Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Mar. 16, 2022 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Annual Report | true | |
Document Period End Date | Dec. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | FY | |
Document Transition Report | false | |
Entity File Number | 033-37587 | |
Entity Registrant Name | PRUCO LIFE INSURANCE CO | |
Entity Central Index Key | 0000777917 | |
Entity Incorporation, State or Country Code | AZ | |
Entity Tax Identification Number | 22-1944557 | |
Entity Address, Address Line One | 213 Washington Street | |
Entity Address, City or Town | Newark | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07102 | |
City Area Code | 973 | |
Local Phone Number | 802-6000 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 250,000 | |
Entity Public Float | $ 0 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | New York, New York |
Auditor Firm ID | 238 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Fixed maturities, available-for-sale, at fair value (allowance for credit losses: 2021 – $4,149; 2020 – $2,339) (amortized cost: 2021 – $12,737,749; 2020 – $6,157,371) | $ 13,278,166 | $ 7,012,631 |
Fixed maturities, trading, at fair value (amortized cost: 2021 – $3,319,660; 2020 – $73,413) | 3,302,392 | 82,482 |
Equity securities, at fair value (cost: 2021 – $106,174; 2020 – $105,508) | 111,267 | 108,457 |
Policy loans | 1,327,485 | 1,323,681 |
Short-term investments | 182,437 | 49,997 |
Commercial mortgage and other loans (net of $5,951 and $4,552 allowance for credit losses at December 31, 2021 and December 31, 2020, respectively) | 2,832,560 | 1,288,846 |
Other invested assets (includes $348,004 and $94,939 measured at fair value at December 31, 2021 and 2020, respectively) | 1,209,925 | 520,955 |
Total investments | 22,244,232 | 10,387,049 |
Cash and cash equivalents | 918,931 | 426,979 |
Deferred policy acquisition costs | 6,830,972 | 2,433,936 |
Accrued investment income | 160,027 | 93,613 |
Reinsurance recoverables | 38,598,767 | 48,367,096 |
Receivables from parent and affiliates | 278,131 | 266,473 |
Deferred sales inducements | 374,649 | 0 |
Income taxes receivable | 1,316,879 | 175,024 |
Other assets | 1,140,948 | 417,508 |
Separate account assets | 149,797,828 | 145,740,422 |
TOTAL ASSETS | 221,661,364 | 208,308,100 |
LIABILITIES | ||
Future policy benefits | 27,927,029 | 32,889,181 |
Policyholders’ account balances | 35,361,795 | 23,857,574 |
Cash collateral for loaned securities | 3,004 | 2,725 |
Long-term debt to affiliates | 320,362 | 0 |
Payables to parent and affiliates | 31,775 | 75,990 |
Other Liabilities | 2,264,477 | 1,694,492 |
Separate account liabilities | 149,797,828 | 145,740,422 |
Total liabilities | 215,706,270 | 204,260,384 |
Commitments and Contingent Liabilities | ||
EQUITY | ||
Common stock ($10 par value; 1,000,000 shares authorized; 250,000 shares issued and outstanding) | 2,500 | 2,500 |
Additional paid-in capital | 6,042,491 | 1,726,690 |
Retained earnings | (437,332) | 1,772,398 |
Accumulated other comprehensive income (loss) | 347,435 | 546,128 |
Total equity | 5,955,094 | 4,047,716 |
TOTAL LIABILITIES AND EQUITY | $ 221,661,364 | $ 208,308,100 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Fixed Maturities, Available-for-sale, at fair value (AFS), Allowance for Credit Losses | $ 4,149 | $ 2,339 |
Fixed maturities, available-for-sale, amortized cost | 12,737,749 | 6,157,371 |
Fixed maturities, trading, amortized cost | 3,319,660 | 73,413 |
Equity securities, at cost | 106,174 | 105,508 |
Commercial mtg and other loans, allowance for credit losses | 5,951 | 4,552 |
Other invested assets, at fair value | $ 348,004 | $ 94,939 |
Common stock, par value (in dollars per share) | $ 10 | $ 10 |
Common stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, shares issued | 250,000 | 250,000 |
Common stock, shares outstanding | 250,000 | 250,000 |
Consolidated Statement of Opera
Consolidated Statement of Operations and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
REVENUES | |||
Premiums | $ 203,676 | $ 92,176 | $ 28,544 |
Policy charges and fee income | 1,529,757 | 624,320 | 544,156 |
Net investment income | 550,235 | 367,350 | 393,797 |
Asset administration fees | 202,177 | 19,138 | 16,056 |
Other income | 267,208 | 83,256 | 83,560 |
Realized investment gains (losses), net | (5,295,406) | (62,976) | (116,749) |
TOTAL REVENUES | (2,542,353) | 1,123,264 | 949,364 |
BENEFITS AND EXPENSES | |||
Policyholders’ benefits | 655,910 | 298,149 | 153,074 |
Interest credited to policyholders’ account balances | (114,585) | 233,375 | 187,229 |
Amortization of deferred policy acquisition costs | 342,118 | 140,562 | 113,318 |
General, administrative and other expenses | (523,925) | 383,043 | 336,959 |
TOTAL BENEFITS AND EXPENSES | 359,518 | 1,055,129 | 790,580 |
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE | (2,901,871) | 68,135 | 158,784 |
Income tax expense (benefit) | (691,439) | (130,248) | (59,132) |
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE | (2,210,432) | 198,383 | 217,916 |
Equity in earnings of operating joint venture, net of taxes | 702 | (1,686) | (917) |
NET INCOME (LOSS) | (2,209,730) | 196,697 | 216,999 |
Other comprehensive income (loss), before tax: | |||
Foreign currency translation adjustments | (3,891) | 599 | 9,572 |
Net unrealized investment gains (losses) | (247,176) | 334,893 | 381,447 |
Total | (251,067) | 335,492 | 391,019 |
Less: Income tax expense (benefit) related to other comprehensive income (loss) | (52,374) | 70,806 | 81,281 |
Other comprehensive income (loss), net of tax | (198,693) | 264,686 | 309,738 |
Comprehensive income (loss) | $ (2,408,423) | $ 461,383 | $ 526,737 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholder's Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income | Total Equity | Total EquityCumulative Effect, Period of Adoption, Adjustment | ||
Beginning Balance at Dec. 31, 2018 | $ 2,500 | $ 1,146,592 | $ 1,612,435 | $ (1,981) | [1] | $ (28,296) | $ 2,733,231 | $ (1,981) | [1] | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Contributed capital | 5,900 | 5,900 | ||||||||
Dividend to parent | (250,000) | (250,000) | ||||||||
Contributed (distributed) capital-parent/child asset transfers | 1,140 | 1,140 | ||||||||
Comprehensive income: | ||||||||||
Net income (loss) | $ 216,999 | 216,999 | 216,999 | |||||||
Other comprehensive income (loss), net of tax | 309,738 | 309,738 | 309,738 | |||||||
Total comprehensive income (loss) | 526,737 | |||||||||
Ending Balance at Dec. 31, 2019 | 2,500 | 1,153,632 | 1,577,453 | $ (1,752) | [2] | 281,442 | 3,015,027 | $ (1,752) | [2] | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Contributed capital | 575,000 | 575,000 | ||||||||
Contributed (distributed) capital-parent/child asset transfers | (1,942) | (1,942) | ||||||||
Comprehensive income: | ||||||||||
Net income (loss) | 196,697 | 196,697 | 196,697 | |||||||
Other comprehensive income (loss), net of tax | 264,686 | 264,686 | 264,686 | |||||||
Total comprehensive income (loss) | 461,383 | |||||||||
Ending Balance at Dec. 31, 2020 | 2,500 | 1,726,690 | 1,772,398 | 546,128 | 4,047,716 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Contributed capital | 4,342,215 | 4,342,215 | ||||||||
Contributed (distributed) capital-parent/child asset transfers | (26,414) | (26,414) | ||||||||
Comprehensive income: | ||||||||||
Net income (loss) | (2,209,730) | (2,209,730) | (2,209,730) | |||||||
Other comprehensive income (loss), net of tax | $ (198,693) | (198,693) | (198,693) | |||||||
Total comprehensive income (loss) | (2,408,423) | |||||||||
Ending Balance at Dec. 31, 2021 | $ 2,500 | $ 6,042,491 | $ (437,332) | $ 347,435 | $ 5,955,094 | |||||
[1] | Includes the impact from the adoption of ASU 2017-08 and 2017-12. | |||||||||
[2] | Includes the impact from the adoption of ASU 2016-13. See Note 2. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ (2,209,730) | $ 196,697 | $ 216,999 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Policy charges and fee income | (21,763) | (81,850) | (53,158) |
Interest credited to policyholders’ account balances | (114,585) | 233,375 | 187,229 |
Realized investment (gains) losses, net | 5,295,406 | 62,976 | 116,749 |
Amortization and other non-cash items | 1,488,904 | (102,443) | (81,847) |
Change in: | |||
Future policy benefits | 2,080,967 | 2,658,195 | 2,538,263 |
Reinsurance recoverables | (1,304,306) | (2,440,532) | (2,739,573) |
Accrued investment income | (66,414) | (4,165) | (1,170) |
Net payables to/receivables from parent and affiliates | (16,904) | (145,743) | (7,175) |
Deferred policy acquisition costs | (3,926,121) | (617,907) | (338,455) |
Income taxes | (1,082,459) | (142,196) | (138,706) |
Derivatives, net | (1,193,004) | 10,969 | 143,004 |
Other, net | 186,068 | (6,498) | (22,573) |
Cash flows from (used in) operating activities | (883,941) | (379,122) | (180,413) |
Proceeds from the sale/maturity/prepayment of: | |||
Fixed maturities, available-for-sale | 1,251,269 | 385,245 | 948,693 |
Fixed maturities, trading | 914,662 | 0 | 0 |
Equity securities | 100,151 | 5,043 | 29,532 |
Policy loans | 172,932 | 174,208 | 162,744 |
Ceded policy loans | (13,387) | (12,863) | (11,953) |
Short-term investments | 221,645 | 371,508 | 51,117 |
Commercial mortgage and other loans | 280,103 | 123,124 | 144,512 |
Other invested assets | 302,692 | 16,280 | 18,599 |
Payments for the purchase/origination of: | |||
Fixed maturities, available-for-sale | (2,504,582) | (1,269,808) | (940,605) |
Fixed maturities, trading | (117,247) | (13,418) | (15,235) |
Equity securities | (98,122) | (99,871) | (110) |
Policy loans | (122,297) | (137,133) | (196,508) |
Ceded policy loans | 12,161 | 20,053 | 19,790 |
Short-term investments | (317,593) | (421,495) | (51,113) |
Commercial mortgage and other loans | (565,222) | (165,398) | (171,762) |
Other invested assets | (148,842) | (74,231) | (84,762) |
Notes receivable from parent and affiliates, net | (54,026) | 905 | 15,980 |
Derivatives, net | (3,234) | (4,048) | (4,056) |
Other, net | (10,392) | 2,290 | (6,342) |
Cash flows from (used in) investing activities | (699,329) | (1,099,609) | (91,479) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Policyholders’ account deposits | 5,690,619 | 4,775,163 | 5,407,620 |
Ceded policyholders’ account deposits | (1,149,254) | (3,479,973) | (3,537,492) |
Policyholders’ account withdrawals | (3,927,948) | (3,291,806) | (3,568,340) |
Ceded policyholders’ account withdrawals | 326,680 | 2,709,182 | 2,431,701 |
Net change in securities sold under agreement to repurchase and cash collateral for loaned securities | 287 | (4,804) | (3,534) |
Dividend to parent | 0 | 0 | (250,000) |
Contributed Capital | 776,657 | 575,000 | 0 |
Contributed (distributed) capital - parent/child asset transfers | (6,148) | (2,458) | 1,443 |
Net change in financing arrangements (maturities 90 days or less) | 0 | (2,845) | 2,845 |
Proceeds from the issuance of debt (maturities longer than 90 days) | 323,839 | 0 | 0 |
Drafts outstanding | 43,741 | 40,514 | 7,150 |
Other, net | (3,251) | 24,538 | (73,142) |
Cash flows from (used in) financing activities | 2,075,222 | 1,342,511 | 418,251 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 491,952 | (136,220) | 146,359 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 426,979 | 563,199 | 416,840 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 918,931 | 426,979 | 563,199 |
SUPPLEMENTAL CASH FLOW INFORMATION | |||
Income taxes paid (refund) | 391,015 | 11,948 | 79,574 |
Interest paid | $ 6,341 | $ 2,783 | $ 3,204 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - PALAC - Variable and Fixed Annuity $ in Millions | Dec. 01, 2021USD ($) |
Investments | |
Noncash investment transfers | $ 2,600 |
Securities | |
Noncash dividend payment in securities | $ 200 |
Business and Basis of Presentat
Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | BUSINESS AND BASIS OF PRESENTATION Pruco Life Insurance Company, (“Pruco Life”) is a wholly-owned subsidiary of The Prudential Insurance Company of America (“Prudential Insurance”), which in turn is a direct wholly-owned subsidiary of Prudential Financial, Inc. (“Prudential Financial”). Pruco Life is a stock life insurance company organized in 1971 under the laws of the State of Arizona. It is licensed to sell life insurance and annuities in the District of Columbia, Guam and in all states except New York, and sells such products primarily through affiliated and unaffiliated distributors. Pruco Life has one wholly-owned insurance subsidiary, Pruco Life Insurance Company of New Jersey, (“PLNJ”). PLNJ is a stock life insurance company organized in 1982 under the laws of the State of New Jersey. It is licensed to sell life insurance and annuities in New Jersey and New York only. Pruco Life and its subsidiary are together referred to as the "Company", "we" or "our" and all financial information is shown on a consolidated basis. 2021 Variable Annuities Recapture Effective July 1, 2021, the Company recaptured the risks related to its variable annuity base contracts, along with the living benefit guarantees, that had previously been reinsured to Prudential Annuities Life Assurance Corporation (“PALAC”) from April 1, 2016 through June 30, 2021. The recapture does not impact PLNJ, which will continue to reinsure its new and in force business to Prudential Insurance. The product risks related to the previously reinsured business that were being managed in PALAC, were transferred to the Company. In addition, the living benefit hedging program related to the previously reinsured living benefit riders are being managed within the Company. This transaction is referred to as the "2021 Variable Annuities Recapture". The financial statement impacts of this transaction are as follows: Interim Consolidated Statement of Financial Position Day 1 Impact of 2021 Variable Annuities Recapture Impacts of Recapture (in millions) ASSETS Total investments(1)(2) $ 8,324 Cash and cash equivalents 414 Deferred policy acquisition costs 3,286 Accrued investment income 42 Reinsurance recoverables (12,307) Deferred sales inducements 388 Receivable from parent and affiliates 0 Income taxes receivable 765 Other assets (84) Separate account assets 0 TOTAL ASSETS $ 828 LIABILITIES AND EQUITY LIABILITIES Future policy benefits $ 0 Policyholders’ account balances 0 Cash collateral for loaned securities 0 Payables to parent and affiliates (106) Other liabilities 0 Separate account liabilities 0 Total liabilities (106) EQUITY Common stock 0 Additional paid-in capital(3) 3,786 Retained earnings (2,797) Accumulated other comprehensive income (55) Total equity 934 TOTAL LIABILITIES AND EQUITY $ 828 Significant non-cash transactions (1) The increase in total investments includes non-cash activities of $8.3 billion related to the recapture transaction. (2) The Company incurred a loss related to ceding commissions of $2 billion. (3) The increase in Additional paid-in capital includes non-cash activities of $3.4 billion in invested assets related to capital contributions from Prudential Insurance. Interim Consolidated Statement of Operations and Comprehensive Income (Loss) Day 1 Impact of 2021 Variable Annuities Recapture Impacts of Recapture (in millions) REVENUES Other income (loss) $ (1) Realized investment gains (losses), net (4,953) TOTAL REVENUES (4,954) BENEFITS AND EXPENSES Policyholders’ benefits 257 Interest credited to policyholders’ account balances (399) General, administrative and other expenses (1,272) TOTAL BENEFITS AND EXPENSES (1,414) INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES (3,540) Income tax expense (benefit) (743) NET INCOME (LOSS) $ (2,797) Affiliated Asset Transfers Affiliate Period Transaction Security Type Fair Value Book Value APIC/ Retained Earnings Increase/(Decrease) Realized Investment Gain/(Loss), Net Derivative Gain/(Loss) (in millions) PALAC July 1, 2021 Purchase Derivatives, Fixed Maturities, Equity Securities, Commercial Mortgages and JV/LP Investments $ 4,908 $ 4,908 $ 0 $ 0 $ 0 Prudential Insurance July 1, 2021 Contributed Capital Fixed Maturities $ 3,420 $ 3,420 $ 3,420 $ 0 $ 0 As part of the recapture transaction, the Company received invested assets of $6.8 billion, net of $2 billion ceding commissions as consideration from PALAC, which is equivalent to the amount of statutory reserve credit taken as of June 30, 2021. The Company released a reinsurance recoverable of $12.3 billion. The Company derecognized its ceded Deferred Acquisition Costs ("DAC") and Deferred Sales Inducements ("DSI") balances as of June 30, 2021. The company also recognized a net deferred reinsurance loss from the original transaction of $0.1 billion. As a result of the recapture transaction, the Company recognized a pre-tax loss of $3.5 billion immediately. There was a $3.8 billion capital contribution from Prudential Insurance, which includes $3.4 billion in invested assets and $0.4 billion in cash. Affiliated Reinsurance Agreement Effective December 1, 2021, the Company entered into a reinsurance agreement with PALAC under which the Company assumed all of its variable and fixed indexed annuities and fixed annuities with a guaranteed lifetime withdrawal income feature from PALAC. As a result, the Company recognized a deferred reinsurance loss of $238 million. As of December 31, 2021, the reinsurance recoverable from the reinsurance of variable indexed annuities was $7.2 billion, and the Policyholder Account Balance resulting from the reinsurance of variable and fixed indexed annuities and fixed annuities with a guaranteed lifetime withdrawal income benefit was $9.8 billion. Basis of Presentation The Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). Intercompany balances and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining deferred policy acquisition costs ("DAC") and related amortization; policyholders' account balances and reinsurance related to the fair value of embedded derivative instruments associated with the index-linked features of certain universal life and annuity products; valuation of investments including derivatives, measurement of allowance for credit losses, and the recognition of other-than-temporary impairments; future policy benefits including guarantees; reinsurance recoverables; provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal and regulatory matters. COVID-19 Since the first quarter of 2020, the novel coronavirus (“COVID-19”) has resulted in extreme stress and disruption in the global economy and financial markets. While markets have rebounded, the pandemic has adversely impacted, and may continue to adversely impact, the Company's results of operations, financial condition and cash flows. Due to the highly uncertain nature of these conditions, it is not possible to estimate the ultimate impacts at this time. The risks may have manifested, and may continue to manifest, in the Company's financial statements in the areas of, among others, i) investments: increased risk of loss on our investments due to default or deterioration in credit quality or value; and ii) insurance liabilities and related balances: potential changes to assumptions regarding investment returns, mortality and policyholder behavior which are reflected in our insurance liabilities and certain related balances (e.g., DAC, etc.). The Company cannot predict what impact the COVID-19 pandemic will ultimately have on its businesses. Reclassifications |
Significant Accounting Policies
Significant Accounting Policies and Pronouncements | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Pronouncements | SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS ASSETS Fixed maturities, available-for-sale, at fair value ("AFS debt securities") includes bonds, notes and redeemable preferred stock that are carried at fair value. See Note 5 for additional information regarding the determination of fair value. The purchased cost of fixed maturities is adjusted for amortization of premiums and accretion of discounts to maturity or, if applicable, call date. AFS debt securities, where fair value is below amortized cost, are reviewed quarterly to determine whether the amortized cost basis of the security is recoverable. For mortgage-backed and asset-backed AFS debt securities, a credit impairment will be recognized in earnings as an allowance for credit losses and reported in “Realized investment gains (losses), net,” to the extent the amortized cost exceeds the net present value of projected future cash flows (the “net present value”) for the security. However, the credit impairment recorded cannot exceed the difference between the amortized cost and fair value of the respective security. The net present value used to measure a credit impairment is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the AFS debt security at the date of acquisition. Once the Company has deemed all or a portion of the amortized cost uncollectible, the allowance is removed from the balance sheet by writing down the amortized cost basis of the AFS debt security. Any amount of an AFS debt security’s change in fair value not recorded as an allowance for credit losses will be recorded in Other Comprehensive Income (loss) (“OCI”). For all other AFS debt securities, qualitative factors are first considered including, but not limited to, the extent of the decline and the reasons for the decline in value (e.g., credit events, currency or interest-rate related, including general credit spread widening), and the financial condition of the issuer. If analysis of these qualitative factors results in the security needing to be impaired, a credit impairment will be recognized and measured using the same process for mortgage-backed and asset-backed AFS debt securities. When an AFS debt security's fair value is below amortized cost and the Company has the intent to sell the AFS debt security, or it is more likely than not the Company will be required to sell the AFS debt security before its anticipated recovery, the amortized cost basis of the AFS debt security is written down to fair value and any previously recognized allowance is reversed. The write-down is reported in "Realized investment gains (losses), net." Interest income, including amortization of premium and accretion of discount, are included in “Net investment income” under the effective yield method. Prepayment premiums are also included in “Net investment income.” For high credit quality mortgage-backed and asset-backed AFS debt securities (those rated AA or above), the amortized cost and effective yield of the securities are adjusted as necessary to reflect historical prepayment experience and changes in estimated future prepayments. The adjustments to amortized cost are recorded as a charge or credit to “Net investment income” in accordance with the retrospective method. For mortgage-backed and asset-backed AFS debt securities rated below AA, the effective yield is adjusted prospectively for any changes in the estimated timing and amount of cash flows unless the investment is purchased with credit deterioration or an allowance is currently recorded for the respective security. If an investment is impaired, any changes in the estimated timing and amount of cash flows will be recorded as the credit impairment, as opposed to a yield adjustment. If the asset is purchased with credit deterioration (or previously impaired) the effective yield will be adjusted if there are favorable changes in cash flows subsequent to the allowance being reduced to zero. For mortgage-backed and asset-backed AFS debt securities, cash flow estimates consider the payment terms of the underlying assets backing a particular security, including interest rate and prepayment assumptions based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also include other assumptions regarding the underlying collateral including default rates and recoveries, which vary based on the asset type and geographic location, as well as the vintage year of the security. These assumptions can significantly impact income recognition, unrealized gains and loss recorded in OCI, and the amount of impairment recognized in earnings. The payment priority of the respective security is also considered. For all other AFS debt securities, cash flow estimates are driven by assumptions regarding probability of default and estimates regarding timing and amount of recoveries associated with a default. The Company has developed these estimates using information based on its historical experience as well as using market observable data, such as industry analyst reports and forecasts, sector credit ratings and other data relevant to the collectability of a security, such as the general payment terms of the security and the security’s position within the capital structure of the issuer. The associated unrealized gains and losses, net of tax, and the effect on DAC, deferred sales inducements ("DSI"), future policy benefits and policyholders’ account balances that would result from the realization of unrealized gains and losses, are included in “Accumulated other comprehensive income (loss)” (“AOCI”). Each of these balances is discussed in greater detail below. Fixed maturities, trading, at fair value consists of fixed maturities carried at fair value. Realized and unrealized gains and losses on these investments are reported in “Other income,” and interest and dividend income from these investments is reported in “Net investment income”. Equity securities, at fair value is comprised of common stock and mutual fund shares carried at fair value. Realized and unrealized gains and losses on these investments are reported in “Other income,” and dividend income is reported in “Net investment income” on the ex-dividend date. Policy loans represents funds loaned to policyholders up to the cash surrender value of the associated insurance policies and are carried at the unpaid principal balances due to the Company from the policyholders. Interest income on policy loans is recognized in “Net investment income” at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies. Short-term investments primarily consists of highly liquid debt instruments with a maturity of twelve months or less and greater than three months when purchased. These investments are generally carried at fair value or amortized cost that approximates fair value and include certain money market investments, funds managed similar to regulated money market funds, short-term debt securities issued by government sponsored entities and other highly liquid debt instruments. Commercial mortgage and other loans consists of commercial mortgage loans and agricultural property loans. Commercial mortgage and other loans held for investment are generally carried at unpaid principal balance, net of unamortized deferred loan origination fees and expenses and net of the current expected credit loss ("CECL") allowance. Certain off-balance sheet credit exposures (e.g., indemnification of serviced mortgage loans, and certain unfunded mortgage loan commitments where the Company cannot unconditionally cancel the commitment) are also subject to a CECL allowance. See Note 14 for additional information. Commercial mortgage and other loans acquired, including those related to the acquisition of a business, are recorded at fair value when purchased, reflecting any premiums or discounts to unpaid principal balances. Interest income, and the amortization of the related premiums or discounts, are included in “Net investment income” under the effective yield method. Prepayment fees are also included in “Net investment income.” Effective January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and related ASUs, using a modified retrospective method for certain financial assets carried at amortized cost and certain off-balance sheet exposures. Adoption of these ASUs requires an entity to estimate lifetime credit losses for certain financial assets carried at amortized cost and certain off-balance sheet exposures based on relevant information about past events, current conditions, and reasonable and supportable forecasts that may affect the collectability of reported amounts. The most significant impact is that modifications made to the Company’s process for measuring credit losses for its commercial mortgage and other loans class classified as held for investment. The impact of the standard resulted in a cumulative effect adjustment to opening retained earnings in the amount of $1.8 million, primarily related to commercial mortgage and other loans. The impact of adoption was not material to the following financial statement line items: deferred policy acquisition costs; reinsurance recoverables; income taxes receivable; future policy benefits; policyholders' account balances; and other liabilities. The prospective adoption of the portions of the standard related to fixed maturities, available-for-sale resulted in no impact to opening retained earnings. The CECL allowance represents the Company’s best estimate of expected credit losses over the remaining life of the assets or off-balance sheet credit exposures. The determination of the allowance considers historical credit loss experience, current conditions, and reasonable and supportable forecasts. Prior to the adoption of ASU 2016-13, the allowance was based upon credit losses that were probable of occurring for recognized loans, not an estimate of credit losses that may occur over the remaining life of the asset. The allowance is calculated separately for commercial mortgage loans, agricultural mortgage loans, other collateralized and uncollateralized loans. For commercial mortgage and agricultural mortgage loans, the allowance is calculated using an internally developed CECL model that pools together loans that share similar risk characteristics. Similar risk characteristics used to create the pools include, but are not limited to, vintage, maturity, credit rating, and collateral type. Key inputs to the CECL model include unpaid principal balances, internal credit ratings, annual expected loss factors, average lives of the loans adjusted for prepayment considerations, current and historical interest rate assumptions, and other factors influencing the Company’s view of the current stage of the economic cycle and future economic conditions. Subjective considerations include a review of whether historical loss experience is representative of current market conditions and the Company’s view of the credit cycle. Model assumptions and factors are reviewed and updated as appropriate. Information about certain key inputs is detailed below. Key factors in determining the internal credit ratings for commercial mortgage and agricultural mortgage loans include loan-to-value and debt-service-coverage ratios. Other factors include amortization, loan term, and estimated market value growth rate and volatility for the property type and region. The loan-to-value ratio compares the carrying amount of the loan to the fair value of the underlying property or properties collateralizing the loan, and is commonly expressed as a percentage. Loan-to-value ratios greater than 100% indicate that the carrying amount of the loan exceeds the collateral value. A loan-to-value ratio less than 100% indicates an excess of collateral value over the carrying amount of the loan. The debt service coverage ratio is a property’s net operating income as a percentage of its debt service payments. Debt service coverage ratios less than 1.0 indicates that property operations do not generate enough income to cover the loan’s current debt payments. A debt service coverage ratio greater than 1.0 indicates an excess of net operating income over the debt service payments. The values utilized in calculating these ratios are developed as part of the Company’s periodic review of the commercial mortgage loan and agricultural property loan portfolios, which includes an internal appraisal of the underlying collateral value. The Company’s periodic review also includes a quality re-rating process, whereby the internal quality rating originally assigned at underwriting is updated based on current loan, property and market information using a proprietary quality rating system. See Note 3 for additional information related to the loan-to-value ratios and debt service coverage ratios related to the Company’s commercial mortgage and agricultural loan portfolios. Annual expected loss rates are based on historical default and loss experience factors. Using average lives, the annual expected loss rates are converted into life-of-loan loss expectations. When individual loans no longer have the credit risk characteristics of the commercial or agricultural mortgage loan pools, they are removed from the pools and are evaluated individually for an allowance. The allowance is determined based on the outstanding loan balance less the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. The CECL allowance on commercial mortgage and other loans can increase or decrease from period to period based on the factors noted above. The change in allowance is reported in “Realized investment gains (losses), net.” As it relates to unfunded commitments that are in scope of this guidance, the CECL allowance is reported in “Other liabilities,” and the change in the allowance is reported in “Realized investment gains (losses), net.” The CECL allowance for other collateralized and uncollateralized loans (e.g., corporate loans) carried at amortized cost is determined based on probability of default and loss given default assumptions by sector, credit quality and average lives of the loans. Additions to or releases of the allowance are reported in “Realized investment gains (losses), net.” Once the Company has deemed a portion of the amortized cost to be uncollectible, the uncollectible portion of allowance is removed from the balance sheet by writing down the amortized cost basis of the loan. The carrying amount of the loan is not adjusted for subsequent recoveries in value. Interest received on loans that are past due is either applied against the principal or reported as net investment income based on the Company’s assessment as to the collectability of the principal. The Company defines “past due” as principal or interest not collected at least 30 days past the scheduled contractual due date. See Note 3 for additional information about the Company’s past due loans. The Company discontinues accruing interest on loans after the loans become 90 days delinquent as to principal or interest payments, or earlier when the Company has doubts about collectability. When the Company discontinues accruing interest on a loan, any accrued but uncollectible interest on the loan and other loans backed by the same collateral, if any, is charged against interest income in the same period. Generally, a loan is restored to accrual status only after all delinquent interest and principal are brought current and, in the case of loans where the payment of interest has been interrupted for a substantial period, or the loan has been modified, a regular payment performance has been established. Commercial mortgage and other loans are occasionally restructured in a troubled debt restructuring (“TDR”). These restructurings generally include one or more of the following: full or partial payoffs outside of the original contract terms; changes to interest rates; extensions of maturity; or additions or modifications to covenants. Additionally, the Company may accept assets in full or partial satisfaction of the debt as part of a TDR. When restructurings occur, they are evaluated individually to determine whether the restructuring or modification constitutes a TDR as defined by authoritative accounting guidance. If the borrower is experiencing financial difficulty and the Company has granted a concession, the restructuring, including those that involve a partial payoff or the receipt of assets in full satisfaction of the debt is deemed to be a TDR. When there is a reasonable expectation that the Company will execute a TDR, all effects of the potential restructuring are considered for the estimation of the CECL allowance. When a loan is modified in a TDR, the CECL allowance of the loan is remeasured using the modified terms and the loan’s original effective yield, and the allowance is adjusted accordingly. The loan will be evaluated to determine whether the loan no longer has similar credit risk characteristics of the commercial or agricultural mortgage loan pools and need to be evaluated for an allowance on an individual basis. Subsequent to the modification, income is recognized prospectively based on the modified terms of the loan. In a TDR where the Company receives assets in full satisfaction of the debt, any CECL allowance is reversed and a direct write-down of the loan is recorded for the amount of the allowance, and any additional loss, net of recoveries, or any gain is recorded for the difference between the fair value of the assets received and the recorded investment in the loan. When assets are received in partial settlement, the same process is followed, and the remaining loan is evaluated prospectively for credit impairment based on the CECL allowance process noted above. Other invested assets consist of the Company’s non-coupon investments in limited partnerships and limited liability companies ("LPs/LLCs"), other than operating joint ventures, as well as derivative assets. LPs/LLCs interests are accounted for using either the equity method of accounting, or at fair value. The Company’s income from investments in LPs/LLCs accounted for using the equity method, other than the Company’s investments in operating joint ventures, is included in “Net investment income”. The carrying value of these investments is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. In applying the equity method (including assessment for OTTI), the Company uses financial information provided by the investee, generally on a one to three-month lag. For the investments reported at fair value with changes in fair value reported in current earnings, the associated realized and unrealized gains and losses are reported in “Other income”. Realized investment gains (losses) are computed using the specific identification method. Realized investment gains and losses are generated from numerous sources, including the sales of fixed maturity securities, investments in joint ventures and limited partnerships and other types of investments, as well as changes to the allowance for credit losses recognized in earnings. Realized investment gains and losses also reflect fair value changes on commercial mortgage loans carried at fair value, and fair value changes on embedded derivatives and free-standing derivatives that do not qualify for hedge accounting treatment. See “Derivative Financial Instruments” below for additional information regarding the accounting for derivatives. Cash and cash equivalents includes cash on hand, amounts due from banks, certain money market investments, funds managed similar to regulated money market funds, other debt instruments with maturities of three months or less when purchased, other than cash equivalents that are included in "Fixed maturities, available-for-sale, at fair value,” and receivables related to securities purchased under agreements to resell (see also "Securities sold under agreements to purchase" below.) The Company also engages in overnight borrowing and lending of funds with Prudential Financial and affiliates which are considered cash and cash equivalents. These assets are generally carried at fair value or amortized cost which approximates fair value. Deferred policy acquisition costs represent costs directly related to the successful acquisition of new and renewal insurance and annuity business that have been deferred to the extent such costs are deemed recoverable from future profits. Such DAC primarily includes commissions, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully acquired contracts. In each reporting period, capitalized DAC is amortized to “Amortization of DAC," net of the accrual of imputed interest on DAC balances. DAC is subject to periodic recoverability testing. DAC, for applicable products, is adjusted for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. DAC related to universal and variable life products and fixed and variable deferred annuity products are generally deferred and amortized over the expected life of the contracts in proportion to gross profits arising principally from investment margins, mortality and expense margins, and surrender charges, based on historical and anticipated future experience, which is updated periodically. The Company uses a reversion to the mean approach for equities to derive future equity return assumptions; however, if the projected equity return calculated using this approach is greater than the maximum equity return assumption, the maximum equity return is utilized and if the projected equity return is negative, the return is floored at 0%. Gross profits also include impacts from the embedded derivatives associated with certain of the optional living benefit features of variable annuity contracts, and index-linked crediting features of certain universal life and annuity contracts and related hedging activities. In calculating gross profits, profits and losses related to contracts issued by the Company that are reported in affiliated legal entities other than the Company as a result of, for example, reinsurance agreements with those affiliated entities are also included. The Company is an indirect subsidiary of Prudential Financial, a United States Securities and Exchange Commission (the "SEC") registrant, and has extensive transactions and relationships with other subsidiaries of Prudential Financial, including reinsurance agreements, as described in Note 9. Incorporating all product-related profits and losses in gross profits, including those that are reported in affiliated legal entities, produces a DAC amortization pattern representative of the total economics of the products. Total gross profits include both actual gross profits and estimates of gross profits for future periods. The Company regularly evaluates and adjusts DAC balances with a corresponding charge or credit to current period earnings, representing a cumulative adjustment to all prior periods’ amortization, for the impact of actual gross profits and changes in the Company's projections of estimated future gross profits. Adjustments to DAC balances result from: (i) the annual review of assumptions that reflect the comprehensive review of the assumptions used in estimating gross profits for future periods; (ii) quarterly adjustments for current period experience (also referred to as “experience true-up” adjustments) that reflect the impact of differences between actual gross profits for a given period and the previously estimated expected gross profits for that period; and (iii) quarterly adjustments for market performance (also referred to as “experience unlocking”) that reflect the impact of changes to the Company's estimate of total gross profits to reflect actual fund performance and market conditions. For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. If policyholders surrender traditional life insurance policies in exchange for life insurance policies that do not have fixed and guaranteed terms, the Company immediately charges to expense the remaining unamortized DAC on the surrendered policies. For other internal replacement transactions, except those that involve the addition of a nonintegrated contract feature that does not change the existing base contract, the unamortized DAC is immediately charged to expense if the terms of the new policies are not substantially similar to those of the former policies. If the new terms are substantially similar to those of the earlier policies, the DAC is retained with respect to the new policies and amortized over the expected life of the new policies. See Note 6 for additional information regarding DAC. Accrued investment income primarily includes accruals of interest and dividend income from investments that have been earned but not yet received. Reinsurance recoverables include corresponding receivables associated with reinsurance arrangements with affiliates and third party reinsurers, and are reported on the Consolidated Statements of Financial Position net of the CECL allowance. Reinsurance recoverables also include assumed modified coinsurance arrangements which generally reflect the value of the invested assets retained by the cedant and the associated asset returns. Modified coinsurance recoverables contain an embedded derivative (bifurcated and accounted for separately from the host contract) that is presented together with the derivative embedded in the modified coinsurance payables as one compound derivative. The CECL allowance considers the credit quality of the reinsurance counterparty and is generally determined based on the probability of default and loss given default assumptions, after considering any applicable collateral arrangements. The CECL allowance does not apply to reinsurance recoverables with affiliated counterparties under common control. Additions to or releases of the allowance are reported in “Policyholders’ benefits.” Prior to the adoption of this standard, an allowance for credit losses for reinsurance recoverables was established only when it was deemed probable that a reinsurer may fail to make payments to us in a timely manner. For additional information about these arrangements see Note 9. Income taxes receivable primarily represents the net deferred tax asset and the Company’s estimated taxes receivable for the current year and open audit years. The Company is a member of the federal income tax return of Prudential Financial and primarily files separate company state and local tax returns. Pursuant to the tax allocation arrangement with Prudential Financial, total federal income tax expense is determined on a separate company basis. Members record tax benefits to the extent tax losses or tax credits are recognized in the consolidated federal tax provision. Items required by tax regulations to be included in the tax return may differ from the items reflected in the financial statements. As a result, the effective tax rate reflected in the financial statements may be different than the actual rate applied on the tax return. Some of these differences are permanent such as expenses that are not deductible in the Company’s tax return, and some differences are temporary, reversing over time, such as valuation of insurance reserves. Temporary differences create deferred tax assets and liabilities. Deferred tax assets generally represent items that can be used as a tax deduction or credit in future years for which the Company has already recorded the tax benefit in the Company’s Consolidated Statements of Operations. Deferred tax liabilities generally represent tax expense recognized in the Company’s financial statements for which payment has been deferred, or expenditures for which the Company has already taken a deduction in the Company’s tax return but have not yet been recognized in the Company’s financial statements. Deferred income taxes are recognized, based on enacted rates, when assets and liabilities have different values for financial statement and tax reporting purposes. The application of U.S. GAAP requires the Company to evaluate the recoverability of the Company’s deferred tax assets and establish a valuation allowance if necessary to reduce the Company’s deferred tax assets to an amount that is more likely than not expected to be realized. Considerable judgment is required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance. See Note 10 for a discussion of factors considered when evaluating the need for a valuation allowance. U.S. GAAP prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that a company has taken or expects to take on tax returns. The application of this guidance is a two-step process. First, the Company determines whether it is more likely than not, based on the technical merits, that the tax position will be sustained upon examination. If a tax position does not meet the more likely than not recognition threshold, the benefit of that position is not recognized in the financial statements. The second step is measurement. The Company measures the tax position as the largest amount of benefit that is greater than 50 percent likely to be realized upon ultimate resolution with a taxing authority that has full knowledge of all relevant information. This measurement considers the amounts and probabilities of the outcomes that could be realized upon ultimate settlement using the facts, circumstances, and information available at the reporting date. The Company’s liability for income taxes includes a liability for unrecognized tax benefits, interest and penalties which relate to tax years still subject to review by the Internal Revenue Service ("IRS") or other taxing jurisdictions. Audit periods remain open for review until the statute of limitations has passed. Generally, for tax years which produce net operating losses, capital losses or tax credit carryforwards (“tax attributes”), the statute of limitations does not close, to the extent of these tax attributes, until the expiration of the statute of limitations for the tax year in which they are fully utilized. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the liability for income taxes. The Company classifies all interest and penalties related to tax uncertainties as income tax expense. See Note 10 for additional information regarding income taxes. Deferred sales inducements represents various types of sales inducements to contractholders related to fixed and variable deferred annuity contracts. The Company defers sales inducements and amortizes them over the expected life of the policy using the same methodology and assumptions used to amortize DAC. Sales inducement balances are subject to periodic recoverability testing. The Company records amortization of DSI in “Interest credited to policyholders’ account balances.” DSI for applicable products is adjusted for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. See Note 9 for additional information regarding sales inducements. Other assets consists primarily of deposit assets related to a reinsurance agreement entered into with a third-party reinsurer during 2021 using deposit accounting under U.S. GAAP, which as of December 31, 2021 was $497.0 million. Included in these deposit assets are amounts representing fair value of embedded derivative instruments associated with the index-linked features of certain annuity products. For additional information regarding the valuation of these embedded derivatives, see Note 5. Also included are premiums due, deferred loss on reinsurance wi |
Investments
Investments | 12 Months Ended |
Dec. 31, 2021 | |
Investments [Abstract] | |
