Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | May 13, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Year Focus | 2024 | |
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, 2024 | Dec. 31, 2023 |
ASSETS | ||
Fixed maturities, available for sale, at fair value (allowance for credit losses: 2024-$0; 2023-$4) (amortized cost: 2024-$2,574,841; 2023-$2,559,973) | $ 2,324,427 | $ 2,362,095 |
Fixed maturities, trading, at fair value (amortized cost: 2024-$25,294; 2023-$25,745) | 22,604 | 23,440 |
Equity securities, at fair value (cost: 2024-$4,920; 2023-$4,653) | 4,548 | 4,615 |
Policy loans | 1,116,711 | 1,115,096 |
Short-term investments | 13,394 | 5,959 |
Commercial mortgage and other loans (net of $1,153 and $1,162 allowance for credit losses at March 31, 2024 and December 31, 2023, respectively) | 263,600 | 239,629 |
Other invested assets (includes $24,332 and $4,387 of assets measured at fair value at March 31, 2024 and December 31, 2023, respectively) | 177,794 | 153,885 |
Total investments | 3,923,078 | 3,904,719 |
Cash and cash equivalents | 176,240 | 186,383 |
Deferred policy acquisition costs | 398,083 | 393,139 |
Accrued investment income | 64,442 | 53,906 |
Reinsurance recoverables | 4,008,437 | 3,603,225 |
Receivables from parent and affiliates | 64,166 | 24,502 |
Income tax assets | 133,862 | 68,079 |
Market risk benefit assets | 492,992 | 537,659 |
Other assets | 47,655 | 49,010 |
Separate account assets | 14,520,998 | 14,077,103 |
TOTAL ASSETS | 23,829,953 | 22,897,725 |
LIABILITIES | ||
Policyholders' account balance | 4,186,756 | 4,036,184 |
Future policy benefits | 2,389,895 | 2,398,443 |
Market risk benefit liabilities | 492,992 | 537,659 |
Payables to parent and affiliates | 1,185 | 9,380 |
Other liabilities | 1,002,953 | 470,830 |
Separate account liabilities | 14,520,998 | 14,077,103 |
Total liabilities | 22,594,779 | 21,529,599 |
EQUITY | ||
Common stock ($5 par value; 400,000 shares authorized, issued and outstanding) | 2,000 | 2,000 |
Additional paid-in capital | 1,032,513 | 1,032,513 |
Retained Earnings | 294,226 | 381,140 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (93,565) | (47,527) |
Total equity | 1,235,174 | 1,368,126 |
TOTAL LIABILITIES AND EQUITY | $ 23,829,953 | $ 22,897,725 |
Unaudited Interim Statements _2
Unaudited Interim Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Fixed Maturities, Available-for-sale, at fair value (AFS), allowance for credit loss | $ 0 | $ 4 |
Fixed Maturities, Available-for-sale, amortized cost | 2,574,841 | 2,559,973 |
Fixed maturities, trading, amortized cost | 25,294 | 25,745 |
Equity securities, at cost | 4,920 | 4,653 |
Commercial mortgage and other loans, allowance for credit losses | 1,153 | 1,162 |
Other invested assets, at fair value | $ 24,332 | $ 4,387 |
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, 2024 | Mar. 31, 2023 | |
REVENUES | ||
Premiums | $ 11,159 | $ 10,177 |
Policy charges and fee income | 329,584 | 14,138 |
Net investment income | 50,027 | 28,660 |
Asset administration fees | 2,622 | 2,080 |
Other income (loss) | 1,326 | 1,146 |
Realized Investment gains (losses), net | (4,591) | (8,298) |
Change in value of market risk benefits, net of related hedging gain (loss) | 21,341 | (15,728) |
TOTAL REVENUES | 411,468 | 32,175 |
BENEFITS AND EXPENSES | ||
Policyholders' benefits | 547,458 | 18,339 |
Change in estimates of liability for future policy benefits | (3,828) | (1,442) |
Interest credited to policyholders’ account balances | 20,022 | 10,137 |
Amortization of deferred policy acquisition costs | (25,585) | 5,017 |
General, administrative and other expense | 13,831 | 11,958 |
TOTAL BENEFITS AND EXPENSES | 551,898 | 44,009 |
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | (140,430) | (11,834) |
Income tax expense (benefit) | (53,516) | (1,440) |
NET INCOME (LOSS) | (86,914) | (10,394) |
Other comprehensive income (loss), before tax: | ||
Foreign currency translation adjustments | (100) | 100 |
Net unrealized investment gains (losses) | (43,298) | 38,767 |
Interest rate remeasurement of future policy benefits | 6,463 | (6,959) |
Gain (loss) from changes in non-performance risk on market risk benefits | (21,341) | 15,728 |
Total | (58,276) | 47,636 |
Less: Income tax expense (benefit) related to other comprehensive income (loss) | (12,238) | 10,004 |
Other comprehensive income (loss), net of taxes | (46,038) | 37,632 |
Comprehensive income (loss) | $ (132,952) | $ 27,238 |
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) | Total Equity | |
Beginning balance at Dec. 31, 2022 | [1] | $ 2,000 | $ 775,412 | $ 285,433 | $ (36,190) | $ 1,026,655 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Contributed capital | 175,000 | 175,000 | |||||
Comprehensive income (loss): | |||||||
NET INCOME (LOSS) | $ (10,394) | (10,394) | (10,394) | ||||
Other comprehensive income (loss), net of tax | 37,632 | 37,632 | 37,632 | ||||
Total comprehensive income (loss) | 27,238 | ||||||
Ending balance at Mar. 31, 2023 | 2,000 | 950,412 | 275,039 | 1,442 | 1,228,893 | ||
Beginning balance at Dec. 31, 2023 | 2,000 | 1,032,513 | 381,140 | (47,527) | 1,368,126 | ||
Comprehensive income (loss): | |||||||
NET INCOME (LOSS) | (86,914) | (86,914) | (86,914) | ||||
Other comprehensive income (loss), net of tax | $ (46,038) | (46,038) | (46,038) | ||||
Total comprehensive income (loss) | (132,952) | ||||||
Ending balance at Mar. 31, 2024 | $ 2,000 | $ 1,032,513 | $ 294,226 | $ (93,565) | $ 1,235,174 | ||
[1]Prior period amounts reflect 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, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
NET INCOME (LOSS) | $ (86,914) | $ (10,394) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Policy charges and fee income | (377,781) | (1,435) |
Interest credited to policyholders’ account balances | 20,022 | 10,137 |
Realized investment (gains) losses, net | 4,591 | 8,298 |
Change in value of market risk benefits, net of related hedging gain (loss) | (21,341) | 15,728 |
Change in: | ||
Future policy benefits and other insurance liabilities | 98,729 | 58,089 |
Reinsurance recoverables | (29,618) | (19,962) |
Accrued investment income | (10,536) | (5,842) |
Net payables to/receivables from parent and affiliates | 6,156 | (1,720) |
Deferred policy acquisition costs | (41,669) | (9,781) |
Income taxes | (53,545) | (1,464) |
Derivatives, net | 8,363 | (1,722) |
Other, net | 464,674 | (31,721) |
Cash flows from (used in) operating activities | (18,869) | 8,211 |
Proceeds from the sale/maturity/prepayment of: | ||
Fixed maturities, available-for-sale | 28,718 | 33,170 |
Fixed maturities, trading | 451 | 329 |
Equity securities | 188 | 208 |
Policy loans | 6,754 | 7,113 |
Ceded policy loans | (24,007) | (485) |
Short-term investments | 5,449 | 2,000 |
Commercial mortgage and other loans | 570 | 2,927 |
Other invested assets | (353) | |
Other invested assets | 375 | |
Payments for the purchase/origination of: | ||
Fixed maturities, available-for-sale | (42,933) | (367,590) |
Equity securities | (273) | (27) |
Policy loans | (8,661) | (5,515) |
Ceded policy loans | 1,451 | 415 |
Short-term investments | (12,858) | (7,000) |
Commercial mortgage and other loans | (24,916) | (14,509) |
Other invested assets | (3,106) | (3,317) |
Notes receivable from parent and affiliates, net | (11,117) | (8) |
Derivatives, net | (181) | (298) |
Cash flows from (used in) investing activities | (84,096) | (352,940) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Policyholders’ account deposits | 199,546 | 138,201 |
Ceded policyholders’ account deposits | (73,595) | (73,649) |
Policyholders’ account withdrawals | (100,143) | (131,444) |
Ceded policyholders’ account withdrawals | 66,255 | 60,912 |
Net change in securities sold under agreement to repurchase and cash collateral for loaned securities | 0 | 3,325 |
Contributed / (return of) capital | 0 | 175,000 |
Drafts outstanding | (3,652) | (239) |
Other, net | 4,411 | 142 |
Cash flows from (used in) financing activities | 92,822 | 172,248 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (10,143) | (172,481) |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 186,383 | 255,767 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 176,240 | $ 83,286 |
Unaudited Interim Consolidated
Unaudited Interim Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Non-cash activities | $ 0 | |
Affiliated Entity | PURE and PICA | ||
Non-cash activities | $ 204 |
Business and Basis of Presentat
Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
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 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 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, 2023. 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 ("MRBs"); 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, 2024 | |
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, 2024, and as of the date of this filing. ASUs not listed below were assessed and determined to be either not applicable or not material. ASUs issued but not yet adopted as of March 31, 2024 Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures This ASU requires entities, including those with a single operating or reportable segment, to provide more detailed information about significant segment expenses that are regularly provided to the chief operating decision maker. The ASU also clarifies that all of the disclosures required in the guidance apply to all public entities, including those with a single operating or reportable segment. Effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted, using the retrospective method. The Company is currently assessing the impact of the ASU on the Company's Financial Statements and Notes to the Financial Statements. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 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 $ 52,046 $ 0 $ 2,242 $ 0 $ 49,804 Obligations of U.S. states and their political subdivisions 178,895 180 4,571 0 174,504 Foreign government bonds 89,137 110 17,096 0 72,151 U.S. public corporate securities 1,476,050 6,608 176,492 0 1,306,166 U.S. private corporate securities 239,170 1,216 10,625 0 229,761 Foreign public corporate securities 185,262 605 25,505 0 160,362 Foreign private corporate securities 216,638 3,017 17,501 0 202,154 Asset-backed securities(1) 18,392 61 715 0 17,738 Commercial mortgage-backed securities 103,552 0 6,925 0 96,627 Residential mortgage-backed securities(2) 15,699 171 710 0 15,160 Total fixed maturities, available-for-sale $ 2,574,841 $ 11,968 $ 262,382 $ 0 $ 2,324,427 (1) Includes credit-tranched securities collateralized by loan obligations and education loans. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. December 31, 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 $ 52,196 $ 0 $ 1,154 $ 0 $ 51,042 Obligations of U.S. states and their political subdivisions 184,419 952 2,833 0 182,538 Foreign government bonds 95,189 248 14,693 0 80,744 U.S. public corporate securities 1,485,406 13,428 147,901 0 1,350,933 U.S. private corporate securities 227,342 1,978 8,884 0 220,436 Foreign public corporate securities 185,601 1,173 21,989 0 164,785 Foreign private corporate securities 190,545 5,102 14,791 0 180,856 Asset-backed securities(1) 19,440 40 969 0 18,511 Commercial mortgage-backed securities 104,055 0 7,356 0 96,699 Residential mortgage-backed securities(2) 15,780 195 420 4 15,551 Total fixed maturities, available-for-sale $ 2,559,973 $ 23,116 $ 220,990 $ 4 $ 2,362,095 (1) Includes credit-tranched securities collateralized by loan obligations and education loans. (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 fixed maturity, available-for-sale 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, 2024 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 $ 47,910 $ 2,019 $ 1,895 $ 223 $ 49,805 $ 2,242 Obligations of U.S. states and their political subdivisions 62,045 809 68,749 3,762 130,794 4,571 Foreign government bonds 6,615 345 60,867 16,751 67,482 17,096 U.S. public corporate securities 134,178 3,495 919,800 172,997 1,053,978 176,492 U.S. private corporate securities 53,707 864 116,803 9,761 170,510 10,625 Foreign public corporate securities 21,352 275 116,680 25,230 138,032 25,505 Foreign private corporate securities 19,546 385 95,331 17,116 114,877 17,501 Asset-backed securities 8,334 687 2,322 28 10,656 715 Commercial mortgage-backed securities 0 0 96,627 6,925 96,627 6,925 Residential mortgage-backed securities 26 2 10,662 708 10,688 710 Total fixed maturities, available-for-sale $ 353,713 $ 8,881 $ 1,489,736 $ 253,501 $ 1,843,449 $ 262,382 December 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 $ 49,081 $ 936 $ 1,962 $ 218 $ 51,043 $ 1,154 Obligations of U.S. states and their political subdivisions 22,856 186 61,445 2,647 84,301 2,833 Foreign government bonds 5,656 91 69,066 14,602 74,722 14,693 U.S. public corporate securities 86,203 1,688 913,776 146,213 999,979 147,901 U.S. private corporate securities 27,883 366 117,409 8,518 145,292 8,884 Foreign public corporate securities 5,029 135 115,462 21,854 120,491 21,989 Foreign private corporate securities 5,007 51 98,159 14,740 103,166 14,791 Asset-backed securities 7,899 914 4,775 55 12,674 969 Commercial mortgage-backed securities 0 0 96,699 7,356 96,699 7,356 Residential mortgage-backed securities 146 2 10,722 418 10,868 420 Total fixed maturities, available-for-sale $ 209,760 $ 4,369 $ 1,489,475 $ 216,621 $ 1,699,235 $ 220,990 As of March 31, 2024 and December 31, 2023, the gross unrealized losses on fixed maturity, available-for-sale securities without an allowance of $259 million and $218 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 million and $3 million, respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. As of March 31, 2024, the $254 million of gross unrealized losses of twelve months or more were concentrated in the Company’s corporate securities within the utility, consumer non-cyclical and finance sectors. As of December 31, 2023, the $217 million of gross unrealized losses of twelve months or more were concentrated in the Company’s corporate securities within the utility, finance and consumer non-cyclical sectors. 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, 2023, the Company concluded that an adjustment to earnings for credit losses related to these fixed maturity securities was not warranted at March 31, 2024. This conclusion was based on a detailed analysis of the underlying credit and cash flows for each security. Gross unrealized losses are primarily attributable to increases in interest rates, general credit spread widening and foreign currency exchange rate movements. As of March 31, 2024, 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, available-for-sale by contractual maturities, as of the date indicated: March 31, 2024 Amortized Cost Fair Value (in thousands) Fixed maturities, available-for-sale: Due in one year or less $ 81,243 $ 77,627 Due after one year through five years 394,300 385,027 Due after five years through ten years 231,972 227,175 Due after ten years 1,729,683 1,505,073 Asset-backed securities 18,392 17,738 Commercial mortgage-backed securities 103,552 96,627 Residential mortgage-backed securities 15,699 15,160 Total fixed maturities, available-for-sale $ 2,574,841 $ 2,324,427 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, available-for-sale for the periods indicated: Three Months Ended March 31, 2024 2023 (in thousands) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 2,155 $ 886 Proceeds from maturities/prepayments 26,605 32,121 Gross investment gains from sales and maturities 64 29 Gross investment losses from sales and maturities (169) (415) (Addition to) release of allowance for credit losses 4 360 (1) Excludes activity from non-cash related proceeds due to the timing of trade settlements of $0.0 million and $0.2 million for the three months ended March 31, 2024 and 2023, respectively. The following tables set forth the activity in the allowance for credit losses for fixed maturity, available-for-sale securities, as of the dates indicated: Three Months Ended March 31, 2024 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of period $ 0 $ 0 $ 0 $ 0 $ 0 $ 4 $ 4 Reductions for securities sold during the period 0 0 0 0 0 0 0 Additions (reductions) on securities with previous allowance 0 0 0 0 0 (4) (4) Balance, end of period $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 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 See Note 2 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 for additional information about the Company’s methodology for developing our allowance and expected losses. For the three months ended March 31, 2024 the net decrease in the allowance for credit losses on available-for-sale securities was primarily related to a recovery on a structured security. 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, 2024 and December 31, 2023. 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 $(0.4) million and $0.6 million during the three months ended March 31, 2024 and 2023, respectively. Equity Securities The net change in unrealized gains (losses) from equity securities still held at period end, recorded within “Other income (loss),” was $(0.3) million and $0.0 million during the three months ended March 31, 2024 and 2023, 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, 2024 December 31, 2023 Amount % of Total Amount % of Total Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 75,152 28.4 % $ 71,289 29.6 % Hospitality 13,955 5.3 14,070 5.8 Industrial 78,849 29.8 70,633 29.3 Office 8,058 3.0 8,122 3.4 Other 33,903 12.8 24,587 10.2 Retail 23,216 8.8 23,327 9.7 Total commercial mortgage loans 233,133 88.1 212,028 88.0 Agricultural property loans 31,620 11.9 28,763 12.0 Total commercial mortgage and agricultural property loans 264,753 100.0 % 240,791 100.0 % Allowance for credit losses (1,153) (1,162) Total net commercial mortgage and agricultural property loans $ 263,600 $ 239,629 As of March 31, 2024, the commercial mortgage and agricultural property loans were secured by properties geographically dispersed throughout the United States (with the largest concentrations in Texas (9%), Florida (9%), Washington (8%)), and included loans secured by properties in Europe (9%) and Mexico (4%). The following tables set 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, 2024 2023 Commercial Mortgage Loans Agricultural Property Loans Total Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance, beginning of period $ 1,107 $ 55 $ 1,162 $ 405 $ 3 $ 408 Addition to (release of) allowance for expected losses 0 (9) (9) 38 53 91 Allowance, end of period $ 1,107 $ 46 $ 1,153 $ 443 $ 56 $ 499 See Note 2 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 for additional information about the Company's methodology for developing our allowance and expected losses. For the three months ended March 31, 2024, the net decrease in the allowance for credit losses on commercial mortgage and other loans was primarily related to net positive credit migration, partially offset by loan originations. 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. 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, 2024 Amortized Cost by Origination Year 2024 2023 2022 2021 2020 Prior Revolving Loans Total (in thousands) Commercial mortgage loans Loan-to-Value Ratio: 0%-59.99% $ 0 $ 9,427 $ 19,844 $ 767 $ 0 $ 58,506 $ 0 $ 88,544 60%-69.99% 18,973 37,766 15,000 1,962 2,198 20,868 0 96,767 70%-79.99% 3,000 31,852 0 0 0 5,955 0 40,807 80% or greater 0 0 0 0 0 7,015 0 7,015 Total $ 21,973 $ 79,045 $ 34,844 $ 2,729 $ 2,198 $ 92,344 $ 0 $ 233,133 Debt Service Coverage Ratio: Greater than 1.2x $ 21,973 $ 76,634 $ 34,844 $ 2,729 $ 2,198 $ 84,507 $ 0 $ 222,885 1.0 - 1.2x 0 2,411 0 0 0 6,008 0 8,419 Less than 1.0x 0 0 0 0 0 1,829 0 1,829 Total $ 21,973 $ 79,045 $ 34,844 $ 2,729 $ 2,198 $ 92,344 $ 0 $ 233,133 Agricultural property loans Loan-to-Value Ratio: 0%-59.99% $ 2,000 $ 10,937 $ 1,025 $ 1,035 $ 0 $ 958 $ 1,320 $ 17,275 60%-69.99% 0 2,000 12,345 0 0 0 0 14,345 70%-79.99% 0 0 0 0 0 0 0 0 80% or greater 0 0 0 0 0 0 0 0 Total $ 2,000 $ 12,937 $ 13,370 $ 1,035 $ 0 $ 958 $ 1,320 $ 31,620 Debt Service Coverage Ratio: Greater than 1.2x $ 2,000 $ 12,937 $ 13,370 $ 1,035 $ 0 $ 958 $ 1,320 $ 31,620 1.0 - 1.2x 0 0 0 0 0 0 0 0 Less than 1.0x 0 0 0 0 0 0 0 0 Total $ 2,000 $ 12,937 $ 13,370 $ 1,035 $ 0 $ 958 $ 1,320 $ 31,620 December 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% $ 9,444 $ 19,879 $ 772 $ 0 $ 17,239 $ 42,159 $ 89,493 60%-69.99% 37,809 15,000 1,962 2,198 15,091 5,836 77,896 70%-79.99% 32,105 0 0 0 3,885 1,595 37,585 80% or greater 0 0 0 0 1,007 6,047 7,054 Total $ 79,358 $ 34,879 $ 2,734 $ 2,198 $ 37,222 $ 55,637 $ 212,028 Debt Service Coverage Ratio: Greater than 1.2x $ 76,929 $ 34,879 $ 2,734 $ 2,198 $ 36,293 $ 48,677 $ 201,710 1.0 - 1.2x 2,429 0 0 0 0 6,047 8,476 Less than 1.0x 0 0 0 0 929 913 1,842 Total $ 79,358 $ 34,879 $ 2,734 $ 2,198 $ 37,222 $ 55,637 $ 212,028 Agricultural property loans Loan-to-Value Ratio: 0%-59.99% $ 11,358 $ 1,035 $ 1,047 $ 0 $ 0 $ 978 $ 14,418 60%-69.99% 2,000 12,345 0 0 0 0 14,345 70%-79.99% 0 0 0 0 0 0 0 80% or greater 0 0 0 0 0 0 0 Total $ 13,358 $ 13,380 $ 1,047 $ 0 $ 0 $ 978 $ 28,763 Debt Service Coverage Ratio: Greater than 1.2x $ 13,358 $ 13,380 $ 1,047 $ 0 $ 0 $ 978 $ 28,763 1.0 - 1.2x 0 0 0 0 0 0 0 Less than 1.0x 0 0 0 0 0 0 0 Total $ 13,358 $ 13,380 $ 1,047 $ 0 $ 0 $ 978 $ 28,763 See Note 2 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 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, 2024 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 $ 233,133 $ 0 $ 0 $ 0 $ 233,133 $ 0 Agricultural property loans 31,620 0 0 0 31,620 0 Total $ 264,753 $ 0 $ 0 $ 0 $ 264,753 $ 0 (1) As of March 31, 2024, 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, 2023. . December 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 $ 212,028 $ 0 $ 0 $ 0 $ 212,028 $ 0 Agricultural property loans 28,763 0 0 0 28,763 0 Total $ 240,791 $ 0 $ 0 $ 0 $ 240,791 $ 0 (1) As of December 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, 2023. For both the three months ended March 31, 2024 and 2023, 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, 2024 and December 31, 2023. Other Invested Assets The following table sets forth the composition of “Other invested assets,” as of the dates indicated: March 31, 2024 December 31, 2023 (in thousands) LPs/LLCs: Equity method: Private equity $ 97,048 $ 90,107 Hedge funds 49,444 48,488 Real estate-related 6,932 6,965 Subtotal equity method 153,424 145,560 Fair value: Private equity 243 249 Hedge funds 11 19 Real estate-related 3,840 4,119 Subtotal fair value 4,094 4,387 Total LPs/LLCs 157,518 149,947 Derivative instruments 20,238 0 Other 38 3,938 Total other invested assets $ 177,794 $ 153,885 Accrued Investment Income The following table sets forth the composition of “Accrued investment income,” as of the dates indicated: March 31, 2024 December 31, 2023 (in thousands) Fixed maturities $ 26,915 $ 26,672 Equity securities 92 1 Commercial mortgage and other loans 1,111 948 Policy loans 35,286 25,675 Short-term investments and cash equivalents 1,038 610 Total accrued investment income $ 64,442 $ 53,906 There were no write-downs on accrued investment income for both the three months ended March 31, 2024 and 2023. Net Investment Income The following table sets forth “Net investment income” by investment type, for the periods indicated: Three Months Ended March 31, 2024 2023 (in thousands) Fixed maturities, available-for-sale $ 27,636 $ 21,117 Fixed maturities, trading 149 157 Equity securities 91 91 Commercial mortgage and other loans 3,241 1,679 Policy loans 12,804 2,525 Other invested assets 4,119 1,478 Short-term investments and cash equivalents 3,295 2,641 Gross investment income 51,335 29,688 Less: investment expenses (1,308) (1,028) Net investment income $ 50,027 $ 28,660 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, 2024 2023 (in thousands) Fixed maturities(1) $ (101) $ (26) Commercial mortgage and other loans 9 (91) Derivatives (4,489) (8,241) Short term investments and cash equivalents (10) 60 Realized investment gains (losses), net $ (4,591) $ (8,298) (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, 2024 December 31, 2023 (in thousands) Fixed maturity securities, available-for-sale with an allowance $ (3) $ 0 Fixed maturity securities, available-for-sale without an allowance (250,411) (197,874) Derivatives designated as cash flow hedges(1) 7,899 5,246 Other investments 383 357 Net unrealized gains (losses) on investments $ (242,132) $ (192,271) (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, 2024 and December 31, 2023, the Company had no repurchase agreements. |
