Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 29, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-08052 | |
Entity Registrant Name | GLOBE LIFE INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 63-0780404 | |
Entity Address, Address Line One | 3700 South Stonebridge Drive | |
Entity Address, City or Town | McKinney | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75070 | |
City Area Code | 972 | |
Local Phone Number | 569-4000 | |
Title of 12(b) Security | Common Stock, $1.00 par value per share | |
Trading Symbol | GL | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Entity Central Index Key | 0000320335 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Common Stock, Shares Outstanding | 106,438,018 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Investments: | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2020—$16,371,944; 2019—$16,415,776, allowance for credit losses: 2020— $31,854; 2019— $0) | $ 17,879,541 | $ 18,907,147 |
Policy loans | 579,133 | 575,492 |
Other long-term investments (includes: 2020—$211,791; 2019—$185,851 under the fair value option) | 377,239 | 326,347 |
Short-term investments | 272,601 | 38,285 |
Total investments | 19,108,514 | 19,847,271 |
Cash | 90,370 | 75,933 |
Accrued investment income | 258,437 | 245,129 |
Other receivables | 441,740 | 441,662 |
Deferred acquisition costs | 4,386,478 | 4,341,941 |
Goodwill | 441,591 | 441,591 |
Other assets | 624,784 | 583,933 |
Total assets | 25,351,914 | 25,977,460 |
Liabilities: | ||
Future policy benefits | 14,617,072 | 14,508,134 |
Unearned and advance premium | 67,868 | 63,709 |
Policy claims and other benefits payable | 364,276 | 365,402 |
Other policyholders' funds | 96,525 | 96,282 |
Total policy liabilities | 15,145,741 | 15,033,527 |
Current and deferred income taxes | 1,295,024 | 1,476,832 |
Short-term debt | 458,127 | 298,738 |
Long-term debt (estimated fair value: 2020—$1,386,511; 2019—$1,473,364) | 1,346,795 | 1,348,988 |
Other liabilities | 585,945 | 525,068 |
Total liabilities | 18,831,632 | 18,683,153 |
Commitments and Contingencies (Note 5) | ||
Shareholders' equity: | ||
Preferred stock, par value $1 per share—5,000,000 shares authorized; outstanding: 0 in 2020 and 2019 | 0 | 0 |
Common stock, par value $1 per share—320,000,000 shares authorized; outstanding: (2020—117,218,183 issued; 2019— 117,218,183 issued) | 117,218 | 117,218 |
Additional paid-in-capital | 519,428 | 531,554 |
Accumulated other comprehensive income (loss) | 1,066,247 | 1,844,830 |
Retained earnings | 5,686,431 | 5,551,329 |
Treasury stock, at cost: (2020—10,783,915 shares; 2019—9,497,940 shares) | (869,042) | (750,624) |
Total shareholders' equity | 6,520,282 | 7,294,307 |
Total liabilities and shareholders' equity | $ 25,351,914 | $ 25,977,460 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fixed maturities, available for sale, amortized cost | $ 16,371,944 | $ 16,415,776 |
Fixed maturities, available for sale, allowance for credit losses | 31,854 | 0 |
Other long-term investments under fair value option | 377,239 | 326,347 |
Total long-term debt, fair value | $ 1,386,511 | $ 1,473,364 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 320,000,000 | 320,000,000 |
Common stock, shares issued (in shares) | 117,218,183 | 117,218,183 |
Common stock, shares outstanding (in shares) | 117,218,183 | 117,218,183 |
Common stock, shares held in treasury (in shares) | 10,783,915 | 9,497,940 |
Partnership Interest - Fair Value Option | Investment in limited partnerships | ||
Other long-term investments under fair value option | $ 211,791 | $ 185,851 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue: | ||
Premium | $ 929,835 | $ 890,973 |
Net investment income | 228,991 | 226,673 |
Realized gains (losses) | (26,097) | 1,329 |
Other income | 325 | 241 |
Total revenue | 1,133,054 | 1,119,216 |
Benefits and expenses: | ||
Life policyholder benefits | 421,670 | 409,692 |
Health policyholder benefits | 178,711 | 170,017 |
Other policyholder benefits | 7,588 | 8,048 |
Total policyholder benefits | 607,969 | 587,757 |
Amortization of deferred acquisition costs | 143,837 | 135,822 |
Commissions, premium taxes, and non-deferred acquisition costs | 78,937 | 73,465 |
Other operating expense | 78,582 | 72,793 |
Interest expense | 20,808 | 21,278 |
Total benefits and expenses | 930,133 | 891,115 |
Income before income taxes | 202,921 | 228,101 |
Income tax benefit (expense) | (37,381) | (42,707) |
Income from continuing operations | 165,540 | 185,394 |
Loss (income) from discontinued operations, net of income taxes | 0 | (49) |
Net income | $ 165,540 | $ 185,345 |
Basic net income (loss) per common share: | ||
Continuing operations (in dollars per share) | $ 1.54 | $ 1.68 |
Discontinued operations (in dollars per share) | 0 | 0 |
Total basic net income per common share (in dollars per share) | 1.54 | 1.68 |
Diluted net income (loss) per common share: | ||
Continuing operations (in dollars per share) | 1.52 | 1.65 |
Discontinued operations (in dollars per share) | 0 | 0 |
Total diluted net income per common share (in dollars per share) | $ 1.52 | $ 1.65 |
Life premium | ||
Revenue: | ||
Premium | $ 649,630 | $ 624,289 |
Health premium | ||
Revenue: | ||
Premium | $ 280,205 | $ 266,684 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net income | $ 165,540 | $ 185,345 |
Unrealized gains (losses) on securities: | ||
Unrealized gains (losses) | (962,641) | 694,939 |
Less applicable tax (expense) benefit | 202,150 | (145,936) |
Unrealized gains (losses) on investments, net of tax | (760,491) | 549,003 |
Deferred acquisition costs: | ||
Unrealized gains (losses) attributable to deferred acquisition costs | 383 | (3,199) |
Less applicable tax (expense) benefit | (80) | 671 |
Unrealized gains (losses) attributable to deferred acquisition costs, net of tax | 303 | (2,528) |
Foreign exchange translation: | ||
Foreign exchange translation adjustments, other than securities | (27,442) | 3,089 |
Less applicable tax (expense) benefit | 5,763 | (647) |
Foreign exchange translation adjustments, other than securities, net of tax | (21,679) | 2,442 |
Pension: | ||
Amortization of pension costs | 4,157 | 2,120 |
Less applicable tax (expense) benefit | (873) | (445) |
Pension adjustments, net of tax | 3,284 | 1,675 |
Other comprehensive income (loss) | (778,583) | 550,592 |
Comprehensive income (loss) | (613,043) | 735,937 |
Securities | ||
Unrealized gains (losses) on securities: | ||
Unrealized holding gains (losses) arising during period | (977,936) | 693,482 |
Other reclassification adjustments included in net income | 28,412 | (2,444) |
Foreign exchange adjustment on securities recorded at fair value | (2,397) | (142) |
Unrealized gains (losses) | (951,921) | 690,896 |
Other investments | ||
Unrealized gains (losses) on securities: | ||
Unrealized gains (losses) | $ (10,720) | $ 4,043 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Adoption of accounting standard | ASU 2016-02 | [1] | $ (497) | $ (497) | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | 5,414,680 | $ 0 | $ 121,218 | $ 524,414 | $ 319,475 | 5,212,971 | $ (763,398) | |
Beginning balance at Dec. 31, 2018 | 5,415,177 | 0 | 121,218 | 524,414 | 319,475 | 5,213,468 | (763,398) | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Comprehensive income (loss) | 735,937 | 550,592 | 185,345 | |||||
Common dividends declared | (18,943) | (18,943) | ||||||
Acquisition of treasury stock | (110,896) | (110,896) | ||||||
Stock-based compensation | 10,559 | (5,885) | (6,817) | 23,261 | ||||
Exercise of stock options | 12,089 | (7,736) | 19,825 | |||||
Ending balance at Mar. 31, 2019 | 6,043,426 | 0 | 121,218 | 518,529 | 870,067 | 5,364,820 | (831,208) | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Adoption of accounting standard | ASU 2016-13 | [2] | (454) | (454) | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | 7,293,853 | 0 | 117,218 | 531,554 | 1,844,830 | 5,550,875 | (750,624) | |
Beginning balance at Dec. 31, 2019 | 7,294,307 | 0 | 117,218 | 531,554 | 1,844,830 | 5,551,329 | (750,624) | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Comprehensive income (loss) | (613,043) | (778,583) | 165,540 | |||||
Common dividends declared | (19,963) | (19,963) | ||||||
Acquisition of treasury stock | (166,729) | (166,729) | ||||||
Stock-based compensation | 9,356 | (12,126) | (482) | 21,964 | ||||
Exercise of stock options | 16,808 | (9,539) | 26,347 | |||||
Ending balance at Mar. 31, 2020 | $ 6,520,282 | $ 0 | $ 117,218 | $ 519,428 | $ 1,066,247 | $ 5,686,431 | $ (869,042) | |
[1] | Adoption of ASU 2016-02, Leases (Topic 842) , on January 1, 2019. | |||||||
[2] | Adoption of Accounting Standard Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, on January 1, 2020. See more information in Note 2, New Accounting Standards . |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Common dividends declared, per share (in dollars per share) | $ 0.1875 | $ 0.1725 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Cash Flows [Abstract] | ||
Cash provided from (used for) operating activities | $ 343,554 | $ 423,285 |
Cash provided from (used for) investing activities: | ||
Fixed maturities available for sale—sold | 50,360 | 34,997 |
Fixed maturities available for sale—matured or other redemptions | 167,387 | 188,253 |
Other long-term investments | 231 | 0 |
Total investments sold or matured | 217,978 | 223,250 |
Acquisition of investments: | ||
Fixed maturities—available for sale | (211,754) | (421,111) |
Other long-term investments | (49,896) | (22,971) |
Total investments acquired | (261,650) | (444,082) |
Net (increase) decrease in policy loans | (3,641) | (5,390) |
Net (increase) decrease in short-term investments | (234,316) | (62,471) |
Additions to properties | (9,316) | (7,015) |
Sale of other assets | 13 | 0 |
Investments in low-income housing interests | (20,743) | (10,054) |
Cash provided from (used for) investing activities | (311,675) | (305,762) |
Cash provided from (used for) financing activities: | ||
Issuance of common stock | 16,808 | 11,592 |
Cash dividends paid to shareholders | (18,588) | (17,696) |
Repayment of debt | (1,875) | (1,250) |
Net borrowing (repayment) of commercial paper | 158,764 | (14,095) |
Acquisition of treasury stock | (166,729) | (110,896) |
Net receipts (payments) from deposit-type products | (19,651) | (37,136) |
Cash provided from (used for) financing activities | (31,271) | (169,481) |
Effect of foreign exchange rate changes on cash | 13,829 | (1,726) |
Net increase (decrease) in cash | 14,437 | (53,684) |
Cash at beginning of year | 75,933 | 121,026 |
Cash at end of period | $ 90,370 | $ 67,342 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1—Significant Accounting Policies Business : "Globe Life" and the "Company" refer to Globe Life Inc., an insurance holding company incorporated in Delaware in 1979, and Globe Life Inc. subsidiaries and affiliates. Globe Life Inc.'s primary subsidiaries are Globe Life And Accident Insurance Company, American Income Life Insurance Company, Liberty National Life Insurance Company, Family Heritage Life Insurance Company of America, and United American Insurance Company. Basis of Presentation: The accompanying condensed consolidated financial statements of Globe Life have been prepared in accordance with the instructions to Form 10-Q. Therefore, they do not include all of the disclosures required by accounting principles generally accepted in the United States of America (GAAP) for annual financial statements. However, in the opinion of management, these statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the condensed consolidated financial position at March 31, 2020, and the condensed consolidated results of operations, comprehensive income, and cash flows for the periods ended March 31, 2020 and 2019. The interim period condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements that are included in the Form 10-K filed with the Securities Exchange Commission (SEC) on February 27, 2020. Significant Accounting Policies : The following accounting policies were updated since the 2019 Form 10-K due to the adoption of ASU 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13.) On January 1, 2020, the Company adopted ASU 2016-13, replacing the GAAP "incurred loss" model with a new methodology referred to as current expected credit losses (CECL). The previous methodology delayed recognition of credit losses until it was probable that a loss had incurred, ultimately resulting in fewer instances of losses being recorded in earnings. The new CECL methodology is forward looking—encompassing relevant information about historical experience, current conditions, as well as reasonable and supportable forecasts that affect the collectability of a reported amount. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables. The standard affected the Company's commercial mortgage loan participations ( Other long-term investments ) and agent debit balances ( Other receivables ). The Company adopted the standard using the modified retrospective method for the commercial mortgage loan participations and agent debit balances. The Company recorded a cumulative effect adjustment of $454 thousand to retained earnings, consisting of $265 thousand, net of tax and $189 thousand, net of tax for commercial mortgage loan participations and agent debit balances, respectively. Refer to the table below and Note 4 for additional details. As reported on December 31, 2019 Pre-tax impact of adoption As reported on January 1, 2020 Assets: Commercial mortgage loan participations $ 137,692 $ (335) $ 137,357 Agent debit balances 423,877 (240) 423,637 In addition, the standard made changes to the accounting for available-for-sale debt securities through the removal of "other-than-temporary-impairment" (OTTI) write downs and replaced it with allowances for credit losses. The new methodology will allow the Company to record reversals of credit losses in situations where the estimate of credit losses declines through current period net income ( Realized gains (losses) ). The Company adopted the standard using the prospective transition approach for available-for-sale fixed maturities for which other-than-temporary impairment had been recognized prior to January 1, 2020. As a result, the amortized cost basis and the effective interest rate remain unchanged after the adoption of ASU 2016-13. Amortized cost will now be reflected as "amortized cost, net of allowance for credit losses" or "amortized cost, net." The Company has not elected the fair value option for any financial assets recorded at amortized cost that would be in scope of this standard. Investments, Available-For-Sale Fixed Maturities : Globe Life classifies all of its fixed maturity investments as available for sale. Investments classified as available for sale are carried at fair value with unrealized gains and losses, net of taxes reflected directly in Accumulated other comprehensive income ("AOCI"). Income from investments is recorded in net investment income on the Consolidated Statement s of Operations . Gains and losses from sales, maturities, or other redemptions of investments are recorded in Realized gains (losses) . Interest income and prepayment fees are recognized when earned. Premiums and discounts are amortized using the interest method. When amortized cost of a callable debt security exceeds the first call price, the premium is amortized to the earliest call date. Otherwise, the period of amortization or accretion generally extends from the purchase date to the maturity date. Accrued investment income consists of interest income or dividends earned on the investment portfolio, but which are yet to be received as of the balance sheet date. The Company will write-off accrued investment income that is deemed to be uncollectible related to the fixed maturities. As a practical expedient, the Company excludes the accrued investment income from the amortized cost basis of the fixed maturity and separately reports it in another financial statement line item, Accrued Investment Income . Additionally, the amount will be excluded from disclosures within Note 4 . Investments, Allowance For Credit Losses For Available-For-Sale Fixed Maturities : At the onset of the evaluation, the Company individually assesses each fixed maturity to determine whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria are met, the Company will write down the fixed maturity's amortized cost basis to fair value through Realized gains (losses) . If neither of the aforementioned criteria are met, the Company will evaluate whether the decline in fair value has resulted from a credit event. The Company will evaluate many factors, as further described below, to determine the present value of the expected cash flows. A credit loss occurs when the present value of the expected cash flows is less than the amortized cost basis. This will result in the recording of an allowance for credit losses as a contra asset account to the amortized cost basis with an offsetting provision for credit losses in Realized gains (losses) on the Condensed Consolidated S tatement of Operation s . Additionally, the CECL methodology includes a fair value floor where the allowance for credit loss for a security cannot exceed the difference between fair value and amortized cost. When it is determined that there is not a credit loss, the decline in fair value is recognized in Other comprehensive income. All changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses recorded to the allowance for credit losses are management's best estimate of the uncollectibility of principal and interest of a fixed maturity. The evaluation of Globe Life's securities for credit losses is a process that is undertaken at least quarterly and is overseen by a team of investment and accounting professionals. The process for making this determination is highly subjective and involves the careful consideration of many factors. The factors considered include, but are not limited to: • The Company’s ability and intent to hold the security until anticipated recovery • The reason(s) for the impairment • The financial condition of the issuer and the prospects for recovery in fair value of the security • Expected future cash flows The relative weight given to each of these factors can change over time as facts and circumstances change. In many cases, management believes it is appropriate to give more consideration to prospective factors than to retrospective factors. Prospective factors that are given more weight include prospects for recovery, the Company’s ability and intent to hold the security until anticipated recovery, and expected future cash flows. Among the facts and information considered in the process are: • Financial statements of the issuer • Changes in credit ratings of the issuer • The value of underlying collateral • News and information included in press releases issued by the issuer • News and information reported in the media concerning the issuer • News and information published by or otherwise provided by securities, economic, or research analysts • The nature and amount of recent and expected future sources and uses of cash • Default on a required payment • Issuer bankruptcy filings The expected cash flows are determined using judgment and the best information available to the Company. Inputs used to derive expected cash flows generally include expected default rates, current levels of subordination, and estimated recovery rate. The discount rate utilized in the discounted cash flows is the effective interest rate, which is the rate of return implicit in the asset at acquisition. Investments, Commercial Mortgage Loan Participations (Commercial Mortgage Loans) : Commercial mortgage loans, a type of investment where the commercial mortgage loan is shared among investors, are accounted for as financing receivables. The commercial mortgage loans are managed by a third-party. The Company purchased the legal rights to interests in commercial mortgage loans that are secured by properties such as hotels, retail, multiple family, or offices. The commercial mortgage loans typically have a term of three years with an option to extend up to two years. The commercial mortgage loans are recorded at unpaid principal balance, net of unamortized origination fees and net of allowance for loan losses. Interest income, net of the amortization of origination fees, is recorded in Net investment income under the effective yield method. Accrued investment income on the C ond ensed Consolidated Balance Sheets consists of interest income earned on the commercial mortgage loan portfolio, but are yet to be received as of the balance sheet date. Accrued investment income that is deemed to be uncollectible will be written off. As a practical expedient, the Company excludes the accrued investment income from the amortized cost basis of the commercial mortgage loans and separately reports it in another financial statement line item, Accrued investment income . Additionally, the amount will be excluded from disclosures within Note 4 . As of March 31, 2020, the accrued interest receivable for commercial mortgage loans was $454 thousand. Commercial mortgage loans generally pay interest monthly, therefore accrued interest is typically for a period of 30 days or less. The unfunded commitment balance was $87 million as of March 31, 2020. The Company evaluates the performance and credit quality of the commercial mortgage loan portfolio at least on a quarterly basis, or as needed, by utilizing common metrics such as loan-to-value and debt service coverage ratios as well as evaluating the fair value of the underlying collateral. The fair value of the underlying collateral is based on a third-party appraisal of the property at origination of the loan, and is reviewed on an annual basis thereafter, or more frequently when a loan is materially underperforming, 30 days delinquent, or in technical default. The Company determines the probability of estimated losses for the commercial mortgage loan portfolio and records an allowance if conclusions are reached that the collection of principal and interest are not probable. The allowance for credit losses is based on estimates, historical experience, probability of loss, value of the underlying collateral, and macro factors that affect the collectibility of the loan. All assumptions are reviewed and updated as necessary. If Management determines that foreclosure of a particular property is probable, the Company may elect the practical expedient to estimate that expected credit losses are based on the fair value of the property less amortized cost, adjusted for selling and other associated costs. Other Receivables, Agent Debit Balances : Agent debit balances primarily represent commissions advanced to insurance agents, a common industry practice. These balances are repaid to the Company over time, generally one year, as the premiums associated with the advanced commissions are collected by the Company and a portion of the agents' commissions on such premiums are retained in order to repay the balances. The balances were $424 million at March 31, 2020 and December 31, 2019. When an agent sells a policy, commissions are advanced to the agent, and the collection of the advance is made as long as the policy stays in force. While there is a susceptibility to loss should an agent terminate, the ability of the Company to continue to collect an agent's commission streams over time from prior sales of policies reduces the Company's exposure to loss. The Company has a very low inherent risk with regards to the collection of agent debit balances and views these balances as recoverable since they are, in aggregate, less than the estimated present value of future commissions discounted at a conservative rate which includes assumptions for lapses and mortality. The Company’s security, or collateral, is in the form of future commission streams collected over the life of the policies sold by the respective agents, which ultimately revert to the Company in the event an agent is terminated. The Company evaluated the agent debit balances on a pool basis to determine the allowance for credit losses as the loans have similar characteristics. A provision for credit losses will be recorded in Realized gains (losses) on the Condensed Consolidated Statement of Operations and the asset balance will be reflected as Agent Debit Balances, net of allowance for credit losses ( Other receivables ). Based on factors considered by management, there were no additional credit losses recorded during the three months ended March 31, 2020. As of March 31, 2020, the allowance for credit losses was $1.2 million compared with $1.0 million as of December 31, 2019. