Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 11, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Document Transition Report | false | |
Entity File Number | 333-18053 | |
Entity Registrant Name | PRUCO LIFE INSURANCE OF NEW JERSEY | |
Entity Central Index Key | 0001038509 | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 22-2426091 | |
Entity Address, Address Line One | 213 Washington Street | |
Entity Address, City or Town | Newark | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07102 | |
City Area Code | 973 | |
Local Phone Number | 802-6000 | |
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 | 400,000 |
Unaudited Interim Statements of
Unaudited Interim Statements of Financial Position - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | |
ASSETS | |||
Fixed maturities, available for sale, at fair value (allowance for credit losses: 2023-$3; 2022-$363) (amortized cost: 2023-$2,329,822; 2022-$1,990,718) | $ 2,108,183 | $ 1,719,488 | |
Fixed maturities, trading, at fair value (amortized cost: 2023-$27,108; 2022-$27,566) | 23,938 | 23,782 | |
Equity securities, at fair value (cost: 2023-$4,622; 2022-$4,614) | 4,363 | 4,358 | |
Policy loans | 212,479 | 212,063 | |
Short-term investments | 12,000 | 7,000 | |
Commercial mortgage and other loans (net of $499 and $408 allowance for credit losses at March 31, 2023 and December 31, 2022, respectively) | 159,752 | 148,179 | |
Other invested assets (includes $2,235 and $2,389 of assets measured at fair value at March 31, 2023 and December 31, 2022, respectively) | 133,763 | 129,528 | |
Total investments | 2,654,478 | 2,244,398 | |
Cash and cash equivalents | 83,286 | 255,767 | |
Deferred policy acquisition costs | 361,655 | 351,874 | [1] |
Accrued investment income | 31,064 | 25,222 | |
Reinsurance recoverables | 3,195,287 | 3,098,248 | [1] |
Receivables from parent and affiliates | 17,574 | 19,348 | |
Income tax assets | 59,075 | 67,615 | [1] |
Market risk benefit assets | 562,922 | 558,624 | |
Other assets | 47,984 | 48,391 | [1] |
Separate account assets | 14,413,681 | 13,926,958 | |
TOTAL ASSETS | 21,427,006 | 20,596,445 | |
LIABILITIES | |||
Policyholders' account balance | 2,792,291 | 2,774,315 | [1] |
Future policy benefits | 2,227,631 | 2,130,042 | [1] |
Cash collateral for loaned securities | 3,325 | 0 | |
Market risk benefit liabilities | 562,922 | 558,624 | |
Payables to parent and affiliates | 2,074 | 7,546 | |
Other liabilities | 196,189 | 172,305 | |
Separate account liabilities | 14,413,681 | 13,926,958 | |
Total liabilities | 20,198,113 | 19,569,790 | |
EQUITY | |||
Common stock ($5 par value; 400,000 shares authorized, issued and outstanding) | 2,000 | 2,000 | |
Additional paid-in capital | 950,412 | 775,412 | |
Retained Earnings | 275,039 | 285,433 | [1] |
Accumulated other comprehensive income (loss) | 1,442 | (36,190) | [1] |
Total equity | 1,228,893 | 1,026,655 | |
TOTAL LIABILITIES AND EQUITY | $ 21,427,006 | $ 20,596,445 | |
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Unaudited Interim Statements _2
Unaudited Interim Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Fixed Maturities, Available-for-sale, at fair value (AFS), allowance for credit loss | $ 3 | $ 363 |
Fixed Maturities, Available-for-sale, amortized cost | 2,329,822 | 1,990,718 |
Fixed maturities, trading, amortized cost | 27,108 | 27,566 |
Equity securities, at cost | 4,622 | 4,614 |
Commercial mortgage and other loans, allowance for credit losses | 499 | 408 |
Other invested assets, at fair value | $ 2,235 | $ 2,389 |
Common Stock, Par or Stated Value Per Share | $ 5 | $ 5 |
Common Stock, Shares Authorized | 400,000 | 400,000 |
Common Stock, Shares, Issued | 400,000 | 400,000 |
Common Stock, Shares, Outstanding | 400,000 | 400,000 |
Unaudited Interim Statements _3
Unaudited Interim Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
REVENUES | |||
Premiums | $ 10,177 | $ 9,020 | [1] |
Policy charges and fee income | 14,138 | 10,595 | [1] |
Net investment income | 28,660 | 24,369 | |
Asset administration fees | 2,080 | 2,260 | |
Other income (loss) | 1,146 | (1,514) | |
Realized Investment gains (losses), net | (8,298) | 15,720 | [2] |
Change in value of market risk benefits, net of related hedging gain (loss)(1) | (15,728) | (86,828) | [2] |
TOTAL REVENUES | 32,175 | (26,378) | |
BENEFITS AND EXPENSES | |||
Policyholders' benefits | 18,339 | 13,835 | [1] |
Change in estimates of liability for future policy benefits(1) | (1,442) | (1,177) | |
Interest credited to policyholders’ account balances | 10,137 | 11,194 | |
Amortization of deferred policy acquisition costs | 5,017 | 4,829 | [1] |
General, administrative and other expense | 11,958 | 11,000 | [1] |
TOTAL BENEFITS AND EXPENSES | 44,009 | 39,681 | |
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | (11,834) | (66,059) | |
Income tax expense (benefit) | (1,440) | (19,943) | [1] |
NET INCOME (LOSS) | (10,394) | (46,116) | [2] |
Other comprehensive income (loss), before tax: | |||
Foreign currency translation adjustments | 100 | (67) | |
Net unrealized investment gains (losses) | 38,767 | (160,093) | [1] |
Interest rate remeasurement of future policy benefits(1) | (6,959) | 22,483 | |
Gain (loss) from changes in non-performance risk on market risk benefits(1) | 15,728 | 86,828 | |
Total | 47,636 | (50,849) | |
Less: Income tax expense (benefit) related to other comprehensive income (loss) | 10,004 | (10,678) | [1] |
Other comprehensive income (loss), net of taxes | 37,632 | (40,171) | |
Comprehensive income (loss) | $ 27,238 | $ (86,287) | |
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[2]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Unaudited Interim Statements _4
Unaudited Interim Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance at Dec. 31, 2021 | [1] | $ 909,351 | $ 2,000 | $ 450,102 | $ 355,262 | $ 101,987 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Contributed capital | 101,700 | 101,700 | |||||
NET INCOME (LOSS) | (46,116) | [2] | (46,116) | ||||
Other comprehensive income (loss), net of tax | (40,171) | (40,171) | |||||
Total comprehensive income (loss) | (86,287) | ||||||
Ending balance at Mar. 31, 2022 | [1] | 924,764 | 2,000 | 551,802 | 309,146 | 61,816 | |
Beginning balance at Dec. 31, 2022 | [3] | 1,026,655 | 2,000 | 775,412 | 285,433 | (36,190) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Contributed capital | 175,000 | 175,000 | |||||
NET INCOME (LOSS) | (10,394) | (10,394) | |||||
Other comprehensive income (loss), net of tax | 37,632 | 37,632 | |||||
Total comprehensive income (loss) | 27,238 | ||||||
Ending balance at Mar. 31, 2023 | $ 1,228,893 | $ 2,000 | $ 950,412 | $ 275,039 | $ 1,442 | ||
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[2]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[3] Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Unaudited Interim Statements _5
Unaudited Interim Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
NET INCOME (LOSS) | $ (10,394) | $ (46,116) | [1] |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Policy charges and fee income | (1,435) | (13) | [1] |
Interest credited to policyholders’ account balances | 10,137 | 11,194 | |
Realized investment (gains) losses, net | 8,298 | (15,720) | [1] |
Change in value of market risk benefits, net of related hedging (gains) losses | 15,728 | 86,828 | [1] |
Change in: | |||
Future policy benefits and other insurance liabilities | 58,089 | 17,409 | [1] |
Reinsurance recoverables | (19,962) | (24,103) | [1] |
Accrued investment income | (5,842) | (936) | |
Net payables to/receivables from parent and affiliates | (1,720) | (378) | |
Deferred policy acquisition costs | (9,781) | (13,037) | [1] |
Income taxes | (1,464) | 3,341 | [1] |
Derivatives, net | (1,722) | 4,574 | |
Other, net | (31,721) | (33,944) | [1],[2] |
Cash flows from (used in) operating activities | 8,211 | (10,901) | |
Proceeds from the sale/maturity/prepayment of: | |||
Fixed maturities, available-for-sale | 33,170 | 38,502 | |
Fixed maturities, trading | 329 | 325 | |
Equity securities | 208 | 17 | |
Policy loans | 7,113 | 7,490 | |
Ceded policy loans | (485) | (537) | |
Short-term investments | 2,000 | 0 | |
Commercial mortgage and other loans | 2,927 | 3,636 | |
Other invested assets | (353) | 1,276 | |
Payments for the purchase/origination of: | |||
Fixed maturities, available-for-sale | (367,590) | (71,758) | |
Equity securities | (27) | 0 | |
Policy loans | (5,515) | (6,694) | |
Ceded policy loans | 415 | 579 | |
Short-term investments | (7,000) | 0 | |
Commercial mortgage and other loans | (14,509) | 0 | |
Other invested assets | (3,317) | (3,568) | |
Notes receivable from parent and affiliates, net | (8) | (9) | |
Derivatives, net | (298) | 101 | |
Other, net | 0 | 4,052 | |
Cash flows from (used in) investing activities | (352,940) | (26,588) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Policyholders’ account deposits | 138,201 | 134,084 | |
Ceded policyholders’ account deposits | (73,649) | (87,398) | |
Policyholders’ account withdrawals | (131,444) | (103,693) | |
Ceded policyholders’ account withdrawals | 60,912 | 69,281 | |
Net change in securities sold under agreement to repurchase and cash collateral for loaned securities | 3,325 | 0 | |
Contributed capital | 175,000 | 100,400 | |
Drafts outstanding | (239) | 5,441 | |
Other, net | 142 | 2,416 | |
Cash flows from (used in) financing activities | 172,248 | 120,531 | |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (172,481) | 83,042 | |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 255,767 | 136,316 | |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 83,286 | 219,358 | |
Significant Non-Cash Transactions | |||
Non-cash assets received | $ 0 | $ 0 | |
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[2]Prior period has been reclassified to conform to the current period presentation. |
Business and Basis of Presentat
Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | BUSINESS AND BASIS OF PRESENTATION Pruco Life Insurance Company of New Jersey (the "Company" or "PLNJ") is a wholly-owned subsidiary of Pruco Life Insurance Company (“Pruco Life”), which in turn is a wholly-owned subsidiary of The Prudential Insurance Company of America (“Prudential Insurance”). Prudential Insurance is a direct wholly-owned subsidiary of Prudential Financial, Inc. (“Prudential Financial”). PLNJ is a stock life insurance company organized in 1982 under the laws of the State of New Jersey. It is licensed to sell life insurance and annuities in New Jersey and New York only, and sells such products primarily through affiliated and unaffiliated distributors. Basis of Presentation On January 1, 2023, the Company adopted Accounting Standard Update (“ASU”) 2018-12, Financial Services— Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, which provided new authoritative guidance impacting the accounting and disclosure requirements for long-duration insurance and investment contracts issued by the Company. See “Adoption of ASU 2018-12” below for additional information regarding this adoption, including the impacts to the Company’s 2022 financial statements from implementing the new accounting standard as well as the transition impacts recorded as of January 1, 2021. See Note 2 for additional details regarding the key policy changes effected by this ASU and updated accounting policies resulting from the adoption of this ASU for all periods presented in the Unaudited Interim Financial Statements. The Unaudited Interim Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Intercompany balances and transactions have been eliminated. In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Adoption of ASU 2018-12 In August 2018, the FASB issued ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts which provides new authoritative guidance impacting the accounting and disclosure requirements for long-duration insurance and investment contracts issued by the Company. The Company adopted this guidance, effective January 1, 2023, using the modified retrospective transition method, where permitted, for changes to the liability for future policy benefits and deferred policy acquisition costs ("DAC") and related balances, and using the retrospective transition method, as required for market risk benefits. The Company applied the guidance as of the transition date of January 1, 2021 and retrospectively adjusted prior period amounts shown in the 2023 financial statements to reflect the new guidance. The following tables present amounts as previously reported in 2022, the effect upon those amounts from the adoption of the new guidance under ASU 2018-12 Unaudited Interim Statements of Financial Position: December 31, 2022 IMPACTED LINES ONLY As Previously Reported Effect of As Currently Reported (in thousands) Deferred policy acquisition costs $ 364,494 $ (12,620) $ 351,874 Reinsurance recoverables 3,258,526 (160,278) 3,098,248 Income tax assets 67,126 489 67,615 Market risk benefit assets 0 558,624 558,624 Other assets 16,207 32,184 48,391 TOTAL ASSETS $ 20,178,046 $ 418,399 $ 20,596,445 Policyholders’ account balances $ 2,763,730 $ 10,585 $ 2,774,315 Future policy benefits 2,303,407 (173,365) 2,130,042 Market risk benefit liabilities 0 558,624 558,624 Other liabilities 147,908 24,397 172,305 Total liabilities 19,149,549 420,241 19,569,790 Retained earnings 439,236 (153,803) 285,433 Accumulated other comprehensive income (loss) (188,151) 151,961 (36,190) Total equity 1,028,497 (1,842) 1,026,655 TOTAL LIABILITIES AND EQUITY $ 20,178,046 $ 418,399 $ 20,596,445 Unaudited Interim Statements of Operations and Comprehensive Income (Loss): Three Months Ended March 31, 2022 IMPACTED LINES ONLY As Previously Reported Effect of As Currently Reported (in thousands) REVENUES Premiums $ 10,195 $ (1,175) $ 9,020 Policy charges and fee income 15,721 (5,126) 10,595 Realized investment gains (losses), net 16,028 (308) 15,720 Change in value of market risk benefits, net of related hedging gain (loss) 0 (86,828) (86,828) TOTAL REVENUES 67,059 (93,437) (26,378) BENEFITS AND EXPENSES Policyholders’ benefits 13,574 261 13,835 Change in estimates of liability for future policy benefits 0 (1,177) (1,177) Amortization of deferred policy acquisition costs 6,192 (1,363) 4,829 General, administrative and other expenses 12,381 (1,381) 11,000 TOTAL BENEFITS AND EXPENSES 43,341 (3,660) 39,681 INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES 23,718 (89,777) (66,059) Income tax expense (benefit) 1,856 (21,799) (19,943) NET INCOME (LOSS) $ 21,862 $ (67,978) $ (46,116) Other comprehensive income (loss), before tax: Net unrealized investment gains (losses) (166,361) 6,268 (160,093) Interest rate remeasurement of future policy benefits 0 22,483 22,483 Gain (loss) from changes in non-performance risk on market risk benefits 0 86,828 86,828 Total (166,428) 115,579 (50,849) Less: Income tax expense (benefit) related to other comprehensive income (loss) (34,949) 24,271 (10,678) Other comprehensive income (loss), net of taxes (131,479) 91,308 (40,171) Comprehensive income (loss) $ (109,617) $ 23,330 $ (86,287) Unaudited Interim Statements of Cash Flows: Three Months Ended March 31, 2022 IMPACTED LINES ONLY As Previously Reported Effect of As Currently Reported (in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 21,862 $ (67,978) $ (46,116) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Policy charges and fee income (4,892) 4,879 (13) Realized investment (gains) losses, net (16,028) 308 (15,720) Change in value of market risk benefits, net of related hedging (gains) losses 0 86,828 86,828 Change in: Future policy benefits and other insurance liabilities (873) 18,282 17,409 Reinsurance recoverables (37,823) 13,720 (24,103) Deferred policy acquisition costs (11,678) (1,359) (13,037) Income taxes 25,140 (21,799) 3,341 Other, net(1) (1,063) (32,881) (33,944) Cash flows from (used in) operating activities $ (10,901) $ 0 $ (10,901) (1) Prior period has been reclassified to conform to the current period presentation. The following tables detail the January 1, 2021 transition adjustments by providing a rollforward of the ending reported balances as of December 31, 2020 to the opening balances as of January 1, 2021 for retained earnings, accumulated other comprehensive income (“AOCI”) and the impacted insurance-related balances. January 1, 2021 Retained Earnings (in thousands) Balance after-tax, prior to transition $ 328,450 Reclassification of market risk benefits non-performance risk to accumulated other comprehensive income(1) (60,792) Updates to certain universal life contract liabilities(2) (20,108) Other(3) 7,722 Total pre-tax adjustments (73,178) Tax impacts 15,367 Balance after-tax, after transition $ 270,639 (1) Reflects the cumulative impact of changes in the fair value of market risk benefits (“MRB”) non-performance risk (“NPR”) from the date of contract issuance to January 1, 2021. These amounts were previously recorded in retained earnings but are now reflected in AOCI under the new guidance. (2) Reflects the impact on additional insurance reserves ("AIR") and other related balances primarily related to the no-lapse guarantee features on certain universal life contracts. For additional information, see Note 2. (3) Primarily reflects the reassessment of deferred reinsurance losses ("DRL"). January 1, 2021 Accumulated Other Comprehensive Income (in thousands) Balance after-tax, prior to transition $ 185,407 Interest rate remeasurement of future policy benefits (57,440) Reclassification of market risk benefits non-performance risk to accumulated other comprehensive income(1) 60,792 Unwinding amounts related to unrealized investment gains and losses(2) (15,161) Total pre-tax adjustments (11,809) Tax impacts 2,480 Balance after-tax, after transition $ 176,078 (1) Reflects the cumulative impact of changes in NPR on the fair value of market risk benefits from the date of contract issuance to January 1, 2021. These amounts were previously recorded in retained earnings but are now reflected in AOCI under the new guidance. (2) Primarily reflects amounts related to DAC and other balances as unrealized investment gains or losses no longer impact the amortization pattern of such balances under the new guidance. Also includes the impacts from updates to reserves and other related balances for certain universal life contracts. For additional information, see Note 2. January 1, 2021 Deferred Policy Acquisition Costs Term Life Variable/Universal Life Total (in thousands) Balance prior to transition $ 51,526 $ 172,899 $ 224,425 Unwinding amounts related to unrealized investment gains and losses 0 21,714 21,714 Other(1) 1 (1,922) (1,921) Balance after transition $ 51,527 $ 192,691 $ 244,218 (1) Represents miscellaneous model refinements. January 1, 2021 Deferred Reinsurance Losses(1) Variable Annuities (in thousands) Balance prior to transition $ 15,209 Unwinding amounts related to unrealized investment gains and losses 1,187 Effect of change in reserve basis to market risk benefits 4,236 Balance after transition $ 20,632 (1) Deferred reinsurance losses are included in "Other assets". January 1, 2021 Benefit Reserves(1) Term Life Fixed Annuities Total (in thousands) Balance prior to transition $ 1,049,445 $ 16,468 $ 1,065,913 Changes in cash flow assumptions and other activity 30 (687) (657) Balance after transition, at original discount rate 1,049,475 15,781 1,065,256 Cumulative changes in discount rate assumptions 401,072 2,188 403,260 Balance after transition, at current discount rate 1,450,547 17,969 1,468,516 Less: Reinsurance recoverable 1,264,199 17,944 1,282,143 Balance after transition, net of reinsurance recoverable $ 186,348 $ 25 $ 186,373 (1) Benefit reserves, excluding amounts for reinsurance recoverable, are included in "Future policy benefits". For additional information on the liability for future policy benefits, see Note 8 . January 1, 2021 Deferred Profit Liability(1) Fixed Annuities (in thousands) Balance prior to transition $ 102 Changes in benefit reserves 882 Balance after transition 984 Less: Reinsurance recoverable 984 Balance after transition, net of reinsurance recoverable $ 0 (1) Deferred profit liability ("DPL"), excluding amounts for reinsurance recoverable, is included in "Future policy benefits". For additional information regarding the liability for future policy benefits, see Note 8. January 1, 2021 Additional Insurance Reserves(1) Variable/Universal Life Variable Annuities Total (in thousands) Balance prior to transition $ 513,812 $ 24,433 $ 538,245 Unwinding amounts related to unrealized investment gains and losses (109,355) (1,698) (111,053) Balance prior to transition, excluding amounts related to unrealized investment gains and losses 404,457 22,735 427,192 Reclassification of future policy benefits additional insurance reserves to market risk benefits 0 (22,735) (22,735) Updates to certain universal life contract liabilities(2) 142,726 0 142,726 Balance after transition, excluding amounts related to unrealized investment gains and losses 547,183 0 547,183 Amounts related to unrealized investment gains and losses after transition 95,331 0 95,331 Balance after transition 642,514 0 642,514 Less: Reinsurance recoverable 613,009 0 613,009 Balance after transition, net of reinsurance recoverable $ 29,505 $ 0 $ 29,505 (1) Additional insurance reserves ("AIR"), excluding amounts for reinsurance recoverable, are included in "Future policy benefits". For additional information regarding the liability for future policy benefits, see Note 8. (2) For additional information regarding updates to reserves and other related balances for certain universal life contracts, see Note 2. January 1, 2021 Unearned Revenue Reserves(1) Variable/Universal Life (in thousands) Balance prior to transition $ 94,480 Unwinding amounts related to unrealized investment gains and losses and other activity 92,103 Balance after transition 186,583 Less: Reinsurance recoverable 45,019 Balance after transition, net of reinsurance recoverable $ 141,564 (1) Unearned revenue reserves ("URR") are included in "Policyholders' account balances". For additional information regarding the liability for policyholders' account balances, see Note 9. January 1, 2021 Market Risk Benefits(1) Variable Annuities (in thousands) Liability for guaranteed benefits recorded at fair value, prior to transition $ 1,195,470 Additional insurance reserves to be reclassed to market risk benefits, prior to transition, excluding amounts related to unrealized investment gains and losses 22,735 Total liability prior to transition 1,218,205 Change in reserve basis to market risk benefits framework (12,634) Market risk benefits after transition, at current non-performance risk value 1,205,571 Less: Reinsured market risk benefits 1,205,571 Market risk benefits after transition, net of reinsurance 0 Market risk benefits after transition, at contract inception non-performance risk value $ 1,266,363 Cumulative change in non-performance risk 60,792 Market risk benefits after transition, at current non-performance risk value $ 1,205,571 (1) For additional information regarding market risk benefits, see Note 10. January 1, 2021 Cost of Reinsurance(1) Variable/ Universal Life (in thousands) Balance prior to transition $ 85,773 Unwinding amounts related to unrealized investment gains and losses (34,617) Balance prior to transition, excluding amounts related to unrealized investment gains and losses 51,156 Impact from updates to certain universal life contract liabilities(2) 14,045 Balance after transition, excluding amounts related to unrealized investment gains and losses 65,201 Amounts related to unrealized investment gains and losses after transition 27,620 Balance after transition $ 92,821 (1) Cost of reinsurance is included in "Other liabilities". (2) For additional information regarding updates to reserves and other related balances for certain universal life contracts, see Note 2. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining future policy benefits; policyholders' account balances and reinsurance related to the fair value of embedded derivative instruments associated with the index-linked features of certain universal life and annuity products; market risk benefits; the valuation of investments including derivatives, the measurement of allowance for credit losses, and the recognition of other-than-temporary impairments; reinsurance recoverables; any provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal and regulatory matters. Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
Significant Accounting Policies
Significant Accounting Policies and Pronouncements | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Pronouncements | SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of ASUs to the FASB Accounting Standards Codification ("ASC"). The Company considers the applicability and impact of all ASUs. ASUs listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of March 31, 2023, and as of the date of this filing. ASUs not listed below were assessed and determined to be either not applicable or not material. Adoption of ASU 2018-12 Effective January 1, 2023, the Company adopted ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts . Adoption of this ASU impacted, at least to some extent, the accounting and disclosure requirements for all long-duration insurance and investment contracts issued by the Company and had a significant financial impact on the Financial Statements and disclosures. See Note 1 for additional information. As of the January 1, 2021 transition date, the adoption of the standard resulted in a decrease to “Total equity” of $67 million, primarily from remeasuring in force contract liabilities using upper-medium grade fixed income instrument yields as of the transition date and from other changes in reserves. As of the January 1, 2023 adoption date, the impact amounted to a decrease to "Total equity" of $2 million. The changes in the impacts from January 1, 2021 to January 1, 2023 primarily reflect the increase in market interest rates during 2021 and 2022. Outlined below are: (1) key accounting policy changes effected by the ASU and (2) updated accounting policies for all of the periods presented in the Unaudited Interim Financial Statements. (1) Key Accounting Policy Changes Area of Change Description Method of adoption Effect on the financial statements or other significant matters Cash flow assumptions used to measure the liability for future policy benefits for non-participating traditional and limited-payment insurance products Requires an entity to review, and if necessary, update the cash flow assumptions used to measure the liability for future policy benefits, for both changes in future assumptions and actual experience, at least annually using a retrospective update method with a cumulative catch-up adjustment recorded in a separate line item in the Statements of Operations. Effective January 1, 2023 using the modified retrospective transition method, which includes a cumulative effect adjustment to the balance sheet as of January 1, 2021 (the “transition date”). Under this method, the amendments to contracts in force were applied as of January 1, 2021 on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI The impact upon transition reflects the impact on in force contract liabilities in instances where expected net premiums exceeded expected gross premiums at an issue-year cohort level as a result of updating to current best estimate cash flow assumptions as of the transition date. As a result of the modified retrospective transition method, the vast majority of the impact of updating cash flow assumptions to best estimates as of the transition date will be reflected in the pattern of earnings in subsequent periods. See Note 1 for additional information regarding the effect on the financial statements. Adoption of the standard also resulted in additional required disclosures. See Note 8 for additional information. Discount rate assumption used to measure the liability for future policy benefits for non-participating traditional and limited-payment insurance products Requires discount rate assumptions to be based on an upper-medium grade fixed income instrument yields, which will be updated each quarter with the impact recorded through OCI. An entity shall maximize the use of relevant observable information and minimize the use of unobservable information in determining the discount rate assumptions. As noted above, the guidance for the liability for future policy benefits was adopted effective January 1, 2023 using the modified retrospective transition method, which includes a cumulative effect adjustment to the balance sheet as of January 1, 2021. Under this method, for balance sheet remeasurement purposes, the liability for future policy benefits is remeasured using discount rates as of January 1, 2021 with the impact recorded as a cumulative effect adjustment to AOCI. Adoption of the ASU resulted in a significant impact to AOCI as a result of remeasuring in force contract liabilities using current upper-medium grade fixed income instrument yields. This adjustment largely reflects the difference between discount rates locked-in at contract inception versus current discount rates. See Note 1 for additional information regarding the effect on the financial statements. Adoption of the standard also resulted in additional required disclosures. See Note 8 for additional information. Amortization of deferred acquisition costs ("DAC") and other balances Requires DAC and other balances, such as URR and Deferred Sales Inducements, to be amortized on a constant level basis over the expected term of the related contract, independent of expected profitability. Effective January 1, 2023 using the modified retrospective transition method, which includes a cumulative effect adjustment to the balance sheet as of January 1, 2021. Under this method, the amendments to contracts in force were applied as of January 1, 2021 on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI. Adoption of the ASU did not have a significant impact on DAC and other balances upon transition, other than the impact of the removal of any related amounts in AOCI. See Note 1 for additional information regarding the effect on the financial statements. Adoption of the standard also resulted in additional required disclosures. See Note 6 for additional information. Market Risk Benefits Requires an entity to measure all market risk benefits (e.g., living benefit and death benefit guarantees associated with variable annuities) at fair value, and record MRB assets and liabilities separately on the Statements of Financial Position. Changes in the fair value of market risk benefits are recorded in net income, except for the portion attributable to changes in an entity’s NPR, which is recognized in OCI. An entity shall maximize the use of relevant observable information and minimize the use of unobservable information in determining the balance of the market risk benefits upon adoption. Effective January 1, 2023 using the retrospective transition method, which includes a cumulative effect adjustment to the balance sheet as of January 1, 2021. Adoption of the ASU resulted in an adjustment to retained earnings for the difference between the fair value and carrying value of benefits not measured at fair value prior to the adoption of the ASU (e.g., guaranteed minimum death benefits on variable annuities) and a reclass of the cumulative effect of changes in NPR from retained earnings to AOCI. See Note 1 for additional information regarding the effect on the financial statements. Adoption of the standard also resulted in additional required disclosures. See Note 10 for additional information. In addition to the significant key accounting changes noted above, ASU 2018-12 also clarified the definition of assessments used to accrue additional insurance reserves and other related balances, primarily for no-lapse guarantee features on certain universal life contracts. Application of the new guidance changed the pattern of reserve recognition for these guarantees and resulted in an increase to the net contract liabilities related to these products at transition. See Note 1 for additional information regarding the effect on the financial statements. ASU 2022-05, Financial Services – Insurance (Topic 944) Transition for Sold Contracts was issued on December 15, 2022, to amend the transition guidance in ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts . The amendment allows an insurance entity to make an accounting policy election to not apply ASU 2018-12 to contracts or legal entities sold or disposed of before the effective date, and in which the insurance entity has no significant continuing involvement with the derecognized contracts. An insurance entity is permitted to apply the policy election on a transaction by transaction basis to each sale or disposal transaction. An insurance entity is required to disclose whether it has chosen to apply this accounting policy election and provide a qualitative description of the sale or disposal transactions to which the accounting policy election is applied. The Company did not apply this accounting policy election. (2) Updated Accounting Policies This section includes the updated accounting policies resulting from the adoption of ASU 2018-12 which are applicable to all of the periods presented in the Unaudited Interim Financial Statements. This section is meant to serve as an update to, and should be read in conjunction with, Note 2 to the Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. ASSETS Deferred policy acquisition costs represents costs directly related to the successful acquisition of new and renewal insurance and annuity business. Such DAC primarily includes commissions, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully acquired contracts. In each reporting period, previously capitalized DAC is amortized and included in “Amortization of deferred policy acquisition costs”, and the carrying amount of DAC is not subject to recoverability testing upon adoption of the ASU. DAC is amortized on a constant-level basis at a grouped contract level over the expected life of the underlying insurance contracts. Contracts are grouped consistent with the groupings used to estimate the liability for future policy benefits (or other related balances) for the corresponding contracts. Since contracts within a grouping may be of different sizes, contracts within a group are weighted to achieve appropriate amortization and to ensure that DAC is derecognized when a policy is no longer in force. The constant-level basis used to weight contracts within a grouping and amortize DAC is generally defined as follows: • Life insurance contracts – DAC associated with life insurance contracts is generally amortized in proportion to the initial face amount of life insurance in force. This is applicable to traditional and universal life insurance. • Payout annuity contracts – DAC associated with payout annuity contracts is amortized in proportion to annual benefit payments. • Deferred annuity contracts – DAC associated with fixed and variable deferred annuity contracts is amortized in proportion to deposits. For single premium immediate annuities without life contingencies, acquisition expenses are deferred and amortized over the expected life of the contracts using the interest method. Current period DAC amortization reflects the impact of changes in actual insurance in force during the period and changes in future assumptions effected as of the end of the quarter, where applicable. The Company typically updates actuarial assumptions annually in the second quarter, (see " Annual Assumptions Review " below), unless a material change is observed in an interim period that is indicative of a long-term trend. Generally, the Company does not expect trends to change significantly in the short-term and, to the extent these trends may change, the Company expects such changes to be gradual over the long-term. Assumptions used for DAC are consistent with those used in estimating the liability for future policy benefits (or any other related balance) for the corresponding contract. Determining the level of aggregation and actuarial assumptions used in projecting in force terminations requires judgment. Internal criteria are developed to determine the level of aggregation by considering both qualitative and quantitative materiality thresholds. The assumptions used in projecting in force terminations are mortality, mortality improvement, and lapse assumptions. These assumptions are generally based on the Company’s experience, industry experience and/or other factors, as applicable. For variable deferred annuity contracts, lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefits and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. If policyholders surrender traditional life insurance policies in exchange for life insurance policies that do not have fixed and guaranteed terms, the Company immediately charges to expense the remaining unamortized DAC on the surrendered policies. For other internal replacement transactions, except those that involve the addition of a non-integrated contract feature that does not change the existing base contract, the unamortized DAC is immediately charged to expense if the terms of the new policies are not substantially similar to those of the former policies. If the new terms are substantially similar to those of the earlier policies, the DAC is retained with respect to the new policies and amortized over the expected life of the new policies. See Note 6 for additional information regarding DAC. Reinsurance recoverables include corresponding receivables associated with reinsurance arrangements with affiliates and third party reinsurers, and are reported on the Statements of Financial Position net of the CECL allowance. Reinsurance recoverables also include assumed modified coinsurance arrangements which generally reflect the value of the invested assets retained by the cedant and the associated asset returns. Modified coinsurance recoverables contain an embedded derivative (bifurcated and accounted for separately from the host contract) that is presented together with the derivative embedded in the modified coinsurance payables as one compound derivative. For additional information about these arrangements see Note 11. The CECL allowance considers the credit quality of the reinsurance counterparty and is generally determined based on the probability of default and loss given default assumptions, after considering any applicable collateral arrangements. The CECL allowance does not apply to reinsurance recoverables with affiliated counterparties under common control. Additions to or releases of the allowance are reported in “Policyholders’ benefits.” Prior to the adoption of this standard, an allowance for credit losses for reinsurance recoverables was established only when it was deemed probable that a reinsurer may fail to make payments to us in a timely manner. Reinsurance premiums, commissions, expense reimbursements, benefits and reserves related to reinsured long-duration contracts under coinsurance arrangements are accounted for over the life of the underlying reinsured contracts using assumptions consistent with those used to account for the underlying contracts. For reinsurance of in force blocks of non-participating traditional and limited-payment contracts, the current value of the direct liability as of inception of the reinsurance agreement is used to calculate the reinsurance recoverable and cost of reinsurance such that there is no immediate other comprehensive income or loss from recognition of the reinsurance recoverable at inception. Consistent with the direct liability, the reinsurance recoverable for non-participating traditional and limited-payment contracts is remeasured each period using current single A rates with the effect on the liability resulting from such updates recorded in "Interest rate remeasurement of future policy benefits" in OCI. Coinsurance arrangements contrast with the Company’s yearly renewable term arrangements, where only mortality risk is transferred to the reinsurer and premiums are paid to the reinsurer to reinsure that risk. The mortality risk that is reinsured under yearly renewable term arrangements represents the difference between the stated death benefits in the underlying reinsured contracts and the corresponding reserves or account value carried by the Company on those same contracts. The premiums paid to the reinsurer are based upon negotiated amounts, not on the actual premiums paid by the underlying contract holders to the Company. As yearly renewable term arrangements are usually entered into by the Company with the expectation that the contracts will be in force for the lives of the underlying policies, they are considered to be long-duration reinsurance contracts. The cost of reinsurance for universal life products is generally recognized based on the gross assessments of the underlying direct policies. The cost of reinsurance for term insurance products is generally recognized in proportion to direct premiums over the life of the underlying policies. Market risk benefits in an asset position are presented separately from market risk benefits in a liability position. See “ Market risk benefits ” below. Other assets consists primarily of premiums due and deferred loss on reinsurance with affiliates which is amortized over the expected life of the reinsured contracts on a constant-level basis. Separate account assets represents segregated funds that are invested for certain policyholders, and other customers. The assets consist primarily of equity securities, fixed maturities, real estate-related investments, real estate mortgage loans, short-term investments and derivative instruments and are reported at fair value. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. The investment income and realized investment gains or losses from separate account assets generally accrue to the policyholders and are not included in the Company’s results of operations. Mortality, policy administration and surrender charges assessed against the accounts are included in “Policy charges and fee income”. Asset administration fees charged to the accounts are included in “Asset administration fees”. Seed money that the Company invests in separate accounts is reported in the appropriate general account asset line. Investment income and realized investment gains or losses from seed money invested in separate accounts accrue to the Company and are included in the Company’s results of operations. See Note 7 for additional information regarding separate account arrangements with contractual guarantees. See also “Separate account liabilities ” below. LIABILITIES Future policy benefits is primarily comprised of the present value of expected future payments to or on behalf of policyholders, where the timing and amount of payment depends on policyholder mortality or morbidity, less the present value of expected future net premiums (where net premiums are gross premiums multiplied by the Net-To-Gross ("NTG") ratio discussed below). The liability for future policy benefits is accrued over time as premium revenue is recognized. See Note 8 for additional information regarding future policy benefits. The reserving methodology used for non-participating traditional and limited-payment contracts include the following: • Cash Flow Assumptions . In measuring the liability for future policy benefits, the net premium valuation methodology is utilized. Under this methodology, a liability for future policy benefits is established using current best estimate insurance assumptions and interest rate assumptions locked-in at contract issuance date. The NTG ratio is calculated as the ratio of the present value of expected policy benefits and non-level claim settlement expenses divided by the present value of expected gross premiums. The NTG ratio is applied to gross premiums, as premium revenue is recognized, to determine net premiums. The liability is then determined as the present value of expected future policy benefits and non-level claim settlement expenses less the present value of expected future net premiums. For purposes of liability measurement, contracts are grouped into cohorts based primarily on issue year and major product line. The NTG ratio is generally updated quarterly for actual experience and annually for future cash flow assumption updates during the Company’s annual assumptions review process in the second quarter of each year unless a material change is observed in an interim period that is indicative of a long-term trend (see “ Annual Assumptions Review” below), and with the exception of claim settlement expense assumptions which the Company has made an entity-wide election to lock-in as of contract issuance. The NTG ratio is subject to a retrospective unlocking method whereby the Company updates its best estimate of cash flows expected over the life of the cohort using actual historical experience and updated future cash flow assumptions. These updated cash flows are used to calculate the revised NTG ratio, which is used to derive an updated liability for future policy benefits as of the beginning of the current reporting period, discounted at the original contract issuance discount rate. The updated liability for future policy benefit amount as of the beginning of the quarter is then compared to the carrying amount of the liability as of that same date, before the updates for actual experience or future cash flow assumptions, to determine the current period change in liability estimate. This current period change in the liability is the liability remeasurement gain or loss that is recorded through current period earnings in “Change in estimates of liability for future policy benefits.” In subsequent periods, the revised NTG ratio is used to measure the liability for future policy benefits, subject to future revisions. If a cohort is in a loss position where the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for expected future policy benefits and non-level claim settlement expenses, the NTG ratio is capped at 100%. In these instances, all changes in expected benefits resulting from both actual experience deviations and changes in future assumptions are reflected immediately. While the liability for future policy benefits cannot be less than zero (i.e., a contra-liability) at the cohort level and thus the balance is floored at zero (i.e., “flooring”), the NTG ratio may be negative. This would be the case whereby conditions have improved such that the present value of future net premiums plus the existing liability for future policy benefits as of the valuation date exceed the present value of expected future policy benefits and non-level claim settlement expenses. In this case, the negative NTG ratio would be applied going forward to gross premiums received, effectively amortizing the gain into income and reducing the liability over time. For contracts issued prior to January 1, 2021, the modified retrospective transition method was used to transition to ASU 2018-12. Under this method, the transition date of January 1, 2021 serves as the new issue date of the contracts in force for purposes of retrospectively unlocking the NTG ratio as described above. • Discount Rate Assumption. The locked-in discount rate is generally based on expected investment returns at contract inception for contracts issued prior to January 1, 2021 and the upper medium grade fixed income corporate instrument yield (i.e., global single A) at contract inception for contracts issued after January 1, 2021. The discount rate in effect at contract inception is locked-in for the calculation of the NTG ratio and accretion of interest cost on the liability through net income. However, for balance sheet remeasurement purposes, the discount rate is updated using the current single A rate at each reporting period, with the effect on the liability resulting from such update recorded in “Interest rate remeasurement of future policy benefits" in OCI. The methodology used in constructing the single A discount rate curve for discounting cash flows used to calculate the liability for future policy benefits is intended to be reflective of the characteristics of the applicable insurance liabilities. The single A discount rate curve is developed by reference to upper medium grade (low credit risk) fixed income instrument yields that reflect the duration characteristics of the applicable insurance liabilities. The single A discount curve for the United States and foreign economies, such as Japan, with observable corporate A spreads, is developed using government bond rates, plus globally equivalent public corporate A spreads in the observable periods. The definition of upper medium grade is based on Moody’s definition which includes the spectrum of A (i.e., A- to A+). The rate used in foreign operations (with the exception of certain emerging markets, as discussed below) is based on the equivalent of a single A rate from a global rating agency for corporate bonds issued in the same currency and country in which the insurance contract is written. Liquidity is considered in defining the observable period and linear extrapolation is performed to the Company's ultimate long-term economic assumptions. See “Annual Assumptions Review” below for further discussion regarding the Company’s long-term economic assumption setting process. The Company’s liability for future policy benefits also includes net liabilities for guaranteed benefits related to certain long-duration life contracts, such as no-lapse guarantee contract features (AIR liability), for which a liability is established when associated assessments are recognized (which include investment margin on policyholders' account balances in the general account and all policy charges including charges for administration, mortality, expense, surrender, and other charges). This liability is established using current best estimate assumptions and is based on the ratio of the present value of total expected excess payments (i.e., payments in excess of account value) over the life of the contract divided by the present value of total expected assessments (i.e., benefit ratio). For universal life type contracts and participating contracts, the Company performs premium deficiency tests using best estimate assumptions as of the testing date. If the liabilities determined based on these best estimate assumptions are greater than the net reserves (i.e., GAAP reserves including URR, net of reinsurance), the existing net reserves are adjusted by first reducing these assets by the amount of the deficiency or to zero through a charge to current period earnings. If the deficiency is more than these asset balances for insurance contracts, the net reserves are increased by the excess through a charge to current period earnings included in "policyholders' benefits". Since investment yields are used as the discount rate, the premium deficiency test is also performed using a discount rate based on the market yield (i.e., assuming what would be the impact if any unrealized gains (losses) were realized as of the testing date). In the event that by using the market yield a deficiency occurs, an adjustment is established for the deficiency and is included in AOCI. In certain instances, for universal life type contracts and participating contracts, the policyholder liability for a particular line of business may not be deficient in the aggregate to trigger loss recognition, but the pattern of earnings may be such that profits are expected to be recognized in earlier years followed by losses in later years. In these situations, accounting standards require that an additional liability (Profits Followed by Losses or “PFL” liability) be recognized by an amount necessary to sufficiently offset the losses that would be recognized in later years. Historically, PFL liabilities have been predominantly associated with certain universal life contracts that measure GAAP reserves using a dynamic approach, and accordingly, are updated each quarter, using current in force and market data, and as part of the annual assumption update, such that the liability as of each measurement date represents the Company’s current estimate of the present value of the amount necessary to offset anticipated future losses. The Company’s liability for future policy benefits also includes a liability for unpaid claims and claim adjustment expenses. The Company does not establish claim liabilities until a loss has been incurred. However, unpaid claims and claim adjustment expenses include estimates of claims that the Company believes have been incurred but have not yet been reported as of the balance sheet date. Policyholders’ account balances liability represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. This liability is primarily associated with the accumulated account deposits, plus interest credited, less policyholder withdrawals and other charges assessed against the account balance, as applicable. These policyholders’ account balances also include provision for benefits under non-life contingent payout annuities and certain unearned revenues. The unearned revenue liability represents policy charges for services to be provided in future periods. The charges are deferred as incurred and are generally amortized over the expected life of the contract using the same methodology, factors, and assumption used to amortize DAC. See Note 9 for additional information regarding policyholders’ account balances. Policyholders' account balances also include amounts representing the fair value of embedded derivative instruments associated with the index-linked feature of certain universal life and annuity products. For additional information regarding the valuation of these embedded derivatives, see Note 5. Market risk benefit liabilities (or assets ) represents contracts or contract features that provide protection to the contractholder and exposes the Company to other than nominal capital market risk, primarily related to deferred annuities with guaranteed minimum benefits associated with Annuities products including guaranteed minimum death benefits (“GMDB”), guaranteed minimum income benefits (“GMIB”), guaranteed minimum accumulation benefits (“GMAB”), guaranteed minimum withdrawal benefits (“GMWB”) and guaranteed minimum income and withdrawal benefits (“GMIWB”). The benefits are accounted for using a fair value measurement framework. If a contract contains multiple market risk benefits, the benefits are bundled together and accounted for as a single compound market risk benefit. Market risk benefits in an asset position are presented separately from those in a liability position as there is no legal right of offset between contracts. The fair value of market risk benefits is calculated as the present value of expected future benefit payments to contractholders less the present value of expected future rider fees attributable to the market risk benefit. The fair value of market risk benefits is based on assumptions a market participant would use in valuing market risk benefits. For additional information regarding the valuation of market risk benefits, see Note 5. On a quarterly basis, changes in the fair value of market risk benefits are recorded in net income, net of related hedges, in "Change in value of market risk benefits, net of related hedging gains (losses)", except for the portion of the change attributable to changes in the Company’s NPR which is recorded in OCI. See Note 10 for additional information regarding market risk benefits. Other liabilities consists |
Investments
Investments | 3 Months Ended |
Mar. 31, 2023 | |
Investments [Abstract] | |