Investments | 3. INVESTMENTS Fixed Maturity Securities The following tables set forth the composition of fixed maturity securities (excluding investments classified as trading), as of the dates indicated: December 31, 2021 Amortized Gross Gross Allowance for Credit Losses Fair (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 303,040 $ 31,011 $ 111 $ 0 $ 333,940 Obligations of U.S. states and their political subdivisions 584,244 46,978 701 0 630,521 Foreign government bonds 324,454 29,299 3,271 11 350,471 U.S. public corporate securities 4,794,878 366,764 29,770 0 5,131,872 U.S. private corporate securities 1,964,767 59,037 16,880 2,049 2,004,875 Foreign public corporate securities 906,031 34,234 10,363 0 929,902 Foreign private corporate securities 2,741,449 62,932 48,381 2,089 2,753,911 Asset-backed securities(1) 547,549 860 1,099 0 547,310 Commercial mortgage-backed securities 552,653 25,928 3,397 0 575,184 Residential mortgage-backed securities(2) 18,684 1,501 5 0 20,180 Total fixed maturities, available-for-sale $ 12,737,749 $ 658,544 $ 113,978 $ 4,149 $ 13,278,166 (1) Includes credit-tranched securities collateralized by loan obligations, education loans, auto loans and other asset types. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. December 31, 2020 Amortized Gross Gross Allowance for Credit Losses Fair (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 74,946 $ 2,931 $ 22 $ 0 $ 77,855 Obligations of U.S. states and their political subdivisions 460,003 57,948 0 0 517,951 Foreign government bonds 206,633 44,254 32 0 250,855 U.S. public corporate securities 2,473,440 456,581 587 0 2,929,434 U.S. private corporate securities 919,316 95,793 2,198 855 1,012,056 Foreign public corporate securities 278,717 42,899 886 0 320,730 Foreign private corporate securities 977,539 123,006 7,131 1,484 1,091,930 Asset-backed securities(1) 236,909 1,115 386 0 237,638 Commercial mortgage-backed securities 480,412 40,660 125 0 520,947 Residential mortgage-backed securities(2) 49,456 3,779 0 0 53,235 Total fixed maturities, available-for-sale $ 6,157,371 $ 868,966 $ 11,367 $ 2,339 $ 7,012,631 (1) Includes credit-tranched securities collateralized by loan obligations, credit cards, auto loans, education loans and sub-prime mortgages. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. . The following tables set forth the fair value and gross unrealized losses on available-for-sale fixed maturity securities without an allowance for credit losses aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the dates indicated: December 31, 2021 Less Than Twelve Months Twelve Months or More Total Fair Value Gross Fair Value Gross Fair Value Gross (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 0 $ 2,119 $ 111 $ 2,119 $ 111 Obligations of U.S. states and their political subdivisions 104,621 701 0 0 104,621 701 Foreign government bonds 59,550 2,826 6,473 371 66,023 3,197 U.S. public corporate securities 1,681,201 23,160 180,249 6,610 1,861,450 29,770 U.S. private corporate securities 972,796 14,036 16,409 2,844 989,205 16,880 Foreign public corporate securities 532,445 8,255 29,718 2,108 562,163 10,363 Foreign private corporate securities 1,253,739 42,392 57,637 5,616 1,311,376 48,008 Asset-backed securities 288,971 1,099 0 0 288,971 1,099 Commercial mortgage-backed securities 157,355 1,622 40,689 1,775 198,044 3,397 Residential mortgage-backed securities 1,393 5 0 0 1,393 5 Total fixed maturities, available-for-sale $ 5,052,071 $ 94,096 $ 333,294 $ 19,435 $ 5,385,365 $ 113,531 December 31, 2020 Less Than Twelve Months Twelve Months or More Total Fair Value Gross Fair Value Gross Fair Value Gross (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 2,255 $ 22 $ 0 $ 0 $ 2,255 $ 22 Foreign government bonds 2,270 32 0 0 2,270 32 U.S. public corporate securities 33,295 341 2,754 246 36,049 587 U.S. private corporate securities 33,806 771 6,659 1,427 40,465 2,198 Foreign public corporate securities 6,432 97 6,464 789 12,896 886 Foreign private corporate securities 2,931 131 85,340 6,657 88,271 6,788 Asset-backed securities 51,914 183 70,503 203 122,417 386 Commercial mortgage-backed securities 17,443 125 0 0 17,443 125 Residential mortgage-backed securities 0 0 0 0 0 0 Total fixed maturities, available-for-sale $ 150,346 $ 1,702 $ 171,720 $ 9,322 $ 322,066 $ 11,024 As of December 31, 2021 and 2020, the gross unrealized losses on fixed maturity available-for-sale securities without an allowance were composed of $95.1 million and $5.0 million, respectively, related to “1” highest quality or “2” high quality securities based on the National Association of Insurance Commissioners (“NAIC”) or equivalent rating and $18.4 million and $6.0 million, respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. As of December 31, 2021, the $19.4 million of gross unrealized losses of twelve months or more were concentrated in the Company’s corporate securities within the utility, finance and consumer non-cyclical sectors. As of December 31, 2020, the $9.3 million of gross unrealized losses of twelve months or more were concentrated in the Company's corporate securities within the finance, energy and utility sectors. In accordance with its policy described in Note 2, the Company concluded that an adjustment to earnings for credit losses related to these fixed maturity securities was not warranted at December 31, 2021. This conclusion was based on a detailed analysis of the underlying credit and cash flows on each security. Gross unrealized losses are primarily attributable to increases in interest rates, general credit spread widening, foreign currency exchange rate movements and the financial condition or near-term prospects of the issuer. As of December 31, 2021, the Company did not intend to sell these securities, and it was not more likely than not that the Company would be required to sell these securities before the anticipated recovery of the remaining amortized cost basis. The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated: December 31, 2021 Amortized Cost Fair Value (in thousands) Fixed maturities, available-for-sale: Due in one year or less $ 101,546 $ 101,320 Due after one year through five years 2,063,502 2,075,819 Due after five years through ten years 3,639,243 3,652,143 Due after ten years 5,814,572 6,306,210 Asset-backed securities 547,549 547,310 Commercial mortgage-backed securities 552,653 575,184 Residential mortgage-backed securities 18,684 20,180 Total fixed maturities, available-for-sale $ 12,737,749 $ 13,278,166 Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Asset-backed, commercial mortgage-backed and residential mortgage-backed securities are shown separately in the table above, as they do not have a single maturity date. The following table sets forth the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on write-downs, impairments and the allowance for credit losses of fixed maturities, for the periods indicated: Years Ended December 31, 2021 2020 2019 (in thousands) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 790,331 $ 81,766 $ 633,787 Proceeds from maturities/prepayments 465,347 305,859 314,906 Gross investment gains from sales and maturities 14,972 1,293 59,557 Gross investment losses from sales and maturities (16,674) (1,878) (3,785) OTTI recognized in earnings(2) N/A N/A (9,034) Write-downs recognized in earnings(3) (2) (4,312) N/A (Addition to) release of allowance for credit losses(4) (1,810) (2,339) N/A (1) Excludes activity from non-cash related proceeds due to the timing of trade settlements of $(4.4) million, $(2.4) million and $0.0 million for the years ended December 31, 2021, 2020 and 2019, respectively. (2) For the year ended December 31, 2019, amount excludes the portion of OTTI amounts remaining in OCI, representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment. (3) Amounts represent write-downs of credit adverse securities and securities activity marketed for sale. In addition, for the year ended December 31, 2020, amount also include write-downs on securities approaching maturities related to foreign exchange movements. (4) Effective January 1, 2020, credit losses on available-for-sale fixed maturity securities are recorded within the “allowance for credit losses.” The following tables set forth the activity in the allowance for credit losses for fixed maturity securities, as of the dates indicated: Year Ended December 31, 2021 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of year $ 0 $ 0 $ 2,339 $ 0 $ 0 $ 0 $ 2,339 Additions to allowance for credit losses not previously recorded 0 11 2,664 0 0 0 2,675 Reductions for securities sold during the period 0 0 (28) 0 0 0 (28) Addition (reductions) on securities with previous allowance 0 0 (837) 0 0 0 (837) Balance, end of period $ 0 $ 11 $ 4,138 $ 0 $ 0 $ 0 $ 4,149 Year Ended December 31, 2020 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of year $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Additions to allowance for credit losses not previously recorded 0 0 5,672 0 0 0 5,672 Reductions for securities sold during the period 0 0 (3,147) 0 0 0 (3,147) Addition (reductions) on securities with previous allowance 0 0 (186) 0 0 0 (186) Balance, end of period $ 0 $ 0 $ 2,339 $ 0 $ 0 $ 0 $ 2,339 See Note 2 for additional information about the Company’s methodology for developing our allowance and expected losses. For the year ended December 31, 2021, the net increase in the allowance for credit losses on available-for-sale securities was primarily related to adverse projected cash flows on securities in the transportation and communications sectors within private corporate securities. For the year ended December 31, 2020, the increase in the allowance for credit losses on available-for-sale securities was primarily related to adverse projected cash flows on private corporate securities. The Company did not have any fixed maturity securities purchased with credit deterioration, as of both December 31, 2021 and 2020. Fixed Maturities, Trading The net change in unrealized gains (losses) from fixed maturities, trading still held at period end, recorded within “Other income (loss),” was $156.1 million, $9.1 million and $3.1 million during the years ended December 31, 2021, 2020 and 2019, respectively. Equity Securities The net change in unrealized gains (losses) from equity securities still held at period end, recorded within “Other income,” was $2.1 million, $(1.2) million and $(1.0) million during the years ended December 31, 2021, 2020 and 2019, respectively. Commercial Mortgage and Other Loans The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: December 31, 2021 December 31, 2020 Amount % of Amount % of Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 748,414 26.4 % $ 364,549 28.2 % Hospitality 48,141 1.7 34,069 2.6 Industrial 916,398 32.2 399,017 30.9 Office 445,055 15.7 195,443 15.1 Other 252,590 8.9 138,477 10.7 Retail 255,577 9.0 142,266 11.0 Total commercial mortgage loans 2,666,175 93.9 1,273,821 98.5 Agricultural property loans 172,336 6.1 19,577 1.5 Total commercial mortgage and agricultural property loans 2,838,511 100.0 % 1,293,398 100.0 % Allowance for credit losses (5,951) (4,552) Total net commercial mortgage and agricultural property loans $ 2,832,560 $ 1,288,846 As of December 31, 2021, the commercial mortgage and agricultural property loans were secured by properties geographically dispersed throughout the United States (with the largest concentrations in California (25%), Texas (10%) and New York (7%)) and included loans secured by properties in Europe (13%), Australia (3%), and Mexico (3%). The following table sets forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated: Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Balance at December 31, 2018 $ 2,026 $ 39 $ 2,065 Addition to (release of) allowance for credit losses (283) (14) (297) Balance at December 31, 2019 $ 1,743 $ 25 $ 1,768 Cumulative effect of adoption of ASU 2016-13 2,495 (8) 2,487 Addition to (release of) allowance for expected losses 308 (11) 297 Balance at December 31, 2020 $ 4,546 $ 6 $ 4,552 Addition to (release of) allowance for expected losses 1,301 98 1,399 Balance at December 31, 2021 $ 5,847 $ 104 $ 5,951 See Note 2 for additional information about the Company's methodology for developing our allowance and expected losses. For the year ended December 31, 2021, the net increase in the allowance for credit losses on commercial mortgage and other loans was primarily related to portfolio growth, partially offset by the improving credit environment. For the year ended December 31, 2020, the increase in the allowance for credit losses on commercial mortgage and other loans was primarily related to the cumulative effect of adoption of ASU 2016-13. The following tables set forth key credit quality indicators based upon the recorded investment gross of allowance for credit losses, as of the dates indicated: December 31, 2021 Amortized Cost by Origination Year 2021 2020 2019 2018 2017 Prior Total (in thousands) Commercial mortgage loans Loan-to-Value Ratio: 0%-59.99% $ 47,161 $ 0 $ 179,682 $ 76,656 $ 126,934 $ 553,022 $ 983,455 60%-69.99% 307,999 225,330 289,322 170,444 126,159 116,654 1,235,908 70%-79.99% 163,451 86,083 75,185 13,728 55,032 51,203 444,682 80% or greater 0 0 0 0 958 1,172 2,130 Total $ 518,611 $ 311,413 $ 544,189 $ 260,828 $ 309,083 $ 722,051 $ 2,666,175 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 501,456 $ 195,164 $ 481,289 $ 253,938 $ 289,443 $ 638,092 $ 2,359,382 1.0 - 1.2x 17,155 109,862 39,577 6,890 7,100 39,213 219,797 Less than 1.0x 0 6,387 23,323 0 12,540 44,746 86,996 Total $ 518,611 $ 311,413 $ 544,189 $ 260,828 $ 309,083 $ 722,051 $ 2,666,175 Agricultural property loans Loan-to-Value Ratio: 0%-59.99% $ 98,579 $ 26,581 $ 16,226 $ 6,463 $ 8,372 $ 16,115 $ 172,336 60%-69.99% 0 0 0 0 0 0 0 70%-79.99% 0 0 0 0 0 0 0 80% or greater 0 0 0 0 0 0 0 Total $ 98,579 $ 26,581 $ 16,226 $ 6,463 $ 8,372 $ 16,115 $ 172,336 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 98,579 $ 26,581 $ 16,226 $ 6,463 $ 8,372 $ 15,300 $ 171,521 1.0 - 1.2x 0 0 0 0 0 0 0 Less than 1.0x 0 0 0 0 0 815 815 Total $ 98,579 $ 26,581 $ 16,226 $ 6,463 $ 8,372 $ 16,115 $ 172,336 December 31, 2020 Amortized Cost by Origination Year 2020 2019 2018 2017 2016 Prior Total (in thousands) Commercial mortgage loans Loan-to-Value Ratio: 0%-59.99% $ 10,645 $ 47,284 $ 33,443 $ 92,410 $ 162,030 $ 251,903 $ 597,715 60%-69.99% 69,819 95,331 141,260 52,710 80,875 43,823 483,818 70%-79.99% 63,783 36,099 22,431 32,476 21,178 15,342 191,309 80% or greater 0 0 0 979 0 0 979 Total $ 144,247 $ 178,714 $ 197,134 $ 178,575 $ 264,083 $ 311,068 $ 1,273,821 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 128,839 $ 159,476 $ 177,098 $ 171,255 $ 238,010 $ 290,741 $ 1,165,419 1.0 - 1.2x 15,408 10,334 7,134 7,320 26,073 16,418 82,687 Less than 1.0x 0 8,904 12,902 0 0 3,909 25,715 Total $ 144,247 $ 178,714 $ 197,134 $ 178,575 $ 264,083 $ 311,068 $ 1,273,821 Agricultural property loans Loan-to-Value Ratio: 0%-59.99% $ 0 $ 0 $ 0 $ 6,486 $ 0 $ 13,091 $ 19,577 60%-69.99% 0 0 0 0 0 0 0 70%-79.99% 0 0 0 0 0 0 0 80% or greater 0 0 0 0 0 0 0 Total $ 0 $ 0 $ 0 $ 6,486 $ 0 $ 13,091 $ 19,577 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 0 $ 0 $ 0 $ 6,486 $ 0 $ 12,276 $ 18,762 1.0 - 1.2x 0 0 0 0 0 0 0 Less than 1.0x 0 0 0 0 0 815 815 Total $ 0 $ 0 $ 0 $ 6,486 $ 0 $ 13,091 $ 19,577 See Note 2 for additional information about the Company’s commercial mortgage and other loans credit quality monitoring process. The following tables set forth an aging of past due commercial mortgage and other loans based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated: December 31, 2021 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status(2) (in thousands) Commercial mortgage loans $ 2,666,175 $ 0 $ 0 $ 0 $ 2,666,175 $ 0 Agricultural property loans 172,336 0 0 0 172,336 0 Total $ 2,838,511 $ 0 $ 0 $ 0 $ 2,838,511 $ 0 (1) As of December 31, 2021, there were no loans in this category accruing interest. (2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2. December 31, 2020 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status(2) (in thousands) Commercial mortgage loans $ 1,273,821 $ 0 $ 0 $ 0 $ 1,273,821 $ 0 Agricultural property loans 19,577 0 0 0 19,577 0 Total $ 1,293,398 $ 0 $ 0 $ 0 $ 1,293,398 $ 0 (1) As of December 31, 2020, there were no loans in this category accruing interest. (2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2. For the years ended December 31, 2021 and 2020, there were $1,344 million and $0 million, respectively, of commercial mortgage loans acquired, other than those through direct origination. For the years ended December 31, 2021 and 2020, there were $69 million and $0 million of commercial mortgage and other loans sold, respectively. The Company did not have any commercial mortgage and other loans purchased with credit deterioration, as of both December 31, 2021 and 2020. Other Invested Assets The following table sets forth the composition of “Other invested assets,” as of the dates indicated: December 31, 2021 2020 (in thousands) Company's investment in separate accounts $ 53,694 $ 44,018 LPs/LLCs: Equity method: Private equity 286,141 241,493 Hedge funds 432,749 77,311 Real estate-related 89,337 63,194 Subtotal equity method 808,227 381,998 Fair value: Private equity 69,137 65,436 Hedge funds 481 499 Real estate-related 9,861 10,857 Subtotal fair value 79,479 76,792 Total LPs/LLCs 887,706 458,790 Derivative instruments 268,525 18,147 Total other invested assets $ 1,209,925 $ 520,955 Equity Method Investments The following tables set forth summarized combined financial information for significant LP/LLC interests accounted for under the equity method, including the Company’s investments in operating joint ventures. Changes between periods in the tables below reflect changes in the activities within the operating joint ventures and LPs/LLCs, as well as changes in the Company’s level of investment in such entities. December 31, 2021 2020 (in thousands) STATEMENTS OF FINANCIAL POSITION Total assets(1) $ 72,416,906 $ 12,952,942 Total liabilities(2) $ 12,120,390 $ 90,444 Partners’ capital 60,296,516 12,862,498 Total liabilities and partners’ capital $ 72,416,906 $ 12,952,942 Total liabilities and partners’ capital included above $ 746,870 $ 348,267 Equity in LP/LLC interests not included above 201,541 175,024 Carrying value $ 948,411 $ 523,291 (1) Amount represents gross assets of each fund where the Company has a significant investment. These assets consist primarily of investments in real estate, investments in securities and other miscellaneous assets. (2) Amount represents gross liabilities of each fund where the Company has a significant investment. These liabilities consist primarily of third-party-borrowed funds and other miscellaneous liabilities. Years Ended December 31, 2021 2020 2019 (in thousands) STATEMENTS OF OPERATIONS Total revenue(1) $ 11,031,051 $ 565,409 $ 819,904 Total expenses(2) (2,044,942) (201,644) (200,666) Net earnings (losses) $ 8,986,109 $ 363,765 $ 619,238 Equity in net earnings (losses) included above $ 62,173 $ 8,644 $ 24,971 Equity in net earnings (losses) of LP/LLC interests not included above 28,765 25,859 5,077 Total equity in net earnings (losses) $ 90,938 $ 34,503 $ 30,048 (1) Amount represents gross revenue of each fund where the Company has a significant investment. This revenue consists of income from investments in real estate, investments in securities and other income. (2) Amount represents gross expenses of each fund where the Company has a significant investment. These expenses consist primarily of interest expense, investment management fees, salary expenses and other expenses. Accrued Investment Income The following table sets forth the composition of “Accrued investment income,” as of the dates indicated: December 31, 2021 December 31, 2020 (in thousands) Fixed maturities $ 117,216 $ 54,565 Equity securities 2 1 Commercial mortgage and other loans 7,025 3,610 Policy loans 35,153 35,374 Other invested assets 254 0 Short-term investments and cash equivalents 377 63 Total accrued investment income $ 160,027 $ 93,613 There were $0.1 million and $0.0 million of write-downs on accrued investment income for the years ended December 31, 2021 and 2020. Net Investment Income The following table sets forth “Net investment income” by investment type, for the periods indicated: Years Ended December 31, 2021 2020 2019 (in thousands) Fixed maturities, available-for-sale $ 299,607 $ 224,262 $ 235,456 Fixed maturities, trading 38,778 1,768 1,374 Equity securities 530 410 856 Commercial mortgage and other loans 63,548 50,534 57,886 Policy loans 69,602 70,363 68,485 Other invested assets 104,375 36,684 38,577 Short-term investments and cash equivalents 712 3,219 9,266 Gross investment income 577,152 387,240 411,900 Less: investment expenses (26,917) (19,890) (18,103) Net investment income $ 550,235 $ 367,350 $ 393,797 The carrying value of non-income producing assets included $24.8 million in available-for-sale fixed maturities as of December 31, 2021. Non-income producing assets represent investments that had not produced income for the twelve months preceding for December 31, 2021. Realized Investment Gains (Losses), Net The following table sets forth “Realized investment gains (losses), net” by investment type, for the periods indicated: Years Ended December 31, 2021 2020 2019 (in thousands) Fixed maturities(1) $ (3,514) $ (7,236) $ 46,738 Commercial mortgage and other loans 1,535 (226) 297 Other invested assets (2,737) (287) (3,400) Derivatives(2) (5,291,043) (55,003) (160,368) Short-term investments and cash equivalents 353 (224) (16) Realized investment gains (losses), net $ (5,295,406) $ (62,976) $ (116,749) (1) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading. (2) Includes the impact of the 2021 Variable Annuities Recapture. See Note 1 for additional information. Net Unrealized Gains (Losses) on Investments within AOCI The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated: December 31, 2021 2020 2019 (in thousands) Fixed maturity securities, available-for-sale — with OTTI(1) $ N/A $ N/A $ 1,568 Fixed maturity securities, available-for-sale — all other(1) N/A N/A 397,136 Fixed maturity securities, available-for-sale with an allowance 3,685 0 N/A Fixed maturity securities, available-for-sale without an allowance 540,881 857,599 N/A Derivatives designated as cash flow hedges(2) 39,896 (8,112) 26,126 Affiliated notes 73 4,024 4,715 Other investments(3) 1,854 (4,162) (4,365) Net unrealized gains (losses) on investments $ 586,389 $ 849,349 $ 425,180 (1) Effective January 1, 2020, per ASU 2016-13, fixed maturity securities, available-for-sale are no longer required to be disclosed “with OTTI” and “all other.” (2) For more information on cash flow hedges, see Note 4. (3) Includes net unrealized gains (losses) on certain joint ventures that are strategic in nature and are included in “Other assets.” Repurchase Agreements and Securities Lending In the normal course of business, the Company sells securities under agreements to repurchase and enters into securities lending transactions. As of both December 31, 2021 and 2020, the Company had no repurchase agreements. The following table sets forth the composition of “Cash collateral for loaned securities,” which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated: December 31, 2021 December 31, 2020 Remaining Contractual Maturities of the Agreements Remaining Contractual Maturities of the Agreements Overnight & Continuous Up to 30 Days Total Overnight & Continuous Up to 30 Days Total (in thousands) U.S. public corporate securities $ 3,004 $ 0 $ 3,004 $ 0 $ 0 $ 0 Foreign public corporate securities 0 0 0 2,725 0 2,725 Total cash collateral for loaned securities(1) $ 3,004 $ 0 $ 3,004 $ 2,725 $ 0 $ 2,725 (1) The Company did not have any agreements with remaining contractual maturities greater than thirty days, as of the dates indicated. Securities Pledged, Restricted Assets and Special Deposits The Company pledges as collateral investment securities it owns to unaffiliated parties through certain transactions, including securities lending, securities sold under agreements to repurchase, collateralized borrowings and postings of collateral with derivative counterparties. The following table sets forth the carrying value of investments pledged to third parties and the carrying amount of the associated liabilities supported by the pledged collateral, as of the dates indicated: December 31, 2021 2020 (in thousands) Pledged collateral: Fixed maturity securities, available-for-sale $ 2,871 $ 2,525 Total securities pledged $ 2,871 $ 2,525 Liabilities supported by the pledged collateral: Cash collateral for loaned securities $ 3,004 $ 2,725 Total liabilities supported by the pledged collateral $ 3,004 $ 2,725 In the normal course of its business activities, the Company accepts collateral that can be sold or repledged. The primary sources of this collateral are securities purchased under agreements to resell. As of both December 31, 2021 and 2020, there was no collateral that could be sold or repledged. As of December 31, 2021 and 2020, there were available-for-sale fixed maturities of $4.1 million and $4.3 million, respectively, on deposit with governmental authorities or trustees as required by certain insurance laws. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVES AND HEDGING Types of Derivative Instruments and Derivative Strategies Interest Rate Contracts Interest rate swaps, options, and futures are used by the Company to reduce risks from changes in interest rates, manage interest rate exposures arising from mismatches between assets and liabilities and to hedge against changes in their values it owns or anticipates acquiring or selling. Swaps may be attributed to specific assets or liabilities or to a portfolio of assets or liabilities. Under interest rate swaps, the Company agrees with counterparties to exchange, at specified intervals, the difference between fixed-rate and floating-rate interest amounts calculated by reference to an agreed upon notional principal amount. The Company also uses interest rate swaptions, caps and floors to manage interest rate risk. A swaption is an option to enter into a swap with a forward starting effective date. The Company pays a premium for purchased swaptions and receives a premium for written swaptions. In an interest rate cap, the buyer receives payments at the end of each period in which the interest rate exceeds the agreed strike price. Similarly, in an interest rate floor, the buyer receives payments at the end of each period in which the interest rate is below the agreed strike price. Swaptions, caps and floors are included in interest rate options. In standardized exchange-traded interest rate futures transactions, the Company purchases or sells a specified number of contracts, the values of which are determined by the daily market values of underlying referenced investments. The Company enters into exchange-traded futures with regulated futures commission's merchants who are members of a trading exchange. Equity Contracts Equity options, total return swaps, and futures are used by the Company to manage its exposure to the equity markets which impacts the value of assets and liabilities it owns or anticipates acquiring or selling. Equity index options are contracts which will settle in cash based on differentials in the underlying indices at the time of exercise and the strike price. The Company uses combinations of purchases and sales of equity index options to hedge the effects of adverse changes in equity indices within a predetermined range. Total return swaps are contracts whereby the Company agrees with counterparties to exchange, at specified intervals, the difference between the return on an asset (or market index) and London Inter-Bank Offered Rate ("LIBOR") plus an associated funding spread based on a notional amount. The Company generally uses total return swaps to hedge the effect of adverse changes in equity indices. In standardized exchange-traded equity futures transactions, the Company purchases or sells a specified number of contracts, the values of which are determined by the daily market values underlying referenced equity indices. The Company enters into exchange-traded futures with regulated futures commission's merchants who are members of a trading exchange. Foreign Exchange Contracts Currency derivatives, including currency swaps and forwards, are used by the Company to reduce risks from changes in currency exchange rates with respect to investments denominated in foreign currencies that the Company either holds or intends to acquire or sell. Under currency forwards, the Company agrees with counterparties to deliver a specified amount of an identified currency at a specified future date. Typically, the price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. The Company executes forward sales of the hedged currency in exchange for U.S. dollars at a specified exchange rate. The maturities of these forwards correspond with the future periods in which the non-U.S. dollar-denominated earnings are expected to be generated. Under currency swaps, the Company agrees with counterparties to exchange, at specified intervals, the difference between one currency and another at an exchange rate and calculated by reference to an agreed principal amount. Generally, the principal amount of each currency is exchanged at the beginning and termination of the currency swap by each party. Credit Contracts The Company writes credit protection to gain exposure similar to investment in public fixed maturity cash instruments. With these credit derivatives the Company sells credit protection on a single name reference, or certain index reference, and in return receives a quarterly premium. This premium or credit spread generally corresponds to the difference between the yield on the referenced name (or an index’s referenced names) public fixed maturity cash instruments and swap rates, at the time the agreement is executed. If there is an event of default by the referenced name or one of the referenced names in the index, as defined by the agreement, then the Company is obligated to pay the referenced amount of the contract to the counterparty and receive in return the referenced defaulted security or similar security or (in the case of a credit default index) pay the referenced amount less the auction recovery rate. In addition to selling credit protection, the Company purchases credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio. Embedded Derivatives The Company offers certain products (for example, variable annuities, indexed annuities, and index-linked universal life) which may include features that are accounted for as embedded derivatives; related to certain of these derivatives, the Company has entered into reinsurance agreements with both affiliated and unaffiliated parties. Effective April 1, 2016, the Company entered into reinsurance agreements with affiliates, PALAC and Prudential Insurance. The reinsurance agreement with PALAC was recaptured on July 1, 2021. Additionally, the Company has entered into a reinsurance agreement with an external counterparty, Union Hamilton Reinsurance, Ltd. ("Union Hamilton") effective April 1, 2015. See Note 9 for additional information on the reinsurance agreements. Effective December 1, 2021, the Company entered into a reinsurance arrangement with PALAC, which includes features that are accounted for as embedded derivatives. See Note 1 for additional information on the reinsurance arrangement. These embedded derivatives and reinsurance agreements, also accounted for as derivatives, are carried at fair value and marked to market through “Realized investment gains (losses), net” based on the change in value of the underlying contractual guarantees, which are determined using valuation models, as described in Note 5. Primary Risks Managed by Derivatives The table below provides a summary of the gross notional amount and fair value of derivative contracts by the primary underlying risks, excluding embedded derivatives and associated reinsurance recoverables. Many derivative instruments contain multiple underlying risks. The fair value amounts below represent the value of derivative contracts prior to taking into account the netting effects of master netting agreements and cash collateral. December 31, 2021 December 31, 2020 Primary Underlying Risk/Instrument Type Gross Fair Value Gross Fair Value Assets Liabilities Assets Liabilities (in thousands) Derivatives Designated as Hedge Accounting Instruments: Currency/Interest Rate Interest Rate Swaps $ 3,344 $ 55 $ 0 $ 3,486 $ 203 $ 0 Foreign Currency Swaps 886,552 37,259 (6,900) 861,074 27,336 (49,316) Total Derivatives Designated as Hedge Accounting Instruments $ 889,896 $ 37,314 $ (6,900) $ 864,560 $ 27,539 $ (49,316) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 130,358,860 $ 5,698,740 $ (10,348,130) $ 663,050 $ 57,024 $ (11,117) Interest Rate Futures 4,109,300 2,876 (2,709) 57,700 198 0 Interest Rate Swaptions 9,883,000 280,323 (173,863) 0 0 0 Interest Rate Forwards 195,000 3,760 (991) 0 0 0 Foreign Currency Foreign Currency Forwards 119,653 842 (1,063) 55,292 5 (1,322) Credit Credit Default Swaps 306,900 24,789 0 2,313 0 (18) Currency/Interest Rate Foreign Currency Swaps 2,139,523 68,477 (23,251) 143,011 6,584 (7,286) Equity Total Return Swaps 15,129,666 66,627 (475,209) 0 0 0 Equity Options 19,461,881 902,050 (1,535,272) 3,244,900 306,196 (196,767) Futures 5,015,002 736 (6,595) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments $ 186,718,785 $ 7,049,220 $ (12,567,083) $ 4,166,266 $ 370,007 $ (216,510) Total Derivatives(1)(2) $ 187,608,681 $ 7,086,534 $ (12,573,983) $ 5,030,826 $ 397,546 $ (265,826) (1) Excludes embedded derivatives and associated reinsurance recoverables which contain multiple underlying risks. The fair value of these embedded derivatives was a net liability of $9,048 million and $13,228 million as of December 31, 2021 and 2020, respectively included in "Future policy benefits" and $3,246 million and $1,155 million as of December 31, 2021 and 2020, respectively included in "Policyholders' account balances". Other assets included $73 million and $0 million as of December 31, 2021 and 2020, respectively. Other liabilities included $13 million and $0 million as of December 31, 2021 and 2020, respectively. The fair value of the related reinsurance, included in "Reinsurance recoverables" and/or "Reinsurance payables" was an asset of $931 million and $13,240 million as of December 31, 2021 and 2020, respectively. (2) Recorded in “Other invested assets” and “Payables to parent and affiliates” on the Consolidated Statements of Financial Position. Offsetting Assets and Liabilities The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Consolidated Statements of Financial Position. December 31, 2021 Gross Gross Net Financial Net Amount (in thousands) Offsetting of Financial Assets: Derivatives $ 7,086,534 $ (6,818,009) $ 268,525 $ 0 $ 268,525 Securities purchased under agreements to resell 185,000 0 185,000 (185,000) 0 Total Assets $ 7,271,534 $ (6,818,009) $ 453,525 $ (185,000) $ 268,525 Offsetting of Financial Liabilities: Derivatives $ 12,573,983 $ (12,568,082) $ 5,901 $ (5,901) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 12,573,983 $ (12,568,082) $ 5,901 $ (5,901) $ 0 December 31, 2020 Gross Gross Net Financial Net Amount (in thousands) Offsetting of Financial Assets: Derivatives $ 397,546 $ (379,399) $ 18,147 $ (14,572) $ 3,575 Securities purchased under agreements to resell 0 0 0 0 0 Total Assets $ 397,546 $ (379,399) $ 18,147 $ (14,572) $ 3,575 Offsetting of Financial Liabilities: Derivatives $ 265,826 $ (265,826) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 265,826 $ (265,826) $ 0 $ 0 $ 0 (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. For information regarding the rights of offset associated with the derivative assets and liabilities in the table above see “Credit Risk” below and Note 13. For securities purchased under agreements to resell and securities sold under agreements to repurchase, the Company monitors the value of the securities and maintains collateral, as appropriate, to protect against credit exposure. Where the Company has entered into repurchase and resale agreements with the same counterparty, in the event of default, the Company would generally be permitted to exercise rights of offset. For additional information on the Company’s accounting policy for securities repurchase and resale agreements, see Note 2 to the Consolidated Financial Statements. Cash Flow Hedges The primary derivative instruments used by the Company in its cash flow hedge accounting relationships are currency swaps and interest rate swaps. These instruments are only designated for hedge accounting in instances where the appropriate criteria are met. The Company does not use futures, options, credit, or equity derivatives in any of its cash flow hedge accounting relationships. The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship. Year Ended December 31, 2021 Realized Net Other Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ 2 $ 47 $ 0 $ (161) Currency/Interest Rate 1,357 15,983 11,119 48,169 Total cash flow hedges 1,359 16,030 11,119 48,008 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (20,596) 0 0 0 Currency 2,006 0 0 0 Currency/Interest Rate 44,350 0 79 0 Credit 2,892 0 0 0 Equity (944,765) 0 0 0 Embedded Derivatives(1) (4,376,289) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (5,292,402) 0 79 0 Total $ (5,291,043) $ 16,030 $ 11,198 $ 48,008 Year Ended December 31, 2020 Realized Net Other Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ (44) $ 21 $ 0 $ 284 Currency/Interest Rate (314) 10,660 (10,161) (34,522) Total cash flow hedges (358) 10,681 (10,161) (34,238) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 17,000 0 0 0 Currency (2,560) 0 0 0 Currency/Interest Rate (4,130) 0 (109) 0 Credit (284) 0 0 0 Equity 37,480 0 0 0 Embedded Derivatives (102,151) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (54,645) 0 (109) 0 Total $ (55,003) $ 10,681 $ (10,270) $ (34,238) Year Ended December 31, 2019 Realized Net Other Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ 0 $ 0 $ 0 $ (50) Currency/Interest Rate 425 9,007 (1,698) 4,081 Total cash flow hedges 425 9,007 (1,698) 4,031 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 18,609 0 0 0 Currency 20 0 0 0 Currency/Interest Rate 3,485 0 (5) 0 Credit (1) 0 0 0 Equity 74,068 0 0 0 Embedded Derivatives (256,974) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (160,793) 0 (5) 0 Total $ (160,368) $ 9,007 $ (1,703) $ 4,031 (1) Includes the impact from 2021 Variable Annuities Recapture, see Note 1 for further details. Presented below is a rollforward of current period cash flow hedges in AOCI before taxes: (in thousands) Balance, December 31, 2018 $ 22,122 Cumulative-effect adjustment from the adoption of ASU 2017-12 (27) Amount recorded in AOCI Interest Rate (50) Currency/Interest Rate 11,815 Total amount recorded in AOCI 11,765 Amount reclassified from AOCI to income Currency/Interest Rate (7,734) Total amount reclassified from AOCI to income (7,734) Balance, December 31, 2019 $ 26,126 Amount recorded in AOCI Interest Rate 261 Currency/Interest Rate (34,337) Total amount recorded in AOCI (34,076) Amount reclassified from AOCI to income Interest Rate 23 Currency/Interest Rate (185) Total amount reclassified from AOCI to income (162) Balance, December 31, 2020 $ (8,112) Amount recorded in AOCI Interest Rate (112) Currency/Interest Rate 76,628 Total amount recorded in AOCI 76,516 Amount reclassified from AOCI to income Interest Rate (49) Currency/Interest Rate (28,459) Total amount reclassified from AOCI to income (28,508) Balance, December 31, 2021 $ 39,896 The changes in fair value of cash flow hedges are deferred in AOCI and are included in "Net unrealized investment gains (losses)" in the Consolidated Statements of Operations and Comprehensive Income (Loss); these amounts are then reclassified to earnings when the hedged item affects earnings. Using December 31, 2021 values, it is estimated that a pre-tax gain of $11 million is expected to be reclassified from AOCI to earnings during the subsequent twelve months ending December 31, 2022. The exposures the Company is hedging with these qualifying cash flow hedges include the variability of the payment or receipt of interest or foreign currency amounts on existing financial instruments. There were no material amounts reclassified from AOCI into earnings relating to instances in which the Company discontinued cash flow hedge accounting because the forecasted transaction did not occur by the anticipated date or within the additional time period permitted by the authoritative guidance for the accounting for derivatives and hedging. Credit Derivatives Credit Derivatives, where the Company has written credit protection on certain index references, has outstanding notional amounts of $157 million and $0 million as of December 31, 2021 and December 31, 2020, respectively. These credit derivatives are reported at fair value as an asset of $11 million and $0 million as of December 31, 2021 and December 31, 2020, respectively. As of December 31, 2021 the notional amount of these credit derivatives had the following NAIC Rating: $57 million in NAIC 3 and $100 million in NAIC 6. The Company has purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio. The Company has outstanding notional amounts of $150 million and $2 million as of December 31, 2021 and 2020, respectively. These credit derivatives are reported at fair value as an asset of $14 million and $0 million as of December 31, 2021 and 2020. Credit Risk The Company is exposed to credit-related losses in the event of non-performance by counterparties to financial derivative transactions with a positive fair value. The Company manages credit risk by entering into derivative transactions with its affiliate, Prudential Global Funding LLC (“PGF”), related to its OTC derivatives. PGF, in turn, manages its credit risk by: (i) entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties governed by master netting agreement, as applicable; (ii) trading through central clearing and OTC parties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single party credit exposures which are subject to periodic management review. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | FAIR VALUE OF ASSETS AND LIABILITIES Fair Value Measurement – Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows: Level 1 - Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities. The Company’s Level 1 assets and liabilities primarily include certain cash equivalents and short-term investments, equity securities, derivative contracts that trade on an active exchange market, separate account assets and other liabilities. Level 2 - Fair value is based on significant inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, and other market observable inputs. The Company’s Level 2 assets and liabilities include: fixed maturities (corporate public and private bonds, most government securities, certain asset-backed and mortgage-backed securities, etc.), certain equity securities (mutual funds, which do not trade in active markets because they are not publicly available), certain cash equivalents, certain OTC derivatives and embedded derivatives resulting from reinsurance. Level 3 - Fair value is based on at least one significant unobservable input for the asset or liability. The assets and liabilities in this category may require significant judgment or estimation in determining the fair value. The Company’s Level 3 assets and liabilities primarily include: certain private fixed maturities and equity securities, certain manually priced public fixed maturities, certain highly structured OTC derivative contracts, and embedded derivatives resulting from reinsurance or certain products with guaranteed benefits. Assets and Liabilities by Hierarchy Level - The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated. December 31, 2021 Level 1 Level 2 Level 3 Netting(1) Total (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 333,940 $ 0 $ $ 333,940 Obligations of U.S. states and their political subdivisions 0 630,521 0 630,521 Foreign government bonds 0 350,321 150 350,471 U.S. corporate public securities 0 5,131,872 0 5,131,872 U.S. corporate private securities 0 1,873,370 131,505 2,004,875 Foreign corporate public securities 0 921,008 8,894 929,902 Foreign corporate private securities 0 2,508,676 245,235 2,753,911 Asset-backed securities(2) 0 484,861 62,449 547,310 Commercial mortgage-backed securities 0 463,689 111,495 575,184 Residential mortgage-backed securities 0 20,180 0 20,180 Subtotal 0 12,718,438 559,728 13,278,166 Fixed maturities, trading 0 3,302,392 0 3,302,392 Equity securities 58,160 40,635 12,472 111,267 Short-term investments 9,997 135,440 0 145,437 Cash equivalents 13,999 422,633 0 436,632 Other invested assets(3) 246,097 6,840,437 0 (6,818,009) 268,525 Other assets 0 0 72,937 72,937 Reinsurance recoverables 0 0 931,207 931,207 Receivables from parent and affiliates 0 162,045 0 162,045 Subtotal excluding separate account assets 328,253 23,622,020 1,576,344 (6,818,009) 18,708,608 Separate account assets(4)(5) 52,100 144,059,558 0 144,111,658 Total assets $ 380,353 $ 167,681,578 $ 1,576,344 $ (6,818,009) $ 162,820,266 Future policy benefits(6) $ 0 $ 0 $ 9,047,956 $ $ 9,047,956 Policyholders' account balances 0 0 3,245,773 3,245,773 Payables to parent and affiliates 0 12,563,253 0 (12,563,253) 0 Other liabilities 10,730 12,624 0 (4,829) 18,525 Total liabilities $ 10,730 $ 12,575,877 $ 12,293,729 $ (12,568,082) $ 12,312,254 December 31, 2020 Level 1 Level 2 Level 3 Netting(1) Total (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 22,855 $ 55,000 $ $ 77,855 Obligations of U.S. states and their political subdivisions 0 517,951 0 517,951 Foreign government bonds 0 250,692 163 250,855 U.S. corporate public securities 0 2,929,431 3 2,929,434 U.S. corporate private securities 0 977,423 34,633 1,012,056 Foreign corporate public securities 0 311,407 9,323 320,730 Foreign corporate private securities 0 961,113 130,817 1,091,930 Asset-backed securities(2) 0 235,573 2,065 237,638 Commercial mortgage-backed securities 0 520,947 0 520,947 Residential mortgage-backed securities 0 53,235 0 53,235 Subtotal 0 6,780,627 232,004 7,012,631 Fixed maturities, trading 0 81,727 755 82,482 Equity securities 100,268 300 7,889 108,457 Short-term investments 49,997 0 0 49,997 Cash equivalents 49,996 347,330 0 397,326 Other invested assets(3) 198 397,348 0 (379,399) 18,147 Other assets 0 0 0 0 Reinsurance recoverables 0 0 13,239,539 13,239,539 Receivables from parent and affiliates 0 111,970 0 111,970 Subtotal excluding separate account assets 200,459 7,719,302 13,480,187 (379,399) 21,020,549 Separate account assets(4)(5) 0 140,583,009 0 140,583,009 Total assets $ 200,459 $ 148,302,311 $ 13,480,187 $ (379,399) $ 161,603,558 Future policy benefits(6) $ 0 $ 0 $ 13,227,814 $ $ 13,227,814 Policyholders' account balances 0 0 1,155,274 1,155,274 Payables to parent and affiliates 0 265,826 0 (265,826) 0 Other liabilities 0 0 0 0 Total liabilities $ 0 $ 265,826 $ 14,383,088 $ (265,826) $ 14,383,088 (1) “Netting” amounts represent cash collateral of $(5,750.1) million and $113.6 million as of December 31, 2021 and 2020, respectively. (2) Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (3) Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value ("NAV") per share (or its equivalent) as a practical expedient. At December 31, 2021 and 2020, the fair values of such investments were $79 million and $77 million, respectively. (4) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Consolidated Statements of Financial Position. (5) Separate account assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate, hedge funds and a corporate owned life insurance fund, for which fair value is measured at NAV per share (or its equivalent). At December 31, 2021 and 2020, the fair value of such investments was $5,686 million and $5,157 million, respectively. (6) As of December 31, 2021, the net embedded derivative liability position of $9,048 million includes $610 million of embedded derivatives in an asset position and $9,658 million of embedded derivatives in a liability position. As of December 31, 2020, the net embedded derivative liability position of $13,228 million includes $483 million of embedded derivatives in an asset position and $13,711 million of embedded derivatives in a liability position. The methods and assumptions the Company uses to estimate the fair value of assets and liabilities measured at fair value on a recurring basis are summarized below. Fixed Maturity Securities - The fair values of the Company’s public fixed maturity securities are generally based on prices obtained from independent pricing services. Prices for each security are generally sourced from multiple pricing vendors, and a vendor hierarchy is maintained by asset type based on historical pricing experience and vendor expertise. The Company ultimately uses the price from the pricing service highest in the vendor hierarchy based on the respective asset type. The pricing hierarchy is updated for new financial products and recent pricing experience with various vendors. Consistent with the fair value hierarchy described above, securities with validated quotes from pricing services are generally reflected within Level 2, as they are primarily based on observable pricing for similar assets and/or other market observable inputs. Typical inputs used by these pricing services include but are not limited to, reported trades, benchmark yields, issuer spreads, bids, offers, and/or estimated cash flow, prepayment speeds, and default rates. If the pricing information received from third-party pricing services is deemed not reflective of market activity or other inputs observable in the market, the Company may challenge the price through a formal process with the pricing service or classify the securities as Level 3. If the pricing service updates the price to be more consistent with the presented market observations, the security remains within Level 2. Internally-developed valuations or indicative broker quotes are also used to determine fair value in circumstances where vendor pricing is not available, or where the Company ultimately concludes that pricing information received from the independent pricing services is not reflective of market activity. If the Company concludes the values from both pricing services and brokers are not reflective of market activity, it may override the information with an internally-developed valuation. As of December 31, 2020 and 2019, overrides on a net basis were not material. Pricing service overrides, internally-developed valuations and indicative broker quotes are generally included in Level 3 in the fair value hierarchy. The Company conducts several specific price monitoring activities. Daily analyses identify price changes over predetermined thresholds defined at the financial instrument level. Various pricing integrity reports are reviewed on a daily and monthly basis to determine if pricing is reflective of market activity or if it would warrant any adjustments. Other procedures performed include, but are not limited to, reviews of third-party pricing services methodologies, reviews of pricing trends, and back testing. The fair values of private fixed maturities, which are originated by internal private asset managers, are primarily determined using discounted cash flow models. These models primarily use observable inputs that include Treasury or similar base rates plus estimated credit spreads to value each security. The credit spreads are obtained through a survey of private market intermediaries who are active in both primary and secondary transactions, and consider, among other factors, the credit quality and the reduced liquidity associated with private placements. Internal adjustments are made to reflect variation in observed sector spreads. Since most private placements are valued using standard market observable inputs and inputs derived from, or corroborated by, market observable data including, but not limited to observed prices and spreads for similar publicly or privately traded issues, they have been reflected within Level 2. For certain private fixed maturities, the discounted cash flow model may incorporate significant unobservable inputs, which reflect the Company’s own assumptions about the inputs that market participants would use in pricing the asset. To the extent management determines that such unobservable inputs are significant to the price of a security, a Level 3 classification is made. Equity Securities - Equity securities consist principally of investments in common and preferred stock of publicly traded companies, privately traded securities, as well as mutual fund shares. The fair values of most publicly traded equity securities are based on quoted market prices in active markets for identical assets and are classified within Level 1 in the fair value hierarchy. Estimated fair values for most privately traded equity securities are determined using discounted cash flow, earnings multiple and other valuation models that require a substantial level of judgment around inputs and therefore are classified within Level 3. The fair values of mutual fund shares that transact regularly (but do not trade in active markets because they are not publicly available) are based on transaction prices of identical fund shares and are classified within Level 2 in the fair value hierarchy. Derivative Instruments - Derivatives are recorded at fair value either as assets, within “Other invested assets”, or as liabilities within “Payables to parent and affiliates” or "Other liabilities", except for embedded derivatives which are recorded with the associated host contract. The fair values of derivative contracts can be affected by changes in interest rates, foreign exchange rates, credit spreads, market volatility, expected returns, NPR, liquidity and other factors. The Company's exchange-traded futures and options include treasury and equity futures. Exchange-traded futures and options are valued using quoted prices in active markets and are classified within Level 1 in the fair value hierarchy. The majority of the Company’s derivative positions are traded in the OTC derivative market and are classified within Level 2 in the fair value hierarchy. OTC derivatives classified within Level 2 are valued using models that utilize actively quoted or observable market input from external market data providers, third-party pricing vendors and/or recent trading activity. The Company’s policy is to use mid-market pricing in determining its best estimate of fair value. The fair values of most OTC derivatives, including interest rate and cross-currency swaps, currency forward contracts and credit default swaps are determined using discounted cash flow models. The fair values of European style option contracts are determined using Black-Scholes option pricing models. These models’ key inputs include the contractual terms of the respective contract, along with significant observable inputs, including interest rates, currency rates, credit spreads, equity prices, index dividend yields, NPR, volatility and other factors. The Company’s cleared interest rate swaps and credit derivatives linked to an index are valued using models that utilize actively quoted or observable market inputs, including the secured overnight financing rate ("SOFR"), obtained from external market data providers, third-party pricing vendors and/or recent trading activity. These derivatives are classified as Level 2 in the fair value hierarchy. Cash Equivalents and Short-Term Investments - Cash equivalents and short-term investments include money market instruments and other highly liquid debt instruments. Certain money market instruments are valued using unadjusted quoted prices in active markets that are accessible for identical assets and are primarily classified as Level 1. The remaining instruments in this category are generally fair valued based on market observable inputs and these investments have primarily been classified within Level 2. Separate Account Assets - Separate account assets include fixed maturity securities, treasuries, equity securities, real estate, mutual funds and commercial mortgage loans for which values are determined consistent with similar instruments described above under “Fixed Maturity Securities” and “Equity Securities”. Receivables from Parent and Affiliates - Receivables from parent and affiliates carried at fair value include affiliated bonds within the Company’s legal entity where fair value is determined consistent with similar securities described above under “Fixed Maturity Securities” managed by affiliated asset managers. Other assets consists primarily of deposit assets related to reinsurance agreements using deposit accounting under U.S. GAAP, which include amounts representing the fair value of embedded derivative instruments associated with the index-linked features of certain annuity products. The methods and assumptions used to estimate the fair value are consistent with those described below in “Policyholders' account balances”. Reinsurance Recoverables - Reinsurance recoverables carried at fair value include the reinsurance of the Company’s living benefit guarantees on certain variable annuity contracts. These guarantees are accounted for as embedded derivatives and are recorded in “Reinsurance recoverables” or “Other liabilities” when fair value is in an asset or liability position, respectively. The methods and assumptions used to estimate the fair value are consistent with those described below in “Future policy benefits”. The reinsurance agreements covering these guarantees are derivatives with fair value determined in the same manner as the living benefit guarantee. Future Policy Benefits - The liability for future policy benefits is related to guarantees primarily associated with the living benefit features of certain variable annuity contracts, including guaranteed minimum accumulation benefits ("GMAB"), guaranteed withdrawal benefits ("GMWB") and guaranteed minimum income and withdrawal benefits ("GMIWB"), accounted for as embedded derivatives. The fair values of these liabilities are calculated as the present value of future expected benefit payments to customers less the present value of future expected rider fees attributable to the embedded derivative feature. This methodology could result in either a liability or asset balance, given changing capital market conditions and various actuarial assumptions. Since there is no observable active market for the transfer of these obligations, the valuations are calculated using internally developed models with option pricing techniques. The models are based on a risk neutral valuation framework and incorporate premiums for risks inherent in valuation techniques, inputs, and the general uncertainty around the timing and amount of future cash flows. The determination of these risk premiums requires the use of management's judgment. The significant inputs to the valuation models for these embedded derivatives include capital market assumptions, such as interest rate levels and volatility assumptions, the Company’s market-perceived NPR, as well as actuarially determined assumptions, including contractholder behavior, such as lapse rates, benefit utilization rates, withdrawal rates and mortality rates. Since many of these assumptions are unobservable and are considered to be significant inputs to the liability valuation, the liability included in future policy benefits has been reflected within Level 3 in the fair value hierarchy. Capital market inputs and actual policyholders’ account values are updated each quarter based on capital market conditions as of the end of the quarter, including interest rates, equity markets and volatility. In the risk neutral valuation, the initial swap curve drives the total return used to grow the policyholders’ account values. The Company’s discount rate assumption is based on the London Inter Bank Offered Rate ("LIBOR") swap curve adjusted for an additional spread relative to LIBOR to reflect NPR. Actuarial assumptions, including contractholder behavior and mortality, are reviewed at least annually, and updated based upon emerging experience, future expectations and other data, including any observable market data. These assumptions are generally updated annually unless a material change that the Company feels is indicative of a long-term trend is observed in an interim period. Policyholders' Account Balances - The liability for policyholders’ account balances is related to certain embedded derivative instruments associated with certain universal life and certain annuity products that provide the policyholders with the index-linked interest credited over contract specified term periods. The fair values of these liabilities are determined using discounted cash flow models which include capital market assumptions such as interest rates and equity index volatility assumptions, the Company’s market-perceived NPR and actuarially determined assumptions for mortality, lapses and projected hedge costs. As there is no observable active market for these liabilities, the fair value is determined as the present value of account balances paid to policyholders in excess of contractually guaranteed minimums using option pricing techniques for index term periods that contain deposits as of the valuation date, and the expected option budget for future index term periods, where the terms of index crediting rates have not yet been declared by the Company. Premiums for risks inherent in valuation techniques, inputs, and the general uncertainty around the timing and amount of future cash flows are also incorporated in the fair value of these liabilities. Since the valuation of these liabilities require the use of management’s judgment to determine these risk premiums and the use of unobservable inputs, these liabilities are reflected within Level 3 in the fair value hierarchy. Capital market inputs, including interest rates and equity markets volatility, and actual policyholders’ account values are updated each quarter. Actuarial assumptions are reviewed at least annually and updated based upon emerging experience, future expectations and other data, including any observable market data. Aside from these annual updates, assumptions are generally updated only if a material change is observed in an interim period that the Company believes is indicative of a long-term trend. Quantitative Information Regarding Internally-Priced Level 3 Assets and Liabilities - The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities. December 31, 2021 Fair Value Valuation Unobservable Minimum Maximum Weighted Impact of (in thousands) Assets: Corporate securities(2) $ 312,139 Discounted cash flow Discount rate 1.65 % 20 % 4.57 % Decrease Market Comparables EBITDA multiples(3) 4.9 X 19.2 X 9.0 X Increase Liquidation Liquidation value 62.58 % 62.58 % 62.58 % Increase Reinsurance recoverables $ 931,207 Fair values are determined using the same unobservable inputs as future policy benefits. Liabilities: Future policy benefits(4) $ 9,047,956 Discounted cash flow Lapse rate(6) 1 % 20 % Decrease Spread over LIBOR(7) 0.03 % 1.13 % Decrease Utilization rate(8) 39 % 96 % Increase Withdrawal rate See table footnote (9) below. Mortality rate(10) 0 % 15 % Decrease Equity volatility curve 16 % 25 % Increase Policyholders' account balances(5) $ 3,245,773 Discounted cash flow Lapse rate(6) 1 % 42 % Decrease Spread over LIBOR(7) 0.03 % 1.13 % Decrease Mortality rate(10) 0 % 23 % Decrease Equity volatility curve 6 % 31 % Increase December 31, 2020 Fair Value Valuation Unobservable Minimum Maximum Weighted Impact of (in thousands) Assets: Corporate securities(2) $ 151,554 Discounted cash flow Discount rate 0.99 % 11.38 % 3.44 % Decrease Reinsurance recoverables $ 13,239,539 Fair values are determined using the same unobservable inputs as future policy benefits. Liabilities: Future policy benefits(4) $ 13,227,814 Discounted cash flow Lapse rate(6) 1 % 20 % Decrease Spread over LIBOR(7) 0.06 % 1.17 % Decrease Utilization rate(8) 39 % 96 % Increase Withdrawal rate See table footnote (9) below. Mortality rate(10) 0 % 15 % Decrease Equity volatility curve 18 % 26 % Increase Policyholders' account balances(5) $ 1,155,274 Discounted cash flow Lapse rate(6) 1 % 6 % Decrease Spread over LIBOR(7) 0.06 % 1.17 % Decrease Mortality rate(10) 0 % 24 % Decrease Equity volatility curve 15 % 30 % Increase (1) Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table. (2) Includes assets classified as fixed maturities, available-for-sale and fixed maturities trading. (3) Represents multiples of earnings before interest, taxes, depreciation and amortization "EBITDA", and are amounts used when the Company has determined that market participants would use such multiples when valuing the investments. (4) Future policy benefits primarily represent general account liabilities for the living benefit features of the Company’s variable annuity contracts which are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (5) Policyholders’ account balances primarily represent general account liabilities for the index-linked interest credited on certain of the Company’s life and annuity products that are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (6) Lapse rates for contracts with living benefit guarantees are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates for contracts with index-linked crediting guarantees may be adjusted at the contract level based on the applicability of any surrender charges, product type, and market related factors such as interest rates. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. For any given contract, lapse rates vary throughout the period over which cash flows are projected for the purposes of valuing these embedded derivatives. (7) The spread over the LIBOR swap curve represents the premium added to the proxy for the risk-free rate (LIBOR) to reflect the Company's estimates of rates that a market participant would use to value the living benefits in both the accumulation and payout phases and index-linked interest crediting guarantees. This spread includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because funding agreements, living benefit guarantees, and index-linked interest crediting guarantees are insurance liabilities and are therefore senior to debt. (8) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits. (9) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of both December 31, 2021 and 2020, the minimum withdrawal rate assumption is 76% and the maximum withdrawal rate assumption may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%. (10) The range reflects the mortality rates for the vast majority of business with living benefits and other contracts, with policyholders ranging from 45 to 90 years old. While the majority of living benefits have a minimum age requirement, certain other contracts do not have an age restriction. This results in contractholders with mortality rates approaching 0% for certain benefits. Mortality rates may vary by product, age, and duration. A mortality improvement assumption is also incorporated into the overall mortality table. Interrelationships Between Unobservable Inputs – In addition to the sensitivities of fair value measurements to changes in each unobservable input in isolation, as reflected in the table above, interrelationships between these inputs may also exist, such that a change in one unobservable input may give rise to a change in another, or multiple, inputs. Examples of such interrelationships for significant internally-priced Level 3 assets and liabilities are as follows: Corporate Securities – The rate used to discount future cash flows reflects current risk-free rates plus credit and liquidity spread requirements that market participants would use to value an asset. The discount rate may be influenced by many factors, including market cycles, expectations of default, collateral, term, and asset complexity. Each of these factors can influence discount rates, either in isolation, or in response to other factors. During weaker economic cycles, as the expectations of default increases, credit spreads widen, which results in a decrease in fair value. Future Policy Benefits – The Company expects efficient benefit utilization and withdrawal rates to generally be correlated with lapse rates. However, behavior is highly dependent on the facts and circumstances surrounding the individual contractholder, such as their liquidity needs or tax situation, which could drive lapse behavior independent of other contractholder behavior assumptions. To the extent that more efficient contractholder behavior results in greater in-the-moneyness at the contract level, lapse rates may decline for those contracts. Similarly, to the extent that increases in equity volatility are correlated with overall declines in the capital markets, lapse rates may decline as contracts become more in-the-money. Changes in Level 3 Assets and Liabilities – The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate. Year Ended December 31, 2021 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thou |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | DEFERRED POLICY ACQUISITION COSTS The balances of and changes in DAC as of and for the years ended December 31, are as follows: 2021 2020 2019 (in thousands) Balance, beginning of year $ 2,433,936 $ 1,855,698 $ 1,613,922 Capitalization of commissions, sales and issue expenses 1,057,030 758,469 451,773 Amortization-Impact of assumption and experience unlocking and true-ups 40,482 (27,844) (34,619) Amortization-All other (382,600) (112,718) (78,699) Change due to unrealized investment gains and losses (81,031) (39,861) (37,337) Other (1)(2)(3) 3,763,155 192 (59,342) Balance, end of year $ 6,830,972 $ 2,433,936 $ 1,855,698 (1) 2021 includes the impact of the 2021 Variable Annuities Recapture as well as the assuming of DAC upon Affiliated Reinsurance Agreement with PALAC. See Note 1 and Note 9 for additional information. (2) 2020 represents the impact of the January 1, 2020 adoption of ASU 2016-13. (3) 2019 represents ceded DAC upon reinsurance agreement with Prudential Arizona Reinsurance Term Company and Prudential Arizona Reinsurance Captive Company in 2019. See Note 9 for additional information. |