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | Note 2—New Accounting Standards Accounting Pronouncements Adopted in the Current Year Standard Description Effective Date Effect on the Consolidated Financial Statements ASU No. 2016-13/2019-04/2019-05 , Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, with clarification guidance issued in April 2019. This standard ("CECL") provides financial statement users with more decision-useful information about the expected credit losses on financial instruments that are recorded at amortized cost. Additionally, it changes the loss impairment methodology for available-for-sale fixed maturities by the use of an allowance rather than a direct write down. This standard became effective on January 1, 2020. The Company's available-for-sale fixed maturities and other financing receivables (commercial mortgage loans and agent debit balances) were concluded to be the relevant financial assets within the scope of the standard. See Note 1 for information on the adoption and revised accounting policies. ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting This standard was issued primarily to provide optional expedients for simplifying the accounting for contract modifications to existing agreements, which is expected to arise from the market's transition from LIBOR to the secured overnight financing rate (SOFR) as a result of reference rate reform. This standard became effective upon issuance, or March 12, 2020, and will remain effective until December 31, 2022. The Company has limited assets and liabilities that utilize LIBOR as a benchmark rate. We will continue to monitor the progress towards the establishment of a new floating rate; however, we do not expect a material impact at this time. Accounting Pronouncements Yet to be Adopted Standard Description Effective Date Effect on the Consolidated Financial Statements ASU No. 2018-12/2019-09 , Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, with clarification guidance issued in November 2019. ASU 2018-12 is a significant change to our current accounting and disclosure of long-duration contracts, which is our primary business. The guidance was primarily issued to: 1) improve the timeliness of recognizing changes in the liability for future policy benefits and modify the rate used to discount future cash flows, 2) simplify and improve the accounting for certain market-based options or guarantees associated with deposit (or account balance) contracts, 3) simplify the amortization of deferred acquisition costs, and 4) improve the effectiveness of the required disclosures. This standard is effective beginning January 1, 2022. Early adoption of the amendments is permitted. The Company is currently in the process of evaluating the impact this standard will have on the consolidated financial statements and disclosures, specifically assessing key accounting policies, assumption and data inputs, controls, and enhanced system solutions. ASU No. 2018-14 , Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20), Changes to the Disclosure Requirements for Defined Benefit Plans The standard removes disclosures that are no longer considered cost beneficial, clarifies the specific requirements of disclosures and adds disclosure requirements identified as relevant to defined benefit plans. This standard is effective beginning January 1, 2021, and will be applied retrospectively. Early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on the consolidated financial statements. |
Supplemental Information about
Supplemental Information about Changes to Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Supplemental Information about Changes to Accumulated Other Comprehensive Income | Note 3—Supplemental Information about Changes to Accumulated Other Comprehensive Income Components of Accumulated Other Comprehensive Income : An analysis of the change in balance by component of Accumulated Other Comprehensive Income is as follows for the three month periods ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 Available Deferred Foreign Pension Total Balance at January 1, 2020 $ 1,982,650 $ (5,916) $ 12,058 $ (143,962) $ 1,844,830 Other comprehensive income (loss) before reclassifications, net of tax (782,936) 303 (21,679) — (804,312) Reclassifications, net of tax 22,445 — — 3,284 25,729 Other comprehensive income (loss) (760,491) 303 (21,679) 3,284 (778,583) Balance at March 31, 2020 $ 1,222,159 $ (5,613) $ (9,621) $ (140,678) $ 1,066,247 Three Months Ended March 31, 2019 Available Deferred Foreign Pension Total Balance at January 1, 2019 $ 435,698 $ (4,163) $ 6,495 $ (118,555) $ 319,475 Other comprehensive income (loss) before reclassifications, net of tax 550,934 (2,528) 2,442 — 550,848 Reclassifications, net of tax (1,931) — — 1,675 (256) Other comprehensive income (loss) 549,003 (2,528) 2,442 1,675 550,592 Balance at March 31, 2019 $ 984,701 $ (6,691) $ 8,937 $ (116,880) $ 870,067 Reclassification adjustments : Reclassification adjustments out of Accumulated Other Comprehensive Income are presented below for the three month periods ended March 31, 2020 and 2019. Three Months Ended March 31, Affected line items in the Statement of Operations Component Line Item 2020 2019 Unrealized investment (gains) losses on available for sale assets: Realized (gains) losses $ 26,920 $ (3,670) Realized (gains) losses Amortization of (discount) premium 1,492 1,226 Net investment income Total before tax 28,412 (2,444) Tax (5,967) 513 Income taxes Total after-tax 22,445 (1,931) Pension adjustments: Amortization of prior service cost 158 158 Other operating expense Amortization of actuarial (gain) loss 3,999 1,962 Other operating expense Total before tax 4,157 2,120 Tax (873) (445) Income taxes Total after-tax 3,284 1,675 Total reclassification (after-tax) $ 25,729 $ (256) |
Investments
Investments | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Note 4—Investments Portfolio Composition : Summaries of fixed maturities available for sale by amortized cost, fair value, and allowance for credit losses at March 31, 2020 and December 31, 2019, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) are as follows. Redeemable preferred stock is included within the corporates by sector. As noted in N ote 1 , the Company prospectively adopted ASU 2016-13 as of January 1, 2020 for the available-for-sale fixed maturities. Results after January 1, 2020 are presented under ASU 2016-13, while prior periods continue to be reported in accordance with previously applicable GAAP. See additional discussion of the allowance for credit losses later in this note. At March 31, 2020 Allowance for Credit Losses Gross Gross Fair Value (1) % of Total Fixed Maturities (2) Fixed maturities available for sale: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 374,781 $ — $ 80,894 $ (124) $ 455,551 2 States, municipalities, and political subdivisions 1,582,294 — 161,591 (4,411) 1,739,474 10 Foreign governments 22,403 — 2,098 (196) 24,305 — Corporates, by sector: Financial 4,107,145 — 545,127 (91,331) 4,560,941 26 Utilities 1,927,517 — 346,826 (10,468) 2,263,875 13 Energy 1,662,009 (31,854) 71,866 (235,753) 1,466,268 8 Other corporate sectors 6,507,502 — 761,004 (92,273) 7,176,233 40 Total corporates 14,204,173 (31,854) 1,724,823 (429,825) 15,467,317 87 Collateralized debt obligations 56,733 — 21,764 (10,124) 68,373 — Other asset-backed securities 131,560 — 392 (7,431) 124,521 1 Total fixed maturities $ 16,371,944 $ (31,854) $ 1,991,562 $ (452,111) $ 17,879,541 100 (1) Amount reported in the balance sheet. (2) At fair value. At December 31, 2019 Amortized Gross Gross Fair Value (1) % of Total Fixed Maturities (2) Fixed maturities available for sale: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 396,079 $ 41,737 $ (296) $ 437,520 2 States, municipalities, and political subdivisions 1,559,736 158,546 (626) 1,717,656 9 Foreign governments 25,874 2,073 (396) 27,551 — Corporates, by sector: Financial 4,101,917 701,196 (22,307) 4,780,806 25 Utilities 1,937,738 416,114 (1,565) 2,352,287 13 Energy 1,678,969 269,640 (33,725) 1,914,884 10 Other corporate sectors 6,514,677 955,908 (16,765) 7,453,820 40 Total corporates 14,233,301 2,342,858 (74,362) 16,501,797 88 Collateralized debt obligations 56,990 24,298 (7,184) 74,104 — Other asset-backed securities 143,796 5,094 (371) 148,519 1 Total fixed maturities $ 16,415,776 $ 2,574,606 $ (83,235) $ 18,907,147 100 (1) Amount reported in the balance sheet. (2) At fair value. A schedule of fixed maturities available for sale by contractual maturity date at March 31, 2020 is shown below on an amortized cost, net of allowance for credit losses basis and on a fair value basis. Actual disposition dates could differ from contractual maturities due to call or prepayment provisions. At March 31, 2020 Amortized Fair Fixed maturities available for sale: Due in one year or less $ 51,897 $ 52,538 Due after one year through five years 668,783 705,821 Due after five years through ten years 1,684,359 1,852,455 Due after ten years through twenty years 5,647,201 6,462,058 Due after twenty years 8,099,163 8,613,350 Mortgage-backed and asset-backed securities 188,687 193,319 $ 16,340,090 $ 17,879,541 Analysis of Investment Operations: Net investment income for the three month periods ended March 31, 2020 and 2019 is summarized as follows: Three Months Ended 2020 2019 % Fixed maturities available for sale $ 217,127 $ 215,763 1 Policy loans 11,118 10,636 5 Other long-term investments (1) 4,623 3,388 36 Short-term investments 307 819 (63) 233,175 230,606 1 Less investment expense (4,184) (3,933) 6 Net investment income $ 228,991 $ 226,673 1 (1) For three months ended March 31, 2020 and 2019, the investment funds, accounted for under the fair value option method, recorded $2.0 million and $1.3 million, respectively in net investment income. Selected information about sales of fixed maturities available for sale is as follows: Three Months Ended 2020 2019 Fixed maturities available for sale: Proceeds from sales (1) $ 50,360 $ 34,997 Gross realized gains 2,642 46 Gross realized losses — (3,027) (1) There were no unsettled sales in the periods ended March 31, 2020 and 2019. An analysis of realized gains (losses) is as follows: Three Months Ended 2020 2019 Realized investment gains (losses): Fixed maturities available for sale: Sales and other (1) $ 4,934 $ 3,670 Provision for credit losses (31,854) — Fair value option—change in fair value 583 (2,185) Other investments 240 (156) Realized gains (losses) from investments (26,097) 1,329 Applicable tax 5,480 (279) Realized gains (losses), net of tax $ (20,617) $ 1,050 (1) During the three months ended March 31, 2020 and 2019, the Company recorded $5.9 million and $68.9 million of exchanges of fixed maturities (noncash transactions) that resulted in $0 and $5.8 million, respectively in realized gains (losses). Fair Value Measurements: The following tables represent the fair value of fixed maturities measured on a recurring basis at March 31, 2020 and December 31, 2019: Fair Value Measurement at March 31, 2020 Using: Quoted Prices in Significant Other Significant Total Fair Fixed maturities available for sale U.S. Government direct, guaranteed, and government-sponsored enterprises $ — $ 455,551 $ — $ 455,551 States, municipalities, and political subdivisions — 1,739,474 — 1,739,474 Foreign governments — 24,305 — 24,305 Corporates, by sector: Financial — 4,421,164 139,777 4,560,941 Utilities — 2,116,566 147,309 2,263,875 Energy — 1,433,768 32,500 1,466,268 Other corporate sectors — 6,877,424 298,809 7,176,233 Total corporates — 14,848,922 618,395 15,467,317 Collateralized debt obligations — — 68,373 68,373 Other asset-backed securities — 111,754 12,767 124,521 Total fixed maturities $ — $ 17,180,006 $ 699,535 $ 17,879,541 Percentage of total — % 96 % 4 % 100 % Fair Value Measurement at December 31, 2019 Using: Quoted Prices in Significant Other Significant Total Fair Fixed maturities available for sale U.S. Government direct, guaranteed, and government-sponsored enterprises $ — $ 437,520 $ — $ 437,520 States, municipalities, and political subdivisions — 1,717,656 — 1,717,656 Foreign governments — 27,551 — 27,551 Corporates, by sector: Financial — 4,628,875 151,931 4,780,806 Utilities — 2,195,539 156,748 2,352,287 Energy — 1,873,482 41,402 1,914,884 Other corporate sectors — 7,131,773 322,047 7,453,820 Total corporates — 15,829,669 672,128 16,501,797 Collateralized debt obligations — — 74,104 74,104 Other asset-backed securities — 135,342 13,177 148,519 Total fixed maturities $ — $ 18,147,738 $ 759,409 $ 18,907,147 Percentage of total — % 96 % 4 % 100 % The following tables represent changes in fixed maturities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Asset- backed Securities Collateralized Corporates Total Balance at January 1, 2020 $ 13,177 $ 74,104 $ 672,128 $ 759,409 Included in realized gains / losses — — 1,213 1,213 Included in other comprehensive income (276) (5,475) (34,072) (39,823) Acquisitions — — — — Sales — — — — Amortization — 1,139 2 1,141 Other (1) (134) (1,395) (20,876) (22,405) Transfers into Level 3 (2) — — — — Transfers out of Level 3 (2) — — — — Balance at March 31, 2020 $ 12,767 $ 68,373 $ 618,395 $ 699,535 Percent of total fixed maturities — % 0.4 % 3.5 % 3.9 % (1) Includes capitalized interest, foreign exchange adjustments, and principal repayments. (2) Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available. Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Asset- backed Securities Collateralized Corporates Total Balance at January 1, 2019 $ 12,982 $ 73,369 $ 553,471 $ 639,822 Included in realized gains / losses — — — — Included in other comprehensive income 298 4,176 10,663 15,137 Acquisitions — — — — Sales — — — — Amortization — 1,162 3 1,165 Other (1) (126) (1,458) (1,817) (3,401) Transfers into Level 3 (2) — — — — Transfers out of Level 3 (2) — — — — Balance at March 31, 2019 $ 13,154 $ 77,249 $ 562,320 $ 652,723 Percent of total fixed maturities 0.1 % 0.4 % 3.3 % 3.8 % (1) Includes capitalized interest, foreign exchange adjustments, and principal repayments. (2) Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available. The following table presents changes in unrealized gains or (losses) for the period included in other comprehensive income for assets held at the end of the reporting period for Level 3s: Changes in Unrealized Gains/Losses included in Other Comprehensive Income for Assets Held at the End of the Period Asset- Collateralized Corporates Total At March 31, 2020 $ (276) $ (5,475) $ (34,072) $ (39,823) At March 31, 2019 298 4,176 10,663 15,137 Unrealized Loss Analysis : The following table discloses information about fixed maturities available for sale in an unrealized loss position. Less than Twelve Months Twelve Months or Longer Total Number of issues (CUSIPs) held: As of March 31, 2020 348 34 382 As of December 31, 2019 82 51 133 Globe Life's entire fixed maturity portfolio consisted of 1,676 issues at March 31, 2020 and 1,633 issues at December 31, 2019. The weighted-average quality rating of all unrealized loss positions at amortized cost as of March 31, 2020 was BBB compared with BBB- as of December 31, 2019. The increase in quality rating is primarily attributed to an overall increase in market rates that caused certain higher rated securities to move from an unrealized gain position to an unrealized loss position. The following table discloses unrealized investment losses by class and major sector of fixed maturities available for sale for which an allowance for credit losses has not been recorded at March 31, 2020. Analysis of Gross Unrealized Investment Losses At March 31, 2020 Less than Twelve Months Twelve Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities available for sale: Investment grade securities: U.S. Government direct, guaranteed, and government-sponsored enterprises $ — $ — $ 1,896 $ (124) $ 1,896 $ (124) States, municipalities and political subdivisions 133,114 (4,411) — — 133,114 (4,411) Foreign governments 5,751 (196) — — 5,751 (196) Corporates, by sector: Financial 662,300 (43,549) 5,105 (3,395) 667,405 (46,944) Utilities 158,406 (3,790) — — 158,406 (3,790) Energy 815,807 (172,760) 1,218 (730) 817,025 (173,490) Other corporate sectors 1,006,257 (62,923) 27,162 (2,656) 1,033,419 (65,579) Total corporates 2,642,770 (283,022) 33,485 (6,781) 2,676,255 (289,803) Other asset-backed securities 79,404 (5,992) 8 — 79,412 (5,992) Total investment grade securities 2,861,039 (293,621) 35,389 (6,905) 2,896,428 (300,526) Below investment grade securities: States, municipalities and political subdivisions — — — — — — Corporates, by sector: Financial 19,232 (3,397) 91,734 (40,990) 110,966 (44,387) Utilities 27,081 (3,405) 12,976 (3,273) 40,057 (6,678) Energy 56,412 (30,872) 30,509 (31,391) 86,921 (62,263) Other corporate sectors 125,431 (10,434) 63,801 (16,260) 189,232 (26,694) Total corporates 228,156 (48,108) 199,020 (91,914) 427,176 (140,022) Collateralized debt obligations — — 9,876 (10,124) 9,876 (10,124) Other asset-backed securities — — 12,736 (1,439) 12,736 (1,439) Total below investment grade securities 228,156 (48,108) 221,632 (103,477) 449,788 (151,585) Total fixed maturities $ 3,089,195 $ (341,729) $ 257,021 $ (110,382) $ 3,346,216 $ (452,111) Gross unrealized losses may fluctuate quarter over quarter due to adverse factors in the market that affect our holdings, such as changes in interest rates or credit spreads. As noted in Note 1 , the Company considers many factors when determining whether a credit loss exists. While the Company holds securities that may be in an unrealized loss position from time to time, Globe Life does not intend to sell and it is likely that Management will not be required to sell the fixed maturities prior to their anticipated recovery due to the strong cash flows generated by its insurance operations. The following table discloses unrealized investment losses by class and major sector of fixed maturities available for sale at December 31, 2019. Globe Life considered these investments to be only temporarily impaired. Analysis of Gross Unrealized Investment Losses At December 31, 2019 Less than Twelve Months Twelve Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities available for sale: Investment grade securities: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 1,255 $ (2) $ 21,044 $ (294) $ 22,299 $ (296) States, municipalities and political subdivisions 66,774 (626) — — 66,774 (626) Foreign governments 6,496 (396) — — 6,496 (396) Corporates, by sector: Financial 117,389 (1,733) 7,183 (1,317) 124,572 (3,050) Utilities 8,400 (166) — — 8,400 (166) Energy 52,312 (1,058) 1,833 (115) 54,145 (1,173) Other corporate sectors 136,386 (1,584) 61,473 (3,260) 197,859 (4,844) Total corporates 314,487 (4,541) 70,489 (4,692) 384,976 (9,233) Other asset-backed securities — — — — — — Total investment grade securities 389,012 (5,565) 91,533 (4,986) 480,545 (10,551) Below investment grade securities: States, municipalities and political subdivisions — — — — — — Corporates, by sector: Financial — — 113,481 (19,257) 113,481 (19,257) Utilities 7,529 (135) 14,985 (1,264) 22,514 (1,399) Energy 14,968 (146) 69,956 (32,406) 84,924 (32,552) Other corporate sectors — — 67,655 (11,921) 67,655 (11,921) Total corporates 22,497 (281) 266,077 (64,848) 288,574 (65,129) Collateralized debt obligations — — 12,816 (7,184) 12,816 (7,184) Other asset-backed securities — — 13,879 (371) 13,879 (371) Total below investment grade securities 22,497 (281) 292,772 (72,403) 315,269 (72,684) Total fixed maturities $ 411,509 $ (5,846) $ 384,305 $ (77,389) $ 795,814 $ (83,235) Commercial Mortgage Loan Participations (commercial mortgage loans): Summaries of commercial mortgage loans by property type and geographical location at March 31, 2020 and December 31, 2019 are as follows: March 31, 2020 December 31, 2019 Carrying Value % of Total Carrying Value % of Total Property type: Office $ 42,670 26 $ 42,350 31 Mixed use 42,010 26 27,501 20 Hospitality 22,602 14 22,324 16 Industrial 22,422 14 17,612 13 Retail 18,605 11 17,318 12 Multi-family 13,867 9 10,587 8 Total recorded investment 162,176 100 137,692 100 Less allowance for credit losses (335) — — — Carrying value, net of allowance for credit losses $ 161,841 100 $ 137,692 100 March 31, 2020 December 31, 2019 Carrying Value % of Total Carrying Value % of Total Geographic location: South Atlantic $ 51,539 32 $ 