Derivatives and Hedging
Derivatives and Hedging | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Hedging | 4. 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, 2023. 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, 2024 December 31, 2023 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 $ 188,066 $ 9,504 $ (2,881) $ 169,101 $ 7,865 $ (4,257) Total Derivatives Designated as Hedge Accounting Instruments: $ 188,066 $ 9,504 $ (2,881) $ 169,101 $ 7,865 $ (4,257) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 195,200 $ 348 $ (530) $ 88,200 $ 36 $ (2,063) Credit Credit Default Swaps 0 0 0 0 0 0 Currency/Interest Rate Foreign Currency Swaps 47,592 2,055 (588) 39,965 1,563 (597) Foreign Currency Foreign Currency Forwards 9,891 95 0 9,550 7 (290) Equity Equity Options 1,511,036 77,332 (65,174) 1,288,555 30,679 (43,354) Total Derivatives Not Qualifying as Hedge Accounting Instruments: $ 1,763,719 $ 79,830 $ (66,292) $ 1,426,270 $ 32,285 $ (46,304) Total Derivatives(1)(2) $ 1,951,785 $ 89,334 $ (69,173) $ 1,595,371 $ 40,150 $ (50,561) (1) Excludes embedded derivatives which contain multiple underlying risks. The fair value of these embedded derivatives was a net liability of $200 million and $168 million as of March 31, 2024 and December 31, 2023, respectively included in “Policyholders’ account balances" and "Reinsurance recoverables". (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, 2024 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 89,334 $ (69,096) $ 20,238 $ (19,054) $ 1,184 Total Assets $ 89,334 $ (69,096) $ 20,238 $ (19,054) $ 1,184 Offsetting of Financial Liabilities: Derivatives $ 69,173 $ (69,173) $ 0 $ 0 $ 0 Total Liabilities $ 69,173 $ (69,173) $ 0 $ 0 $ 0 December 31, 2023 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 40,150 $ (40,150) $ 0 $ 0 $ 0 Total Assets $ 40,150 $ (40,150) $ 0 $ 0 $ 0 Offsetting of Financial Liabilities: Derivatives $ 50,561 $ (42,247) $ 8,314 $ (8,314) $ 0 Total Liabilities $ 50,561 $ (42,247) $ 8,314 $ (8,314) $ 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 on 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, 2023. 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, 2024 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 $ (95) $ 0 $ 465 $ 482 $ 2,653 Total cash flow hedges (95) 0 465 482 2,653 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 1,554 0 0 0 0 Currency 197 0 0 0 0 Currency/Interest Rate 618 0 0 8 0 Credit 0 0 0 0 0 Equity 31,818 0 0 0 0 Embedded Derivatives (38,581) 0 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (4,394) 0 0 8 0 Total $ (4,489) $ 0 $ 465 $ 490 $ 2,653 Three Months Ended March 31, 2023 Realized Investment Gains (Losses) 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) Presented below is a rollforward of current period cash flow hedges in AOCI before taxes: (in thousands) Balance, December 31, 2023 $ 5,246 Amount recorded in AOCI Currency/Interest Rate 3,505 Total amount recorded in AOCI 3,505 Amount reclassified from AOCI to income Currency/Interest Rate (852) Total amount reclassified from AOCI to income (852) Balance, March 31, 2024 $ 7,899 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, 2024 values, it is estimated that a pre-tax gain of $2 million is expected to be reclassified from AOCI to earnings during the subsequent twelve months ending March 31, 2025. 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, 2024 and December 31, 2023. 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, 2024 | |
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 prices in active markets for similar assets and liabilities, quoted 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, 2023. 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, 2024 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 $ 49,804 $ 0 $ $ 49,804 Obligations of U.S. states and their political subdivisions 0 174,504 0 174,504 Foreign government bonds 0 72,151 0 72,151 U.S. corporate public securities 0 1,306,166 0 1,306,166 U.S. corporate private securities 0 214,635 15,126 229,761 Foreign corporate public securities 0 160,362 0 160,362 Foreign corporate private securities 0 197,224 4,930 202,154 Asset-backed securities(2) 0 17,738 0 17,738 Commercial mortgage-backed securities 0 77,469 19,158 96,627 Residential mortgage-backed securities 0 15,160 0 15,160 Subtotal 0 2,285,213 39,214 2,324,427 Market risk benefit assets 0 0 492,992 492,992 Fixed maturities, trading 0 22,604 0 22,604 Equity securities 0 70 4,478 4,548 Short-term investments 4,953 6,941 0 11,894 Cash equivalents 5,989 155,649 0 161,638 Other invested assets(3) 0 89,334 0 (69,096) 20,238 Reinsurance recoverables 0 0 98,083 98,083 Receivables from parent and affiliates 0 0 11,117 11,117 Subtotal excluding separate account assets 10,942 2,559,811 645,884 (69,096) 3,147,541 Separate account assets(4)(5) 0 13,337,472 0 13,337,472 Total assets $ 10,942 $ 15,897,283 $ 645,884 $ (69,096) $ 16,485,013 Market risk benefit liabilities $ 0 $ 0 $ 492,992 $ $ 492,992 Policyholders' account balances 0 0 297,683 297,683 Payables to parent and affiliates 0 69,173 0 (69,173) 0 Total liabilities $ 0 $ 69,173 $ 790,675 $ (69,173) $ 790,675 December 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 $ 51,042 $ 0 $ $ 51,042 Obligations of U.S. states and their political subdivisions 0 182,538 0 182,538 Foreign government bonds 0 80,744 0 80,744 U.S. corporate public securities 0 1,350,933 0 1,350,933 U.S. corporate private securities 0 205,814 14,622 220,436 Foreign corporate public securities 0 164,785 0 164,785 Foreign corporate private securities 0 175,849 5,007 180,856 Asset-backed securities(2) 0 18,511 0 18,511 Commercial mortgage-backed securities 0 77,495 19,204 96,699 Residential mortgage-backed securities 0 15,551 0 15,551 Subtotal 0 2,323,262 38,833 2,362,095 Market risk benefit assets 0 0 537,659 537,659 Fixed maturities, trading 0 23,440 0 23,440 Equity securities 0 74 4,541 4,615 Short-term investments 0 3,459 0 3,459 Cash equivalents 24,928 160,330 0 185,258 Other invested assets(3) 0 40,150 0 (40,150) 0 Reinsurance recoverables 0 0 69,745 69,745 Subtotal excluding separate account assets 24,928 2,550,715 650,778 (40,150) 3,186,271 Separate account assets(4)(5) 0 12,914,412 0 12,914,412 Total assets $ 24,928 $ 15,465,127 $ 650,778 $ (40,150) $ 16,100,683 Market risk benefit liabilities $ 0 $ 0 $ 537,659 $ $ 537,659 Policyholders' account balances 0 0 237,316 237,316 Payables to parent and affiliates 0 50,561 0 (42,247) 8,314 Total liabilities $ 0 $ 50,561 $ 774,975 $ (42,247) $ 783,289 (1) “Netting” amounts represent cash collateral of $(0.1) million and $(2) million as of March 31, 2024 and December 31, 2023, respectively. (2) Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (3) Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value ("NAV") per share (or its equivalent) as a practical expedient. As of March 31, 2024 and December 31, 2023, the fair value of such investments was $4.1 million and $4.4 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. As of March 31, 2024 and December 31, 2023, the fair value of such investments was $1,184 million and $1,163 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, 2024 Fair Value Valuation Unobservable Minimum Maximum Weighted Impact of Increase in Input on Fair (in thousands) Assets: Corporate securities(2) $ 12,833 Discounted cash flow Discount rate 10.13 % 13.29 % 12.08 % Decrease Commercial mortgage-backed securities $ 19,158 Discounted cash flow Liquidity premium 0.60 % 0.75 % 0.66 % Decrease Market risk benefit assets(3) $ 492,992 Discounted cash flow Lapse rate(4) 1 % 20 % Increase Spread over SOFR(5) 0.33 % 1.80 % Increase Utilization rate(6) 38 % 95 % Decrease Withdrawal rate See table footnote (7) below. Mortality rate(8) 0 % 15 % Increase Equity volatility curve 15 % 25 % Decrease Liabilities: Market risk benefit liabilities(3) $ 492,992 Discounted cash flow Lapse rate(4) 1 % 20 % Decrease Spread over SOFR(5) 0.33 % 1.80 % Decrease Utilization rate(6) 38 % 95 % Increase Withdrawal rate See table footnote (7) below. Mortality rate(8) 0 % 15 % Decrease Equity volatility curve 15 % 25 % Increase Policyholders' account balances(9) $ 297,683 Discounted cash flow Lapse rate(4) 1 % 80 % Decrease Spread over SOFR(5) 0.33 % 1.80 % Decrease Mortality rate(8) 0 % 23 % Decrease Option budget(10) (1) % 7 % Increase December 31, 2023 Fair Value Valuation Unobservable Inputs Minimum Maximum Weighted Impact of Increase (in thousands) Assets: Commercial mortgage-backed securities $ 19,204 Discounted cash flow Liquidity premium 0.60 % 0.75 % 0.69 % Decrease Market risk benefit assets(3) $ 537,659 Discounted cash flow Lapse rate(4) 1 % 20 % Increase Spread over SOFR(5) 0.41 % 1.91 % Increase Utilization rate(6) 38 % 95 % Decrease Withdrawal rate See table footnote (7) below. Mortality rate(8) 0 % 15 % Increase Equity volatility curve 15 % 25 % Decrease Liabilities: Market risk benefit liabilities(3) $ 537,659 Discounted cash flow Lapse rate(4) 1 % 20 % Decrease Spread over SOFR(5) 0.41 % 1.91 % Decrease Utilization rate(6) 38 % 95 % Increase Withdrawal rate See table footnote (7) below. Mortality rate(8) 0 % 15 % Decrease Equity volatility curve 15 % 25 % Increase Policyholders' account balances(9) $ 237,316 Discounted cash flow Lapse rate(4) 1 % 80 % Decrease Spread over SOFR(5) 0.41 % 1.85 % Decrease Mortality rate(8) 0 % 23 % Decrease Option budget(10) (1) % 7 % 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 accumulation, 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 balances. (5) The spread over the Secured Overnight Financing Rate (“SOFR”) swap curve represents the premium added to the proxy for the risk-free rate (SOFR) 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, 2024 and December 31, 2023, respectively. This spread includes an estimate of non-performance risk ("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 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 March 31, 2024 and December 31, 2023, the minimum withdrawal rate assumption is 81% and the maximum withdrawal rate assumption may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%. (8) 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 a 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 budget 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 increase, 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 be accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for prepayment rates. The impact of these factors on average life and economics varies with the deal structure and tranche subordination. Market Risk Benefits – The Company expects efficient benefit utilization and withdrawal rates to generally be correlated with lapse rates. However, behavior is generally highly dependent on the facts and circumstances surrounding the individual contractholder, such as their liquidity needs or tax situation, which could drive lapse behavior independent of other contractholder behavior assumptions. To the extent more efficient contractholder behavior results in greater in-the-moneyness at the contract level, lapse rates may decline for those contracts. Similarly, to the extent that increases in equity volatility are correlated with overall declines in the capital markets, lapse rates may decline as contracts become more in-the-money. Changes in Level 3 Assets and Liabilities – The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods (excluding MRBs disclosed in Note 10). When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of 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, 2024(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) $ 19,629 $ (68) $ 733 $ (51) $ 0 $ (187) $ 0 $ 0 $ 0 $ 20,056 $ (68) Structured securities(3) 19,204 47 0 0 0 (93) 0 0 0 19,158 56 Other assets: Equity securities 4,541 (335) 272 0 0 0 0 0 0 4,478 (335) Reinsurance recoverables(4) 69,745 (5,964) 34,302 0 0 0 0 0 0 98,083 (35,533) Receivables from parent and affiliates 0 0 11,117 0 0 0 0 0 0 11,117 0 Liabilities: Policyholders' account balances(4) (237,316) (32,725) 0 0 (27,642) 0 0 0 0 (297,683) (1,472) Three Months Ended March 31, 2024 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 $ (13) $ (8) $ 0 $ 0 $ (12) Other assets: Equity securities 0 (335) 0 0 0 (335) 0 Reinsurance recoverables (5,964) 0 0 0 (35,533) 0 0 Liabilities: Policyholders' account balances (32,725) 0 0 0 (1,472) 0 0 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 recoverables 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 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 recoverables 1,357 0 0 0 1,357 0 0 Liabilities: Policyholders' account balances (10,832) 0 0 0 (13,914) 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 and foreign corporate private securities. (3) Includes commercial mortgage-backed securities. (4) Purchases/issuances and settlements for Policyholders' account balances and Reinsurance recoverables are presented net in the rollforward. (5) Excludes MRB assets of $493 million and $563 million and MRB liabilities of $493 million and $563 million for period ending March 31, 2024 and 2023, respectively. See Note 10 for additional information. 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, 2024 Fair Value Carrying Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 260,082 $ 260,082 $ 263,600 Policy loans 0 0 1,116,711 1,116,711 1,116,711 Short-term investments 1,500 0 0 1,500 1,500 Cash and cash equivalents 14,602 0 0 14,602 14,602 Accrued investment income 0 64,442 0 64,442 64,442 Reinsurance recoverables 0 0 21,774 21,774 23,385 Receivables from parent and affiliates 0 53,049 0 53,049 53,049 Other assets 0 3,468 0 3,468 3,468 Total assets $ 16,102 $ 120,959 $ 1,398,567 $ 1,535,628 $ 1,540,757 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 141,634 $ 30,402 $ 172,036 $ 173,647 Cash collateral for loaned securities 0 0 0 0 0 Payables to parent and affiliates 0 1,185 0 1,185 1,185 Other liabilities 0 49,276 0 49,276 49,276 Total liabilities $ 0 $ 192,095 $ 30,402 $ 222,497 $ 224,108 December 31, 2023 Fair Value Carrying Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 237,993 $ 237,993 $ 239,629 Policy loans 0 0 1,115,096 1,115,096 1,115,096 Short-term investments 2,500 0 0 2,500 2,500 Cash and cash equivalents 1,125 0 0 1,125 1,125 Accrued investment income 0 53,906 0 53,906 53,906 Reinsurance recoverables 0 0 22,155 22,155 23,537 Receivables from parent and affiliates 0 24,502 0 24,502 24,502 Other assets 0 4,363 0 4,363 4,363 Total assets $ 3,625 $ 82,771 $ 1,375,244 $ 1,461,640 $ 1,464,658 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 148,542 $ 30,945 $ 179,487 $ 180,868 Payables to parent and affiliates 0 1,066 0 1,066 1,066 Other liabilities 0 52,027 0 52,027 52,027 Total liabilities $ 0 $ 201,635 $ 30,945 $ 232,580 $ 233,961 (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, 2024 | |
Deferred Charges, Insurers [Abstract] | |
Deferred Policy Acquisition Costs and Deferred Reinsurance | DEFERRED POLICY ACQUISITION COSTS AND DEFERRED REINSURANCE Deferred Policy Acquisition Costs ("DAC") 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: Three Months Ended March 31, 2024 Term Life Variable / Universal Life Total (in thousands) Balance, beginning of period $ 82,007 $ 311,131 $ 393,138 Capitalization 4,894 11,191 16,085 Amortization expense (2,028) (3,692) (5,720) Other(1) 0 (5,420) (5,420) Balance, end of period $ 84,873 $ 313,210 $ 398,083 (1) Other includes the impact of the Universal Life reinsurance transaction with Prudential Arizona Reinsurance Universal Company (“PAR U”) and PURE. See Note 11 for additional information. Three Months Ended 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 Deferred Reinsurance Losses ("DRL") 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: Three Months Ended March 31, 2024 2023 Variable Annuities (in thousands) Balance, beginning of period $ 15,968 $ 17,425 Amortization expense (358) (378) Other 1 0 Balance, end of period $ 15,611 $ 17,047 Deferred Reinsurance Gains ("DRG") The following tables show a rollforward of DRG balances for variable and universal life products, which are the only lines of business that contain a DRG balance, along with a reconciliation to the Company's total DRG balance: Three Months Ended March 31, 2024 2023 Variable / Universal Life (in thousands) Balance, beginning of period $ 0 $ 0 Amortization expense (2,246) 0 Other(1) 198,641 0 Balance, end of period $ 196,395 $ 0 (1) Other includes the impact of the Universal Life reinsurance transaction with PAR U, PURE and Prudential Insurance. See Note 11 for additional information. |
Separate Accounts
Separate Accounts | 3 Months Ended |
Mar. 31, 2024 | |
Insurance [Abstract] | |
Separate Accounts | SEPARATE ACCOUNTS The Company issues variable annuity and variable life insurance contracts through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contractholder. Most variable annuity and variable life insurance contracts are offered with both separate and general account options . See Note 9 for additional information. The assets supporting the variable portion of variable annuity and variable life insurance contracts are carried at fair value and reported as “Separate account assets” with an equivalent amount reported as “Separate account liabilities”. The liabilities related to the net amount at risk are reflected within future policy benefits or market risk benefits. Amounts assessed against the contractholders for mortality, administration, and other services are included within revenue in “Policy charges and fee income” and changes in liabilities for minimum guarantees are generally included in “Policyholders’ benefits” or “Realized investment gains (losses), net”. Separate Account Assets The aggregate fair value of assets, by major investment asset category, supporting separate accounts is as follows: March 31, 2024 December 31, 2023 (in thousands) Asset Type: Mutual funds: Equity $ 8,840,722 $ 8,299,099 Fixed Income 3,751,231 3,901,137 Other 745,519 714,176 Other invested assets 1,183,526 1,162,691 Total $ 14,520,998 $ 14,077,103 For the three months ended March 31, 2024 and year ended December 31, 2023, there were no transfers of assets, other than cash, from the general account to a separate account; therefore, no gains or losses were recorded. Separate Account Liabilities The balances of and changes in separate account liabilities as of and for the periods indicated are as follows: Three Months Ended March 31, 2024 Variable Annuities Variable Life Total (in thousands) Balance, beginning of period $ 9,064,177 $ 5,012,926 $ 14,077,103 Deposits 14,902 51,409 66,311 Investment performance 387,889 370,777 758,666 Policy charges (53,559) (26,763) (80,322) Surrenders and withdrawals (266,474) (17,144) (283,618) Benefit payments (1,506) (10,415) (11,921) Net transfers (to) from general account (3,588) (11,402) (14,990) Other 178 9,591 9,769 Balance, end of period $ 9,142,019 $ 5,378,979 $ 14,520,998 Cash surrender value(1) $ 9,014,812 $ 5,258,835 $ 14,273,647 Three Months Ended 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) 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, 2024 | |