Policyholders' Liabilities
Policyholders' Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Liability for Future Policy Benefit, before Reinsurance [Abstract] | |
Policyholders' Liabilities | POLICYHOLDERS’ LIABILITIES Future Policy Benefits Future policy benefits at December 31 for the years indicated are as follows: 2021 2020 (in thousands) Life insurance – domestic $ 18,095,368 $ 17,167,209 Life insurance – Taiwan 0 1,642,747 Individual annuities and supplementary contracts 740,941 810,989 Other contract liabilities 9,090,720 13,268,236 Total future policy benefits $ 27,927,029 $ 32,889,181 Life insurance liabilities include reserves for death benefits. Individual annuities and supplementary contract liabilities include reserves for life contingent immediate annuities and guaranteed minimum death benefits. Other contract liabilities include liabilities for variable annuity living benefit guarantees and certain other reserves for annuities and individual life products. Future policy benefits for individual non-participating traditional life insurance policies are generally equal to the present value of future benefit payments and related expenses, less the present value of future net premiums. Assumptions as to mortality and persistency are based on the Company’s experience, industry data, and/or other factors, when the basis of the reserve is established. Interest rates used in the determination of the present values range from 1.7% to 7.8%. Future policy benefits for individual annuities and supplementary contracts with life contingencies are generally equal to the present value of expected future payments. Assumptions as to mortality are based on the Company’s experience, industry data, and/or other factors, when the basis of the reserve is established. The interest rates used in the determination of the present values range from 1.7% to 14.8%; less than 0.3% of the reserves based on an interest rate in excess of 8%. The Company’s liability for future policy benefits are primarily liabilities for guaranteed benefits related to certain long-duration life and annuity contracts. Liabilities for guaranteed benefits with embedded derivative features are primarily in "Other contract liabilities" in the table above. The interest rates used in the determination of the present values range from 0.6% to 2.9%. The remaining liabilities for guaranteed benefits are primarily reflected with the underlying contract. See Note 8 for additional information regarding liabilities for guaranteed benefits related to certain long-duration life and annuity contracts. Policyholders’ Account Balances Policyholders’ account balances at December 31 for the years indicated are as follows: 2021 2020 (in thousands) Interest-sensitive life contracts $ 19,729,444 $ 18,638,033 Individual annuities(1) 14,150,233 3,637,196 Guaranteed interest accounts 125,249 154,284 Other 1,356,869 1,428,061 Total policyholders’ account balances $ 35,361,795 $ 23,857,574 (1) 2021 amount includes assumed business from PALAC. |
Certain Long-Duration Contracts
Certain Long-Duration Contracts With Guarantees | 12 Months Ended |
Dec. 31, 2021 | |
Long-Duration Contracts, Assumptions Supporting Guarantee Obligations [Abstract] | |
Certain Long-Duration Contracts With Guarantees | CERTAIN LONG-DURATION CONTRACTS WITH GUARANTEES The Company issues variable annuity contracts through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contractholder. The Company also issued variable annuity contracts with general and separate account options where the Company contractually guarantees to the contractholder a return of no less than total deposits made to the contract adjusted for any partial withdrawals (“return of net deposits”). In certain of these variable annuity contracts, the Company also contractually guarantees to the contractholder a return of no less than (1) total deposits made to the contract adjusted for any partial withdrawals plus a minimum return (“minimum return”), and/or (2) the highest contract value on a specified date adjusted for any withdrawals (“contract value”). These guarantees include benefits that are payable in the event of death, annuitization or at specified dates during the accumulation period and withdrawal and income benefits payable during specified periods. The Company also issued annuity contracts with market value adjusted investment options (“MVAs”), which provide for a return of principal plus a fixed rate of return if held to maturity, or, alternatively, a “market adjusted value” if surrendered prior to maturity or if funds are reallocated to other investment options. The market value adjustment may result in a gain or loss to the Company, depending on crediting rates or an indexed rate at surrender, as applicable. The Company also issues fixed deferred and fixed indexed annuity contracts without MVA that have a guaranteed credited rate, annuity benefit and withdrawal benefit. The Company also issues indexed variable annuity contracts for which the return, when the account value is allocated to the index strategies, is tied to the return of specific indices subject to applicable contractual minimums and maximums and also varying levels of downside protection. The contract also guarantees to the contractholder a return of no less than total deposits made to the contract adjusted for any partial withdrawals upon death. In certain of these indexed variable annuity contracts, the Company also contractually guarantees to the contractholder withdrawal benefits payable during specific periods. In addition, the Company issues certain variable life, variable universal life and universal life contracts where the Company contractually guarantees to the contractholder a death benefit even when there is insufficient value to cover monthly mortality and expense charges, whereas otherwise the contract would typically lapse (“no-lapse guarantee”). Variable life and variable universal life contracts are offered with general and separate account options. The assets supporting the variable portion of all variable annuities are carried at fair value and reported as “Separate account assets” with an equivalent amount reported as “Separate account liabilities.” Amounts assessed against the contractholders for mortality, administration, and other services are included within revenue in “Policy charges and fee income” and changes in liabilities for minimum guarantees are generally included in “Policyholders’ benefits” or “Realized investment gains (losses), net.” For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, contract lapses and contractholder mortality. For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, timing of annuitization, contract lapses and contractholder mortality. For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including equity market returns, interest rates, market volatility and contractholder behavior. The Company’s contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed may not be mutually exclusive. The liabilities related to the net amount at risk are reflected within “Future policy benefits”. As of December 31, 2021 and 2020, the Company had the following guarantees associated with these contracts, by product and guarantee type: December 31, 2021 December 31, 2020 In the Event of At Annuitization/ In the Event of At Annuitization/ (in thousands) Annuity Contracts Return of net deposits Account value $ 103,862,788 N/A $ 104,700,706 N/A Net amount at risk $ 27,872 N/A $ 18,336 N/A Average attained age of contractholders 69 years N/A 68 years N/A Minimum return or contract value Account value $ 19,634,387 $ 113,689,139 $ 19,949,435 $ 114,832,594 Net amount at risk $ 1,124,519 $ 1,653,394 $ 1,272,073 $ 2,042,199 Average attained age of contractholders 72 years 69 years 71 years 68 years Average period remaining until earliest expected annuitization N/A 0 years N/A 0 years (1) Balances are gross of reinsurance. (2) Includes income and withdrawal benefits. December 31, 2021 December 31, 2020 In the Event of Death(1)(2) (in thousands) Variable Life, Variable Universal Life and Universal Life Contracts Separate account value $ 4,473,502 $ 4,087,733 General account value $ 10,558,009 $ 9,920,732 Net amount at risk $ 149,872,088 $ 146,158,176 Average attained age of contractholders 58 years 56 years (1) Balances are gross of reinsurance. (2) Excludes assumed reinsurance of GUL business from Prudential Insurance in connection with the acquisition of The Hartford Life Business that is retroceded 100% to PAR U. Account balances of variable annuity contracts with guarantees were invested in separate account investment options as follows: December 31, 2021(1) December 31, 2020(1) (in thousands) Equity funds $ 69,299,203 $ 68,436,773 Bond funds 47,895,089 51,126,536 Money market funds 3,016,761 1,578,516 Total $ 120,211,053 $ 121,141,825 (1) Balances are gross of reinsurance. In addition to the amounts invested in separate account investment options above, $3.3 billion at December 31, 2021 and $3.5 billion at December 31, 2020 of account balances of variable annuity contracts with guarantees, inclusive of contracts with MVA features, were invested in general account investment options. For the years ended December 31, 2021, 2020 and 2019 there were no transfers of assets, other than cash, from the general account to any separate account, and accordingly no gains or losses recorded. Liabilities for Guarantee Benefits The table below summarizes the changes in general account liabilities for guarantees. The liabilities for GMDB and guaranteed minimum income benefits (“GMIB”) are included in “Future policy benefits” and the related changes in the liabilities are included in “Policyholders' benefits”. GMAB, GMWB and GMIWB are accounted for as embedded derivatives and are recorded at fair value within “Future policy benefits”. Changes in the fair value of these derivatives, including changes in the Company’s own risk of non-performance, along with any fees attributed or payments made relating to the derivative, are recorded in “Realized investment gains (losses), net.” See Note 5 for additional information regarding the methodology used in determining the fair value of these embedded derivatives. The Company maintains a portfolio of derivative investments that serve as a partial hedge of the risks associated with these products, for which the changes in fair value are also recorded in "Realized investment gains (losses), net." This portfolio of derivative investments does not qualify for hedge accounting treatment under U.S. GAAP. Additionally, the Company externally reinsures the guaranteed benefit features associated with certain contracts. See Note 9 for further information regarding the external reinsurance arrangement. GMDB GMIB GMWB/GMIWB/ Total Variable Annuity Variable Life, Variable Universal Life & Universal Life Variable Annuity (in thousands) Balance at December 31, 2018 $ 411,568 $ 5,231,854 $ 16,810 $ 5,588,839 $ 11,249,071 Incurred guarantee benefits(1) 52,717 1,473,762 2,266 2,940,727 4,469,472 Paid guarantee benefits (25,992) (110,642) (2,209) 0 (138,843) Change in unrealized investment gains and losses 22,208 805,259 240 0 827,707 Balance at December 31, 2019 460,501 7,400,233 17,107 8,529,566 16,407,407 Incurred guarantee benefits(1) 114,878 1,368,759 3,490 4,698,248 6,185,375 Paid guarantee benefits (37,804) (126,148) (1,667) 0 (165,619) Change in unrealized investment gains and losses 31,488 720,741 318 0 752,547 Balance at December 31, 2020 569,063 9,363,585 19,248 13,227,814 23,179,710 Incurred guarantee benefits(1) (10,596) 1,089,139 (3,650) (4,179,858) (3,104,965) Paid guarantee benefits (24,394) (189,453) 0 0 (213,847) Change in unrealized investment gains and losses (46,542) (326,128) (484) 0 (373,154) Balance at December 31, 2021 $ 487,531 $ 9,937,143 $ 15,114 $ 9,047,956 $ 19,487,744 (1) Incurred guarantee benefits include the portion of assessments established as additions to reserves as well as changes in estimates affecting the reserves. Also includes changes in the fair value of features considered to be derivatives. The GMDB, which includes the liability for no-lapse guarantees, and GMIB liability are established when associated assessments (which include all policy charges including charges for administration, mortality, expense, surrender, and other, regardless of how characterized) are recognized. This liability is established using current best estimate assumptions and is based on the ratio of the present value of total expected excess payments (e.g., payments in excess of account value) over the life of the contract divided by the present value of total expected assessments (i.e., benefit ratio). The liability equals the current benefit ratio multiplied by cumulative assessments recognized to date, plus interest, less cumulative excess payments to date. Similar to as described above for DAC, the reserves are subject to adjustments based on annual reviews of assumptions and quarterly adjustments for experience, including market performance. These adjustments reflect the impact on the benefit ratio of using actual historical experience from the issuance date to the balance sheet date plus updated estimates of future experience. The updated benefit ratio is then applied to all prior periods’ assessments to derive an adjustment to the reserve recognized through a benefit or charge to current period earnings. The GMAB features provide the contractholder with a guaranteed return of initial account value or an enhanced value if applicable. The most significant of the Company’s GMAB features are the guaranteed return option features, which includes an automatic rebalancing element that reduces the Company’s exposure to these guarantees. The GMAB liability is calculated as the present value of future expected payments in excess of the account balance less the present value of future expected rider fees attributable to the embedded derivative feature. The GMWB features provide the contractholder with access to a guaranteed remaining balance if the account value is reduced to zero through a combination of market declines and withdrawals. The guaranteed remaining balance is generally equal to the protected value under the contract, which is initially established as the greater of the account value or cumulative deposits when withdrawals commence, less cumulative withdrawals. The contractholder also has the option, after a specified time period, to reset the guaranteed remaining balance to the then-current account value, if greater. The contractholder accesses the guaranteed remaining balance through payments over time, subject to maximum annual limits. The GMWB liability is calculated as the present value of future expected payments to customers less the present value of future expected rider fees attributable to the embedded derivative feature. The GMIWB features, taken collectively, provide a contractholder two optional methods to receive guaranteed minimum payments over time, a “withdrawal” option or an “income” option. The withdrawal option (which was available under only one of the GMIWBs and is no longer offered) guarantees that a contractholder can withdraw an amount each year until the cumulative withdrawals reach a total guaranteed balance. The income option (which varies among the Company’s GMIWBs), in general, guarantees the contractholder the ability to withdraw an amount each year for life (or for joint lives, in the case of any spousal version of the benefit) where such amount is equal to a percentage of a protected value under the benefit. The contractholder also has the potential to increase this annual amount, based on certain subsequent increases in account value that may occur. The GMIWB can be elected by the contractholder upon issuance of an appropriate deferred variable annuity contract or at any time following contract issue prior to annuitization. Certain GMIWB features include an automatic rebalancing element that reduces the Company’s exposure to these guarantees. The GMIWB liability is calculated as the present value of future expected payments to customers less the present value of future expected rider fees attributable to the embedded derivative feature. Sales Inducements The Company defers sales inducements and amortizes them over the anticipated life of the policy using the same methodology and assumptions used to amortize DAC. DSI is included in “Deferred sales inducements”. The Company has offered various types of sales inducements, including: (1) a bonus whereby the policyholder’s initial account balance is increased by an amount equal to a specified percentage of the customer’s initial deposit and (2) additional credits after a certain number of years a contract is held. Changes in DSI, reported as “Interest credited to policyholders’ account balances”, are as follows: Sales Inducements (in thousands) Balance at December 31, 2020 $ 0 Capitalization 167 Amortization - Impact of assumption and experience unlocking and true-ups 16,286 Amortization - All other (37,737) Change in unrealized investment gains and losses 7,669 Other (1) 388,264 Balance at December 31, 2021 $ 374,649 (1) Represents the impact of the 2021 Variable Annuities Recapture. There were no deferred sales inducements balances at December 31, 2020 because they were fully ceded. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2021 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | REINSURANCE The Company participates in reinsurance with its affiliates Prudential Arizona Reinsurance Captive Company (“PARCC”), Prudential Arizona Reinsurance Term Company (“PAR Term”), Prudential Arizona Reinsurance Universal Company (“PAR U”), Prudential Universal Reinsurance Company ("PURC"), Prudential Term Reinsurance Company (“Term Re”), PALAC, Gibraltar Universal Life Reinsurance Company ("GUL Re"), Dryden Arizona Reinsurance Term Company (“DART”), Lotus Reinsurance Company Ltd. ("Lotus Re") and Prudential Life Insurance Company of Taiwan Inc. ("Prudential of Taiwan"), a subsidiary of Prudential Financial that was sold to a third-party on June 30, 2021, as discussed below. As of July 1, 2021, the Company recaptured the risks related to its business that had been previously reinsured to PALAC as a result of the 2021 Variable Annuities Recapture, which is discussed below and in Note 1. The Company also participates in reinsurance with its parent company Prudential Insurance, as well as third parties. The reinsurance agreements provide risk diversification and additional capacity for future growth, limit the maximum net loss potential, manage statutory capital, and facilitate the Company's capital market hedging program. Life reinsurance is accomplished through various plans of reinsurance, primarily yearly renewable term and coinsurance. Reinsurance ceded arrangements do not discharge the Company as the primary insurer. Ceded balances would represent a liability of the Company in the event the reinsurers were unable to meet their obligations to the Company under the terms of the reinsurance agreements. The Company believes a material reinsurance liability resulting from such inability of reinsurers to meet their obligations is unlikely. Reserves related to reinsured long-duration contracts are accounted for using assumptions consistent with those used to account for the underlying contracts. Amounts recoverable from reinsurers for long-duration reinsurance arrangements are estimated in a manner consistent with the claim liabilities and policy benefits associated with the reinsured policies. Reinsurance policy charges and fee income ceded for universal life and variable annuity products are accounted for as a reduction of policy charges and fee income. Reinsurance premiums ceded for term insurance products are accounted for as a reduction of premiums. Realized investment gains and losses include the impact of reinsurance agreements, particularly reinsurance agreements involving living benefit guarantees. The Company has entered into reinsurance agreements to transfer the risk related to the living benefit guarantees on variable annuities to PALAC which was recaptured as part of the 2021 Variable Annuities Recapture, and the PLNJ business which was reinsured to Prudential Insurance. These reinsurance agreements are derivatives and have been accounted for in the same manner as embedded derivatives and the changes in the fair value of these derivatives are recognized through “Realized investment gains (losses), net”. See Note 4 for additional information related to the accounting for embedded derivatives. Reinsurance amounts included in the Company’s Consolidated Statements of Financial Position as of December 31, were as follows: 2021 2020 (in thousands) Reinsurance recoverables $ 38,598,767 $ 48,367,096 Policy loans (156,749) (153,869) Deferred policy acquisition costs (2,575,232) (6,574,020) Deferred sales inducements (37,905) (445,493) Other assets(1) 353,669 233,364 Policyholders’ account balances 12,005,839 4,773,439 Future policy benefits(2) 5,286,252 5,069,353 Other liabilities(3) 1,224,399 1,099,318 (1) Includes $0.0 million of unaffiliated activity as of both December 31, 2021 and 2020. (2) Includes $0.0 million of unaffiliated activity as of both December 31, 2021 and 2020. (3) Includes $49.2 million and $42.6 million of unaffiliated activity as of December 31, 2021 and 2020, respectively. Reinsurance recoverables by counterparty are broken out below: December 31, 2021 December 31, 2020 (in thousands) PAR U $ 13,523,832 $ 13,352,845 PALAC 7,198,504 15,941,123 PURC 5,830,441 5,368,831 PARCC 2,371,491 2,572,428 GUL Re 2,710,926 2,573,609 PAR Term 1,972,339 1,913,265 Prudential Insurance 2,082,551 2,421,226 Prudential of Taiwan 0 1,649,998 Term Re 1,953,063 1,766,978 DART 644,101 502,770 Lotus Re 32,039 0 Unaffiliated 279,480 304,023 Total reinsurance recoverables $ 38,598,767 $ 48,367,096 Reinsurance amounts, included in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss) for the years ended December 31, were as follows: 2021 2020 2019 (in thousands) Premiums: Direct $ 1,909,878 $ 1,923,708 $ 1,882,584 Assumed(1) 162 184 206 Ceded(2) (1,706,364) (1,831,716) (1,854,246) Net premiums 203,676 92,176 28,544 Policy charges and fee income: Direct 3,647,883 3,491,735 3,725,113 Assumed 582,003 587,466 519,265 Ceded(3) (2,700,129) (3,454,881) (3,700,222) Net policy charges and fee income 1,529,757 624,320 544,156 Net investment income: Direct 555,404 372,822 398,762 Assumed 1,049 1,579 1,631 Ceded (6,218) (7,051) (6,596) Net investment income 550,235 367,350 393,797 Asset administration fees: Direct 403,359 360,438 355,118 Assumed 0 0 0 Ceded (201,182) (341,300) (339,062) Net asset administration fees 202,177 19,138 16,056 Other income: Direct 227,035 78,445 83,891 Assumed(4) (66) (1) (293) Ceded 35,790 165 (59) Amortization of reinsurance income 4,449 4,647 21 Net other income 267,208 83,256 83,560 Realized investment gains (losses), net: Direct 7,656,388 (3,593,799) (1,912,241) Assumed 18,171 0 0 Ceded(5) (12,969,965) 3,530,823 1,795,492 Realized investment gains (losses), net (5,295,406) (62,976) (116,749) Policyholders’ benefits (including change in reserves): Direct 3,611,402 3,584,011 3,352,159 Assumed(6) 849,599 1,055,277 885,542 Ceded(7) (3,805,091) (4,341,139) (4,084,627) Net policyholders’ benefits (including change in reserves) 655,910 298,149 153,074 Interest credited to policyholders’ account balances: Direct 563,821 536,886 470,551 Assumed 138,202 136,153 135,355 Ceded (816,608) (439,664) (418,677) Net interest credited to policyholders’ account balances (114,585) 233,375 187,229 Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization (2,265,350) (1,589,113) (1,772,111) (1) Includes $0.2 million of unaffiliated activity for the year ended December 31, 2021 and $0.2 million for both years ended December 31, 2020 and 2019. (2) Includes $(19.8) million, $(10.5) million and $(0.6) million of unaffiliated activity for the years ended December 31, 2021, 2020 and 2019, respectively. (3) Includes $(65) million, $(54) million and $(34) million of unaffiliated activity for the years ended December 31, 2021, 2020 and 2019, respectively. (4) Includes $0.0 million, $0.0 million and $(0.3) million of unaffiliated activity for the years ended December 31, 2021, 2020 and 2019, respectively. (5) Includes $(48) million, $73 million and $44 million of unaffiliated activity for the years ended December 31, 2021, 2020 and 2019, respectively. (6) Includes $0.4 million, $0.9 million and $1.9 million of unaffiliated activity for the years ended December 31, 2021, 2020 and 2019, respectively. (7) Includes $(201) million, $(70) million and $(30) million of unaffiliated activity for the years ended December 31, 2021, 2020 and 2019, respectively. The gross and net amounts of life insurance face amount in force as of December 31, were as follows: 2021 2020 2019 (in thousands) Direct gross life insurance face amount in force $ 1,079,382,740 $ 1,045,775,819 $ 993,850,732 Assumed gross life insurance face amount in force 37,822,851 38,818,752 39,877,183 Reinsurance ceded (992,635,327) (986,701,914) (963,444,461) Net life insurance face amount in force $ 124,570,264 $ 97,892,657 $ 70,283,454 Information regarding significant affiliated reinsurance agreements is described below. PAR U Pruco Life reinsures an amount equal to 70% of all the risks associated with Universal Protector policies having no-lapse guarantees as well as certain of its universal policies, with effective dates prior to January 1, 2011. Effective July 1, 2012, PLNJ reinsures an amount equal to 95% of all the risks associated with Universal Protector policies having no-lapse guarantees as well as certain of its universal policies, with effective dates through December 31, 2019, excluding those policies that are subject to principle-based reserving. On January 2, 2013, Pruco Life began to assume Guaranteed Universal Life ("GUL") business from Prudential Insurance in connection with the acquisition of The Hartford Life Business. The GUL business assumed from Prudential Insurance was subsequently retroceded to PAR U. PALAC Effective April 1, 2016, the Company entered into a reinsurance agreement to reinsure its variable annuity base contracts, along with the living benefit guarantees to PALAC, excluding the PLNJ business, which was reinsured to Prudential Insurance. This reinsurance agreement covers new and in-force business and excludes business reinsured externally. As of December 31, 2020, the Company discontinued the sales of traditional variable annuities with guaranteed living benefit riders. This discontinuation had no impact on the reinsurance agreement between PALAC, Prudential Insurance, and the Company. Effective July 1, 2021, the Company recaptured the risks related to its business, as discussed above, that had previously been reinsured to PALAC from April 1, 2016 through June 30, 2021. The recapture does not impact PLNJ, which will continue to reinsure its new and in force business to Prudential Insurance. The product risks related to the previously reinsured business that were being managed in PALAC, were transferred to the Company. In addition, the living benefit hedging program related to the previously reinsured living benefit riders are being managed within the Company. See Note 1 for additional information. Effective December 1, 2021, the Company entered into a reinsurance agreement with PALAC under which the Company assumed all of its variable indexed annuities. The reinsurance of the variable indexed annuities transfers all significant risks, including mortality risk, embedded in the reinsured contracts. As a result of the agreement, Reinsurance recoverables includes the assumed modified coinsurance arrangement, which reflects the value of the invested assets retained by PALAC and the associated asset returns. PURC Pruco Life reinsures an amount equal to 70% of all the risks associated with its Universal Protector policies having no-lapse guarantees as well as certain of its universal policies, with effective dates from January 1, 2011 through December 31, 2013 with PURC and 95% of all the risks associated with Universal Protector policies having no-lapse guarantees, as well as certain of its universal policies, with effective dates from January 1, 2014 through December 31, 2016. PARCC Prior to July 1, 2019, the Company reinsured 90% of the risks under its term life insurance policies, with effective dates prior to January 1, 2010 through an automatic coinsurance agreement with PARCC. Effective July 1, 2019, the Company amended the coinsurance agreement to increase the percentage from 90% to 100% of the policy risk amount reinsured , which resulted in an initial transfer of $476 million in premiums and $409 million in expenses ceded with the difference being deferred and subsequently amortized through income. GUL Re Effective January 1, 2017, Pruco Life entered into an automatic coinsurance agreement with GUL Re to reinsure an amount equal to 95% of all the risks associated with Universal Protector policies having no-lapse guarantees, as well as certain of its universal policies, with effective dates on or after January 1, 2017 through December 31, 2019, excluding those policies that are subject to principle-based reserving. Effective July 1, 2017, Pruco Life amended this agreement to include 30% of Universal Protector policies having no-lapse guarantees as well as certain of its universal policies with effective dates prior to January 1, 2014. PAR Term Prior to July 1, 2019, the Company reinsures 95% of the risks under its term life insurance policies with effective dates January 1, 2010 through December 31, 2013, through an automatic coinsurance agreement with PAR Term. Effective July 1, 2019, the Company amended the coinsurance agreement to increase the percentage from 95% to 100% of the policy risk amount reinsured , which resulted in an initial transfer of $150 million in premiums and $115 million in expenses ceded with the difference being deferred and subsequently amortized through income. Prudential of Taiwan On January 31, 2001, Pruco Life transferred all of its assets and liabilities associated with its Taiwanese branch, including its Taiwanese insurance book of business, to Prudential of Taiwan. The mechanism used to transfer this block of business in Taiwan is referred to as a “full acquisition and assumption” transaction. Under this mechanism, Pruco Life is jointly liable with Prudential of Taiwan for two years from the giving of notice to all obligees for all matured obligations and for two years after the maturity date of not-yet-matured obligations. Prudential of Taiwan is also contractually liable, under indemnification provisions of the transaction, for any liabilities that may be asserted against Pruco Life. The transfer of the insurance related assets and liabilities was accounted for as a long-duration coinsurance transaction under U.S. GAAP. Under this accounting treatment, the insurance related liabilities remain on the books of Pruco Life and an offsetting reinsurance recoverable is established. These assets and liabilities are denominated in U.S. dollars. On August 11, 2020, Prudential International Insurance Holdings, Ltd. (“PIIH”), a subsidiary of Prudential Financial, entered into a Share Purchase Agreement with Taishin Financial Holding Co., Ltd. (the “Buyer”) pursuant to which PIIH has agreed to sell to the Buyer all of the issued and outstanding capital stock of Prudential of Taiwan. The Share Purchase Agreement contains customary warranties and covenants of PIIH and the Buyer. On June 30, 2021, PIIH completed the sale of Prudential of Taiwan to the Buyer. This resulted in the removal of the insurance related liabilities and offsetting reinsurance recoverables previously on the books of Pruco Life. The Buyer provided Pruco Life a backstop indemnification and Pruco Life provided a guarantee to stand ready to perform in the event of default by both Prudential of Taiwan and the Buyer. Refer to Note 14 for details on the guarantee. Term Re The Company reinsures 95% of the risks under its term life insurance policies, with effective dates on or after January 1, 2014, through December 31, 2017, through an automatic coinsurance agreement with Term Re. Prudential Insurance The Company has a yearly renewable term reinsurance agreement with Prudential Insurance and reinsures the majority of all mortality risks not otherwise reinsured. Effective July 1, 2017, this agreement has been terminated for certain new business, primarily Universal Life insurance policies. As of January 1, 2020, the remaining portions of new business (specifically Term policies) ceased being reinsured by the Company to Prudential Insurance. Effective July 1, 2017, the Company reinsures a portion of the mortality risk directly to third-party reinsurers and retains all of the non-reinsured portion of the mortality risk. Effective July 1, 2019, this agreement has been recaptured for certain term life insurance policies which are now reinsured to PARCC and PAR Term as noted above. On January 2, 2013, Pruco Life began to assume GUL business from Prudential Insurance in connection with the acquisition of the Hartford Financial Services Group, Inc. ("Hartford Financial"). The GUL business assumed from Prudential Insurance was subsequently retroceded to PAR U. In May 2018, Hartford Financial sold a group of operating subsidiaries, which includes two of Prudential Insurance's counterparties to these reinsurance arrangements. There was no impact to the terms, rights or obligations of Prudential Insurance, or operation of these reinsurance arrangements, as a result of this change in control of such counterparties. Similarly, there was no impact to the Company's reinsurance arrangements with respect to such GUL business as a result of this change in control. In January 2021, there was a definitive agreement announced to subsequently sell the two counterparties mentioned above. We anticipate there will be no impact to the terms, rights or obligations of the Company, or operation of these reinsurance arrangements, as a result of this change in control of such counterparties. The Company has reinsured a group annuity contract with Prudential Insurance, in consideration for a single premium payment by the Company, providing reinsurance equal to 100% of all payments due under the contract. Effective April 1, 2016, PLNJ entered into a reinsurance agreement to reinsure its variable annuity base contracts, along with the living benefit guarantees to Prudential Insurance. This reinsurance agreement covers new and in-force business. DART Effective January 1, 2018, the Company entered into an automatic coinsurance agreement with DART to reinsure an amount equal to 95% of the risks associated with its term life insurance policies with effective dates on or after January 1, 2018 through December 31, 2019, excluding those policies that are subject to principle-based reserving. Lotus Re Effective October 1, 2021, the Company entered into an automatic coinsurance agreement with Lotus Re to reinsure the risks associated with a portion of its Variable Life policies in the extended term policy status. During the first quarter of 2022, subject to the receipt of regulatory approvals and the satisfaction of customary closing conditions, the Company will enter into a reinsurance agreement to cede a closed block of Variable Life business to Lotus Re. Information regarding significant third-party reinsurance arrangements is described below. Union Hamilton Between April 1, 2015 and December 31, 2016, the Company, excluding its subsidiary, reinsured approximately 50% of the new business related to “highest daily” living benefits rider guarantees on HDI v.3.0 product, available with Prudential Premier ® |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The following schedule discloses significant components of income tax expense (benefit) for each year presented: Year Ended December 31, 2021 2020 2019 (in thousands) Current tax expense (benefit): U.S. federal $ 440,649 $ (358,548) $ 56,371 State and local 5,002 0 0 Total 445,651 (358,548) 56,371 Deferred tax expense (benefit): U.S. federal (1,137,090) 228,300 (115,503) Total (1,137,090) 228,300 (115,503) Total income tax expense (benefit) on income (loss) before equity in earnings of operating joint ventures (691,439) (130,248) (59,132) Income tax expense (benefit) on equity in earnings of operating joint ventures (147) (518) (1,773) Income tax expense (benefit) reported in equity related to: Other comprehensive income (loss) (52,374) 70,806 81,281 Total income tax expense (benefit) $ (743,960) $ (59,960) $ 20,376 Reconciliation of Expected Tax at Statutory Rates to Reported Income Tax Expense (Benefit) The differences between income taxes expected at the U.S. federal statutory income tax rate of 21% applicable for 2021, 2020 and 2019, and the reported income tax expense (benefit) are summarized as follows: Year Ended December 31, 2021 2020 2019 (in thousands) Expected federal income tax expense (benefit) $ (609,393) $ 14,308 $ 33,345 Non-taxable investment income (48,662) (46,836) (52,291) Tax credits (36,806) (27,980) (40,602) Changes in tax law (3,644) (70,121) 0 Other 7,066 381 416 Reported income tax expense (benefit) $ (691,439) $ (130,248) $ (59,132) Effective tax rate 23.8 % (191.2) % (37.2) % The effective tax rate is the ratio of “Income tax expense (benefit)” divided by “Income (loss) from operations before income taxes and equity in earnings of operating joint venture.” The Company’s effective tax rate for fiscal years 2021, 2020 and 2019 was 23.8%, (191.2)% and (37.2)%, respectively. The following is a description of items that had the most significant impact on the difference between the Company’s statutory U.S. federal income tax rate of 21% applicable for 2021, 2020 and 2019, and the Company’s effective tax rate during the periods presented: Non-Taxable Investment Income . The U.S. Dividends Received Deduction (“DRD”) reduces the amount of dividend income subject to U.S. tax and accounts for most of the non-taxable investment income shown in the table above. More specifically, the U.S. DRD constitutes $46 million of the total $49 million of 2021 non-taxable investment income, $45 million of the total $47 million of 2020 non-taxable investment income, and $50 million of the total $52 million of 2019 non-taxable investment income. The DRD for the current period was estimated using information from 2020, current year investment results, and current year’s equity market performance. The actual current year DRD can vary based on factors such as, but not limited to, changes in the amount of dividends received that are eligible for the DRD, changes in the amount of distributions received from fund investments, changes in the account balances of variable life and annuity contracts, and the Company’s taxable income before the DRD. Tax credits . These amounts primarily represent tax credits relating to foreign taxes withheld on the Company’s separate account investments. Changes in Tax Law . The following is a notable change in tax law that impacted the Company’s effective tax rate for the periods presented: The CARES Act. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted into law. One provision of the CARES Act amends the Tax Act of 2017 and allows companies with net operating losses (“NOLs”) originating in 2020, 2019 or 2018 to carry back those losses for up to five years. For 2020, the Company recorded an income tax benefit of $70 million from carrying the estimated 2020 NOL back to tax years that have a 35% tax rate. Other . This line item represents insignificant reconciling items that are individually less than 5% of the computed expected federal income tax expense (benefit) and have therefore been aggregated for purposes of this reconciliation in accordance with relevant disclosure guidance. Schedule of Deferred Tax Assets and Deferred Tax Liabilities As of December 31, 2021 2020 (in thousands) Deferred tax assets: Insurance reserves $ 2,391,739 $ 296,635 Other 2,894 0 Deferred tax assets 2,394,633 296,635 Deferred tax liabilities: Deferred policy acquisition cost 1,003,301 142,147 Deferred sales inducements 78,676 0 Net unrealized gain on securities 114,705 180,067 Investments 155,891 124,821 Other 0 4,032 Deferred tax liabilities 1,352,573 451,067 Net deferred tax asset (liability) $ 1,042,060 $ (154,432) The application of U.S. GAAP requires the Company to evaluate the recoverability of deferred tax assets and establish a valuation allowance if necessary to reduce the deferred tax asset to an amount that is more likely than not expected to be realized. Considerable judgment is required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance, the Company considers many factors, including: (1) the nature of the deferred tax assets and liabilities; (2) whether they are ordinary or capital; (3) in which tax jurisdictions they were generated and the timing of their reversal; (4) taxable income in prior carryback years as well as projected taxable earnings exclusive of reversing temporary differences and carryforwards; (5) the length of time that carryovers can be utilized in the various taxing jurisdictions; (6) any unique tax rules that would impact the utilization of the deferred tax assets; and (7) any tax planning strategies that the Company would employ to avoid a tax benefit from expiring unused. Although realization is not assured, management believes it is more likely than not that the deferred tax assets, net of valuation allowances, will be realized. The Company had no valuation allowance as of December 31, 2021 and 2020. Adjustments to the valuation allowance will be made if there is a change in management’s assessment of the amount of deferred tax asset that is realizable. The Company’s “Income (loss) from operations before income taxes and equity in earnings of operating joint venture” includes income from domestic operations of $(2,902) million, $68 million and $159 million for the years ended December 31, 2021, 2020 and 2019, respectively. Tax Audit and Unrecognized Tax Benefits The Company’s liability for income taxes includes the liability for unrecognized tax benefits and interest that relate to tax years still subject to review by the IRS or other taxing authorities. The completion of review or the expiration of the Federal statute of limitations for a given audit period could result in an adjustment to the liability for income taxes. The Company had no unrecognized tax benefits as of December 31, 2021, 2020, and 2019. The Company does not anticipate any significant changes within the next twelve months to its total unrecognized tax benefits related to tax years for which the statute of limitations has not expired. The Company classifies all interest and penalties related to tax uncertainties as income tax expense (benefit). The company did not recognize tax related interest and penalties. At December 31, 2021, the Company remains subject to examination in the U.S. for tax years 2014 through 2021. The Company participates in the IRS’s Compliance Assurance Program. Under this program, the IRS assigns an examination team to review completed transactions as they occur in order to reach agreement with the Company on how they should be reported in the relevant tax returns. If disagreements arise, accelerated resolution programs are available to resolve the disagreements in a timely manner. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Equity | EQUITY Accumulated Other Comprehensive Income (Loss) AOCI represents the cumulative OCI items that are reported separate from net income and detailed on the Consolidated Statements of Comprehensive Income. Net unrealized investment gains (losses) are described in further detail in Note 2. The balance of and changes in each component of AOCI as of and for the years ended December 31, are as follows: Accumulated Other Comprehensive Income (Loss) Foreign Currency Net Unrealized Total Accumulated (in thousands) Balance, December 31, 2018 $ (17,448) $ (10,848) $ (28,296) Change in OCI before reclassifications 9,572 435,919 445,491 Amounts reclassified from AOCI 0 (54,472) (54,472) Income tax benefit (expense) (41) (81,240) (81,281) Balance, December 31, 2019 (7,917) 289,359 281,442 Change in OCI before reclassifications 599 327,819 328,418 Amounts reclassified from AOCI 0 7,074 7,074 Income tax benefit (expense) (479) (70,327) (70,806) Balance, December 31, 2020 (7,797) 553,925 546,128 Change in OCI before reclassifications (3,891) (222,182) (226,073) Amounts reclassified from AOCI 0 (24,994) (24,994) Income tax benefit (expense) 414 51,960 52,374 Balance, December 31, 2021 $ (11,274) $ 358,709 $ 347,435 (1) Includes cash flow hedges of $40 million, $(8) million, and $26 million as of December 31, 2021, 2020 and 2019, respectively. Reclassifications out of Accumulated Other Comprehensive Income (Loss) Year Ended December 31, 2021 2020 2019 (in thousands) Amounts reclassified from AOCI(1)(2): Net unrealized investment gains (losses): Cash flow hedges—Currency/Interest rate(3) $ 28,508 $ 162 $ 7,734 Net unrealized investment gains (losses) on available-for-sale securities(4) (3,514) (7,236) 46,738 Total net unrealized investment gains (losses) 24,994 (7,074) 54,472 Total reclassifications for the period $ 24,994 $ (7,074) $ 54,472 (1) All amounts are shown before tax. (2) Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI. (3) See Note 4 for additional information on cash flow hedges. (4) See table below for additional information on unrealized investment gains (losses), including the impact on DAC and other costs, future policy benefits, policyholders’ account balances and other liabilities. Net Unrealized Investment Gains (Losses) Net unrealized investment gains (losses) on available-for-sale fixed maturity securities and certain other invested assets and other assets are included in the Company’s Consolidated Statements of Financial Position as a component of AOCI. Changes in these amounts include reclassification adjustments to exclude from OCI those items that are included as part of “Net income” (loss) for a period that had been part of OCI in earlier periods. The amounts for the periods indicated below, split between amounts related to available-for-sale fixed maturity securities on which an OTTI had been previously recognized, an allowance for credit losses has been recorded, and all other net unrealized investment gains (losses), are as follows: Net Unrealized Gains (Losses) on Available-for-Sale Fixed Maturity Securities on which an OTTI Loss has been Recognized Net Unrealized Gains (Losses) on Investments on Available-for-Sale Fixed Maturity Securities on which an allowance for credit losses has been recorded(1) Net Unrealized Gains (Losses) on All Other Investments(3) DAC and Future Policy Income Tax Accumulated (in thousands) Balance, December 31, 2018 $ (689) $ 0 $ (16,632) $ (65,895) $ 68,042 $ 4,326 $ (10,848) Net unrealized investment gains (losses) on investments arising during the period 2,112 0 494,861 0 0 (105,845) 391,128 Reclassification adjustment for (gains) losses included in net income 210 0 (54,682) 0 0 11,601 (42,871) Reclassification adjustment for OTTI losses excluded from net income(2) (65) 0 65 0 0 0 0 Impact of net unrealized investment 0 0 0 489,122 (550,176) 13,004 (48,050) Balance, December 31, 2019 1,568 0 423,612 423,227 (482,134) (76,914) 289,359 Reclassification due to implementation of ASU 2016-13 (6) (1,568) 0 1,568 0 0 0 0 Net unrealized investment gains (losses) on investments arising during the period 0 616 416,479 0 0 (87,588) 329,507 Reclassification adjustment for (gains) losses included in net income 0 0 7,074 0 0 (1,486) 5,588 Reclassification due to allowance for credit losses recorded during the period 0 (616) 616 0 0 0 0 Impact of net unrealized investment 0 0 0 776,821 (866,097) 18,747 (70,529) Balance, December 31, 2020 0 0 849,349 1,200,048 (1,348,231) (147,241) 553,925 Net unrealized investment gains (losses) on investments arising during the period 0 2,951 (240,917) 0 0 50,016 (187,950) Reclassification adjustment for (gains) losses included in net income 0 (8) (24,986) 0 0 5,277 (19,717) Reclassification due to allowance for credit losses recorded during the period 0 742 (742) 0 0 0 0 Impact of net unrealized investment 0 0 0 (216,963) 232,747 (3,333) 12,451 Balance, December 31, 2021 $ 0 $ 3,685 $ 582,704 $ 983,085 $ (1,115,484) $ (95,281) $ 358,709 (1) Allowance for credit losses on available-for-sale fixed maturity securities effective January 1, 2020. (2) Represents "transfers out" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. (3) Includes cash flow hedges. See Note 4 for information on cash flow hedges. (4) "Other costs" primarily includes reinsurance recoverables and deferred reinsurance losses. (5) "Other liabilities" primarily includes reinsurance payables. |
Statutory Net Income and Surplu