Investments | INVESTMENTS Fixed Maturity Securities The following tables set forth the composition of fixed maturity securities (excluding investments classified as trading), as of the dates indicated: March 31, 2023 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 $ 52,350 $ 530 $ 216 $ 0 $ 52,664 Obligations of U.S. states and their political subdivisions 182,985 700 3,779 0 179,906 Foreign government bonds 94,250 50 14,977 0 79,323 U.S. public corporate securities 1,348,104 7,322 152,907 0 1,202,519 U.S. private corporate securities 195,195 781 10,532 0 185,444 Foreign public corporate securities 167,603 381 22,925 0 145,059 Foreign private corporate securities 136,113 983 18,377 0 118,719 Asset-backed securities(1) 17,731 242 208 0 17,765 Commercial mortgage-backed securities 123,021 0 8,555 0 114,466 Residential mortgage-backed securities(2) 12,470 113 262 3 12,318 Total fixed maturities, available-for-sale $ 2,329,822 $ 11,102 $ 232,738 $ 3 $ 2,108,183 (1) Includes credit-tranched securities collateralized by education loans and loan obligations. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. December 31, 2022 Amortized Gross Gross Allowance for Credit Losses Fair (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 62,210 $ 0 $ 1,074 $ 0 $ 61,136 Obligations of U.S. states and their political subdivisions 165,109 421 6,315 0 159,215 Foreign government bonds 87,853 1 15,891 0 71,963 U.S. public corporate securities 1,062,342 1,943 180,880 0 883,405 U.S. private corporate securities 186,123 141 13,465 358 172,441 Foreign public corporate securities 138,717 28 25,783 0 112,962 Foreign private corporate securities 133,074 523 21,562 0 112,035 Asset-backed securities(1) 18,358 272 256 0 18,374 Commercial mortgage-backed securities 124,486 0 8,595 0 115,891 Residential mortgage-backed securities(2) 12,446 92 467 5 12,066 Total fixed maturities, available-for-sale $ 1,990,718 $ 3,421 $ 274,288 $ 363 $ 1,719,488 (1) Includes credit-tranched securities collateralized by education loans and loan obligations. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. The following tables set forth the fair value and gross unrealized losses on available-for-sale fixed maturity securities without an allowance for credit losses aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the dates indicated: March 31, 2023 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 $ 2,025 $ 216 $ 2,025 $ 216 Obligations of U.S. states and their political subdivisions 91,811 1,768 23,724 2,011 115,535 3,779 Foreign government bonds 20,990 888 56,267 14,089 77,257 14,977 U.S. public corporate securities 294,009 13,374 682,776 139,533 976,785 152,907 U.S. private corporate securities 42,180 909 110,537 9,623 152,717 10,532 Foreign public corporate securities 25,478 1,167 97,851 21,758 123,329 22,925 Foreign private corporate securities 9,224 233 87,892 18,144 97,116 18,377 Asset-backed securities 1,237 20 7,233 188 8,470 208 Commercial mortgage-backed securities 30,033 3,122 84,434 5,433 114,467 8,555 Residential mortgage-backed securities 10,350 250 273 12 10,623 262 Total fixed maturities, available-for-sale $ 525,312 $ 21,731 $ 1,153,012 $ 211,007 $ 1,678,324 $ 232,738 December 31, 2022 Less Than Twelve Months Twelve Months or More Total Fair Value Gross Fair Value Gross Fair Value Gross (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 61,136 $ 1,074 $ 0 $ 0 $ 61,136 $ 1,074 Obligations of U.S. states and their political subdivisions 113,693 6,315 0 0 113,693 6,315 Foreign government bonds 46,826 5,741 24,746 10,150 71,572 15,891 U.S. public corporate securities 704,906 111,763 155,138 69,117 860,044 180,880 U.S. private corporate securities 149,670 11,857 9,273 1,608 158,943 13,465 Foreign public corporate securities 69,310 11,016 38,996 14,767 108,306 25,783 Foreign private corporate securities 62,044 12,499 33,858 9,063 95,902 21,562 Asset-backed securities 5,570 160 3,289 96 8,859 256 Commercial mortgage-backed securities 110,820 8,398 5,071 197 115,891 8,595 Residential mortgage-backed securities 10,509 467 0 0 10,509 467 Total fixed maturities, available-for-sale $ 1,334,484 $ 169,290 $ 270,371 $ 104,998 $ 1,604,855 $ 274,288 As of March 31, 2023 and December 31, 2022, the gross unrealized losses on fixed maturity available-for-sale securities without an allowance were composed of $228.4 million and $269.6 million, respectively, related to “1” highest quality or “2” high quality securities based on the National Association of Insurance Commissioners (“NAIC”) or equivalent rating and $4.3 million and $4.7 million, respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. As of March 31, 2023, the $211.0 million of gross unrealized losses of twelve months or more were concentrated in the Company’s corporate securities within the finance, utility and consumer non-cyclical sectors. As of December 31, 2022, the $105.0 million of gross unrealized losses of twelve months or more were concentrated in the Company’s corporate securities within the finance, consumer non-cyclical and capital goods sectors. In accordance with its policy described in Note 2 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, the Company concluded that an adjustment to earnings for credit losses related to these fixed maturity securities was not warranted at March 31, 2023. 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 March 31, 2023, 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: March 31, 2023 Amortized Cost Fair Value (in thousands) Fixed maturities, available-for-sale: Due in one year or less $ 81,580 $ 78,489 Due after one year through five years 250,358 235,884 Due after five years through ten years 154,199 149,387 Due after ten years 1,690,463 1,499,874 Asset-backed securities 17,731 17,765 Commercial mortgage-backed securities 123,021 114,466 Residential mortgage-backed securities 12,470 12,318 Total fixed maturities, available-for-sale $ 2,329,822 $ 2,108,183 Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Asset-backed, commercial mortgage-backed and residential mortgage-backed securities are shown separately in the table above, as they do not have a single maturity date. The following table sets forth the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on write-downs and the allowance for credit losses of fixed maturities, for the periods indicated: Three Months Ended March 31, 2023 2022 (in thousands) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 886 $ 20,241 Proceeds from maturities/prepayments 32,121 18,233 Gross investment gains from sales and maturities 29 2 Gross investment losses from sales and maturities (415) (1,961) (Addition to) release of allowance for credit losses 360 0 (1) Excludes activity from non-cash related proceeds due to the timing of trade settlements of $0.2 million and $0.0 million for the three months ended March 31, 2023 and 2022, respectively. The following table sets forth the activity in the allowance for credit losses for fixed maturity securities, as of the dates indicated: Three Months Ended March 31, 2023 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of period $ 0 $ 0 $ 358 $ 0 $ 0 $ 5 $ 363 Reductions for securities sold during the period 0 0 (358) 0 0 (1) (359) Additions (reductions) on securities with previous allowance 0 0 0 0 0 (1) (1) Balance, end of period $ 0 $ 0 $ 0 $ 0 $ 0 $ 3 $ 3 For the three months ended March 31, 2022, there was no activity in the allowance for credit losses for available-for-sale securities. See Note 2 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 for additional information about the Company’s methodology for developing our allowance and expected losses. For the three months ended March 31, 2023, the net decrease in the allowance for credit losses on available-for-sale securities was primarily related to a restructuring in the transportation sector within corporate securities. The Company did not have any fixed maturity securities purchased with credit deterioration, as of both March 31, 2023 and December 31, 2022. 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 $0.6 million and $(1.8) million during the three months ended March 31, 2023 and 2022, respectively. Equity Securities The net change in unrealized gains (losses) from equity securities still held at period end, recorded within “Other income (loss)”, was $(0.0) million and $(0.5) million during the three months ended March 31, 2023 and 2022, respectively. Commercial Mortgage and Other Loans The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: March 31, 2023 December 31, 2022 Amount % of Total Amount % of Total Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 62,244 38.8 % $ 62,434 42.0 % Hospitality 12,849 8.0 12,996 8.7 Industrial 31,627 19.7 17,132 11.5 Office 8,188 5.1 10,568 7.1 Other 7,796 4.9 7,767 5.2 Retail 22,021 13.8 22,123 14.9 Total commercial mortgage loans 144,725 90.3 133,020 89.4 Agricultural property loans 15,526 9.7 15,567 10.6 Total commercial mortgage and agricultural property loans 160,251 100.0 % 148,587 100.0 % Allowance for credit losses (499) (408) Total net commercial mortgage and other loans $ 159,752 $ 148,179 As of March 31, 2023, the commercial mortgage and agricultural property loans were secured by properties geographically dispersed throughout the United States (with the largest concentrations in New Jersey (13%), Florida (11%), New York (9%)) and included loans secured by properties in Europe (3%) and Mexico (2%). The following table sets forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated: Three Months Ended March 31, 2023 2022 Commercial Mortgage Loans Agricultural Property Loans Total Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance, beginning of period $ 405 $ 3 $ 408 $ 246 $ 0 $ 246 Addition to (release of) allowance for expected losses 38 53 91 (16) 1 (15) Allowance, end of period $ 443 $ 56 $ 499 $ 230 $ 1 $ 231 See Note 2 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 for additional information about the Company's methodology for developing our allowance and expected losses. For the three months ended March 31, 2023, the net increase in the allowance for credit losses on commercial mortgage and other loans was primarily related to portfolio growth. For the three months ended March 31, 2022, the net decrease in the allowance for credit losses on commercial mortgage and other loans was primarily related to net positive credit migration. 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: March 31, 2023 Amortized Cost by Origination Year 2023 2022 2021 2020 2019 Prior Total (in thousands) Commercial mortgage loans Loan-to-Value Ratio: 0%-59.99% $ 0 $ 19,978 $ 787 $ 0 $ 10,030 $ 47,468 $ 78,263 60%-69.99% 0 15,000 1,615 2,198 18,953 1,016 38,782 70%-79.99% 14,509 0 347 0 3,855 7,175 25,886 80% or greater 0 0 0 0 0 1,794 1,794 Total $ 14,509 $ 34,978 $ 2,749 $ 2,198 $ 32,838 $ 57,453 $ 144,725 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 14,509 $ 34,978 $ 2,749 $ 2,198 $ 27,743 $ 39,083 $ 121,260 1.0 - 1.2x 0 0 0 0 0 8,735 8,735 Less than 1.0x 0 0 0 0 5,095 9,635 14,730 Total $ 14,509 $ 34,978 $ 2,749 $ 2,198 $ 32,838 $ 57,453 $ 144,725 Agricultural property loans Loan-to-Value Ratio: 0%-59.99% $ 0 $ 1,068 $ 1,080 $ 0 $ 0 $ 1,033 $ 3,181 60%-69.99% 0 12,345 0 0 0 0 12,345 70%-79.99% 0 0 0 0 0 0 0 80% or greater 0 0 0 0 0 0 0 Total $ 0 $ 13,413 $ 1,080 $ 0 $ 0 $ 1,033 $ 15,526 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 0 $ 13,413 $ 1,080 $ 0 $ 0 $ 1,033 $ 15,526 1.0 - 1.2x 0 0 0 0 0 0 0 Less than 1.0x 0 0 0 0 0 0 0 Total $ 0 $ 13,413 $ 1,080 $ 0 $ 0 $ 1,033 $ 15,526 December 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total (in thousands) Commercial mortgage loans Loan-to-Value Ratio: 0%-59.99% $ 20,000 $ 792 $ 0 $ 9,993 $ 1,387 $ 48,812 $ 80,984 60%-69.99% 15,000 1,615 2,198 18,982 0 1,016 38,811 70%-79.99% 0 347 0 3,855 0 7,213 11,415 80% or greater 0 0 0 0 0 1,810 1,810 Total $ 35,000 $ 2,754 $ 2,198 $ 32,830 $ 1,387 $ 58,851 $ 133,020 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 35,000 $ 2,754 $ 2,198 $ 27,697 $ 1,387 $ 40,285 $ 109,321 1.0 - 1.2x 0 0 0 0 0 8,809 8,809 Less than 1.0x 0 0 0 5,133 0 9,757 14,890 Total $ 35,000 $ 2,754 $ 2,198 $ 32,830 $ 1,387 $ 58,851 $ 133,020 Agricultural property loans Loan-to-Value Ratio: 0%-59.99% $ 1,078 $ 1,092 $ 0 $ 0 $ 0 $ 1,052 $ 3,222 60%-69.99% 12,345 0 0 0 0 0 12,345 70%-79.99% 0 0 0 0 0 0 0 80% or greater 0 0 0 0 0 0 0 Total $ 13,423 $ 1,092 $ 0 $ 0 $ 0 $ 1,052 $ 15,567 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 13,423 $ 1,092 $ 0 $ 0 $ 0 $ 1,052 $ 15,567 1.0 - 1.2x 0 0 0 0 0 0 0 Less than 1.0x 0 0 0 0 0 0 0 Total $ 13,423 $ 1,092 $ 0 $ 0 $ 0 $ 1,052 $ 15,567 See Note 2 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 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: March 31, 2023 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 $ 144,725 $ 0 $ 0 $ 0 $ 144,725 $ 0 Agricultural property loans 15,526 0 0 0 15,526 0 Total $ 160,251 $ 0 $ 0 $ 0 $ 160,251 $ 0 (1) As of March 31, 2023, there were no loans in this category accruing interest. (2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. December 31, 2022 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status(2) (in thousands) Commercial mortgage loans $ 133,020 $ 0 $ 0 $ 0 $ 133,020 $ 0 Agricultural property loans 15,567 0 0 0 15,567 0 Total $ 148,587 $ 0 $ 0 $ 0 $ 148,587 $ 0 (1) As of December 31, 2022, there were no loans in this category accruing interest. (2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. For both the three months ended March 31, 2023 and 2022, there were no commercial mortgage and other loans acquired, other than those through direct origination, and there were no commercial mortgage and other loans sold. The Company did not have any commercial mortgage and other loans purchased with credit deterioration, as of both March 31, 2023 and December 31, 2022. Other Invested Assets The following table sets forth the composition of “Other invested assets,” as of the dates indicated: March 31, 2023 December 31, 2022 (in thousands) LPs/LLCs: Equity method: Private equity 78,320 74,468 Hedge funds 43,407 42,472 Real estate-related 9,801 10,199 Subtotal equity method 131,528 127,139 Fair value: Private equity 256 279 Hedge funds 44 55 Real estate-related 1,935 2,055 Subtotal fair value 2,235 2,389 Total LPs/LLCs 133,763 129,528 Total other invested assets $ 133,763 $ 129,528 Accrued Investment Income The following table sets forth the composition of “Accrued investment income,” as of the dates indicated: March 31, 2023 December 31, 2022 (in thousands) Fixed maturities $ 24,081 $ 18,653 Equity securities 92 1 Commercial mortgage and other loans 455 352 Policy loans 5,745 5,612 Short-term investments and cash equivalents 691 604 Total accrued investment income $ 31,064 $ 25,222 There were no significant write-downs on accrued investment income for both the three months ended March 31, 2023 and 2022. Net Investment Income The following table sets forth “Net investment income” by investment type, for the periods indicated: Three Months Ended March 31, 2023 2022 (in thousands) Fixed maturities, available-for-sale $ 21,117 $ 17,125 Fixed maturities, trading 157 274 Equity securities 91 91 Commercial mortgage and other loans 1,679 1,082 Policy loans 2,525 2,772 Other invested assets 1,478 4,000 Short-term investments and cash equivalents 2,641 60 Gross investment income 29,688 25,404 Less: investment expenses (1,028) (1,035) Net investment income $ 28,660 $ 24,369 Realized Investment Gains (Losses), Net The following table sets forth “Realized investment gains (losses), net” by investment type, for the periods indicated: Three Months Ended March 31, 2023 2022 (in thousands) Fixed maturities(1) $ (26) $ (1,959) Commercial mortgage and other loans (91) 15 Other invested assets 0 (51) Derivatives (8,241) 17,727 Short term investments and cash equivalents 60 (12) Realized investment gains (losses), net $ (8,298) $ 15,720 (1) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading. Net Unrealized Gains (Losses) on Investments within AOCI The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated: March 31, 2023 December 31, 2022 (in thousands) Fixed maturity securities, available-for-sale without an allowance $ (221,636) $ (270,867) Derivatives designated as cash flow hedges(1) 12,513 14,102 Affiliated notes 61 59 Other investments 127 122 Net unrealized gains (losses) on investments $ (208,935) $ (256,584) (1) For more information on cash flow hedges, see Note 4. Repurchase Agreements and Securities Lending In the normal course of business, the Company sells securities under agreements to repurchase and enters into securities lending transactions. As of both March 31, 2023 and December 31, 2022, 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: March 31, 2023 December 31, 2022 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 $ 3,325 $ 0 $ 3,325 $ 0 $ 0 $ 0 Total cash collateral for loaned securities(1) $ 3,325 $ 0 $ 3,325 $ 0 $ 0 $ 0 (1) The Company did not have agreements with remaining contractual maturities greater than thirty days, as of the dates indicated. |
Derivatives and Hedging
Derivatives and Hedging | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Hedging | . DERIVATIVES AND HEDGING Types of Derivative Instruments and Derivative Strategies The Company utilizes various derivative instruments and strategies to manage its risk. Commonly used derivative instruments include, but are not necessarily limited to: • Interest rate contracts: futures, swaps, options, caps and floors • Equity contracts: futures, options and total return swaps • Foreign exchange contracts: futures, options, forwards and swaps • Credit contracts: single and index reference credit default swaps Other types of financial contracts that the Company accounts for as derivatives include: • Embedded derivatives For detailed information on these contracts and the related strategies, see Note 4 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. 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 of the netting effects of master netting agreements and cash collateral. March 31, 2023 December 31, 2022 Primary Underlying Risk/Instrument Type Fair Value Fair Value Gross Notional Assets Liabilities Gross Notional Assets Liabilities (in thousands) Derivatives Designated as Hedge Accounting Instruments: Currency/Interest Rate Foreign Currency Swaps $ 121,573 $ 12,726 $ (716) $ 117,015 $ 14,281 $ (516) Total Derivatives Designated as Hedge Accounting Instruments: $ 121,573 $ 12,726 $ (716) $ 117,015 $ 14,281 $ (516) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 30,200 $ 169 $ (348) $ 30,200 $ 0 $ (383) Credit Credit Default Swaps 0 0 0 0 0 0 Currency/Interest Rate Foreign Currency Swaps 24,035 2,535 0 24,035 2,957 0 Foreign Currency Foreign Currency Forwards 8,336 1 (125) 7,520 3 (368) Equity Equity Options 510,150 2,199 (18,506) 509,200 555 (20,562) Total Derivatives Not Qualifying as Hedge Accounting Instruments: $ 572,721 $ 4,904 $ (18,979) $ 570,955 $ 3,515 $ (21,313) Total Derivatives(1)(2) $ 694,294 $ 17,630 $ (19,695) $ 687,970 $ 17,796 $ (21,829) (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 $127 million and $108 million as of March 31, 2023 and December 31, 2022, respectively included in “Policyholders’ account balances". (2) Recorded in "Other invested assets" and "Payables to parent and affiliates" on the Unaudited Interim 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 Unaudited Interim Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Statements of Financial Position. March 31, 2023 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 17,630 $ (17,630) $ 0 $ 0 $ 0 Securities purchased under agreements to resell 0 0 0 0 0 Total Assets $ 17,630 $ (17,630) $ 0 $ 0 $ 0 Offsetting of Financial Liabilities: Derivatives $ 19,695 $ (17,630) $ 2,065 $ (2,065) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 19,695 $ (17,630) $ 2,065 $ (2,065) $ 0 December 31, 2022 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 17,796 $ (17,796) $ 0 $ 0 $ 0 Securities purchased under agreements to resell 0 0 0 0 0 Total Assets $ 17,796 $ (17,796) $ 0 $ 0 $ 0 Offsetting of Financial Liabilities: Derivatives $ 21,829 $ (17,796) $ 4,033 $ (4,033) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 21,829 $ (17,796) $ 4,033 $ (4,033) $ 0 (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 14. 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 regarding the Company’s accounting policy for securities repurchase and resale agreements, see Note 2 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Cash Flow Hedges The primary derivative instruments used by the Company in its cash flow hedge accounting relationships are currency swaps. These instruments are only designated for hedge accounting in instances where the appropriate criteria are met. The Company does not use futures, options, credit or equity derivatives in any of its cash flow hedge accounting relationships. The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship. Three Months Ended March 31, 2023 Realized Change in Value of Market Risk Benefits, Net of Related Hedging Gain (Loss) Net Other Income Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 18 $ 0 $ 481 $ (112) $ (1,589) Total cash flow hedges 18 0 481 (112) (1,589) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 167 0 0 0 0 Currency (82) 0 0 0 0 Currency/Interest Rate (228) 0 0 (8) 0 Credit 0 0 0 0 0 Equity 1,759 0 0 0 0 Embedded Derivatives (9,875) 0 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (8,259) 0 0 (8) 0 Total $ (8,241) $ 0 $ 481 $ (120) $ (1,589) Three Months Ended March 31, 2022 (1) Realized Change in Value of Market Risk Benefits, Net of Related Hedging Gain (Loss) Net Other Income Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 31 $ 0 $ 451 $ 188 $ 1,222 Total cash flow hedges 31 0 451 188 1,222 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (1,201) 0 0 0 0 Currency 115 0 0 0 0 Currency/Interest Rate 290 0 0 8 0 Credit 0 0 0 0 0 Equity (1,526) 0 0 0 0 Embedded Derivatives 20,018 0 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments 17,696 0 0 8 0 Total $ 17,727 $ 0 $ 451 $ 196 $ 1,222 (1) Prior period amounts have been updated to conform to current period presentation. Presented below is a rollforward of current period cash flow hedges in AOCI before taxes: (in thousands) Balance, December 31, 2022 $ 14,102 Amount recorded in AOCI Currency/Interest Rate (1,202) Total amount recorded in AOCI (1,202) Amount reclassified from AOCI to income Currency/Interest Rate (387) Total amount reclassified from AOCI to income (387) Balance, March 31, 2023 $ 12,513 The changes in fair value of cash flow hedges are deferred in AOCI and are included in "Net unrealized investment gains (losses)" in the Unaudited Interim Statements of Operations and Comprehensive Income (Loss); these amounts are then reclassified to earnings when the hedged item affects earnings. Using March 31, 2023 values, it is estimated that a pre-tax gain of $1.7 million is expected to be reclassified from AOCI to earnings during the subsequent twelve months ending March 31, 2024. The exposures the Company is hedging with these qualifying cash flow hedges include the variability of the payment or receipt of interest or foreign currency amounts on existing financial instruments. There were no material amounts reclassified from AOCI into earnings relating to instances in which the Company discontinued cash flow hedge accounting because the forecasted transaction did not occur by the anticipated date or within the additional time period permitted by the authoritative guidance for the accounting for derivatives and hedging. Credit Derivatives The Company has no exposure from credit derivative positions where it has written or purchased credit protection as of March 31, 2023 and December 31, 2022. Counterparty Credit Risk The Company is exposed to credit-related losses in the event of non-performance by counterparties to financial derivative transactions with a positive fair value. The Company manages credit risk by entering into derivative transactions with regulated derivatives exchanges for exchange traded derivatives and its affiliate, Prudential Global Funding LLC (“PGF”), related to its over-the-counter ("OTC") derivatives. PGF, in turn, manages its credit risk by: (i) entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties governed by master netting agreement, as applicable; (ii) trading through central clearing and OTC parties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single-party credit exposures which are subject to periodic management review. Substantially all of the Company’s derivative agreements have zero thresholds which require daily full collateralization by the party in a liability position. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | FAIR VALUE OF ASSETS AND LIABILITIES Fair Value Measurement – Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows: Level 1 – Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities. Level 2 – Fair value is based on significant inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, and other market observable inputs. Level 3 – Fair value is based on at least one significant unobservable input for the asset or liability. The assets and liabilities in this category may require significant judgment or estimation in determining the fair value. For a discussion of the Company's valuation methodologies for assets and liabilities measured at fair value and the fair value hierarchy, see Note 5 to the Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. As a result of the adoption of ASU 2018-12 in the first quarter of 2023, the Company is required to measure all market risk benefits (e.g., living benefit and death benefit guarantees associated with variable annuities) at fair value. Market risk benefit liabilities (or assets) represent contracts or contract features that provide protection to the contractholder and exposes the Company to other than nominal capital market risk, primarily related to deferred annuities with guaranteed minimum benefits in the annuities products including guaranteed minimum death benefits (“GMDB”), guaranteed minimum income benefits (“GMIB”), guaranteed minimum accumulation benefits (“GMAB”), guaranteed minimum withdrawal benefits (“GMWB”) and guaranteed minimum income and withdrawal benefits (“GMIWB”). The benefits are bundled together and accounted for as single compound market risk benefits using a fair value measurement framework. The fair value of these market risk benefits is calculated as the present value of expected future benefit payments to contract holders less the present value of expected future rider fees attributable to the market risk benefit. The fair value of these benefit features is based on assumptions a market participant would use in valuing market risk benefits. This methodology could result in either a liability or asset balance, given changing capital market conditions and various actuarial assumptions. Since there is no observable active market for the transfer of these obligations, the valuations are calculated using internally-developed models with option pricing techniques. The models are based on a risk neutral valuation framework and incorporate premiums for risks inherent in valuation techniques, inputs, and the general uncertainty around the timing and amount of future cash flows. The determination of these risk premiums requires the use of management’s judgment. The significant inputs to the valuation models for these market risk benefits include capital market assumptions, such as interest rate levels and volatility assumptions, the Company’s market-perceived NPR, as well as actuarially determined assumptions, including contractholder behavior, such as lapse rates, benefit utilization rates, withdrawal rates, and mortality rates. Since many of these assumptions are unobservable and are considered to be significant inputs to the valuations, the assets and liabilities included in market risk benefits have been reflected within Level 3 in the fair value hierarchy. Capital market inputs and actual policyholders’ account values are updated each quarter based on capital market conditions as of the end of the quarter, including interest rates, equity markets and volatility. In the risk neutral valuation, the initial swap curve drives the total return used to grow the policyholders’ account values. The Company’s discount rate assumption is based on the SOFR swap curve adjusted for an additional spread relative to SOFR to reflect the Company’s market-perceived NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with the Company issued funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because funding agreements, living benefit guarantees, and index-linked interest crediting guarantees are insurance liabilities and are therefore senior to debt. Actuarial assumptions, including contractholder behavior and mortality, are reviewed at least annually, and updated based upon company emerging experience and industry studies, future expectations and other data, including any observable market data. These assumptions are generally updated annually unless a material change that the Company feels is indicative of a long-term trend is observed in an interim period. 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. March 31, 2023 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 $ 52,664 $ 0 $ $ 52,664 Obligations of U.S. states and their political subdivisions 0 179,906 0 179,906 Foreign government bonds 0 79,323 0 79,323 U.S. corporate public securities 0 1,202,519 0 1,202,519 U.S. corporate private securities 0 181,868 3,576 185,444 Foreign corporate public securities 0 145,059 0 145,059 Foreign corporate private securities 0 118,719 0 118,719 Asset-backed securities(2) 0 17,765 0 17,765 Commercial mortgage-backed securities 0 94,585 19,881 114,466 Residential mortgage-backed securities 0 12,318 0 12,318 Subtotal 0 2,084,726 23,457 2,108,183 Market risk benefit assets 0 0 562,922 562,922 Fixed maturities, trading 0 23,938 0 23,938 Equity securities 0 69 4,294 4,363 Short-term investments 0 8,000 0 8,000 Cash equivalents 0 81,323 0 81,323 Other invested assets(3) 0 17,630 0 (17,630) 0 Reinsurance recoverable 0 0 1,357 1,357 Receivables from parent and affiliates 0 699 0 699 Subtotal excluding separate account assets 0 2,216,385 592,030 (17,630) 2,790,785 Separate account assets(4)(5) 0 12,452,598 0 12,452,598 Total assets $ 0 $ 14,668,983 $ 592,030 $ (17,630) $ 15,243,383 Market risk benefit liabilities $ 0 $ 0 $ 562,922 $ $ 562,922 Policyholders' account balances 0 0 127,032 127,032 Payables to parent and affiliates 0 19,695 0 (17,630) 2,065 Total liabilities $ 0 $ 19,695 $ 689,954 $ (17,630) $ 692,019 December 31, 2022 Level 1 Level 2 Level 3 Netting(1) Total (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 61,136 $ 0 $ $ 61,136 Obligations of U.S. states and their political subdivisions 0 159,215 0 159,215 Foreign government bonds 0 71,963 0 71,963 U.S. corporate public securities 0 883,405 0 883,405 U.S. corporate private securities 0 168,638 3,803 172,441 Foreign corporate public securities 0 112,962 0 112,962 Foreign corporate private securities 0 112,035 0 112,035 Asset-backed securities(2) 0 18,374 0 18,374 Commercial mortgage-backed securities 0 95,190 20,701 115,891 Residential mortgage-backed securities 0 12,066 0 12,066 Subtotal 0 1,694,984 24,504 1,719,488 Market risk benefit assets 0 0 558,624 558,624 Fixed maturities, trading 0 23,782 0 23,782 Equity securities 0 67 4,291 4,358 Short-term investments 0 3,000 0 3,000 Cash equivalents 0 245,302 0 245,302 Other invested assets(3) 0 17,796 0 (17,796) 0 Reinsurance recoverable 0 0 0 0 Receivables from parent and affiliates 0 688 0 688 Subtotal excluding separate account assets 0 1,985,619 587,419 (17,796) 2,555,242 Separate account assets(4)(5) 0 12,014,623 0 12,014,623 Total assets $ 0 $ 14,000,242 $ 587,419 $ (17,796) $ 14,569,865 Market risk benefit liabilities $ 0 $ 0 $ 558,624 $ $ 558,624 Policyholders' account balances 0 0 108,144 108,144 Payables to parent and affiliates 0 21,829 0 (17,796) 4,033 Total liabilities $ 0 $ 21,829 $ 666,768 $ (17,796) $ 670,801 (1) “Netting” amounts represent cash collateral of $0 million as of both March 31, 2023 and December 31, 2022. (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. As of March 31, 2023 and December 31, 2022, the fair values of such investments were $2.2 million and $2.4 million, respectively. (4) 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 March 31, 2023 and December 31, 2022, the fair value of such investments were $1,961 million and $1,912 million, respectively. (5) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company's Unaudited Interim Statements of Financial Position. Quantitative Information Regarding Internally Priced Level 3 Assets and Liabilities – The tables below present quantitative information regarding significant internally-priced Level 3 assets and liabilities. March 31, 2023 Fair Value Valuation Unobservable Minimum Maximum Weighted Impact of Increase in Input on Fair (in thousands) Assets: Corporate securities(2) $ 3,576 Discounted cash flow Discount rate 10.68 % 10.68 % 10.68 % Decrease Commercial mortgage-backed securities $ 19,881 Discounted cash flow Liquidity premium 0.60 % 0.75 % 0.69 % Decrease Market risk benefit assets(3) $ 562,922 Discounted cash flow Lapse rate(4) 1 % 20 % Increase Spread over SOFR(5) 0.52 % 2.20 % Increase Utilization rate(6) 38 % 95 % Decrease Withdrawal rate See table footnote (7) below. Mortality rate(8) 0 % 15 % Increase Equity volatility curve 18 % 25 % Decrease Liabilities: Market risk benefit liabilities(3) $ 562,922 Discounted cash flow Lapse rate(4) 1 % 20 % Decrease Spread over SOFR(5) 0.52 % 2.20 % Decrease Utilization rate(6) 38 % 95 % Increase Withdrawal rate See table footnote (7) below. Mortality rate(8) 0 % 15 % Decrease Equity volatility curve 18 % 25 % Increase Policyholders' account balances(9) $ 127,032 Discounted cash flow Lapse rate(4) 1 % 80 % Decrease Spread over SOFR(5) 0.27 % 2.34 % Decrease Mortality rate(8) 0 % 23 % Decrease Equity volatility curve 14 % 30 % Increase Option budget(10) (2) % 6 % Increase December 31, 2022 Fair Value Valuation Unobservable Inputs Minimum Maximum Weighted Impact of Increase (in thousands) Assets: Corporate securities(2) $ 3,803 Discounted cash flow Discount rate 10.18 % 10.18 % 10.18 % Decrease Commercial mortgage-backed securities $ 20,701 Discounted cash flow Liquidity premium 60 % 75 % 69.05 % Decrease Market risk benefit assets(3) $ 558,624 Discounted cash flow Lapse rate(4) 1 % 20 % Increase Spread over SOFR(5) 0.51 % 2.14 % Increase Utilization rate(6) 38 % 95 % Decrease Withdrawal rate See table footnote (7) below. Mortality rate(8) 0 % 15 % Increase Equity volatility curve 18 % 28 % Decrease Liabilities: Market risk benefit liabilities(3) $ 558,624 Discounted cash flow Lapse rate(4) 1 % 20 % Decrease Spread over SOFR(5) 0.51 % 2.14 % Decrease Utilization rate(6) 38 % 95 % Increase Withdrawal rate See table footnote (7) below. Mortality rate(8) 0 % 15 % Decrease Equity volatility curve 18 % 28 % Increase Policyholders' account balances(9) $ 108,144 Discounted cash flow Lapse rate(4) 1 % 6 % Decrease Spread over SOFR(5) 0.17 % 0.66 % Decrease Mortality rate(8) 0 % 23 % Decrease Equity volatility curve 18 % 28 % Increase (1) Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table. (2) Includes assets classified as fixed maturities available-for-sale. (3) Market risk benefits primarily represent fair value for all living benefit guarantees including accommodation, withdrawal and income benefits. Since the valuation methodology for these assets and liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (4) 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. (5) The spread over the Secured Overnight Financing Rate (“SOFR”) swap curve and the London Inter-Bank Offered Rate (“LIBOR”) swap curve represents the premium added to the proxy for the risk-free rate (SOFR or LIBOR, as applicable) to reflect the Company’s estimates of rates that a market participant would use to value the living benefits in both the accumulation and payout phases and index-linked interest crediting guarantees as of March 31, 2023 and December 31, 2022, respectively. This spread includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because funding agreements, living benefit guarantees, and index-linked interest crediting guarantees are insurance liabilities and are therefore senior to debt. (6) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits. (7) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of both March 31, 2023 and December 31, 2022, the minimum withdrawal rate assumption is 77% and maximum withdrawal rate assumption may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%. (8) The range reflects the mortality rates for the vast majority of business with living benefits and other contracts, with policyholders ranging from 50 to 90 years old. While the majority of living benefits have a minimum age requirement, certain other contracts do not have an age restriction. This results in contractholders with mortality rates approaching 0% for certain benefits. Mortality rates may vary by product, age, and duration. A mortality improvement assumption is also incorporated into the overall mortality table. (9) 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 weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (10) Option budget estimates the expected long-term cost of options used to hedge exposures associated with equity price and interest rate changes. The level of option budgets determines future costs of the options, which impacts the growth in account value and the valuation of embedded derivatives. Interrelationships Between Unobservable Inputs – In addition to the sensitivities of fair value measurements to changes in each unobservable input in isolation, as reflected in the table above, interrelationships between these inputs may also exist, such that a change in one unobservable input may give rise to a change in another or multiple inputs. Examples of such interrelationships for significant internally-priced Level 3 assets and liabilities are as follows: Corporate Securities – The rate used to discount future cash flows reflects current risk-free rates plus credit and liquidity spread requirements that market participants would use to value an asset. The discount rate may be influenced by many factors, including market cycles, expectations of default, collateral, term, and asset complexity. Each of these factors can influence discount rates, either in isolation, or in response to other factors. During weaker economic cycles, as the expectations of default increases, credit spreads widen, which results in a decrease in fair value. Commercial Mortgage-backed Securities – Interrelationships may exist between the prepayment rate, the default rate and/ or loss severity, depending on specific market conditions. In stronger economic cycles, prepayment rates are generally driven by underlying property appreciation and subsequent cash-out refinances, while default rates and loss severity may be lower. During weaker economic cycles, prepayment rates may decline, while default rates and loss severity increase. Generally, a change in the assumption used for the probability of default would have been accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for prepayment rates. The impact of these factors on average life and economics varies with the deal structure and tranche subordination. Market Risk Benefits – The Company expects efficient benefit utilization and withdrawal rates to generally be correlated with lapse rates. However, behavior is generally highly dependent on the facts and circumstances surrounding the individual contractholder, such as their liquidity needs or tax situation, which could drive lapse behavior independent of other contractholder behavior assumptions. To the extent more efficient contractholder behavior results in greater in-the-moneyness at the contract level, lapse rates may decline for those contracts. Similarly, to the extent that increases in equity volatility are correlated with overall declines in the capital markets, lapse rates may decline as contracts become more in-the-money. Changes in Level 3 Assets and Liabilities – The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. 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. Three Months Ended March 31, 2023(5) Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(1) (in thousands) Fixed maturities, available-for-sale: Corporate securities(2) $ 3,803 $ (36) $ 3,644 $ 0 $ 0 $ (3,835) $ 0 $ 0 $ 0 $ 3,576 $ (37) Structured securities(3) 20,701 (733) 0 0 0 (87) 0 0 0 19,881 (720) Other assets: Equity securities 4,291 3 0 0 0 0 0 0 0 4,294 3 Reinsurance recoverable 0 1,357 0 0 0 0 0 0 0 1,357 1,357 Liabilities: Policyholders' account balances(4) (108,144) (10,832) 0 0 (8,056) 0 0 0 0 (127,032) (13,914) Three Months Ended March 31, 2023(5) Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(1) Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ (2) $ 0 $ (756) $ (11) $ 0 $ 0 $ (757) Other assets: Equity securities 0 3 0 0 0 3 0 Reinsurance recoverable 1,357 0 0 0 1,357 0 0 Liabilities: Policyholders' account balances (10,832) 0 0 0 (13,914) 0 0 Three Months Ended March 31, 2022(5) Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(1) (in thousands) Fixed maturities, available-for-sale: Corporate securities(2) 24,319 (2,864) 0 0 0 (632) 0 0 0 20,823 (2,821) Structured securities(3) 27,274 (2,795) 0 0 0 (82) 0 0 0 24,397 (2,796) Other assets: Equity securities 5,812 (514) 0 0 0 0 0 0 0 5,298 (514) Reinsurance recoverable 0 0 0 0 0 0 0 0 0 0 0 Liabilities: Policyholders' account balances(4) (153,127) 19,553 0 0 0 2,644 0 0 0 (130,930) 21,607 Three Months Ended March 31, 2022(5) Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(1) Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ 0 $ 0 $ (5,661) $ 2 $ 0 $ 0 $ (5,617) Other assets: Equity securities 0 (514) 0 0 0 (514) 0 Reinsurance recoverable 0 0 0 0 0 0 0 Liabilities: Policyholders' account balances 19,553 0 0 0 21,607 0 0 (1) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts. (2) Includes U.S. corporate private securities. (3) Includes commercial mortgage-backed securities. (4) Issuances and settlements for Policyholders' account balances are presented net in the rollforward. (5) Effective January 1, 2021, Future policy benefits previously included in “changes in level 3 assets and liabilities” are reported in Note 10 Market Risk Benefits. Fair Value of Financial Instruments The tables below present the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Unaudited Interim Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value. March 31, 2023 Fair Value Carrying Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 155,427 $ 155,427 $ 159,752 Policy loans 0 0 212,479 212,479 212,479 Short-term investments 4,000 0 0 4,000 4,000 Cash and cash equivalents 1,963 0 0 1,963 1,963 Accrued investment income 0 31,064 0 31,064 31,064 Reinsurance recoverables 0 0 24,462 24,462 26,196 Receivables from parent and affiliates 0 16,875 0 16,875 16,875 Other assets 0 3,805 0 3,805 3,805 Total assets $ 5,963 $ 51,744 $ 392,368 $ 450,075 $ 456,134 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 165,411 $ 34,845 $ 200,256 $ 201,990 Cash collateral for loaned securities 0 3,325 0 3,325 3,325 Payables to parent and affiliates 0 9 0 9 9 Other liabilities 0 56,513 0 56,513 56,513 Total liabilities $ 0 $ 225,258 $ 34,845 $ 260,103 $ 261,837 December 31, 2022 Fair Value Carrying Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 141,513 $ 141,513 $ 148,179 Policy loans 0 0 212,063 212,063 212,063 Short-term investments 4,000 0 0 4,000 4,000 Cash and cash equivalents 10,465 0 0 10,465 10,465 Accrued investment income 0 25,222 0 25,222 25,222 Reinsurance recoverables 0 0 25,127 25,127 27,183 Receivables from parent and affiliates 0 18,660 0 18,660 18,660 Other assets 0 3,852 0 3,852 3,852 Total assets $ 14,465 $ 47,734 $ 378,703 $ 440,902 $ 449,624 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 180,576 $ 36,746 $ 217,322 $ 219,378 Cash collateral for loaned securities 0 0 0 0 0 Payables to parent and affiliates 0 3,513 0 3,513 3,513 Other liabilities 0 51,312 0 51,312 51,312 Total liabilities $ 0 $ 235,401 $ 36,746 $ 272,147 $ 274,203 (1) Carrying values presented herein differ from those in the Company’s Unaudited Interim Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs and Deferred Reinsurance | 3 Months Ended |
Mar. 31, 2023 | |
Deferred Charges, Insurers [Abstract] | |
Deferred Policy Acquisition Costs and Deferred Reinsurance | DEFERRED POLICY ACQUISITION COSTS AND DEFERRED REINSURANCE The following tables show a rollforward for the lines of business that contain DAC balances, along with a reconciliation to the Company's total DAC balance: March 31, 2023 Term Life Variable / Universal Life Total (in thousands) Balance, beginning of period $ 70,213 $ 281,661 $ 351,874 Capitalization 4,007 10,791 14,798 Amortization expense (1,748) (3,272) (5,020) Other 0 3 3 Balance, end of period $ 72,472 $ 289,183 $ 361,655 March 31, 2022 Term Life Variable / Universal Life Total (in thousands) Balance, beginning of period $ 62,091 $ 246,653 $ 308,744 Capitalization 4,228 13,642 17,870 Amortization expense (1,650) (3,179) (4,829) Other 0 (4) (4) Balance, end of period $ 64,669 $ 257,112 $ 321,781 Deferred Reinsurance Losses The following tables show a rollforward of DRL balances for variable annuity products, which is the only line of business that contains a DRL balance, along with a reconciliation to the Company's total DRL balance: March 31, 2023 Variable Annuities (in thousands) Balance, beginning of period $ 17,425 Amortization expense (378) Balance, end of period $ 17,047 March 31, 2022 Variable Annuities (in thousands) Balance, beginning of period $ 18,977 Amortization expense (395) Balance, end of period $ 18,582 |
Separate Accounts
Separate Accounts | 3 Months Ended |
Mar. 31, 2023 | |
Insurance [Abstract] | |
Separate Accounts | SEPARATE ACCOUNTS The Company issues annuity and life insurance variable contracts through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contractholder. Most annuity and life insurance variable contracts are offered with both separate and general account options . The Company also issues variable annuity contracts 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. 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, and/or (2) the highest contract value on a specified date adjusted for any withdrawals. These guarantees include benefits that are payable in the event of death, annuitization or at specified dates during the accumulation period and withdrawal and income benefits payable during specified periods. The assets supporting the variable portion of annuity and life insurance variable contracts are carried at fair value and reported as “Separate account assets” with an equivalent amount reported as “Separate account liabilities.” The liabilities related to the net amount at risk are reflected within future policy benefits or market risk benefits. Amounts assessed against the contractholders for mortality, administration, and other services are included within revenue in “Policy charges and fee income” and changes in liabilities for minimum guarantees are generally included in “Policyholders’ benefits” or “Realized investment gains (losses), net.” Separate Account Assets The aggregate fair value of assets, by major investment asset category, supporting separate accounts is as follows: March 31, 2023 December 31, 2022 (in thousands) Asset Type: Mutual funds: Equity $ 7,642,559 $ 7,430,452 Fixed Income 4,139,655 3,973,001 Other 670,384 611,170 Other invested assets 1,961,083 1,912,335 Total $ 14,413,681 $ 13,926,958 For the periods ended March 31, 2023 and December 31, 2022, there were no transfers of assets, other than cash, from the general account to a separate account; therefore, no gains or losses were recorded. Separate Account Liabilities The balances of and changes in separate account liabilities are as follows: March 31, 2023 Variable Annuities Variable Life Total (in thousands) Balance, beginning of period $ 8,928,568 $ 4,998,390 $ 13,926,958 Deposits 8,431 43,878 52,309 Investment performance 439,099 263,521 702,620 Policy charges (55,991) (25,372) (81,363) Surrenders and withdrawals (194,702) (11,989) (206,691) Benefit payments (1,378) (9,924) (11,302) Net transfers (to) from general account 913 28,189 29,102 Other 397 1,651 2,048 Balance, end of period $ 9,125,337 $ 5,288,344 $ 14,413,681 Cash surrender value(1) $ 8,933,846 $ 5,208,516 $ 14,142,362 (1) Cash surrender value represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. March 31, 2022 Variable Annuities Variable Life Total (in thousands) Balance, beginning of period $ 11,982,322 $ 5,940,046 $ 17,922,368 Deposits 24,269 48,156 72,425 Investment performance (776,250) (296,251) (1,072,501) Policy charges (64,417) (25,566) (89,983) Surrenders and withdrawals (217,281) (6,875) (224,156) Benefit payments (1,219) (13,214) (14,433) Net transfers (to) from general account (2) (12,141) (12,143) Other 270 2,298 2,568 Balance, end of period $ 10,947,692 $ 5,636,453 $ 16,584,145 Cash surrender value(1) $ 10,707,646 $ 5,561,179 $ 16,268,825 (1) Cash surrender value represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. |
Liability For Future Policy Ben
Liability For Future Policy Benefits | 3 Months Ended |
Mar. 31, 2023 | |
Insurance [Abstract] | |