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 ("DPL"); and • Additional Insurance Reserves ("AIR") 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. Three Months Ended March 31, 2024 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 1,389,421 $ 0 $ 1,389,421 Effect of cumulative changes in discount rate assumptions, beginning of period 29,313 0 29,313 Balance at original discount rate, beginning of period 1,418,734 0 1,418,734 Effect of actual variances from expected experience and other activity (21,792) 90 (21,702) Adjusted balance, beginning of period 1,396,942 90 1,397,032 Issuances 24,393 639 25,032 Net premiums / considerations collected (40,799) (729) (41,528) Interest accrual 16,394 0 16,394 Balance at original discount rate, end of period 1,396,930 0 1,396,930 Effect of cumulative changes in discount rate assumptions, end of period (56,897) 0 (56,897) Balance, end of period $ 1,340,033 $ 0 $ 1,340,033 Three Months Ended March 31, 2024 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 2,619,569 $ 18,489 $ 2,638,058 Effect of cumulative changes in discount rate assumptions, beginning of period 44,322 1,510 45,832 Balance at original discount rate, beginning of period 2,663,891 19,999 2,683,890 Effect of actual variances from expected experience and other activity (29,994) 62 (29,932) Adjusted balance, beginning of period 2,633,897 20,061 2,653,958 Issuances 24,393 639 25,032 Interest accrual 32,144 177 32,321 Benefit payments (32,730) (654) (33,384) Other adjustments (899) 1 (898) Balance at original discount rate, end of period 2,656,805 20,224 2,677,029 Effect of cumulative changes in discount rate assumptions, end of period (105,493) (1,796) (107,289) Balance, end of period $ 2,551,312 $ 18,428 $ 2,569,740 Three Months Ended March 31, 2024 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, pre-flooring $ 1,211,279 $ 18,428 $ 1,229,707 Flooring impact, end of period 14 0 14 Balance, end of period, post-flooring $ 1,211,293 $ 18,428 $ 1,229,721 Less: Reinsurance recoverables 1,036,843 18,428 1,055,271 Balance after reinsurance recoverables, end of period, post-flooring $ 174,450 $ 0 $ 174,450 Three Months Ended 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 and other activity (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 Three Months Ended 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 Three Months Ended 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 recoverables 1,036,995 17,336 1,054,331 Balance after reinsurance recoverables, end of period, post-flooring $ 151,341 $ 0 $ 151,341 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: Three Months Ended March 31, 2024 Term Life Fixed Annuities ($ in thousands) Undiscounted expected future gross premiums $ 3,007,181 $ 0 Discounted expected future gross premiums (at original discount rate) $ 2,011,489 $ 0 Discounted expected future gross premiums (at current discount rate) $ 1,938,769 $ 0 Undiscounted expected future benefits and expenses $ 4,286,686 $ 26,109 Interest accrual $ 15,749 $ 177 Gross premiums $ 59,673 $ 950 Weighted-average duration of the liability in years (at original discount rate) 10 6 Weighted-average duration of the liability in years (at current discount rate) 10 5 Weighted-average interest rate (at original discount rate) 5.26 % 3.71 % Weighted-average interest rate (at current discount rate) 5.31 % 5.21 % Three Months Ended 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 % For additional information regarding observable market information and the techniques used to determine the interest rate assumptions seen above, see Note 2 to the Company's Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. 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, respectively. In the first three months of 2024, there was an immaterial impact to net income for non-participating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts. In the first three months of 2023, there was a $3 million gain in net income for non-participating 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. Deferred Profit Liability The balances of and changes in DPL as of and for the periods indicated are as follows: Three Months Ended March 31, 2024 2023 Fixed Annuities (in thousands) Balance, beginning of period, post flooring $ 1,365 $ 1,684 Effect of actual variances from expected experience and other activity 34 (107) Adjusted balance, beginning of period 1,399 1,577 Profits deferred 216 0 Interest accrual 14 13 Amortization (53) (45) Balance, end of period, post-flooring 1,576 1,545 Less: Reinsurance recoverables 1,576 1,545 Balance after reinsurance recoverables, end of period $ 0 $ 0 The following table provides supplemental information related to the balances of and changes in DPL, included in the disaggregated table above, on a gross (direct and assumed) basis, as of and for the period indicated: Three Months Ended March 31, 2024 2023 Fixed Annuities (in thousands) Revenue(1) $ (211) $ 139 Interest accrual 14 13 (1) Represents the gross premiums collected in changes in DPL. Additional Insurance Reserves AIR represents the additional liability for annuitization, death, or other insurance benefits, including guaranteed minimum death benefits ("GMDB") and guaranteed minimum income benefits ("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: Three Months Ended March 31, 2024 2023 (in thousands) Balance including amounts in AOCI, beginning of period, post-flooring $ 986,166 $ 827,478 Flooring impact and amounts in AOCI 56,487 91,115 Balance, excluding amounts in AOCI, beginning of period, pre-flooring 1,042,653 918,593 Effect of actual variances from expected experience and other activity 17,115 (342) Adjusted balance, beginning of period 1,059,768 918,251 Assessments collected(1) 23,439 14,827 Interest accrual 8,986 7,840 Benefits paid (5,955) (3,995) Balance, excluding amounts in AOCI, end of period, pre-flooring 1,086,238 936,923 Flooring impact and amounts in AOCI (103,881) (65,818) Balance, including amounts in AOCI, end of period, post-flooring 982,357 871,105 Less: Reinsurance recoverables 956,650 834,640 Balance after reinsurance recoverables, including amounts in AOCI, end of period $ 25,707 $ 36,465 (1) Represents the portion of gross assessments required to fund the future policy benefits. Three Months Ended March 31, 2024 2023 ($ in thousands) Interest accrual $ 8,986 $ 7,840 Gross assessments $ 56,772 $ 46,941 Weighted-average duration of the liability in years (at original discount rate) 27 28 Weighted-average interest rate (at original discount rate) 3.43 % 3.42 % Future Policy Benefits Reconciliation The following table presents the reconciliation of the ending balances from the above rollforwards, Benefit Reserves, DPL, and AIR, 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: Three Months Ended March 31, 2024 2023 (in thousands) Benefit reserves, end of period, post-flooring $ 1,229,721 $ 1,205,672 Deferred profit liability, end of period, post-flooring 1,576 1,545 Additional insurance reserves, including amounts in AOCI, end of period, post-flooring 982,357 871,105 Subtotal of amounts disclosed above 2,213,654 2,078,322 Other Future policy benefits reserves(1) 176,241 149,309 Total Future policy benefits $ 2,389,895 $ 2,227,631 (1) Primarily 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, DPL, and AIR, 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: Three Months Ended March 31, 2024 Revenues(1) Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 950 $ 59,673 $ 0 $ 60,623 Deferred profit liability (211) 0 0 (211) Additional insurance reserves 0 0 56,772 56,772 Total $ 739 $ 59,673 $ 56,772 $ 117,184 Three Months Ended March 31, 2023 Revenues(1) Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 112 $ 61,365 $ 0 $ 61,477 Deferred profit liability 139 0 0 139 Additional insurance reserves 0 0 46,941 46,941 Total $ 251 $ 61,365 $ 46,941 $ 108,557 (1) Represents "Gross premiums" for benefit reserves; "Revenue" for DPL and "Gross assessments" for AIR. Three Months Ended March 31, 2024 Interest Expense Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 177 $ 15,749 $ 0 $ 15,926 Deferred profit liability 14 0 0 14 Additional insurance reserves 0 0 8,986 8,986 Total $ 191 $ 15,749 $ 8,986 $ 24,926 Three Months Ended March 31, 2023 Interest Expense Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 171 $ 15,338 $ 0 $ 15,509 Deferred profit liability 13 0 0 13 Additional insurance reserves 0 0 7,840 7,840 Total $ 184 $ 15,338 $ 7,840 $ 23,362 Policyholders' Account Balances The balances of and changes in policyholders' account balances as of and for the periods ended are as follows: Three Months Ended March 31, 2024 Fixed Annuities Variable Annuities Variable Life / Universal Life Total ($ in thousands) Balance, beginning of period $ 35,025 $ 592,581 $ 3,028,746 $ 3,656,352 Deposits 1,104 100,818 54,248 156,170 Interest credited 212 3,909 15,275 19,396 Policy charges (14) (49) (36,657) (36,720) Surrenders and withdrawals (1,473) (11,039) (33,506) (46,018) Benefit payments (155) (713) (2,681) (3,549) Net transfers (to) from separate account 0 3,588 11,402 14,990 Change in market value and other adjustments(1) 0 29,526 3,199 32,725 Balance, end of period $ 34,699 $ 718,621 $ 3,040,026 $ 3,793,346 Unearned revenue reserve 383,842 Other 9,568 Total Policyholders' account balance $ 4,186,756 Weighted-average crediting rate 2.43 % 2.38 % 2.01 % 2.08 % Net amount at risk(2) $ 0 $ 0 $ 34,482,721 $ 34,482,721 Cash surrender value(3) $ 8,414 $ 690,349 $ 2,708,499 $ 3,407,262 Three Months Ended March 31, 2023 Fixed Annuities(4) Variable Annuities Variable Life / Universal Life Total ($ in thousands) Balance, beginning of period $ 39,406 $ 327,124 $ 2,084,680 $ 2,451,210 Deposits 707 25,558 57,220 83,485 Interest credited 252 2,015 13,972 16,239 Policy charges (14) (40) (36,360) (36,414) Surrenders and withdrawals (2,027) (8,163) (29,361) (39,551) Benefit payments (154) (1,647) (422) (2,223) Net transfers (to) from separate account 0 (913) (28,189) (29,102) Change in market value and other adjustments(1) 0 (131) 10,436 10,305 Balance, end of period $ 38,170 $ 343,803 $ 2,071,976 $ 2,453,949 Unearned revenue reserve 328,956 Other(4) 9,386 Total Policyholders' account balance $ 2,792,291 Weighted-average crediting rate 2.59 % 2.40 % 2.69 % 2.65 % Net amount at risk (2) $ 0 $ 0 $ 33,887,277 $ 33,887,277 Cash surrender value(3) $ 10,074 $ 322,593 $ 1,733,643 $ 2,066,310 (1) Primarily relates to changes in the value of embedded derivative instruments associated with the indexed options of certain products. (2) The net amount at risk calculation includes both general and separate account balances. (3) Represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. (4) Prior period amounts have been updated to conform to current period presentation. The Company issues variable life and universal life insurance contracts which may also include a “no-lapse guarantee” where the Company contractually guarantees to the contractholder a death benefit even when the account value drops to zero, as long as the “no-lapse guarantee” premium is paid. The net amount at risk is generally defined as the current 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 contractholder mortality, contract lapses, and premium pattern, as well as interest rate and equity market returns. The Company also issues annuity contracts that provide certain death benefit and/or living benefit guarantees and are accounted for as MRBs. See Note 10 for additional information, including the net amount at risk associated with these guarantees. 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, 2024 Range of Guaranteed Minimum Crediting Rate(1) 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) Fixed Annuities Less than 1.00% $ 0 $ 0 $ 0 $ 0 $ 0 1.00% - 1.99% 1,042 0 0 0 1,042 2.00% - 2.99% 18,421 0 0 0 18,421 3.00% - 4.00% 7,586 0 0 0 7,586 Greater than 4.00% 0 0 0 0 0 Total $ 27,049 $ 0 $ 0 $ 0 $ 27,049 Variable Annuities Less than 1.00% $ 1,720 $ 0 $ 0 $ 0 $ 1,720 1.00% - 1.99% 168,733 6,572 0 0 175,305 2.00% - 2.99% 1,329 0 0 0 1,329 3.00% - 4.00% 107,051 1,017 0 0 108,068 Greater than 4.00% 132 0 0 0 132 Total $ 278,965 $ 7,589 $ 0 $ 0 $ 286,554 Variable Life / Universal Life Less than 1.00% $ 0 $ 0 $ 0 $ 29,485 $ 29,485 1.00% - 1.99% 23,881 0 279,047 192,989 495,917 2.00% - 2.99% 4,372 159,463 197,155 16,753 377,743 3.00% - 4.00% 247,602 259,014 899,849 0 1,406,465 Greater than 4.00% 370,186 0 0 0 370,186 Total $ 646,041 $ 418,477 $ 1,376,051 $ 239,227 $ 2,679,796 March 31, 2023 Range of Guaranteed Minimum Crediting Rate(1) 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) Fixed Annuities(2) Less than 1.00% $ 0 $ 0 $ 0 $ 0 $ 0 1.00% - 1.99% 1,284 0 0 0 1,284 2.00% - 2.99% 20,243 0 0 0 20,243 3.00% - 4.00% 9,099 0 0 0 9,099 Greater than 4.00% 0 0 0 0 0 Total $ 30,626 $ 0 $ 0 $ 0 $ 30,626 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 Life / 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 (1) Excludes contracts without minimum guaranteed crediting rates, such as funds with indexed-linked crediting options. (2) Prior period amounts have been updated to conform to current period presentation. Unearned Revenue Reserve ("URR") The balances of and changes in URR as of and for the periods ended are as follows: Three Months Ended March 31, 2024 2023 Variable Life / Universal Life (in thousands) Balance, beginning of period $ 370,258 $ 313,711 Unearned revenue 17,995 19,030 Amortization expense (4,411) (3,785) Balance, end of period $ 383,842 $ 328,956 Less: Reinsurance recoverables 103,852 85,048 Balance after reinsurance recoverables, end of period $ 279,990 $ 243,908 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: Three Months Ended March 31, 2024 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 301,771 $ (301,771) $ 0 Effect of cumulative changes in non-performance risk 100,377 0 100,377 Balance, beginning of period, before effect of changes in non-performance risk 402,148 (301,771) 100,377 Attributed fees collected 26,214 (26,214) 0 Claims paid (761) 761 0 Interest accrual 5,813 (5,813) 0 Actual in force different from expected 518 (518) 0 Effect of changes in interest rates (78,746) 78,746 0 Effect of changes in equity markets (73,358) 73,358 0 Issuances 650 (650) 0 Other adjustments 585 (585) 0 Effect of changes in current period counterparty non-performance risk 0 (21,341) (21,341) Balance, end of period, before effect of changes in non-performance risk 283,063 (204,027) 79,036 Effect of cumulative changes in non-performance risk (79,036) 0 (79,036) Balance, end of period $ 204,027 $ (204,027) $ 0 Three Months Ended 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 The Company issues certain variable annuity insurance contracts where the Company contractually guarantees to the contractholder a return of no less than (1) total deposits made to the contract adjusted for any partial withdrawals plus a minimum return, and/or (2) the highest anniversary 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 Company also issues indexed variable annuity contracts for which the return is tied to the return of specific indices 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 upon death. In certain of these indexed variable annuity contracts, the Company also contractually guarantees to the contractholder withdrawal benefits payable during specific periods. For 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 following table presents accompanying information to the rollforward table above. March 31, 2024 March 31, 2023 Variable Annuities ($ in thousands) Net amount at risk(1) $ 680,353 $ 877,211 Weighted-average attained age of contractholders 70 68 (1) For contracts with multiple benefit features, the highest net amount at risk for each contract is included. The table below reconciles MRB asset and liability positions as of the following dates: March 31, 2024 March 31, 2023 Variable Annuities (in thousands) Direct and assumed $ 144,482 $ 83,298 Ceded 348,510 479,624 Total market risk benefit assets $ 492,992 $ 562,922 Direct and assumed $ 348,510 $ 479,624 Ceded 144,482 83,298 Total market risk benefit liabilities $ 492,992 $ 562,922 Net balance $ 0 $ 0 |
Policyholders' Liabilities
Policyholders' Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
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 ("DPL"); and • Additional Insurance Reserves ("AIR") 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. Three Months Ended March 31, 2024 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 1,389,421 $ 0 $ 1,389,421 Effect of cumulative changes in discount rate assumptions, beginning of period 29,313 0 29,313 Balance at original discount rate, beginning of period 1,418,734 0 1,418,734 Effect of actual variances from expected experience and other activity (21,792) 90 (21,702) Adjusted balance, beginning of period 1,396,942 90 1,397,032 Issuances 24,393 639 25,032 Net premiums / considerations collected (40,799) (729) (41,528) Interest accrual 16,394 0 16,394 Balance at original discount rate, end of period 1,396,930 0 1,396,930 Effect of cumulative changes in discount rate assumptions, end of period (56,897) 0 (56,897) Balance, end of period $ 1,340,033 $ 0 $ 1,340,033 Three Months Ended March 31, 2024 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 2,619,569 $ 18,489 $ 2,638,058 Effect of cumulative changes in discount rate assumptions, beginning of period 44,322 1,510 45,832 Balance at original discount rate, beginning of period 2,663,891 19,999 2,683,890 Effect of actual variances from expected experience and other activity (29,994) 62 (29,932) Adjusted balance, beginning of period 2,633,897 20,061 2,653,958 Issuances 24,393 639 25,032 Interest accrual 32,144 177 32,321 Benefit payments (32,730) (654) (33,384) Other adjustments (899) 1 (898) Balance at original discount rate, end of period 2,656,805 20,224 2,677,029 Effect of cumulative changes in discount rate assumptions, end of period (105,493) (1,796) (107,289) Balance, end of period $ 2,551,312 $ 18,428 $ 2,569,740 Three Months Ended March 31, 2024 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, pre-flooring $ 1,211,279 $ 18,428 $ 1,229,707 Flooring impact, end of period 14 0 14 Balance, end of period, post-flooring $ 1,211,293 $ 18,428 $ 1,229,721 Less: Reinsurance recoverables 1,036,843 18,428 1,055,271 Balance after reinsurance recoverables, end of period, post-flooring $ 174,450 $ 0 $ 174,450 Three Months Ended 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 and other activity (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 Three Months Ended 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 Three Months Ended 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 recoverables 1,036,995 17,336 1,054,331 Balance after reinsurance recoverables, end of period, post-flooring $ 151,341 $ 0 $ 151,341 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: Three Months Ended March 31, 2024 Term Life Fixed Annuities ($ in thousands) Undiscounted expected future gross premiums $ 3,007,181 $ 0 Discounted expected future gross premiums (at original discount rate) $ 2,011,489 $ 0 Discounted expected future gross premiums (at current discount rate) $ 1,938,769 $ 0 Undiscounted expected future benefits and expenses $ 4,286,686 $ 26,109 Interest accrual $ 15,749 $ 177 Gross premiums $ 59,673 $ 950 Weighted-average duration of the liability in years (at original discount rate) 10 6 Weighted-average duration of the liability in years (at current discount rate) 10 5 Weighted-average interest rate (at original discount rate) 5.26 % 3.71 % Weighted-average interest rate (at current discount rate) 5.31 % 5.21 % Three Months Ended 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 % For additional information regarding observable market information and the techniques used to determine the interest rate assumptions seen above, see Note 2 to the Company's Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. 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, respectively. In the first three months of 2024, there was an immaterial impact to net income for non-participating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts. In the first three months of 2023, there was a $3 million gain in net income for non-participating 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. Deferred Profit Liability The balances of and changes in DPL as of and for the periods indicated are as follows: Three Months Ended March 31, 2024 2023 Fixed Annuities (in thousands) Balance, beginning of period, post flooring $ 1,365 $ 1,684 Effect of actual variances from expected experience and other activity 34 (107) Adjusted balance, beginning of period 1,399 1,577 Profits deferred 216 0 Interest accrual 14 13 Amortization (53) (45) Balance, end of period, post-flooring 1,576 1,545 Less: Reinsurance recoverables 1,576 1,545 Balance after reinsurance recoverables, end of period $ 0 $ 0 The following table provides supplemental information related to the balances of and changes in DPL, included in the disaggregated table above, on a gross (direct and assumed) basis, as of and for the period indicated: Three Months Ended March 31, 2024 2023 Fixed Annuities (in thousands) Revenue(1) $ (211) $ 139 Interest accrual 14 13 (1) Represents the gross premiums collected in changes in DPL. Additional Insurance Reserves AIR represents the additional liability for annuitization, death, or other insurance benefits, including guaranteed minimum death benefits ("GMDB") and guaranteed minimum income benefits ("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: Three Months Ended March 31, 2024 2023 (in thousands) Balance including amounts in AOCI, beginning of period, post-flooring $ 986,166 $ 827,478 Flooring impact and amounts in AOCI 56,487 91,115 Balance, excluding amounts in AOCI, beginning of period, pre-flooring 1,042,653 918,593 Effect of actual variances from expected experience and other activity 17,115 (342) Adjusted balance, beginning of period 1,059,768 918,251 Assessments collected(1) 23,439 14,827 Interest accrual 8,986 7,840 Benefits paid (5,955) (3,995) Balance, excluding amounts in AOCI, end of period, pre-flooring 1,086,238 936,923 Flooring impact and amounts in AOCI (103,881) (65,818) Balance, including amounts in AOCI, end of period, post-flooring 982,357 871,105 Less: Reinsurance recoverables 956,650 834,640 Balance after reinsurance recoverables, including amounts in AOCI, end of period $ 25,707 $ 36,465 (1) Represents the portion of gross assessments required to fund the future policy benefits. Three Months Ended March 31, 2024 2023 ($ in thousands) Interest accrual $ 8,986 $ 7,840 Gross assessments $ 56,772 $ 46,941 Weighted-average duration of the liability in years (at original discount rate) 27 28 Weighted-average interest rate (at original discount rate) 3.43 % 3.42 % Future Policy Benefits Reconciliation The following table presents the reconciliation of the ending balances from the above rollforwards, Benefit Reserves, DPL, and AIR, 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: Three Months Ended March 31, 2024 2023 (in thousands) Benefit reserves, end of period, post-flooring $ 1,229,721 $ 1,205,672 Deferred profit liability, end of period, post-flooring 1,576 1,545 Additional insurance reserves, including amounts in AOCI, end of period, post-flooring 982,357 871,105 Subtotal of amounts disclosed above 2,213,654 2,078,322 Other Future policy benefits reserves(1) 176,241 149,309 Total Future policy benefits $ 2,389,895 $ 2,227,631 (1) Primarily 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, DPL, and AIR, 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: Three Months Ended March 31, 2024 Revenues(1) Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 950 $ 59,673 $ 0 $ 60,623 Deferred profit liability (211) 0 0 (211) Additional insurance reserves 0 0 56,772 56,772 Total $ 739 $ 59,673 $ 56,772 $ 117,184 Three Months Ended March 31, 2023 Revenues(1) Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 112 $ 61,365 $ 0 $ 61,477 Deferred profit liability 139 0 0 139 Additional insurance reserves 0 0 46,941 46,941 Total $ 251 $ 61,365 $ 46,941 $ 108,557 (1) Represents "Gross premiums" for benefit reserves; "Revenue" for DPL and "Gross assessments" for AIR. Three Months Ended March 31, 2024 Interest Expense Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 177 $ 15,749 $ 0 $ 15,926 Deferred profit liability 14 0 0 14 Additional insurance reserves 0 0 8,986 8,986 Total $ 191 $ 15,749 $ 8,986 $ 24,926 Three Months Ended March 31, 2023 Interest Expense Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 171 $ 15,338 $ 0 $ 15,509 Deferred profit liability 13 0 0 13 Additional insurance reserves 0 0 7,840 7,840 Total $ 184 $ 15,338 $ 7,840 $ 23,362 Policyholders' Account Balances The balances of and changes in policyholders' account balances as of and for the periods ended are as follows: Three Months Ended March 31, 2024 Fixed Annuities Variable Annuities Variable Life / Universal Life Total ($ in thousands) Balance, beginning of period $ 35,025 $ 592,581 $ 3,028,746 $ 3,656,352 Deposits 1,104 100,818 54,248 156,170 Interest credited 212 3,909 15,275 19,396 Policy charges (14) (49) (36,657) (36,720) Surrenders and withdrawals (1,473) (11,039) (33,506) (46,018) Benefit payments (155) (713) (2,681) (3,549) Net transfers (to) from separate account 0 3,588 11,402 14,990 Change in market value and other adjustments(1) 0 29,526 3,199 32,725 Balance, end of period $ 34,699 $ 718,621 $ 3,040,026 $ 3,793,346 Unearned revenue reserve 383,842 Other 9,568 Total Policyholders' account balance $ 4,186,756 Weighted-average crediting rate 2.43 % 2.38 % 2.01 % 2.08 % Net amount at risk(2) $ 0 $ 0 $ 34,482,721 $ 34,482,721 Cash surrender value(3) $ 8,414 $ 690,349 $ 2,708,499 $ 3,407,262 Three Months Ended March 31, 2023 Fixed Annuities(4) Variable Annuities Variable Life / Universal Life Total ($ in thousands) Balance, beginning of period $ 39,406 $ 327,124 $ 2,084,680 $ 2,451,210 Deposits 707 25,558 57,220 83,485 Interest credited 252 2,015 13,972 16,239 Policy charges (14) (40) (36,360) (36,414) Surrenders and withdrawals (2,027) (8,163) (29,361) (39,551) Benefit payments (154) (1,647) (422) (2,223) Net transfers (to) from separate account 0 (913) (28,189) (29,102) Change in market value and other adjustments(1) 0 (131) 10,436 10,305 Balance, end of period $ 38,170 $ 343,803 $ 2,071,976 $ 2,453,949 Unearned revenue reserve 328,956 Other(4) 9,386 Total Policyholders' account balance $ 2,792,291 Weighted-average crediting rate 2.59 % 2.40 % 2.69 % 2.65 % Net amount at risk (2) $ 0 $ 0 $ 33,887,277 $ 33,887,277 Cash surrender value(3) $ 10,074 $ 322,593 $ 1,733,643 $ 2,066,310 (1) Primarily relates to changes in the value of embedded derivative instruments associated with the indexed options of certain products. (2) The net amount at risk calculation includes both general and separate account balances. (3) Represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. (4) Prior period amounts have been updated to conform to current period presentation. The Company issues variable life and universal life insurance contracts which may also include a “no-lapse guarantee” where the Company contractually guarantees to the contractholder a death benefit even when the account value drops to zero, as long as the “no-lapse guarantee” premium is paid. The net amount at risk is generally defined as the current 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 contractholder mortality, contract lapses, and premium pattern, as well as interest rate and equity market returns. The Company also issues annuity contracts that provide certain death benefit and/or living benefit guarantees and are accounted for as MRBs. See Note 10 for additional information, including the net amount at risk associated with these guarantees. 