Statutory Net Income and Surplus and Dividend Restrictions | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Statutory Net Income and Surplus and Dividend Restrictions | STATUTORY NET INCOME AND SURPLUS AND DIVIDEND RESTRICTIONS The Company is required to prepare statutory financial statements in accordance with accounting practices prescribed or permitted by the Arizona Department of Insurance ("AZDOI"). It's subsidiary PLNJ is required to prepare statutory financial statements in accordance with accounting practices prescribed or permitted by the New Jersey Department of Insurance and Banking. Statutory accounting practices primarily differ from U.S. GAAP by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions and valuing investments, deferred taxes, and certain assets on a different basis. Statutory net income (loss) for the Company, including its subsidiary PLNJ, amounted to $833 million, $(671) million and $262 million for the years ended December 31, 2021, 2020 and 2019, respectively. Statutory surplus of the Company, including its subsidiary PLNJ, amounted to $5,955 million and $1,461 million at December 31, 2021 and 2020, respectively. Prior year amounts have been updated to conform to finalized statutory filings where applicable. The Company does not utilize prescribed or permitted practices that vary materially from the statutory accounting practices prescribed by the NAIC. The Company is subject to Arizona law, which limits the amount of dividends that insurance companies can pay to stockholders without approval of the AZDOI. The maximum dividend, which may be paid in any twelve-month period without notification or approval, is limited to the lesser of 10% of statutory surplus as of December 31 of the preceding year or the net gain from operations of the preceding calendar year. Cash dividends may only be paid out of surplus derived from realized net profits. The Company must obtain approval from AZDOI prior to paying a dividend if the dividend, together with other dividend distributions made within the preceding twelve months, would exceed the lesser of 10% of statutory surplus or net gain from operations. Based on these limitations, there is a capacity to pay a dividend of $595 million in 2022 without prior approval. In December 2019, the Company paid a dividend of $250 million to its sole shareholder, Prudential Insurance, of which $146 million was an ordinary dividend and $104 million was recorded as a return of capital. The dividend was approved by the State of Arizona. The Company did not pay dividends to Prudential Insurance in 2021 and 2020. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS The Company has extensive transactions and relationships with Prudential Insurance and other affiliates. Although we seek to ensure that these transactions and relationships are fair and reasonable, it is possible that the terms of these transactions are not the same as those that would result from transactions among unrelated parties. Expense Charges and Allocations The majority of the Company’s expenses are allocations or charges from Prudential Insurance or other affiliates. These expenses can be grouped into general and administrative expenses and agency distribution expenses. The Company’s general and administrative expenses are charged to the Company using allocation methodologies based on business production processes. Management believes that the methodology is reasonable and reflects costs incurred by Prudential Insurance to process transactions on behalf of the Company. The Company operates under service and lease agreements whereby services of officers and employees, supplies, use of equipment and office space are provided by Prudential Insurance. The Company reviews its allocation methodology periodically which it may adjust accordingly. General and administrative expenses include allocations of stock compensation expenses related to a stock-based awards program and a deferred compensation program issued by Prudential Financial. The expense charged to the Company for the stock-based awards program was $1 million for each of the years ended December 31, 2021, 2020 and 2019. The expense charged to the Company for the deferred compensation program was $4 million, $5 million and $6 million for the years ended December 31, 2021, 2020 and 2019, respectively. The Company is charged for its share of employee benefit expenses. These expenses include costs for funded and non-funded, non-contributory defined benefit pension plans. Some of these benefits are based on final earnings and length of service while others are based on an account balance, which takes into consideration age, service and earnings during a career. The Company’s share of net expense for the pension plans was $14 million, $17 million and $20 million for the years ended December 31, 2021, 2020 and 2019, respectively. The Company is also charged for its share of the costs associated with welfare plans issued by Prudential Insurance. These expenses include costs related to medical, dental, life insurance and disability. The Company's share of net expense for the welfare plans was $13 million, $18 million and $24 million for the years ended December 31, 2021, 2020 and 2019, respectively. Prudential Insurance sponsors voluntary savings plans for its employee 401(k) plans. The plans provide for salary reduction contributions by employees and matching contributions by the Company of up to 4% of annual salary. The Company’s expense for its share of the voluntary savings plan was $5 million, $7 million and $9 million for the years ended December 31, 2021, 2020 and 2019, respectively. The Company is charged distribution expenses from Prudential Insurance’s agency network for both its domestic life and annuity products through a transfer pricing agreement, which is intended to reflect a market-based pricing arrangement. The Company pays commissions and certain other fees to Prudential Annuities Distributors, Inc. (“PAD”) in consideration for PAD’s marketing and underwriting of the Company’s annuity products. Commissions and fees are paid by PAD to broker-dealers who sell the Company’s annuity products. Commissions and fees paid by the Company to PAD were $379 million, $529 million and $747 million for the years ended December 31, 2021, 2020 and 2019, respectively. The Company is charged for its share of corporate expenses incurred by Prudential Financial to benefit its businesses, such as advertising, executive oversight, external affairs and philanthropic activity. The Company’s share of corporate expenses was $86 million, $76 million and $116 million for the years ended December 31, 2021, 2020 and 2019, respectively. Corporate-Owned Life Insurance The Company has sold five Corporate Owned Life Insurance (“COLI”) policies to Prudential Insurance, and one to Prudential Financial. The cash surrender value included in separate accounts for these COLI policies was $5,248 million at December 31, 2021 and $4,757 million at December 31, 2020. Fees related to these COLI policies were $56 million, $50 million and $48 million for the years ended December 31, 2021, 2020 and 2019, respectively. The Company retains the majority of the mortality risk associated with these COLI policies up to $3.5 million per individual policy. Affiliated Investment Management Expenses In accordance with an agreement with PGIM, Inc. ("PGIM"), the Company pays investment management expenses to PGIM who acts as investment manager to certain Company general account and separate account assets. Investment management expenses paid to PGIM related to this agreement were $20 million, $15 million and $14 million for the years ended December 31, 2021, 2020 and 2019, respectively. These expenses are recorded as “Net investment income” in the Consolidated Statements of Operations and Comprehensive Income. Derivative Trades In its ordinary course of business, the Company enters into OTC derivative contracts with an affiliate, PGF. For these OTC derivative contracts, PGF has a substantially equal and offsetting position with an external counterparty. See Note 4 for additional information. Joint Ventures The Company has made investments in joint ventures with certain subsidiaries of Prudential Financial. "Other invested assets" includes $466 million and $111 million as of December 31, 2021 and 2020, respectively. "Net investment income" related to these ventures include gains of $39 million, $12 million and $9 million for the years ended December 31, 2021, 2020 and 2019, respectively. Affiliated Asset Administration Fee Income The Company has a revenue sharing agreement with AST Investment Services, Inc. ("ASTISI") and PGIM Investments LLC ("PGIM Investments") whereby the Company receives fee income based on policyholders' separate account balances invested in the Advanced Series Trust. Income received from ASTISI and PGIM Investments related to this agreement was $374 million, $344 million and $341 million for the years ended December 31, 2021, 2020 and 2019, respectively. These revenues are recorded as “Asset administration fees” in the Consolidated Statements of Operations and Comprehensive Income. The Company has a revenue sharing agreement with PGIM Investments, whereby the Company receives fee income based on policyholders’ separate account balances invested in The Prudential Series Fund. Income received from PGIM Investments related to this agreement was $21 million, $11 million and $10 million for the years ended December 31, 2021, 2020 and 2019, Affiliated Notes Receivable Affiliated notes receivable included in “Receivables from parent and affiliates” at December 31, were as follows: Maturity Dates Interest Rates 2021 2020 (in thousands) U.S. dollar fixed rate notes 2024 - 2032 0.00% - 14.85 % $ 162,045 $ 111,970 Total long-term notes receivable - affiliated(1) $ 162,045 $ 111,970 (1) All long-term notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances. The affiliated notes receivable shown above are classified as available-for-sale securities and other trading assets carried at fair value. The Company monitors the internal and external credit ratings of these loans and loan performance. The Company also considers any guarantees made by Prudential Insurance for loans due from affiliates. Accrued interest receivable related to these loans was $1 million at both December 31, 2021 and 2020, and is included in “Other assets.” Revenues related to these loans was $4 million for each of the years ended December 31, 2021, 2020 and 2019, and are included in “Other income.” Affiliated Commercial Mortgage Loan The affiliated commercial mortgage loan included in "Commercial mortgage and other loans" at December 31, was as follows: Maturity Date Interest Rate 2021 (in thousands) Affiliated Commercial Mortgage Loan 2025 4.60% $ 73,412 This affiliated commercial mortgage loan was transferred from PALAC as part of the 2021 Variable Annuities Recapture. See Note 1 for details. The Company did not have any affiliated commercial mortgage loans outstanding at December 31, 2020. The commercial mortgage loan shown above is carried at unpaid principal balance, net of unamortized deferred loan origination fees and expenses, and net of an allowance for losses. The Company reviews the performance and credit quality of the commercial mortgage on an on-going basis. Accrued interest receivable related to the loan was $0.3 million at December 31, 2021 and is included in "Accrued investment income". Revenue was $1.7 million for the year ended December 31, 2021 and is included in "Net investment income." Affiliated Asset Transfers The Company participates in affiliated asset trades with parent and sister companies. Book and market value differences for trades with a parent and sister are recognized within "Additional paid-in capital" ("APIC") and "Realized investment gains (losses), net," respectively. The table below shows affiliated asset trades for the years ended December 31, 2021 and 2020, excluding those related to the 2021 Variable Annuities Recapture effective July 1, 2021, as described in Note 1. Affiliate Date Transaction Security Type Fair Book Value APIC, Net Realized (in thousands) Prudential Insurance March 2020 Purchase Other Invested Assets $ 1,390 $ 1,390 $ 0 $ 0 Prudential Insurance April 2020 Purchase Fixed Maturities $ 61,953 $ 59,659 $ (1,812) $ 0 Prudential Insurance April 2020 Purchase Fixed Maturities $ 3,485 $ 3,320 $ (130) $ 0 GA BV LLC July 2020 Transfer Out Fixed Maturities $ 1,914 $ 1,914 $ 0 $ 0 PALAC June 2021 Purchase Equities $ 40,284 $ 40,284 $ 0 $ 0 Prudential Insurance September 2021 Purchase Fixed Maturities $ 64,374 $ 59,642 $ (3,739) $ 0 Prudential Insurance September 2021 Sale Fixed Maturities $ 37,887 $ 35,264 $ 2,073 $ 0 Hirakata LLC September 2021 Purchase Fixed Maturities $ 13,944 $ 13,944 $ 0 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Purchase Fixed Maturities $ 120,256 $ 120,256 $ 0 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Sale Fixed Maturities $ 173,590 $ 166,427 $ 0 $ 7,163 Prudential Insurance September 2021 Purchase Commercial Mortgage and Other Loans $ 45,358 $ 42,127 $ (2,553) $ 0 Prudential Insurance September 2021 Sale Commercial Mortgage and Other Loans $ 22,796 $ 21,780 $ 802 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Purchase Commercial Mortgage and Other Loans $ 29,483 $ 29,483 $ 0 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Sale Commercial Mortgage and Other Loans $ 51,005 $ 47,020 $ 0 $ 3,985 Prudential Insurance September 2021 Purchase Derivatives $ 600 $ 494 $ (84) $ 0 Prudential Insurance September 2021 Sale Derivatives $ 335 $ 175 $ 127 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Purchase Derivatives $ (1,243) $ (1,243) $ 0 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Sale Derivatives $ 2,846 $ 770 $ 0 $ 2,076 Prudential Arizona Reinsurance Universal Co. November 2021 Purchase Fixed Maturities $ 41,021 $ 41,021 $ 0 $ 0 PALAC November 2021 Purchase Derivatives $ 1,112 $ 1,112 $ 0 $ 0 PALAC December 2021 Transfer in Fixed Maturities $ 2,037,320 $ 2,037,320 $ 0 $ 0 Prudential Universal Reinsurance Co. December 2021 Purchase Fixed Maturities $ 48,041 $ 48,041 $ 0 $ 0 PALAC December 2021 Purchase Fixed Maturities $ 57,087 $ 57,087 $ 0 $ 0 PALAC December 2021 Transfer in Commercial Mortgage and Other Loans $ 517,309 $ 517,309 $ 0 $ 0 Prudential Insurance December 2021 Contributed Capital Fixed Maturities $ 166,676 $ 166,676 $ 0 $ 0 Prudential Retirement Insurance & Annuity Co December 2021 Sale Derivatives $ 31,567 $ 0 $ 0 $ 31,567 Prudential Retirement Insurance & Annuity Co December 2021 Purchase Derivatives $ 73,572 $ 73,572 $ 0 $ 0 PALAC December 2021 Purchase Derivatives $ 8,455 $ 8,455 $ 0 $ 0 Debt Agreements The Company is authorized to borrow funds up to $2.2 billion from affiliates to meet its capital and other funding needs. The following table provides the breakout of the Company's short and long-term debt to affiliates as of December 31, 2021: Affiliate Date Issued Amount of Notes - December 31, 2021 Amount of Notes - December 31, 2020 Interest Date of Maturity (in thousands) Prudential Insurance 8/13/2021 $ 99,770 $ 0 4.39 % 12/15/2023 Prudential Insurance 8/13/2021 29,931 0 4.39 % 12/15/2023 Prudential Insurance 8/13/2021 100,348 0 3.95 % 6/20/2024 Prudential Insurance 8/13/2021 40,139 0 3.95 % 6/20/2024 Prudential Insurance 8/13/2021 50,174 0 3.95 % 6/20/2024 Total Loans Payable to Affiliates $ 320,362 $ 0 Effective August 2021, the affiliated long-term debt was transferred to the Company from PALAC based on the market value of $324 million. The Company recorded a premium of $24 million which will be amortized into earnings over the life of the loans. The total interest expense to the Company related to loans payable to affiliates was $0.4 million, $0.7 million and $2.3 million for the years ended December 31, 2021, 2020 and 2019, respectively. Contributed Capital and Dividends In January, July and December of 2021, the Company received capital contributions in the amount of $106 million and $3,813 million and $457 million, respectively, from Prudential Insurance. The December 2021 capital contribution includes $167 million of invested assets related to the Affiliated Reinsurance Agreement with PALAC. In June, September, and December of 2020, the Company received capital contributions in the amounts of $325 million, $75 million and $175 million, respectively, from Prudential Insurance. In December of 2019, the Company received a capital contribution in the amount of $6 million from Prudential Insurance. In June 2021, there was a $34 million return of capital to Prudential Insurance associated with the financial guarantee related to the sale of Prudential of Taiwan. In 2020 the Company did not return capital. In 2021 and 2020, the Company did not pay any dividends to Prudential Insurance. In 2019, the Company paid a dividend in the amount of $250 million to Prudential Insurance. Reinsurance with Affiliates As discussed in Note 9, the Company participates in reinsurance transactions with certain affiliates. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | COMMITMENTS AND CONTINGENT LIABILITIES Commitments The Company has made commitments to fund commercial mortgage loans. As of December 31, 2021 and 2020, the outstanding balances on these commitments were $121 million and $30 million, respectively. These amounts include unfunded commitments that are not unconditionally cancellable. For related credit exposure, there was an allowance for credit losses o f $0.0 million as of both December 31, 2021, and 2020, which is a change o f $0.0 million for both the years ended December 31, 2021 and 2020. The Company also made commitments to purchase or fund investments, mostly private fixed maturities. As of December 31, 2021 and 2020, $753 million and $354 million, respectively, of these commitments were outstanding. These amounts include unfunded commitments that are not unconditionally cancellable. There were no related charges for credit losses for both the years ended December 31, 2021 and 2020. Guarantees In July 2017, the Company formed a joint venture with CT Corp to provide life insurance solutions in Indonesia. The Company owns a 49% interest in the joint venture and has entered into a shareholders agreement with CT Corp that sets out their respective rights and obligations with respect to the joint venture. Among other things, the shareholders agreement obligates the Company and CT Corp to provide capital to the joint venture, as necessary to comply with applicable law or to maintain a specified minimum amount of capital in the joint venture. This obligation is not limited to a maximum amount. The Company does not expect to make any payments on this guarantee and is not carrying any liabilities associated with the guarantee. Since 2001, the Company entered into an arrangement with Prudential of Taiwan as discussed in Note 9. In June 2021, PIIH completed the sale of Prudential of Taiwan. As a result of the sale, the Company has a financial guarantee to stand ready to perform in an event that both Prudential of Taiwan and the Buyer default and fail to perform their obligations to make payments to the policyholders. The Company has a liability of $34 million as of December 31, 2021, which represents the fair value of the guarantee and is amortized in revenue over a period which approximates the life of the underlying insurance in force. Since this obligation is not subject to limitations, it is not possible to determine the maximum potential amount due under this guarantee. Contingent Liabilities On an ongoing basis, the Company and its regulators review its operations including, but not limited to, sales and other customer interface procedures and practices, and procedures for meeting obligations to its customers and other parties. These reviews may result in the modification or enhancement of processes or the imposition of other action plans, including concerning management oversight, sales and other customer interface procedures and practices, and the timing or computation of payments to customers and other parties. In certain cases, if appropriate, the Company may offer customers or other parties remediation and may incur charges, including the cost of such remediation, administrative costs and regulatory fines. The Company is subject to the laws and regulations of states and other jurisdictions concerning the identification, reporting and escheatment of unclaimed or abandoned funds, and is subject to audit and examination for compliance with these requirements. It is possible that the results of operations or the cash flows of the Company in a particular quarterly or annual period could be materially affected as a result of payments in connection with the matters discussed above or other matters depending, in part, upon the results of operations or cash flows for such period. Management believes, however, that ultimate payments in connection with these matters, after consideration of applicable reserves and rights to indemnification, should not have a material adverse effect on the Company’s financial position. Litigation and Regulatory Matters The Company is subject to legal and regulatory actions in the ordinary course of its business. Pending legal and regulatory actions include proceedings specific to the Company and proceedings generally applicable to business practices in the industry in which it operates. The Company is subject to class action lawsuits and other litigation involving a variety of issues and allegations involving sales practices, claims payments and procedures, premium charges, policy servicing and breach of fiduciary duty to customers. The Company is also subject to litigation arising out of its general business activities, such as its investments, contracts, leases and labor and employment relationships, including claims of discrimination and harassment, and could be exposed to claims or litigation concerning certain business or process patents. In addition, the Company, along with other participants in the businesses in which it engages, may be subject from time to time to investigations, examinations and inquiries, in some cases industry-wide, concerning issues or matters upon which such regulators have determined to focus. In some of the Company’s pending legal and regulatory actions, parties are seeking large and/or indeterminate amounts, including punitive or exemplary damages. The outcome of litigation or a regulatory matter, and the amount or range of potential loss at any particular time, is often inherently uncertain. The Company establishes accruals for litigation and regulatory matters when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. For litigation and regulatory matters where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimable, no accrual is established, but the matter, if material, is disclosed. The Company estimates that as of December 31, 2021, the aggregate range of reasonably possible losses in excess of accruals established for those litigation and regulatory matters for which such an estimate currently can be made is less than $100 million. This estimate is not an indication of expected loss, if any, or the Company's maximum possible loss exposure on such matters. The Company reviews relevant information with respect to its litigation and regulatory matters on a quarterly and annual basis and updates its accruals, disclosures and estimates of reasonably possible loss based on such reviews. Behfarin v. Pruco Life In July 2017, a putative class action complaint entitled Richard Behfarin v. Pruco Life Insurance Company was filed in the United States District Court for the Central District of California, alleging that the Company imposes charges on owners of universal life policies to cure defaults and/or reinstate lapses, that are inconsistent with the applicable universal life policy. The complaint includes claims for breach of contract, breach of implied covenant of good faith and fair dealing, and violation of California law, and seeks unspecified damages along with declaratory and injunctive relief. In September 2017, the Company filed its answer to the complaint. In September 2018, plaintiff filed a motion for class certification. In October 2019, plaintiff filed: (1) the First Amended Complaint adding Prudential Insurance Company of America and Pruco Life Insurance Company of New Jersey as defendants; and (2) a motion seeking preliminary certification of a settlement class, appointment of a class representative and class counsel, and preliminary approval of the proposed class action settlement. In November 2019, the court issued an order granting the motion for preliminary approval of the settlement. In June 2020, the court issued an order: (i) granting plaintiffs’ motion for certification of the settlement class; (ii) approving the proposed nationwide class settlement agreement; (iii) approving the class notice; (iv) awarding attorneys’ fees and costs to plaintiffs and a reduced incentive award to Behfarin; and (v) dismissing the action with prejudice, but maintaining jurisdiction over the settlement. This matter is now closed. Moreland, Socorro v. PICA, et al. In June 2020, a putative class action complaint entitled Socorro Moreland v. The Prudential Insurance Company of America; Pruco Life Insurance Company, was filed in the United States District Court for the Northern District of California, alleging that the Company failed to comply with California laws requiring that life insurance policies issued and delivered in California: (i) provide for a 60-day grace period pre-lapse during which a policy must stay in force; (ii) provide a 30-day written notice of pending lapse; and (iii) notify policyowners of their right to designate additional recipients for lapse notices. The complaint asserts claims for violation of California law, breach of contract, unfair competition, and bad faith violation of the implied covenant of good faith and fair dealing, and seeks unspecified damages, declaratory and injunctive relief. In August 2020, defendants filed an answer to the complaint and a motion to stay the action pending the California Supreme Court’s decision, in McHugh v. Protective Life Insurance, on the question of whether the California lapse statutes apply to policies that were in force when the statutes went into effect on January 1, 2013, or solely to policies issued after that date. The Moreland court granted defendants’ motion to stay in October 2020. Subsequently, in August 2021, the California Supreme Court in McHugh determined that the California lapse statutes apply to policies that were in force as of January 1, 2013. In October 2021, the Moreland court lifted the stay order. Doyle C. Stone v. PFI, et al. In February 2021, a putative class action complaint entitled Doyle C. Stone v. Prudential Financial, Inc., Pruco Life Insurance Company , was filed in the United States District Court for the District of New Jersey. The complaint asserts claims against Prudential Financial, Inc. and Pruco Life Insurance Company for violation of the New Jersey Consumer Fraud Act, breach of contract, breach of fiduciary duty, breach of implied duty of good faith and fair dealing, misrepresentation and unjust enrichment, based on: (i) the Company’s alleged deficient identification, notification and payment practices for retirement plan participants in transferred group retirement, annuity and insurance plans (“Plan Participants”); and (ii) improper transfer of Plan Participant funds to its own accounts. The putative class includes all Plan Participants from January 2015 to the present. In April 2021, defendants filed a motion to dismiss the complaint. In June 2021, plaintiff filed a notice of voluntary dismissal of the complaint, without prejudice. In August 2021, plaintiff filed a new putative class action complaint in the United States District Court for the District of New Jersey (the “Second Complaint”), asserting claims against Prudential Financial, Inc. and Pruco Life Insurance Company for violation of the New Jersey Consumer Fraud Act, breach of fiduciary duty, unjust enrichment and common law fraud. The putative class includes all Plan Participants from January 2015 until the present. In September 2021, defendants filed a motion to dismiss the Second Complaint. In November 2021, the court issued an order granting defendants’ motion and dismissed plaintiff’s: (i) fraud claims without prejudice; and (ii) breach of fiduciary duty and unjust enrichment claims with prejudice. In January 2022, plaintiff filed a Notice of Voluntary Dismissal With Prejudice that was approved by the Court. This matter is now closed. Regulatory Variable Products The Company has received regulatory inquiries and requests for information from state and federal regulators, including subpoenas from the U.S. Securities and Exchange Commission, concerning the appropriateness of variable product sales and replacement activity. The Company is cooperating with regulators and may become subject to additional regulatory inquiries and other actions related to this matter. Summary The Company’s litigation and regulatory matters are subject to many uncertainties, and given their complexity and scope, their outcome cannot be predicted. It is possible that the Company’s results of operations or cash flows in a particular quarterly or annual period could be materially affected by an ultimate unfavorable resolution of pending litigation and regulatory matters depending, in part, upon the results of operations or cash flows for such period. In light of the unpredictability of the Company’s litigation and regulatory matters, it is also possible that in certain cases an ultimate unfavorable resolution of one or more pending litigation or regulatory matters could have a material adverse effect on the Company’s financial statements. Management believes, however, that, based on information currently known to it, the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, is not likely to have a material adverse effect on the Company’s financial statements. |
Schedule I - Summary of Investm
Schedule I - Summary of Investments Other Than investments in Related Parties | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule I - Summary of Investments Other Than investments in Related Parties | Type of Investment Amortized Cost or Cost Fair Amount Fixed maturities, available-for-sale: Bonds: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 303,040 $ 333,940 $ 333,940 Obligations of U.S. states and their political subdivisions 584,244 630,521 630,521 Foreign governments 324,454 350,471 350,471 Asset-backed securities 547,549 547,310 547,310 Commercial mortgage-backed securities 552,653 575,184 575,184 Residential mortgage-backed securities 18,684 20,180 20,180 Public utilities 1,343,463 1,436,962 1,436,962 All other corporate bonds 9,061,083 9,380,909 9,380,909 Redeemable preferred stock 2,579 2,689 2,689 Total fixed maturities, available-for-sale $ 12,737,749 $ 13,278,166 $ 13,278,166 Equity securities: Common stocks: Other common stocks $ 467 $ 2,331 $ 2,331 Mutual funds 96,858 98,634 98,634 Perpetual preferred stocks 8,849 10,302 10,302 Total equity securities, at fair value $ 106,174 $ 111,267 $ 111,267 Fixed maturities, trading $ 3,319,660 $ 3,302,392 $ 3,302,392 Commercial mortgage and other loans 2,832,560 2,832,560 Policy loans 1,327,485 1,327,485 Short-term investments 182,437 182,437 Other invested assets 1,209,925 1,209,925 Total investments $ 21,715,990 $ 22,244,232 |
Significant Accounting Polici_2
Significant Accounting Policies and Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). Intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining deferred policy acquisition costs ("DAC") and related amortization; policyholders' account balances and reinsurance related to the fair value of embedded derivative instruments associated with the index-linked features of certain universal life and annuity products; valuation of investments including derivatives, measurement of allowance for credit losses, and the recognition of other-than-temporary impairments; future policy benefits including guarantees; reinsurance recoverables; provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal and regulatory matters. |
Reclassifications | ReclassificationsCertain amounts in prior periods have been reclassified to conform to the current period presentation. |
Investments and Investment-Related Liabilities | Fixed maturities, available-for-sale, at fair value ("AFS debt securities") includes bonds, notes and redeemable preferred stock that are carried at fair value. See Note 5 for additional information regarding the determination of fair value. The purchased cost of fixed maturities is adjusted for amortization of premiums and accretion of discounts to maturity or, if applicable, call date. AFS debt securities, where fair value is below amortized cost, are reviewed quarterly to determine whether the amortized cost basis of the security is recoverable. For mortgage-backed and asset-backed AFS debt securities, a credit impairment will be recognized in earnings as an allowance for credit losses and reported in “Realized investment gains (losses), net,” to the extent the amortized cost exceeds the net present value of projected future cash flows (the “net present value”) for the security. However, the credit impairment recorded cannot exceed the difference between the amortized cost and fair value of the respective security. The net present value used to measure a credit impairment is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the AFS debt security at the date of acquisition. Once the Company has deemed all or a portion of the amortized cost uncollectible, the allowance is removed from the balance sheet by writing down the amortized cost basis of the AFS debt security. Any amount of an AFS debt security’s change in fair value not recorded as an allowance for credit losses will be recorded in Other Comprehensive Income (loss) (“OCI”). For all other AFS debt securities, qualitative factors are first considered including, but not limited to, the extent of the decline and the reasons for the decline in value (e.g., credit events, currency or interest-rate related, including general credit spread widening), and the financial condition of the issuer. If analysis of these qualitative factors results in the security needing to be impaired, a credit impairment will be recognized and measured using the same process for mortgage-backed and asset-backed AFS debt securities. When an AFS debt security's fair value is below amortized cost and the Company has the intent to sell the AFS debt security, or it is more likely than not the Company will be required to sell the AFS debt security before its anticipated recovery, the amortized cost basis of the AFS debt security is written down to fair value and any previously recognized allowance is reversed. The write-down is reported in "Realized investment gains (losses), net." Interest income, including amortization of premium and accretion of discount, are included in “Net investment income” under the effective yield method. Prepayment premiums are also included in “Net investment income.” For high credit quality mortgage-backed and asset-backed AFS debt securities (those rated AA or above), the amortized cost and effective yield of the securities are adjusted as necessary to reflect historical prepayment experience and changes in estimated future prepayments. The adjustments to amortized cost are recorded as a charge or credit to “Net investment income” in accordance with the retrospective method. For mortgage-backed and asset-backed AFS debt securities rated below AA, the effective yield is adjusted prospectively for any changes in the estimated timing and amount of cash flows unless the investment is purchased with credit deterioration or an allowance is currently recorded for the respective security. If an investment is impaired, any changes in the estimated timing and amount of cash flows will be recorded as the credit impairment, as opposed to a yield adjustment. If the asset is purchased with credit deterioration (or previously impaired) the effective yield will be adjusted if there are favorable changes in cash flows subsequent to the allowance being reduced to zero. For mortgage-backed and asset-backed AFS debt securities, cash flow estimates consider the payment terms of the underlying assets backing a particular security, including interest rate and prepayment assumptions based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also include other assumptions regarding the underlying collateral including default rates and recoveries, which vary based on the asset type and geographic location, as well as the vintage year of the security. These assumptions can significantly impact income recognition, unrealized gains and loss recorded in OCI, and the amount of impairment recognized in earnings. The payment priority of the respective security is also considered. For all other AFS debt securities, cash flow estimates are driven by assumptions regarding probability of default and estimates regarding timing and amount of recoveries associated with a default. The Company has developed these estimates using information based on its historical experience as well as using market observable data, such as industry analyst reports and forecasts, sector credit ratings and other data relevant to the collectability of a security, such as the general payment terms of the security and the security’s position within the capital structure of the issuer. The associated unrealized gains and losses, net of tax, and the effect on DAC, deferred sales inducements ("DSI"), future policy benefits and policyholders’ account balances that would result from the realization of unrealized gains and losses, are included in “Accumulated other comprehensive income (loss)” (“AOCI”). Each of these balances is discussed in greater detail below. Fixed maturities, trading, at fair value consists of fixed maturities carried at fair value. Realized and unrealized gains and losses on these investments are reported in “Other income,” and interest and dividend income from these investments is reported in “Net investment income”. Equity securities, at fair value is comprised of common stock and mutual fund shares carried at fair value. Realized and unrealized gains and losses on these investments are reported in “Other income,” and dividend income is reported in “Net investment income” on the ex-dividend date. Policy loans represents funds loaned to policyholders up to the cash surrender value of the associated insurance policies and are carried at the unpaid principal balances due to the Company from the policyholders. Interest income on policy loans is recognized in “Net investment income” at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies. Short-term investments primarily consists of highly liquid debt instruments with a maturity of twelve months or less and greater than three months when purchased. These investments are generally carried at fair value or amortized cost that approximates fair value and include certain money market investments, funds managed similar to regulated money market funds, short-term debt securities issued by government sponsored entities and other highly liquid debt instruments. Commercial mortgage and other loans consists of commercial mortgage loans and agricultural property loans. Commercial mortgage and other loans held for investment are generally carried at unpaid principal balance, net of unamortized deferred loan origination fees and expenses and net of the current expected credit loss ("CECL") allowance. Certain off-balance sheet credit exposures (e.g., indemnification of serviced mortgage loans, and certain unfunded mortgage loan commitments where the Company cannot unconditionally cancel the commitment) are also subject to a CECL allowance. See Note 14 for additional information. Commercial mortgage and other loans acquired, including those related to the acquisition of a business, are recorded at fair value when purchased, reflecting any premiums or discounts to unpaid principal balances. Interest income, and the amortization of the related premiums or discounts, are included in “Net investment income” under the effective yield method. Prepayment fees are also included in “Net investment income.” Effective January 1, 2020, the Company adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and related ASUs, using a modified retrospective method for certain financial assets carried at amortized cost and certain off-balance sheet exposures. Adoption of these ASUs requires an entity to estimate lifetime credit losses for certain financial assets carried at amortized cost and certain off-balance sheet exposures based on relevant information about past events, current conditions, and reasonable and supportable forecasts that may affect the collectability of reported amounts. The most significant impact is that modifications made to the Company’s process for measuring credit losses for its commercial mortgage and other loans class classified as held for investment. The impact of the standard resulted in a cumulative effect adjustment to opening retained earnings in the amount of $1.8 million, primarily related to commercial mortgage and other loans. The impact of adoption was not material to the following financial statement line items: deferred policy acquisition costs; reinsurance recoverables; income taxes receivable; future policy benefits; policyholders' account balances; and other liabilities. The prospective adoption of the portions of the standard related to fixed maturities, available-for-sale resulted in no impact to opening retained earnings. The CECL allowance represents the Company’s best estimate of expected credit losses over the remaining life of the assets or off-balance sheet credit exposures. The determination of the allowance considers historical credit loss experience, current conditions, and reasonable and supportable forecasts. Prior to the adoption of ASU 2016-13, the allowance was based upon credit losses that were probable of occurring for recognized loans, not an estimate of credit losses that may occur over the remaining life of the asset. The allowance is calculated separately for commercial mortgage loans, agricultural mortgage loans, other collateralized and uncollateralized loans. For commercial mortgage and agricultural mortgage loans, the allowance is calculated using an internally developed CECL model that pools together loans that share similar risk characteristics. Similar risk characteristics used to create the pools include, but are not limited to, vintage, maturity, credit rating, and collateral type. Key inputs to the CECL model include unpaid principal balances, internal credit ratings, annual expected loss factors, average lives of the loans adjusted for prepayment considerations, current and historical interest rate assumptions, and other factors influencing the Company’s view of the current stage of the economic cycle and future economic conditions. Subjective considerations include a review of whether historical loss experience is representative of current market conditions and the Company’s view of the credit cycle. Model assumptions and factors are reviewed and updated as appropriate. Information about certain key inputs is detailed below. Key factors in determining the internal credit ratings for commercial mortgage and agricultural mortgage loans include loan-to-value and debt-service-coverage ratios. Other factors include amortization, loan term, and estimated market value growth rate and volatility for the property type and region. The loan-to-value ratio compares the carrying amount of the loan to the fair value of the underlying property or properties collateralizing the loan, and is commonly expressed as a percentage. Loan-to-value ratios greater than 100% indicate that the carrying amount of the loan exceeds the collateral value. A loan-to-value ratio less than 100% indicates an excess of collateral value over the carrying amount of the loan. The debt service coverage ratio is a property’s net operating income as a percentage of its debt service payments. Debt service coverage ratios less than 1.0 indicates that property operations do not generate enough income to cover the loan’s current debt payments. A debt service coverage ratio greater than 1.0 indicates an excess of net operating income over the debt service payments. The values utilized in calculating these ratios are developed as part of the Company’s periodic review of the commercial mortgage loan and agricultural property loan portfolios, which includes an internal appraisal of the underlying collateral value. The Company’s periodic review also includes a quality re-rating process, whereby the internal quality rating originally assigned at underwriting is updated based on current loan, property and market information using a proprietary quality rating system. See Note 3 for additional information related to the loan-to-value ratios and debt service coverage ratios related to the Company’s commercial mortgage and agricultural loan portfolios. Annual expected loss rates are based on historical default and loss experience factors. Using average lives, the annual expected loss rates are converted into life-of-loan loss expectations. When individual loans no longer have the credit risk characteristics of the commercial or agricultural mortgage loan pools, they are removed from the pools and are evaluated individually for an allowance. The allowance is determined based on the outstanding loan balance less the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. The CECL allowance on commercial mortgage and other loans can increase or decrease from period to period based on the factors noted above. The change in allowance is reported in “Realized investment gains (losses), net.” As it relates to unfunded commitments that are in scope of this guidance, the CECL allowance is reported in “Other liabilities,” and the change in the allowance is reported in “Realized investment gains (losses), net.” The CECL allowance for other collateralized and uncollateralized loans (e.g., corporate loans) carried at amortized cost is determined based on probability of default and loss given default assumptions by sector, credit quality and average lives of the loans. Additions to or releases of the allowance are reported in “Realized investment gains (losses), net.” Once the Company has deemed a portion of the amortized cost to be uncollectible, the uncollectible portion of allowance is removed from the balance sheet by writing down the amortized cost basis of the loan. The carrying amount of the loan is not adjusted for subsequent recoveries in value. Interest received on loans that are past due is either applied against the principal or reported as net investment income based on the Company’s assessment as to the collectability of the principal. The Company defines “past due” as principal or interest not collected at least 30 days past the scheduled contractual due date. See Note 3 for additional information about the Company’s past due loans. The Company discontinues accruing interest on loans after the loans become 90 days delinquent as to principal or interest payments, or earlier when the Company has doubts about collectability. When the Company discontinues accruing interest on a loan, any accrued but uncollectible interest on the loan and other loans backed by the same collateral, if any, is charged against interest income in the same period. Generally, a loan is restored to accrual status only after all delinquent interest and principal are brought current and, in the case of loans where the payment of interest has been interrupted for a substantial period, or the loan has been modified, a regular payment performance has been established. Commercial mortgage and other loans are occasionally restructured in a troubled debt restructuring (“TDR”). These restructurings generally include one or more of the following: full or partial payoffs outside of the original contract terms; changes to interest rates; extensions of maturity; or additions or modifications to covenants. Additionally, the Company may accept assets in full or partial satisfaction of the debt as part of a TDR. When restructurings occur, they are evaluated individually to determine whether the restructuring or modification constitutes a TDR as defined by authoritative accounting guidance. If the borrower is experiencing financial difficulty and the Company has granted a concession, the restructuring, including those that involve a partial payoff or the receipt of assets in full satisfaction of the debt is deemed to be a TDR. When there is a reasonable expectation that the Company will execute a TDR, all effects of the potential restructuring are considered for the estimation of the CECL allowance. When a loan is modified in a TDR, the CECL allowance of the loan is remeasured using the modified terms and the loan’s original effective yield, and the allowance is adjusted accordingly. The loan will be evaluated to determine whether the loan no longer has similar credit risk characteristics of the commercial or agricultural mortgage loan pools and need to be evaluated for an allowance on an individual basis. Subsequent to the modification, income is recognized prospectively based on the modified terms of the loan. In a TDR where the Company receives assets in full satisfaction of the debt, any CECL allowance is reversed and a direct write-down of the loan is recorded for the amount of the allowance, and any additional loss, net of recoveries, or any gain is recorded for the difference between the fair value of the assets received and the recorded investment in the loan. When assets are received in partial settlement, the same process is followed, and the remaining loan is evaluated prospectively for credit impairment based on the CECL allowance process noted above. Other invested assets consist of the Company’s non-coupon investments in limited partnerships and limited liability companies ("LPs/LLCs"), other than operating joint ventures, as well as derivative assets. LPs/LLCs interests are accounted for using either the equity method of accounting, or at fair value. The Company’s income from investments in LPs/LLCs accounted for using the equity method, other than the Company’s investments in operating joint ventures, is included in “Net investment income”. The carrying value of these investments is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. In applying the equity method (including assessment for OTTI), the Company uses financial information provided by the investee, generally on a one to three-month lag. For the investments reported at fair value with changes in fair value reported in current earnings, the associated realized and unrealized gains and losses are reported in “Other income”. |
Cash and cash equivalents | Cash and cash equivalents includes cash on hand, amounts due from banks, certain money market investments, funds managed similar to regulated money market funds, other debt instruments with maturities of three months or less when purchased, other than cash equivalents that are included in "Fixed maturities, available-for-sale, at fair value,” and receivables related to securities purchased under agreements to resell (see also "Securities sold under agreements to purchase" below.) The Company also engages in overnight borrowing and lending of funds with Prudential Financial and affiliates which are considered cash and cash equivalents. These assets are generally carried at fair value or amortized cost which approximates fair value. |
Deferred policy acquisition costs | Deferred policy acquisition costs represent costs directly related to the successful acquisition of new and renewal insurance and annuity business that have been deferred to the extent such costs are deemed recoverable from future profits. Such DAC primarily includes commissions, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully acquired contracts. In each reporting period, capitalized DAC is amortized to “Amortization of DAC," net of the accrual of imputed interest on DAC balances. DAC is subject to periodic recoverability testing. DAC, for applicable products, is adjusted for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. DAC related to universal and variable life products and fixed and variable deferred annuity products are generally deferred and amortized over the expected life of the contracts in proportion to gross profits arising principally from investment margins, mortality and expense margins, and surrender charges, based on historical and anticipated future experience, which is updated periodically. The Company uses a reversion to the mean approach for equities to derive future equity return assumptions; however, if the projected equity return calculated using this approach is greater than the maximum equity return assumption, the maximum equity return is utilized and if the projected equity return is negative, the return is floored at 0%. Gross profits also include impacts from the embedded derivatives associated with certain of the optional living benefit features of variable annuity contracts, and index-linked crediting features of certain universal life and annuity contracts and related hedging activities. In calculating gross profits, profits and losses related to contracts issued by the Company that are reported in affiliated legal entities other than the Company as a result of, for example, reinsurance agreements with those affiliated entities are also included. The Company is an indirect subsidiary of Prudential Financial, a United States Securities and Exchange Commission (the "SEC") registrant, and has extensive transactions and relationships with other subsidiaries of Prudential Financial, including reinsurance agreements, as described in Note 9. Incorporating all product-related profits and losses in gross profits, including those that are reported in affiliated legal entities, produces a DAC amortization pattern representative of the total economics of the products. Total gross profits include both actual gross profits and estimates of gross profits for future periods. The Company regularly evaluates and adjusts DAC balances with a corresponding charge or credit to current period earnings, representing a cumulative adjustment to all prior periods’ amortization, for the impact of actual gross profits and changes in the Company's projections of estimated future gross profits. Adjustments to DAC balances result from: (i) the annual review of assumptions that reflect the comprehensive review of the assumptions used in estimating gross profits for future periods; (ii) quarterly adjustments for current period experience (also referred to as “experience true-up” adjustments) that reflect the impact of differences between actual gross profits for a given period and the previously estimated expected gross profits for that period; and (iii) quarterly adjustments for market performance (also referred to as “experience unlocking”) that reflect the impact of changes to the Company's estimate of total gross profits to reflect actual fund performance and market conditions. |
Accrued investment income | Accrued investment income primarily includes accruals of interest and dividend income from investments that have been earned but not yet received. |
Reinsurance recoverables | Reinsurance recoverables include corresponding receivables associated with reinsurance arrangements with affiliates and third party reinsurers, and are reported on the Consolidated Statements of Financial Position net of the CECL allowance. Reinsurance recoverables also include assumed modified coinsurance arrangements which generally reflect the value of the invested assets retained by the cedant and the associated asset returns. Modified coinsurance recoverables contain an embedded derivative (bifurcated and accounted for separately from the host contract) that is presented together with the derivative embedded in the modified coinsurance payables as one compound derivative. The CECL allowance considers the credit quality of the reinsurance counterparty and is generally determined based on the probability of default and loss given default assumptions, after considering any applicable collateral arrangements. The CECL allowance does not apply to reinsurance recoverables with affiliated counterparties under common control. Additions to or releases of the allowance are reported in “Policyholders’ benefits.” Prior to the adoption of this standard, an allowance for credit losses for reinsurance recoverables was established only when it was deemed probable that a reinsurer may fail to make payments to us in a timely manner. For additional information about these arrangements see Note 9. |
Income taxes receivable | Income taxes receivable primarily represents the net deferred tax asset and the Company’s estimated taxes receivable for the current year and open audit years. The Company is a member of the federal income tax return of Prudential Financial and primarily files separate company state and local tax returns. Pursuant to the tax allocation arrangement with Prudential Financial, total federal income tax expense is determined on a separate company basis. Members record tax benefits to the extent tax losses or tax credits are recognized in the consolidated federal tax provision. Items required by tax regulations to be included in the tax return may differ from the items reflected in the financial statements. As a result, the effective tax rate reflected in the financial statements may be different than the actual rate applied on the tax return. Some of these differences are permanent such as expenses that are not deductible in the Company’s tax return, and some differences are temporary, reversing over time, such as valuation of insurance reserves. Temporary differences create deferred tax assets and liabilities. Deferred tax assets generally represent items that can be used as a tax deduction or credit in future years for which the Company has already recorded the tax benefit in the Company’s Consolidated Statements of Operations. Deferred tax liabilities generally represent tax expense recognized in the Company’s financial statements for which payment has been deferred, or expenditures for which the Company has already taken a deduction in the Company’s tax return but have not yet been recognized in the Company’s financial statements. Deferred income taxes are recognized, based on enacted rates, when assets and liabilities have different values for financial statement and tax reporting purposes. The application of U.S. GAAP requires the Company to evaluate the recoverability of the Company’s deferred tax assets and establish a valuation allowance if necessary to reduce the Company’s deferred tax assets to an amount that is more likely than not expected to be realized. Considerable judgment is required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance. See Note 10 for a discussion of factors considered when evaluating the need for a valuation allowance. U.S. GAAP prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that a company has taken or expects to take on tax returns. The application of this guidance is a two-step process. First, the Company determines whether it is more likely than not, based on the technical merits, that the tax position will be sustained upon examination. If a tax position does not meet the more likely than not recognition threshold, the benefit of that position is not recognized in the financial statements. The second step is measurement. The Company measures the tax position as the largest amount of benefit that is greater than 50 percent likely to be realized upon ultimate resolution with a taxing authority that has full knowledge of all relevant information. This measurement considers the amounts and probabilities of the outcomes that could be realized upon ultimate settlement using the facts, circumstances, and information available at the reporting date. The Company’s liability for income taxes includes a liability for unrecognized tax benefits, interest and penalties which relate to tax years still subject to review by the Internal Revenue Service ("IRS") or other taxing jurisdictions. Audit periods remain open for review until the statute of limitations has passed. Generally, for tax years which produce net operating losses, capital losses or tax credit carryforwards (“tax attributes”), the statute of limitations does not close, to the extent of these tax attributes, until the expiration of the statute of limitations for the tax year in which they are fully utilized. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the liability for income taxes. The Company classifies all interest and penalties related to tax uncertainties as income tax expense. See Note 10 for additional information regarding income taxes. |
Deferred sales inducements | Deferred sales inducements represents various types of sales inducements to contractholders related to fixed and variable deferred annuity contracts. The Company defers sales inducements and amortizes them over the expected life of the policy using the same methodology and assumptions used to amortize DAC. Sales inducement balances are subject to periodic recoverability testing. The Company records amortization of DSI in “Interest credited to policyholders’ account balances.” DSI for applicable products is adjusted for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. See Note 9 for additional information regarding sales inducements. |
Other assets and Other liabilities | Other assets consists primarily of deposit assets related to a reinsurance agreement entered into with a third-party reinsurer during 2021 using deposit accounting under U.S. GAAP, which as of December 31, 2021 was $497.0 million. Included in these deposit assets are amounts representing fair value of embedded derivative instruments associated with the index-linked features of certain annuity products. For additional information regarding the valuation of these embedded derivatives, see Note 5. Also included are premiums due, deferred loss on reinsurance with affiliates, receivables resulting from sales of securities that had not yet settled at the balance sheet date, prepaid tax expenses, and the Company’s investments in operating joint ventures. Investments in operating joint ventures are generally accounted for under the equity method. The carrying value of these investments is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. Other liabilities consists primarily of reinsurance payables associated with reinsurance arrangements with affiliates that correspond to reinsurance receivables included above in “Reinsurance recoverables”. For additional information about these arrangements see Note 9. Also included is a funds withheld liability for assets retained under a reinsurance agreement that corresponds to the deposit assets above in "Other assets". The funds withheld liability as of December 31, 2021 was $419.2 million. Additionally other liabilities includes accrued expenses, technical overdrafts, deferred gain on reinsurance, and payables resulting from purchases of securities that had not yet settled at the balance sheet date. Other liabilities may also include derivative instruments for which fair values are determined as described below under “Derivative Financial Instruments”. |
Separate account assets and Separate account liabilities | Separate account assets represents segregated funds that are invested for certain contractholders and other customers. The assets consist primarily of equity securities, fixed maturities, and real estate-related investments and are reported at fair value. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company. Investment risks associated with market value changes are borne by the contractholders, except to the extent of minimum guarantees made by the Company with respect to certain accounts. The investment income and realized investment gains or losses from separate account assets generally accrue to the contractholders and are not included in the Company’s consolidated results of operations. Mortality, policy administration and surrender charges assessed against the accounts are included in “Policy charges and fee income”. Asset administration fees charged to the accounts are included in “Asset administration fees”. See Note 8 for additional information regarding separate account arrangements with contractual guarantees. See also “Separate account liabilities ” below. Separate account liabilities primarily represents the contractholders’ account balances in separate account assets and to a lesser extent borrowings of the separate account, and will be equal and offsetting to total separate account assets. See also “ Separate account assets” above. |
