent to the allowance being reduced to zero. For mortgage-backed and asset-backed AFS debt securities, cash flow estimates consider the payment terms of the underlying assets backing a particular security, including interest rate and prepayment assumptions based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also include other assumptions regarding the underlying collateral including default rates and recoveries, which vary based on the asset type and geographic location, as well as the vintage year of the security. These assumptions can significantly impact income recognition, unrealized gains and loss recorded in OCI, and the amount of impairment recognized in earnings. The payment priority of the respective security is also considered. For all other AFS debt securities, cash flow estimates are driven by assumptions regarding probability of default and estimates regarding timing and amount of recoveries associated with a default. The Company has developed these estimates using information based on its historical experience as well as using market observable data, such as industry analyst reports and forecasts, sector credit ratings and other data relevant to the collectability of a security, such as the general payment terms of the security and the security’s position within the capital structure of the issuer. Fixed maturities, trading, at fair value ("Trading debt securities") includes debt securities that are carried at fair value. See Note 5 for additional information regarding the determination of fair value. Realized and unrealized gains and losses for these investments are reported in “Other income (loss),” and interest income from these investments is reported in “Net investment income”. Equity securities, at fair value consists of common stock and mutual fund shares carried at fair value. Realized and unrealized gains and losses on these investments are reported in “Other income (loss),” and dividend income is reported in “Net investment income” on the ex-dividend date. Policy loans represents funds loaned to policyholders up to the cash surrender value of the associated insurance policies and are carried at the unpaid principal balances due to the Company from the policyholders. Interest income on policy loans is recognized in “Net investment income” at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies. Short-term investments primarily consists of highly liquid debt instruments with a maturity of twelve months or less and greater than three months when purchased. These investments are generally carried at fair value or amortized cost that approximates fair value and include certain money market investments, funds managed similar to regulated money market funds, short-term debt securities issued by government sponsored entities and other highly liquid debt instruments. Commercial mortgage and other loans consist of commercial mortgage loans and agricultural property loans. Commercial mortgage and other loans held for investment are generally carried at unpaid principal balance, net of unamortized deferred loan origination fees and expenses and net of any current expected credit loss ("CECL") allowance. Certain off-balance sheet credit exposures (e.g., indemnification of serviced mortgage loans, and certain unfunded mortgage loan commitments where the Company cannot unconditionally cancel the commitment) are also subject to a CECL allowance. See Note 16 for additional information. Commercial mortgage and other loans acquired, including those related to the acquisition of a business, are recorded at fair value when purchased, reflecting any premiums or discounts to unpaid principal balances. Interest income, and the amortization of the related premiums or discounts, are included in “Net investment income” under the effective yield method. Prepayment fees are also included in “Net investment income.” Effective January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and related ASUs, using a modified retrospective method for certain financial assets carried at amortized cost and certain off-balance sheet exposures. Adoption of these ASUs requires an entity to estimate lifetime credit losses for certain financial assets carried at amortized cost and certain off-balance sheet exposures based on relevant information about past events, current conditions, and reasonable and supportable forecasts that may affect the collectability of reported amounts. The most significant impact is from modifications made to the Company’s process for measuring credit losses for its commercial mortgage and other loans classified as held for investment. The impact of the standard resulted in a cumulative effect adjustment to opening retained earnings in the amount of $0.2 million, primarily related to commercial mortgage and other loans. The impact of adoption is not material to the following financial statement line items: income taxes payable and other liabilities. The prospective adoption of the portions of the standard related to fixed maturities, available-for-sale resulted in no impact to opening retained earnings. The CECL allowance represents the Company’s best estimate of expected credit losses over the remaining life of the assets or off-balance sheet credit exposures. The determination of the allowance considers historical credit loss experience, current conditions, and reasonable and supportable forecasts. Prior to the adoption of ASU 2016-13, the allowance was based upon credit losses that were probable of occurring for recognized loans, not an estimate of credit losses that may occur over the remaining life of the asset. The allowance is calculated separately for commercial mortgage loans, agricultural mortgage loans, other collateralized and uncollateralized loans. For commercial mortgage and agricultural mortgage loans, the allowance is calculated using an internally developed CECL model that pools together loans that share similar risk characteristics. Similar risk characteristics used to create the pools include, but are not limited to, vintage, maturity, credit rating, and collateral type. Key inputs to the CECL model include unpaid principal balances, internal credit ratings, annual expected loss factors, average lives of the loans adjusted for prepayment considerations, current and historical interest rate assumptions, and other factors influencing the Company’s view of the current stage of the economic cycle and future economic conditions. Subjective considerations include a review of whether historical loss experience is representative of current market conditions and the Company’s view of the credit cycle. Model assumptions and factors are reviewed and updated as appropriate. Information about certain key inputs is detailed below. Key factors in determining the internal credit ratings for commercial mortgage and agricultural mortgage loans include loan-to-value and debt-service-coverage ratios. Other factors include amortization, loan term, and estimated market value growth rate and volatility for the property type and region. The loan-to-value ratio compares the carrying amount of the loan to the fair value of the underlying property or properties collateralizing the loan, and is commonly expressed as a percentage. Loan-to-value ratios greater than 100% indicate that the carrying amount of the loan exceeds the collateral value. A loan-to-value ratio less than 100% indicates an excess of collateral value over the carrying amount of the loan. The debt service coverage ratio is a property’s net operating income as a percentage of its debt service payments. Debt service coverage ratios less than 1.0 indicates that property operations do not generate enough income to cover the loan’s current debt payments. A debt service coverage ratio greater than 1.0 indicates an excess of net operating income over the debt service payments. The values utilized in calculating these ratios are developed as part of the Company’s periodic review of the commercial mortgage loan and agricultural property loan portfolios, which includes an internal appraisal of the underlying collateral value. The Company’s periodic review also includes a quality re-rating process, whereby the internal quality rating originally assigned at underwriting is updated based on current loan, property and market information using a proprietary quality rating system. See Note 3 for additional information related to the loan-to-value ratios and debt service coverage ratios related to the Company’s commercial mortgage and agricultural loan portfolios. Annual expected loss rates are based on historical default and loss experience factors. Using average lives, the annual expected loss rates are converted into life-of-loan loss expectations. When individual loans no longer have the credit risk characteristics of the commercial or agricultural mortgage loan pools, they are removed from the pools and are evaluated individually for an allowance. The allowance is determined based on the outstanding loan balance less the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. The CECL allowance on commercial mortgage and other loans can increase or decrease from period to period based on the factors noted above. The change in allowance is reported in “Realized investment gains (losses), net.” As it relates to unfunded commitments that are in scope of this guidance, the CECL allowance is reported in “Other liabilities,” and the change in the allowance is reported in “Realized investment gains (losses), net.” The CECL allowance for other collateralized and uncollateralized loans (e.g., corporate loans) carried at amortized cost is determined based on probability of default and loss given default assumptions by sector, credit quality and average lives of the loans. Additions to or releases of the allowance are reported in “Realized investment gains (losses), net.” Once the Company has deemed a portion of the amortized cost to be uncollectible, the uncollectible portion of allowance is removed from the balance sheet by writing down the amortized cost basis of the loan. The carrying amount of the loan is not adjusted for subsequent recoveries in value. Interest received on loans that are past due is either applied against the principal or reported as net investment income based on the Company’s assessment as to the collectability of the principal. The Company defines “past due” as principal or interest not collected at least 30 days past the scheduled contractual due date. See Note 3 for additional information about the Company’s past due loans. The Company discontinues accruing interest on loans after the loans become 90 days delinquent as to principal or interest payments, or earlier when the Company has doubts about collectability. When the Company discontinues accruing interest on a loan, any accrued but uncollectible interest on the loan and other loans backed by the same collateral, if any, is charged against interest income in the same period. Generally, a loan is restored to accrual status only after all delinquent interest and principal are brought current and, in the case of loans where the payment of interest has been interrupted for a substantial period, or the loan has been modified, a regular payment performance has been established. Commercial mortgage and other loans are occasionally restructured in a troubled debt restructuring (“TDR”). These restructurings generally include one or more of the following: full or partial payoffs outside of the original contract terms; changes to interest rates; extensions of maturity; or additions or modifications to covenants. Additionally, the Company may accept assets in full or partial satisfaction of the debt as part of a TDR. When restructurings occur, they are evaluated individually to determine whether the restructuring or modification constitutes a TDR as defined by authoritative accounting guidance. If the borrower is experiencing financial difficulty and the Company has granted a concession, the restructuring, including those that involve a partial payoff or the receipt of assets in full satisfaction of the debt is deemed to be a TDR. When there is a reasonable expectation that the Company will execute a TDR, all effects of the potential restructuring are considered for the estimation of the CECL allowance. When a loan is modified in a TDR, the CECL allowance of the loan is remeasured using the modified terms and the loan’s original effective yield, and the allowance is adjusted accordingly. The loan will be evaluated to determine whether the loan no longer has similar credit risk characteristics of the commercial or agricultural mortgage loan pools and need to be evaluated for an allowance on an individual basis. Subsequent to the modification, income is recognized prospectively based on the modified terms of the loan. In a TDR where the Company receives assets in full satisfaction of the debt, any CECL allowance is reversed and a direct write-down of the loan is recorded for the amount of the allowance, and any additional loss, net of recoveries, or any gain is recorded for the difference between the fair value of the assets received and the recorded investment in the loan. When assets are received in partial settlement, the same process is followed, and the remaining loan is evaluated prospectively for credit impairment based on the CECL allowance process noted above. Other invested assets consist of the Company’s non-coupon investments in limited partnerships and limited liability companies ("LPs/LLCs"), other than operating joint ventures, as well as derivative assets. LPs/LLCs interests are accounted for using either the equity method of accounting, or at fair value. 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 (loss)”. |
Cash and cash equivalents | Cash and cash equivalents includes cash on hand, amounts due from banks, certain money market investments, funds managed similar to regulated money market funds, other debt instruments with maturities of three months or less when purchased, other than cash equivalents that are included in "Fixed maturities, available-for-sale, at fair value,” and receivables related to securities purchased under agreements to resell (see also "Securities sold under agreements to purchase" below.) The Company also engages in overnight borrowing and lending of funds with Prudential Financial and affiliates which are considered cash and cash equivalents. These assets are generally carried at fair value or amortized cost which approximates fair value. |
Accrued investment income | Accrued investment income primarily includes accruals of interest and dividend income from investments that have been earned but not yet received. |
Income tax assets | Income tax assets primarily represents the net deferred tax asset and the Company’s estimated taxes receivable for the current year and open audit years. The Company is a member of the federal income tax return of Prudential Financial and primarily files separate company state and local tax returns. Pursuant to the tax allocation arrangement with Prudential Financial, total federal income tax expense is determined on a separate company basis. Members record tax benefits to the extent tax losses or tax credits are recognized in the consolidated federal tax provision. Items required by tax regulations to be included in the tax return may differ from the items reflected in the financial statements. As a result, the effective tax rate reflected in the financial statements may be different than the actual rate applied on the tax return. Some of these differences are permanent such as expenses that are not deductible in the Company’s tax return, and some differences are temporary, reversing over time, such as valuation of insurance reserves. Temporary differences create deferred tax assets and liabilities. Deferred tax assets generally represent items that can be used as a tax deduction or credit in future years for which the Company has already recorded the tax benefit in the Company’s Statements of Operations. Deferred tax liabilities generally represent tax expense recognized in the Company’s financial statements for which payment has been deferred, or expenditures for which the Company has already taken a deduction in the Company’s tax return but have not yet been recognized in the Company’s financial statements. Deferred income taxes are recognized, based on enacted rates, when assets and liabilities have different values for financial statement and tax reporting purposes. The application of U.S. GAAP requires the Company to evaluate the recoverability of the Company’s deferred tax assets and establish a valuation allowance if necessary to reduce the Company’s deferred tax assets to an amount that is more likely than not expected to be realized. Considerable judgment is required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance. See Note 12 for a discussion of factors considered when evaluating the need for a valuation allowance. U.S. GAAP prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that a company has taken or expects to take on tax returns. The application of this guidance is a two-step process. First, the Company determines whether it is more likely than not, based on the technical merits, that the tax position will be sustained upon examination. If a tax position does not meet the more likely than not recognition threshold, the benefit of that position is not recognized in the financial statements. The second step is measurement. The Company measures the tax position as the largest amount of benefit that is greater than 50 percent likely to be realized upon ultimate resolution with a taxing authority that has full knowledge of all relevant information. This measurement considers the amounts and probabilities of the outcomes that could be realized upon ultimate settlement using the facts, circumstances, and information available at the reporting date. |
Cash collateral for loaned securities | Cash collateral for loaned securities represents liabilities to return cash proceeds from security lending transactions. Securities lending transactions are used primarily to earn spread income or to facilitate trading activity. As part of securities lending transactions, the Company transfers U.S. and foreign debt and equity securities, as well as U.S. government and government agency securities, and receives cash as collateral. Cash proceeds from securities lending transactions are primarily used to earn spread income, and are typically invested in cash equivalents, short-term investments or fixed maturities. Securities lending transactions are treated as financing arrangements and are recorded at the amount of cash received. The Company obtains collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. The Company monitors the market value of the securities loaned on a daily basis with additional collateral obtained as necessary. Substantially all of the Company’s securities lending transactions are with large brokerage firms and large banks. Income and expenses associated with securities lending transactions used to earn spread income are reported as “Net investment income.” |
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase represents liabilities associated with securities repurchase agreements that are used primarily to earn spread income. As part of securities repurchase agreements, the Company transfers U.S. government and government agency securities to a third-party, and receives cash as collateral. For securities repurchase agreements, the cash received is typically invested in cash equivalents, short-term investments or fixed maturities. Receivables associated with securities purchased under agreements to resell are generally reflected as cash equivalents. As part of securities resale agreements, the Company invests cash and receives as collateral U.S. government securities or other debt securities. Securities repurchase and resale agreements that satisfy certain criteria are treated as secured borrowing or secured lending arrangements. These agreements are carried at the amounts at which the securities will be subsequently resold or reacquired, as specified in the respective transactions. For securities purchased under agreements to resell, the Company’s policy is to take possession or control of the securities either directly or through a third-party custodian. These securities are valued daily, and additional securities or cash collateral is received, or returned, when appropriate to protect against credit exposure. Securities to be resold are the same, or substantially the same, as the securities received. The majority of these transactions are with large brokerage firms and large banks. For securities sold under agreements to repurchase, the market value of the securities to be repurchased is monitored, and additional collateral is obtained where appropriate, to protect against credit exposure. The Company obtains collateral in an amount at least equal to 95% of the fair value of the securities sold. Securities to be repurchased are the same, or substantially the same, as those sold. The majority of these transactions are with highly rated money market funds. Income and expenses related to these transactions executed within the insurance companies used to earn spread income are reported as “Net investment income.” |
Commitments and contingent liabilities | Commitments and contingent liabilities are accrued if it is probable that a liability has been incurred and an amount is reasonably estimable. Management evaluates whether there are incremental legal or other costs directly associated with the ultimate resolution of the matter that are reasonably estimable and, if so, they are included in the accrual. These accruals are generally reported in “Other liabilities ”. |
Asset administration fees | Asset administration fees primarily include asset administration fee income received on contractholders’ account balances invested in The Prudential Series Funds, which are a portfolio of mutual fund investments related to the Company’s separate account products. Also, the Company receives fee income calculated on contractholder separate account balances invested in the Advanced Series Trust ("AST") (see Note 15). In addition, the Company receives fees from contractholders’ account balances invested in funds managed by companies other than affiliates of Prudential Insurance. Asset administration fees are recognized as income when earned. |
Other income | Other income (loss) includes realized and unrealized gains or losses from investments reported as “Fixed maturities, trading, at fair value”, “Equity securities, at fair value”, and “Other invested assets” that are measured at fair value. Realized investment gains (losses), net includes realized gains or losses from sales and maturities of investments, changes to the allowance for credit losses, other impairments, fair value changes on mortgage loans where the fair value option has been elected, releases of Other Comprehensive Income and derivative gains or losses. The derivative gains or losses include the impact of maturities, terminations and changes in fair value of the derivative instruments, including embedded derivatives, and other hedging instruments. |
Derivative Financial Instruments | Derivative Financial Instruments Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, values of securities or commodities, credit spreads, market volatility, expected returns, and liquidity. Values can also be affected by changes in estimates and assumptions, including those related to counterparty behavior and NPR used in valuation models. Derivative financial instruments generally used by the Company include swaps, futures, forwards and options and may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties, while others are bilateral contracts between two counterparties. Derivative positions are carried at fair value, generally by obtaining quoted market prices or through the use of valuation models. Derivatives are used to manage the interest rate and currency characteristics of assets or liabilities. Additionally, derivatives may be used to reduce exposure to interest rate, credit, foreign currency and equity risks associated with assets held or expected to be purchased or sold, and liabilities incurred or expected to be incurred. As discussed in detail below and in Note 4, all realized and unrealized changes in fair value of derivatives are recorded in current earnings, with the exception of cash flow hedges. Cash flows from derivatives are reported in the operating, investing or financing activities sections in the Statements of Cash Flows based on the nature and purpose of the derivative. Derivatives are recorded either as assets, within "Other invested assets", or as liabilities, within “Payables to parent and affiliates”, except for embedded derivatives which are recorded with the associated host contract. The Company nets the fair value of all derivative financial instruments with counterparties for which a master netting arrangement has been executed. The Company designates derivatives as either (1) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow” hedge); or (2) a derivative that does not qualify for hedge accounting. To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated risk of the hedged item. Effectiveness of the hedge is formally assessed at inception and throughout the life of the hedging relationship. The Company formally documents at inception all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives designated as cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. When a derivative is designated as a cash flow hedge and is determined to be highly effective, changes in its fair value are recorded in AOCI until earnings are affected by the variability of cash flows being hedged (e.g., when periodic settlements on a variable-rate asset or liability are recorded in earnings). At that time, the related portion of deferred gains or losses on the derivative instrument is reclassified and reported in the Statements of Operations line item associated with the hedged item. If it is determined that a derivative no longer qualifies as an effective cash flow hedge or management removes the hedge designation, the derivative will continue to be carried on the balance sheet at its fair value, with changes in fair value recognized currently in “Realized investment gains (losses), net”. The component of AOCI related to discontinued cash flow hedges is reclassified to the Statements of Operations line associated with the hedged cash flows consistent with the earnings impact of the original hedged cash flows. When hedge accounting is discontinued because the hedged item no longer meets the definition of a firm commitment, or because it is probable that the forecasted transaction will not occur by the end of the specified time period, the derivative will continue to be carried on the balance sheet at its fair value, with changes in fair value recognized currently in “Realized investment gains (losses), net”. Any asset or liability that was recorded pursuant to recognition of the firm commitment is removed from the balance sheet and recognized currently in “Realized investment gains (losses), net”. Gains and losses that were in AOCI pursuant to the hedge of a forecasted transaction are recognized immediately in “Realized investment gains (losses), net”. If a derivative does not qualify for hedge accounting, all changes in its fair value, including net receipts and payments, are included in “Realized investment gains (losses), net” without considering changes in the fair value of the economically associated assets or liabilities. The Company is a party to financial instruments that contain derivative instruments that are “embedded” in the financial instruments. At inception, the Company assesses whether the economic characteristics of the embedded instrument are clearly and closely related to the economic characteristics of the remaining component of the financial instrument (i.e., the host contract) and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When it is determined that (1) the embedded instrument possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and (2) a separate instrument with the same terms would qualify as a derivative instrument, the embedded instrument qualifies as an embedded derivative that is separated from the host contract, carried at fair value, and changes in its fair value are included in “Realized investment gains (losses), net.” For certain financial instruments that contain an embedded derivative that otherwise would need to be bifurcated and reported at fair value, the Company may elect to carry the entire instrument at fair value and report it within “Other invested assets”, or as liabilities within “Payables to parent and affiliates”. The Company sells variable annuity contracts that include optional living benefit features that may be treated from an accounting perspective as embedded derivatives. Effective April 1, 2016, the Company reinsured the variable annuity base contracts, along with the living benefit guarantees, to Prudential Insurance under a coinsurance and modified coinsurance agreement. See Note 11 for additional information. The embedded derivatives related to the living benefit features and the related reinsurance agreements are carried at fair value and included in “Future policy benefits” and “Reinsurance recoverables”. Changes in the fair value are determined using valuation models as described in Note 5 and are recorded in “Realized investment gains (losses), net”. |
Future Adoption Of New Accounting Pronouncements | Other ASU issued but not yet adopted as of December 31, 2022 Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosure This ASU eliminates the accounting guidance for TDR for creditors and adds enhanced disclosure requirements for certain loan refinancings and restructurings by creditors made to borrowers experiencing financial difficulty. Following adoption of the ASU, all loan refinancings and restructurings are subject to the modification guidance in ASC 310-20. This ASU also amends the guidance on the vintage disclosures to require disclosure of current-period gross write-offs by year of origination. January 1, 2023 using the prospective method with an option to apply a modified retrospective transition method for the recognition and measurement of TDRs which will include a cumulative effect adjustment on the balance sheet in the period of adoption. The Company does not expect the adoption of the ASU to have a significant impact on the Financial Statements and Notes to the Financial Statements. |
Business and Basis of Present_2
Business and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Pronouncements and Change in Accounting Principle [Line Items] | |