Liability For Future Policy Benefits | LIABILITY FOR FUTURE POLICY BENEFITS Liability for Future Policy Benefits primarily consists of the following sub-components, which are discussed in greater detail below. • Benefit Reserves; • Deferred Profit Liability; and • Additional Insurance Reserves Benefit Reserves The balances of and changes in Benefit Reserves as of and for the periods indicated consist of the three tables presented below: Present Value of Expected Net Premiums rollforward, Present Value of Expected Future Policy Benefits rollforward, and Net Liability for Future Policy Benefits. March 31, 2023 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 1,416,807 $ 0 $ 1,416,807 Effect of cumulative changes in discount rate assumptions, beginning of period 73,563 0 73,563 Balance at original discount rate, beginning of period 1,490,370 0 1,490,370 Effect of actual variances from expected experience (10,232) (599) (10,831) Adjusted balance, beginning of period 1,480,138 (599) 1,479,539 Issuances 16,867 710 17,577 Net premiums / considerations collected (43,352) (111) (43,463) Interest accrual 17,156 0 17,156 Balance at original discount rate, end of period 1,470,809 0 1,470,809 Effect of cumulative changes in discount rate assumptions, end of period (40,753) 0 (40,753) Balance, end of period $ 1,430,056 $ 0 $ 1,430,056 March 31, 2023 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 2,551,191 $ 16,460 $ 2,567,651 Effect of cumulative changes in discount rate assumptions, beginning of period 137,962 1,899 139,861 Balance at original discount rate, beginning of period 2,689,153 18,359 2,707,512 Effect of actual variances from expected experience and other activity (14,462) 183 (14,279) Adjusted balance, beginning of period 2,674,691 18,542 2,693,233 Issuances 16,867 710 17,577 Interest accrual 32,494 171 32,665 Benefit payments (40,914) (551) (41,465) Other adjustments (372) 0 (372) Balance at original discount rate, end of period 2,682,766 18,872 2,701,638 Effect of cumulative changes in discount rate assumptions, end of period (64,374) (1,536) (65,910) Balance, end of period $ 2,618,392 $ 17,336 $ 2,635,728 March 31, 2023 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, pre-flooring $ 1,188,336 $ 17,336 $ 1,205,672 Flooring impact, end of period 0 0 0 Balance, end of period, post-flooring 1,188,336 17,336 1,205,672 Less: Reinsurance recoverable 1,036,995 17,336 1,054,331 Balance after reinsurance recoverable, end of period, post-flooring $ 151,341 $ 0 $ 151,341 March 31, 2022 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 1,641,933 $ 0 $ 1,641,933 Effect of cumulative changes in discount rate assumptions, beginning of period (253,752) 0 (253,752) Balance at original discount rate, beginning of period 1,388,181 0 1,388,181 Effect of actual variances from expected experience and other activity 3,165 0 3,165 Adjusted balance, beginning of period 1,391,346 0 1,391,346 Issuances 20,680 341 21,021 Net premiums / considerations collected (40,394) (341) (40,735) Interest accrual 16,119 0 16,119 Balance at original discount rate, end of period 1,387,751 0 1,387,751 Effect of cumulative changes in discount rate assumptions, end of period 120,622 0 120,622 Balance, end of period $ 1,508,373 $ 0 $ 1,508,373 March 31, 2022 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 3,041,562 $ 19,314 $ 3,060,876 Effect of cumulative changes in discount rate assumptions, beginning of period (561,455) (1,459) (562,914) Balance at original discount rate, beginning of period 2,480,107 17,855 2,497,962 Effect of actual variances from expected experience (706) 196 (510) Adjusted balance, beginning of period 2,479,401 18,051 2,497,452 Issuances 20,680 341 21,021 Interest accrual 30,217 150 30,367 Benefit payments (35,047) (529) (35,576) Other adjustments (41) (74) (115) Balance at original discount rate, end of period 2,495,210 17,939 2,513,149 Effect of cumulative changes in discount rate assumptions, end of period 285,629 (132) 285,497 Balance, end of period $ 2,780,839 $ 17,807 $ 2,798,646 March 31, 2022 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, pre-flooring $ 1,272,466 $ 17,807 $ 1,290,273 Flooring impact, end of period 6,028 0 6,028 Balance, end of period, post-flooring 1,278,494 17,807 1,296,301 Less: Reinsurance recoverable 1,112,534 17,807 1,130,341 Balance after reinsurance recoverable, end of period, post-flooring $ 165,960 $ 0 $ 165,960 The following tables provide supplemental information related to the balances of and changes in Benefit Reserves included in the disaggregated tables above, on a gross (direct and assumed) basis, as of and for the periods indicated: March 31, 2023 Term Life Fixed Annuities (in thousands) Undiscounted expected future gross premiums $ 3,056,399 $ 0 Discounted expected future gross premiums (at original discount rate) $ 2,057,345 $ 0 Discounted expected future gross premiums (at current discount rate) $ 2,006,982 $ 0 Undiscounted expected future benefits and expenses $ 4,332,537 $ 24,654 Interest accrual $ 15,338 $ 171 Gross premiums $ 61,365 $ 112 Weighted-average duration of the liability in years (at original discount rate) 11 7 Weighted-average duration of the liability in years (at current discount rate) 10 6 Weighted-average interest rate (at original discount rate) 5.31 % 3.61 % Weighted-average interest rate (at current discount rate) 5.07 % 4.98 % March 31, 2022 Term Life Fixed Annuities (in thousands) Undiscounted expected future gross premiums $ 3,307,354 $ 0 Discounted expected future gross premiums (at original discount rate) $ 2,192,982 $ 0 Discounted expected future gross premiums (at current discount rate) $ 2,396,738 $ 0 Undiscounted expected future benefits and expenses $ 4,023,253 $ 23,522 Interest accrual $ 14,098 $ 150 Gross premiums $ 62,991 $ 653 Weighted-average duration of the liability in years (at original discount rate) 10 7 Weighted-average duration of the liability in years (at current discount rate) 11 7 Weighted-average interest rate (at original discount rate) 5.34 % 3.39 % Weighted-average interest rate (at current discount rate) 3.55 % 3.49 % For additional information regarding observable market information and the techniques used to determine the interest rate assumptions seen above, see Note 2. For non-participating traditional and limited-payment products, if a cohort is in a loss position where the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for the present value of expected future policy benefits and non-level claim settlement expenses, then the liability for future policy benefits is adjusted at that time, and thereafter such that all changes, both favorable and unfavorable, in expected benefits resulting from both actual experience deviations and changes in future assumptions are recognized immediately as a gain or loss. In the first three months of 2023, there was a $3 million gain in net income for nonparticipating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts, mostly offset by a $3 million loss, reflecting the impact of ceded reinsurance on the affected cohorts. The favorable impact in the first three months of 2023 is primarily due to favorable mortality experience related to individual term life products. In the first three months of 2022, there was a $2 million gain in net income for nonparticipating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts, mostly offset by a $2 million charge, reflecting the impact of ceded reinsurance on the affected cohorts. The favorable impact in the first three months of 2022 is primarily due to favorable mortality experience related to individual term life products. Deferred Profit Liability The balances of and changes in Deferred Profit Liability as of and for the periods indicated are as follows: March 31, 2023 March 31, 2022 Fixed Annuities (in thousands) Balance, beginning of period $ 1,684 $ 1,726 Effect of actual variances from expected experience (107) (164) Adjusted balance, beginning of period 1,577 1,562 Profits deferred 0 309 Interest accrual 13 16 Amortization (45) (52) Other adjustments 0 (6) Balance, end of period 1,545 1,829 Less: Reinsurance recoverable 1,545 1,829 Balance after reinsurance recoverable $ 0 $ 0 The following table provides supplemental information related to the balances of and changes in Deferred Profit Liability, included in the disaggregated table above, on a gross (direct and assumed) basis, as of and for the period indicated: March 31, 2023 March 31, 2022 Fixed Annuities (in thousands) Revenue(1) $ 139 $ (103) Interest accrual 13 16 (1) Represents the gross premiums collected in changes in deferred profit liability. Additional Insurance Reserves AIR represents the additional liability for annuitization, death, or other insurance benefits, including GMDB and GMIB contract features, that are above and beyond the contractholder's account balance. The following table shows a rollforward of AIR balances for variable and universal life products, for the periods indicated: March 31, 2023 March 31, 2022 (in thousands) Balance including amounts in AOCI, beginning of period, post-flooring $ 827,478 $ 703,968 Flooring impact and amounts in AOCI 91,115 (71,467) Balance, excluding amounts in AOCI, beginning of period, pre-flooring 918,593 632,501 Effect of actual variances from expected experience and other activity (342) (10,170) Adjusted balance, beginning of period 918,251 622,331 Assessments collected(1) 14,827 39,441 Interest accrual 7,840 5,339 Benefits paid (3,995) (3,284) Balance, excluding amounts in AOCI, end of period, pre-flooring 936,923 663,827 Flooring impact and amounts in AOCI (65,818) 14,281 Balance, including amounts in AOCI, end of period, post-flooring 871,105 678,108 Less: Reinsurance recoverable 834,640 643,583 Balance after reinsurance recoverable, including amounts in AOCI, end of period $ 36,465 $ 34,525 (1) Represents the portion of gross assessments required to fund the future policy benefits. March 31, 2023 March 31, 2022 (in thousands) Interest accrual $ 7,840 $ 5,339 Gross assessments $ 46,941 $ 92,938 Weighted-average duration of the liability in years (at original discount rate) 28 26 Weighted-average interest rate (at original discount rate) 3.42 % 3.33 % Future Policy Benefits Reconciliation The following table presents the reconciliation of the ending balances from the above rollforwards, Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability including other liabilities, gross of related reinsurance recoverables, to the total liability for Future Policy Benefits as reported on the Company's Unaudited Interim Statements of Financial Position as of the periods indicated: March 31, 2023 March 31, 2022 (in thousands) Benefit reserves, end of period, post-flooring $ 1,205,672 $ 1,296,301 Additional insurance reserves, including amounts in AOCI, end of period, post-flooring 871,105 678,108 Deferred profit liability, end of period, post-flooring 1,545 1,829 Subtotal of amounts disclosed above 2,078,322 1,976,238 Other Future policy benefits reserves(1) 149,309 171,407 Total Future policy benefits $ 2,227,631 $ 2,147,645 (1) Represents balances for which disaggregated rollforward disclosures are not required, including unpaid claims and claims expenses, and incurred but not reported and in course of settlement claim liabilities. Revenue and Interest Expense The following tables present revenue and interest expense related to Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability, as well as related revenue and interest expense not presented in the above supplemental tables, in the Company's Statement of Operations for the periods indicated: March 31, 2023 Revenues(1) Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 112 $ 61,365 $ 0 $ 61,477 Additional insurance reserves 0 0 46,941 46,941 Deferred profit liability 139 0 0 139 Total $ 251 $ 61,365 $ 46,941 $ 108,557 March 31, 2022 Revenues(1) Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 653 $ 62,991 $ 0 $ 63,644 Additional insurance reserves 0 0 92,938 92,938 Deferred profit liability (103) 0 0 (103) Total $ 550 $ 62,991 $ 92,938 $ 156,479 (1) Represents "Gross premiums" for benefit reserves; "Gross assessments" for additional insurance reserves; and "Revenue" for deferred profit liability. March 31, 2023 Interest Expense Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 171 $ 15,338 $ 0 $ 15,509 Additional insurance reserves 0 0 7,840 7,840 Deferred profit liability 13 0 0 13 Total $ 184 $ 15,338 $ 7,840 $ 23,362 March 31, 2022 Interest Expense Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 150 $ 14,098 $ 0 $ 14,248 Additional insurance reserves 0 0 5,339 5,339 Deferred profit liability 16 0 0 16 Total $ 166 $ 14,098 $ 5,339 $ 19,603 Policyholders' Account Balances The Company issues variable life and variable universal life insurance contracts where the Company contractually guarantees to the contractholder a death benefit even when there is insufficient value to cover monthly mortality and expense charges, whereas otherwise the contract would typically lapse (“no-lapse guarantee”). For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, contract lapses and contractholder mortality. For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, timing of annuitization, contract lapses and contractholder mortality. For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including equity market returns, interest rates, market volatility and contractholder behavior. The balance of and changes in policyholders' account balances as of and for the periods ended are as follows: March 31, 2023 Variable Annuities Variable Life / Universal Life Total (in thousands) Balance, beginning of period $ 327,124 $ 2,084,680 $ 2,411,804 Deposits 25,558 57,220 82,778 Interest credited 2,015 13,972 15,987 Policy charges (40) (36,360) (36,400) Surrenders and withdrawals (8,163) (29,361) (37,524) Benefit payments (1,647) (422) (2,069) Net transfers (to) from separate account (913) (28,189) (29,102) Change in market value and other adjustments (131) 10,436 10,305 Balance, end of period 343,803 2,071,976 2,415,779 Reinsurance and other recoverables(1) 319,707 765,282 1,084,989 Policyholders' account balance net of reinsurance and other recoverables $ 24,096 $ 1,306,694 $ 1,330,790 Unearned revenue reserve 328,956 Other 47,556 Total Policyholders' account balances $ 2,792,291 Weighted-average crediting rate 2.40 % 2.69 % 2.65 % Net amount at risk(2) $ 0 $ 33,887,277 $ 33,887,277 Cash surrender value(3) $ 322,593 $ 1,733,643 $ 2,056,236 (1) The amount of recoverables related to reinsurance agreements that reduce the risk of the policyholders’ account balances gross liability. (2) The net amount at risk calculation includes both general and separate account balances. (3) Cash surrender value represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. March 31, 2022 Variable Annuities Variable Life / Universal Life Total (in thousands) Balance, beginning of period $ 344,945 $ 2,052,065 $ 2,397,010 Deposits 298 64,070 64,368 Interest credited 1,564 15,441 17,005 Policy charges (48) (36,141) (36,189) Surrenders and withdrawals (5,197) (34,575) (39,772) Benefit payments (1,257) 365 (892) Net transfers (to) from separate account 2 12,141 12,143 Change in market value and other adjustments 0 (19,553) (19,553) Balance, end of period 340,307 2,053,813 2,394,120 Reinsurance and other recoverables(1) 336,619 738,500 1,075,119 Policyholders' account balance net of reinsurance and other recoverables $ 3,688 $ 1,315,313 $ 1,319,001 Unearned revenue reserve 268,002 Other 50,657 Total Policyholders' account balances $ 2,712,779 Weighted-average crediting rate 1.83 % 3.01 % 2.84 % Net amount at risk(2) $ 0 $ 32,527,594 $ 32,527,594 Cash surrender value(3) $ 319,207 $ 1,700,247 $ 2,019,454 (1) The amount of recoverables related to reinsurance agreements that reduce the risk of the policyholders’ account balances gross liability. (2) The net amount at risk calculation includes both general and separate account balances. (3) Cash surrender value represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums are as follows: March 31, 2023 Range of Guaranteed Minimum Crediting Rate At guaranteed minimum 1 -50 bps above guaranteed minimum 51 - 150 bps above guaranteed minimum Greater than 150 bps above guaranteed minimum Total (in thousands) Variable Annuities Less than 1.00% $ 1,651 $ 0 $ 0 $ 0 $ 1,651 1.00% - 1.99% 189,516 1,592 0 0 191,108 2.00% - 2.99% 1,784 0 0 0 1,784 3.00% - 4.00% 128,371 116 0 0 128,487 Greater than 4.00% 126 0 0 0 126 Total $ 321,448 $ 1,708 $ 0 $ 0 $ 323,156 Variable and Universal Life Less than 1.00% $ 0 $ 0 $ 0 $ 640 $ 640 1.00% - 1.99% 17,633 0 148,939 290,129 456,701 2.00% - 2.99% 4,463 15,422 317,044 26,632 363,561 3.00% - 4.00% 150,092 343,976 60,552 0 554,620 Greater than 4.00% 376,561 0 0 0 376,561 Total $ 548,749 $ 359,398 $ 526,535 $ 317,401 $ 1,752,083 March 31, 2022 Range of Guaranteed Minimum Crediting Rate At guaranteed minimum 1 - 50 bps above guaranteed minimum 51 - 150 bps above guaranteed minimum Greater than 150 bps above guaranteed minimum Total (in thousands) Variable Annuities Less than 1.00% $ 0 $ 0 $ 0 $ 0 $ 0 1.00% - 1.99% 200,629 1,610 0 0 202,239 2.00% - 2.99% 1,901 0 0 0 1,901 3.00% - 4.00% 139,888 0 0 0 139,888 Greater than 4.00% 122 0 0 0 122 Total $ 342,540 $ 1,610 $ 0 $ 0 $ 344,150 Variable and Universal Life Less than 1.00% $ 1,142 $ 0 $ 0 $ 0 $ 1,142 1.00% - 1.99% 47,280 0 89,655 289,338 426,273 2.00% - 2.99% 671 0 183,982 161,233 345,886 3.00% - 4.00% 140,738 3,741 450,770 0 595,249 Greater than 4.00% 360,973 0 0 0 360,973 Total $ 550,804 $ 3,741 $ 724,407 $ 450,571 $ 1,729,523 Unearned Revenue Reserve The balance of the changes in URR are as follows: March 31, 2023 Variable Life / Universal Life (in thousands) Balance, beginning of period $ 313,711 Unearned revenue 19,030 Amortization expense (3,785) Balance, end of period 328,956 Reinsurance recoverables 85,048 Unearned revenue reserve net of reinsurance recoverables $ 243,908 March 31, 2022 Variable Life / Universal Life (in thousands) Balance, beginning of period $ 251,573 Unearned revenue 19,737 Amortization expense (3,308) Balance, end of period 268,002 Reinsurance recoverables 68,241 Unearned revenue reserve net of reinsurance recoverables $ 199,761 The following tables show a rollforward of MRB balances for variable annuity products, along with a reconciliation to the Company’s total net MRB positions as of the following dates: March 31, 2023 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 398,254 $ (398,254) $ 0 Effect of cumulative changes in non-performance risk 163,169 0 163,169 Balance, beginning of period, before effect of changes in non-performance risk 561,423 (398,254) 163,169 Attributed fees collected 27,304 (27,304) 0 Claims paid (1,653) 1,653 0 Interest accrual 7,035 (7,035) 0 Actual in force different from expected 2,229 (2,229) 0 Effect of changes in interest rates 33,851 (33,851) 0 Effect of changes in equity markets (54,966) 54,966 0 Effect of changes in current period counterparty non-performance risk 0 15,728 15,728 Balance, end of period, before effect of changes in non-performance risk 575,223 (396,326) 178,897 Effect of cumulative changes in non-performance risk (178,897) 0 (178,897) Balance, end of period $ 396,326 $ (396,326) $ 0 March 31, 2022 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 796,913 $ (796,913) $ 0 Effect of cumulative changes in non-performance risk 21,123 0 21,123 Balance, beginning of period, before effect of changes in non-performance risk 818,036 (796,913) 21,123 Attributed fees collected 31,799 (31,799) 0 Claims paid (38) 38 0 Interest accrual 549 (549) 0 Actual in force different from expected 2,255 (2,255) 0 Effect of changes in interest rates (204,292) 204,292 0 Effect of changes in equity markets 71,053 (71,053) 0 Effect of changes in current period counterparty non-performance risk 0 86,828 86,828 Balance, end of period, before effect of changes in non-performance risk 719,362 (611,411) 107,951 Effect of cumulative changes in non-performance risk (107,951) 0 (107,951) Balance, end of period $ 611,411 $ (611,411) $ 0 The following table presents accompanying information to the rollforward table above. See Note 9 for information on "Net amount at risk". March 31, 2023 March 31, 2022 Variable Annuities ($ in thousands) Net amount at risk $ 877,211 $ 305,180 Weighted-average attained age of contractholders 68 66 The table below reconciles MRB asset and liability positions as of the following dates: March 31, 2023 March 31, 2022 Variable Annuities (in thousands) Market risk benefit assets $ 562,922 $ 755,053 Market risk benefit liabilities 562,922 755,053 Net liability $ 0 $ 0 |
Policyholders' Liabilities
Policyholders' Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities [Abstract] | |
Market Risk Benefits | LIABILITY FOR FUTURE POLICY BENEFITS Liability for Future Policy Benefits primarily consists of the following sub-components, which are discussed in greater detail below. • Benefit Reserves; • Deferred Profit Liability; and • Additional Insurance Reserves Benefit Reserves The balances of and changes in Benefit Reserves as of and for the periods indicated consist of the three tables presented below: Present Value of Expected Net Premiums rollforward, Present Value of Expected Future Policy Benefits rollforward, and Net Liability for Future Policy Benefits. March 31, 2023 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 1,416,807 $ 0 $ 1,416,807 Effect of cumulative changes in discount rate assumptions, beginning of period 73,563 0 73,563 Balance at original discount rate, beginning of period 1,490,370 0 1,490,370 Effect of actual variances from expected experience (10,232) (599) (10,831) Adjusted balance, beginning of period 1,480,138 (599) 1,479,539 Issuances 16,867 710 17,577 Net premiums / considerations collected (43,352) (111) (43,463) Interest accrual 17,156 0 17,156 Balance at original discount rate, end of period 1,470,809 0 1,470,809 Effect of cumulative changes in discount rate assumptions, end of period (40,753) 0 (40,753) Balance, end of period $ 1,430,056 $ 0 $ 1,430,056 March 31, 2023 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 2,551,191 $ 16,460 $ 2,567,651 Effect of cumulative changes in discount rate assumptions, beginning of period 137,962 1,899 139,861 Balance at original discount rate, beginning of period 2,689,153 18,359 2,707,512 Effect of actual variances from expected experience and other activity (14,462) 183 (14,279) Adjusted balance, beginning of period 2,674,691 18,542 2,693,233 Issuances 16,867 710 17,577 Interest accrual 32,494 171 32,665 Benefit payments (40,914) (551) (41,465) Other adjustments (372) 0 (372) Balance at original discount rate, end of period 2,682,766 18,872 2,701,638 Effect of cumulative changes in discount rate assumptions, end of period (64,374) (1,536) (65,910) Balance, end of period $ 2,618,392 $ 17,336 $ 2,635,728 March 31, 2023 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, pre-flooring $ 1,188,336 $ 17,336 $ 1,205,672 Flooring impact, end of period 0 0 0 Balance, end of period, post-flooring 1,188,336 17,336 1,205,672 Less: Reinsurance recoverable 1,036,995 17,336 1,054,331 Balance after reinsurance recoverable, end of period, post-flooring $ 151,341 $ 0 $ 151,341 March 31, 2022 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 1,641,933 $ 0 $ 1,641,933 Effect of cumulative changes in discount rate assumptions, beginning of period (253,752) 0 (253,752) Balance at original discount rate, beginning of period 1,388,181 0 1,388,181 Effect of actual variances from expected experience and other activity 3,165 0 3,165 Adjusted balance, beginning of period 1,391,346 0 1,391,346 Issuances 20,680 341 21,021 Net premiums / considerations collected (40,394) (341) (40,735) Interest accrual 16,119 0 16,119 Balance at original discount rate, end of period 1,387,751 0 1,387,751 Effect of cumulative changes in discount rate assumptions, end of period 120,622 0 120,622 Balance, end of period $ 1,508,373 $ 0 $ 1,508,373 March 31, 2022 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 3,041,562 $ 19,314 $ 3,060,876 Effect of cumulative changes in discount rate assumptions, beginning of period (561,455) (1,459) (562,914) Balance at original discount rate, beginning of period 2,480,107 17,855 2,497,962 Effect of actual variances from expected experience (706) 196 (510) Adjusted balance, beginning of period 2,479,401 18,051 2,497,452 Issuances 20,680 341 21,021 Interest accrual 30,217 150 30,367 Benefit payments (35,047) (529) (35,576) Other adjustments (41) (74) (115) Balance at original discount rate, end of period 2,495,210 17,939 2,513,149 Effect of cumulative changes in discount rate assumptions, end of period 285,629 (132) 285,497 Balance, end of period $ 2,780,839 $ 17,807 $ 2,798,646 March 31, 2022 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, pre-flooring $ 1,272,466 $ 17,807 $ 1,290,273 Flooring impact, end of period 6,028 0 6,028 Balance, end of period, post-flooring 1,278,494 17,807 1,296,301 Less: Reinsurance recoverable 1,112,534 17,807 1,130,341 Balance after reinsurance recoverable, end of period, post-flooring $ 165,960 $ 0 $ 165,960 The following tables provide supplemental information related to the balances of and changes in Benefit Reserves included in the disaggregated tables above, on a gross (direct and assumed) basis, as of and for the periods indicated: March 31, 2023 Term Life Fixed Annuities (in thousands) Undiscounted expected future gross premiums $ 3,056,399 $ 0 Discounted expected future gross premiums (at original discount rate) $ 2,057,345 $ 0 Discounted expected future gross premiums (at current discount rate) $ 2,006,982 $ 0 Undiscounted expected future benefits and expenses $ 4,332,537 $ 24,654 Interest accrual $ 15,338 $ 171 Gross premiums $ 61,365 $ 112 Weighted-average duration of the liability in years (at original discount rate) 11 7 Weighted-average duration of the liability in years (at current discount rate) 10 6 Weighted-average interest rate (at original discount rate) 5.31 % 3.61 % Weighted-average interest rate (at current discount rate) 5.07 % 4.98 % March 31, 2022 Term Life Fixed Annuities (in thousands) Undiscounted expected future gross premiums $ 3,307,354 $ 0 Discounted expected future gross premiums (at original discount rate) $ 2,192,982 $ 0 Discounted expected future gross premiums (at current discount rate) $ 2,396,738 $ 0 Undiscounted expected future benefits and expenses $ 4,023,253 $ 23,522 Interest accrual $ 14,098 $ 150 Gross premiums $ 62,991 $ 653 Weighted-average duration of the liability in years (at original discount rate) 10 7 Weighted-average duration of the liability in years (at current discount rate) 11 7 Weighted-average interest rate (at original discount rate) 5.34 % 3.39 % Weighted-average interest rate (at current discount rate) 3.55 % 3.49 % For additional information regarding observable market information and the techniques used to determine the interest rate assumptions seen above, see Note 2. For non-participating traditional and limited-payment products, if a cohort is in a loss position where the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for the present value of expected future policy benefits and non-level claim settlement expenses, then the liability for future policy benefits is adjusted at that time, and thereafter such that all changes, both favorable and unfavorable, in expected benefits resulting from both actual experience deviations and changes in future assumptions are recognized immediately as a gain or loss. In the first three months of 2023, there was a $3 million gain in net income for nonparticipating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts, mostly offset by a $3 million loss, reflecting the impact of ceded reinsurance on the affected cohorts. The favorable impact in the first three months of 2023 is primarily due to favorable mortality experience related to individual term life products. In the first three months of 2022, there was a $2 million gain in net income for nonparticipating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts, mostly offset by a $2 million charge, reflecting the impact of ceded reinsurance on the affected cohorts. The favorable impact in the first three months of 2022 is primarily due to favorable mortality experience related to individual term life products. Deferred Profit Liability The balances of and changes in Deferred Profit Liability as of and for the periods indicated are as follows: March 31, 2023 March 31, 2022 Fixed Annuities (in thousands) Balance, beginning of period $ 1,684 $ 1,726 Effect of actual variances from expected experience (107) (164) Adjusted balance, beginning of period 1,577 1,562 Profits deferred 0 309 Interest accrual 13 16 Amortization (45) (52) Other adjustments 0 (6) Balance, end of period 1,545 1,829 Less: Reinsurance recoverable 1,545 1,829 Balance after reinsurance recoverable $ 0 $ 0 The following table provides supplemental information related to the balances of and changes in Deferred Profit Liability, included in the disaggregated table above, on a gross (direct and assumed) basis, as of and for the period indicated: March 31, 2023 March 31, 2022 Fixed Annuities (in thousands) Revenue(1) $ 139 $ (103) Interest accrual 13 16 (1) Represents the gross premiums collected in changes in deferred profit liability. Additional Insurance Reserves AIR represents the additional liability for annuitization, death, or other insurance benefits, including GMDB and GMIB contract features, that are above and beyond the contractholder's account balance. The following table shows a rollforward of AIR balances for variable and universal life products, for the periods indicated: March 31, 2023 March 31, 2022 (in thousands) Balance including amounts in AOCI, beginning of period, post-flooring $ 827,478 $ 703,968 Flooring impact and amounts in AOCI 91,115 (71,467) Balance, excluding amounts in AOCI, beginning of period, pre-flooring 918,593 632,501 Effect of actual variances from expected experience and other activity (342) (10,170) Adjusted balance, beginning of period 918,251 622,331 Assessments collected(1) 14,827 39,441 Interest accrual 7,840 5,339 Benefits paid (3,995) (3,284) Balance, excluding amounts in AOCI, end of period, pre-flooring 936,923 663,827 Flooring impact and amounts in AOCI (65,818) 14,281 Balance, including amounts in AOCI, end of period, post-flooring 871,105 678,108 Less: Reinsurance recoverable 834,640 643,583 Balance after reinsurance recoverable, including amounts in AOCI, end of period $ 36,465 $ 34,525 (1) Represents the portion of gross assessments required to fund the future policy benefits. March 31, 2023 March 31, 2022 (in thousands) Interest accrual $ 7,840 $ 5,339 Gross assessments $ 46,941 $ 92,938 Weighted-average duration of the liability in years (at original discount rate) 28 26 Weighted-average interest rate (at original discount rate) 3.42 % 3.33 % Future Policy Benefits Reconciliation The following table presents the reconciliation of the ending balances from the above rollforwards, Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability including other liabilities, gross of related reinsurance recoverables, to the total liability for Future Policy Benefits as reported on the Company's Unaudited Interim Statements of Financial Position as of the periods indicated: March 31, 2023 March 31, 2022 (in thousands) Benefit reserves, end of period, post-flooring $ 1,205,672 $ 1,296,301 Additional insurance reserves, including amounts in AOCI, end of period, post-flooring 871,105 678,108 Deferred profit liability, end of period, post-flooring 1,545 1,829 Subtotal of amounts disclosed above 2,078,322 1,976,238 Other Future policy benefits reserves(1) 149,309 171,407 Total Future policy benefits $ 2,227,631 $ 2,147,645 (1) Represents balances for which disaggregated rollforward disclosures are not required, including unpaid claims and claims expenses, and incurred but not reported and in course of settlement claim liabilities. Revenue and Interest Expense The following tables present revenue and interest expense related to Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability, as well as related revenue and interest expense not presented in the above supplemental tables, in the Company's Statement of Operations for the periods indicated: March 31, 2023 Revenues(1) Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 112 $ 61,365 $ 0 $ 61,477 Additional insurance reserves 0 0 46,941 46,941 Deferred profit liability 139 0 0 139 Total $ 251 $ 61,365 $ 46,941 $ 108,557 March 31, 2022 Revenues(1) Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 653 $ 62,991 $ 0 $ 63,644 Additional insurance reserves 0 0 92,938 92,938 Deferred profit liability (103) 0 0 (103) Total $ 550 $ 62,991 $ 92,938 $ 156,479 (1) Represents "Gross premiums" for benefit reserves; "Gross assessments" for additional insurance reserves; and "Revenue" for deferred profit liability. March 31, 2023 Interest Expense Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 171 $ 15,338 $ 0 $ 15,509 Additional insurance reserves 0 0 7,840 7,840 Deferred profit liability 13 0 0 13 Total $ 184 $ 15,338 $ 7,840 $ 23,362 March 31, 2022 Interest Expense Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 150 $ 14,098 $ 0 $ 14,248 Additional insurance reserves 0 0 5,339 5,339 Deferred profit liability 16 0 0 16 Total $ 166 $ 14,098 $ 5,339 $ 19,603 Policyholders' Account Balances The Company issues variable life and variable universal life insurance contracts where the Company contractually guarantees to the contractholder a death benefit even when there is insufficient value to cover monthly mortality and expense charges, whereas otherwise the contract would typically lapse (“no-lapse guarantee”). For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, contract lapses and contractholder mortality. For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, timing of annuitization, contract lapses and contractholder mortality. For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including equity market returns, interest rates, market volatility and contractholder behavior. The balance of and changes in policyholders' account balances as of and for the periods ended are as follows: March 31, 2023 Variable Annuities Variable Life / Universal Life Total (in thousands) Balance, beginning of period $ 327,124 $ 2,084,680 $ 2,411,804 Deposits 25,558 57,220 82,778 Interest credited 2,015 13,972 15,987 Policy charges (40) (36,360) (36,400) Surrenders and withdrawals (8,163) (29,361) (37,524) Benefit payments (1,647) (422) (2,069) Net transfers (to) from separate account (913) (28,189) (29,102) Change in market value and other adjustments (131) 10,436 10,305 Balance, end of period 343,803 2,071,976 2,415,779 Reinsurance and other recoverables(1) 319,707 765,282 1,084,989 Policyholders' account balance net of reinsurance and other recoverables $ 24,096 $ 1,306,694 $ 1,330,790 Unearned revenue reserve 328,956 Other 47,556 Total Policyholders' account balances $ 2,792,291 Weighted-average crediting rate 2.40 % 2.69 % 2.65 % Net amount at risk(2) $ 0 $ 33,887,277 $ 33,887,277 Cash surrender value(3) $ 322,593 $ 1,733,643 $ 2,056,236 (1) The amount of recoverables related to reinsurance agreements that reduce the risk of the policyholders’ account balances gross liability. (2) The net amount at risk calculation includes both general and separate account balances. (3) Cash surrender value represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. March 31, 2022 Variable Annuities Variable Life / Universal Life Total (in thousands) Balance, beginning of period $ 344,945 $ 2,052,065 $ 2,397,010 Deposits 298 64,070 64,368 Interest credited 1,564 15,441 17,005 Policy charges (48) (36,141) (36,189) Surrenders and withdrawals (5,197) (34,575) (39,772) Benefit payments (1,257) 365 (892) Net transfers (to) from separate account 2 12,141 12,143 Change in market value and other adjustments 0 (19,553) (19,553) Balance, end of period 340,307 2,053,813 2,394,120 Reinsurance and other recoverables(1) 336,619 738,500 1,075,119 Policyholders' account balance net of reinsurance and other recoverables $ 3,688 $ 1,315,313 $ 1,319,001 Unearned revenue reserve 268,002 Other 50,657 Total Policyholders' account balances $ 2,712,779 Weighted-average crediting rate 1.83 % 3.01 % 2.84 % Net amount at risk(2) $ 0 $ 32,527,594 $ 32,527,594 Cash surrender value(3) $ 319,207 $ 1,700,247 $ 2,019,454 (1) The amount of recoverables related to reinsurance agreements that reduce the risk of the policyholders’ account balances gross liability. (2) The net amount at risk calculation includes both general and separate account balances. (3) Cash surrender value represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums are as follows: March 31, 2023 Range of Guaranteed Minimum Crediting Rate At guaranteed minimum 1 -50 bps above guaranteed minimum 51 - 150 bps above guaranteed minimum Greater than 150 bps above guaranteed minimum Total (in thousands) Variable Annuities Less than 1.00% $ 1,651 $ 0 $ 0 $ 0 $ 1,651 1.00% - 1.99% 189,516 1,592 0 0 191,108 2.00% - 2.99% 1,784 0 0 0 1,784 3.00% - 4.00% 128,371 116 0 0 128,487 Greater than 4.00% 126 0 0 0 126 Total $ 321,448 $ 1,708 $ 0 $ 0 $ 323,156 Variable and Universal Life Less than 1.00% $ 0 $ 0 $ 0 $ 640 $ 640 1.00% - 1.99% 17,633 0 148,939 290,129 456,701 2.00% - 2.99% 4,463 15,422 317,044 26,632 363,561 3.00% - 4.00% 150,092 343,976 60,552 0 554,620 Greater than 4.00% 376,561 0 0 0 376,561 Total $ 548,749 $ 359,398 $ 526,535 $ 317,401 $ 1,752,083 March 31, 2022 Range of Guaranteed Minimum Crediting Rate At guaranteed minimum 1 - 50 bps above guaranteed minimum 51 - 150 bps above guaranteed minimum Greater than 150 bps above guaranteed minimum Total (in thousands) Variable Annuities Less than 1.00% $ 0 $ 0 $ 0 $ 0 $ 0 1.00% - 1.99% 200,629 1,610 0 0 202,239 2.00% - 2.99% 1,901 0 0 0 1,901 3.00% - 4.00% 139,888 0 0 0 139,888 Greater than 4.00% 122 0 0 0 122 Total $ 342,540 $ 1,610 $ 0 $ 0 $ 344,150 Variable and Universal Life Less than 1.00% $ 1,142 $ 0 $ 0 $ 0 $ 1,142 1.00% - 1.99% 47,280 0 89,655 289,338 426,273 2.00% - 2.99% 671 0 183,982 161,233 345,886 3.00% - 4.00% 140,738 3,741 450,770 0 595,249 Greater than 4.00% 360,973 0 0 0 360,973 Total $ 550,804 $ 3,741 $ 724,407 $ 450,571 $ 1,729,523 Unearned Revenue Reserve The balance of the changes in URR are as follows: March 31, 2023 Variable Life / Universal Life (in thousands) Balance, beginning of period $ 313,711 Unearned revenue 19,030 Amortization expense (3,785) Balance, end of period 328,956 Reinsurance recoverables 85,048 Unearned revenue reserve net of reinsurance recoverables $ 243,908 March 31, 2022 Variable Life / Universal Life (in thousands) Balance, beginning of period $ 251,573 Unearned revenue 19,737 Amortization expense (3,308) Balance, end of period 268,002 Reinsurance recoverables 68,241 Unearned revenue reserve net of reinsurance recoverables $ 199,761 The following tables show a rollforward of MRB balances for variable annuity products, along with a reconciliation to the Company’s total net MRB positions as of the following dates: March 31, 2023 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 398,254 $ (398,254) $ 0 Effect of cumulative changes in non-performance risk 163,169 0 163,169 Balance, beginning of period, before effect of changes in non-performance risk 561,423 (398,254) 163,169 Attributed fees collected 27,304 (27,304) 0 Claims paid (1,653) 1,653 0 Interest accrual 7,035 (7,035) 0 Actual in force different from expected 2,229 (2,229) 0 Effect of changes in interest rates 33,851 (33,851) 0 Effect of changes in equity markets (54,966) 54,966 0 Effect of changes in current period counterparty non-performance risk 0 15,728 15,728 Balance, end of period, before effect of changes in non-performance risk 575,223 (396,326) 178,897 Effect of cumulative changes in non-performance risk (178,897) 0 (178,897) Balance, end of period $ 396,326 $ (396,326) $ 0 March 31, 2022 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 796,913 $ (796,913) $ 0 Effect of cumulative changes in non-performance risk 21,123 0 21,123 Balance, beginning of period, before effect of changes in non-performance risk 818,036 (796,913) 21,123 Attributed fees collected 31,799 (31,799) 0 Claims paid (38) 38 0 Interest accrual 549 (549) 0 Actual in force different from expected 2,255 (2,255) 0 Effect of changes in interest rates (204,292) 204,292 0 Effect of changes in equity markets 71,053 (71,053) 0 Effect of changes in current period counterparty non-performance risk 0 86,828 86,828 Balance, end of period, before effect of changes in non-performance risk 719,362 (611,411) 107,951 Effect of cumulative changes in non-performance risk (107,951) 0 (107,951) Balance, end of period $ 611,411 $ (611,411) $ 0 The following table presents accompanying information to the rollforward table above. See Note 9 for information on "Net amount at risk". March 31, 2023 March 31, 2022 Variable Annuities ($ in thousands) Net amount at risk $ 877,211 $ 305,180 Weighted-average attained age of contractholders 68 66 The table below reconciles MRB asset and liability positions as of the following dates: March 31, 2023 March 31, 2022 Variable Annuities (in thousands) Market risk benefit assets $ 562,922 $ 755,053 Market risk benefit liabilities 562,922 755,053 Net liability $ 0 $ 0 |
Market Risk Benefits
Market Risk Benefits | 3 Months Ended |
Mar. 31, 2023 | |
Insurance [Abstract] | |
Market Risk Benefits | LIABILITY FOR FUTURE POLICY BENEFITS Liability for Future Policy Benefits primarily consists of the following sub-components, which are discussed in greater detail below. • Benefit Reserves; • Deferred Profit Liability; and • Additional Insurance Reserves Benefit Reserves The balances of and changes in Benefit Reserves as of and for the periods indicated consist of the three tables presented below: Present Value of Expected Net Premiums rollforward, Present Value of Expected Future Policy Benefits rollforward, and Net Liability for Future Policy Benefits. March 31, 2023 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 1,416,807 $ 0 $ 1,416,807 Effect of cumulative changes in discount rate assumptions, beginning of period 73,563 0 73,563 Balance at original discount rate, beginning of period 1,490,370 0 1,490,370 Effect of actual variances from expected experience (10,232) (599) (10,831) Adjusted balance, beginning of period 1,480,138 (599) 1,479,539 Issuances 16,867 710 17,577 Net premiums / considerations collected (43,352) (111) (43,463) Interest accrual 17,156 0 17,156 Balance at original discount rate, end of period 1,470,809 0 1,470,809 Effect of cumulative changes in discount rate assumptions, end of period (40,753) 0 (40,753) Balance, end of period $ 1,430,056 $ 0 $ 1,430,056 March 31, 2023 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 2,551,191 $ 16,460 $ 2,567,651 Effect of cumulative changes in discount rate assumptions, beginning of period 137,962 1,899 139,861 Balance at original discount rate, beginning of period 2,689,153 18,359 2,707,512 Effect of actual variances from expected experience and other activity (14,462) 183 (14,279) Adjusted balance, beginning of period 2,674,691 18,542 2,693,233 Issuances 16,867 710 17,577 Interest accrual 32,494 171 32,665 Benefit payments (40,914) (551) (41,465) Other adjustments (372) 0 (372) Balance at original discount rate, end of period 2,682,766 18,872 2,701,638 Effect of cumulative changes in discount rate assumptions, end of period (64,374) (1,536) (65,910) Balance, end of period $ 2,618,392 $ 17,336 $ 2,635,728 March 31, 2023 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, pre-flooring $ 1,188,336 $ 17,336 $ 1,205,672 Flooring impact, end of period 0 0 0 Balance, end of period, post-flooring 1,188,336 17,336 1,205,672 Less: Reinsurance recoverable 1,036,995 17,336 1,054,331 Balance after reinsurance recoverable, end of period, post-flooring $ 151,341 $ 0 $ 151,341 March 31, 2022 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 1,641,933 $ 0 $ 1,641,933 Effect of cumulative changes in discount rate assumptions, beginning of period (253,752) 0 (253,752) Balance at original discount rate, beginning of period 1,388,181 0 1,388,181 Effect of actual variances from expected experience and other activity 3,165 0 3,165 Adjusted balance, beginning of period 1,391,346 0 1,391,346 Issuances 20,680 341 21,021 Net premiums / considerations collected (40,394) (341) (40,735) Interest accrual 16,119 0 16,119 Balance at original discount rate, end of period 1,387,751 0 1,387,751 Effect of cumulative changes in discount rate assumptions, end of period 120,622 0 120,622 Balance, end of period $ 1,508,373 $ 0 $ 1,508,373 March 31, 2022 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 3,041,562 $ 19,314 $ 3,060,876 Effect of cumulative changes in discount rate assumptions, beginning of period (561,455) (1,459) (562,914) Balance at original discount rate, beginning of period 2,480,107 17,855 2,497,962 Effect of actual variances from expected experience (706) 196 (510) Adjusted balance, beginning of period 2,479,401 18,051 2,497,452 Issuances 20,680 341 21,021 Interest accrual 30,217 150 30,367 Benefit payments (35,047) (529) (35,576) Other adjustments (41) (74) (115) Balance at original discount rate, end of period 2,495,210 17,939 2,513,149 Effect of cumulative changes in discount rate assumptions, end of period 285,629 (132) 285,497 Balance, end of period $ 2,780,839 $ 17,807 $ 2,798,646 March 31, 2022 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, pre-flooring $ 1,272,466 $ 17,807 $ 1,290,273 Flooring impact, end of period 6,028 0 6,028 Balance, end of period, post-flooring 1,278,494 17,807 1,296,301 Less: Reinsurance recoverable 1,112,534 17,807 1,130,341 Balance after reinsurance recoverable, end of period, post-flooring $ 165,960 $ 0 $ 165,960 The following tables provide supplemental information related to the balances of and changes in Benefit Reserves included in the disaggregated tables above, on a gross (direct and assumed) basis, as of and for the periods indicated: March 31, 2023 Term Life Fixed Annuities (in thousands) Undiscounted expected future gross premiums $ 3,056,399 $ 0 Discounted expected future gross premiums (at original discount rate) $ 2,057,345 $ 0 Discounted expected future gross premiums (at current discount rate) $ 2,006,982 $ 0 Undiscounted expected future benefits and expenses $ 4,332,537 $ 24,654 Interest accrual $ 15,338 $ 171 Gross premiums $ 61,365 $ 112 Weighted-average duration of the liability in years (at original discount rate) 11 7 Weighted-average duration of the liability in years (at current discount rate) 10 6 Weighted-average interest rate (at original discount rate) 5.31 % 3.61 % Weighted-average interest rate (at current discount rate) 5.07 % 4.98 % March 31, 2022 Term Life Fixed Annuities (in thousands) Undiscounted expected future gross premiums $ 3,307,354 $ 0 Discounted expected future gross premiums (at original discount rate) $ 2,192,982 $ 0 Discounted expected future gross premiums (at current discount rate) $ 2,396,738 $ 0 Undiscounted expected future benefits and expenses $ 4,023,253 $ 23,522 Interest accrual $ 14,098 $ 150 Gross premiums $ 62,991 $ 653 Weighted-average duration of the liability in years (at original discount rate) 10 7 Weighted-average duration of the liability in years (at current discount rate) 11 7 Weighted-average interest rate (at original discount rate) 5.34 % 3.39 % Weighted-average interest rate (at current discount rate) 3.55 % 3.49 % For additional information regarding observable market information and the techniques used to determine the interest rate assumptions seen above, see Note 2. For non-participating traditional and limited-payment products, if a cohort is in a loss position where the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for the present value of expected future policy benefits and non-level claim settlement expenses, then the liability for future policy benefits is adjusted at that time, and thereafter such that all changes, both favorable and unfavorable, in expected benefits resulting from both actual experience deviations and changes in future assumptions are recognized immediately as a gain or loss. In the first three months of 2023, there was a $3 million gain in net income for nonparticipating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts, mostly offset by a $3 million loss, reflecting the impact of ceded reinsurance on the affected cohorts. The favorable impact in the first three months of 2023 is primarily due to favorable mortality experience related to individual term life products. In the first three months of 2022, there was a $2 million gain in net income for nonparticipating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts, mostly offset by a $2 million charge, reflecting the impact of ceded reinsurance on the affected cohorts. The favorable impact in the first three months of 2022 is primarily due to favorable mortality experience related to individual term life products. Deferred Profit Liability The balances of and changes in Deferred Profit Liability as of and for the periods indicated are as follows: March 31, 2023 March 31, 2022 Fixed Annuities (in thousands) Balance, beginning of period $ 1,684 $ 1,726 Effect of actual variances from expected experience (107) (164) Adjusted balance, beginning of period 1,577 1,562 Profits deferred 0 309 Interest accrual 13 16 Amortization (45) (52) Other adjustments 0 (6) Balance, end of period 1,545 1,829 Less: Reinsurance recoverable 1,545 1,829 Balance after reinsurance recoverable $ 0 $ 0 The following table provides supplemental information related to the balances of and changes in Deferred Profit Liability, included in the disaggregated table above, on a gross (direct and assumed) basis, as of and for the period indicated: March 31, 2023 March 31, 2022 Fixed Annuities (in thousands) Revenue(1) $ 139 $ (103) Interest accrual 13 16 (1) Represents the gross premiums collected in changes in deferred profit liability. Additional Insurance Reserves AIR represents the additional liability for annuitization, death, or other insurance benefits, including GMDB and GMIB contract features, that are above and beyond the contractholder's account balance. The following table shows a rollforward of AIR balances for variable and universal life products, for the periods indicated: March 31, 2023 March 31, 2022 (in thousands) Balance including amounts in AOCI, beginning of period, post-flooring $ 827,478 $ 703,968 Flooring impact and amounts in AOCI 91,115 (71,467) Balance, excluding amounts in AOCI, beginning of period, pre-flooring 918,593 632,501 Effect of actual variances from expected experience and other activity (342) (10,170) Adjusted balance, beginning of period 918,251 622,331 Assessments collected(1) 14,827 39,441 Interest accrual 7,840 5,339 Benefits paid (3,995) (3,284) Balance, excluding amounts in AOCI, end of period, pre-flooring 936,923 663,827 Flooring impact and amounts in AOCI (65,818) 14,281 Balance, including amounts in AOCI, end of period, post-flooring 871,105 678,108 Less: Reinsurance recoverable 834,640 643,583 Balance after reinsurance recoverable, including amounts in AOCI, end of period $ 36,465 $ 34,525 (1) Represents the portion of gross assessments required to fund the future policy benefits. March 31, 2023 March 31, 2022 (in thousands) Interest accrual $ 7,840 $ 5,339 Gross assessments $ 46,941 $ 92,938 Weighted-average duration of the liability in years (at original discount rate) 28 26 Weighted-average interest rate (at original discount rate) 3.42 % 3.33 % Future Policy Benefits Reconciliation The following table presents the reconciliation of the ending balances from the above rollforwards, Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability including other liabilities, gross of related reinsurance recoverables, to the total liability for Future Policy Benefits as reported on the Company's Unaudited Interim Statements of Financial Position as of the periods indicated: March 31, 2023 March 31, 2022 (in thousands) Benefit reserves, end of period, post-flooring $ 1,205,672 $ 1,296,301 Additional insurance reserves, including amounts in AOCI, end of period, post-flooring 871,105 678,108 Deferred profit liability, end of period, post-flooring 1,545 1,829 Subtotal of amounts disclosed above 2,078,322 1,976,238 Other Future policy benefits reserves(1) 149,309 171,407 Total Future policy benefits $ 2,227,631 $ 2,147,645 (1) Represents balances for which disaggregated rollforward disclosures are not required, including unpaid claims and claims expenses, and incurred but not reported and in course of settlement claim liabilities. Revenue and Interest Expense The following tables present revenue and interest expense related to Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability, as well as related revenue and interest expense not presented in the above supplemental tables, in the Company's Statement of Operations for the periods indicated: March 31, 2023 Revenues(1) Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 112 $ 61,365 $ 0 $ 61,477 Additional insurance reserves 0 0 46,941 46,941 Deferred profit liability 139 0 0 139 Total $ 251 $ 61,365 $ 46,941 $ 108,557 March 31, 2022 Revenues(1) Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 653 $ 62,991 $ 0 $ 63,644 Additional insurance reserves 0 0 92,938 92,938 Deferred profit liability (103) 0 0 (103) Total $ 550 $ 62,991 $ 92,938 $ 156,479 (1) Represents "Gross premiums" for benefit reserves; "Gross assessments" for additional insurance reserves; and "Revenue" for deferred profit liability. March 31, 2023 Interest Expense Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 171 $ 15,338 $ 0 $ 15,509 Additional insurance reserves 0 0 7,840 7,840 Deferred profit liability 13 0 0 13 Total $ 184 $ 15,338 $ 7,840 $ 23,362 March 31, 2022 Interest Expense Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 150 $ 14,098 $ 0 $ 14,248 Additional insurance reserves 0 0 5,339 5,339 Deferred profit liability 16 0 0 16 Total $ 166 $ 14,098 $ 5,339 $ 19,603 Policyholders' Account Balances The Company issues variable life and variable universal life insurance contracts where the Company contractually guarantees to the contractholder a death benefit even when there is insufficient value to cover monthly mortality and expense charges, whereas otherwise the contract would typically lapse (“no-lapse guarantee”). For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, contract lapses and contractholder mortality. For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, timing of annuitization, contract lapses and contractholder mortality. For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including equity market returns, interest rates, market volatility and contractholder behavior. The balance of and changes in policyholders' account balances as of and for the periods ended are as follows: March 31, 2023 Variable Annuities Variable Life / Universal Life Total (in thousands) Balance, beginning of period $ 327,124 $ 2,084,680 $ 2,411,804 Deposits 25,558 57,220 82,778 Interest credited 2,015 13,972 15,987 Policy charges (40) (36,360) (36,400) Surrenders and withdrawals (8,163) (29,361) (37,524) Benefit payments (1,647) (422) (2,069) Net transfers (to) from separate account (913) (28,189) (29,102) Change in market value and other adjustments (131) 10,436 10,305 Balance, end of period 343,803 2,071,976 2,415,779 Reinsurance and other recoverables(1) 319,707 765,282 1,084,989 Policyholders' account balance net of reinsurance and other recoverables $ 24,096 $ 1,306,694 $ 1,330,790 Unearned revenue reserve 328,956 Other 47,556 Total Policyholders' account balances $ 2,792,291 Weighted-average crediting rate 2.40 % 2.69 % 2.65 % Net amount at risk(2) $ 0 $ 33,887,277 $ 33,887,277 Cash surrender value(3) $ 322,593 $ 1,733,643 $ 2,056,236 (1) The amount of recoverables related to reinsurance agreements that reduce the risk of the policyholders’ account balances gross liability. (2) The net amount at risk calculation includes both general and separate account balances. (3) Cash surrender value represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. March 31, 2022 Variable Annuities Variable Life / Universal Life Total (in thousands) Balance, beginning of period $ 344,945 $ 2,052,065 $ 2,397,010 Deposits 298 64,070 64,368 Interest credited 1,564 15,441 17,005 Policy charges (48) (36,141) (36,189) Surrenders and withdrawals (5,197) (34,575) (39,772) Benefit payments (1,257) 365 (892) Net transfers (to) from separate account 2 12,141 12,143 Change in market value and other adjustments 0 (19,553) (19,553) Balance, end of period 340,307 2,053,813 2,394,120 Reinsurance and other recoverables(1) 336,619 738,500 1,075,119 Policyholders' account balance net of reinsurance and other recoverables $ 3,688 $ 1,315,313 $ 1,319,001 Unearned revenue reserve 268,002 Other 50,657 Total Policyholders' account balances $ 2,712,779 Weighted-average crediting rate 1.83 % 3.01 % 2.84 % Net amount at risk(2) $ 0 $ 32,527,594 $ 32,527,594 Cash surrender value(3) $ 319,207 $ 1,700,247 $ 2,019,454 (1) The amount of recoverables related to reinsurance agreements that reduce the risk of the policyholders’ account balances gross liability. (2) The net amount at risk calculation includes both general and separate account balances. (3) Cash surrender value represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums are as follows: March 31, 2023 Range of Guaranteed Minimum Crediting Rate At guaranteed minimum 1 -50 bps above guaranteed minimum 51 - 150 bps above guaranteed minimum Greater than 150 bps above guaranteed minimum Total (in thousands) Variable Annuities Less than 1.00% $ 1,651 $ 0 $ 0 $ 0 $ 1,651 1.00% - 1.99% 189,516 1,592 0 0 191,108 2.00% - 2.99% 1,784 0 0 0 1,784 3.00% - 4.00% 128,371 116 0 0 128,487 Greater than 4.00% 126 0 0 0 126 Total $ 321,448 $ 1,708 $ 0 $ 0 $ 323,156 Variable and Universal Life Less than 1.00% $ 0 $ 0 $ 0 $ 640 $ 640 1.00% - 1.99% 17,633 0 148,939 290,129 456,701 2.00% - 2.99% 4,463 15,422 317,044 26,632 363,561 3.00% - 4.00% 150,092 343,976 60,552 0 554,620 Greater than 4.00% 376,561 0 0 0 376,561 Total $ 548,749 $ 359,398 $ 526,535 $ 317,401 $ 1,752,083 March 31, 2022 Range of Guaranteed Minimum Crediting Rate At guaranteed minimum 1 - 50 bps above guaranteed minimum 51 - 150 bps above guaranteed minimum Greater than 150 bps above guaranteed minimum Total (in thousands) Variable Annuities Less than 1.00% $ 0 $ 0 $ 0 $ 0 $ 0 1.00% - 1.99% 200,629 1,610 0 0 202,239 2.00% - 2.99% 1,901 0 0 0 1,901 3.00% - 4.00% 139,888 0 0 0 139,888 Greater than 4.00% 122 0 0 0 122 Total $ 342,540 $ 1,610 $ 0 $ 0 $ 344,150 Variable and Universal Life Less than 1.00% $ 1,142 $ 0 $ 0 $ 0 $ 1,142 1.00% - 1.99% 47,280 0 89,655 289,338 426,273 2.00% - 2.99% 671 0 183,982 161,233 345,886 3.00% - 4.00% 140,738 3,741 450,770 0 595,249 Greater than 4.00% 360,973 0 0 0 360,973 Total $ 550,804 $ 3,741 $ 724,407 $ 450,571 $ 1,729,523 Unearned Revenue Reserve The balance of the changes in URR are as follows: March 31, 2023 Variable Life / Universal Life (in thousands) Balance, beginning of period $ 313,711 Unearned revenue 19,030 Amortization expense (3,785) Balance, end of period 328,956 Reinsurance recoverables 85,048 Unearned revenue reserve net of reinsurance recoverables $ 243,908 March 31, 2022 Variable Life / Universal Life (in thousands) Balance, beginning of period $ 251,573 Unearned revenue 19,737 Amortization expense (3,308) Balance, end of period 268,002 Reinsurance recoverables 68,241 Unearned revenue reserve net of reinsurance recoverables $ 199,761 The following tables show a rollforward of MRB balances for variable annuity products, along with a reconciliation to the Company’s total net MRB positions as of the following dates: March 31, 2023 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 398,254 $ (398,254) $ 0 Effect of cumulative changes in non-performance risk 163,169 0 163,169 Balance, beginning of period, before effect of changes in non-performance risk 561,423 (398,254) 163,169 Attributed fees collected 27,304 (27,304) 0 Claims paid (1,653) 1,653 0 Interest accrual 7,035 (7,035) 0 Actual in force different from expected 2,229 (2,229) 0 Effect of changes in interest rates 33,851 (33,851) 0 Effect of changes in equity markets (54,966) 54,966 0 Effect of changes in current period counterparty non-performance risk 0 15,728 15,728 Balance, end of period, before effect of changes in non-performance risk 575,223 (396,326) 178,897 Effect of cumulative changes in non-performance risk (178,897) 0 (178,897) Balance, end of period $ 396,326 $ (396,326) $ 0 March 31, 2022 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 796,913 $ (796,913) $ 0 Effect of cumulative changes in non-performance risk 21,123 0 21,123 Balance, beginning of period, before effect of changes in non-performance risk 818,036 (796,913) 21,123 Attributed fees collected 31,799 (31,799) 0 Claims paid (38) 38 0 Interest accrual 549 (549) 0 Actual in force different from expected 2,255 (2,255) 0 Effect of changes in interest rates (204,292) 204,292 0 Effect of changes in equity markets 71,053 (71,053) 0 Effect of changes in current period counterparty non-performance risk 0 86,828 86,828 Balance, end of period, before effect of changes in non-performance risk 719,362 (611,411) 107,951 Effect of cumulative changes in non-performance risk (107,951) 0 (107,951) Balance, end of period $ 611,411 $ (611,411) $ 0 The following table presents accompanying information to the rollforward table above. See Note 9 for information on "Net amount at risk". March 31, 2023 March 31, 2022 Variable Annuities ($ in thousands) Net amount at risk $ 877,211 $ 305,180 Weighted-average attained age of contractholders 68 66 The table below reconciles MRB asset and liability positions as of the following dates: March 31, 2023 March 31, 2022 Variable Annuities (in thousands) Market risk benefit assets $ 562,922 $ 755,053 Market risk benefit liabilities 562,922 755,053 Net liability $ 0 $ 0 |
Reinsurance
Reinsurance | 3 Months Ended |