Future policy benefits | Future policy benefits represents liabilities related to certain long-duration life and annuity contracts, which are discussed more fully in Note 7. These liabilities represent reserves for the guaranteed minimum death and optional living benefit features on our variable annuity products and no-lapse guarantees for our variable and universal life products. The optional living benefits are primarily accounted for as embedded derivatives, with fair values calculated as the present value of future expected benefit payments to customers less the present value of assessed rider fees attributable to the embedded derivative feature. For additional information regarding the valuation of these optional living benefit features, see Note 5. The Company’s liability for future policy benefits also includes reserves based on the present value of estimated future payments to or on behalf of policyholders related to contracts that have fixed and guaranteed terms, where the timing and amount of payment depends on policyholder mortality and maintenance expenses less the present value of future net premiums. Expected mortality is generally based on Company experience, industry data, and/or other factors. Interest rate assumptions are based on factors such as market conditions and expected investment returns. Although mortality and interest rate assumptions are “locked-in” upon the issuance of new insurance or annuity business with fixed and guaranteed terms, significant changes in experience or assumptions may require the Company to provide for expected future losses on a product by recognizing a premium deficiency. A premium deficiency exists when the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for expected future policy benefits and expenses. If a premium deficiency is recognized, the assumptions without a provision for the risk of adverse deviation as of the premium deficiency test date are locked-in and used in subsequent valuations. The net reserves continue to be subject to premium deficiency testing. Any adjustments to future policy benefit reserves related to net unrealized gains on securities classified as available-for-sale are included in AOCI. See Note 7 for additional information regarding future policy benefits. |
Policyholders' account balances | Policyholders’ account balances represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. This liability is primarily associated with the accumulated account deposits, plus interest credited, less policyholder withdrawals and other charges assessed against the account balance, as applicable. These policyholders’ account balances also include provision for benefits under non-life contingent payout annuities. See Note 7 for additional information regarding policyholders’ account balances. Policyholders’ account balances also include amounts representing the fair value of embedded derivative instruments associated with the index-linked features of certain annuity and universal life products. For additional information regarding the valuation of these embedded derivatives, see Note 5. |
Cash collateral for loaned securities | Cash collateral for loaned securities represents liabilities to return cash proceeds from security lending transactions. Securities lending transactions are used primarily to earn spread income or to facilitate trading activity. As part of securities lending transactions, the Company transfers U.S. and foreign debt and equity securities, as well as U.S. government and government agency securities, and receives cash as collateral. Cash proceeds from securities lending transactions are primarily used to earn spread income, and are typically invested in cash equivalents, short-term investments or fixed maturities. Securities lending transactions are treated as financing arrangements and are recorded at the amount of cash received. The Company obtains collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. The |
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase represents liabilities associated with securities repurchase agreements that are used primarily to earn spread income. As part of securities repurchase agreements, the Company transfers U.S. government and government agency securities to a third-party, and receives cash as collateral. For securities repurchase agreements, the cash received is typically invested in cash equivalents, short-term investments or fixed maturities. Receivables associated with securities purchased under agreements to resell are generally reflected as cash equivalents. As part of securities resale agreements, the Company invests cash and receives as collateral U.S. government securities or other debt securities. Securities repurchase and resale agreements that satisfy certain criteria are treated as secured borrowing or secured lending arrangements. These agreements are carried at the amounts at which the securities will be subsequently resold or reacquired, as specified in the respective transactions. For securities purchased under agreements to resell, the Company’s policy is to take possession or control of the securities either directly or through a third-party custodian. These securities are valued daily and additional securities or cash collateral is received, or returned, when appropriate to protect against credit exposure. Securities to be resold are the same, or substantially the same, as the securities received. The majority of these transactions are with large brokerage firms and large banks. For securities sold under agreements to repurchase, the market value of the securities to be repurchased is monitored, and additional collateral is obtained where appropriate, to protect against credit exposure. The Company obtains collateral in an amount at least equal to 95% of the fair value of the securities sold. Securities to be repurchased are the same, or substantially the same, as those sold. The majority of these transactions are with highly rated money market funds. Income and expenses related to these transactions executed within the insurance companies used to earn spread income are reported as “Net investment income.” |
Short-term and long-term debt | Short-term and long-term debt liabilities are primarily carried at an amount equal to unpaid principal balance, net of unamortized discount or premium and debt issue costs. Original-issue discount or premium and debt-issue costs are recognized as a component of interest expense over the period the debt is expected to be outstanding, using the interest method of amortization. Interest expense is generally presented within “General, administrative and other expenses” in the Company’s Consolidated Statements of Operations. Short-term debt is debt coming due in the next twelve months, including that portion of debt otherwise classified as long-term. The short-term debt caption may exclude short-term debt items for which the Company has the intent and ability to refinance on a long-term basis in the near term. See Note 13 for additional information regarding short-term and long-term debt. |
Commitments and contingent liabilities | Commitments and contingent liabilities are accrued if it is probable that a liability has been incurred and an amount is reasonably estimable. Management evaluates whether there are incremental legal or other costs directly associated with the ultimate resolution of the matter that are reasonably estimable and, if so, they are included in the accrual. These accruals are generally reported in “Other liabilities”. |
Insurance Revenue and Expense Recognition | Insurance Revenue and Expense Recognition Premiums from individual life products, other than universal and variable life contracts, are recognized when due. Benefits are recorded as an expense when they are incurred. A liability for future policy benefits is recorded when premiums are recognized using the net level premium valuation methodology. Premiums from single premium immediate annuities with life contingencies are recognized when due. When premiums are due over a significantly shorter period than the period over which benefits are provided, any gross premium in excess of the net premium is generally deferred and recognized into revenue based on expected future benefit payments. Benefits are recorded as an expense when they are incurred. A liability for future policy benefits is recorded when premiums are recognized using the net level premium methodology. Revenues for variable deferred annuity contracts consist of charges against contractholder account values or separate accounts for mortality and expense risks, administration fees, surrender charges and an annual maintenance fee per contract. Revenues for mortality and expense risk charges and administration fees are recognized as assessed against the contractholder. Surrender charge revenue is recognized when the surrender charge is assessed against the contractholder at the time of surrender. Liabilities for the variable investment options on annuity contracts represent the account value of the contracts and are included in “Separate account liabilities”. Revenues for variable immediate annuity and supplementary contracts with life contingencies consist of certain charges against contractholder account values including mortality and expense risks and administration fees. These charges and fees are recognized as revenue when assessed against the contractholder. Liabilities for variable immediate annuity contracts represent the account value of the contracts and are included in “Separate account liabilities”. Revenues for variable life insurance contracts consist of charges against contractholder account values or separate accounts for expense charges, administration fees, cost of insurance charges and surrender charges. Certain contracts also include charges against premium to pay state premium taxes. All of these charges are recognized as revenue when assessed against the contractholder. Liabilities for variable life insurance contracts represent the account value of the contracts and are included in “Separate account liabilities”. Certain individual annuity contracts provide the contractholder a guarantee that the benefit received upon death or annuitization will be no less than a minimum prescribed amount. These benefits are accounted for as insurance contracts. The Company also provides contracts with certain living benefits which are considered embedded derivatives. See Note 5 for information regarding the valuation of these embedded derivatives and Note 8 for additional information regarding these contracts. Amounts received as payment for universal or variable individual life contracts, deferred fixed or variable annuities and other contracts without life contingencies are reported as deposits to “Policyholders’ account balances” and/or “Separate account liabilities.” Revenues from these contracts are reflected in “Policy charges and fee income” consisting primarily of fees assessed during the period against the policyholders’ account balances for mortality and other benefit charges, policy administration charges and surrender charges. In addition to fees, the Company earns investment income from the investment of deposits in the Company’s general account portfolio. Fees assessed that represent compensation to the Company for services to be provided in future periods and certain other fees are generally deferred and amortized into revenue over the life of the related contracts in proportion to estimated gross profits. Benefits and expenses for these products include claims in excess of related account balances, expenses of contract administration, interest credited to policyholders’ account balances and amortization of DAC and DSI. Policyholders’ account balances also include amounts representing the fair value of embedded derivative instruments associated with the index-linked features of certain annuity and universal life products. For additional information regarding the valuation of these embedded derivatives, see Note 5. |
Asset administration fees | Asset administration fees primarily include asset administration fee income received on contractholders’ account balances invested in The Prudential Series Funds, which are a portfolio of mutual fund investments related to the Company’s separate account products. Also, the Company receives fee income calculated on contractholder separate account balances invested in the Advanced Series Trust ("AST") (see Note 13). In addition, the Company receives fees from contractholders’ account |
Other income | Other income includes realized and unrealized gains or losses from investments reported as “Fixed maturities, trading, at fair value”, “Equity securities, at fair value,” and “Other invested assets” that are measured at fair value. Realized investment gains (losses), net includes realized gains or losses from sales and maturities of investments, changes to the allowance for credit losses, other impairments, fair value changes on mortgage loans where the fair value option has been elected, releases of Other Comprehensive Income and derivative gains or losses. The derivative gains or losses include the impact of maturities, terminations and changes in fair value of the derivative instruments, including embedded derivatives, and other hedging instruments. |
Derivative Financial Instruments | Derivative Financial Instruments Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, values of securities or commodities, credit spreads, market volatility, expected returns, and liquidity. Values can also be affected by changes in estimates and assumptions, including those related to counterparty behavior and non-performance risk ("NPR") used in valuation models. Derivative financial instruments generally used by the Company include swaps, futures, forwards and options and may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties, while others are bilateral contracts between two counterparties. Derivative positions are carried at fair value, generally by obtaining quoted market prices or through the use of valuation models. Derivatives are used to manage the interest rate and currency characteristics of assets or liabilities. Additionally, derivatives may be used to reduce exposure to interest rate, credit, foreign currency and equity risks associated with assets held or expected to be purchased or sold, and liabilities incurred or expected to be incurred. As discussed in detail below and in Note 4, all realized and unrealized changes in fair value of derivatives are recorded in current earnings, with the exception of cash flow hedges. Cash flows from derivatives are reported in the operating, investing or financing activities sections in the Consolidated Statements of Cash Flows based on the nature and purpose of the derivative. Derivatives are recorded either as assets, within “Other invested assets”, or as liabilities, within “Payables to parent and affiliates”, except for embedded derivatives which are recorded with the associated host contract. The Company nets the fair value of all derivative financial instruments with counterparties for which a master netting arrangement has been executed. The Company designates derivatives as either (1) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow” hedge); or (2) a derivative that does not qualify for hedge accounting. To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated risk of the hedged item. Effectiveness of the hedge is formally assessed at inception and throughout the life of the hedging relationship. The Company formally documents at inception all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives designated as cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. When a derivative is designated as a cash flow hedge and is determined to be highly effective, changes in its fair value are recorded in AOCI until earnings are affected by the variability of cash flows being hedged (e.g., when periodic settlements on a variable-rate asset or liability are recorded in earnings). At that time, the related portion of deferred gains or losses on the derivative instrument is reclassified and reported in the Consolidated Statements of Operations line item associated with the hedged item. If it is determined that a derivative no longer qualifies as an effective cash flow hedge or management removes the hedge designation, the derivative will continue to be carried on the balance sheet at its fair value, with changes in fair value recognized currently in “Realized investment gains (losses), net”. The component of AOCI related to discontinued cash flow hedges is reclassified to the Consolidated Statements of Operations line associated with the hedged cash flows consistent with the earnings impact of the original hedged cash flows. When hedge accounting is discontinued because the hedged item no longer meets the definition of a firm commitment, or because it is probable that the forecasted transaction will not occur by the end of the specified time period, the derivative will continue to be carried on the balance sheet at its fair value, with changes in fair value recognized currently in “Realized investment gains (losses), net”. Any asset or liability that was recorded pursuant to recognition of the firm commitment is removed from the balance sheet and recognized currently in “Realized investment gains (losses), net”. Gains and losses that were in AOCI pursuant to the hedge of a forecasted transaction are recognized immediately in “Realized investment gains (losses), net”. If a derivative does not qualify for hedge accounting, all changes in its fair value, including net receipts and payments, are included in “Realized investment gains (losses), net” without considering changes in the fair value of the economically associated assets or liabilities. The Company is a party to financial instruments that contain derivative instruments that are “embedded” in the financial instruments. At inception, the Company assesses whether the economic characteristics of the embedded instrument are clearly and closely related to the economic characteristics of the remaining component of the financial instrument (i.e., the host contract) and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When it is determined that (1) the embedded instrument possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and (2) a separate instrument with the same terms would qualify as a derivative instrument, the embedded instrument qualifies as an embedded derivative that is separated from the host contract, carried at fair value, and changes in its fair value are included in “Realized investment gains (losses), net.” For certain financial instruments that contain an embedded derivative that otherwise would need to be bifurcated and reported at fair value, the Company may elect to carry the entire instrument at fair value and report it within "Other invested assets", or as liabilities, within “Payables to parent and affiliates” or "Other liabilities". |
Future Adoption Of New Accounting Pronouncements | ASU issued but not yet adopted as of December 31, 2021 — ASU 2018-12 ASU2018-12 , Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, was issued by the FASB on August 15, 2018, and was amended by ASU 2019-09, Financial Services - Insurance (Topic 944): Effective Date , issued in October 2019, and ASU 2020-11, Financial Services-Insurance (Topic 944): Effective Date and Early Application , issued in November 2020. The Company will adopt ASU 2018-12 effective January 1, 2023 using the modified retrospective transition method where permitted, and apply the guidance as of January 1, 2021 (and record transition adjustments as of January 1, 2021) in the 2023 financial statements. ASU 2018-12 will impact, at least to some extent, the accounting and disclosure requirements for all long-duration insurance and investment contracts issued by the Company. The Company expects the standard to have a significant financial impact on the Consolidated Financial Statements and will significantly enhance disclosures. In addition to the significant impacts to the balance sheet upon adoption, the Company also expects an impact to the pattern of earnings emergence following the transition date. Outlined below are four key areas of change, although there are other less significant policy changes not noted below. ASU 2018-12 Amended Topic Description Method of adoption Effect on the financial statements or other significant matters Cash flow assumptions used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products Requires an entity to review, and if necessary, update the cash flow assumptions used to measure the liability for future policy benefits, for both changes in future assumptions and actual experience, at least annually using a retrospective update method with a cumulative catch-up adjustment recorded in a separate line item in the Consolidated Statements of Operations. An entity may choose one of two adoption methods for the liability for future policy benefits: (1) a modified retrospective transition method whereby the entity may choose to apply the amendments to contracts in force as of the beginning of the prior year (if early adoption is elected) or as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in Accumulated other comprehensive income (loss) ("AOCI") or (2) a full retrospective transition method. The Company will adopt this guidance effective January 1, 2023 using the modified retrospective transition method. The impacts of electing such method are currently under assessment. Discount rate assumption used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products Requires discount rate assumptions to be based on an upper-medium grade fixed income instrument yield, which will be updated each quarter with the impact recorded through OCI. An entity shall maximize the use of relevant observable information and minimize the use of unobservable information in determining the discount rate assumptions. As noted above, an entity may choose either a modified retrospective transition method or full retrospective transition method for the liability for future policy benefits. Under either method, for balance sheet remeasurement purposes, the liability for future policy benefits will be remeasured using current discount rates as of either the beginning of the prior year (if early adoption is elected) or the beginning of the earliest period presented with the impact recorded as a cumulative effect adjustment to AOCI. As noted above, the Company will adopt the guidance for the liability for future policy benefits effective January 1, 2023 using the modified retrospective transition method. Upon adoption, there will be an adjustment to AOCI as a result of remeasuring in force contract liabilities using current upper-medium grade fixed income instrument yields. The adjustment upon adoption will largely reflect the difference between discount rates locked-in at contract inception versus current discount rates at transition. The magnitude of such adjustment is currently being assessed. Amortization of DAC and other balances Requires DAC and other balances, such as unearned revenue reserves and DSI, to be amortized on a constant level basis over the expected term of the related contract, independent of expected profitability. An entity may apply one of two adoption methods: (1) a modified retrospective transition method whereby the entity may choose to apply the amendments to contracts in force as of the beginning of the prior year (if early adoption is elected) or as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or (2) if an entity chooses a full retrospective transition method for its liability for future policy benefits, as described above, it is required to also use a full retrospective transition method for DAC and other balances. The Company will adopt this guidance effective January 1, 2023 using the modified retrospective transition method. Under the modified retrospective transition method, the Company would not expect a significant impact to the balance sheet, other than the impact of the removal of any related amounts in AOCI. Market Risk Benefits ("MRB") Requires an entity to measure all market risk benefits (e.g., living benefit and death benefit guarantees associated with variable annuities) at fair value, and record MRB assets and liabilities separately on the Statements of Financial Position. Changes in fair value of market risk benefits are recorded in net income, except for the portion of the change in MRB liabilities attributable to changes in an entity’s non-performance risk ("NPR"), which is recognized in OCI. An entity shall adopt the guidance for market risk benefits using the retrospective transition method, which includes a cumulative-effect adjustment on the balance sheet as of either the beginning of prior year (if early adoption is elected) or the beginning of the earliest period presented. An entity shall maximize the use of relevant observable information and minimize the use of unobservable information in determining the balance of the market risk benefits upon adoption. The Company will adopt this guidance effective January 1, 2023 using the retrospective transition method. Upon adoption, the Company expects an impact to retained earnings for the difference between the fair value and carrying value of benefits not currently measured at fair value (e.g., guaranteed minimum death benefits on variable annuities) and an impact from reclassifying the cumulative effect of changes in NPR from retained earnings to AOCI. The magnitude of such adjustments is currently being assessed. |
Modifications related to COVID-19 | Modifications related to COVID-19 We assess modifications to certain fixed income instruments on a case-by-case basis to evaluate whether a TDR has occurred. In response to the COVID-19 pandemic, the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") provides a temporary suspension of TDR accounting for certain COVID-19 related modifications where the investment was not more than 30 days past due as of December 31, 2019 (“TDR Relief”). The TDR Relief was set to expire on December 31, 2020, but was extended through December 31, 2021 by the Consolidated Appropriations Act of 2021. The Company elected to apply the TDR Relief beginning in the first quarter of 2021. The TDR Relief does not apply to modifications completed 60 days after the national emergency related to COVID-19 ends, or December 31, 2021, whichever comes earlier. As of December 31, 2021, any such modifications did not have a material impact on the Company's results of operations. |
Business and Basis of Present_2
Business and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Effects of Reinsurance | The financial statement impacts of this transaction are as follows: Interim Consolidated Statement of Financial Position Day 1 Impact of 2021 Variable Annuities Recapture Impacts of Recapture (in millions) ASSETS Total investments(1)(2) $ 8,324 Cash and cash equivalents 414 Deferred policy acquisition costs 3,286 Accrued investment income 42 Reinsurance recoverables (12,307) Deferred sales inducements 388 Receivable from parent and affiliates 0 Income taxes receivable 765 Other assets (84) Separate account assets 0 TOTAL ASSETS $ 828 LIABILITIES AND EQUITY LIABILITIES Future policy benefits $ 0 Policyholders’ account balances 0 Cash collateral for loaned securities 0 Payables to parent and affiliates (106) Other liabilities 0 Separate account liabilities 0 Total liabilities (106) EQUITY Common stock 0 Additional paid-in capital(3) 3,786 Retained earnings (2,797) Accumulated other comprehensive income (55) Total equity 934 TOTAL LIABILITIES AND EQUITY $ 828 Significant non-cash transactions (1) The increase in total investments includes non-cash activities of $8.3 billion related to the recapture transaction. (2) The Company incurred a loss related to ceding commissions of $2 billion. (3) The increase in Additional paid-in capital includes non-cash activities of $3.4 billion in invested assets related to capital contributions from Prudential Insurance. Interim Consolidated Statement of Operations and Comprehensive Income (Loss) Day 1 Impact of 2021 Variable Annuities Recapture Impacts of Recapture (in millions) REVENUES Other income (loss) $ (1) Realized investment gains (losses), net (4,953) TOTAL REVENUES (4,954) BENEFITS AND EXPENSES Policyholders’ benefits 257 Interest credited to policyholders’ account balances (399) General, administrative and other expenses (1,272) TOTAL BENEFITS AND EXPENSES (1,414) INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES (3,540) Income tax expense (benefit) (743) NET INCOME (LOSS) $ (2,797) Affiliated Asset Transfers Affiliate Period Transaction Security Type Fair Value Book Value APIC/ Retained Earnings Increase/(Decrease) Realized Investment Gain/(Loss), Net Derivative Gain/(Loss) (in millions) PALAC July 1, 2021 Purchase Derivatives, Fixed Maturities, Equity Securities, Commercial Mortgages and JV/LP Investments $ 4,908 $ 4,908 $ 0 $ 0 $ 0 Prudential Insurance July 1, 2021 Contributed Capital Fixed Maturities $ 3,420 $ 3,420 $ 3,420 $ 0 $ 0 Reinsurance amounts, included in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss) for the years ended December 31, were as follows: 2021 2020 2019 (in thousands) Premiums: Direct $ 1,909,878 $ 1,923,708 $ 1,882,584 Assumed(1) 162 184 206 Ceded(2) (1,706,364) (1,831,716) (1,854,246) Net premiums 203,676 92,176 28,544 Policy charges and fee income: Direct 3,647,883 3,491,735 3,725,113 Assumed 582,003 587,466 519,265 Ceded(3) (2,700,129) (3,454,881) (3,700,222) Net policy charges and fee income 1,529,757 624,320 544,156 Net investment income: Direct 555,404 372,822 398,762 Assumed 1,049 1,579 1,631 Ceded (6,218) (7,051) (6,596) Net investment income 550,235 367,350 393,797 Asset administration fees: Direct 403,359 360,438 355,118 Assumed 0 0 0 Ceded (201,182) (341,300) (339,062) Net asset administration fees 202,177 19,138 16,056 Other income: Direct 227,035 78,445 83,891 Assumed(4) (66) (1) (293) Ceded 35,790 165 (59) Amortization of reinsurance income 4,449 4,647 21 Net other income 267,208 83,256 83,560 Realized investment gains (losses), net: Direct 7,656,388 (3,593,799) (1,912,241) Assumed 18,171 0 0 Ceded(5) (12,969,965) 3,530,823 1,795,492 Realized investment gains (losses), net (5,295,406) (62,976) (116,749) Policyholders’ benefits (including change in reserves): Direct 3,611,402 3,584,011 3,352,159 Assumed(6) 849,599 1,055,277 885,542 Ceded(7) (3,805,091) (4,341,139) (4,084,627) Net policyholders’ benefits (including change in reserves) 655,910 298,149 153,074 Interest credited to policyholders’ account balances: Direct 563,821 536,886 470,551 Assumed 138,202 136,153 135,355 Ceded (816,608) (439,664) (418,677) Net interest credited to policyholders’ account balances (114,585) 233,375 187,229 Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization (2,265,350) (1,589,113) (1,772,111) (1) Includes $0.2 million of unaffiliated activity for the year ended December 31, 2021 and $0.2 million for both years ended December 31, 2020 and 2019. (2) Includes $(19.8) million, $(10.5) million and $(0.6) million of unaffiliated activity for the years ended December 31, 2021, 2020 and 2019, respectively. (3) Includes $(65) million, $(54) million and $(34) million of unaffiliated activity for the years ended December 31, 2021, 2020 and 2019, respectively. (4) Includes $0.0 million, $0.0 million and $(0.3) million of unaffiliated activity for the years ended December 31, 2021, 2020 and 2019, respectively. (5) Includes $(48) million, $73 million and $44 million of unaffiliated activity for the years ended December 31, 2021, 2020 and 2019, respectively. (6) Includes $0.4 million, $0.9 million and $1.9 million of unaffiliated activity for the years ended December 31, 2021, 2020 and 2019, respectively. (7) Includes $(201) million, $(70) million and $(30) million of unaffiliated activity for the years ended December 31, 2021, 2020 and 2019, respectively. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments [Abstract] | |
Fixed Maturities, Available-for-sale Securities | The following tables set forth the composition of fixed maturity securities (excluding investments classified as trading), as of the dates indicated: December 31, 2021 Amortized Gross Gross Allowance for Credit Losses Fair (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 303,040 $ 31,011 $ 111 $ 0 $ 333,940 Obligations of U.S. states and their political subdivisions 584,244 46,978 701 0 630,521 Foreign government bonds 324,454 29,299 3,271 11 350,471 U.S. public corporate securities 4,794,878 366,764 29,770 0 5,131,872 U.S. private corporate securities 1,964,767 59,037 16,880 2,049 2,004,875 Foreign public corporate securities 906,031 34,234 10,363 0 929,902 Foreign private corporate securities 2,741,449 62,932 48,381 2,089 2,753,911 Asset-backed securities(1) 547,549 860 1,099 0 547,310 Commercial mortgage-backed securities 552,653 25,928 3,397 0 575,184 Residential mortgage-backed securities(2) 18,684 1,501 5 0 20,180 Total fixed maturities, available-for-sale $ 12,737,749 $ 658,544 $ 113,978 $ 4,149 $ 13,278,166 (1) Includes credit-tranched securities collateralized by loan obligations, education loans, auto loans and other asset types. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. December 31, 2020 Amortized Gross Gross Allowance for Credit Losses Fair (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 74,946 $ 2,931 $ 22 $ 0 $ 77,855 Obligations of U.S. states and their political subdivisions 460,003 57,948 0 0 517,951 Foreign government bonds 206,633 44,254 32 0 250,855 U.S. public corporate securities 2,473,440 456,581 587 0 2,929,434 U.S. private corporate securities 919,316 95,793 2,198 855 1,012,056 Foreign public corporate securities 278,717 42,899 886 0 320,730 Foreign private corporate securities 977,539 123,006 7,131 1,484 1,091,930 Asset-backed securities(1) 236,909 1,115 386 0 237,638 Commercial mortgage-backed securities 480,412 40,660 125 0 520,947 Residential mortgage-backed securities(2) 49,456 3,779 0 0 53,235 Total fixed maturities, available-for-sale $ 6,157,371 $ 868,966 $ 11,367 $ 2,339 $ 7,012,631 (1) Includes credit-tranched securities collateralized by loan obligations, credit cards, auto loans, education loans and sub-prime mortgages. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. . |
Duration Of Gross Unrealized Losses On Fixed Maturity Securities | The following tables set forth the fair value and gross unrealized losses on available-for-sale fixed maturity securities without an allowance for credit losses aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the dates indicated: December 31, 2021 Less Than Twelve Months Twelve Months or More Total Fair Value Gross Fair Value Gross Fair Value Gross (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 0 $ 2,119 $ 111 $ 2,119 $ 111 Obligations of U.S. states and their political subdivisions 104,621 701 0 0 104,621 701 Foreign government bonds 59,550 2,826 6,473 371 66,023 3,197 U.S. public corporate securities 1,681,201 23,160 180,249 6,610 1,861,450 29,770 U.S. private corporate securities 972,796 14,036 16,409 2,844 989,205 16,880 Foreign public corporate securities 532,445 8,255 29,718 2,108 562,163 10,363 Foreign private corporate securities 1,253,739 42,392 57,637 5,616 1,311,376 48,008 Asset-backed securities 288,971 1,099 0 0 288,971 1,099 Commercial mortgage-backed securities 157,355 1,622 40,689 1,775 198,044 3,397 Residential mortgage-backed securities 1,393 5 0 0 1,393 5 Total fixed maturities, available-for-sale $ 5,052,071 $ 94,096 $ 333,294 $ 19,435 $ 5,385,365 $ 113,531 December 31, 2020 Less Than Twelve Months Twelve Months or More Total Fair Value Gross Fair Value Gross Fair Value Gross (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 2,255 $ 22 $ 0 $ 0 $ 2,255 $ 22 Foreign government bonds 2,270 32 0 0 2,270 32 U.S. public corporate securities 33,295 341 2,754 246 36,049 587 U.S. private corporate securities 33,806 771 6,659 1,427 40,465 2,198 Foreign public corporate securities 6,432 97 6,464 789 12,896 886 Foreign private corporate securities 2,931 131 85,340 6,657 88,271 6,788 Asset-backed securities 51,914 183 70,503 203 122,417 386 Commercial mortgage-backed securities 17,443 125 0 0 17,443 125 Residential mortgage-backed securities 0 0 0 0 0 0 Total fixed maturities, available-for-sale $ 150,346 $ 1,702 $ 171,720 $ 9,322 $ 322,066 $ 11,024 |
Fixed Maturities Classified by Contractual Maturity Date | The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated: December 31, 2021 Amortized Cost Fair Value (in thousands) Fixed maturities, available-for-sale: Due in one year or less $ 101,546 $ 101,320 Due after one year through five years 2,063,502 2,075,819 Due after five years through ten years 3,639,243 3,652,143 Due after ten years 5,814,572 6,306,210 Asset-backed securities 547,549 547,310 Commercial mortgage-backed securities 552,653 575,184 Residential mortgage-backed securities 18,684 20,180 Total fixed maturities, available-for-sale $ 12,737,749 $ 13,278,166 |
Sources of Fixed Maturity Proceeds and Related Investment Gains (Losses), and Losses on Impairments | The following table sets forth the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on write-downs, impairments and the allowance for credit losses of fixed maturities, for the periods indicated: Years Ended December 31, 2021 2020 2019 (in thousands) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 790,331 $ 81,766 $ 633,787 Proceeds from maturities/prepayments 465,347 305,859 314,906 Gross investment gains from sales and maturities 14,972 1,293 59,557 Gross investment losses from sales and maturities (16,674) (1,878) (3,785) OTTI recognized in earnings(2) N/A N/A (9,034) Write-downs recognized in earnings(3) (2) (4,312) N/A (Addition to) release of allowance for credit losses(4) (1,810) (2,339) N/A (1) Excludes activity from non-cash related proceeds due to the timing of trade settlements of $(4.4) million, $(2.4) million and $0.0 million for the years ended December 31, 2021, 2020 and 2019, respectively. (2) For the year ended December 31, 2019, amount excludes the portion of OTTI amounts remaining in OCI, representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment. (3) Amounts represent write-downs of credit adverse securities and securities activity marketed for sale. In addition, for the year ended December 31, 2020, amount also include write-downs on securities approaching maturities related to foreign exchange movements. (4) Effective January 1, 2020, credit losses on available-for-sale fixed maturity securities are recorded within the “allowance for credit losses.” |
Credit Losses Recognized in Earnings on Fixed Maturity Securities Held by the Company for which a Portion of the OTTI Loss was Recognized in OCI | The following tables set forth the activity in the allowance for credit losses for fixed maturity securities, as of the dates indicated: Year Ended December 31, 2021 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of year $ 0 $ 0 $ 2,339 $ 0 $ 0 $ 0 $ 2,339 Additions to allowance for credit losses not previously recorded 0 11 2,664 0 0 0 2,675 Reductions for securities sold during the period 0 0 (28) 0 0 0 (28) Addition (reductions) on securities with previous allowance 0 0 (837) 0 0 0 (837) Balance, end of period $ 0 $ 11 $ 4,138 $ 0 $ 0 $ 0 $ 4,149 Year Ended December 31, 2020 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of year $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Additions to allowance for credit losses not previously recorded 0 0 5,672 0 0 0 5,672 Reductions for securities sold during the period 0 0 (3,147) 0 0 0 (3,147) Addition (reductions) on securities with previous allowance 0 0 (186) 0 0 0 (186) Balance, end of period $ 0 $ 0 $ 2,339 $ 0 $ 0 $ 0 $ 2,339 |
Commercial Mortgage and Other Loans | The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: December 31, 2021 December 31, 2020 Amount % of Amount % of Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 748,414 26.4 % $ 364,549 28.2 % Hospitality 48,141 1.7 34,069 2.6 Industrial 916,398 32.2 399,017 30.9 Office 445,055 15.7 195,443 15.1 Other 252,590 8.9 138,477 10.7 Retail 255,577 9.0 142,266 11.0 Total commercial mortgage loans 2,666,175 93.9 1,273,821 98.5 Agricultural property loans 172,336 6.1 19,577 1.5 Total commercial mortgage and agricultural property loans 2,838,511 100.0 % 1,293,398 100.0 % Allowance for credit losses (5,951) (4,552) Total net commercial mortgage and agricultural property loans $ 2,832,560 $ 1,288,846 The affiliated commercial mortgage loan included in "Commercial mortgage and other loans" at December 31, was as follows: Maturity Date Interest Rate 2021 (in thousands) Affiliated Commercial Mortgage Loan 2025 4.60% $ 73,412 |
Allowance for Credit Losses | The following table sets forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated: Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Balance at December 31, 2018 $ 2,026 $ 39 $ 2,065 Addition to (release of) allowance for credit losses (283) (14) (297) Balance at December 31, 2019 $ 1,743 $ 25 $ 1,768 Cumulative effect of adoption of ASU 2016-13 2,495 (8) 2,487 Addition to (release of) allowance for expected losses 308 (11) 297 Balance at December 31, 2020 $ 4,546 $ 6 $ 4,552 Addition to (release of) allowance for expected losses 1,301 98 1,399 Balance at December 31, 2021 $ 5,847 $ 104 $ 5,951 |
Financing Receivable Credit Quality Indicators | The following tables set forth key credit quality indicators based upon the recorded investment gross of allowance for credit losses, as of the dates indicated: December 31, 2021 Amortized Cost by Origination Year 2021 2020 2019 2018 2017 Prior Total (in thousands) Commercial mortgage loans Loan-to-Value Ratio: 0%-59.99% $ 47,161 $ 0 $ 179,682 $ 76,656 $ 126,934 $ 553,022 $ 983,455 60%-69.99% 307,999 225,330 289,322 170,444 126,159 116,654 1,235,908 70%-79.99% 163,451 86,083 75,185 13,728 55,032 51,203 444,682 80% or greater 0 0 0 0 958 1,172 2,130 Total $ 518,611 $ 311,413 $ 544,189 $ 260,828 $ 309,083 $ 722,051 $ 2,666,175 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 501,456 $ 195,164 $ 481,289 $ 253,938 $ 289,443 $ 638,092 $ 2,359,382 1.0 - 1.2x 17,155 109,862 39,577 6,890 7,100 39,213 219,797 Less than 1.0x 0 6,387 23,323 0 12,540 44,746 86,996 Total $ 518,611 $ 311,413 $ 544,189 $ 260,828 $ 309,083 $ 722,051 $ 2,666,175 Agricultural property loans Loan-to-Value Ratio: 0%-59.99% $ 98,579 $ 26,581 $ 16,226 $ 6,463 $ 8,372 $ 16,115 $ 172,336 60%-69.99% 0 0 0 0 0 0 0 70%-79.99% 0 0 0 0 0 0 0 80% or greater 0 0 0 0 0 0 0 Total $ 98,579 $ 26,581 $ 16,226 $ 6,463 $ 8,372 $ 16,115 $ 172,336 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 98,579 $ 26,581 $ 16,226 $ 6,463 $ 8,372 $ 15,300 $ 171,521 1.0 - 1.2x 0 0 0 0 0 0 0 Less than 1.0x 0 0 0 0 0 815 815 Total $ 98,579 $ 26,581 $ 16,226 $ 6,463 $ 8,372 $ 16,115 $ 172,336 December 31, 2020 Amortized Cost by Origination Year 2020 2019 2018 2017 2016 Prior Total (in thousands) Commercial mortgage loans Loan-to-Value Ratio: 0%-59.99% $ 10,645 $ 47,284 $ 33,443 $ 92,410 $ 162,030 $ 251,903 $ 597,715 60%-69.99% 69,819 95,331 141,260 52,710 80,875 43,823 483,818 70%-79.99% 63,783 36,099 22,431 32,476 21,178 15,342 191,309 80% or greater 0 0 0 979 0 0 979 Total $ 144,247 $ 178,714 $ 197,134 $ 178,575 $ 264,083 $ 311,068 $ 1,273,821 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 128,839 $ 159,476 $ 177,098 $ 171,255 $ 238,010 $ 290,741 $ 1,165,419 1.0 - 1.2x 15,408 10,334 7,134 7,320 26,073 16,418 82,687 Less than 1.0x 0 8,904 12,902 0 0 3,909 25,715 Total $ 144,247 $ 178,714 $ 197,134 $ 178,575 $ 264,083 $ 311,068 $ 1,273,821 Agricultural property loans Loan-to-Value Ratio: 0%-59.99% $ 0 $ 0 $ 0 $ 6,486 $ 0 $ 13,091 $ 19,577 60%-69.99% 0 0 0 0 0 0 0 70%-79.99% 0 0 0 0 0 0 0 80% or greater 0 0 0 0 0 0 0 Total $ 0 $ 0 $ 0 $ 6,486 $ 0 $ 13,091 $ 19,577 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 0 $ 0 $ 0 $ 6,486 $ 0 $ 12,276 $ 18,762 1.0 - 1.2x 0 0 0 0 0 0 0 Less than 1.0x 0 0 0 0 0 815 815 Total $ 0 $ 0 $ 0 $ 6,486 $ 0 $ 13,091 $ 19,577 |
Aging of Past Due Commercial Mortgage and Other Loans and Nonaccrual Status | The following tables set forth an aging of past due commercial mortgage and other loans based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated: December 31, 2021 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status(2) (in thousands) Commercial mortgage loans $ 2,666,175 $ 0 $ 0 $ 0 $ 2,666,175 $ 0 Agricultural property loans 172,336 0 0 0 172,336 0 Total $ 2,838,511 $ 0 $ 0 $ 0 $ 2,838,511 $ 0 (1) As of December 31, 2021, there were no loans in this category accruing interest. (2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2. December 31, 2020 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status(2) (in thousands) Commercial mortgage loans $ 1,273,821 $ 0 $ 0 $ 0 $ 1,273,821 $ 0 Agricultural property loans 19,577 0 0 0 19,577 0 Total $ 1,293,398 $ 0 $ 0 $ 0 $ 1,293,398 $ 0 (1) As of December 31, 2020, there were no loans in this category accruing interest. (2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2. |
Other Invested Assets | The following table sets forth the composition of “Other invested assets,” as of the dates indicated: December 31, 2021 2020 (in thousands) Company's investment in separate accounts $ 53,694 $ 44,018 LPs/LLCs: Equity method: Private equity 286,141 241,493 Hedge funds 432,749 77,311 Real estate-related 89,337 63,194 Subtotal equity method 808,227 381,998 Fair value: Private equity 69,137 65,436 Hedge funds 481 499 Real estate-related 9,861 10,857 Subtotal fair value 79,479 76,792 Total LPs/LLCs 887,706 458,790 Derivative instruments 268,525 18,147 Total other invested assets $ 1,209,925 $ 520,955 |
Equity Method Investments | The following tables set forth summarized combined financial information for significant LP/LLC interests accounted for under the equity method, including the Company’s investments in operating joint ventures. Changes between periods in the tables below reflect changes in the activities within the operating joint ventures and LPs/LLCs, as well as changes in the Company’s level of investment in such entities. December 31, 2021 2020 (in thousands) STATEMENTS OF FINANCIAL POSITION Total assets(1) $ 72,416,906 $ 12,952,942 Total liabilities(2) $ 12,120,390 $ 90,444 Partners’ capital 60,296,516 12,862,498 Total liabilities and partners’ capital $ 72,416,906 $ 12,952,942 Total liabilities and partners’ capital included above $ 746,870 $ 348,267 Equity in LP/LLC interests not included above 201,541 175,024 Carrying value $ 948,411 $ 523,291 (1) Amount represents gross assets of each fund where the Company has a significant investment. These assets consist primarily of investments in real estate, investments in securities and other miscellaneous assets. (2) Amount represents gross liabilities of each fund where the Company has a significant investment. These liabilities consist primarily of third-party-borrowed funds and other miscellaneous liabilities. Years Ended December 31, 2021 2020 2019 (in thousands) STATEMENTS OF OPERATIONS Total revenue(1) $ 11,031,051 $ 565,409 $ 819,904 Total expenses(2) (2,044,942) (201,644) (200,666) Net earnings (losses) $ 8,986,109 $ 363,765 $ 619,238 Equity in net earnings (losses) included above $ 62,173 $ 8,644 $ 24,971 Equity in net earnings (losses) of LP/LLC interests not included above 28,765 25,859 5,077 Total equity in net earnings (losses) $ 90,938 $ 34,503 $ 30,048 (1) Amount represents gross revenue of each fund where the Company has a significant investment. This revenue consists of income from investments in real estate, investments in securities and other income. |
Accrued Investment Income | The following table sets forth the composition of “Accrued investment income,” as of the dates indicated: December 31, 2021 December 31, 2020 (in thousands) Fixed maturities $ 117,216 $ 54,565 Equity securities 2 1 Commercial mortgage and other loans 7,025 3,610 Policy loans 35,153 35,374 Other invested assets 254 0 Short-term investments and cash equivalents 377 63 Total accrued investment income $ 160,027 $ 93,613 |
Net Investment Income | The following table sets forth “Net investment income” by investment type, for the periods indicated: Years Ended December 31, 2021 2020 2019 (in thousands) Fixed maturities, available-for-sale $ 299,607 $ 224,262 $ 235,456 Fixed maturities, trading 38,778 1,768 1,374 Equity securities 530 410 856 Commercial mortgage and other loans 63,548 50,534 57,886 Policy loans 69,602 70,363 68,485 Other invested assets 104,375 36,684 38,577 Short-term investments and cash equivalents 712 3,219 9,266 Gross investment income 577,152 387,240 411,900 Less: investment expenses (26,917) (19,890) (18,103) Net investment income $ 550,235 $ 367,350 $ 393,797 |
Realized Investment Gains (Losses), Net | The following table sets forth “Realized investment gains (losses), net” by investment type, for the periods indicated: Years Ended December 31, 2021 2020 2019 (in thousands) Fixed maturities(1) $ (3,514) $ (7,236) $ 46,738 Commercial mortgage and other loans 1,535 (226) 297 Other invested assets (2,737) (287) (3,400) Derivatives(2) (5,291,043) (55,003) (160,368) Short-term investments and cash equivalents 353 (224) (16) Realized investment gains (losses), net $ (5,295,406) $ (62,976) $ (116,749) (1) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading. (2) Includes the impact of the 2021 Variable Annuities Recapture. See Note 1 for additional information. |
Net Unrealized Gains and (Losses) on Investments | The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated: December 31, 2021 2020 2019 (in thousands) Fixed maturity securities, available-for-sale — with OTTI(1) $ N/A $ N/A $ 1,568 Fixed maturity securities, available-for-sale — all other(1) N/A N/A 397,136 Fixed maturity securities, available-for-sale with an allowance 3,685 0 N/A Fixed maturity securities, available-for-sale without an allowance 540,881 857,599 N/A Derivatives designated as cash flow hedges(2) 39,896 (8,112) 26,126 Affiliated notes 73 4,024 4,715 Other investments(3) 1,854 (4,162) (4,365) Net unrealized gains (losses) on investments $ 586,389 $ 849,349 $ 425,180 (1) Effective January 1, 2020, per ASU 2016-13, fixed maturity securities, available-for-sale are no longer required to be disclosed “with OTTI” and “all other.” (2) For more information on cash flow hedges, see Note 4. (3) Includes net unrealized gains (losses) on certain joint ventures that are strategic in nature and are included in “Other assets.” |
Repurchase Agreements and Securities Lending | The following table sets forth the composition of “Cash collateral for loaned securities,” which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated: December 31, 2021 December 31, 2020 Remaining Contractual Maturities of the Agreements Remaining Contractual Maturities of the Agreements Overnight & Continuous Up to 30 Days Total Overnight & Continuous Up to 30 Days Total (in thousands) U.S. public corporate securities $ 3,004 $ 0 $ 3,004 $ 0 $ 0 $ 0 Foreign public corporate securities 0 0 0 2,725 0 2,725 Total cash collateral for loaned securities(1) $ 3,004 $ 0 $ 3,004 $ 2,725 $ 0 $ 2,725 (1) The Company did not have any agreements with remaining contractual maturities greater than thirty days, as of the dates indicated. |
Securities Pledged | The following table sets forth the carrying value of investments pledged to third parties and the carrying amount of the associated liabilities supported by the pledged collateral, as of the dates indicated: December 31, 2021 2020 (in thousands) Pledged collateral: Fixed maturity securities, available-for-sale $ 2,871 $ 2,525 Total securities pledged $ 2,871 $ 2,525 Liabilities supported by the pledged collateral: Cash collateral for loaned securities $ 3,004 $ 2,725 Total liabilities supported by the pledged collateral $ 3,004 $ 2,725 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The table below provides a summary of the gross notional amount and fair value of derivative contracts by the primary underlying risks, excluding embedded derivatives and associated reinsurance recoverables. Many derivative instruments contain multiple underlying risks. The fair value amounts below represent the value of derivative contracts prior to taking into account the netting effects of master netting agreements and cash collateral. December 31, 2021 December 31, 2020 Primary Underlying Risk/Instrument Type Gross Fair Value Gross Fair Value Assets Liabilities Assets Liabilities (in thousands) Derivatives Designated as Hedge Accounting Instruments: Currency/Interest Rate Interest Rate Swaps $ 3,344 $ 55 $ 0 $ 3,486 $ 203 $ 0 Foreign Currency Swaps 886,552 37,259 (6,900) 861,074 27,336 (49,316) Total Derivatives Designated as Hedge Accounting Instruments $ 889,896 $ 37,314 $ (6,900) $ 864,560 $ 27,539 $ (49,316) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 130,358,860 $ 5,698,740 $ (10,348,130) $ 663,050 $ 57,024 $ (11,117) Interest Rate Futures 4,109,300 2,876 (2,709) 57,700 198 0 Interest Rate Swaptions 9,883,000 280,323 (173,863) 0 0 0 Interest Rate Forwards 195,000 3,760 (991) 0 0 0 Foreign Currency Foreign Currency Forwards 119,653 842 (1,063) 55,292 5 (1,322) Credit Credit Default Swaps 306,900 24,789 0 2,313 0 (18) Currency/Interest Rate Foreign Currency Swaps 2,139,523 68,477 (23,251) 143,011 6,584 (7,286) Equity Total Return Swaps 15,129,666 66,627 (475,209) 0 0 0 Equity Options 19,461,881 902,050 (1,535,272) 3,244,900 306,196 (196,767) Futures 5,015,002 736 (6,595) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments $ 186,718,785 $ 7,049,220 $ (12,567,083) $ 4,166,266 $ 370,007 $ (216,510) Total Derivatives(1)(2) $ 187,608,681 $ 7,086,534 $ (12,573,983) $ 5,030,826 $ 397,546 $ (265,826) (1) Excludes embedded derivatives and associated reinsurance recoverables which contain multiple underlying risks. The fair value of these embedded derivatives was a net liability of $9,048 million and $13,228 million as of December 31, 2021 and 2020, respectively included in "Future policy benefits" and $3,246 million and $1,155 million as of December 31, 2021 and 2020, respectively included in "Policyholders' account balances". Other assets included $73 million and $0 million as of December 31, 2021 and 2020, respectively. Other liabilities included $13 million and $0 million as of December 31, 2021 and 2020, respectively. The fair value of the related reinsurance, included in "Reinsurance recoverables" and/or "Reinsurance payables" was an asset of $931 million and $13,240 million as of December 31, 2021 and 2020, respectively. (2) Recorded in “Other invested assets” and “Payables to parent and affiliates” on the Consolidated Statements of Financial Position. |
Offsetting of Financial Assets | The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Consolidated Statements of Financial Position. December 31, 2021 Gross Gross Net Financial Net Amount (in thousands) Offsetting of Financial Assets: Derivatives $ 7,086,534 $ (6,818,009) $ 268,525 $ 0 $ 268,525 Securities purchased under agreements to resell 185,000 0 185,000 (185,000) 0 Total Assets $ 7,271,534 $ (6,818,009) $ 453,525 $ (185,000) $ 268,525 Offsetting of Financial Liabilities: Derivatives $ 12,573,983 $ (12,568,082) $ 5,901 $ (5,901) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 12,573,983 $ (12,568,082) $ 5,901 $ (5,901) $ 0 December 31, 2020 Gross Gross Net Financial Net Amount (in thousands) Offsetting of Financial Assets: Derivatives $ 397,546 $ (379,399) $ 18,147 $ (14,572) $ 3,575 Securities purchased under agreements to resell 0 0 0 0 0 Total Assets $ 397,546 $ (379,399) $ 18,147 $ (14,572) $ 3,575 Offsetting of Financial Liabilities: Derivatives $ 265,826 $ (265,826) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 265,826 $ (265,826) $ 0 $ 0 $ 0 (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. |
Offsetting of Financial Liabilities | The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Consolidated Statements of Financial Position. December 31, 2021 Gross Gross Net Financial Net Amount (in thousands) Offsetting of Financial Assets: Derivatives $ 7,086,534 $ (6,818,009) $ 268,525 $ 0 $ 268,525 Securities purchased under agreements to resell 185,000 0 185,000 (185,000) 0 Total Assets $ 7,271,534 $ (6,818,009) $ 453,525 $ (185,000) $ 268,525 Offsetting of Financial Liabilities: Derivatives $ 12,573,983 $ (12,568,082) $ 5,901 $ (5,901) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 12,573,983 $ (12,568,082) $ 5,901 $ (5,901) $ 0 December 31, 2020 Gross Gross Net Financial Net Amount (in thousands) Offsetting of Financial Assets: Derivatives $ 397,546 $ (379,399) $ 18,147 $ (14,572) $ 3,575 Securities purchased under agreements to resell 0 0 0 0 0 Total Assets $ 397,546 $ (379,399) $ 18,147 $ (14,572) $ 3,575 Offsetting of Financial Liabilities: Derivatives $ 265,826 $ (265,826) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 265,826 $ (265,826) $ 0 $ 0 $ 0 (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship. Year Ended December 31, 2021 Realized Net Other Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ 2 $ 47 $ 0 $ (161) Currency/Interest Rate 1,357 15,983 11,119 48,169 Total cash flow hedges 1,359 16,030 11,119 48,008 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (20,596) 0 0 0 Currency 2,006 0 0 0 Currency/Interest Rate 44,350 0 79 0 Credit 2,892 0 0 0 Equity (944,765) 0 0 0 Embedded Derivatives(1) (4,376,289) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (5,292,402) 0 79 0 Total $ (5,291,043) $ 16,030 $ 11,198 $ 48,008 Year Ended December 31, 2020 Realized Net Other Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ (44) $ 21 $ 0 $ 284 Currency/Interest Rate (314) 10,660 (10,161) (34,522) Total cash flow hedges (358) 10,681 (10,161) (34,238) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 17,000 0 0 0 Currency (2,560) 0 0 0 Currency/Interest Rate (4,130) 0 (109) 0 Credit (284) 0 0 0 Equity 37,480 0 0 0 Embedded Derivatives (102,151) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (54,645) 0 (109) 0 Total $ (55,003) $ 10,681 $ (10,270) $ (34,238) Year Ended December 31, 2019 Realized Net Other Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ 0 $ 0 $ 0 $ (50) Currency/Interest Rate 425 9,007 (1,698) 4,081 Total cash flow hedges 425 9,007 (1,698) 4,031 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 18,609 0 0 0 Currency 20 0 0 0 Currency/Interest Rate 3,485 0 (5) 0 Credit (1) 0 0 0 Equity 74,068 0 0 0 Embedded Derivatives (256,974) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (160,793) 0 (5) 0 Total $ (160,368) $ 9,007 $ (1,703) $ 4,031 (1) Includes the impact from 2021 Variable Annuities Recapture, see Note 1 for further details. |