50,867 37 Pacific 55,909 35 36,546 27 Middle Atlantic 28,073 17 25,328 18 East North Central 10,579 6 10,568 8 West South Central 8,368 5 8,072 6 East South Central 4,684 3 4,676 3 West North Central 1,386 1 — — New England 1,638 1 1,635 1 Total recorded investment 162,176 100 137,692 100 Less allowance for credit losses (335) — — — Carrying value, net of allowance for credit losses $ 161,841 100 $ 137,692 100 As of March 31, 2020, the Company evaluated the commercial mortgage loan portfolio on a pool basis to determine the allowance for credit losses. At the end of the quarter, the Company had 27 loans in the portfolio. The portfolio includes similar characteristics such as origination period, delinquent status, and geography. Factors considered include, but are not limited to, collateral value, loan-to-value ratio, debt service coverage ratio, local market conditions, credit quality of the borrower and tenants, and loan performance. A summary of the activity in the allowance for credit losses is as follows. As noted in Note 1 , the Company adopted ASU 2016-13 using the modified retrospective method for commercial mortgage loans. A cumulative effect adjustment was recorded to retained earnings of $335 thousand ($265 thousand, net of tax). There were no additional credit losses recorded during the three months ended March 31, 2020. Commercial Mortgage Loans Balance at January 1, 2020 $ — Cumulative effect of adoption ASU 2016-13 335 Provision for credit losses — Balance at March 31, 2020 $ 335 As of March 31, 2020 and December 31, 2019, the Company did not have any commercial mortgage loans in non-accrual status. Additionally, all of our commercial mortgage loans were current with respect to payment status and no commercial mortgage loans were classified as a troubled debt restructuring (TDRs). The following tables are reflective of the key factors, debt service coverage ratios and loan-to-value ratios (LTVs), that are utilized by management to monitor the performance of the portfolios. The Company only invests in commercial mortgage loans that have a loan-to-value ratio less than 80%. Generally, a higher LTV ratios can potentially equate to higher risk of loss. March 31, 2020 Recorded Investment Debt Service Coverage Ratios (1) <1.00x 1.00x—1.20x >1.20x Total % of Total Loan-to-value ratio (2) : Less than 70% $ 62,270 $ 67,799 $ 12,678 $ 142,747 88 70% to 80% 13,047 1,790 — 14,837 9 81% to 90% — — — — — Greater than 90% 4,592 — — 4,592 3 Total $ 79,909 $ 69,589 $ 12,678 $ 162,176 100 (1) Annual net operating income divided by annual mortgage debt service (principal and interest). (2) Loan balance divided by the fair value of the property. LTVs are generally assessed on an annual basis, or more frequently when a loan is materially underperforming, 30 days delinquent, or in technical default. December 31, 2019 Recorded Investment Debt Service Coverage Ratios (1) <1.00x 1.00x—1.20x >1.20x Total % of Total Loan-to-value ratio: Less than 70% $ 64,160 $ 47,634 $ 12,666 $ 124,460 90 70% to 80% 11,445 1,787 — 13,232 10 81% to 90% — — — — — Greater than 90% — — — — — Total $ 75,605 $ 49,421 $ 12,666 $ 137,692 100 (1) Annual net operating income divided by annual mortgage debt service (principal and interest). |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 5—Commitments and Contingencies Guarantees : The Parent Company has guaranteed letters of credit in connection with its credit facility with a group of banks. The letters of credit were issued by TMK Re, Ltd., a wholly-owned subsidiary, to secure TMK Re, Ltd.’s obligation for claims on certain policies reinsured by TMK Re, Ltd. that were sold by other Globe Life insurance subsidiaries. These letters of credit facilitate TMK Re, Ltd.’s ability to reinsure the business of Globe Life's insurance carriers. The agreement expires in 2021. The maximum amount of letters of credit available is $250 million. The Parent Company would be liable to the extent that TMK Re, Ltd. does not pay the reinsured party. As of March 31, 2020, the outstanding balance was $150 million. On September 12, 2018, putative class action litigation was filed against American Income in California’s Contra Costa County Superior Court ( Joh v. American Income Life Insurance Company, Case No. C18-01863) ( Joh Action). An amended complaint was filed on October 18, 2018. American Income removed the case to the United States District Court for the Northern District of California (Case No. 3:18-cv-06364-TSH). A second amended complaint was filed on May 20, 2019. The plaintiffs, former insurance sales agents of American Income, are suing on behalf of all current and former trainees and sales agents who sold insurance for American Income in the State of California for the four years prior to the filing of the complaint. The second amended complaint alleges that such individuals are employees and asserts claims under the California Labor Code, California Business and Professions Code, and California Private Attorney General Act. The complaint seeks compensatory damages, penalties and attorney fees on claims for failure to pay wages/commissions, failure to appropriately pay agents at termination, failure to provide itemized wage statements, failure to reimburse expenses, misclassification and unfair business practices. On October 18, 2018, putative class action litigation was filed against Torchmark Corporation and American Income in California’s Los Angeles County Superior Court ( Golz v. American Income Life Insurance Company , et al., Case No. 18STCV01354) ( Golz Action). American Income removed the case to the United States District Court for the Central District of California (Case No. 2:18-cv-09879 R (SSx)). An amended complaint was filed on February 5, 2019. On February 6, 2019, Torchmark Corporation was dismissed without prejudice and the case proceeded with respect to American Income. On April 2, 2019, the District Court granted American Income’s motion to dismiss four of the five causes of action asserted. The amended complaint’s remaining claim alleges that plaintiff, as an American Income insurance agent trainee in California, was an employee who should have been compensated accordingly. The plaintiff seeks to represent a class of individuals in California who trained to contract as American Income agents and who subsequently worked as contracted agents. The class period is alleged to begin four years prior to the complaint’s filing. The complaint seeks restitution under the California Business and Professions Code for alleged unfair business practices such as failure to pay minimum wage and overtime, failure to provide meal and rest breaks, and failure to reimburse business expenses. On December 14, 2018, putative class action litigation was filed against American Income in United States District Court for the Northern District of California ( Hamilton v. American Income Life Insurance Company , Case No. 4:18-cv-7535-KAW) ( Hamilton Action). An amended complaint was filed on January 23, 2019. The plaintiffs, former insurance sales agents of American Income, are suing on behalf of all current and former trainees and sales agents who sold insurance for American Income in the State of California for the last four years prior to the filing of the complaint. The lawsuit alleges that putative class members are employees and asserts claims under the California Labor Code, California Business and Professions Code, and California Private Attorney General Act. The complaint seeks compensatory damages, penalties and attorney fees on claims for failure to pay minimum wage and overtime, failure to provide meal and rest breaks, failure to appropriately pay agents at termination, failure to provide itemized wage statements, failure to reimburse expenses, misclassification and unfair business practices. On January 16, 2019, putative class action litigation was filed against American Income in Orange County, California Superior Court ( Putros v. American Income Life Insurance Company , Case No. 30-2019-01044772-CU-OE-CXC) ( Putros Action). An amended complaint was filed on January 22, 2019. The plaintiff, a former insurance sales agent of American Income, sued on behalf of all current and former sales agents who sold insurance for American Income in the State of California for the year prior to the filing of the complaint. The lawsuit alleged that American Income sales agents were employees and asserted claims under the California Private Attorney General Act. The complaint sought penalties for failure to pay minimum wage, failure to provide meal and rest breaks, failure to appropriately pay agents at termination, failure to provide itemized wage statements, failure to reimburse expenses, and misclassification. The case was dismissed on November 20, 2019. With respect to the related cases above, on August 1, 2019, Plaintiffs in the Joh and Hamilton Actions jointly moved for preliminary approval of a settlement of all class and representative claims, which broadly covers “all individuals who trained to become and/or worked as sales agents in California for Defendant during the last four years prior to the filing of the original Complaint in Joh and whose training and/or work began before the date of preliminary approval of this Settlement.” Plaintiffs’ preliminary motion anticipated that the proposed settlement would resolve all claims in the Joh and Hamilton Actions, and in doing so, encompass all pending claims asserted in the Putros and Golz Actions. On August 16, 2019, the Northern District of California granted the Motion for Preliminary Approval of Class Action Settlement and scheduled a hearing for final approval of the settlement for January 9, 2020. The Court denied final approval of the class settlement but invited plaintiff’s counsel to submit a renewed Motion for Final Settlement Approval to address certain issues the court had raised during the final approval hearing. On February 20, 2020, Plaintiffs in the Joh and Hamilton Actions filed a renewed Motion for Final Settlement Approval, which the Court denied on April 15, 2020. In doing so, the Court noted the need for a more equitable distribution of the proposed settlement proceeds among class members. The parties continue to evaluate settlement. On December 19, 2019, putative collective action litigation was filed against American Income in United States District Court for the Eastern District of Arkansas ( Patterson v. American Income Life Insurance Company, et al , Case No. 4:19-cv-918 KGB). The plaintiff, a former insurance sales agent of American Income, is pursuing a national collective action on behalf of all “similarly situated” individuals for the three years prior to the filing of the complaint. The lawsuit alleges that insurance agent trainees should have been classified as employees and asserts claims for minimum wage, overtime, liquidated damages and attorney’s fees under the Fair Labor Standards Act. The Plaintiff also asserts an individual claim under the Arkansas Minimum Wage Act. American Income has filed a motion to compel arbitration of Plaintiff’s individual claims. On February 27, 2020, putative collective action litigation was filed against American Income in United States District Court for the Western District of Pennsylvania ( Berry, et al v. American Income Life Insurance Company, et al , Case No. 2:20-cv-00110-LPL). The plaintiffs, former insurance sales agents of American Income, are pursuing relief on behalf of “all individuals who trained to become and/or worked as sales agents/insurance producers for American Income Life Insurance” in the three years prior to the filing of the complaint. The lawsuit alleges that agent trainees and insurance agents should have been classified as employees. It asserts a national collective action under the Fair Labor Standards Act seeking compensation for minimum wage, overtime, expense reimbursement, missed meal and rest breaks, recoupment of certain commissions and improper recordkeeping. In addition, the lawsuit asserts a class action under the Pennsylvania Minimum Wage Act and Pennsylvania Wage Payment and Collection Law seeking similar relief. Plaintiffs also seek liquidated damages and attorney’s fees, and assert an unjust enrichment claim. With respect to the aforementioned litigation, at this time, management believes that the possibility of a material judgment adverse to the Company is remote . |
Liability for Unpaid Claims
Liability for Unpaid Claims | 3 Months Ended |
Mar. 31, 2020 | |
Insurance [Abstract] | |
Liability for Unpaid Claims | Note 6—Liability for Unpaid Claims Activity in the liability for unpaid health claims is summarized as follows: Three Months Ended 2020 2019 Balance at beginning of period $ 163,808 $ 154,528 Incurred related to: Current year 165,129 151,230 Prior year (5,358) 1,166 Total incurred 159,771 152,396 Paid related to: Current year 69,495 60,055 Prior year 92,050 88,445 Total paid 161,545 148,500 Balance at end of period $ 162,034 $ 158,424 Below is the reconciliation of the liability of "Policy claims and other benefits payable " in the Condensed Consolidated Balance Sheets . March 31, December 31, Policy claims and other benefits payable: Life insurance $ 202,242 $ 201,594 Health insurance 162,034 163,808 Total $ 364,276 $ 365,402 |
Postretirement Benefits
Postretirement Benefits | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Postretirement Benefits | Note 7—Postretirement Benefits Globe Life has qualified noncontributory defined benefit pension plans and contributory savings plans that cover substantially all employees. There is also a nonqualified noncontributory supplemental executive retirement plan (SERP) that covers a limited number of employees. The tables included herein will focus on the defined benefit plans and SERP. Pension Assets: The following table presents the assets of the Company's defined benefit pension plans at March 31, 2020 and December 31, 2019. Pension Assets by Component at March 31, 2020 Fair Value Determined by: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Amount % to Total Corporate bonds: Financial $ — $ 48,063 $ — $ 48,063 12 Utilities — 42,204 — 42,204 10 Energy — 16,472 — 16,472 4 Other corporates — 87,542 — 87,542 21 Total corporate bonds — 194,281 — 194,281 47 Exchange traded fund (1) 166,692 — — 166,692 40 Other bonds — 264 — 264 — Guaranteed annuity contract (2) — 28,418 — 28,418 7 Short-term investments 8,327 — — 8,327 2 Other 6,220 — — 6,220 1 $ 181,239 $ 222,963 $ — 404,202 97 Other long-term investments (3) 11,611 3 Total pension assets $ 415,813 100 (1) A fund including marketable securities that mirror the S&P 500 index. (2) Representing a guaranteed annuity contract issued by Globe Life's subsidiary, American Income Life Insurance Company, to fund the obligations of the American Income Life Insurance Company Non-Exempt Employees Defined Benefit Pension Plan ("American Income Pension Plan"). (3) Included in other long-term investments is an investment fund that reports the Pension Plan's pro-rata share of the limited partnership's net asset value per share or its equivalent (NAV), as a practical expedient for fair value. The Pension Plan owns less than 1% of the investment fund. As of March 31, 2020, the expected term of the investment fund is approximately 5 years and the unfunded commitment of the investment fund is $4.9 million. The investment is non-redeemable. The investment fund strategy is opportunistic, applying a comprehensive relative value approach across various asset classes and opportunities in public and private markets, geographies, and capital structures. Pension Assets by Component at December 31, 2019 Fair Value Determined by: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Amount % to Total Corporate bonds: Financial $ — $ 51,111 $ — $ 51,111 11 Utilities — 42,758 — 42,758 9 Energy — 21,907 — 21,907 5 Other corporates — 89,725 — 89,725 19 Total corporate bonds — 205,501 — 205,501 44 Exchange traded fund (1) 207,176 — — 207,176 44 Other bonds — 251 — 251 — Guaranteed annuity contract (2) — 28,278 — 28,278 6 Short-term investments 8,414 — — 8,414 2 Other 6,876 — — 6,876 1 $ 222,466 $ 234,030 $ — 456,496 97 Other long-term investments (3) 12,267 3 Total pension assets $ 468,763 100 (1) A fund including marketable securities that mirror the S&P 500 index. (2) Representing a guaranteed annuity contract issued by Globe Life's subsidiary, American Income Life Insurance Company, to fund the obligations of the American Income Pension Plan. (3) Included in other long-term investments is an investment fund that reports the Pension Plan's pro-rata share of the limited partnership's net asset value per share or its equivalent (NAV), as a practical expedient for fair value. The Pension Plan owns approximately 1% of the investment fund. As of December 31, 2019, the expected term of the investment fund is approximately 5 years and the unfunded commitment of the investment fund is $4.1 million. The investment is non-redeemable. The investment fund strategy is opportunistic, applying a comprehensive relative value approach across various asset classes and opportunities in public and private markets, geographies, and capital structures. SERP : The following table includes information regarding the SERP. Three Months Ended 2020 2019 Premiums paid for insurance coverage $ 443 $ 444 March 31, December 31, Total investments: Company owned life insurance $ 48,497 $ 47,733 Exchange traded funds 55,303 65,585 $ 103,800 $ 113,318 Pension and SERP Liabilities : The following table presents liabilities for the defined benefit pension plans and SERP at March 31, 2020 and December 31, 2019. March 31, December 31, Defined benefit pension $ 529,218 $ 578,860 SERP 86,410 86,347 Pension benefit obligation $ 615,628 $ 665,207 Net Periodic Benefit Cost: The following table presents the net periodic benefit costs for the defined benefit pension plans and SERP by expense components for the three months ended March 31, 2020 and 2019. Components of Net Periodic Benefit Cost Three Months Ended 2020 2019 Service cost $ 6,116 $ 4,982 Interest cost 5,651 5,964 Expected return on assets (7,390) (6,966) Amortization: Prior service cost 158 158 Actuarial (gain) loss 3,924 1,894 Net periodic benefit cost $ 8,459 $ 6,032 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 8—Earnings Per Share Earnings per Share : A reconciliation of basic and diluted weighted-average shares outstanding used in the computation of basic and diluted earnings per share is as follows: Three Months Ended 2020 2019 Basic weighted average shares outstanding 107,285,223 110,301,527 Weighted average dilutive options outstanding 1,847,021 2,027,348 Diluted weighted average shares outstanding 109,132,244 112,328,875 Antidilutive shares 529,129 1,846,151 |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segments | Note 9—Business Segments Globe Life is organized into four segments: life insurance, supplemental health insurance, annuities, and investments. In addition, other expenses not included in these segments are reported in "Corporate & Other." Globe Life's reportable insurance segments are based on the insurance product lines it markets and administers: life insurance, supplemental health insurance, and annuities. These major product lines are set out as reportable segments because of the common characteristics of products within these categories, comparability of margins, and the similarity in regulatory environment and management techniques. There is also an investment segment which manages the investment portfolio, debt, and cash flow for the insurance segments and the corporate function. The Company's chief operating decision makers evaluate the overall performance of the operations of the Company in accordance with these segments. Life insurance products marketed by Globe Life include traditional whole life and term life insurance. Health insurance products are generally guaranteed-renewable and include Medicare Supplement, critical illness, accident, and limited-benefit supplemental hospital and surgical coverage. Annuities include fixed-benefit contracts. Globe Life markets its insurance products through a number of distribution channels, each of which sells the products of one or more of Globe Life's insurance segments. Our distribution channels consist of the following exclusive agencies, American Income Life Division (American Income), Liberty National Division (Liberty National) and Family Heritage Division (Family Heritage); an independent agency, United American Division (United American); and our Direct to Consumer Division (Direct to Consumer). The tables below present segment premium revenue by each of Globe Life's distribution channels. Premium Income by Distribution Channel Three Months Ended March 31, 2020 Life Health Annuity Total Distribution Channel Amount % of Amount % of Amount % of Amount % of American Income $ 302,852 47 $ 25,727 9 $ — — $ 328,579 35 Direct to Consumer 220,043 34 19,796 7 — — 239,839 26 Liberty National 72,868 11 47,640 17 — — 120,508 13 United American 2,490 — 110,059 39 — — 112,549 12 Family Heritage 1,021 — 76,983 28 — — 78,004 8 Other 50,356 8 — — — — 50,356 6 $ 649,630 100 $ 280,205 100 $ — — $ 929,835 100 Three Months Ended March 31, 2019 Life Health Annuity Total Distribution Channel Amount % of Total Amount % of Total Amount % of Total Amount % of Total American Income $ 281,767 45 $ 24,099 9 $ — — $ 305,866 34 Direct to Consumer 217,559 35 20,260 8 — — 237,819 27 Liberty National 70,717 11 48,156 18 — — 118,873 13 United American 2,751 1 102,905 38 — — 105,656 12 Family Heritage 931 — 71,264 27 — — 72,195 8 Other 50,564 8 — — — — 50,564 6 $ 624,289 100 $ 266,684 100 $ — — $ 890,973 100 Due to the nature of the life insurance industry, Globe Life has no individual or group that would be considered a major customer. Substantially all of Globe Life's business is conducted in the United States. The measure of profitability established by the chief operating decision makers for insurance segments is underwriting margin before other income and administrative expenses, in accordance with the manner the segments are managed. It essentially represents gross profit margin on insurance products before insurance administrative expenses and consists primarily of premium less net policy benefits, acquisition expenses, and commissions. Required interest on net policy liabilities (benefit reserves less deferred acquisition costs) is reflected as a component of the Investment segment (rather than as a component of underwriting margin in the insurance and annuity