Deferred Policy Acquisition Costs | The following tables show a rollforward for the lines of business that contain DAC balances, along with a reconciliation to the Company's total DAC balance: Term Life Variable / Universal Life Total (in thousands) Balance, January 1, 2021 $ 51,527 $ 192,691 $ 244,218 Capitalization 17,427 65,297 82,724 Amortization expense (6,863) (11,335) (18,198) Other 0 0 0 Balance, December 31, 2021 $ 62,091 $ 246,653 $ 308,744 Capitalization 14,911 47,531 62,442 Amortization expense (6,737) (12,553) (19,290) Other (52) 30 (22) Balance, December 31, 2022 $ 70,213 $ 281,661 $ 351,874 2020 (in thousands) Balance, beginning of year $ 178,813 Capitalization of commissions, sales and issue expenses 76,544 Amortization-Impact of assumption and experience unlocking and true-ups (6,688) Amortization-All other (11,431) Change due to unrealized investment gains and losses (12,813) Balance, end of year 224,425 Transition adjustments(1) 19,793 Balance after transition, January 1, 2021 $ 244,218 (1) Adjustments for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Liability for Future Policy Benefit (DRL, Benefit Reserves, DPL, and Additional Insurance Reserves) | The balances of and changes in Benefit Reserves as of and for the periods indicated consist of the three tables presented below: Present Value of Expected Net Premiums rollforward, Present Value of Expected Future Policy Benefits rollforward, and Net Liability for Future Policy Benefits. December 31, 2022 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 1,641,933 $ 0 $ 1,641,933 Effect of cumulative changes in discount rate assumptions, beginning of period (253,752) 0 (253,752) Balance at original discount rate, beginning of period 1,388,181 0 1,388,181 Effect of assumption update 174,263 0 174,263 Effect of actual variances from expected experience and other activity (29,416) (746) (30,162) Adjusted balance, beginning of period 1,533,028 (746) 1,532,282 Issuances 58,215 2,110 60,325 Net premiums / considerations collected (170,297) (1,364) (171,661) Interest accrual 69,424 0 69,424 Balance at original discount rate, end of period 1,490,370 0 1,490,370 Effect of cumulative changes in discount rate assumptions, end of period (73,563) 0 (73,563) Balance, end of period $ 1,416,807 $ 0 $ 1,416,807 December 31, 2022 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 3,041,562 $ 19,314 $ 3,060,876 Effect of cumulative changes in discount rate assumptions, beginning of period (561,455) (1,459) (562,914) Balance at original discount rate, beginning of period 2,480,107 17,855 2,497,962 Effect of assumption update 255,336 0 255,336 Effect of actual variances from expected experience and other activity (60,049) 149 (59,900) Adjusted balance, beginning of period 2,675,394 18,004 2,693,398 Issuances 58,215 2,111 60,326 Interest accrual 129,657 627 130,284 Benefit payments (173,998) (2,308) (176,306) Other adjustments (115) (75) (190) Balance at original discount rate, end of period 2,689,153 18,359 2,707,512 Effect of cumulative changes in discount rate assumptions, end of period (137,962) (1,899) (139,861) Balance, end of period $ 2,551,191 $ 16,460 $ 2,567,651 December 31, 2022 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, pre-flooring $ 1,134,384 $ 16,460 $ 1,150,844 Flooring impact, end of period 0 0 0 Balance, end of period, post-flooring 1,134,384 16,460 1,150,844 Less: Reinsurance recoverable 1,002,277 16,460 1,018,737 Balance after reinsurance recoverable, end of period, post-flooring $ 132,107 $ 0 $ 132,107 December 31, 2021 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 1,762,111 $ 0 $ 1,762,111 Effect of cumulative changes in discount rate assumptions, beginning of period (352,891) 0 (352,891) Balance at original discount rate, beginning of period 1,409,220 0 1,409,220 Effect of assumption update 5,651 0 5,651 Effect of actual variances from expected experience and other activity (13,285) 0 (13,285) Adjusted balance, beginning of period 1,401,586 0 1,401,586 Issuances 75,944 3,763 79,707 Net premiums / considerations collected (155,282) (3,763) (159,045) Interest accrual 65,933 0 65,933 Balance at original discount rate, end of period 1,388,181 0 1,388,181 Effect of cumulative changes in discount rate assumptions, end of period 253,752 0 253,752 Balance, end of period $ 1,641,933 $ 0 $ 1,641,933 December 31, 2021 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 3,212,658 $ 17,969 $ 3,230,627 Effect of cumulative changes in discount rate assumptions, beginning of period (753,963) (2,188) (756,151) Balance at original discount rate, beginning of period 2,458,695 15,781 2,474,476 Effect of assumption update 5,817 0 5,817 Effect of actual variances from expected experience and other activity (9,219) (297) (9,516) Adjusted balance, beginning of period 2,455,293 15,484 2,470,777 Issuances 75,944 3,763 79,707 Interest accrual 120,981 620 121,601 Benefit payments (171,572) (2,012) (173,584) Other adjustments (539) 0 (539) Balance at original discount rate, end of period 2,480,107 17,855 2,497,962 Effect of cumulative changes in discount rate assumptions, end of period 561,455 1,459 562,914 Balance, end of period $ 3,041,562 $ 19,314 $ 3,060,876 December 31, 2021 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, pre-flooring $ 1,399,629 $ 19,314 $ 1,418,943 Flooring impact, end of period 899 0 899 Balance, end of period, post-flooring 1,400,528 19,314 1,419,842 Less: Reinsurance recoverable 1,216,756 19,314 1,236,070 Balance after reinsurance recoverable, end of period, post-flooring $ 183,772 $ 0 $ 183,772 The following tables provide supplemental information related to the balances of and changes in Benefit Reserves included in the disaggregated tables above, on a gross (direct and assumed) basis, as of and for the periods indicated: December 31, 2022 Term Life Fixed Annuities ($ in thousands) Undiscounted expected future gross premiums $ 3,073,048 $ 0 Discounted expected future gross premiums (at original discount rate) $ 2,069,441 $ 0 Discounted expected future gross premiums (at current discount rate) $ 1,973,031 $ 0 Undiscounted expected future benefits and expenses $ 4,352,500 $ 24,056 Interest accrual $ 60,233 $ 627 Gross premiums $ 242,406 $ 1,700 Weighted-average duration of the liability in years (at original discount rate) 11 7 Weighted-average duration of the liability in years (at current discount rate) 10 6 Weighted-average interest rate (at original discount rate) 5.33 % 3.56 % Weighted-average interest rate (at current discount rate) 5.40 % 5.30 % December 31, 2021 Term Life Fixed Annuities ($ in thousands) Undiscounted expected future gross premiums $ 3,309,037 $ 0 Discounted expected future gross premiums (at original discount rate) $ 2,185,726 $ 0 Discounted expected future gross premiums (at current discount rate) $ 2,597,734 $ 0 Undiscounted expected future benefits and expenses $ 4,023,185 $ 23,747 Interest accrual $ 55,048 $ 620 Gross premiums $ 241,783 $ 4,553 Weighted-average duration of the liability in years (at original discount rate) 11 7 Weighted-average duration of the liability in years (at current discount rate) 11 7 Weighted-average interest rate (at original discount rate) 5.37 % 3.56 % Weighted-average interest rate (at current discount rate) 2.54 % 2.48 % For additional information regarding observable market information and the techniques used to determine the interest rate assumptions seen above, see Note 2. The balances of and changes in Deferred Profit Liability as of and for the periods indicated are as follows: December 31, 2022 December 31, 2021 Fixed Annuities (in thousands) Balance, beginning of period $ 1,726 $ 984 Effect of actual variances from expected experience and other activity (169) 98 Adjusted balance, beginning of period 1,557 1,082 Profits deferred 309 771 Interest accrual 60 60 Amortization (222) (187) Other adjustments (20) 0 Balance, end of period 1,684 1,726 Less: Reinsurance recoverable 1,684 1,726 Balance after reinsurance recoverable $ 0 $ 0 The following table provides supplemental information related to the balances of and changes in Deferred Profit Liability, included in the disaggregated table above, on a gross (direct and assumed) basis, as of and for the period indicated: December 31, 2022 December 31, 2021 Fixed Annuities (in thousands) Revenue(1) $ 42 $ (742) Interest accrual 60 60 (1) Represents the gross premiums collected in changes in deferred profit liability. The following table shows a rollforward of AIR balances for variable and universal life products, for the periods indicated: December 31, 2022 December 31, 2021 (in thousands) Balance including amounts in AOCI, beginning of period, post-flooring $ 703,968 $ 642,514 Flooring impact and amounts in AOCI (71,467) (95,331) Balance, excluding amounts in AOCI, beginning of period, pre-flooring 632,501 547,183 Effect of assumption update 180,404 369 Effect of actual variances from expected experience and other activity (39,475) 8,089 Adjusted balance, beginning of period 773,430 555,641 Assessments collected(1) 134,822 62,891 Interest accrual 27,479 20,039 Benefits paid (17,138) (6,070) Balance, excluding amounts in AOCI, end of period, pre-flooring 918,593 632,501 Flooring impact and amounts in AOCI (91,115) 71,467 Balance, including amounts in AOCI, end of period, post-flooring 827,478 703,968 Less: Reinsurance recoverable 793,577 666,813 Balance after reinsurance recoverable, including amounts in AOCI, end of period $ 33,901 $ 37,155 (1) Represents the portion of gross assessments required to fund the future policy benefits. December 31, 2022 December 31, 2021 ($ in thousands) Interest accrual $ 27,479 $ 20,039 Gross assessments $ 303,979 $ 215,741 Weighted-average duration of the liability in years (at original discount rate) 28 26 Weighted-average interest rate (at original discount rate) 3.41 % 3.44 % The following table presents the reconciliation of the ending balances from the above rollforwards, Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability including other liabilities, gross of related reinsurance recoverables, to the total liability for Future Policy Benefits as reported on the Company's Statements of Financial Position as of the periods indicated: December 31, 2022 December 31, 2021 (in thousands) Benefit reserves, end of period, post-flooring $ 1,150,844 $ 1,419,842 Additional insurance reserves, including amounts in AOCI, end of period, post-flooring 827,478 703,968 Deferred profit liability, end of period, post-flooring 1,684 1,726 Subtotal of amounts disclosed above 1,980,006 2,125,536 Other Future policy benefits reserves(1) 150,036 235,587 Total Future policy benefits $ 2,130,042 $ 2,361,123 (1) Represents balances for which disaggregated rollforward disclosures are not required, including unpaid claims and claims expenses, and incurred but not reported and in course of settlement claim liabilities. The following tables present revenue and interest expense related to Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability, as well as related revenue and interest expense not presented in the above supplemental tables, in the Company's Statement of Operations for the periods indicated: December 31, 2022 Revenues(1) Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 1,700 $ 242,406 $ 0 $ 244,106 Additional insurance reserves 0 0 303,979 303,979 Deferred profit liability 42 0 0 42 Total $ 1,742 $ 242,406 $ 303,979 $ 548,127 December 31, 2021 Revenues(1) Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 4,553 $ 241,783 $ 0 $ 246,336 Additional insurance reserves 0 0 215,741 215,741 Deferred profit liability (742) 0 0 (742) Total $ 3,811 $ 241,783 $ 215,741 $ 461,335 (1) Represents "Gross premiums" for benefit reserves; "Gross assessments" for additional insurance reserves; and "Revenue" for deferred profit liability. December 31, 2022 Interest Expense Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 627 $ 60,233 $ 0 $ 60,860 Additional insurance reserves 0 0 27,479 27,479 Deferred profit liability 60 0 0 60 Total $ 687 $ 60,233 $ 27,479 $ 88,399 December 31, 2021 Interest Expense Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 620 $ 55,048 $ 0 $ 55,668 Additional insurance reserves 0 0 20,039 20,039 Deferred profit liability 60 0 0 60 Total $ 680 $ 55,048 $ 20,039 $ 75,767 |
Additional Liability, Long-Duration Insurance (URR and Cost of Reinsurance) | The balances of and changes in URR as of and for the periods ended are as follows: December 31, 2022 December 31, 2021 Variable Life / Universal Life (in thousands) Balance, beginning of period $ 251,573 $ 186,582 Unearned revenue 75,757 76,179 Amortization expense (13,681) (11,188) Other adjustments 61 0 Balance, end of period 313,710 251,573 Less: Reinsurance recoverables 81,256 63,830 Unearned revenue reserve net of reinsurance recoverables $ 232,454 $ 187,743 |
Market Risk Benefits | The following tables show a rollforward of MRB balances for variable annuity products, along with a reconciliation to the Company’s total net MRB positions as of the following dates: December 31, 2022 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 796,913 $ (796,913) $ 0 Effect of cumulative changes in non-performance risk 21,123 0 21,123 Balance, beginning of period, before effect of changes in non-performance risk 818,036 (796,913) 21,123 Attributed fees collected 117,867 (117,867) 0 Claims paid (3,456) 3,456 0 Interest accrual 12,950 (12,950) 0 Actual in force different from expected 10,199 (10,199) 0 Effect of changes in interest rates (642,920) 642,920 0 Effect of changes in equity markets 266,177 (266,177) 0 Effect of assumption update (17,430) 17,430 0 Effect of changes in current period counterparty non-performance risk 0 142,046 142,046 Balance, end of period, before effect of changes in non-performance risk 561,423 (398,254) 163,169 Effect of cumulative changes in non-performance risk (163,169) 0 (163,169) Balance, end of period $ 398,254 $ (398,254) $ 0 December 31, 2021 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 1,205,571 $ (1,205,571) $ 0 Effect of cumulative changes in non-performance risk 60,792 0 60,792 Balance, beginning of period, before effect of changes in non-performance risk 1,266,363 (1,205,571) 60,792 Attributed fees collected 129,583 (129,583) 0 Claims paid (199) 199 0 Interest accrual 2,200 (2,200) 0 Actual in force different from expected 934 (934) 0 Effect of changes in interest rates (324,926) 324,926 0 Effect of changes in equity markets (235,734) 235,734 0 Effect of assumption update (20,185) 20,185 0 Effect of changes in current period counterparty non-performance risk 0 (39,669) (39,669) Balance, end of period, before effect of changes in non-performance risk 818,036 (796,913) 21,123 Effect of cumulative changes in non-performance risk (21,123) 0 (21,123) Balance, end of period $ 796,913 $ (796,913) $ 0 The following table presents accompanying information to the rollforward table above. See Note 9 for information on "Net amount at risk". December 31, 2022 December 31, 2021 Variable Annuities ($ in thousands) Net amount at risk(1) $ 1,050,063 $ 128,292 Weighted-average attained age of contractholders 68 65 (1) For contracts with multiple benefit features, the highest net amount at risk for each contract is included. The table below reconciles MRB asset and liability positions as of the following dates: December 31, 2022 December 31, 2021 Variable Annuities (in thousands) Market risk benefit assets $ 558,624 $ 940,706 Market risk benefit liabilities 558,624 940,706 Net liability $ 0 $ 0 |
Transition adjustment from the adoption of ASU 2018-12 | |
Accounting Pronouncements and Change in Accounting Principle [Line Items] | |
Accounting Standards of New Guidance on Financial Statements | Statements of Financial Position: December 31, 2022 IMPACTED LINES ONLY As Previously Reported Effect of As Currently Reported (in thousands) Deferred policy acquisition costs $ 364,494 $ (12,620) $ 351,874 Reinsurance recoverables 3,258,526 (160,278) 3,098,248 Income tax assets 67,126 489 67,615 Market risk benefit assets 0 558,624 558,624 Other assets 16,207 32,184 48,391 TOTAL ASSETS $ 20,178,046 $ 418,399 $ 20,596,445 Policyholders’ account balances $ 2,763,730 $ 10,585 $ 2,774,315 Future policy benefits 2,303,407 (173,365) 2,130,042 Market risk benefit liabilities 0 558,624 558,624 Other liabilities 147,908 24,397 172,305 Total liabilities 19,149,549 420,241 19,569,790 Retained earnings 439,236 (153,803) 285,433 Accumulated other comprehensive income (loss) (188,151) 151,961 (36,190) Total equity 1,028,497 (1,842) 1,026,655 TOTAL LIABILITIES AND EQUITY $ 20,178,046 $ 418,399 $ 20,596,445 December 31, 2021 IMPACTED LINES ONLY As Previously Reported Effect of As Currently Reported (in thousands) Deferred policy acquisition costs $ 290,299 $ 18,445 $ 308,744 Reinsurance recoverables 3,601,212 (426,017) 3,175,195 Income tax assets 5,842 16,311 22,153 Market risk benefit assets 0 940,706 940,706 Other assets 17,581 31,286 48,867 TOTAL ASSETS $ 24,456,215 $ 580,731 $ 25,036,946 Policyholders’ account balances $ 2,608,640 $ 91,294 $ 2,699,934 Future policy benefits 2,757,941 (396,818) 2,361,123 Market risk benefit liabilities 0 940,706 940,706 Other liabilities 194,123 6,910 201,033 Total liabilities 23,485,503 642,092 24,127,595 Retained earnings 387,957 (32,695) 355,262 Accumulated other comprehensive income (loss) 130,653 (28,666) 101,987 Total equity 970,712 (61,361) 909,351 TOTAL LIABILITIES AND EQUITY $ 24,456,215 $ 580,731 $ 25,036,946 Statements of Operations and Comprehensive Income (Loss): Year Ended December 31, 2022 IMPACTED LINES ONLY As Previously Reported Effect of As Currently Reported (in thousands) REVENUES Premiums $ 34,901 $ (1,193) $ 33,708 Policy charges and fee income 85,416 (27,682) 57,734 Realized investment gains (losses), net 13,416 419 13,835 Change in value of market risk benefits, net of related hedging gain (loss) 0 (142,046) (142,046) TOTAL REVENUES 238,452 (170,502) 67,950 BENEFITS AND EXPENSES Policyholders’ benefits 55,094 (26,905) 28,189 Change in estimates of liability for future policy benefits 0 16,631 16,631 Amortization of deferred policy acquisition costs 24,512 (5,222) 19,290 General, administrative and other expenses 58,570 (1,705) 56,865 TOTAL BENEFITS AND EXPENSES 185,754 (17,201) 168,553 INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES 52,698 (153,301) (100,603) Income tax expense (benefit) 1,419 (32,193) (30,774) NET INCOME (LOSS) $ 51,279 $ (121,108) $ (69,829) Other comprehensive income (loss), before tax: Net unrealized investment gains (losses) (403,214) 26,729 (376,485) Interest rate remeasurement of future policy benefits 0 59,867 59,867 Gain (loss) from changes in non-performance risk on market risk benefits 0 142,046 142,046 Total (403,550) 228,642 (174,908) Less: Income tax expense (benefit) related to other comprehensive income (loss) (84,746) 48,015 (36,731) Other comprehensive income (loss), net of taxes (318,804) 180,627 (138,177) Comprehensive income (loss) $ (267,525) $ 59,519 $ (208,006) Year Ended December 31, 2021 IMPACTED LINES ONLY As Previously Reported Effect of As Currently Reported (in thousands) REVENUES Premiums $ 29,945 $ (1,196) $ 28,749 Policy charges and fee income 89,781 (17,619) 72,162 Realized investment gains (losses), net 1,968 (1,453) 515 Change in value of market risk benefits, net of related hedging gain (loss) 0 39,670 39,670 TOTAL REVENUES 231,841 19,402 251,243 BENEFITS AND EXPENSES Policyholders’ benefits 48,516 (7,737) 40,779 Change in estimates of liability for future policy benefits 0 2,819 2,819 Amortization of deferred policy acquisition costs 24,203 (6,005) 18,198 General, administrative and other expenses 52,194 (1,467) 50,727 TOTAL BENEFITS AND EXPENSES 167,917 (12,390) 155,527 INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES 63,924 31,792 95,716 Income tax expense (benefit) 4,417 6,676 11,093 NET INCOME (LOSS) $ 59,507 $ 25,116 $ 84,623 Other comprehensive income (loss), before tax: Net unrealized investment gains (losses) (69,049) 1,788 (67,261) Interest rate remeasurement of future policy benefits 0 13,404 13,404 Gain (loss) from changes in non-performance risk on market risk benefits 0 (39,669) (39,669) Total (69,308) (24,477) (93,785) Less: Income tax expense (benefit) related to other comprehensive income (loss) (14,554) (5,140) (19,694) Other comprehensive income (loss), net of taxes (54,754) (19,337) (74,091) Comprehensive income (loss) $ 4,753 $ 5,779 $ 10,532 Statements of Cash Flows: Year Ended December 31, 2022 IMPACTED LINES ONLY As Previously Reported Effect of As Currently Reported (in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 51,279 $ (121,108) $ (69,829) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Policy charges and fee income (19,960) 16,778 (3,182) Realized investment (gains) losses, net (13,416) (419) (13,835) Change in value of market risk benefits, net of related hedging (gains) losses 0 142,046 142,046 Change in: Future policy benefits and other insurance liabilities 222,224 200,751 422,975 Reinsurance recoverables (268,022) (97,379) (365,401) Deferred policy acquisition costs (38,058) (5,072) (43,130) Income taxes 23,831 (32,193) (8,362) Other, net (1) 424 (103,404) (102,980) Cash flows from (used in) operating activities $ 10,784 $ 0 $ 10,784 (1) Prior period has been reclassified to conform to the current period presentation. Year Ended December 31, 2021 IMPACTED LINES ONLY As Previously Reported Effect of As Currently Reported (in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 59,507 $ 25,116 $ 84,623 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Policy charges and fee income (21,724) 28,429 6,705 Realized investment (gains) losses, net (1,968) 1,453 (515) Change in value of market risk benefits, net of related hedging (gains) losses 0 (39,670) (39,670) Change in: Future policy benefits and other insurance liabilities 294,654 21,128 315,782 Reinsurance recoverables (209,431) 93,400 (116,031) Deferred policy acquisition costs (58,421) (6,105) (64,526) Income taxes (2,127) 6,677 4,550 Other, net (1) 7,329 (130,428) (123,099) Cash flows from (used in) operating activities $ 130,538 $ 0 $ 130,538 (1) Prior period has been reclassified to conform to the current period presentation. The following tables detail the January 1, 2021 transition adjustments by providing a rollforward of the ending reported balances as of December 31, 2020 to the opening balances as of January 1, 2021 for retained earnings, accumulated other comprehensive income (“AOCI”) and the impacted insurance-related balances. January 1, 2021 Retained Earnings (in thousands) Balance after-tax, prior to transition $ 328,450 Reclassification of market risk benefits non-performance risk to accumulated other comprehensive income(1) (60,792) Updates to certain universal life contract liabilities(2) (20,108) Other(3) 7,722 Total pre-tax adjustments (73,178) Tax impacts 15,367 Balance after-tax, after transition $ 270,639 (1) Reflects the cumulative impact of changes in the fair value of market risk benefits (“MRB”) non-performance risk (“NPR”) from the date of contract issuance to January 1, 2021. These amounts were previously recorded in retained earnings but are now reflected in AOCI under the new guidance. (2) Reflects the impact on additional insurance reserves ("AIR") and other related balances primarily related to the no-lapse guarantee features on certain universal life contracts. For additional information, see Note 2. (3) Primarily reflects the reassessment of deferred reinsurance losses ("DRL"). January 1, 2021 Accumulated Other Comprehensive Income (in thousands) Balance after-tax, prior to transition $ 185,407 Interest rate remeasurement of future policy benefits (57,440) Reclassification of market risk benefits non-performance risk to accumulated other comprehensive income(1) 60,792 Unwinding amounts related to unrealized investment gains and losses(2) (15,161) Total pre-tax adjustments (11,809) Tax impacts 2,480 Balance after-tax, after transition $ 176,078 (1) Reflects the cumulative impact of changes in NPR on the fair value of market risk benefits from the date of contract issuance to January 1, 2021. These amounts were previously recorded in retained earnings but are now reflected in AOCI under the new guidance. (2) Primarily reflects amounts related to DAC and other balances as unrealized investment gains or losses no longer impact the amortization pattern of such balances under the new guidance. Also includes the impacts from updates to reserves and other related balances for certain universal life contracts. For additional information, see Note 2. |
Deferred Policy Acquisition Costs | January 1, 2021 Deferred Policy Acquisition Costs Term Life Variable/Universal Life Total (in thousands) Balance prior to transition $ 51,526 $ 172,899 $ 224,425 Unwinding amounts related to unrealized investment gains and losses 0 21,714 21,714 Other(1) 1 (1,922) (1,921) Balance after transition $ 51,527 $ 192,691 $ 244,218 (1) Represents miscellaneous model refinements. |
Liability for Future Policy Benefit (DRL, Benefit Reserves, DPL, and Additional Insurance Reserves) | January 1, 2021 Deferred Reinsurance Losses(1) Variable Annuities (in thousands) Balance prior to transition $ 15,209 Unwinding amounts related to unrealized investment gains and losses 1,187 Effect of change in reserve basis to market risk benefits 4,236 Balance after transition $ 20,632 (1) Deferred reinsurance losses are included in "Other assets". January 1, 2021 Benefit Reserves(1) Term Life Fixed Annuities Total (in thousands) Balance prior to transition $ 1,049,445 $ 16,468 $ 1,065,913 Changes in cash flow assumptions and other activity 30 (687) (657) Balance after transition, at original discount rate 1,049,475 15,781 1,065,256 Cumulative changes in discount rate assumptions 401,072 2,188 403,260 Balance after transition, at current discount rate 1,450,547 17,969 1,468,516 Less: Reinsurance recoverable 1,264,199 17,944 1,282,143 Balance after transition, net of reinsurance recoverable $ 186,348 $ 25 $ 186,373 (1) Benefit reserves, excluding amounts for reinsurance recoverable, are included in "Future policy benefits". For additional information on the liability for future policy benefits, see Note 8 . January 1, 2021 Deferred Profit Liability(1) Fixed Annuities (in thousands) Balance prior to transition $ 102 Changes in benefit reserves 882 Balance after transition 984 Less: Reinsurance recoverable 984 Balance after transition, net of reinsurance recoverable $ 0 (1) Deferred profit liability ("DPL"), excluding amounts for reinsurance recoverable, is included in "Future policy benefits". For additional information regarding the liability for future policy benefits, see Note 8. January 1, 2021 Additional Insurance Reserves(1) Variable/Universal Life Variable Annuities Total (in thousands) Balance prior to transition $ 513,812 $ 24,433 $ 538,245 Unwinding amounts related to unrealized investment gains and losses (109,355) (1,698) (111,053) Balance prior to transition, excluding amounts related to unrealized investment gains and losses 404,457 22,735 427,192 Reclassification of future policy benefits additional insurance reserves to market risk benefits 0 (22,735) (22,735) Updates to certain universal life contract liabilities(2) 142,726 0 142,726 Balance after transition, excluding amounts related to unrealized investment gains and losses 547,183 0 547,183 Amounts related to unrealized investment gains and losses after transition 95,331 0 95,331 Balance after transition 642,514 0 642,514 Less: Reinsurance recoverable 613,009 0 613,009 Balance after transition, net of reinsurance recoverable $ 29,505 $ 0 $ 29,505 (1) AIR, excluding amounts for reinsurance recoverable, are included in "Future policy benefits". For additional information regarding the liability for future policy benefits, see Note 8. (2) For additional information regarding updates to reserves and other related balances for certain universal life contracts, see Note 2. |
Additional Liability, Long-Duration Insurance (URR and Cost of Reinsurance) | January 1, 2021 Unearned Revenue Reserves(1) Variable/Universal Life (in thousands) Balance prior to transition $ 94,480 Unwinding amounts related to unrealized investment gains and losses and other activity 92,103 Balance after transition 186,583 Less: Reinsurance recoverable 45,019 Balance after transition, net of reinsurance recoverable $ 141,564 (1) Unearned revenue reserves ("URR") are included in "Policyholders' account balances". For additional information regarding the liability for policyholders' account balances, see Note 9. January 1, 2021 Cost of Reinsurance(1) Variable/ Universal Life (in thousands) Balance prior to transition $ 85,773 Unwinding amounts related to unrealized investment gains and losses (34,617) Balance prior to transition, excluding amounts related to unrealized investment gains and losses 51,156 Impact from updates to certain universal life contract liabilities(2) 14,045 Balance after transition, excluding amounts related to unrealized investment gains and losses 65,201 Amounts related to unrealized investment gains and losses after transition 27,620 Balance after transition $ 92,821 (1) Cost of reinsurance is included in "Other liabilities". |
Market Risk Benefits | January 1, 2021 Market Risk Benefits(1) Variable Annuities (in thousands) Liability for guaranteed benefits recorded at fair value, prior to transition $ 1,195,470 Additional insurance reserves to be reclassed to market risk benefits, prior to transition, excluding amounts related to unrealized investment gains and losses 22,735 Total liability prior to transition 1,218,205 Change in reserve basis to market risk benefits framework (12,634) Market risk benefits after transition, at current non-performance risk value 1,205,571 Less: Reinsured market risk benefits 1,205,571 Market risk benefits after transition, net of reinsurance 0 Market risk benefits after transition, at contract inception non-performance risk value $ 1,266,363 Cumulative change in non-performance risk 60,792 Market risk benefits after transition, at current non-performance risk value $ 1,205,571 (1) For additional information regarding market risk benefits, see Note 10. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments [Abstract] | |
Fixed Maturities, Available-for-sale Securities | The following tables set forth the composition of fixed maturity securities (excluding investments classified as trading), as of the dates indicated: December 31, 2022 Amortized Gross Gross Allowance for Credit Losses Fair (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 62,210 $ 0 $ 1,074 $ 0 $ 61,136 Obligations of U.S. states and their political subdivisions 165,109 421 6,315 0 159,215 Foreign government bonds 87,853 1 15,891 0 71,963 U.S. public corporate securities 1,062,342 1,943 180,880 0 883,405 U.S. private corporate securities 186,123 141 13,465 358 172,441 Foreign public corporate securities 138,717 28 25,783 0 112,962 Foreign private corporate securities 133,074 523 21,562 0 112,035 Asset-backed securities(1) 18,358 272 256 0 18,374 Commercial mortgage-backed securities 124,486 0 8,595 0 115,891 Residential mortgage-backed securities(2) 12,446 92 467 5 12,066 Total fixed maturities, available-for-sale $ 1,990,718 $ 3,421 $ 274,288 $ 363 $ 1,719,488 (1) Includes credit-tranched securities collateralized by loan obligations and education loans. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. December 31, 2021 Amortized Gross Gross Allowance for Credit Losses Fair (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 12,832 $ 673 $ 0 $ 0 $ 13,505 Obligations of U.S. states and their political subdivisions 161,812 17,198 0 0 179,010 Foreign government bonds 93,062 8,731 1,002 0 100,791 U.S. public corporate securities 908,129 117,450 2,994 0 1,022,585 U.S. private corporate securities 190,157 13,128 52 1,558 201,675 Foreign public corporate securities 105,346 8,481 644 0 113,183 Foreign private corporate securities 138,753 6,620 2,015 0 143,358 Asset-backed securities(1) 16,685 596 4 0 17,277 Commercial mortgage-backed securities 132,961 8,401 7 0 141,355 Residential mortgage-backed securities(2) 2,474 385 0 0 2,859 Total fixed maturities, available-for-sale $ 1,762,211 $ 181,663 $ 6,718 $ 1,558 $ 1,935,598 (1) Includes credit-tranched securities collateralized by education loans and loan obligations. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. |
Duration of Gross Unrealized Losses on Fixed Maturity Securities | The following tables set forth the fair value and gross unrealized losses on available-for-sale fixed maturity securities without an allowance for credit 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: December 31, 2022 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: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 61,136 $ 1,074 $ 0 $ 0 $ 61,136 $ 1,074 Obligations of U.S. states and their political subdivisions 113,693 6,315 0 0 113,693 6,315 Foreign government bonds 46,826 5,741 24,746 10,150 71,572 15,891 U.S. public corporate securities 704,906 111,763 155,138 69,117 860,044 180,880 U.S. private corporate securities 149,670 11,857 9,273 1,608 158,943 13,465 Foreign public corporate securities 69,310 11,016 38,996 14,767 108,306 25,783 Foreign private corporate securities 62,044 12,499 33,858 9,063 95,902 21,562 Asset-backed securities 5,570 160 3,289 96 8,859 256 Commercial mortgage-backed securities 110,820 8,398 5,071 197 115,891 8,595 Residential mortgage-backed securities 10,509 467 0 0 10,509 467 Total fixed maturities, available-for-sale $ 1,334,484 $ 169,290 $ 270,371 $ 104,998 $ 1,604,855 $ 274,288 December 31, 2021 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: Foreign government bonds $ 17,306 $ 928 $ 2,072 $ 74 $ 19,378 $ 1,002 U.S. public corporate securities 72,360 1,255 42,496 1,739 114,856 2,994 U.S. private corporate securities 2,349 27 979 25 3,328 52 Foreign public corporate securities 9,439 192 6,726 452 16,165 644 Foreign private corporate securities 18,912 596 11,402 1,419 30,314 2,015 Asset-backed securities 3,426 4 0 0 3,426 4 Commercial mortgage-backed securities 3,083 7 0 0 3,083 7 Total fixed maturities, available-for-sale $ 126,875 $ 3,009 $ 63,675 $ 3,709 $ 190,550 $ 6,718 |
Fixed Maturities 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: December 31, 2022 Amortized Cost Fair Value (in thousands) Fixed maturities, available-for-sale: Due in one year or less $ 40,526 $ 39,539 Due after one year through five years 240,259 226,070 Due after five years through ten years 154,492 140,664 Due after ten years 1,400,151 1,166,884 Asset-backed securities 18,358 18,374 Commercial mortgage-backed securities 124,486 115,891 Residential mortgage-backed securities 12,446 12,066 Total fixed maturities, available-for-sale $ 1,990,718 $ 1,719,488 |
Sources of Fixed Maturity Proceeds, Realized Investment Gains (Losses), and Losses on Impairments | The following table sets forth the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on write-downs, and the allowance for credit losses of fixed maturities, for the periods indicated: Years Ended December 31, 2022 2021 2020 (in thousands) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 37,605 $ 49,835 $ 4,085 Proceeds from maturities/prepayments 64,177 49,793 57,837 Gross investment gains from sales and maturities 224 708 (4) Gross investment losses from sales and maturities (5,451) (1,024) (43) Write-downs recognized in earnings(2) 0 0 (625) (Addition to) release of allowance for credit losses 1,195 (1,558) 0 (1) Excludes activity from non-cash related proceeds due to the timing of trade settlements of $(0.1) million, $1.5 million and $(1.5) million for the years ended December 31, 2022, 2021 and 2020, respectively. (2) Amounts represent write-downs of credit adverse securities and securities actively marketed for sale. |
Other than Temporary Impairment, Credit Losses Recognized in Earnings | The following tables set forth the activity in the allowance for credit losses for fixed maturity securities, as of the dates indicated: Year Ended December 31, 2022 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of period $ 0 $ 0 $ 1,558 $ 0 $ 0 $ 0 $ 1,558 Additions (reductions) on securities with previous allowance 0 0 (1,200) 0 0 1 (1,199) Additions to allowance for credit losses not previously recorded 0 0 0 0 0 4 4 Balance, end of period $ 0 $ 0 $ 358 $ 0 $ 0 $ 5 $ 363 Year Ended December 31, 2021 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of period $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Additions to allowance for credit losses not previously recorded 0 0 1,558 0 0 0 1,558 Balance, end of period $ 0 $ 0 $ 1,558 $ 0 $ 0 $ 0 $ 1,558 |
Commercial Mortgage and Other Loans | The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: December 31, 2022 December 31, 2021 Amount % of Amount % of Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 62,434 42.0 % $ 42,188 36.4 % Hospitality 12,996 8.7 13,709 11.8 Industrial 17,132 11.5 17,356 15.0 Office 10,568 7.1 16,880 14.6 Other 7,767 5.2 7,927 6.8 Retail 22,123 14.9 15,511 13.4 Total commercial mortgage loans 133,020 89.4 113,571 98.0 Agricultural property loans 15,567 10.6 2,251 2.0 Total commercial mortgage and agricultural property loans 148,587 100.0 % 115,822 100.0 % Allowance for credit losses (408) (246) Total net commercial mortgage and agricultural property loans $ 148,179 $ 115,576 |
Allowance for Credit Losses | The following table sets forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated: Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Balance at December 31, 2019 $ 164 $ 1 $ 165 Cumulative effect of adoption of ASU 2016-13 204 0 204 Addition to (release of) allowance for expected losses 72 (1) 71 Balance at December 31, 2020 $ 440 $ 0 $ 440 Addition to (release of) allowance for expected losses (194) 0 (194) Balance at December 31, 2021 $ 246 $ 0 $ 246 Addition to (release of) allowance for expected losses 159 3 162 Balance at December 31, 2022 $ 405 $ 3 $ 408 |
Financing Receivable Credit Quality Indicators | The following tables set forth key credit quality indicators based upon the recorded investment gross of allowance for credit losses, as of the dates indicated: December 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total (in thousands) Commercial mortgage loans Loan-to-Value Ratio: 0%-59.99% $ 20,000 $ 792 $ 0 $ 9,993 $ 1,387 $ 48,812 $ 80,984 60%-69.99% 15,000 1,615 2,198 18,982 0 1,016 38,811 70%-79.99% 0 347 0 3,855 0 7,213 11,415 80% or greater 0 0 0 0 0 1,810 1,810 Total $ 35,000 $ 2,754 $ 2,198 $ 32,830 $ 1,387 $ 58,851 $ 133,020 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 35,000 $ 2,754 $ 2,198 $ 27,697 $ 1,387 $ 40,285 $ 109,321 1.0 - 1.2x 0 0 0 0 0 8,809 8,809 Less than 1.0x 0 0 0 5,133 0 9,757 14,890 Total $ 35,000 $ 2,754 $ 2,198 $ 32,830 $ 1,387 $ 58,851 $ 133,020 Agricultural property loans Loan-to-Value Ratio: 0%-59.99% $ 1,078 $ 1,092 $ 0 $ 0 $ 0 $ 1,052 $ 3,222 60%-69.99% 12,345 0 0 0 0 0 12,345 70%-79.99% 0 0 0 0 0 0 0 80% or greater 0 0 0 0 0 0 0 Total $ 13,423 $ 1,092 $ 0 $ 0 $ 0 $ 1,052 $ 15,567 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 13,423 $ 1,092 $ 0 $ 0 $ 0 $ 1,052 $ 15,567 1.0 - 1.2x 0 0 0 0 0 0 0 Less than 1.0x 0 0 0 0 0 0 0 Total $ 13,423 $ 1,092 $ 0 $ 0 $ 0 $ 1,052 $ 15,567 December 31, 2021 Amortized Cost by Origination Year 2021 2020 2019 2018 2017 Prior Total (in thousands) Commercial mortgage loans Loan-to-Value Ratio: 0%-59.99% $ 360 $ 0 $ 7,203 $ 1,433 $ 8,836 $ 50,537 $ 68,369 60%-69.99% 2,066 2,198 24,368 0 1,016 8,524 38,172 70%-79.99% 347 0 3,855 0 0 1,870 6,072 80% or greater 0 0 0 0 958 0 958 Total $ 2,773 $ 2,198 $ 35,426 $ 1,433 $ 10,810 $ 60,931 $ 113,571 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 2,773 $ 2,198 $ 30,009 $ 1,433 $ 5,671 $ 42,469 $ 84,553 1.0 - 1.2x 0 0 0 0 958 9,186 10,144 Less than 1.0x 0 0 5,417 0 4,181 9,276 18,874 Total $ 2,773 $ 2,198 $ 35,426 $ 1,433 $ 10,810 $ 60,931 $ 113,571 Agricultural property loans Loan-to-Value Ratio: 0%-59.99% $ 1,126 $ 0 $ 0 $ 0 $ 0 $ 1,125 $ 2,251 60%-69.99% 0 0 0 0 0 0 0 70%-79.99% 0 0 0 0 0 0 0 80% or greater 0 0 0 0 0 0 0 Total $ 1,126 $ 0 $ 0 $ 0 $ 0 $ 1,125 $ 2,251 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 1,126 $ 0 $ 0 $ 0 $ 0 $ 1,125 $ 2,251 1.0 - 1.2x 0 0 0 0 0 0 0 Less than 1.0x 0 0 0 0 0 0 0 Total $ 1,126 $ 0 $ 0 $ 0 $ 0 $ 1,125 $ 2,251 |