Schedule of Derivative Instruments Recognized in Accumulated Other Comprehensive Income(Loss) Before Taxes | Presented below is a rollforward of current period cash flow hedges in AOCI before taxes: (in thousands) Balance, December 31, 2018 $ 22,122 Cumulative-effect adjustment from the adoption of ASU 2017-12 (27) Amount recorded in AOCI Interest Rate (50) Currency/Interest Rate 11,815 Total amount recorded in AOCI 11,765 Amount reclassified from AOCI to income Currency/Interest Rate (7,734) Total amount reclassified from AOCI to income (7,734) Balance, December 31, 2019 $ 26,126 Amount recorded in AOCI Interest Rate 261 Currency/Interest Rate (34,337) Total amount recorded in AOCI (34,076) Amount reclassified from AOCI to income Interest Rate 23 Currency/Interest Rate (185) Total amount reclassified from AOCI to income (162) Balance, December 31, 2020 $ (8,112) Amount recorded in AOCI Interest Rate (112) Currency/Interest Rate 76,628 Total amount recorded in AOCI 76,516 Amount reclassified from AOCI to income Interest Rate (49) Currency/Interest Rate (28,459) Total amount reclassified from AOCI to income (28,508) Balance, December 31, 2021 $ 39,896 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis | The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated. December 31, 2021 Level 1 Level 2 Level 3 Netting(1) Total (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 333,940 $ 0 $ $ 333,940 Obligations of U.S. states and their political subdivisions 0 630,521 0 630,521 Foreign government bonds 0 350,321 150 350,471 U.S. corporate public securities 0 5,131,872 0 5,131,872 U.S. corporate private securities 0 1,873,370 131,505 2,004,875 Foreign corporate public securities 0 921,008 8,894 929,902 Foreign corporate private securities 0 2,508,676 245,235 2,753,911 Asset-backed securities(2) 0 484,861 62,449 547,310 Commercial mortgage-backed securities 0 463,689 111,495 575,184 Residential mortgage-backed securities 0 20,180 0 20,180 Subtotal 0 12,718,438 559,728 13,278,166 Fixed maturities, trading 0 3,302,392 0 3,302,392 Equity securities 58,160 40,635 12,472 111,267 Short-term investments 9,997 135,440 0 145,437 Cash equivalents 13,999 422,633 0 436,632 Other invested assets(3) 246,097 6,840,437 0 (6,818,009) 268,525 Other assets 0 0 72,937 72,937 Reinsurance recoverables 0 0 931,207 931,207 Receivables from parent and affiliates 0 162,045 0 162,045 Subtotal excluding separate account assets 328,253 23,622,020 1,576,344 (6,818,009) 18,708,608 Separate account assets(4)(5) 52,100 144,059,558 0 144,111,658 Total assets $ 380,353 $ 167,681,578 $ 1,576,344 $ (6,818,009) $ 162,820,266 Future policy benefits(6) $ 0 $ 0 $ 9,047,956 $ $ 9,047,956 Policyholders' account balances 0 0 3,245,773 3,245,773 Payables to parent and affiliates 0 12,563,253 0 (12,563,253) 0 Other liabilities 10,730 12,624 0 (4,829) 18,525 Total liabilities $ 10,730 $ 12,575,877 $ 12,293,729 $ (12,568,082) $ 12,312,254 December 31, 2020 Level 1 Level 2 Level 3 Netting(1) Total (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 22,855 $ 55,000 $ $ 77,855 Obligations of U.S. states and their political subdivisions 0 517,951 0 517,951 Foreign government bonds 0 250,692 163 250,855 U.S. corporate public securities 0 2,929,431 3 2,929,434 U.S. corporate private securities 0 977,423 34,633 1,012,056 Foreign corporate public securities 0 311,407 9,323 320,730 Foreign corporate private securities 0 961,113 130,817 1,091,930 Asset-backed securities(2) 0 235,573 2,065 237,638 Commercial mortgage-backed securities 0 520,947 0 520,947 Residential mortgage-backed securities 0 53,235 0 53,235 Subtotal 0 6,780,627 232,004 7,012,631 Fixed maturities, trading 0 81,727 755 82,482 Equity securities 100,268 300 7,889 108,457 Short-term investments 49,997 0 0 49,997 Cash equivalents 49,996 347,330 0 397,326 Other invested assets(3) 198 397,348 0 (379,399) 18,147 Other assets 0 0 0 0 Reinsurance recoverables 0 0 13,239,539 13,239,539 Receivables from parent and affiliates 0 111,970 0 111,970 Subtotal excluding separate account assets 200,459 7,719,302 13,480,187 (379,399) 21,020,549 Separate account assets(4)(5) 0 140,583,009 0 140,583,009 Total assets $ 200,459 $ 148,302,311 $ 13,480,187 $ (379,399) $ 161,603,558 Future policy benefits(6) $ 0 $ 0 $ 13,227,814 $ $ 13,227,814 Policyholders' account balances 0 0 1,155,274 1,155,274 Payables to parent and affiliates 0 265,826 0 (265,826) 0 Other liabilities 0 0 0 0 Total liabilities $ 0 $ 265,826 $ 14,383,088 $ (265,826) $ 14,383,088 (1) “Netting” amounts represent cash collateral of $(5,750.1) million and $113.6 million as of December 31, 2021 and 2020, respectively. (2) Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (3) Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value ("NAV") per share (or its equivalent) as a practical expedient. At December 31, 2021 and 2020, the fair values of such investments were $79 million and $77 million, respectively. (4) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Consolidated Statements of Financial Position. (5) Separate account assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate, hedge funds and a corporate owned life insurance fund, for which fair value is measured at NAV per share (or its equivalent). At December 31, 2021 and 2020, the fair value of such investments was $5,686 million and $5,157 million, respectively. (6) As of December 31, 2021, the net embedded derivative liability position of $9,048 million includes $610 million of embedded derivatives in an asset position and $9,658 million of embedded derivatives in a liability position. As of December 31, 2020, the net embedded derivative liability position of $13,228 million includes $483 million of embedded derivatives in an asset position and $13,711 million of embedded derivatives in a liability position. |
Fair Value Inputs, Assets and Liabilities, Quantitative Information | The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities. December 31, 2021 Fair Value Valuation Unobservable Minimum Maximum Weighted Impact of (in thousands) Assets: Corporate securities(2) $ 312,139 Discounted cash flow Discount rate 1.65 % 20 % 4.57 % Decrease Market Comparables EBITDA multiples(3) 4.9 X 19.2 X 9.0 X Increase Liquidation Liquidation value 62.58 % 62.58 % 62.58 % Increase Reinsurance recoverables $ 931,207 Fair values are determined using the same unobservable inputs as future policy benefits. Liabilities: Future policy benefits(4) $ 9,047,956 Discounted cash flow Lapse rate(6) 1 % 20 % Decrease Spread over LIBOR(7) 0.03 % 1.13 % Decrease Utilization rate(8) 39 % 96 % Increase Withdrawal rate See table footnote (9) below. Mortality rate(10) 0 % 15 % Decrease Equity volatility curve 16 % 25 % Increase Policyholders' account balances(5) $ 3,245,773 Discounted cash flow Lapse rate(6) 1 % 42 % Decrease Spread over LIBOR(7) 0.03 % 1.13 % Decrease Mortality rate(10) 0 % 23 % Decrease Equity volatility curve 6 % 31 % Increase December 31, 2020 Fair Value Valuation Unobservable Minimum Maximum Weighted Impact of (in thousands) Assets: Corporate securities(2) $ 151,554 Discounted cash flow Discount rate 0.99 % 11.38 % 3.44 % Decrease Reinsurance recoverables $ 13,239,539 Fair values are determined using the same unobservable inputs as future policy benefits. Liabilities: Future policy benefits(4) $ 13,227,814 Discounted cash flow Lapse rate(6) 1 % 20 % Decrease Spread over LIBOR(7) 0.06 % 1.17 % Decrease Utilization rate(8) 39 % 96 % Increase Withdrawal rate See table footnote (9) below. Mortality rate(10) 0 % 15 % Decrease Equity volatility curve 18 % 26 % Increase Policyholders' account balances(5) $ 1,155,274 Discounted cash flow Lapse rate(6) 1 % 6 % Decrease Spread over LIBOR(7) 0.06 % 1.17 % Decrease Mortality rate(10) 0 % 24 % Decrease Equity volatility curve 15 % 30 % Increase (1) Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table. (2) Includes assets classified as fixed maturities, available-for-sale and fixed maturities trading. (3) Represents multiples of earnings before interest, taxes, depreciation and amortization "EBITDA", and are amounts used when the Company has determined that market participants would use such multiples when valuing the investments. (4) Future policy benefits primarily represent general account liabilities for the living benefit features of the Company’s variable annuity contracts which are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (5) Policyholders’ account balances primarily represent general account liabilities for the index-linked interest credited on certain of the Company’s life and annuity products that are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (6) Lapse rates for contracts with living benefit guarantees are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates for contracts with index-linked crediting guarantees may be adjusted at the contract level based on the applicability of any surrender charges, product type, and market related factors such as interest rates. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. For any given contract, lapse rates vary throughout the period over which cash flows are projected for the purposes of valuing these embedded derivatives. (7) The spread over the LIBOR swap curve represents the premium added to the proxy for the risk-free rate (LIBOR) to reflect the Company's estimates of rates that a market participant would use to value the living benefits in both the accumulation and payout phases and index-linked interest crediting guarantees. This spread includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because funding agreements, living benefit guarantees, and index-linked interest crediting guarantees are insurance liabilities and are therefore senior to debt. (8) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits. (9) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of both December 31, 2021 and 2020, the minimum withdrawal rate assumption is 76% and the maximum withdrawal rate assumption may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%. (10) The range reflects the mortality rates for the vast majority of business with living benefits and other contracts, with policyholders ranging from 45 to 90 years old. While the majority of living benefits have a minimum age requirement, certain other contracts do not have an age restriction. This results in contractholders with mortality rates approaching 0% for certain benefits. Mortality rates may vary by product, age, and duration. A mortality improvement assumption is also incorporated into the overall mortality table. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate. Year Ended December 31, 2021 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thousands) Fixed maturities, available-for-sale: U.S. government $ 55,000 $ 0 $ 0 $ (55,000) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Foreign government 163 (13) 0 0 0 0 0 0 0 150 (15) Corporate securities(4) 174,776 (10,914) 95,294 (5,085) 0 (28,690) 156,667 9,313 (5,727) 385,634 (11,298) Structured securities(5) 2,065 4,165 74,800 (29) 0 (1,761) 32,859 107,038 (45,193) 173,944 4,189 Other assets: Fixed maturities, trading 755 46 0 0 0 0 0 0 (801) 0 46 Equity securities 7,889 709 0 0 0 0 3,874 0 0 12,472 709 Other invested assets 0 0 0 0 0 0 0 0 0 0 0 Short-term investments 0 181 0 0 0 (1,871) 1,690 0 0 0 0 Cash equivalents 0 147 0 0 0 (1,377) 1,230 0 0 0 0 Other assets 0 1,258 1,170 0 0 (899) 71,408 0 0 72,937 359 Reinsurance recoverables 13,239,539 (12,937,591) 629,259 0 0 0 0 0 0 931,207 (545,001) Receivables from parent and affiliates 0 0 0 0 0 0 0 0 0 0 0 Liabilities: Future policy benefits (13,227,814) 5,281,553 0 0 (1,101,695) 0 0 0 0 (9,047,956) 4,647,753 Policyholders' account balances(6) (1,155,274) (78,321) 0 0 (265,807) 0 (1,746,371) 0 0 (3,245,773) 5,476 Year Ended December 31, 2021 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ (832) $ 0 $ (6,318) $ 388 $ (1,778) $ 0 $ (5,346) Other assets: Fixed maturities, trading 0 46 0 0 0 46 0 Equity securities 0 709 0 0 0 709 0 Other invested assets 0 0 0 0 0 0 0 Short-term investments 181 0 0 0 0 0 0 Cash equivalents 147 0 0 0 0 0 0 Other assets 1,258 0 0 0 359 0 0 Reinsurance recoverables (12,937,591) 0 0 0 (545,001) 0 0 Receivables from parent and affiliates 0 0 0 0 0 0 0 Liabilities: Future policy benefits 5,281,553 0 0 0 4,647,753 0 0 Policyholders' account balances (78,321) 0 0 0 5,476 0 0 Year Ended December 31, 2020 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thousands) Fixed maturities, available-for-sale: U.S. government $ 38,671 $ 0 $ 16,329 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 55,000 $ 0 Foreign government 163 0 0 0 0 0 0 0 0 163 (1) Corporate securities(4) 50,083 14,715 11,121 (3,680) 0 (7,850) (1,914) 114,695 (2,394) 174,776 14,679 Structured securities(5) 2,001 (483) 7,444 (6) 0 (1,255) 0 0 (5,636) 2,065 (489) Other assets: Fixed maturities, trading 668 87 0 0 0 0 0 0 0 755 87 Equity securities 9,898 2,821 0 (4,830) 0 0 0 0 0 7,889 1,211 Other invested assets 4 (4) 0 0 0 0 0 0 0 0 (4) Short-term investments 0 0 0 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 0 0 0 Other assets 0 0 0 0 0 0 0 0 0 0 0 Reinsurance recoverables 8,539,671 3,604,075 1,095,793 0 0 0 0 0 0 13,239,539 3,889,923 Receivables from parent and affiliates 3,135 23 0 0 0 (3,158) 0 0 0 0 0 Liabilities: Future policy benefits (8,529,566) (3,610,281) 0 0 (1,087,967) 0 0 0 0 (13,227,814) (3,896,128) Policyholders' account balances(6) (962,351) (30,199) 0 0 (162,724) 0 0 0 0 (1,155,274) 3,853 Year Ended December 31, 2020 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ (5,019) $ 0 $ 19,106 $ 145 $ (4,773) $ 0 $ 18,962 Other assets: Fixed maturities, trading 0 87 0 0 0 87 0 Equity securities 0 2,821 0 0 0 1,211 0 Other invested assets (4) 0 0 0 (4) 0 0 Short-term investments 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 Other assets 0 0 0 0 0 0 0 Reinsurance recoverables 3,604,075 0 0 0 3,889,923 0 0 Receivables from parent and affiliates 0 0 0 23 0 0 0 Liabilities: Future policy benefits (3,610,281) 0 0 0 (3,896,128) 0 0 Policyholders' account balances (30,199) 0 0 0 3,853 0 0 The following tables summarize the portion of changes in fair values of Level 3 assets and liabilities included in earnings and OCI for the year ended December 31, 2019, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held as of December 31, 2019. Year Ended December 31, 2019 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) (in thousands) Fixed maturities, available-for-sale $ (8,198) $ 0 $ 3,615 $ 680 $ (8,467) $ 0 Other assets: Fixed maturities, trading 0 (83) 0 0 0 (83) Equity securities 0 1,668 0 0 0 1,534 Other invested assets 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 Other assets 0 0 0 0 0 0 Reinsurance recoverables 1,936,363 0 0 0 2,142,421 0 Receivables from parent and affiliates 0 0 0 190 0 0 Liabilities: Future policy benefits (1,945,323) 0 0 0 (2,151,380) 0 Policyholders' account balances (765,917) 0 0 0 (759,661) 0 (1) Realized investment gains (losses) on future policy benefits and reinsurance recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts. Refer to Note 1 for impacts to Realized investments gains (losses), net related to the 2021 Variable Annuities Recapture and the Affiliated Reinsurance Agreement. (2) For current year "Other" represents noncash transfers related to the 2021 Variable Annuities Recapture and the Affiliated Reinsurance Agreement. Refer to Note 1 for additional information. (3) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts. (4) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. (5) Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities. (6) Issuances and settlements for Policyholders' account balances are presented net in the rollforward. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate. Year Ended December 31, 2021 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thousands) Fixed maturities, available-for-sale: U.S. government $ 55,000 $ 0 $ 0 $ (55,000) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Foreign government 163 (13) 0 0 0 0 0 0 0 150 (15) Corporate securities(4) 174,776 (10,914) 95,294 (5,085) 0 (28,690) 156,667 9,313 (5,727) 385,634 (11,298) Structured securities(5) 2,065 4,165 74,800 (29) 0 (1,761) 32,859 107,038 (45,193) 173,944 4,189 Other assets: Fixed maturities, trading 755 46 0 0 0 0 0 0 (801) 0 46 Equity securities 7,889 709 0 0 0 0 3,874 0 0 12,472 709 Other invested assets 0 0 0 0 0 0 0 0 0 0 0 Short-term investments 0 181 0 0 0 (1,871) 1,690 0 0 0 0 Cash equivalents 0 147 0 0 0 (1,377) 1,230 0 0 0 0 Other assets 0 1,258 1,170 0 0 (899) 71,408 0 0 72,937 359 Reinsurance recoverables 13,239,539 (12,937,591) 629,259 0 0 0 0 0 0 931,207 (545,001) Receivables from parent and affiliates 0 0 0 0 0 0 0 0 0 0 0 Liabilities: Future policy benefits (13,227,814) 5,281,553 0 0 (1,101,695) 0 0 0 0 (9,047,956) 4,647,753 Policyholders' account balances(6) (1,155,274) (78,321) 0 0 (265,807) 0 (1,746,371) 0 0 (3,245,773) 5,476 Year Ended December 31, 2021 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ (832) $ 0 $ (6,318) $ 388 $ (1,778) $ 0 $ (5,346) Other assets: Fixed maturities, trading 0 46 0 0 0 46 0 Equity securities 0 709 0 0 0 709 0 Other invested assets 0 0 0 0 0 0 0 Short-term investments 181 0 0 0 0 0 0 Cash equivalents 147 0 0 0 0 0 0 Other assets 1,258 0 0 0 359 0 0 Reinsurance recoverables (12,937,591) 0 0 0 (545,001) 0 0 Receivables from parent and affiliates 0 0 0 0 0 0 0 Liabilities: Future policy benefits 5,281,553 0 0 0 4,647,753 0 0 Policyholders' account balances (78,321) 0 0 0 5,476 0 0 Year Ended December 31, 2020 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thousands) Fixed maturities, available-for-sale: U.S. government $ 38,671 $ 0 $ 16,329 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 55,000 $ 0 Foreign government 163 0 0 0 0 0 0 0 0 163 (1) Corporate securities(4) 50,083 14,715 11,121 (3,680) 0 (7,850) (1,914) 114,695 (2,394) 174,776 14,679 Structured securities(5) 2,001 (483) 7,444 (6) 0 (1,255) 0 0 (5,636) 2,065 (489) Other assets: Fixed maturities, trading 668 87 0 0 0 0 0 0 0 755 87 Equity securities 9,898 2,821 0 (4,830) 0 0 0 0 0 7,889 1,211 Other invested assets 4 (4) 0 0 0 0 0 0 0 0 (4) Short-term investments 0 0 0 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 0 0 0 Other assets 0 0 0 0 0 0 0 0 0 0 0 Reinsurance recoverables 8,539,671 3,604,075 1,095,793 0 0 0 0 0 0 13,239,539 3,889,923 Receivables from parent and affiliates 3,135 23 0 0 0 (3,158) 0 0 0 0 0 Liabilities: Future policy benefits (8,529,566) (3,610,281) 0 0 (1,087,967) 0 0 0 0 (13,227,814) (3,896,128) Policyholders' account balances(6) (962,351) (30,199) 0 0 (162,724) 0 0 0 0 (1,155,274) 3,853 Year Ended December 31, 2020 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ (5,019) $ 0 $ 19,106 $ 145 $ (4,773) $ 0 $ 18,962 Other assets: Fixed maturities, trading 0 87 0 0 0 87 0 Equity securities 0 2,821 0 0 0 1,211 0 Other invested assets (4) 0 0 0 (4) 0 0 Short-term investments 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 Other assets 0 0 0 0 0 0 0 Reinsurance recoverables 3,604,075 0 0 0 3,889,923 0 0 Receivables from parent and affiliates 0 0 0 23 0 0 0 Liabilities: Future policy benefits (3,610,281) 0 0 0 (3,896,128) 0 0 Policyholders' account balances (30,199) 0 0 0 3,853 0 0 The following tables summarize the portion of changes in fair values of Level 3 assets and liabilities included in earnings and OCI for the year ended December 31, 2019, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held as of December 31, 2019. Year Ended December 31, 2019 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) (in thousands) Fixed maturities, available-for-sale $ (8,198) $ 0 $ 3,615 $ 680 $ (8,467) $ 0 Other assets: Fixed maturities, trading 0 (83) 0 0 0 (83) Equity securities 0 1,668 0 0 0 1,534 Other invested assets 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 Other assets 0 0 0 0 0 0 Reinsurance recoverables 1,936,363 0 0 0 2,142,421 0 Receivables from parent and affiliates 0 0 0 190 0 0 Liabilities: Future policy benefits (1,945,323) 0 0 0 (2,151,380) 0 Policyholders' account balances (765,917) 0 0 0 (759,661) 0 (1) Realized investment gains (losses) on future policy benefits and reinsurance recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts. Refer to Note 1 for impacts to Realized investments gains (losses), net related to the 2021 Variable Annuities Recapture and the Affiliated Reinsurance Agreement. (2) For current year "Other" represents noncash transfers related to the 2021 Variable Annuities Recapture and the Affiliated Reinsurance Agreement. Refer to Note 1 for additional information. (3) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts. (4) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. (5) Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities. (6) Issuances and settlements for Policyholders' account balances are presented net in the rollforward. |
Fair Value Disclosure Financial Instruments Not Carried at Fair Value | The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Consolidated Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value. December 31, 2021 Fair Value Carrying Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 2,883,710 $ 2,883,710 $ 2,832,560 Policy loans 0 0 1,327,485 1,327,485 1,327,485 Short-term investments 37,000 0 0 37,000 37,000 Cash and cash equivalents 297,299 185,000 0 482,299 482,299 Accrued investment income 0 160,027 0 160,027 160,027 Reinsurance recoverables 0 0 29,931 29,931 28,883 Receivables from parent and affiliates 0 116,086 0 116,086 116,086 Other assets 0 134,598 434,383 568,981 568,981 Total assets $ 334,299 $ 595,711 $ 4,675,509 $ 5,605,519 $ 5,553,321 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 1,356,850 $ 2,590,487 $ 3,947,337 $ 3,941,822 Cash collateral for loaned securities 0 3,004 0 3,004 3,004 Long-term debt to affiliates 0 319,225 0 319,225 320,362 Payables to parent and affiliates 0 31,775 0 31,775 31,775 Other liabilities 0 864,788 34,091 898,879 898,879 Total liabilities $ 0 $ 2,575,642 $ 2,624,578 $ 5,200,220 $ 5,195,842 December 31, 2020 Fair Value Carrying Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 1,359,422 $ 1,359,422 $ 1,288,846 Policy loans 0 0 1,323,681 1,323,681 1,323,681 Short Term investments 0 0 0 0 0 Cash and cash equivalents 29,653 0 0 29,653 29,653 Accrued investment income 0 93,613 0 93,613 93,613 Reinsurance recoverables 0 0 227,993 227,993 217,637 Receivables from parent and affiliates 0 154,503 0 154,503 154,503 Other assets 0 27,120 0 27,120 27,120 Total assets $ 29,653 $ 275,236 $ 2,911,096 $ 3,215,985 $ 3,135,053 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 1,428,043 $ 286,533 $ 1,714,576 $ 1,704,220 Cash collateral for loaned securities 0 2,725 0 2,725 2,725 Long-term Debt 0 0 0 0 0 Payables to parent and affiliates 0 75,990 0 75,990 75,990 Other liabilities 0 415,889 0 415,889 415,889 Total liabilities $ 0 $ 1,922,647 $ 286,533 $ 2,209,180 $ 2,198,824 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Schedule Of Deferred Policy Acquisition Costs | The balances of and changes in DAC as of and for the years ended December 31, are as follows: 2021 2020 2019 (in thousands) Balance, beginning of year $ 2,433,936 $ 1,855,698 $ 1,613,922 Capitalization of commissions, sales and issue expenses 1,057,030 758,469 451,773 Amortization-Impact of assumption and experience unlocking and true-ups 40,482 (27,844) (34,619) Amortization-All other (382,600) (112,718) (78,699) Change due to unrealized investment gains and losses (81,031) (39,861) (37,337) Other (1)(2)(3) 3,763,155 192 (59,342) Balance, end of year $ 6,830,972 $ 2,433,936 $ 1,855,698 (1) 2021 includes the impact of the 2021 Variable Annuities Recapture as well as the assuming of DAC upon Affiliated Reinsurance Agreement with PALAC. See Note 1 and Note 9 for additional information. (2) 2020 represents the impact of the January 1, 2020 adoption of ASU 2016-13. (3) 2019 represents ceded DAC upon reinsurance agreement with Prudential Arizona Reinsurance Term Company and Prudential Arizona Reinsurance Captive Company in 2019. See Note 9 for additional information. |
Policyholders' Liabilities (Tab
Policyholders' Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Liability for Future Policy Benefit, before Reinsurance [Abstract] | |
Schedule of Liability for Future Policy Benefits and Policyholders' Account Balances | Future policy benefits at December 31 for the years indicated are as follows: 2021 2020 (in thousands) Life insurance – domestic $ 18,095,368 $ 17,167,209 Life insurance – Taiwan 0 1,642,747 Individual annuities and supplementary contracts 740,941 810,989 Other contract liabilities 9,090,720 13,268,236 Total future policy benefits $ 27,927,029 $ 32,889,181 Policyholders’ account balances at December 31 for the years indicated are as follows: 2021 2020 (in thousands) Interest-sensitive life contracts $ 19,729,444 $ 18,638,033 Individual annuities(1) 14,150,233 3,637,196 Guaranteed interest accounts 125,249 154,284 Other 1,356,869 1,428,061 Total policyholders’ account balances $ 35,361,795 $ 23,857,574 (1) 2021 amount includes assumed business from PALAC. |
Certain Long-Duration Contrac_2
Certain Long-Duration Contracts With Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Long-Duration Contracts, Assumptions Supporting Guarantee Obligations [Abstract] | |
Schedule of Net Amount of Risk by Product and Guarantee | As of December 31, 2021 and 2020, the Company had the following guarantees associated with these contracts, by product and guarantee type: December 31, 2021 December 31, 2020 In the Event of At Annuitization/ In the Event of At Annuitization/ (in thousands) Annuity Contracts Return of net deposits Account value $ 103,862,788 N/A $ 104,700,706 N/A Net amount at risk $ 27,872 N/A $ 18,336 N/A Average attained age of contractholders 69 years N/A 68 years N/A Minimum return or contract value Account value $ 19,634,387 $ 113,689,139 $ 19,949,435 $ 114,832,594 Net amount at risk $ 1,124,519 $ 1,653,394 $ 1,272,073 $ 2,042,199 Average attained age of contractholders 72 years 69 years 71 years 68 years Average period remaining until earliest expected annuitization N/A 0 years N/A 0 years (1) Balances are gross of reinsurance. (2) Includes income and withdrawal benefits. December 31, 2021 December 31, 2020 In the Event of Death(1)(2) (in thousands) Variable Life, Variable Universal Life and Universal Life Contracts Separate account value $ 4,473,502 $ 4,087,733 General account value $ 10,558,009 $ 9,920,732 Net amount at risk $ 149,872,088 $ 146,158,176 Average attained age of contractholders 58 years 56 years (1) Balances are gross of reinsurance. |
Schedule of Fair Value of Separate Accounts by Major Category of Investment | Account balances of variable annuity contracts with guarantees were invested in separate account investment options as follows: December 31, 2021(1) December 31, 2020(1) (in thousands) Equity funds $ 69,299,203 $ 68,436,773 Bond funds 47,895,089 51,126,536 Money market funds 3,016,761 1,578,516 Total $ 120,211,053 $ 121,141,825 (1) Balances are gross of reinsurance. |
Schedule of Minimum Guaranteed Benefit Liabilities | The table below summarizes the changes in general account liabilities for guarantees. The liabilities for GMDB and guaranteed minimum income benefits (“GMIB”) are included in “Future policy benefits” and the related changes in the liabilities are included in “Policyholders' benefits”. GMAB, GMWB and GMIWB are accounted for as embedded derivatives and are recorded at fair value within “Future policy benefits”. Changes in the fair value of these derivatives, including changes in the Company’s own risk of non-performance, along with any fees attributed or payments made relating to the derivative, are recorded in “Realized investment gains (losses), net.” See Note 5 for additional information regarding the methodology used in determining the fair value of these embedded derivatives. The Company maintains a portfolio of derivative investments that serve as a partial hedge of the risks associated with these products, for which the changes in fair value are also recorded in "Realized investment gains (losses), net." This portfolio of derivative investments does not qualify for hedge accounting treatment under U.S. GAAP. Additionally, the Company externally reinsures the guaranteed benefit features associated with certain contracts. See Note 9 for further information regarding the external reinsurance arrangement. GMDB GMIB GMWB/GMIWB/ Total Variable Annuity Variable Life, Variable Universal Life & Universal Life Variable Annuity (in thousands) Balance at December 31, 2018 $ 411,568 $ 5,231,854 $ 16,810 $ 5,588,839 $ 11,249,071 Incurred guarantee benefits(1) 52,717 1,473,762 2,266 2,940,727 4,469,472 Paid guarantee benefits (25,992) (110,642) (2,209) 0 (138,843) Change in unrealized investment gains and losses 22,208 805,259 240 0 827,707 Balance at December 31, 2019 460,501 7,400,233 17,107 8,529,566 16,407,407 Incurred guarantee benefits(1) 114,878 1,368,759 3,490 4,698,248 6,185,375 Paid guarantee benefits (37,804) (126,148) (1,667) 0 (165,619) Change in unrealized investment gains and losses 31,488 720,741 318 0 752,547 Balance at December 31, 2020 569,063 9,363,585 19,248 13,227,814 23,179,710 Incurred guarantee benefits(1) (10,596) 1,089,139 (3,650) (4,179,858) (3,104,965) Paid guarantee benefits (24,394) (189,453) 0 0 (213,847) Change in unrealized investment gains and losses (46,542) (326,128) (484) 0 (373,154) Balance at December 31, 2021 $ 487,531 $ 9,937,143 $ 15,114 $ 9,047,956 $ 19,487,744 (1) Incurred guarantee benefits include the portion of assessments established as additions to reserves as well as changes in estimates affecting the reserves. Also includes changes in the fair value of features considered to be derivatives. |
Deferred Sales Inducements | Changes in DSI, reported as “Interest credited to policyholders’ account balances”, are as follows: Sales Inducements (in thousands) Balance at December 31, 2020 $ 0 Capitalization 167 Amortization - Impact of assumption and experience unlocking and true-ups 16,286 Amortization - All other (37,737) Change in unrealized investment gains and losses 7,669 Other (1) 388,264 Balance at December 31, 2021 $ 374,649 (1) Represents the impact of the 2021 Variable Annuities Recapture. |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Impact On Balance Sheet | Reinsurance amounts included in the Company’s Consolidated Statements of Financial Position as of December 31, were as follows: 2021 2020 (in thousands) Reinsurance recoverables $ 38,598,767 $ 48,367,096 Policy loans (156,749) (153,869) Deferred policy acquisition costs (2,575,232) (6,574,020) Deferred sales inducements (37,905) (445,493) Other assets(1) 353,669 233,364 Policyholders’ account balances 12,005,839 4,773,439 Future policy benefits(2) 5,286,252 5,069,353 Other liabilities(3) 1,224,399 1,099,318 (1) Includes $0.0 million of unaffiliated activity as of both December 31, 2021 and 2020. (2) Includes $0.0 million of unaffiliated activity as of both December 31, 2021 and 2020. (3) Includes $49.2 million and $42.6 million of unaffiliated activity as of December 31, 2021 and 2020, respectively. |
Reinsurance Recoverables By Counterparty | Reinsurance recoverables by counterparty are broken out below: December 31, 2021 December 31, 2020 (in thousands) PAR U $ 13,523,832 $ 13,352,845 PALAC 7,198,504 15,941,123 PURC 5,830,441 5,368,831 PARCC 2,371,491 2,572,428 GUL Re 2,710,926 2,573,609 PAR Term 1,972,339 1,913,265 Prudential Insurance 2,082,551 2,421,226 Prudential of Taiwan 0 1,649,998 Term Re 1,953,063 1,766,978 DART 644,101 502,770 Lotus Re 32,039 0 Unaffiliated 279,480 304,023 Total reinsurance recoverables $ 38,598,767 $ 48,367,096 |
Reinsurance Impact On Income Statement | The financial statement impacts of this transaction are as follows: Interim Consolidated Statement of Financial Position Day 1 Impact of 2021 Variable Annuities Recapture Impacts of Recapture (in millions) ASSETS Total investments(1)(2) $ 8,324 Cash and cash equivalents 414 Deferred policy acquisition costs 3,286 Accrued investment income 42 Reinsurance recoverables (12,307) Deferred sales inducements 388 Receivable from parent and affiliates 0 Income taxes receivable 765 Other assets (84) Separate account assets 0 TOTAL ASSETS $ 828 LIABILITIES AND EQUITY LIABILITIES Future policy benefits $ 0 Policyholders’ account balances 0 Cash collateral for loaned securities 0 Payables to parent and affiliates (106) Other liabilities 0 Separate account liabilities 0 Total liabilities (106) EQUITY Common stock 0 Additional paid-in capital(3) 3,786 Retained earnings (2,797) Accumulated other comprehensive income (55) Total equity 934 TOTAL LIABILITIES AND EQUITY $ 828 Significant non-cash transactions (1) The increase in total investments includes non-cash activities of $8.3 billion related to the recapture transaction. (2) The Company incurred a loss related to ceding commissions of $2 billion. (3) The increase in Additional paid-in capital includes non-cash activities of $3.4 billion in invested assets related to capital contributions from Prudential Insurance. Interim Consolidated Statement of Operations and Comprehensive Income (Loss) Day 1 Impact of 2021 Variable Annuities Recapture Impacts of Recapture (in millions) REVENUES Other income (loss) $ (1) Realized investment gains (losses), net (4,953) TOTAL REVENUES (4,954) BENEFITS AND EXPENSES Policyholders’ benefits 257 Interest credited to policyholders’ account balances (399) General, administrative and other expenses (1,272) TOTAL BENEFITS AND EXPENSES (1,414) INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES (3,540) Income tax expense (benefit) (743) NET INCOME (LOSS) $ (2,797) Affiliated Asset Transfers Affiliate Period Transaction Security Type Fair Value Book Value APIC/ Retained Earnings Increase/(Decrease) Realized Investment Gain/(Loss), Net Derivative Gain/(Loss) (in millions) PALAC July 1, 2021 Purchase Derivatives, Fixed Maturities, Equity Securities, Commercial Mortgages and JV/LP Investments $ 4,908 $ 4,908 $ 0 $ 0 $ 0 Prudential Insurance July 1, 2021 Contributed Capital Fixed Maturities $ 3,420 $ 3,420 $ 3,420 $ 0 $ 0 Reinsurance amounts, included in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss) for the years ended December 31, were as follows: 2021 2020 2019 (in thousands) Premiums: Direct $ 1,909,878 $ 1,923,708 $ 1,882,584 Assumed(1) 162 184 206 Ceded(2) (1,706,364) (1,831,716) (1,854,246) Net premiums 203,676 92,176 28,544 Policy charges and fee income: Direct 3,647,883 3,491,735 3,725,113 Assumed 582,003 587,466 519,265 Ceded(3) (2,700,129) (3,454,881) (3,700,222) Net policy charges and fee income 1,529,757 624,320 544,156 Net investment income: Direct 555,404 372,822 398,762 Assumed 1,049 1,579 1,631 Ceded (6,218) (7,051) (6,596) Net investment income 550,235 367,350 393,797 Asset administration fees: Direct 403,359 360,438 355,118 Assumed 0 0 0 Ceded (201,182) (341,300) (339,062) Net asset administration fees 202,177 19,138 16,056 Other income: Direct 227,035 78,445 83,891 Assumed(4) (66) (1) (293) Ceded 35,790 165 (59) Amortization of reinsurance income 4,449 4,647 21 Net other income 267,208 83,256 83,560 Realized investment gains (losses), net: Direct 7,656,388 (3,593,799) (1,912,241) Assumed 18,171 0 0 Ceded(5) (12,969,965) 3,530,823 1,795,492 Realized investment gains (losses), net (5,295,406) (62,976) (116,749) Policyholders’ benefits (including change in reserves): Direct 3,611,402 3,584,011 3,352,159 Assumed(6) 849,599 1,055,277 885,542 Ceded(7) (3,805,091) (4,341,139) (4,084,627) Net policyholders’ benefits (including change in reserves) 655,910 298,149 153,074 Interest credited to policyholders’ account balances: Direct 563,821 536,886 470,551 Assumed 138,202 136,153 135,355 Ceded (816,608) (439,664) (418,677) Net interest credited to policyholders’ account balances (114,585) 233,375 187,229 Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization (2,265,350) (1,589,113) (1,772,111) (1) Includes $0.2 million of unaffiliated activity for the year ended December 31, 2021 and $0.2 million for both years ended December 31, 2020 and 2019. (2) Includes $(19.8) million, $(10.5) million and $(0.6) million of unaffiliated activity for the years ended December 31, 2021, 2020 and 2019, respectively. (3) Includes $(65) million, $(54) million and $(34) million of unaffiliated activity for the years ended December 31, 2021, 2020 and 2019, respectively. (4) Includes $0.0 million, $0.0 million and $(0.3) million of unaffiliated activity for the years ended December 31, 2021, 2020 and 2019, respectively. (5) Includes $(48) million, $73 million and $44 million of unaffiliated activity for the years ended December 31, 2021, 2020 and 2019, respectively. (6) Includes $0.4 million, $0.9 million and $1.9 million of unaffiliated activity for the years ended December 31, 2021, 2020 and 2019, respectively. (7) Includes $(201) million, $(70) million and $(30) million of unaffiliated activity for the years ended December 31, 2021, 2020 and 2019, respectively. |
Gross And Net Life Insurance In Force | The gross and net amounts of life insurance face amount in force as of December 31, were as follows: 2021 2020 2019 (in thousands) Direct gross life insurance face amount in force $ 1,079,382,740 $ 1,045,775,819 $ 993,850,732 Assumed gross life insurance face amount in force 37,822,851 38,818,752 39,877,183 Reinsurance ceded (992,635,327) (986,701,914) (963,444,461) Net life insurance face amount in force $ 124,570,264 $ 97,892,657 $ 70,283,454 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The following schedule discloses significant components of income tax expense (benefit) for each year presented: Year Ended December 31, 2021 2020 2019 (in thousands) Current tax expense (benefit): U.S. federal $ 440,649 $ (358,548) $ 56,371 State and local 5,002 0 0 Total 445,651 (358,548) 56,371 Deferred tax expense (benefit): U.S. federal (1,137,090) 228,300 (115,503) Total (1,137,090) 228,300 (115,503) Total income tax expense (benefit) on income (loss) before equity in earnings of operating joint ventures (691,439) (130,248) (59,132) Income tax expense (benefit) on equity in earnings of operating joint ventures (147) (518) (1,773) Income tax expense (benefit) reported in equity related to: Other comprehensive income (loss) (52,374) 70,806 81,281 Total income tax expense (benefit) $ (743,960) $ (59,960) $ 20,376 |
Schedule of Effective Income Tax Rate Reconciliation | The differences between income taxes expected at the U.S. federal statutory income tax rate of 21% applicable for 2021, 2020 and 2019, and the reported income tax expense (benefit) are summarized as follows: Year Ended December 31, 2021 2020 2019 (in thousands) Expected federal income tax expense (benefit) $ (609,393) $ 14,308 $ 33,345 Non-taxable investment income (48,662) (46,836) (52,291) Tax credits (36,806) (27,980) (40,602) Changes in tax law (3,644) (70,121) 0 Other 7,066 381 416 Reported income tax expense (benefit) $ (691,439) $ (130,248) $ (59,132) Effective tax rate 23.8 % (191.2) % (37.2) % |
Schedule of Deferred Tax Assets and Liabilities | Schedule of Deferred Tax Assets and Deferred Tax Liabilities As of December 31, 2021 2020 (in thousands) Deferred tax assets: Insurance reserves $ 2,391,739 $ 296,635 Other 2,894 0 Deferred tax assets 2,394,633 296,635 Deferred tax liabilities: Deferred policy acquisition cost 1,003,301 142,147 Deferred sales inducements 78,676 0 Net unrealized gain on securities 114,705 180,067 Investments 155,891 124,821 Other 0 4,032 Deferred tax liabilities 1,352,573 451,067 Net deferred tax asset (liability) $ 1,042,060 $ (154,432) |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The balance of and changes in each component of AOCI as of and for the years ended December 31, are as follows: Accumulated Other Comprehensive Income (Loss) Foreign Currency Net Unrealized Total Accumulated (in thousands) Balance, December 31, 2018 $ (17,448) $ (10,848) $ (28,296) Change in OCI before reclassifications 9,572 435,919 445,491 Amounts reclassified from AOCI 0 (54,472) (54,472) Income tax benefit (expense) (41) (81,240) (81,281) Balance, December 31, 2019 (7,917) 289,359 281,442 Change in OCI before reclassifications 599 327,819 328,418 Amounts reclassified from AOCI 0 7,074 7,074 Income tax benefit (expense) (479) (70,327) (70,806) Balance, December 31, 2020 (7,797) 553,925 546,128 Change in OCI before reclassifications (3,891) (222,182) (226,073) Amounts reclassified from AOCI 0 (24,994) (24,994) Income tax benefit (expense) 414 51,960 52,374 Balance, December 31, 2021 $ (11,274) $ 358,709 $ 347,435 (1) Includes cash flow hedges of $40 million, $(8) million, and $26 million as of December 31, 2021, 2020 and 2019, respectively. |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Reclassifications out of Accumulated Other Comprehensive Income (Loss) Year Ended December 31, 2021 2020 2019 (in thousands) Amounts reclassified from AOCI(1)(2): Net unrealized investment gains (losses): Cash flow hedges—Currency/Interest rate(3) $ 28,508 $ 162 $ 7,734 Net unrealized investment gains (losses) on available-for-sale securities(4) (3,514) (7,236) 46,738 Total net unrealized investment gains (losses) 24,994 (7,074) 54,472 Total reclassifications for the period $ 24,994 $ (7,074) $ 54,472 (1) All amounts are shown before tax. (2) Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI. (3) See Note 4 for additional information on cash flow hedges. (4) See table below for additional information on unrealized investment gains (losses), including the impact on DAC and other costs, future policy benefits, policyholders’ account balances and other liabilities. |
OTTI, Allowance and All Other Net Unrealized Investment Gains (Losses) AOCI Rollforward | The amounts for the periods indicated below, split between amounts related to available-for-sale fixed maturity securities on which an OTTI had been previously recognized, an allowance for credit losses has been recorded, and all other net unrealized investment gains (losses), are as follows: Net Unrealized Gains (Losses) on Available-for-Sale Fixed Maturity Securities on which an OTTI Loss has been Recognized Net Unrealized Gains (Losses) on Investments on Available-for-Sale Fixed Maturity Securities on which an allowance for credit losses has been recorded(1) Net Unrealized Gains (Losses) on All Other Investments(3) DAC and Future Policy Income Tax Accumulated (in thousands) Balance, December 31, 2018 $ (689) $ 0 $ (16,632) $ (65,895) $ 68,042 $ 4,326 $ (10,848) Net unrealized investment gains (losses) on investments arising during the period 2,112 0 494,861 0 0 (105,845) 391,128 Reclassification adjustment for (gains) losses included in net income 210 0 (54,682) 0 0 11,601 (42,871) Reclassification adjustment for OTTI losses excluded from net income(2) (65) 0 65 0 0 0 0 Impact of net unrealized investment 0 0 0 489,122 (550,176) 13,004 (48,050) Balance, December 31, 2019 1,568 0 423,612 423,227 (482,134) (76,914) 289,359 Reclassification due to implementation of ASU 2016-13 (6) (1,568) 0 1,568 0 0 0 0 Net unrealized investment gains (losses) on investments arising during the period 0 616 416,479 0 0 (87,588) 329,507 Reclassification adjustment for (gains) losses included in net income 0 0 7,074 0 0 (1,486) 5,588 Reclassification due to allowance for credit losses recorded during the period 0 (616) 616 0 0 0 0 Impact of net unrealized investment 0 0 0 776,821 (866,097) 18,747 (70,529) Balance, December 31, 2020 0 0 849,349 1,200,048 (1,348,231) (147,241) 553,925 Net unrealized investment gains (losses) on investments arising during the period 0 2,951 (240,917) 0 0 50,016 (187,950) Reclassification adjustment for (gains) losses included in net income 0 (8) (24,986) 0 0 5,277 (19,717) Reclassification due to allowance for credit losses recorded during the period 0 742 (742) 0 0 0 0 Impact of net unrealized investment 0 0 0 (216,963) 232,747 (3,333) 12,451 Balance, December 31, 2021 $ 0 $ 3,685 $ 582,704 $ 983,085 $ (1,115,484) $ (95,281) $ 358,709 (1) Allowance for credit losses on available-for-sale fixed maturity securities effective January 1, 2020. (2) Represents "transfers out" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. (3) Includes cash flow hedges. See Note 4 for information on cash flow hedges. (4) "Other costs" primarily includes reinsurance recoverables and deferred reinsurance losses. (5) "Other liabilities" primarily includes reinsurance payables. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Affiliated Notes Receivable | Affiliated notes receivable included in “Receivables from parent and affiliates” at December 31, were as follows: Maturity Dates Interest Rates 2021 2020 (in thousands) U.S. dollar fixed rate notes 2024 - 2032 0.00% - 14.85 % $ 162,045 $ 111,970 Total long-term notes receivable - affiliated(1) $ 162,045 $ 111,970 (1) All long-term notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances. |
Affiliated Commercial Mortgage Loans | The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: December 31, 2021 December 31, 2020 Amount % of Amount % of Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 748,414 26.4 % $ 364,549 28.2 % Hospitality 48,141 1.7 34,069 2.6 Industrial 916,398 32.2 399,017 30.9 Office 445,055 15.7 195,443 15.1 Other 252,590 8.9 138,477 10.7 Retail 255,577 9.0 142,266 11.0 Total commercial mortgage loans 2,666,175 93.9 1,273,821 98.5 Agricultural property loans 172,336 6.1 19,577 1.5 Total commercial mortgage and agricultural property loans 2,838,511 100.0 % 1,293,398 100.0 % Allowance for credit losses (5,951) (4,552) Total net commercial mortgage and agricultural property loans $ 2,832,560 $ 1,288,846 The affiliated commercial mortgage loan included in "Commercial mortgage and other loans" at December 31, was as follows: Maturity Date Interest Rate 2021 (in thousands) Affiliated Commercial Mortgage Loan 2025 4.60% $ 73,412 |
Affiliated Asset Transfers | The table below shows affiliated asset trades for the years ended December 31, 2021 and 2020, excluding those related to the 2021 Variable Annuities Recapture effective July 1, 2021, as described in Note 1. Affiliate Date Transaction Security Type Fair Book Value APIC, Net Realized (in thousands) Prudential Insurance March 2020 Purchase Other Invested Assets $ 1,390 $ 1,390 $ 0 $ 0 Prudential Insurance April 2020 Purchase Fixed Maturities $ 61,953 $ 59,659 $ (1,812) $ 0 Prudential Insurance April 2020 Purchase Fixed Maturities $ 3,485 $ 3,320 $ (130) $ 0 GA BV LLC July 2020 Transfer Out Fixed Maturities $ 1,914 $ 1,914 $ 0 $ 0 PALAC June 2021 Purchase Equities $ 40,284 $ 40,284 $ 0 $ 0 Prudential Insurance September 2021 Purchase Fixed Maturities $ 64,374 $ 59,642 $ (3,739) $ 0 Prudential Insurance September 2021 Sale Fixed Maturities $ 37,887 $ 35,264 $ 2,073 $ 0 Hirakata LLC September 2021 Purchase Fixed Maturities $ 13,944 $ 13,944 $ 0 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Purchase Fixed Maturities $ 120,256 $ 120,256 $ 0 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Sale Fixed Maturities $ 173,590 $ 166,427 $ 0 $ 7,163 Prudential Insurance September 2021 Purchase Commercial Mortgage and Other Loans $ 45,358 $ 42,127 $ (2,553) $ 0 Prudential Insurance September 2021 Sale Commercial Mortgage and Other Loans $ 22,796 $ 21,780 $ 802 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Purchase Commercial Mortgage and Other Loans $ 29,483 $ 29,483 $ 0 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Sale Commercial Mortgage and Other Loans $ 51,005 $ 47,020 $ 0 $ 3,985 Prudential Insurance September 2021 Purchase Derivatives $ 600 $ 494 $ (84) $ 0 Prudential Insurance September 2021 Sale Derivatives $ 335 $ 175 $ 127 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Purchase Derivatives $ (1,243) $ (1,243) $ 0 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Sale Derivatives $ 2,846 $ 770 $ 0 $ 2,076 Prudential Arizona Reinsurance Universal Co. November 2021 Purchase Fixed Maturities $ 41,021 $ 41,021 $ 0 $ 0 PALAC November 2021 Purchase Derivatives $ 1,112 $ 1,112 $ 0 $ 0 PALAC December 2021 Transfer in Fixed Maturities $ 2,037,320 $ 2,037,320 $ 0 $ 0 Prudential Universal Reinsurance Co. December 2021 Purchase Fixed Maturities $ 48,041 $ 48,041 $ 0 $ 0 PALAC December 2021 Purchase Fixed Maturities $ 57,087 $ 57,087 $ 0 $ 0 PALAC December 2021 Transfer in Commercial Mortgage and Other Loans $ 517,309 $ 517,309 $ 0 $ 0 Prudential Insurance December 2021 Contributed Capital Fixed Maturities $ 166,676 $ 166,676 $ 0 $ 0 Prudential Retirement Insurance & Annuity Co December 2021 Sale Derivatives $ 31,567 $ 0 $ 0 $ 31,567 Prudential Retirement Insurance & Annuity Co December 2021 Purchase Derivatives $ 73,572 $ 73,572 $ 0 $ 0 PALAC December 2021 Purchase Derivatives $ 8,455 $ 8,455 $ 0 $ 0 |
Debt Agreements | The following table provides the breakout of the Company's short and long-term debt to affiliates as of December 31, 2021: Affiliate Date Issued Amount of Notes - December 31, 2021 Amount of Notes - December 31, 2020 Interest Date of Maturity (in thousands) Prudential Insurance 8/13/2021 $ 99,770 $ 0 4.39 % 12/15/2023 Prudential Insurance 8/13/2021 29,931 0 4.39 % 12/15/2023 Prudential Insurance 8/13/2021 100,348 0 3.95 % 6/20/2024 Prudential Insurance 8/13/2021 40,139 0 3.95 % 6/20/2024 Prudential Insurance 8/13/2021 50,174 0 3.95 % 6/20/2024 Total Loans Payable to Affiliates $ 320,362 $ 0 |
Business and Basis of Present_3
Business and Basis of Presentation (Interim Consolidated Statement of Financial Position) (Details) - USD ($) $ in Thousands | Jul. 01, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | |||||
Total investments | $ 22,244,232 | $ 10,387,049 | |||
Cash and cash equivalents | 918,931 | 426,979 | $ 563,199 | $ 416,840 | |
Deferred policy acquisition costs | 6,830,972 | 2,433,936 | 1,855,698 | $ 1,613,922 | |
Accrued investment income | 160,027 | 93,613 | |||
Reinsurance recoverables | 38,598,767 | 48,367,096 | |||
Deferred sales inducements | 374,649 | 0 | |||
Receivables from parent and affiliates | 278,131 | 266,473 | |||
Income taxes receivable | 1,316,879 | 175,024 | |||
Other assets | 1,140,948 | 417,508 | |||
Separate account assets | 149,797,828 | 145,740,422 | |||
TOTAL ASSETS | 221,661,364 | 208,308,100 | |||
LIABILITIES | |||||
Policyholders’ account balances | (35,361,795) | (23,857,574) | |||
Cash collateral for loaned securities | (3,004) | (2,725) | |||
Payables to parent and affiliates | (31,775) | (75,990) | |||
Other liabilities | (2,264,477) | (1,694,492) | |||
Separate account liabilities | (149,797,828) | (145,740,422) | |||
Total liabilities | (215,706,270) | (204,260,384) | |||
Equity | |||||
Common stock | 2,500 | 2,500 | |||
Additional paid-in capital | 6,042,491 | 1,726,690 | |||
Retained earnings | (437,332) | 1,772,398 | |||
Accumulated other comprehensive income | 347,435 | 546,128 | |||
Total equity | 5,955,094 | 4,047,716 | |||
TOTAL LIABILITIES AND EQUITY | 221,661,364 | 208,308,100 | |||
Loss related to ceding commissions | 1,529,757 | 624,320 | $ 544,156 | ||
PALAC | |||||
ASSETS | |||||
Reinsurance recoverables | $ 7,198,504 | $ 15,941,123 | |||
Variable annuity | Impacts of Recapture | |||||
ASSETS | |||||
Total investments | $ 8,324,000 | ||||
Cash and cash equivalents | 414,000 | ||||
Deferred policy acquisition costs | 3,286,000 | ||||
Accrued investment income | 42,000 | ||||
Reinsurance recoverables | (12,307,000) | ||||
Deferred sales inducements | 388,000 | ||||
Receivables from parent and affiliates | 0 | ||||
Income taxes receivable | 765,000 | ||||
Other assets | (84,000) | ||||
Separate account assets | 0 | ||||
TOTAL ASSETS | 828,000 | ||||
LIABILITIES | |||||
Future policy benefits | 0 | ||||
Policyholders’ account balances | 0 | ||||
Cash collateral for loaned securities | 0 | ||||
Payables to parent and affiliates | (106,000) | ||||
Other liabilities | 0 | ||||
Separate account liabilities | 0 | ||||
Total liabilities | (106,000) | ||||
Equity | |||||
Common stock | 0 | ||||
Additional paid-in capital | 3,786,000 | ||||
Retained earnings | (2,797,000) | ||||
Accumulated other comprehensive income | (55,000) | ||||
Total equity | 934,000 | ||||
TOTAL LIABILITIES AND EQUITY | 828,000 | ||||
Variable annuity | Impacts of Recapture | Total investments | |||||
Equity | |||||
Non-cash activities | 8,300,000 | ||||
Variable annuity | Impacts of Recapture | Prudential Insurance | Additional paid-in capital | |||||
Equity | |||||
Non-cash activities | 3,400,000 | ||||
Variable annuity | Impacts of Recapture | PALAC | Total investments | |||||
ASSETS | |||||
TOTAL ASSETS | 6,800,000 | ||||
Equity | |||||
Loss related to ceding commissions | $ (2,000,000) |
Business and Basis of Present_4
Business and Basis of Presentation (Interim Consolidated Statement of Operations and Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | Jul. 01, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
REVENUES | ||||
Other Income (loss) | $ 267,208 | $ 83,256 | $ 83,560 | |
Realized investment gains (losses), net | (5,295,406) | (62,976) | (116,749) | |
TOTAL REVENUES | (2,542,353) | 1,123,264 | 949,364 | |
BENEFITS AND EXPENSES | ||||
Policyholders’ benefits | 655,910 | 298,149 | 153,074 | |
Interest credited to policyholders’ account balances | 114,585 | (233,375) | (187,229) | |
General, administrative and other expenses | 523,925 | (383,043) | (336,959) | |
TOTAL BENEFITS AND EXPENSES | 359,518 | 1,055,129 | 790,580 | |
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | (2,901,871) | 68,135 | 158,784 | |
Income tax expense (benefit) | (691,439) | (130,248) | (59,132) | |
NET INCOME (LOSS) | $ (2,209,730) | $ 196,697 | $ 216,999 | |
Variable annuity | Impacts of Recapture | ||||
REVENUES | ||||
Other Income (loss) | $ (1,000) | |||
Realized investment gains (losses), net | (4,953,000) | |||
TOTAL REVENUES | (4,954,000) | |||
BENEFITS AND EXPENSES | ||||
Policyholders’ benefits | 257,000 | |||
Interest credited to policyholders’ account balances | (399,000) | |||
General, administrative and other expenses | (1,272,000) | |||
TOTAL BENEFITS AND EXPENSES | (1,414,000) | |||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | (3,540,000) | |||
Income tax expense (benefit) | (743,000) | |||
NET INCOME (LOSS) | $ (2,797,000) |
Business and Basis of Present_5
Business and Basis of Presentation (Affiliated Asset Transfers) (Details) - USD ($) $ in Thousands | Jul. 01, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Effects of Reinsurance [Line Items] | ||||
Realized investment gains (losses), net | $ (5,295,406) | $ (62,976) | $ (116,749) | |
Variable annuity | Impacts of Recapture | ||||
Effects of Reinsurance [Line Items] | ||||
Realized investment gains (losses), net | $ (4,953,000) | |||
Variable annuity | Impacts of Recapture | PALAC July 2021 Purchase | Affiliated Entity | ||||
Effects of Reinsurance [Line Items] | ||||
Fair Value | 4,908,000 | |||
Book Value | 4,908,000 | |||
APIC/Retained Earnings Increase/(Decrease) | 0 | |||
Realized investment gains (losses), net | 0 | |||
Derivative Gain/(Loss) | 0 | |||
Variable annuity | Impacts of Recapture | Prudential Insurance July 2021 Contributed Capital | Affiliated Entity | ||||
Effects of Reinsurance [Line Items] | ||||
Fair Value | 3,420,000 | |||
Book Value | 3,420,000 | |||
APIC/Retained Earnings Increase/(Decrease) | 3,420,000 | |||
Realized investment gains (losses), net | 0 | |||
Derivative Gain/(Loss) | $ 0 |
Business and Basis of Present_6
Business and Basis of Presentation (Narrative) (Details) $ in Thousands | Dec. 01, 2021USD ($) | Jul. 01, 2021USD ($) | Dec. 31, 2021USD ($)subsidiary | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Number Of Subsidiaries | subsidiary | 1 | ||||
Effects of Reinsurance [Line Items] | |||||
Invested assets | $ 221,661,364 | $ 208,308,100 | |||
Loss related to ceding commissions | 1,529,757 | 624,320 | $ 544,156 | ||
Reinsurance recoverable | 1,304,306 | 2,440,532 | 2,739,573 | ||
Capital contributions received | 776,657 | 575,000 | $ 0 | ||
Reinsurance recoverables | 38,598,767 | 48,367,096 | |||
Policyholders’ account balances | 35,361,795 | 23,857,574 | |||
Variable annuity | Impacts of Recapture | |||||
Effects of Reinsurance [Line Items] | |||||
Invested assets | $ 828,000 | ||||
Reinsurance recoverable | (12,300,000) | ||||
Net deferred reinsurance loss | 100,000 | ||||
Pre-tax loss | (3,500,000) | ||||
Reinsurance recoverables | (12,307,000) | ||||
Policyholders’ account balances | 0 | ||||
Investments | Variable annuity | Impacts of Recapture | |||||
Effects of Reinsurance [Line Items] | |||||
Non-cash activities | 8,300,000 | ||||
PALAC | |||||
Effects of Reinsurance [Line Items] | |||||
Reinsurance recoverables | 7,198,504 | $ 15,941,123 | |||
PALAC | Investments | Variable annuity | Impacts of Recapture | |||||
Effects of Reinsurance [Line Items] | |||||
Invested assets | 6,800,000 | ||||
Loss related to ceding commissions | (2,000,000) | ||||
Prudential Insurance | Additional paid-in capital | Variable annuity | Impacts of Recapture | |||||
Effects of Reinsurance [Line Items] | |||||
Capital contributions received | 3,800,000 | ||||
Non-cash activities | 3,400,000 | ||||
Cash | $ 400,000 | ||||
Affiliated Entity | PALAC | Variable annuity | Impacts of Recapture | |||||
Effects of Reinsurance [Line Items] | |||||
Net deferred reinsurance loss | $ (238,000) | ||||
Reinsurance recoverables | 7,200,000 | ||||
Affiliated Entity | PALAC | Fixed Annuity | Impacts of Recapture | |||||
Effects of Reinsurance [Line Items] | |||||
Policyholders’ account balances | $ 9,800,000 |
Significant Accounting Polici_3
Significant Accounting Policies and Pronouncements (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2020 | |
Accounting Policies [Abstract] | |||
Commercial mortgage and other loans, Loan-to-value ratios (greater than) | 100.00% | ||
Commercial mortgage and other loans, Loan-to-value ratios (less than) | 100.00% | ||
Commercial mortgage and other loans, Debt service coverage ratios (less than) | 1 | ||
Commercial mortgage and agricultural mortgage loans, Debt service coverage ratios (greater than) | 1 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ (437,332) | $ 1,772,398 | |
Deposit assets related to reinsurance agreement | 497,000 | ||
Funds withheld liability under reinsurance agreement | $ 419,200 | ||
Uncertain tax positions measurement percentage (greater than) | 50.00% | ||