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, 2024 Range of Guaranteed Minimum Crediting Rate(1) 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) Fixed Annuities Less than 1.00% $ 0 $ 0 $ 0 $ 0 $ 0 1.00% - 1.99% 1,042 0 0 0 1,042 2.00% - 2.99% 18,421 0 0 0 18,421 3.00% - 4.00% 7,586 0 0 0 7,586 Greater than 4.00% 0 0 0 0 0 Total $ 27,049 $ 0 $ 0 $ 0 $ 27,049 Variable Annuities Less than 1.00% $ 1,720 $ 0 $ 0 $ 0 $ 1,720 1.00% - 1.99% 168,733 6,572 0 0 175,305 2.00% - 2.99% 1,329 0 0 0 1,329 3.00% - 4.00% 107,051 1,017 0 0 108,068 Greater than 4.00% 132 0 0 0 132 Total $ 278,965 $ 7,589 $ 0 $ 0 $ 286,554 Variable Life / Universal Life Less than 1.00% $ 0 $ 0 $ 0 $ 29,485 $ 29,485 1.00% - 1.99% 23,881 0 279,047 192,989 495,917 2.00% - 2.99% 4,372 159,463 197,155 16,753 377,743 3.00% - 4.00% 247,602 259,014 899,849 0 1,406,465 Greater than 4.00% 370,186 0 0 0 370,186 Total $ 646,041 $ 418,477 $ 1,376,051 $ 239,227 $ 2,679,796 March 31, 2023 Range of Guaranteed Minimum Crediting Rate(1) 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) Fixed Annuities(2) Less than 1.00% $ 0 $ 0 $ 0 $ 0 $ 0 1.00% - 1.99% 1,284 0 0 0 1,284 2.00% - 2.99% 20,243 0 0 0 20,243 3.00% - 4.00% 9,099 0 0 0 9,099 Greater than 4.00% 0 0 0 0 0 Total $ 30,626 $ 0 $ 0 $ 0 $ 30,626 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 Life / 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 (1) Excludes contracts without minimum guaranteed crediting rates, such as funds with indexed-linked crediting options. (2) Prior period amounts have been updated to conform to current period presentation. Unearned Revenue Reserve ("URR") The balances of and changes in URR as of and for the periods ended are as follows: Three Months Ended March 31, 2024 2023 Variable Life / Universal Life (in thousands) Balance, beginning of period $ 370,258 $ 313,711 Unearned revenue 17,995 19,030 Amortization expense (4,411) (3,785) Balance, end of period $ 383,842 $ 328,956 Less: Reinsurance recoverables 103,852 85,048 Balance after reinsurance recoverables, end of period $ 279,990 $ 243,908 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: Three Months Ended March 31, 2024 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 301,771 $ (301,771) $ 0 Effect of cumulative changes in non-performance risk 100,377 0 100,377 Balance, beginning of period, before effect of changes in non-performance risk 402,148 (301,771) 100,377 Attributed fees collected 26,214 (26,214) 0 Claims paid (761) 761 0 Interest accrual 5,813 (5,813) 0 Actual in force different from expected 518 (518) 0 Effect of changes in interest rates (78,746) 78,746 0 Effect of changes in equity markets (73,358) 73,358 0 Issuances 650 (650) 0 Other adjustments 585 (585) 0 Effect of changes in current period counterparty non-performance risk 0 (21,341) (21,341) Balance, end of period, before effect of changes in non-performance risk 283,063 (204,027) 79,036 Effect of cumulative changes in non-performance risk (79,036) 0 (79,036) Balance, end of period $ 204,027 $ (204,027) $ 0 Three Months Ended 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 The Company issues certain variable annuity insurance contracts where the Company contractually guarantees to the contractholder a return of no less than (1) total deposits made to the contract adjusted for any partial withdrawals plus a minimum return, and/or (2) the highest anniversary 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 Company also issues indexed variable annuity contracts for which the return is tied to the return of specific indices 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 upon death. In certain of these indexed variable annuity contracts, the Company also contractually guarantees to the contractholder withdrawal benefits payable during specific periods. For 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 following table presents accompanying information to the rollforward table above. March 31, 2024 March 31, 2023 Variable Annuities ($ in thousands) Net amount at risk(1) $ 680,353 $ 877,211 Weighted-average attained age of contractholders 70 68 (1) For contracts with multiple benefit features, the highest net amount at risk for each contract is included. The table below reconciles MRB asset and liability positions as of the following dates: March 31, 2024 March 31, 2023 Variable Annuities (in thousands) Direct and assumed $ 144,482 $ 83,298 Ceded 348,510 479,624 Total market risk benefit assets $ 492,992 $ 562,922 Direct and assumed $ 348,510 $ 479,624 Ceded 144,482 83,298 Total market risk benefit liabilities $ 492,992 $ 562,922 Net balance $ 0 $ 0 |
Market Risk Benefits
Market Risk Benefits | 3 Months Ended |
Mar. 31, 2024 | |
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 ("DPL"); and • Additional Insurance Reserves ("AIR") 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. Three Months Ended March 31, 2024 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 1,389,421 $ 0 $ 1,389,421 Effect of cumulative changes in discount rate assumptions, beginning of period 29,313 0 29,313 Balance at original discount rate, beginning of period 1,418,734 0 1,418,734 Effect of actual variances from expected experience and other activity (21,792) 90 (21,702) Adjusted balance, beginning of period 1,396,942 90 1,397,032 Issuances 24,393 639 25,032 Net premiums / considerations collected (40,799) (729) (41,528) Interest accrual 16,394 0 16,394 Balance at original discount rate, end of period 1,396,930 0 1,396,930 Effect of cumulative changes in discount rate assumptions, end of period (56,897) 0 (56,897) Balance, end of period $ 1,340,033 $ 0 $ 1,340,033 Three Months Ended March 31, 2024 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 2,619,569 $ 18,489 $ 2,638,058 Effect of cumulative changes in discount rate assumptions, beginning of period 44,322 1,510 45,832 Balance at original discount rate, beginning of period 2,663,891 19,999 2,683,890 Effect of actual variances from expected experience and other activity (29,994) 62 (29,932) Adjusted balance, beginning of period 2,633,897 20,061 2,653,958 Issuances 24,393 639 25,032 Interest accrual 32,144 177 32,321 Benefit payments (32,730) (654) (33,384) Other adjustments (899) 1 (898) Balance at original discount rate, end of period 2,656,805 20,224 2,677,029 Effect of cumulative changes in discount rate assumptions, end of period (105,493) (1,796) (107,289) Balance, end of period $ 2,551,312 $ 18,428 $ 2,569,740 Three Months Ended March 31, 2024 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, pre-flooring $ 1,211,279 $ 18,428 $ 1,229,707 Flooring impact, end of period 14 0 14 Balance, end of period, post-flooring $ 1,211,293 $ 18,428 $ 1,229,721 Less: Reinsurance recoverables 1,036,843 18,428 1,055,271 Balance after reinsurance recoverables, end of period, post-flooring $ 174,450 $ 0 $ 174,450 Three Months Ended 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 and other activity (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 Three Months Ended 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 Three Months Ended 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 recoverables 1,036,995 17,336 1,054,331 Balance after reinsurance recoverables, end of period, post-flooring $ 151,341 $ 0 $ 151,341 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: Three Months Ended March 31, 2024 Term Life Fixed Annuities ($ in thousands) Undiscounted expected future gross premiums $ 3,007,181 $ 0 Discounted expected future gross premiums (at original discount rate) $ 2,011,489 $ 0 Discounted expected future gross premiums (at current discount rate) $ 1,938,769 $ 0 Undiscounted expected future benefits and expenses $ 4,286,686 $ 26,109 Interest accrual $ 15,749 $ 177 Gross premiums $ 59,673 $ 950 Weighted-average duration of the liability in years (at original discount rate) 10 6 Weighted-average duration of the liability in years (at current discount rate) 10 5 Weighted-average interest rate (at original discount rate) 5.26 % 3.71 % Weighted-average interest rate (at current discount rate) 5.31 % 5.21 % Three Months Ended 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 % For additional information regarding observable market information and the techniques used to determine the interest rate assumptions seen above, see Note 2 to the Company's Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. 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, respectively. In the first three months of 2024, there was an immaterial impact to net income for non-participating traditional and limited-payment products, where net premiums exceeded gross premiums for certain issue-year cohorts. In the first three months of 2023, there was a $3 million gain in net income for non-participating 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. Deferred Profit Liability The balances of and changes in DPL as of and for the periods indicated are as follows: Three Months Ended March 31, 2024 2023 Fixed Annuities (in thousands) Balance, beginning of period, post flooring $ 1,365 $ 1,684 Effect of actual variances from expected experience and other activity 34 (107) Adjusted balance, beginning of period 1,399 1,577 Profits deferred 216 0 Interest accrual 14 13 Amortization (53) (45) Balance, end of period, post-flooring 1,576 1,545 Less: Reinsurance recoverables 1,576 1,545 Balance after reinsurance recoverables, end of period $ 0 $ 0 The following table provides supplemental information related to the balances of and changes in DPL, included in the disaggregated table above, on a gross (direct and assumed) basis, as of and for the period indicated: Three Months Ended March 31, 2024 2023 Fixed Annuities (in thousands) Revenue(1) $ (211) $ 139 Interest accrual 14 13 (1) Represents the gross premiums collected in changes in DPL. Additional Insurance Reserves AIR represents the additional liability for annuitization, death, or other insurance benefits, including guaranteed minimum death benefits ("GMDB") and guaranteed minimum income benefits ("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: Three Months Ended March 31, 2024 2023 (in thousands) Balance including amounts in AOCI, beginning of period, post-flooring $ 986,166 $ 827,478 Flooring impact and amounts in AOCI 56,487 91,115 Balance, excluding amounts in AOCI, beginning of period, pre-flooring 1,042,653 918,593 Effect of actual variances from expected experience and other activity 17,115 (342) Adjusted balance, beginning of period 1,059,768 918,251 Assessments collected(1) 23,439 14,827 Interest accrual 8,986 7,840 Benefits paid (5,955) (3,995) Balance, excluding amounts in AOCI, end of period, pre-flooring 1,086,238 936,923 Flooring impact and amounts in AOCI (103,881) (65,818) Balance, including amounts in AOCI, end of period, post-flooring 982,357 871,105 Less: Reinsurance recoverables 956,650 834,640 Balance after reinsurance recoverables, including amounts in AOCI, end of period $ 25,707 $ 36,465 (1) Represents the portion of gross assessments required to fund the future policy benefits. Three Months Ended March 31, 2024 2023 ($ in thousands) Interest accrual $ 8,986 $ 7,840 Gross assessments $ 56,772 $ 46,941 Weighted-average duration of the liability in years (at original discount rate) 27 28 Weighted-average interest rate (at original discount rate) 3.43 % 3.42 % Future Policy Benefits Reconciliation The following table presents the reconciliation of the ending balances from the above rollforwards, Benefit Reserves, DPL, and AIR, 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: Three Months Ended March 31, 2024 2023 (in thousands) Benefit reserves, end of period, post-flooring $ 1,229,721 $ 1,205,672 Deferred profit liability, end of period, post-flooring 1,576 1,545 Additional insurance reserves, including amounts in AOCI, end of period, post-flooring 982,357 871,105 Subtotal of amounts disclosed above 2,213,654 2,078,322 Other Future policy benefits reserves(1) 176,241 149,309 Total Future policy benefits $ 2,389,895 $ 2,227,631 (1) Primarily 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, DPL, and AIR, 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: Three Months Ended March 31, 2024 Revenues(1) Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 950 $ 59,673 $ 0 $ 60,623 Deferred profit liability (211) 0 0 (211) Additional insurance reserves 0 0 56,772 56,772 Total $ 739 $ 59,673 $ 56,772 $ 117,184 Three Months Ended March 31, 2023 Revenues(1) Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 112 $ 61,365 $ 0 $ 61,477 Deferred profit liability 139 0 0 139 Additional insurance reserves 0 0 46,941 46,941 Total $ 251 $ 61,365 $ 46,941 $ 108,557 (1) Represents "Gross premiums" for benefit reserves; "Revenue" for DPL and "Gross assessments" for AIR. Three Months Ended March 31, 2024 Interest Expense Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 177 $ 15,749 $ 0 $ 15,926 Deferred profit liability 14 0 0 14 Additional insurance reserves 0 0 8,986 8,986 Total $ 191 $ 15,749 $ 8,986 $ 24,926 Three Months Ended March 31, 2023 Interest Expense Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 171 $ 15,338 $ 0 $ 15,509 Deferred profit liability 13 0 0 13 Additional insurance reserves 0 0 7,840 7,840 Total $ 184 $ 15,338 $ 7,840 $ 23,362 Policyholders' Account Balances The balances of and changes in policyholders' account balances as of and for the periods ended are as follows: Three Months Ended March 31, 2024 Fixed Annuities Variable Annuities Variable Life / Universal Life Total ($ in thousands) Balance, beginning of period $ 35,025 $ 592,581 $ 3,028,746 $ 3,656,352 Deposits 1,104 100,818 54,248 156,170 Interest credited 212 3,909 15,275 19,396 Policy charges (14) (49) (36,657) (36,720) Surrenders and withdrawals (1,473) (11,039) (33,506) (46,018) Benefit payments (155) (713) (2,681) (3,549) Net transfers (to) from separate account 0 3,588 11,402 14,990 Change in market value and other adjustments(1) 0 29,526 3,199 32,725 Balance, end of period $ 34,699 $ 718,621 $ 3,040,026 $ 3,793,346 Unearned revenue reserve 383,842 Other 9,568 Total Policyholders' account balance $ 4,186,756 Weighted-average crediting rate 2.43 % 2.38 % 2.01 % 2.08 % Net amount at risk(2) $ 0 $ 0 $ 34,482,721 $ 34,482,721 Cash surrender value(3) $ 8,414 $ 690,349 $ 2,708,499 $ 3,407,262 Three Months Ended March 31, 2023 Fixed Annuities(4) Variable Annuities Variable Life / Universal Life Total ($ in thousands) Balance, beginning of period $ 39,406 $ 327,124 $ 2,084,680 $ 2,451,210 Deposits 707 25,558 57,220 83,485 Interest credited 252 2,015 13,972 16,239 Policy charges (14) (40) (36,360) (36,414) Surrenders and withdrawals (2,027) (8,163) (29,361) (39,551) Benefit payments (154) (1,647) (422) (2,223) Net transfers (to) from separate account 0 (913) (28,189) (29,102) Change in market value and other adjustments(1) 0 (131) 10,436 10,305 Balance, end of period $ 38,170 $ 343,803 $ 2,071,976 $ 2,453,949 Unearned revenue reserve 328,956 Other(4) 9,386 Total Policyholders' account balance $ 2,792,291 Weighted-average crediting rate 2.59 % 2.40 % 2.69 % 2.65 % Net amount at risk (2) $ 0 $ 0 $ 33,887,277 $ 33,887,277 Cash surrender value(3) $ 10,074 $ 322,593 $ 1,733,643 $ 2,066,310 (1) Primarily relates to changes in the value of embedded derivative instruments associated with the indexed options of certain products. (2) The net amount at risk calculation includes both general and separate account balances. (3) Represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. (4) Prior period amounts have been updated to conform to current period presentation. The Company issues variable life and universal life insurance contracts which may also include a “no-lapse guarantee” where the Company contractually guarantees to the contractholder a death benefit even when the account value drops to zero, as long as the “no-lapse guarantee” premium is paid. The net amount at risk is generally defined as the current 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 contractholder mortality, contract lapses, and premium pattern, as well as interest rate and equity market returns. The Company also issues annuity contracts that provide certain death benefit and/or living benefit guarantees and are accounted for as MRBs. See Note 10 for additional information, including the net amount at risk associated with these guarantees. 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, 2024 Range of Guaranteed Minimum Crediting Rate(1) 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) Fixed Annuities Less than 1.00% $ 0 $ 0 $ 0 $ 0 $ 0 1.00% - 1.99% 1,042 0 0 0 1,042 2.00% - 2.99% 18,421 0 0 0 18,421 3.00% - 4.00% 7,586 0 0 0 7,586 Greater than 4.00% 0 0 0 0 0 Total $ 27,049 $ 0 $ 0 $ 0 $ 27,049 Variable Annuities Less than 1.00% $ 1,720 $ 0 $ 0 $ 0 $ 1,720 1.00% - 1.99% 168,733 6,572 0 0 175,305 2.00% - 2.99% 1,329 0 0 0 1,329 3.00% - 4.00% 107,051 1,017 0 0 108,068 Greater than 4.00% 132 0 0 0 132 Total $ 278,965 $ 7,589 $ 0 $ 0 $ 286,554 Variable Life / Universal Life Less than 1.00% $ 0 $ 0 $ 0 $ 29,485 $ 29,485 1.00% - 1.99% 23,881 0 279,047 192,989 495,917 2.00% - 2.99% 4,372 159,463 197,155 16,753 377,743 3.00% - 4.00% 247,602 259,014 899,849 0 1,406,465 Greater than 4.00% 370,186 0 0 0 370,186 Total $ 646,041 $ 418,477 $ 1,376,051 $ 239,227 $ 2,679,796 March 31, 2023 Range of Guaranteed Minimum Crediting Rate(1) 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) Fixed Annuities(2) Less than 1.00% $ 0 $ 0 $ 0 $ 0 $ 0 1.00% - 1.99% 1,284 0 0 0 1,284 2.00% - 2.99% 20,243 0 0 0 20,243 3.00% - 4.00% 9,099 0 0 0 9,099 Greater than 4.00% 0 0 0 0 0 Total $ 30,626 $ 0 $ 0 $ 0 $ 30,626 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 Life / 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 (1) Excludes contracts without minimum guaranteed crediting rates, such as funds with indexed-linked crediting options. (2) Prior period amounts have been updated to conform to current period presentation. Unearned Revenue Reserve ("URR") The balances of and changes in URR as of and for the periods ended are as follows: Three Months Ended March 31, 2024 2023 Variable Life / Universal Life (in thousands) Balance, beginning of period $ 370,258 $ 313,711 Unearned revenue 17,995 19,030 Amortization expense (4,411) (3,785) Balance, end of period $ 383,842 $ 328,956 Less: Reinsurance recoverables 103,852 85,048 Balance after reinsurance recoverables, end of period $ 279,990 $ 243,908 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: Three Months Ended March 31, 2024 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 301,771 $ (301,771) $ 0 Effect of cumulative changes in non-performance risk 100,377 0 100,377 Balance, beginning of period, before effect of changes in non-performance risk 402,148 (301,771) 100,377 Attributed fees collected 26,214 (26,214) 0 Claims paid (761) 761 0 Interest accrual 5,813 (5,813) 0 Actual in force different from expected 518 (518) 0 Effect of changes in interest rates (78,746) 78,746 0 Effect of changes in equity markets (73,358) 73,358 0 Issuances 650 (650) 0 Other adjustments 585 (585) 0 Effect of changes in current period counterparty non-performance risk 0 (21,341) (21,341) Balance, end of period, before effect of changes in non-performance risk 283,063 (204,027) 79,036 Effect of cumulative changes in non-performance risk (79,036) 0 (79,036) Balance, end of period $ 204,027 $ (204,027) $ 0 Three Months Ended 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 The Company issues certain variable annuity insurance contracts where the Company contractually guarantees to the contractholder a return of no less than (1) total deposits made to the contract adjusted for any partial withdrawals plus a minimum return, and/or (2) the highest anniversary 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 Company also issues indexed variable annuity contracts for which the return is tied to the return of specific indices 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 upon death. In certain of these indexed variable annuity contracts, the Company also contractually guarantees to the contractholder withdrawal benefits payable during specific periods. For 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 following table presents accompanying information to the rollforward table above. March 31, 2024 March 31, 2023 Variable Annuities ($ in thousands) Net amount at risk(1) $ 680,353 $ 877,211 Weighted-average attained age of contractholders 70 68 (1) For contracts with multiple benefit features, the highest net amount at risk for each contract is included. The table below reconciles MRB asset and liability positions as of the following dates: March 31, 2024 March 31, 2023 Variable Annuities (in thousands) Direct and assumed $ 144,482 $ 83,298 Ceded 348,510 479,624 Total market risk benefit assets $ 492,992 $ 562,922 Direct and assumed $ 348,510 $ 479,624 Ceded 144,482 83,298 Total market risk benefit liabilities $ 492,992 $ 562,922 Net balance $ 0 $ 0 |