Mar. 31, 2023 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | REINSURANCE The Company participates in reinsurance with its affiliates Prudential Arizona Reinsurance Captive Company (“PARCC”), Prudential Arizona Reinsurance Term Company (“PAR Term”), Prudential Arizona Reinsurance Universal Company (“PAR U”), Prudential Term Reinsurance Company (“Term Re”) and Dryden Arizona Reinsurance Term Company (“DART”), its parent companies, Pruco Life and Prudential Insurance, as well as third parties. The reinsurance agreements provide risk diversification and additional capacity for future growth, limit the maximum net loss potential, manage statutory capital, and facilitate the Company's capital market hedging program. Life reinsurance is accomplished through various plans of reinsurance, primarily yearly renewable term and coinsurance. Reinsurance ceded arrangements do not discharge the Company as the primary insurer. Ceded balances would represent a liability of the Company in the event the reinsurers were unable to meet their obligations to the Company under the terms of the reinsurance agreements. The Company believes a material reinsurance liability resulting from such inability of reinsurers to meet their obligations is unlikely. Reserves related to reinsured long-duration contracts are accounted for using assumptions consistent with those used to account for the underlying contracts. Amounts recoverable from reinsurers for long-duration reinsurance arrangements are estimated in a manner consistent with the claim liabilities and policy benefits associated with the reinsured policies. Reinsurance policy charges and fee income ceded for universal life and variable annuity products are accounted for as a reduction of policy charges and fee income. Reinsurance premiums ceded for term insurance products are accounted for as a reduction of premiums. Change in value of market risk benefits, net of related hedging gain (loss) include the impact of reinsurance agreements, particularly reinsurance agreements involving living benefit guarantees. The Company has entered into a reinsurance agreement to transfer the risk related to living benefit guarantees on variable annuities to Prudential Insurance. These reinsurance agreements are market risk benefits and have been accounted for in the same manner. See Note 4 for additional information related to the accounting for market risk benefits. Reinsurance amounts included in the Company’s Unaudited Interim Statements of Financial Position as of March 31, 2023 and December 31, 2022 were as follows: March 31, 2023 December 31, 2022 (in thousands) Reinsurance recoverables(1) $ 3,195,287 $ 3,098,248 Policy loans (23,082) (22,999) Deferred policy acquisition costs(1) (637,032) (646,737) Deferred sales inducements(1) (37,515) (38,146) Market risk benefit assets(1) 479,624 478,439 Other assets(1) 42,256 42,265 Market risk benefit liabilities(1) 83,298 80,185 Other liabilities(1) 120,976 115,351 (1) Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. Reinsurance recoverables by counterparty are broken out below: March 31, 2023 December 31, 2022 (in thousands) Prudential Insurance(1) $ 480,064 $ 456,633 PAR U(1) 1,611,135 1,575,260 PARCC(1) 464,565 464,142 PAR Term(1) 268,770 258,169 Term Re(1) 252,206 232,796 DART(1) 85,369 73,702 Pruco Life(1) 31,553 34,720 Unaffiliated 1,625 2,826 Total reinsurance recoverables $ 3,195,287 $ 3,098,248 (1) Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. Reinsurance amounts, included in the Company’s Unaudited Interim Statements of Operations and Comprehensive Income (Loss) for the three months ended March 31, were as follows: Three Months Ended March 31, 2023 2022 (in thousands) Premiums: Direct(1) $ 62,583 $ 63,330 Ceded(1) (52,406) (54,310) Net premiums(1) 10,177 9,020 Policy charges and fee income: Direct(1) 86,513 95,926 Ceded(1)(2) (72,375) (85,331) Net policy charges and fee income(1) 14,138 10,595 Net investment income: Direct 28,886 24,563 Ceded (226) (194) Net investment income 28,660 24,369 Asset administration fees: Direct 8,776 10,502 Ceded (6,696) (8,242) Net asset administration fees 2,080 2,260 Realized investment gains (losses), net: Direct(1) (9,457) 15,227 Ceded(1) 1,159 493 Realized investment gains (losses), net(1) (8,298) 15,720 Change in value of market risk benefits, net of related hedging gain (loss): Direct(1) (13,801) 128,811 Ceded(1) (1,927) (215,639) Net change in value of market risk benefits, net of related hedging gain (loss)(1) (15,728) (86,828) Policyholders’ benefits (including change in reserves): Direct(1) 107,337 128,710 Ceded(1)(3) (88,998) (114,875) Net policyholders’ benefits (including change in reserves)(1) 18,339 13,835 Change in estimates of liability for future policy benefits: Direct(1) (3,917) (13,818) Ceded(1) 2,475 12,641 Net change in estimates of liability for future policy benefits(1) (1,442) (1,177) Interest credited to policyholders’ account balances: Direct(1) 18,022 19,797 Ceded(1) (7,885) (8,603) Net interest credited to policyholders’ account balances 10,137 11,194 Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization(1) (32,950) (37,277) (1) Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. (2) Includes $(1.2) million and $(1.3) million of unaffiliated activity for the three months ended March 31, 2023 and 2022, respectively. (3) Includes $0 million and $(0.1) million of unaffiliated activity for the three months ended March 31, 2023 and 2022, respectively. The gross and net amounts of life insurance face amount in force as of March 31, 2023 and 2022 were as follows: 2023 2022 (in thousands) Direct gross life insurance face amount in force $ 154,115,666 $ 155,729,264 Reinsurance ceded (139,826,733) (141,264,004) Net life insurance face amount in force $ 14,288,933 $ 14,465,260 Information regarding significant affiliated reinsurance agreements is described below. Prudential Insurance The Company has a yearly renewable term reinsurance agreement with Prudential Insurance and reinsures the majority of all mortality risks not otherwise reinsured. Effective July 1, 2017, this agreement was terminated for certain new business, primarily Universal Life business, and such business was reinsured to Pruco Life under a yearly renewable term reinsurance agreement. As of January 1, 2020, the remaining portions of new business (specifically Term policies) ceased being reinsured by the Company to Prudential Insurance, and a separate yearly renewable term reinsurance agreement was established with Pruco Life for Term policies. Effective April 1, 2016, the Company entered into a reinsurance agreement with Prudential Insurance to reinsure its variable annuity base contracts, along with the living benefit guarantees. As of December 31, 2020, the Company discontinued the sales of traditional variable annuities with guaranteed living benefit riders. This discontinuation has no impact on the reinsurance agreement between Prudential Insurance and the Company. Effective February 1, 2023, PLNJ began selling indexed variable annuities products, which is reinsured to Prudential Insurance through the existing reinsurance agreement. The reinsurance of the indexed variable annuities transfers all significant risks, including mortality risk, embedded in the reinsured contracts to Prudential Insurance. As a result of the agreement, reinsurance payables includes the ceded modified coinsurance arrangement, which reflects the value of the invested assets retained by the Company and the associated asset returns. PAR U Effective July 1, 2012, the Company reinsures an amount equal to 95% of all risks associated with Universal Protector policies having no-lapse guarantees as well as certain of its universal policies, with effective dates through December 31, 2019, excluding those policies that are subject to principle-based reserving. PARCC The Company reinsures 90% of the risks under its term life insurance policies, with effective dates prior to January 1, 2010 through an automatic coinsurance agreement with PARCC. PAR Term The Company reinsures 95% of the risks under its term life insurance policies, with effective dates January 1, 2010 through December 31, 2013, through an automatic coinsurance agreement with PAR Term. Term Re The Company reinsures 95% of the risks under its term life insurance policies, with effective dates on or after January 1, 2014 through December 31, 2017, through an automatic coinsurance agreement with Term Re. Pruco Life Effective July 1, 2017, the Company entered into a yearly renewable term reinsurance agreement with Pruco Life for new business, primarily covering Universal Life policies. Effective January 1, 2020, the Company entered in a similar yearly renewable term reinsurance agreement with Pruco Life for new business relating to Term policies. Under these agreements the majority of all mortality risk is ceded to Pruco Life. The Company also reinsures certain Corporate Owned Life Insurance (“COLI”) policies with Pruco Life. Through March 31, 2016, the Company reinsured Prudential Defined Income ("PDI") living benefit guarantees with Pruco Life. Effective April 1, 2016, the Company recaptured PDI living benefit guarantees from Pruco Life and reinsured them, together with the related variable annuity base contracts, with Prudential Insurance. DART |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company uses a full year projected effective tax rate approach to calculate year-to-date taxes. In determining the full year projected tax rate, the Company considers the realizability of deferred tax assets, including those associated with unrealized investment losses, and has determined based upon the weight of available evidence that no valuation allowance is necessary related to unrealized investment losses. In addition, certain items impacting total income tax expense are recorded in the periods in which they occur. The projected effective tax rate is the ratio of projected “Income tax expense (benefit)” divided by projected “Income (loss) from operations before income taxes". The interim period tax expense (or benefit) is the difference between the year-to-date income tax provision and the amounts reported for the previous interim periods of the fiscal year. The Company's income tax provision amounted to an income tax benefit of $(1.4) million, or 12.17% of income (loss) from operations before income taxes in the first three months of 2023, compared to $(19.9) million, or 30.19%, in the first three months of 2022. The Company’s current and prior effective tax rates differed from the U.S. statutory tax rate of 21% primarily due to non-taxable investment income and tax credits. Inflation Reduction Act. On August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022 (the “Inflation Reduction Act”). One of the most significant provisions of the Inflation Reduction Act is a 15% alternative minimum tax based on the Company’s GAAP income, with certain adjustments. This provision which is applicable only to companies with average applicable financial statement income over $1 billion for any three-year period ending in 2022 or later, is effective in taxable years beginning after December 31, 2022. The impact of the book-income alternative minimum tax, if any, will vary from year to year based on the relationship of the Company’s GAAP income to the Company’s taxable income. Any tax paid pursuant to this provision is available as a tax credit in future years when the Company’s tax rate exceeds the 15% minimum tax threshold . |
Equity
Equity | 3 Months Ended |
Mar. 31, 2023 | |
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 Unaudited Interim Statements of Operations and Comprehensive Income (Loss). The balance of and changes in each component of AOCI as of and for the three months ended March 31, 2023 and 2022, are as follows: Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustment Net Unrealized Interest Rate Remeasurement of Future Policy Benefits Gain (loss) from Changes in Non-Performance Risk on Market Risk Benefits Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, December 31, 2022 $ (1,214) $ (176,386) $ 12,504 $ 128,906 $ (36,190) Change in OCI before reclassifications 100 39,128 (6,958) 15,727 47,997 Amounts reclassified from AOCI 0 (361) 0 0 (361) Income tax benefit (expense) (22) (8,139) 1,463 (3,306) (10,004) Balance, March 31, 2023 $ (1,136) $ (145,758) $ 7,009 $ 141,327 $ 1,442 Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustment Net Unrealized Interest Rate Remeasurement of Future Policy Benefits Gain (loss) from Changes in Non-Performance Risk on Market Risk Benefits Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, December 31, 2021 $ (988) $ 121,075 $ (34,788) $ 16,688 $ 101,987 Change in OCI before reclassifications (67) (161,382) 22,482 86,829 (52,138) Amounts reclassified from AOCI 0 1,289 0 0 1,289 Income tax benefit (expense) 16 33,616 (4,722) (18,232) 10,678 Balance, March 31, 2022 $ (1,039) $ (5,402) $ (17,028) $ 85,285 $ 61,816 (1) Includes cash flow hedges of $13 million and $0 million as of March 31, 2023 and December 31, 2022, respectively, and $7 million and $(3) million as of March 31, 2022 and December 31, 2021, respectively . Reclassifications out of Accumulated Other Comprehensive Income (Loss) Three Months Ended 2023 2022 (in thousands) Amounts reclassified from AOCI(1)(2): Net unrealized investment gains (losses): Cash flow hedges - Currency/Interest rate(3) $ 387 $ 670 Net unrealized investment gains (losses) on available-for-sale securities (26) (1,959) Total net unrealized investment gains (losses)(4) 361 (1,289) Total reclassifications for the period $ 361 $ (1,289) (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 Unaudited Interim 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. There are no amounts related to net unrealized investment gains (losses) on available-for-sale fixed maturity securities on which an allowance for credit losses has been recognized as of March 31, 2023. The amounts for the periods indicated below represent all other net unrealized investment gains (losses), are as follows: Net Unrealized Gains (Losses) on Other Costs(2) Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(3) Income Tax Accumulated Other Comprehensive Balance, December 31, 2022 $ (256,584) $ (83,712) $ 117,070 $ 46,840 $ (176,386) Net investment gains (losses) on investments arising during the period 48,010 0 0 (10,081) 37,929 Reclassification adjustment for (gains) losses included in net income (361) 0 0 76 (285) Impact of net unrealized investment (gains) losses 0 22,817 (31,699) 1,866 (7,016) Balance, March 31, 2023 $ (208,935) $ (60,895) $ 85,371 $ 38,701 $ (145,758) (1) Includes cash flow hedges. See Note 4 for information on cash flow hedges. (2) "Other costs" primarily includes reinsurance recoverables. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2023 | |
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 $0.0 million for both the three months ended March 31, 2023 and 2022. The expense charged to the Company for the deferred compensation program was $0.3 million for both the three months ended March 31, 2023 and 2022. 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 $0.3 million for both the three months ended March 31, 2023 and 2022. The Company is also charged for its share of the costs associated with welfare plans issued by Prudential Insurance. These expenses include costs related to medical, dental, life insurance and disability. The Company's share of net expense for the welfare plans was $0.4 million and $0.3 million for the three months ended March 31, 2023 and 2022, respectively. Prudential Insurance sponsors voluntary savings plans for its employee 401(k) plans. The plans provide for salary reduction contributions by employees and matching contributions by the Company of up to 4% of annual salary. The Company’s expense for its share of the voluntary savings plan was $0.2 million and $0.1 million for the three months ended March 31, 2023 and 2022, respectively. The Company is charged distribution expenses from Prudential's proprietary nationwide sales organization, "Prudential Advisors" through a transfer pricing agreement, which is intended to reflect a market-based pricing arrangement. Prudential Advisors distributes Prudential life insurance, annuities, and investment products with proprietary and non-proprietary product options. The Company pays commissions and certain other fees to Prudential Annuities Distributors, Inc. (“PAD”) in consideration for PAD’s marketing and underwriting of the Company’s annuity products. Commissions and fees are paid by PAD to broker-dealers who sell the Company’s annuity products. Commissions and fees paid by the Company to PAD were $8 million and $12 million for the three months ended March 31, 2023 and 2022, 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 $4 million and $2 million for the three months ended March 31, 2023 and 2022, respectively. Corporate-Owned Life Insurance The Company has sold three Corporate-Owned Life Insurance ("COLI") policies to Prudential Insurance and one to Prudential Financial. The cash surrender value included in separate accounts for these COLI policies was $3,070 million at March 31, 2023 and $2,946 million at December 31, 2022. Fees related to these COLI policies were $6 million and $7 million for the three months ended March 31, 2023 and 2022, respectively. The Company retains 10% of the mortality risk associated with these COLI policies up to $0.1 million per individual policy. Affiliated Investment Management Expenses In accordance with an agreement with PGIM, Inc. (“PGIM”), the Company pays investment management expenses to PGIM who acts as investment manager to certain Company general account and separate account assets. Investment management expenses paid to PGIM related to this agreement were $0.6 million and $0.7 million for the three months ended March 31, 2023 and 2022, respectively. These expenses are recorded as “Net investment income” in the Company's Unaudited Interim Statements of Operations and Comprehensive Income (Loss). Derivative Trades In its ordinary course of business, the Company enters into OTC derivative contracts with an affiliate, PGF. For these OTC derivative contracts, PGF has a substantially equal and offsetting position with an external counterparty. See Note 4 for additional information. Joint Ventures The Company has made investments in joint ventures with certain subsidiaries of Prudential Financial. "Other invested assets" includes $52 million and $51 million of investments in joint ventures as of March 31, 2023 and December 31, 2022, respectively. "Net investment income" related to these ventures includes gains of $0.0 million and $0.5 million for the three months ended March 31, 2023 and 2022, 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 rec eived from ASTISI and PGIM Investments related to this agreement was $7 million and $8 million for the three months ended March 31, 2023 and 2022, respectively. These revenues are recorded as “Asset administration fees” in the Company's Unaudited Interim Statements of Operations and Comprehensive Income (Loss). The Company has a revenue sharing agreement with PGIM Investments, whereby the Company receives fee income based on policyholders' separate account balances invested in The Prudential Series Fund. Income received from PGIM Investments related to this agreement was $2 million for both the three months ended March 31, 2023 and 2022. These revenues are recorded as “Asset administration fees” in the Company’s Unaudited Interim Statements of Operations and Comprehensive Income (Loss). Affiliated Notes Receivable Affiliated notes receivable included in “Receivables from parent and affiliates” at March 31, 2023 and December 31, 2022 were as follows: Maturity Date Interest Rates March 31, 2023 December 31, 2022 (in thousands) U.S. dollar fixed rate notes 2027 0.00% - 14.85 % $ 700 $ 688 Total long-term notes receivable - affiliated(1) $ 700 $ 688 (1) All long-term notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances. The affiliated notes receivable shown above are classified as available-for-sale securities and other trading assets carried at fair value. The Company monitors the internal and external credit ratings of these loans and loan performance. The Company also considers any guarantees made by Prudential Insurance for loans due from affiliates. Accrued interest receivable related to these loans was $0.0 million for both March 31, 2023 and December 31, 2022. Revenues related to these loans were $0.0 million for both the three months ended March 31, 2023 and 2022, and are included in “Other income (loss)”. Affiliated Asset Transfers The Company participates in affiliated asset trades with parent and sister companies. Book and market value differences for trades with a parent and sister are recognized within "Additional paid-in capital" (“APIC”) and "Realized investment gains (losses), net", respectively. The table below shows affiliated asset trades for the three months ended March 31, 2023 and for the year ended December 31, 2022. Affiliate Date Transaction Security Type Fair Value Book Value APIC, Net of Tax Increase/(Decrease) Realized (in thousands) Prudential Insurance August 2022 Purchase Fixed Maturities $ 21,389 $ 19,630 $ (1,390) $ 0 Debt Agreements The Company is authorized to borrow funds up to $200 million from affiliates to meet its capital and other funding needs. As of March 31, 2023 and December 31, 2022, there was no debt outstanding. The total interest expense to the Company related to loans payable to affiliates was $0.0 million for both the three months ended March 31, 2023 and 2022. Contributed Capital and Dividends In February 2023, the Company received capital contribution in the amount of $175 million from Pruco Life. In February, March, September and December 2022, the Company received capital contributions in the amount of $100 million, $2 million, $100 million and $125 million from Pruco Life, respectively. Through March 2023 and December 2022, the Company did not pay any dividends to Pruco Life. Reinsurance with Affiliates As discussed in Note 11, the Company participates in reinsurance transactions with certain affiliates. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and December 31, 2022, the outstanding balances on these commitments were $6 million and $15 million, respectively. These amounts do not include unfunded commitments that are not unconditionally cancellable. For related credit exposure, there was no allowance for credit losses as of either March 31, 2023 or December 31, 2022. For the three months ended March 31, 2023, and 2022, there was no change in allowance for credit losses. The Company also made commitments to purchase or fund investments, mostly private fixed maturities. As of March 31, 2023 and December 31, 2022, $50 million and $62 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 either the three months ended March 31, 2023 or 2022. 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 March 31, 2023, 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 th an $10 million. This estimate is not an indication of expected loss, if any, or the Company's maximum possible loss exposure on such matters. The Company reviews relevant information with respect to its litigation and regulatory matters on a quarterly and annual basis and updates its accruals, disclosures and estimates of reasonably possible loss based on such reviews. The following discussion of litigation and regulatory matters provides an update of those matters discussed in Note 14 to the Company's Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022, and should be read in conjunction with the complete descriptions provided in the Form 10-K. There are no material developments in previously reported matters disclosed as of December 31, 2022. Summary The Company’s litigation and regulatory matters are subject to many uncertainties, and given their complexity and scope, their outcome cannot be predicted. It is possible that the Company’s results of operations or cash flows in a particular quarterly or annual period could be materially affected by an ultimate unfavorable resolution of pending litigation and regulatory matters depending, in part, upon the results of operations or cash flows for such period. In light of the unpredictability of the Company’s litigation and regulatory matters, it is also possible that in certain cases an ultimate unfavorable resolution of one or more pending litigation or regulatory matters could have a material adverse effect on the Company’s financial statements. Management believes, however, that, based on information currently known to it, the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, is not likely to have a material adverse effect on the Company’s financial statements. |
Significant Accounting Polici_2
Significant Accounting Policies and Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation On January 1, 2023, the Company adopted Accounting Standard Update (“ASU”) 2018-12, Financial Services— Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, which provided new authoritative guidance impacting the accounting and disclosure requirements for long-duration insurance and investment contracts issued by the Company. See “Adoption of ASU 2018-12” below for additional information regarding this adoption, including the impacts to the Company’s 2022 financial statements from implementing the new accounting standard as well as the transition impacts recorded as of January 1, 2021. See Note 2 for additional details regarding the key policy changes effected by this ASU and updated accounting policies resulting from the adoption of this ASU for all periods presented in the Unaudited Interim Financial Statements. The Unaudited Interim Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Intercompany balances and transactions have been eliminated. In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. |
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 future policy benefits; policyholders' account balances and reinsurance related to the fair value of embedded derivative instruments associated with the index-linked features of certain universal life and annuity products; market risk benefits; the valuation of investments including derivatives, the measurement of allowance for credit losses, and the recognition of other-than-temporary impairments; reinsurance recoverables; any provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal and regulatory matters. |
Reclassifications | Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
New accounting pronouncements including the Adoption of ASU 2018-12 | Adoption of ASU 2018-12 Effective January 1, 2023, the Company adopted ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts . Adoption of this ASU impacted, at least to some extent, the accounting and disclosure requirements for all long-duration insurance and investment contracts issued by the Company and had a significant financial impact on the Financial Statements and disclosures. See Note 1 for additional information. As of the January 1, 2021 transition date, the adoption of the standard resulted in a decrease to “Total equity” of $67 million, primarily from remeasuring in force contract liabilities using upper-medium grade fixed income instrument yields as of the transition date and from other changes in reserves. As of the January 1, 2023 adoption date, the impact amounted to a decrease to "Total equity" of $2 million. The changes in the impacts from January 1, 2021 to January 1, 2023 primarily reflect the increase in market interest rates during 2021 and 2022. Outlined below are: (1) key accounting policy changes effected by the ASU and (2) updated accounting policies for all of the periods presented in the Unaudited Interim Financial Statements. (1) Key Accounting Policy Changes Area of Change Description Method of adoption Effect on the financial statements or other significant matters Cash flow assumptions used to measure the liability for future policy benefits for non-participating traditional and limited-payment insurance products Requires an entity to review, and if necessary, update the cash flow assumptions used to measure the liability for future policy benefits, for both changes in future assumptions and actual experience, at least annually using a retrospective update method with a cumulative catch-up adjustment recorded in a separate line item in the Statements of Operations. Effective January 1, 2023 using the modified retrospective transition method, which includes a cumulative effect adjustment to the balance sheet as of January 1, 2021 (the “transition date”). Under this method, the amendments to contracts in force were applied as of January 1, 2021 on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI The impact upon transition reflects the impact on in force contract liabilities in instances where expected net premiums exceeded expected gross premiums at an issue-year cohort level as a result of updating to current best estimate cash flow assumptions as of the transition date. As a result of the modified retrospective transition method, the vast majority of the impact of updating cash flow assumptions to best estimates as of the transition date will be reflected in the pattern of earnings in subsequent periods. See Note 1 for additional information regarding the effect on the financial statements. Adoption of the standard also resulted in additional required disclosures. See Note 8 for additional information. Discount rate assumption used to measure the liability for future policy benefits for non-participating traditional and limited-payment insurance products Requires discount rate assumptions to be based on an upper-medium grade fixed income instrument yields, which will be updated each quarter with the impact recorded through OCI. An entity shall maximize the use of relevant observable information and minimize the use of unobservable information in determining the discount rate assumptions. As noted above, the guidance for the liability for future policy benefits was adopted effective January 1, 2023 using the modified retrospective transition method, which includes a cumulative effect adjustment to the balance sheet as of January 1, 2021. Under this method, for balance sheet remeasurement purposes, the liability for future policy benefits is remeasured using discount rates as of January 1, 2021 with the impact recorded as a cumulative effect adjustment to AOCI. Adoption of the ASU resulted in a significant impact to AOCI as a result of remeasuring in force contract liabilities using current upper-medium grade fixed income instrument yields. This adjustment largely reflects the difference between discount rates locked-in at contract inception versus current discount rates. See Note 1 for additional information regarding the effect on the financial statements. Adoption of the standard also resulted in additional required disclosures. See Note 8 for additional information. Amortization of deferred acquisition costs ("DAC") and other balances Requires DAC and other balances, such as URR and Deferred Sales Inducements, to be amortized on a constant level basis over the expected term of the related contract, independent of expected profitability. Effective January 1, 2023 using the modified retrospective transition method, which includes a cumulative effect adjustment to the balance sheet as of January 1, 2021. Under this method, the amendments to contracts in force were applied as of January 1, 2021 on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI. Adoption of the ASU did not have a significant impact on DAC and other balances upon transition, other than the impact of the removal of any related amounts in AOCI. See Note 1 for additional information regarding the effect on the financial statements. Adoption of the standard also resulted in additional required disclosures. See Note 6 for additional information. Market Risk Benefits Requires an entity to measure all market risk benefits (e.g., living benefit and death benefit guarantees associated with variable annuities) at fair value, and record MRB assets and liabilities separately on the Statements of Financial Position. Changes in the fair value of market risk benefits are recorded in net income, except for the portion attributable to changes in an entity’s NPR, which is recognized in OCI. An entity shall maximize the use of relevant observable information and minimize the use of unobservable information in determining the balance of the market risk benefits upon adoption. Effective January 1, 2023 using the retrospective transition method, which includes a cumulative effect adjustment to the balance sheet as of January 1, 2021. Adoption of the ASU resulted in an adjustment to retained earnings for the difference between the fair value and carrying value of benefits not measured at fair value prior to the adoption of the ASU (e.g., guaranteed minimum death benefits on variable annuities) and a reclass of the cumulative effect of changes in NPR from retained earnings to AOCI. See Note 1 for additional information regarding the effect on the financial statements. Adoption of the standard also resulted in additional required disclosures. See Note 10 for additional information. In addition to the significant key accounting changes noted above, ASU 2018-12 also clarified the definition of assessments used to accrue additional insurance reserves and other related balances, primarily for no-lapse guarantee features on certain universal life contracts. Application of the new guidance changed the pattern of reserve recognition for these guarantees and resulted in an increase to the net contract liabilities related to these products at transition. See Note 1 for additional information regarding the effect on the financial statements. ASU 2022-05, Financial Services – Insurance (Topic 944) Transition for Sold Contracts was issued on December 15, 2022, to amend the transition guidance in ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts . The amendment allows an insurance entity to make an accounting policy election to not apply ASU 2018-12 to contracts or legal entities sold or disposed of before the effective date, and in which the insurance entity has no significant continuing involvement with the derecognized contracts. An insurance entity is permitted to apply the policy election on a transaction by transaction basis to each sale or disposal transaction. An insurance entity is required to disclose whether it has chosen to apply this accounting policy election and provide a qualitative description of the sale or disposal transactions to which the accounting policy election is applied. The Company did not apply this accounting policy election. Other ASUs adopted during the three months ended March 31, 2023 The Company adopted ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosure, effective January 1, 2023, on a prospective basis. This ASU eliminates the accounting guidance for Troubled Debt Restructurings (“TDR”) for creditors and adds enhanced disclosure requirements. Following adoption of the ASU, all loan refinancings and restructurings are subject to the modification guidance in ASC 310-20. Specific to the accounting policy for commercial mortgage and other loans, adoption of the ASU resulted in the elimination of TDRs such that, on a prospective basis, all modifications are evaluated under the existing modification guidance in ASC 310-20 to determine whether a modification results in a new financial instrument or a continuation of the existing financial instrument. Furthermore, for modifications of loans that have a CECL allowance and result in a continuation of the existing loan, the CECL allowance of the loan is remeasured using the modified terms and the post-modification effective yield. Prior to the adoption of the ASU, if a loan modification was a TDR, the CECL allowance of the loan was remeasured using the modified terms and the loan’s original effective yield. Adoption of the ASU did not have a significant impact on the Company’s Financial Statements and Notes to the Financial Statements. |
Deferred policy acquisition costs ("DAC") | Deferred policy acquisition costs represents costs directly related to the successful acquisition of new and renewal insurance and annuity business. Such DAC primarily includes commissions, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully acquired contracts. In each reporting period, previously capitalized DAC is amortized and included in “Amortization of deferred policy acquisition costs”, and the carrying amount of DAC is not subject to recoverability testing upon adoption of the ASU. DAC is amortized on a constant-level basis at a grouped contract level over the expected life of the underlying insurance contracts. Contracts are grouped consistent with the groupings used to estimate the liability for future policy benefits (or other related balances) for the corresponding contracts. Since contracts within a grouping may be of different sizes, contracts within a group are weighted to achieve appropriate amortization and to ensure that DAC is derecognized when a policy is no longer in force. The constant-level basis used to weight contracts within a grouping and amortize DAC is generally defined as follows: • Life insurance contracts – DAC associated with life insurance contracts is generally amortized in proportion to the initial face amount of life insurance in force. This is applicable to traditional and universal life insurance. • Payout annuity contracts – DAC associated with payout annuity contracts is amortized in proportion to annual benefit payments. • Deferred annuity contracts – DAC associated with fixed and variable deferred annuity contracts is amortized in proportion to deposits. For single premium immediate annuities without life contingencies, acquisition expenses are deferred and amortized over the expected life of the contracts using the interest method. Current period DAC amortization reflects the impact of changes in actual insurance in force during the period and changes in future assumptions effected as of the end of the quarter, where applicable. The Company typically updates actuarial assumptions annually in the second quarter, (see " Annual Assumptions Review " below), unless a material change is observed in an interim period that is indicative of a long-term trend. Generally, the Company does not expect trends to change significantly in the short-term and, to the extent these trends may change, the Company expects such changes to be gradual over the long-term. Assumptions used for DAC are consistent with those used in estimating the liability for future policy benefits (or any other related balance) for the corresponding contract. Determining the level of aggregation and actuarial assumptions used in projecting in force terminations requires judgment. Internal criteria are developed to determine the level of aggregation by considering both qualitative and quantitative materiality thresholds. The assumptions used in projecting in force terminations are mortality, mortality improvement, and lapse assumptions. These assumptions are generally based on the Company’s experience, industry experience and/or other factors, as applicable. For variable deferred annuity contracts, lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefits and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. If policyholders surrender traditional life insurance policies in exchange for life insurance policies that do not have fixed and guaranteed terms, the Company immediately charges to expense the remaining unamortized DAC on the surrendered policies. For other internal replacement transactions, except those that involve the addition of a non-integrated contract feature that does not change the existing base contract, the unamortized DAC is immediately charged to expense if the terms of the new policies are not substantially similar to those of the former policies. If the new terms are substantially similar to those of the earlier policies, the DAC is retained with respect to the new policies and amortized over the expected life of the new policies. See Note 6 for additional information regarding DAC. |
Reinsurance recoverables | Reinsurance recoverables include corresponding receivables associated with reinsurance arrangements with affiliates and third party reinsurers, and are reported on the Statements of Financial Position net of the CECL allowance. Reinsurance recoverables also include assumed modified coinsurance arrangements which generally reflect the value of the invested assets retained by the cedant and the associated asset returns. Modified coinsurance recoverables contain an embedded derivative (bifurcated and accounted for separately from the host contract) that is presented together with the derivative embedded in the modified coinsurance payables as one compound derivative. For additional information about these arrangements see Note 11. The CECL allowance considers the credit quality of the reinsurance counterparty and is generally determined based on the probability of default and loss given default assumptions, after considering any applicable collateral arrangements. The CECL allowance does not apply to reinsurance recoverables with affiliated counterparties under common control. Additions to or releases of the allowance are reported in “Policyholders’ benefits.” Prior to the adoption of this standard, an allowance for credit losses for reinsurance recoverables was established only when it was deemed probable that a reinsurer may fail to make payments to us in a timely manner. Reinsurance premiums, commissions, expense reimbursements, benefits and reserves related to reinsured long-duration contracts under coinsurance arrangements are accounted for over the life of the underlying reinsured contracts using assumptions consistent with those used to account for the underlying contracts. For reinsurance of in force blocks of non-participating traditional and limited-payment contracts, the current value of the direct liability as of inception of the reinsurance agreement is used to calculate the reinsurance recoverable and cost of reinsurance such that there is no immediate other comprehensive income or loss from recognition of the reinsurance recoverable at inception. Consistent with the direct liability, the reinsurance recoverable for non-participating traditional and limited-payment contracts is remeasured each period using current single A rates with the effect on the liability resulting from such updates recorded in "Interest rate remeasurement of future policy benefits" in OCI. Coinsurance arrangements contrast with the Company’s yearly renewable term arrangements, where only mortality risk is transferred to the reinsurer and premiums are paid to the reinsurer to reinsure that risk. The mortality risk that is reinsured under yearly renewable term arrangements represents the difference between the stated death benefits in the underlying reinsured contracts and the corresponding reserves or account value carried by the Company on those same contracts. The premiums paid to the reinsurer are based upon negotiated amounts, not on the actual premiums paid by the underlying contract holders to the Company. As yearly renewable term arrangements are usually entered into by the Company with the expectation that the contracts will be in force for the lives of the underlying policies, they are considered to be long-duration reinsurance contracts. The cost of reinsurance for universal life products is generally recognized based on the gross assessments of the underlying direct policies. The cost of reinsurance for term insurance products is generally recognized in proportion to direct premiums over the life of the underlying policies. |
Market risk benefits (assets and liabilities) | Market risk benefits in an asset position are presented separately from market risk benefits in a liability position. See “ Market risk benefits ” below. Market risk benefit liabilities (or assets ) represents contracts or contract features that provide protection to the contractholder and exposes the Company to other than nominal capital market risk, primarily related to deferred annuities with guaranteed minimum benefits associated with Annuities products including guaranteed minimum death benefits (“GMDB”), guaranteed minimum income benefits (“GMIB”), guaranteed minimum accumulation benefits (“GMAB”), guaranteed minimum withdrawal benefits (“GMWB”) and guaranteed minimum income and withdrawal benefits (“GMIWB”). The benefits are accounted for using a fair value measurement framework. If a contract contains multiple market risk benefits, the benefits are bundled together and accounted for as a single compound market risk benefit. Market risk benefits in an asset position are presented separately from those in a liability position as there is no legal right of offset between contracts. The fair value of market risk benefits is calculated as the present value of expected future benefit payments to contractholders less the present value of expected future rider fees attributable to the market risk benefit. The fair value of market risk benefits is based on assumptions a market participant would use in valuing market risk benefits. For additional information regarding the valuation of market risk benefits, see Note 5. On a quarterly basis, changes in the fair value of market risk benefits are recorded in net income, net of related hedges, in "Change in value of market risk benefits, net of related hedging gains (losses)", except for the portion of the change attributable to changes in the Company’s NPR which is recorded in OCI. See Note 10 for additional information regarding market risk benefits. |
Other assets and Other liabilities | Other assets consists primarily of premiums due and deferred loss on reinsurance with affiliates which is amortized over the expected life of the reinsured contracts on a constant-level basis. Other liabilities consists primarily of accrued expenses, reinsurance payables and technical overdrafts. |
Separate account assets and liabilities and Policyholders’ account balances | Separate account assets represents segregated funds that are invested for certain policyholders, and other customers. The assets consist primarily of equity securities, fixed maturities, real estate-related investments, real estate mortgage loans, short-term investments and derivative instruments and are reported at fair value. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. The investment income and realized investment gains or losses from separate account assets generally accrue to the policyholders and are not included in the Company’s results of operations. Mortality, policy administration and surrender charges assessed against the accounts are included in “Policy charges and fee income”. Asset administration fees charged to the accounts are included in “Asset administration fees”. Seed money that the Company invests in separate accounts is reported in the appropriate general account asset line. Investment income and realized investment gains or losses from seed money invested in separate accounts accrue to the Company and are included in the Company’s results of operations. See Note 7 for additional information regarding separate account arrangements with contractual guarantees. See also “Separate account liabilities ” below. Policyholders’ account balances liability represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. This liability is primarily associated with the accumulated account deposits, plus interest credited, less policyholder withdrawals and other charges assessed against the account balance, as applicable. These policyholders’ account balances also include provision for benefits under non-life contingent payout annuities and certain unearned revenues. The unearned revenue liability represents policy charges for services to be provided in future periods. The charges are deferred as incurred and are generally amortized over the expected life of the contract using the same methodology, factors, and assumption used to amortize DAC. See Note 9 for additional information regarding policyholders’ account balances. Policyholders' account balances also include amounts representing the fair value of embedded derivative instruments associated with the index-linked feature of certain universal life and annuity products. For additional information regarding the valuation of these embedded derivatives, see Note 5. Separate account liabilities primarily represents the contractholders’ account balance in separate account assets and to a lesser extent borrowings of the separate account, and will be equal and offsetting to total separate account assets. See also “ Separate account assets” above. |
Future policy benefits | Future policy benefits is primarily comprised of the present value of expected future payments to or on behalf of policyholders, where the timing and amount of payment depends on policyholder mortality or morbidity, less the present value of expected future net premiums (where net premiums are gross premiums multiplied by the Net-To-Gross ("NTG") ratio discussed below). The liability for future policy benefits is accrued over time as premium revenue is recognized. See Note 8 for additional information regarding future policy benefits. The reserving methodology used for non-participating traditional and limited-payment contracts include the following: • Cash Flow Assumptions . In measuring the liability for future policy benefits, the net premium valuation methodology is utilized. Under this methodology, a liability for future policy benefits is established using current best estimate insurance assumptions and interest rate assumptions locked-in at contract issuance date. The NTG ratio is calculated as the ratio of the present value of expected policy benefits and non-level claim settlement expenses divided by the present value of expected gross premiums. The NTG ratio is applied to gross premiums, as premium revenue is recognized, to determine net premiums. The liability is then determined as the present value of expected future policy benefits and non-level claim settlement expenses less the present value of expected future net premiums. For purposes of liability measurement, contracts are grouped into cohorts based primarily on issue year and major product line. The NTG ratio is generally updated quarterly for actual experience and annually for future cash flow assumption updates during the Company’s annual assumptions review process in the second quarter of each year unless a material change is observed in an interim period that is indicative of a long-term trend (see “ Annual Assumptions Review” below), and with the exception of claim settlement expense assumptions which the Company has made an entity-wide election to lock-in as of contract issuance. The NTG ratio is subject to a retrospective unlocking method whereby the Company updates its best estimate of cash flows expected over the life of the cohort using actual historical experience and updated future cash flow assumptions. These updated cash flows are used to calculate the revised NTG ratio, which is used to derive an updated liability for future policy benefits as of the beginning of the current reporting period, discounted at the original contract issuance discount rate. The updated liability for future policy benefit amount as of the beginning of the quarter is then compared to the carrying amount of the liability as of that same date, before the updates for actual experience or future cash flow assumptions, to determine the current period change in liability estimate. This current period change in the liability is the liability remeasurement gain or loss that is recorded through current period earnings in “Change in estimates of liability for future policy benefits.” In subsequent periods, the revised NTG ratio is used to measure the liability for future policy benefits, subject to future revisions. If a cohort is in a loss position where the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for expected future policy benefits and non-level claim settlement expenses, the NTG ratio is capped at 100%. In these instances, all changes in expected benefits resulting from both actual experience deviations and changes in future assumptions are reflected immediately. While the liability for future policy benefits cannot be less than zero (i.e., a contra-liability) at the cohort level and thus the balance is floored at zero (i.e., “flooring”), the NTG ratio may be negative. This would be the case whereby conditions have improved such that the present value of future net premiums plus the existing liability for future policy benefits as of the valuation date exceed the present value of expected future policy benefits and non-level claim settlement expenses. In this case, the negative NTG ratio would be applied going forward to gross premiums received, effectively amortizing the gain into income and reducing the liability over time. For contracts issued prior to January 1, 2021, the modified retrospective transition method was used to transition to ASU 2018-12. Under this method, the transition date of January 1, 2021 serves as the new issue date of the contracts in force for purposes of retrospectively unlocking the NTG ratio as described above. • Discount Rate Assumption. The locked-in discount rate is generally based on expected investment returns at contract inception for contracts issued prior to January 1, 2021 and the upper medium grade fixed income corporate instrument yield (i.e., global single A) at contract inception for contracts issued after January 1, 2021. The discount rate in effect at contract inception is locked-in for the calculation of the NTG ratio and accretion of interest cost on the liability through net income. However, for balance sheet remeasurement purposes, the discount rate is updated using the current single A rate at each reporting period, with the effect on the liability resulting from such update recorded in “Interest rate remeasurement of future policy benefits" in OCI. The methodology used in constructing the single A discount rate curve for discounting cash flows used to calculate the liability for future policy benefits is intended to be reflective of the characteristics of the applicable insurance liabilities. The single A discount rate curve is developed by reference to upper medium grade (low credit risk) fixed income instrument yields that reflect the duration characteristics of the applicable insurance liabilities. The single A discount curve for the United States and foreign economies, such as Japan, with observable corporate A spreads, is developed using government bond rates, plus globally equivalent public corporate A spreads in the observable periods. The definition of upper medium grade is based on Moody’s definition which includes the spectrum of A (i.e., A- to A+). The rate used in foreign operations (with the exception of certain emerging markets, as discussed below) is based on the equivalent of a single A rate from a global rating agency for corporate bonds issued in the same currency and country in which the insurance contract is written. Liquidity is considered in defining the observable period and linear extrapolation is performed to the Company's ultimate long-term economic assumptions. See “Annual Assumptions Review” below for further discussion regarding the Company’s long-term economic assumption setting process. The Company’s liability for future policy benefits also includes net liabilities for guaranteed benefits related to certain long-duration life contracts, such as no-lapse guarantee contract features (AIR liability), for which a liability is established when associated assessments are recognized (which include investment margin on policyholders' account balances in the general account and all policy charges including charges for administration, mortality, expense, surrender, and other charges). This liability is established using current best estimate assumptions and is based on the ratio of the present value of total expected excess payments (i.e., payments in excess of account value) over the life of the contract divided by the present value of total expected assessments (i.e., benefit ratio). For universal life type contracts and participating contracts, the Company performs premium deficiency tests using best estimate assumptions as of the testing date. If the liabilities determined based on these best estimate assumptions are greater than the net reserves (i.e., GAAP reserves including URR, net of reinsurance), the existing net reserves are adjusted by first reducing these assets by the amount of the deficiency or to zero through a charge to current period earnings. If the deficiency is more than these asset balances for insurance contracts, the net reserves are increased by the excess through a charge to current period earnings included in "policyholders' benefits". Since investment yields are used as the discount rate, the premium deficiency test is also performed using a discount rate based on the market yield (i.e., assuming what would be the impact if any unrealized gains (losses) were realized as of the testing date). In the event that by using the market yield a deficiency occurs, an adjustment is established for the deficiency and is included in AOCI. In certain instances, for universal life type contracts and participating contracts, the policyholder liability for a particular line of business may not be deficient in the aggregate to trigger loss recognition, but the pattern of earnings may be such that profits are expected to be recognized in earlier years followed by losses in later years. In these situations, accounting standards require that an additional liability (Profits Followed by Losses or “PFL” liability) be recognized by an amount necessary to sufficiently offset the losses that would be recognized in later years. Historically, PFL liabilities have been predominantly associated with certain universal life contracts that measure GAAP reserves using a dynamic approach, and accordingly, are updated each quarter, using current in force and market data, and as part of the annual assumption update, such that the liability as of each measurement date represents the Company’s current estimate of the present value of the amount necessary to offset anticipated future losses. |