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: December 31, 2022 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 $ 133,020 $ 0 $ 0 $ 0 $ 133,020 $ 0 Agricultural property loans 15,567 0 0 0 15,567 0 Total $ 148,587 $ 0 $ 0 $ 0 $ 148,587 $ 0 (1) As of December 31, 2022, 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. December 31, 2021 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 $ 113,571 $ 0 $ 0 $ 0 $ 113,571 $ 0 Agricultural property loans 2,251 0 0 0 2,251 0 Total $ 115,822 $ 0 $ 0 $ 0 $ 115,822 $ 0 (1) As of December 31, 2021, 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. |
Other Invested Assets | The following table sets forth the composition of “Other invested assets,” as of the dates indicated: December 31, 2022 2021 (in thousands) Company's investment in separate accounts $ 0 $ 4,053 LPs/LLCs: Equity method: Private equity 74,468 63,705 Hedge funds 42,472 38,216 Real estate-related 10,199 8,326 Subtotal equity method 127,139 110,247 Fair value: Private equity 279 400 Hedge funds 55 66 Real estate-related 2,055 2,374 Subtotal fair value 2,389 2,840 Total LPs/LLCs 129,528 113,087 Derivative instruments 0 7,187 Total other invested assets $ 129,528 $ 124,327 |
Equity Method Investments | The following tables set forth summarized combined financial information for significant LP/LLC interests accounted for under the equity method. Changes between periods in the tables below reflect changes in the activities within the LPs/LLCs, as well as changes in the Company’s level of investment in such entities. December 31, 2022 2021 (in thousands) STATEMENTS OF FINANCIAL POSITION Total assets(1) $ 2,012,092 $ 1,950,577 Total liabilities $ 0 $ 0 Partners’ capital 2,012,092 1,950,577 Total liabilities and partners’ capital $ 2,012,092 $ 1,950,577 Total liabilities and partners’ capital included above $ 37,626 $ 36,671 Equity in LP/LLC interests not included above 89,513 73,576 Carrying value $ 127,139 $ 110,247 (1) Amount represents gross assets of each fund where the Company has a significant investment. These assets consist primarily of investments in securities and other miscellaneous assets. Years Ended December 31, 2022 2021 2020 (in thousands) STATEMENTS OF OPERATIONS Total revenue(1) $ 51,084 $ 154,144 $ 168,120 Total expenses 0 0 0 Net earnings (losses) $ 51,084 $ 154,144 $ 168,120 Equity in net earnings (losses) included above $ 955 $ 2,898 $ 3,144 Equity in net earnings (losses) of LP/LLC interests not included above 5,836 16,814 3,858 Total equity in net earnings (losses) $ 6,791 $ 19,712 $ 7,002 |
Accrued Investment Income | The following table sets forth the composition of “Accrued investment income,” as of the dates indicated: December 31, 2022 2021 (in thousands) Fixed maturities $ 18,653 $ 16,561 Equity securities 1 1 Commercial mortgage and other loans 352 301 Policy loans 5,612 5,670 Short-term investments and cash equivalents 604 6 Total accrued investment income $ 25,222 $ 22,539 |
Net Investment Income | The following table sets forth “Net investment income” by investment type, for the periods indicated: Years Ended December 31, 2022 2021 2020 (in thousands) Fixed maturities, available-for-sale $ 73,656 $ 65,882 $ 61,250 Fixed maturities, trading 1,012 827 542 Equity securities 364 363 363 Commercial mortgage and other loans 4,609 5,654 5,485 Policy loans 10,427 11,414 11,597 Other invested assets 8,873 20,660 7,509 Short-term investments and cash equivalents 3,384 46 431 Gross investment income 102,325 104,846 87,177 Less: investment expenses (3,933) (4,355) (4,182) Net investment income $ 98,392 $ 100,491 $ 82,995 |
Realized Investment Gains (Loss) on Investments, Net | The following table sets forth “Realized investment gains (losses), net” by investment type, for the periods indicated: Years Ended December 31, 2022 2021 2020 (in thousands) Fixed maturities(1) $ (4,032) $ (1,874) $ (672) Commercial mortgage and other loans (153) 194 (71) Other invested assets (51) 625 (51) Derivatives(2) 18,123 1,549 2,721 Short-term investments and cash equivalents (52) 21 (56) Realized investment gains (losses), net(2) $ 13,835 $ 515 $ 1,871 (1) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading. (2) Amounts for the years ended December 31, 2022 and 2021 were adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Net Unrealized Gains and (Losses) on Investments | The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated: December 31, 2022 2021 2020 (in thousands) Fixed maturity securities, available-for-sale without an allowance $ (270,867) $ 174,945 $ 258,325 Derivatives designated as cash flow hedges(1) 14,102 5,407 (2,998) Affiliated notes 59 194 254 Other investments 122 260 143 Net unrealized gains (losses) on investments $ (256,584) $ 180,806 $ 255,724 (1) For more information on cash flow hedges, see Note 4. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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. Many derivative instruments contain multiple underlying risks. The fair value amounts below represent the value of derivative contracts prior to taking into account of the netting effects of master netting agreements and cash collateral. December 31, 2022 December 31, 2021 Primary Underlying Risk/Instrument Type Gross Fair Value Gross Fair Value Assets Liabilities Assets Liabilities (in thousands) Derivatives Designated as Hedge Accounting Instruments: Currency/Interest Rate Foreign Currency Swaps $ 117,015 $ 14,281 $ (516) $ 124,950 $ 4,416 $ (291) Total Derivatives Designated as Hedge Accounting Instruments: $ 117,015 $ 14,281 $ (516) $ 124,950 $ 4,416 $ (291) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 30,200 $ 0 $ (383) $ 30,200 $ 2,757 $ 0 Credit Credit Default Swaps 0 0 0 0 0 0 Currency/Interest Rate Foreign Currency Swaps 24,035 2,957 0 35,204 2,685 (637) Foreign Currency Foreign Currency Forwards 7,520 3 (368) 4,667 66 (9) Equity Equity Options 509,200 555 (20,562) 488,850 18,761 (20,561) Total Derivatives Not Qualifying as Hedge Accounting Instruments: $ 570,955 $ 3,515 $ (21,313) $ 558,921 $ 24,269 $ (21,207) Total Derivatives(1)(2) $ 687,970 $ 17,796 $ (21,829) $ 683,871 $ 28,685 $ (21,498) (1) Excludes embedded derivatives which contain multiple underlying risks. The fair value of these embedded derivatives was a net liability of $108 million and $153 million as of December 31, 2022 and 2021, respectively included in “Policyholders’ account balances". (2) Recorded in "Other invested assets" and "Payables to parent and affiliates" on the Statements of Financial Position. |
Offsetting of Financial Assets | The following table presents recognized derivative instruments (excluding embedded derivatives), and repurchase and reverse repurchase agreements that are offset in the 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 Statements of Financial Position. December 31, 2022 Gross Gross Net Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 17,796 $ (17,796) $ 0 $ 0 $ 0 Securities purchased under agreements to resell 0 0 0 0 0 Total Assets $ 17,796 $ (17,796) $ 0 $ 0 $ 0 Offsetting of Financial Liabilities: Derivatives $ 21,829 $ (17,796) $ 4,033 $ (4,033) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 21,829 $ (17,796) $ 4,033 $ (4,033) $ 0 December 31, 2021 Gross Gross Net Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 28,685 $ (21,498) $ 7,187 $ (7,187) $ 0 Securities purchased under agreements to resell 0 0 0 0 0 Total Assets $ 28,685 $ (21,498) $ 7,187 $ (7,187) $ 0 Offsetting of Financial Liabilities: Derivatives $ 21,498 $ (21,498) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 21,498 $ (21,498) $ 0 $ 0 $ 0 (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 repurchase and reverse repurchase agreements that are offset in the 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 Statements of Financial Position. December 31, 2022 Gross Gross Net Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 17,796 $ (17,796) $ 0 $ 0 $ 0 Securities purchased under agreements to resell 0 0 0 0 0 Total Assets $ 17,796 $ (17,796) $ 0 $ 0 $ 0 Offsetting of Financial Liabilities: Derivatives $ 21,829 $ (17,796) $ 4,033 $ (4,033) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 21,829 $ (17,796) $ 4,033 $ (4,033) $ 0 December 31, 2021 Gross Gross Net Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 28,685 $ (21,498) $ 7,187 $ (7,187) $ 0 Securities purchased under agreements to resell 0 0 0 0 0 Total Assets $ 28,685 $ (21,498) $ 7,187 $ (7,187) $ 0 Offsetting of Financial Liabilities: Derivatives $ 21,498 $ (21,498) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 21,498 $ (21,498) $ 0 $ 0 $ 0 (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. Year Ended December 31, 2022 Realized Net Other Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 1,802 $ 1,891 $ 1,202 $ 8,695 Total cash flow hedges 1,802 1,891 1,202 8,695 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (2,666) 0 0 0 Currency 493 0 0 0 Currency/Interest Rate 2,100 0 35 0 Credit 0 0 0 0 Equity (13,420) 0 0 0 Embedded Derivatives 29,814 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments 16,321 0 35 0 Total $ 18,123 $ 1,891 $ 1,237 $ 8,695 Year Ended December 31, 2021 Realized Net Other Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 245 $ 1,583 $ 464 $ 8,405 Total cash flow hedges 245 1,583 464 8,405 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (815) 0 0 0 Currency 252 0 0 0 Currency/Interest Rate 2,519 0 6 0 Credit (4) 0 0 0 Equity 8,334 0 0 0 Embedded Derivatives (8,982) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments 1,304 0 6 0 Total $ 1,549 $ 1,583 $ 470 $ 8,405 Year Ended December 31, 2020 Realized Net Other Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 106 $ 1,868 $ (1,016) $ (6,191) Total cash flow hedges 106 1,868 (1,016) (6,191) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 1,919 0 0 0 Currency (174) 0 0 0 Currency/Interest Rate (894) 0 (25) 0 Credit (88) 0 0 0 Equity 4,603 0 0 0 Embedded Derivatives (2,751) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments 2,615 0 (25) 0 Total $ 2,721 $ 1,868 $ (1,041) $ (6,191) (1) Amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
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, 2019 $ 3,193 Amount recorded in AOCI Currency/Interest Rate (5,233) Total amount recorded in AOCI (5,233) Amount reclassified from AOCI to income Currency/Interest Rate (958) Total amount reclassified from AOCI to income (958) Balance, December 31, 2020 $ (2,998) Amount recorded in AOCI Currency/Interest Rate 10,697 Total amount recorded in AOCI 10,697 Amount reclassified from AOCI to income Currency/Interest Rate (2,292) Total amount reclassified from AOCI to income (2,292) Balance, December 31, 2021 $ 5,407 Amount recorded in AOCI Currency/Interest Rate 13,590 Total amount recorded in AOCI 13,590 Amount reclassified from AOCI to income Currency/Interest Rate (4,895) Total amount reclassified from AOCI to income (4,895) Balance, December 31, 2022 $ 14,102 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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. December 31, 2022 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 $ 61,136 $ 0 $ $ 61,136 Obligations of U.S. states and their political subdivisions 0 159,215 0 159,215 Foreign government bonds 0 71,963 0 71,963 U.S. corporate public securities 0 883,405 0 883,405 U.S. corporate private securities 0 168,638 3,803 172,441 Foreign corporate public securities 0 112,962 0 112,962 Foreign corporate private securities 0 112,035 0 112,035 Asset-backed securities(2) 0 18,374 0 18,374 Commercial mortgage-backed securities 0 95,190 20,701 115,891 Residential mortgage-backed securities 0 12,066 0 12,066 Subtotal 0 1,694,984 24,504 1,719,488 Market risk benefit assets(3) 0 0 558,624 558,624 Fixed maturities, trading 0 23,782 0 23,782 Equity securities 0 67 4,291 4,358 Short-term investments 0 3,000 0 3,000 Cash equivalents 0 245,302 0 245,302 Other invested assets(4) 0 17,796 0 (17,796) 0 Receivables from parent and affiliates 0 688 0 688 Subtotal excluding separate account assets 0 1,985,619 587,419 (17,796) 2,555,242 Separate account assets(5)(6) 0 12,014,623 0 12,014,623 Total assets $ 0 $ 14,000,242 $ 587,419 $ (17,796) $ 14,569,865 Market risk benefit liabilities(3) $ 0 $ 0 $ 558,624 $ $ 558,624 Policyholders' account balances 0 0 108,144 108,144 Payables to parent and affiliates 0 21,829 0 (17,796) 4,033 Total liabilities $ 0 $ 21,829 $ 666,768 $ (17,796) $ 670,801 December 31, 2021 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 $ 13,505 $ 0 $ $ 13,505 Obligations of U.S. states and their political subdivisions 0 179,010 0 179,010 Foreign government bonds 0 100,791 0 100,791 U.S. corporate public securities 0 1,022,585 0 1,022,585 U.S. corporate private securities 0 199,070 2,605 201,675 Foreign corporate public securities 0 113,183 0 113,183 Foreign corporate private securities 0 121,644 21,714 143,358 Asset-backed securities(2) 0 17,277 0 17,277 Commercial mortgage-backed securities 0 114,081 27,274 141,355 Residential mortgage-backed securities 0 2,859 0 2,859 Subtotal 0 1,884,005 51,593 1,935,598 Market risk benefit assets(3) 0 0 940,706 940,706 Fixed maturities, trading 0 36,456 0 36,456 Equity securities 0 125 5,812 5,937 Short-term investments 9,997 0 0 9,997 Cash equivalents 0 128,719 0 128,719 Other invested assets(4) 0 28,685 0 (21,498) 7,187 Receivables from parent and affiliates 0 788 0 788 Subtotal excluding separate account assets 9,997 2,078,778 998,111 (21,498) 3,065,388 Separate account assets(5)(6) 0 15,731,959 0 15,731,959 Total assets $ 9,997 $ 17,810,737 $ 998,111 $ (21,498) $ 18,797,347 Market risk benefit liabilities(3) $ 0 $ 0 $ 940,706 $ $ 940,706 Policyholders' account balances 0 0 153,127 153,127 Payables to parent and affiliates 0 21,498 0 (21,498) 0 Total liabilities $ 0 $ 21,498 $ 1,093,833 $ (21,498) $ 1,093,833 (1) “Netting” amounts represent cash collateral of $0 million as of both December 31, 2022 and 2021. (2) Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (3) Amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. (4) 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 December 31, 2022 and 2021, the fair values of such investments were $2.4 million and $2.8 million, respectively. (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). At December 31, 2022 and 2021, the fair value of such investments was $1,912 million and $2,190 million, respectively. (6) 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 Statements of Financial Position. |
Fair Value Inputs, Assets and Liabilities, Quantitative Information | The tables below present quantitative information regarding significant internally-priced Level 3 assets and liabilities. December 31, 2022 Fair Value Valuation Unobservable Inputs Minimum Maximum Weighted Impact of Increase (in thousands) Assets: Corporate securities(2) $ 3,803 Discounted cash flow Discount rate 10.18 % 10.18 % 10.18 % Decrease Commercial mortgage-backed securities $ 20,701 Discounted cash flow Liquidity premium 60 % 75 % 69.05% Decrease Market risk benefit assets(3)(4) $ 558,624 Discounted cash flow Lapse rate(5) 1 % 20 % Increase Spread over SOFR(6) 0.50 % 2.20 % Increase Utilization rate(7) 38 % 95 % Decrease Withdrawal rate See table footnote (8) below. Mortality rate(9) 0 % 15 % Increase Equity volatility curve 18 % 26 % Decrease Liabilities: Market risk benefit liabilities(3)(4) $ 558,624 Discounted cash flow Lapse rate(5) 1 % 20 % Decrease Spread over SOFR(6) 0.50 % 2.20 % Decrease Utilization rate(7) 38 % 95 % Increase Withdrawal rate See table footnote (8) below. Mortality rate(9) 0 % 15 % Decrease Equity volatility curve 18 % 26 % Increase Policyholders' account balances(10) $ 108,144 Discounted cash flow Lapse rate(5) 1 % 6 % Decrease Spread over SOFR(6) 0.53 % 2.26 % Decrease Mortality rate(9) 0 % 23 % Decrease Equity volatility curve 18 % 28 % Increase December 31, 2021 Fair Value Valuation Unobservable Inputs Minimum Maximum Weighted Impact of Increase (in thousands) Assets: Corporate securities(2) $ 24,319 Discounted cash flow Discount rate 2.41 % 3.99 % 2.62 % Decrease Liquidation Liquidation value 62.58 % 62.58 % 62.58 % Increase Market risk benefit assets(3)(4) $ 940,706 Discounted cash flow Lapse rate(5) 1 % 20 % Increase Spread over LIBOR(6) 0.03 % 1.13 % Increase Utilization rate(7) 39 % 96 % Decrease Withdrawal rate See table footnote (8) below. Mortality rate(9) 0 % 15 % Increase Equity volatility curve 16 % 25 % Decrease Liabilities: Market risk benefit liabilities(3)(4) $ 940,706 Discounted cash flow Lapse rate(5) 1 % 20 % Decrease Spread over LIBOR(6) 0.03 % 1.13 % Decrease Utilization rate(7) 39 % 96 % Increase Withdrawal rate See table footnote (8) below. Mortality rate(9) 0 % 15 % Decrease Equity volatility curve 16 % 25 % Increase Policyholders' account balances(10) $ 153,127 Discounted cash flow Lapse rate(5) 1 % 6 % Decrease Spread over LIBOR(6) 0.03 % 1.13 % Decrease Mortality rate(9) 0 % 23 % Decrease Equity volatility curve 12 % 27 % 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) Market risk benefits primarily represent fair value for all living benefit guarantees including accommodation, withdrawal and income benefits. Since the valuation methodology for these assets and 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) Amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. (5) Lapse rates for contracts with living benefit guarantees 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 for contracts with index-linked crediting guarantees may be adjusted at the contract level based on the applicability of any surrender charges, product type, and market related factors such as interest rates. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. For any given contract, lapse rates vary throughout the period over which cash flows are projected for the purposes of valuing these embedded derivatives. (6) The spread over the SOFR swap curve and the LIBOR swap curve represents the premium added to the proxy for the risk-free rate (SOFR or LIBOR, as applicable) to reflect the Company's estimates of rates that a market participant would use to value the living benefits in both the accumulation and payout phases and index-linked interest crediting guarantees as of December 31, 2022 and 2021, respectively. 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 funding agreements, living benefit guarantees, and index-linked interest crediting guarantees are insurance liabilities and are therefore senior to debt. (7) 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. (8) 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 December 31, 2022 and 2021, the minimum withdrawal rate assumption is 77% and 76%, respectively. As of December 31, 2022 and 2021, 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%. (9) The range reflects the mortality rates for the vast majority of business with living benefits and other contracts, with policyholders ranging from 50 to 90 years old. While the majority of living benefits have a minimum age requirement, certain other contracts do not have an age restriction. This results in contractholders with mortality rates approaching 0% for certain benefits. Mortality rates may vary by product, age and duration. A mortality improvement assumption is also incorporated into the overall mortality table. (10) Policyholders’ account balances primarily represent general account liabilities for the index-linked interest credited on certain of the Company’s life products that 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 a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. |
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 (excluding MRBs disclosed in Note 10). 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. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate. Year Ended December 31, 2022(5)(8) Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(1) (in thousands) Fixed maturities, available-for-sale: Corporate securities(2) $ 24,319 $ (1,665) $ 0 $ 0 $ 0 $ (632) $ 0 $ 0 $ (18,219) $ 3,803 $ (1,622) Structured securities(3) 27,274 (6,168) 320 0 0 (405) 0 0 (320) 20,701 (6,144) Other assets: Equity securities 5,812 (1,521) 0 0 0 0 0 0 0 4,291 (1,522) Liabilities: Policyholders' account balances(4) (153,127) 29,130 0 0 15,853 0 0 0 0 (108,144) 24,845 Year Ended December 31, 2022(5) Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(1) Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss)(7) (in thousands) Fixed maturities, available-for-sale $ 1,198 $ 0 $ (9,008) $ (23) $ 1,200 $ 0 $ (8,966) Other assets: Equity securities 0 (1,521) 0 0 0 (1,522) 0 Liabilities: Policyholders' account balances 29,130 0 0 0 24,845 0 0 Year Ended December 31, 2021(5)(8) Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(1) (in thousands) Fixed maturities, available-for-sale: Corporate securities(2) $ 24,045 $ (3,330) $ 0 $ 0 $ 0 $ (502) $ 0 $ 4,106 $ 0 $ 24,319 $ (3,327) Structured securities(3) 0 1,132 0 (10) 0 (113) 0 26,265 0 27,274 1,134 Other assets: Equity securities 6,095 (283) 0 0 0 0 0 0 0 5,812 (283) Liabilities: Policyholders' account balances(4) (153,937) (8,983) 0 0 0 9,793 0 0 0 (153,127) (11) Year Ended December 31, 2021(5) Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(1) Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss)(7) (in thousands) Fixed maturities, available-for-sale $ (1,404) $ 0 $ (783) $ (11) $ (1,557) $ 0 $ (636) Other assets: Equity securities 0 (283) 0 0 0 (283) 0 Liabilities: Policyholders' account balances (8,983) 0 0 0 (11) 0 0 Year Ended December 31, 2020 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(1) Realized investment gains (losses), net(6) Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss)(7) (in thousands) Fixed maturities, available-for-sale $ 34 $ 0 $ 3,275 $ 8 $ 0 $ 0 $ 3,320 Other assets: Equity securities 0 2,290 0 0 0 1,100 0 Reinsurance recoverables 326,083 0 0 0 349,277 0 0 Liabilities: Future policy benefits (326,083) 0 0 0 (349,277) 0 0 Policyholders' account balances (3,200) 0 0 0 1,307 0 0 (1) 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. (2) Includes U.S. corporate private, foreign corporate public, and foreign corporate private securities. (3) Includes asset backed and commercial mortgage-backed securities. (4) Issuances and settlements for Policyholders' account balances are presented net in the rollforward. (5) Effective January 1, 2021, Future policy benefits and Reinsurance recoverables previously included in "Changes in level 3 assets and liabilities" are reported in Note 10 Market Risk Benefits. (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. (7) Effective January 1, 2020, the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period were added prospectively due to adoption of ASU 2018-13. (8) Excludes MRB assets of $559 million and $941 million and MRB liabilities of $559 million and $941 million for period ending December 31, 2022 and 2021, respectively. See Note 10 for additional information. |
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 (excluding MRBs disclosed in Note 10). 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. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate. Year Ended December 31, 2022(5)(8) Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(1) (in thousands) Fixed maturities, available-for-sale: Corporate securities(2) $ 24,319 $ (1,665) $ 0 $ 0 $ 0 $ (632) $ 0 $ 0 $ (18,219) $ 3,803 $ (1,622) Structured securities(3) 27,274 (6,168) 320 0 0 (405) 0 0 (320) 20,701 (6,144) Other assets: Equity securities 5,812 (1,521) 0 0 0 0 0 0 0 4,291 (1,522) Liabilities: Policyholders' account balances(4) (153,127) 29,130 0 0 15,853 0 0 0 0 (108,144) 24,845 Year Ended December 31, 2022(5) Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(1) Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss)(7) (in thousands) Fixed maturities, available-for-sale $ 1,198 $ 0 $ (9,008) $ (23) $ 1,200 $ 0 $ (8,966) Other assets: Equity securities 0 (1,521) 0 0 0 (1,522) 0 Liabilities: Policyholders' account balances 29,130 0 0 0 24,845 0 0 Year Ended December 31, 2021(5)(8) Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(1) (in thousands) Fixed maturities, available-for-sale: Corporate securities(2) $ 24,045 $ (3,330) $ 0 $ 0 $ 0 $ (502) $ 0 $ 4,106 $ 0 $ 24,319 $ (3,327) Structured securities(3) 0 1,132 0 (10) 0 (113) 0 26,265 0 27,274 1,134 Other assets: Equity securities 6,095 (283) 0 0 0 0 0 0 0 5,812 (283) Liabilities: Policyholders' account balances(4) (153,937) (8,983) 0 0 0 9,793 0 0 0 (153,127) (11) Year Ended December 31, 2021(5) Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(1) Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss)(7) (in thousands) Fixed maturities, available-for-sale $ (1,404) $ 0 $ (783) $ (11) $ (1,557) $ 0 $ (636) Other assets: Equity securities 0 (283) 0 0 0 (283) 0 Liabilities: Policyholders' account balances (8,983) 0 0 0 (11) 0 0 Year Ended December 31, 2020 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(1) Realized investment gains (losses), net(6) Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss)(7) (in thousands) Fixed maturities, available-for-sale $ 34 $ 0 $ 3,275 $ 8 $ 0 $ 0 $ 3,320 Other assets: Equity securities 0 2,290 0 0 0 1,100 0 Reinsurance recoverables 326,083 0 0 0 349,277 0 0 Liabilities: Future policy benefits (326,083) 0 0 0 (349,277) 0 0 Policyholders' account balances (3,200) 0 0 0 1,307 0 0 (1) 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. (2) Includes U.S. corporate private, foreign corporate public, and foreign corporate private securities. (3) Includes asset backed and commercial mortgage-backed securities. (4) Issuances and settlements for Policyholders' account balances are presented net in the rollforward. (5) Effective January 1, 2021, Future policy benefits and Reinsurance recoverables previously included in "Changes in level 3 assets and liabilities" are reported in Note 10 Market Risk Benefits. (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. (7) Effective January 1, 2020, the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period were added prospectively due to adoption of ASU 2018-13. (8) Excludes MRB assets of $559 million and $941 million and MRB liabilities of $559 million and $941 million for period ending December 31, 2022 and 2021, respectively. See Note 10 for additional information. |
Fair Value Disclosure Financial Instruments Not Carried at Fair Value | The tables below present 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 Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value. December 31, 2022 Fair Value Carrying Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 141,513 $ 141,513 $ 148,179 Policy loans 0 0 212,063 212,063 212,063 Short-term investments 4,000 0 0 4,000 4,000 Cash and cash equivalents 10,465 0 0 10,465 10,465 Accrued investment income 0 25,222 0 25,222 25,222 Reinsurance recoverables 0 0 25,127 25,127 27,183 Receivables from parent and affiliates 0 18,660 0 18,660 18,660 Other assets 0 3,852 0 3,852 3,852 Total assets $ 14,465 $ 47,734 $ 378,703 $ 440,902 $ 449,624 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 180,576 $ 36,746 $ 217,322 $ 219,378 Payables to parent and affiliates 0 3,513 0 3,513 3,513 Other liabilities 0 51,312 0 51,312 51,312 Total liabilities $ 0 $ 235,401 $ 36,746 $ 272,147 $ 274,203 December 31, 2021 Fair Value Carrying Amount(1) Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 121,594 $ 121,594 $ 115,576 Policy loans 0 0 210,730 210,730 210,730 Cash and cash equivalents 7,597 0 0 7,597 7,597 Accrued investment income 0 22,539 0 22,539 22,539 Reinsurance recoverables 0 0 29,931 29,931 28,883 Receivables from parent and affiliates 0 20,650 0 20,650 20,650 Other assets 0 3,013 0 3,013 3,013 Total assets $ 7,597 $ 46,202 $ 362,255 $ 416,054 $ 408,988 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 201,955 $ 41,939 $ 243,894 $ 242,846 Payables to parent and affiliates 0 2,432 0 2,432 2,432 Other liabilities 0 49,130 0 49,130 49,130 Total liabilities $ 0 $ 253,517 $ 41,939 $ 295,456 $ 294,408 (1) Carrying values presented herein differ from those in the Company’s Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments. |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs and Deferred Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Charges, Insurers [Abstract] | |
Deferred Policy Acquisition Costs | The following tables show a rollforward for the lines of business that contain DAC balances, along with a reconciliation to the Company's total DAC balance: Term Life Variable / Universal Life Total (in thousands) Balance, January 1, 2021 $ 51,527 $ 192,691 $ 244,218 Capitalization 17,427 65,297 82,724 Amortization expense (6,863) (11,335) (18,198) Other 0 0 0 Balance, December 31, 2021 $ 62,091 $ 246,653 $ 308,744 Capitalization 14,911 47,531 62,442 Amortization expense (6,737) (12,553) (19,290) Other (52) 30 (22) Balance, December 31, 2022 $ 70,213 $ 281,661 $ 351,874 2020 (in thousands) Balance, beginning of year $ 178,813 Capitalization of commissions, sales and issue expenses 76,544 Amortization-Impact of assumption and experience unlocking and true-ups (6,688) Amortization-All other (11,431) Change due to unrealized investment gains and losses (12,813) Balance, end of year 224,425 Transition adjustments(1) 19,793 Balance after transition, January 1, 2021 $ 244,218 (1) Adjustments for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Deferred Reinsurance Losses | The following tables show a rollforward of DRL balances for variable annuity products, which is the only line of business that contains a DRL balance, along with a reconciliation to the Company's total DRL balance: December 31, 2022 Variable Annuities (in thousands) Balance, beginning of period $ 18,977 Amortization expense (1,547) Other (5) Balance, end of period $ 17,425 December 31, 2021 Variable Annuities (in thousands) Balance, beginning of period $ 20,632 Amortization expense (1,655) Balance, end of period $ 18,977 |
Separate Accounts (Tables)
Separate Accounts (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Separate Account Assets | The aggregate fair value of assets, by major investment asset category, supporting separate accounts is as follows: December 31, 2022 December 31, 2021 (in thousands) Asset Type: Mutual funds: Equity $ 7,430,452 $ 10,668,762 Fixed Income 3,973,001 4,306,815 Other 611,170 756,382 Other invested assets 1,912,335 2,190,408 Total $ 13,926,958 $ 17,922,367 |
Separate Account Liability | The balances of and changes in separate account liabilities as of and for the periods indicated are as follows: December 31, 2022 Variable Annuities Variable Life Total (in thousands) Balance, beginning of period $ 11,982,322 $ 5,940,045 $ 17,922,367 Deposits 67,216 200,686 267,902 Investment performance (2,113,606) (925,970) (3,039,576) Policy charges (238,173) (100,968) (339,141) Surrenders and withdrawals (764,069) (42,118) (806,187) Benefit payments (5,622) (42,934) (48,556) Net transfers (to) from general account (895) (37,577) (38,472) Other 1,395 7,226 8,621 Balance, end of period $ 8,928,568 $ 4,998,390 $ 13,926,958 Cash surrender value(1) $ 8,747,915 $ 4,897,409 $ 13,645,324 (1) Cash surrender value represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. December 31, 2021 Variable Annuities Variable Life Total (in thousands) Balance, beginning of period $ 11,963,399 $ 5,154,111 $ 17,117,510 Deposits 99,941 236,158 336,099 Investment performance 1,171,547 797,051 1,968,598 Policy charges (277,346) (98,839) (376,185) Surrenders and withdrawals (972,834) (58,845) (1,031,679) Benefit payments (7,378) (61,608) (68,986) Net transfers (to) from general account 4,108 (33,480) (29,372) Other 885 5,497 6,382 Balance, end of period $ 11,982,322 $ 5,940,045 $ 17,922,367 Cash surrender value(1) $ 11,749,197 $ 5,850,808 $ 17,600,005 (1) Cash surrender value represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. |
Liability for Future Policy B_2