Reinsurance
Reinsurance | 3 Months Ended |
Mar. 31, 2024 | |
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”), PAR U, PURE, 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 (“YRT”) 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. Effective January 2024, the Company entered into an agreement with Somerset Reinsurance Ltd. (“Somerset Re”) to coinsure a closed block of guaranteed universal life ("GUL") policies to PURE, a wholly-owned subsidiary of Prudential Insurance, with retrocession by PURE of such liabilities on a modified coinsurance basis, to Somerset Re. This transaction is effective as of January 1, 2024, whereby, the Company recaptured all risks associated with the subject GUL policies from PAR U and subsequently established YRT reinsurance for the subject GUL business with Prudential Insurance. As a result of the transactions, the Company recognized a $183 million pre-tax recapture loss and a $199 million DRG that will be amortized into income over the estimated remaining life of the reinsured policies. 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. Reinsurance amounts included in the Company’s Unaudited Interim Statements of Financial Position were as follows: March 31, 2024 December 31, 2023 (in thousands) Reinsurance recoverables $ 4,008,437 $ 3,603,225 Policy loans (26,977) (24,518) Deferred policy acquisition costs (620,920) (620,878) Deferred sales inducements (34,683) (35,313) Market risk benefit assets 348,510 419,715 Other assets 39,911 40,267 Market risk benefit liabilities 144,482 117,944 Other liabilities 953,708 412,919 Reinsurance recoverables by counterparty are as follows: March 31, 2024 December 31, 2023 (in thousands) Prudential Insurance $ 1,172,091 $ 724,297 PAR U 780,799 1,725,753 PARCC 416,267 432,554 PAR Term 278,626 279,990 Term Re 270,803 275,721 DART 100,666 102,611 Pruco Life 56,590 57,509 PURE 929,034 0 Unaffiliated 3,561 4,790 Total reinsurance recoverables $ 4,008,437 $ 3,603,225 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, 2024 2023 (in thousands) Premiums: Direct $ 59,878 $ 62,583 Ceded (48,719) (52,406) Net premiums 11,159 10,177 Policy charges and fee income: Direct 90,440 86,513 Assumed 13,066 0 Ceded(1) 226,078 (72,375) Net policy charges and fee income 329,584 14,138 Net investment income: Direct 50,372 28,886 Ceded (345) (226) Net investment income 50,027 28,660 Asset administration fees: Direct 9,290 8,776 Ceded (6,668) (6,696) Net asset administration fees 2,622 2,080 Other income (loss): Direct (985) 1,145 Ceded 2,311 1 Net other income 1,326 1,146 Realized investment gains (losses), net: Direct 1,265 (9,457) Ceded (5,856) 1,159 Realized investment gains (losses), net (4,591) (8,298) Change in value of market risk benefits, net of related hedging gain (loss): Direct 145,162 (13,801) Ceded (123,821) (1,927) Net change in value of market risk benefits, net of related hedging gain (loss) 21,341 (15,728) Policyholders’ benefits (including change in reserves): Direct 137,781 107,337 Ceded(2) 409,677 (88,998) Net policyholders’ benefits (including change in reserves) 547,458 18,339 Change in estimates of liability for future policy benefits: Direct 9,247 (3,917) Ceded (13,075) 2,475 Net change in estimates of liability for future policy benefits (3,828) (1,442) Interest credited to policyholders’ account balances: Direct 30,405 18,022 Ceded (10,383) (7,885) Net interest credited to policyholders’ account balances 20,022 10,137 Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization (62,055) (32,950) (1) Includes $(1.3) million of unaffiliated activity for each of the three months ended March 31, 2024 and 2023. (2) Includes $0.0 million of unaffiliated activity for each of the three months ended March 31, 2024 and 2023. The gross and net amounts of life insurance face amount in force as of March 31, 2024 and 2023 were as follows: 2024 2023 (in thousands) Direct gross life insurance face amount in force $ 154,609,232 $ 154,115,666 Reinsurance ceded (141,317,963) (139,826,733) Net life insurance face amount in force $ 13,291,269 $ 14,288,933 Significant Affiliated Reinsurance Agreements Prudential Insurance The Company has a YRT 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 YRT 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 YRT reinsurance agreement was established with Pruco Life for term policies. Effective January 1, 2024, the Company recaptured all GUL policies with Prudential Insurance and subsequently entered into a YRT reinsurance agreement with Prudential Insurance to reinsure the mortality risk for the totality of GUL policies reinsured to PURE. 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, the Company 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 95% of all risks associated with Universal Protector policies having no-lapse guarantees as well as certain other universal life policies, with effective dates through December 31, 2019, excluding those policies that are subject to principle-based reserving. Effective January 1, 2024, the Company recaptured the policies previously reinsured by PAR U with effective dates prior to January 1, 2015. Effective January 1, 2024, the Company reinsures 100% of the risks associated with universal life policies with effective dates from January 1, 2015 to December 31, 2019. PURE Effective January 1, 2024, the Company reinsures 100% of the risks associated with Universal Protector policies having no-lapse guarantees as well as certain other universal life policies with effective dates prior to January 1, 2015. 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 YRT reinsurance agreement with Pruco Life for new business, primarily covering universal life policies. Effective January 1, 2020, the Company entered in a similar YRT 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, 2024 | |
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 $(53.5) million, or 38.11% of income (loss) from operations before income taxes in the first three months of 2024, compared to $(1.4) million, or 12.17%, in the first three months of 2023. 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”), (House of Representatives, 5376). One of the most significant provisions of the Inflation Reduction Act is a 15% corporate alternative minimum tax (CAMT) based on the Company’s GAAP income, with certain adjustments. This provision, which is applicable only to companies with average applicable financial statement income in excess of $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. The Company is subject to CAMT for 2024 which may or may not result in a CAMT cash tax liability and will have no impact to the full year effective tax rate. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and 2023, 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, 2023 $ (1,079) $ (130,117) $ 4,369 $ 79,300 $ (47,527) Change in OCI before reclassifications (100) (42,547) 6,463 (21,341) (57,525) Amounts reclassified from AOCI 0 (751) 0 0 (751) Income tax benefit (expense) 16 9,098 (1,357) 4,481 12,238 Balance, March 31, 2024 $ (1,163) $ (164,317) $ 9,475 $ 62,440 $ (93,565) 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 (1) Includes cash flow hedges of $8 million and $5 million as of March 31, 2024 and December 31, 2023, respectively, and $13 million and $14 million as of March 31, 2023 and December 31, 2022, respectively . Reclassifications out of Accumulated Other Comprehensive Income (Loss) Three Months Ended 2024 2023 (in thousands) Amounts reclassified from AOCI(1)(2): Net unrealized investment gains (losses): Cash flow hedges - Currency/Interest rate(3) $ 852 $ 387 Net unrealized investment gains (losses) on available-for-sale securities (101) (26) Total net unrealized investment gains (losses)(4) 751 361 Total reclassifications for the period $ 751 $ 361 (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 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. The amounts for the periods indicated below, split between 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, and all other net unrealized investment gains (losses), are as follows: Net Unrealized Investment Gains (Losses) on Available-for-Sale Fixed Maturity Securities on Which an Allowance for Credit Losses has been Recognized Net Unrealized Gains (Losses) on All Other Other Costs(2) Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(3) Income Tax Accumulated Other Comprehensive (in thousands) Balance, December 31, 2023 $ 0 $ (192,271) $ (52,266) $ 79,826 $ 34,594 $ (130,117) Net investment gains (losses) on investments arising during the period (3) (49,107) 0 0 10,319 (38,791) Reclassification adjustment for (gains) losses included in net income 0 (751) 0 0 158 (593) Impact of net unrealized investment (gains) losses 0 0 (46,572) 53,135 (1,379) 5,184 Balance, March 31, 2024 $ (3) $ (242,129) $ (98,838) $ 132,961 $ 43,692 $ (164,317) (1) Includes cash flow hedges. See Note 4 for information on cash flow hedges. (2) "Other costs" primarily includes reinsurance recoverables. (3) |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and 2023. The expense charged to the Company for the deferred compensation program was $0.3 million for both the three months ended March 31, 2024 and 2023. 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 ar e 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 $0.2 million and $0.3 million for the three months ended March 31, 2024 and 2023, respectively. The Company is also charged for its share of the costs associated with welfare plans issued by Prudential Insurance. These expenses include costs rela ted to medical, dental, life insurance and disability. The Company's share of net expense for the welfare plans was $0.4 million for both the three months ended March 31, 2024 and 2023. 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 $0.1 million and $0.2 million the three months ended March 31, 2024 and 2023 , 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 $14 million and $8 million for the three months ended March 31, 2024 and 2023, 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 corporat e expenses was $4 million for both the three months ended March 31, 2024 and 2023. Corporate-Owned Life Insurance The Company has sold three COLI policies to Prudential Insurance and one to Prudential Financial. The cash surrender value included in separate accounts for these COLI policies was $2,606 million and $2,452 million at March 31, 2024 and December 31, 2023, respectively. Fees related to these COLI policies were $6 million for both the three months ended March 31, 2024 and 2023. The Company retains 10% of the mortality risk associated with these COLI policies up to $0.1 million per individual policy. In May 2023, the Company funded a policy loan from the Prudential Financial COLI policy noted above in an amount of $900 million to an affiliated irrevocable trust, commonly referred to as a “rabbi trust”, which Prudential Financial created to support certain non-qualified retirement plans. The outstanding balance of the policy loan with the rabbi trust was $898 million as of March 31, 2024 and December 31, 2023. Interest income related to the policy loan was $10 million for the three months ended March 31, 2024. 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 expense s paid to PGIM related to this agreement were $0.7 million and $0.6 million for the three months ended March 31, 2024 and 2023, 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 $61 million and $58 million of investments in joint ventures as of March 31, 2024 and December 31, 2023, respectively. "Net investment income" related to these ventures includes gains(losses) of $2 million and $0 million for the three months ended March 31, 2024 and 2023, 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 PGI M Investments related to this agreement was $7 million for both the three months ended March 31, 2024 and 2023. 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, 2024 and 2023. These revenues are re corded 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, 2024 and December 31, 2023 is as follows: Maturity Dates Interest Rates March 31, 2024 December 31, 2023 (in thousands) U.S. dollar fixed rate notes 2032 0.00% - 14.85 % $ 11,117 $ 0 Total notes receivable - affiliated(1) $ 11,117 $ 0 (1) All notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances. The affiliated notes receivable shown above are classified as available-for-sale securities and other trading assets carried at fair value. The Company monitors the internal and external credit ratings of these loans and loan performance. The Company also considers any guarantees made by Prudential Insurance for loans due from affiliates. Accrued interest receivable related to these loans was $0.1 million and $0.0 million as of March 31, 2024 and December 31, 2023, respectively, and is included in "Accrued investment income". Revenues were $0.0 million for each of the three months ended March 31, 2024 and 2023, 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, 2024 and for the year ended December 31, 2023. Affiliate Date Transaction Security Type Fair Value Book Value APIC, Net of Tax Increase/(Decrease) Realized (in thousands) Prudential Insurance June 2023 Purchase Fixed Maturities $ 14,452 $ 15,086 $ 501 $ 0 Prudential Insurance December 2023 Sale Commercial Mortgage and Other Loans $ 762 $ 754 $ 0 $ 8 PAR U January 2024 Transfer in Fixed Maturities $ 778,745 $ 778,745 $ 0 $ 0 PURE January 2024 Transfer out Fixed Maturities $ 778,745 $ 778,745 $ 0 0 Debt Agreements The Company is authorized to borrow funds up to $250 million from affiliates to meet its capital and other funding needs. There was no debt outstanding as of both March 31, 2024 and December 31, 2023. 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, 2024 and 2023. Contributed Capital and Dividends In February and December 2023, the Company received capital contributions in the amount of $175 million and $82 million from Pruco Life, respectively. Through March 2024 and December 2023, 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, 2024 | |
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, 2024 and December 31, 2023, the outstanding balances on these commitments were $6 million and $20 million, respectively. These amounts include unfunded commitments that are not unconditionally cancellable. For related credit exposure, there was no allowance for credit losses as of either March 31, 2024 or December 31, 2023. For the three months ended March 31, 2024 and 2023, there was no change in allowance for credit losses. The Company also made commitments to purchase or fund investments, mostly fund investments and private fixed maturities, some of which are contingent upon events or circumstances not under the Company’s control, i ncluding those at the discretion of the Company’s counterparties. The Company anticipates a portion of these commitments will ultimately be funded from its separate accounts. As of March 31, 2024 and December 31, 2023, $142 million and $135 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, 2024 or 2023. 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, 2024, 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 16 to the Company's Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 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, 2023. 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, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation 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, 2023. |
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 ("MRBs"); 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 | Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures This ASU requires entities, including those with a single operating or reportable segment, to provide more detailed information about significant segment expenses that are regularly provided to the chief operating decision maker. The ASU also clarifies that all of the disclosures required in the guidance apply to all public entities, including those with a single operating or reportable segment. Effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted, using the retrospective method. The Company is currently assessing the impact of the ASU on the Company's Financial Statements and Notes to the Financial Statements. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 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 $ 52,046 $ 0 $ 2,242 $ 0 $ 49,804 Obligations of U.S. states and their political subdivisions 178,895 180 4,571 0 174,504 Foreign government bonds 89,137 110 17,096 0 72,151 U.S. public corporate securities 1,476,050 6,608 176,492 0 1,306,166 U.S. private corporate securities 239,170 1,216 10,625 0 229,761 Foreign public corporate securities 185,262 605 25,505 0 160,362 Foreign private corporate securities 216,638 3,017 17,501 0 202,154 Asset-backed securities(1) 18,392 61 715 0 17,738 Commercial mortgage-backed securities 103,552 0 6,925 0 96,627 Residential mortgage-backed securities(2) 15,699 171 710 0 15,160 Total fixed maturities, available-for-sale $ 2,574,841 $ 11,968 $ 262,382 $ 0 $ 2,324,427 (1) Includes credit-tranched securities collateralized by loan obligations and education loans. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. December 31, 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 $ 52,196 $ 0 $ 1,154 $ 0 $ 51,042 Obligations of U.S. states and their political subdivisions 184,419 952 2,833 0 182,538 Foreign government bonds 95,189 248 14,693 0 80,744 U.S. public corporate securities 1,485,406 13,428 147,901 0 1,350,933 U.S. private corporate securities 227,342 1,978 8,884 0 220,436 Foreign public corporate securities 185,601 1,173 21,989 0 164,785 Foreign private corporate securities 190,545 5,102 14,791 0 180,856 Asset-backed securities(1) 19,440 40 969 0 18,511 Commercial mortgage-backed securities 104,055 0 7,356 0 96,699 Residential mortgage-backed securities(2) 15,780 195 420 4 15,551 Total fixed maturities, available-for-sale $ 2,559,973 $ 23,116 $ 220,990 $ 4 $ 2,362,095 (1) Includes credit-tranched securities collateralized by loan obligations and education loans. (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 fixed maturity, available-for-sale 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, 2024 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 $ 47,910 $ 2,019 $ 1,895 $ 223 $ 49,805 $ 2,242 Obligations of U.S. states and their political subdivisions 62,045 809 68,749 3,762 130,794 4,571 Foreign government bonds 6,615 345 60,867 16,751 67,482 17,096 U.S. public corporate securities 134,178 3,495 919,800 172,997 1,053,978 176,492 U.S. private corporate securities 53,707 864 116,803 9,761 170,510 10,625 Foreign public corporate securities 21,352 275 116,680 25,230 138,032 25,505 Foreign private corporate securities 19,546 385 95,331 17,116 114,877 17,501 Asset-backed securities 8,334 687 2,322 28 10,656 715 Commercial mortgage-backed securities 0 0 96,627 6,925 96,627 6,925 Residential mortgage-backed securities 26 2 10,662 708 10,688 710 Total fixed maturities, available-for-sale $ 353,713 $ 8,881 $ 1,489,736 $ 253,501 $ 1,843,449 $ 262,382 December 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 $ 49,081 $ 936 $ 1,962 $ 218 $ 51,043 $ 1,154 Obligations of U.S. states and their political subdivisions 22,856 186 61,445 2,647 84,301 2,833 Foreign government bonds 5,656 91 69,066 14,602 74,722 14,693 U.S. public corporate securities 86,203 1,688 913,776 146,213 999,979 147,901 U.S. private corporate securities 27,883 366 117,409 8,518 145,292 8,884 Foreign public corporate securities 5,029 135 115,462 21,854 120,491 21,989 Foreign private corporate securities 5,007 51 98,159 14,740 103,166 14,791 Asset-backed securities 7,899 914 4,775 55 12,674 969 Commercial mortgage-backed securities 0 0 96,699 7,356 96,699 7,356 Residential mortgage-backed securities 146 2 10,722 418 10,868 420 Total fixed maturities, available-for-sale $ 209,760 $ 4,369 $ 1,489,475 $ 216,621 $ 1,699,235 $ 220,990 |
Fixed Maturities Classified by Contractual Maturity Date | The following table sets forth the amortized cost and fair value of fixed maturities, available-for-sale by contractual maturities, as of the date indicated: March 31, 2024 Amortized Cost Fair Value (in thousands) Fixed maturities, available-for-sale: Due in one year or less $ 81,243 $ 77,627 Due after one year through five years 394,300 385,027 Due after five years through ten years 231,972 227,175 Due after ten years 1,729,683 1,505,073 Asset-backed securities 18,392 17,738 Commercial mortgage-backed securities 103,552 96,627 Residential mortgage-backed securities 15,699 15,160 Total fixed maturities, available-for-sale $ 2,574,841 $ 2,324,427 |
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, available-for-sale for the periods indicated: Three Months Ended March 31, 2024 2023 (in thousands) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 2,155 $ 886 Proceeds from maturities/prepayments 26,605 32,121 Gross investment gains from sales and maturities 64 29 Gross investment losses from sales and maturities (169) (415) (Addition to) release of allowance for credit losses 4 360 (1) Excludes activity from non-cash related proceeds due to the timing of trade settlements of $0.0 million and $0.2 million for the three months ended March 31, 2024 and 2023, respectively. |