segments) in order to match this cost with the investment income earned on the assets supporting the net policy liabilities. The measure of profitability for the Investment segment is excess investment income, representing the income earned on the investment portfolio in excess of net policy requirements and financing costs associated with Globe Life's debt. Other than the above-mentioned interest allocations and an intersegment commission, there are no other intersegment revenues or expenses. Expenses directly attributable to corporate operations are included in the “Corporate & Other” category. Stock-based compensation expense is considered a corporate expense by Globe Life management and is included in this category. All other unallocated revenues and expenses on a pretax basis, including insurance administrative expense, are also included in the “Corporate & Other” segment category. Globe Life holds a sizable investment portfolio to support its insurance liabilities, the yield from which is used to offset policy benefit, acquisition, administrative and tax expenses. This yield or investment income is taken into account when establishing premium rates and profitability expectations of its insurance products. From time to time, investments are sold or called, or experience a credit loss event, each of which are reflected by the Company as realized gains (losses). These gains or losses generally occur as a result of disposition due to issuer calls, compliance with Company investment policies, or other reasons often beyond management’s control. Unlike investment income, realized gains and losses are incidental to insurance operations, and only overall yields are considered when setting premium rates or insurance product profitability expectations. While these gains and losses are not relevant to segment profitability or core operating results, they can have a material positive or negative result on net income. For these reasons, management removes realized investment gains and losses when it views its segment operations. Management removes items that are related to prior periods when evaluating the operating results of current periods. Management also removes non-operating items unrelated to its core insurance activities when evaluating those results. Therefore, these items are excluded in its presentation of segment results, because accounting guidance requires that operating segment results be presented as management views its business. With the exception of the administrative settlements noted in the paragraphs above, all of these items are included in “Other operating expense” in the Consolidated Statements of Operations for the appropriate year. See additional detail below in the tables. The following tables set forth a reconciliation of Globe Life's revenues and operations by segment to its major income statement line items. See Note—1 Significant Accounting Policies for additional information concerning reconciling items of segment profits to pretax income. Three Months Ended March 31, 2020 Life Health Annuity Investment Corporate & Other Adjustments Consolidated Revenue: Premium $ 649,630 $ 280,205 $ — $ — $ — $ — $ 929,835 Net investment income — — — 228,991 — — 228,991 Other income — — — — 325 — 325 Total revenue 649,630 280,205 — 228,991 325 — 1,159,151 Expenses: Policy benefits 421,670 178,711 7,588 — — — 607,969 Required interest on reserves (171,205) (22,510) (10,456) 204,171 — — — Required interest on DAC 52,118 6,519 88 (58,725) — — — Amortization of acquisition costs 114,308 29,025 504 — — — 143,837 Commissions, premium taxes, and non-deferred acquisition costs 53,936 24,995 6 — — — 78,937 Insurance administrative expense (1) — — — — 63,620 3,275 (2) 66,895 Parent expense — — — — 2,331 — 2,331 Stock-based compensation expense — — — — 9,356 — 9,356 Interest expense — — — 20,808 — — 20,808 Total expenses 470,827 216,740 (2,270) 166,254 75,307 3,275 930,133 Subtotal 178,803 63,465 2,270 62,737 (74,982) (3,275) 229,018 Non-operating items — — — — — 3,275 (2) 3,275 Measure of segment profitability (pretax) $ 178,803 $ 63,465 $ 2,270 $ 62,737 $ (74,982) $ — 232,293 Realized gain (loss)—investments (26,097) Legal proceedings (3,275) Income before income taxes per Condensed Consolidated Statements of Operations $ 202,921 (1) Administrative expense is not allocated to insurance segments. (2) Legal proceedings—See Note 5 for further discussion. Three Months Ended March 31, 2019 Life Health Annuity Investment Corporate & Other Adjustments Consolidated Revenue: Premium $ 624,289 $ 266,684 $ — $ — $ — $ — $ 890,973 Net investment income — — — 226,673 — — 226,673 Other income — — — — 241 — 241 Total revenue 624,289 266,684 — 226,673 241 — 1,117,887 Expenses: Policy benefits 409,692 170,017 8,048 — — — 587,757 Required interest on reserves (163,662) (21,496) (11,120) 196,278 — — — Required interest on DAC 50,024 6,283 131 (56,438) — — — Amortization of acquisition costs 108,290 27,014 518 — — — 135,822 Commissions, premium taxes, and non-deferred acquisition costs 50,106 23,352 7 — — — 73,465 Insurance administrative expense (1) — — — — 59,191 400 (2) 59,591 Parent expense — — — — 2,643 — 2,643 Stock-based compensation expense — — — — 10,559 — 10,559 Interest expense — — — 21,278 — — 21,278 Total expenses 454,450 205,170 (2,416) 161,118 72,393 400 891,115 Subtotal 169,839 61,514 2,416 65,555 (72,152) (400) 226,772 Non-operating items — — — — — 400 (2) 400 Measure of segment profitability (pretax) $ 169,839 $ 61,514 $ 2,416 $ 65,555 $ (72,152) $ — 227,172 Realized gain (loss)—investments 1,329 Administrative settlements (400) Income before income taxes per Condensed Consolidated Statements of Operations $ 228,101 (1) Administrative expense is not allocated to insurance segments. (2) In 2019, the Company recorded $400 thousand in administrative settlements related to state regulatory examinations. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent to the balance sheet date, equity and financial markets have continued to experience significant volatility in response to the COVID-19 pandemic. The Company did not incur material claims or significant disruptions to the business for the three months ended March 31, 2020. However, the full extent to which COVID-19 impacts financial results in the future remains uncertain as of the date of this Form 10-Q. On April 9, 2020, Globe Life Inc. entered into a new 364-day $300 million term loan facility and drew the entire $300 million on April 15, 2020. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The accompanying condensed consolidated financial statements of Globe Life have been prepared in accordance with the instructions to Form 10-Q. Therefore, they do not include all of the disclosures required by accounting principles generally accepted in the United States of America (GAAP) for annual financial statements. However, in the opinion of management, these statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the condensed consolidated financial position at March 31, 2020, and the condensed consolidated results of operations, comprehensive income, and cash flows for the periods ended March 31, 2020 and 2019. The interim period condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements that are included in the Form 10-K filed with the Securities Exchange Commission (SEC) on February 27, 2020. |
New Accounting Pronouncements | On January 1, 2020, the Company adopted ASU 2016-13, replacing the GAAP "incurred loss" model with a new methodology referred to as current expected credit losses (CECL). The previous methodology delayed recognition of credit losses until it was probable that a loss had incurred, ultimately resulting in fewer instances of losses being recorded in earnings. The new CECL methodology is forward looking—encompassing relevant information about historical experience, current conditions, as well as reasonable and supportable forecasts that affect the collectability of a reported amount. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables. The standard affected the Company's commercial mortgage loan participations ( Other long-term investments ) and agent debit balances ( Other receivables ). The Company adopted the standard using the modified retrospective method for the commercial mortgage loan participations and agent debit balances. The Company recorded a cumulative effect adjustment of $454 thousand to retained earnings, consisting of $265 thousand, net of tax and $189 thousand, net of tax for commercial mortgage loan participations and agent debit balances, respectively. Refer to the table below and Note 4 for additional details. As reported on December 31, 2019 Pre-tax impact of adoption As reported on January 1, 2020 Assets: Commercial mortgage loan participations $ 137,692 $ (335) $ 137,357 Agent debit balances 423,877 (240) 423,637 In addition, the standard made changes to the accounting for available-for-sale debt securities through the removal of "other-than-temporary-impairment" (OTTI) write downs and replaced it with allowances for credit losses. The new methodology will allow the Company to record reversals of credit losses in situations where the estimate of credit losses declines through current period net income ( Realized gains (losses) ). The Company adopted the standard using the prospective transition approach for available-for-sale fixed maturities for which other-than-temporary impairment had been recognized prior to January 1, 2020. As a result, the amortized cost basis and the effective interest rate remain unchanged after the adoption of ASU 2016-13. Amortized cost will now be reflected as "amortized cost, net of allowance for credit losses" or "amortized cost, net." The Company has not elected the fair value option for any financial assets recorded at amortized cost that would be in scope of this standard. Accounting Pronouncements Adopted in the Current Year Standard Description Effective Date Effect on the Consolidated Financial Statements ASU No. 2016-13/2019-04/2019-05 , Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, with clarification guidance issued in April 2019. This standard ("CECL") provides financial statement users with more decision-useful information about the expected credit losses on financial instruments that are recorded at amortized cost. Additionally, it changes the loss impairment methodology for available-for-sale fixed maturities by the use of an allowance rather than a direct write down. This standard became effective on January 1, 2020. The Company's available-for-sale fixed maturities and other financing receivables (commercial mortgage loans and agent debit balances) were concluded to be the relevant financial assets within the scope of the standard. See Note 1 for information on the adoption and revised accounting policies. ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting This standard was issued primarily to provide optional expedients for simplifying the accounting for contract modifications to existing agreements, which is expected to arise from the market's transition from LIBOR to the secured overnight financing rate (SOFR) as a result of reference rate reform. This standard became effective upon issuance, or March 12, 2020, and will remain effective until December 31, 2022. The Company has limited assets and liabilities that utilize LIBOR as a benchmark rate. We will continue to monitor the progress towards the establishment of a new floating rate; however, we do not expect a material impact at this time. Accounting Pronouncements Yet to be Adopted Standard Description Effective Date Effect on the Consolidated Financial Statements ASU No. 2018-12/2019-09 , Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, with clarification guidance issued in November 2019. ASU 2018-12 is a significant change to our current accounting and disclosure of long-duration contracts, which is our primary business. The guidance was primarily issued to: 1) improve the timeliness of recognizing changes in the liability for future policy benefits and modify the rate used to discount future cash flows, 2) simplify and improve the accounting for certain market-based options or guarantees associated with deposit (or account balance) contracts, 3) simplify the amortization of deferred acquisition costs, and 4) improve the effectiveness of the required disclosures. This standard is effective beginning January 1, 2022. Early adoption of the amendments is permitted. The Company is currently in the process of evaluating the impact this standard will have on the consolidated financial statements and disclosures, specifically assessing key accounting policies, assumption and data inputs, controls, and enhanced system solutions. ASU No. 2018-14 , Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20), Changes to the Disclosure Requirements for Defined Benefit Plans The standard removes disclosures that are no longer considered cost beneficial, clarifies the specific requirements of disclosures and adds disclosure requirements identified as relevant to defined benefit plans. This standard is effective beginning January 1, 2021, and will be applied retrospectively. Early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on the consolidated financial statements. |
Investments | Investments, Available-For-Sale Fixed Maturities : Globe Life classifies all of its fixed maturity investments as available for sale. Investments classified as available for sale are carried at fair value with unrealized gains and losses, net of taxes reflected directly in Accumulated other comprehensive income ("AOCI"). Income from investments is recorded in net investment income on the Consolidated Statement s of Operations . Gains and losses from sales, maturities, or other redemptions of investments are recorded in Realized gains (losses) . Interest income and prepayment fees are recognized when earned. Premiums and discounts are amortized using the interest method. When amortized cost of a callable debt security exceeds the first call price, the premium is amortized to the earliest call date. Otherwise, the period of amortization or accretion generally extends from the purchase date to the maturity date. Accrued investment income consists of interest income or dividends earned on the investment portfolio, but which are yet to be received as of the balance sheet date. The Company will write-off accrued investment income that is deemed to be uncollectible related to the fixed maturities. As a practical expedient, the Company excludes the accrued investment income from the amortized cost basis of the fixed maturity and separately reports it in another financial statement line item, Accrued Investment Income . Additionally, the amount will be excluded from disclosures within Note 4 . Investments, Allowance For Credit Losses For Available-For-Sale Fixed Maturities : At the onset of the evaluation, the Company individually assesses each fixed maturity to determine whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria are met, the Company will write down the fixed maturity's amortized cost basis to fair value through Realized gains (losses) . If neither of the aforementioned criteria are met, the Company will evaluate whether the decline in fair value has resulted from a credit event. The Company will evaluate many factors, as further described below, to determine the present value of the expected cash flows. A credit loss occurs when the present value of the expected cash flows is less than the amortized cost basis. This will result in the recording of an allowance for credit losses as a contra asset account to the amortized cost basis with an offsetting provision for credit losses in Realized gains (losses) on the Condensed Consolidated S tatement of Operation s . Additionally, the CECL methodology includes a fair value floor where the allowance for credit loss for a security cannot exceed the difference between fair value and amortized cost. When it is determined that there is not a credit loss, the decline in fair value is recognized in Other comprehensive income. All changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses recorded to the allowance for credit losses are management's best estimate of the uncollectibility of principal and interest of a fixed maturity. The evaluation of Globe Life's securities for credit losses is a process that is undertaken at least quarterly and is overseen by a team of investment and accounting professionals. The process for making this determination is highly subjective and involves the careful consideration of many factors. The factors considered include, but are not limited to: • The Company’s ability and intent to hold the security until anticipated recovery • The reason(s) for the impairment • The financial condition of the issuer and the prospects for recovery in fair value of the security • Expected future cash flows The relative weight given to each of these factors can change over time as facts and circumstances change. In many cases, management believes it is appropriate to give more consideration to prospective factors than to retrospective factors. Prospective factors that are given more weight include prospects for recovery, the Company’s ability and intent to hold the security until anticipated recovery, and expected future cash flows. Among the facts and information considered in the process are: • Financial statements of the issuer • Changes in credit ratings of the issuer • The value of underlying collateral • News and information included in press releases issued by the issuer • News and information reported in the media concerning the issuer • News and information published by or otherwise provided by securities, economic, or research analysts • The nature and amount of recent and expected future sources and uses of cash • Default on a required payment • Issuer bankruptcy filings The expected cash flows are determined using judgment and the best information available to the Company. Inputs used to derive expected cash flows generally include expected default rates, current levels of subordination, and estimated recovery rate. The discount rate utilized in the discounted cash flows is the effective interest rate, which is the rate of return implicit in the asset at acquisition. Investments, Commercial Mortgage Loan Participations (Commercial Mortgage Loans) : Commercial mortgage loans, a type of investment where the commercial mortgage loan is shared among investors, are accounted for as financing receivables. The commercial mortgage loans are managed by a third-party. The Company purchased the legal rights to interests in commercial mortgage loans that are secured by properties such as hotels, retail, multiple family, or offices. The commercial mortgage loans typically have a term of three years with an option to extend up to two years. The commercial mortgage loans are recorded at unpaid principal balance, net of unamortized origination fees and net of allowance for loan losses. Interest income, net of the amortization of origination fees, is recorded in Net investment income under the effective yield method. Accrued investment income on the C ond ensed Consolidated Balance Sheets consists of interest income earned on the commercial mortgage loan portfolio, but are yet to be received as of the balance sheet date. Accrued investment income that is deemed to be uncollectible will be written off. As a practical expedient, the Company excludes the accrued investment income from the amortized cost basis of the commercial mortgage loans and separately reports it in another financial statement line item, Accrued investment income . Additionally, the amount will be excluded from disclosures within Note 4 . As of March 31, 2020, the accrued interest receivable for commercial mortgage loans was $454 thousand. Commercial mortgage loans generally pay interest monthly, therefore accrued interest is typically for a period of 30 days or less. The unfunded commitment balance was $87 million as of March 31, 2020. The Company evaluates the performance and credit quality of the commercial mortgage loan portfolio at least on a quarterly basis, or as needed, by utilizing common metrics such as loan-to-value and debt service coverage ratios |