Securities Loaned Transactions Collateral Fair Value of Domestic Securities | 102.00% | ||
Securities Loaned Transactions Collateral Fair Value of Foreign Securities | 105.00% | ||
Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Repurchase and Resale Agreements, Collateral, Percentage | 95.00% | ||
Restatement Adjustment | ASU 2016-13 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 1,800 |
Investments (Fixed Maturities S
Investments (Fixed Maturities Securities Excluding Investments Classified as Trading) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 12,737,749 | $ 6,157,371 |
Allowance for Credit Loss | 4,149 | 2,339 |
Fair Value | 13,278,166 | 7,012,631 |
Fixed Maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 12,737,749 | 6,157,371 |
Gross Unrealized Gains | 658,544 | 868,966 |
Gross Unrealized Losses | 113,978 | 11,367 |
Allowance for Credit Loss | 4,149 | 2,339 |
Fair Value | 13,278,166 | 7,012,631 |
Fixed Maturities | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 303,040 | 74,946 |
Gross Unrealized Gains | 31,011 | 2,931 |
Gross Unrealized Losses | 111 | 22 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 333,940 | 77,855 |
Fixed Maturities | Obligations of U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 584,244 | 460,003 |
Gross Unrealized Gains | 46,978 | 57,948 |
Gross Unrealized Losses | 701 | 0 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 630,521 | 517,951 |
Fixed Maturities | Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 324,454 | 206,633 |
Gross Unrealized Gains | 29,299 | 44,254 |
Gross Unrealized Losses | 3,271 | 32 |
Allowance for Credit Loss | 11 | 0 |
Fair Value | 350,471 | 250,855 |
Fixed Maturities | U.S. public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,794,878 | 2,473,440 |
Gross Unrealized Gains | 366,764 | 456,581 |
Gross Unrealized Losses | 29,770 | 587 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 5,131,872 | 2,929,434 |
Fixed Maturities | U.S. private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,964,767 | 919,316 |
Gross Unrealized Gains | 59,037 | 95,793 |
Gross Unrealized Losses | 16,880 | 2,198 |
Allowance for Credit Loss | 2,049 | 855 |
Fair Value | 2,004,875 | 1,012,056 |
Fixed Maturities | Foreign public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 906,031 | 278,717 |
Gross Unrealized Gains | 34,234 | 42,899 |
Gross Unrealized Losses | 10,363 | 886 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 929,902 | 320,730 |
Fixed Maturities | Foreign private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,741,449 | 977,539 |
Gross Unrealized Gains | 62,932 | 123,006 |
Gross Unrealized Losses | 48,381 | 7,131 |
Allowance for Credit Loss | 2,089 | 1,484 |
Fair Value | 2,753,911 | 1,091,930 |
Fixed Maturities | Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 547,549 | 236,909 |
Gross Unrealized Gains | 860 | 1,115 |
Gross Unrealized Losses | 1,099 | 386 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 547,310 | 237,638 |
Fixed Maturities | Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 552,653 | 480,412 |
Gross Unrealized Gains | 25,928 | 40,660 |
Gross Unrealized Losses | 3,397 | 125 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 575,184 | 520,947 |
Fixed Maturities | Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 18,684 | 49,456 |
Gross Unrealized Gains | 1,501 | 3,779 |
Gross Unrealized Losses | 5 | 0 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | $ 20,180 | $ 53,235 |
Investments (Fair Value and Los
Investments (Fair Value and Losses by Investment Category and Length of Time in a Loss Position) (Details) - Fixed Maturities - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months Fair Value | $ 5,052,071 | $ 150,346 |
Less than Twelve Months, Gross Unrealized Losses | 94,096 | 1,702 |
Twelve Months or More Fair Value | 333,294 | 171,720 |
Twelve Months or More, Gross Unrealized Losses | 19,435 | 9,322 |
Total, Fair Value | 5,385,365 | 322,066 |
Total, Gross Unrealized Losses | 113,531 | 11,024 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months Fair Value | 0 | 2,255 |
Less than Twelve Months, Gross Unrealized Losses | 0 | 22 |
Twelve Months or More Fair Value | 2,119 | 0 |
Twelve Months or More, Gross Unrealized Losses | 111 | 0 |
Total, Fair Value | 2,119 | 2,255 |
Total, Gross Unrealized Losses | 111 | 22 |
Obligations of U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months Fair Value | 104,621 | |
Less than Twelve Months, Gross Unrealized Losses | 701 | |
Twelve Months or More Fair Value | 0 | |
Twelve Months or More, Gross Unrealized Losses | 0 | |
Total, Fair Value | 104,621 | |
Total, Gross Unrealized Losses | 701 | |
Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months Fair Value | 59,550 | 2,270 |
Less than Twelve Months, Gross Unrealized Losses | 2,826 | 32 |
Twelve Months or More Fair Value | 6,473 | 0 |
Twelve Months or More, Gross Unrealized Losses | 371 | 0 |
Total, Fair Value | 66,023 | 2,270 |
Total, Gross Unrealized Losses | 3,197 | 32 |
U.S. public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months Fair Value | 1,681,201 | 33,295 |
Less than Twelve Months, Gross Unrealized Losses | 23,160 | 341 |
Twelve Months or More Fair Value | 180,249 | 2,754 |
Twelve Months or More, Gross Unrealized Losses | 6,610 | 246 |
Total, Fair Value | 1,861,450 | 36,049 |
Total, Gross Unrealized Losses | 29,770 | 587 |
U.S. private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months Fair Value | 972,796 | 33,806 |
Less than Twelve Months, Gross Unrealized Losses | 14,036 | 771 |
Twelve Months or More Fair Value | 16,409 | 6,659 |
Twelve Months or More, Gross Unrealized Losses | 2,844 | 1,427 |
Total, Fair Value | 989,205 | 40,465 |
Total, Gross Unrealized Losses | 16,880 | 2,198 |
Foreign public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months Fair Value | 532,445 | 6,432 |
Less than Twelve Months, Gross Unrealized Losses | 8,255 | 97 |
Twelve Months or More Fair Value | 29,718 | 6,464 |
Twelve Months or More, Gross Unrealized Losses | 2,108 | 789 |
Total, Fair Value | 562,163 | 12,896 |
Total, Gross Unrealized Losses | 10,363 | 886 |
Foreign private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months Fair Value | 1,253,739 | 2,931 |
Less than Twelve Months, Gross Unrealized Losses | 42,392 | 131 |
Twelve Months or More Fair Value | 57,637 | 85,340 |
Twelve Months or More, Gross Unrealized Losses | 5,616 | 6,657 |
Total, Fair Value | 1,311,376 | 88,271 |
Total, Gross Unrealized Losses | 48,008 | 6,788 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months Fair Value | 288,971 | 51,914 |
Less than Twelve Months, Gross Unrealized Losses | 1,099 | 183 |
Twelve Months or More Fair Value | 0 | 70,503 |
Twelve Months or More, Gross Unrealized Losses | 0 | 203 |
Total, Fair Value | 288,971 | 122,417 |
Total, Gross Unrealized Losses | 1,099 | 386 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months Fair Value | 157,355 | 17,443 |
Less than Twelve Months, Gross Unrealized Losses | 1,622 | 125 |
Twelve Months or More Fair Value | 40,689 | 0 |
Twelve Months or More, Gross Unrealized Losses | 1,775 | 0 |
Total, Fair Value | 198,044 | 17,443 |
Total, Gross Unrealized Losses | 3,397 | 125 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months Fair Value | 1,393 | 0 |
Less than Twelve Months, Gross Unrealized Losses | 5 | 0 |
Twelve Months or More Fair Value | 0 | 0 |
Twelve Months or More, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 1,393 | 0 |
Total, Gross Unrealized Losses | $ 5 | $ 0 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Investments [Line Items] | |||
Loans acquired | $ 1,344,000 | $ 0 | |
Loans sold | 69,000 | 0 | |
Fixed Maturity Purchased with Credit Deterioration | 0 | 0 | |
Accrued Investment Income Write Down | 100 | 0 | |
Securities sold under agreements to repurchase | $ 0 | $ 0 | |
Commercial mortgage loans, Percentage | 100.00% | 100.00% | |
Commercial mortgage and other loans purchased with credit deterioration | $ 0 | $ 0 | |
Fixed maturities, available-for-sale | 13,278,166 | 7,012,631 | |
Fair value of collateral that could be sold or repledged | 0 | 0 | |
Assets Deposited With Governmental Authorities | 4,100 | 4,300 | |
Carrying value of non-income producing assets | |||
Schedule of Investments [Line Items] | |||
Fixed maturities, available-for-sale | 24,800 | ||
Fixed Maturities | |||
Schedule of Investments [Line Items] | |||
Fixed maturities, available-for-sale | 13,278,166 | 7,012,631 | |
Gross Unrealized Losses | 113,531 | 11,024 | |
Gross unrealized losses of twelve months or more concentrated in various sectors | 19,435 | 9,322 | |
NAIC High or Highest Quality Rating | Fixed Maturities | |||
Schedule of Investments [Line Items] | |||
Gross Unrealized Losses | 95,100 | 5,000 | |
NAIC Other Than High or Highest Quality Rating | Fixed Maturities | |||
Schedule of Investments [Line Items] | |||
Gross Unrealized Losses | $ 18,400 | 6,000 | |
California | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, Percentage | 25.00% | ||
Texas | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, Percentage | 10.00% | ||
New York | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, Percentage | 7.00% | ||
Europe | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, Percentage | 13.00% | ||
Mexico | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, Percentage | 3.00% | ||
Australia | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, Percentage | 3.00% | ||
Other Income | Fixed Maturities | Trading | |||
Schedule of Investments [Line Items] | |||
Unrealized Gain (Loss) on Investments | $ 156,100 | 9,100 | $ 3,100 |
Other Income | Equity securities | |||
Schedule of Investments [Line Items] | |||
Unrealized Gain (Loss) on Investments | 2,100 | (1,200) | $ (1,000) |
Fixed Maturities | |||
Schedule of Investments [Line Items] | |||
Gross unrealized losses of twelve months or more concentrated in various sectors | $ 19,400 | $ 9,300 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Due in one year or less | $ 101,546 | |
Due after one year through five years | 2,063,502 | |
Due after five years through ten years | 3,639,243 | |
Due after ten years | 5,814,572 | |
Amortized Cost | 12,737,749 | $ 6,157,371 |
Fair Value | ||
Due in one year or less | 101,320 | |
Due after one year through five years | 2,075,819 | |
Due after five years through ten years | 3,652,143 | |
Due after ten years | 6,306,210 | |
Fair Value | 13,278,166 | 7,012,631 |
Asset-backed securities | ||
Amortized Cost | ||
Debt Securities, Available-for-sale,Maturity, without Single Maturity Date,Amortized Cost | 547,549 | |
Fair Value | ||
Debt Securities, Available-for-sale,Maturity, without Single Maturity Date,Fair Value | 547,310 | |
Commercial mortgage-backed securities | ||
Amortized Cost | ||
Debt Securities, Available-for-sale,Maturity, without Single Maturity Date,Amortized Cost | 552,653 | |
Fair Value | ||
Debt Securities, Available-for-sale,Maturity, without Single Maturity Date,Fair Value | 575,184 | |
Residential mortgage-backed securities | ||
Amortized Cost | ||
Debt Securities, Available-for-sale,Maturity, without Single Maturity Date,Amortized Cost | 18,684 | |
Fair Value | ||
Debt Securities, Available-for-sale,Maturity, without Single Maturity Date,Fair Value | 20,180 | |
Fixed Maturities | ||
Amortized Cost | ||
Amortized Cost | 12,737,749 | 6,157,371 |
Fair Value | ||
Fair Value | 13,278,166 | 7,012,631 |
Fixed Maturities | Asset-backed securities | ||
Amortized Cost | ||
Amortized Cost | 547,549 | 236,909 |
Fair Value | ||
Fair Value | 547,310 | 237,638 |
Fixed Maturities | Commercial mortgage-backed securities | ||
Amortized Cost | ||
Amortized Cost | 552,653 | 480,412 |
Fair Value | ||
Fair Value | 575,184 | 520,947 |
Fixed Maturities | Residential mortgage-backed securities | ||
Amortized Cost | ||
Amortized Cost | 18,684 | 49,456 |
Fair Value | ||
Fair Value | $ 20,180 | $ 53,235 |
Investments (Fixed Maturities_2
Investments (Fixed Maturities Securities Proceeds) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | |||
Proceeds from maturities/prepayments | $ 1,251,269 | $ 385,245 | $ 948,693 |
Fixed Maturities | Available-for-sale Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Proceeds from sales | 790,331 | 81,766 | 633,787 |
Proceeds from maturities/prepayments | 465,347 | 305,859 | 314,906 |
Gross investment gains from sales and maturities | 14,972 | 1,293 | 59,557 |
Gross investment losses from sales and maturities | (16,674) | (1,878) | (3,785) |
OTTI recognized in earnings | (9,034) | ||
Write-downs recognized in earnings | (2) | (4,312) | |
(Addition to) release of allowance for credit losses | (1,810) | (2,339) | |
Noncash or Part Noncash Divestiture, Amount of Consideration Received | $ (4,400) | $ (2,400) | $ 0 |
Investments (Credit Losses Reco
Investments (Credit Losses Recognized In Earnings on Fixed Maturity Securities Held by the Company) (Details) - Fixed Maturities - Available-for-sale Securities - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Line Items] | ||
Balance, beginning of year | $ 2,339 | $ 0 |
Additions to allowance for credit losses not previously recorded | 2,675 | 5,672 |
Reductions for securities sold during the period | (28) | (3,147) |
Addition (reductions) on securities with previous allowance | (837) | (186) |
Balance, end of period | 4,149 | 2,339 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Balance, beginning of year | 0 | 0 |
Additions to allowance for credit losses not previously recorded | 0 | 0 |
Reductions for securities sold during the period | 0 | 0 |
Addition (reductions) on securities with previous allowance | 0 | 0 |
Balance, end of period | 0 | 0 |
Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Balance, beginning of year | 0 | 0 |
Additions to allowance for credit losses not previously recorded | 11 | 0 |
Reductions for securities sold during the period | 0 | 0 |
Addition (reductions) on securities with previous allowance | 0 | 0 |
Balance, end of period | 11 | 0 |
U.S. and Foreign Corporate Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Balance, beginning of year | 2,339 | 0 |
Additions to allowance for credit losses not previously recorded | 2,664 | 5,672 |
Reductions for securities sold during the period | (28) | (3,147) |
Addition (reductions) on securities with previous allowance | (837) | (186) |
Balance, end of period | 4,138 | 2,339 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Balance, beginning of year | 0 | 0 |
Additions to allowance for credit losses not previously recorded | 0 | 0 |
Reductions for securities sold during the period | 0 | 0 |
Addition (reductions) on securities with previous allowance | 0 | 0 |
Balance, end of period | 0 | 0 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Balance, beginning of year | 0 | 0 |
Additions to allowance for credit losses not previously recorded | 0 | 0 |
Reductions for securities sold during the period | 0 | 0 |
Addition (reductions) on securities with previous allowance | 0 | 0 |
Balance, end of period | 0 | 0 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Balance, beginning of year | 0 | 0 |
Additions to allowance for credit losses not previously recorded | 0 | 0 |
Reductions for securities sold during the period | 0 | 0 |
Addition (reductions) on securities with previous allowance | 0 | 0 |
Balance, end of period | $ 0 | $ 0 |
Investments (Commercial Mortgag
Investments (Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 2,838,511 | $ 1,293,398 |
Commercial mortgage loans, Percentage | 100.00% | 100.00% |
Allowance for Credit Losses | $ (5,951) | $ (4,552) |
Commercial Mortgage Loans | 2,832,560 | 1,288,846 |
Apartments/Multi-Family | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 748,414 | $ 364,549 |
Commercial mortgage loans, Percentage | 26.40% | 28.20% |
Hospitality | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 48,141 | $ 34,069 |
Commercial mortgage loans, Percentage | 1.70% | 2.60% |
Industrial | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 916,398 | $ 399,017 |
Commercial mortgage loans, Percentage | 32.20% | 30.90% |
Office | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 445,055 | $ 195,443 |
Commercial mortgage loans, Percentage | 15.70% | 15.10% |
Other | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 252,590 | $ 138,477 |
Commercial mortgage loans, Percentage | 8.90% | 10.70% |
Retail | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 255,577 | $ 142,266 |
Commercial mortgage loans, Percentage | 9.00% | 11.00% |
Commercial mortgage loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 2,666,175 | $ 1,273,821 |
Commercial mortgage loans, Percentage | 93.90% | 98.50% |
Agricultural property loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 172,336 | $ 19,577 |
Commercial mortgage loans, Percentage | 6.10% | 1.50% |
Investments (Allowance for Cred
Investments (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance, beginning of year | $ 4,552 | $ 1,768 | $ 2,065 |
Cumulative effect of adoption of ASU 2016-13 | 2,487 | ||
Addition to (release of) allowance for expected losses | 1,399 | 297 | (297) |
Total ending balance | 5,951 | 4,552 | 1,768 |
Commercial mortgage loans | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance, beginning of year | 4,546 | 1,743 | 2,026 |
Cumulative effect of adoption of ASU 2016-13 | 2,495 | ||
Addition to (release of) allowance for expected losses | 1,301 | 308 | (283) |
Total ending balance | 5,847 | 4,546 | 1,743 |
Agricultural Property Loans | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance, beginning of year | 6 | 25 | 39 |
Cumulative effect of adoption of ASU 2016-13 | (8) | ||
Addition to (release of) allowance for expected losses | 98 | (11) | (14) |
Total ending balance | $ 104 | $ 6 | $ 25 |
Investments (Credit Quality Ind
Investments (Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 2,838,511 | $ 1,293,398 |
Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 518,611 | 144,247 |
One Year Prior | 311,413 | 178,714 |
Two Year Prior | 544,189 | 197,134 |
Three Year Prior | 260,828 | 178,575 |
Four Year Prior | 309,083 | 264,083 |
Prior | 722,051 | 311,068 |
Recording investment gross of allowance for credit losses | 2,666,175 | 1,273,821 |
Commercial mortgage loans | ≥ 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 501,456 | 128,839 |
One Year Prior | 195,164 | 159,476 |
Two Year Prior | 481,289 | 177,098 |
Three Year Prior | 253,938 | 171,255 |
Four Year Prior | 289,443 | 238,010 |
Prior | 638,092 | 290,741 |
Recording investment gross of allowance for credit losses | 2,359,382 | 1,165,419 |
Commercial mortgage loans | 1.0X to 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 17,155 | 15,408 |
One Year Prior | 109,862 | 10,334 |
Two Year Prior | 39,577 | 7,134 |
Three Year Prior | 6,890 | 7,320 |
Four Year Prior | 7,100 | 26,073 |
Prior | 39,213 | 16,418 |
Recording investment gross of allowance for credit losses | 219,797 | 82,687 |
Commercial mortgage loans | Less than 1.0X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Year Prior | 6,387 | 8,904 |
Two Year Prior | 23,323 | 12,902 |
Three Year Prior | 0 | 0 |
Four Year Prior | 12,540 | 0 |
Prior | 44,746 | 3,909 |
Recording investment gross of allowance for credit losses | 86,996 | 25,715 |
Agricultural Property Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 98,579 | 0 |
One Year Prior | 26,581 | 0 |
Two Year Prior | 16,226 | 0 |
Three Year Prior | 6,463 | 6,486 |
Four Year Prior | 8,372 | 0 |
Prior | 16,115 | 13,091 |
Recording investment gross of allowance for credit losses | 172,336 | 19,577 |
Agricultural Property Loans | ≥ 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 98,579 | 0 |
One Year Prior | 26,581 | 0 |
Two Year Prior | 16,226 | 0 |
Three Year Prior | 6,463 | 6,486 |
Four Year Prior | 8,372 | 0 |
Prior | 15,300 | 12,276 |
Recording investment gross of allowance for credit losses | 171,521 | 18,762 |
Agricultural Property Loans | 1.0X to 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 0 | 0 |
Recording investment gross of allowance for credit losses | 0 | 0 |
Agricultural Property Loans | Less than 1.0X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 815 | 815 |
Recording investment gross of allowance for credit losses | 815 | 815 |
0%-59.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 47,161 | 10,645 |
One Year Prior | 0 | 47,284 |
Two Year Prior | 179,682 | 33,443 |
Three Year Prior | 76,656 | 92,410 |
Four Year Prior | 126,934 | 162,030 |
Prior | 553,022 | 251,903 |
Recording investment gross of allowance for credit losses | 983,455 | 597,715 |
0%-59.99% | Agricultural Property Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 98,579 | 0 |
One Year Prior | 26,581 | 0 |
Two Year Prior | 16,226 | 0 |
Three Year Prior | 6,463 | 6,486 |
Four Year Prior | 8,372 | 0 |
Prior | 16,115 | 13,091 |
Recording investment gross of allowance for credit losses | 172,336 | 19,577 |
60%-69.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 307,999 | 69,819 |
One Year Prior | 225,330 | 95,331 |
Two Year Prior | 289,322 | 141,260 |
Three Year Prior | 170,444 | 52,710 |
Four Year Prior | 126,159 | 80,875 |
Prior | 116,654 | 43,823 |
Recording investment gross of allowance for credit losses | 1,235,908 | 483,818 |
60%-69.99% | Agricultural Property Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 0 | 0 |
Recording investment gross of allowance for credit losses | 0 | 0 |
70%-79.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 163,451 | 63,783 |
One Year Prior | 86,083 | 36,099 |
Two Year Prior | 75,185 | 22,431 |
Three Year Prior | 13,728 | 32,476 |
Four Year Prior | 55,032 | 21,178 |
Prior | 51,203 | 15,342 |
Recording investment gross of allowance for credit losses | 444,682 | 191,309 |
70%-79.99% | Agricultural Property Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 0 | 0 |
Recording investment gross of allowance for credit losses | 0 | 0 |
80% or greater | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 979 |
Four Year Prior | 958 | 0 |
Prior | 1,172 | 0 |
Recording investment gross of allowance for credit losses | 2,130 | 979 |
80% or greater | Agricultural Property Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 0 | 0 |
Recording investment gross of allowance for credit losses | $ 0 | $ 0 |
Investments (Analysis of Past D
Investments (Analysis of Past Due Commercial Mortgage, Agricultural, and Other Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 2,838,511 | $ 1,293,398 |
Non-Accrual Status | 0 | 0 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 2,838,511 | 1,293,398 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Commercial mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 2,666,175 | 1,273,821 |
Non-Accrual Status | 0 | 0 |
Commercial mortgage loans | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 2,666,175 | 1,273,821 |
Commercial mortgage loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Commercial mortgage loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Commercial mortgage loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Agricultural Loan | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 172,336 | 19,577 |
Non-Accrual Status | 0 | 0 |
Agricultural Loan | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 172,336 | 19,577 |
Agricultural Loan | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Agricultural Loan | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Agricultural Loan | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Interest | $ 0 | $ 0 |
Investments (Other Invested Ass
Investments (Other Invested Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Invested Assets [Line Items] | ||
Other invested assets | $ 1,209,925 | $ 520,955 |
Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 887,706 | 458,790 |
Company’s investment in separate accounts | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 53,694 | 44,018 |
Derivative Instruments | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 268,525 | 18,147 |
Equity Method | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 808,227 | 381,998 |
Equity Method | Private equity | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 286,141 | 241,493 |
Equity Method | Hedge funds | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 432,749 | 77,311 |
Equity Method | Real estate-related | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 89,337 | 63,194 |
Fair Value | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 79,479 | 76,792 |
Fair Value | Private equity | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 69,137 | 65,436 |
Fair Value | Hedge funds | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 481 | 499 |
Fair Value | Real estate-related | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | $ 9,861 | $ 10,857 |
Investments (Equity Method Inve
Investments (Equity Method Investments, Statement of Financial Position) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Equity Method Investments [Line Items] | ||
Invested assets | $ 221,661,364 | $ 208,308,100 |
Total Liabilities | 215,706,270 | 204,260,384 |
Partners' capital | 5,955,094 | 4,047,716 |
Total liabilities and partners’ capital | 221,661,364 | 208,308,100 |
Equity Method Investment | ||
Schedule of Equity Method Investments [Line Items] | ||
Invested assets | 72,416,906 | 12,952,942 |
Total Liabilities | 12,120,390 | 90,444 |
Partners' capital | 60,296,516 | 12,862,498 |
Total liabilities and partners’ capital | 72,416,906 | 12,952,942 |
Total liabilities and partners’ capital included above | 746,870 | 348,267 |
Equity in LP/LLC interests not included above | 201,541 | 175,024 |
Carrying value | $ 948,411 | $ 523,291 |
Investments (Equity Method In_2
Investments (Equity Method Investments, Statement of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments [Abstract] | |||
Total Revenue | $ 11,031,051 | $ 565,409 | $ 819,904 |
Total Expenses | (2,044,942) | (201,644) | (200,666) |
Net earnings (losses) | 8,986,109 | 363,765 | 619,238 |
Earnings in net earnings (losses) included above | 62,173 | 8,644 | 24,971 |
Equity in net earnings (losses) of LP/LLC interests not included above | 28,765 | 25,859 | 5,077 |
Net income (loss) | $ 90,938 | $ 34,503 | $ 30,048 |
Investments (Accrued Investment
Investments (Accrued Investments Income) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Net Investment Income | ||
Accrued investment income | $ 160,027 | $ 93,613 |
Fixed Maturities | ||
Net Investment Income | ||
Accrued investment income | 117,216 | 54,565 |
Equity securities | ||
Net Investment Income | ||
Accrued investment income | 2 | 1 |
Commercial mortgage and other loans | ||
Net Investment Income | ||
Accrued investment income | 7,025 | 3,610 |
Policy loans | ||
Net Investment Income | ||
Accrued investment income | 35,153 | 35,374 |
Other Invested Assets | ||
Net Investment Income | ||
Accrued investment income | 254 | 0 |
Short-term investments and cash equivalents | ||
Net Investment Income | ||
Accrued investment income | $ 377 | $ 63 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross Investment Income | $ 577,152 | $ 387,240 | $ 411,900 |
Less: investment expenses | (26,917) | (19,890) | (18,103) |
Net investment income | 550,235 | 367,350 | 393,797 |
Equity securities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross Investment Income | 530 | 410 | 856 |
Commercial mortgage and other loans | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross Investment Income | 63,548 | 50,534 | 57,886 |
Policy loans | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross Investment Income | 69,602 | 70,363 | 68,485 |
Other Invested Assets | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross Investment Income | 104,375 | 36,684 | 38,577 |
Short-term investments and cash equivalents | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross Investment Income | 712 | 3,219 | 9,266 |
Available-for-sale | Fixed Maturities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross Investment Income | 299,607 | 224,262 | 235,456 |
Trading | Fixed Maturities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross Investment Income | $ 38,778 | $ 1,768 | $ 1,374 |
Investments (Realized Investmen
Investments (Realized Investment Gains Losses, Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Gain (Loss) on Investments [Line Items] | |||
Realized investment gains (losses), net | $ (5,295,406) | $ (62,976) | $ (116,749) |
Fixed Maturities | |||
Schedule of Gain (Loss) on Investments [Line Items] | |||
Realized investment gains (losses), net | (3,514) | (7,236) | 46,738 |
Commercial mortgage and other loans | |||
Schedule of Gain (Loss) on Investments [Line Items] | |||
Realized investment gains (losses), net | 1,535 | (226) | 297 |
Other Invested Assets | |||
Schedule of Gain (Loss) on Investments [Line Items] | |||
Realized investment gains (losses), net | (2,737) | (287) | (3,400) |
Derivatives | |||
Schedule of Gain (Loss) on Investments [Line Items] | |||
Realized investment gains (losses), net | (5,291,043) | (55,003) | (160,368) |
Short-term investments and cash equivalents | |||
Schedule of Gain (Loss) on Investments [Line Items] | |||
Realized investment gains (losses), net | $ 353 | $ (224) | $ (16) |
Investments (Net Unrealized Gai
Investments (Net Unrealized Gains Losses on Investments by Asset Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Gain (Loss) on Securities [Line Items] | |||
Net Unrealized Gains (Losses) on Investments | $ 586,389 | $ 849,349 | $ 425,180 |
Fixed Maturities | Available-for-sale Securities | OTTI | |||
Gain (Loss) on Securities [Line Items] | |||
Net Unrealized Gains (Losses) on Investments | 1,568 | ||
Fixed Maturities | Available-for-sale Securities | All other | |||
Gain (Loss) on Securities [Line Items] | |||
Net Unrealized Gains (Losses) on Investments | 397,136 | ||
Fixed Maturities | Available-for-sale Securities | With an allowance | |||
Gain (Loss) on Securities [Line Items] | |||
Net Unrealized Gains (Losses) on Investments | 3,685 | 0 | |
Fixed Maturities | Available-for-sale Securities | Without an allowance | |||
Gain (Loss) on Securities [Line Items] | |||
Net Unrealized Gains (Losses) on Investments | 540,881 | 857,599 | |
Derivatives designated as cash flow hedges | |||
Gain (Loss) on Securities [Line Items] | |||
Net Unrealized Gains (Losses) on Investments | 39,896 | (8,112) | 26,126 |
Affiliated notes | |||
Gain (Loss) on Securities [Line Items] | |||
Net Unrealized Gains (Losses) on Investments | 73 | 4,024 | 4,715 |
Other invested assets | |||
Gain (Loss) on Securities [Line Items] | |||
Net Unrealized Gains (Losses) on Investments | $ 1,854 | $ (4,162) | $ (4,365) |
Investments (Repurchase Agreeme
Investments (Repurchase Agreements and Securities Lending) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total Cash collateral for loaned securities | $ 3,004 | $ 2,725 |
Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total Cash collateral for loaned securities | 3,004 | 2,725 |
Up 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total Cash collateral for loaned securities | 0 | 0 |
30 days or greater | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total Cash collateral for loaned securities | 0 | 0 |
U.S. public corporate securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total Cash collateral for loaned securities | 3,004 | 0 |
U.S. public corporate securities | Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total Cash collateral for loaned securities | 3,004 | 0 |
U.S. public corporate securities | Up 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total Cash collateral for loaned securities | 0 | 0 |
Foreign public corporate securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total Cash collateral for loaned securities | 0 | 2,725 |
Foreign public corporate securities | Overnight and Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total Cash collateral for loaned securities | 0 | 2,725 |
Foreign public corporate securities | Up 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total Cash collateral for loaned securities | $ 0 | $ 0 |
Investments (Securities Pledged
Investments (Securities Pledged) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total securities pledged | $ 2,871 | $ 2,525 |
Total liabilities supported by pledged collateral | 3,004 | 2,725 |
Fixed Maturities | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total securities pledged | 2,871 | 2,525 |
Cash collateral for loaned securities | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total liabilities supported by pledged collateral | $ 3,004 | $ 2,725 |
Derivative Instruments (Gross N
Derivative Instruments (Gross Notional Amount and Fair Value of Derivatives Contracts) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Gross Notional | $ 187,608,681 | $ 5,030,826 |
Fair Value Assets | 7,086,534 | 397,546 |
Fair Value Liabilities | (12,573,983) | (265,826) |
Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Gross Notional | 889,896 | 864,560 |
Fair Value Assets | 37,314 | 27,539 |
Fair Value Liabilities | (6,900) | (49,316) |
Derivatives Designated as Hedge Accounting Instruments: | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Gross Notional | 3,344 | 3,486 |
Fair Value Assets | 55 | 203 |
Fair Value Liabilities | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Gross Notional | 886,552 | 861,074 |
Fair Value Assets | 37,259 | 27,336 |
Fair Value Liabilities | (6,900) | (49,316) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Gross Notional | 186,718,785 | 4,166,266 |
Fair Value Assets | 7,049,220 | 370,007 |
Fair Value Liabilities | (12,567,083) | (216,510) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Gross Notional | 130,358,860 | 663,050 |
Fair Value Assets | 5,698,740 | 57,024 |
Fair Value Liabilities | (10,348,130) | (11,117) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Future | ||
Derivative [Line Items] | ||
Gross Notional | 4,109,300 | 57,700 |
Fair Value Assets | 2,876 | 198 |
Fair Value Liabilities | (2,709) | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Forwards | ||
Derivative [Line Items] | ||
Gross Notional | 119,653 | 55,292 |
Fair Value Assets | 842 | 5 |
Fair Value Liabilities | (1,063) | (1,322) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Default Swaps | ||
Derivative [Line Items] | ||
Gross Notional | 306,900 | 2,313 |
Fair Value Assets | 24,789 | 0 |
Fair Value Liabilities | 0 | (18) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Gross Notional | 2,139,523 | 143,011 |
Fair Value Assets | 68,477 | 6,584 |
Fair Value Liabilities | (23,251) | (7,286) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Options | ||
Derivative [Line Items] | ||
Gross Notional | 19,461,881 | 3,244,900 |
Fair Value Assets | 902,050 | 306,196 |
Fair Value Liabilities | (1,535,272) | (196,767) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | interest rate forward | ||
Derivative [Line Items] | ||
Gross Notional | 195,000 | 0 |
Fair Value Assets | 3,760 | 0 |
Fair Value Liabilities | (991) | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Option | ||
Derivative [Line Items] | ||
Gross Notional | 9,883,000 | 0 |
Fair Value Assets | 280,323 | 0 |
Fair Value Liabilities | (173,863) | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Total Return Swap | ||
Derivative [Line Items] | ||
Gross Notional | 15,129,666 | 0 |
Fair Value Assets | 66,627 | 0 |
Fair Value Liabilities | (475,209) | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Futures | ||
Derivative [Line Items] | ||
Gross Notional | 5,015,002 | 0 |
Fair Value Assets | 736 | 0 |
Fair Value Liabilities | $ (6,595) | $ 0 |
Derivative Instruments (Offsett
Derivative Instruments (Offsetting Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Offsetting of Financial Assets, Derivatives | ||
Gross Amounts of Recognized Financial Instruments | $ 7,086,534 | $ 397,546 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (6,818,009) | (379,399) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 268,525 | 18,147 |
Financial Instruments/Collateral | 0 | (14,572) |
Net Amount | 268,525 | 3,575 |
Securities purchased under agreements to resell | ||
Gross Amounts of Recognized Financial Instruments | 185,000 | 0 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Consolidated Statement of Financial Position | 185,000 | 0 |
Financial Instruments/Collateral | (185,000) | 0 |
Net Amount | 0 | 0 |
Total Assets | ||
Gross Amounts of Recognized Financial Instruments | 7,271,534 | 397,546 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (6,818,009) | (379,399) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 453,525 | 18,147 |
Financial Instruments/Collateral | (185,000) | (14,572) |
Net Amount | 268,525 | 3,575 |
Offsetting of Financial Liabilities, Derivatives | ||
Gross Amounts of Recognized Financial Instruments | 12,573,983 | 265,826 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (12,568,082) | (265,826) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 5,901 | 0 |
Financial Instruments/Collateral | (5,901) | 0 |
Net Amount | 0 | 0 |
Securities sold under agreements to repurchase | ||
Gross Amounts of Recognized Financial Instruments | 0 | 0 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Consolidated Statement of Financial Position | 0 | 0 |
Financial Instruments/Collateral | 0 | 0 |
Net Amount | 0 | 0 |
Total Liabilities | ||
Gross Amounts of Recognized Financial Instruments | 12,573,983 | 265,826 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (12,568,082) | (265,826) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 5,901 | 0 |
Financial Instruments/Collateral | (5,901) | 0 |
Net Amount | $ 0 | $ 0 |
Derivative Instruments (Financi
Derivative Instruments (Financial Statement Classification and Impact of Derivatives Used in Qualifying and Non-qualifying Hedge Relationships) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | $ (5,291,043) | $ (55,003) | $ (160,368) |
Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 16,030 | 10,681 | 9,007 |
Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 11,198 | (10,270) | (1,703) |
AOCI | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 48,008 | (34,238) | 4,031 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 1,359 | (358) | 425 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 16,030 | 10,681 | 9,007 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 11,119 | (10,161) | (1,698) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | AOCI | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 48,008 | (34,238) | 4,031 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate Swaps | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 2 | (44) | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate Swaps | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 47 | 21 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate Swaps | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate Swaps | AOCI | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | (161) | 284 | (50) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 1,357 | (314) | 425 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 15,983 | 10,660 | 9,007 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 11,119 | (10,161) | (1,698) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | AOCI | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 48,169 | (34,522) | 4,081 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | (5,292,402) | (54,645) | (160,793) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 79 | (109) | (5) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | AOCI | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Contract | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | (20,596) | 17,000 | 18,609 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Contract | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Contract | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Contract | AOCI | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 2,006 | (2,560) | 20 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | AOCI | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 44,350 | (4,130) | 3,485 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 79 | (109) | (5) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | AOCI | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 2,892 | (284) | (1) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | AOCI | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | (944,765) | 37,480 | 74,068 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | AOCI | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Realized Investment Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | (4,376,289) | (102,151) | (256,974) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Other Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | AOCI | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain (loss) on derivative, net | $ 0 | $ 0 | $ 0 |
Derivative Instruments (Current
Derivative Instruments (Current Period Cash Flow Hedges in AOCI (loss) before Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Cumulative Effect of New ASU in Period of Adoption | $ (27) | ||
Cash flow hedges in AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Balance, beginning | $ (8,112) | $ 26,126 | 22,122 |
Amount recorded in AOCI | 76,516 | (34,076) | 11,765 |
Amount reclassified into current period earnings | (28,508) | (162) | (7,734) |
Balance, ending | 39,896 | (8,112) | 26,126 |
Interest Rate Contract | Accumulated Gain (Loss), Net, Cash Flow Hedge | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Amount recorded in AOCI | (112) | 261 | (50) |
Amount reclassified into current period earnings | (49) | 23 | |
Currency/Interest Rate | Accumulated Gain (Loss), Net, Cash Flow Hedge | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Amount recorded in AOCI | 76,628 | (34,337) | 11,815 |
Amount reclassified into current period earnings | $ (28,459) | $ (185) | $ (7,734) |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | ||
Credit Derivative, Purchased Credit Protection | $ 150 | $ 2 |
Credit Risk Derivatives, at Fair Value, Net Asset (Liability) (less than) | 14 | 0 |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 11 | |
Credit Default Swap, Selling Protection | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 157 | 0 |
Credit Risk Derivatives, at Fair Value, Net Asset (Liability) (less than) | 11 | 0 |
Credit Default Swap, Selling Protection | NAIC 6 | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 100 | |
Credit Default Swap, Selling Protection | NAIC 3 | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 57 | |
Future policy benefits | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net Liability | (9,048) | (13,228) |
Reinsurance recoverables | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net Liability | 931 | 13,240 |
Policyholders' account balances | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net Liability | (3,246) | (1,155) |
Other assets | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net Liability | 73 | 0 |
Other Liabilities | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net Liability | $ (13) | $ 0 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities (Balances of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | $ 13,278,166 | $ 7,012,631 |
Fixed maturities, trading | 3,302,392 | 82,482 |
Equity securities | 111,267 | 108,457 |
Other invested assets | 1,209,925 | 520,955 |
Other assets | 1,140,948 | 417,508 |
Reinsurance recoverables | 38,598,767 | 48,367,096 |
Receivables from parent and affiliates | 278,131 | 266,473 |
Separate account assets | 149,797,828 | 145,740,422 |
TOTAL ASSETS | 221,661,364 | 208,308,100 |
Payables to parent and affiliates | 31,775 | 75,990 |
Other liabilities | 2,264,477 | 1,694,492 |
Total Liabilities | 215,706,270 | 204,260,384 |
Future policy benefits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net Liability | 9,048,000 | 13,228,000 |
Embedded Derivative, Fair Value of Embedded Derivative Gross Asset | 610,000 | 483,000 |
Embedded Derivative, Fair Value of Embedded Derivative Gross Liability | 9,658,000 | 13,711,000 |
Other Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net Liability | 13,000 | 0 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 13,278,166 | 7,012,631 |
Fixed maturities, trading | 3,302,392 | 82,482 |
Equity securities | 111,267 | 108,457 |
Short-term investments | 145,437 | 49,997 |
Cash equivalents | 436,632 | 397,326 |
Other invested assets | 268,525 | 18,147 |
Other assets | 72,937 | 0 |
Reinsurance recoverables | 931,207 | 13,239,539 |
Receivables from parent and affiliates | 162,045 | 111,970 |
Subtotal excluding separate account assets | 18,708,608 | 21,020,549 |
Separate account assets | 144,111,658 | 140,583,009 |
TOTAL ASSETS | 162,820,266 | 161,603,558 |
Future policy benefits | 9,047,956 | 13,227,814 |
Policyholders’ account balances | 3,245,773 | 1,155,274 |
Payables to parent and affiliates | 0 | 0 |
Other liabilities | 18,525 | 0 |
Total Liabilities | 12,312,254 | 14,383,088 |
Assets Netting | (6,818,009) | (379,399) |
Liabilities Netting | (12,568,082) | (265,826) |
Netting | (5,750,100) | 113,600 |
Fair Value, Measurements, Recurring | Other invested assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Netting | (6,818,009) | (379,399) |
Fair Value, Measurements, Recurring | Payables to parent and affiliates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Netting | (12,563,253) | (265,826) |
Fair Value, Measurements, Recurring | Other Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities Netting | (4,829) | |
Fair Value, Measurements, Recurring | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 333,940 | 77,855 |
Fair Value, Measurements, Recurring | Obligations of U.S. states and their political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 630,521 | 517,951 |
Fair Value, Measurements, Recurring | Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 350,471 | 250,855 |
Fair Value, Measurements, Recurring | U.S. corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 5,131,872 | 2,929,434 |
Fair Value, Measurements, Recurring | U.S. corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 2,004,875 | 1,012,056 |
Fair Value, Measurements, Recurring | Foreign corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 929,902 | 320,730 |
Fair Value, Measurements, Recurring | Foreign corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 2,753,911 | 1,091,930 |
Fair Value, Measurements, Recurring | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 547,310 | 237,638 |
Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 575,184 | 520,947 |
Fair Value, Measurements, Recurring | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 20,180 | 53,235 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fixed maturities, trading | 0 | 0 |
Equity securities | 58,160 | 100,268 |
Short-term investments | 9,997 | 49,997 |
Cash equivalents | 13,999 | 49,996 |
Other invested assets | 246,097 | 198 |
Other assets | 0 | 0 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 0 | 0 |
Subtotal excluding separate account assets | 328,253 | 200,459 |
Separate account assets | 52,100 | 0 |
TOTAL ASSETS | 380,353 | 200,459 |
Future policy benefits | 0 | 0 |
Policyholders’ account balances | 0 | 0 |
Payables to parent and affiliates | 0 | 0 |
Other liabilities | 10,730 | 0 |
Total Liabilities | 10,730 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Obligations of U.S. states and their political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 12,718,438 | 6,780,627 |
Fixed maturities, trading | 3,302,392 | 81,727 |
Equity securities | 40,635 | 300 |
Short-term investments | 135,440 | 0 |
Cash equivalents | 422,633 | 347,330 |
Other invested assets | 6,840,437 | 397,348 |
Other assets | 0 | 0 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 162,045 | 111,970 |
Subtotal excluding separate account assets | 23,622,020 | 7,719,302 |
Separate account assets | 144,059,558 | 140,583,009 |
TOTAL ASSETS | 167,681,578 | 148,302,311 |
Future policy benefits | 0 | 0 |
Policyholders’ account balances | 0 | 0 |
Payables to parent and affiliates | 12,563,253 | 265,826 |
Other liabilities | 12,624 | 0 |
Total Liabilities | 12,575,877 | 265,826 |
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 333,940 | 22,855 |
Fair Value, Measurements, Recurring | Level 2 | Obligations of U.S. states and their political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 630,521 | 517,951 |
Fair Value, Measurements, Recurring | Level 2 | Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 350,321 | 250,692 |
Fair Value, Measurements, Recurring | Level 2 | U.S. corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 5,131,872 | 2,929,431 |
Fair Value, Measurements, Recurring | Level 2 | U.S. corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 1,873,370 | 977,423 |
Fair Value, Measurements, Recurring | Level 2 | Foreign corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 921,008 | 311,407 |
Fair Value, Measurements, Recurring | Level 2 | Foreign corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 2,508,676 | 961,113 |
Fair Value, Measurements, Recurring | Level 2 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 484,861 | 235,573 |
Fair Value, Measurements, Recurring | Level 2 | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 463,689 | 520,947 |
Fair Value, Measurements, Recurring | Level 2 | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 20,180 | 53,235 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 559,728 | 232,004 |
Fixed maturities, trading | 0 | 755 |
Equity securities | 12,472 | 7,889 |
Short-term investments | 0 | 0 |
Cash equivalents | 0 | 0 |
Other invested assets | 0 | 0 |
Other assets | 72,937 | 0 |
Reinsurance recoverables | 931,207 | 13,239,539 |
Receivables from parent and affiliates | 0 | 0 |
Subtotal excluding separate account assets | 1,576,344 | 13,480,187 |
Separate account assets | 0 | 0 |
TOTAL ASSETS | 1,576,344 | 13,480,187 |
Future policy benefits | 9,047,956 | 13,227,814 |
Policyholders’ account balances | 3,245,773 | 1,155,274 |
Payables to parent and affiliates | 0 | 0 |
Other liabilities | 0 | 0 |
Total Liabilities | 12,293,729 | 14,383,088 |
Fair Value, Measurements, Recurring | Level 3 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 55,000 |
Fair Value, Measurements, Recurring | Level 3 | Obligations of U.S. states and their political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Foreign government bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 150 | 163 |
Fair Value, Measurements, Recurring | Level 3 | U.S. corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 3 |
Fair Value, Measurements, Recurring | Level 3 | U.S. corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 131,505 | 34,633 |
Fair Value, Measurements, Recurring | Level 3 | Foreign corporate public securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 8,894 | 9,323 |
Fair Value, Measurements, Recurring | Level 3 | Foreign corporate private securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 245,235 | 130,817 |
Fair Value, Measurements, Recurring | Level 3 | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 62,449 | 2,065 |
Fair Value, Measurements, Recurring | Level 3 | Commercial mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 111,495 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Other invested assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value investment measured at NAV per share | 79,000 | 77,000 |
Separate Account Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value investment measured at NAV per share | $ 5,686,000 | $ 5,157,000 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities (Quantitative Info for Level 3 Inputs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Corporate securities | $ 106,174 | $ 105,508 |
Fair Value, Measurements, Recurring | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Future policy benefits | 9,047,956 | 13,227,814 |
Policyholders’ account balances | $ 3,245,773 | 1,155,274 |
Level 3 | Minimum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Fair Value Inputs, Policyholder Age | 45 years | |
Level 3 | Minimum | Future policy benefits | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Mortality rate | 0.00% | |
Level 3 | Maximum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Fair Value Inputs, Policyholder Age | 90 years | |
Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Future policy benefits | $ 9,047,956 | 13,227,814 |
Policyholders’ account balances | $ 3,245,773 | $ 1,155,274 |
Level 3 | Internal | Minimum | Discounted cash flow | Future policy benefits | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 1.00% | 1.00% |
Spread over LIBOR | 0.03% | 0.06% |
Utilization rate | 39.00% | 39.00% |
Withdrawal rate (greater than maximum range) | 76.00% | 76.00% |
Mortality rate | 0.00% | 0.00% |
Equity volatility curve | 16.00% | 18.00% |
Level 3 | Internal | Minimum | Discounted cash flow | Policyholders' account balances | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 1.00% | 1.00% |
Spread over LIBOR | 0.03% | 0.06% |
Mortality rate | 0.00% | 0.00% |
Equity volatility curve | 6.00% | 15.00% |
Level 3 | Internal | Minimum | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 1.65% | 0.99% |
Liquidation value | 62.58% | |
Level 3 | Internal | Minimum | Market comparables | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA multiples | 4.9 | |
Level 3 | Internal | Maximum | Discounted cash flow | Future policy benefits | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 20.00% | 20.00% |
Spread over LIBOR | 1.13% | 1.17% |
Utilization rate | 96.00% | 96.00% |
Withdrawal rate (greater than maximum range) | 100.00% | 100.00% |
Mortality rate | 15.00% | 15.00% |
Equity volatility curve | 25.00% | 26.00% |
Level 3 | Internal | Maximum | Discounted cash flow | Policyholders' account balances | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 42.00% | 6.00% |
Spread over LIBOR | 1.13% | 1.17% |
Mortality rate | 23.00% | 24.00% |
Equity volatility curve | 31.00% | 30.00% |
Level 3 | Internal | Maximum | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 20.00% | 11.38% |
Liquidation value | 62.58% | |
Level 3 | Internal | Maximum | Market comparables | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA multiples | 19.2 | |
Level 3 | Internal | Weighted Average | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 4.57% | 3.44% |
Liquidation value | 62.58% | |
Level 3 | Internal | Weighted Average | Market comparables | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA multiples | 9 | |
Level 3 | Internal | Fair Value, Measurements, Recurring | Future policy benefits | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Future policy benefits | $ 9,047,956 | $ 13,227,814 |
Level 3 | Internal | Fair Value, Measurements, Recurring | Policyholders' account balances | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Policyholders’ account balances | 3,245,773 | 1,155,274 |
Level 3 | Internal | Fair Value, Measurements, Recurring | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Corporate securities | 312,139 | 151,554 |
Level 3 | Internal | Fair Value, Measurements, Recurring | Reinsurance recoverables | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Reinsurance recoverables | $ 931,207 | $ 13,239,539 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities (Changes in Level 3 Assets and Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | $ 7,889 | $ 9,898 | |
Purchases | 0 | 0 | |
Sales | 0 | (4,830) | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Other | 3,874 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | 12,472 | 7,889 | $ 9,898 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 709 | 2,821 | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 709 | 1,211 | |
Equity securities | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Equity securities | Other income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 709 | 2,821 | 1,668 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 709 | 1,211 | 1,534 |
Equity securities | Included in other comprehensive income (loss) | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | |
Equity securities | Net investment income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Other invested assets | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 0 | 4 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Other | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | 0 | 0 | 4 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | (4) | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | (4) | |
Other invested assets | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | (4) | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | (4) | 0 |
Other invested assets | Other income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Other invested assets | Included in other comprehensive income (loss) | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | |
Other invested assets | Net investment income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Short-term investments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 0 | 0 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (1,871) | 0 | |
Other | 1,690 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | 0 | 0 | 0 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 181 | 0 | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | |
Short-term investments | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 181 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Short-term investments | Other income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Short-term investments | Included in other comprehensive income (loss) | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | |
Short-term investments | Net investment income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Cash equivalents | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 0 | 0 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (1,377) | 0 | |
Other | 1,230 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | 0 | 0 | 0 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 147 | 0 | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | |
Cash equivalents | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 147 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Cash equivalents | Other income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Cash equivalents | Included in other comprehensive income (loss) | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | |
Cash equivalents | Net investment income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Other assets | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 0 | 0 | |
Purchases | 1,170 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (899) | 0 | |