Other than Temporary Impairment, Credit Losses Recognized in Earnings | The following tables set forth the activity in the allowance for credit losses for fixed maturity, available-for-sale securities, as of the dates indicated: Three Months Ended March 31, 2024 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of period $ 0 $ 0 $ 0 $ 0 $ 0 $ 4 $ 4 Reductions for securities sold during the period 0 0 0 0 0 0 0 Additions (reductions) on securities with previous allowance 0 0 0 0 0 (4) (4) Balance, end of period $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 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, 2024 December 31, 2023 Amount % of Total Amount % of Total Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 75,152 28.4 % $ 71,289 29.6 % Hospitality 13,955 5.3 14,070 5.8 Industrial 78,849 29.8 70,633 29.3 Office 8,058 3.0 8,122 3.4 Other 33,903 12.8 24,587 10.2 Retail 23,216 8.8 23,327 9.7 Total commercial mortgage loans 233,133 88.1 212,028 88.0 Agricultural property loans 31,620 11.9 28,763 12.0 Total commercial mortgage and agricultural property loans 264,753 100.0 % 240,791 100.0 % Allowance for credit losses (1,153) (1,162) Total net commercial mortgage and agricultural property loans $ 263,600 $ 239,629 |
Allowance for Credit Losses | The following tables set forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated: Three Months Ended March 31, 2024 2023 Commercial Mortgage Loans Agricultural Property Loans Total Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance, beginning of period $ 1,107 $ 55 $ 1,162 $ 405 $ 3 $ 408 Addition to (release of) allowance for expected losses 0 (9) (9) 38 53 91 Allowance, end of period $ 1,107 $ 46 $ 1,153 $ 443 $ 56 $ 499 |
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, 2024 Amortized Cost by Origination Year 2024 2023 2022 2021 2020 Prior Revolving Loans Total (in thousands) Commercial mortgage loans Loan-to-Value Ratio: 0%-59.99% $ 0 $ 9,427 $ 19,844 $ 767 $ 0 $ 58,506 $ 0 $ 88,544 60%-69.99% 18,973 37,766 15,000 1,962 2,198 20,868 0 96,767 70%-79.99% 3,000 31,852 0 0 0 5,955 0 40,807 80% or greater 0 0 0 0 0 7,015 0 7,015 Total $ 21,973 $ 79,045 $ 34,844 $ 2,729 $ 2,198 $ 92,344 $ 0 $ 233,133 Debt Service Coverage Ratio: Greater than 1.2x $ 21,973 $ 76,634 $ 34,844 $ 2,729 $ 2,198 $ 84,507 $ 0 $ 222,885 1.0 - 1.2x 0 2,411 0 0 0 6,008 0 8,419 Less than 1.0x 0 0 0 0 0 1,829 0 1,829 Total $ 21,973 $ 79,045 $ 34,844 $ 2,729 $ 2,198 $ 92,344 $ 0 $ 233,133 Agricultural property loans Loan-to-Value Ratio: 0%-59.99% $ 2,000 $ 10,937 $ 1,025 $ 1,035 $ 0 $ 958 $ 1,320 $ 17,275 60%-69.99% 0 2,000 12,345 0 0 0 0 14,345 70%-79.99% 0 0 0 0 0 0 0 0 80% or greater 0 0 0 0 0 0 0 0 Total $ 2,000 $ 12,937 $ 13,370 $ 1,035 $ 0 $ 958 $ 1,320 $ 31,620 Debt Service Coverage Ratio: Greater than 1.2x $ 2,000 $ 12,937 $ 13,370 $ 1,035 $ 0 $ 958 $ 1,320 $ 31,620 1.0 - 1.2x 0 0 0 0 0 0 0 0 Less than 1.0x 0 0 0 0 0 0 0 0 Total $ 2,000 $ 12,937 $ 13,370 $ 1,035 $ 0 $ 958 $ 1,320 $ 31,620 December 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% $ 9,444 $ 19,879 $ 772 $ 0 $ 17,239 $ 42,159 $ 89,493 60%-69.99% 37,809 15,000 1,962 2,198 15,091 5,836 77,896 70%-79.99% 32,105 0 0 0 3,885 1,595 37,585 80% or greater 0 0 0 0 1,007 6,047 7,054 Total $ 79,358 $ 34,879 $ 2,734 $ 2,198 $ 37,222 $ 55,637 $ 212,028 Debt Service Coverage Ratio: Greater than 1.2x $ 76,929 $ 34,879 $ 2,734 $ 2,198 $ 36,293 $ 48,677 $ 201,710 1.0 - 1.2x 2,429 0 0 0 0 6,047 8,476 Less than 1.0x 0 0 0 0 929 913 1,842 Total $ 79,358 $ 34,879 $ 2,734 $ 2,198 $ 37,222 $ 55,637 $ 212,028 Agricultural property loans Loan-to-Value Ratio: 0%-59.99% $ 11,358 $ 1,035 $ 1,047 $ 0 $ 0 $ 978 $ 14,418 60%-69.99% 2,000 12,345 0 0 0 0 14,345 70%-79.99% 0 0 0 0 0 0 0 80% or greater 0 0 0 0 0 0 0 Total $ 13,358 $ 13,380 $ 1,047 $ 0 $ 0 $ 978 $ 28,763 Debt Service Coverage Ratio: Greater than 1.2x $ 13,358 $ 13,380 $ 1,047 $ 0 $ 0 $ 978 $ 28,763 1.0 - 1.2x 0 0 0 0 0 0 0 Less than 1.0x 0 0 0 0 0 0 0 Total $ 13,358 $ 13,380 $ 1,047 $ 0 $ 0 $ 978 $ 28,763 |
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, 2024 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 $ 233,133 $ 0 $ 0 $ 0 $ 233,133 $ 0 Agricultural property loans 31,620 0 0 0 31,620 0 Total $ 264,753 $ 0 $ 0 $ 0 $ 264,753 $ 0 (1) As of March 31, 2024, 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, 2023. . December 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 $ 212,028 $ 0 $ 0 $ 0 $ 212,028 $ 0 Agricultural property loans 28,763 0 0 0 28,763 0 Total $ 240,791 $ 0 $ 0 $ 0 $ 240,791 $ 0 (1) As of December 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, 2023. |
Other Invested Assets | The following table sets forth the composition of “Other invested assets,” as of the dates indicated: March 31, 2024 December 31, 2023 (in thousands) LPs/LLCs: Equity method: Private equity $ 97,048 $ 90,107 Hedge funds 49,444 48,488 Real estate-related 6,932 6,965 Subtotal equity method 153,424 145,560 Fair value: Private equity 243 249 Hedge funds 11 19 Real estate-related 3,840 4,119 Subtotal fair value 4,094 4,387 Total LPs/LLCs 157,518 149,947 Derivative instruments 20,238 0 Other 38 3,938 Total other invested assets $ 177,794 $ 153,885 |
Accrued Investment Income | The following table sets forth the composition of “Accrued investment income,” as of the dates indicated: March 31, 2024 December 31, 2023 (in thousands) Fixed maturities $ 26,915 $ 26,672 Equity securities 92 1 Commercial mortgage and other loans 1,111 948 Policy loans 35,286 25,675 Short-term investments and cash equivalents 1,038 610 Total accrued investment income $ 64,442 $ 53,906 |
Net Investment Income | The following table sets forth “Net investment income” by investment type, for the periods indicated: Three Months Ended March 31, 2024 2023 (in thousands) Fixed maturities, available-for-sale $ 27,636 $ 21,117 Fixed maturities, trading 149 157 Equity securities 91 91 Commercial mortgage and other loans 3,241 1,679 Policy loans 12,804 2,525 Other invested assets 4,119 1,478 Short-term investments and cash equivalents 3,295 2,641 Gross investment income 51,335 29,688 Less: investment expenses (1,308) (1,028) Net investment income $ 50,027 $ 28,660 |
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, 2024 2023 (in thousands) Fixed maturities(1) $ (101) $ (26) Commercial mortgage and other loans 9 (91) Derivatives (4,489) (8,241) Short term investments and cash equivalents (10) 60 Realized investment gains (losses), net $ (4,591) $ (8,298) (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, 2024 December 31, 2023 (in thousands) Fixed maturity securities, available-for-sale with an allowance $ (3) $ 0 Fixed maturity securities, available-for-sale without an allowance (250,411) (197,874) Derivatives designated as cash flow hedges(1) 7,899 5,246 Other investments 383 357 Net unrealized gains (losses) on investments $ (242,132) $ (192,271) (1) For more information on cash flow hedges, see Note 4. |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 December 31, 2023 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 $ 188,066 $ 9,504 $ (2,881) $ 169,101 $ 7,865 $ (4,257) Total Derivatives Designated as Hedge Accounting Instruments: $ 188,066 $ 9,504 $ (2,881) $ 169,101 $ 7,865 $ (4,257) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 195,200 $ 348 $ (530) $ 88,200 $ 36 $ (2,063) Credit Credit Default Swaps 0 0 0 0 0 0 Currency/Interest Rate Foreign Currency Swaps 47,592 2,055 (588) 39,965 1,563 (597) Foreign Currency Foreign Currency Forwards 9,891 95 0 9,550 7 (290) Equity Equity Options 1,511,036 77,332 (65,174) 1,288,555 30,679 (43,354) Total Derivatives Not Qualifying as Hedge Accounting Instruments: $ 1,763,719 $ 79,830 $ (66,292) $ 1,426,270 $ 32,285 $ (46,304) Total Derivatives(1)(2) $ 1,951,785 $ 89,334 $ (69,173) $ 1,595,371 $ 40,150 $ (50,561) (1) Excludes embedded derivatives which contain multiple underlying risks. The fair value of these embedded derivatives was a net liability of $200 million and $168 million as of March 31, 2024 and December 31, 2023, respectively included in “Policyholders’ account balances" and "Reinsurance recoverables". (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, 2024 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 89,334 $ (69,096) $ 20,238 $ (19,054) $ 1,184 Total Assets $ 89,334 $ (69,096) $ 20,238 $ (19,054) $ 1,184 Offsetting of Financial Liabilities: Derivatives $ 69,173 $ (69,173) $ 0 $ 0 $ 0 Total Liabilities $ 69,173 $ (69,173) $ 0 $ 0 $ 0 December 31, 2023 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 40,150 $ (40,150) $ 0 $ 0 $ 0 Total Assets $ 40,150 $ (40,150) $ 0 $ 0 $ 0 Offsetting of Financial Liabilities: Derivatives $ 50,561 $ (42,247) $ 8,314 $ (8,314) $ 0 Total Liabilities $ 50,561 $ (42,247) $ 8,314 $ (8,314) $ 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, 2024 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 89,334 $ (69,096) $ 20,238 $ (19,054) $ 1,184 Total Assets $ 89,334 $ (69,096) $ 20,238 $ (19,054) $ 1,184 Offsetting of Financial Liabilities: Derivatives $ 69,173 $ (69,173) $ 0 $ 0 $ 0 Total Liabilities $ 69,173 $ (69,173) $ 0 $ 0 $ 0 December 31, 2023 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 40,150 $ (40,150) $ 0 $ 0 $ 0 Total Assets $ 40,150 $ (40,150) $ 0 $ 0 $ 0 Offsetting of Financial Liabilities: Derivatives $ 50,561 $ (42,247) $ 8,314 $ (8,314) $ 0 Total Liabilities $ 50,561 $ (42,247) $ 8,314 $ (8,314) $ 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, 2024 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 $ (95) $ 0 $ 465 $ 482 $ 2,653 Total cash flow hedges (95) 0 465 482 2,653 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 1,554 0 0 0 0 Currency 197 0 0 0 0 Currency/Interest Rate 618 0 0 8 0 Credit 0 0 0 0 0 Equity 31,818 0 0 0 0 Embedded Derivatives (38,581) 0 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (4,394) 0 0 8 0 Total $ (4,489) $ 0 $ 465 $ 490 $ 2,653 Three Months Ended March 31, 2023 Realized Investment Gains (Losses) 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) |
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, 2023 $ 5,246 Amount recorded in AOCI Currency/Interest Rate 3,505 Total amount recorded in AOCI 3,505 Amount reclassified from AOCI to income Currency/Interest Rate (852) Total amount reclassified from AOCI to income (852) Balance, March 31, 2024 $ 7,899 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 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 $ 49,804 $ 0 $ $ 49,804 Obligations of U.S. states and their political subdivisions 0 174,504 0 174,504 Foreign government bonds 0 72,151 0 72,151 U.S. corporate public securities 0 1,306,166 0 1,306,166 U.S. corporate private securities 0 214,635 15,126 229,761 Foreign corporate public securities 0 160,362 0 160,362 Foreign corporate private securities 0 197,224 4,930 202,154 Asset-backed securities(2) 0 17,738 0 17,738 Commercial mortgage-backed securities 0 77,469 19,158 96,627 Residential mortgage-backed securities 0 15,160 0 15,160 Subtotal 0 2,285,213 39,214 2,324,427 Market risk benefit assets 0 0 492,992 492,992 Fixed maturities, trading 0 22,604 0 22,604 Equity securities 0 70 4,478 4,548 Short-term investments 4,953 6,941 0 11,894 Cash equivalents 5,989 155,649 0 161,638 Other invested assets(3) 0 89,334 0 (69,096) 20,238 Reinsurance recoverables 0 0 98,083 98,083 Receivables from parent and affiliates 0 0 11,117 11,117 Subtotal excluding separate account assets 10,942 2,559,811 645,884 (69,096) 3,147,541 Separate account assets(4)(5) 0 13,337,472 0 13,337,472 Total assets $ 10,942 $ 15,897,283 $ 645,884 $ (69,096) $ 16,485,013 Market risk benefit liabilities $ 0 $ 0 $ 492,992 $ $ 492,992 Policyholders' account balances 0 0 297,683 297,683 Payables to parent and affiliates 0 69,173 0 (69,173) 0 Total liabilities $ 0 $ 69,173 $ 790,675 $ (69,173) $ 790,675 December 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 $ 51,042 $ 0 $ $ 51,042 Obligations of U.S. states and their political subdivisions 0 182,538 0 182,538 Foreign government bonds 0 80,744 0 80,744 U.S. corporate public securities 0 1,350,933 0 1,350,933 U.S. corporate private securities 0 205,814 14,622 220,436 Foreign corporate public securities 0 164,785 0 164,785 Foreign corporate private securities 0 175,849 5,007 180,856 Asset-backed securities(2) 0 18,511 0 18,511 Commercial mortgage-backed securities 0 77,495 19,204 96,699 Residential mortgage-backed securities 0 15,551 0 15,551 Subtotal 0 2,323,262 38,833 2,362,095 Market risk benefit assets 0 0 537,659 537,659 Fixed maturities, trading 0 23,440 0 23,440 Equity securities 0 74 4,541 4,615 Short-term investments 0 3,459 0 3,459 Cash equivalents 24,928 160,330 0 185,258 Other invested assets(3) 0 40,150 0 (40,150) 0 Reinsurance recoverables 0 0 69,745 69,745 Subtotal excluding separate account assets 24,928 2,550,715 650,778 (40,150) 3,186,271 Separate account assets(4)(5) 0 12,914,412 0 12,914,412 Total assets $ 24,928 $ 15,465,127 $ 650,778 $ (40,150) $ 16,100,683 Market risk benefit liabilities $ 0 $ 0 $ 537,659 $ $ 537,659 Policyholders' account balances 0 0 237,316 237,316 Payables to parent and affiliates 0 50,561 0 (42,247) 8,314 Total liabilities $ 0 $ 50,561 $ 774,975 $ (42,247) $ 783,289 (1) “Netting” amounts represent cash collateral of $(0.1) million and $(2) million as of March 31, 2024 and December 31, 2023, respectively. (2) Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (3) Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value ("NAV") per share (or its equivalent) as a practical expedient. As of March 31, 2024 and December 31, 2023, the fair value of such investments was $4.1 million and $4.4 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. As of March 31, 2024 and December 31, 2023, the fair value of such investments was $1,184 million and $1,163 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, 2024 Fair Value Valuation Unobservable Minimum Maximum Weighted Impact of Increase in Input on Fair (in thousands) Assets: Corporate securities(2) $ 12,833 Discounted cash flow Discount rate 10.13 % 13.29 % 12.08 % Decrease Commercial mortgage-backed securities $ 19,158 Discounted cash flow Liquidity premium 0.60 % 0.75 % 0.66 % Decrease Market risk benefit assets(3) $ 492,992 Discounted cash flow Lapse rate(4) 1 % 20 % Increase Spread over SOFR(5) 0.33 % 1.80 % Increase Utilization rate(6) 38 % 95 % Decrease Withdrawal rate See table footnote (7) below. Mortality rate(8) 0 % 15 % Increase Equity volatility curve 15 % 25 % Decrease Liabilities: Market risk benefit liabilities(3) $ 492,992 Discounted cash flow Lapse rate(4) 1 % 20 % Decrease Spread over SOFR(5) 0.33 % 1.80 % Decrease Utilization rate(6) 38 % 95 % Increase Withdrawal rate See table footnote (7) below. Mortality rate(8) 0 % 15 % Decrease Equity volatility curve 15 % 25 % Increase Policyholders' account balances(9) $ 297,683 Discounted cash flow Lapse rate(4) 1 % 80 % Decrease Spread over SOFR(5) 0.33 % 1.80 % Decrease Mortality rate(8) 0 % 23 % Decrease Option budget(10) (1) % 7 % Increase December 31, 2023 Fair Value Valuation Unobservable Inputs Minimum Maximum Weighted Impact of Increase (in thousands) Assets: Commercial mortgage-backed securities $ 19,204 Discounted cash flow Liquidity premium 0.60 % 0.75 % 0.69 % Decrease Market risk benefit assets(3) $ 537,659 Discounted cash flow Lapse rate(4) 1 % 20 % Increase Spread over SOFR(5) 0.41 % 1.91 % Increase Utilization rate(6) 38 % 95 % Decrease Withdrawal rate See table footnote (7) below. Mortality rate(8) 0 % 15 % Increase Equity volatility curve 15 % 25 % Decrease Liabilities: Market risk benefit liabilities(3) $ 537,659 Discounted cash flow Lapse rate(4) 1 % 20 % Decrease Spread over SOFR(5) 0.41 % 1.91 % Decrease Utilization rate(6) 38 % 95 % Increase Withdrawal rate See table footnote (7) below. Mortality rate(8) 0 % 15 % Decrease Equity volatility curve 15 % 25 % Increase Policyholders' account balances(9) $ 237,316 Discounted cash flow Lapse rate(4) 1 % 80 % Decrease Spread over SOFR(5) 0.41 % 1.85 % Decrease Mortality rate(8) 0 % 23 % Decrease Option budget(10) (1) % 7 % 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 accumulation, 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 balances. (5) The spread over the Secured Overnight Financing Rate (“SOFR”) swap curve represents the premium added to the proxy for the risk-free rate (SOFR) 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, 2024 and December 31, 2023, respectively. This spread includes an estimate of non-performance risk ("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 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 March 31, 2024 and December 31, 2023, the minimum withdrawal rate assumption is 81% and the maximum withdrawal rate assumption may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%. (8) 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 a 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 budget 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 (excluding MRBs disclosed in Note 10). When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate. Three Months Ended March 31, 2024(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) $ 19,629 $ (68) $ 733 $ (51) $ 0 $ (187) $ 0 $ 0 $ 0 $ 20,056 $ (68) Structured securities(3) 19,204 47 0 0 0 (93) 0 0 0 19,158 56 Other assets: Equity securities 4,541 (335) 272 0 0 0 0 0 0 4,478 (335) Reinsurance recoverables(4) 69,745 (5,964) 34,302 0 0 0 0 0 0 98,083 (35,533) Receivables from parent and affiliates 0 0 11,117 0 0 0 0 0 0 11,117 0 Liabilities: Policyholders' account balances(4) (237,316) (32,725) 0 0 (27,642) 0 0 0 0 (297,683) (1,472) Three Months Ended March 31, 2024 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 $ (13) $ (8) $ 0 $ 0 $ (12) Other assets: Equity securities 0 (335) 0 0 0 (335) 0 Reinsurance recoverables (5,964) 0 0 0 (35,533) 0 0 Liabilities: Policyholders' account balances (32,725) 0 0 0 (1,472) 0 0 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 recoverables 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 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 recoverables 1,357 0 0 0 1,357 0 0 Liabilities: Policyholders' account balances (10,832) 0 0 0 (13,914) 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 and foreign corporate private securities. (3) Includes commercial mortgage-backed securities. (4) Purchases/issuances and settlements for Policyholders' account balances and Reinsurance recoverables are presented net in the rollforward. (5) Excludes MRB assets of $493 million and $563 million and MRB liabilities of $493 million and $563 million for period ending March 31, 2024 and 2023, respectively. See Note 10 for additional information. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods (excluding MRBs disclosed in Note 10). When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate. Three Months Ended March 31, 2024(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) $ 19,629 $ (68) $ 733 $ (51) $ 0 $ (187) $ 0 $ 0 $ 0 $ 20,056 $ (68) Structured securities(3) 19,204 47 0 0 0 (93) 0 0 0 19,158 56 Other assets: Equity securities 4,541 (335) 272 0 0 0 0 0 0 4,478 (335) Reinsurance recoverables(4) 69,745 (5,964) 34,302 0 0 0 0 0 0 98,083 (35,533) Receivables from parent and affiliates 0 0 11,117 0 0 0 0 0 0 11,117 0 Liabilities: Policyholders' account balances(4) (237,316) (32,725) 0 0 (27,642) 0 0 0 0 (297,683) (1,472) Three Months Ended March 31, 2024 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 $ (13) $ (8) $ 0 $ 0 $ (12) Other assets: Equity securities 0 (335) 0 0 0 (335) 0 Reinsurance recoverables (5,964) 0 0 0 (35,533) 0 0 Liabilities: Policyholders' account balances (32,725) 0 0 0 (1,472) 0 0 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 recoverables 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 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 recoverables 1,357 0 0 0 1,357 0 0 Liabilities: Policyholders' account balances (10,832) 0 0 0 (13,914) 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 and foreign corporate private securities. (3) Includes commercial mortgage-backed securities. (4) Purchases/issuances and settlements for Policyholders' account balances and Reinsurance recoverables are presented net in the rollforward. (5) Excludes MRB assets of $493 million and $563 million and MRB liabilities of $493 million and $563 million for period ending March 31, 2024 and 2023, respectively. See Note 10 for additional information. |
Fair Value Disclosure Financial Instruments Not Carried at Fair Value | The tables below present the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Unaudited Interim Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value. March 31, 2024 Fair Value Carrying Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 260,082 $ 260,082 $ 263,600 Policy loans 0 0 1,116,711 1,116,711 1,116,711 Short-term investments 1,500 0 0 1,500 1,500 Cash and cash equivalents 14,602 0 0 14,602 14,602 Accrued investment income 0 64,442 0 64,442 64,442 Reinsurance recoverables 0 0 21,774 21,774 23,385 Receivables from parent and affiliates 0 53,049 0 53,049 53,049 Other assets 0 3,468 0 3,468 3,468 Total assets $ 16,102 $ 120,959 $ 1,398,567 $ 1,535,628 $ 1,540,757 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 141,634 $ 30,402 $ 172,036 $ 173,647 Cash collateral for loaned securities 0 0 0 0 0 Payables to parent and affiliates 0 1,185 0 1,185 1,185 Other liabilities 0 49,276 0 49,276 49,276 Total liabilities $ 0 $ 192,095 $ 30,402 $ 222,497 $ 224,108 December 31, 2023 Fair Value Carrying Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 237,993 $ 237,993 $ 239,629 Policy loans 0 0 1,115,096 1,115,096 1,115,096 Short-term investments 2,500 0 0 2,500 2,500 Cash and cash equivalents 1,125 0 0 1,125 1,125 Accrued investment income 0 53,906 0 53,906 53,906 Reinsurance recoverables 0 0 22,155 22,155 23,537 Receivables from parent and affiliates 0 24,502 0 24,502 24,502 Other assets 0 4,363 0 4,363 4,363 Total assets $ 3,625 $ 82,771 $ 1,375,244 $ 1,461,640 $ 1,464,658 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 148,542 $ 30,945 $ 179,487 $ 180,868 Payables to parent and affiliates 0 1,066 0 1,066 1,066 Other liabilities 0 52,027 0 52,027 52,027 Total liabilities $ 0 $ 201,635 $ 30,945 $ 232,580 $ 233,961 (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, 2024 | |
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: Three Months Ended March 31, 2024 Term Life Variable / Universal Life Total (in thousands) Balance, beginning of period $ 82,007 $ 311,131 $ 393,138 Capitalization 4,894 11,191 16,085 Amortization expense (2,028) (3,692) (5,720) Other(1) 0 (5,420) (5,420) Balance, end of period $ 84,873 $ 313,210 $ 398,083 (1) Other includes the impact of the Universal Life reinsurance transaction with Prudential Arizona Reinsurance Universal Company (“PAR U”) and PURE. See Note 11 for additional information. Three Months Ended 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 |
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: Three Months Ended March 31, 2024 2023 Variable Annuities (in thousands) Balance, beginning of period $ 15,968 $ 17,425 Amortization expense (358) (378) Other 1 0 Balance, end of period $ 15,611 $ 17,047 |
Deferred Insurance Gains | The following tables show a rollforward of DRG balances for variable and universal life products, which are the only lines of business that contain a DRG balance, along with a reconciliation to the Company's total DRG balance: Three Months Ended March 31, 2024 2023 Variable / Universal Life (in thousands) Balance, beginning of period $ 0 $ 0 Amortization expense (2,246) 0 Other(1) 198,641 0 Balance, end of period $ 196,395 $ 0 (1) Other includes the impact of the Universal Life reinsurance transaction with PAR U, PURE and Prudential Insurance. See Note 11 for additional information. |