Other Assets | Other Receivables, Agent Debit Balances : Agent debit balances primarily represent commissions advanced to insurance agents, a common industry practice. These balances are repaid to the Company over time, generally one year, as the premiums associated with the advanced commissions are collected by the Company and a portion of the agents' commissions on such premiums are retained in order to repay the balances. The balances were $424 million at March 31, 2020 and December 31, 2019. When an agent sells a policy, commissions are advanced to the agent, and the collection of the advance is made as long as the policy stays in force. While there is a susceptibility to loss should an agent terminate, the ability of the Company to continue to collect an agent's commission streams over time from prior sales of policies reduces the Company's exposure to loss. The Company has a very low inherent risk with regards to the collection of agent debit balances and views these balances as recoverable since they are, in aggregate, less than the estimated present value of future commissions discounted at a conservative rate which includes assumptions for lapses and mortality. The Company’s security, or collateral, is in the form of future commission streams collected over the life of the policies sold by the respective agents, which ultimately revert to the Company in the event an agent is terminated. The Company evaluated the agent debit balances on a pool basis to determine the allowance for credit losses as the loans have similar characteristics. A provision for credit losses will be recorded in Realized gains (losses) on the Condensed Consolidated Statement of Operations and the asset balance will be reflected as Agent Debit Balances, net of allowance for credit losses ( Other receivables ). Based on factors considered by management, there were no additional credit losses recorded during the three months ended March 31, 2020. As of March 31, 2020, the allowance for credit losses was $1.2 million compared with $1.0 million as of December 31, 2019. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Impact of New Accounting Pronouncements | As reported on December 31, 2019 Pre-tax impact of adoption As reported on January 1, 2020 Assets: Commercial mortgage loan participations $ 137,692 $ (335) $ 137,357 Agent debit balances 423,877 (240) 423,637 Accounting Pronouncements Adopted in the Current Year Standard Description Effective Date Effect on the Consolidated Financial Statements ASU No. 2016-13/2019-04/2019-05 , Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, with clarification guidance issued in April 2019. This standard ("CECL") provides financial statement users with more decision-useful information about the expected credit losses on financial instruments that are recorded at amortized cost. Additionally, it changes the loss impairment methodology for available-for-sale fixed maturities by the use of an allowance rather than a direct write down. This standard became effective on January 1, 2020. The Company's available-for-sale fixed maturities and other financing receivables (commercial mortgage loans and agent debit balances) were concluded to be the relevant financial assets within the scope of the standard. See Note 1 for information on the adoption and revised accounting policies. ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting This standard was issued primarily to provide optional expedients for simplifying the accounting for contract modifications to existing agreements, which is expected to arise from the market's transition from LIBOR to the secured overnight financing rate (SOFR) as a result of reference rate reform. This standard became effective upon issuance, or March 12, 2020, and will remain effective until December 31, 2022. The Company has limited assets and liabilities that utilize LIBOR as a benchmark rate. We will continue to monitor the progress towards the establishment of a new floating rate; however, we do not expect a material impact at this time. Accounting Pronouncements Yet to be Adopted Standard Description Effective Date Effect on the Consolidated Financial Statements ASU No. 2018-12/2019-09 , Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, with clarification guidance issued in November 2019. ASU 2018-12 is a significant change to our current accounting and disclosure of long-duration contracts, which is our primary business. The guidance was primarily issued to: 1) improve the timeliness of recognizing changes in the liability for future policy benefits and modify the rate used to discount future cash flows, 2) simplify and improve the accounting for certain market-based options or guarantees associated with deposit (or account balance) contracts, 3) simplify the amortization of deferred acquisition costs, and 4) improve the effectiveness of the required disclosures. This standard is effective beginning January 1, 2022. Early adoption of the amendments is permitted. The Company is currently in the process of evaluating the impact this standard will have on the consolidated financial statements and disclosures, specifically assessing key accounting policies, assumption and data inputs, controls, and enhanced system solutions. ASU No. 2018-14 , Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20), Changes to the Disclosure Requirements for Defined Benefit Plans The standard removes disclosures that are no longer considered cost beneficial, clarifies the specific requirements of disclosures and adds disclosure requirements identified as relevant to defined benefit plans. This standard is effective beginning January 1, 2021, and will be applied retrospectively. Early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on the consolidated financial statements. |
New Accounting Standards (Table
New Accounting Standards (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Impact of New Accounting Pronouncements | As reported on December 31, 2019 Pre-tax impact of adoption As reported on January 1, 2020 Assets: Commercial mortgage loan participations $ 137,692 $ (335) $ 137,357 Agent debit balances 423,877 (240) 423,637 Accounting Pronouncements Adopted in the Current Year Standard Description Effective Date Effect on the Consolidated Financial Statements ASU No. 2016-13/2019-04/2019-05 , Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, with clarification guidance issued in April 2019. This standard ("CECL") provides financial statement users with more decision-useful information about the expected credit losses on financial instruments that are recorded at amortized cost. Additionally, it changes the loss impairment methodology for available-for-sale fixed maturities by the use of an allowance rather than a direct write down. This standard became effective on January 1, 2020. The Company's available-for-sale fixed maturities and other financing receivables (commercial mortgage loans and agent debit balances) were concluded to be the relevant financial assets within the scope of the standard. See Note 1 for information on the adoption and revised accounting policies. ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting This standard was issued primarily to provide optional expedients for simplifying the accounting for contract modifications to existing agreements, which is expected to arise from the market's transition from LIBOR to the secured overnight financing rate (SOFR) as a result of reference rate reform. This standard became effective upon issuance, or March 12, 2020, and will remain effective until December 31, 2022. The Company has limited assets and liabilities that utilize LIBOR as a benchmark rate. We will continue to monitor the progress towards the establishment of a new floating rate; however, we do not expect a material impact at this time. Accounting Pronouncements Yet to be Adopted Standard Description Effective Date Effect on the Consolidated Financial Statements ASU No. 2018-12/2019-09 , Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, with clarification guidance issued in November 2019. ASU 2018-12 is a significant change to our current accounting and disclosure of long-duration contracts, which is our primary business. The guidance was primarily issued to: 1) improve the timeliness of recognizing changes in the liability for future policy benefits and modify the rate used to discount future cash flows, 2) simplify and improve the accounting for certain market-based options or guarantees associated with deposit (or account balance) contracts, 3) simplify the amortization of deferred acquisition costs, and 4) improve the effectiveness of the required disclosures. This standard is effective beginning January 1, 2022. Early adoption of the amendments is permitted. The Company is currently in the process of evaluating the impact this standard will have on the consolidated financial statements and disclosures, specifically assessing key accounting policies, assumption and data inputs, controls, and enhanced system solutions. ASU No. 2018-14 , Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20), Changes to the Disclosure Requirements for Defined Benefit Plans The standard removes disclosures that are no longer considered cost beneficial, clarifies the specific requirements of disclosures and adds disclosure requirements identified as relevant to defined benefit plans. This standard is effective beginning January 1, 2021, and will be applied retrospectively. Early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on the consolidated financial statements. |
Supplemental Information Abou_2
Supplemental Information About Changes to Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of Change in Balance by Component of Accumulated Other Comprehensive Income | An analysis of the change in balance by component of Accumulated Other Comprehensive Income is as follows for the three month periods ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 Available Deferred Foreign Pension Total Balance at January 1, 2020 $ 1,982,650 $ (5,916) $ 12,058 $ (143,962) $ 1,844,830 Other comprehensive income (loss) before reclassifications, net of tax (782,936) 303 (21,679) — (804,312) Reclassifications, net of tax 22,445 — — 3,284 25,729 Other comprehensive income (loss) (760,491) 303 (21,679) 3,284 (778,583) Balance at March 31, 2020 $ 1,222,159 $ (5,613) $ (9,621) $ (140,678) $ 1,066,247 Three Months Ended March 31, 2019 Available Deferred Foreign Pension Total Balance at January 1, 2019 $ 435,698 $ (4,163) $ 6,495 $ (118,555) $ 319,475 Other comprehensive income (loss) before reclassifications, net of tax 550,934 (2,528) 2,442 — 550,848 Reclassifications, net of tax (1,931) — — 1,675 (256) Other comprehensive income (loss) 549,003 (2,528) 2,442 1,675 550,592 Balance at March 31, 2019 $ 984,701 $ (6,691) $ 8,937 $ (116,880) $ 870,067 |
Summary of Reclassifications Out of Accumulated Other Comprehensive Income | Reclassification adjustments out of Accumulated Other Comprehensive Income are presented below for the three month periods ended March 31, 2020 and 2019. Three Months Ended March 31, Affected line items in the Statement of Operations Component Line Item 2020 2019 Unrealized investment (gains) losses on available for sale assets: Realized (gains) losses $ 26,920 $ (3,670) Realized (gains) losses Amortization of (discount) premium 1,492 1,226 Net investment income Total before tax 28,412 (2,444) Tax (5,967) 513 Income taxes Total after-tax 22,445 (1,931) Pension adjustments: Amortization of prior service cost 158 158 Other operating expense Amortization of actuarial (gain) loss 3,999 1,962 Other operating expense Total before tax 4,157 2,120 Tax (873) (445) Income taxes Total after-tax 3,284 1,675 Total reclassification (after-tax) $ 25,729 $ (256) |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Fixed Maturities and Equity Securities Available for Sale by Component | Summaries of fixed maturities available for sale by amortized cost, fair value, and allowance for credit losses at March 31, 2020 and December 31, 2019, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) are as follows. Redeemable preferred stock is included within the corporates by sector. As noted in N ote 1 , the Company prospectively adopted ASU 2016-13 as of January 1, 2020 for the available-for-sale fixed maturities. Results after January 1, 2020 are presented under ASU 2016-13, while prior periods continue to be reported in accordance with previously applicable GAAP. See additional discussion of the allowance for credit losses later in this note. At March 31, 2020 Allowance for Credit Losses Gross Gross Fair Value (1) % of Total Fixed Maturities (2) Fixed maturities available for sale: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 374,781 $ — $ 80,894 $ (124) $ 455,551 2 States, municipalities, and political subdivisions 1,582,294 — 161,591 (4,411) 1,739,474 10 Foreign governments 22,403 — 2,098 (196) 24,305 — Corporates, by sector: Financial 4,107,145 — 545,127 (91,331) 4,560,941 26 Utilities 1,927,517 — 346,826 (10,468) 2,263,875 13 Energy 1,662,009 (31,854) 71,866 (235,753) 1,466,268 8 Other corporate sectors 6,507,502 — 761,004 (92,273) 7,176,233 40 Total corporates 14,204,173 (31,854) 1,724,823 (429,825) 15,467,317 87 Collateralized debt obligations 56,733 — 21,764 (10,124) 68,373 — Other asset-backed securities 131,560 — 392 (7,431) 124,521 1 Total fixed maturities $ 16,371,944 $ (31,854) $ 1,991,562 $ (452,111) $ 17,879,541 100 (1) Amount reported in the balance sheet. (2) At fair value. At December 31, 2019 Amortized Gross Gross Fair Value (1) % of Total Fixed Maturities (2) Fixed maturities available for sale: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 396,079 $ 41,737 $ (296) $ 437,520 2 States, municipalities, and political subdivisions 1,559,736 158,546 (626) 1,717,656 9 Foreign governments 25,874 2,073 (396) 27,551 — Corporates, by sector: Financial 4,101,917 701,196 (22,307) 4,780,806 25 Utilities 1,937,738 416,114 (1,565) 2,352,287 13 Energy 1,678,969 269,640 (33,725) 1,914,884 10 Other corporate sectors 6,514,677 955,908 (16,765) 7,453,820 40 Total corporates 14,233,301 2,342,858 (74,362) 16,501,797 88 Collateralized debt obligations 56,990 24,298 (7,184) 74,104 — Other asset-backed securities 143,796 5,094 (371) 148,519 1 Total fixed maturities $ 16,415,776 $ 2,574,606 $ (83,235) $ 18,907,147 100 (1) Amount reported in the balance sheet. (2) At fair value. |
Schedule of Fixed Maturities by Contractual Maturity | A schedule of fixed maturities available for sale by contractual maturity date at March 31, 2020 is shown below on an amortized cost, net of allowance for credit losses basis and on a fair value basis. Actual disposition dates could differ from contractual maturities due to call or prepayment provisions. At March 31, 2020 Amortized Fair Fixed maturities available for sale: Due in one year or less $ 51,897 $ 52,538 Due after one year through five years 668,783 705,821 Due after five years through ten years 1,684,359 1,852,455 Due after ten years through twenty years 5,647,201 6,462,058 Due after twenty years 8,099,163 8,613,350 Mortgage-backed and asset-backed securities 188,687 193,319 $ 16,340,090 $ 17,879,541 |
Schedule of Analysis of Investment Operations | Net investment income for the three month periods ended March 31, 2020 and 2019 is summarized as follows: Three Months Ended 2020 2019 % Fixed maturities available for sale $ 217,127 $ 215,763 1 Policy loans 11,118 10,636 5 Other long-term investments (1) 4,623 3,388 36 Short-term investments 307 819 (63) 233,175 230,606 1 Less investment expense (4,184) (3,933) 6 Net investment income $ 228,991 $ 226,673 1 |
Schedule of Selected Information about Sales of Fixed Maturities Available for Sale | Selected information about sales of fixed maturities available for sale is as follows: Three Months Ended 2020 2019 Fixed maturities available for sale: Proceeds from sales (1) $ 50,360 $ 34,997 Gross realized gains 2,642 46 Gross realized losses — (3,027) |
Realized Gains (Losses) on Investments | An analysis of realized gains (losses) is as follows: Three Months Ended 2020 2019 Realized investment gains (losses): Fixed maturities available for sale: Sales and other (1) $ 4,934 $ 3,670 Provision for credit losses (31,854) — Fair value option—change in fair value 583 (2,185) Other investments 240 (156) Realized gains (losses) from investments (26,097) 1,329 Applicable tax 5,480 (279) Realized gains (losses), net of tax $ (20,617) $ 1,050 (1) During the three months ended March 31, 2020 and 2019, the Company recorded $5.9 million and $68.9 million of exchanges of fixed maturities (noncash transactions) that resulted in $0 and $5.8 million, respectively in realized gains (losses). |
Unrealized Gain (Loss) on Investments | The following tables represent the fair value of fixed maturities measured on a recurring basis at March 31, 2020 and December 31, 2019: Fair Value Measurement at March 31, 2020 Using: Quoted Prices in Significant Other Significant Total Fair Fixed maturities available for sale U.S. Government direct, guaranteed, and government-sponsored enterprises $ — $ 455,551 $ — $ 455,551 States, municipalities, and political subdivisions — 1,739,474 — 1,739,474 Foreign governments — 24,305 — 24,305 Corporates, by sector: Financial — 4,421,164 139,777 4,560,941 Utilities — 2,116,566 147,309 2,263,875 Energy — 1,433,768 32,500 1,466,268 Other corporate sectors — 6,877,424 298,809 7,176,233 Total corporates — 14,848,922 618,395 15,467,317 Collateralized debt obligations — — 68,373 68,373 Other asset-backed securities — 111,754 12,767 124,521 Total fixed maturities $ — $ 17,180,006 $ 699,535 $ 17,879,541 Percentage of total — % 96 % 4 % 100 % Fair Value Measurement at December 31, 2019 Using: Quoted Prices in Significant Other Significant Total Fair Fixed maturities available for sale U.S. Government direct, guaranteed, and government-sponsored enterprises $ — $ 437,520 $ — $ 437,520 States, municipalities, and political subdivisions — 1,717,656 — 1,717,656 Foreign governments — 27,551 — 27,551 Corporates, by sector: Financial — 4,628,875 151,931 4,780,806 Utilities — 2,195,539 156,748 2,352,287 Energy — 1,873,482 41,402 1,914,884 Other corporate sectors — 7,131,773 322,047 7,453,820 Total corporates — 15,829,669 672,128 16,501,797 Collateralized debt obligations — — 74,104 74,104 Other asset-backed securities — 135,342 13,177 148,519 Total fixed maturities $ — $ 18,147,738 $ 759,409 $ 18,907,147 Percentage of total — % 96 % 4 % 100 % |
Schedule of Changes in Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs, and Unrealized Gains (Losses) Included in Other Comprehensive Income | The following tables represent changes in fixed maturities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Asset- backed Securities Collateralized Corporates Total Balance at January 1, 2020 $ 13,177 $ 74,104 $ 672,128 $ 759,409 Included in realized gains / losses — — 1,213 1,213 Included in other comprehensive income (276) (5,475) (34,072) (39,823) Acquisitions — — — — Sales — — — — Amortization — 1,139 2 1,141 Other (1) (134) (1,395) (20,876) (22,405) Transfers into Level 3 (2) — — — — Transfers out of Level 3 (2) — — — — Balance at March 31, 2020 $ 12,767 $ 68,373 $ 618,395 $ 699,535 Percent of total fixed maturities — % 0.4 % 3.5 % 3.9 % (1) Includes capitalized interest, foreign exchange adjustments, and principal repayments. (2) Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available. Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Asset- backed Securities Collateralized Corporates Total Balance at January 1, 2019 $ 12,982 $ 73,369 $ 553,471 $ 639,822 Included in realized gains / losses — — — — Included in other comprehensive income 298 4,176 10,663 15,137 Acquisitions — — — — Sales — — — — Amortization — 1,162 3 1,165 Other (1) (126) (1,458) (1,817) (3,401) Transfers into Level 3 (2) — — — — Transfers out of Level 3 (2) — — — — Balance at March 31, 2019 $ 13,154 $ 77,249 $ 562,320 $ 652,723 Percent of total fixed maturities 0.1 % 0.4 % 3.3 % 3.8 % (1) Includes capitalized interest, foreign exchange adjustments, and principal repayments. (2) Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available. The following table presents changes in unrealized gains or (losses) for the period included in other comprehensive income for assets held at the end of the reporting period for Level 3s: Changes in Unrealized Gains/Losses included in Other Comprehensive Income for Assets Held at the End of the Period Asset- Collateralized Corporates Total At March 31, 2020 $ (276) $ (5,475) $ (34,072) $ (39,823) At March 31, 2019 298 4,176 10,663 15,137 |
Schedule of Additional Information about Investments in Unrealized Loss Position | The following table discloses information about fixed maturities available for sale in an unrealized loss position. Less than Twelve Months Twelve Months or Longer Total Number of issues (CUSIPs) held: As of March 31, 2020 348 34 382 As of December 31, 2019 82 51 133 |
Schedule of Unrealized Investment Losses by Class of Investment | The following table discloses unrealized investment losses by class and major sector of fixed maturities available for sale for which an allowance for credit losses has not been recorded at March 31, 2020. Analysis of Gross Unrealized Investment Losses At March 31, 2020 Less than Twelve Months Twelve Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities available for sale: Investment grade securities: U.S. Government direct, guaranteed, and government-sponsored enterprises $ — $ — $ 1,896 $ (124) $ 1,896 $ (124) States, municipalities and political subdivisions 133,114 (4,411) — — 133,114 (4,411) Foreign governments 5,751 (196) — — 5,751 (196) Corporates, by sector: Financial 662,300 (43,549) 5,105 (3,395) 667,405 (46,944) Utilities 158,406 (3,790) — — 158,406 (3,790) Energy 815,807 (172,760) 1,218 (730) 817,025 (173,490) Other corporate sectors 1,006,257 (62,923) 27,162 (2,656) 1,033,419 (65,579) Total corporates 2,642,770 (283,022) 33,485 (6,781) 2,676,255 (289,803) Other asset-backed securities 79,404 (5,992) 8 — 79,412 (5,992) Total investment grade securities 2,861,039 (293,621) 35,389 (6,905) 2,896,428 (300,526) Below investment grade securities: States, municipalities and political subdivisions — — — — — — Corporates, by sector: Financial 19,232 (3,397) 91,734 (40,990) 110,966 (44,387) Utilities 27,081 (3,405) 12,976 (3,273) 40,057 (6,678) Energy 56,412 (30,872) 30,509 (31,391) 86,921 (62,263) Other corporate sectors 125,431 (10,434) 63,801 (16,260) 189,232 (26,694) Total corporates 228,156 (48,108) 199,020 (91,914) 427,176 (140,022) Collateralized debt obligations — — 9,876 (10,124) 9,876 (10,124) Other asset-backed securities — — 12,736 (1,439) 12,736 (1,439) Total below investment grade securities 228,156 (48,108) 221,632 (103,477) 449,788 (151,585) Total fixed maturities $ 3,089,195 $ (341,729) $ 257,021 $ (110,382) $ 3,346,216 $ (452,111) Gross unrealized losses may fluctuate quarter over quarter due to adverse factors in the market that affect our holdings, such as changes in interest rates or credit spreads. As noted in Note 1 , the Company considers many factors when determining whether a credit loss exists. While the Company holds securities that may be in an unrealized loss position from time to time, Globe Life does not intend to sell and it is likely that Management will not be required to sell the fixed maturities prior to their anticipated recovery due to the strong cash flows generated by its insurance operations. The following table discloses unrealized investment losses by class and major sector of fixed maturities available for sale at December 31, 2019. Globe Life considered these investments to be only temporarily impaired. Analysis of Gross Unrealized Investment Losses At December 31, 2019 Less than Twelve Months Twelve Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities available for sale: Investment grade securities: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 1,255 $ (2) $ 21,044 $ (294) $ 22,299 $ (296) States, municipalities and political subdivisions 66,774 (626) — — 66,774 (626) Foreign governments 6,496 (396) — — 6,496 (396) Corporates, by sector: Financial 117,389 (1,733) 7,183 (1,317) 124,572 (3,050) Utilities 8,400 (166) — — 8,400 (166) Energy 52,312 (1,058) 1,833 (115) 54,145 (1,173) Other corporate sectors 136,386 (1,584) 61,473 (3,260) 197,859 (4,844) Total corporates 314,487 (4,541) 70,489 (4,692) 384,976 (9,233) Other asset-backed securities — — — — — — Total investment grade securities 389,012 (5,565) 91,533 (4,986) 480,545 (10,551) Below investment grade securities: States, municipalities and political subdivisions — — — — — — Corporates, by sector: Financial — — 113,481 (19,257) 113,481 (19,257) Utilities 7,529 (135) 14,985 (1,264) 22,514 (1,399) Energy 14,968 (146) 69,956 (32,406) 84,924 (32,552) Other corporate sectors — — 67,655 (11,921) 67,655 (11,921) Total corporates 22,497 (281) 266,077 (64,848) 288,574 (65,129) Collateralized debt obligations — — 12,816 (7,184) 12,816 (7,184) Other asset-backed securities — — 13,879 (371) 13,879 (371) Total below investment grade securities 22,497 (281) 292,772 (72,403) 315,269 (72,684) Total fixed maturities $ 411,509 $ (5,846) $ 384,305 $ (77,389) $ 795,814 $ (83,235) |