Liability for Future Policy Benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Liability for Future Policy Benefit | The balances of and changes in Benefit Reserves as of and for the periods indicated consist of the three tables presented below: Present Value of Expected Net Premiums rollforward, Present Value of Expected Future Policy Benefits rollforward, and Net Liability for Future Policy Benefits. December 31, 2022 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 1,641,933 $ 0 $ 1,641,933 Effect of cumulative changes in discount rate assumptions, beginning of period (253,752) 0 (253,752) Balance at original discount rate, beginning of period 1,388,181 0 1,388,181 Effect of assumption update 174,263 0 174,263 Effect of actual variances from expected experience and other activity (29,416) (746) (30,162) Adjusted balance, beginning of period 1,533,028 (746) 1,532,282 Issuances 58,215 2,110 60,325 Net premiums / considerations collected (170,297) (1,364) (171,661) Interest accrual 69,424 0 69,424 Balance at original discount rate, end of period 1,490,370 0 1,490,370 Effect of cumulative changes in discount rate assumptions, end of period (73,563) 0 (73,563) Balance, end of period $ 1,416,807 $ 0 $ 1,416,807 December 31, 2022 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 3,041,562 $ 19,314 $ 3,060,876 Effect of cumulative changes in discount rate assumptions, beginning of period (561,455) (1,459) (562,914) Balance at original discount rate, beginning of period 2,480,107 17,855 2,497,962 Effect of assumption update 255,336 0 255,336 Effect of actual variances from expected experience and other activity (60,049) 149 (59,900) Adjusted balance, beginning of period 2,675,394 18,004 2,693,398 Issuances 58,215 2,111 60,326 Interest accrual 129,657 627 130,284 Benefit payments (173,998) (2,308) (176,306) Other adjustments (115) (75) (190) Balance at original discount rate, end of period 2,689,153 18,359 2,707,512 Effect of cumulative changes in discount rate assumptions, end of period (137,962) (1,899) (139,861) Balance, end of period $ 2,551,191 $ 16,460 $ 2,567,651 December 31, 2022 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, pre-flooring $ 1,134,384 $ 16,460 $ 1,150,844 Flooring impact, end of period 0 0 0 Balance, end of period, post-flooring 1,134,384 16,460 1,150,844 Less: Reinsurance recoverable 1,002,277 16,460 1,018,737 Balance after reinsurance recoverable, end of period, post-flooring $ 132,107 $ 0 $ 132,107 December 31, 2021 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 1,762,111 $ 0 $ 1,762,111 Effect of cumulative changes in discount rate assumptions, beginning of period (352,891) 0 (352,891) Balance at original discount rate, beginning of period 1,409,220 0 1,409,220 Effect of assumption update 5,651 0 5,651 Effect of actual variances from expected experience and other activity (13,285) 0 (13,285) Adjusted balance, beginning of period 1,401,586 0 1,401,586 Issuances 75,944 3,763 79,707 Net premiums / considerations collected (155,282) (3,763) (159,045) Interest accrual 65,933 0 65,933 Balance at original discount rate, end of period 1,388,181 0 1,388,181 Effect of cumulative changes in discount rate assumptions, end of period 253,752 0 253,752 Balance, end of period $ 1,641,933 $ 0 $ 1,641,933 December 31, 2021 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 3,212,658 $ 17,969 $ 3,230,627 Effect of cumulative changes in discount rate assumptions, beginning of period (753,963) (2,188) (756,151) Balance at original discount rate, beginning of period 2,458,695 15,781 2,474,476 Effect of assumption update 5,817 0 5,817 Effect of actual variances from expected experience and other activity (9,219) (297) (9,516) Adjusted balance, beginning of period 2,455,293 15,484 2,470,777 Issuances 75,944 3,763 79,707 Interest accrual 120,981 620 121,601 Benefit payments (171,572) (2,012) (173,584) Other adjustments (539) 0 (539) Balance at original discount rate, end of period 2,480,107 17,855 2,497,962 Effect of cumulative changes in discount rate assumptions, end of period 561,455 1,459 562,914 Balance, end of period $ 3,041,562 $ 19,314 $ 3,060,876 December 31, 2021 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, pre-flooring $ 1,399,629 $ 19,314 $ 1,418,943 Flooring impact, end of period 899 0 899 Balance, end of period, post-flooring 1,400,528 19,314 1,419,842 Less: Reinsurance recoverable 1,216,756 19,314 1,236,070 Balance after reinsurance recoverable, end of period, post-flooring $ 183,772 $ 0 $ 183,772 The following tables provide supplemental information related to the balances of and changes in Benefit Reserves included in the disaggregated tables above, on a gross (direct and assumed) basis, as of and for the periods indicated: December 31, 2022 Term Life Fixed Annuities ($ in thousands) Undiscounted expected future gross premiums $ 3,073,048 $ 0 Discounted expected future gross premiums (at original discount rate) $ 2,069,441 $ 0 Discounted expected future gross premiums (at current discount rate) $ 1,973,031 $ 0 Undiscounted expected future benefits and expenses $ 4,352,500 $ 24,056 Interest accrual $ 60,233 $ 627 Gross premiums $ 242,406 $ 1,700 Weighted-average duration of the liability in years (at original discount rate) 11 7 Weighted-average duration of the liability in years (at current discount rate) 10 6 Weighted-average interest rate (at original discount rate) 5.33 % 3.56 % Weighted-average interest rate (at current discount rate) 5.40 % 5.30 % December 31, 2021 Term Life Fixed Annuities ($ in thousands) Undiscounted expected future gross premiums $ 3,309,037 $ 0 Discounted expected future gross premiums (at original discount rate) $ 2,185,726 $ 0 Discounted expected future gross premiums (at current discount rate) $ 2,597,734 $ 0 Undiscounted expected future benefits and expenses $ 4,023,185 $ 23,747 Interest accrual $ 55,048 $ 620 Gross premiums $ 241,783 $ 4,553 Weighted-average duration of the liability in years (at original discount rate) 11 7 Weighted-average duration of the liability in years (at current discount rate) 11 7 Weighted-average interest rate (at original discount rate) 5.37 % 3.56 % Weighted-average interest rate (at current discount rate) 2.54 % 2.48 % For additional information regarding observable market information and the techniques used to determine the interest rate assumptions seen above, see Note 2. The balances of and changes in Deferred Profit Liability as of and for the periods indicated are as follows: December 31, 2022 December 31, 2021 Fixed Annuities (in thousands) Balance, beginning of period $ 1,726 $ 984 Effect of actual variances from expected experience and other activity (169) 98 Adjusted balance, beginning of period 1,557 1,082 Profits deferred 309 771 Interest accrual 60 60 Amortization (222) (187) Other adjustments (20) 0 Balance, end of period 1,684 1,726 Less: Reinsurance recoverable 1,684 1,726 Balance after reinsurance recoverable $ 0 $ 0 The following table provides supplemental information related to the balances of and changes in Deferred Profit Liability, included in the disaggregated table above, on a gross (direct and assumed) basis, as of and for the period indicated: December 31, 2022 December 31, 2021 Fixed Annuities (in thousands) Revenue(1) $ 42 $ (742) Interest accrual 60 60 (1) Represents the gross premiums collected in changes in deferred profit liability. The following table shows a rollforward of AIR balances for variable and universal life products, for the periods indicated: December 31, 2022 December 31, 2021 (in thousands) Balance including amounts in AOCI, beginning of period, post-flooring $ 703,968 $ 642,514 Flooring impact and amounts in AOCI (71,467) (95,331) Balance, excluding amounts in AOCI, beginning of period, pre-flooring 632,501 547,183 Effect of assumption update 180,404 369 Effect of actual variances from expected experience and other activity (39,475) 8,089 Adjusted balance, beginning of period 773,430 555,641 Assessments collected(1) 134,822 62,891 Interest accrual 27,479 20,039 Benefits paid (17,138) (6,070) Balance, excluding amounts in AOCI, end of period, pre-flooring 918,593 632,501 Flooring impact and amounts in AOCI (91,115) 71,467 Balance, including amounts in AOCI, end of period, post-flooring 827,478 703,968 Less: Reinsurance recoverable 793,577 666,813 Balance after reinsurance recoverable, including amounts in AOCI, end of period $ 33,901 $ 37,155 (1) Represents the portion of gross assessments required to fund the future policy benefits. December 31, 2022 December 31, 2021 ($ in thousands) Interest accrual $ 27,479 $ 20,039 Gross assessments $ 303,979 $ 215,741 Weighted-average duration of the liability in years (at original discount rate) 28 26 Weighted-average interest rate (at original discount rate) 3.41 % 3.44 % The following table presents the reconciliation of the ending balances from the above rollforwards, Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability including other liabilities, gross of related reinsurance recoverables, to the total liability for Future Policy Benefits as reported on the Company's Statements of Financial Position as of the periods indicated: December 31, 2022 December 31, 2021 (in thousands) Benefit reserves, end of period, post-flooring $ 1,150,844 $ 1,419,842 Additional insurance reserves, including amounts in AOCI, end of period, post-flooring 827,478 703,968 Deferred profit liability, end of period, post-flooring 1,684 1,726 Subtotal of amounts disclosed above 1,980,006 2,125,536 Other Future policy benefits reserves(1) 150,036 235,587 Total Future policy benefits $ 2,130,042 $ 2,361,123 (1) Represents balances for which disaggregated rollforward disclosures are not required, including unpaid claims and claims expenses, and incurred but not reported and in course of settlement claim liabilities. The following tables present revenue and interest expense related to Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability, as well as related revenue and interest expense not presented in the above supplemental tables, in the Company's Statement of Operations for the periods indicated: December 31, 2022 Revenues(1) Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 1,700 $ 242,406 $ 0 $ 244,106 Additional insurance reserves 0 0 303,979 303,979 Deferred profit liability 42 0 0 42 Total $ 1,742 $ 242,406 $ 303,979 $ 548,127 December 31, 2021 Revenues(1) Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 4,553 $ 241,783 $ 0 $ 246,336 Additional insurance reserves 0 0 215,741 215,741 Deferred profit liability (742) 0 0 (742) Total $ 3,811 $ 241,783 $ 215,741 $ 461,335 (1) Represents "Gross premiums" for benefit reserves; "Gross assessments" for additional insurance reserves; and "Revenue" for deferred profit liability. December 31, 2022 Interest Expense Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 627 $ 60,233 $ 0 $ 60,860 Additional insurance reserves 0 0 27,479 27,479 Deferred profit liability 60 0 0 60 Total $ 687 $ 60,233 $ 27,479 $ 88,399 December 31, 2021 Interest Expense Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 620 $ 55,048 $ 0 $ 55,668 Additional insurance reserves 0 0 20,039 20,039 Deferred profit liability 60 0 0 60 Total $ 680 $ 55,048 $ 20,039 $ 75,767 |
Policyholders' Liabilities (Tab
Policyholders' Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities [Abstract] | |
Policyholder Account Balance [Table Text Block] | The balance of and changes in policyholders' account balances as of and for the periods ended are as follows: December 31, 2022 Variable Annuities Variable Life / Universal Life Total ($ in thousands) Balance, beginning of period $ 344,945 $ 2,052,065 $ 2,397,010 Deposits 1,066 227,017 228,083 Interest credited 6,174 64,979 71,153 Policy charges (234) (145,194) (145,428) Surrenders and withdrawals (22,412) (125,011) (147,423) Benefit payments (3,310) 2,378 (932) Net transfers (to) from separate account 895 37,577 38,472 Change in market value and other adjustments 0 (29,131) (29,131) Balance, end of period 327,124 2,084,680 2,411,804 Less: Reinsurance and other recoverables(1) 323,981 759,273 1,083,254 Policyholders' account balance net of reinsurance and other recoverables $ 3,143 $ 1,325,407 $ 1,328,550 Unearned revenue reserve 313,710 Other 48,801 Total Policyholders' account balance $ 2,774,315 Weighted-average crediting rate 1.84 % 3.14 % 2.96 % Net amount at risk(2) $ 0 $ 33,702,745 $ 33,702,745 Cash surrender value(3) $ 305,239 $ 1,750,451 $ 2,055,690 (1) The amount of recoverables related to reinsurance agreements that reduce the risk of the policyholders’ account balances gross liability. (2) The net amount at risk calculation includes both general and separate account balances. (3) Cash surrender value represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. December 31, 2021 Variable Annuities Variable Life / Universal Life Total ($ in thousands) Balance, beginning of period $ 365,751 $ 2,023,030 $ 2,388,781 Deposits 1,610 279,102 280,712 Interest credited 6,524 55,457 61,981 Policy charges (169) (141,977) (142,146) Surrenders and withdrawals (18,111) (133,669) (151,780) Benefit payments (6,552) (72,340) (78,892) Net transfers (to) from separate account (4,108) 33,480 29,372 Change in market value and other adjustments 0 8,982 8,982 Balance, end of period 344,945 2,052,065 2,397,010 Less: Reinsurance and other recoverables(1) 340,527 732,293 1,072,820 Policyholders' account balance net of reinsurance and other recoverables $ 4,418 $ 1,319,772 $ 1,324,190 Unearned revenue reserve 251,573 Other 51,351 Total Policyholders' account balance $ 2,699,934 Weighted-average crediting rate 1.84 % 2.72 % 2.59 % Net amount at risk(2) $ 0 $ 32,380,414 $ 32,380,414 Cash surrender value(3) $ 323,406 $ 1,676,529 $ 1,999,935 (1) The amount of recoverables related to reinsurance agreements that reduce the risk of the policyholders’ account balances gross liability. (2) The net amount at risk calculation includes both general and separate account balances. (3) Cash surrender value represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. |
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Table Text Block] | The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums are as follows: December 31, 2022 Range of Guaranteed Minimum At guaranteed minimum 1 - 50 bps above guaranteed minimum 51 - 150 bps above guaranteed minimum Greater than 150 bps above guaranteed minimum Total ($ in thousands) Variable Annuities Less than 1.00% $ 0 $ 0 $ 0 $ 0 $ 0 1.00% - 1.99% 192,551 1,593 0 0 194,144 2.00% - 2.99% 1,812 0 0 0 1,812 3.00% - 4.00% 132,969 231 0 0 133,200 Greater than 4.00% 125 0 0 0 125 Total $ 327,457 $ 1,824 $ 0 $ 0 $ 329,281 Variable Life / Universal Life Less than 1.00% $ 705 $ 0 $ 0 $ 0 $ 705 1.00% - 1.99% 56,396 0 105,883 286,496 448,775 2.00% - 2.99% 4,433 15,602 203,101 136,109 359,245 3.00% - 4.00% 156,567 633 435,220 0 592,420 Greater than 4.00% 377,674 0 0 0 377,674 Total $ 595,775 $ 16,235 $ 744,204 $ 422,605 $ 1,778,819 (1) Excludes contracts without minimum guaranteed crediting rates, such as funds with indexed-linked crediting options. December 31, 2021 Range of Guaranteed Minimum At guaranteed minimum 1 - 50 bps above guaranteed minimum 51 - 150 bps above guaranteed minimum Greater than 150 bps above guaranteed minimum Total ($ in thousands) Variable Annuities Less than 1.00% $ 0 $ 0 $ 0 $ 0 $ 0 1.00% - 1.99% 202,917 1,627 0 0 204,544 2.00% - 2.99% 1,901 0 0 0 1,901 3.00% - 4.00% 142,452 0 0 0 142,452 Greater than 4.00% 120 0 0 0 120 Total $ 347,390 $ 1,627 $ 0 $ 0 $ 349,017 Variable Life / Universal Life Less than 1.00% $ 1,143 $ 0 $ 0 $ 0 $ 1,143 1.00% - 1.99% 48,298 0 0 362,043 410,341 2.00% - 2.99% 679 0 288,371 53,031 342,081 3.00% - 4.00% 142,942 390,853 62,559 0 596,354 Greater than 4.00% 362,150 0 0 0 362,150 Total $ 555,212 $ 390,853 $ 350,930 $ 415,074 $ 1,712,069 |
Additional Liability, Long-Duration Insurance (URR and Cost of Reinsurance) | The balances of and changes in URR as of and for the periods ended are as follows: December 31, 2022 December 31, 2021 Variable Life / Universal Life (in thousands) Balance, beginning of period $ 251,573 $ 186,582 Unearned revenue 75,757 76,179 Amortization expense (13,681) (11,188) Other adjustments 61 0 Balance, end of period 313,710 251,573 Less: Reinsurance recoverables 81,256 63,830 Unearned revenue reserve net of reinsurance recoverables $ 232,454 $ 187,743 |
Market Risk Benefits (Tables)
Market Risk Benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Market Risk Benefits | The following tables show a rollforward of MRB balances for variable annuity products, along with a reconciliation to the Company’s total net MRB positions as of the following dates: December 31, 2022 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 796,913 $ (796,913) $ 0 Effect of cumulative changes in non-performance risk 21,123 0 21,123 Balance, beginning of period, before effect of changes in non-performance risk 818,036 (796,913) 21,123 Attributed fees collected 117,867 (117,867) 0 Claims paid (3,456) 3,456 0 Interest accrual 12,950 (12,950) 0 Actual in force different from expected 10,199 (10,199) 0 Effect of changes in interest rates (642,920) 642,920 0 Effect of changes in equity markets 266,177 (266,177) 0 Effect of assumption update (17,430) 17,430 0 Effect of changes in current period counterparty non-performance risk 0 142,046 142,046 Balance, end of period, before effect of changes in non-performance risk 561,423 (398,254) 163,169 Effect of cumulative changes in non-performance risk (163,169) 0 (163,169) Balance, end of period $ 398,254 $ (398,254) $ 0 December 31, 2021 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 1,205,571 $ (1,205,571) $ 0 Effect of cumulative changes in non-performance risk 60,792 0 60,792 Balance, beginning of period, before effect of changes in non-performance risk 1,266,363 (1,205,571) 60,792 Attributed fees collected 129,583 (129,583) 0 Claims paid (199) 199 0 Interest accrual 2,200 (2,200) 0 Actual in force different from expected 934 (934) 0 Effect of changes in interest rates (324,926) 324,926 0 Effect of changes in equity markets (235,734) 235,734 0 Effect of assumption update (20,185) 20,185 0 Effect of changes in current period counterparty non-performance risk 0 (39,669) (39,669) Balance, end of period, before effect of changes in non-performance risk 818,036 (796,913) 21,123 Effect of cumulative changes in non-performance risk (21,123) 0 (21,123) Balance, end of period $ 796,913 $ (796,913) $ 0 The following table presents accompanying information to the rollforward table above. See Note 9 for information on "Net amount at risk". December 31, 2022 December 31, 2021 Variable Annuities ($ in thousands) Net amount at risk(1) $ 1,050,063 $ 128,292 Weighted-average attained age of contractholders 68 65 (1) For contracts with multiple benefit features, the highest net amount at risk for each contract is included. The table below reconciles MRB asset and liability positions as of the following dates: December 31, 2022 December 31, 2021 Variable Annuities (in thousands) Market risk benefit assets $ 558,624 $ 940,706 Market risk benefit liabilities 558,624 940,706 Net liability $ 0 $ 0 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Impact On Balance Sheet | Reinsurance amounts included in the Company’s Statements of Financial Position as of December 31, were as follows: 2022 2021 (in thousands) Reinsurance recoverables(1) $ 3,098,248 $ 3,175,195 Policy loans (22,999) (22,028) Deferred policy acquisition costs(1) (646,737) (691,795) Deferred sales inducements(1) (38,146) (41,346) Market risk benefit assets(1) 478,439 868,810 Other assets(1) 42,265 44,226 Market risk benefit liabilities(1) 80,185 71,896 Other liabilities(1) 115,351 147,160 |
Reinsurance Recoverables By Counterparty | Reinsurance recoverables by counterparty as of December 31, were as follows: 2022 2021 (in thousands) Prudential Insurance(1) $ 456,633 $ 484,807 PAR U(1) 1,575,260 1,385,187 PARCC(1) 464,142 510,618 PAR Term(1) 258,169 329,514 Term Re(1) 232,796 313,481 DART(1) 73,702 105,596 Pruco Life(1) 34,720 40,804 Unaffiliated 2,826 5,188 Total reinsurance recoverables(1) $ 3,098,248 $ 3,175,195 (1) Amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Reinsurance Impact On Income Statement | Reinsurance amounts, included in the Company’s Statements of Operations and Comprehensive Income (Loss) for the years ended December 31, were as follows: 2022 2021 2020 (in thousands) Premiums: Direct(1) $ 245,525 $ 249,162 $ 249,426 Ceded(1) (211,817) (220,413) (227,766) Net premiums(1) 33,708 28,749 21,660 Policy charges and fee income: Direct(1) 370,855 395,576 407,449 Ceded(1)(2) (313,121) (323,414) (333,247) Net policy charges and fee income(1) 57,734 72,162 74,202 Net investment income: Direct 99,164 101,279 83,800 Ceded (772) (788) (805) Net investment income 98,392 100,491 82,995 Asset administration fees: Direct 38,061 44,882 39,773 Ceded (29,581) (36,007) (33,029) Net asset administration fees 8,480 8,875 6,744 Realized investment gains (losses), net: Direct(1) 12,855 465 (324,737) Ceded(1) 980 50 326,608 Realized investment gains (losses), net(1) 13,835 515 1,871 Change in value of market risk benefits, net of related hedging gain (loss): Direct(1) 256,613 448,327 0 Ceded(1) (398,659) (408,657) 0 Net change in value of market risk benefits, net of related hedging gain (loss)(1) (142,046) 39,670 0 Policyholders’ benefits (including change in reserves): Direct(1) 472,033 391,308 470,557 Ceded(1)(3) (443,844) (350,529) (428,670) Net policyholders’ benefits (including change in reserves)(1) 28,189 40,779 41,887 Change in estimates of liability for future policy benefits: Direct(1) 208,188 14,590 0 Ceded(1) (191,557) (11,771) 0 Net change in estimates of liability for future policy benefits(1) 16,631 2,819 0 Interest credited to policyholders’ account balances: Direct(1) 82,469 73,809 75,609 Ceded(1) (34,891) (30,805) (31,513) Net interest credited to policyholders’ account balances 47,578 43,004 44,096 Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization(1) $ (128,013) $ (135,863) $ (176,420) (1) Amounts for the years ended December 31, 2022 and 2021 were adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. (2) Includes $(5) million of unaffiliated activity for each of the years ended December 31, 2022 and 2021, and $(4) million for 2020. (3) Includes $2 million, $(2) million and $(1) million of unaffiliated activity for the years ended December 31, 2022, 2021 and 2020, respectively. |
Gross and Net Life Insurance in Force | The gross and net amounts of life insurance face amount in force as of December 31, were as follows: 2022 2021 2020 (in thousands) Direct gross life insurance face amount in force $ 154,382,891 $ 156,103,597 $ 154,173,267 Reinsurance ceded (140,370,532) (140,856,353) (139,478,523) Net life insurance face amount in force $ 14,012,359 $ 15,247,244 $ 14,694,744 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The following schedule discloses significant components of income tax expense (benefit) for each year presented: Year Ended December 31, 2022 2021 2020 (in thousands) Current tax expense (benefit): U.S. federal $ (22,713) $ 10,969 $ (34,698) State and local (103) 137 0 Total (22,816) 11,106 (34,698) Deferred tax expense (benefit): U.S. federal(1) (7,958) (13) 28,359 Total (7,958) (13) 28,359 Income tax expense (benefit) from operations (30,774) 11,093 (6,339) Income tax expense (benefit) reported in equity related to: Other comprehensive income (loss)(1) (36,731) (19,694) 26,521 Total income tax expense (benefit) $ (67,505) $ (8,601) $ 20,182 |
Schedule of Effective Income Tax Rate Reconciliation | The differences between income taxes expected at the U.S. federal statutory income tax rate of 21% applicable for 2022, 2021 and 2020, and the reported income tax expense (benefit) are summarized as follows: Year Ended December 31, 2022 2021 2020 ($ in thousands) Expected federal income tax expense (benefit)(1) $ (21,126) $ 20,100 $ 8,827 Non-taxable investment income (6,259) (6,371) (5,819) Tax credits (3,393) (3,478) (2,451) Changes in tax law 0 67 (6,941) Other 4 775 45 Reported income tax expense (benefit) $ (30,774) $ 11,093 $ (6,339) Effective tax rate(1) 30.6 % 11.6 % (15.1) % |
Schedule of Deferred Tax Assets and Liabilities | Schedule of Deferred Tax Assets and Deferred Tax Liabilities As of December 31, 2022 2021 (in thousands) Deferred tax assets: Insurance reserves(1) $ 1,677 $ 49,117 Net unrealized loss on securities 56,805 0 Other 465 398 Deferred tax assets 58,947 49,515 Deferred tax liabilities: Deferred policy acquisition cost(1) 15,078 8,639 Net unrealized gain on securities 0 36,834 Investments(1) 4,149 9,381 Deferred tax liabilities 19,227 54,854 Net deferred tax asset (liability) $ 39,720 $ (5,339) |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The balance of and changes in each component of AOCI as of and for the years ended December 31, are as follows: Accumulated Other Comprehensive Income (Loss) Foreign Currency Net Unrealized Interest Rate Remeasurement of Future Policy Benefits Gain (loss) from Changes in Non-Performance Risk on Market Risk Benefits Total Accumulated (in thousands) Balance, December 31, 2019 $ (981) $ 86,616 $ $ $ 85,635 Change in OCI before reclassifications 250 126,329 126,579 Amounts reclassified from AOCI 0 (286) (286) Income tax benefit (expense) (52) (26,469) (26,521) Balance, December 31, 2020 (783) 186,190 185,407 Cumulative effect of adoption of ASU 2018-12 0 (11,979) (45,378) 48,028 (9,329) Change in OCI before reclassifications(2) (259) (66,843) 13,404 (39,669) (93,367) Amounts reclassified from AOCI 0 (418) 0 0 (418) Income tax benefit (expense)(2) 54 14,125 (2,814) 8,329 19,694 Balance, December 31, 2021 (988) 121,075 (34,788) 16,688 101,987 Change in OCI before reclassifications(2) (336) (375,622) 59,865 142,048 (174,045) Amounts reclassified from AOCI 0 (863) 0 0 (863) Income tax benefit (expense)(2) 110 79,024 (12,573) (29,830) 36,731 Balance, December 31, 2022 $ (1,214) $ (176,386) $ 12,504 $ 128,906 $ (36,190) (1) Includes cash flow hedges of $14 million, $5 million and $(3) million as of December 31, 2022, 2021 and 2020, respectively. (2) Amounts were adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Reclassifications out of Accumulated Other Comprehensive Income (Loss) Year Ended December 31, 2022 2021 2020 (in thousands) Amounts reclassified from AOCI(1)(2): Net unrealized investment gains (losses): Cash flow hedges - Currency/Interest rate(3) $ 4,895 $ 2,292 $ 958 Net unrealized investment gains (losses) on available-for-sale securities (4,032) (1,874) (672) Total net unrealized investment gains (losses)(4) 863 418 286 Total reclassifications for the period $ 863 $ 418 $ 286 (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 DAC and other costs, future policy benefits, policyholders’account balances and other liabilities. |
OTTI, Allowance and All Other Net Unrealized Investment Gains (Losses) AOCI Rollforward | The amounts for the periods indicated below, split between amounts related to available-for-sale fixed maturity securities on which an OTTI had been previously recognized, an allowance for credit losses has been recorded, and all other net unrealized investment gains (losses), are as follows: Net Unrealized Gains (Losses) on Available-for-Sale Fixed Maturity Securities on which an OTTI Loss has been Recognized Net Unrealized Other Costs(2) Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(3) Income Tax Accumulated (in thousands) Balance, December 31, 2019 $ 51 $ 115,988 $ 8,973 $ (15,373) $ (23,023) $ 86,616 Reclassification due to implementation of ASU 2016-13 (4) (51) 51 0 0 0 0 Net investment gains (losses) on investments arising during the period 0 139,971 0 0 (29,394) 110,577 Reclassification adjustment for (gains) losses included in net income 0 (286) 0 0 61 (225) Impact of net unrealized investment (gains) losses 0 0 19,268 (32,910) 2,864 (10,778) Balance, December 31, 2020 0 255,724 28,241 (48,283) (49,492) 186,190 Cumulative effect of adoption of ASU 2018-12 0 0 59,506 (74,668) 3,183 (11,979) Net investment gains (losses) on investments arising during the period 0 (74,500) 0 0 15,644 (58,856) Reclassification adjustment for (gains) losses included in net income 0 (418) 0 0 88 (330) Impact of net unrealized investment (gains) losses(5) 0 0 (22,975) 30,632 (1,607) 6,050 Balance, December 31, 2021 0 180,806 64,772 (92,319) (32,184) 121,075 Net investment gains (losses) on investments arising during the period 0 (436,527) 0 0 91,638 (344,889) Reclassification adjustment for (gains) losses included in net income 0 (863) 0 0 181 (682) Impact of net unrealized investment (gains) losses(5) 0 0 (148,484) 209,389 (12,795) 48,110 Balance, December 31, 2022 $ 0 $ (256,584) $ (83,712) $ 117,070 $ 46,840 $ (176,386) (1) Includes cash flow hedges. See Note 4 for information on cash flow hedges. (2) "Other costs" primarily includes reinsurance recoverables. (3) "Other liabilities" primarily includes reinsurance payables. (4) Represents net unrealized gains (losses) for which an OTTI had been previously recognized. |
Statutory Net Income and Surp_2
Statutory Net Income and Surplus and Dividends Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Statutory Net Income and Surplus and Dividends Restrictions | The following table summarizes certain statutory financial information for the Company for the periods indicated: Year Ended December 31, 2022 2021 2020 (in millions) Statutory net income (loss) $ (134) $ 52 $ (70) Statutory capital and surplus 851 592 337 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Affiliated Notes Receivable | Affiliated notes receivable included in “Receivables from parent and affiliates” at December 31, were as follows: Maturity Dates Interest Rates 2022 2021 (in thousands) U.S. dollar fixed rate notes 2027 0.00% - 14.85 % $ 688 $ 788 Total long-term notes receivable - affiliated(1) $ 688 $ 788 (1) All long-term notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances. |
Affiliated Asset Transfers | The table below shows affiliated asset trades for the years ended December 31, 2022 and 2021: Affiliate Date Transaction Security Type Fair Value Book Value APIC, Net of Tax Increase/(Decrease) Realized Investment Gain (Loss) (in thousands) Prudential Insurance September 2021 Purchase Fixed Maturities $ 10,810 $ 10,520 $ (229) $ 0 Prudential Insurance September 2021 Sale Fixed Maturities $ 7,356 $ 6,477 $ 695 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Purchase Fixed Maturities $ 19,724 $ 19,724 $ 0 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Sale Fixed Maturities $ 22,557 $ 22,038 $ 0 $ 519 Prudential Insurance September 2021 Purchase Derivatives $ 715 $ 213 $ (396) $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Purchase Derivatives $ 21 $ 21 $ 0 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Sale Derivatives $ 816 $ 233 $ 0 $ 583 Prudential Insurance August 2022 Purchase Fixed Maturities $ 21,389 $ 19,630 $ (1,390) $ 0 |
Business and Basis of Present_3
Business and Basis of Presentation (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Adoption of ASU 2018-12 for LDTI | Adjustment for implementation of ASU 2018-12 |
Out of period adjustment | |
Income (loss) from operations before income taxes | $ 1 |
Business and Basis of Present_4
Business and Basis of Presentation (Summary Of Adoption Of New Guidance On Unaudited Interim Consolidated Statement For Financial Position) (Details) - USD ($) $ in Thousands | Jan. 01, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Accounting Pronouncements and Change in Accounting Principle [Line Items] | |||||||||
Deferred policy acquisition costs | $ 351,874 | [1] | $ 308,744 | [1] | $ 244,218 | $ 224,425 | $ 178,813 | ||
Reinsurance recoverables | 3,098,248 | 3,175,195 | |||||||
Income tax assets | [1] | 67,615 | 22,153 | ||||||
Market risk benefit assets | [1] | 558,624 | 940,706 | ||||||
Other assets | [1] | 48,391 | 48,867 | ||||||
TOTAL ASSETS | 20,596,445 | 25,036,946 | |||||||
Policyholders' account balances | 2,774,315 | 2,699,934 | |||||||
Future policy benefits | [1] | 2,130,042 | 2,361,123 | ||||||
Market risk benefits liabilities | [1] | 558,624 | 940,706 | ||||||
Other Liabilities | [1] | 172,305 | 201,033 | ||||||
Total Liabilities | 19,569,790 | 24,127,595 | |||||||
Retained earnings | [1] | 285,433 | 355,262 | ||||||
Accumulated other comprehensive income (loss) | [1] | (36,190) | 101,987 | ||||||
Total equity | 1,026,655 | 909,351 | |||||||
TOTAL LIABILITIES AND EQUITY | 20,596,445 | 25,036,946 | |||||||
As Previously Reported | |||||||||
Accounting Pronouncements and Change in Accounting Principle [Line Items] | |||||||||
Deferred policy acquisition costs | 364,494 | 290,299 | $ 224,425 | ||||||
Reinsurance recoverables | 3,258,526 | 3,601,212 | |||||||
Income tax assets | 67,126 | 5,842 | |||||||
Market risk benefit assets | 0 | 0 | |||||||
Other assets | 16,207 | 17,581 | |||||||
TOTAL ASSETS | 20,178,046 | 24,456,215 | |||||||
Policyholders' account balances | 2,763,730 | 2,608,640 | |||||||
Future policy benefits | 2,303,407 | 2,757,941 | |||||||
Market risk benefits liabilities | 0 | 0 | |||||||
Other Liabilities | 147,908 | 194,123 | |||||||
Total Liabilities | 19,149,549 | 23,485,503 | |||||||
Retained earnings | 439,236 | 387,957 | |||||||
Accumulated other comprehensive income (loss) | (188,151) | 130,653 | |||||||
Total equity | 1,028,497 | 970,712 | |||||||
TOTAL LIABILITIES AND EQUITY | 20,178,046 | 24,456,215 | |||||||
Effect of Change | |||||||||
Accounting Pronouncements and Change in Accounting Principle [Line Items] | |||||||||
Deferred policy acquisition costs | (12,620) | 18,445 | 21,714 | ||||||
Reinsurance recoverables | (160,278) | (426,017) | |||||||
Income tax assets | 489 | 16,311 | |||||||
Market risk benefit assets | 558,624 | 940,706 | |||||||
Other assets | 32,184 | 31,286 | |||||||
TOTAL ASSETS | 418,399 | 580,731 | |||||||
Policyholders' account balances | 10,585 | 91,294 | |||||||
Future policy benefits | (173,365) | (396,818) | |||||||
Market risk benefits liabilities | 558,624 | 940,706 | |||||||
Other Liabilities | 24,397 | 6,910 | |||||||
Total Liabilities | 420,241 | 642,092 | |||||||
Retained earnings | (153,803) | (32,695) | |||||||
Accumulated other comprehensive income (loss) | 151,961 | (28,666) | |||||||
Total equity | $ (2,000) | (1,842) | (61,361) | $ (67,000) | |||||
TOTAL LIABILITIES AND EQUITY | $ 418,399 | $ 580,731 | |||||||
[1]Amounts adjusted for the implementation of Accounting Standards Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Business and Basis of Present_5
Business and Basis of Presentation (Summary Of Adoption Of New Guidance On Unaudited Interim Consolidated Statement of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
REVENUES | |||||
Premiums | $ 33,708 | [1] | $ 28,749 | [1] | $ 21,660 |
Policy charges and fee income | 57,734 | [1] | 72,162 | [1] | 74,202 |
Realized investment gains (losses), net | 13,835 | [1] | 515 | [2] | 1,871 |
Change in value of market risk benefits, net of related hedging gain (loss) | (142,046) | [2] | 39,670 | [2] | 0 |
TOTAL REVENUES | 67,950 | 251,243 | 193,837 | ||
BENEFITS AND EXPENSES | |||||
Policyholders' benefits | 28,189 | [1] | 40,779 | [1] | 41,887 |
Change in estimates of liability for future policy benefits | 16,631 | [1] | 2,819 | [1] | 0 |
Amortization of deferred policy acquisition costs | 19,290 | [1] | 18,198 | [1] | 18,119 |
General, administrative and other expenses | 56,865 | [1] | 50,727 | [1] | 47,703 |
TOTAL BENEFITS AND EXPENSES | 168,553 | 155,527 | 151,805 | ||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | (100,603) | 95,716 | 42,032 | ||
Income tax expense (benefit) | (30,774) | [1] | 11,093 | [1] | (6,339) |
NET INCOME (LOSS) | (69,829) | [2] | 84,623 | [2] | 48,371 |
Other comprehensive income (loss), before tax: | |||||
Net unrealized investment gains (losses) | (376,485) | (67,261) | |||
Interest rate remeasurement of future policy benefits | 59,867 | 13,404 | |||
Gain (loss) from changes in non-performance risk on market risk benefits | 142,046 | (39,669) | |||
Total | (174,908) | (93,785) | 126,293 | ||
Less: Income tax expense (benefit) related to other comprehensive income (loss) | (36,731) | (19,694) | 26,521 | ||
Other comprehensive income (loss), net of tax | (138,177) | (74,091) | 99,772 | ||
Comprehensive income (loss) | (208,006) | 10,532 | $ 148,143 | ||
As Previously Reported | |||||
REVENUES | |||||
Premiums | 34,901 | 29,945 | |||
Policy charges and fee income | 85,416 | 89,781 | |||
Realized investment gains (losses), net | 13,416 | 1,968 | |||
Change in value of market risk benefits, net of related hedging gain (loss) | 0 | 0 | |||
TOTAL REVENUES | 238,452 | 231,841 | |||
BENEFITS AND EXPENSES | |||||
Policyholders' benefits | 55,094 | 48,516 | |||
Change in estimates of liability for future policy benefits | 0 | 0 | |||
Amortization of deferred policy acquisition costs | 24,512 | 24,203 | |||
General, administrative and other expenses | 58,570 | 52,194 | |||
TOTAL BENEFITS AND EXPENSES | 185,754 | 167,917 | |||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | 52,698 | 63,924 | |||
Income tax expense (benefit) | 1,419 | 4,417 | |||
NET INCOME (LOSS) | 51,279 | 59,507 | |||
Other comprehensive income (loss), before tax: | |||||
Net unrealized investment gains (losses) | (403,214) | (69,049) | |||
Interest rate remeasurement of future policy benefits | 0 | 0 | |||
Gain (loss) from changes in non-performance risk on market risk benefits | 0 | 0 | |||
Total | (403,550) | (69,308) | |||
Less: Income tax expense (benefit) related to other comprehensive income (loss) | (84,746) | (14,554) | |||
Other comprehensive income (loss), net of tax | (318,804) | (54,754) | |||
Comprehensive income (loss) | (267,525) | 4,753 | |||
Effect of Change | |||||
REVENUES | |||||
Premiums | (1,193) | (1,196) | |||