Insurance Revenue And Expense Recognition | Insurance Revenue and Expense Recognition Premiums from individual life products, other than universal and variable life contracts, are recognized when due. When premiums are due over a significantly shorter period than the period over which benefits are provided, any gross premium in excess of the net premium (i.e., the portion of the gross premium required to provide for all expected future benefits and expenses) is generally deferred and recognized into revenue in a constant relationship to insurance in force. Benefits are recorded as an expense when they are incurred. A liability for future policy benefits is recorded when premiums are recognized using the net level premium valuation methodology. Premiums from single premium immediate annuities with life contingencies are recognized when due. When premiums are due over a significantly shorter period than the period over which benefits are provided, any gross premium in excess of the net premium is generally deferred and recognized into revenue based on expected future benefit payments. Benefits are recorded as an expense when they are incurred. A liability for future policy benefits is recorded when premiums are recognized using the net level premium valuation methodology. Certain individual annuity contracts provide the contractholder a guarantee that the benefit received upon death or annuitization will be no less than a minimum prescribed amount. These benefits are generally accounted for as market risk benefits (see “ Market risk benefits ” above). Amounts received as payment for universal or variable individual life contracts, deferred fixed or variable annuities and other contracts without life contingencies are reported as deposits to “Policyholders’ account balances” and/or “Separate account liabilities.” Revenues from these contracts are reflected in “Policy charges and fee income” consisting primarily of fees assessed during the period against the policyholders’ account balances for mortality and other benefit charges, policy administration charges and surrender charges. In addition to fees, the Company earns investment income from the investment of deposits in the Company’s general account portfolio. Fees assessed that represent compensation to the Company for services to be provided in future periods and certain other fees are generally deferred and amortized into revenue over the life of the related contracts using the same methodology, factors, and assumption used to amortize DAC as described above. Benefits and expenses for these products include claims in excess of related account balances, expenses of contract administration, interest credited to policyholders’ account balances and amortization of DAC. |
Business and Basis of Present_2
Business and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Deferred Policy Acquisition Costs | The following tables show a rollforward for the lines of business that contain DAC balances, along with a reconciliation to the Company's total DAC balance: March 31, 2023 Term Life Variable / Universal Life Total (in thousands) Balance, beginning of period $ 70,213 $ 281,661 $ 351,874 Capitalization 4,007 10,791 14,798 Amortization expense (1,748) (3,272) (5,020) Other 0 3 3 Balance, end of period $ 72,472 $ 289,183 $ 361,655 March 31, 2022 Term Life Variable / Universal Life Total (in thousands) Balance, beginning of period $ 62,091 $ 246,653 $ 308,744 Capitalization 4,228 13,642 17,870 Amortization expense (1,650) (3,179) (4,829) Other 0 (4) (4) Balance, end of period $ 64,669 $ 257,112 $ 321,781 |
Liability for Future Policy Benefit (DRL, Benefit Reserves, DPL, and Additional Insurance Reserves) | The balances of and changes in Benefit Reserves as of and for the periods indicated consist of the three tables presented below: Present Value of Expected Net Premiums rollforward, Present Value of Expected Future Policy Benefits rollforward, and Net Liability for Future Policy Benefits. March 31, 2023 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 1,416,807 $ 0 $ 1,416,807 Effect of cumulative changes in discount rate assumptions, beginning of period 73,563 0 73,563 Balance at original discount rate, beginning of period 1,490,370 0 1,490,370 Effect of actual variances from expected experience (10,232) (599) (10,831) Adjusted balance, beginning of period 1,480,138 (599) 1,479,539 Issuances 16,867 710 17,577 Net premiums / considerations collected (43,352) (111) (43,463) Interest accrual 17,156 0 17,156 Balance at original discount rate, end of period 1,470,809 0 1,470,809 Effect of cumulative changes in discount rate assumptions, end of period (40,753) 0 (40,753) Balance, end of period $ 1,430,056 $ 0 $ 1,430,056 March 31, 2023 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 2,551,191 $ 16,460 $ 2,567,651 Effect of cumulative changes in discount rate assumptions, beginning of period 137,962 1,899 139,861 Balance at original discount rate, beginning of period 2,689,153 18,359 2,707,512 Effect of actual variances from expected experience and other activity (14,462) 183 (14,279) Adjusted balance, beginning of period 2,674,691 18,542 2,693,233 Issuances 16,867 710 17,577 Interest accrual 32,494 171 32,665 Benefit payments (40,914) (551) (41,465) Other adjustments (372) 0 (372) Balance at original discount rate, end of period 2,682,766 18,872 2,701,638 Effect of cumulative changes in discount rate assumptions, end of period (64,374) (1,536) (65,910) Balance, end of period $ 2,618,392 $ 17,336 $ 2,635,728 March 31, 2023 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, pre-flooring $ 1,188,336 $ 17,336 $ 1,205,672 Flooring impact, end of period 0 0 0 Balance, end of period, post-flooring 1,188,336 17,336 1,205,672 Less: Reinsurance recoverable 1,036,995 17,336 1,054,331 Balance after reinsurance recoverable, end of period, post-flooring $ 151,341 $ 0 $ 151,341 March 31, 2022 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 1,641,933 $ 0 $ 1,641,933 Effect of cumulative changes in discount rate assumptions, beginning of period (253,752) 0 (253,752) Balance at original discount rate, beginning of period 1,388,181 0 1,388,181 Effect of actual variances from expected experience and other activity 3,165 0 3,165 Adjusted balance, beginning of period 1,391,346 0 1,391,346 Issuances 20,680 341 21,021 Net premiums / considerations collected (40,394) (341) (40,735) Interest accrual 16,119 0 16,119 Balance at original discount rate, end of period 1,387,751 0 1,387,751 Effect of cumulative changes in discount rate assumptions, end of period 120,622 0 120,622 Balance, end of period $ 1,508,373 $ 0 $ 1,508,373 March 31, 2022 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 3,041,562 $ 19,314 $ 3,060,876 Effect of cumulative changes in discount rate assumptions, beginning of period (561,455) (1,459) (562,914) Balance at original discount rate, beginning of period 2,480,107 17,855 2,497,962 Effect of actual variances from expected experience (706) 196 (510) Adjusted balance, beginning of period 2,479,401 18,051 2,497,452 Issuances 20,680 341 21,021 Interest accrual 30,217 150 30,367 Benefit payments (35,047) (529) (35,576) Other adjustments (41) (74) (115) Balance at original discount rate, end of period 2,495,210 17,939 2,513,149 Effect of cumulative changes in discount rate assumptions, end of period 285,629 (132) 285,497 Balance, end of period $ 2,780,839 $ 17,807 $ 2,798,646 March 31, 2022 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, pre-flooring $ 1,272,466 $ 17,807 $ 1,290,273 Flooring impact, end of period 6,028 0 6,028 Balance, end of period, post-flooring 1,278,494 17,807 1,296,301 Less: Reinsurance recoverable 1,112,534 17,807 1,130,341 Balance after reinsurance recoverable, end of period, post-flooring $ 165,960 $ 0 $ 165,960 The following tables provide supplemental information related to the balances of and changes in Benefit Reserves included in the disaggregated tables above, on a gross (direct and assumed) basis, as of and for the periods indicated: March 31, 2023 Term Life Fixed Annuities (in thousands) Undiscounted expected future gross premiums $ 3,056,399 $ 0 Discounted expected future gross premiums (at original discount rate) $ 2,057,345 $ 0 Discounted expected future gross premiums (at current discount rate) $ 2,006,982 $ 0 Undiscounted expected future benefits and expenses $ 4,332,537 $ 24,654 Interest accrual $ 15,338 $ 171 Gross premiums $ 61,365 $ 112 Weighted-average duration of the liability in years (at original discount rate) 11 7 Weighted-average duration of the liability in years (at current discount rate) 10 6 Weighted-average interest rate (at original discount rate) 5.31 % 3.61 % Weighted-average interest rate (at current discount rate) 5.07 % 4.98 % March 31, 2022 Term Life Fixed Annuities (in thousands) Undiscounted expected future gross premiums $ 3,307,354 $ 0 Discounted expected future gross premiums (at original discount rate) $ 2,192,982 $ 0 Discounted expected future gross premiums (at current discount rate) $ 2,396,738 $ 0 Undiscounted expected future benefits and expenses $ 4,023,253 $ 23,522 Interest accrual $ 14,098 $ 150 Gross premiums $ 62,991 $ 653 Weighted-average duration of the liability in years (at original discount rate) 10 7 Weighted-average duration of the liability in years (at current discount rate) 11 7 Weighted-average interest rate (at original discount rate) 5.34 % 3.39 % Weighted-average interest rate (at current discount rate) 3.55 % 3.49 % For additional information regarding observable market information and the techniques used to determine the interest rate assumptions seen above, see Note 2. The balances of and changes in Deferred Profit Liability as of and for the periods indicated are as follows: March 31, 2023 March 31, 2022 Fixed Annuities (in thousands) Balance, beginning of period $ 1,684 $ 1,726 Effect of actual variances from expected experience (107) (164) Adjusted balance, beginning of period 1,577 1,562 Profits deferred 0 309 Interest accrual 13 16 Amortization (45) (52) Other adjustments 0 (6) Balance, end of period 1,545 1,829 Less: Reinsurance recoverable 1,545 1,829 Balance after reinsurance recoverable $ 0 $ 0 The following table provides supplemental information related to the balances of and changes in Deferred Profit Liability, included in the disaggregated table above, on a gross (direct and assumed) basis, as of and for the period indicated: March 31, 2023 March 31, 2022 Fixed Annuities (in thousands) Revenue(1) $ 139 $ (103) Interest accrual 13 16 (1) Represents the gross premiums collected in changes in deferred profit liability. The following table shows a rollforward of AIR balances for variable and universal life products, for the periods indicated: March 31, 2023 March 31, 2022 (in thousands) Balance including amounts in AOCI, beginning of period, post-flooring $ 827,478 $ 703,968 Flooring impact and amounts in AOCI 91,115 (71,467) Balance, excluding amounts in AOCI, beginning of period, pre-flooring 918,593 632,501 Effect of actual variances from expected experience and other activity (342) (10,170) Adjusted balance, beginning of period 918,251 622,331 Assessments collected(1) 14,827 39,441 Interest accrual 7,840 5,339 Benefits paid (3,995) (3,284) Balance, excluding amounts in AOCI, end of period, pre-flooring 936,923 663,827 Flooring impact and amounts in AOCI (65,818) 14,281 Balance, including amounts in AOCI, end of period, post-flooring 871,105 678,108 Less: Reinsurance recoverable 834,640 643,583 Balance after reinsurance recoverable, including amounts in AOCI, end of period $ 36,465 $ 34,525 (1) Represents the portion of gross assessments required to fund the future policy benefits. March 31, 2023 March 31, 2022 (in thousands) Interest accrual $ 7,840 $ 5,339 Gross assessments $ 46,941 $ 92,938 Weighted-average duration of the liability in years (at original discount rate) 28 26 Weighted-average interest rate (at original discount rate) 3.42 % 3.33 % March 31, 2023 March 31, 2022 (in thousands) Benefit reserves, end of period, post-flooring $ 1,205,672 $ 1,296,301 Additional insurance reserves, including amounts in AOCI, end of period, post-flooring 871,105 678,108 Deferred profit liability, end of period, post-flooring 1,545 1,829 Subtotal of amounts disclosed above 2,078,322 1,976,238 Other Future policy benefits reserves(1) 149,309 171,407 Total Future policy benefits $ 2,227,631 $ 2,147,645 (1) Represents balances for which disaggregated rollforward disclosures are not required, including unpaid claims and claims expenses, and incurred but not reported and in course of settlement claim liabilities. The following tables present revenue and interest expense related to Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability, as well as related revenue and interest expense not presented in the above supplemental tables, in the Company's Statement of Operations for the periods indicated: March 31, 2023 Revenues(1) Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 112 $ 61,365 $ 0 $ 61,477 Additional insurance reserves 0 0 46,941 46,941 Deferred profit liability 139 0 0 139 Total $ 251 $ 61,365 $ 46,941 $ 108,557 March 31, 2022 Revenues(1) Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 653 $ 62,991 $ 0 $ 63,644 Additional insurance reserves 0 0 92,938 92,938 Deferred profit liability (103) 0 0 (103) Total $ 550 $ 62,991 $ 92,938 $ 156,479 (1) Represents "Gross premiums" for benefit reserves; "Gross assessments" for additional insurance reserves; and "Revenue" for deferred profit liability. March 31, 2023 Interest Expense Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 171 $ 15,338 $ 0 $ 15,509 Additional insurance reserves 0 0 7,840 7,840 Deferred profit liability 13 0 0 13 Total $ 184 $ 15,338 $ 7,840 $ 23,362 March 31, 2022 Interest Expense Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 150 $ 14,098 $ 0 $ 14,248 Additional insurance reserves 0 0 5,339 5,339 Deferred profit liability 16 0 0 16 Total $ 166 $ 14,098 $ 5,339 $ 19,603 |
Additional Liability, Long-Duration Insurance (URR and Cost of Reinsurance) | The balance of the changes in URR are as follows: March 31, 2023 Variable Life / Universal Life (in thousands) Balance, beginning of period $ 313,711 Unearned revenue 19,030 Amortization expense (3,785) Balance, end of period 328,956 Reinsurance recoverables 85,048 Unearned revenue reserve net of reinsurance recoverables $ 243,908 March 31, 2022 Variable Life / Universal Life (in thousands) Balance, beginning of period $ 251,573 Unearned revenue 19,737 Amortization expense (3,308) Balance, end of period 268,002 Reinsurance recoverables 68,241 Unearned revenue reserve net of reinsurance recoverables $ 199,761 |
Market Risk Benefits | The following tables show a rollforward of MRB balances for variable annuity products, along with a reconciliation to the Company’s total net MRB positions as of the following dates: March 31, 2023 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 398,254 $ (398,254) $ 0 Effect of cumulative changes in non-performance risk 163,169 0 163,169 Balance, beginning of period, before effect of changes in non-performance risk 561,423 (398,254) 163,169 Attributed fees collected 27,304 (27,304) 0 Claims paid (1,653) 1,653 0 Interest accrual 7,035 (7,035) 0 Actual in force different from expected 2,229 (2,229) 0 Effect of changes in interest rates 33,851 (33,851) 0 Effect of changes in equity markets (54,966) 54,966 0 Effect of changes in current period counterparty non-performance risk 0 15,728 15,728 Balance, end of period, before effect of changes in non-performance risk 575,223 (396,326) 178,897 Effect of cumulative changes in non-performance risk (178,897) 0 (178,897) Balance, end of period $ 396,326 $ (396,326) $ 0 March 31, 2022 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 796,913 $ (796,913) $ 0 Effect of cumulative changes in non-performance risk 21,123 0 21,123 Balance, beginning of period, before effect of changes in non-performance risk 818,036 (796,913) 21,123 Attributed fees collected 31,799 (31,799) 0 Claims paid (38) 38 0 Interest accrual 549 (549) 0 Actual in force different from expected 2,255 (2,255) 0 Effect of changes in interest rates (204,292) 204,292 0 Effect of changes in equity markets 71,053 (71,053) 0 Effect of changes in current period counterparty non-performance risk 0 86,828 86,828 Balance, end of period, before effect of changes in non-performance risk 719,362 (611,411) 107,951 Effect of cumulative changes in non-performance risk (107,951) 0 (107,951) Balance, end of period $ 611,411 $ (611,411) $ 0 The following table presents accompanying information to the rollforward table above. See Note 9 for information on "Net amount at risk". March 31, 2023 March 31, 2022 Variable Annuities ($ in thousands) Net amount at risk $ 877,211 $ 305,180 Weighted-average attained age of contractholders 68 66 The table below reconciles MRB asset and liability positions as of the following dates: March 31, 2023 March 31, 2022 Variable Annuities (in thousands) Market risk benefit assets $ 562,922 $ 755,053 Market risk benefit liabilities 562,922 755,053 Net liability $ 0 $ 0 |
Transition adjustment from the adoption of ASU 2018-12 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Accounting Standards of New Guidance on Financial Statements | December 31, 2022 IMPACTED LINES ONLY As Previously Reported Effect of As Currently Reported (in thousands) Deferred policy acquisition costs $ 364,494 $ (12,620) $ 351,874 Reinsurance recoverables 3,258,526 (160,278) 3,098,248 Income tax assets 67,126 489 67,615 Market risk benefit assets 0 558,624 558,624 Other assets 16,207 32,184 48,391 TOTAL ASSETS $ 20,178,046 $ 418,399 $ 20,596,445 Policyholders’ account balances $ 2,763,730 $ 10,585 $ 2,774,315 Future policy benefits 2,303,407 (173,365) 2,130,042 Market risk benefit liabilities 0 558,624 558,624 Other liabilities 147,908 24,397 172,305 Total liabilities 19,149,549 420,241 19,569,790 Retained earnings 439,236 (153,803) 285,433 Accumulated other comprehensive income (loss) (188,151) 151,961 (36,190) Total equity 1,028,497 (1,842) 1,026,655 TOTAL LIABILITIES AND EQUITY $ 20,178,046 $ 418,399 $ 20,596,445 Unaudited Interim Statements of Operations and Comprehensive Income (Loss): Three Months Ended March 31, 2022 IMPACTED LINES ONLY As Previously Reported Effect of As Currently Reported (in thousands) REVENUES Premiums $ 10,195 $ (1,175) $ 9,020 Policy charges and fee income 15,721 (5,126) 10,595 Realized investment gains (losses), net 16,028 (308) 15,720 Change in value of market risk benefits, net of related hedging gain (loss) 0 (86,828) (86,828) TOTAL REVENUES 67,059 (93,437) (26,378) BENEFITS AND EXPENSES Policyholders’ benefits 13,574 261 13,835 Change in estimates of liability for future policy benefits 0 (1,177) (1,177) Amortization of deferred policy acquisition costs 6,192 (1,363) 4,829 General, administrative and other expenses 12,381 (1,381) 11,000 TOTAL BENEFITS AND EXPENSES 43,341 (3,660) 39,681 INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES 23,718 (89,777) (66,059) Income tax expense (benefit) 1,856 (21,799) (19,943) NET INCOME (LOSS) $ 21,862 $ (67,978) $ (46,116) Other comprehensive income (loss), before tax: Net unrealized investment gains (losses) (166,361) 6,268 (160,093) Interest rate remeasurement of future policy benefits 0 22,483 22,483 Gain (loss) from changes in non-performance risk on market risk benefits 0 86,828 86,828 Total (166,428) 115,579 (50,849) Less: Income tax expense (benefit) related to other comprehensive income (loss) (34,949) 24,271 (10,678) Other comprehensive income (loss), net of taxes (131,479) 91,308 (40,171) Comprehensive income (loss) $ (109,617) $ 23,330 $ (86,287) Unaudited Interim Statements of Cash Flows: Three Months Ended March 31, 2022 IMPACTED LINES ONLY As Previously Reported Effect of As Currently Reported (in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 21,862 $ (67,978) $ (46,116) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Policy charges and fee income (4,892) 4,879 (13) Realized investment (gains) losses, net (16,028) 308 (15,720) Change in value of market risk benefits, net of related hedging (gains) losses 0 86,828 86,828 Change in: Future policy benefits and other insurance liabilities (873) 18,282 17,409 Reinsurance recoverables (37,823) 13,720 (24,103) Deferred policy acquisition costs (11,678) (1,359) (13,037) Income taxes 25,140 (21,799) 3,341 Other, net(1) (1,063) (32,881) (33,944) Cash flows from (used in) operating activities $ (10,901) $ 0 $ (10,901) (1) Prior period has been reclassified to conform to the current period presentation. The following tables detail the January 1, 2021 transition adjustments by providing a rollforward of the ending reported balances as of December 31, 2020 to the opening balances as of January 1, 2021 for retained earnings, accumulated other comprehensive income (“AOCI”) and the impacted insurance-related balances. January 1, 2021 Retained Earnings (in thousands) Balance after-tax, prior to transition $ 328,450 Reclassification of market risk benefits non-performance risk to accumulated other comprehensive income(1) (60,792) Updates to certain universal life contract liabilities(2) (20,108) Other(3) 7,722 Total pre-tax adjustments (73,178) Tax impacts 15,367 Balance after-tax, after transition $ 270,639 (1) Reflects the cumulative impact of changes in the fair value of market risk benefits (“MRB”) non-performance risk (“NPR”) from the date of contract issuance to January 1, 2021. These amounts were previously recorded in retained earnings but are now reflected in AOCI under the new guidance. (2) Reflects the impact on additional insurance reserves ("AIR") and other related balances primarily related to the no-lapse guarantee features on certain universal life contracts. For additional information, see Note 2. (3) Primarily reflects the reassessment of deferred reinsurance losses ("DRL"). January 1, 2021 Accumulated Other Comprehensive Income (in thousands) Balance after-tax, prior to transition $ 185,407 Interest rate remeasurement of future policy benefits (57,440) Reclassification of market risk benefits non-performance risk to accumulated other comprehensive income(1) 60,792 Unwinding amounts related to unrealized investment gains and losses(2) (15,161) Total pre-tax adjustments (11,809) Tax impacts 2,480 Balance after-tax, after transition $ 176,078 (1) Reflects the cumulative impact of changes in NPR on the fair value of market risk benefits from the date of contract issuance to January 1, 2021. These amounts were previously recorded in retained earnings but are now reflected in AOCI under the new guidance. (2) Primarily reflects amounts related to DAC and other balances as unrealized investment gains or losses no longer impact the amortization pattern of such balances under the new guidance. Also includes the impacts from updates to reserves and other related balances for certain universal life contracts. For additional information, see Note 2. |
Deferred Policy Acquisition Costs | January 1, 2021 Deferred Policy Acquisition Costs Term Life Variable/Universal Life Total (in thousands) Balance prior to transition $ 51,526 $ 172,899 $ 224,425 Unwinding amounts related to unrealized investment gains and losses 0 21,714 21,714 Other(1) 1 (1,922) (1,921) Balance after transition $ 51,527 $ 192,691 $ 244,218 (1) Represents miscellaneous model refinements. |
Liability for Future Policy Benefit (DRL, Benefit Reserves, DPL, and Additional Insurance Reserves) | January 1, 2021 Deferred Reinsurance Losses(1) Variable Annuities (in thousands) Balance prior to transition $ 15,209 Unwinding amounts related to unrealized investment gains and losses 1,187 Effect of change in reserve basis to market risk benefits 4,236 Balance after transition $ 20,632 (1) Deferred reinsurance losses are included in "Other assets". January 1, 2021 Benefit Reserves(1) Term Life Fixed Annuities Total (in thousands) Balance prior to transition $ 1,049,445 $ 16,468 $ 1,065,913 Changes in cash flow assumptions and other activity 30 (687) (657) Balance after transition, at original discount rate 1,049,475 15,781 1,065,256 Cumulative changes in discount rate assumptions 401,072 2,188 403,260 Balance after transition, at current discount rate 1,450,547 17,969 1,468,516 Less: Reinsurance recoverable 1,264,199 17,944 1,282,143 Balance after transition, net of reinsurance recoverable $ 186,348 $ 25 $ 186,373 (1) Benefit reserves, excluding amounts for reinsurance recoverable, are included in "Future policy benefits". For additional information on the liability for future policy benefits, see Note 8 . January 1, 2021 Deferred Profit Liability(1) Fixed Annuities (in thousands) Balance prior to transition $ 102 Changes in benefit reserves 882 Balance after transition 984 Less: Reinsurance recoverable 984 Balance after transition, net of reinsurance recoverable $ 0 (1) Deferred profit liability ("DPL"), excluding amounts for reinsurance recoverable, is included in "Future policy benefits". For additional information regarding the liability for future policy benefits, see Note 8. January 1, 2021 Additional Insurance Reserves(1) Variable/Universal Life Variable Annuities Total (in thousands) Balance prior to transition $ 513,812 $ 24,433 $ 538,245 Unwinding amounts related to unrealized investment gains and losses (109,355) (1,698) (111,053) Balance prior to transition, excluding amounts related to unrealized investment gains and losses 404,457 22,735 427,192 Reclassification of future policy benefits additional insurance reserves to market risk benefits 0 (22,735) (22,735) Updates to certain universal life contract liabilities(2) 142,726 0 142,726 Balance after transition, excluding amounts related to unrealized investment gains and losses 547,183 0 547,183 Amounts related to unrealized investment gains and losses after transition 95,331 0 95,331 Balance after transition 642,514 0 642,514 Less: Reinsurance recoverable 613,009 0 613,009 Balance after transition, net of reinsurance recoverable $ 29,505 $ 0 $ 29,505 (1) Additional insurance reserves ("AIR"), excluding amounts for reinsurance recoverable, are included in "Future policy benefits". For additional information regarding the liability for future policy benefits, see Note 8. (2) For additional information regarding updates to reserves and other related balances for certain universal life contracts, see Note 2. |
Additional Liability, Long-Duration Insurance (URR and Cost of Reinsurance) | January 1, 2021 Unearned Revenue Reserves(1) Variable/Universal Life (in thousands) Balance prior to transition $ 94,480 Unwinding amounts related to unrealized investment gains and losses and other activity 92,103 Balance after transition 186,583 Less: Reinsurance recoverable 45,019 Balance after transition, net of reinsurance recoverable $ 141,564 (1) Unearned revenue reserves ("URR") are included in "Policyholders' account balances". For additional information regarding the liability for policyholders' account balances, see Note 9. January 1, 2021 Cost of Reinsurance(1) Variable/ Universal Life (in thousands) Balance prior to transition $ 85,773 Unwinding amounts related to unrealized investment gains and losses (34,617) Balance prior to transition, excluding amounts related to unrealized investment gains and losses 51,156 Impact from updates to certain universal life contract liabilities(2) 14,045 Balance after transition, excluding amounts related to unrealized investment gains and losses 65,201 Amounts related to unrealized investment gains and losses after transition 27,620 Balance after transition $ 92,821 (1) Cost of reinsurance is included in "Other liabilities". (2) For additional information regarding updates to reserves and other related balances for certain universal life contracts, see Note 2. |
Market Risk Benefits | January 1, 2021 Market Risk Benefits(1) Variable Annuities (in thousands) Liability for guaranteed benefits recorded at fair value, prior to transition $ 1,195,470 Additional insurance reserves to be reclassed to market risk benefits, prior to transition, excluding amounts related to unrealized investment gains and losses 22,735 Total liability prior to transition 1,218,205 Change in reserve basis to market risk benefits framework (12,634) Market risk benefits after transition, at current non-performance risk value 1,205,571 Less: Reinsured market risk benefits 1,205,571 Market risk benefits after transition, net of reinsurance 0 Market risk benefits after transition, at contract inception non-performance risk value $ 1,266,363 Cumulative change in non-performance risk 60,792 Market risk benefits after transition, at current non-performance risk value $ 1,205,571 (1) For additional information regarding market risk benefits, see Note 10. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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: March 31, 2023 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 $ 52,350 $ 530 $ 216 $ 0 $ 52,664 Obligations of U.S. states and their political subdivisions 182,985 700 3,779 0 179,906 Foreign government bonds 94,250 50 14,977 0 79,323 U.S. public corporate securities 1,348,104 7,322 152,907 0 1,202,519 U.S. private corporate securities 195,195 781 10,532 0 185,444 Foreign public corporate securities 167,603 381 22,925 0 145,059 Foreign private corporate securities 136,113 983 18,377 0 118,719 Asset-backed securities(1) 17,731 242 208 0 17,765 Commercial mortgage-backed securities 123,021 0 8,555 0 114,466 Residential mortgage-backed securities(2) 12,470 113 262 3 12,318 Total fixed maturities, available-for-sale $ 2,329,822 $ 11,102 $ 232,738 $ 3 $ 2,108,183 (1) Includes credit-tranched securities collateralized by education loans and loan obligations. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. December 31, 2022 Amortized Gross Gross Allowance for Credit Losses Fair (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 62,210 $ 0 $ 1,074 $ 0 $ 61,136 Obligations of U.S. states and their political subdivisions 165,109 421 6,315 0 159,215 Foreign government bonds 87,853 1 15,891 0 71,963 U.S. public corporate securities 1,062,342 1,943 180,880 0 883,405 U.S. private corporate securities 186,123 141 13,465 358 172,441 Foreign public corporate securities 138,717 28 25,783 0 112,962 Foreign private corporate securities 133,074 523 21,562 0 112,035 Asset-backed securities(1) 18,358 272 256 0 18,374 Commercial mortgage-backed securities 124,486 0 8,595 0 115,891 Residential mortgage-backed securities(2) 12,446 92 467 5 12,066 Total fixed maturities, available-for-sale $ 1,990,718 $ 3,421 $ 274,288 $ 363 $ 1,719,488 (1) Includes credit-tranched securities collateralized by education loans and loan obligations. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. |
Duration Of Gross Unrealized Losses On Fixed Maturity Securities | The following tables set forth the fair value and gross unrealized losses on available-for-sale fixed maturity securities without an allowance for credit losses aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the dates indicated: March 31, 2023 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 $ 2,025 $ 216 $ 2,025 $ 216 Obligations of U.S. states and their political subdivisions 91,811 1,768 23,724 2,011 115,535 3,779 Foreign government bonds 20,990 888 56,267 14,089 77,257 14,977 U.S. public corporate securities 294,009 13,374 682,776 139,533 976,785 152,907 U.S. private corporate securities 42,180 909 110,537 9,623 152,717 10,532 Foreign public corporate securities 25,478 1,167 97,851 21,758 123,329 22,925 Foreign private corporate securities 9,224 233 87,892 18,144 97,116 18,377 Asset-backed securities 1,237 20 7,233 188 8,470 208 Commercial mortgage-backed securities 30,033 3,122 84,434 5,433 114,467 8,555 Residential mortgage-backed securities 10,350 250 273 12 10,623 262 Total fixed maturities, available-for-sale $ 525,312 $ 21,731 $ 1,153,012 $ 211,007 $ 1,678,324 $ 232,738 December 31, 2022 Less Than Twelve Months Twelve Months or More Total Fair Value Gross Fair Value Gross Fair Value Gross (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 61,136 $ 1,074 $ 0 $ 0 $ 61,136 $ 1,074 Obligations of U.S. states and their political subdivisions 113,693 6,315 0 0 113,693 6,315 Foreign government bonds 46,826 5,741 24,746 10,150 71,572 15,891 U.S. public corporate securities 704,906 111,763 155,138 69,117 860,044 180,880 U.S. private corporate securities 149,670 11,857 9,273 1,608 158,943 13,465 Foreign public corporate securities 69,310 11,016 38,996 14,767 108,306 25,783 Foreign private corporate securities 62,044 12,499 33,858 9,063 95,902 21,562 Asset-backed securities 5,570 160 3,289 96 8,859 256 Commercial mortgage-backed securities 110,820 8,398 5,071 197 115,891 8,595 Residential mortgage-backed securities 10,509 467 0 0 10,509 467 Total fixed maturities, available-for-sale $ 1,334,484 $ 169,290 $ 270,371 $ 104,998 $ 1,604,855 $ 274,288 |
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: March 31, 2023 Amortized Cost Fair Value (in thousands) Fixed maturities, available-for-sale: Due in one year or less $ 81,580 $ 78,489 Due after one year through five years 250,358 235,884 Due after five years through ten years 154,199 149,387 Due after ten years 1,690,463 1,499,874 Asset-backed securities 17,731 17,765 Commercial mortgage-backed securities 123,021 114,466 Residential mortgage-backed securities 12,470 12,318 Total fixed maturities, available-for-sale $ 2,329,822 $ 2,108,183 |
Sources of Fixed Maturity Proceeds, Realized Investment Gains (Losses), and Losses on Impairments | The following table sets forth the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on write-downs and the allowance for credit losses of fixed maturities, for the periods indicated: Three Months Ended March 31, 2023 2022 (in thousands) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 886 $ 20,241 Proceeds from maturities/prepayments 32,121 18,233 Gross investment gains from sales and maturities 29 2 Gross investment losses from sales and maturities (415) (1,961) (Addition to) release of allowance for credit losses 360 0 (1) Excludes activity from non-cash related proceeds due to the timing of trade settlements of $0.2 million and $0.0 million for the three months ended March 31, 2023 and 2022, respectively. |
Other than Temporary Impairment, Credit Losses Recognized in Earnings | The following table sets forth the activity in the allowance for credit losses for fixed maturity securities, as of the dates indicated: Three Months Ended March 31, 2023 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of period $ 0 $ 0 $ 358 $ 0 $ 0 $ 5 $ 363 Reductions for securities sold during the period 0 0 (358) 0 0 (1) (359) Additions (reductions) on securities with previous allowance 0 0 0 0 0 (1) (1) Balance, end of period $ 0 $ 0 $ 0 $ 0 $ 0 $ 3 $ 3 |
Commercial Mortgage and Other Loans | The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: March 31, 2023 December 31, 2022 Amount % of Total Amount % of Total Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 62,244 38.8 % $ 62,434 42.0 % Hospitality 12,849 8.0 12,996 8.7 Industrial 31,627 19.7 17,132 11.5 Office 8,188 5.1 10,568 7.1 Other 7,796 4.9 7,767 5.2 Retail 22,021 13.8 22,123 14.9 Total commercial mortgage loans 144,725 90.3 133,020 89.4 Agricultural property loans 15,526 9.7 15,567 10.6 Total commercial mortgage and agricultural property loans 160,251 100.0 % 148,587 100.0 % Allowance for credit losses (499) (408) Total net commercial mortgage and other loans $ 159,752 $ 148,179 |
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: Three Months Ended March 31, 2023 2022 Commercial Mortgage Loans Agricultural Property Loans Total Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance, beginning of period $ 405 $ 3 $ 408 $ 246 $ 0 $ 246 Addition to (release of) allowance for expected losses 38 53 91 (16) 1 (15) Allowance, end of period $ 443 $ 56 $ 499 $ 230 $ 1 $ 231 |
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: March 31, 2023 Amortized Cost by Origination Year 2023 2022 2021 2020 2019 Prior Total (in thousands) Commercial mortgage loans Loan-to-Value Ratio: 0%-59.99% $ 0 $ 19,978 $ 787 $ 0 $ 10,030 $ 47,468 $ 78,263 60%-69.99% 0 15,000 1,615 2,198 18,953 1,016 38,782 70%-79.99% 14,509 0 347 0 3,855 7,175 25,886 80% or greater 0 0 0 0 0 1,794 1,794 Total $ 14,509 $ 34,978 $ 2,749 $ 2,198 $ 32,838 $ 57,453 $ 144,725 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 14,509 $ 34,978 $ 2,749 $ 2,198 $ 27,743 $ 39,083 $ 121,260 1.0 - 1.2x 0 0 0 0 0 8,735 8,735 Less than 1.0x 0 0 0 0 5,095 9,635 14,730 Total $ 14,509 $ 34,978 $ 2,749 $ 2,198 $ 32,838 $ 57,453 $ 144,725 Agricultural property loans Loan-to-Value Ratio: 0%-59.99% $ 0 $ 1,068 $ 1,080 $ 0 $ 0 $ 1,033 $ 3,181 60%-69.99% 0 12,345 0 0 0 0 12,345 70%-79.99% 0 0 0 0 0 0 0 80% or greater 0 0 0 0 0 0 0 Total $ 0 $ 13,413 $ 1,080 $ 0 $ 0 $ 1,033 $ 15,526 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 0 $ 13,413 $ 1,080 $ 0 $ 0 $ 1,033 $ 15,526 1.0 - 1.2x 0 0 0 0 0 0 0 Less than 1.0x 0 0 0 0 0 0 0 Total $ 0 $ 13,413 $ 1,080 $ 0 $ 0 $ 1,033 $ 15,526 December 31, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total (in thousands) Commercial mortgage loans Loan-to-Value Ratio: 0%-59.99% $ 20,000 $ 792 $ 0 $ 9,993 $ 1,387 $ 48,812 $ 80,984 60%-69.99% 15,000 1,615 2,198 18,982 0 1,016 38,811 70%-79.99% 0 347 0 3,855 0 7,213 11,415 80% or greater 0 0 0 0 0 1,810 1,810 Total $ 35,000 $ 2,754 $ 2,198 $ 32,830 $ 1,387 $ 58,851 $ 133,020 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 35,000 $ 2,754 $ 2,198 $ 27,697 $ 1,387 $ 40,285 $ 109,321 1.0 - 1.2x 0 0 0 0 0 8,809 8,809 Less than 1.0x 0 0 0 5,133 0 9,757 14,890 Total $ 35,000 $ 2,754 $ 2,198 $ 32,830 $ 1,387 $ 58,851 $ 133,020 Agricultural property loans Loan-to-Value Ratio: 0%-59.99% $ 1,078 $ 1,092 $ 0 $ 0 $ 0 $ 1,052 $ 3,222 60%-69.99% 12,345 0 0 0 0 0 12,345 70%-79.99% 0 0 0 0 0 0 0 80% or greater 0 0 0 0 0 0 0 Total $ 13,423 $ 1,092 $ 0 $ 0 $ 0 $ 1,052 $ 15,567 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 13,423 $ 1,092 $ 0 $ 0 $ 0 $ 1,052 $ 15,567 1.0 - 1.2x 0 0 0 0 0 0 0 Less than 1.0x 0 0 0 0 0 0 0 Total $ 13,423 $ 1,092 $ 0 $ 0 $ 0 $ 1,052 $ 15,567 |
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: March 31, 2023 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 $ 144,725 $ 0 $ 0 $ 0 $ 144,725 $ 0 Agricultural property loans 15,526 0 0 0 15,526 0 Total $ 160,251 $ 0 $ 0 $ 0 $ 160,251 $ 0 (1) As of March 31, 2023, there were no loans in this category accruing interest. (2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. December 31, 2022 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status(2) (in thousands) Commercial mortgage loans $ 133,020 $ 0 $ 0 $ 0 $ 133,020 $ 0 Agricultural property loans 15,567 0 0 0 15,567 0 Total $ 148,587 $ 0 $ 0 $ 0 $ 148,587 $ 0 (1) As of December 31, 2022, there were no loans in this category accruing interest. (2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. |
Other Invested Assets | The following table sets forth the composition of “Other invested assets,” as of the dates indicated: March 31, 2023 December 31, 2022 (in thousands) LPs/LLCs: Equity method: Private equity 78,320 74,468 Hedge funds 43,407 42,472 Real estate-related 9,801 10,199 Subtotal equity method 131,528 127,139 Fair value: Private equity 256 279 Hedge funds 44 55 Real estate-related 1,935 2,055 Subtotal fair value 2,235 2,389 Total LPs/LLCs 133,763 129,528 Total other invested assets $ 133,763 $ 129,528 |
Accrued Investment Income | The following table sets forth the composition of “Accrued investment income,” as of the dates indicated: March 31, 2023 December 31, 2022 (in thousands) Fixed maturities $ 24,081 $ 18,653 Equity securities 92 1 Commercial mortgage and other loans 455 352 Policy loans 5,745 5,612 Short-term investments and cash equivalents 691 604 Total accrued investment income $ 31,064 $ 25,222 |
Net Investment Income | The following table sets forth “Net investment income” by investment type, for the periods indicated: Three Months Ended March 31, 2023 2022 (in thousands) Fixed maturities, available-for-sale $ 21,117 $ 17,125 Fixed maturities, trading 157 274 Equity securities 91 91 Commercial mortgage and other loans 1,679 1,082 Policy loans 2,525 2,772 Other invested assets 1,478 4,000 Short-term investments and cash equivalents 2,641 60 Gross investment income 29,688 25,404 Less: investment expenses (1,028) (1,035) Net investment income $ 28,660 $ 24,369 |
Realized Investment Gains (Losses), Net | The following table sets forth “Realized investment gains (losses), net” by investment type, for the periods indicated: Three Months Ended March 31, 2023 2022 (in thousands) Fixed maturities(1) $ (26) $ (1,959) Commercial mortgage and other loans (91) 15 Other invested assets 0 (51) Derivatives (8,241) 17,727 Short term investments and cash equivalents 60 (12) Realized investment gains (losses), net $ (8,298) $ 15,720 (1) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading. |
Net Unrealized Gains and (Losses) on Investments | The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated: March 31, 2023 December 31, 2022 (in thousands) Fixed maturity securities, available-for-sale without an allowance $ (221,636) $ (270,867) Derivatives designated as cash flow hedges(1) 12,513 14,102 Affiliated notes 61 59 Other investments 127 122 Net unrealized gains (losses) on investments $ (208,935) $ (256,584) (1) For more information on cash flow hedges, see Note 4. |
Repurchase Agreements and Securities Lending | The following table sets forth the composition of “Cash collateral for loaned securities” which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated: March 31, 2023 December 31, 2022 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 $ 3,325 $ 0 $ 3,325 $ 0 $ 0 $ 0 Total cash collateral for loaned securities(1) $ 3,325 $ 0 $ 3,325 $ 0 $ 0 $ 0 (1) The Company did not have agreements with remaining contractual maturities greater than thirty days, as of the dates indicated. |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 of the netting effects of master netting agreements and cash collateral. March 31, 2023 December 31, 2022 Primary Underlying Risk/Instrument Type Fair Value Fair Value Gross Notional Assets Liabilities Gross Notional Assets Liabilities (in thousands) Derivatives Designated as Hedge Accounting Instruments: Currency/Interest Rate Foreign Currency Swaps $ 121,573 $ 12,726 $ (716) $ 117,015 $ 14,281 $ (516) Total Derivatives Designated as Hedge Accounting Instruments: $ 121,573 $ 12,726 $ (716) $ 117,015 $ 14,281 $ (516) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 30,200 $ 169 $ (348) $ 30,200 $ 0 $ (383) Credit Credit Default Swaps 0 0 0 0 0 0 Currency/Interest Rate Foreign Currency Swaps 24,035 2,535 0 24,035 2,957 0 Foreign Currency Foreign Currency Forwards 8,336 1 (125) 7,520 3 (368) Equity Equity Options 510,150 2,199 (18,506) 509,200 555 (20,562) Total Derivatives Not Qualifying as Hedge Accounting Instruments: $ 572,721 $ 4,904 $ (18,979) $ 570,955 $ 3,515 $ (21,313) Total Derivatives(1)(2) $ 694,294 $ 17,630 $ (19,695) $ 687,970 $ 17,796 $ (21,829) (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 $127 million and $108 million as of March 31, 2023 and December 31, 2022, respectively included in “Policyholders’ account balances". (2) Recorded in "Other invested assets" and "Payables to parent and affiliates" on the Unaudited Interim 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 Unaudited Interim Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Statements of Financial Position. March 31, 2023 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 17,630 $ (17,630) $ 0 $ 0 $ 0 Securities purchased under agreements to resell 0 0 0 0 0 Total Assets $ 17,630 $ (17,630) $ 0 $ 0 $ 0 Offsetting of Financial Liabilities: Derivatives $ 19,695 $ (17,630) $ 2,065 $ (2,065) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 19,695 $ (17,630) $ 2,065 $ (2,065) $ 0 December 31, 2022 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 17,796 $ (17,796) $ 0 $ 0 $ 0 Securities purchased under agreements to resell 0 0 0 0 0 Total Assets $ 17,796 $ (17,796) $ 0 $ 0 $ 0 Offsetting of Financial Liabilities: Derivatives $ 21,829 $ (17,796) $ 4,033 $ (4,033) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 21,829 $ (17,796) $ 4,033 $ (4,033) $ 0 (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. |
Offsetting Of Financial Liabilities | The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Statements of Financial Position. March 31, 2023 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 17,630 $ (17,630) $ 0 $ 0 $ 0 Securities purchased under agreements to resell 0 0 0 0 0 Total Assets $ 17,630 $ (17,630) $ 0 $ 0 $ 0 Offsetting of Financial Liabilities: Derivatives $ 19,695 $ (17,630) $ 2,065 $ (2,065) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 19,695 $ (17,630) $ 2,065 $ (2,065) $ 0 December 31, 2022 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 17,796 $ (17,796) $ 0 $ 0 $ 0 Securities purchased under agreements to resell 0 0 0 0 0 Total Assets $ 17,796 $ (17,796) $ 0 $ 0 $ 0 Offsetting of Financial Liabilities: Derivatives $ 21,829 $ (17,796) $ 4,033 $ (4,033) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 21,829 $ (17,796) $ 4,033 $ (4,033) $ 0 (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship. Three Months Ended March 31, 2023 Realized Change in Value of Market Risk Benefits, Net of Related Hedging Gain (Loss) Net Other Income Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 18 $ 0 $ 481 $ (112) $ (1,589) Total cash flow hedges 18 0 481 (112) (1,589) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 167 0 0 0 0 Currency (82) 0 0 0 0 Currency/Interest Rate (228) 0 0 (8) 0 Credit 0 0 0 0 0 Equity 1,759 0 0 0 0 Embedded Derivatives (9,875) 0 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (8,259) 0 0 (8) 0 Total $ (8,241) $ 0 $ 481 $ (120) $ (1,589) Three Months Ended March 31, 2022 (1) Realized Change in Value of Market Risk Benefits, Net of Related Hedging Gain (Loss) Net Other Income Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 31 $ 0 $ 451 $ 188 $ 1,222 Total cash flow hedges 31 0 451 188 1,222 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (1,201) 0 0 0 0 Currency 115 0 0 0 0 Currency/Interest Rate 290 0 0 8 0 Credit 0 0 0 0 0 Equity (1,526) 0 0 0 0 Embedded Derivatives 20,018 0 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments 17,696 0 0 8 0 Total $ 17,727 $ 0 $ 451 $ 196 $ 1,222 (1) Prior period amounts have been updated to conform to current period presentation. |
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, 2022 $ 14,102 Amount recorded in AOCI Currency/Interest Rate (1,202) Total amount recorded in AOCI (1,202) Amount reclassified from AOCI to income Currency/Interest Rate (387) Total amount reclassified from AOCI to income (387) Balance, March 31, 2023 $ 12,513 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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. March 31, 2023 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 $ 52,664 $ 0 $ $ 52,664 Obligations of U.S. states and their political subdivisions 0 179,906 0 179,906 Foreign government bonds 0 79,323 0 79,323 U.S. corporate public securities 0 1,202,519 0 1,202,519 U.S. corporate private securities 0 181,868 3,576 185,444 Foreign corporate public securities 0 145,059 0 145,059 Foreign corporate private securities 0 118,719 0 118,719 Asset-backed securities(2) 0 17,765 0 17,765 Commercial mortgage-backed securities 0 94,585 19,881 114,466 Residential mortgage-backed securities 0 12,318 0 12,318 Subtotal 0 2,084,726 23,457 2,108,183 Market risk benefit assets 0 0 562,922 562,922 Fixed maturities, trading 0 23,938 0 23,938 Equity securities 0 69 4,294 4,363 Short-term investments 0 8,000 0 8,000 Cash equivalents 0 81,323 0 81,323 Other invested assets(3) 0 17,630 0 (17,630) 0 Reinsurance recoverable 0 0 1,357 1,357 Receivables from parent and affiliates 0 699 0 699 Subtotal excluding separate account assets 0 2,216,385 592,030 (17,630) 2,790,785 Separate account assets(4)(5) 0 12,452,598 0 12,452,598 Total assets $ 0 $ 14,668,983 $ 592,030 $ (17,630) $ 15,243,383 Market risk benefit liabilities $ 0 $ 0 $ 562,922 $ $ 562,922 Policyholders' account balances 0 0 127,032 127,032 Payables to parent and affiliates 0 19,695 0 (17,630) 2,065 Total liabilities $ 0 $ 19,695 $ 689,954 $ (17,630) $ 692,019 December 31, 2022 Level 1 Level 2 Level 3 Netting(1) Total (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 61,136 $ 0 $ $ 61,136 Obligations of U.S. states and their political subdivisions 0 159,215 0 159,215 Foreign government bonds 0 71,963 0 71,963 U.S. corporate public securities 0 883,405 0 883,405 U.S. corporate private securities 0 168,638 3,803 172,441 Foreign corporate public securities 0 112,962 0 112,962 Foreign corporate private securities 0 112,035 0 112,035 Asset-backed securities(2) 0 18,374 0 18,374 Commercial mortgage-backed securities 0 95,190 20,701 115,891 Residential mortgage-backed securities 0 12,066 0 12,066 Subtotal 0 1,694,984 24,504 1,719,488 Market risk benefit assets 0 0 558,624 558,624 Fixed maturities, trading 0 23,782 0 23,782 Equity securities 0 67 4,291 4,358 Short-term investments 0 3,000 0 3,000 Cash equivalents 0 245,302 0 245,302 Other invested assets(3) 0 17,796 0 (17,796) 0 Reinsurance recoverable 0 0 0 0 Receivables from parent and affiliates 0 688 0 688 Subtotal excluding separate account assets 0 1,985,619 587,419 (17,796) 2,555,242 Separate account assets(4)(5) 0 12,014,623 0 12,014,623 Total assets $ 0 $ 14,000,242 $ 587,419 $ (17,796) $ 14,569,865 Market risk benefit liabilities $ 0 $ 0 $ 558,624 $ $ 558,624 Policyholders' account balances 0 0 108,144 108,144 Payables to parent and affiliates 0 21,829 0 (17,796) 4,033 Total liabilities $ 0 $ 21,829 $ 666,768 $ (17,796) $ 670,801 (1) “Netting” amounts represent cash collateral of $0 million as of both March 31, 2023 and December 31, 2022. (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. As of March 31, 2023 and December 31, 2022, the fair values of such investments were $2.2 million and $2.4 million, respectively. (4) 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 March 31, 2023 and December 31, 2022, the fair value of such investments were $1,961 million and $1,912 million, respectively. (5) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company's Unaudited Interim Statements of Financial Position. |
Fair Value Inputs, Assets and Liabilities, Quantitative Information | The tables below present quantitative information regarding significant internally-priced Level 3 assets and liabilities. March 31, 2023 Fair Value Valuation Unobservable Minimum Maximum Weighted Impact of Increase in Input on Fair (in thousands) Assets: Corporate securities(2) $ 3,576 Discounted cash flow Discount rate 10.68 % 10.68 % 10.68 % Decrease Commercial mortgage-backed securities $ 19,881 Discounted cash flow Liquidity premium 0.60 % 0.75 % 0.69 % Decrease Market risk benefit assets(3) $ 562,922 Discounted cash flow Lapse rate(4) 1 % 20 % Increase Spread over SOFR(5) 0.52 % 2.20 % Increase Utilization rate(6) 38 % 95 % Decrease Withdrawal rate See table footnote (7) below. Mortality rate(8) 0 % 15 % Increase Equity volatility curve 18 % 25 % Decrease Liabilities: Market risk benefit liabilities(3) $ 562,922 Discounted cash flow Lapse rate(4) 1 % 20 % Decrease Spread over SOFR(5) 0.52 % 2.20 % Decrease Utilization rate(6) 38 % 95 % Increase Withdrawal rate See table footnote (7) below. Mortality rate(8) 0 % 15 % Decrease Equity volatility curve 18 % 25 % Increase Policyholders' account balances(9) $ 127,032 Discounted cash flow Lapse rate(4) 1 % 80 % Decrease Spread over SOFR(5) 0.27 % 2.34 % Decrease Mortality rate(8) 0 % 23 % Decrease Equity volatility curve 14 % 30 % Increase Option budget(10) (2) % 6 % Increase December 31, 2022 Fair Value Valuation Unobservable Inputs Minimum Maximum Weighted Impact of Increase (in thousands) Assets: Corporate securities(2) $ 3,803 Discounted cash flow Discount rate 10.18 % 10.18 % 10.18 % Decrease Commercial mortgage-backed securities $ 20,701 Discounted cash flow Liquidity premium 60 % 75 % 69.05 % Decrease Market risk benefit assets(3) $ 558,624 Discounted cash flow Lapse rate(4) 1 % 20 % Increase Spread over SOFR(5) 0.51 % 2.14 % Increase Utilization rate(6) 38 % 95 % Decrease Withdrawal rate See table footnote (7) below. Mortality rate(8) 0 % 15 % Increase Equity volatility curve 18 % 28 % Decrease Liabilities: Market risk benefit liabilities(3) $ 558,624 Discounted cash flow Lapse rate(4) 1 % 20 % Decrease Spread over SOFR(5) 0.51 % 2.14 % Decrease Utilization rate(6) 38 % 95 % Increase Withdrawal rate See table footnote (7) below. Mortality rate(8) 0 % 15 % Decrease Equity volatility curve 18 % 28 % Increase Policyholders' account balances(9) $ 108,144 Discounted cash flow Lapse rate(4) 1 % 6 % Decrease Spread over SOFR(5) 0.17 % 0.66 % Decrease Mortality rate(8) 0 % 23 % Decrease Equity volatility curve 18 % 28 % Increase (1) Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table. (2) Includes assets classified as fixed maturities available-for-sale. (3) Market risk benefits primarily represent fair value for all living benefit guarantees including accommodation, withdrawal and income benefits. Since the valuation methodology for these assets and liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (4) 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. (5) The spread over the Secured Overnight Financing Rate (“SOFR”) swap curve and the London Inter-Bank Offered Rate (“LIBOR”) swap curve represents the premium added to the proxy for the risk-free rate (SOFR or LIBOR, as applicable) to reflect the Company’s estimates of rates that a market participant would use to value the living benefits in both the accumulation and payout phases and index-linked interest crediting guarantees as of March 31, 2023 and December 31, 2022, respectively. This spread includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because funding agreements, living benefit guarantees, and index-linked interest crediting guarantees are insurance liabilities and are therefore senior to debt. (6) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits. (7) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of both March 31, 2023 and December 31, 2022, the minimum withdrawal rate assumption is 77% and maximum withdrawal rate assumption may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%. (8) The range reflects the mortality rates for the vast majority of business with living benefits and other contracts, with policyholders ranging from 50 to 90 years old. While the majority of living benefits have a minimum age requirement, certain other contracts do not have an age restriction. This results in contractholders with mortality rates approaching 0% for certain benefits. Mortality rates may vary by product, age, and duration. A mortality improvement assumption is also incorporated into the overall mortality table. (9) 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 weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (10) Option budget estimates the expected long-term cost of options used to hedge exposures associated with equity price and interest rate changes. The level of option budgets determines future costs of the options, which impacts the growth in account value and the valuation of embedded derivatives. |