Fixed Maturities, Allowance for Credit Loss | Corporates Balance at January 1, 2020 $ — Additions to allowance for which credit losses were not previously recorded 31,854 Additions (reductions) to allowance for fixed maturities that previously had an allowance — Reduction of allowance for which the Company intends to sell or more likely than not will be required to sell — Balance at March 31, 2020 $ 31,854 |
Other Long-Term Investments | Other long-term investments consist of the following assets: March 31, December 31, Investment funds $ 211,791 $ 185,851 Commercial mortgage loan participations 161,841 137,692 Other 3,607 2,804 Total $ 377,239 $ 326,347 |
Summary of Commercial Mortgage Loan Participations | Summaries of commercial mortgage loans by property type and geographical location at March 31, 2020 and December 31, 2019 are as follows: March 31, 2020 December 31, 2019 Carrying Value % of Total Carrying Value % of Total Property type: Office $ 42,670 26 $ 42,350 31 Mixed use 42,010 26 27,501 20 Hospitality 22,602 14 22,324 16 Industrial 22,422 14 17,612 13 Retail 18,605 11 17,318 12 Multi-family 13,867 9 10,587 8 Total recorded investment 162,176 100 137,692 100 Less allowance for credit losses (335) — — — Carrying value, net of allowance for credit losses $ 161,841 100 $ 137,692 100 March 31, 2020 December 31, 2019 Carrying Value % of Total Carrying Value % of Total Geographic location: South Atlantic $ 51,539 32 $ 50,867 37 Pacific 55,909 35 36,546 27 Middle Atlantic 28,073 17 25,328 18 East North Central 10,579 6 10,568 8 West South Central 8,368 5 8,072 6 East South Central 4,684 3 4,676 3 West North Central 1,386 1 — — New England 1,638 1 1,635 1 Total recorded investment 162,176 100 137,692 100 Less allowance for credit losses (335) — — — Carrying value, net of allowance for credit losses $ 161,841 100 $ 137,692 100 |
Financing Receivable, Allowance for Credit Loss | Commercial Mortgage Loans Balance at January 1, 2020 $ — Cumulative effect of adoption ASU 2016-13 335 Provision for credit losses — Balance at March 31, 2020 $ 335 |
Financing Receivable Credit Quality Indicators | March 31, 2020 Recorded Investment Debt Service Coverage Ratios (1) <1.00x 1.00x—1.20x >1.20x Total % of Total Loan-to-value ratio (2) : Less than 70% $ 62,270 $ 67,799 $ 12,678 $ 142,747 88 70% to 80% 13,047 1,790 — 14,837 9 81% to 90% — — — — — Greater than 90% 4,592 — — 4,592 3 Total $ 79,909 $ 69,589 $ 12,678 $ 162,176 100 (1) Annual net operating income divided by annual mortgage debt service (principal and interest). (2) Loan balance divided by the fair value of the property. LTVs are generally assessed on an annual basis, or more frequently when a loan is materially underperforming, 30 days delinquent, or in technical default. December 31, 2019 Recorded Investment Debt Service Coverage Ratios (1) <1.00x 1.00x—1.20x >1.20x Total % of Total Loan-to-value ratio: Less than 70% $ 64,160 $ 47,634 $ 12,666 $ 124,460 90 70% to 80% 11,445 1,787 — 13,232 10 81% to 90% — — — — — Greater than 90% — — — — — Total $ 75,605 $ 49,421 $ 12,666 $ 137,692 100 (1) Annual net operating income divided by annual mortgage debt service (principal and interest). |
Liability for Unpaid Claims (Ta
Liability for Unpaid Claims (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Insurance [Abstract] | |
Summary of Liability for Unpaid Health Claims | Activity in the liability for unpaid health claims is summarized as follows: Three Months Ended 2020 2019 Balance at beginning of period $ 163,808 $ 154,528 Incurred related to: Current year 165,129 151,230 Prior year (5,358) 1,166 Total incurred 159,771 152,396 Paid related to: Current year 69,495 60,055 Prior year 92,050 88,445 Total paid 161,545 148,500 Balance at end of period $ 162,034 $ 158,424 |
Reconciliation of Policy Claims and Other Benefits Payable | Below is the reconciliation of the liability of "Policy claims and other benefits payable " in the Condensed Consolidated Balance Sheets . March 31, December 31, Policy claims and other benefits payable: Life insurance $ 202,242 $ 201,594 Health insurance 162,034 163,808 Total $ 364,276 $ 365,402 |
Postretirement Benefits (Tables
Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Pension Assets by Component at Fair Value | Pension Assets by Component at March 31, 2020 Fair Value Determined by: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Amount % to Total Corporate bonds: Financial $ — $ 48,063 $ — $ 48,063 12 Utilities — 42,204 — 42,204 10 Energy — 16,472 — 16,472 4 Other corporates — 87,542 — 87,542 21 Total corporate bonds — 194,281 — 194,281 47 Exchange traded fund (1) 166,692 — — 166,692 40 Other bonds — 264 — 264 — Guaranteed annuity contract (2) — 28,418 — 28,418 7 Short-term investments 8,327 — — 8,327 2 Other 6,220 — — 6,220 1 $ 181,239 $ 222,963 $ — 404,202 97 Other long-term investments (3) 11,611 3 Total pension assets $ 415,813 100 (1) A fund including marketable securities that mirror the S&P 500 index. (2) Representing a guaranteed annuity contract issued by Globe Life's subsidiary, American Income Life Insurance Company, to fund the obligations of the American Income Life Insurance Company Non-Exempt Employees Defined Benefit Pension Plan ("American Income Pension Plan"). (3) Included in other long-term investments is an investment fund that reports the Pension Plan's pro-rata share of the limited partnership's net asset value per share or its equivalent (NAV), as a practical expedient for fair value. The Pension Plan owns less than 1% of the investment fund. As of March 31, 2020, the expected term of the investment fund is approximately 5 years and the unfunded commitment of the investment fund is $4.9 million. The investment is non-redeemable. The investment fund strategy is opportunistic, applying a comprehensive relative value approach across various asset classes and opportunities in public and private markets, geographies, and capital structures. Pension Assets by Component at December 31, 2019 Fair Value Determined by: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Amount % to Total Corporate bonds: Financial $ — $ 51,111 $ — $ 51,111 11 Utilities — 42,758 — 42,758 9 Energy — 21,907 — 21,907 5 Other corporates — 89,725 — 89,725 19 Total corporate bonds — 205,501 — 205,501 44 Exchange traded fund (1) 207,176 — — 207,176 44 Other bonds — 251 — 251 — Guaranteed annuity contract (2) — 28,278 — 28,278 6 Short-term investments 8,414 — — 8,414 2 Other 6,876 — — 6,876 1 $ 222,466 $ 234,030 $ — 456,496 97 Other long-term investments (3) 12,267 3 Total pension assets $ 468,763 100 (1) A fund including marketable securities that mirror the S&P 500 index. (2) Representing a guaranteed annuity contract issued by Globe Life's subsidiary, American Income Life Insurance Company, to fund the obligations of the American Income Pension Plan. (3) Included in other long-term investments is an investment fund that reports the Pension Plan's pro-rata share of the limited partnership's net asset value per share or its equivalent (NAV), as a practical expedient for fair value. The Pension Plan owns approximately 1% of the investment fund. As of December 31, 2019, the expected term of the investment fund is approximately 5 years and the unfunded commitment of the investment fund is $4.1 million. The investment is non-redeemable. The investment fund strategy is opportunistic, applying a comprehensive relative value approach across various asset classes and opportunities in public and private markets, geographies, and capital structures. |
Information Regarding the SERP | The following table includes information regarding the SERP. Three Months Ended 2020 2019 Premiums paid for insurance coverage $ 443 $ 444 March 31, December 31, Total investments: Company owned life insurance $ 48,497 $ 47,733 Exchange traded funds 55,303 65,585 $ 103,800 $ 113,318 |
Pension Liability | The following table presents liabilities for the defined benefit pension plans and SERP at March 31, 2020 and December 31, 2019. March 31, December 31, Defined benefit pension $ 529,218 $ 578,860 SERP 86,410 86,347 Pension benefit obligation $ 615,628 $ 665,207 |
Net Periodic Benefit Cost | The following table presents the net periodic benefit costs for the defined benefit pension plans and SERP by expense components for the three months ended March 31, 2020 and 2019. Components of Net Periodic Benefit Cost Three Months Ended 2020 2019 Service cost $ 6,116 $ 4,982 Interest cost 5,651 5,964 Expected return on assets (7,390) (6,966) Amortization: Prior service cost 158 158 Actuarial (gain) loss 3,924 1,894 Net periodic benefit cost $ 8,459 $ 6,032 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Weighted-Average Shares Outstanding | A reconciliation of basic and diluted weighted-average shares outstanding used in the computation of basic and diluted earnings per share is as follows: Three Months Ended 2020 2019 Basic weighted average shares outstanding 107,285,223 110,301,527 Weighted average dilutive options outstanding 1,847,021 2,027,348 Diluted weighted average shares outstanding 109,132,244 112,328,875 Antidilutive shares 529,129 1,846,151 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Premium Income by Distribution Channel | Premium Income by Distribution Channel Three Months Ended March 31, 2020 Life Health Annuity Total Distribution Channel Amount % of Amount % of Amount % of Amount % of American Income $ 302,852 47 $ 25,727 9 $ — — $ 328,579 35 Direct to Consumer 220,043 34 19,796 7 — — 239,839 26 Liberty National 72,868 11 47,640 17 — — 120,508 13 United American 2,490 — 110,059 39 — — 112,549 12 Family Heritage 1,021 — 76,983 28 — — 78,004 8 Other 50,356 8 — — — — 50,356 6 $ 649,630 100 $ 280,205 100 $ — — $ 929,835 100 Three Months Ended March 31, 2019 Life Health Annuity Total Distribution Channel Amount % of Total Amount % of Total Amount % of Total Amount % of Total American Income $ 281,767 45 $ 24,099 9 $ — — $ 305,866 34 Direct to Consumer 217,559 35 20,260 8 — — 237,819 27 Liberty National 70,717 11 48,156 18 — — 118,873 13 United American 2,751 1 102,905 38 — — 105,656 12 Family Heritage 931 — 71,264 27 — — 72,195 8 Other 50,564 8 — — — — 50,564 6 $ 624,289 100 $ 266,684 100 $ — — $ 890,973 100 |
Reconciliation of Segment Operating Information to Consolidated Statement of Operations | Three Months Ended March 31, 2020 Life Health Annuity Investment Corporate & Other Adjustments Consolidated Revenue: Premium $ 649,630 $ 280,205 $ — $ — $ — $ — $ 929,835 Net investment income — — — 228,991 — — 228,991 Other income — — — — 325 — 325 Total revenue 649,630 280,205 — 228,991 325 — 1,159,151 Expenses: Policy benefits 421,670 178,711 7,588 — — — 607,969 Required interest on reserves (171,205) (22,510) (10,456) 204,171 — — — Required interest on DAC 52,118 6,519 88 (58,725) — — — Amortization of acquisition costs 114,308 29,025 504 — — — 143,837 Commissions, premium taxes, and non-deferred acquisition costs 53,936 24,995 6 — — — 78,937 Insurance administrative expense (1) — — — — 63,620 3,275 (2) 66,895 Parent expense — — — — 2,331 — 2,331 Stock-based compensation expense — — — — 9,356 — 9,356 Interest expense — — — 20,808 — — 20,808 Total expenses 470,827 216,740 (2,270) 166,254 75,307 3,275 930,133 Subtotal 178,803 63,465 2,270 62,737 (74,982) (3,275) 229,018 Non-operating items — — — — — 3,275 (2) 3,275 Measure of segment profitability (pretax) $ 178,803 $ 63,465 $ 2,270 $ 62,737 $ (74,982) $ — 232,293 Realized gain (loss)—investments (26,097) Legal proceedings (3,275) Income before income taxes per Condensed Consolidated Statements of Operations $ 202,921 (1) Administrative expense is not allocated to insurance segments. (2) Legal proceedings—See Note 5 for further discussion. Three Months Ended March 31, 2019 Life Health Annuity Investment Corporate & Other Adjustments Consolidated Revenue: Premium $ 624,289 $ 266,684 $ — $ — $ — $ — $ 890,973 Net investment income — — — 226,673 — — 226,673 Other income — — — — 241 — 241 Total revenue 624,289 266,684 — 226,673 241 — 1,117,887 Expenses: Policy benefits 409,692 170,017 8,048 — — — 587,757 Required interest on reserves (163,662) (21,496) (11,120) 196,278 — — — Required interest on DAC 50,024 6,283 131 (56,438) — — — Amortization of acquisition costs 108,290 27,014 518 — — — 135,822 Commissions, premium taxes, and non-deferred acquisition costs 50,106 23,352 7 — — — 73,465 Insurance administrative expense (1) — — — — 59,191 400 (2) 59,591 Parent expense — — — — 2,643 — 2,643 Stock-based compensation expense — — — — 10,559 — 10,559 Interest expense — — — 21,278 — — 21,278 Total expenses 454,450 205,170 (2,416) 161,118 72,393 400 891,115 Subtotal 169,839 61,514 2,416 65,555 (72,152) (400) 226,772 Non-operating items — — — — — 400 (2) 400 Measure of segment profitability (pretax) $ 169,839 $ 61,514 $ 2,416 $ 65,555 $ (72,152) $ — 227,172 Realized gain (loss)—investments 1,329 Administrative settlements (400) Income before income taxes per Condensed Consolidated Statements of Operations $ 228,101 (1) Administrative expense is not allocated to insurance segments. (2) In 2019, the Company recorded $400 thousand in administrative settlements related to state regulatory examinations. |
Significant Accounting Polici_4
Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020USD ($)numberOfSegments | Jan. 01, 2020USD ($) | Dec. 31, 2019USD ($) | ||
Accounting Policies [Abstract] | ||||
Number of reportable segments | numberOfSegments | 4 | |||
Assets: | ||||
Other long-term investments | $ 377,239 | $ 326,347 | ||
Agent debit balances | 424,000 | 423,877 | ||
Agent debit balances, allowance for credit losses | 1,200 | 1,000 | ||
Commercial mortgage participations | ||||
Assets: | ||||
Other long-term investments | 161,841 | 137,692 | ||
Accrued interest receivable | 454 | |||
Carrying value, net of valuation allowance | 161,841 | 137,692 | ||
Commercial mortgage participations | Unfunded commitment | ||||
Assets: | ||||
Carrying value, net of valuation allowance | $ 87,000 | |||
Cumulative Effect, Period Of Adoption, Adjustment | ||||
Assets: | ||||
Agent debit balances | $ (240) | |||
Cumulative Effect, Period Of Adoption, Adjustment | Commercial mortgage participations | ||||
Assets: | ||||
Other long-term investments | (335) | |||
Cumulative Effect, Period Of Adoption, Adjusted Balance | ||||
Assets: | ||||
Agent debit balances | 423,637 | |||
Cumulative Effect, Period Of Adoption, Adjusted Balance | Commercial mortgage participations | ||||
Assets: | ||||
Other long-term investments | $ 137,357 | |||
ASU 2016-13 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Adoption of accounting standard | [1] | (454) | ||
ASU 2016-13 | Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Adoption of accounting standard | [1] | (454) | ||
ASU 2016-13, adjustment, net of tax, for commercial loan participations | Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Adoption of accounting standard | 265 | |||
ASU 2016-13, adjustment for agent debit balances | Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Adoption of accounting standard | $ (189) | |||
[1] | Adoption of Accounting Standard Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, on January 1, 2020. See more information in Note 2, New Accounting Standards . |
Supplemental Information abou_3
Supplemental Information about Changes to Accumulated Other Comprehensive Income - Schedule of Change in Balance by Component (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Increase (Decrease) in AOCI, Net of Tax | ||
Beginning balance | $ 7,294,307 | $ 5,415,177 |
Other comprehensive income (loss) before reclassifications, net of tax | (804,312) | 550,848 |
Reclassifications, net of tax | 25,729 | (256) |
Other comprehensive income (loss) | (778,583) | 550,592 |
Ending balance | 6,520,282 | 6,043,426 |
Total | ||
Increase (Decrease) in AOCI, Net of Tax | ||
Beginning balance | 1,844,830 | 319,475 |
Ending balance | 1,066,247 | 870,067 |
Available for Sale Assets | ||
Increase (Decrease) in AOCI, Net of Tax | ||
Beginning balance | 1,982,650 | 435,698 |
Other comprehensive income (loss) before reclassifications, net of tax | (782,936) | 550,934 |
Reclassifications, net of tax | 22,445 | (1,931) |
Other comprehensive income (loss) | (760,491) | 549,003 |
Ending balance | 1,222,159 | 984,701 |
Deferred Acquisition Costs | ||
Increase (Decrease) in AOCI, Net of Tax | ||
Beginning balance | (5,916) | (4,163) |
Other comprehensive income (loss) before reclassifications, net of tax | 303 | (2,528) |
Reclassifications, net of tax | 0 | 0 |
Other comprehensive income (loss) | 303 | (2,528) |
Ending balance | (5,613) | (6,691) |
Foreign Exchange | ||
Increase (Decrease) in AOCI, Net of Tax | ||
Beginning balance | 12,058 | 6,495 |
Other comprehensive income (loss) before reclassifications, net of tax | (21,679) | 2,442 |
Reclassifications, net of tax | 0 | 0 |
Other comprehensive income (loss) | (21,679) | 2,442 |
Ending balance | (9,621) | 8,937 |
Pension Adjustments | ||
Increase (Decrease) in AOCI, Net of Tax | ||
Beginning balance | (143,962) | (118,555) |
Other comprehensive income (loss) before reclassifications, net of tax | 0 | 0 |
Reclassifications, net of tax | 3,284 | 1,675 |
Other comprehensive income (loss) | 3,284 | 1,675 |
Ending balance | $ (140,678) | $ (116,880) |
Supplemental Information abou_4
Supplemental Information about Changes to Accumulated Other Comprehensive Income - Summary of Reclassifications (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Unrealized investment (gains) losses on available for sale assets: | ||
Realized (gains) losses | $ 26,097 | $ (1,329) |
Net investment income | (228,991) | (226,673) |
Other operating expense | 78,582 | 72,793 |
Total before tax | (202,921) | (228,101) |
Tax | 37,381 | 42,707 |
Total after-tax | (165,540) | (185,345) |
Reclassification out of Accumulated Other Comprehensive Income | ||
Unrealized investment (gains) losses on available for sale assets: | ||
Total after-tax | 25,729 | (256) |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Available for Sale Assets | ||
Unrealized investment (gains) losses on available for sale assets: | ||
Realized (gains) losses | 26,920 | (3,670) |
Net investment income | 1,492 | 1,226 |
Total before tax | 28,412 | (2,444) |
Tax | (5,967) | 513 |
Total after-tax | 22,445 | (1,931) |
Reclassification out of Accumulated Other Comprehensive Income | Pension Adjustments | ||
Unrealized investment (gains) losses on available for sale assets: | ||
Total before tax | 4,157 | 2,120 |
Tax | (873) | (445) |
Total after-tax | 3,284 | 1,675 |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of prior service cost | ||
Unrealized investment (gains) losses on available for sale assets: | ||
Other operating expense | 158 | 158 |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of actuarial (gain) loss | ||
Unrealized investment (gains) losses on available for sale assets: | ||
Other operating expense | $ 3,999 | $ 1,962 |
Investments - Summary of Fixed
Investments - Summary of Fixed Maturities Available for Sale by Component (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 16,371,944 | $ 16,415,776 |
Allowance for Credit Losses | (31,854) | 0 |
Fair Value | 17,879,541 | 18,907,147 |
Corporates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Allowance for Credit Losses | (31,854) | 0 |
Fixed maturities available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 16,371,944 | 16,415,776 |
Allowance for Credit Losses | (31,854) | |
Gross Unrealized Gains | 1,991,562 | 2,574,606 |
Gross Unrealized Losses | (452,111) | (83,235) |
Fair Value | $ 17,879,541 | $ 18,907,147 |
Percentage of Fixed Maturities at Fair Value | 100.00% | 100.00% |
Fixed maturities available for sale | U.S. Government direct, guaranteed, and government-sponsored enterprises | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 374,781 | $ 396,079 |
Allowance for Credit Losses | 0 | |
Gross Unrealized Gains | 80,894 | 41,737 |
Gross Unrealized Losses | (124) | (296) |
Fair Value | $ 455,551 | $ 437,520 |
Percentage of Fixed Maturities at Fair Value | 2.00% | 2.00% |
Fixed maturities available for sale | States, municipalities, and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,582,294 | $ 1,559,736 |
Allowance for Credit Losses | 0 | |
Gross Unrealized Gains | 161,591 | 158,546 |
Gross Unrealized Losses | (4,411) | (626) |
Fair Value | $ 1,739,474 | $ 1,717,656 |
Percentage of Fixed Maturities at Fair Value | 10.00% | 9.00% |
Fixed maturities available for sale | Foreign governments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 22,403 | $ 25,874 |
Allowance for Credit Losses | 0 | |
Gross Unrealized Gains | 2,098 | 2,073 |
Gross Unrealized Losses | (196) | (396) |
Fair Value | $ 24,305 | $ 27,551 |
Percentage of Fixed Maturities at Fair Value | 0.00% | 0.00% |
Fixed maturities available for sale | Corporates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 14,204,173 | $ 14,233,301 |
Allowance for Credit Losses | (31,854) | |
Gross Unrealized Gains | 1,724,823 | 2,342,858 |
Gross Unrealized Losses | (429,825) | (74,362) |
Fair Value | $ 15,467,317 | $ 16,501,797 |
Percentage of Fixed Maturities at Fair Value | 87.00% | 88.00% |
Fixed maturities available for sale | Corporates | Financial | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 4,107,145 | $ 4,101,917 |
Allowance for Credit Losses | 0 | |
Gross Unrealized Gains | 545,127 | 701,196 |
Gross Unrealized Losses | (91,331) | (22,307) |
Fair Value | $ 4,560,941 | $ 4,780,806 |
Percentage of Fixed Maturities at Fair Value | 26.00% | 25.00% |
Fixed maturities available for sale | Corporates | Utilities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,927,517 | $ 1,937,738 |
Allowance for Credit Losses | 0 | |
Gross Unrealized Gains | 346,826 | 416,114 |
Gross Unrealized Losses | (10,468) | (1,565) |
Fair Value | $ 2,263,875 | $ 2,352,287 |
Percentage of Fixed Maturities at Fair Value | 13.00% | 13.00% |
Fixed maturities available for sale | Corporates | Energy | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,662,009 | $ 1,678,969 |
Allowance for Credit Losses | (31,854) | |
Gross Unrealized Gains | 71,866 | 269,640 |
Gross Unrealized Losses | (235,753) | (33,725) |