Separate Accounts (Tables)
Separate Accounts (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Insurance [Abstract] | |
Separate Account Assets | The aggregate fair value of assets, by major investment asset category, supporting separate accounts is as follows: March 31, 2024 December 31, 2023 (in thousands) Asset Type: Mutual funds: Equity $ 8,840,722 $ 8,299,099 Fixed Income 3,751,231 3,901,137 Other 745,519 714,176 Other invested assets 1,183,526 1,162,691 Total $ 14,520,998 $ 14,077,103 |
Separate Account Liabilities | The balances of and changes in separate account liabilities as of and for the periods indicated are as follows: Three Months Ended March 31, 2024 Variable Annuities Variable Life Total (in thousands) Balance, beginning of period $ 9,064,177 $ 5,012,926 $ 14,077,103 Deposits 14,902 51,409 66,311 Investment performance 387,889 370,777 758,666 Policy charges (53,559) (26,763) (80,322) Surrenders and withdrawals (266,474) (17,144) (283,618) Benefit payments (1,506) (10,415) (11,921) Net transfers (to) from general account (3,588) (11,402) (14,990) Other 178 9,591 9,769 Balance, end of period $ 9,142,019 $ 5,378,979 $ 14,520,998 Cash surrender value(1) $ 9,014,812 $ 5,258,835 $ 14,273,647 Three Months Ended 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) 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, 2024 | |
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. Three Months Ended March 31, 2024 Present Value of Expected Net Premiums Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 1,389,421 $ 0 $ 1,389,421 Effect of cumulative changes in discount rate assumptions, beginning of period 29,313 0 29,313 Balance at original discount rate, beginning of period 1,418,734 0 1,418,734 Effect of actual variances from expected experience and other activity (21,792) 90 (21,702) Adjusted balance, beginning of period 1,396,942 90 1,397,032 Issuances 24,393 639 25,032 Net premiums / considerations collected (40,799) (729) (41,528) Interest accrual 16,394 0 16,394 Balance at original discount rate, end of period 1,396,930 0 1,396,930 Effect of cumulative changes in discount rate assumptions, end of period (56,897) 0 (56,897) Balance, end of period $ 1,340,033 $ 0 $ 1,340,033 Three Months Ended March 31, 2024 Present Value of Expected Future Policy Benefits Term Life Fixed Annuities Total (in thousands) Balance, beginning of period $ 2,619,569 $ 18,489 $ 2,638,058 Effect of cumulative changes in discount rate assumptions, beginning of period 44,322 1,510 45,832 Balance at original discount rate, beginning of period 2,663,891 19,999 2,683,890 Effect of actual variances from expected experience and other activity (29,994) 62 (29,932) Adjusted balance, beginning of period 2,633,897 20,061 2,653,958 Issuances 24,393 639 25,032 Interest accrual 32,144 177 32,321 Benefit payments (32,730) (654) (33,384) Other adjustments (899) 1 (898) Balance at original discount rate, end of period 2,656,805 20,224 2,677,029 Effect of cumulative changes in discount rate assumptions, end of period (105,493) (1,796) (107,289) Balance, end of period $ 2,551,312 $ 18,428 $ 2,569,740 Three Months Ended March 31, 2024 Net Liability for Future Policy Benefits (Benefit Reserves) Term Life Fixed Annuities Total (in thousands) Balance, end of period, pre-flooring $ 1,211,279 $ 18,428 $ 1,229,707 Flooring impact, end of period 14 0 14 Balance, end of period, post-flooring $ 1,211,293 $ 18,428 $ 1,229,721 Less: Reinsurance recoverables 1,036,843 18,428 1,055,271 Balance after reinsurance recoverables, end of period, post-flooring $ 174,450 $ 0 $ 174,450 Three Months Ended 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 and other activity (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 Three Months Ended 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 Three Months Ended 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 recoverables 1,036,995 17,336 1,054,331 Balance after reinsurance recoverables, end of period, post-flooring $ 151,341 $ 0 $ 151,341 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: Three Months Ended March 31, 2024 Term Life Fixed Annuities ($ in thousands) Undiscounted expected future gross premiums $ 3,007,181 $ 0 Discounted expected future gross premiums (at original discount rate) $ 2,011,489 $ 0 Discounted expected future gross premiums (at current discount rate) $ 1,938,769 $ 0 Undiscounted expected future benefits and expenses $ 4,286,686 $ 26,109 Interest accrual $ 15,749 $ 177 Gross premiums $ 59,673 $ 950 Weighted-average duration of the liability in years (at original discount rate) 10 6 Weighted-average duration of the liability in years (at current discount rate) 10 5 Weighted-average interest rate (at original discount rate) 5.26 % 3.71 % Weighted-average interest rate (at current discount rate) 5.31 % 5.21 % Three Months Ended 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 % The balances of and changes in DPL as of and for the periods indicated are as follows: Three Months Ended March 31, 2024 2023 Fixed Annuities (in thousands) Balance, beginning of period, post flooring $ 1,365 $ 1,684 Effect of actual variances from expected experience and other activity 34 (107) Adjusted balance, beginning of period 1,399 1,577 Profits deferred 216 0 Interest accrual 14 13 Amortization (53) (45) Balance, end of period, post-flooring 1,576 1,545 Less: Reinsurance recoverables 1,576 1,545 Balance after reinsurance recoverables, end of period $ 0 $ 0 The following table provides supplemental information related to the balances of and changes in DPL, included in the disaggregated table above, on a gross (direct and assumed) basis, as of and for the period indicated: Three Months Ended March 31, 2024 2023 Fixed Annuities (in thousands) Revenue(1) $ (211) $ 139 Interest accrual 14 13 (1) Represents the gross premiums collected in changes in DPL. The following table shows a rollforward of AIR balances for variable and universal life products for the periods indicated: Three Months Ended March 31, 2024 2023 (in thousands) Balance including amounts in AOCI, beginning of period, post-flooring $ 986,166 $ 827,478 Flooring impact and amounts in AOCI 56,487 91,115 Balance, excluding amounts in AOCI, beginning of period, pre-flooring 1,042,653 918,593 Effect of actual variances from expected experience and other activity 17,115 (342) Adjusted balance, beginning of period 1,059,768 918,251 Assessments collected(1) 23,439 14,827 Interest accrual 8,986 7,840 Benefits paid (5,955) (3,995) Balance, excluding amounts in AOCI, end of period, pre-flooring 1,086,238 936,923 Flooring impact and amounts in AOCI (103,881) (65,818) Balance, including amounts in AOCI, end of period, post-flooring 982,357 871,105 Less: Reinsurance recoverables 956,650 834,640 Balance after reinsurance recoverables, including amounts in AOCI, end of period $ 25,707 $ 36,465 (1) Represents the portion of gross assessments required to fund the future policy benefits. Three Months Ended March 31, 2024 2023 ($ in thousands) Interest accrual $ 8,986 $ 7,840 Gross assessments $ 56,772 $ 46,941 Weighted-average duration of the liability in years (at original discount rate) 27 28 Weighted-average interest rate (at original discount rate) 3.43 % 3.42 % The following table presents the reconciliation of the ending balances from the above rollforwards, Benefit Reserves, DPL, and AIR, 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: Three Months Ended March 31, 2024 2023 (in thousands) Benefit reserves, end of period, post-flooring $ 1,229,721 $ 1,205,672 Deferred profit liability, end of period, post-flooring 1,576 1,545 Additional insurance reserves, including amounts in AOCI, end of period, post-flooring 982,357 871,105 Subtotal of amounts disclosed above 2,213,654 2,078,322 Other Future policy benefits reserves(1) 176,241 149,309 Total Future policy benefits $ 2,389,895 $ 2,227,631 (1) Primarily 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, DPL, and AIR, 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: Three Months Ended March 31, 2024 Revenues(1) Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 950 $ 59,673 $ 0 $ 60,623 Deferred profit liability (211) 0 0 (211) Additional insurance reserves 0 0 56,772 56,772 Total $ 739 $ 59,673 $ 56,772 $ 117,184 Three Months Ended March 31, 2023 Revenues(1) Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 112 $ 61,365 $ 0 $ 61,477 Deferred profit liability 139 0 0 139 Additional insurance reserves 0 0 46,941 46,941 Total $ 251 $ 61,365 $ 46,941 $ 108,557 (1) Represents "Gross premiums" for benefit reserves; "Revenue" for DPL and "Gross assessments" for AIR. Three Months Ended March 31, 2024 Interest Expense Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 177 $ 15,749 $ 0 $ 15,926 Deferred profit liability 14 0 0 14 Additional insurance reserves 0 0 8,986 8,986 Total $ 191 $ 15,749 $ 8,986 $ 24,926 Three Months Ended March 31, 2023 Interest Expense Fixed Annuities Term Life Variable and Universal Life Total (in thousands) Benefit reserves $ 171 $ 15,338 $ 0 $ 15,509 Deferred profit liability 13 0 0 13 Additional insurance reserves 0 0 7,840 7,840 Total $ 184 $ 15,338 $ 7,840 $ 23,362 |
Policyholders' Liabilities (Tab
Policyholders' Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities [Abstract] | |
Policyholder Account Balance | The balances of and changes in policyholders' account balances as of and for the periods ended are as follows: Three Months Ended March 31, 2024 Fixed Annuities Variable Annuities Variable Life / Universal Life Total ($ in thousands) Balance, beginning of period $ 35,025 $ 592,581 $ 3,028,746 $ 3,656,352 Deposits 1,104 100,818 54,248 156,170 Interest credited 212 3,909 15,275 19,396 Policy charges (14) (49) (36,657) (36,720) Surrenders and withdrawals (1,473) (11,039) (33,506) (46,018) Benefit payments (155) (713) (2,681) (3,549) Net transfers (to) from separate account 0 3,588 11,402 14,990 Change in market value and other adjustments(1) 0 29,526 3,199 32,725 Balance, end of period $ 34,699 $ 718,621 $ 3,040,026 $ 3,793,346 Unearned revenue reserve 383,842 Other 9,568 Total Policyholders' account balance $ 4,186,756 Weighted-average crediting rate 2.43 % 2.38 % 2.01 % 2.08 % Net amount at risk(2) $ 0 $ 0 $ 34,482,721 $ 34,482,721 Cash surrender value(3) $ 8,414 $ 690,349 $ 2,708,499 $ 3,407,262 Three Months Ended March 31, 2023 Fixed Annuities(4) Variable Annuities Variable Life / Universal Life Total ($ in thousands) Balance, beginning of period $ 39,406 $ 327,124 $ 2,084,680 $ 2,451,210 Deposits 707 25,558 57,220 83,485 Interest credited 252 2,015 13,972 16,239 Policy charges (14) (40) (36,360) (36,414) Surrenders and withdrawals (2,027) (8,163) (29,361) (39,551) Benefit payments (154) (1,647) (422) (2,223) Net transfers (to) from separate account 0 (913) (28,189) (29,102) Change in market value and other adjustments(1) 0 (131) 10,436 10,305 Balance, end of period $ 38,170 $ 343,803 $ 2,071,976 $ 2,453,949 Unearned revenue reserve 328,956 Other(4) 9,386 Total Policyholders' account balance $ 2,792,291 Weighted-average crediting rate 2.59 % 2.40 % 2.69 % 2.65 % Net amount at risk (2) $ 0 $ 0 $ 33,887,277 $ 33,887,277 Cash surrender value(3) $ 10,074 $ 322,593 $ 1,733,643 $ 2,066,310 (1) Primarily relates to changes in the value of embedded derivative instruments associated with the indexed options of certain products. (2) The net amount at risk calculation includes both general and separate account balances. (3) Represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. (4) Prior period amounts have been updated to conform to current period presentation. |
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, 2024 Range of Guaranteed Minimum Crediting Rate(1) 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) Fixed Annuities Less than 1.00% $ 0 $ 0 $ 0 $ 0 $ 0 1.00% - 1.99% 1,042 0 0 0 1,042 2.00% - 2.99% 18,421 0 0 0 18,421 3.00% - 4.00% 7,586 0 0 0 7,586 Greater than 4.00% 0 0 0 0 0 Total $ 27,049 $ 0 $ 0 $ 0 $ 27,049 Variable Annuities Less than 1.00% $ 1,720 $ 0 $ 0 $ 0 $ 1,720 1.00% - 1.99% 168,733 6,572 0 0 175,305 2.00% - 2.99% 1,329 0 0 0 1,329 3.00% - 4.00% 107,051 1,017 0 0 108,068 Greater than 4.00% 132 0 0 0 132 Total $ 278,965 $ 7,589 $ 0 $ 0 $ 286,554 Variable Life / Universal Life Less than 1.00% $ 0 $ 0 $ 0 $ 29,485 $ 29,485 1.00% - 1.99% 23,881 0 279,047 192,989 495,917 2.00% - 2.99% 4,372 159,463 197,155 16,753 377,743 3.00% - 4.00% 247,602 259,014 899,849 0 1,406,465 Greater than 4.00% 370,186 0 0 0 370,186 Total $ 646,041 $ 418,477 $ 1,376,051 $ 239,227 $ 2,679,796 March 31, 2023 Range of Guaranteed Minimum Crediting Rate(1) 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) Fixed Annuities(2) Less than 1.00% $ 0 $ 0 $ 0 $ 0 $ 0 1.00% - 1.99% 1,284 0 0 0 1,284 2.00% - 2.99% 20,243 0 0 0 20,243 3.00% - 4.00% 9,099 0 0 0 9,099 Greater than 4.00% 0 0 0 0 0 Total $ 30,626 $ 0 $ 0 $ 0 $ 30,626 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 Life / 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 |
Additional Liability, Long-Duration Insurance | : Three Months Ended March 31, 2024 2023 Variable Life / Universal Life (in thousands) Balance, beginning of period $ 370,258 $ 313,711 Unearned revenue 17,995 19,030 Amortization expense (4,411) (3,785) Balance, end of period $ 383,842 $ 328,956 Less: Reinsurance recoverables 103,852 85,048 Balance after reinsurance recoverables, end of period $ 279,990 $ 243,908 |
Market Risk Benefits (Tables)
Market Risk Benefits (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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: Three Months Ended March 31, 2024 Variable Annuities Less: Reinsured Market Risk Benefits Total, Net of Reinsurance (in thousands) Balance, beginning of period $ 301,771 $ (301,771) $ 0 Effect of cumulative changes in non-performance risk 100,377 0 100,377 Balance, beginning of period, before effect of changes in non-performance risk 402,148 (301,771) 100,377 Attributed fees collected 26,214 (26,214) 0 Claims paid (761) 761 0 Interest accrual 5,813 (5,813) 0 Actual in force different from expected 518 (518) 0 Effect of changes in interest rates (78,746) 78,746 0 Effect of changes in equity markets (73,358) 73,358 0 Issuances 650 (650) 0 Other adjustments 585 (585) 0 Effect of changes in current period counterparty non-performance risk 0 (21,341) (21,341) Balance, end of period, before effect of changes in non-performance risk 283,063 (204,027) 79,036 Effect of cumulative changes in non-performance risk (79,036) 0 (79,036) Balance, end of period $ 204,027 $ (204,027) $ 0 Three Months Ended 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 The following table presents accompanying information to the rollforward table above. March 31, 2024 March 31, 2023 Variable Annuities ($ in thousands) Net amount at risk(1) $ 680,353 $ 877,211 Weighted-average attained age of contractholders 70 68 (1) For contracts with multiple benefit features, the highest net amount at risk for each contract is included. The table below reconciles MRB asset and liability positions as of the following dates: March 31, 2024 March 31, 2023 Variable Annuities (in thousands) Direct and assumed $ 144,482 $ 83,298 Ceded 348,510 479,624 Total market risk benefit assets $ 492,992 $ 562,922 Direct and assumed $ 348,510 $ 479,624 Ceded 144,482 83,298 Total market risk benefit liabilities $ 492,992 $ 562,922 Net balance $ 0 $ 0 |
Reinsurance (Tables)
Reinsurance (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Impact on Statements of Financial Position | Reinsurance amounts included in the Company’s Unaudited Interim Statements of Financial Position were as follows: March 31, 2024 December 31, 2023 (in thousands) Reinsurance recoverables $ 4,008,437 $ 3,603,225 Policy loans (26,977) (24,518) Deferred policy acquisition costs (620,920) (620,878) Deferred sales inducements (34,683) (35,313) Market risk benefit assets 348,510 419,715 Other assets 39,911 40,267 Market risk benefit liabilities 144,482 117,944 Other liabilities 953,708 412,919 |
Reinsurance Recoverable by Counterparty | Reinsurance recoverables by counterparty are as follows: March 31, 2024 December 31, 2023 (in thousands) Prudential Insurance $ 1,172,091 $ 724,297 PAR U 780,799 1,725,753 PARCC 416,267 432,554 PAR Term 278,626 279,990 Term Re 270,803 275,721 DART 100,666 102,611 Pruco Life 56,590 57,509 PURE 929,034 0 Unaffiliated 3,561 4,790 Total reinsurance recoverables $ 4,008,437 $ 3,603,225 |
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, 2024 2023 (in thousands) Premiums: Direct $ 59,878 $ 62,583 Ceded (48,719) (52,406) Net premiums 11,159 10,177 Policy charges and fee income: Direct 90,440 86,513 Assumed 13,066 0 Ceded(1) 226,078 (72,375) Net policy charges and fee income 329,584 14,138 Net investment income: Direct 50,372 28,886 Ceded (345) (226) Net investment income 50,027 28,660 Asset administration fees: Direct 9,290 8,776 Ceded (6,668) (6,696) Net asset administration fees 2,622 2,080 Other income (loss): Direct (985) 1,145 Ceded 2,311 1 Net other income 1,326 1,146 Realized investment gains (losses), net: Direct 1,265 (9,457) Ceded (5,856) 1,159 Realized investment gains (losses), net (4,591) (8,298) Change in value of market risk benefits, net of related hedging gain (loss): Direct 145,162 (13,801) Ceded (123,821) (1,927) Net change in value of market risk benefits, net of related hedging gain (loss) 21,341 (15,728) Policyholders’ benefits (including change in reserves): Direct 137,781 107,337 Ceded(2) 409,677 (88,998) Net policyholders’ benefits (including change in reserves) 547,458 18,339 Change in estimates of liability for future policy benefits: Direct 9,247 (3,917) Ceded (13,075) 2,475 Net change in estimates of liability for future policy benefits (3,828) (1,442) Interest credited to policyholders’ account balances: Direct 30,405 18,022 Ceded (10,383) (7,885) Net interest credited to policyholders’ account balances 20,022 10,137 Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization (62,055) (32,950) (1) Includes $(1.3) million of unaffiliated activity for each of the three months ended March 31, 2024 and 2023. (2) Includes $0.0 million of unaffiliated activity for each of the three months ended March 31, 2024 and 2023. |
Gross and Net Life Insurance in Force | The gross and net amounts of life insurance face amount in force as of March 31, 2024 and 2023 were as follows: 2024 2023 (in thousands) Direct gross life insurance face amount in force $ 154,609,232 $ 154,115,666 Reinsurance ceded (141,317,963) (139,826,733) Net life insurance face amount in force $ 13,291,269 $ 14,288,933 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and 2023, 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, 2023 $ (1,079) $ (130,117) $ 4,369 $ 79,300 $ (47,527) Change in OCI before reclassifications (100) (42,547) 6,463 (21,341) (57,525) Amounts reclassified from AOCI 0 (751) 0 0 (751) Income tax benefit (expense) 16 9,098 (1,357) 4,481 12,238 Balance, March 31, 2024 $ (1,163) $ (164,317) $ 9,475 $ 62,440 $ (93,565) 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 (1) Includes cash flow hedges of $8 million and $5 million as of March 31, 2024 and December 31, 2023, respectively, and $13 million and $14 million as of March 31, 2023 and December 31, 2022, respectively . |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of Accumulated Other Comprehensive Income (Loss) Three Months Ended 2024 2023 (in thousands) Amounts reclassified from AOCI(1)(2): Net unrealized investment gains (losses): Cash flow hedges - Currency/Interest rate(3) $ 852 $ 387 Net unrealized investment gains (losses) on available-for-sale securities (101) (26) Total net unrealized investment gains (losses)(4) 751 361 Total reclassifications for the period $ 751 $ 361 (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 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 | Net Unrealized Investment Gains (Losses) on Available-for-Sale Fixed Maturity Securities on Which an Allowance for Credit Losses has been Recognized Net Unrealized Gains (Losses) on All Other Other Costs(2) Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(3) Income Tax Accumulated Other Comprehensive (in thousands) Balance, December 31, 2023 $ 0 $ (192,271) $ (52,266) $ 79,826 $ 34,594 $ (130,117) Net investment gains (losses) on investments arising during the period (3) (49,107) 0 0 10,319 (38,791) Reclassification adjustment for (gains) losses included in net income 0 (751) 0 0 158 (593) Impact of net unrealized investment (gains) losses 0 0 (46,572) 53,135 (1,379) 5,184 Balance, March 31, 2024 $ (3) $ (242,129) $ (98,838) $ 132,961 $ 43,692 $ (164,317) (1) Includes cash flow hedges. See Note 4 for information on cash flow hedges. (2) "Other costs" primarily includes reinsurance recoverables. (3) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Affiliated Notes Receivable | Affiliated notes receivable included in “Receivables from parent and affiliates” at March 31, 2024 and December 31, 2023 is as follows: Maturity Dates Interest Rates March 31, 2024 December 31, 2023 (in thousands) U.S. dollar fixed rate notes 2032 0.00% - 14.85 % $ 11,117 $ 0 Total notes receivable - affiliated(1) $ 11,117 $ 0 (1) |
Affiliated Asset Transfers | The table below shows affiliated asset trades for the three months ended March 31, 2024 and for the year ended December 31, 2023. Affiliate Date Transaction Security Type Fair Value Book Value APIC, Net of Tax Increase/(Decrease) Realized (in thousands) Prudential Insurance June 2023 Purchase Fixed Maturities $ 14,452 $ 15,086 $ 501 $ 0 Prudential Insurance December 2023 Sale Commercial Mortgage and Other Loans $ 762 $ 754 $ 0 $ 8 PAR U January 2024 Transfer in Fixed Maturities $ 778,745 $ 778,745 $ 0 $ 0 PURE January 2024 Transfer out Fixed Maturities $ 778,745 $ 778,745 $ 0 0 |
Investments (Fixed Maturities S
Investments (Fixed Maturities Securities Excluding Investments Classified as Trading) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 2,574,841 | $ 2,559,973 |
Gross Unrealized Gains | 11,968 | 23,116 |
Gross Unrealized Losses | 262,382 | 220,990 |
Allowance for Credit Loss | 0 | 4 |
Fair Value | 2,324,427 | 2,362,095 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 52,046 | 52,196 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 2,242 | 1,154 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 49,804 | 51,042 |
Obligations of U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 178,895 | 184,419 |
Gross Unrealized Gains | 180 | 952 |
Gross Unrealized Losses | 4,571 | 2,833 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 174,504 | 182,538 |
Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 89,137 | 95,189 |