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. Three Months Ended March 31, 2023(5) Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(1) (in thousands) Fixed maturities, available-for-sale: Corporate securities(2) $ 3,803 $ (36) $ 3,644 $ 0 $ 0 $ (3,835) $ 0 $ 0 $ 0 $ 3,576 $ (37) Structured securities(3) 20,701 (733) 0 0 0 (87) 0 0 0 19,881 (720) Other assets: Equity securities 4,291 3 0 0 0 0 0 0 0 4,294 3 Reinsurance recoverable 0 1,357 0 0 0 0 0 0 0 1,357 1,357 Liabilities: Policyholders' account balances(4) (108,144) (10,832) 0 0 (8,056) 0 0 0 0 (127,032) (13,914) Three Months Ended March 31, 2023(5) Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(1) Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ (2) $ 0 $ (756) $ (11) $ 0 $ 0 $ (757) Other assets: Equity securities 0 3 0 0 0 3 0 Reinsurance recoverable 1,357 0 0 0 1,357 0 0 Liabilities: Policyholders' account balances (10,832) 0 0 0 (13,914) 0 0 Three Months Ended March 31, 2022(5) Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(1) (in thousands) Fixed maturities, available-for-sale: Corporate securities(2) 24,319 (2,864) 0 0 0 (632) 0 0 0 20,823 (2,821) Structured securities(3) 27,274 (2,795) 0 0 0 (82) 0 0 0 24,397 (2,796) Other assets: Equity securities 5,812 (514) 0 0 0 0 0 0 0 5,298 (514) Reinsurance recoverable 0 0 0 0 0 0 0 0 0 0 0 Liabilities: Policyholders' account balances(4) (153,127) 19,553 0 0 0 2,644 0 0 0 (130,930) 21,607 Three Months Ended March 31, 2022(5) Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(1) Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ 0 $ 0 $ (5,661) $ 2 $ 0 $ 0 $ (5,617) Other assets: Equity securities 0 (514) 0 0 0 (514) 0 Reinsurance recoverable 0 0 0 0 0 0 0 Liabilities: Policyholders' account balances 19,553 0 0 0 21,607 0 0 (1) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts. (2) Includes U.S. corporate private securities. (3) Includes commercial mortgage-backed securities. (4) Issuances and settlements for Policyholders' account balances are presented net in the rollforward. (5) Effective January 1, 2021, Future policy benefits previously included in “changes in level 3 assets and liabilities” are reported in Note 10 Market Risk Benefits. |
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. Three Months Ended March 31, 2023(5) Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(1) (in thousands) Fixed maturities, available-for-sale: Corporate securities(2) $ 3,803 $ (36) $ 3,644 $ 0 $ 0 $ (3,835) $ 0 $ 0 $ 0 $ 3,576 $ (37) Structured securities(3) 20,701 (733) 0 0 0 (87) 0 0 0 19,881 (720) Other assets: Equity securities 4,291 3 0 0 0 0 0 0 0 4,294 3 Reinsurance recoverable 0 1,357 0 0 0 0 0 0 0 1,357 1,357 Liabilities: Policyholders' account balances(4) (108,144) (10,832) 0 0 (8,056) 0 0 0 0 (127,032) (13,914) Three Months Ended March 31, 2023(5) Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(1) Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ (2) $ 0 $ (756) $ (11) $ 0 $ 0 $ (757) Other assets: Equity securities 0 3 0 0 0 3 0 Reinsurance recoverable 1,357 0 0 0 1,357 0 0 Liabilities: Policyholders' account balances (10,832) 0 0 0 (13,914) 0 0 Three Months Ended March 31, 2022(5) Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(1) (in thousands) Fixed maturities, available-for-sale: Corporate securities(2) 24,319 (2,864) 0 0 0 (632) 0 0 0 20,823 (2,821) Structured securities(3) 27,274 (2,795) 0 0 0 (82) 0 0 0 24,397 (2,796) Other assets: Equity securities 5,812 (514) 0 0 0 0 0 0 0 5,298 (514) Reinsurance recoverable 0 0 0 0 0 0 0 0 0 0 0 Liabilities: Policyholders' account balances(4) (153,127) 19,553 0 0 0 2,644 0 0 0 (130,930) 21,607 Three Months Ended March 31, 2022(5) Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(1) Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ 0 $ 0 $ (5,661) $ 2 $ 0 $ 0 $ (5,617) Other assets: Equity securities 0 (514) 0 0 0 (514) 0 Reinsurance recoverable 0 0 0 0 0 0 0 Liabilities: Policyholders' account balances 19,553 0 0 0 21,607 0 0 (1) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts. (2) Includes U.S. corporate private securities. (3) Includes commercial mortgage-backed securities. (4) Issuances and settlements for Policyholders' account balances are presented net in the rollforward. (5) Effective January 1, 2021, Future policy benefits previously included in “changes in level 3 assets and liabilities” are reported in Note 10 Market Risk Benefits. |
Fair Value Disclosure Financial Instruments Not Carried at Fair Value | The tables below present the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Unaudited Interim Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value. March 31, 2023 Fair Value Carrying Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 155,427 $ 155,427 $ 159,752 Policy loans 0 0 212,479 212,479 212,479 Short-term investments 4,000 0 0 4,000 4,000 Cash and cash equivalents 1,963 0 0 1,963 1,963 Accrued investment income 0 31,064 0 31,064 31,064 Reinsurance recoverables 0 0 24,462 24,462 26,196 Receivables from parent and affiliates 0 16,875 0 16,875 16,875 Other assets 0 3,805 0 3,805 3,805 Total assets $ 5,963 $ 51,744 $ 392,368 $ 450,075 $ 456,134 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 165,411 $ 34,845 $ 200,256 $ 201,990 Cash collateral for loaned securities 0 3,325 0 3,325 3,325 Payables to parent and affiliates 0 9 0 9 9 Other liabilities 0 56,513 0 56,513 56,513 Total liabilities $ 0 $ 225,258 $ 34,845 $ 260,103 $ 261,837 December 31, 2022 Fair Value Carrying Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 141,513 $ 141,513 $ 148,179 Policy loans 0 0 212,063 212,063 212,063 Short-term investments 4,000 0 0 4,000 4,000 Cash and cash equivalents 10,465 0 0 10,465 10,465 Accrued investment income 0 25,222 0 25,222 25,222 Reinsurance recoverables 0 0 25,127 25,127 27,183 Receivables from parent and affiliates 0 18,660 0 18,660 18,660 Other assets 0 3,852 0 3,852 3,852 Total assets $ 14,465 $ 47,734 $ 378,703 $ 440,902 $ 449,624 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 180,576 $ 36,746 $ 217,322 $ 219,378 Cash collateral for loaned securities 0 0 0 0 0 Payables to parent and affiliates 0 3,513 0 3,513 3,513 Other liabilities 0 51,312 0 51,312 51,312 Total liabilities $ 0 $ 235,401 $ 36,746 $ 272,147 $ 274,203 (1) Carrying values presented herein differ from those in the Company’s Unaudited Interim Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments. |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs and Deferred Reinsurance (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Deferred Charges, Insurers [Abstract] | |
Deferred Policy Acquisition Costs | The following tables show a rollforward for the lines of business that contain DAC balances, along with a reconciliation to the Company's total DAC balance: March 31, 2023 Term Life Variable / Universal Life Total (in thousands) Balance, beginning of period $ 70,213 $ 281,661 $ 351,874 Capitalization 4,007 10,791 14,798 Amortization expense (1,748) (3,272) (5,020) Other 0 3 3 Balance, end of period $ 72,472 $ 289,183 $ 361,655 March 31, 2022 Term Life Variable / Universal Life Total (in thousands) Balance, beginning of period $ 62,091 $ 246,653 $ 308,744 Capitalization 4,228 13,642 17,870 Amortization expense (1,650) (3,179) (4,829) Other 0 (4) (4) Balance, end of period $ 64,669 $ 257,112 $ 321,781 |
Deferred Reinsurance Losses | The following tables show a rollforward of DRL balances for variable annuity products, which is the only line of business that contains a DRL balance, along with a reconciliation to the Company's total DRL balance: March 31, 2023 Variable Annuities (in thousands) Balance, beginning of period $ 17,425 Amortization expense (378) Balance, end of period $ 17,047 March 31, 2022 Variable Annuities (in thousands) Balance, beginning of period $ 18,977 Amortization expense (395) Balance, end of period $ 18,582 |
Separate Accounts (Tables)
Separate Accounts (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Insurance [Abstract] | |
Separate Account Assets | The aggregate fair value of assets, by major investment asset category, supporting separate accounts is as follows: March 31, 2023 December 31, 2022 (in thousands) Asset Type: Mutual funds: Equity $ 7,642,559 $ 7,430,452 Fixed Income 4,139,655 3,973,001 Other 670,384 611,170 Other invested assets 1,961,083 1,912,335 Total $ 14,413,681 $ 13,926,958 |
Separate Account Liabilities | The balances of and changes in separate account liabilities are as follows: March 31, 2023 Variable Annuities Variable Life Total (in thousands) Balance, beginning of period $ 8,928,568 $ 4,998,390 $ 13,926,958 Deposits 8,431 43,878 52,309 Investment performance 439,099 263,521 702,620 Policy charges (55,991) (25,372) (81,363) Surrenders and withdrawals (194,702) (11,989) (206,691) Benefit payments (1,378) (9,924) (11,302) Net transfers (to) from general account 913 28,189 29,102 Other 397 1,651 2,048 Balance, end of period $ 9,125,337 $ 5,288,344 $ 14,413,681 Cash surrender value(1) $ 8,933,846 $ 5,208,516 $ 14,142,362 (1) Cash surrender value represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. March 31, 2022 Variable Annuities Variable Life Total (in thousands) Balance, beginning of period $ 11,982,322 $ 5,940,046 $ 17,922,368 Deposits 24,269 48,156 72,425 Investment performance (776,250) (296,251) (1,072,501) Policy charges (64,417) (25,566) (89,983) Surrenders and withdrawals (217,281) (6,875) (224,156) Benefit payments (1,219) (13,214) (14,433) Net transfers (to) from general account (2) (12,141) (12,143) Other 270 2,298 2,568 Balance, end of period $ 10,947,692 $ 5,636,453 $ 16,584,145 Cash surrender value(1) $ 10,707,646 $ 5,561,179 $ 16,268,825 (1) Cash surrender value represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. |
Liability For Future Policy B_2
Liability For Future Policy Benefits (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Insurance [Abstract] | |
Liability for Future Policy Benefit | The balances of and changes in Benefit Reserves as of and for the periods indicated consist of the three tables presented below: Present Value of Expected Net Premiums rollforward, Present Value of Expected Future Policy Benefits rollforward, and Net Liability for Future Policy Benefits. March 31, 2023 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 1,416,807 $ 0 $ 1,416,807 Effect of cumulative changes in discount rate assumptions, beginning of period 73,563 0 73,563 Balance at original discount rate, beginning of period 1,490,370 0 1,490,370 Effect of actual variances from expected experience (10,232) (599) (10,831) Adjusted balance, beginning of period 1,480,138 (599) 1,479,539 Issuances 16,867 710 17,577 Net premiums / considerations collected (43,352) (111) (43,463) Interest accrual 17,156 0 17,156 Balance at original discount rate, end of period 1,470,809 0 1,470,809 Effect of cumulative changes in discount rate assumptions, end of period (40,753) 0 (40,753) Balance, end of period $ 1,430,056 $ 0 $ 1,430,056 March 31, 2023 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 2,551,191 $ 16,460 $ 2,567,651 Effect of cumulative changes in discount rate assumptions, beginning of period 137,962 1,899 139,861 Balance at original discount rate, beginning of period 2,689,153 18,359 2,707,512 Effect of actual variances from expected experience and other activity (14,462) 183 (14,279) Adjusted balance, beginning of period 2,674,691 18,542 2,693,233 Issuances 16,867 710 17,577 Interest accrual 32,494 171 32,665 Benefit payments (40,914) (551) (41,465) Other adjustments (372) 0 (372) Balance at original discount rate, end of period 2,682,766 18,872 2,701,638 Effect of cumulative changes in discount rate assumptions, end of period (64,374) (1,536) (65,910) Balance, end of period $ 2,618,392 $ 17,336 $ 2,635,728 March 31, 2023 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, pre-flooring $ 1,188,336 $ 17,336 $ 1,205,672 Flooring impact, end of period 0 0 0 Balance, end of period, post-flooring 1,188,336 17,336 1,205,672 Less: Reinsurance recoverable 1,036,995 17,336 1,054,331 Balance after reinsurance recoverable, end of period, post-flooring $ 151,341 $ 0 $ 151,341 March 31, 2022 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 1,641,933 $ 0 $ 1,641,933 Effect of cumulative changes in discount rate assumptions, beginning of period (253,752) 0 (253,752) Balance at original discount rate, beginning of period 1,388,181 0 1,388,181 Effect of actual variances from expected experience and other activity 3,165 0 3,165 Adjusted balance, beginning of period 1,391,346 0 1,391,346 Issuances 20,680 341 21,021 Net premiums / considerations collected (40,394) (341) (40,735) Interest accrual 16,119 0 16,119 Balance at original discount rate, end of period 1,387,751 0 1,387,751 Effect of cumulative changes in discount rate assumptions, end of period 120,622 0 120,622 Balance, end of period $ 1,508,373 $ 0 $ 1,508,373 March 31, 2022 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 3,041,562 $ 19,314 $ 3,060,876 Effect of cumulative changes in discount rate assumptions, beginning of period (561,455) (1,459) (562,914) Balance at original discount rate, beginning of period 2,480,107 17,855 2,497,962 Effect of actual variances from expected experience (706) 196 (510) Adjusted balance, beginning of period 2,479,401 18,051 2,497,452 Issuances 20,680 341 21,021 Interest accrual 30,217 150 30,367 Benefit payments (35,047) (529) (35,576) Other adjustments (41) (74) (115) Balance at original discount rate, end of period 2,495,210 17,939 2,513,149 Effect of cumulative changes in discount rate assumptions, end of period 285,629 (132) 285,497 Balance, end of period $ 2,780,839 $ 17,807 $ 2,798,646 March 31, 2022 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, pre-flooring $ 1,272,466 $ 17,807 $ 1,290,273 Flooring impact, end of period 6,028 0 6,028 Balance, end of period, post-flooring 1,278,494 17,807 1,296,301 Less: Reinsurance recoverable 1,112,534 17,807 1,130,341 Balance after reinsurance recoverable, end of period, post-flooring $ 165,960 $ 0 $ 165,960 The following tables provide supplemental information related to the balances of and changes in Benefit Reserves included in the disaggregated tables above, on a gross (direct and assumed) basis, as of and for the periods indicated: March 31, 2023 Term Life Fixed Annuities (in thousands) Undiscounted expected future gross premiums $ 3,056,399 $ 0 Discounted expected future gross premiums (at original discount rate) $ 2,057,345 $ 0 Discounted expected future gross premiums (at current discount rate) $ 2,006,982 $ 0 Undiscounted expected future benefits and expenses $ 4,332,537 $ 24,654 Interest accrual $ 15,338 $ 171 Gross premiums $ 61,365 $ 112 Weighted-average duration of the liability in years (at original discount rate) 11 7 Weighted-average duration of the liability in years (at current discount rate) 10 6 Weighted-average interest rate (at original discount rate) 5.31 % 3.61 % Weighted-average interest rate (at current discount rate) 5.07 % 4.98 % March 31, 2022 Term Life Fixed Annuities (in thousands) Undiscounted expected future gross premiums $ 3,307,354 $ 0 Discounted expected future gross premiums (at original discount rate) $ 2,192,982 $ 0 Discounted expected future gross premiums (at current discount rate) $ 2,396,738 $ 0 Undiscounted expected future benefits and expenses $ 4,023,253 $ 23,522 Interest accrual $ 14,098 $ 150 Gross premiums $ 62,991 $ 653 Weighted-average duration of the liability in years (at original discount rate) 10 7 Weighted-average duration of the liability in years (at current discount rate) 11 7 Weighted-average interest rate (at original discount rate) 5.34 % 3.39 % Weighted-average interest rate (at current discount rate) 3.55 % 3.49 % For additional information regarding observable market information and the techniques used to determine the interest rate assumptions seen above, see Note 2. The balances of and changes in Deferred Profit Liability as of and for the periods indicated are as follows: March 31, 2023 March 31, 2022 Fixed Annuities (in thousands) Balance, beginning of period $ 1,684 $ 1,726 Effect of actual variances from expected experience (107) (164) Adjusted balance, beginning of period 1,577 1,562 Profits deferred 0 309 Interest accrual 13 16 Amortization (45) (52) Other adjustments 0 (6) Balance, end of period 1,545 1,829 Less: Reinsurance recoverable 1,545 1,829 Balance after reinsurance recoverable $ 0 $ 0 The following table provides supplemental information related to the balances of and changes in Deferred Profit Liability, included in the disaggregated table above, on a gross (direct and assumed) basis, as of and for the period indicated: March 31, 2023 March 31, 2022 Fixed Annuities (in thousands) Revenue(1) $ 139 $ (103) Interest accrual 13 16 (1) Represents the gross premiums collected in changes in deferred profit liability. The following table shows a rollforward of AIR balances for variable and universal life products, for the periods indicated: March 31, 2023 March 31, 2022 (in thousands) Balance including amounts in AOCI, beginning of period, post-flooring $ 827,478 $ 703,968 Flooring impact and amounts in AOCI 91,115 (71,467) Balance, excluding amounts in AOCI, beginning of period, pre-flooring 918,593 632,501 Effect of actual variances from expected experience and other activity (342) (10,170) Adjusted balance, beginning of period 918,251 622,331 Assessments collected(1) 14,827 39,441 Interest accrual 7,840 5,339 Benefits paid (3,995) (3,284) Balance, excluding amounts in AOCI, end of period, pre-flooring 936,923 663,827 Flooring impact and amounts in AOCI (65,818) 14,281 Balance, including amounts in AOCI, end of period, post-flooring 871,105 678,108 Less: Reinsurance recoverable 834,640 643,583 Balance after reinsurance recoverable, including amounts in AOCI, end of period $ 36,465 $ 34,525 (1) Represents the portion of gross assessments required to fund the future policy benefits. March 31, 2023 March 31, 2022 (in thousands) Interest accrual $ 7,840 $ 5,339 Gross assessments $ 46,941 $ 92,938 Weighted-average duration of the liability in years (at original discount rate) 28 26 Weighted-average interest rate (at original discount rate) 3.42 % 3.33 % March 31, 2023 March 31, 2022 (in thousands) Benefit reserves, end of period, post-flooring $ 1,205,672 $ 1,296,301 Additional insurance reserves, including amounts in AOCI, end of period, post-flooring 871,105 678,108 Deferred profit liability, end of period, post-flooring 1,545 1,829 Subtotal of amounts disclosed above 2,078,322 1,976,238 Other Future policy benefits reserves(1) 149,309 171,407 Total Future policy benefits $ 2,227,631 $ 2,147,645 (1) Represents balances for which disaggregated rollforward disclosures are not required, including unpaid claims and claims expenses, and incurred but not reported and in course of settlement claim liabilities. The following tables present revenue and interest expense related to Benefit Reserves, Additional Insurance Reserves, and Deferred Profit Liability, as well as related revenue and interest expense not presented in the above supplemental tables, in the Company's Statement of Operations for the periods indicated: March 31, 2023 Revenues(1) Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 112 $ 61,365 $ 0 $ 61,477 Additional insurance reserves 0 0 46,941 46,941 Deferred profit liability 139 0 0 139 Total $ 251 $ 61,365 $ 46,941 $ 108,557 March 31, 2022 Revenues(1) Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 653 $ 62,991 $ 0 $ 63,644 Additional insurance reserves 0 0 92,938 92,938 Deferred profit liability (103) 0 0 (103) Total $ 550 $ 62,991 $ 92,938 $ 156,479 (1) Represents "Gross premiums" for benefit reserves; "Gross assessments" for additional insurance reserves; and "Revenue" for deferred profit liability. March 31, 2023 Interest Expense Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 171 $ 15,338 $ 0 $ 15,509 Additional insurance reserves 0 0 7,840 7,840 Deferred profit liability 13 0 0 13 Total $ 184 $ 15,338 $ 7,840 $ 23,362 March 31, 2022 Interest Expense Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 150 $ 14,098 $ 0 $ 14,248 Additional insurance reserves 0 0 5,339 5,339 Deferred profit liability 16 0 0 16 Total $ 166 $ 14,098 $ 5,339 $ 19,603 |
Policyholders' Liabilities (Tab
Policyholders' Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities [Abstract] | |
Policyholder Account Balance | The balance of and changes in policyholders' account balances as of and for the periods ended are as follows: March 31, 2023 Variable Annuities Variable Life / Universal Life Total (in thousands) Balance, beginning of period $ 327,124 $ 2,084,680 $ 2,411,804 Deposits 25,558 57,220 82,778 Interest credited 2,015 13,972 15,987 Policy charges (40) (36,360) (36,400) Surrenders and withdrawals (8,163) (29,361) (37,524) Benefit payments (1,647) (422) (2,069) Net transfers (to) from separate account (913) (28,189) (29,102) Change in market value and other adjustments (131) 10,436 10,305 Balance, end of period 343,803 2,071,976 2,415,779 Reinsurance and other recoverables(1) 319,707 765,282 1,084,989 Policyholders' account balance net of reinsurance and other recoverables $ 24,096 $ 1,306,694 $ 1,330,790 Unearned revenue reserve 328,956 Other 47,556 Total Policyholders' account balances $ 2,792,291 Weighted-average crediting rate 2.40 % 2.69 % 2.65 % Net amount at risk(2) $ 0 $ 33,887,277 $ 33,887,277 Cash surrender value(3) $ 322,593 $ 1,733,643 $ 2,056,236 (1) The amount of recoverables related to reinsurance agreements that reduce the risk of the policyholders’ account balances gross liability. (2) The net amount at risk calculation includes both general and separate account balances. (3) Cash surrender value represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. March 31, 2022 Variable Annuities Variable Life / Universal Life Total (in thousands) Balance, beginning of period $ 344,945 $ 2,052,065 $ 2,397,010 Deposits 298 64,070 64,368 Interest credited 1,564 15,441 17,005 Policy charges (48) (36,141) (36,189) Surrenders and withdrawals (5,197) (34,575) (39,772) Benefit payments (1,257) 365 (892) Net transfers (to) from separate account 2 12,141 12,143 Change in market value and other adjustments 0 (19,553) (19,553) Balance, end of period 340,307 2,053,813 2,394,120 Reinsurance and other recoverables(1) 336,619 738,500 1,075,119 Policyholders' account balance net of reinsurance and other recoverables $ 3,688 $ 1,315,313 $ 1,319,001 Unearned revenue reserve 268,002 Other 50,657 Total Policyholders' account balances $ 2,712,779 Weighted-average crediting rate 1.83 % 3.01 % 2.84 % Net amount at risk(2) $ 0 $ 32,527,594 $ 32,527,594 Cash surrender value(3) $ 319,207 $ 1,700,247 $ 2,019,454 (1) The amount of recoverables related to reinsurance agreements that reduce the risk of the policyholders’ account balances gross liability. (2) The net amount at risk calculation includes both general and separate account balances. (3) Cash surrender value represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. |
Policyholder Account Balance, Guaranteed Minimum Crediting Rate | The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums are as follows: March 31, 2023 Range of Guaranteed Minimum Crediting Rate At guaranteed minimum 1 -50 bps above guaranteed minimum 51 - 150 bps above guaranteed minimum Greater than 150 bps above guaranteed minimum Total (in thousands) Variable Annuities Less than 1.00% $ 1,651 $ 0 $ 0 $ 0 $ 1,651 1.00% - 1.99% 189,516 1,592 0 0 191,108 2.00% - 2.99% 1,784 0 0 0 1,784 3.00% - 4.00% 128,371 116 0 0 128,487 Greater than 4.00% 126 0 0 0 126 Total $ 321,448 $ 1,708 $ 0 $ 0 $ 323,156 Variable and Universal Life Less than 1.00% $ 0 $ 0 $ 0 $ 640 $ 640 1.00% - 1.99% 17,633 0 148,939 290,129 456,701 2.00% - 2.99% 4,463 15,422 317,044 26,632 363,561 3.00% - 4.00% 150,092 343,976 60,552 0 554,620 Greater than 4.00% 376,561 0 0 0 376,561 Total $ 548,749 $ 359,398 $ 526,535 $ 317,401 $ 1,752,083 March 31, 2022 Range of Guaranteed Minimum Crediting Rate At guaranteed minimum 1 - 50 bps above guaranteed minimum 51 - 150 bps above guaranteed minimum Greater than 150 bps above guaranteed minimum Total (in thousands) Variable Annuities Less than 1.00% $ 0 $ 0 $ 0 $ 0 $ 0 1.00% - 1.99% 200,629 1,610 0 0 202,239 2.00% - 2.99% 1,901 0 0 0 1,901 3.00% - 4.00% 139,888 0 0 0 139,888 Greater than 4.00% 122 0 0 0 122 Total $ 342,540 $ 1,610 $ 0 $ 0 $ 344,150 Variable and Universal Life Less than 1.00% $ 1,142 $ 0 $ 0 $ 0 $ 1,142 1.00% - 1.99% 47,280 0 89,655 289,338 426,273 2.00% - 2.99% 671 0 183,982 161,233 345,886 3.00% - 4.00% 140,738 3,741 450,770 0 595,249 Greater than 4.00% 360,973 0 0 0 360,973 Total $ 550,804 $ 3,741 $ 724,407 $ 450,571 $ 1,729,523 |
Additional Liability, Long-Duration Insurance | The balance of the changes in URR are as follows: March 31, 2023 Variable Life / Universal Life (in thousands) Balance, beginning of period $ 313,711 Unearned revenue 19,030 Amortization expense (3,785) Balance, end of period 328,956 Reinsurance recoverables 85,048 Unearned revenue reserve net of reinsurance recoverables $ 243,908 March 31, 2022 Variable Life / Universal Life (in thousands) Balance, beginning of period $ 251,573 Unearned revenue 19,737 Amortization expense (3,308) Balance, end of period 268,002 Reinsurance recoverables 68,241 Unearned revenue reserve net of reinsurance recoverables $ 199,761 |
Market Risk Benefits (Tables)
Market Risk Benefits (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Insurance [Abstract] | |
Market Risk Benefits | The following tables show a rollforward of MRB balances for variable annuity products, along with a reconciliation to the Company’s total net MRB positions as of the following dates: March 31, 2023 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 398,254 $ (398,254) $ 0 Effect of cumulative changes in non-performance risk 163,169 0 163,169 Balance, beginning of period, before effect of changes in non-performance risk 561,423 (398,254) 163,169 Attributed fees collected 27,304 (27,304) 0 Claims paid (1,653) 1,653 0 Interest accrual 7,035 (7,035) 0 Actual in force different from expected 2,229 (2,229) 0 Effect of changes in interest rates 33,851 (33,851) 0 Effect of changes in equity markets (54,966) 54,966 0 Effect of changes in current period counterparty non-performance risk 0 15,728 15,728 Balance, end of period, before effect of changes in non-performance risk 575,223 (396,326) 178,897 Effect of cumulative changes in non-performance risk (178,897) 0 (178,897) Balance, end of period $ 396,326 $ (396,326) $ 0 March 31, 2022 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 796,913 $ (796,913) $ 0 Effect of cumulative changes in non-performance risk 21,123 0 21,123 Balance, beginning of period, before effect of changes in non-performance risk 818,036 (796,913) 21,123 Attributed fees collected 31,799 (31,799) 0 Claims paid (38) 38 0 Interest accrual 549 (549) 0 Actual in force different from expected 2,255 (2,255) 0 Effect of changes in interest rates (204,292) 204,292 0 Effect of changes in equity markets 71,053 (71,053) 0 Effect of changes in current period counterparty non-performance risk 0 86,828 86,828 Balance, end of period, before effect of changes in non-performance risk 719,362 (611,411) 107,951 Effect of cumulative changes in non-performance risk (107,951) 0 (107,951) Balance, end of period $ 611,411 $ (611,411) $ 0 The following table presents accompanying information to the rollforward table above. See Note 9 for information on "Net amount at risk". March 31, 2023 March 31, 2022 Variable Annuities ($ in thousands) Net amount at risk $ 877,211 $ 305,180 Weighted-average attained age of contractholders 68 66 The table below reconciles MRB asset and liability positions as of the following dates: March 31, 2023 March 31, 2022 Variable Annuities (in thousands) Market risk benefit assets $ 562,922 $ 755,053 Market risk benefit liabilities 562,922 755,053 Net liability $ 0 $ 0 |
Reinsurance (Tables)
Reinsurance (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Impact on Statements of Financial Position | Reinsurance amounts included in the Company’s Unaudited Interim Statements of Financial Position as of March 31, 2023 and December 31, 2022 were as follows: March 31, 2023 December 31, 2022 (in thousands) Reinsurance recoverables(1) $ 3,195,287 $ 3,098,248 Policy loans (23,082) (22,999) Deferred policy acquisition costs(1) (637,032) (646,737) Deferred sales inducements(1) (37,515) (38,146) Market risk benefit assets(1) 479,624 478,439 Other assets(1) 42,256 42,265 Market risk benefit liabilities(1) 83,298 80,185 Other liabilities(1) 120,976 115,351 (1) Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Reinsurance Recoverable by Counterparty | Reinsurance recoverables by counterparty are broken out below: March 31, 2023 December 31, 2022 (in thousands) Prudential Insurance(1) $ 480,064 $ 456,633 PAR U(1) 1,611,135 1,575,260 PARCC(1) 464,565 464,142 PAR Term(1) 268,770 258,169 Term Re(1) 252,206 232,796 DART(1) 85,369 73,702 Pruco Life(1) 31,553 34,720 Unaffiliated 1,625 2,826 Total reinsurance recoverables $ 3,195,287 $ 3,098,248 (1) Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Reinsurance Impact on Statements of Operations and Comprehensive Income (Loss) | Reinsurance amounts, included in the Company’s Unaudited Interim Statements of Operations and Comprehensive Income (Loss) for the three months ended March 31, were as follows: Three Months Ended March 31, 2023 2022 (in thousands) Premiums: Direct(1) $ 62,583 $ 63,330 Ceded(1) (52,406) (54,310) Net premiums(1) 10,177 9,020 Policy charges and fee income: Direct(1) 86,513 95,926 Ceded(1)(2) (72,375) (85,331) Net policy charges and fee income(1) 14,138 10,595 Net investment income: Direct 28,886 24,563 Ceded (226) (194) Net investment income 28,660 24,369 Asset administration fees: Direct 8,776 10,502 Ceded (6,696) (8,242) Net asset administration fees 2,080 2,260 Realized investment gains (losses), net: Direct(1) (9,457) 15,227 Ceded(1) 1,159 493 Realized investment gains (losses), net(1) (8,298) 15,720 Change in value of market risk benefits, net of related hedging gain (loss): Direct(1) (13,801) 128,811 Ceded(1) (1,927) (215,639) Net change in value of market risk benefits, net of related hedging gain (loss)(1) (15,728) (86,828) Policyholders’ benefits (including change in reserves): Direct(1) 107,337 128,710 Ceded(1)(3) (88,998) (114,875) Net policyholders’ benefits (including change in reserves)(1) 18,339 13,835 Change in estimates of liability for future policy benefits: Direct(1) (3,917) (13,818) Ceded(1) 2,475 12,641 Net change in estimates of liability for future policy benefits(1) (1,442) (1,177) Interest credited to policyholders’ account balances: Direct(1) 18,022 19,797 Ceded(1) (7,885) (8,603) Net interest credited to policyholders’ account balances 10,137 11,194 Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization(1) (32,950) (37,277) (1) Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. (2) Includes $(1.2) million and $(1.3) million of unaffiliated activity for the three months ended March 31, 2023 and 2022, respectively. |
Gross and Net Life Insurance in Force | The gross and net amounts of life insurance face amount in force as of March 31, 2023 and 2022 were as follows: 2023 2022 (in thousands) Direct gross life insurance face amount in force $ 154,115,666 $ 155,729,264 Reinsurance ceded (139,826,733) (141,264,004) Net life insurance face amount in force $ 14,288,933 $ 14,465,260 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | The balance of and changes in each component of AOCI as of and for the three months ended March 31, 2023 and 2022, are as follows: Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustment Net Unrealized Interest Rate Remeasurement of Future Policy Benefits Gain (loss) from Changes in Non-Performance Risk on Market Risk Benefits Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, December 31, 2022 $ (1,214) $ (176,386) $ 12,504 $ 128,906 $ (36,190) Change in OCI before reclassifications 100 39,128 (6,958) 15,727 47,997 Amounts reclassified from AOCI 0 (361) 0 0 (361) Income tax benefit (expense) (22) (8,139) 1,463 (3,306) (10,004) Balance, March 31, 2023 $ (1,136) $ (145,758) $ 7,009 $ 141,327 $ 1,442 Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustment Net Unrealized Interest Rate Remeasurement of Future Policy Benefits Gain (loss) from Changes in Non-Performance Risk on Market Risk Benefits Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, December 31, 2021 $ (988) $ 121,075 $ (34,788) $ 16,688 $ 101,987 Change in OCI before reclassifications (67) (161,382) 22,482 86,829 (52,138) Amounts reclassified from AOCI 0 1,289 0 0 1,289 Income tax benefit (expense) 16 33,616 (4,722) (18,232) 10,678 Balance, March 31, 2022 $ (1,039) $ (5,402) $ (17,028) $ 85,285 $ 61,816 (1) Includes cash flow hedges of $13 million and $0 million as of March 31, 2023 and December 31, 2022, respectively, and $7 million and $(3) million as of March 31, 2022 and December 31, 2021, respectively . |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of Accumulated Other Comprehensive Income (Loss) Three Months Ended 2023 2022 (in thousands) Amounts reclassified from AOCI(1)(2): Net unrealized investment gains (losses): Cash flow hedges - Currency/Interest rate(3) $ 387 $ 670 Net unrealized investment gains (losses) on available-for-sale securities (26) (1,959) Total net unrealized investment gains (losses)(4) 361 (1,289) Total reclassifications for the period $ 361 $ (1,289) (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) on AFS Fixed Maturity Securities wit Allowance for credit losses and All Other Investments AOCI Rollforward | The amounts for the periods indicated below represent all other net unrealized investment gains (losses), are as follows: Net Unrealized Gains (Losses) on Other Costs(2) Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(3) Income Tax Accumulated Other Comprehensive Balance, December 31, 2022 $ (256,584) $ (83,712) $ 117,070 $ 46,840 $ (176,386) Net investment gains (losses) on investments arising during the period 48,010 0 0 (10,081) 37,929 Reclassification adjustment for (gains) losses included in net income (361) 0 0 76 (285) Impact of net unrealized investment (gains) losses 0 22,817 (31,699) 1,866 (7,016) Balance, March 31, 2023 $ (208,935) $ (60,895) $ 85,371 $ 38,701 $ (145,758) (1) Includes cash flow hedges. See Note 4 for information on cash flow hedges. (2) "Other costs" primarily includes reinsurance recoverables. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Affiliated Notes Receivable | Affiliated notes receivable included in “Receivables from parent and affiliates” at March 31, 2023 and December 31, 2022 were as follows: Maturity Date Interest Rates March 31, 2023 December 31, 2022 (in thousands) U.S. dollar fixed rate notes 2027 0.00% - 14.85 % $ 700 $ 688 Total long-term notes receivable - affiliated(1) $ 700 $ 688 (1) All long-term notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances. |
Affiliated Asset Transfers | The table below shows affiliated asset trades for the three months ended March 31, 2023 and for the year ended December 31, 2022. Affiliate Date Transaction Security Type Fair Value Book Value APIC, Net of Tax Increase/(Decrease) Realized (in thousands) Prudential Insurance August 2022 Purchase Fixed Maturities $ 21,389 $ 19,630 $ (1,390) $ 0 |
Business and Basis of Present_3
Business and Basis of Presentation (Narratives) (Details) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Adoption of ASU 2018-12 for LDTI | Accounting Standards Update 2018-12 [Member] |
Business and Basis of Present_4
Business and Basis of Presentation (Summary Of Adoption Of New Guidance On Unaudited Interim Consolidated Statement For Financial Position) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Jan. 01, 2021 | Dec. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Deferred policy acquisition costs | $ 361,655 | $ 351,874 | [1] | $ 244,218 | |||
Reinsurance recoverables | 3,195,287 | 3,098,248 | [1] | ||||
Income tax assets | 59,075 | 67,615 | [1] | ||||
Market risk benefit assets | 562,922 | 558,624 | |||||
Other assets | 47,984 | 48,391 | [1] | ||||
TOTAL ASSETS | 21,427,006 | 20,596,445 | |||||
Policyholders' account balance | 2,792,291 | 2,774,315 | [1] | $ 2,712,779 | |||
Future policy benefits | 2,227,631 | 2,130,042 | [1] | $ 2,147,645 | |||
Market risk benefit liabilities | 562,922 | 558,624 | |||||
Other liabilities | 196,189 | 172,305 | |||||
Total liabilities | 20,198,113 | 19,569,790 | |||||
Retained earnings | 275,039 | 285,433 | [1] | ||||
Accumulated other comprehensive income (loss) | 1,442 | (36,190) | [1] | ||||
Total equity | 1,228,893 | 1,026,655 | |||||
TOTAL LIABILITIES AND EQUITY | $ 21,427,006 | 20,596,445 | |||||
As Previously Reported | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Deferred policy acquisition costs | 364,494 | $ 224,425 | |||||
Reinsurance recoverables | 3,258,526 | ||||||
Income tax assets | 67,126 | ||||||
Market risk benefit assets | 0 | ||||||
Other assets | 16,207 | ||||||
TOTAL ASSETS | 20,178,046 | ||||||
Policyholders' account balance | 2,763,730 | ||||||
Future policy benefits | 2,303,407 | ||||||
Market risk benefit liabilities | 0 | ||||||
Other liabilities | 147,908 | ||||||
Total liabilities | 19,149,549 | ||||||
Retained earnings | 439,236 | ||||||
Accumulated other comprehensive income (loss) | (188,151) | ||||||
Total equity | 1,028,497 | ||||||
TOTAL LIABILITIES AND EQUITY | 20,178,046 | ||||||
Change of Effect | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Deferred policy acquisition costs | (12,620) | 21,714 | |||||
Reinsurance recoverables | (160,278) | ||||||
Income tax assets | 489 | ||||||
Market risk benefit assets | 558,624 | ||||||
Other assets | 32,184 | ||||||
TOTAL ASSETS | 418,399 | ||||||
Policyholders' account balance | 10,585 | ||||||
Future policy benefits | (173,365) | ||||||
Market risk benefit liabilities | 558,624 | ||||||
Other liabilities | 24,397 | ||||||
Total liabilities | 420,241 | ||||||
Retained earnings | (153,803) | ||||||
Accumulated other comprehensive income (loss) | 151,961 | ||||||
Total equity | $ (2,000) | (1,842) | $ (67,000) | ||||
TOTAL LIABILITIES AND EQUITY | $ 418,399 | ||||||
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Business and Basis of Present_5
Business and Basis of Presentation (Summary Of Adoption Of New Guidance On Unaudited Interim Consolidated Statement of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
REVENUES | |||
Premiums | $ 10,177 | $ 9,020 | [1] |
Policy charges and fee income | 14,138 | 10,595 | [1] |
Realized Investment gains (losses), net | (8,298) | 15,720 | [2] |
Change in value of market risk benefits, net of related hedging gain (loss) | (15,728) | (86,828) | [2] |
TOTAL REVENUES | 32,175 | (26,378) | |
BENEFITS AND EXPENSES | |||
Policyholders' benefits | 18,339 | 13,835 | [1] |
Change in estimates of liability for future policy benefits(1) | (1,442) | (1,177) | |
Amortization of deferred policy acquisition costs | 5,017 | 4,829 | [1] |
General, administrative and other expense | 11,958 | 11,000 | [1] |
TOTAL BENEFITS AND EXPENSES | 44,009 | 39,681 | |
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | (11,834) | (66,059) | |
Income tax expense (benefit) | (1,440) | (19,943) | [1] |
NET INCOME (LOSS) | (10,394) | (46,116) | [2] |
Other comprehensive income (loss), before tax: | |||
Net unrealized investment gains (losses) | 38,767 | (160,093) | [1] |
Interest rate remeasurement of future policy benefits | 22,483 | ||
Gain (loss) from changes in non-performance risk on market risk benefits | 86,828 | ||
Total | 47,636 | (50,849) | |
Less: Income tax expense (benefit) related to other comprehensive income (loss) | 10,004 | (10,678) | [1] |
Other comprehensive income (loss), net of tax | 37,632 | (40,171) | |
Comprehensive income (loss) | $ 27,238 | (86,287) | |
As Previously Reported | |||
REVENUES | |||
Premiums | 10,195 | ||
Policy charges and fee income | 15,721 | ||
Realized Investment gains (losses), net | 16,028 | ||
Change in value of market risk benefits, net of related hedging gain (loss) | 0 | ||
TOTAL REVENUES | 67,059 | ||
BENEFITS AND EXPENSES | |||
Policyholders' benefits | 13,574 | ||
Change in estimates of liability for future policy benefits(1) | 0 | ||
Amortization of deferred policy acquisition costs | 6,192 | ||
General, administrative and other expense | 12,381 | ||
TOTAL BENEFITS AND EXPENSES | 43,341 | ||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | 23,718 | ||
Income tax expense (benefit) | 1,856 | ||
NET INCOME (LOSS) | 21,862 | ||
Other comprehensive income (loss), before tax: | |||
Net unrealized investment gains (losses) | (166,361) | ||
Interest rate remeasurement of future policy benefits | 0 | ||
Gain (loss) from changes in non-performance risk on market risk benefits | 0 | ||
Total | (166,428) | ||
Less: Income tax expense (benefit) related to other comprehensive income (loss) | (34,949) | ||
Other comprehensive income (loss), net of tax | (131,479) | ||
Comprehensive income (loss) | (109,617) | ||
Change of Effect | |||
REVENUES | |||
Premiums | (1,175) | ||
Policy charges and fee income | (5,126) | ||
Realized Investment gains (losses), net | (308) | ||
Change in value of market risk benefits, net of related hedging gain (loss) | (86,828) | ||
TOTAL REVENUES | (93,437) | ||
BENEFITS AND EXPENSES | |||
Policyholders' benefits | 261 | ||
Change in estimates of liability for future policy benefits(1) | (1,177) | ||
Amortization of deferred policy acquisition costs | (1,363) | ||
General, administrative and other expense | (1,381) | ||
TOTAL BENEFITS AND EXPENSES | (3,660) | ||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | (89,777) | ||
Income tax expense (benefit) | (21,799) | ||
NET INCOME (LOSS) | (67,978) | ||
Other comprehensive income (loss), before tax: | |||
Net unrealized investment gains (losses) | 6,268 | ||
Interest rate remeasurement of future policy benefits | 22,483 | ||
Gain (loss) from changes in non-performance risk on market risk benefits | 86,828 | ||
Total | 115,579 | ||
Less: Income tax expense (benefit) related to other comprehensive income (loss) | 24,271 | ||
Other comprehensive income (loss), net of tax | 91,308 | ||
Comprehensive income (loss) | $ 23,330 | ||
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[2]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Business and Basic Presentation
Business and Basic Presentation (Summary Of Adoption Of New Guidance On Unaudited Interim Consolidated Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
NET INCOME (LOSS) | $ (10,394) | $ (46,116) | [1] |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Policy charges and fee income | (1,435) | (13) | [1] |
Realized investment (gains) losses, net | 8,298 | (15,720) | [1] |
Change in value of market risk benefits, net of related hedging (gains) losses | 15,728 | 86,828 | [1] |
Change in: | |||
Future policy benefits and other insurance liabilities | 58,089 | 17,409 | [1] |
Reinsurance recoverables | (19,962) | (24,103) | [1] |
Deferred policy acquisition costs | (9,781) | (13,037) | [1] |
Income taxes | (1,464) | 3,341 | [1] |
Other, net | (31,721) | (33,944) | [1],[2] |
Cash flows from (used in) operating activities | $ 8,211 | (10,901) | |
As Previously Reported | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
NET INCOME (LOSS) | 21,862 | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Policy charges and fee income | (4,892) | ||
Realized investment (gains) losses, net | (16,028) | ||
Change in value of market risk benefits, net of related hedging (gains) losses | 0 | ||
Change in: | |||
Future policy benefits and other insurance liabilities | (873) | ||
Reinsurance recoverables | (37,823) | ||
Deferred policy acquisition costs | (11,678) | ||
Income taxes | 25,140 | ||
Other, net | (1,063) | ||
Cash flows from (used in) operating activities | (10,901) | ||
Change of Effect | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
NET INCOME (LOSS) | (67,978) | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Policy charges and fee income | 4,879 | ||
Realized investment (gains) losses, net | 308 | ||
Change in value of market risk benefits, net of related hedging (gains) losses | 86,828 | ||
Change in: | |||
Future policy benefits and other insurance liabilities | 18,282 | ||
Reinsurance recoverables | 13,720 | ||
Deferred policy acquisition costs | (1,359) | ||
Income taxes | (21,799) | ||
Other, net | (32,881) | ||
Cash flows from (used in) operating activities | $ 0 | ||
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[2]Prior period has been reclassified to conform to the current period presentation. |
Business and Basis of Present_6
Business and Basis of Presentation (Transition Adjustment Roll Forward Of Retained Earnings) (Details) - Retained Earnings $ in Thousands | Jan. 01, 2021 USD ($) |
Retained Earnings Transition Adjustment [Roll Forward] | |
Balance after-tax, after transition | $ 270,639 |
As Previously Reported | |
Retained Earnings Transition Adjustment [Roll Forward] | |
Balance after-tax, prior to transition | 328,450 |
Change of Effect | |
Retained Earnings Transition Adjustment [Roll Forward] | |
Reclassification of market risk benefits non-performance risk to accumulated other comprehensive income | (60,792) |
Change in life contract liabilities | (20,108) |
Other | 7,722 |
Total pre-tax adjustments | (73,178) |
Tax impacts | $ 15,367 |
Business and Basis of Present_7
Business and Basis of Presentation (Transition Adjustment Roll Forward Of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jan. 01, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | ||
Accumulated Other Comprehensive Income Transition Adjustment [Roll Forward] | ||||
Beginning Balance | [1] | $ (36,190) | ||
Ending Balance | 1,442 | |||
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income Transition Adjustment [Roll Forward] | ||||
Beginning Balance | (36,190) | $ 101,987 | ||
Ending Balance | $ 176,078 | 1,442 | $ 61,816 | |
As Previously Reported | ||||
Accumulated Other Comprehensive Income Transition Adjustment [Roll Forward] | ||||
Beginning Balance | (188,151) | |||
As Previously Reported | Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income Transition Adjustment [Roll Forward] | ||||
Beginning Balance | 185,407 | |||
Change of Effect | ||||
Accumulated Other Comprehensive Income Transition Adjustment [Roll Forward] | ||||
Beginning Balance | $ 151,961 | |||
Change of Effect | Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income Transition Adjustment [Roll Forward] | ||||
Interest rate remeasurement of future policy benefits | (57,440) | |||
Reclassification of market risk non-performance risk benefits to accumulated other comprehensive income | 60,792 | |||
Unwinding amounts related to unrealized investment gains and losses | (15,161) | |||
Total pre-tax adjustments | (11,809) | |||
Tax impacts | $ 2,480 | |||
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Business and Basis of Present_8
Business and Basis of Presentation (Schedule of Deferred Policy Acquisition Costs) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | |
Deferred Policy Acquisition Cost [Line Items] | |||||||
Deferred policy acquisition costs | $ 361,655 | $ 351,874 | [1] | $ 244,218 | |||
As Previously Reported | |||||||
Deferred Policy Acquisition Cost [Line Items] | |||||||
Deferred policy acquisition costs | 364,494 | $ 224,425 | |||||
Change of Effect | |||||||
Deferred Policy Acquisition Cost [Line Items] | |||||||
Deferred policy acquisition costs | (12,620) | 21,714 | |||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||||
Other | (1,921) | ||||||
Term Life | |||||||
Deferred Policy Acquisition Cost [Line Items] | |||||||
Deferred policy acquisition costs | 72,472 | 70,213 | $ 64,669 | $ 62,091 | 51,527 | ||
Term Life | As Previously Reported | |||||||
Deferred Policy Acquisition Cost [Line Items] | |||||||
Deferred policy acquisition costs | 51,526 | ||||||
Term Life | Change of Effect | |||||||
Deferred Policy Acquisition Cost [Line Items] | |||||||
Deferred policy acquisition costs | 0 | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||||
Other | 1 | ||||||
Variable and Universal Life | |||||||
Deferred Policy Acquisition Cost [Line Items] | |||||||
Deferred policy acquisition costs | $ 289,183 | $ 281,661 | $ 257,112 | $ 246,653 | 192,691 | ||
Variable and Universal Life | As Previously Reported | |||||||
Deferred Policy Acquisition Cost [Line Items] | |||||||
Deferred policy acquisition costs | $ 172,899 | ||||||
Variable and Universal Life | Change of Effect | |||||||
Deferred Policy Acquisition Cost [Line Items] | |||||||
Deferred policy acquisition costs | 21,714 | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||||
Other | $ (1,922) | ||||||
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Business and Basis of Present_9
Business and Basis of Presentation (Schedule of Deferred Reinsurance) (Details) - Variable Annuities - Deferred Reinsurance Losses - USD ($) $ in Thousands | Jan. 01, 2021 | Dec. 31, 2020 |
Liability for Future Policy Benefit, Activity [Line Items] | ||
Balance | $ 20,632 | |
As Previously Reported | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Balance | $ 15,209 | |
Unwinding amounts related to unrealized investment gains and losses | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||
Cash flow change | 1,187 | |
Effect of change in reserve basis to market risk benefits | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||
Cash flow change | $ 4,236 |
Business and Basis of Presen_10
Business and Basis of Presentation (Liability for Future Policy Benefit-Benefits Reserve) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Less: Reinsurance recoverable | $ 1,054,331 | $ 1,130,341 | ||||
Balance after reinsurance recoverable, end of period, post-flooring | 151,341 | 165,960 | ||||
Benefit Reserves | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | $ 1,065,256 | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Balance | 1,468,516 | |||||
Less: Reinsurance recoverable | 1,282,143 | |||||
Balance after reinsurance recoverable, end of period, post-flooring | 186,373 | |||||
As Previously Reported | Benefit Reserves | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | $ 1,065,913 | |||||
Changes in cash flow assumptions and other activity | Benefit Reserves | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Cash flow change | (657) | |||||
Cumulative changes in discount rate assumptions | Benefit Reserves | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Cash flow change | 403,260 | |||||
Term Life | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | 2,682,766 | $ 2,689,153 | 2,495,210 | $ 2,480,107 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Balance | 2,618,392 | 2,551,191 | 2,780,839 | 3,041,562 | ||
Less: Reinsurance recoverable | 1,036,995 | 1,112,534 | ||||
Balance after reinsurance recoverable, end of period, post-flooring | 151,341 | 165,960 | ||||
Term Life | Benefit Reserves | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | 1,049,475 | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Balance | 1,450,547 | |||||
Less: Reinsurance recoverable | 1,264,199 | |||||
Balance after reinsurance recoverable, end of period, post-flooring | 186,348 | |||||
Term Life | As Previously Reported | Benefit Reserves | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | 1,049,445 | |||||
Term Life | Changes in cash flow assumptions and other activity | Benefit Reserves | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Cash flow change | 30 | |||||
Term Life | Cumulative changes in discount rate assumptions | Benefit Reserves | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Cash flow change | 401,072 | |||||
Fixed Annuities | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | 18,872 | 18,359 | 17,939 | 17,855 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Balance | 17,336 | $ 16,460 | 17,807 | $ 19,314 | ||
Less: Reinsurance recoverable | 17,336 | 17,807 | ||||
Balance after reinsurance recoverable, end of period, post-flooring | $ 0 | $ 0 | ||||
Fixed Annuities | Benefit Reserves | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | 15,781 | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Balance | 17,969 | |||||
Less: Reinsurance recoverable | 17,944 | |||||
Balance after reinsurance recoverable, end of period, post-flooring | 25 | |||||
Fixed Annuities | As Previously Reported | Benefit Reserves | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | $ 16,468 | |||||
Fixed Annuities | Changes in cash flow assumptions and other activity | Benefit Reserves | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Cash flow change | (687) | |||||
Fixed Annuities | Cumulative changes in discount rate assumptions | Benefit Reserves | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Cash flow change | $ 2,188 |
Business and Basis of Presen_11
Business and Basis of Presentation (Liability for Future Policy Benefit-Deferred Profit Liability) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Less: Reinsurance recoverable | $ 1,054,331 | $ 1,130,341 | ||||
Balance after reinsurance recoverable, end of period, post-flooring | 151,341 | 165,960 | ||||
Fixed Annuities | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | 17,336 | $ 16,460 | 17,807 | $ 19,314 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Less: Reinsurance recoverable | 17,336 | 17,807 | ||||
Balance after reinsurance recoverable, end of period, post-flooring | $ 0 | $ 0 | ||||
Deferred Profit Liaibility | Fixed Annuities | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | $ 984 | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Less: Reinsurance recoverable | 984 | |||||
Balance after reinsurance recoverable, end of period, post-flooring | 0 | |||||
Deferred Profit Liaibility | Fixed Annuities | As Previously Reported | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | $ 102 | |||||
Deferred Profit Liaibility | Fixed Annuities | Changes in benefit reserves | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Changes in benefit reserves | $ 882 |
Business and Basis of Presen_12
Business and Basis of Presentation (Additional Insurance Reserves) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 | Jan. 01, 2021 | Dec. 31, 2020 |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Less: Reinsurance recoverable | $ 1,054,331 | $ 1,130,341 | ||
Balance after reinsurance recoverable, end of period, post-flooring | $ 151,341 | $ 165,960 | ||
Additional insurance reserves | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance | $ 642,514 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance prior to transition, excluding amounts related to unrealized investment gains and losses | 547,183 | |||
Liability For Future Policy Benefit, Expected Future Policy Benefit, Before Reinsurance, After Discount Rate Change, Excluding Amounts Related To Unrealized Investment Gains And Losses | 547,183 | |||
Amounts related to unrealized investment gains and losses after transition | 95,331 | |||
Less: Reinsurance recoverable | 613,009 | |||
Balance after reinsurance recoverable, end of period, post-flooring | 29,505 | |||
Additional insurance reserves | As Previously Reported | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance | $ 538,245 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance prior to transition, excluding amounts related to unrealized investment gains and losses | 427,192 | |||
Liability For Future Policy Benefit, Expected Future Policy Benefit, Before Reinsurance, After Discount Rate Change, Excluding Amounts Related To Unrealized Investment Gains And Losses | 427,192 | |||
Additional insurance reserves | Unwinding amounts related to unrealized investment gains and losses | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Cash flow change | (111,053) | |||
Additional insurance reserves | Reclassification of future policy benefits additional insurance reserves to market risk benefits | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Cash flow change | (22,735) | |||
Additional insurance reserves | Updates to certain universal life contract liabilities | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Cash flow change | 142,726 | |||
Additional insurance reserves | Variable and Universal Life | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance | 642,514 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance prior to transition, excluding amounts related to unrealized investment gains and losses | 547,183 | |||
Liability For Future Policy Benefit, Expected Future Policy Benefit, Before Reinsurance, After Discount Rate Change, Excluding Amounts Related To Unrealized Investment Gains And Losses | 547,183 | |||
Amounts related to unrealized investment gains and losses after transition | 95,331 | |||
Less: Reinsurance recoverable | 613,009 | |||
Balance after reinsurance recoverable, end of period, post-flooring | 29,505 | |||