Fair Value | $ 1,466,268 | $ 1,914,884 |
Percentage of Fixed Maturities at Fair Value | 8.00% | 10.00% |
Fixed maturities available for sale | Corporates | Other corporate sectors | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 6,507,502 | $ 6,514,677 |
Allowance for Credit Losses | 0 | |
Gross Unrealized Gains | 761,004 | 955,908 |
Gross Unrealized Losses | (92,273) | (16,765) |
Fair Value | $ 7,176,233 | $ 7,453,820 |
Percentage of Fixed Maturities at Fair Value | 40.00% | 40.00% |
Fixed maturities available for sale | Collateralized debt obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 56,733 | $ 56,990 |
Allowance for Credit Losses | 0 | |
Gross Unrealized Gains | 21,764 | 24,298 |
Gross Unrealized Losses | (10,124) | (7,184) |
Fair Value | $ 68,373 | $ 74,104 |
Percentage of Fixed Maturities at Fair Value | 0.00% | 0.00% |
Fixed maturities available for sale | Other asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 131,560 | $ 143,796 |
Allowance for Credit Losses | 0 | |
Gross Unrealized Gains | 392 | 5,094 |
Gross Unrealized Losses | (7,431) | (371) |
Fair Value | $ 124,521 | $ 148,519 |
Percentage of Fixed Maturities at Fair Value | 1.00% | 1.00% |
Investments - Schedule of Fixed
Investments - Schedule of Fixed Maturities by Contractual Maturity (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Amortized Cost, net | ||
Due in one year or less | $ 51,897 | |
Due after one year through five years | 668,783 | |
Due after five years through ten years | 1,684,359 | |
Due after ten years through twenty years | 5,647,201 | |
Due after twenty years | 8,099,163 | |
Mortgage-backed and asset-backed securities | 188,687 | |
Fixed maturities, net of allowance for credit losses | 16,340,090 | |
Fair Value | ||
Due in one year or less | 52,538 | |
Due after one year through five years | 705,821 | |
Due after five years through ten years | 1,852,455 | |
Due after ten years through twenty years | 6,462,058 | |
Due after twenty years | 8,613,350 | |
Mortgage-backed and asset-backed securities | 193,319 | |
Fixed maturities, fair value | $ 17,879,541 | $ 18,907,147 |
Investments - Schedule of Analy
Investments - Schedule of Analysis of Investment Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net Investment Income [Line Items] | ||
Investment income, gross | $ 233,175 | $ 230,606 |
Less investment expense | (4,184) | (3,933) |
Net investment income | $ 228,991 | 226,673 |
Percentage change in investment income, gross | 1.00% | |
Percentage change in investment expense | 6.00% | |
Percentage change in net investment income | 1.00% | |
Fixed maturities available for sale | ||
Net Investment Income [Line Items] | ||
Investment income, gross | $ 217,127 | 215,763 |
Percentage change in investment income, gross | 1.00% | |
Policy loans | ||
Net Investment Income [Line Items] | ||
Investment income, gross | $ 11,118 | 10,636 |
Percentage change in investment income, gross | 5.00% | |
Other long-term investments | ||
Net Investment Income [Line Items] | ||
Investment income, gross | $ 4,623 | 3,388 |
Percentage change in investment income, gross | 36.00% | |
Short-term investments | ||
Net Investment Income [Line Items] | ||
Investment income, gross | $ 307 | 819 |
Percentage change in investment income, gross | (63.00%) | |
Fair value option | ||
Net Investment Income [Line Items] | ||
Net investment income | $ 2,000 | $ 1,300 |
Investments - Schedule of Selec
Investments - Schedule of Selected Information about Sales of Fixed Maturities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | ||
Proceeds from sales | $ 50,360 | $ 34,997 |
Fixed maturities available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Proceeds from sales | 50,360 | 34,997 |
Gross realized gains | 2,642 | 46 |
Gross realized losses | $ 0 | $ (3,027) |
Investments - Realized Gain (Lo
Investments - Realized Gain (Loss) on Investments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Realized investment gains (losses) - sales and other | $ 4,934 | $ 3,670 |
Provision for credit losses | 31,854 | 0 |
Fair value option—change in fair value | 583 | (2,185) |
Other investments | 240 | (156) |
Realized gains (losses) from investments | (26,097) | 1,329 |
Applicable tax | 5,480 | (279) |
Realized gains (losses), net of tax | (20,617) | 1,050 |
Exchanges of fixed maturities | 5,900 | 68,900 |
Exchanges of fixed maturities, net realized gains | $ 0 | $ 5,800 |
Investments - Assets Measured a
Investments - Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 17,879,541 | $ 18,907,147 |
Fixed maturities available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 17,879,541 | $ 18,907,147 |
Percentage of total | 100.00% | 100.00% |
Fixed maturities available for sale | U.S. Government direct, guaranteed, and government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 455,551 | $ 437,520 |
Fixed maturities available for sale | States, municipalities, and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,739,474 | 1,717,656 |
Fixed maturities available for sale | Foreign governments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 24,305 | 27,551 |
Fixed maturities available for sale | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 15,467,317 | 16,501,797 |
Fixed maturities available for sale | Corporates | Financial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 4,560,941 | 4,780,806 |
Fixed maturities available for sale | Corporates | Utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2,263,875 | 2,352,287 |
Fixed maturities available for sale | Corporates | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,466,268 | 1,914,884 |
Fixed maturities available for sale | Corporates | Other corporate sectors | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 7,176,233 | 7,453,820 |
Fixed maturities available for sale | Collateralized debt obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 68,373 | 74,104 |
Fixed maturities available for sale | Other asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 124,521 | 148,519 |
Fixed maturities available for sale | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 0 | $ 0 |
Percentage of total | 0.00% | 0.00% |
Fixed maturities available for sale | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government direct, guaranteed, and government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 0 | $ 0 |
Fixed maturities available for sale | Quoted Prices in Active Markets for Identical Assets (Level 1) | States, municipalities, and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fixed maturities available for sale | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign governments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fixed maturities available for sale | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fixed maturities available for sale | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporates | Financial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fixed maturities available for sale | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporates | Utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fixed maturities available for sale | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporates | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fixed maturities available for sale | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporates | Other corporate sectors | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fixed maturities available for sale | Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateralized debt obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fixed maturities available for sale | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fixed maturities available for sale | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 17,180,006 | $ 18,147,738 |
Percentage of total | 96.00% | 96.00% |
Fixed maturities available for sale | Significant Other Observable Inputs (Level 2) | U.S. Government direct, guaranteed, and government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 455,551 | $ 437,520 |
Fixed maturities available for sale | Significant Other Observable Inputs (Level 2) | States, municipalities, and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,739,474 | 1,717,656 |
Fixed maturities available for sale | Significant Other Observable Inputs (Level 2) | Foreign governments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 24,305 | 27,551 |
Fixed maturities available for sale | Significant Other Observable Inputs (Level 2) | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 14,848,922 | 15,829,669 |
Fixed maturities available for sale | Significant Other Observable Inputs (Level 2) | Corporates | Financial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 4,421,164 | 4,628,875 |
Fixed maturities available for sale | Significant Other Observable Inputs (Level 2) | Corporates | Utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2,116,566 | 2,195,539 |
Fixed maturities available for sale | Significant Other Observable Inputs (Level 2) | Corporates | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,433,768 | 1,873,482 |
Fixed maturities available for sale | Significant Other Observable Inputs (Level 2) | Corporates | Other corporate sectors | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 6,877,424 | 7,131,773 |
Fixed maturities available for sale | Significant Other Observable Inputs (Level 2) | Collateralized debt obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fixed maturities available for sale | Significant Other Observable Inputs (Level 2) | Other asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 111,754 | 135,342 |
Fixed maturities available for sale | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 699,535 | $ 759,409 |
Percentage of total | 4.00% | 4.00% |
Fixed maturities available for sale | Significant Unobservable Inputs (Level 3) | U.S. Government direct, guaranteed, and government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 0 | $ 0 |
Fixed maturities available for sale | Significant Unobservable Inputs (Level 3) | States, municipalities, and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fixed maturities available for sale | Significant Unobservable Inputs (Level 3) | Foreign governments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fixed maturities available for sale | Significant Unobservable Inputs (Level 3) | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 618,395 | 672,128 |
Fixed maturities available for sale | Significant Unobservable Inputs (Level 3) | Corporates | Financial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 139,777 | 151,931 |
Fixed maturities available for sale | Significant Unobservable Inputs (Level 3) | Corporates | Utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 147,309 | 156,748 |
Fixed maturities available for sale | Significant Unobservable Inputs (Level 3) | Corporates | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 32,500 | 41,402 |
Fixed maturities available for sale | Significant Unobservable Inputs (Level 3) | Corporates | Other corporate sectors | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 298,809 | 322,047 |
Fixed maturities available for sale | Significant Unobservable Inputs (Level 3) | Collateralized debt obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 68,373 | 74,104 |
Fixed maturities available for sale | Significant Unobservable Inputs (Level 3) | Other asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 12,767 | $ 13,177 |
Investments - Schedule of Chang
Investments - Schedule of Changes in Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Beginning Balance | $ 759,409 | $ 639,822 |
Included in realized gains / losses | 1,213 | 0 |
Included in other comprehensive income | (39,823) | 15,137 |
Acquisitions | 0 | 0 |
Sales | 0 | 0 |
Amortization | 1,141 | 1,165 |
Other | (22,405) | (3,401) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | $ 699,535 | $ 652,723 |
Percent of total fixed maturities | 3.90% | 3.80% |
Asset- backed Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Beginning Balance | $ 13,177 | $ 12,982 |
Included in realized gains / losses | 0 | 0 |
Included in other comprehensive income | (276) | 298 |
Acquisitions | 0 | 0 |
Sales | 0 | 0 |
Amortization | 0 | 0 |
Other | (134) | (126) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | $ 12,767 | $ 13,154 |
Percent of total fixed maturities | 0.00% | 0.10% |
Collateralized debt obligations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Beginning Balance | $ 74,104 | $ 73,369 |
Included in realized gains / losses | 0 | 0 |
Included in other comprehensive income | (5,475) | 4,176 |
Acquisitions | 0 | 0 |
Sales | 0 | 0 |
Amortization | 1,139 | 1,162 |
Other | (1,395) | (1,458) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | $ 68,373 | $ 77,249 |
Percent of total fixed maturities | 0.40% | 0.40% |
Corporates | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Beginning Balance | $ 672,128 | $ 553,471 |
Included in realized gains / losses | 1,213 | 0 |
Included in other comprehensive income | (34,072) | 10,663 |
Acquisitions | 0 | 0 |
Sales | 0 | 0 |
Amortization | 2 | 3 |
Other | (20,876) | (1,817) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | $ 618,395 | $ 562,320 |
Percent of total fixed maturities | 3.50% | 3.30% |
Investments - Unrealized Gains
Investments - Unrealized Gains or (Losses) Included in Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gains/Losses included in Other Comprehensive Income for Assets Held at the End of the Period | $ (39,823) | $ 15,137 |
Asset- backed Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gains/Losses included in Other Comprehensive Income for Assets Held at the End of the Period | (276) | 298 |
Collateralized debt obligations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gains/Losses included in Other Comprehensive Income for Assets Held at the End of the Period | (5,475) | 4,176 |
Corporates | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Changes in Unrealized Gains/Losses included in Other Comprehensive Income for Assets Held at the End of the Period | $ (34,072) | $ 10,663 |
Investments - Information about
Investments - Information about Investments in Unrealized Loss Position (Detail) - Issue | Mar. 31, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Less than Twelve Months | 348 | 82 |
Twelve Months or Longer | 34 | 51 |
Total | 382 | 133 |
Fixed maturity portfolio issues | 1,676 | 1,633 |
Investments - Schedule of Unrea
Investments - Schedule of Unrealized Investment Losses by Class of Investment (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | $ 3,089,195 | $ 411,509 |
Unrealized Loss, Less than Twelve Months | (341,729) | (5,846) |
Fair Value, Twelve Months or Longer | 257,021 | 384,305 |
Unrealized Loss, Twelve Months or Longer | (110,382) | (77,389) |
Fair Value | 3,346,216 | 795,814 |
Total | (452,111) | (83,235) |
Investment Grade | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 2,861,039 | 389,012 |
Unrealized Loss, Less than Twelve Months | (293,621) | (5,565) |
Fair Value, Twelve Months or Longer | 35,389 | 91,533 |
Unrealized Loss, Twelve Months or Longer | (6,905) | (4,986) |
Fair Value | 2,896,428 | 480,545 |
Total | (300,526) | (10,551) |
Investment Grade | U.S. Government direct, guaranteed, and government-sponsored enterprises | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 0 | 1,255 |
Unrealized Loss, Less than Twelve Months | 0 | (2) |
Fair Value, Twelve Months or Longer | 1,896 | 21,044 |
Unrealized Loss, Twelve Months or Longer | (124) | (294) |
Fair Value | 1,896 | 22,299 |
Total | (124) | (296) |
Investment Grade | States, municipalities, and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 133,114 | 66,774 |
Unrealized Loss, Less than Twelve Months | (4,411) | (626) |
Fair Value, Twelve Months or Longer | 0 | 0 |
Unrealized Loss, Twelve Months or Longer | 0 | 0 |
Fair Value | 133,114 | 66,774 |
Total | (4,411) | (626) |
Investment Grade | Foreign governments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 5,751 | 6,496 |
Unrealized Loss, Less than Twelve Months | (196) | (396) |
Fair Value, Twelve Months or Longer | 0 | 0 |
Unrealized Loss, Twelve Months or Longer | 0 | 0 |
Fair Value | 5,751 | 6,496 |
Total | (196) | (396) |
Investment Grade | Corporates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 2,642,770 | 314,487 |
Unrealized Loss, Less than Twelve Months | (283,022) | (4,541) |
Fair Value, Twelve Months or Longer | 33,485 | 70,489 |
Unrealized Loss, Twelve Months or Longer | (6,781) | (4,692) |
Fair Value | 2,676,255 | 384,976 |
Total | (289,803) | (9,233) |
Investment Grade | Other asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 79,404 | 0 |
Unrealized Loss, Less than Twelve Months | (5,992) | 0 |
Fair Value, Twelve Months or Longer | 8 | 0 |
Unrealized Loss, Twelve Months or Longer | 0 | 0 |
Fair Value | 79,412 | 0 |
Total | (5,992) | 0 |
Investment Grade | Financial | Corporates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 662,300 | 117,389 |
Unrealized Loss, Less than Twelve Months | (43,549) | (1,733) |
Fair Value, Twelve Months or Longer | 5,105 | 7,183 |
Unrealized Loss, Twelve Months or Longer | (3,395) | (1,317) |
Fair Value | 667,405 | 124,572 |
Total | (46,944) | (3,050) |
Investment Grade | Utilities | Corporates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 158,406 | 8,400 |
Unrealized Loss, Less than Twelve Months | (3,790) | (166) |
Fair Value, Twelve Months or Longer | 0 | 0 |
Unrealized Loss, Twelve Months or Longer | 0 | 0 |
Fair Value | 158,406 | 8,400 |
Total | (3,790) | (166) |
Investment Grade | Energy | Corporates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 815,807 | 52,312 |
Unrealized Loss, Less than Twelve Months | (172,760) | (1,058) |
Fair Value, Twelve Months or Longer | 1,218 | 1,833 |
Unrealized Loss, Twelve Months or Longer | (730) | (115) |
Fair Value | 817,025 | 54,145 |
Total | (173,490) | (1,173) |
Investment Grade | Other corporate sectors | Corporates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 1,006,257 | 136,386 |
Unrealized Loss, Less than Twelve Months | (62,923) | (1,584) |
Fair Value, Twelve Months or Longer | 27,162 | 61,473 |
Unrealized Loss, Twelve Months or Longer | (2,656) | (3,260) |
Fair Value | 1,033,419 | 197,859 |
Total | (65,579) | (4,844) |
Below Investment Grade | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 228,156 | 22,497 |
Unrealized Loss, Less than Twelve Months | (48,108) | (281) |
Fair Value, Twelve Months or Longer | 221,632 | 292,772 |
Unrealized Loss, Twelve Months or Longer | (103,477) | (72,403) |
Fair Value | 449,788 | 315,269 |
Total | (151,585) | (72,684) |
Below Investment Grade | States, municipalities, and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 0 | 0 |
Unrealized Loss, Less than Twelve Months | 0 | 0 |
Fair Value, Twelve Months or Longer | 0 | 0 |
Unrealized Loss, Twelve Months or Longer | 0 | 0 |
Fair Value | 0 | 0 |
Total | 0 | 0 |
Below Investment Grade | Corporates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 228,156 | 22,497 |
Unrealized Loss, Less than Twelve Months | (48,108) | (281) |
Fair Value, Twelve Months or Longer | 199,020 | 266,077 |
Unrealized Loss, Twelve Months or Longer | (91,914) | (64,848) |
Fair Value | 427,176 | 288,574 |
Total | (140,022) | (65,129) |
Below Investment Grade | Collateralized debt obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 0 | 0 |
Unrealized Loss, Less than Twelve Months | 0 | 0 |
Fair Value, Twelve Months or Longer | 9,876 | 12,816 |
Unrealized Loss, Twelve Months or Longer | (10,124) | (7,184) |
Fair Value | 9,876 | 12,816 |
Total | (10,124) | (7,184) |
Below Investment Grade | Other asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 0 | 0 |
Unrealized Loss, Less than Twelve Months | 0 | 0 |
Fair Value, Twelve Months or Longer | 12,736 | 13,879 |
Unrealized Loss, Twelve Months or Longer | (1,439) | (371) |
Fair Value | 12,736 | 13,879 |
Total | (1,439) | (371) |
Below Investment Grade | Financial | Corporates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 19,232 | 0 |
Unrealized Loss, Less than Twelve Months | (3,397) | 0 |
Fair Value, Twelve Months or Longer | 91,734 | 113,481 |
Unrealized Loss, Twelve Months or Longer | (40,990) | (19,257) |
Fair Value | 110,966 | 113,481 |
Total | (44,387) | (19,257) |
Below Investment Grade | Utilities | Corporates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 27,081 | 7,529 |
Unrealized Loss, Less than Twelve Months | (3,405) | (135) |
Fair Value, Twelve Months or Longer | 12,976 | 14,985 |
Unrealized Loss, Twelve Months or Longer | (3,273) | (1,264) |
Fair Value | 40,057 | 22,514 |
Total | (6,678) | (1,399) |
Below Investment Grade | Energy | Corporates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 56,412 | 14,968 |
Unrealized Loss, Less than Twelve Months | (30,872) | (146) |
Fair Value, Twelve Months or Longer | 30,509 | 69,956 |
Unrealized Loss, Twelve Months or Longer | (31,391) | (32,406) |
Fair Value | 86,921 | 84,924 |
Total | (62,263) | (32,552) |
Below Investment Grade | Other corporate sectors | Corporates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 125,431 | 0 |
Unrealized Loss, Less than Twelve Months | (10,434) | 0 |
Fair Value, Twelve Months or Longer | 63,801 | 67,655 |
Unrealized Loss, Twelve Months or Longer | (16,260) | (11,921) |
Fair Value | 189,232 | 67,655 |
Total | $ (26,694) | $ (11,921) |
Investments - Fixed Maturities,
Investments - Fixed Maturities, Allowance for Credit Loss (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 0 |
Additions to allowance for which credit losses were not previously recorded | 32,000 |
Ending balance | 31,854 |
Corporates | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | 0 |
Additions to allowance for which credit losses were not previously recorded | 31,854 |
Additions (reductions) to allowance for fixed maturities that previously had an allowance | 0 |
Reduction of allowance for which the Company intends to sell or more likely than not will be required to sell | 0 |
Ending balance | $ 31,854 |
Investments - Schedule of Other
Investments - Schedule of Other Long-Term Investments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Long-Term Investment [Line Items] | ||
Other long-term investments | $ 377,239 | $ 326,347 |
Capital called from investment funds | $ 25,000 | |
Investment funds | Minimum | ||
Long-Term Investment [Line Items] | ||
Investment funds ownership percentage | 1.00% | |
Investment funds | Maximum | ||
Long-Term Investment [Line Items] | ||
Investment funds ownership percentage | 20.00% | |