Policy charges and fee income | (27,682) | (17,619) | |||
Realized investment gains (losses), net | 419 | (1,453) | |||
Change in value of market risk benefits, net of related hedging gain (loss) | (142,046) | 39,670 | |||
TOTAL REVENUES | (170,502) | 19,402 | |||
BENEFITS AND EXPENSES | |||||
Policyholders' benefits | (26,905) | (7,737) | |||
Change in estimates of liability for future policy benefits | 16,631 | 2,819 | |||
Amortization of deferred policy acquisition costs | (5,222) | (6,005) | |||
General, administrative and other expenses | (1,705) | (1,467) | |||
TOTAL BENEFITS AND EXPENSES | (17,201) | (12,390) | |||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | (153,301) | 31,792 | |||
Income tax expense (benefit) | (32,193) | 6,676 | |||
NET INCOME (LOSS) | (121,108) | 25,116 | |||
Other comprehensive income (loss), before tax: | |||||
Net unrealized investment gains (losses) | 26,729 | 1,788 | |||
Interest rate remeasurement of future policy benefits | 59,867 | 13,404 | |||
Gain (loss) from changes in non-performance risk on market risk benefits | 142,046 | (39,669) | |||
Total | 228,642 | (24,477) | |||
Less: Income tax expense (benefit) related to other comprehensive income (loss) | 48,015 | (5,140) | |||
Other comprehensive income (loss), net of tax | 180,627 | (19,337) | |||
Comprehensive income (loss) | $ 59,519 | $ 5,779 | |||
[1]Amounts for the years ended December 31, 2022 and 2021 were adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[2]Amounts for the years ended December 31, 2022 and 2021 were adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Business and Basic of Presentat
Business and Basic of Presentation (Summary Of Adoption Of New Guidance On Unaudited Interim Consolidated Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net income (loss) | $ (69,829) | [1] | $ 84,623 | [1] | $ 48,371 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||
Policy charges and fee income | (3,182) | [1] | 6,705 | [1] | (24,935) | |
Realized investment (gains) losses, net | (13,835) | [2] | (515) | [1] | (1,871) | |
Change in value of market risk benefits, net of related hedging (gains) losses | 142,046 | [1] | (39,670) | [1] | 0 | |
Change in: | ||||||
Future policy benefits and other insurance liabilities | 422,975 | [1] | 315,782 | [1] | 289,417 | |
Reinsurance recoverables | (365,401) | [1] | (116,031) | [1] | (272,450) | |
Deferred policy acquisition costs | (43,130) | [1] | (64,526) | [1] | (58,425) | |
Income taxes | (8,362) | [1] | 4,550 | [1] | (8,215) | |
Other, net | [3] | (102,980) | [1] | (123,099) | [1] | (9,467) |
Cash flows from (used in) operating activities | 10,784 | 130,538 | $ 1,550 | |||
As Previously Reported | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net income (loss) | 51,279 | 59,507 | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||
Policy charges and fee income | (19,960) | (21,724) | ||||
Realized investment (gains) losses, net | (13,416) | (1,968) | ||||
Change in value of market risk benefits, net of related hedging (gains) losses | 0 | 0 | ||||
Change in: | ||||||
Future policy benefits and other insurance liabilities | 222,224 | 294,654 | ||||
Reinsurance recoverables | (268,022) | (209,431) | ||||
Deferred policy acquisition costs | (38,058) | (58,421) | ||||
Income taxes | 23,831 | (2,127) | ||||
Other, net | 424 | 7,329 | ||||
Cash flows from (used in) operating activities | 10,784 | 130,538 | ||||
Effect of Change | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net income (loss) | (121,108) | 25,116 | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||
Policy charges and fee income | 16,778 | 28,429 | ||||
Realized investment (gains) losses, net | (419) | 1,453 | ||||
Change in value of market risk benefits, net of related hedging (gains) losses | 142,046 | (39,670) | ||||
Change in: | ||||||
Future policy benefits and other insurance liabilities | 200,751 | 21,128 | ||||
Reinsurance recoverables | (97,379) | 93,400 | ||||
Deferred policy acquisition costs | (5,072) | (6,105) | ||||
Income taxes | (32,193) | 6,677 | ||||
Other, net | (103,404) | (130,428) | ||||
Cash flows from (used in) operating activities | $ 0 | $ 0 | ||||
[1]Amounts for the years ended December 31, 2022 and 2021 were adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[2]Amounts for the years ended December 31, 2022 and 2021 were adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[3]Prior periods have been reclassified to conform to the current period presentation. |
Business and Basis of Present_6
Business and Basis of Presentation (Transition Adjustment Roll Forward Of Retained Earnings) (Details) - Retained Earnings $ in Thousands | Jan. 01, 2021 USD ($) |
Retained Earnings Transition Adjustment [Roll Forward] | |
Balance after-tax, after transition | $ 270,639 |
As Previously Reported | |
Retained Earnings Transition Adjustment [Roll Forward] | |
Balance after-tax, prior to transition | 328,450 |
Effect of Change | |
Retained Earnings Transition Adjustment [Roll Forward] | |
Reclassification of market risk benefits non-performance risk to accumulated other comprehensive income | (60,792) |
Updates to certain universal life contract liabilities | (20,108) |
Other | 7,722 |
Total pre-tax adjustments | (73,178) |
Tax impacts | $ 15,367 |
Business and Basis of Present_7
Business and Basis of Presentation (Transition Adjustment Roll Forward Of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jan. 01, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Accumulated Other Comprehensive Income Transition Adjustment [Roll Forward] | |||||
Beginning Balance | [1] | $ 101,987 | |||
Ending Balance | [1] | (36,190) | $ 101,987 | ||
Accumulated Other Comprehensive Income | |||||
Accumulated Other Comprehensive Income Transition Adjustment [Roll Forward] | |||||
Beginning Balance | $ 185,407 | 101,987 | 185,407 | $ 85,635 | |
Ending Balance | 176,078 | (36,190) | 101,987 | 185,407 | |
As Previously Reported | |||||
Accumulated Other Comprehensive Income Transition Adjustment [Roll Forward] | |||||
Beginning Balance | 130,653 | ||||
Ending Balance | (188,151) | 130,653 | |||
As Previously Reported | Accumulated Other Comprehensive Income | |||||
Accumulated Other Comprehensive Income Transition Adjustment [Roll Forward] | |||||
Beginning Balance | 185,407 | 185,407 | |||
Ending Balance | $ 185,407 | ||||
Effect of Change | |||||
Accumulated Other Comprehensive Income Transition Adjustment [Roll Forward] | |||||
Beginning Balance | (28,666) | ||||
Ending Balance | $ 151,961 | $ (28,666) | |||
Effect of Change | Accumulated Other Comprehensive Income | |||||
Accumulated Other Comprehensive Income Transition Adjustment [Roll Forward] | |||||
Interest rate remeasurement of future policy benefits | (57,440) | ||||
Reclassification of market risk benefits non-performance risk to accumulated other comprehensive income | 60,792 | ||||
Unwinding amounts related to unrealized investment gains and losses | (15,161) | ||||
Total pre-tax adjustments | (11,809) | ||||
Tax impacts | $ 2,480 | ||||
[1]Amounts adjusted for the implementation of Accounting Standards Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Business and Basis of Present_8
Business and Basis of Presentation (Schedule of Deferred Policy Acquisition Costs) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Accounting Pronouncements and Change in Accounting Principle [Line Items] | |||||||
Deferred policy acquisition costs | $ 351,874 | [1] | $ 308,744 | [1] | $ 244,218 | $ 224,425 | $ 178,813 |
As Previously Reported | |||||||
Accounting Pronouncements and Change in Accounting Principle [Line Items] | |||||||
Deferred policy acquisition costs | 364,494 | 290,299 | 224,425 | ||||
Effect of Change | |||||||
Accounting Pronouncements and Change in Accounting Principle [Line Items] | |||||||
Deferred policy acquisition costs | (12,620) | 18,445 | 21,714 | ||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||||
Other | (1,921) | ||||||
Term Life | |||||||
Accounting Pronouncements and Change in Accounting Principle [Line Items] | |||||||
Deferred policy acquisition costs | 70,213 | 62,091 | 51,527 | ||||
Term Life | As Previously Reported | |||||||
Accounting Pronouncements and Change in Accounting Principle [Line Items] | |||||||
Deferred policy acquisition costs | 51,526 | ||||||
Term Life | Effect of Change | |||||||
Accounting Pronouncements and Change in Accounting Principle [Line Items] | |||||||
Deferred policy acquisition costs | 0 | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||||
Other | 1 | ||||||
Variable / Universal Life | |||||||
Accounting Pronouncements and Change in Accounting Principle [Line Items] | |||||||
Deferred policy acquisition costs | $ 281,661 | $ 246,653 | 192,691 | ||||
Variable / Universal Life | As Previously Reported | |||||||
Accounting Pronouncements and Change in Accounting Principle [Line Items] | |||||||
Deferred policy acquisition costs | $ 172,899 | ||||||
Variable / Universal Life | Effect of Change | |||||||
Accounting Pronouncements and Change in Accounting Principle [Line Items] | |||||||
Deferred policy acquisition costs | 21,714 | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||||
Other | $ (1,922) | ||||||
[1]Amounts adjusted for the implementation of Accounting Standards Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Business and Basis of Present_9
Business and Basis of Presentation (Schedule of Deferred Reinsurance) (Details) - Variable Annuities - Deferred Reinsurance Losses - USD ($) $ in Thousands | Jan. 01, 2021 | Dec. 31, 2020 |
Accounting Pronouncements and Change in Accounting Principle [Line Items] | ||
Balance | $ 20,632 | |
As Previously Reported | ||
Accounting Pronouncements and Change in Accounting Principle [Line Items] | ||
Balance | $ 15,209 | |
Unwinding amounts related to unrealized investment gains and losses | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||
Cash flow change | 1,187 | |
Effect of change in reserve basis to market risk benefits | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||
Cash flow change | $ 4,236 |
Business and Basis of Presen_10
Business and Basis of Presentation (Liability for Future Policy Benefit-Benefits Reserve) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
Benefit Reserves | ||||
Accounting Pronouncements and Change in Accounting Principle [Line Items] | ||||
Balance | $ 1,065,256 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance | 1,468,516 | |||
Less: Reinsurance recoverable | 1,282,143 | |||
Balance after reinsurance recoverable, end of period, post-flooring | 186,373 | |||
As Previously Reported | Benefit Reserves | ||||
Accounting Pronouncements and Change in Accounting Principle [Line Items] | ||||
Balance | $ 1,065,913 | |||
Changes in cash flow assumptions and other activity | Benefit Reserves | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Cash flow change | (657) | |||
Cumulative changes in discount rate assumptions | Benefit Reserves | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Cash flow change | 403,260 | |||
Term Life | Benefit Reserves | ||||
Accounting Pronouncements and Change in Accounting Principle [Line Items] | ||||
Balance | 1,049,475 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance | 1,450,547 | |||
Less: Reinsurance recoverable | 1,264,199 | |||
Balance after reinsurance recoverable, end of period, post-flooring | 186,348 | |||
Term Life | As Previously Reported | Benefit Reserves | ||||
Accounting Pronouncements and Change in Accounting Principle [Line Items] | ||||
Balance | 1,049,445 | |||
Term Life | Changes in cash flow assumptions and other activity | Benefit Reserves | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Cash flow change | 30 | |||
Term Life | Cumulative changes in discount rate assumptions | Benefit Reserves | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Cash flow change | 401,072 | |||
Fixed Annuities | ||||
Accounting Pronouncements and Change in Accounting Principle [Line Items] | ||||
Balance | $ 18,359 | $ 17,855 | 15,781 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance | 16,460 | 19,314 | 17,969 | |
Less: Reinsurance recoverable | 16,460 | 19,314 | ||
Balance after reinsurance recoverable, end of period, post-flooring | $ 0 | $ 0 | ||
Fixed Annuities | Benefit Reserves | ||||
Accounting Pronouncements and Change in Accounting Principle [Line Items] | ||||
Balance | 15,781 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance | 17,969 | |||
Less: Reinsurance recoverable | 17,944 | |||
Balance after reinsurance recoverable, end of period, post-flooring | 25 | |||
Fixed Annuities | As Previously Reported | Benefit Reserves | ||||
Accounting Pronouncements and Change in Accounting Principle [Line Items] | ||||
Balance | $ 16,468 | |||
Fixed Annuities | Changes in cash flow assumptions and other activity | Benefit Reserves | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Cash flow change | (687) | |||
Fixed Annuities | Cumulative changes in discount rate assumptions | Benefit Reserves | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Cash flow change | $ 2,188 |
Business and Basis of Presen_11
Business and Basis of Presentation (Liability for Future Policy Benefit-Deferred Profit Liability) (Details) - Fixed Annuities - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
Accounting Pronouncements and Change in Accounting Principle [Line Items] | ||||
Balance | $ 16,460 | $ 19,314 | $ 17,969 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Less: Reinsurance recoverable | 16,460 | 19,314 | ||
Balance after reinsurance recoverable, end of period, post-flooring | $ 0 | $ 0 | ||
Deferred Profit Liaibility | ||||
Accounting Pronouncements and Change in Accounting Principle [Line Items] | ||||
Balance | $ 984 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Less: Reinsurance recoverable | 984 | |||
Balance after reinsurance recoverable, end of period, post-flooring | 0 | |||
Deferred Profit Liaibility | As Previously Reported | ||||
Accounting Pronouncements and Change in Accounting Principle [Line Items] | ||||
Balance | $ 102 | |||
Deferred Profit Liaibility | Changes in benefit reserves | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Changes in benefit reserves | $ 882 |
Business and Basis of Presen_12
Business and Basis of Presentation (Additional Insurance Reserves) (Details) - Additional Insurance Reserves - USD ($) $ in Thousands | Jan. 01, 2021 | Dec. 31, 2020 |
Liability for Future Policy Benefit, Activity [Line Items] | ||
Balance | $ 642,514 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||
Balance prior to transition, excluding amounts related to unrealized investment gains and losses | 547,183 | |
Liability For Future Policy Benefit, Expected Future Policy Benefit, Before Reinsurance, After Discount Rate Change, Excluding Amounts Related To Unrealized Investment Gains And Losses | 547,183 | |
Amounts related to unrealized investment gains and losses after transition | 95,331 | |
Less: Reinsurance recoverable | 613,009 | |
Balance after reinsurance recoverable, end of period, post-flooring | 29,505 | |
As Previously Reported | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Balance | $ 538,245 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||
Balance prior to transition, excluding amounts related to unrealized investment gains and losses | 427,192 | |
Liability For Future Policy Benefit, Expected Future Policy Benefit, Before Reinsurance, After Discount Rate Change, Excluding Amounts Related To Unrealized Investment Gains And Losses | 427,192 | |
Unwinding amounts related to unrealized investment gains and losses | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||
Cash flow change | (111,053) | |
Reclassification of future policy benefits additional insurance reserves to market risk benefits | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||
Cash flow change | (22,735) | |
Updates to certain universal life contract liabilities | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||
Cash flow change | 142,726 | |
Variable / Universal Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Balance | 642,514 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||
Balance prior to transition, excluding amounts related to unrealized investment gains and losses | 547,183 | |
Liability For Future Policy Benefit, Expected Future Policy Benefit, Before Reinsurance, After Discount Rate Change, Excluding Amounts Related To Unrealized Investment Gains And Losses | 547,183 | |
Amounts related to unrealized investment gains and losses after transition | 95,331 | |
Less: Reinsurance recoverable | 613,009 | |
Balance after reinsurance recoverable, end of period, post-flooring | 29,505 | |
Variable / Universal Life | As Previously Reported | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Balance | 513,812 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||
Balance prior to transition, excluding amounts related to unrealized investment gains and losses | 404,457 | |
Liability For Future Policy Benefit, Expected Future Policy Benefit, Before Reinsurance, After Discount Rate Change, Excluding Amounts Related To Unrealized Investment Gains And Losses | 404,457 | |
Variable / Universal Life | Unwinding amounts related to unrealized investment gains and losses | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||
Cash flow change | (109,355) | |
Variable / Universal Life | Reclassification of future policy benefits additional insurance reserves to market risk benefits | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||
Cash flow change | 0 | |
Variable / Universal Life | Updates to certain universal life contract liabilities | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||
Cash flow change | 142,726 | |
Variable Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Balance | 0 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||
Balance prior to transition, excluding amounts related to unrealized investment gains and losses | 0 | |
Liability For Future Policy Benefit, Expected Future Policy Benefit, Before Reinsurance, After Discount Rate Change, Excluding Amounts Related To Unrealized Investment Gains And Losses | 0 | |
Amounts related to unrealized investment gains and losses after transition | 0 | |
Less: Reinsurance recoverable | 0 | |
Balance after reinsurance recoverable, end of period, post-flooring | 0 | |
Variable Annuities | As Previously Reported | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Balance | $ 24,433 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||
Balance prior to transition, excluding amounts related to unrealized investment gains and losses | 22,735 | |
Liability For Future Policy Benefit, Expected Future Policy Benefit, Before Reinsurance, After Discount Rate Change, Excluding Amounts Related To Unrealized Investment Gains And Losses | 22,735 | |
Variable Annuities | Unwinding amounts related to unrealized investment gains and losses | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||
Cash flow change | (1,698) | |
Variable Annuities | Reclassification of future policy benefits additional insurance reserves to market risk benefits | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||
Cash flow change | (22,735) | |
Variable Annuities | Updates to certain universal life contract liabilities | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||
Cash flow change | $ 0 |
Business and Basis of Presen_13
Business and Basis of Presentation (Unearned Revenue Reserves) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance | $ 827,478 | $ 703,968 | $ 642,514 | |
Unwinding amounts related to unrealized investment gains and losses and other activity | (39,475) | 8,089 | ||
Less: Reinsurance recoverable | 793,577 | 666,813 | ||
Balance after transition, net of reinsurance recoverable | $ 33,901 | $ 37,155 | ||
Variable / Universal Life | Policyholder Contract Deposit | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance | $ 186,583 | |||
Less: Reinsurance recoverable | 45,019 | |||
Balance after transition, net of reinsurance recoverable | 141,564 | |||
Variable / Universal Life | As Previously Reported | Policyholder Contract Deposit | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance | $ 94,480 | |||
Variable / Universal Life | Changes in benefit reserves | Policyholder Contract Deposit | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Unwinding amounts related to unrealized investment gains and losses and other activity | $ 92,103 |
Business and Basis of Presen_14
Business and Basis of Presentation (Market Risk Benefit, Activity) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
Variable Annuities | ||||
Market Risk Benefit [Roll Forward] | ||||
Net liability | $ 0 | $ 0 | $ 0 | $ 1,195,470 |
Variable Annuities | Additional insurance reserves to be reclassed to market risk benefits, prior to transition, excluding amounts related to unrealized investment gains and losses | ||||
Market Risk Benefit [Roll Forward] | ||||
Net liability | 22,735 | |||
Variable Annuities | As Previously Reported | ||||
Market Risk Benefit [Roll Forward] | ||||
Net liability | 1,218,205 | |||
Variable Annuities | Change in reserve basis to market risk benefits framework | ||||
Market Risk Benefit [Roll Forward] | ||||
Net liability | (12,634) | |||
Variable Annuities | Market risk benefits after transition, at current non-performance risk value | ||||
Market Risk Benefit [Roll Forward] | ||||
Net liability | 1,205,571 | |||
Variable Annuities | Less: Reinsured market risk benefits | ||||
Market Risk Benefit [Roll Forward] | ||||
Net liability | 1,205,571 | |||
Variable Annuities | Cumulative change in non-performance risk | ||||
Market Risk Benefit [Roll Forward] | ||||
Net liability | 60,792 | |||
Individual Variable | Market risk benefits after transition, at current non-performance risk value | Retirement Strategies | ||||
Market Risk Benefit [Roll Forward] | ||||
Net liability | 1,205,571 | |||
Individual Variable | Market risk benefits after transition, at contract inception non-performance risk value | Retirement Strategies | ||||
Market Risk Benefit [Roll Forward] | ||||
Net liability | $ 1,266,363 |
Business and Basis of Presen_15
Business and Basis of Presentation (Cost Of Reinsurance) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance | $ 827,478 | $ 703,968 | $ 642,514 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Unwinding amounts related to unrealized investment gains and losses and other activity | (39,475) | 8,089 | ||
Amounts related to unrealized investment gains and losses after transition | 793,577 | 666,813 | ||
Balance after transition | $ 33,901 | $ 37,155 | ||
Variable / Universal Life | Other Liabilities | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance | $ 65,201 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Amounts related to unrealized investment gains and losses after transition | 27,620 | |||
Balance after transition | 92,821 | |||
Variable / Universal Life | As Previously Reported | Other Liabilities | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance | $ 85,773 | |||
Variable / Universal Life | Unwinding amounts related to unrealized investment gains and losses | Other Liabilities | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Unwinding amounts related to unrealized investment gains and losses and other activity | (34,617) | |||
Variable / Universal Life | Balance prior to transition, excluding amounts related to unrealized investment gains and losses | Other Liabilities | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance | 51,156 | |||
Variable / Universal Life | Impact from updates to certain universal life contract liabilities | Other Liabilities | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Unwinding amounts related to unrealized investment gains and losses and other activity | $ 14,045 |
Significant Accounting Polici_3
Significant Accounting Policies and Pronouncements (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Jan. 01, 2023 | Dec. 31, 2021 | Jan. 01, 2021 | Jan. 01, 2020 | ||
Accounting Policies [Abstract] | ||||||
Commercial mortgage and other loans, Loan-to-value ratios (greater than) | 100% | |||||
Commercial mortgage and other loans, Loan-to-value ratios (less than) | 100% | |||||
Commercial mortgage and other loans, Debt service coverage ratios (less than) | 1 | |||||
Commercial mortgage and other loans, Debt service coverage ratios (greater than) | 1 | |||||
Securities Loaned Transactions Collateral Fair Value of Domestic Securities | 102% | |||||
Securities Loaned Transactions Collateral Fair Value of Foreign Securities | 105% | |||||
Uncertain tax positions measurement percentage (greater than) | 50% | |||||
Accounting Pronouncements and Change in Accounting Principle [Line Items] | ||||||
Total equity | $ 1,026,655 | $ 909,351 | ||||
Retained earnings | [1] | $ 285,433 | 355,262 | |||
Minimum | ||||||
Accounting Pronouncements and Change in Accounting Principle [Line Items] | ||||||
Repurchase and Resale Agreements, Collateral, Percentage | 95% | |||||
Cumulative effect adjustment to opening balance | ASU 2016-13 | ||||||
Accounting Pronouncements and Change in Accounting Principle [Line Items] | ||||||
Retained earnings | $ 200 | |||||
Effect of Change | ||||||
Accounting Pronouncements and Change in Accounting Principle [Line Items] | ||||||
Total equity | $ (1,842) | $ (2,000) | (61,361) | $ (67,000) | ||
Retained earnings | $ (153,803) | $ (32,695) | ||||
[1]Amounts adjusted for the implementation of Accounting Standards Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Investments (Fixed Maturities S
Investments (Fixed Maturities Securities Excluding Investments Classified as Trading) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,990,718 | $ 1,762,211 |
Allowance for Credit Loss | 363 | 1,558 |
Fair Value | 1,719,488 | 1,935,598 |
Fixed maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,990,718 | 1,762,211 |
Gross Unrealized Gains | 3,421 | 181,663 |
Gross Unrealized Losses | 274,288 | 6,718 |
Allowance for Credit Loss | 363 | 1,558 |
Fair Value | 1,719,488 | 1,935,598 |
Fixed maturities | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 62,210 | 12,832 |
Gross Unrealized Gains | 0 | 673 |
Gross Unrealized Losses | 1,074 | 0 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 61,136 | 13,505 |
Fixed maturities | Obligations of U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 165,109 | 161,812 |
Gross Unrealized Gains | 421 | 17,198 |
Gross Unrealized Losses | 6,315 | 0 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 159,215 | 179,010 |
Fixed maturities | Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 87,853 | 93,062 |
Gross Unrealized Gains | 1 | 8,731 |
Gross Unrealized Losses | 15,891 | 1,002 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 71,963 | 100,791 |
Fixed maturities | U.S. public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,062,342 | 908,129 |
Gross Unrealized Gains | 1,943 | 117,450 |
Gross Unrealized Losses | 180,880 | 2,994 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 883,405 | 1,022,585 |
Fixed maturities | U.S. private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 186,123 | 190,157 |
Gross Unrealized Gains | 141 | 13,128 |
Gross Unrealized Losses | 13,465 | 52 |
Allowance for Credit Loss | 358 | 1,558 |
Fair Value | 172,441 | 201,675 |
Fixed maturities | Foreign public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 138,717 | 105,346 |
Gross Unrealized Gains | 28 | 8,481 |
Gross Unrealized Losses | 25,783 | 644 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 112,962 | 113,183 |
Fixed maturities | Foreign private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 133,074 | 138,753 |
Gross Unrealized Gains | 523 | 6,620 |
Gross Unrealized Losses | 21,562 | 2,015 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 112,035 | 143,358 |
Fixed maturities | Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 18,358 | 16,685 |
Gross Unrealized Gains | 272 | 596 |
Gross Unrealized Losses | 256 | 4 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 18,374 | 17,277 |
Fixed maturities | Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 124,486 | 132,961 |
Gross Unrealized Gains | 0 | 8,401 |
Gross Unrealized Losses | 8,595 | 7 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 115,891 | 141,355 |
Fixed maturities | Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 12,446 | 2,474 |
Gross Unrealized Gains | 92 | 385 |
Gross Unrealized Losses | 467 | 0 |
Allowance for Credit Loss | 5 | 0 |
Fair Value | $ 12,066 | $ 2,859 |
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 | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | $ 1,334,484 | $ 126,875 |
Less than Twelve Months, Gross Unrealized Losses | 169,290 | 3,009 |
Twelve Months or More, Fair Value | 270,371 | 63,675 |
Twelve Months or More, Gross Unrealized Losses | 104,998 | 3,709 |
Total, Fair Value | 1,604,855 | 190,550 |
Total, Gross Unrealized Losses | 274,288 | 6,718 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 61,136 | |
Less than Twelve Months, Gross Unrealized Losses | 1,074 | |
Twelve Months or More, Fair Value | 0 | |
Twelve Months or More, Gross Unrealized Losses | 0 | |
Total, Fair Value | 61,136 | |
Total, Gross Unrealized Losses | 1,074 | |
Obligations of U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 113,693 | |
Less than Twelve Months, Gross Unrealized Losses | 6,315 | |
Twelve Months or More, Fair Value | 0 | |
Twelve Months or More, Gross Unrealized Losses | 0 | |
Total, Fair Value | 113,693 | |
Total, Gross Unrealized Losses | 6,315 | |
Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 46,826 | 17,306 |
Less than Twelve Months, Gross Unrealized Losses | 5,741 | 928 |
Twelve Months or More, Fair Value | 24,746 | 2,072 |
Twelve Months or More, Gross Unrealized Losses | 10,150 | 74 |
Total, Fair Value | 71,572 | 19,378 |
Total, Gross Unrealized Losses | 15,891 | 1,002 |
U.S. public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 704,906 | 72,360 |
Less than Twelve Months, Gross Unrealized Losses | 111,763 | 1,255 |
Twelve Months or More, Fair Value | 155,138 | 42,496 |
Twelve Months or More, Gross Unrealized Losses | 69,117 | 1,739 |
Total, Fair Value | 860,044 | 114,856 |
Total, Gross Unrealized Losses | 180,880 | 2,994 |
U.S. private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 149,670 | 2,349 |
Less than Twelve Months, Gross Unrealized Losses | 11,857 | 27 |
Twelve Months or More, Fair Value | 9,273 | 979 |
Twelve Months or More, Gross Unrealized Losses | 1,608 | 25 |
Total, Fair Value | 158,943 | 3,328 |
Total, Gross Unrealized Losses | 13,465 | 52 |
Foreign public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 69,310 | 9,439 |
Less than Twelve Months, Gross Unrealized Losses | 11,016 | 192 |
Twelve Months or More, Fair Value | 38,996 | 6,726 |
Twelve Months or More, Gross Unrealized Losses | 14,767 | 452 |
Total, Fair Value | 108,306 | 16,165 |
Total, Gross Unrealized Losses | 25,783 | 644 |
Foreign private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 62,044 | 18,912 |
Less than Twelve Months, Gross Unrealized Losses | 12,499 | 596 |
Twelve Months or More, Fair Value | 33,858 | 11,402 |
Twelve Months or More, Gross Unrealized Losses | 9,063 | 1,419 |
Total, Fair Value | 95,902 | 30,314 |
Total, Gross Unrealized Losses | 21,562 | 2,015 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 5,570 | 3,426 |
Less than Twelve Months, Gross Unrealized Losses | 160 | 4 |
Twelve Months or More, Fair Value | 3,289 | 0 |
Twelve Months or More, Gross Unrealized Losses | 96 | 0 |
Total, Fair Value | 8,859 | 3,426 |
Total, Gross Unrealized Losses | 256 | 4 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 110,820 | 3,083 |
Less than Twelve Months, Gross Unrealized Losses | 8,398 | 7 |
Twelve Months or More, Fair Value | 5,071 | 0 |
Twelve Months or More, Gross Unrealized Losses | 197 | 0 |
Total, Fair Value | 115,891 | 3,083 |
Total, Gross Unrealized Losses | 8,595 | $ 7 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 10,509 | |
Less than Twelve Months, Gross Unrealized Losses | 467 | |
Twelve Months or More, Fair Value | 0 | |
Twelve Months or More, Gross Unrealized Losses | 0 | |
Total, Fair Value | 10,509 | |
Total, Gross Unrealized Losses | $ 467 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Due in one year or less | $ 40,526 | |
Due after one year through five years | 240,259 | |
Due after five years through ten years | 154,492 | |
Due after ten years | 1,400,151 | |
Amortized Cost | 1,990,718 | $ 1,762,211 |
Fair value | ||
Due in one year or less | 39,539 | |
Due after one year through five years | 226,070 | |
Due after five years through ten years | 140,664 | |
Due after ten years | 1,166,884 | |
Fair Value | 1,719,488 | $ 1,935,598 |
Asset-backed securities | ||
Amortized Cost | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 18,358 | |
Fair value | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 18,374 | |
Commercial mortgage-backed securities | ||
Amortized Cost | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 124,486 | |
Fair value | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 115,891 | |
Residential mortgage-backed securities | ||
Amortized Cost | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 12,446 | |
Fair value | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | $ 12,066 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Investments [Line Items] | |||
Fixed Maturity Purchased with Credit Deterioration | $ 0 | $ 0 | |
Commercial Mortgage and other loans with credit deterioration | 0 | 0 | |
Loans acquired | 3,400 | 0 | |
Loans sold | 3,800 | 0 | |
Accrued Investment Income Write Down | 0 | 100 | |
Fixed maturities, available-for-sale | 1,719,488 | 1,935,598 | |
Securities Sold under Agreements to Repurchase | 0 | 0 | |
Fair value of collateral that could be sold or repledged | $ 0 | $ 0 | |
Commercial mortgage loans, Percentage | 100% | 100% | |
Fixed maturities | |||
Schedule of Investments [Line Items] | |||
Gross unrealized losses of twelve months or more concentrated in various sectors | $ 105,000 | $ 3,700 | |
Fixed maturities | |||
Schedule of Investments [Line Items] | |||
Gross Unrealized Loss | 274,288 | 6,718 | |
Gross unrealized losses of twelve months or more concentrated in various sectors | 104,998 | 3,709 | |
Fixed maturities, available-for-sale | 1,719,488 | 1,935,598 | |
Assets Deposited With Governmental Authorities | 0 | 500 | |
Other Income | Fixed maturities | Trading | |||
Schedule of Investments [Line Items] | |||
Unrealized Gain (Loss) on Investments | (3,400) | (2,000) | $ 2,100 |
Other Income | Equity securities | |||
Schedule of Investments [Line Items] | |||
Unrealized Gain (Loss) on Investments | (1,500) | (300) | $ (800) |
Carrying value of non-income producing assets | |||
Schedule of Investments [Line Items] | |||
Fixed maturities, available-for-sale | $ 0 | ||
Florida | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, Percentage | 12% | ||
New York | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, Percentage | 10% | ||
Oregon | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, Percentage | 9% | ||
Europe | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, Percentage | 3% | ||