Additional insurance reserves | Variable and Universal Life | As Previously Reported | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance | 513,812 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance prior to transition, excluding amounts related to unrealized investment gains and losses | 404,457 | |||
Liability For Future Policy Benefit, Expected Future Policy Benefit, Before Reinsurance, After Discount Rate Change, Excluding Amounts Related To Unrealized Investment Gains And Losses | 404,457 | |||
Additional insurance reserves | Variable and Universal Life | Unwinding amounts related to unrealized investment gains and losses | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Cash flow change | (109,355) | |||
Additional insurance reserves | Variable and Universal Life | Reclassification of future policy benefits additional insurance reserves to market risk benefits | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Cash flow change | 0 | |||
Additional insurance reserves | Variable and Universal Life | Updates to certain universal life contract liabilities | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Cash flow change | 142,726 | |||
Additional insurance reserves | Variable Annuities | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance | 0 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance prior to transition, excluding amounts related to unrealized investment gains and losses | 0 | |||
Liability For Future Policy Benefit, Expected Future Policy Benefit, Before Reinsurance, After Discount Rate Change, Excluding Amounts Related To Unrealized Investment Gains And Losses | 0 | |||
Amounts related to unrealized investment gains and losses after transition | 0 | |||
Less: Reinsurance recoverable | 0 | |||
Balance after reinsurance recoverable, end of period, post-flooring | 0 | |||
Additional insurance reserves | Variable Annuities | As Previously Reported | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Balance | $ 24,433 | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance prior to transition, excluding amounts related to unrealized investment gains and losses | 22,735 | |||
Liability For Future Policy Benefit, Expected Future Policy Benefit, Before Reinsurance, After Discount Rate Change, Excluding Amounts Related To Unrealized Investment Gains And Losses | 22,735 | |||
Additional insurance reserves | Variable Annuities | Unwinding amounts related to unrealized investment gains and losses | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Cash flow change | (1,698) | |||
Additional insurance reserves | Variable Annuities | Reclassification of future policy benefits additional insurance reserves to market risk benefits | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Cash flow change | (22,735) | |||
Additional insurance reserves | Variable Annuities | Updates to certain universal life contract liabilities | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Cash flow change | $ 0 |
Business and Basis of Presen_13
Business and Basis of Presentation (Unearned Revenue Reserves) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Balance | $ 871,105 | $ 827,478 | $ 678,108 | $ 703,968 | ||
Unwinding amounts related to unrealized investment gains and losses and other activity | (342) | (10,170) | ||||
Reinsurance recoverables | 834,640 | 643,583 | ||||
Additional Liability, Long-Duration Insurance, after Reinsurance | 36,465 | 34,525 | ||||
Variable and Universal Life | Policyholder Contract Deposit | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Balance | $ 313,711 | $ 251,573 | $ 186,583 | |||
Reinsurance recoverables | 85,048 | 68,241 | 45,019 | |||
Additional Liability, Long-Duration Insurance, after Reinsurance | $ 243,908 | $ 199,761 | 141,564 | |||
Variable and Universal Life | As Previously Reported | Policyholder Contract Deposit | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Balance | $ 94,480 | |||||
Variable and Universal Life | Changes in benefit reserves | Policyholder Contract Deposit | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Unwinding amounts related to unrealized investment gains and losses and other activity | $ 92,103 |
Business and Basis of Presen_14
Business and Basis of Presentation (Market Risk Benefit, Activity) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
Variable Annuities | ||||||
Market Risk Benefit [Roll Forward] | ||||||
Net liability | $ 0 | $ 398,254 | $ 0 | $ 796,913 | $ 0 | $ 1,195,470 |
Variable Annuities | As Previously Reported | ||||||
Market Risk Benefit [Roll Forward] | ||||||
Net liability | 1,218,205 | |||||
Variable Annuities | Additional insurance reserves to be reclassed to market risk benefits, prior to transition, excluding amounts related to unrealized investment gains and losses | ||||||
Market Risk Benefit [Roll Forward] | ||||||
Net liability | 22,735 | |||||
Variable Annuities | Change in reserve basis to market risk benefits framework | ||||||
Market Risk Benefit [Roll Forward] | ||||||
Net liability | (12,634) | |||||
Variable Annuities | Market risk benefits after transition, at current non-performance risk value | ||||||
Market Risk Benefit [Roll Forward] | ||||||
Net liability | 1,205,571 | |||||
Variable Annuities | Less: Reinsured market risk benefits | ||||||
Market Risk Benefit [Roll Forward] | ||||||
Net liability | 1,205,571 | |||||
Variable Annuities | Cumulative change in non-performance risk | ||||||
Market Risk Benefit [Roll Forward] | ||||||
Net liability | 60,792 | |||||
Individual Variable | Market risk benefits after transition, at current non-performance risk value | Retirement Strategies | ||||||
Market Risk Benefit [Roll Forward] | ||||||
Net liability | 1,205,571 | |||||
Individual Variable | Market risk benefits after transition, at contract inception non-performance risk value | Retirement Strategies | ||||||
Market Risk Benefit [Roll Forward] | ||||||
Net liability | $ 1,266,363 |
Business and Basis of Presen_15
Business and Basis of Presentation (Cost Of Reinsurance) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | $ 871,105 | $ 827,478 | $ 678,108 | $ 703,968 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Unwinding amounts related to unrealized investment gains and losses and other activity | $ (342) | $ (10,170) | ||||
Reinsurance recoverables | 834,640 | 643,583 | ||||
Balance after transition | $ 36,465 | $ 34,525 | ||||
Variable and Universal Life | Other liabilities | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | $ 65,201 | |||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Reinsurance recoverables | 27,620 | |||||
Balance after transition | 92,821 | |||||
Variable and Universal Life | As Previously Reported | Other liabilities | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | $ 85,773 | |||||
Variable and Universal Life | Unwinding amounts related to unrealized investment gains and losses | Other liabilities | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Unwinding amounts related to unrealized investment gains and losses and other activity | (34,617) | |||||
Variable and Universal Life | Balance prior to transition, excluding amounts related to unrealized investment gains and losses | Other liabilities | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Balance | 51,156 | |||||
Variable and Universal Life | Impact from updates to certain universal life contract liabilities | Other liabilities | ||||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Unwinding amounts related to unrealized investment gains and losses and other activity | $ 14,045 |
Significant Accounting Polici_3
Significant Accounting Policies and Pronouncements (Narratives) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Jan. 01, 2021 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total equity | $ 1,228,893 | $ 1,026,655 | ||
Change of Effect | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total equity | $ (2,000) | $ (1,842) | $ (67,000) |
Investments (Fixed Maturities S
Investments (Fixed Maturities Securities Excluding Investments Classified as Trading) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 2,329,822 | $ 1,990,718 |
Allowance for Credit Loss | 3 | 363 |
Fair Value | 2,108,183 | 1,719,488 |
Fixed maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,329,822 | 1,990,718 |
Gross Unrealized Gains | 11,102 | 3,421 |
Gross Unrealized Losses | 232,738 | 274,288 |
Allowance for Credit Loss | 3 | 363 |
Fair Value | 2,108,183 | 1,719,488 |
Fixed maturities | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 52,350 | 62,210 |
Gross Unrealized Gains | 530 | 0 |
Gross Unrealized Losses | 216 | 1,074 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 52,664 | 61,136 |
Fixed maturities | Obligations of U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 182,985 | 165,109 |
Gross Unrealized Gains | 700 | 421 |
Gross Unrealized Losses | 3,779 | 6,315 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 179,906 | 159,215 |
Fixed maturities | Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 94,250 | 87,853 |
Gross Unrealized Gains | 50 | 1 |
Gross Unrealized Losses | 14,977 | 15,891 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 79,323 | 71,963 |
Fixed maturities | U.S. public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,348,104 | 1,062,342 |
Gross Unrealized Gains | 7,322 | 1,943 |
Gross Unrealized Losses | 152,907 | 180,880 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 1,202,519 | 883,405 |
Fixed maturities | U.S. private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 195,195 | 186,123 |
Gross Unrealized Gains | 781 | 141 |
Gross Unrealized Losses | 10,532 | 13,465 |
Allowance for Credit Loss | 0 | 358 |
Fair Value | 185,444 | 172,441 |
Fixed maturities | Foreign public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 167,603 | 138,717 |
Gross Unrealized Gains | 381 | 28 |
Gross Unrealized Losses | 22,925 | 25,783 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 145,059 | 112,962 |
Fixed maturities | Foreign private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 136,113 | 133,074 |
Gross Unrealized Gains | 983 | 523 |
Gross Unrealized Losses | 18,377 | 21,562 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 118,719 | 112,035 |
Fixed maturities | Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 17,731 | 18,358 |
Gross Unrealized Gains | 242 | 272 |
Gross Unrealized Losses | 208 | 256 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 17,765 | 18,374 |
Fixed maturities | Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 123,021 | 124,486 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 8,555 | 8,595 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 114,466 | 115,891 |
Fixed maturities | Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 12,470 | 12,446 |
Gross Unrealized Gains | 113 | 92 |
Gross Unrealized Losses | 262 | 467 |
Allowance for Credit Loss | 3 | 5 |
Fair Value | $ 12,318 | $ 12,066 |
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 | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | $ 525,312 | $ 1,334,484 |
Less than Twelve Months, Gross Unrealized Losses | 21,731 | 169,290 |
Twelve Months or More, Fair Value | 1,153,012 | 270,371 |
Twelve Months or More, Gross Unrealized Losses | 211,007 | 104,998 |
Total, Fair Value | 1,678,324 | 1,604,855 |
Total, Gross Unrealized Losses | 232,738 | 274,288 |
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 | 61,136 |
Less than Twelve Months, Gross Unrealized Losses | 0 | 1,074 |
Twelve Months or More, Fair Value | 2,025 | 0 |
Twelve Months or More, Gross Unrealized Losses | 216 | 0 |
Total, Fair Value | 2,025 | 61,136 |
Total, Gross Unrealized Losses | 216 | 1,074 |
Obligations of U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 91,811 | 113,693 |
Less than Twelve Months, Gross Unrealized Losses | 1,768 | 6,315 |
Twelve Months or More, Fair Value | 23,724 | 0 |
Twelve Months or More, Gross Unrealized Losses | 2,011 | 0 |
Total, Fair Value | 115,535 | 113,693 |
Total, Gross Unrealized Losses | 3,779 | 6,315 |
Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 20,990 | 46,826 |
Less than Twelve Months, Gross Unrealized Losses | 888 | 5,741 |
Twelve Months or More, Fair Value | 56,267 | 24,746 |
Twelve Months or More, Gross Unrealized Losses | 14,089 | 10,150 |
Total, Fair Value | 77,257 | 71,572 |
Total, Gross Unrealized Losses | 14,977 | 15,891 |
U.S. public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 294,009 | 704,906 |
Less than Twelve Months, Gross Unrealized Losses | 13,374 | 111,763 |
Twelve Months or More, Fair Value | 682,776 | 155,138 |
Twelve Months or More, Gross Unrealized Losses | 139,533 | 69,117 |
Total, Fair Value | 976,785 | 860,044 |
Total, Gross Unrealized Losses | 152,907 | 180,880 |
U.S. private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 42,180 | 149,670 |
Less than Twelve Months, Gross Unrealized Losses | 909 | 11,857 |
Twelve Months or More, Fair Value | 110,537 | 9,273 |
Twelve Months or More, Gross Unrealized Losses | 9,623 | 1,608 |
Total, Fair Value | 152,717 | 158,943 |
Total, Gross Unrealized Losses | 10,532 | 13,465 |
Foreign public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 25,478 | 69,310 |
Less than Twelve Months, Gross Unrealized Losses | 1,167 | 11,016 |
Twelve Months or More, Fair Value | 97,851 | 38,996 |
Twelve Months or More, Gross Unrealized Losses | 21,758 | 14,767 |
Total, Fair Value | 123,329 | 108,306 |
Total, Gross Unrealized Losses | 22,925 | 25,783 |
Foreign private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 9,224 | 62,044 |
Less than Twelve Months, Gross Unrealized Losses | 233 | 12,499 |
Twelve Months or More, Fair Value | 87,892 | 33,858 |
Twelve Months or More, Gross Unrealized Losses | 18,144 | 9,063 |
Total, Fair Value | 97,116 | 95,902 |
Total, Gross Unrealized Losses | 18,377 | 21,562 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 1,237 | 5,570 |
Less than Twelve Months, Gross Unrealized Losses | 20 | 160 |
Twelve Months or More, Fair Value | 7,233 | 3,289 |
Twelve Months or More, Gross Unrealized Losses | 188 | 96 |
Total, Fair Value | 8,470 | 8,859 |
Total, Gross Unrealized Losses | 208 | 256 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 30,033 | 110,820 |
Less than Twelve Months, Gross Unrealized Losses | 3,122 | 8,398 |
Twelve Months or More, Fair Value | 84,434 | 5,071 |
Twelve Months or More, Gross Unrealized Losses | 5,433 | 197 |
Total, Fair Value | 114,467 | 115,891 |
Total, Gross Unrealized Losses | 8,555 | 8,595 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 10,350 | 10,509 |
Less than Twelve Months, Gross Unrealized Losses | 250 | 467 |
Twelve Months or More, Fair Value | 273 | 0 |
Twelve Months or More, Gross Unrealized Losses | 12 | 0 |
Total, Fair Value | 10,623 | 10,509 |
Total, Gross Unrealized Losses | $ 262 | $ 467 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Schedule of Investments [Line Items] | |||
Loans acquired | $ 0 | $ 0 | |
Loans sold | 0 | 0 | |
Fixed Maturities purchased with Credit Deterioration | 0 | $ 0 | |
Accrued Investment Income Write Down | 0 | 0 | |
Allowance for credit losses for fixed maturity securities | 0 | ||
Securities Sold under Agreements to Repurchase | 0 | 0 | |
Commercial mortgage and others loans Purchased with Credit Deterioration | $ 0 | $ 0 | |
Commercial mortgage loans, Percentage | 100% | 100% | |
Fixed maturities | |||
Schedule of Investments [Line Items] | |||
Gross unrealized losses of twelve months or more concentrated in various sectors | $ 211,000 | $ 105,000 | |
Fixed maturities | |||
Schedule of Investments [Line Items] | |||
Gross Unrealized Loss | 232,738 | 274,288 | |
Gross unrealized losses of twelve months or more concentrated in various sectors | 211,007 | 104,998 | |
Other Income | Fixed maturities | Trading | |||
Schedule of Investments [Line Items] | |||
Unrealized Gain (Loss) on Investments | 600 | (1,800) | |
Other Income | Equity securities | |||
Schedule of Investments [Line Items] | |||
Unrealized Gain (Loss) on Investments | $ 0 | $ (500) | |
New Jersey | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, Percentage | 13% | ||
Florida | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, Percentage | 11% | ||
New York | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, Percentage | 9% | ||
Europe | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, Percentage | 3% | ||
Mexico | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, Percentage | 2% | ||
NAIC High or Highest Quality Rating | Fixed maturities | |||
Schedule of Investments [Line Items] | |||
Gross Unrealized Loss | $ 228,400 | 269,600 | |
NAIC Other Than High or Highest Quality Rating | Fixed maturities | |||
Schedule of Investments [Line Items] | |||
Gross Unrealized Loss | $ 4,300 | $ 4,700 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturities) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due in one year or less | $ 81,580 | |
Due after one year through five years | 250,358 | |
Due after five years through ten years | 154,199 | |
Due after ten years | 1,690,463 | |
Amortized Cost | 2,329,822 | $ 1,990,718 |
Fair value | ||
Due in one year or less | 78,489 | |
Due after one year through five years | 235,884 | |
Due after five years through ten years | 149,387 | |
Due after ten years | 1,499,874 | |
Fair Value | 2,108,183 | $ 1,719,488 |
Asset-backed securities | ||
Amortized Cost | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 17,731 | |
Fair value | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 17,765 | |
Commercial mortgage-backed securities | ||
Amortized Cost | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 123,021 | |
Fair value | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 114,466 | |
Residential mortgage-backed securities | ||
Amortized Cost | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 12,470 | |
Fair value | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | $ 12,318 |
Investments (Fixed Maturities_2
Investments (Fixed Maturities Securities Proceeds) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Debt Securities, Available-for-sale [Line Items] | ||
Proceeds from maturities/prepayments | $ 33,170 | $ 38,502 |
Fixed maturities | Available-for-sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Proceeds from sales | 886 | 20,241 |
Proceeds from maturities/prepayments | 32,121 | 18,233 |
Gross investment gains from sales and maturities | 29 | 2 |
Gross investment losses from sales and maturities | (415) | (1,961) |
(Addition to) release of allowance for credit losses | 360 | 0 |
Noncash or Part Noncash Divestiture, Amount of Consideration Received | $ (200) | $ 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 $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |
Balance, beginning of period | $ 363 |
Reductions for securities sold during the period | (359) |
Addition (reductions) on securities with previous allowance | (1) |
Balance, end of period | 3 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | |
Debt Securities, Available-for-sale [Line Items] | |
Balance, beginning of period | 0 |
Reductions for securities sold during the period | 0 |
Addition (reductions) on securities with previous allowance | 0 |
Balance, end of period | 0 |
Foreign government bonds | |
Debt Securities, Available-for-sale [Line Items] | |
Balance, beginning of period | 0 |
Reductions for securities sold during the period | 0 |
Addition (reductions) on securities with previous allowance | 0 |
Balance, end of period | 0 |
U.S. and Foreign Corporate Securities | |
Debt Securities, Available-for-sale [Line Items] | |
Balance, beginning of period | 358 |
Reductions for securities sold during the period | (358) |
Addition (reductions) on securities with previous allowance | 0 |
Balance, end of period | 0 |
Asset-backed securities | |
Debt Securities, Available-for-sale [Line Items] | |
Balance, beginning of period | 0 |
Reductions for securities sold during the period | 0 |
Addition (reductions) on securities with previous allowance | 0 |
Balance, end of period | 0 |
Commercial mortgage-backed securities | |
Debt Securities, Available-for-sale [Line Items] | |
Balance, beginning of period | 0 |
Reductions for securities sold during the period | 0 |
Addition (reductions) on securities with previous allowance | 0 |
Balance, end of period | 0 |
Residential mortgage-backed securities | |
Debt Securities, Available-for-sale [Line Items] | |
Balance, beginning of period | 5 |
Reductions for securities sold during the period | (1) |
Addition (reductions) on securities with previous allowance | (1) |
Balance, end of period | $ 3 |
Investments (Commercial Mortgag
Investments (Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 160,251 | $ 148,587 |
Commercial mortgage loans, Percentage | 100% | 100% |
Allowance for Credit Losses | $ (499) | $ (408) |
Total net commercial mortgage and other loans | 159,752 | 148,179 |
Apartments and multi-family | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 62,244 | $ 62,434 |
Commercial mortgage loans, Percentage | 38.80% | 42% |
Hospitality | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 12,849 | $ 12,996 |
Commercial mortgage loans, Percentage | 8% | 8.70% |
Industrial | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 31,627 | $ 17,132 |
Commercial mortgage loans, Percentage | 19.70% | 11.50% |
Office | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 8,188 | $ 10,568 |
Commercial mortgage loans, Percentage | 5.10% | 7.10% |
Other | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 7,796 | $ 7,767 |
Commercial mortgage loans, Percentage | 4.90% | 5.20% |
Retail | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 22,021 | $ 22,123 |
Commercial mortgage loans, Percentage | 13.80% | 14.90% |
Commercial mortgage loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 144,725 | $ 133,020 |
Commercial mortgage loans, Percentage | 90.30% | 89.40% |
Agricultural property loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 15,526 | $ 15,567 |
Commercial mortgage loans, Percentage | 9.70% | 10.60% |
Investments (Allowance for Cred
Investments (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of period | $ 408 | $ 246 |
Addition to (release of) allowance for expected losses | 91 | (15) |
Total ending balance | 499 | 231 |
Commercial mortgage loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of period | 405 | 246 |
Addition to (release of) allowance for expected losses | 38 | (16) |
Total ending balance | 443 | 230 |
Agricultural property loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of period | 3 | 0 |
Addition to (release of) allowance for expected losses | 53 | 1 |
Total ending balance | $ 56 | $ 1 |
Investments (Credit Quality Ind
Investments (Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 160,251 | $ 148,587 |
Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 14,509 | 35,000 |
One Year Prior | 34,978 | 2,754 |
Two Year Prior | 2,749 | 2,198 |
Three Year Prior | 2,198 | 32,830 |
Four Year Prior | 32,838 | 1,387 |
Prior | 57,453 | 58,851 |
Recording investment gross of allowance for credit losses | 144,725 | 133,020 |
Commercial mortgage loans | ≥ 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 14,509 | 35,000 |
One Year Prior | 34,978 | 2,754 |
Two Year Prior | 2,749 | 2,198 |
Three Year Prior | 2,198 | 27,697 |
Four Year Prior | 27,743 | 1,387 |
Prior | 39,083 | 40,285 |
Recording investment gross of allowance for credit losses | 121,260 | 109,321 |
Commercial mortgage loans | 1.0X to 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 8,735 | 8,809 |
Recording investment gross of allowance for credit losses | 8,735 | 8,809 |
Commercial mortgage loans | Less than 1.0X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 5,133 |
Four Year Prior | 5,095 | 0 |
Prior | 9,635 | 9,757 |
Recording investment gross of allowance for credit losses | 14,730 | 14,890 |
Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 13,423 |
One Year Prior | 13,413 | 1,092 |
Two Year Prior | 1,080 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 1,033 | 1,052 |
Recording investment gross of allowance for credit losses | 15,526 | 15,567 |
Agricultural property loans | ≥ 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 13,423 |
One Year Prior | 13,413 | 1,092 |
Two Year Prior | 1,080 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 1,033 | 1,052 |
Recording investment gross of allowance for credit losses | 15,526 | 15,567 |
Agricultural property loans | 1.0X to 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 0 | 0 |
Recording investment gross of allowance for credit losses | 0 | 0 |
Agricultural property loans | Less than 1.0X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 0 | 0 |
Recording investment gross of allowance for credit losses | 0 | 0 |
0% to 59.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 20,000 |
One Year Prior | 19,978 | 792 |
Two Year Prior | 787 | 0 |
Three Year Prior | 0 | 9,993 |
Four Year Prior | 10,030 | 1,387 |
Prior | 47,468 | 48,812 |
Recording investment gross of allowance for credit losses | 78,263 | 80,984 |
0% to 59.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 1,078 |
One Year Prior | 1,068 | 1,092 |
Two Year Prior | 1,080 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 1,033 | 1,052 |
Recording investment gross of allowance for credit losses | 3,181 | 3,222 |
60% to 69.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 15,000 |
One Year Prior | 15,000 | 1,615 |
Two Year Prior | 1,615 | 2,198 |
Three Year Prior | 2,198 | 18,982 |
Four Year Prior | 18,953 | 0 |
Prior | 1,016 | 1,016 |
Recording investment gross of allowance for credit losses | 38,782 | 38,811 |
60% to 69.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 12,345 |
One Year Prior | 12,345 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 0 | 0 |
Recording investment gross of allowance for credit losses | 12,345 | 12,345 |
70% to 79.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 14,509 | 0 |
One Year Prior | 0 | 347 |
Two Year Prior | 347 | 0 |
Three Year Prior | 0 | 3,855 |
Four Year Prior | 3,855 | 0 |
Prior | 7,175 | 7,213 |
Recording investment gross of allowance for credit losses | 25,886 | 11,415 |
70% to 79.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 0 | 0 |
Recording investment gross of allowance for credit losses | 0 | 0 |
80% or greater | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 1,794 | 1,810 |
Recording investment gross of allowance for credit losses | 1,794 | 1,810 |
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 | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Status | $ 0 | $ 0 |
Recording investment gross of allowance for credit losses | 160,251 | 148,587 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 160,251 | 148,587 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
90 Days or More Past Due | Commercial mortgage and other loans | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Interest | 0 | 0 |
Commercial mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Status | 0 | 0 |
Recording investment gross of allowance for credit losses | 144,725 | 133,020 |
Commercial mortgage loans | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 144,725 | 133,020 |
Commercial mortgage loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Commercial mortgage loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Commercial mortgage loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Agricultural Loan | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Status | 0 | 0 |
Recording investment gross of allowance for credit losses | 15,526 | 15,567 |
Agricultural Loan | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 15,526 | 15,567 |
Agricultural Loan | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Agricultural Loan | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Agricultural Loan | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 0 | $ 0 |
Investments (Other Invested Ass
Investments (Other Invested Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Other Invested Assets [Line Items] | ||
Other invested assets | $ 133,763 | $ 129,528 |
LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 133,763 | 129,528 |
Equity method | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 131,528 | 127,139 |
Equity method | Private equity | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 78,320 | 74,468 |
Equity method | Hedge funds | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 43,407 | 42,472 |
Equity method | Real estate-related | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 9,801 | 10,199 |
Fair Value | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 2,235 | 2,389 |
Fair Value | Private equity | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 256 | 279 |
Fair Value | Hedge funds | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 44 | 55 |
Fair Value | Real estate-related | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | $ 1,935 | $ 2,055 |
Investments (Accrued Investment
Investments (Accrued Investment Income) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Net Investment Income [Line Items] | ||
Accrued investment income | $ 31,064 | $ 25,222 |
Equity securities | ||
Net Investment Income [Line Items] | ||
Accrued investment income | 92 | 1 |
Commercial mortgage and other loans | ||
Net Investment Income [Line Items] | ||
Accrued investment income | 455 | 352 |
Policy loans | ||
Net Investment Income [Line Items] | ||
Accrued investment income | 5,745 | 5,612 |
Short-term investments and cash equivalents | ||
Net Investment Income [Line Items] | ||
Accrued investment income | 691 | 604 |
Available-for-sale | Fixed maturities | ||
Net Investment Income [Line Items] | ||
Accrued investment income | $ 24,081 | $ 18,653 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | $ 29,688 | $ 25,404 |
Less: investment expenses | (1,028) | (1,035) |
Net investment income | 28,660 | 24,369 |
Equity securities | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | 91 | 91 |
Commercial mortgage and other loans | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | 1,679 | 1,082 |
Policy loans | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | 2,525 | 2,772 |
Other invested assets | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | 1,478 | 4,000 |
Short-term investments and cash equivalents | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | 2,641 | 60 |
Available-for-sale | Fixed maturities | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | 21,117 | 17,125 |
Trading | Fixed maturities | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | $ 157 | $ 274 |
Investments (Realized Investmen
Investments (Realized Investment Gains Losses, Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Schedule Of Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | $ (8,298) | $ 15,720 | [1] |
Fixed maturities | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | (26) | (1,959) | |
Commercial mortgage and other loans | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | (91) | 15 | |
Other invested assets | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | 0 | (51) | |
Derivatives | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | (8,241) | 17,727 | |
Short-term investments and cash equivalents | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | $ 60 | $ (12) | |
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Investments (Net Unrealized Gai
Investments (Net Unrealized Gains Losses on Investments by Asset Class) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | $ (208,935) | $ (256,584) |
Fixed maturities | Available-for-sale | Without an allowance | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | (221,636) | (270,867) |
Derivatives designated as cash flow hedges | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 12,513 | 14,102 |
Affiliated notes | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 61 | 59 |
Other investments | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | $ 127 | $ 122 |
Investments (Repurchase Agreeme
Investments (Repurchase Agreements and Securities Lending) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | $ 3,325 | $ 0 |
Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 3,325 | 0 |
Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 0 |
U.S. public corporate securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 3,325 | 0 |
U.S. public corporate securities | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 3,325 | 0 |
U.S. public corporate securities | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | $ 0 | $ 0 |
Derivatives and Hedging (Gross
Derivatives and Hedging (Gross Notional Amount and Fair Value of Derivatives Contracts) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Gross Notional | $ 694,294 | $ 687,970 |
Assets | 17,630 | 17,796 |
Liabilities | (19,695) | (21,829) |
Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Gross Notional | 121,573 | 117,015 |
Assets | 12,726 | 14,281 |
Liabilities | (716) | (516) |
Derivatives Designated as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Gross Notional | 121,573 | 117,015 |
Assets | 12,726 | 14,281 |
Liabilities | (716) | (516) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Gross Notional | 572,721 | 570,955 |
Assets | 4,904 | 3,515 |
Liabilities | (18,979) | (21,313) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Gross Notional | 24,035 | 24,035 |
Assets | 2,535 | 2,957 |
Liabilities | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Gross Notional | 30,200 | 30,200 |
Assets | 169 | 0 |
Liabilities | (348) | (383) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Default Swaps | ||
Derivative [Line Items] | ||
Gross Notional | 0 | 0 |
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Forwards | ||
Derivative [Line Items] | ||
Gross Notional | 8,336 | 7,520 |
Assets | 1 | 3 |
Liabilities | (125) | (368) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Options | ||
Derivative [Line Items] | ||
Gross Notional | 510,150 | 509,200 |
Assets | 2,199 | 555 |
Liabilities | $ (18,506) | $ (20,562) |
Derivatives and Hedging (Offset
Derivatives and Hedging (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Derivatives | ||
Gross Amounts of Recognized Financial Instruments | $ 17,630 | $ 17,796 |
Gross Amounts Offset in the Statements of Financial Position | (17,630) | (17,796) |
Net Amounts Presented in the Statements of Financial Position | 0 | 0 |
Financial Instruments/Collateral | 0 | 0 |
Net Amount | 0 | 0 |
Securities purchased under agreements to resell | ||
Gross Amounts of Recognized Financial Instruments | 0 | 0 |
Gross Amounts Offset in the Statements of Financial Position | 0 | 0 |
Net Amounts Presented in the Statements of Financial Position | 0 | 0 |
Financial Instruments/Collateral | 0 | 0 |
Net Amount | 0 | 0 |
Total Assets | ||
Gross Amounts of Recognized Financial Instruments | 17,630 | 17,796 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (17,630) | (17,796) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 0 | 0 |
Financial Instruments/Collateral | 0 | 0 |
Net Amount | 0 | 0 |
Derivatives | ||
Gross Amounts of Recognized Financial Instruments | 19,695 | 21,829 |
Gross Amounts Offset in the Statements of Financial Position | (17,630) | (17,796) |
Net Amounts Presented in the Statements of Financial Position | 2,065 | 4,033 |
Financial Instruments/ Collateral | (2,065) | (4,033) |
Net Amount | 0 | 0 |
Securities sold under agreements to repurchase | ||
Gross Amounts of Recognized Financial Instruments | 0 | 0 |
Gross Amounts Offset in the Statements of Financial Position | 0 | 0 |
Net Amounts Presented in the Statements of Financial Position | 0 | 0 |
Financial Instruments/ Collateral | 0 | 0 |
Net Amount | 0 | 0 |
Total Liabilities | ||
Gross Amounts of Recognized Financial Instruments | 19,695 | 21,829 |
Gross Amounts Offset in the Statements of Financial Position | (17,630) | (17,796) |
Net Amounts Presented in the Statements of Financial Position | 2,065 | 4,033 |
Financial instruments/ collateral | (2,065) | (4,033) |
Net Amount | $ 0 | $ 0 |
Derivatives and Hedging (Financ
Derivatives and Hedging (Financial Statement Classification and Impact of Derivatives Used in Qualifying and Non-qualifying Hedge Relationships) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | $ (8,241) | $ 17,727 |
Change in Value of Market Risk Benefits, Net of Related Hedging Gain (Loss) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 0 | 0 |
Net Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 481 | 451 |
Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | (120) | 196 |
Change in AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | (1,589) | 1,222 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 18 | 31 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Change in Value of Market Risk Benefits, Net of Related Hedging Gain (Loss) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Net Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 481 | 451 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | (112) | 188 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Change in AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | (1,589) | 1,222 |
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 derivatives, net | 18 | 31 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Change in Value of Market Risk Benefits, Net of Related Hedging Gain (Loss) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 0 | 0 |
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 derivatives, net | 481 | 451 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | (112) | 188 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Change in AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | (1,589) | 1,222 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | (8,259) | 17,696 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Change in Value of Market Risk Benefits, Net of Related Hedging Gain (Loss) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Net Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | (8) | 8 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Change in AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 167 | (1,201) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Change in Value of Market Risk Benefits, Net of Related Hedging Gain (Loss) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Net Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Change in AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | (82) | 115 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Change in Value of Market Risk Benefits, Net of Related Hedging Gain (Loss) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Net Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Change in AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 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 derivatives, net | (228) | 290 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Change in Value of Market Risk Benefits, Net of Related Hedging Gain (Loss) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Net Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | (8) | 8 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Change in AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Change in Value of Market Risk Benefits, Net of Related Hedging Gain (Loss) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Net Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Change in AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 1,759 | (1,526) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Change in Value of Market Risk Benefits, Net of Related Hedging Gain (Loss) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Net Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Change in AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 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 derivatives, net | (9,875) | 20,018 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Change in Value of Market Risk Benefits, Net of Related Hedging Gain (Loss) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Net Investment Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Change in AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | $ 0 | $ 0 |
Derivatives and Hedging (Curren
Derivatives and Hedging (Current Period Cash Flow Hedges in AOCI (loss) before Taxes) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Cash flow hedgers in AOCI | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |
Balance, beginning | $ 14,102 |
Amount recorded in AOCI | (1,202) |
Amount reclassified from AOCI to income | (387) |
Balance, ending | 12,513 |
Currency/Interest Rate | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |
Amount recorded in AOCI | (1,202) |
Amount reclassified from AOCI to income | $ (387) |
Derivatives and Hedging (Narrat
Derivatives and Hedging (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Derivative [Line Items] | ||
Cash flow hedge to be reclassified, short-term | $ 1.7 | |
Policyholders' account balances | ||
Derivative [Line Items] | ||
Embedded derivatives | $ (127) | $ (108) |
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 | Mar. 31, 2023 | Dec. 31, 2022 | |
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | $ 2,108,183 | $ 1,719,488 | |
Market risk benefit assets | 562,922 | 558,624 | |
Fixed maturities, trading | 23,938 | 23,782 | |
Equity securities | 4,363 | 4,358 | |
Other invested assets | 133,763 | 129,528 | |
Reinsurance recoverables | 3,195,287 | 3,098,248 | [1] |
Receivables from parent and affiliates | 17,574 | 19,348 | |
Separate account assets | 14,413,681 | 13,926,958 | |
TOTAL ASSETS | 21,427,006 | 20,596,445 | |
Market risk benefit liabilities | 562,922 | 558,624 | |
Payables to parent and affiliates | 2,074 | 7,546 | |
Total liabilities | 20,198,113 | 19,569,790 | |
Fair Value, Measurements, Recurring | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 2,108,183 | 1,719,488 | |
Market risk benefit assets | 562,922 | 558,624 | |
Fixed maturities, trading | 23,938 | 23,782 | |
Equity securities | 4,363 | 4,358 | |
Short-term investments | 8,000 | 3,000 | |
Cash equivalents | 81,323 | 245,302 | |
Other invested assets | 0 | 0 | |
Reinsurance recoverables | 1,357 | 0 | |
Receivables from parent and affiliates | 699 | 688 | |
Subtotal excluding separate account assets | 2,790,785 | 2,555,242 | |
Separate account assets | 12,452,598 | 12,014,623 | |
TOTAL ASSETS | 15,243,383 | 14,569,865 | |
Market risk benefit liabilities | 562,922 | 558,624 | |
Policyholders' account balances | 127,032 | 108,144 | |
Payables to parent and affiliates | 2,065 | 4,033 | |
Total liabilities | 692,019 | 670,801 | |
Assets netting | (17,630) | (17,796) | |
Liabilities netting | (17,630) | (17,796) | |
Netting | 0 | 0 | |
Fair Value, Measurements, Recurring | Other invested assets | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets netting | (17,630) | (17,796) | |
Fair Value, Measurements, Recurring | Payables to parent and affiliates | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liabilities netting | (17,630) | (17,796) | |
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: | 52,664 | 61,136 | |
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: | 179,906 | 159,215 | |
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: | 79,323 | 71,963 | |
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: | 1,202,519 | 883,405 | |
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: | 185,444 | 172,441 | |
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: | 145,059 | 112,962 | |
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: | 118,719 | 112,035 | |
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: | 17,765 | 18,374 | |
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: | 114,466 | 115,891 | |
Fair Value, Measurements, Recurring | Residential mortgage-backed securities | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 12,318 | 12,066 | |
Fair Value, Measurements, Recurring | Level 1 | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Market risk benefit assets | 0 | 0 | |
Fixed maturities, trading | 0 | 0 | |
Equity securities | 0 | 0 | |
Short-term investments | 0 | 0 | |
Cash equivalents | 0 | 0 | |
Other invested assets | 0 | 0 | |
Reinsurance recoverables | 0 | 0 | |
Receivables from parent and affiliates | 0 | 0 | |
Subtotal excluding separate account assets | 0 | 0 | |
Separate account assets | 0 | 0 | |
TOTAL ASSETS | 0 | 0 | |
Market risk benefit liabilities | 0 | 0 | |
Policyholders' account balances | 0 | 0 | |
Payables to parent and affiliates | 0 | 0 | |
Total liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Obligations of U.S. states and their political subdivisions | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Foreign government bonds | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | U.S. corporate public securities | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | U.S. corporate private securities | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Foreign corporate public securities | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Foreign corporate private securities | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Asset-backed securities | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Commercial mortgage-backed securities | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Residential mortgage-backed securities | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 2,084,726 | 1,694,984 | |
Market risk benefit assets | 0 | 0 | |
Fixed maturities, trading | 23,938 | 23,782 | |
Equity securities | 69 | 67 | |
Short-term investments | 8,000 | 3,000 | |
Cash equivalents | 81,323 | 245,302 | |
Other invested assets | 17,630 | 17,796 | |
Reinsurance recoverables | 0 | 0 | |
Receivables from parent and affiliates | 699 | 688 | |
Subtotal excluding separate account assets | 2,216,385 | 1,985,619 | |
Separate account assets | 12,452,598 | 12,014,623 | |
TOTAL ASSETS | 14,668,983 | 14,000,242 | |
Market risk benefit liabilities | 0 | 0 | |
Policyholders' account balances | 0 | 0 | |
Payables to parent and affiliates | 19,695 | 21,829 | |
Total liabilities | 19,695 | 21,829 | |
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: | 52,664 | 61,136 | |
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: | 179,906 | 159,215 | |
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: | 79,323 | 71,963 | |
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: | 1,202,519 | 883,405 | |
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: | 181,868 | 168,638 | |
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: | 145,059 | 112,962 | |
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: | 118,719 | 112,035 | |
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: | 17,765 | 18,374 | |
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: | 94,585 | 95,190 | |
Fair Value, Measurements, Recurring | Level 2 | Residential mortgage-backed securities | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 12,318 | 12,066 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 23,457 | 24,504 | |
Market risk benefit assets | 562,922 | 558,624 | |
Fixed maturities, trading | 0 | 0 | |
Equity securities | 4,294 | 4,291 | |
Short-term investments | 0 | 0 | |
Cash equivalents | 0 | 0 | |
Other invested assets | 0 | 0 | |
Reinsurance recoverables | 1,357 | 0 | |
Receivables from parent and affiliates | 0 | 0 | |
Subtotal excluding separate account assets | 592,030 | 587,419 | |
Separate account assets | 0 | 0 | |
TOTAL ASSETS | 592,030 | 587,419 | |
Market risk benefit liabilities | 562,922 | 558,624 | |
Policyholders' account balances | 127,032 | 108,144 | |
Payables to parent and affiliates | 0 | 0 | |
Total liabilities | 689,954 | 666,768 | |
Fair Value, Measurements, Recurring | Level 3 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Obligations of U.S. states and their political subdivisions | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Foreign government bonds | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | U.S. corporate public securities | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | U.S. corporate private securities | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 3,576 | 3,803 | |
Fair Value, Measurements, Recurring | Level 3 | Foreign corporate public securities | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Foreign corporate private securities | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Asset-backed securities | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Commercial mortgage-backed securities | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 19,881 | 20,701 | |
Fair Value, Measurements, Recurring | Level 3 | Residential mortgage-backed securities | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Other invested assets | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value investment measured at NAV per share | 2,200 | 2,400 | |
Separate account assets | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value investment measured at NAV per share | $ 1,961,000 | $ 1,912,000 | |
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities (Quantitative Info for Level 3 Inputs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Corporate securities | $ 4,622 | $ 4,614 |
Market risk benefit assets | 562,922 | 558,624 |
Market risk benefit liabilities | 562,922 | 558,624 |
Fair Value, Measurements, Recurring | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Market risk benefit assets | 562,922 | 558,624 |
Market risk benefit liabilities | 562,922 | 558,624 |
Policyholders' account balances | $ 127,032 | 108,144 |
Level 3 | Minimum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Fair Value Inputs, Policyholder Age | 50 years | |
Level 3 | Minimum | Market risk benefit liabilities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Mortality rate | 0% | |
Level 3 | Maximum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Fair Value Inputs, Policyholder Age | 90 years | |
Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Market risk benefit assets | $ 562,922 | 558,624 |
Market risk benefit liabilities | 562,922 | 558,624 |
Policyholders' account balances | $ 127,032 | $ 108,144 |
Level 3 | Internal | Minimum | Discounted cash flow | Market risk benefit liabilities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 1% | 1% |
Spread over SOFR | 0.52% | 0.51% |
Utilization rate | 38% | 38% |
Withdrawal rate (greater than maximum) | 77% | 77% |
Mortality rate | 0% | 0% |
Equity volatility curve | 18% | 18% |
Level 3 | Internal | Minimum | Discounted cash flow | Policyholders' account balances | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 1% | 1% |
Spread over SOFR | 0.27% | 0.17% |
Mortality rate | 0% | 0% |
Equity volatility curve | 14% | 18% |
Level 3 | Internal | Minimum | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 10.68% | 10.18% |
Level 3 | Internal | Minimum | Discounted cash flow | Commercial mortgage-backed securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Liquidity premium | 0.60% | 60% |
Level 3 | Internal | Minimum | Discounted cash flow | Market risk benefit assets | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 1% | 1% |
Spread over SOFR | 0.52% | 0.51% |
Utilization rate | 38% | 38% |
Withdrawal rate (greater than maximum) | 77% | 77% |
Mortality rate | 0% | 0% |
Equity volatility curve | 18% | 18% |
Level 3 | Internal | Maximum | Discounted cash flow | Market risk benefit liabilities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 20% | 20% |
Spread over SOFR | 2.20% | 2.14% |
Utilization rate | 95% | 95% |
Withdrawal rate (greater than maximum) | 100% | 100% |
Mortality rate | 15% | 15% |
Equity volatility curve | 25% | 28% |
Level 3 | Internal | Maximum | Discounted cash flow | Policyholders' account balances | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 80% | 6% |
Spread over SOFR | 2.34% | 0.66% |
Mortality rate | 23% | 23% |
Equity volatility curve | 30% | 28% |
Level 3 | Internal | Maximum | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 10.68% | 10.18% |
Level 3 | Internal | Maximum | Discounted cash flow | Commercial mortgage-backed securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Liquidity premium | 0.75% | 75% |
Level 3 | Internal | Maximum | Discounted cash flow | Market risk benefit assets | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 20% | 20% |
Spread over SOFR | 2.20% | 2.14% |
Utilization rate | 95% | 95% |
Withdrawal rate (greater than maximum) | 100% | 100% |
Mortality rate | 15% | 15% |
Equity volatility curve | 25% | 28% |
Level 3 | Internal | Weighted Average | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 10.68% | 10.18% |
Level 3 | Internal | Weighted Average | Discounted cash flow | Commercial mortgage-backed securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Liquidity premium | 0.69% | 69.05% |
Level 3 | Internal | Fair Value, Measurements, Recurring | Market risk benefit liabilities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Market risk benefit liabilities | $ 562,922 | $ 558,624 |
Level 3 | Internal | Fair Value, Measurements, Recurring | Policyholders' account balances | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Policyholders' account balances | 127,032 | 108,144 |
Level 3 | Internal | Fair Value, Measurements, Recurring | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Corporate securities | 3,576 | 3,803 |
Level 3 | Internal | Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Commercial mortgage-backed securities | 19,881 | 20,701 |
Level 3 | Internal | Fair Value, Measurements, Recurring | Market risk benefit assets | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Market risk benefit assets | $ 562,922 | $ 558,624 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities (Changes in Level 3 Assets and Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Equity securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | $ 4,291 | $ 5,812 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Other | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | 4,294 | 5,298 |
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 3 | (514) |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | 3 | (514) |
Equity securities | Realized investment gains (losses), net | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | 0 | 0 |
Equity securities | Other income (loss) | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 3 | (514) |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | 3 | (514) |
Equity securities | Included in other comprehensive income (loss) | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 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 |
Reinsurance recoverables | ||
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 | 0 | 0 |
Other | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | 1,357 | 0 |
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 1,357 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | 1,357 | 0 |
Reinsurance recoverables | Realized investment gains (losses), net | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 1,357 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | 1,357 | 0 |
Reinsurance recoverables | Other income (loss) | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | 0 | 0 |
Reinsurance recoverables | Included in other comprehensive income (loss) | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 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 |
Policyholders' account balances | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | (108,144) | (153,127) |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | (8,056) | 0 |
Settlements | 0 | 2,644 |
Other | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | (127,032) | (130,930) |
Total gains (losses) (realized/unrealized): | ||
Included in earnings | (10,832) | 19,553 |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | (13,914) | 21,607 |
Policyholders' account balances | Realized investment gains (losses), net | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | (10,832) | 19,553 |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | (13,914) | 21,607 |
Policyholders' account balances | Other income (loss) | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | 0 | 0 |
Policyholders' account balances | Included in other comprehensive income (loss) | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | 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 |
Available-for-sale | Fixed maturities | Realized investment gains (losses), net | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | (2) | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | 0 | 0 |