Other | 71,408 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | 72,937 | 0 | 0 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 1,258 | 0 | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 359 | 0 | |
Other assets | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 1,258 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 359 | 0 | 0 |
Other assets | Other income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Other assets | Included in other comprehensive income (loss) | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | |
Other assets | Net investment income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Reinsurance recoverables | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 13,239,539 | 8,539,671 | |
Purchases | 629,259 | 1,095,793 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Other | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | 931,207 | 13,239,539 | 8,539,671 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (12,937,591) | 3,604,075 | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (545,001) | 3,889,923 | |
Reinsurance recoverables | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (12,937,591) | 3,604,075 | 1,936,363 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (545,001) | 3,889,923 | 2,142,421 |
Reinsurance recoverables | Other income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Reinsurance recoverables | Included in other comprehensive income (loss) | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | |
Reinsurance recoverables | Net investment income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Receivables from parent and affiliates | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 0 | 3,135 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | (3,158) | |
Other | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | 0 | 0 | 3,135 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 23 | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | |
Receivables from parent and affiliates | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Receivables from parent and affiliates | Other income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Receivables from parent and affiliates | Included in other comprehensive income (loss) | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | |
Receivables from parent and affiliates | Net investment income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 23 | 190 |
Future policy benefits | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | (13,227,814) | (8,529,566) | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | (1,101,695) | (1,087,967) | |
Settlements | 0 | 0 | |
Other | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | (9,047,956) | (13,227,814) | (8,529,566) |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 5,281,553 | (3,610,281) | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 4,647,753 | (3,896,128) | |
Future policy benefits | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 5,281,553 | (3,610,281) | (1,945,323) |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 4,647,753 | (3,896,128) | (2,151,380) |
Future policy benefits | Other income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Future policy benefits | Included in other comprehensive income (loss) | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | |
Future policy benefits | Net investment income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Policyholders' account balances | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | (1,155,274) | (962,351) | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | (265,807) | (162,724) | |
Settlements | 0 | 0 | |
Other | (1,746,371) | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | (3,245,773) | (1,155,274) | (962,351) |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (78,321) | (30,199) | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 5,476 | 3,853 | |
Policyholders' account balances | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (78,321) | (30,199) | (765,917) |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 5,476 | 3,853 | (759,661) |
Policyholders' account balances | Other income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Policyholders' account balances | Included in other comprehensive income (loss) | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | |
Policyholders' account balances | Net investment income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Available-for-sale | Fixed maturities | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (832) | (5,019) | (8,198) |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (1,778) | (4,773) | (8,467) |
Available-for-sale | Fixed maturities | Other income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Available-for-sale | Fixed maturities | Included in other comprehensive income (loss) | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (6,318) | 19,106 | 3,615 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (5,346) | 18,962 | |
Available-for-sale | Fixed maturities | Net investment income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 388 | 145 | 680 |
Available-for-sale | Fixed maturities | US government | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 55,000 | 38,671 | |
Purchases | 0 | 16,329 | |
Sales | (55,000) | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Other | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | 0 | 55,000 | 38,671 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | |
Available-for-sale | Fixed maturities | Foreign government | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 163 | 163 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Other | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | 150 | 163 | 163 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (13) | 0 | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (15) | (1) | |
Available-for-sale | Fixed maturities | Corporate securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 174,776 | 50,083 | |
Purchases | 95,294 | 11,121 | |
Sales | (5,085) | (3,680) | |
Issuances | 0 | 0 | |
Settlements | (28,690) | (7,850) | |
Other | 156,667 | (1,914) | |
Transfers into Level 3 | 9,313 | 114,695 | |
Transfers out of Level 3 | (5,727) | (2,394) | |
Fair Value, end of period | 385,634 | 174,776 | 50,083 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (10,914) | 14,715 | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (11,298) | 14,679 | |
Available-for-sale | Fixed maturities | Structured securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 2,065 | 2,001 | |
Purchases | 74,800 | 7,444 | |
Sales | (29) | (6) | |
Issuances | 0 | 0 | |
Settlements | (1,761) | (1,255) | |
Other | 32,859 | 0 | |
Transfers into Level 3 | 107,038 | 0 | |
Transfers out of Level 3 | (45,193) | (5,636) | |
Fair Value, end of period | 173,944 | 2,065 | 2,001 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 4,165 | (483) | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 4,189 | (489) | |
Trading | Fixed maturities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 755 | 668 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Other | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 801 | 0 | |
Fair Value, end of period | 0 | 755 | 668 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 46 | 87 | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 46 | 87 | |
Trading | Fixed maturities | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Trading | Fixed maturities | Other income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 46 | 87 | (83) |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 46 | 87 | (83) |
Trading | Fixed maturities | Included in other comprehensive income (loss) | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | |
Trading | Fixed maturities | Net investment income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | $ 0 | $ 0 | $ 0 |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities (Financial Instruments where Carrying Amounts and Fair Values May Differ) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||||
Policy loans | $ 1,327,485 | $ 1,323,681 | ||
Short-term Investments | 182,437 | |||
Cash and cash equivalents | 918,931 | 426,979 | $ 563,199 | $ 416,840 |
Accrued investment income | 160,027 | 93,613 | ||
Reinsurance recoverables | 38,598,767 | 48,367,096 | ||
Receivables from parent and affiliates | 278,131 | 266,473 | ||
Liabilities: | ||||
Cash collateral for loaned securities | 3,004 | 2,725 | ||
Fair Value | ||||
Assets: | ||||
Commercial mortgage and other loans | 2,883,710 | 1,359,422 | ||
Policy loans | 1,327,485 | 1,323,681 | ||
Short-term Investments | 37,000 | 0 | ||
Cash and cash equivalents | 482,299 | 29,653 | ||
Accrued investment income | 160,027 | 93,613 | ||
Reinsurance recoverables | 29,931 | 227,993 | ||
Receivables from parent and affiliates | 116,086 | 154,503 | ||
Other assets | 568,981 | 27,120 | ||
Total assets | 5,605,519 | 3,215,985 | ||
Liabilities: | ||||
Policyholders’ account balances - investment contracts | 3,947,337 | 1,714,576 | ||
Cash collateral for loaned securities | 3,004 | 2,725 | ||
Long-term debt to affiliates | 319,225 | 0 | ||
Payables to parent and affiliates | 31,775 | 75,990 | ||
Other liabilities | 898,879 | 415,889 | ||
Total liabilities | 5,200,220 | 2,209,180 | ||
Carrying Amount | ||||
Assets: | ||||
Commercial mortgage and other loans | 2,832,560 | 1,288,846 | ||
Policy loans | 1,327,485 | 1,323,681 | ||
Short-term Investments | 37,000 | 0 | ||
Cash and cash equivalents | 482,299 | 29,653 | ||
Accrued investment income | 160,027 | 93,613 | ||
Reinsurance recoverables | 28,883 | 217,637 | ||
Receivables from parent and affiliates | 116,086 | 154,503 | ||
Other assets | 568,981 | 27,120 | ||
Total assets | 5,553,321 | 3,135,053 | ||
Liabilities: | ||||
Policyholders’ account balances - investment contracts | 3,941,822 | 1,704,220 | ||
Cash collateral for loaned securities | 3,004 | 2,725 | ||
Long-term debt to affiliates | 320,362 | 0 | ||
Payables to parent and affiliates | 31,775 | 75,990 | ||
Other liabilities | 898,879 | 415,889 | ||
Total liabilities | 5,195,842 | 2,198,824 | ||
Level 1 | Fair Value | ||||
Assets: | ||||
Commercial mortgage and other loans | 0 | 0 | ||
Policy loans | 0 | 0 | ||
Short-term Investments | 37,000 | 0 | ||
Cash and cash equivalents | 297,299 | 29,653 | ||
Accrued investment income | 0 | 0 | ||
Reinsurance recoverables | 0 | 0 | ||
Receivables from parent and affiliates | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets | 334,299 | 29,653 | ||
Liabilities: | ||||
Policyholders’ account balances - investment contracts | 0 | 0 | ||
Cash collateral for loaned securities | 0 | 0 | ||
Long-term debt to affiliates | 0 | 0 | ||
Payables to parent and affiliates | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Level 2 | Fair Value | ||||
Assets: | ||||
Commercial mortgage and other loans | 0 | 0 | ||
Policy loans | 0 | 0 | ||
Short-term Investments | 0 | 0 | ||
Cash and cash equivalents | 185,000 | 0 | ||
Accrued investment income | 160,027 | 93,613 | ||
Reinsurance recoverables | 0 | 0 | ||
Receivables from parent and affiliates | 116,086 | 154,503 | ||
Other assets | 134,598 | 27,120 | ||
Total assets | 595,711 | 275,236 | ||
Liabilities: | ||||
Policyholders’ account balances - investment contracts | 1,356,850 | 1,428,043 | ||
Cash collateral for loaned securities | 3,004 | 2,725 | ||
Long-term debt to affiliates | 319,225 | 0 | ||
Payables to parent and affiliates | 31,775 | 75,990 | ||
Other liabilities | 864,788 | 415,889 | ||
Total liabilities | 2,575,642 | 1,922,647 | ||
Level 3 | Fair Value | ||||
Assets: | ||||
Commercial mortgage and other loans | 2,883,710 | 1,359,422 | ||
Policy loans | 1,327,485 | 1,323,681 | ||
Short-term Investments | 0 | 0 | ||
Cash and cash equivalents | 0 | 0 | ||
Accrued investment income | 0 | 0 | ||
Reinsurance recoverables | 29,931 | 227,993 | ||
Receivables from parent and affiliates | 0 | 0 | ||
Other assets | 434,383 | 0 | ||
Total assets | 4,675,509 | 2,911,096 | ||
Liabilities: | ||||
Policyholders’ account balances - investment contracts | 2,590,487 | 286,533 | ||
Cash collateral for loaned securities | 0 | 0 | ||
Long-term debt to affiliates | 0 | 0 | ||
Payables to parent and affiliates | 0 | 0 | ||
Other liabilities | 34,091 | 0 | ||
Total liabilities | $ 2,624,578 | $ 286,533 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs (Balance of and Changes in DAC) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance, beginning of year | $ 2,433,936 | $ 1,855,698 | $ 1,613,922 |
Capitalization of commissions, sales and issue expenses | 1,057,030 | 758,469 | 451,773 |
Amortization-Impact of assumption and experience unlocking and true-ups | 40,482 | (27,844) | (34,619) |
Amortization-All other | (382,600) | (112,718) | (78,699) |
Change due to unrealized investment gains and losses | (81,031) | (39,861) | (37,337) |
Other | 3,763,155 | 192 | (59,342) |
Balance, end of year | $ 6,830,972 | $ 2,433,936 | $ 1,855,698 |
Policyholders' Liabilities (Fut
Policyholders' Liabilities (Future Policy Benefits) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Individual annuities and supplementary contracts | $ 740,941 | $ 810,989 |
Other contract liabilities | 9,090,720 | 13,268,236 |
Total future policy benefits | 27,927,029 | 32,889,181 |
Domestic | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Life insurance | 18,095,368 | 17,167,209 |
Taiwan | ||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||
Life insurance | $ 0 | $ 1,642,747 |
Policyholders' Liabilities (Nar
Policyholders' Liabilities (Narrative) (Details) | Dec. 31, 2021 |
Individual nonparticipating Life Insurance | Domestic | Minimum | |
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | |
Liability for Future Policy Benefits, interest rate | 1.70% |
Individual nonparticipating Life Insurance | Domestic | Maximum | |
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | |
Liability for Future Policy Benefits, interest rate | 7.80% |
Individual and Group Annuities and Supplementary Contracts | |
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | |
Percentage of reserves based on interest rates in excess of 8% | 0.30% |
Individual and Group Annuities and Supplementary Contracts | Minimum | |
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | |
Liability for Future Policy Benefits, interest rate | 1.70% |
Individual and Group Annuities and Supplementary Contracts | Maximum | |
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | |
Liability for Future Policy Benefits, interest rate | 14.80% |
Other | Minimum | |
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | |
Liability for Future Policy Benefits, interest rate | 0.60% |
Liability for Policyholders' Account Balances, interest rate | 0.50% |
Other | Maximum | |
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | |
Liability for Future Policy Benefits, interest rate | 2.90% |
Liability for Policyholders' Account Balances, interest rate | 5.40% |
Interest-sensitive life contracts | Minimum | |
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | |
Liability for Policyholders' Account Balances, interest rate | 0.80% |
Interest-sensitive life contracts | Maximum | |
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | |
Liability for Policyholders' Account Balances, interest rate | 4.60% |
Individual annuities | Minimum | |
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | |
Liability for Policyholders' Account Balances, interest rate | 0.00% |
Individual annuities | Maximum | |
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | |
Liability for Policyholders' Account Balances, interest rate | 6.30% |
Guaranteed interest accounts | Minimum | |
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | |
Liability for Policyholders' Account Balances, interest rate | 1.00% |
Guaranteed interest accounts | Maximum | |
Liability for Future Policy Benefits and Policyholders' Account Balances, by Product Segment [Line Items] | |
Liability for Policyholders' Account Balances, interest rate | 10.00% |
Policyholders' Liabilities (Pol
Policyholders' Liabilities (Policyholders' Account Balances) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Liability for Policyholders' Account Balances, by Product Segment [Line Items] | ||
Total policyholders’ account balances | $ 35,361,795 | $ 23,857,574 |
Interest-sensitive life contracts | ||
Liability for Policyholders' Account Balances, by Product Segment [Line Items] | ||
Total policyholders’ account balances | 19,729,444 | 18,638,033 |
Individual annuities | ||
Liability for Policyholders' Account Balances, by Product Segment [Line Items] | ||
Total policyholders’ account balances | 14,150,233 | 3,637,196 |
Guaranteed interest accounts | ||
Liability for Policyholders' Account Balances, by Product Segment [Line Items] | ||
Total policyholders’ account balances | 125,249 | 154,284 |
Other | ||
Liability for Policyholders' Account Balances, by Product Segment [Line Items] | ||
Total policyholders’ account balances | $ 1,356,869 | $ 1,428,061 |
Certain Long-Duration Contrac_3
Certain Long-Duration Contracts with Guarantees (Variable Annuity, Variable Life, Variable Universal Life and Universal Life Contracts) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Annuity Contracts | Return of net deposits | In the Event of Death | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | $ 103,862,788 | $ 104,700,706 |
Net amount at risk | $ 27,872 | $ 18,336 |
Average attained age of contractholders | 69 years | 68 years |
Annuity Contracts | Minimum return or contract value | In the Event of Death | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | $ 19,634,387 | $ 19,949,435 |
Net amount at risk | $ 1,124,519 | $ 1,272,073 |
Average attained age of contractholders | 72 years | 71 years |
Annuity Contracts | Minimum return or contract value | At Annuitization / Accumulation | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | $ 113,689,139 | $ 114,832,594 |
Net amount at risk | $ 1,653,394 | $ 2,042,199 |
Average attained age of contractholders | 69 years | 68 years |
Average period remaining until earliest expected annuitization | 0 years | 0 years |
Variable Life, Variable Universal Life and Universal Life Contracts | In the Event of Death | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Separate account value | $ 4,473,502 | $ 4,087,733 |
General account value | 10,558,009 | 9,920,732 |
Net amount at risk | $ 149,872,088 | $ 146,158,176 |
Average attained age of contractholders | 58 years | 56 years |
Certain Long-Duration Contrac_4
Certain Long-Duration Contracts With Guarantees (Separate Account Investment Options) (Details) - Annuity Contracts - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Separate Account Investment [Line Items] | ||
Separate Account Investment Options | $ 120,211,053 | $ 121,141,825 |
Equity funds | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate Account Investment Options | 69,299,203 | 68,436,773 |
Bond funds | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate Account Investment Options | 47,895,089 | 51,126,536 |
Money market funds | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate Account Investment Options | $ 3,016,761 | $ 1,578,516 |
Certain Long-Duration Contrac_5
Certain Long-Duration Contracts with Guarantees (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Long-Duration Contracts, Assumptions Supporting Guarantee Obligations [Abstract] | ||
Deferred sales inducements | $ 374,649 | $ 0 |
Annuity Contracts | Market Value Adjusted | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account Investment Option | $ 3,300,000 | $ 3,500,000 |
Certain Long-Duration Contrac_6
Certain Long-Duration Contracts with Guarantees (Liabilities for Guarantee Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Beginning balance | $ 23,179,710 | $ 16,407,407 | $ 11,249,071 |
Incurred guarantee benefits | (3,104,965) | 6,185,375 | 4,469,472 |
Paid guarantee benefits | (213,847) | (165,619) | (138,843) |
Change in unrealized investment gains and losses | (373,154) | 752,547 | 827,707 |
Ending balance | 19,487,744 | 23,179,710 | 16,407,407 |
GMDB | Annuity Contracts | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Beginning balance | 569,063 | 460,501 | 411,568 |
Incurred guarantee benefits | (10,596) | 114,878 | 52,717 |
Paid guarantee benefits | (24,394) | (37,804) | (25,992) |
Change in unrealized investment gains and losses | (46,542) | 31,488 | 22,208 |
Ending balance | 487,531 | 569,063 | 460,501 |
GMDB | Variable Life, Variable Universal Life & Universal Life | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Beginning balance | 9,363,585 | 7,400,233 | 5,231,854 |
Incurred guarantee benefits | 1,089,139 | 1,368,759 | 1,473,762 |
Paid guarantee benefits | (189,453) | (126,148) | (110,642) |
Change in unrealized investment gains and losses | (326,128) | 720,741 | 805,259 |
Ending balance | 9,937,143 | 9,363,585 | 7,400,233 |
GMIB | Annuity Contracts | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Beginning balance | 19,248 | 17,107 | 16,810 |
Incurred guarantee benefits | (3,650) | 3,490 | 2,266 |
Paid guarantee benefits | 0 | (1,667) | (2,209) |
Change in unrealized investment gains and losses | (484) | 318 | 240 |
Ending balance | 15,114 | 19,248 | 17,107 |
GMWB/GMIWB/ GMAB | Annuity Contracts | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Beginning balance | 13,227,814 | 8,529,566 | 5,588,839 |
Incurred guarantee benefits | (4,179,858) | 4,698,248 | 2,940,727 |
Paid guarantee benefits | 0 | 0 | 0 |
Change in unrealized investment gains and losses | 0 | 0 | 0 |
Ending balance | $ 9,047,956 | $ 13,227,814 | $ 8,529,566 |
Certain Long-Duration Contrac_7
Certain Long-Duration Contracts with Guarantees (Sales Inducements) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Movement in Deferred Sales Inducements [Roll Forward] | |
Beginning Balance | $ 0 |
Capitalization | 167 |
Amortization - Impact of assumption and experience unlocking and true-ups | 16,286 |
Amortization - All Other | 37,737 |
Change in unrealized investment gains and losses | 7,669 |
Ending Balance | 374,649 |
Other | $ 388,264 |
Reinsurance (Balance Sheet Rein
Reinsurance (Balance Sheet Reinsurance Results) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Effects of Reinsurance [Line Items] | ||||
Reinsurance recoverables | $ 38,598,767 | $ 48,367,096 | ||
Policy loans | (1,327,485) | (1,323,681) | ||
Deferred policy acquisition costs | (6,830,972) | (2,433,936) | $ (1,855,698) | $ (1,613,922) |
Deferred sales inducements | (374,649) | 0 | ||
Other assets | 1,140,948 | 417,508 | ||
Other liabilities | 2,264,477 | 1,694,492 | ||
Impacts of Reinsurance | ||||
Effects of Reinsurance [Line Items] | ||||
Reinsurance recoverables | 38,598,767 | 48,367,096 | ||
Policy loans | (156,749) | (153,869) | ||
Deferred policy acquisition costs | (2,575,232) | (6,574,020) | ||
Deferred sales inducements | (37,905) | (445,493) | ||
Other assets | 353,669 | 233,364 | ||
Policyholders’ account balances | 12,005,839 | 4,773,439 | ||
Future policy benefits | 5,286,252 | 5,069,353 | ||
Other liabilities | 1,224,399 | 1,099,318 | ||
Unaffiliated | ||||
Effects of Reinsurance [Line Items] | ||||
Other assets | 0 | 0 | ||
Future policy benefits | 0 | 0 | ||
Other liabilities | $ 49,200 | $ 42,600 |
Reinsurance (Reinsurance Recove
Reinsurance (Reinsurance Recoverable by Counterparty) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | $ 38,598,767 | $ 48,367,096 |
PAR U | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 13,523,832 | 13,352,845 |
PALAC | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 7,198,504 | 15,941,123 |
PURC | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 5,830,441 | 5,368,831 |
PARCC | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 2,371,491 | 2,572,428 |
GUL Re | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 2,710,926 | 2,573,609 |
PAR Term | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 1,972,339 | 1,913,265 |
Prudential Insurance | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 2,082,551 | 2,421,226 |
Prudential of Taiwan | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 0 | 1,649,998 |
Term Re | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 1,953,063 | 1,766,978 |
DART | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 644,101 | 502,770 |
Lotus Re | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 32,039 | 0 |
Unaffiliated | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | $ 279,480 | $ 304,023 |
Reinsurance (Income Statement R
Reinsurance (Income Statement Reinsurance Results) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Premiums: | |||
Direct | $ 1,909,878 | $ 1,923,708 | $ 1,882,584 |
Assumed | 162 | 184 | 206 |
Ceded | (1,706,364) | (1,831,716) | (1,854,246) |
Net premiums | 203,676 | 92,176 | 28,544 |
Policy charges and fee income: | |||
Direct | 3,647,883 | 3,491,735 | 3,725,113 |
Assumed | 582,003 | 587,466 | 519,265 |
Ceded | (2,700,129) | (3,454,881) | (3,700,222) |
Net policy charges and fee income | 1,529,757 | 624,320 | 544,156 |
Net investment income: | |||
Direct | 555,404 | 372,822 | 398,762 |
Assumed | 1,049 | 1,579 | 1,631 |
Ceded | (6,218) | (7,051) | (6,596) |
Net investment income | 550,235 | 367,350 | 393,797 |
Asset administration fees: | |||
Direct | 403,359 | 360,438 | 355,118 |
Assumed | 0 | 0 | 0 |
Ceded | (201,182) | (341,300) | (339,062) |
Net asset administration fees | 202,177 | 19,138 | 16,056 |
Other income: | |||
Direct | 227,035 | 78,445 | 83,891 |
Assumed | (66) | (1) | (293) |
Ceded | 35,790 | 165 | (59) |
Amortization of reinsurance income | 4,449 | 4,647 | 21 |
Net other income | 267,208 | 83,256 | 83,560 |
Realized investment gains (losses), net: | |||
Direct | 7,656,388 | (3,593,799) | (1,912,241) |
Assumed | 18,171 | 0 | 0 |
Ceded | (12,969,965) | 3,530,823 | 1,795,492 |
Realized investment gains (losses), net | (5,295,406) | (62,976) | (116,749) |
Policyholders’ benefits (including change in reserves): | |||
Direct | 3,611,402 | 3,584,011 | 3,352,159 |
Assumed | 849,599 | 1,055,277 | 885,542 |
Ceded | (3,805,091) | (4,341,139) | (4,084,627) |
Net policyholders’ benefits (including change in reserves) | 655,910 | 298,149 | 153,074 |
Interest credited to policyholders’ account balances: | |||
Direct | 563,821 | 536,886 | 470,551 |
Assumed | 138,202 | 136,153 | 135,355 |
Ceded | (816,608) | (439,664) | (418,677) |
Net interest credited to policyholders’ account balances | (114,585) | 233,375 | 187,229 |
Net reinsurance expense allowances, net of capitalization and amortization | (2,265,350) | (1,589,113) | (1,772,111) |
Unaffiliated | |||
Premiums: | |||
Assumed | 200 | 200 | 200 |
Ceded | (19,800) | (10,500) | (600) |
Policy charges and fee income: | |||
Ceded | (65,000) | (54,000) | (34,000) |
Other income: | |||
Assumed | 0 | 0 | (300) |
Realized investment gains (losses), net: | |||
Ceded | (48,000) | 73,000 | 44,000 |
Policyholders’ benefits (including change in reserves): | |||
Assumed | 400 | 900 | 1,900 |
Ceded | $ (201,000) | $ (70,000) | $ (30,000) |
Reinsurance (Life Insurance In
Reinsurance (Life Insurance In Force) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Reinsurance Disclosures [Abstract] | |||
Direct gross life insurance face amount in force | $ 1,079,382,740 | $ 1,045,775,819 | $ 993,850,732 |
Assumed gross life insurance face amount in force | 37,822,851 | 38,818,752 | 39,877,183 |
Reinsurance ceded | (992,635,327) | (986,701,914) | (963,444,461) |
Net life insurance face amount in force | $ 124,570,264 | $ 97,892,657 | $ 70,283,454 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - USD ($) $ in Thousands | Jul. 01, 2019 | Jul. 01, 2017 | Jul. 01, 2012 | Dec. 31, 2010 | Dec. 31, 2009 | Jan. 31, 2001 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2016 | Dec. 31, 2013 | Dec. 31, 2017 | Dec. 31, 2013 |
Effects of Reinsurance [Line Items] | ||||||||||||||||
Ceded Premiums | $ (1,706,364) | $ (1,831,716) | $ (1,854,246) | |||||||||||||
Ceded Reserve Liabilities under Reinsurance Agreement | $ 419,200 | |||||||||||||||
Affiliated Entity | PAR U | ||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95.00% | 70.00% | ||||||||||||||
Affiliated Entity | PURC | ||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95.00% | 70.00% | ||||||||||||||
Affiliated Entity | PARCC | ||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 100.00% | 90.00% | ||||||||||||||
Ceded Premiums | $ (476,000) | |||||||||||||||
Ceded Expenses | $ (409,000) | |||||||||||||||
Affiliated Entity | GUL Re | ||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 30.00% | 95.00% | ||||||||||||||
Affiliated Entity | PAR Term | ||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 100.00% | 95.00% | ||||||||||||||
Ceded Premiums | $ (150,000) | |||||||||||||||
Ceded Expenses | $ (115,000) | |||||||||||||||
Affiliated Entity | Prudential of Taiwan | ||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||
Related Party Transaction, Term | 2 years | |||||||||||||||
Affiliated Entity | Term Re | ||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95.00% | |||||||||||||||
Affiliated Entity | Prudential Insurance | ||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 100.00% | |||||||||||||||
Affiliated Entity | DART | ||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95.00% | |||||||||||||||
Affiliated Entity | Union Hamilton Reinsurance, Ltd. | Quote Share Reinsurance | ||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 50.00% | |||||||||||||||
Reinsurance Retention Policy, Amount Retained | $ 3,300,000 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current tax expense (benefit): | |||
U.S. federal | $ 440,649 | $ (358,548) | $ 56,371 |
State and local | 5,002 | 0 | 0 |
Total | 445,651 | (358,548) | 56,371 |
Deferred tax expense (benefit): | |||
U.S. federal | (1,137,090) | 228,300 | (115,503) |
Total | (1,137,090) | 228,300 | (115,503) |
Total income tax expense (benefit) on income (loss) before equity in earnings of operating joint ventures | (691,439) | (130,248) | (59,132) |
Income tax expense (benefit) on equity in earnings of operating joint ventures | (147) | (518) | (1,773) |
Income tax expense (benefit) reported in equity related to: | |||
Other comprehensive income (loss) | (52,374) | 70,806 | 81,281 |
Total income tax expense (benefit) | $ (743,960) | $ (59,960) | $ 20,376 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Statutory federal income tax rate | 21.00% | 21.00% | 21.00% | 35.00% |
Effective tax rate | 23.80% | (191.20%) | (37.20%) | |
Percent of income tax expense (benefit) | 5.00% | |||
Income (loss) from domestic operations | $ (2,902) | $ 68 | $ 159 | |
DRD constituting non-taxable investment income | 46 | 45 | 50 | |
Non-taxable investment income | $ 49 | 47 | $ 52 | |
Net Operating Loss Carryback | $ 70 |
Income Taxes (Reconciliation To
Income Taxes (Reconciliation To Effective Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% | 35.00% |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Expected federal income tax expense (benefit) | $ (609,393) | $ 14,308 | $ 33,345 | |
Non-taxable investment income | (48,662) | (46,836) | (52,291) | |
Tax credits | (36,806) | (27,980) | (40,602) | |
Changes in tax law | (3,644) | (70,121) | 0 | |
Other | 7,066 | 381 | 416 | |
Total income tax expense (benefit) on income (loss) before equity in earnings of operating joint ventures | $ (691,439) | $ (130,248) | $ (59,132) | |
Effective tax rate | 23.80% | (191.20%) | (37.20%) |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Insurance reserves | $ 2,391,739 | $ 296,635 |
Other | 2,894 | 0 |
Deferred tax assets | 2,394,633 | 296,635 |
Deferred tax liabilities: | ||
Deferred policy acquisition cost | 1,003,301 | 142,147 |
Deferred sales inducements | 78,676 | 0 |
Net unrealized gain on securities | 114,705 | 180,067 |
Investments | 155,891 | 124,821 |
Other | 0 | 4,032 |
Deferred tax liabilities | 1,352,573 | 451,067 |
Net deferred tax asset | $ 1,042,060 | |
Net deferred tax liability | $ (154,432) |
Equity (Accumulated Other Compr
Equity (Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ 546,128 | ||
Income tax benefit (expense) | 52,374 | $ (70,806) | $ (81,281) |
Ending balance | 347,435 | 546,128 | |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (7,797) | (7,917) | (17,448) |
Change in OCI before reclassifications | (3,891) | 599 | 9,572 |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Income tax benefit (expense) | 414 | (479) | (41) |
Ending balance | (11,274) | (7,797) | (7,917) |
Net Unrealized Investment Gains (Losses) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 553,925 | 289,359 | (10,848) |
Change in OCI before reclassifications | (222,182) | 327,819 | 435,919 |
Amounts reclassified from AOCI | (24,994) | 7,074 | (54,472) |
Income tax benefit (expense) | 51,960 | (70,327) | (81,240) |
Ending balance | 358,709 | 553,925 | 289,359 |
Total Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 546,128 | 281,442 | (28,296) |
Change in OCI before reclassifications | (226,073) | 328,418 | 445,491 |
Amounts reclassified from AOCI | (24,994) | 7,074 | (54,472) |
Income tax benefit (expense) | 52,374 | (70,806) | (81,281) |
Ending balance | 347,435 | 546,128 | 281,442 |
Cash flow hedges | Net Unrealized Investment Gains (Losses) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (8,000) | 26,000 | |
Ending balance | $ 40,000 | $ (8,000) | $ 26,000 |
Equity (Reclassification out of
Equity (Reclassification out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Total net unrealized investment gains (losses) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | $ (24,994) | $ 7,074 | $ (54,472) |
Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | (24,994) | 7,074 | (54,472) |
Amounts reclassified from AOCI | Total net unrealized investment gains (losses) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | 24,994 | (7,074) | 54,472 |
Amounts reclassified from AOCI | Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | 24,994 | (7,074) | 54,472 |
Amounts reclassified from AOCI | Net unrealized investment gains (losses) on available-for-sale securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Unrealized Gain (Loss) on Investments | (3,514) | (7,236) | 46,738 |
Amounts reclassified from AOCI | Currency/Interest Rate | Cash flow hedges | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Unrealized Gain (Loss) on Investments | $ 28,508 | $ 162 | $ 7,734 |
Equity (Net Unrealized Investme
Equity (Net Unrealized Investment Gains (Losses) in AOCI on AFS Fixed Maturity Securities with OTTI, Allowance for Credit Losses and All Other Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ 546,128 | ||
Ending balance | 347,435 | $ 546,128 | |
Net Unrealized Gains (Losses) on AFS Fixed Maturity Securities with OTTI Pre-Tax | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 0 | 1,568 | $ (689) |
Net unrealized investment gains (losses) on investments arising during period | 0 | 0 | 2,112 |
Reclassification adjustment for (gains) losses included in net income | 0 | 0 | 210 |
Reclassification adjustment for OTTI losses excluded from net income | (65) | ||
Reclassification due to implementation of ASU 2016-13 | (1,568) | ||
Reclassification due to allowance for credit losses recorded during the period | 0 | 0 | |
Impact of net unrealized investment (gains) losses | 0 | 0 | 0 |
Ending balance | 0 | 0 | 1,568 |
Accumulated Net Unrealized Investment Gains (Losses) Pre-Tax with Allowance | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 0 | 0 | 0 |
Net unrealized investment gains (losses) on investments arising during period | 2,951 | 616 | 0 |
Reclassification adjustment for (gains) losses included in net income | (8) | 0 | 0 |
Reclassification adjustment for OTTI losses excluded from net income | 0 | ||
Reclassification due to implementation of ASU 2016-13 | 0 | ||
Reclassification due to allowance for credit losses recorded during the period | 742 | (616) | |
Impact of net unrealized investment (gains) losses | 0 | 0 | 0 |
Ending balance | 3,685 | 0 | 0 |
Accumulated Net Unrealized Investment Gains (Losses) Pre Tax All Other | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 849,349 | 423,612 | (16,632) |
Net unrealized investment gains (losses) on investments arising during period | (240,917) | 416,479 | 494,861 |
Reclassification adjustment for (gains) losses included in net income | (24,986) | 7,074 | (54,682) |
Reclassification adjustment for OTTI losses excluded from net income | 65 | ||
Reclassification due to implementation of ASU 2016-13 | 1,568 | ||
Reclassification due to allowance for credit losses recorded during the period | (742) | 616 | |
Impact of net unrealized investment (gains) losses | 0 | 0 | 0 |
Ending balance | 582,704 | 849,349 | 423,612 |
Deferred Policy Acquisition Costs and Other Costs | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 1,200,048 | 423,227 | (65,895) |
Net unrealized investment gains (losses) on investments arising during period | 0 | 0 | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 | 0 | 0 |
Reclassification adjustment for OTTI losses excluded from net income | 0 | ||
Reclassification due to implementation of ASU 2016-13 | 0 | ||
Reclassification due to allowance for credit losses recorded during the period | 0 | 0 | |
Impact of net unrealized investment (gains) losses | (216,963) | 776,821 | 489,122 |
Ending balance | 983,085 | 1,200,048 | 423,227 |
Future Policy Benefits and Policyholders' Account Balances and Other Liabilities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (1,348,231) | (482,134) | 68,042 |
Net unrealized investment gains (losses) on investments arising during period | 0 | 0 | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 | 0 | 0 |
Reclassification adjustment for OTTI losses excluded from net income | 0 | ||
Reclassification due to implementation of ASU 2016-13 | 0 | ||
Reclassification due to allowance for credit losses recorded during the period | 0 | 0 | |
Impact of net unrealized investment (gains) losses | 232,747 | (866,097) | (550,176) |
Ending balance | (1,115,484) | (1,348,231) | (482,134) |
Income Tax Benefit (Expense) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (147,241) | (76,914) | 4,326 |
Net unrealized investment gains (losses) on investments arising during period | 50,016 | (87,588) | (105,845) |
Reclassification adjustment for (gains) losses included in net income | 5,277 | (1,486) | 11,601 |
Reclassification adjustment for OTTI losses excluded from net income | 0 | ||
Reclassification due to implementation of ASU 2016-13 | 0 | ||
Reclassification due to allowance for credit losses recorded during the period | 0 | 0 | |
Impact of net unrealized investment (gains) losses | (3,333) | 18,747 | 13,004 |
Ending balance | (95,281) | (147,241) | (76,914) |
Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 553,925 | 289,359 | (10,848) |
Net unrealized investment gains (losses) on investments arising during period | (187,950) | 329,507 | 391,128 |
Reclassification adjustment for (gains) losses included in net income | (19,717) | 5,588 | (42,871) |
Reclassification adjustment for OTTI losses excluded from net income | 0 | ||
Reclassification due to implementation of ASU 2016-13 | 0 | ||
Reclassification due to allowance for credit losses recorded during the period | 0 | 0 | |
Impact of net unrealized investment (gains) losses | 12,451 | (70,529) | (48,050) |
Ending balance | $ 358,709 | $ 553,925 | $ 289,359 |
Statutory Net Income and Surp_2
Statutory Net Income and Surplus and Dividend Restrictions (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss) | $ 833 | $ (671) | $ 262 |
Statutory Accounting Practices, Statutory Capital and Surplus Required | 5,955 | 1,461 | |
Statutory surplus capacity to pay divided without prior approval in 2022 | 595 | ||
Statutory dividend paid to Prudential Insurance | $ 0 | $ 0 | 250 |
Extra-ordinary dividend | |||
Statutory Accounting Practices [Line Items] | |||
Statutory dividend paid to Prudential Insurance | 104 | ||
Surplus dividends paid | |||
Statutory Accounting Practices [Line Items] | |||
Statutory dividend paid to Prudential Insurance | $ 146 | ||
Pruco Life Insurance | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Accounting Practices Dividends And Distributions Surplus Restriction | 10.00% |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2021USD ($) | Dec. 31, 2021USD ($)policy | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Related Party Transaction [Line Items] | ||||||||||||
Policy charges and fee income | $ 1,529,757,000 | $ 624,320,000 | $ 544,156,000 | |||||||||
Company's share of corporate expenses | (2,044,942,000) | (201,644,000) | (200,666,000) | |||||||||
Net investment income | 550,235,000 | 367,350,000 | 393,797,000 | |||||||||
Accrued investment income | $ 160,027,000 | $ 93,613,000 | 160,027,000 | 93,613,000 | ||||||||
Contributed Capital | 776,657,000 | 575,000,000 | 0 | |||||||||
Prudential Insurance | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Contributed Capital | 457,000,000 | $ 3,813,000,000 | $ 106,000,000 | 175,000,000 | $ 75,000,000 | $ 325,000,000 | $ 6,000,000 | |||||
Return of Capital | $ 34,000,000 | 0 | ||||||||||
Dividend | 0 | 0 | 250,000,000 | |||||||||
PALAC | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Market value of loan | $ 324,000,000 | $ 324,000,000 | ||||||||||
Premium | $ 24,000,000 | |||||||||||
Prudential Insurance and Prudential FInancial | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Life Insurance, Corporate or Bank Owned, amount | 5,248,000,000 | 4,757,000,000 | 5,248,000,000 | 4,757,000,000 | ||||||||
Fees related to Life Insurance, Corporate or Bank Owned, amount | 56,000,000 | 50,000,000 | 48,000,000 | |||||||||
Maximum amount of mortality risk | 3,500,000 | 3,500,000 | ||||||||||
Prudential Insurance | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Stock option program plan expense | 1,000,000 | 1,000,000 | 1,000,000 | |||||||||
Deferred compensation program expense | 4,000,000 | 5,000,000 | 6,000,000 | |||||||||
Pension plan expense | 14,000,000 | 17,000,000 | 20,000,000 | |||||||||
Welfare plan expense | $ 13,000,000 | 18,000,000 | 24,000,000 | |||||||||
Defined contribution plan, employer matching contribution, percent (up to) | 4.00% | |||||||||||
Defined contribution plan, cost recognized | $ 5,000,000 | 7,000,000 | 9,000,000 | |||||||||
Number of Corporate Owned Life Insurance policies sold | policy | 5 | |||||||||||
Prudential Financial | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Company's share of corporate expenses | $ 86,000,000 | 76,000,000 | 116,000,000 | |||||||||
Number of Corporate Owned Life Insurance policies sold | policy | 1 | |||||||||||
Affiliated Entity | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Net investment income | $ 1,700,000 | |||||||||||
Accrued interested receivable related to long-tern notes receivable | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||
Revenues related to long-term notes receivable | 4,000,000 | 4,000,000 | 4,000,000 | |||||||||
Accrued investment income | 300,000 | 300,000 | ||||||||||
Line of credit facility, maximum borrowing capacity | 2,200,000,000 | 2,200,000,000 | ||||||||||
Interest expense related to loans payable | 400,000 | 700,000 | 2,300,000 | |||||||||
Invested Assets | 167,000,000 | 167,000,000 | ||||||||||
Affiliated Entity | PAD | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Policy charges and fee income | 379,000,000 | 529,000,000 | 747,000,000 | |||||||||
Affiliated Entity | ASTISI and Prudential Investments | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Revenue administrative sharing agreement | 374,000,000 | 344,000,000 | 341,000,000 | |||||||||
Affiliated Entity | PGIM Investments | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Revenue administrative sharing agreement | 21,000,000 | 11,000,000 | 10,000,000 | |||||||||
Affiliated Entity | PGIM | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Net investment income | 20,000,000 | 15,000,000 | 14,000,000 | |||||||||
Prudential Financial Joint Venture | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Other invested assets | $ 466,000,000 | $ 111,000,000 | 466,000,000 | 111,000,000 | ||||||||
Net investment income | $ 39,000,000 | $ 12,000,000 | $ 9,000,000 |
Related Party Transactions (Aff
Related Party Transactions (Affiliated Notes Receivable) (Details) - Affiliated Entity - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Total long-term notes receivable - affiliated | $ 162,045 | $ 111,970 |
U.S. Dollar fixed rate notes | ||
Related Party Transaction [Line Items] | ||
Total long-term notes receivable - affiliated | $ 162,045 | $ 111,970 |
U.S. Dollar fixed rate notes | Minimum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 0.00% | |
U.S. Dollar fixed rate notes | Maximum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 14.85% |
Related Party Transactions (A_2
Related Party Transactions (Affiliate Commercial Mortgage Loan) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Commercial Mortgage Loans | $ 2,832,560 | $ 1,288,846 |
Affiliated Entity | Commercial mortgage Loans | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 4.60% | |
Commercial Mortgage Loans | $ 73,412 |
Related Party Transactions (A_3
Related Party Transactions (Affiliated Asset Transfers) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Realized investment gains (losses), net | $ (5,295,406) | $ (62,976) | $ (116,749) |
Affiliated Entity | Prudential Insurance March 2020 Purchase Other Invested Assets | |||
Related Party Transaction [Line Items] | |||
Fair Value | 1,390 | ||
Book Value | 1,390 | ||
APIC, Net of Tax Increase/ (Decrease) | 0 | ||
Realized investment gains (losses), net | 0 | ||
Affiliated Entity | Prudential Insurance April 2020 Purchase Fixed Maturities | |||
Related Party Transaction [Line Items] | |||
Fair Value | 61,953 | ||
Book Value | 59,659 | ||
APIC, Net of Tax Increase/ (Decrease) | (1,812) | ||
Realized investment gains (losses), net | 0 | ||
Affiliated Entity | Prudential Insurance April 2020 Purchase Fixed Maturities | |||
Related Party Transaction [Line Items] | |||
Fair Value | 3,485 | ||
Book Value | 3,320 | ||
APIC, Net of Tax Increase/ (Decrease) | (130) | ||
Realized investment gains (losses), net | 0 | ||
Affiliated Entity | GA BV LLC July 2020 Transfer Out Fixed Maturities | |||
Related Party Transaction [Line Items] | |||
Fair Value | 1,914 | ||
Book Value | 1,914 | ||
APIC, Net of Tax Increase/ (Decrease) | 0 | ||
Realized investment gains (losses), net | 0 | ||
Affiliated Entity | PALAC June 2021 Purchase Equities | |||
Related Party Transaction [Line Items] | |||
Fair Value | 40,284 | ||
Book Value | 40,284 | ||
APIC, Net of Tax Increase/ (Decrease) | 0 | ||
Realized investment gains (losses), net | 0 | ||
Affiliated Entity | Prudential Insurance September 2021 Purchase Fixed Maturities | |||
Related Party Transaction [Line Items] | |||
Fair Value | 64,374 | ||
Book Value | 59,642 | ||
APIC, Net of Tax Increase/ (Decrease) | (3,739) | ||
Realized investment gains (losses), net | 0 | ||
Affiliated Entity | Prudential Insurance September 2021 Sale Fixed Maturities | |||
Related Party Transaction [Line Items] | |||
Fair Value | 37,887 | ||
Book Value | 35,264 | ||
APIC, Net of Tax Increase/ (Decrease) | 2,073 | ||
Realized investment gains (losses), net | 0 | ||
Affiliated Entity | Hirakata LLC September 2021 Purchase Fixed Maturities | |||
Related Party Transaction [Line Items] | |||
Fair Value | 13,944 | ||
Book Value | 13,944 | ||
APIC, Net of Tax Increase/ (Decrease) | 0 | ||
Realized investment gains (losses), net | 0 | ||
Affiliated Entity | Prudential Retirement Insurance & Annuity Co September 2021 Purchase Fixed Maturities | |||
Related Party Transaction [Line Items] | |||
Fair Value | 120,256 | ||
Book Value | 120,256 | ||
APIC, Net of Tax Increase/ (Decrease) | 0 | ||
Realized investment gains (losses), net | 0 | ||
Affiliated Entity | Prudential Retirement Insurance & Annuity Co September 2021 Sale Fixed Maturities | |||
Related Party Transaction [Line Items] | |||
Fair Value | 173,590 | ||
Book Value | 166,427 | ||
APIC, Net of Tax Increase/ (Decrease) | 0 | ||
Realized investment gains (losses), net | 7,163 | ||
Affiliated Entity | Prudential Insurance September 2021 Purchase Commercial Mortgage and Other Loans | |||
Related Party Transaction [Line Items] | |||
Fair Value | 45,358 | ||
Book Value | 42,127 | ||
APIC, Net of Tax Increase/ (Decrease) | (2,553) | ||
Realized investment gains (losses), net | 0 | ||
Affiliated Entity | Prudential Insurance September 2021 Sale Commercial Mortgage and Other Loans | |||
Related Party Transaction [Line Items] | |||
Fair Value | 22,796 | ||
Book Value | 21,780 | ||
APIC, Net of Tax Increase/ (Decrease) | 802 | ||
Realized investment gains (losses), net | 0 | ||
Affiliated Entity | Prudential Retirement Insurance & Annuity Co September 2021 Purchase Commercial Mortgage and Other Loans | |||
Related Party Transaction [Line Items] | |||
Fair Value | 29,483 | ||
Book Value | 29,483 | ||
APIC, Net of Tax Increase/ (Decrease) | 0 | ||
Realized investment gains (losses), net | 0 | ||
Affiliated Entity | Prudential Retirement Insurance & Annuity Co September 2021 Sale Commercial Mortgage and Other Loans | |||
Related Party Transaction [Line Items] | |||
Fair Value | 51,005 | ||
Book Value | 47,020 | ||
APIC, Net of Tax Increase/ (Decrease) | 0 | ||
Realized investment gains (losses), net | 3,985 | ||
Affiliated Entity | Prudential Insurance September 2021 Purchase Derivatives | |||
Related Party Transaction [Line Items] | |||
Fair Value | 600 | ||
Book Value | 494 | ||
APIC, Net of Tax Increase/ (Decrease) | (84) | ||
Realized investment gains (losses), net | 0 | ||
Affiliated Entity | Prudential Insurance September 2021 Sale Derivatives | |||
Related Party Transaction [Line Items] | |||
Fair Value | 335 | ||
Book Value | 175 | ||
APIC, Net of Tax Increase/ (Decrease) | 127 | ||
Realized investment gains (losses), net | 0 | ||
Affiliated Entity | Prudential Retirement Insurance & Annuity Co September 2021 Purchase Derivatives | |||
Related Party Transaction [Line Items] | |||
Fair Value | (1,243) | ||
Book Value | (1,243) | ||
APIC, Net of Tax Increase/ (Decrease) | 0 | ||
Realized investment gains (losses), net | 0 | ||
Affiliated Entity | Prudential Retirement Insurance & Annuity Co September 2021 Purchase Derivatives | |||
Related Party Transaction [Line Items] | |||
Fair Value | 2,846 | ||
Book Value | 770 | ||
APIC, Net of Tax Increase/ (Decrease) | 0 | ||
Realized investment gains (losses), net | 2,076 | ||
Affiliated Entity | Prudential Arizona Reinsurance Universal Co November 2021 Purchase | |||
Related Party Transaction [Line Items] | |||
Fair Value | 41,021 | ||
Book Value | 41,021 | ||
APIC, Net of Tax Increase/ (Decrease) | 0 | ||
Realized investment gains (losses), net | 0 | ||
Affiliated Entity | PALAC November 2021 Purchase Derivatives | |||
Related Party Transaction [Line Items] | |||
Fair Value | 1,112 | ||
Book Value | 1,112 | ||
APIC, Net of Tax Increase/ (Decrease) | 0 | ||
Realized investment gains (losses), net | 0 | ||
Affiliated Entity | PALAC December 2021 Transfer In Fixed Maturities | |||
Related Party Transaction [Line Items] | |||
Fair Value | 2,037,320 | ||
Book Value | 2,037,320 | ||
APIC, Net of Tax Increase/ (Decrease) | 0 | ||
Realized investment gains (losses), net | 0 | ||
Affiliated Entity | Prudential Universal Reinsurance Co December 2021 Purchase Fixed Maturities | |||
Related Party Transaction [Line Items] | |||
Fair Value | 48,041 | ||
Book Value | 48,041 | ||
APIC, Net of Tax Increase/ (Decrease) | 0 | ||
Realized investment gains (losses), net | 0 | ||
Affiliated Entity | PALAC December 2021 Purchase Fixed Maturities | |||
Related Party Transaction [Line Items] | |||
Fair Value | 57,087 | ||
Book Value | 57,087 | ||
APIC, Net of Tax Increase/ (Decrease) | 0 | ||
Realized investment gains (losses), net | 0 | ||
Affiliated Entity | PALAC December 2021 Transfer In Commercial Mortgage and Other Loans | |||
Related Party Transaction [Line Items] | |||
Fair Value | 517,309 | ||
Book Value | 517,309 | ||
APIC, Net of Tax Increase/ (Decrease) | 0 | ||
Realized investment gains (losses), net | 0 | ||
Affiliated Entity | Prudential Insurance December 2021 Contributed Capital Fixed Maturities | |||
Related Party Transaction [Line Items] | |||
Fair Value | 166,676 | ||
Book Value | 166,676 | ||
APIC, Net of Tax Increase/ (Decrease) | 0 | ||
Realized investment gains (losses), net | 0 | ||
Affiliated Entity | Prudential Retirement Insurance & Annuity Co December 2021 Sale Derivatives | |||
Related Party Transaction [Line Items] | |||
Fair Value | 31,567 | ||
Book Value | 0 | ||
APIC, Net of Tax Increase/ (Decrease) | 0 | ||
Realized investment gains (losses), net | 31,567 | ||
Affiliated Entity | Prudential Retirement Insurance & Annuity Co December 2021 Purchase Derivatives | |||
Related Party Transaction [Line Items] | |||
Fair Value | 73,572 | ||
Book Value | 73,572 | ||
APIC, Net of Tax Increase/ (Decrease) | 0 | ||
Realized investment gains (losses), net | 0 | ||
Affiliated Entity | PALAC December 2021 Purchase Derivatives | |||
Related Party Transaction [Line Items] | |||
Fair Value | 8,455 | ||
Book Value | 8,455 | ||
APIC, Net of Tax Increase/ (Decrease) | 0 | ||
Realized investment gains (losses), net | $ 0 |
Related Party Transactions (Deb
Related Party Transactions (Debt Agreements) (Details) - Affiliated Entity - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 320,362 | $ 0 |
Prudential Insurance Loan Issued 8/13/2021 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 99,770 | 0 |
Interest Rates | 4.39% | |
Prudential Insurance Loan Issued 8/13/2021 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 29,931 | 0 |
Interest Rates | 4.39% | |
Prudential Insurance Loan Issued 8/13/2021 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 100,348 | 0 |
Interest Rates | 3.95% | |
Prudential Insurance Loan Issued 8/13/2021 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 40,139 | 0 |
Interest Rates | 3.95% | |
Prudential Insurance Loan Issued 8/13/2021 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 50,174 | $ 0 |
Interest Rates | 3.95% |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Jul. 31, 2017 | |
Commitments and Contingent Liabilities [Line Items] | |||
Litigation and regulatory matters loss contingency, range of possible loss, maximum (less than) | $ 100 | ||
Commitments | Commercial mortgage loans | |||
Commitments and Contingent Liabilities [Line Items] | |||
Total outstanding commercial mortgage loan commitments | 121 | $ 30 | |
Allowance for credit losses | 0 | 0 | |
Change in allowance for credit loss expense (reversal) | 0 | 0 | |
Commitments | Investments | |||
Commitments and Contingent Liabilities [Line Items] | |||
Commitments to purchase investment (excluding commercial mortgage loans) | 753 | 354 | |
Purchase Commitment | |||
Commitments and Contingent Liabilities [Line Items] | |||
Change in allowance for credit loss expense (reversal) | 0 | $ 0 | |
Other Guarantees | |||
Commitments and Contingent Liabilities [Line Items] | |||
Accrued Liabilities | $ 34 | ||
Indonesia | |||
Commitments and Contingent Liabilities [Line Items] | |||
Joint Venture with CT Corp, Ownership Percentage | 49.00% |
Schedule I - Summary of Inves_2
Schedule I - Summary of Investments Other Than investments in Related Parties (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 12,737,749 | $ 6,157,371 |
Fair Value | 13,278,166 | 7,012,631 |
Equity securities, at cost | 106,174 | 105,508 |
Equity securities, at fair value | 111,267 | 108,457 |
Fixed maturities, trading, amortized cost | 3,319,660 | 73,413 |
Fixed maturities, trading | 3,302,392 | 82,482 |
Commercial Mortgage Loans | 2,832,560 | 1,288,846 |
Policy loans | 1,327,485 | 1,323,681 |
Short-term Investments | 182,437 | |
Other invested assets | 1,209,925 | 520,955 |
Total Investment at Cost | 21,715,990 | |
Total investment per Balance Sheet | 22,244,232 | 10,387,049 |
Fixed Maturities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 12,737,749 | 6,157,371 |
Fair Value | 13,278,166 | 7,012,631 |
Equity securities | ||
Schedule of Investments [Line Items] | ||
Equity securities, at cost | 106,174 | |
Equity securities, at fair value | 111,267 | |
Available-for-sale Securities | Fixed Maturities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 12,737,749 | |
Fair Value | 13,278,166 | |
Trading | Fixed Maturities | ||
Schedule of Investments [Line Items] | ||
Fixed maturities, trading, amortized cost | 3,319,660 | |
Fixed maturities, trading | 3,302,392 | |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | Fixed Maturities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 303,040 | 74,946 |
Fair Value | 333,940 | 77,855 |
Obligations of U.S. states and their political subdivisions | Fixed Maturities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 584,244 | 460,003 |
Fair Value | 630,521 | 517,951 |
Foreign government bonds | Fixed Maturities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 324,454 | 206,633 |
Fair Value | 350,471 | 250,855 |
Asset-backed securities | Fixed Maturities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 547,549 | 236,909 |
Fair Value | 547,310 | 237,638 |
Commercial mortgage-backed securities | Fixed Maturities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 552,653 | 480,412 |
Fair Value | 575,184 | 520,947 |
Residential mortgage-backed securities | Fixed Maturities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 18,684 | 49,456 |
Fair Value | 20,180 | 53,235 |
Public utilities | Available-for-sale Securities | Fixed Maturities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 1,343,463 | |
Fair Value | 1,436,962 | |
All other corporate bonds | Available-for-sale Securities | Fixed Maturities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 9,061,083 | |
Fair Value | 9,380,909 | |
Redeemable preferred stock | Available-for-sale Securities | Fixed Maturities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 2,579 | |
Fair Value | 2,689 | |
Other common stocks | Equity securities | ||
Schedule of Investments [Line Items] | ||
Equity securities, at cost | 467 | |
Equity securities, at fair value | 2,331 | |
Mutual funds | Equity securities | ||
Schedule of Investments [Line Items] | ||
Equity securities, at cost | 96,858 | |
Equity securities, at fair value | 98,634 | |
Perpetual preferred stocks | Equity securities | ||
Schedule of Investments [Line Items] | ||
Equity securities, at cost | 8,849 | |
Equity securities, at fair value | 10,302 | |
Commercial Mortgage and Agricultural Property Loans | ||
Schedule of Investments [Line Items] | ||
Commercial Mortgage Loans | $ 2,832,560 | $ 1,288,846 |