Mexico | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, Percentage | 3% | ||
NAIC High or Highest Quality Rating | Fixed maturities | |||
Schedule of Investments [Line Items] | |||
Gross Unrealized Loss | $ 269,600 | 5,300 | |
NAIC Other Than High or Highest Quality Rating | Fixed maturities | |||
Schedule of Investments [Line Items] | |||
Gross Unrealized Loss | $ 4,700 | $ 1,400 |
Investments (Fixed Maturities_2
Investments (Fixed Maturities Securities Proceeds) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Line Items] | |||
Proceeds from maturities/prepayments | $ 101,647 | $ 101,100 | $ 60,422 |
Fixed maturities | Available-for-sale | |||
Debt Securities, Available-for-sale [Line Items] | |||
Proceeds from sales | 37,605 | 49,835 | 4,085 |
Proceeds from maturities/prepayments | 64,177 | 49,793 | 57,837 |
Gross investment gains from sales and maturities | 224 | 708 | (4) |
Gross investment losses from sales and maturities | (5,451) | (1,024) | (43) |
Write-downs recognized in earnings | 0 | 0 | (625) |
(Addition to) release of allowance for credit losses | 1,195 | (1,558) | 0 |
Noncash or Part Noncash Divestiture, Amount of Consideration Received | $ (100) | $ 1,500 | $ (1,500) |
Investments (Credit Losses Reco
Investments (Credit Losses Recognized In Earnings on Fixed Maturity Securities Held by the Company) (Details) - Fixed maturities - Available-for-sale - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-sale [Line Items] | ||
Balance, beginning of period | $ 1,558 | $ 0 |
Addition (reductions) on securities with previous allowance | (1,199) | |
Additions to allowance for credit losses not previously recorded | 4 | 1,558 |
Balance, end of period | 363 | 1,558 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Balance, beginning of period | 0 | 0 |
Addition (reductions) on securities with previous allowance | 0 | |
Additions to allowance for credit losses not previously recorded | 0 | 0 |
Balance, end of period | 0 | 0 |
Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Balance, beginning of period | 0 | 0 |
Addition (reductions) on securities with previous allowance | 0 | |
Additions to allowance for credit losses not previously recorded | 0 | 0 |
Balance, end of period | 0 | 0 |
U.S. and Foreign Corporate Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Balance, beginning of period | 1,558 | 0 |
Addition (reductions) on securities with previous allowance | (1,200) | |
Additions to allowance for credit losses not previously recorded | 0 | 1,558 |
Balance, end of period | 358 | 1,558 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Balance, beginning of period | 0 | 0 |
Addition (reductions) on securities with previous allowance | 0 | |
Additions to allowance for credit losses not previously recorded | 0 | 0 |
Balance, end of period | 0 | 0 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Balance, beginning of period | 0 | 0 |
Addition (reductions) on securities with previous allowance | 0 | |
Additions to allowance for credit losses not previously recorded | 0 | 0 |
Balance, end of period | 0 | 0 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Balance, beginning of period | 0 | 0 |
Addition (reductions) on securities with previous allowance | 1 | |
Additions to allowance for credit losses not previously recorded | 4 | 0 |
Balance, end of period | $ 5 | $ 0 |
Investments (Commercial Mortgag
Investments (Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 148,587 | $ 115,822 |
Commercial mortgage loans, Percentage | 100% | 100% |
Allowance for Credit Losses | $ (408) | $ (246) |
Total net commercial mortgage and other loans | 148,179 | 115,576 |
Apartments and multi-family | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 62,434 | $ 42,188 |
Commercial mortgage loans, Percentage | 42% | 36.40% |
Hospitality | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 12,996 | $ 13,709 |
Commercial mortgage loans, Percentage | 8.70% | 11.80% |
Industrial | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 17,132 | $ 17,356 |
Commercial mortgage loans, Percentage | 11.50% | 15% |
Office | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 10,568 | $ 16,880 |
Commercial mortgage loans, Percentage | 7.10% | 14.60% |
Other | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 7,767 | $ 7,927 |
Commercial mortgage loans, Percentage | 5.20% | 6.80% |
Retail | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 22,123 | $ 15,511 |
Commercial mortgage loans, Percentage | 14.90% | 13.40% |
Commercial mortgage loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 133,020 | $ 113,571 |
Commercial mortgage loans, Percentage | 89.40% | 98% |
Agricultural property loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 15,567 | $ 2,251 |
Commercial mortgage loans, Percentage | 10.60% | 2% |
Investments (Allowance for Cred
Investments (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance, beginning of year | $ 246 | $ 440 | $ 165 |
Cumulative effect of adoption of ASU 2016-13 | 204 | ||
Addition to (release of) allowance for expected losses | 162 | (194) | 71 |
Total ending balance | 408 | 246 | 440 |
Commercial mortgage loans | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance, beginning of year | 246 | 440 | 164 |
Cumulative effect of adoption of ASU 2016-13 | 204 | ||
Addition to (release of) allowance for expected losses | 159 | (194) | 72 |
Total ending balance | 405 | 246 | 440 |
Agricultural property loans | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance, beginning of year | 0 | 0 | 1 |
Cumulative effect of adoption of ASU 2016-13 | 0 | ||
Addition to (release of) allowance for expected losses | 3 | 0 | (1) |
Total ending balance | $ 3 | $ 0 | $ 0 |
Investments (Credit Quality Ind
Investments (Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 148,587 | $ 115,822 |
Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 35,000 | 2,773 |
One Year Prior | 2,754 | 2,198 |
Two Year Prior | 2,198 | 35,426 |
Three Year Prior | 32,830 | 1,433 |
Four Year Prior | 1,387 | 10,810 |
Prior | 58,851 | 60,931 |
Recording investment gross of allowance for credit losses | 133,020 | 113,571 |
Commercial mortgage loans | ≥ 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 35,000 | 2,773 |
One Year Prior | 2,754 | 2,198 |
Two Year Prior | 2,198 | 30,009 |
Three Year Prior | 27,697 | 1,433 |
Four Year Prior | 1,387 | 5,671 |
Prior | 40,285 | 42,469 |
Recording investment gross of allowance for credit losses | 109,321 | 84,553 |
Commercial mortgage loans | 1.0X to 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 958 |
Prior | 8,809 | 9,186 |
Recording investment gross of allowance for credit losses | 8,809 | 10,144 |
Commercial mortgage loans | Less than 1.0X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 0 | 5,417 |
Three Year Prior | 5,133 | 0 |
Four Year Prior | 0 | 4,181 |
Prior | 9,757 | 9,276 |
Recording investment gross of allowance for credit losses | 14,890 | 18,874 |
Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 13,423 | 1,126 |
One Year Prior | 1,092 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 1,052 | 1,125 |
Recording investment gross of allowance for credit losses | 15,567 | 2,251 |
Agricultural property loans | ≥ 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 13,423 | 1,126 |
One Year Prior | 1,092 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 1,052 | 1,125 |
Recording investment gross of allowance for credit losses | 15,567 | 2,251 |
Agricultural property loans | 1.0X to 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 0 | 0 |
Recording investment gross of allowance for credit losses | 0 | 0 |
Agricultural property loans | Less than 1.0X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 0 | 0 |
Recording investment gross of allowance for credit losses | 0 | 0 |
0% to 59.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 20,000 | 360 |
One Year Prior | 792 | 0 |
Two Year Prior | 0 | 7,203 |
Three Year Prior | 9,993 | 1,433 |
Four Year Prior | 1,387 | 8,836 |
Prior | 48,812 | 50,537 |
Recording investment gross of allowance for credit losses | 80,984 | 68,369 |
0% to 59.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 1,078 | 1,126 |
One Year Prior | 1,092 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 1,052 | 1,125 |
Recording investment gross of allowance for credit losses | 3,222 | 2,251 |
60% to 69.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 15,000 | 2,066 |
One Year Prior | 1,615 | 2,198 |
Two Year Prior | 2,198 | 24,368 |
Three Year Prior | 18,982 | 0 |
Four Year Prior | 0 | 1,016 |
Prior | 1,016 | 8,524 |
Recording investment gross of allowance for credit losses | 38,811 | 38,172 |
60% to 69.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 12,345 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 0 | 0 |
Recording investment gross of allowance for credit losses | 12,345 | 0 |
70% to 79.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 347 |
One Year Prior | 347 | 0 |
Two Year Prior | 0 | 3,855 |
Three Year Prior | 3,855 | 0 |
Four Year Prior | 0 | 0 |
Prior | 7,213 | 1,870 |
Recording investment gross of allowance for credit losses | 11,415 | 6,072 |
70% to 79.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 0 | 0 |
Recording investment gross of allowance for credit losses | 0 | 0 |
80% or greater | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 958 |
Prior | 1,810 | 0 |
Recording investment gross of allowance for credit losses | 1,810 | 958 |
80% or greater | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 0 | 0 |
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 | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Status | $ 0 | $ 0 |
Recording investment gross of allowance for credit losses | 148,587 | 115,822 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 148,587 | 115,822 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
90 Days or More Past Due | Commercial mortgage and other loans | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Interest | 0 | 0 |
Commercial mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Status | 0 | 0 |
Recording investment gross of allowance for credit losses | 133,020 | 113,571 |
Commercial mortgage loans | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 133,020 | 113,571 |
Commercial mortgage loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Commercial mortgage loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Commercial mortgage loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Agricultural Loan | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Status | 0 | 0 |
Recording investment gross of allowance for credit losses | 15,567 | 2,251 |
Agricultural Loan | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 15,567 | 2,251 |
Agricultural Loan | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Agricultural Loan | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Agricultural Loan | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 0 | $ 0 |
Investments (Other Invested Ass
Investments (Other Invested Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Invested Assets [Line Items] | ||
Other invested assets | $ 129,528 | $ 124,327 |
LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 129,528 | 113,087 |
Company’s investment in separate accounts | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 0 | 4,053 |
Derivative instruments | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 0 | 7,187 |
Equity method | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 127,139 | 110,247 |
Equity method | Private equity | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 74,468 | 63,705 |
Equity method | Hedge funds | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 42,472 | 38,216 |
Equity method | Real estate-related | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 10,199 | 8,326 |
Fair Value | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 2,389 | 2,840 |
Fair Value | Private equity | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 279 | 400 |
Fair Value | Hedge funds | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 55 | 66 |
Fair Value | Real estate-related | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | $ 2,055 | $ 2,374 |
Investments (Equity Method Inve
Investments (Equity Method Investments, Statement of Financial Position) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | $ 20,596,445 | $ 25,036,946 |
Total Liabilities | 19,569,790 | 24,127,595 |
Partners' Capital | 1,026,655 | 909,351 |
Total liabilities and partners' capital | 20,596,445 | 25,036,946 |
LP/LLC interests | ||
Schedule of Equity Method Investments [Line Items] | ||
Total liabilities and partners' capital included above | 37,626 | 36,671 |
Equity in LP/LLC interests not included above | 89,513 | 73,576 |
Carrying value | 127,139 | 110,247 |
Equity Method Investment | ||
Schedule of Equity Method Investments [Line Items] | ||
Total Assets | 2,012,092 | 1,950,577 |
Total Liabilities | 0 | 0 |
Partners' Capital | 2,012,092 | 1,950,577 |
Total liabilities and partners' capital | $ 2,012,092 | $ 1,950,577 |
Investments (Equity Method In_2
Investments (Equity Method Investments, Statement of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |||
Total Revenues | $ 51,084 | $ 154,144 | $ 168,120 |
Total Expenses | 0 | 0 | 0 |
Net earnings (losses) | 51,084 | 154,144 | 168,120 |
Earnings in net earnings (losses) included above | 955 | 2,898 | 3,144 |
Equity in net earnings (losses) of LP/LLC interests not included above | 5,836 | 16,814 | 3,858 |
Net income (loss) | $ 6,791 | $ 19,712 | $ 7,002 |
Investments (Accrued Investment
Investments (Accrued Investment Income) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Net Investment Income [Line Items] | ||
Accrued investment income | $ 25,222 | $ 22,539 |
Equity securities | ||
Net Investment Income [Line Items] | ||
Accrued investment income | 1 | 1 |
Commercial mortgage and other loans | ||
Net Investment Income [Line Items] | ||
Accrued investment income | 352 | 301 |
Policy loans | ||
Net Investment Income [Line Items] | ||
Accrued investment income | 5,612 | 5,670 |
Short-term investments and cash equivalents | ||
Net Investment Income [Line Items] | ||
Accrued investment income | 604 | 6 |
Available-for-sale | Fixed maturities | ||
Net Investment Income [Line Items] | ||
Accrued investment income | $ 18,653 | $ 16,561 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | $ 102,325 | $ 104,846 | $ 87,177 |
Less: investment expenses | (3,933) | (4,355) | (4,182) |
Net investment income | 98,392 | 100,491 | 82,995 |
Equity securities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 364 | 363 | 363 |
Commercial mortgage and other loans | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 4,609 | 5,654 | 5,485 |
Policy loans | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 10,427 | 11,414 | 11,597 |
Other invested assets | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 8,873 | 20,660 | 7,509 |
Short-term investments and cash equivalents | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 3,384 | 46 | 431 |
Available-for-sale | Fixed maturities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 73,656 | 65,882 | 61,250 |
Trading | Fixed maturities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | $ 1,012 | $ 827 | $ 542 |
Investments (Realized Investmen
Investments (Realized Investment Gains Losses Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Schedule Of Gain Loss On Investments [Line Items] | |||||
Realized investment gains (losses), net | $ 13,835 | [1] | $ 515 | [2] | $ 1,871 |
Fixed maturities | |||||
Schedule Of Gain Loss On Investments [Line Items] | |||||
Realized investment gains (losses), net | (4,032) | (1,874) | (672) | ||
Commercial mortgage and other loans | |||||
Schedule Of Gain Loss On Investments [Line Items] | |||||
Realized investment gains (losses), net | (153) | 194 | (71) | ||
Other invested assets | |||||
Schedule Of Gain Loss On Investments [Line Items] | |||||
Realized investment gains (losses), net | (51) | 625 | (51) | ||
Derivatives | |||||
Schedule Of Gain Loss On Investments [Line Items] | |||||
Realized investment gains (losses), net | 18,123 | 1,549 | 2,721 | ||
Short-term investments and cash equivalents | |||||
Schedule Of Gain Loss On Investments [Line Items] | |||||
Realized investment gains (losses), net | $ (52) | $ 21 | $ (56) | ||
[1]Amounts for the years ended December 31, 2022 and 2021 were adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[2]Amounts for the years ended December 31, 2022 and 2021 were adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Investments (Net Unrealized Gai
Investments (Net Unrealized Gains Losses on Investments by Asset Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Gain (Loss) on Securities [Line Items] | |||
Net unrealized gains (losses) on investments | $ (256,584) | $ 180,806 | $ 255,724 |
Fixed maturities | Available-for-sale | Without an allowance | |||
Gain (Loss) on Securities [Line Items] | |||
Net unrealized gains (losses) on investments | (270,867) | 174,945 | 258,325 |
Derivatives designated as cash flow hedges | |||
Gain (Loss) on Securities [Line Items] | |||
Net unrealized gains (losses) on investments | 14,102 | 5,407 | (2,998) |
Affiliated notes | |||
Gain (Loss) on Securities [Line Items] | |||
Net unrealized gains (losses) on investments | 59 | 194 | 254 |
Other investments | |||
Gain (Loss) on Securities [Line Items] | |||
Net unrealized gains (losses) on investments | $ 122 | $ 260 | $ 143 |
Derivative Instruments (Gross N
Derivative Instruments (Gross Notional Amount and Fair Value of Derivatives Contracts) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Notional | $ 687,970 | $ 683,871 |
Gross Fair Value Assets | 17,796 | 28,685 |
Gross Fair Value Liabilities | (21,829) | (21,498) |
Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 117,015 | 124,950 |
Gross Fair Value Assets | 14,281 | 4,416 |
Gross Fair Value Liabilities | (516) | (291) |
Derivatives Designated as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Notional | 117,015 | 124,950 |
Gross Fair Value Assets | 14,281 | 4,416 |
Gross Fair Value Liabilities | (516) | (291) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 570,955 | 558,921 |
Gross Fair Value Assets | 3,515 | 24,269 |
Gross Fair Value Liabilities | (21,313) | (21,207) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional | 30,200 | 30,200 |
Gross Fair Value Assets | 0 | 2,757 |
Gross Fair Value Liabilities | (383) | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Default Swaps | ||
Derivative [Line Items] | ||
Notional | 0 | 0 |
Gross Fair Value Assets | 0 | 0 |
Gross Fair Value Liabilities | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Notional | 24,035 | 35,204 |
Gross Fair Value Assets | 2,957 | 2,685 |
Gross Fair Value Liabilities | 0 | (637) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Forwards | ||
Derivative [Line Items] | ||
Notional | 7,520 | 4,667 |
Gross Fair Value Assets | 3 | 66 |
Gross Fair Value Liabilities | (368) | (9) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Options | ||
Derivative [Line Items] | ||
Notional | 509,200 | 488,850 |
Gross Fair Value Assets | 555 | 18,761 |
Gross Fair Value Liabilities | $ (20,562) | $ (20,561) |
Derivative Instruments (Offsett
Derivative Instruments (Offsetting Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Offsetting of Financial Assets, Derivatives | ||
Gross Amounts of Recognized Financial Instruments | $ 17,796 | $ 28,685 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (17,796) | (21,498) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 0 | 7,187 |
Financial Instruments / Collateral | 0 | (7,187) |
Net Amount | 0 | 0 |
Securities purchased under agreements to resell | ||
Gross Amounts of Recognized Financial Instruments | 0 | 0 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Consolidated Statement of Financial Position | 0 | 0 |
Financial Instruments / Collateral | 0 | 0 |
Net Amount | 0 | 0 |
Total Assets | ||
Gross Amounts of Recognized Financial Instruments | 17,796 | 28,685 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (17,796) | (21,498) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 0 | 7,187 |
Financial Instruments / Collateral | 0 | (7,187) |
Net Amount | 0 | 0 |
Offsetting of Financial Liabilities, Derivatives | ||
Gross Amounts of Recognized Financial Instruments | 21,829 | 21,498 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (17,796) | (21,498) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 4,033 | 0 |
Financial Instruments / Collateral | (4,033) | 0 |
Net Amount | 0 | 0 |
Securities sold under agreements to repurchase | ||
Gross Amounts of Recognized Financial Instruments | 0 | 0 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Consolidated Statement of Financial Position | 0 | 0 |
Financial Instruments/Collateral | 0 | 0 |
Net Amount | 0 | 0 |
Total Liabilities | ||
Gross Amounts of Recognized Financial Instruments | 21,829 | 21,498 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (17,796) | (21,498) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 4,033 | 0 |
Financial Instruments/Collateral | (4,033) | 0 |
Net Amount | $ 0 | $ 0 |
Derivative Instruments (Financi
Derivative Instruments (Financial Statement Classification and Impact of Derivatives Used in Qualifying and Non-qualifying Hedge Relationships) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Realized investment gains (losses), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | $ 18,123 | $ 1,549 | $ 2,721 |
Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1,891 | 1,583 | 1,868 |
Other Income (Loss) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1,237 | 470 | (1,041) |
Total reclassifications for the period | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 8,695 | 8,405 | (6,191) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges - Currency/Interest rate | Realized investment gains (losses), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1,802 | 245 | 106 |
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 | 1,891 | 1,583 | 1,868 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges - Currency/Interest rate | Other Income (Loss) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1,202 | 464 | (1,016) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges - Currency/Interest rate | Total reclassifications for the period | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 8,695 | 8,405 | (6,191) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges - Currency/Interest rate | Currency/Interest Rate | Realized investment gains (losses), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1,802 | 245 | 106 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges - Currency/Interest rate | Currency/Interest Rate | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1,891 | 1,583 | 1,868 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges - Currency/Interest rate | Currency/Interest Rate | Other Income (Loss) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1,202 | 464 | (1,016) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges - Currency/Interest rate | Currency/Interest Rate | Total reclassifications for the period | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 8,695 | 8,405 | (6,191) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Realized investment gains (losses), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 16,321 | 1,304 | 2,615 |
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 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Income (Loss) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 35 | 6 | (25) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Total reclassifications for the period | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Realized investment gains (losses), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (2,666) | (815) | 1,919 |
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 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Other Income (Loss) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Total reclassifications for the period | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Realized investment gains (losses), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 493 | 252 | (174) |
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 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Other Income (Loss) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Total reclassifications for the period | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Realized investment gains (losses), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 2,100 | 2,519 | (894) |
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 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Other Income (Loss) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 35 | 6 | (25) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Total reclassifications for the period | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Risk Contract | Realized investment gains (losses), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | (4) | (88) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Risk Contract | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Risk Contract | Other Income (Loss) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Risk Contract | Total reclassifications for the period | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Contract | Realized investment gains (losses), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (13,420) | 8,334 | 4,603 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Contract | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Contract | Other Income (Loss) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Contract | Total reclassifications for the period | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivative Financial Instruments | Realized investment gains (losses), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 29,814 | (8,982) | (2,751) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivative Financial Instruments | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivative Financial Instruments | Other Income (Loss) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivative Financial Instruments | Total reclassifications for the period | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | $ 0 | $ 0 | $ 0 |
Derivative Instruments (Current
Derivative Instruments (Current Period Cash Flow Hedges in AOCI (loss) before Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flow hedges in AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Balance, beginning | $ 5,407 | $ (2,998) | $ 3,193 |
Amount recorded in AOCI | 13,590 | 10,697 | (5,233) |
Amounts reclassified into current period earnings | (4,895) | (2,292) | (958) |
Balance, ending | 14,102 | 5,407 | (2,998) |
Currency/Interest Rate | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Amount recorded in AOCI | 13,590 | 10,697 | (5,233) |
Amounts reclassified into current period earnings | $ (4,895) | $ (2,292) | $ (958) |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months (less than) | $ 1.8 | |
Policyholders' account balances | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net Liability | $ (108) | $ (153) |
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 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | $ 1,719,488 | $ 1,935,598 | |
Market risk benefit assets | [1] | 558,624 | 940,706 |
Fixed maturities, trading | 23,782 | 36,456 | |
Equity securities | 4,358 | 5,937 | |
Other invested assets | 129,528 | 124,327 | |
Receivables from parent and affiliates | 19,348 | 21,438 | |
Separate account assets | 13,926,958 | 17,922,367 | |
TOTAL ASSETS | 20,596,445 | 25,036,946 | |
Market risk benefits liabilities | [1] | 558,624 | 940,706 |
Payables to parent and affiliates | 7,546 | 2,432 | |
Total liabilities | 19,569,790 | 24,127,595 | |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 1,719,488 | 1,935,598 | |
Market risk benefit assets | 558,624 | 940,706 | |
Fixed maturities, trading | 23,782 | 36,456 | |
Equity securities | 4,358 | 5,937 | |
Short-term Investments | 3,000 | 9,997 | |
Cash equivalents | 245,302 | 128,719 | |
Other invested assets | 0 | 7,187 | |
Receivables from parent and affiliates | 688 | 788 | |
Subtotal excluding separate account assets | 2,555,242 | 3,065,388 | |
Separate account assets | 12,014,623 | 15,731,959 | |
TOTAL ASSETS | 14,569,865 | 18,797,347 | |
Market risk benefits liabilities | 558,624 | 940,706 | |
Policyholders' account balances | 108,144 | 153,127 | |
Payables to parent and affiliates | 4,033 | 0 | |
Total liabilities | 670,801 | 1,093,833 | |
Assets Netting | (17,796) | (21,498) | |
Liabilities Netting | (17,796) | (21,498) | |
Netting | 0 | 0 | |
Fair Value, Measurements, Recurring | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets Netting | (17,796) | (21,498) | |
Fair Value, Measurements, Recurring | Payables to parent and affiliates | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liabilities Netting | (17,796) | (21,498) | |
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 | 61,136 | 13,505 | |
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 | 159,215 | 179,010 | |
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 | 71,963 | 100,791 | |
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 | 883,405 | 1,022,585 | |
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 | 172,441 | 201,675 | |
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 | 112,962 | 113,183 | |
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 | 112,035 | 143,358 | |
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 | 18,374 | 17,277 | |
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 | 115,891 | 141,355 | |
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 | 12,066 | 2,859 | |
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 | |
Market risk benefit assets | 0 | 0 | |
Fixed maturities, trading | 0 | 0 | |
Equity securities | 0 | 0 | |
Short-term Investments | 0 | 9,997 | |
Cash equivalents | 0 | 0 | |
Other invested assets | 0 | 0 | |
Receivables from parent and affiliates | 0 | 0 | |
Subtotal excluding separate account assets | 0 | 9,997 | |
Separate account assets | 0 | 0 | |
TOTAL ASSETS | 0 | 9,997 | |
Market risk benefits liabilities | 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 | 1,694,984 | 1,884,005 | |
Market risk benefit assets | 0 | 0 | |
Fixed maturities, trading | 23,782 | 36,456 | |
Equity securities | 67 | 125 | |
Short-term Investments | 3,000 | 0 | |
Cash equivalents | 245,302 | 128,719 | |
Other invested assets | 17,796 | 28,685 | |
Receivables from parent and affiliates | 688 | 788 | |
Subtotal excluding separate account assets | 1,985,619 | 2,078,778 | |
Separate account assets | 12,014,623 | 15,731,959 | |
TOTAL ASSETS | 14,000,242 | 17,810,737 | |
Market risk benefits liabilities | 0 | 0 | |
Policyholders' account balances | 0 | 0 | |
Payables to parent and affiliates | 21,829 | 21,498 | |
Total liabilities | 21,829 | 21,498 | |
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 | 61,136 | 13,505 | |
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 | 159,215 | 179,010 | |
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 | 71,963 | 100,791 | |
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 | 883,405 | 1,022,585 | |
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 | 168,638 | 199,070 | |
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 | 112,962 | 113,183 | |
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 | 112,035 | 121,644 | |
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 | 18,374 | 17,277 | |
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 | 95,190 | 114,081 | |
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 | 12,066 | 2,859 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 24,504 | 51,593 | |
Market risk benefit assets | 558,624 | 940,706 | |
Fixed maturities, trading | 0 | 0 | |
Equity securities | 4,291 | 5,812 | |
Short-term Investments | 0 | 0 | |
Cash equivalents | 0 | 0 | |
Other invested assets | 0 | 0 | |
Receivables from parent and affiliates | 0 | 0 | |
Subtotal excluding separate account assets | 587,419 | 998,111 | |
Separate account assets | 0 | 0 | |
TOTAL ASSETS | 587,419 | 998,111 | |
Market risk benefits liabilities | 558,624 | 940,706 | |
Policyholders' account balances | 108,144 | 153,127 | |
Payables to parent and affiliates | 0 | 0 | |
Total liabilities | 666,768 | 1,093,833 | |
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 | 3,803 | 2,605 | |
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 | 0 | 21,714 | |
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 | 0 | |
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 | 20,701 | 27,274 | |
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 | 2,400 | 2,800 | |
Separate Account Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value investment measured at NAV per share | $ 1,912,000 | $ 2,190,000 | |
[1]Amounts adjusted for the implementation of Accounting Standards Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities (Quantitative Info for Level 3 Inputs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Corporate securities | $ 4,614 | $ 4,660 | |
Market risk benefit assets | [1] | 558,624 | 940,706 |
Market risk benefits liabilities | [1] | 558,624 | 940,706 |
Fair Value, Measurements, Recurring | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Market risk benefit assets | 558,624 | 940,706 | |
Market risk benefits liabilities | 558,624 | 940,706 | |
Policyholders' account balances | $ 108,144 | 153,127 | |
Level 3 | Minimum | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Fair Value Inputs, Policyholder Age | 50 years | ||
Level 3 | Minimum | Market risk benefit liabilities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Mortality rate | 0% | ||
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] | |||
Market risk benefit assets | $ 558,624 | 940,706 | |
Market risk benefits liabilities | 558,624 | 940,706 | |
Policyholders' account balances | $ 108,144 | $ 153,127 | |
Level 3 | Internal | Minimum | Discounted cash flow | Market risk benefit liabilities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Lapse rate | 1% | 1% | |
Spread over SOFR/LIBOR | 0.50% | 0.03% | |
Utilization rate | 38% | 39% | |
Withdrawal rate (greater than maximum) | 77% | 76% | |
Mortality rate | 0% | 0% | |
Equity volatility curve | 18% | 16% | |
Level 3 | Internal | Minimum | Discounted cash flow | Policyholders' account balances | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Lapse rate | 1% | 1% | |
Spread over SOFR/LIBOR | 0.53% | 0.03% | |
Mortality rate | 0% | 0% | |
Equity volatility curve | 18% | 12% | |
Level 3 | Internal | Minimum | Discounted cash flow | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Discount rate | 10.18% | 2.41% | |
Level 3 | Internal | Minimum | Discounted cash flow | Commercial mortgage-backed securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Liquidation premium | 60% | ||
Level 3 | Internal | Minimum | Discounted cash flow | Market risk benefit assets | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Lapse rate | 1% | 1% | |
Spread over SOFR/LIBOR | 0.50% | 0.03% | |
Utilization rate | 38% | 39% | |
Withdrawal rate (greater than maximum) | 77% | 76% | |