Available-for-sale | Fixed maturities | Other income (loss) | ||
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 | Included in other comprehensive income (loss) | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | (756) | (5,661) |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | (757) | (5,617) |
Available-for-sale | Fixed maturities | Net investment income | ||
Total gains (losses) (realized/unrealized): | ||
Included in earnings | (11) | 2 |
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 | 3,803 | 24,319 |
Purchases | 3,644 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (3,835) | (632) |
Other | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | 3,576 | 20,823 |
Total gains (losses) (realized/unrealized): | ||
Included in earnings | (36) | (2,864) |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | (37) | (2,821) |
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 | 20,701 | 27,274 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (87) | (82) |
Other | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair Value, end of period | 19,881 | 24,397 |
Total gains (losses) (realized/unrealized): | ||
Included in earnings | (733) | (2,795) |
Unrealized gains (losses) for assets/liabilities still held: | ||
Included in earnings | $ (720) | $ (2,796) |
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 | Mar. 31, 2023 | Dec. 31, 2022 | |
Assets: | |||
Policy loans | $ 212,479 | $ 212,063 | |
Cash and cash equivalents | 83,286 | 255,767 | |
Accrued investment income | 31,064 | 25,222 | |
Reinsurance recoverables | 3,195,287 | 3,098,248 | [1] |
Receivables from parent and affiliates | 17,574 | 19,348 | |
Liabilities: | |||
Cash collateral for loaned securities | 3,325 | 0 | |
Fair Value | |||
Assets: | |||
Commercial mortgage and other loans | 155,427 | 141,513 | |
Policy loans | 212,479 | 212,063 | |
Short-term investments | 4,000 | 4,000 | |
Cash and cash equivalents | 1,963 | 10,465 | |
Accrued investment income | 31,064 | 25,222 | |
Reinsurance recoverables | 24,462 | 25,127 | |
Receivables from parent and affiliates | 16,875 | 18,660 | |
Other assets | 3,805 | 3,852 | |
Total assets | 450,075 | 440,902 | |
Liabilities: | |||
Policyholders’ account balances - investment contracts | 200,256 | 217,322 | |
Cash collateral for loaned securities | 3,325 | 0 | |
Payables to parent and affiliates | 9 | 3,513 | |
Other liabilities | 56,513 | 51,312 | |
Total liabilities | 260,103 | 272,147 | |
Carrying Amount | |||
Assets: | |||
Commercial mortgage and other loans | 159,752 | 148,179 | |
Policy loans | 212,479 | 212,063 | |
Short-term investments | 4,000 | 4,000 | |
Cash and cash equivalents | 1,963 | 10,465 | |
Accrued investment income | 31,064 | 25,222 | |
Reinsurance recoverables | 26,196 | 27,183 | |
Receivables from parent and affiliates | 16,875 | 18,660 | |
Other assets | 3,805 | 3,852 | |
Total assets | 456,134 | 449,624 | |
Liabilities: | |||
Policyholders’ account balances - investment contracts | 201,990 | 219,378 | |
Cash collateral for loaned securities | 3,325 | 0 | |
Payables to parent and affiliates | 9 | 3,513 | |
Other liabilities | 56,513 | 51,312 | |
Total liabilities | 261,837 | 274,203 | |
Level 1 | Fair Value | |||
Assets: | |||
Commercial mortgage and other loans | 0 | 0 | |
Policy loans | 0 | 0 | |
Short-term investments | 4,000 | 4,000 | |
Cash and cash equivalents | 1,963 | 10,465 | |
Accrued investment income | 0 | 0 | |
Reinsurance recoverables | 0 | 0 | |
Receivables from parent and affiliates | 0 | 0 | |
Other assets | 0 | 0 | |
Total assets | 5,963 | 14,465 | |
Liabilities: | |||
Policyholders’ account balances - investment contracts | 0 | 0 | |
Cash collateral for loaned securities | 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 | 0 | 0 | |
Accrued investment income | 31,064 | 25,222 | |
Reinsurance recoverables | 0 | 0 | |
Receivables from parent and affiliates | 16,875 | 18,660 | |
Other assets | 3,805 | 3,852 | |
Total assets | 51,744 | 47,734 | |
Liabilities: | |||
Policyholders’ account balances - investment contracts | 165,411 | 180,576 | |
Cash collateral for loaned securities | 3,325 | 0 | |
Payables to parent and affiliates | 9 | 3,513 | |
Other liabilities | 56,513 | 51,312 | |
Total liabilities | 225,258 | 235,401 | |
Level 3 | Fair Value | |||
Assets: | |||
Commercial mortgage and other loans | 155,427 | 141,513 | |
Policy loans | 212,479 | 212,063 | |
Short-term investments | 0 | 0 | |
Cash and cash equivalents | 0 | 0 | |
Accrued investment income | 0 | 0 | |
Reinsurance recoverables | 24,462 | 25,127 | |
Receivables from parent and affiliates | 0 | 0 | |
Other assets | 0 | 0 | |
Total assets | 392,368 | 378,703 | |
Liabilities: | |||
Policyholders’ account balances - investment contracts | 34,845 | 36,746 | |
Cash collateral for loaned securities | 0 | 0 | |
Payables to parent and affiliates | 0 | 0 | |
Other liabilities | 0 | 0 | |
Total liabilities | $ 34,845 | $ 36,746 | |
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs and Deferred Reinsurance (Balance of and Changes in DAC) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||
Balance, beginning of period | [1] | $ 351,874 | ||
Amortization expense | (5,017) | $ (4,829) | [2] | |
Balance, end of period | 361,655 | |||
Term Life | ||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||
Balance, beginning of period | 70,213 | 62,091 | ||
Capitalization | 4,007 | 4,228 | ||
Amortization expense | (1,748) | (1,650) | ||
Other | 0 | 0 | ||
Balance, end of period | 72,472 | 64,669 | ||
Variable and Universal Life | ||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||
Balance, beginning of period | 281,661 | 246,653 | ||
Capitalization | 10,791 | 13,642 | ||
Amortization expense | (3,272) | (3,179) | ||
Other | 3 | (4) | ||
Balance, end of period | 289,183 | 257,112 | ||
Total | ||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||
Balance, beginning of period | 351,874 | 308,744 | ||
Capitalization | 14,798 | 17,870 | ||
Amortization expense | (5,020) | (4,829) | ||
Other | 3 | (4) | ||
Balance, end of period | $ 361,655 | $ 321,781 | ||
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[2]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Deferred Policy Acquisition C_4
Deferred Policy Acquisition Costs and Deferred Reinsurance (Balance of and Changes in Deferred Reinsurance Losses) (Details) - Variable Annuities - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ 17,425 | $ 18,977 |
Amortization expense | 378 | 395 |
Balance, end of period | $ 17,047 | $ 18,582 |
Separate Accounts (Separate Acc
Separate Accounts (Separate Account Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | $ 14,413,681 | $ 13,926,958 |
Equity | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 7,642,559 | 7,430,452 |
Fixed Income | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 4,139,655 | 3,973,001 |
Other | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 670,384 | 611,170 |
Other invested assets | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | $ 1,961,083 | $ 1,912,335 |
Separate Accounts (Separate A_2
Separate Accounts (Separate Account Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of period | $ 13,926,958 | $ 17,922,368 |
Deposits | 52,309 | 72,425 |
Investment performance | 702,620 | (1,072,501) |
Policy charges | (81,363) | (89,983) |
Surrenders and withdrawals | (206,691) | (224,156) |
Benefit payments | (11,302) | (14,433) |
Net transfers (to) from general account | 29,102 | (12,143) |
Other | 2,048 | 2,568 |
Balance, end of period | 14,413,681 | 16,584,145 |
Cash surrender value | 14,142,362 | 16,268,825 |
Variable Annuities | ||
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of period | 8,928,568 | 11,982,322 |
Deposits | 8,431 | 24,269 |
Investment performance | 439,099 | (776,250) |
Policy charges | (55,991) | (64,417) |
Surrenders and withdrawals | (194,702) | (217,281) |
Benefit payments | (1,378) | (1,219) |
Net transfers (to) from general account | 913 | (2) |
Other | 397 | 270 |
Balance, end of period | 9,125,337 | 10,947,692 |
Cash surrender value | 8,933,846 | 10,707,646 |
Variable Life | ||
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of period | 4,998,390 | 5,940,046 |
Deposits | 43,878 | 48,156 |
Investment performance | 263,521 | (296,251) |
Policy charges | (25,372) | (25,566) |
Surrenders and withdrawals | (11,989) | (6,875) |
Benefit payments | (9,924) | (13,214) |
Net transfers (to) from general account | 28,189 | (12,141) |
Other | 1,651 | 2,298 |
Balance, end of period | 5,288,344 | 5,636,453 |
Cash surrender value | $ 5,208,516 | $ 5,561,179 |
Liability For Future Policy B_3
Liability For Future Policy Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance, end of period, pre-flooring | $ 1,205,672 | $ 1,290,273 | ||
Flooring impact, end of period | 0 | 6,028 | ||
Balance, end of period, post-flooring | 1,205,672 | 1,296,301 | ||
Less: Reinsurance recoverable | 1,054,331 | 1,130,341 | ||
Balance after reinsurance recoverable, end of period, post-flooring | 151,341 | 165,960 | ||
Interest accrual | 7,840 | 5,339 | ||
Total | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance, beginning of period | 2,567,651 | 3,060,876 | ||
Effect of cumulative changes in discount rate assumptions, beginning of period | 139,861 | (562,914) | ||
Balance at original discount rate, beginning of period | 2,707,512 | 2,497,962 | ||
Effect of actual variances from expected experience and other activity | $ (14,279) | $ (510) | ||
Adjusted balance, beginning of period | 2,693,233 | 2,497,452 | ||
Issuances | 17,577 | 21,021 | ||
Interest accrual | 32,665 | 30,367 | ||
Benefit payments | 41,465 | 35,576 | ||
Other adjustments | (372) | (115) | ||
Balance at original discount rate, end of period | 2,701,638 | 2,513,149 | ||
Effect of cumulative changes in discount rate assumptions, end of period | (65,910) | 285,497 | ||
Balance, end of period | 2,635,728 | 2,798,646 | ||
Balance, end of period, post-flooring | 2,078,322 | 1,976,238 | ||
Nonparticipating Traditional And Limited-Pay Business | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Gain in net income | (3,000) | (2,000) | ||
Loss in net income | 3,000 | 2,000 | ||
Term Life | ||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||
Balance, beginning of period | 1,416,807 | 1,641,933 | ||
Effect of cumulative changes in discount rate assumptions, beginning of period | 73,563 | (253,752) | ||
Balance at original discount rate, beginning of period | 1,490,370 | 1,388,181 | ||
Effect of actual variances from expected experience | (10,232) | 3,165 | ||
Adjusted balance, beginning of period | 1,480,138 | 1,391,346 | ||
Issuances | 16,867 | 20,680 | ||
Net premiums / considerations collected | (43,352) | (40,394) | ||
Interest accrual | 17,156 | 16,119 | ||
Balance at original discount rate, end of period | 1,470,809 | 1,387,751 | ||
Effect of cumulative changes in discount rate assumptions, end of period | (40,753) | 120,622 | ||
Balance, end of period | 1,430,056 | 1,508,373 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance, beginning of period | 2,551,191 | 3,041,562 | ||
Effect of cumulative changes in discount rate assumptions, beginning of period | 137,962 | (561,455) | ||
Balance at original discount rate, beginning of period | 2,689,153 | 2,480,107 | ||
Effect of actual variances from expected experience and other activity | (14,462) | (706) | ||
Adjusted balance, beginning of period | 2,674,691 | 2,479,401 | ||
Issuances | 16,867 | 20,680 | ||
Interest accrual | 32,494 | 30,217 | ||
Benefit payments | 40,914 | 35,047 | ||
Other adjustments | (372) | (41) | ||
Balance at original discount rate, end of period | 2,682,766 | 2,495,210 | ||
Effect of cumulative changes in discount rate assumptions, end of period | (64,374) | 285,629 | ||
Balance, end of period | 2,618,392 | 2,780,839 | ||
Balance, end of period, pre-flooring | 1,188,336 | 1,272,466 | ||
Flooring impact, end of period | 0 | 6,028 | ||
Balance, end of period, post-flooring | 1,188,336 | 1,278,494 | ||
Less: Reinsurance recoverable | 1,036,995 | 1,112,534 | ||
Balance after reinsurance recoverable, end of period, post-flooring | 151,341 | 165,960 | ||
Term Life | Gross Basis | ||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||
Net premiums / considerations collected | (61,365) | (62,991) | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Interest accrual | 15,338 | 14,098 | ||
Undiscounted expected future gross premiums | 3,056,399 | 3,307,354 | ||
Discounted expected future gross premiums (at original discount rate) | 2,057,345 | 2,192,982 | ||
Discounted expected future gross premiums (at current discount rate) | 2,006,982 | 2,396,738 | ||
Undiscounted expected future benefits and expenses | $ 4,332,537 | $ 4,023,253 | ||
Weighted-average duration of the liability in years (at original discount rate) | 11 years | 10 years | ||
Weighted-average duration of the liability in years (at current discount rate) | 10 years | 11 years | ||
Weighted-average interest rate (at original discount rate) | 5.31% | 5.34% | ||
Weighted-average interest rate (at current discount rate) | 5.07% | 3.55% | ||
Fixed Annuities | ||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||
Balance, beginning of period | $ 0 | $ 0 | ||
Effect of cumulative changes in discount rate assumptions, beginning of period | 0 | 0 | ||
Balance at original discount rate, beginning of period | 0 | 0 | ||
Effect of actual variances from expected experience | (599) | 0 | ||
Adjusted balance, beginning of period | (599) | 0 | ||
Issuances | 710 | 341 | ||
Net premiums / considerations collected | (111) | (341) | ||
Interest accrual | 0 | 0 | ||
Balance at original discount rate, end of period | 0 | 0 | ||
Effect of cumulative changes in discount rate assumptions, end of period | 0 | 0 | ||
Balance, end of period | 0 | 0 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance, beginning of period | 16,460 | 19,314 | ||
Effect of cumulative changes in discount rate assumptions, beginning of period | 1,899 | (1,459) | ||
Balance at original discount rate, beginning of period | 18,359 | 17,855 | ||
Effect of actual variances from expected experience and other activity | 183 | 196 | ||
Adjusted balance, beginning of period | 18,542 | 18,051 | ||
Issuances | 710 | 341 | ||
Interest accrual | 171 | 150 | ||
Benefit payments | 551 | 529 | ||
Other adjustments | 0 | (74) | ||
Balance at original discount rate, end of period | 18,872 | 17,939 | ||
Effect of cumulative changes in discount rate assumptions, end of period | (1,536) | (132) | ||
Balance, end of period | 17,336 | 17,807 | ||
Balance, end of period, pre-flooring | 17,336 | 17,807 | ||
Flooring impact, end of period | 0 | 0 | ||
Balance, end of period, post-flooring | 17,336 | 17,807 | ||
Less: Reinsurance recoverable | 17,336 | 17,807 | ||
Balance after reinsurance recoverable, end of period, post-flooring | 0 | 0 | ||
Fixed Annuities | Gross Basis | ||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||
Net premiums / considerations collected | (112) | (653) | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Interest accrual | 171 | 150 | ||
Undiscounted expected future gross premiums | 0 | 0 | ||
Discounted expected future gross premiums (at original discount rate) | 0 | 0 | ||
Discounted expected future gross premiums (at current discount rate) | 0 | 0 | ||
Undiscounted expected future benefits and expenses | $ 24,654 | $ 23,522 | ||
Weighted-average duration of the liability in years (at original discount rate) | 7 years | 7 years | ||
Weighted-average duration of the liability in years (at current discount rate) | 6 years | 7 years | ||
Weighted-average interest rate (at original discount rate) | 3.61% | 3.39% | ||
Weighted-average interest rate (at current discount rate) | 4.98% | 3.49% | ||
Term Life And Fixed Annuities | ||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||
Balance, beginning of period | $ 1,416,807 | $ 1,641,933 | ||
Effect of cumulative changes in discount rate assumptions, beginning of period | 73,563 | (253,752) | ||
Balance at original discount rate, beginning of period | 1,490,370 | 1,388,181 | ||
Effect of actual variances from expected experience | $ (10,831) | $ 3,165 | ||
Adjusted balance, beginning of period | 1,479,539 | 1,391,346 | ||
Issuances | 17,577 | 21,021 | ||
Net premiums / considerations collected | (43,463) | (40,735) | ||
Interest accrual | 17,156 | 16,119 | ||
Balance at original discount rate, end of period | 1,470,809 | 1,387,751 | ||
Effect of cumulative changes in discount rate assumptions, end of period | (40,753) | 120,622 | ||
Balance, end of period | $ 1,430,056 | $ 1,508,373 |
Liability For Future Policy B_4
Liability For Future Policy Benefits (Deferred Profit Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance, end of period | $ 1,205,672 | $ 1,296,301 | ||
Less: Reinsurance recoverable | 1,054,331 | 1,130,341 | ||
Balance after reinsurance recoverable, end of period, post-flooring | 151,341 | 165,960 | ||
Deferred profit liability | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Revenue | 139 | (103) | ||
Deferred profit liability | Gross Basis | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Interest accrual | 13 | 16 | ||
Revenue | 139 | (103) | ||
Fixed Annuities | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Effect of actual variances from expected experience and other activity | $ 183 | $ 196 | ||
Adjusted balance, beginning of period | 18,542 | 18,051 | ||
Interest accrual | 171 | 150 | ||
Other adjustments | 0 | (74) | ||
Balance, end of period | 17,336 | 17,807 | ||
Less: Reinsurance recoverable | 17,336 | 17,807 | ||
Balance after reinsurance recoverable, end of period, post-flooring | 0 | 0 | ||
Fixed Annuities | Gross Basis | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Interest accrual | 171 | 150 | ||
Fixed Annuities | Deferred profit liability | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance, beginning of period | 1,684 | 1,726 | ||
Effect of actual variances from expected experience and other activity | (107) | (164) | ||
Adjusted balance, beginning of period | $ 1,577 | $ 1,562 | ||
Profits deferred | 0 | 309 | ||
Interest accrual | 13 | 16 | ||
Amortization | (45) | (52) | ||
Other adjustments | 0 | (6) | ||
Balance, end of period | 1,545 | 1,829 | ||
Less: Reinsurance recoverable | 1,545 | 1,829 | ||
Balance after reinsurance recoverable, end of period, post-flooring | 0 | 0 | ||
Revenue | $ 139 | $ (103) |
Liability For Future Policy B_5
Liability For Future Policy Benefits (Additional Insurance Reserves) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Insurance [Abstract] | ||||
Balance, beginning of period | $ 827,478 | $ 703,968 | ||
Flooring impact and amounts in AOCI | 91,115 | (71,467) | ||
Balance, excluding amounts in AOCI, beginning of period, pre-flooring | 918,593 | 632,501 | ||
Effect of actual variances from expected experience and other activity | $ (342) | $ (10,170) | ||
Adjusted balance, beginning of period | $ 918,251 | $ 622,331 | ||
Assessments collected | 14,827 | 39,441 | ||
Interest accrual | 7,840 | 5,339 | ||
Excess benefits paid | (3,995) | (3,284) | ||
Balance, excluding amounts in AOCI, end of period, pre-flooring | 936,923 | 663,827 | ||
Flooring impact and amounts in AOCI | (65,818) | 14,281 | ||
Balance after transition | 871,105 | 678,108 | ||
Reinsurance recoverables | 834,640 | 643,583 | ||
Balance after transition | 36,465 | 34,525 | ||
Gross assessments | $ 46,941 | $ 92,938 | ||
Weighted-average duration of the liability in years (at original discount rate) | 28 years | 26 years | ||
Weighted-average interest rate (at original discount rate) | 3.42% | 3.33% |
Liability For Future Policy B_6
Liability For Future Policy Benefits (Future Policy Benefits) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Insurance [Abstract] | |||||
Future policy benefits | $ 2,227,631 | $ 2,130,042 | [1] | $ 2,147,645 | |
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Balance | 871,105 | 827,478 | 678,108 | $ 703,968 | |
Balance, end of period, post-flooring | 1,205,672 | 1,296,301 | |||
Other Future Policy Benefits reserves | 149,309 | 171,407 | |||
Future policy benefits | 2,227,631 | $ 2,130,042 | [1] | 2,147,645 | |
Total | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Benefit reserves, end of period, post-flooring | 1,205,672 | 1,296,301 | |||
Balance | 871,105 | 678,108 | |||
Deferred profit liability, end of period, post-flooring | 1,545 | 1,829 | |||
Balance, end of period, post-flooring | $ 2,078,322 | $ 1,976,238 | |||
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Liability For Future Policy B_7
Liability For Future Policy Benefits (Revenue and Interest Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Benefit Reserves | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | $ 61,477 | $ 63,644 |
Interest Expense | 15,509 | 14,248 |
Benefit Reserves | Fixed Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 112 | 653 |
Interest Expense | 171 | 150 |
Benefit Reserves | Term Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 61,365 | 62,991 |
Interest Expense | 15,338 | 14,098 |
Benefit Reserves | Variable and Universal Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 0 | 0 |
Interest Expense | 0 | 0 |
Additional insurance reserves | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 46,941 | 92,938 |
Interest Expense | 7,840 | 5,339 |
Additional insurance reserves | Fixed Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 0 | 0 |
Interest Expense | 0 | 0 |
Additional insurance reserves | Term Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 0 | 0 |
Interest Expense | 0 | 0 |
Additional insurance reserves | Variable and Universal Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 46,941 | 92,938 |
Interest Expense | 7,840 | 5,339 |
Deferred profit liability | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 139 | (103) |
Interest Expense | 13 | 16 |
Deferred profit liability | Fixed Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 139 | (103) |
Interest Expense | 13 | 16 |
Deferred profit liability | Term Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 0 | 0 |
Interest Expense | 0 | 0 |
Deferred profit liability | Variable and Universal Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 0 | 0 |
Interest Expense | 0 | 0 |
Revenues | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 108,557 | 156,479 |
Revenues | Fixed Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 251 | 550 |
Revenues | Term Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 61,365 | 62,991 |
Revenues | Variable and Universal Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 46,941 | 92,938 |
Interest Expense | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest Expense | 23,362 | 19,603 |
Interest Expense | Fixed Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest Expense | 184 | 166 |
Interest Expense | Term Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest Expense | 15,338 | 14,098 |
Interest Expense | Variable and Universal Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest Expense | $ 7,840 | $ 5,339 |
Policyholders' Liabilities (Add
Policyholders' Liabilities (Additional Insurance Reserves) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Jan. 01, 2021 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Balance, beginning of period | $ 827,478 | $ 703,968 | |
Amortization expense | (3,995) | (3,284) | |
Balance, end of period | 328,956 | 268,002 | |
Reinsurance recoverables | 834,640 | 643,583 | |
Additional Liability, Long-Duration Insurance, after Reinsurance | 36,465 | 34,525 | |
Variable and Universal Life | Policyholder Contract Deposit | |||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Balance, beginning of period | 313,711 | 251,573 | |
Unearned revenue | 19,030 | 19,737 | |
Amortization expense | (3,785) | (3,308) | |
Balance, end of period | 328,956 | 268,002 | |
Reinsurance recoverables | 85,048 | 68,241 | $ 45,019 |
Additional Liability, Long-Duration Insurance, after Reinsurance | $ 243,908 | $ 199,761 | $ 141,564 |
Policyholders' Liabilities (Det
Policyholders' Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Additional Liability, Long-Duration Insurance [Roll Forward] | |||
Balance, beginning of period | [1] | $ 2,774,315 | |
Net transfers (to) from separate account | (29,102) | $ 12,143 | |
Unearned revenue reserves | 328,956 | 268,002 | |
Other | 47,556 | 50,657 | |
Total Policyholders' account balances | $ 2,792,291 | $ 2,712,779 | |
Weighted-average crediting rate | 2.65% | 2.84% | |
Net amount at risk | $ 33,887,277 | $ 32,527,594 | |
Cash surrender value(3) | 2,056,236 | 2,019,454 | |
Total | |||
Additional Liability, Long-Duration Insurance [Roll Forward] | |||
Balance, beginning of period | 2,411,804 | 2,397,010 | |
Deposits | 82,778 | 64,368 | |
Interest credited | 15,987 | 17,005 | |
Policy charges | (36,400) | (36,189) | |
Surrenders and withdrawals | (37,524) | (39,772) | |
Benefit payments | (2,069) | (892) | |
Net transfers (to) from separate account | (29,102) | 12,143 | |
Change in market value and other adjustments | 10,305 | (19,553) | |
Balance, end of period | 2,415,779 | 2,394,120 | |
Reinsurance and other recoverables | 1,084,989 | 1,075,119 | |
Policyholders' account balance net of reinsurance and other recoverables | 1,330,790 | 1,319,001 | |
Variable Annuities | |||
Additional Liability, Long-Duration Insurance [Roll Forward] | |||
Balance, beginning of period | 327,124 | 344,945 | |
Deposits | 25,558 | 298 | |
Interest credited | 2,015 | 1,564 | |
Policy charges | (40) | (48) | |
Surrenders and withdrawals | (8,163) | (5,197) | |
Benefit payments | (1,647) | (1,257) | |
Net transfers (to) from separate account | (913) | 2 | |
Change in market value and other adjustments | (131) | 0 | |
Balance, end of period | 343,803 | 340,307 | |
Reinsurance and other recoverables | 319,707 | 336,619 | |
Policyholders' account balance net of reinsurance and other recoverables | 24,096 | 3,688 | |
Total Policyholders' account balances | $ 323,156 | $ 344,150 | |
Weighted-average crediting rate | 2.40% | 1.83% | |
Net amount at risk | $ 0 | $ 0 | |
Cash surrender value(3) | 322,593 | 319,207 | |
Variable and Universal Life | |||
Additional Liability, Long-Duration Insurance [Roll Forward] | |||
Balance, beginning of period | 2,084,680 | 2,052,065 | |
Deposits | 57,220 | 64,070 | |
Interest credited | 13,972 | 15,441 | |
Policy charges | (36,360) | (36,141) | |
Surrenders and withdrawals | (29,361) | (34,575) | |
Benefit payments | (422) | 365 | |
Net transfers (to) from separate account | (28,189) | 12,141 | |
Change in market value and other adjustments | 10,436 | (19,553) | |
Balance, end of period | 2,071,976 | 2,053,813 | |
Reinsurance and other recoverables | 765,282 | 738,500 | |
Policyholders' account balance net of reinsurance and other recoverables | 1,306,694 | 1,315,313 | |
Total Policyholders' account balances | $ 1,752,083 | $ 1,729,523 | |
Weighted-average crediting rate | 2.69% | 3.01% | |
Net amount at risk | $ 33,887,277 | $ 32,527,594 | |
Cash surrender value(3) | $ 1,733,643 | $ 1,700,247 | |
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Policyholders' Liabilities (Gua
Policyholders' Liabilities (Guaranteed Minimum Crediting Rate) (Details) $ in Thousands | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 2,792,291 | $ 2,774,315 | [1] | $ 2,712,779 | |
1 -50 bps above guaranteed minimum | Minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Policyholder account balance above guaranteed minimum crediting rate | 1 | 1 | |||
1 -50 bps above guaranteed minimum | Maximum | |||||
Policyholder Account Balance [Line Items] | |||||
Policyholder account balance above guaranteed minimum crediting rate | 50 | 50 | |||
51 - 150 bps above guaranteed minimum | Minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Policyholder account balance above guaranteed minimum crediting rate | 51 | 51 | |||
51 - 150 bps above guaranteed minimum | Maximum | |||||
Policyholder Account Balance [Line Items] | |||||
Policyholder account balance above guaranteed minimum crediting rate | 150 | 150 | |||
Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Policyholder account balance above guaranteed minimum crediting rate | 150 | 150 | |||
Variable Annuities | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 323,156 | 327,124 | $ 344,150 | $ 344,945 | |
Variable Annuities | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 321,448 | 342,540 | |||
Variable Annuities | 1 -50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 1,708 | 1,610 | |||
Variable Annuities | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
Variable Annuities | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
Variable and Universal Life | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 1,752,083 | $ 2,084,680 | 1,729,523 | $ 2,052,065 | |
Variable and Universal Life | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 548,749 | 550,804 | |||
Variable and Universal Life | 1 -50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 359,398 | 3,741 | |||
Variable and Universal Life | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 526,535 | 724,407 | |||
Variable and Universal Life | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 317,401 | 450,571 | |||
Less than 1.00% | Variable Annuities | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 1% | 1% | |||
Account Values with Crediting Rates | $ 1,651 | 0 | |||
Less than 1.00% | Variable Annuities | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 1,651 | 0 | |||
Less than 1.00% | Variable Annuities | 1 -50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
Less than 1.00% | Variable Annuities | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
Less than 1.00% | Variable Annuities | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 0 | 0 | |||
Less than 1.00% | Variable and Universal Life | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 1% | 1% | |||
Account Values with Crediting Rates | $ 640 | 1,142 | |||
Less than 1.00% | Variable and Universal Life | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 1,142 | |||
Less than 1.00% | Variable and Universal Life | 1 -50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
Less than 1.00% | Variable and Universal Life | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
Less than 1.00% | Variable and Universal Life | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 640 | 0 | |||
1.00% - 1.99% | Variable Annuities | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 191,108 | 202,239 | |||
1.00% - 1.99% | Variable Annuities | Minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 1% | 1% | |||
1.00% - 1.99% | Variable Annuities | Maximum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 1.99% | 1.99% | |||
1.00% - 1.99% | Variable Annuities | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 189,516 | 200,629 | |||
1.00% - 1.99% | Variable Annuities | 1 -50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 1,592 | 1,610 | |||
1.00% - 1.99% | Variable Annuities | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
1.00% - 1.99% | Variable Annuities | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
1.00% - 1.99% | Variable and Universal Life | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 456,701 | 426,273 | |||
1.00% - 1.99% | Variable and Universal Life | Minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 1% | 1% | |||
1.00% - 1.99% | Variable and Universal Life | Maximum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 1.99% | 1.99% | |||
1.00% - 1.99% | Variable and Universal Life | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 17,633 | 47,280 | |||
1.00% - 1.99% | Variable and Universal Life | 1 -50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
1.00% - 1.99% | Variable and Universal Life | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 148,939 | 89,655 | |||
1.00% - 1.99% | Variable and Universal Life | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 290,129 | 289,338 | |||
2.00% - 2.99% | Variable Annuities | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 1,784 | 1,901 | |||
2.00% - 2.99% | Variable Annuities | Minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 2% | 2% | |||
2.00% - 2.99% | Variable Annuities | Maximum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 2.99% | 2.99% | |||
2.00% - 2.99% | Variable Annuities | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 1,784 | 1,901 | |||
2.00% - 2.99% | Variable Annuities | 1 -50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
2.00% - 2.99% | Variable Annuities | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
2.00% - 2.99% | Variable Annuities | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
2.00% - 2.99% | Variable and Universal Life | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 363,561 | 345,886 | |||
2.00% - 2.99% | Variable and Universal Life | Minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 2% | 2% | |||
2.00% - 2.99% | Variable and Universal Life | Maximum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 2.99% | 2.99% | |||
2.00% - 2.99% | Variable and Universal Life | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 4,463 | 671 | |||
2.00% - 2.99% | Variable and Universal Life | 1 -50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 15,422 | 0 | |||
2.00% - 2.99% | Variable and Universal Life | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 317,044 | 183,982 | |||
2.00% - 2.99% | Variable and Universal Life | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 26,632 | 161,233 | |||
3.00% - 4.00% | Variable Annuities | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 128,487 | 139,888 | |||
3.00% - 4.00% | Variable Annuities | Minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 3% | 3% | |||
3.00% - 4.00% | Variable Annuities | Maximum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 4% | 4% | |||
3.00% - 4.00% | Variable Annuities | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 128,371 | 139,888 | |||
3.00% - 4.00% | Variable Annuities | 1 -50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 116 | 0 | |||
3.00% - 4.00% | Variable Annuities | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
3.00% - 4.00% | Variable Annuities | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
3.00% - 4.00% | Variable and Universal Life | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 554,620 | 595,249 | |||
3.00% - 4.00% | Variable and Universal Life | Minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 3% | 3% | |||
3.00% - 4.00% | Variable and Universal Life | Maximum | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 4% | 4% | |||
3.00% - 4.00% | Variable and Universal Life | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 150,092 | 140,738 | |||
3.00% - 4.00% | Variable and Universal Life | 1 -50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 343,976 | 3,741 | |||
3.00% - 4.00% | Variable and Universal Life | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 60,552 | 450,770 | |||
3.00% - 4.00% | Variable and Universal Life | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 0 | 0 | |||
Greater than 4.00% | Variable Annuities | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 4% | 4% | |||
Account Values with Crediting Rates | $ 126 | 122 | |||
Greater than 4.00% | Variable Annuities | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 126 | 122 | |||
Greater than 4.00% | Variable Annuities | 1 -50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
Greater than 4.00% | Variable Annuities | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
Greater than 4.00% | Variable Annuities | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 0 | 0 | |||
Greater than 4.00% | Variable and Universal Life | |||||
Policyholder Account Balance [Line Items] | |||||
Range of Guaranteed Minimum Crediting Rates | 4% | 4% | |||
Account Values with Crediting Rates | $ 376,561 | 360,973 | |||
Greater than 4.00% | Variable and Universal Life | At guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 376,561 | 360,973 | |||
Greater than 4.00% | Variable and Universal Life | 1 -50 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
Greater than 4.00% | Variable and Universal Life | 51 - 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | 0 | 0 | |||
Greater than 4.00% | Variable and Universal Life | Greater than 150 bps above guaranteed minimum | |||||
Policyholder Account Balance [Line Items] | |||||
Account Values with Crediting Rates | $ 0 | $ 0 | |||
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Market Risk Benefits - Rollforw
Market Risk Benefits - Rollforward of Balances for Variable Annuity Products (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Variable Annuities | ||
Market Risk Benefit [Roll Forward] | ||
Balance, beginning of period | $ 398,254 | $ 796,913 |
Effect of cumulative changes in non-performance risk | 163,169 | 21,123 |
Balance, beginning of period, before effect of changes in non-performance risk | 561,423 | 818,036 |
Attributed fees collected | 27,304 | 31,799 |
Claims paid | (1,653) | (38) |
Interest accrual | 7,035 | 549 |
Actual in force different from expected | 2,229 | 2,255 |
Effect of changes in interest rates | 33,851 | (204,292) |
Effect of changes in equity markets | (54,966) | 71,053 |
Other adjustments | 0 | 0 |
Balance, end of period, before effect of changes in non-performance risk | 575,223 | 719,362 |
Effect of cumulative changes in non-performance risk | (178,897) | (107,951) |
Balance, end of period | 0 | 0 |
Balance, end of period | 396,326 | 611,411 |
Net amount at risk | $ 877,211 | $ 305,180 |
Weighted-average attained age of contractholders | 68 years | 66 years |
Less: Reinsured Market Risk Benefits | ||
Market Risk Benefit [Roll Forward] | ||
Balance, beginning of period | $ (398,254) | $ (796,913) |
Effect of cumulative changes in non-performance risk | 0 | 0 |
Balance, beginning of period, before effect of changes in non-performance risk | (398,254) | (796,913) |
Attributed fees collected | (27,304) | (31,799) |
Claims paid | 1,653 | 38 |
Interest accrual | (7,035) | (549) |
Actual in force different from expected | (2,229) | (2,255) |
Effect of changes in interest rates | (33,851) | 204,292 |
Effect of changes in equity markets | 54,966 | (71,053) |
Other adjustments | 15,728 | 86,828 |
Balance, end of period, before effect of changes in non-performance risk | (396,326) | (611,411) |
Effect of cumulative changes in non-performance risk | 0 | 0 |
Balance, end of period | (396,326) | (611,411) |
Total, Net of Reinsurance | ||
Market Risk Benefit [Roll Forward] | ||
Balance, beginning of period | 0 | 0 |
Effect of cumulative changes in non-performance risk | 163,169 | 21,123 |
Balance, beginning of period, before effect of changes in non-performance risk | 163,169 | 21,123 |
Attributed fees collected | 0 | 0 |
Claims paid | 0 | 0 |
Interest accrual | 0 | 0 |
Actual in force different from expected | 0 | 0 |
Effect of changes in interest rates | 0 | 0 |
Effect of changes in equity markets | 0 | 0 |
Other adjustments | 15,728 | 86,828 |
Balance, end of period, before effect of changes in non-performance risk | 178,897 | 107,951 |
Effect of cumulative changes in non-performance risk | (178,897) | (107,951) |
Balance, end of period | $ 0 | $ 0 |
Market Risk Benefits - Market R
Market Risk Benefits - Market Risk Benefits In Asset and Liability Positions (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Market risk benefit assets | $ 562,922 | $ 558,624 | ||||
Market risk benefit liabilities | 562,922 | 558,624 | ||||
Variable Annuities | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Market risk benefit assets | 562,922 | $ 755,053 | ||||
Market risk benefit liabilities | 562,922 | 755,053 | ||||
Net liability | $ 0 | $ 398,254 | $ 0 | $ 796,913 | $ 0 | $ 1,195,470 |
Reinsurance (Reinsurance amount
Reinsurance (Reinsurance amounts included in the Statements of Financial Position) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2021 | |
Effects of Reinsurance [Line Items] | ||||
Reinsurance recoverables | $ 3,195,287 | $ 3,098,248 | [1] | |
Policy loans | (212,479) | (212,063) | ||
Deferred policy acquisition cost | (361,655) | (351,874) | [1] | $ (244,218) |
Market risk benefit assets | 562,922 | 558,624 | ||
Other assets | 47,984 | 48,391 | [1] | |
Market risk benefit liabilities | 562,922 | 558,624 | ||
Other liabilities | 196,189 | 172,305 | ||
Impacts of Reinsurance | ||||
Effects of Reinsurance [Line Items] | ||||
Reinsurance recoverables | 3,195,287 | 3,098,248 | ||
Policy loans | (23,082) | (22,999) | ||
Deferred policy acquisition cost | (637,032) | (646,737) | ||
Deferred sales inducements | (37,515) | (38,146) | ||
Market risk benefit assets | 479,624 | 478,439 | ||
Other assets | 42,256 | 42,265 | ||
Market risk benefit liabilities | 83,298 | 80,185 | ||
Other liabilities | $ 120,976 | $ 115,351 | ||
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Reinsurance (Reinsurance Recove
Reinsurance (Reinsurance Recoverable by Counterparty) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | |
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | $ 3,195,287 | $ 3,098,248 | [1] |
Prudential Insurance | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | 480,064 | 456,633 | |
PAR U | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | 1,611,135 | 1,575,260 | |
PARCC | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | 464,565 | 464,142 | |
PAR Term | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | 268,770 | 258,169 | |
Term Re | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | 252,206 | 232,796 | |
DART | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | 85,369 | 73,702 | |
Pruco Life | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | 31,553 | 34,720 | |
Unaffiliated | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | $ 1,625 | $ 2,826 | |
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Reinsurance (Reinsurance amou_2
Reinsurance (Reinsurance amounts included in the Statement of Operations and Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Premiums: | |||
Direct | $ 62,583 | $ 63,330 | |
Ceded | (52,406) | (54,310) | |
Net premiums | 10,177 | 9,020 | [1] |
Policy charges and fee income: | |||
Direct | 86,513 | 95,926 | |
Ceded | (72,375) | (85,331) | |
Net policy charges and fee income | 14,138 | 10,595 | [1] |
Net investment income: | |||
Direct | 28,886 | 24,563 | |
Ceded | (226) | (194) | |
Net investment income | 28,660 | 24,369 | |
Asset administration fees: | |||
Direct | 8,776 | 10,502 | |
Ceded | (6,696) | (8,242) | |
Net asset administration fees | 2,080 | 2,260 | |
Realized investment gains (losses), net: | |||
Direct | (9,457) | 15,227 | |
Ceded | 1,159 | 493 | |
Realized investment gains (losses), net | (8,298) | 15,720 | [2] |
Change in value of market risk benefits, net of related hedging gain (loss): | |||
Direct | (13,801) | 128,811 | |
Ceded | (1,927) | (215,639) | |
Change in value of market risk benefits, net of related hedging gain (loss) | (15,728) | (86,828) | [2] |
Policyholders’ benefits (including change in reserves): | |||
Direct | 107,337 | 128,710 | |
Ceded | (88,998) | (114,875) | |
Net policyholders' benefits (including change in reserves) | 18,339 | 13,835 | [1] |
Change in estimates of liability for future policy benefits: | |||
Direct | (3,917) | (13,818) | |
Ceded | 2,475 | 12,641 | |
Net change in estimates of liability for future policy benefits | (1,442) | (1,177) | |
Interest credited to policyholders’ account balances: | |||
Direct | 18,022 | 19,797 | |
Ceded | (7,885) | (8,603) | |
Net interest credited to policyholders’ account balances | 10,137 | 11,194 | |
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization | (32,950) | (37,277) | |
Unaffiliated | |||
Policy charges and fee income: | |||
Ceded | (1,200) | (1,300) | |
Policyholders’ benefits (including change in reserves): | |||
Ceded | $ 0 | $ (100) | |
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[2]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Reinsurance (Life Insurance In
Reinsurance (Life Insurance In Force) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Reinsurance Disclosures [Abstract] | ||
Direct gross life insurance face amount in force | $ 154,115,666 | $ 155,729,264 |
Reinsurance ceded | (139,826,733) | (141,264,004) |
Net life insurance face amount in force | $ 14,288,933 | $ 14,465,260 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - Affiliated Entity | 24 Months Ended | 48 Months Ended | |||
Jul. 01, 2012 | Dec. 31, 2009 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2013 | |
PAR U | |||||
Effects of Reinsurance [Line Items] | |||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95% | ||||
PARCC | |||||
Effects of Reinsurance [Line Items] | |||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 90% | ||||
PAR Term | |||||
Effects of Reinsurance [Line Items] | |||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95% | ||||
Term Re | |||||
Effects of Reinsurance [Line Items] | |||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95% | ||||
DART | |||||
Effects of Reinsurance [Line Items] | |||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Income Tax Disclosure [Abstract] | |||
Income tax expense (benefit) | $ (1,440) | $ (19,943) | [1] |
Effective Income Tax Rate, Percent | 12.17% | 30.19% | |
Federal Statutory Income Tax Rate, Percent | 21% | ||
Book-income Alternative Minimum Tax Rate | 15% | ||
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Equity (Accumulated Other Compr
Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | [1] | $ (36,190) | ||
Income tax benefit (expense) | (10,004) | $ 10,678 | [2] | |
Ending Balance | 1,442 | |||
Foreign Currency Translation Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (1,214) | (988) | ||
Change in OCI before reclassifications | 100 | (67) | ||
Amounts reclassified from AOCI | 0 | 0 | ||
Income tax benefit (expense) | (22) | 16 | ||
Ending Balance | (1,136) | (1,039) | ||
Net Unrealized Investment Gains (Losses)(1) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (176,386) | 121,075 | ||
Change in OCI before reclassifications | 39,128 | (161,382) | ||
Amounts reclassified from AOCI | (361) | 1,289 | ||
Income tax benefit (expense) | (8,139) | 33,616 | ||
Ending Balance | (145,758) | (5,402) | ||
Interest Rate Remeasurement of Future Policy Benefits | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 12,504 | (34,788) | ||
Change in OCI before reclassifications | (6,958) | 22,482 | ||
Amounts reclassified from AOCI | 0 | 0 | ||
Income tax benefit (expense) | 1,463 | (4,722) | ||
Ending Balance | 7,009 | (17,028) | ||
Gain (loss) from Changes in Non-Performance Risk on Market Risk Benefits | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 128,906 | 16,688 | ||
Change in OCI before reclassifications | 15,727 | 86,829 | ||
Amounts reclassified from AOCI | 0 | 0 | ||
Income tax benefit (expense) | (3,306) | (18,232) | ||
Ending Balance | 141,327 | 85,285 | ||
Total Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (36,190) | 101,987 | ||
Change in OCI before reclassifications | 47,997 | (52,138) | ||
Amounts reclassified from AOCI | (361) | 1,289 | ||
Income tax benefit (expense) | (10,004) | 10,678 | ||
Ending Balance | 1,442 | 61,816 | ||
Net Unrealized Investment Gains (Losses) on Available-for-Sale Fixed Maturity Securities on which an allowance for credit loss has been recognized | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Ending Balance | 0 | |||
Cash flow hedges | Net Unrealized Investment Gains (Losses)(1) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 0 | (3,000) | ||
Ending Balance | $ 13,000 | $ 7,000 | ||
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts.[2]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Equity (Reclassification out of
Equity (Reclassification out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Net Unrealized Investment Gains (Losses)(1) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from AOCI | $ (361) | $ 1,289 |
Accumulated Other Comprehensive Income (Loss) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from AOCI | (361) | 1,289 |
Amounts reclassified from AOCI | Net Unrealized Investment Gains (Losses)(1) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from AOCI | 361 | (1,289) |
Amounts reclassified from AOCI | Accumulated Other Comprehensive Income (Loss) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from AOCI | 361 | (1,289) |
Amounts reclassified from AOCI | Available-for-sale | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net unrealized investment gains (losses): | (26) | (1,959) |
Amounts reclassified from AOCI | Currency/Interest rate | Cash flow hedges | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net unrealized investment gains (losses): | $ 387 | $ 670 |
Equity (Net Unrealized Investme
Equity (Net Unrealized Investment Gains (Losses) in AOCI on AFS Fixed Maturity Securities with Allowance for Credit Losses and All Other Investments) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 USD ($) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | $ (36,190) | [1] |
Ending Balance | 1,442 | |
Net Unrealized Investment Gains (Losses) on Available-for-Sale Fixed Maturity Securities on which an allowance for credit losses has been recognized | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (256,584) | |
Net investment gains (losses) on investments arising during the period | 48,010 | |
Reclassification adjustment for (gains) losses included in net income | (361) | |
Impact of net unrealized investment (gains) losses | 0 | |
Ending Balance | (208,935) | |
Deferred Policy Acquisition Costs and Other Costs | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (83,712) | |
Net investment gains (losses) on investments arising during the period | 0 | |
Reclassification adjustment for (gains) losses included in net income | 0 | |
Impact of net unrealized investment (gains) losses | 22,817 | |
Ending Balance | (60,895) | |
Future Policy Benefits and Policyholders’ Account Balances and other liabilities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 117,070 | |
Net investment gains (losses) on investments arising during the period | 0 | |
Reclassification adjustment for (gains) losses included in net income | 0 | |
Impact of net unrealized investment (gains) losses | (31,699) | |
Ending Balance | 85,371 | |
Income Tax Benefit (Expense) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 46,840 | |
Net investment gains (losses) on investments arising during the period | (10,081) | |
Reclassification adjustment for (gains) losses included in net income | 76 | |
Impact of net unrealized investment (gains) losses | 1,866 | |
Ending Balance | 38,701 | |
Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (176,386) | |
Net investment gains (losses) on investments arising during the period | 37,929 | |
Reclassification adjustment for (gains) losses included in net income | (285) | |
Impact of net unrealized investment (gains) losses | (7,016) | |
Ending Balance | $ (145,758) | |
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Feb. 28, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Feb. 28, 2022 USD ($) | Mar. 31, 2023 USD ($) policy | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | ||
Related Party Transaction [Line Items] | |||||||||
Commissions and fees | $ 14,138,000 | $ 10,595,000 | [1] | ||||||
Net investment income | 28,660,000 | 24,369,000 | |||||||
Other invested assets (includes $2,235 and $2,389 of assets measured at fair value at March 31, 2023 and December 31, 2022, respectively) | $ 129,528,000 | 133,763,000 | $ 129,528,000 | ||||||
Fee income from revenue sharing agreement | 2,080,000 | 2,260,000 | |||||||
Pruco Life | |||||||||
Related Party Transaction [Line Items] | |||||||||
Contributed Capital | $ 175,000,000 | 125,000,000 | $ 100,000,000 | $ 2,000,000 | $ 100,000,000 | ||||
Dividends | 0 | 0 | |||||||
Affiliated Entity | |||||||||
Related Party Transaction [Line Items] | |||||||||
Accrued interest receivable related to long-term notes receivable | 0 | 0 | 0 | ||||||
Revenues related to long-term notes receivable | 0 | 0 | |||||||
Line of credit facility, maximum borrowing capacity | 200,000,000 | ||||||||
Short-term debt to affiliates | 0 | 0 | 0 | ||||||
Interest expense related to loans payable | 0 | 0 | |||||||
Affiliated Entity | PAD | |||||||||
Related Party Transaction [Line Items] | |||||||||
Commissions and fees | 8,000,000 | 12,000,000 | |||||||
Affiliated Entity | PGIM | |||||||||
Related Party Transaction [Line Items] | |||||||||
Net investment income | 600,000 | 700,000 | |||||||
Affiliated Entity | ASTISI and PGIM Investments | |||||||||
Related Party Transaction [Line Items] | |||||||||
Fee income from revenue sharing agreement | 7,000,000 | 8,000,000 | |||||||
Affiliated Entity | PGIM Investments | |||||||||
Related Party Transaction [Line Items] | |||||||||
Fee income from revenue sharing agreement | 2,000,000 | 2,000,000 | |||||||
Prudential Financial Joint Ventures | |||||||||
Related Party Transaction [Line Items] | |||||||||
Net investment income | 0 | 500,000 | |||||||
Other invested assets (includes $2,235 and $2,389 of assets measured at fair value at March 31, 2023 and December 31, 2022, respectively) | 51,000,000 | 52,000,000 | 51,000,000 | ||||||
Prudential Financial | |||||||||
Related Party Transaction [Line Items] | |||||||||
Company's share of corporate expenses | $ 4,000,000 | 2,000,000 | |||||||
Number of Corporate Owned Life Insurance policies sold | policy | 1 | ||||||||
Prudential Insurance and Prudential Financial | |||||||||
Related Party Transaction [Line Items] | |||||||||
Life Insurance, Corporate or Bank Owned, amount | $ 2,946,000,000 | $ 3,070,000,000 | $ 2,946,000,000 | ||||||
Fees related to Life Insurance, Corporate or Bank Owned, amount | $ 6,000,000 | 7,000,000 | |||||||
Mortality risk retained for COLI policies | 10% | ||||||||
Maximum COLI Mortality Risk | $ 100,000 | ||||||||
Prudential Insurance | |||||||||
Related Party Transaction [Line Items] | |||||||||
Stock option program plan expense | 0 | 0 | |||||||
Deferred compensation program expense | 300,000 | 300,000 | |||||||
Pension plan expense | 300,000 | 300,000 | |||||||
Welfare plan expense | $ 400,000 | 300,000 | |||||||
Defined contribution plan, employer matching contribution, percent (up to) | 4% | ||||||||
Defined contribution plan, cost recognized | $ 200,000 | $ 100,000 | |||||||
Number of Corporate Owned Life Insurance policies sold | policy | 3 | ||||||||
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Related Party Transactions (Aff
Related Party Transactions (Affiliated Notes Receivable) (Details) - Affiliated Entity - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Total notes receivable - affiliated | $ 700 | $ 688 |
U.S. dollar fixed rate notes | ||
Related Party Transaction [Line Items] | ||
Total notes receivable - affiliated | $ 700 | $ 688 |
U.S. dollar fixed rate notes | Minimum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 0% | |
U.S. dollar fixed rate notes | Maximum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 14.85% |
Related Party Transactions (A_2
Related Party Transactions (Affiliated Asset Transfers) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | [1] | |
Related Party Transaction [Line Items] | |||
Realized Investment gains (losses), net | $ (8,298) | $ 15,720 | |
Affiliated Entity | Prudential Insurance August 2022 Purchase | |||
Related Party Transaction [Line Items] | |||
Fair Value | 21,389 | ||
Book Value | 19,630 | ||
APIC, Net of Tax Increase/(Decrease) | (1,390) | ||
Realized Investment gains (losses), net | $ 0 | ||
[1]Prior period amounts adjusted for the implementation of ASU 2018-12: Targeted Improvements to the Accounting for Long-Duration Contracts. |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Narratives) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Commitments and Contingent Liabilities [Line Items] | |||
Litigation and regulatory matters loss contingency, range of possible loss, maximum (less than) | $ 10 | ||
Commitments | Commercial mortgage loans | |||
Commitments and Contingent Liabilities [Line Items] | |||
Total outstanding mortgage loan commitments | 6 | $ 15 | |
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) | 50 | $ 62 | |
Purchase Commitment | |||
Commitments and Contingent Liabilities [Line Items] | |||
Change in allowance for credit loss expense (reversal) | $ 0 | $ 0 |