Commercial mortgage participations | ||
Long-Term Investment [Line Items] | ||
Other long-term investments | $ 161,841 | 137,692 |
Other | ||
Long-Term Investment [Line Items] | ||
Other long-term investments | 3,607 | 2,804 |
Partnership Interest - Fair Value Option | Investment funds | ||
Long-Term Investment [Line Items] | ||
Other long-term investments | $ 211,791 | $ 185,851 |
Investments - Commercial Mortga
Investments - Commercial Mortgage Loan Participations (Details) - Commercial mortgage participations $ in Thousands | Mar. 31, 2020USD ($)loan | Dec. 31, 2019USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | $ 162,176 | $ 137,692 |
Carrying value, gross, percent | 100.00% | 100.00% |
Allowance for credit losses | $ (335) | $ 0 |
Allowance for credit losses, percent | 0.00% | 0.00% |
Carrying value, net of valuation allowance | $ 161,841 | $ 137,692 |
Carrying value, net, percent | 100.00% | 100.00% |
Number of loans | loan | 27 | |
South Atlantic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | $ 51,539 | $ 50,867 |
Carrying value, gross, percent | 32.00% | 37.00% |
Pacific | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | $ 55,909 | $ 36,546 |
Carrying value, gross, percent | 35.00% | 27.00% |
Middle Atlantic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | $ 28,073 | $ 25,328 |
Carrying value, gross, percent | 17.00% | 18.00% |
East North Central | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | $ 10,579 | $ 10,568 |
Carrying value, gross, percent | 6.00% | 8.00% |
West South Central | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | $ 8,368 | $ 8,072 |
Carrying value, gross, percent | 5.00% | 6.00% |
East South Central | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | $ 4,684 | $ 4,676 |
Carrying value, gross, percent | 3.00% | 3.00% |
West North Central | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | $ 1,386 | $ 0 |
Carrying value, gross, percent | 1.00% | 0.00% |
New England | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | $ 1,638 | $ 1,635 |
Carrying value, gross, percent | 1.00% | 1.00% |
Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | $ 42,670 | $ 42,350 |
Carrying value, gross, percent | 26.00% | 31.00% |
Mixed use | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | $ 42,010 | $ 27,501 |
Carrying value, gross, percent | 26.00% | 20.00% |
Hospitality | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | $ 22,602 | $ 22,324 |
Carrying value, gross, percent | 14.00% | 16.00% |
Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | $ 22,422 | $ 17,612 |
Carrying value, gross, percent | 14.00% | 13.00% |
Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | $ 18,605 | $ 17,318 |
Carrying value, gross, percent | 11.00% | 12.00% |
Multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | $ 13,867 | $ 10,587 |
Carrying value, gross, percent | 9.00% | 8.00% |
Investments - Financing Receiva
Investments - Financing Receivables, Allowance for Credit Loss (Details) - Commercial mortgage participations $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 0 |
Provision for credit losses | 0 |
Ending balance | 335 |
Cumulative Effect, Period Of Adoption, Adjustment | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 335 |
Investments - Commercial Mort_2
Investments - Commercial Mortgage Loan Participations Recorded Investment (Details) - Commercial mortgage participations - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | $ 162,176 | $ 137,692 |
Carrying value, gross, percent | 100.00% | 100.00% |
Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | $ 42,670 | $ 42,350 |
Carrying value, gross, percent | 26.00% | 31.00% |
Mixed use | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | $ 42,010 | $ 27,501 |
Carrying value, gross, percent | 26.00% | 20.00% |
Hospitality | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | $ 22,602 | $ 22,324 |
Carrying value, gross, percent | 14.00% | 16.00% |
Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | $ 22,422 | $ 17,612 |
Carrying value, gross, percent | 14.00% | 13.00% |
Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | $ 18,605 | $ 17,318 |
Carrying value, gross, percent | 11.00% | 12.00% |
Multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | $ 13,867 | $ 10,587 |
Carrying value, gross, percent | 9.00% | 8.00% |
Less than 70% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | $ 142,747 | $ 124,460 |
Carrying value, gross, percent | 88.00% | 90.00% |
70% to 80% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | $ 14,837 | $ 13,232 |
Carrying value, gross, percent | 9.00% | 10.00% |
81% to 90% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | $ 0 | $ 0 |
Carrying value, gross, percent | 0.00% | 0.00% |
Greater than 90% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | $ 4,592 | $ 0 |
Carrying value, gross, percent | 3.00% | 0.00% |
Less Than 1.00x | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | $ 79,909 | $ 75,605 |
Less Than 1.00x | Less than 70% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | 62,270 | 64,160 |
Less Than 1.00x | 70% to 80% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | 13,047 | 11,445 |
Less Than 1.00x | 81% to 90% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | 0 | 0 |
Less Than 1.00x | Greater than 90% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | 4,592 | 0 |
1.00x-1.20x | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | 69,589 | 49,421 |
1.00x-1.20x | Less than 70% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | 67,799 | 47,634 |
1.00x-1.20x | 70% to 80% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | 1,790 | 1,787 |
1.00x-1.20x | 81% to 90% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | 0 | 0 |
1.00x-1.20x | Greater than 90% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | 0 | 0 |
Greater Than 1.20x | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | 12,678 | 12,666 |
Greater Than 1.20x | Less than 70% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | 12,678 | 12,666 |
Greater Than 1.20x | 70% to 80% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | 0 | 0 |
Greater Than 1.20x | 81% to 90% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | 0 | 0 |
Greater Than 1.20x | Greater than 90% | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value, gross | $ 0 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Apr. 02, 2019 |
Short-term Debt [Line Items] | ||
Letters of credit facility outstanding | $ 150 | $ 150 |
Letter of Credit | ||
Short-term Debt [Line Items] | ||
Letter of credit maximum available amount | $ 250 |
Liability for Unpaid Claims - S
Liability for Unpaid Claims - Summary of Liability for Unpaid Health Claims (Details) - Health premium - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Activity in the Liability for Unpaid Health Claims | ||
Beginning balance | $ 163,808 | $ 154,528 |
Incurred related to: | ||
Current year | 165,129 | 151,230 |
Prior years | (5,358) | 1,166 |
Total incurred | 159,771 | 152,396 |
Paid related to: | ||
Current year | 69,495 | 60,055 |
Prior year | 92,050 | 88,445 |
Total paid | 161,545 | 148,500 |
Ending balance | $ 162,034 | $ 158,424 |
Liability for Unpaid Claims - R
Liability for Unpaid Claims - Reconciliation of Net Incurred and Paid Claims Development to Liability (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Policy claims and other benefits payable: | ||
Policy claims and other benefits payable | $ 364,276 | $ 365,402 |
Life insurance | ||
Policy claims and other benefits payable: | ||
Policy claims and other benefits payable | 202,242 | 201,594 |
Health premium | ||
Policy claims and other benefits payable: | ||
Policy claims and other benefits payable | $ 162,034 | $ 163,808 |
Postretirement Benefits - Pensi
Postretirement Benefits - Pension Assets by Components at Fair Value (Detail) - Pension plan - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 415,813 | $ 468,763 |
Percentage of plan assets | 100.00% | 100.00% |
Investment funds, percentage ownership by pension plan | 1.00% | 1.00% |
Expected life of investment | 5 years | 5 years |
Investment funds, unfunded commitments | $ 4,900 | $ 4,100 |
Fair Value, Inputs, Level 1, 2 and 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 404,202 | $ 456,496 |
Percentage of plan assets | 97.00% | 97.00% |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 181,239 | $ 222,466 |
Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 222,963 | 234,030 |
Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value Measured at Net Asset Value Per Share | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 11,611 | $ 12,267 |
Percentage of plan assets | 3.00% | 3.00% |
Total corporate bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | $ 194,281 | $ 205,501 |
Percentage of total plan assets, within plan asset category | 47.00% | 44.00% |
Total corporate bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | $ 0 | $ 0 |
Total corporate bonds | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | 194,281 | 205,501 |
Total corporate bonds | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | 0 | 0 |
Financial | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | $ 48,063 | $ 51,111 |
Percentage of total plan assets, within plan asset category | 12.00% | 11.00% |
Financial | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | $ 0 | $ 0 |
Financial | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | 48,063 | 51,111 |
Financial | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | 0 | 0 |
Utilities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | $ 42,204 | $ 42,758 |
Percentage of total plan assets, within plan asset category | 10.00% | 9.00% |
Utilities | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | $ 0 | $ 0 |
Utilities | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | 42,204 | 42,758 |
Utilities | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | 0 | 0 |
Energy | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | $ 16,472 | $ 21,907 |
Percentage of total plan assets, within plan asset category | 4.00% | 5.00% |
Energy | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | $ 0 | $ 0 |
Energy | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | 16,472 | 21,907 |
Energy | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | 0 | 0 |
Other corporates | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | $ 87,542 | $ 89,725 |
Percentage of total plan assets, within plan asset category | 21.00% | 19.00% |
Other corporates | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | $ 0 | $ 0 |
Other corporates | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | 87,542 | 89,725 |
Other corporates | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | 0 | 0 |
Exchange traded funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | $ 166,692 | $ 207,176 |
Percentage of total plan assets, within plan asset category | 40.00% | 44.00% |
Exchange traded funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | $ 166,692 | $ 207,176 |
Exchange traded funds | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | 0 | 0 |
Exchange traded funds | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | 0 | 0 |
Other bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | $ 264 | $ 251 |
Percentage of total plan assets, within plan asset category | 0.00% | 0.00% |
Other bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | $ 0 | $ 0 |
Other bonds | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | 264 | 251 |
Other bonds | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | 0 | 0 |
Guaranteed annuity contract | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | $ 28,418 | $ 28,278 |
Percentage of total plan assets, within plan asset category | 7.00% | 6.00% |
Guaranteed annuity contract | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | $ 0 | $ 0 |
Guaranteed annuity contract | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | 28,418 | 28,278 |
Guaranteed annuity contract | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | 0 | 0 |
Short-term investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | $ 8,327 | $ 8,414 |
Percentage of total plan assets, within plan asset category | 2.00% | 2.00% |
Short-term investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | $ 8,327 | $ 8,414 |
Short-term investments | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | 0 | 0 |
Short-term investments | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | 0 | 0 |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | $ 6,220 | $ 6,876 |
Percentage of total plan assets, within plan asset category | 1.00% | 1.00% |
Other | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | $ 6,220 | $ 6,876 |
Other | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | 0 | 0 |
Other | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, within plan asset category | $ 0 | $ 0 |
Postretirement Benefits - Activ
Postretirement Benefits - Activity for the SERP (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |||
Premiums paid for COLI | $ 443 | $ 444 | |
Total investments: | |||
COLI | 48,497 | $ 47,733 | |
Exchange traded funds | 55,303 | 65,585 | |
Total investments of SERP | $ 103,800 | $ 113,318 |
Postretirement Benefits - Pen_2
Postretirement Benefits - Pension Liability (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
PBO | $ 615,628 | $ 665,207 |
Qualified Plan | Funded defined benefit pension | Funded defined benefit pension | ||
Defined Benefit Plan Disclosure [Line Items] | ||
PBO | 529,218 | 578,860 |
Nonqualified Plan | SERP | ||
Defined Benefit Plan Disclosure [Line Items] | ||
PBO | $ 86,410 | $ 86,347 |
Postretirement Benefits - Compo
Postretirement Benefits - Components of Net Periodic Pension Costs and Post-Retirement Benefit Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 6,116 | $ 4,982 |
Interest cost | 5,651 | 5,964 |
Expected return on assets | (7,390) | (6,966) |
Amortization: | ||
Prior service cost | 158 | 158 |
Actuarial (gain) loss | 3,924 | 1,894 |
Net periodic benefit cost | $ 8,459 | $ 6,032 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Basic weighted average shares outstanding (in shares) | 107,285,223 | 110,301,527 |
Weighted average dilutive options outstanding (in shares) | 1,847,021 | 2,027,348 |
Diluted weighted average shares outstanding (in shares) | 109,132,244 | 112,328,875 |
Antidilutive shares (in shares) | 529,129 | 1,846,151 |
Business Segments - Segment Pre
Business Segments - Segment Premium Income by Distribution Channel and Additional Information (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)numberOfSegments | Mar. 31, 2019USD ($) | |
Segment Reporting [Abstract] | ||
Number of segments | numberOfSegments | 4 | |
Segment Reporting Information [Line Items] | ||
Amount | $ 929,835 | $ 890,973 |
% of Total | 100.00% | 100.00% |
Life | ||
Segment Reporting Information [Line Items] | ||
Amount | $ 649,630 | $ 624,289 |
% of Total | 100.00% | 100.00% |
Health | ||
Segment Reporting Information [Line Items] | ||
Amount | $ 280,205 | $ 266,684 |
% of Total | 100.00% | 100.00% |
American Income | ||
Segment Reporting Information [Line Items] | ||
Amount | $ 328,579 | $ 305,866 |
% of Total | 35.00% | 34.00% |
American Income | Life | ||
Segment Reporting Information [Line Items] | ||
Amount | $ 302,852 | $ 281,767 |
% of Total | 47.00% | 45.00% |
American Income | Health | ||
Segment Reporting Information [Line Items] | ||
Amount | $ 25,727 | $ 24,099 |
% of Total | 9.00% | 9.00% |
Direct to Consumer | ||
Segment Reporting Information [Line Items] | ||
Amount | $ 239,839 | $ 237,819 |
% of Total | 26.00% | 27.00% |
Direct to Consumer | Life | ||
Segment Reporting Information [Line Items] | ||
Amount | $ 220,043 | $ 217,559 |
% of Total | 34.00% | 35.00% |
Direct to Consumer | Health | ||
Segment Reporting Information [Line Items] | ||
Amount | $ 19,796 | $ 20,260 |
% of Total | 7.00% | 8.00% |
Liberty National | ||
Segment Reporting Information [Line Items] | ||
Amount | $ 120,508 | $ 118,873 |
% of Total | 13.00% | 13.00% |
Liberty National | Life | ||
Segment Reporting Information [Line Items] | ||
Amount | $ 72,868 | $ 70,717 |
% of Total | 11.00% | 11.00% |
Liberty National | Health | ||
Segment Reporting Information [Line Items] | ||
Amount | $ 47,640 | $ 48,156 |
% of Total | 17.00% | 18.00% |
United American | ||
Segment Reporting Information [Line Items] | ||
Amount | $ 112,549 | $ 105,656 |
% of Total | 12.00% | 12.00% |
United American | Life | ||
Segment Reporting Information [Line Items] | ||
Amount | $ 2,490 | $ 2,751 |
% of Total | 0.00% | 1.00% |
United American | Health | ||
Segment Reporting Information [Line Items] | ||
Amount | $ 110,059 | $ 102,905 |
% of Total | 39.00% | 38.00% |
Family Heritage | ||
Segment Reporting Information [Line Items] | ||
Amount | $ 78,004 | $ 72,195 |
% of Total | 8.00% | 8.00% |
Family Heritage | Life | ||
Segment Reporting Information [Line Items] | ||
Amount | $ 1,021 | $ 931 |
Family Heritage | Health | ||
Segment Reporting Information [Line Items] | ||
Amount | $ 76,983 | $ 71,264 |
% of Total | 28.00% | 27.00% |
Other | ||
Segment Reporting Information [Line Items] | ||
Amount | $ 50,356 | $ 50,564 |
% of Total | 6.00% | 6.00% |
Other | Life | ||
Segment Reporting Information [Line Items] | ||
Amount | $ 50,356 | $ 50,564 |
% of Total | 8.00% | 8.00% |
Business Segments - Reconciliat
Business Segments - Reconciliation of Segment Operating Information to Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue: | ||
Premium | $ 929,835 | $ 890,973 |
Net investment income | 228,991 | 226,673 |
Other income | 325 | 241 |
Total revenue | 1,159,151 | 1,117,887 |
Expenses: | ||
Policy benefits | 607,969 | 587,757 |
Required interest on reserves | 0 | 0 |
Required interest on DAC | 0 | 0 |
Amortization of acquisition costs | 143,837 | 135,822 |
Commissions, premium taxes, and non-deferred acquisition costs | 78,937 | 73,465 |
Insurance administrative expense | 66,895 | 59,591 |
Parent expense | 2,331 | 2,643 |
Stock-based compensation expense | 9,356 | 10,559 |
Interest expense | 20,808 | 21,278 |
Total benefits and expenses | 930,133 | 891,115 |
Subtotal | 229,018 | 226,772 |
Non-operating items | 3,275 | 400 |
Measure of segment profitability (pretax) | 232,293 | 227,172 |
Realized gains (losses) | (26,097) | 1,329 |
Legal proceedings | (3,275) | |
Administrative settlements | (400) | |
Income before income taxes | 202,921 | 228,101 |
Operating Segments | Life | ||
Revenue: | ||
Premium | 649,630 | 624,289 |
Net investment income | 0 | 0 |
Other income | 0 | 0 |
Total revenue | 649,630 | 624,289 |
Expenses: | ||
Policy benefits | 421,670 | 409,692 |
Required interest on reserves | (171,205) | (163,662) |
Required interest on DAC | 52,118 | 50,024 |
Amortization of acquisition costs | 114,308 | 108,290 |
Commissions, premium taxes, and non-deferred acquisition costs | 53,936 | 50,106 |
Insurance administrative expense | 0 | 0 |
Parent expense | 0 | 0 |
Stock-based compensation expense | 0 | 0 |
Interest expense | 0 | 0 |
Total benefits and expenses | 470,827 | 454,450 |
Subtotal | 178,803 | 169,839 |
Measure of segment profitability (pretax) | 178,803 | 169,839 |
Operating Segments | Health | ||
Revenue: | ||
Premium | 280,205 | 266,684 |
Net investment income | 0 | 0 |
Other income | 0 | 0 |
Total revenue | 280,205 | 266,684 |
Expenses: | ||
Policy benefits | 178,711 | 170,017 |
Required interest on reserves | (22,510) | (21,496) |
Required interest on DAC | 6,519 | 6,283 |
Amortization of acquisition costs | 29,025 | 27,014 |
Commissions, premium taxes, and non-deferred acquisition costs | 24,995 | 23,352 |
Insurance administrative expense | 0 | 0 |
Parent expense | 0 | 0 |
Stock-based compensation expense | 0 | 0 |
Interest expense | 0 | 0 |
Total benefits and expenses | 216,740 | 205,170 |
Subtotal | 63,465 | 61,514 |
Measure of segment profitability (pretax) | 63,465 | 61,514 |
Operating Segments | Annuity | ||
Revenue: | ||
Premium | 0 | 0 |
Net investment income | 0 | 0 |
Other income | 0 | 0 |
Total revenue | 0 | 0 |
Expenses: | ||
Policy benefits | 7,588 | 8,048 |
Required interest on reserves | (10,456) | (11,120) |
Required interest on DAC | 88 | 131 |
Amortization of acquisition costs | 504 | 518 |
Commissions, premium taxes, and non-deferred acquisition costs | 6 | 7 |
Insurance administrative expense | 0 | 0 |
Parent expense | 0 | 0 |
Stock-based compensation expense | 0 | 0 |
Interest expense | 0 | 0 |
Total benefits and expenses | (2,270) | (2,416) |
Subtotal | 2,270 | 2,416 |
Measure of segment profitability (pretax) | 2,270 | 2,416 |
Operating Segments | Investment | ||
Revenue: | ||
Premium | 0 | 0 |
Net investment income | 228,991 | 226,673 |
Other income | 0 | 0 |
Total revenue | 228,991 | 226,673 |
Expenses: | ||
Policy benefits | 0 | 0 |
Required interest on reserves | 204,171 | 196,278 |
Required interest on DAC | (58,725) | (56,438) |
Amortization of acquisition costs | 0 | 0 |
Commissions, premium taxes, and non-deferred acquisition costs | 0 | 0 |
Insurance administrative expense | 0 | 0 |
Parent expense | 0 | 0 |
Stock-based compensation expense | 0 | 0 |
Interest expense | 20,808 | 21,278 |
Total benefits and expenses | 166,254 | 161,118 |
Subtotal | 62,737 | 65,555 |
Measure of segment profitability (pretax) | 62,737 | 65,555 |
Corporate & Other | ||
Revenue: | ||
Premium | 0 | 0 |
Net investment income | 0 | 0 |
Other income | 325 | 241 |
Total revenue | 325 | 241 |
Expenses: | ||
Policy benefits | 0 | 0 |
Required interest on reserves | 0 | 0 |
Required interest on DAC | 0 | 0 |
Amortization of acquisition costs | 0 | 0 |
Commissions, premium taxes, and non-deferred acquisition costs | 0 | 0 |
Insurance administrative expense | 63,620 | 59,191 |
Parent expense | 2,331 | 2,643 |
Stock-based compensation expense | 9,356 | 10,559 |
Interest expense | 0 | 0 |
Total benefits and expenses | 75,307 | 72,393 |
Subtotal | (74,982) | (72,152) |
Measure of segment profitability (pretax) | (74,982) | (72,152) |
Adjustments | ||
Revenue: | ||
Other income | 0 | |
Total revenue | 0 | 0 |
Expenses: | ||
Commissions, premium taxes, and non-deferred acquisition costs | 0 | |
Insurance administrative expense | 3,275 | 400 |
Parent expense | 0 | 0 |
Total benefits and expenses | 3,275 | 400 |
Subtotal | (3,275) | (400) |
Non-operating items | 3,275 | $ 400 |
Measure of segment profitability (pretax) | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) | Apr. 15, 2020 | Apr. 09, 2020 |
Subsequent Event [Line Items] | ||
Debt instrument term | 364 days | |
Maximum borrowing capacity | $ 300,000,000 | |
Proceeds from credit facility | $ 300,000,000 |