Mortality rate | 0% | 0% | |
Equity volatility curve | 18% | 16% | |
Level 3 | Internal | Minimum | Liquidation value | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Liquidation value | 62.58% | ||
Level 3 | Internal | Maximum | Discounted cash flow | Market risk benefit liabilities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Lapse rate | 20% | 20% | |
Spread over SOFR/LIBOR | 2.20% | 1.13% | |
Utilization rate | 95% | 96% | |
Withdrawal rate (greater than maximum) | 100% | 100% | |
Mortality rate | 15% | 15% | |
Equity volatility curve | 26% | 25% | |
Level 3 | Internal | Maximum | Discounted cash flow | Policyholders' account balances | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Lapse rate | 6% | 6% | |
Spread over SOFR/LIBOR | 2.26% | 1.13% | |
Mortality rate | 23% | 23% | |
Equity volatility curve | 28% | 27% | |
Level 3 | Internal | Maximum | Discounted cash flow | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Discount rate | 10.18% | 3.99% | |
Level 3 | Internal | Maximum | Discounted cash flow | Commercial mortgage-backed securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Liquidation premium | 75% | ||
Level 3 | Internal | Maximum | Discounted cash flow | Market risk benefit assets | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Lapse rate | 20% | 20% | |
Spread over SOFR/LIBOR | 2.20% | 1.13% | |
Utilization rate | 95% | 96% | |
Withdrawal rate (greater than maximum) | 100% | 100% | |
Mortality rate | 15% | 15% | |
Equity volatility curve | 26% | 25% | |
Level 3 | Internal | Maximum | Liquidation value | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Liquidation value | 62.58% | ||
Level 3 | Internal | Weighted Average | Discounted cash flow | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Discount rate | 10.18% | 2.62% | |
Level 3 | Internal | Weighted Average | Discounted cash flow | Commercial mortgage-backed securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Liquidation premium | 69.05% | ||
Level 3 | Internal | Weighted Average | Liquidation value | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Liquidation value | 62.58% | ||
Level 3 | Internal | Fair Value, Measurements, Recurring | Market risk benefit liabilities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Market risk benefits liabilities | $ 558,624 | $ 940,706 | |
Level 3 | Internal | Fair Value, Measurements, Recurring | Policyholders' account balances | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Policyholders' account balances | 108,144 | 153,127 | |
Level 3 | Internal | Fair Value, Measurements, Recurring | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Corporate securities | 3,803 | 24,319 | |
Level 3 | Internal | Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Commercial mortgage-backed securities | 20,701 | ||
Level 3 | Internal | Fair Value, Measurements, Recurring | Market risk benefit assets | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Market risk benefit assets | $ 558,624 | $ 940,706 | |
[1]Amounts adjusted for the implementation of Accounting Standards Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities (Changes in Level 3 Assets and Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||
Market risk benefit assets | [1] | $ 558,624 | $ 940,706 | |
Market risk benefits liabilities | [1] | 558,624 | 940,706 | |
Market risk benefit assets | ||||
Unrealized gains (losses) for assets/liabilities still held: | ||||
Market risk benefit assets | 559,000 | 941,000 | ||
Market risk benefit liabilities | ||||
Unrealized gains (losses) for assets/liabilities still held: | ||||
Market risk benefits liabilities | 559,000 | 941,000 | ||
Equity securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 5,812 | 6,095 | ||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | 0 | 0 | ||
Other | 0 | 0 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Fair Value, end of period | 4,291 | 5,812 | $ 6,095 | |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (1,521) | (283) | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (1,522) | (283) | ||
Equity securities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | |
Equity securities | Other Income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (1,521) | (283) | 2,290 | |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (1,522) | (283) | 1,100 | |
Equity securities | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | |
Equity securities | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | |
Reinsurance recoverables | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 326,083 | |||
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 349,277 | |||
Reinsurance recoverables | Other Income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | |||
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | |||
Reinsurance recoverables | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | |||
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | |||
Reinsurance recoverables | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | |||
Future policy benefits | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (326,083) | |||
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (349,277) | |||
Future policy benefits | Other Income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | |||
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | |||
Future policy benefits | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | |||
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | |||
Future policy benefits | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | |||
Policyholders' account balances | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | (153,127) | (153,937) | ||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Issuances | 15,853 | 0 | ||
Settlements | 0 | 9,793 | ||
Other | 0 | 0 | ||
Transfers Into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Fair Value, end of period | (108,144) | (153,127) | (153,937) | |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 29,130 | (8,983) | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 24,845 | (11) | ||
Policyholders' account balances | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 29,130 | (8,983) | (3,200) | |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 24,845 | (11) | 1,307 | |
Policyholders' account balances | Other Income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | |
Policyholders' account balances | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | |
Policyholders' account balances | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | |
Available-for-sale | Fixed maturities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 1,198 | (1,404) | 34 | |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 1,200 | (1,557) | 0 | |
Available-for-sale | Fixed maturities | Other Income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | |
Available-for-sale | Fixed maturities | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (9,008) | (783) | 3,275 | |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (8,966) | (636) | 3,320 | |
Available-for-sale | Fixed maturities | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (23) | (11) | 8 | |
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 | 24,319 | 24,045 | ||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | (632) | (502) | ||
Other | 0 | 0 | ||
Transfers into Level 3 | 0 | 4,106 | ||
Transfers out of Level 3 | (18,219) | 0 | ||
Fair Value, end of period | 3,803 | 24,319 | 24,045 | |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (1,665) | (3,330) | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (1,622) | (3,327) | ||
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 | 27,274 | 0 | ||
Purchases | 320 | 0 | ||
Sales | 0 | (10) | ||
Issuances | 0 | 0 | ||
Settlements | (405) | (113) | ||
Other | 0 | 0 | ||
Transfers into Level 3 | 0 | 26,265 | ||
Transfers out of Level 3 | (320) | 0 | ||
Fair Value, end of period | 20,701 | 27,274 | $ 0 | |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (6,168) | 1,132 | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | $ (6,144) | $ 1,134 | ||
[1]Amounts adjusted for the implementation of Accounting Standards Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities (Financial Instruments where Carrying Amounts and Fair Values May Differ) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Policy loans | $ 212,063 | $ 210,730 |
Cash and cash equivalents | 255,767 | 136,316 |
Accrued investment income | 25,222 | 22,539 |
Reinsurance recoverables | 3,098,248 | 3,175,195 |
Receivables from parent and affiliates | 19,348 | 21,438 |
Fair Value | ||
Assets: | ||
Commercial mortgage and other loans | 141,513 | 121,594 |
Policy loans | 212,063 | 210,730 |
Short-term investments | 4,000 | |
Cash and cash equivalents | 10,465 | 7,597 |
Accrued investment income | 25,222 | 22,539 |
Reinsurance recoverables | 25,127 | 29,931 |
Receivables from parent and affiliates | 18,660 | 20,650 |
Other assets | 3,852 | 3,013 |
Total assets | 440,902 | 416,054 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 217,322 | 243,894 |
Payables to parent and affiliates | 3,513 | 2,432 |
Other liabilities | 51,312 | 49,130 |
Total liabilities | 272,147 | 295,456 |
Carrying Amount | ||
Assets: | ||
Commercial mortgage and other loans | 148,179 | 115,576 |
Policy loans | 212,063 | 210,730 |
Short-term investments | 4,000 | |
Cash and cash equivalents | 10,465 | 7,597 |
Accrued investment income | 25,222 | 22,539 |
Reinsurance recoverables | 27,183 | 28,883 |
Receivables from parent and affiliates | 18,660 | 20,650 |
Other assets | 3,852 | 3,013 |
Total assets | 449,624 | 408,988 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 219,378 | 242,846 |
Payables to parent and affiliates | 3,513 | 2,432 |
Other liabilities | 51,312 | 49,130 |
Total liabilities | 274,203 | 294,408 |
Level 1 | Fair Value | ||
Assets: | ||
Commercial mortgage and other loans | 0 | 0 |
Policy loans | 0 | 0 |
Short-term investments | 4,000 | |
Cash and cash equivalents | 10,465 | 7,597 |
Accrued investment income | 0 | 0 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 14,465 | 7,597 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 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 |
Short-term investments | 0 | |
Cash and cash equivalents | 0 | 0 |
Accrued investment income | 25,222 | 22,539 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 18,660 | 20,650 |
Other assets | 3,852 | 3,013 |
Total assets | 47,734 | 46,202 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 180,576 | 201,955 |
Payables to parent and affiliates | 3,513 | 2,432 |
Other liabilities | 51,312 | 49,130 |
Total liabilities | 235,401 | 253,517 |
Level 3 | Fair Value | ||
Assets: | ||
Commercial mortgage and other loans | 141,513 | 121,594 |
Policy loans | 212,063 | 210,730 |
Short-term investments | 0 | |
Cash and cash equivalents | 0 | 0 |
Accrued investment income | 0 | 0 |
Reinsurance recoverables | 25,127 | 29,931 |
Receivables from parent and affiliates | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 378,703 | 362,255 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 36,746 | 41,939 |
Payables to parent and affiliates | 0 | 0 |
Other liabilities | 0 | 0 |
Total liabilities | $ 36,746 | $ 41,939 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs and Deferred Reinsurance (Balance of and Changes in DAC) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2021 | Dec. 31, 2019 | |||
Deferred Policy Acquisition Cost [Line Items] | |||||||
Balance | $ 351,874 | [1] | $ 308,744 | [1] | $ 224,425 | $ 244,218 | $ 178,813 |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||||
Capitalization | 62,442 | 82,724 | 76,544 | ||||
Amortization Expense | (19,290) | (18,198) | (6,688) | ||||
Amortization-All other | (11,431) | ||||||
Change due to unrealized investment gains and losses | (12,813) | ||||||
Other | (22) | 0 | |||||
Balance, end of period | 351,874 | [1] | 308,744 | [1] | $ 224,425 | ||
Transition adjustments | |||||||
Deferred Policy Acquisition Cost [Line Items] | |||||||
Balance | (12,620) | 18,445 | 21,714 | ||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||||
Balance, end of period | (12,620) | 18,445 | |||||
Transition adjustments | Adjustment for implementation of ASU 2018-12 | |||||||
Deferred Policy Acquisition Cost [Line Items] | |||||||
Balance | 19,793 | ||||||
Term Life | |||||||
Deferred Policy Acquisition Cost [Line Items] | |||||||
Balance | 70,213 | 62,091 | 51,527 | ||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||||
Capitalization | 14,911 | 17,427 | |||||
Amortization Expense | (6,737) | (6,863) | |||||
Other | (52) | 0 | |||||
Balance, end of period | 70,213 | 62,091 | |||||
Term Life | Transition adjustments | |||||||
Deferred Policy Acquisition Cost [Line Items] | |||||||
Balance | 0 | ||||||
Variable / Universal Life | |||||||
Deferred Policy Acquisition Cost [Line Items] | |||||||
Balance | 281,661 | 246,653 | 192,691 | ||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||||
Capitalization | 47,531 | 65,297 | |||||
Amortization Expense | (12,553) | (11,335) | |||||
Other | 30 | 0 | |||||
Balance, end of period | $ 281,661 | $ 246,653 | |||||
Variable / Universal Life | Transition adjustments | |||||||
Deferred Policy Acquisition Cost [Line Items] | |||||||
Balance | $ 21,714 | ||||||
[1]Amounts adjusted for the implementation of Accounting Standards Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Deferred Policy Acquisition C_4
Deferred Policy Acquisition Costs and Deferred Reinsurance (Balance of and Changes in Deferred Reinsurance Losses) (Details) - Variable Annuities - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ 18,977 | $ 20,632 |
Amortization expense | (1,547) | (1,655) |
Other | (5) | |
Balance, end of period | $ 17,425 | $ 18,977 |
Separate Accounts (Separate Acc
Separate Accounts (Separate Account Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | $ 13,926,958 | $ 17,922,367 |
Equity | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 7,430,452 | 10,668,762 |
Fixed Income | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 3,973,001 | 4,306,815 |
Other | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 611,170 | 756,382 |
Other invested assets | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | $ 1,912,335 | $ 2,190,408 |
Separate Accounts (Separate A_2
Separate Accounts (Separate Account Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of period | $ 17,922,367 | $ 17,117,510 |
Deposits | 267,902 | 336,099 |
Investment performance | (3,039,576) | 1,968,598 |
Policy charges | (339,141) | (376,185) |
Surrenders and withdrawals | (806,187) | (1,031,679) |
Benefit payments | (48,556) | (68,986) |
Net transfers (to) from general account | (38,472) | (29,372) |
Other | 8,621 | 6,382 |
Balance, end of period | 13,926,958 | 17,922,367 |
Cash surrender value | 13,645,324 | 17,600,005 |
Variable Annuities | ||
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of period | 11,982,322 | 11,963,399 |
Deposits | 67,216 | 99,941 |
Investment performance | (2,113,606) | 1,171,547 |
Policy charges | (238,173) | (277,346) |
Surrenders and withdrawals | (764,069) | (972,834) |
Benefit payments | (5,622) | (7,378) |
Net transfers (to) from general account | (895) | 4,108 |
Other | 1,395 | 885 |
Balance, end of period | 8,928,568 | 11,982,322 |
Cash surrender value | 8,747,915 | 11,749,197 |
Variable Life | ||
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of period | 5,940,045 | 5,154,111 |
Deposits | 200,686 | 236,158 |
Investment performance | (925,970) | 797,051 |
Policy charges | (100,968) | (98,839) |
Surrenders and withdrawals | (42,118) | (58,845) |
Benefit payments | (42,934) | (61,608) |
Net transfers (to) from general account | (37,577) | (33,480) |
Other | 7,226 | 5,497 |
Balance, end of period | 4,998,390 | 5,940,045 |
Cash surrender value | $ 4,897,409 | $ 5,850,808 |
Liability for Future Policy B_3
Liability for Future Policy Benefits (Benefit Reserves) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Term Life | |||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | |||
Balance, beginning of period | $ 1,641,933 | $ 1,762,111 | |
Effect of cumulative changes in discount rate assumptions, beginning of period | (253,752) | (352,891) | |
Balance at original discount rate, beginning of period | 1,388,181 | 1,409,220 | |
Effect of assumption update | 174,263 | $ 5,651 | |
Effect of actual variances from expected experience and other activity | (29,416) | (13,285) | |
Adjusted balance, beginning of period | 1,533,028 | 1,401,586 | |
Issuances | 58,215 | 75,944 | |
Net Premiums/Consideration Collected | (170,297) | (155,282) | |
Interest accrual | 69,424 | 65,933 | |
Balance at original discount rate, end of period | 1,490,370 | 1,388,181 | |
Effect of cumulative changes in discount rate assumptions, end of period | (73,563) | 253,752 | |
Balance, end of period | 1,416,807 | 1,641,933 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Balance, beginning of period | 3,041,562 | 3,212,658 | |
Effect of cumulative changes in discount rate assumptions, beginning of period | (561,455) | (753,963) | |
Balance at original discount rate, beginning of period | 2,480,107 | 2,458,695 | |
Effect of assumption update | 255,336 | 5,817 | |
Effect of actual variance from expected experience and other activity | (60,049) | (9,219) | |
Adjusted balance, beginning of period | 2,675,394 | 2,455,293 | |
Issuances | 58,215 | 75,944 | |
Interest accrual | 129,657 | 120,981 | |
Benefit Payments | (173,998) | (171,572) | |
Other adjustments | (115) | (539) | |
Balance at original discount rate, end of period | 2,689,153 | 2,480,107 | |
Effect of cumulative changes in discount rate assumptions, end of period | (137,962) | 561,455 | |
Balance, end of period | 2,551,191 | 3,041,562 | |
Balance, end of period, pre-flooring | 1,134,384 | 1,399,629 | |
Flooring impact, end of period | 0 | 899 | |
Balance, end of period, post-flooring | 1,134,384 | 1,400,528 | |
Less: Reinsurance recoverable | 1,002,277 | 1,216,756 | |
Balance after reinsurance recoverable, end of period, post-flooring | 132,107 | 183,772 | |
Term Life | Gross Basis | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Undiscounted expected future gross premiums | 3,073,048 | 3,309,037 | |
Discounted expected future gross premiums (at original discount rate) | 2,069,441 | 2,185,726 | |
Discounted expected future gross premiums (at current discount rate) | 1,973,031 | 2,597,734 | |
Undiscounted expected future benefits and expenses | 4,352,500 | 4,023,185 | |
Interest accrual | 60,233 | 55,048 | |
Gross Premiums | $ 242,406 | $ 241,783 | |
Weighted-average duration of the liability in years (at original discount rate) | 11 years | 11 years | |
Weighted-average duration of the liability in years (at current discount rate) | 10 years | 11 years | |
Weighted-average interest rate (at original discount rate) | 5.33% | 5.37% | |
Weighted-average interest rate (at current discount rate) | 5.40% | 2.54% | |
Fixed Annuities | |||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | |||
Balance, beginning of period | $ 0 | $ 0 | |
Effect of cumulative changes in discount rate assumptions, beginning of period | 0 | 0 | |
Balance at original discount rate, beginning of period | 0 | 0 | |
Effect of assumption update | 0 | 0 | |
Effect of actual variances from expected experience and other activity | (746) | 0 | |
Adjusted balance, beginning of period | (746) | 0 | |
Issuances | 2,110 | 3,763 | |
Net Premiums/Consideration Collected | (1,364) | (3,763) | |
Interest accrual | 0 | 0 | |
Balance at original discount rate, end of period | 0 | 0 | |
Effect of cumulative changes in discount rate assumptions, end of period | 0 | 0 | |
Balance, end of period | 0 | 0 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Balance, beginning of period | 19,314 | 17,969 | |
Effect of cumulative changes in discount rate assumptions, beginning of period | (1,459) | (2,188) | |
Balance at original discount rate, beginning of period | 17,855 | 15,781 | |
Effect of assumption update | 0 | 0 | |
Effect of actual variance from expected experience and other activity | 149 | (297) | |
Adjusted balance, beginning of period | 18,004 | 15,484 | |
Issuances | 2,111 | 3,763 | |
Interest accrual | 627 | 620 | |
Benefit Payments | (2,308) | (2,012) | |
Other adjustments | (75) | 0 | |
Balance at original discount rate, end of period | 18,359 | 17,855 | |
Effect of cumulative changes in discount rate assumptions, end of period | (1,899) | 1,459 | |
Balance, end of period | 16,460 | 19,314 | |
Balance, end of period, pre-flooring | 16,460 | 19,314 | |
Flooring impact, end of period | 0 | 0 | |
Balance, end of period, post-flooring | 16,460 | 19,314 | |
Less: Reinsurance recoverable | 16,460 | 19,314 | |
Balance after reinsurance recoverable, end of period, post-flooring | 0 | 0 | |
Fixed Annuities | Gross Basis | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Undiscounted expected future gross premiums | 0 | 0 | |
Discounted expected future gross premiums (at original discount rate) | 0 | 0 | |
Discounted expected future gross premiums (at current discount rate) | 0 | 0 | |
Undiscounted expected future benefits and expenses | 24,056 | 23,747 | |
Interest accrual | 627 | 620 | |
Gross Premiums | $ 1,700 | $ 4,553 | |
Weighted-average duration of the liability in years (at original discount rate) | 7 years | 7 years | |
Weighted-average duration of the liability in years (at current discount rate) | 6 years | 7 years | |
Weighted-average interest rate (at original discount rate) | 3.56% | 3.56% | |
Weighted-average interest rate (at current discount rate) | 5.30% | 2.48% | |
Term Life and Fixed Annuities | |||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | |||
Balance, beginning of period | $ 1,641,933 | $ 1,762,111 | |
Effect of cumulative changes in discount rate assumptions, beginning of period | (253,752) | (352,891) | |
Balance at original discount rate, beginning of period | 1,388,181 | 1,409,220 | |
Effect of assumption update | 174,263 | 5,651 | |
Effect of actual variances from expected experience and other activity | (30,162) | (13,285) | |
Adjusted balance, beginning of period | 1,532,282 | 1,401,586 | |
Issuances | 60,325 | 79,707 | |
Net Premiums/Consideration Collected | (171,661) | (159,045) | |
Interest accrual | 69,424 | 65,933 | |
Balance at original discount rate, end of period | 1,490,370 | 1,388,181 | |
Effect of cumulative changes in discount rate assumptions, end of period | (73,563) | 253,752 | |
Balance, end of period | 1,416,807 | 1,641,933 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Balance, beginning of period | 3,060,876 | 3,230,627 | |
Effect of cumulative changes in discount rate assumptions, beginning of period | (562,914) | (756,151) | |
Balance at original discount rate, beginning of period | 2,497,962 | 2,474,476 | |
Effect of assumption update | 255,336 | 5,817 | |
Effect of actual variance from expected experience and other activity | (59,900) | $ (9,516) | |
Adjusted balance, beginning of period | 2,693,398 | 2,470,777 | |
Issuances | 60,326 | 79,707 | |
Interest accrual | 130,284 | 121,601 | |
Benefit Payments | (176,306) | (173,584) | |
Other adjustments | (190) | (539) | |
Balance at original discount rate, end of period | 2,707,512 | 2,497,962 | |
Effect of cumulative changes in discount rate assumptions, end of period | (139,861) | 562,914 | |
Balance, end of period | 2,567,651 | 3,060,876 | |
Balance, end of period, pre-flooring | 1,150,844 | 1,418,943 | |
Flooring impact, end of period | 0 | 899 | |
Balance, end of period, post-flooring | 1,150,844 | 1,419,842 | |
Less: Reinsurance recoverable | 1,018,737 | 1,236,070 | |
Balance after reinsurance recoverable, end of period, post-flooring | 132,107 | 183,772 | |
Nonparticipating Traditional and Limited-Pay Business | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Loss in net income | 11,000 | 6,000 | |
Gain in net income | $ 10,000 | $ 5,000 |
Liability for Future Policy B_4
Liability for Future Policy Benefits (Deferred Profit Liability) (Details) - Fixed Annuities - Deferred Profit Liaibility - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Balance, beginning of period | $ 1,726 | $ 984 | |
Effect of actual variance from expected experience and other activity | (169) | $ 98 | |
Adjusted balance, beginning of period | 1,557 | $ 1,082 | |
Profits deferred | 309 | 771 | |
Interest accrual | 60 | 60 | |
Amortization | (222) | (187) | |
Other adjustments | (20) | 0 | |
Balance, end of period | 1,684 | 1,726 | |
Less: Reinsurance recoverable | 1,684 | 1,726 | |
Balance after reinsurance recoverable | 0 | 0 | |
Gross Basis | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Interest accrual | 60 | 60 | |
Revenue | $ 42 | $ (742) |
Liability for Future Policy B_5
Liability for Future Policy Benefits (Additional Insurance Reserve) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Insurance [Abstract] | |||
Balance including amounts in AOCI, beginning of period, post-flooring | $ 703,968 | $ 642,514 | |
Flooring impact and amounts in AOCI | (71,467) | (95,331) | |
Balance, excluding amounts in AOCI, beginning of period, pre-flooring | 632,501 | $ 547,183 | |
Effect of assumption updates | 180,404 | 369 | |
Effect of actual variance from expected experience and other activity | (39,475) | 8,089 | |
Adjusted balance, beginning of period | 773,430 | $ 555,641 | |
Assessments collected | 134,822 | 62,891 | |
Interest accrual | 27,479 | 20,039 | |
Benefits paid | (17,138) | (6,070) | |
Balance, excluding amounts in AOCI, end of period, pre-flooring | 918,593 | 632,501 | |
Flooring impact and amounts in AOCI | (91,115) | 71,467 | |
Balance, including amounts in AOCI, end of period, post-flooring | 827,478 | 703,968 | |
Less: Reinsurance recoverable | 793,577 | 666,813 | |
Balance after reinsurance recoverable, including amounts in AOCI, end of period | 33,901 | 37,155 | |
Gross assessments | $ 303,979 | $ 215,741 | |
Weighted-average duration of the liability in years (at original discount rate) | 28 years | 26 years | |
Weighted-average interest rate (at original discount rate) | 3.41% | 3.44% |
Liability for Future Policy B_6
Liability for Future Policy Benefits (Future Policy Benefits Reconciliation) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Additional insurance reserves, including amounts in AOCI, end of period, post-flooring | $ 827,478 | $ 703,968 | $ 642,514 | |
Total future policy benefits | [1] | 2,130,042 | 2,361,123 | |
Liability for Future Policy Benefit | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Other future policy benefit reserves | 150,036 | 235,587 | ||
Total future policy benefits | 2,130,042 | 2,361,123 | ||
Liability for Future Policy Benefit | Total | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Benefit reserves, end of period, post-flooring | 1,150,844 | 1,419,842 | ||
Additional insurance reserves, including amounts in AOCI, end of period, post-flooring | 827,478 | 703,968 | ||
Deferred profit liability, end of period, post-flooring | 1,684 | 1,726 | ||
Balance, end of period, post-flooring | $ 1,980,006 | $ 2,125,536 | ||
[1]Amounts adjusted for the implementation of Accounting Standards Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Liability for Future Policy B_7
Liability for Future Policy Benefits (Revenue and Interest Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Benefit Reserves | Fixed Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | $ 1,700 | $ 4,553 |
Interest Expense | 627 | 620 |
Benefit Reserves | Term Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 242,406 | 241,783 |
Interest Expense | 60,233 | 55,048 |
Benefit Reserves | Variable and Universal Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 0 | 0 |
Interest Expense | 0 | 0 |
Benefit Reserves | Total | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 244,106 | 246,336 |
Interest Expense | 60,860 | 55,668 |
Additional Insurance Reserves | Fixed Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 0 | 0 |
Interest Expense | 0 | 0 |
Additional Insurance Reserves | Term Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 0 | 0 |
Interest Expense | 0 | 0 |
Additional Insurance Reserves | Variable and Universal Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 303,979 | 215,741 |
Interest Expense | 27,479 | 20,039 |
Additional Insurance Reserves | Total | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 303,979 | 215,741 |
Interest Expense | 27,479 | 20,039 |
Deferred Profit Liability | Fixed Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 42 | (742) |
Interest Expense | 60 | 60 |
Deferred Profit Liability | Term Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 0 | 0 |
Interest Expense | 0 | 0 |
Deferred Profit Liability | Variable and Universal Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 0 | 0 |
Interest Expense | 0 | 0 |
Deferred Profit Liability | Total | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 42 | (742) |
Interest Expense | 60 | 60 |
Revenues | Fixed Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 1,742 | 3,811 |
Revenues | Term Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 242,406 | 241,783 |
Revenues | Variable and Universal Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 303,979 | 215,741 |
Revenues | Total | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 548,127 | 461,335 |
Interest Expense | Fixed Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest Expense | 687 | 680 |
Interest Expense | Term Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest Expense | 60,233 | 55,048 |
Interest Expense | Variable and Universal Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest Expense | 27,479 | 20,039 |
Interest Expense | Total | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest Expense | $ 88,399 | $ 75,767 |
Policyholders' Liabilities (Det
Policyholders' Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Additional Liability, Long-Duration Insurance [Roll Forward] | ||
Balance, beginning of period | $ 2,699,934 | |
Transfer (to) from separate account | 38,472 | $ 29,372 |
Unearned revenue reserve | 313,710 | 251,573 |
Other | 48,801 | 51,351 |
Policyholder Account Balance, Total | $ 2,774,315 | $ 2,699,934 |
Weighted-average crediting rate | 2.96% | 2.59% |
Net amount at risk | $ 33,702,745 | $ 32,380,414 |
Cash surrender value | 2,055,690 | 1,999,935 |
Total | ||
Additional Liability, Long-Duration Insurance [Roll Forward] | ||
Balance, beginning of period | 2,397,010 | 2,388,781 |
Deposits | 228,083 | 280,712 |
Interest credited | 71,153 | 61,981 |
Policy charges | (145,428) | (142,146) |
Surrenders and withdrawals | (147,423) | (151,780) |
Benefit payments | (932) | (78,892) |
Transfer (to) from separate account | 38,472 | 29,372 |
Change in market value and other adjustments | (29,131) | 8,982 |
Balance, end of period | 2,411,804 | 2,397,010 |
Less: Reinsurance and other recoverable | 1,083,254 | 1,072,820 |
Policyholders' account balance net of reinsurance and other recoverables | 1,328,550 | 1,324,190 |
Policyholder Account Balance, Total | 2,397,010 | |
Variable Annuities | ||
Additional Liability, Long-Duration Insurance [Roll Forward] | ||
Balance, beginning of period | 344,945 | 365,751 |
Deposits | 1,066 | 1,610 |
Interest credited | 6,174 | 6,524 |
Policy charges | (234) | (169) |
Surrenders and withdrawals | (22,412) | (18,111) |
Benefit payments | (3,310) | (6,552) |
Transfer (to) from separate account | 895 | (4,108) |
Change in market value and other adjustments | 0 | 0 |
Balance, end of period | 327,124 | 344,945 |
Less: Reinsurance and other recoverable | 323,981 | 340,527 |
Policyholders' account balance net of reinsurance and other recoverables | $ 3,143 | 4,418 |
Policyholder Account Balance, Total | $ 344,945 | |
Weighted-average crediting rate | 1.84% | 1.84% |
Net amount at risk | $ 0 | $ 0 |
Cash surrender value | 305,239 | 323,406 |
Variable / Universal Life | ||
Additional Liability, Long-Duration Insurance [Roll Forward] | ||
Balance, beginning of period | 2,052,065 | 2,023,030 |
Deposits | 227,017 | 279,102 |
Interest credited | 64,979 | 55,457 |
Policy charges | (145,194) | (141,977) |
Surrenders and withdrawals | (125,011) | (133,669) |
Benefit payments | 2,378 | (72,340) |
Transfer (to) from separate account | 37,577 | 33,480 |
Change in market value and other adjustments | (29,131) | 8,982 |
Balance, end of period | 2,084,680 | 2,052,065 |
Less: Reinsurance and other recoverable | 759,273 | 732,293 |
Policyholders' account balance net of reinsurance and other recoverables | $ 1,325,407 | 1,319,772 |
Policyholder Account Balance, Total | $ 2,052,065 | |
Weighted-average crediting rate | 3.14% | 2.72% |
Net amount at risk | $ 33,702,745 | $ 32,380,414 |
Cash surrender value | $ 1,750,451 | $ 1,676,529 |
Policyholders' Liabilities (Gua
Policyholders' Liabilities (Guaranteed Minimum Crediting Rate) (Details) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) |
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 2,774,315 | $ 2,699,934 | |
1 - 50 bps above guaranteed minimum | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 50 | 50 | |
1 - 50 bps above guaranteed minimum | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 1 | 1 | |
51 - 150 bps above guaranteed minimum | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 150 | 150 | |
51 - 150 bps above guaranteed minimum | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 51 | 51 | |
Greater than 150bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, above guaranteed minimum crediting rate | 150 | 150 | |
Variable Annuities | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 344,945 | $ 365,751 | |
Variable / Universal Life | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 2,052,065 | $ 2,023,030 | |
Less than 1.00% | Variable Annuities | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 0 | $ 0 | |
Range of Guaranteed Minimum Crediting Rates | 1% | 1% | |
Less than 1.00% | Variable Annuities | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 0 | $ 0 | |
Less than 1.00% | Variable Annuities | 1 - 50 bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
Less than 1.00% | Variable Annuities | 51 - 150 bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
Less than 1.00% | Variable Annuities | Greater than 150bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
Less than 1.00% | Variable / Universal Life | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 705 | $ 1,143 | |
Range of Guaranteed Minimum Crediting Rates | 1% | 1% | |
Less than 1.00% | Variable / Universal Life | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 705 | $ 1,143 | |
Less than 1.00% | Variable / Universal Life | 1 - 50 bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
Less than 1.00% | Variable / Universal Life | 51 - 150 bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
Less than 1.00% | Variable / Universal Life | Greater than 150bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
1.00% - 1.99% | Variable Annuities | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 194,144 | $ 204,544 | |
1.00% - 1.99% | Variable Annuities | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 1.99% | 1.99% | |
1.00% - 1.99% | Variable Annuities | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 1% | 1% | |
1.00% - 1.99% | Variable Annuities | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 192,551 | $ 202,917 | |
1.00% - 1.99% | Variable Annuities | 1 - 50 bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 1,593 | 1,627 | |
1.00% - 1.99% | Variable Annuities | 51 - 150 bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
1.00% - 1.99% | Variable Annuities | Greater than 150bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
1.00% - 1.99% | Variable / Universal Life | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 448,775 | $ 410,341 | |
1.00% - 1.99% | Variable / Universal Life | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 1.99% | 1.99% | |
1.00% - 1.99% | Variable / Universal Life | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 1% | 1% | |
1.00% - 1.99% | Variable / Universal Life | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 56,396 | $ 48,298 | |
1.00% - 1.99% | Variable / Universal Life | 1 - 50 bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
1.00% - 1.99% | Variable / Universal Life | 51 - 150 bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 105,883 | 0 | |
1.00% - 1.99% | Variable / Universal Life | Greater than 150bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 286,496 | 362,043 | |
2.00% - 2.99% | Variable Annuities | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 1,812 | $ 1,901 | |
2.00% - 2.99% | Variable Annuities | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 2.99% | 2.99% | |
2.00% - 2.99% | Variable Annuities | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 2% | 2% | |
2.00% - 2.99% | Variable Annuities | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 1,812 | $ 1,901 | |
2.00% - 2.99% | Variable Annuities | 1 - 50 bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2.00% - 2.99% | Variable Annuities | 51 - 150 bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2.00% - 2.99% | Variable Annuities | Greater than 150bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
2.00% - 2.99% | Variable / Universal Life | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 359,245 | $ 342,081 | |
2.00% - 2.99% | Variable / Universal Life | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 2.99% | 2.99% | |
2.00% - 2.99% | Variable / Universal Life | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 2% | 2% | |
2.00% - 2.99% | Variable / Universal Life | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 4,433 | $ 679 | |
2.00% - 2.99% | Variable / Universal Life | 1 - 50 bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 15,602 | 0 | |
2.00% - 2.99% | Variable / Universal Life | 51 - 150 bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 203,101 | 288,371 | |
2.00% - 2.99% | Variable / Universal Life | Greater than 150bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 136,109 | 53,031 | |
3.00% - 4.00% | Variable Annuities | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 133,200 | $ 142,452 | |
3.00% - 4.00% | Variable Annuities | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 4% | 4% | |
3.00% - 4.00% | Variable Annuities | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 3% | 3% | |
3.00% - 4.00% | Variable Annuities | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 132,969 | $ 142,452 | |
3.00% - 4.00% | Variable Annuities | 1 - 50 bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 231 | 0 | |
3.00% - 4.00% | Variable Annuities | 51 - 150 bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3.00% - 4.00% | Variable Annuities | Greater than 150bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
3.00% - 4.00% | Variable / Universal Life | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 592,420 | $ 596,354 | |
3.00% - 4.00% | Variable / Universal Life | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 4% | 4% | |
3.00% - 4.00% | Variable / Universal Life | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Range of Guaranteed Minimum Crediting Rates | 3% | 3% | |
3.00% - 4.00% | Variable / Universal Life | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 156,567 | $ 142,942 | |
3.00% - 4.00% | Variable / Universal Life | 1 - 50 bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 633 | 390,853 | |
3.00% - 4.00% | Variable / Universal Life | 51 - 150 bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 435,220 | 62,559 | |
3.00% - 4.00% | Variable / Universal Life | Greater than 150bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
Greater than 4.00% | Variable Annuities | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 125 | $ 120 | |
Range of Guaranteed Minimum Crediting Rates | 4% | 4% | |
Greater than 4.00% | Variable Annuities | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 125 | $ 120 | |
Greater than 4.00% | Variable Annuities | 1 - 50 bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
Greater than 4.00% | Variable Annuities | 51 - 150 bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
Greater than 4.00% | Variable Annuities | Greater than 150bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
Greater than 4.00% | Variable / Universal Life | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 377,674 | $ 362,150 | |
Range of Guaranteed Minimum Crediting Rates | 4% | 4% | |
Greater than 4.00% | Variable / Universal Life | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 377,674 | $ 362,150 | |
Greater than 4.00% | Variable / Universal Life | 1 - 50 bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
Greater than 4.00% | Variable / Universal Life | 51 - 150 bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
Greater than 4.00% | Variable / Universal Life | Greater than 150bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
Total | Variable Annuities | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 329,281 | 349,017 | |
Total | Variable Annuities | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 327,457 | 347,390 | |
Total | Variable Annuities | 1 - 50 bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 1,824 | 1,627 | |
Total | Variable Annuities | 51 - 150 bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
Total | Variable Annuities | Greater than 150bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 0 | 0 | |
Total | Variable / Universal Life | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 1,778,819 | 1,712,069 | |
Total | Variable / Universal Life | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 595,775 | 555,212 | |
Total | Variable / Universal Life | 1 - 50 bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 16,235 | 390,853 | |
Total | Variable / Universal Life | 51 - 150 bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | 744,204 | 350,930 | |
Total | Variable / Universal Life | Greater than 150bps above guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Account Values with Crediting Rates | $ 422,605 | $ 415,074 |
Policyholders' Liabilities (Add
Policyholders' Liabilities (Additional Insurance Reserves) (Details) - Variable / Universal Life - Policyholder Contract Deposit - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Liability for Future Policy Benefit, Activity [Line Items] | ||
Balance, beginning of period | $ 251,573 | $ 186,582 |
Unearned revenue | 75,757 | 76,179 |
Amortization expense | (13,681) | (11,188) |
Other adjustments | 61 | 0 |
Balance, end of period | 313,710 | 251,573 |
Less: Reinsurance recoverables | 81,256 | 63,830 |
Unearned revenue reserve net of reinsurance recoverables | $ 232,454 | $ 187,743 |
Market Risk Benefits - Rollforw
Market Risk Benefits - Rollforward of Balances for Variable Annuity Products (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Variable Annuities | ||
Market Risk Benefit [Line Items] | ||
Balance, beginning of period | $ 796,913 | $ 1,205,571 |
Effect of cumulative changes in non-performance risk | 21,123 | 60,792 |
Balance, beginning of period, before effect of changes in non-performance risk | 818,036 | 1,266,363 |
Attributed fees collected | 117,867 | 129,583 |
Claims paid | (3,456) | (199) |
Interest accrual | 12,950 | 2,200 |
Actual in force different from expected | 10,199 | 934 |
Effect of changes in interest rates | (642,920) | (324,926) |
Effect of changes in equity markets | 266,177 | (235,734) |
Effect of assumption update | (17,430) | (20,185) |
Effect of changes in current period counterparty non-performance risk | 0 | 0 |
Balance, end of period, before effect of changes in non-performance risk | 561,423 | 818,036 |
Effect of cumulative changes in non-performance risk | (163,169) | (21,123) |
Balance, end of period | 398,254 | 796,913 |
Reinsured Market Risk Benefit | ||
Market Risk Benefit [Line Items] | ||
Balance, beginning of period | (796,913) | (1,205,571) |
Effect of cumulative changes in non-performance risk | 0 | 0 |
Balance, beginning of period, before effect of changes in non-performance risk | (796,913) | (1,205,571) |
Attributed fees collected | (117,867) | (129,583) |
Claims paid | 3,456 | 199 |
Interest accrual | (12,950) | (2,200) |
Actual in force different from expected | (10,199) | (934) |
Effect of changes in interest rates | 642,920 | 324,926 |
Effect of changes in equity markets | (266,177) | 235,734 |
Effect of assumption update | 17,430 | 20,185 |
Effect of changes in current period counterparty non-performance risk | 142,046 | (39,669) |
Balance, end of period, before effect of changes in non-performance risk | (398,254) | (796,913) |
Effect of cumulative changes in non-performance risk | 0 | 0 |
Balance, end of period | (398,254) | (796,913) |
Variable Annuities Net of Reinsurance | ||
Market Risk Benefit [Line Items] | ||
Balance, beginning of period | 0 | 0 |
Effect of cumulative changes in non-performance risk | 21,123 | 60,792 |
Balance, beginning of period, before effect of changes in non-performance risk | 21,123 | 60,792 |
Attributed fees collected | 0 | 0 |
Claims paid | 0 | 0 |
Interest accrual | 0 | 0 |
Actual in force different from expected | 0 | 0 |
Effect of changes in interest rates | 0 | 0 |
Effect of changes in equity markets | 0 | 0 |
Effect of assumption update | 0 | 0 |
Effect of changes in current period counterparty non-performance risk | 142,046 | (39,669) |
Balance, end of period, before effect of changes in non-performance risk | 163,169 | 21,123 |
Effect of cumulative changes in non-performance risk | (163,169) | (21,123) |
Balance, end of period | $ 0 | $ 0 |
Market Risk Benefits - Market R
Market Risk Benefits - Market Risk Benefits In Asset and Liability Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | ||
Market Risk Benefit [Line Items] | |||||
Market risk benefit assets | [1] | $ 558,624 | $ 940,706 | ||
Market risk benefits liabilities | [1] | 558,624 | 940,706 | ||
Variable Annuities | |||||
Market Risk Benefit [Line Items] | |||||
Net amount at risk | $ 1,050,063 | $ 128,292 | |||
Weighted-average attained age of contractholders | 68 years | 65 years | |||
Market risk benefit assets | $ 558,624 | $ 940,706 | |||
Market risk benefits liabilities | 558,624 | 940,706 | |||
Net liability | $ 0 | $ 0 | $ 0 | $ 1,195,470 | |
[1]Amounts adjusted for the implementation of Accounting Standards Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Reinsurance (Balance Sheet Rein
Reinsurance (Balance Sheet Reinsurance Results) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Effects of Reinsurance [Line Items] | ||||||||
Reinsurance recoverables | $ 3,098,248 | $ 3,175,195 | ||||||
Policy loans | (212,063) | (210,730) | ||||||
Deferred policy acquisition costs | (351,874) | [1] | (308,744) | [1] | $ (244,218) | $ (224,425) | $ (178,813) | |
Market risk benefit assets | [1] | 558,624 | 940,706 | |||||
Other assets | [1] | 48,391 | 48,867 | |||||
Market risk benefits liabilities | [1] | 558,624 | 940,706 | |||||
Other liabilities | [1] | 172,305 | 201,033 | |||||
Impacts of Reinsurance | ||||||||
Effects of Reinsurance [Line Items] | ||||||||
Reinsurance recoverables | 3,098,248 | 3,175,195 | ||||||
Policy loans | (22,999) | (22,028) | ||||||
Deferred policy acquisition costs | (646,737) | (691,795) | ||||||
Deferred sales inducements | (38,146) | (41,346) | ||||||
Market risk benefit assets | 478,439 | 868,810 | ||||||
Other assets | 42,265 | 44,226 | ||||||
Market risk benefits liabilities | 80,185 | 71,896 | ||||||
Other liabilities | $ 115,351 | $ 147,160 | ||||||
[1]Amounts adjusted for the implementation of Accounting Standards Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Reinsurance (Reinsurance Recove
Reinsurance (Reinsurance Recoverable by Counterparty) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | $ 3,098,248 | $ 3,175,195 |
Prudential Insurance | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 456,633 | 484,807 |
PAR U | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 1,575,260 | 1,385,187 |
PARCC | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 464,142 | 510,618 |
PAR Term | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 258,169 | 329,514 |
Term Re | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 232,796 | 313,481 |
DART | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 73,702 | 105,596 |
Pruco Life | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 34,720 | 40,804 |
Unaffiliated | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | $ 2,826 | $ 5,188 |
Reinsurance (Income Statement R
Reinsurance (Income Statement Reinsurance Results) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Premiums: | |||||
Direct | $ 245,525 | $ 249,162 | $ 249,426 | ||
Ceded | (211,817) | (220,413) | (227,766) | ||
Net premiums | 33,708 | [1] | 28,749 | [1] | 21,660 |
Policy charges and fee income: | |||||
Direct | 370,855 | 395,576 | 407,449 | ||
Ceded | (313,121) | (323,414) | (333,247) | ||
Net policy charges and fee income | 57,734 | [1] | 72,162 | [1] | 74,202 |
Net investment income: | |||||
Direct | 99,164 | 101,279 | 83,800 | ||
Ceded | (772) | (788) | (805) | ||
Net investment income | 98,392 | 100,491 | 82,995 | ||
Asset administration fees: | |||||
Direct | 38,061 | 44,882 | 39,773 | ||
Ceded | (29,581) | (36,007) | (33,029) | ||
Net asset administration fees | 8,480 | 8,875 | 6,744 | ||
Realized investment gains (losses), net: | |||||
Direct | 12,855 | 465 | (324,737) | ||
Ceded | 980 | 50 | 326,608 | ||
Realized investment gains (losses), net | 13,835 | [1] | 515 | [2] | 1,871 |
Change in value of market risk benefits, net of related hedging gain (loss): | |||||
Direct | 256,613 | 448,327 | 0 | ||
Ceded | (398,659) | (408,657) | 0 | ||
Net change in value of market risk benefits, net of related hedging gain (loss) | (142,046) | [2] | 39,670 | [2] | 0 |
Policyholders’ benefits (including change in reserves): | |||||
Direct | 472,033 | 391,308 | 470,557 | ||
Ceded | (443,844) | (350,529) | (428,670) | ||
Net policyholders' benefits (including change in reserves) | 28,189 | [1] | 40,779 | [1] | 41,887 |
Change in estimates of liability for future policy benefits: | |||||
Direct | 208,188 | 14,590 | 0 | ||
Ceded | (191,557) | (11,771) | 0 | ||
Net change in estimates of liability for future policy benefits | 16,631 | [1] | 2,819 | [1] | 0 |
Interest credited to policyholders’ account balances: | |||||
Direct | 82,469 | 73,809 | 75,609 | ||
Ceded | (34,891) | (30,805) | (31,513) | ||
Net interest credited to policyholders’ account balances | 47,578 | 43,004 | 44,096 | ||
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization | (128,013) | (135,863) | (176,420) | ||
Unaffiliated activity | |||||
Policy charges and fee income: | |||||
Ceded | (5,000) | (5,000) | (4,000) | ||
Policyholders’ benefits (including change in reserves): | |||||
Ceded | $ 2,000 | $ (2,000) | $ (1,000) | ||
[1]Amounts for the years ended December 31, 2022 and 2021 were adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[2]Amounts for the years ended December 31, 2022 and 2021 were adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Reinsurance (Life Insurance In
Reinsurance (Life Insurance In Force) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Reinsurance Disclosures [Abstract] | |||
Direct gross life insurance face amount in force | $ 154,382,891 | $ 156,103,597 | $ 154,173,267 |
Reinsurance ceded | (140,370,532) | (140,856,353) | (139,478,523) |
Net life insurance face amount in force | $ 14,012,359 | $ 15,247,244 | $ 14,694,744 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - Affiliated Entity | 24 Months Ended | 48 Months Ended | |||
Jul. 01, 2012 | Dec. 31, 2009 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2013 | |
PAR U | |||||
Effects of Reinsurance [Line Items] | |||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95% | ||||
PARCC | |||||
Effects of Reinsurance [Line Items] | |||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 90% | ||||
PAR Term | |||||
Effects of Reinsurance [Line Items] | |||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95% | ||||
Term Re | |||||
Effects of Reinsurance [Line Items] | |||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95% | ||||
DART | |||||
Effects of Reinsurance [Line Items] | |||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95% |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Current tax expense (benefit): | |||||
U.S. federal | $ (22,713) | $ 10,969 | $ (34,698) | ||
State and local | (103) | 137 | 0 | ||
Total | (22,816) | 11,106 | (34,698) | ||
Deferred tax expense (benefit): | |||||
U.S. federal | (7,958) | (13) | 28,359 | ||
Total | (7,958) | (13) | 28,359 | ||
Income tax expense (benefit) | (30,774) | [1] | 11,093 | [1] | (6,339) |
Income tax expense (benefit) reported in equity related to: | |||||
Other comprehensive income (loss) | (36,731) | (19,694) | 26,521 | ||
Total income tax expense (benefit) | $ (67,505) | $ (8,601) | $ 20,182 | ||
[1]Amounts for the years ended December 31, 2022 and 2021 were adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Income Taxes (Reconciliation To
Income Taxes (Reconciliation To Effective Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2017 | |||
Income Tax Disclosure [Abstract] | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% | 21% | 35% | ||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||||
Expected federal income tax expense (benefit) | $ (21,126) | $ 20,100 | $ 8,827 | |||
Non-taxable investment income | (6,259) | (6,371) | (5,819) | |||
Tax credits | (3,393) | (3,478) | (2,451) | |||
Changes in tax law | 0 | 67 | (6,941) | |||
Other | 4 | 775 | 45 | |||
Income tax expense (benefit) | $ (30,774) | [1] | $ 11,093 | [1] | $ (6,339) | |
Effective tax rate | 30.60% | 11.60% | (15.10%) | |||
[1]Amounts for the years ended December 31, 2022 and 2021 were adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Insurance reserves | $ 1,677 | $ 49,117 |
Net unrealized loss on securities | 56,805 | 0 |
Other | 465 | 398 |
Deferred tax assets | 58,947 | 49,515 |
Deferred tax liabilities: | ||
Deferred policy acquisition cost | 15,078 | 8,639 |
Net unrealized gain on securities | 0 | 36,834 |
Investments | 4,149 | 9,381 |
Deferred tax liabilities | 19,227 | 54,854 |
Net deferred tax asset (liability) | $ (5,339) | |
Net deferred tax asset (liability) | $ 39,720 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Statutory federal income tax rate | 21% | 21% | 21% | 35% |
Effective tax rate | 30.60% | 11.60% | (15.10%) | |
Percent of income tax expense (benefit) | 5% | |||
Income (loss) from domestic operations | $ (101) | $ 96 | $ 42 | |
DRD constituting non-taxable investment income | 5 | 6 | 5 | |
Non-taxable investment income | $ 6 | $ 6 | 6 | |
Net Operating Loss Carryback | $ 7 |
Equity (Accumulated Other Compr
Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning Balance | [1] | $ 101,987 | ||||
Income tax expense (benefit) | (30,774) | [2] | $ 11,093 | [2] | $ (6,339) | |
Ending Balance | [1] | (36,190) | 101,987 | |||
Foreign Currency Translation Adjustment | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning Balance | (988) | (783) | (981) | |||
Cumulative effect of adoption of ASU 2018-12 | 0 | |||||
Change in OCI before reclassifications | (336) | (259) | 250 | |||
Amounts reclassified from AOCI | 0 | 0 | 0 | |||
Income tax expense (benefit) | 110 | 54 | (52) | |||
Ending Balance | (1,214) | (988) | (783) | |||
Net Unrealized Investment Gains (Losses) | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning Balance | 121,075 | 186,190 | 86,616 | |||
Cumulative effect of adoption of ASU 2018-12 | (11,979) | |||||
Change in OCI before reclassifications | (375,622) | (66,843) | 126,329 | |||
Amounts reclassified from AOCI | (863) | (418) | (286) | |||
Income tax expense (benefit) | 79,024 | 14,125 | (26,469) | |||
Ending Balance | (176,386) | 121,075 | 186,190 | |||
Interest Rate Remeasurement of Future Policy Benefits | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning Balance | (34,788) | |||||
Cumulative effect of adoption of ASU 2018-12 | (45,378) | |||||
Change in OCI before reclassifications | 59,865 | 13,404 | ||||
Amounts reclassified from AOCI | 0 | 0 | ||||
Income tax expense (benefit) | (12,573) | (2,814) | ||||
Ending Balance | 12,504 | (34,788) | ||||
Gain (loss) from Changes in Non-Performance Risk on Market Risk Benefits | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning Balance | 16,688 | |||||
Cumulative effect of adoption of ASU 2018-12 | 48,028 | |||||
Change in OCI before reclassifications | 142,048 | (39,669) | ||||
Amounts reclassified from AOCI | 0 | 0 | ||||
Income tax expense (benefit) | (29,830) | 8,329 | ||||
Ending Balance | 128,906 | 16,688 | ||||
Total reclassifications for the period | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning Balance | 101,987 | 185,407 | 85,635 | |||
Cumulative effect of adoption of ASU 2018-12 | (9,329) | |||||
Change in OCI before reclassifications | (174,045) | (93,367) | 126,579 | |||
Amounts reclassified from AOCI | (863) | (418) | (286) | |||
Income tax expense (benefit) | 36,731 | 19,694 | (26,521) | |||
Ending Balance | (36,190) | 101,987 | 185,407 | |||
Cash flow hedges - Currency/Interest rate | Net Unrealized Investment Gains (Losses) | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning Balance | 5,000 | (3,000) | ||||
Ending Balance | $ 14,000 | $ 5,000 | $ (3,000) | |||
[1]Amounts adjusted for the implementation of Accounting Standards Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[2]Amounts for the years ended December 31, 2022 and 2021 were adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Equity (Reclassification out of
Equity (Reclassification out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Total net unrealized investment gains (losses) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | $ (863) | $ (418) | $ (286) |
Total reclassifications for the period | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | (863) | (418) | (286) |
Reclassification out of Accumulated Other Comprehensive Income | Total net unrealized investment gains (losses) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | 863 | 418 | 286 |
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 | 863 | 418 | 286 |
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] | |||
Unrealized Gain (Loss) on Investments | (4,032) | (1,874) | (672) |
Reclassification out of Accumulated Other Comprehensive Income | Currency/Interest Rate | Cash flow hedges - Currency/Interest rate | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Unrealized Gain (Loss) on Investments | $ 4,895 | $ 2,292 | $ 958 |
Equity (Net Unrealized Investme
Equity (Net Unrealized Investment Gains (Losses) in AOCI) on AFS Fixed Maturity Securities with OTTI, Allowance for Credit Losses and All Other Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | [1] | $ 101,987 | ||
Ending Balance | [1] | (36,190) | $ 101,987 | |
Net Unrealized Gains (Losses) on AFS Fixed Maturity Securities on which an OTTI Loss has been Recognized | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 0 | 0 | $ 51 | |
Reclassification due to implementation of ASU 2016-13 | (51) | |||
Cumulative effect of adoption of ASU 2018-12 | 0 | |||
Net unrealized investment gains (losses) on investments arising during the period | 0 | 0 | 0 | |
Reclassification adjustment for (gains) losses included in net income | 0 | 0 | 0 | |
Impact of net unrealized investment (gains) losses | 0 | 0 | 0 | |
Ending Balance | 0 | 0 | 0 | |
Net Unrealized Gains (Losses) on All Other Investments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 180,806 | 255,724 | 115,988 | |
Reclassification due to implementation of ASU 2016-13 | 51 | |||
Cumulative effect of adoption of ASU 2018-12 | 0 | |||
Net unrealized investment gains (losses) on investments arising during the period | (436,527) | (74,500) | 139,971 | |
Reclassification adjustment for (gains) losses included in net income | (863) | (418) | (286) | |
Impact of net unrealized investment (gains) losses | 0 | 0 | 0 | |
Ending Balance | (256,584) | 180,806 | 255,724 | |
Other Costs | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 64,772 | 28,241 | 8,973 | |
Reclassification due to implementation of ASU 2016-13 | 0 | |||
Cumulative effect of adoption of ASU 2018-12 | 59,506 | |||
Net unrealized investment gains (losses) on investments arising during the period | 0 | 0 | 0 | |
Reclassification adjustment for (gains) losses included in net income | 0 | 0 | 0 | |
Impact of net unrealized investment (gains) losses | (148,484) | (22,975) | 19,268 | |
Ending Balance | (83,712) | 64,772 | 28,241 | |
Future Policy Benefits, Policyholders' Account Balances and Other Liabilities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (92,319) | (48,283) | (15,373) | |
Reclassification due to implementation of ASU 2016-13 | 0 | |||
Cumulative effect of adoption of ASU 2018-12 | (74,668) | |||
Net unrealized investment gains (losses) on investments arising during the period | 0 | 0 | 0 | |
Reclassification adjustment for (gains) losses included in net income | 0 | 0 | 0 | |
Impact of net unrealized investment (gains) losses | 209,389 | 30,632 | (32,910) | |
Ending Balance | 117,070 | (92,319) | (48,283) | |
Income Tax Benefit (Expense) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (32,184) | (49,492) | (23,023) | |
Reclassification due to implementation of ASU 2016-13 | 0 | |||
Cumulative effect of adoption of ASU 2018-12 | 3,183 | |||
Net unrealized investment gains (losses) on investments arising during the period | 91,638 | 15,644 | (29,394) | |
Reclassification adjustment for (gains) losses included in net income | 181 | 88 | 61 | |
Impact of net unrealized investment (gains) losses | (12,795) | (1,607) | 2,864 | |
Ending Balance | 46,840 | (32,184) | (49,492) | |
Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 121,075 | 186,190 | 86,616 | |
Reclassification due to implementation of ASU 2016-13 | 0 | |||
Cumulative effect of adoption of ASU 2018-12 | (11,979) | |||
Net unrealized investment gains (losses) on investments arising during the period | (344,889) | (58,856) | 110,577 | |
Reclassification adjustment for (gains) losses included in net income | (682) | (330) | (225) | |
Impact of net unrealized investment (gains) losses | 48,110 | 6,050 | (10,778) | |
Ending Balance | $ (176,386) | $ 121,075 | $ 186,190 | |
[1]Amounts adjusted for the implementation of Accounting Standards Update ("ASU") 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Statutory Net Income and Surp_3
Statutory Net Income and Surplus and Dividend Restrictions (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statutory Accounting Practices [Line Items] | |||
Statutory net income | $ (134) | $ 52 | $ (70) |
Statutory capital and surplus | 851 | 592 | 337 |
Statutory surplus capacity to pay dividend without prior approval in 2023 | 13 | ||
Statutory dividend paid to Pruco Life | $ 0 | $ 0 | $ 0 |
Pruco Life | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Accounting Practices Dividends And Distributions Surplus Restriction | 10% |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Feb. 28, 2022 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Mar. 31, 2021 USD ($) | Mar. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) policy | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |||
Related Party Transaction [Line Items] | |||||||||||||
Policy charges and fee income | $ 57,734 | [1] | $ 72,162 | [1] | $ 74,202 | ||||||||
Company's share of corporate expenses | 0 | 0 | 0 | ||||||||||
Net investment income | 98,392 | 100,491 | 82,995 | ||||||||||
Revenues | 67,950 | 251,243 | 193,837 | ||||||||||
Capital contribution | 325,400 | 100,000 | 0 | ||||||||||
Pruco Life | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Capital contribution | $ 100,000 | $ 175,000 | $ 125,000 | $ 100,000 | $ 2,000 | $ 100,000 | $ 1,000 | $ 85,000 | |||||
Return of Capital | 0 | 0 | 0 | ||||||||||
Dividend | 0 | 0 | 0 | ||||||||||
Prudential Insurance | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Stock option program plan expense | 100 | 100 | 100 | ||||||||||
Deferred compensation program expense | 400 | 400 | 600 | ||||||||||
Pension plan expense | 1,000 | 1,000 | 2,000 | ||||||||||
Welfare plan expense | $ 1,000 | 1,000 | 2,000 | ||||||||||
Defined contribution plan employer matching contribution percent | 4% | ||||||||||||
Defined contribution plan, cost recognized | $ 500 | 500 | 1,000 | ||||||||||
Number of corporate owned life insurance policies sold | policy | 3 | ||||||||||||
Affiliated Entity | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Accrued interest receivable related to long-term notes | 0 | 0 | $ 0 | 0 | |||||||||
Revenues | 0 | 0 | 100 | ||||||||||
Line of credit facility, maximum borrowing capacity | 200,000 | 200,000 | |||||||||||
Outstanding Debt | 0 | 0 | 0 | 0 | |||||||||
Interest expense related to loans payable | 0 | 0 | 0 | ||||||||||
Affiliated Entity | PAD | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Policy charges and fee income | 29,000 | 37,000 | 53,000 | ||||||||||
Affiliated Entity | ASTISI and Prudential Investments | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Revenue administrative sharing agreement | 30,000 | 36,000 | 33,000 | ||||||||||
Affiliated Entity | PGIM Investments | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Revenue administrative sharing agreement | 7,000 | 8,000 | 6,000 | ||||||||||
Affiliated Entity | PGIM | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Net investment income | 3,000 | 3,000 | 3,000 | ||||||||||
Pruco Life Insurance Company | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Company's share of corporate expenses | $ 12,000 | 10,000 | 9,000 | ||||||||||
Number of corporate owned life insurance policies sold | policy | 1 | ||||||||||||
Prudential Insurance and Prudential FInancial | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Life Insurance, Corporate or Bank Owned, amount | $ 2,946,000 | 3,465,000 | $ 2,946,000 | 3,465,000 | |||||||||
Fees related to Life Insurance, Corporate or Bank Owned, amount | $ 27,000 | 30,000 | 27,000 | ||||||||||
Company owned life policies mortality risk percentage assumed | 10% | 10% | |||||||||||
Company owned life policies mortality risk value assumed | $ 100 | $ 100 | |||||||||||
Prudential Financial Joint Venture | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Net investment income | 2,000 | 4,000 | $ 4,000 | ||||||||||
Other invested assets | $ 51,000 | $ 48,000 | $ 51,000 | $ 48,000 | |||||||||
[1]Amounts for the years ended December 31, 2022 and 2021 were adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Related Party Transactions (Aff
Related Party Transactions (Affiliated Notes Receivable) (Details) - Affiliated Entity - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | ||
Total long-term notes receivable - affiliated | $ 688 | $ 788 |
U.S. Dollar fixed rate notes | ||
Related Party Transaction [Line Items] | ||
Total long-term notes receivable - affiliated | $ 688 | $ 788 |
U.S. Dollar fixed rate notes | Minimum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 0% | |
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 Transfers) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | [2] | Dec. 31, 2020 | ||
Related Party Transaction [Line Items] | |||||
Realized investment gains (losses), net | $ 13,835 | [1] | $ 515 | $ 1,871 | |
Affiliated Entity | Prudential Insurance September 2021 Purchase Fixed Maturities | |||||
Related Party Transaction [Line Items] | |||||
Fair Value | 10,810 | ||||
Book Value | 10,520 | ||||
APIC, Net of Tax Increase/(Decrease) | (229) | ||||
Realized investment gains (losses), net | 0 | ||||
Affiliated Entity | Prudential Insurance September 2021 Sales Fixed Maturities | |||||
Related Party Transaction [Line Items] | |||||
Fair Value | 7,356 | ||||
Book Value | 6,477 | ||||
APIC, Net of Tax Increase/(Decrease) | 695 | ||||
Realized investment gains (losses), net | 0 | ||||
Affiliated Entity | Prudential Retirement Insurance & Annuity Co September 2021 Purchase Fixed Maturities | |||||
Related Party Transaction [Line Items] | |||||
Fair Value | 19,724 | ||||
Book Value | 19,724 | ||||
APIC, Net of Tax Increase/(Decrease) | 0 | ||||
Realized investment gains (losses), net | 0 | ||||
Affiliated Entity | Prudential Retirement Insurance & Annuity Co September 2021 Sale Fixed Maturities | |||||
Related Party Transaction [Line Items] | |||||
Fair Value | 22,557 | ||||
Book Value | 22,038 | ||||
APIC, Net of Tax Increase/(Decrease) | 0 | ||||
Realized investment gains (losses), net | 519 | ||||
Affiliated Entity | Prudential Insurance September 2021 Purchase Derivatives | |||||
Related Party Transaction [Line Items] | |||||
Fair Value | 715 | ||||
Book Value | 213 | ||||
APIC, Net of Tax Increase/(Decrease) | (396) | ||||
Realized investment gains (losses), net | 0 | ||||
Affiliated Entity | Prudential Retirement Insurance & Annuity Co September 2021 Purchase Derivatives | |||||
Related Party Transaction [Line Items] | |||||
Fair Value | 21 | ||||
Book Value | 21 | ||||
APIC, Net of Tax Increase/(Decrease) | 0 | ||||
Realized investment gains (losses), net | 0 | ||||
Affiliated Entity | Prudential Retirement Insurance & Annuity Co September 2021 Sale Derivatives | |||||
Related Party Transaction [Line Items] | |||||
Fair Value | 816 | ||||
Book Value | 233 | ||||
APIC, Net of Tax Increase/(Decrease) | 0 | ||||
Realized investment gains (losses), net | 583 | ||||
Affiliated Entity | Prudential Insurance August 2022 Purchase Fixed Maturities | |||||
Related Party Transaction [Line Items] | |||||
Fair Value | 21,389 | ||||
Book Value | 19,630 | ||||
APIC, Net of Tax Increase/(Decrease) | (1,390) | ||||
Realized investment gains (losses), net | $ 0 | ||||
[1]Amounts for the years ended December 31, 2022 and 2021 were adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[2]Amounts for the years ended December 31, 2022 and 2021 were adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
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 | 15 | $ 1 |
Allowance for credit losses | 0 | 0 |
Change in allowance for credit loss expense (reversal) | 0 | 0 |
Commitments | Investments | ||
Commitments and Contingent Liabilities [Line Items] | ||
Commitments to purchase investment (excluding commercial mortgage loans) | 62 | 61 |
Purchase Commitment | ||
Commitments and Contingent Liabilities [Line Items] | ||
Change in allowance for credit loss expense (reversal) | $ 0 | $ 0 |