Gross Unrealized Gains | 110 | 248 |
Gross Unrealized Losses | 17,096 | 14,693 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 72,151 | 80,744 |
U.S. public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,476,050 | 1,485,406 |
Gross Unrealized Gains | 6,608 | 13,428 |
Gross Unrealized Losses | 176,492 | 147,901 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 1,306,166 | 1,350,933 |
U.S. private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 239,170 | 227,342 |
Gross Unrealized Gains | 1,216 | 1,978 |
Gross Unrealized Losses | 10,625 | 8,884 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 229,761 | 220,436 |
Foreign public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 185,262 | 185,601 |
Gross Unrealized Gains | 605 | 1,173 |
Gross Unrealized Losses | 25,505 | 21,989 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 160,362 | 164,785 |
Foreign private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 216,638 | 190,545 |
Gross Unrealized Gains | 3,017 | 5,102 |
Gross Unrealized Losses | 17,501 | 14,791 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 202,154 | 180,856 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 18,392 | 19,440 |
Gross Unrealized Gains | 61 | 40 |
Gross Unrealized Losses | 715 | 969 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 17,738 | 18,511 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 103,552 | 104,055 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 6,925 | 7,356 |
Allowance for Credit Loss | 0 | 0 |
Fair Value | 96,627 | 96,699 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 15,699 | 15,780 |
Gross Unrealized Gains | 171 | 195 |
Gross Unrealized Losses | 710 | 420 |
Allowance for Credit Loss | 0 | 4 |
Fair Value | $ 15,160 | $ 15,551 |
Investments (Fair Value and Los
Investments (Fair Value and Losses by Investment Category and Length of Time in a Loss Position) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | $ 353,713 | $ 209,760 |
Less than Twelve Months, Gross Unrealized Losses | 8,881 | 4,369 |
Twelve Months or More, Fair Value | 1,489,736 | 1,489,475 |
Twelve Months or More, Gross Unrealized Losses | 253,501 | 216,621 |
Total, Fair Value | 1,843,449 | 1,699,235 |
Total, Gross Unrealized Losses | 262,382 | 220,990 |
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 | 47,910 | 49,081 |
Less than Twelve Months, Gross Unrealized Losses | 2,019 | 936 |
Twelve Months or More, Fair Value | 1,895 | 1,962 |
Twelve Months or More, Gross Unrealized Losses | 223 | 218 |
Total, Fair Value | 49,805 | 51,043 |
Total, Gross Unrealized Losses | 2,242 | 1,154 |
Obligations of U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 62,045 | 22,856 |
Less than Twelve Months, Gross Unrealized Losses | 809 | 186 |
Twelve Months or More, Fair Value | 68,749 | 61,445 |
Twelve Months or More, Gross Unrealized Losses | 3,762 | 2,647 |
Total, Fair Value | 130,794 | 84,301 |
Total, Gross Unrealized Losses | 4,571 | 2,833 |
Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 6,615 | 5,656 |
Less than Twelve Months, Gross Unrealized Losses | 345 | 91 |
Twelve Months or More, Fair Value | 60,867 | 69,066 |
Twelve Months or More, Gross Unrealized Losses | 16,751 | 14,602 |
Total, Fair Value | 67,482 | 74,722 |
Total, Gross Unrealized Losses | 17,096 | 14,693 |
U.S. public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 134,178 | 86,203 |
Less than Twelve Months, Gross Unrealized Losses | 3,495 | 1,688 |
Twelve Months or More, Fair Value | 919,800 | 913,776 |
Twelve Months or More, Gross Unrealized Losses | 172,997 | 146,213 |
Total, Fair Value | 1,053,978 | 999,979 |
Total, Gross Unrealized Losses | 176,492 | 147,901 |
U.S. private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 53,707 | 27,883 |
Less than Twelve Months, Gross Unrealized Losses | 864 | 366 |
Twelve Months or More, Fair Value | 116,803 | 117,409 |
Twelve Months or More, Gross Unrealized Losses | 9,761 | 8,518 |
Total, Fair Value | 170,510 | 145,292 |
Total, Gross Unrealized Losses | 10,625 | 8,884 |
Foreign public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 21,352 | 5,029 |
Less than Twelve Months, Gross Unrealized Losses | 275 | 135 |
Twelve Months or More, Fair Value | 116,680 | 115,462 |
Twelve Months or More, Gross Unrealized Losses | 25,230 | 21,854 |
Total, Fair Value | 138,032 | 120,491 |
Total, Gross Unrealized Losses | 25,505 | 21,989 |
Foreign private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 19,546 | 5,007 |
Less than Twelve Months, Gross Unrealized Losses | 385 | 51 |
Twelve Months or More, Fair Value | 95,331 | 98,159 |
Twelve Months or More, Gross Unrealized Losses | 17,116 | 14,740 |
Total, Fair Value | 114,877 | 103,166 |
Total, Gross Unrealized Losses | 17,501 | 14,791 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 8,334 | 7,899 |
Less than Twelve Months, Gross Unrealized Losses | 687 | 914 |
Twelve Months or More, Fair Value | 2,322 | 4,775 |
Twelve Months or More, Gross Unrealized Losses | 28 | 55 |
Total, Fair Value | 10,656 | 12,674 |
Total, Gross Unrealized Losses | 715 | 969 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 0 | 0 |
Less than Twelve Months, Gross Unrealized Losses | 0 | 0 |
Twelve Months or More, Fair Value | 96,627 | 96,699 |
Twelve Months or More, Gross Unrealized Losses | 6,925 | 7,356 |
Total, Fair Value | 96,627 | 96,699 |
Total, Gross Unrealized Losses | 6,925 | 7,356 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 26 | 146 |
Less than Twelve Months, Gross Unrealized Losses | 2 | 2 |
Twelve Months or More, Fair Value | 10,662 | 10,722 |
Twelve Months or More, Gross Unrealized Losses | 708 | 418 |
Total, Fair Value | 10,688 | 10,868 |
Total, Gross Unrealized Losses | $ 710 | $ 420 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Schedule of Investments [Line Items] | |||
Gross Unrealized Loss | $ 262,382 | $ 220,990 | |
Gross unrealized losses of twelve months or more concentrated in various sectors | 253,501 | 216,621 | |
Loans acquired | 0 | $ 0 | |
Loans sold | 0 | 0 | |
Fixed Maturities purchased with Credit Deterioration | 0 | 0 | |
Accrued Investment Income Write Down | 0 | 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 | $ 254,000 | $ 217,000 | |
Other Income | Fixed maturities | Trading | |||
Schedule of Investments [Line Items] | |||
Unrealized Gain (Loss) on Investments | (400) | 600 | |
Other Income | Equity securities | |||
Schedule of Investments [Line Items] | |||
Unrealized Gain (Loss) on Investments | $ (300) | $ 0 | |
Texas | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, Percentage | 9% | ||
Florida | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, Percentage | 9% | ||
Washington | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, Percentage | 8% | ||
Europe | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, Percentage | 9% | ||
Mexico | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, Percentage | 4% | ||
NAIC High or Highest Quality Rating | Fixed maturities | |||
Schedule of Investments [Line Items] | |||
Gross Unrealized Loss | $ 259,000 | 218,000 | |
NAIC Other Than High or Highest Quality Rating | Fixed maturities | |||
Schedule of Investments [Line Items] | |||
Gross Unrealized Loss | $ 4,000 | $ 3,000 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturities) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Amortized Cost | ||
Due in one year or less | $ 81,243 | |
Due after one year through five years | 394,300 | |
Due after five years through ten years | 231,972 | |
Due after ten years | 1,729,683 | |
Amortized Cost | 2,574,841 | $ 2,559,973 |
Fair value | ||
Due in one year or less | 77,627 | |
Due after one year through five years | 385,027 | |
Due after five years through ten years | 227,175 | |
Due after ten years | 1,505,073 | |
Fair Value | 2,324,427 | 2,362,095 |
Asset-backed securities | ||
Amortized Cost | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 18,392 | |
Amortized Cost | 18,392 | 19,440 |
Fair value | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 17,738 | |
Fair Value | 17,738 | 18,511 |
Commercial mortgage-backed securities | ||
Amortized Cost | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 103,552 | |
Amortized Cost | 103,552 | 104,055 |
Fair value | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 96,627 | |
Fair Value | 96,627 | 96,699 |
Residential mortgage-backed securities | ||
Amortized Cost | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 15,699 | |
Amortized Cost | 15,699 | 15,780 |
Fair value | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 15,160 | |
Fair Value | $ 15,160 | $ 15,551 |
Investments (Fixed Maturities_2
Investments (Fixed Maturities Securities Proceeds) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Securities, Available-for-sale [Line Items] | ||
Proceeds from maturities/prepayments | $ 28,718 | $ 33,170 |
Fixed maturities | Available-for-sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Proceeds from sales | 2,155 | 886 |
Proceeds from maturities/prepayments | 26,605 | 32,121 |
Gross investment gains from sales and maturities | 64 | 29 |
Debt Securities, Available-for-Sale, Realized Loss | (169) | (415) |
(Addition to) release of allowance for credit losses | 4 | 360 |
Noncash or Part Noncash Divestiture, Amount of Consideration Received | $ 0 | $ 200 |
Investments (Credit Losses Reco
Investments (Credit Losses Recognized In Earnings on Fixed Maturity Securities Held by the Company) (Details) - Available-for-sale - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Securities, Available-for-sale [Line Items] | ||
Balance, beginning of period | $ 4 | $ 363 |
Reductions for securities sold during the period | 0 | (359) |
Addition (reductions) on securities with previous allowance | (4) | (1) |
Balance, end of period | 0 | 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 | 0 |
Reductions for securities sold during the period | 0 | 0 |
Addition (reductions) on securities with previous allowance | 0 | 0 |
Balance, end of period | 0 | 0 |
Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Balance, beginning of period | 0 | 0 |
Reductions for securities sold during the period | 0 | 0 |
Addition (reductions) on securities with previous allowance | 0 | 0 |
Balance, end of period | 0 | 0 |
U.S. and Foreign Corporate Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Balance, beginning of period | 0 | 358 |
Reductions for securities sold during the period | 0 | (358) |
Addition (reductions) on securities with previous allowance | 0 | 0 |
Balance, end of period | 0 | 0 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Balance, beginning of period | 0 | 0 |
Reductions for securities sold during the period | 0 | 0 |
Addition (reductions) on securities with previous allowance | 0 | 0 |
Balance, end of period | 0 | 0 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Balance, beginning of period | 0 | 0 |
Reductions for securities sold during the period | 0 | 0 |
Addition (reductions) on securities with previous allowance | 0 | 0 |
Balance, end of period | 0 | 0 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Balance, beginning of period | 4 | 5 |
Reductions for securities sold during the period | 0 | (1) |
Addition (reductions) on securities with previous allowance | (4) | (1) |
Balance, end of period | $ 0 | $ 3 |
Investments (Commercial Mortgag
Investments (Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 264,753 | $ 240,791 |
Commercial mortgage loans, Percentage | 100% | 100% |
Allowance for Credit Losses | $ (1,153) | $ (1,162) |
Total net commercial mortgage and agricultural property loans | 263,600 | 239,629 |
Apartments and multi-family | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 75,152 | $ 71,289 |
Commercial mortgage loans, Percentage | 28.40% | 29.60% |
Hospitality | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 13,955 | $ 14,070 |
Commercial mortgage loans, Percentage | 5.30% | 5.80% |
Industrial | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 78,849 | $ 70,633 |
Commercial mortgage loans, Percentage | 29.80% | 29.30% |
Office | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 8,058 | $ 8,122 |
Commercial mortgage loans, Percentage | 3% | 3.40% |
Other | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 33,903 | $ 24,587 |
Commercial mortgage loans, Percentage | 12.80% | 10.20% |
Retail | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 23,216 | $ 23,327 |
Commercial mortgage loans, Percentage | 8.80% | 9.70% |
Commercial mortgage loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 233,133 | $ 212,028 |
Commercial mortgage loans, Percentage | 88.10% | 88% |
Agricultural property loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 31,620 | $ 28,763 |
Commercial mortgage loans, Percentage | 11.90% | 12% |
Investments (Allowance for Cred
Investments (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of period | $ 1,162 | $ 408 |
Addition to (release of) allowance for expected losses | (9) | 91 |
Total ending balance | 1,153 | 499 |
Commercial mortgage loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of period | 1,107 | 405 |
Addition to (release of) allowance for expected losses | 0 | 38 |
Total ending balance | 1,107 | 443 |
Agricultural property loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of period | 55 | 3 |
Addition to (release of) allowance for expected losses | (9) | 53 |
Total ending balance | $ 46 | $ 56 |
Investments (Credit Quality Ind
Investments (Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 264,753 | $ 240,791 |
Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 21,973 | 79,358 |
One Year Prior | 79,045 | 34,879 |
Two Year Prior | 34,844 | 2,734 |
Three Year Prior | 2,729 | 2,198 |
Four Year Prior | 2,198 | 37,222 |
Prior | 92,344 | 55,637 |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 233,133 | 212,028 |
Commercial mortgage loans | ≥ 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 21,973 | 76,929 |
One Year Prior | 76,634 | 34,879 |
Two Year Prior | 34,844 | 2,734 |
Three Year Prior | 2,729 | 2,198 |
Four Year Prior | 2,198 | 36,293 |
Prior | 84,507 | 48,677 |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 222,885 | 201,710 |
Commercial mortgage loans | 1.0X to 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 2,429 |
One Year Prior | 2,411 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 6,008 | 6,047 |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 8,419 | 8,476 |
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 | 0 |
Four Year Prior | 0 | 929 |
Prior | 1,829 | 913 |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 1,829 | 1,842 |
Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 2,000 | 13,358 |
One Year Prior | 12,937 | 13,380 |
Two Year Prior | 13,370 | 1,047 |
Three Year Prior | 1,035 | 0 |
Four Year Prior | 0 | 0 |
Prior | 958 | 978 |
Revolving Loans | 1,320 | |
Recording investment gross of allowance for credit losses | 31,620 | 28,763 |
Agricultural property loans | ≥ 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 2,000 | 13,358 |
One Year Prior | 12,937 | 13,380 |
Two Year Prior | 13,370 | 1,047 |
Three Year Prior | 1,035 | 0 |
Four Year Prior | 0 | 0 |
Prior | 958 | 978 |
Revolving Loans | 1,320 | |
Recording investment gross of allowance for credit losses | 31,620 | 28,763 |
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 |
Revolving Loans | 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 |
Revolving Loans | 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 | 9,444 |
One Year Prior | 9,427 | 19,879 |
Two Year Prior | 19,844 | 772 |
Three Year Prior | 767 | 0 |
Four Year Prior | 0 | 17,239 |
Prior | 58,506 | 42,159 |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 88,544 | 89,493 |
0% to 59.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 2,000 | 11,358 |
One Year Prior | 10,937 | 1,035 |
Two Year Prior | 1,025 | 1,047 |
Three Year Prior | 1,035 | 0 |
Four Year Prior | 0 | 0 |
Prior | 958 | 978 |
Revolving Loans | 1,320 | |
Recording investment gross of allowance for credit losses | 17,275 | 14,418 |
60% to 69.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 18,973 | 37,809 |
One Year Prior | 37,766 | 15,000 |
Two Year Prior | 15,000 | 1,962 |
Three Year Prior | 1,962 | 2,198 |
Four Year Prior | 2,198 | 15,091 |
Prior | 20,868 | 5,836 |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 96,767 | 77,896 |
60% to 69.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 2,000 |
One Year Prior | 2,000 | 12,345 |
Two Year Prior | 12,345 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 14,345 | 14,345 |
70% to 79.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 3,000 | 32,105 |
One Year Prior | 31,852 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 3,885 |
Prior | 5,955 | 1,595 |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 40,807 | 37,585 |
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 |
Revolving Loans | 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 | 1,007 |
Prior | 7,015 | 6,047 |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 7,015 | 7,054 |
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 |
Revolving Loans | 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, 2024 | Dec. 31, 2023 |
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Status | $ 0 | $ 0 |
Recording investment gross of allowance for credit losses | 264,753 | 240,791 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 264,753 | 240,791 |
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 | 233,133 | 212,028 |
Commercial mortgage loans | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 233,133 | 212,028 |
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 | 31,620 | 28,763 |
Agricultural Loan | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 31,620 | 28,763 |
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, 2024 | Dec. 31, 2023 |
Other Invested Assets [Line Items] | ||
Other invested assets | $ 177,794 | $ 153,885 |
LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 157,518 | 149,947 |
Derivative instruments | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 20,238 | 0 |
Other Member | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 38 | 3,938 |
Equity method | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 153,424 | 145,560 |
Equity method | Private equity | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 97,048 | 90,107 |
Equity method | Hedge funds | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 49,444 | 48,488 |
Equity method | Real estate-related | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 6,932 | 6,965 |
Fair Value | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 4,094 | 4,387 |
Fair Value | Private equity | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 243 | 249 |
Fair Value | Hedge funds | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 11 | 19 |
Fair Value | Real estate-related | LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | $ 3,840 | $ 4,119 |
Investments (Accrued Investment
Investments (Accrued Investment Income) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Net Investment Income [Line Items] | ||
Accrued investment income | $ 64,442 | $ 53,906 |
Fixed maturities | ||
Net Investment Income [Line Items] | ||
Accrued investment income | 26,915 | 26,672 |
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 | 1,111 | 948 |
Policy loans | ||
Net Investment Income [Line Items] | ||
Accrued investment income | 35,286 | 25,675 |
Short-term investments and cash equivalents | ||
Net Investment Income [Line Items] | ||
Accrued investment income | $ 1,038 | $ 610 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | $ 51,335 | $ 29,688 |
Less: investment expenses | (1,308) | (1,028) |
Net investment income | 50,027 | 28,660 |
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 | 3,241 | 1,679 |
Policy loans | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | 12,804 | 2,525 |
Other invested assets | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | 4,119 | 1,478 |
Short-term investments and cash equivalents | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | 3,295 | 2,641 |
Available-for-sale | Fixed maturities | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | 27,636 | 21,117 |
Trading | Fixed maturities | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Gross investment income | $ 149 | $ 157 |
Investments (Realized Investmen
Investments (Realized Investment Gains Losses, Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Schedule Of Gain Loss On Investments [Line Items] | ||
Realized investment gains (losses), net | $ (4,591) | $ (8,298) |
Fixed maturities | ||
Schedule Of Gain Loss On Investments [Line Items] | ||
Realized investment gains (losses), net | (101) | (26) |
Commercial mortgage and other loans | ||
Schedule Of Gain Loss On Investments [Line Items] | ||
Realized investment gains (losses), net | 9 | (91) |
Derivatives | ||
Schedule Of Gain Loss On Investments [Line Items] | ||
Realized investment gains (losses), net | (4,489) | (8,241) |
Short-term investments and cash equivalents | ||
Schedule Of Gain Loss On Investments [Line Items] | ||
Realized investment gains (losses), net | $ (10) | $ 60 |
Investments (Net Unrealized Gai
Investments (Net Unrealized Gains Losses on Investments by Asset Class) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | $ (242,132) | $ (192,271) |
Fixed maturities | Available-for-sale | With an allowance | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | (3) | 0 |
Fixed maturities | Available-for-sale | Without an allowance | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | (250,411) | (197,874) |
Derivatives designated as cash flow hedges | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 7,899 | 5,246 |
Other investments | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | $ 383 | $ 357 |
Derivatives and Hedging (Gross
Derivatives and Hedging (Gross Notional Amount and Fair Value of Derivatives Contracts) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Derivative [Line Items] | ||
Gross Notional | $ 1,951,785 | $ 1,595,371 |
Assets | 89,334 | 40,150 |
Liabilities | (69,173) | (50,561) |
Policyholders' account balances | ||
Derivative [Line Items] | ||
Embedded derivatives | (200,000) | (168,000) |
Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Gross Notional | 188,066 | 169,101 |
Assets | 9,504 | 7,865 |
Liabilities | (2,881) | (4,257) |
Derivatives Designated as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Gross Notional | 188,066 | 169,101 |
Assets | 9,504 | 7,865 |
Liabilities | (2,881) | (4,257) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Gross Notional | 1,763,719 | 1,426,270 |
Assets | 79,830 | 32,285 |
Liabilities | (66,292) | (46,304) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Gross Notional | 47,592 | 39,965 |
Assets | 2,055 | 1,563 |
Liabilities | (588) | (597) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Gross Notional | 195,200 | 88,200 |
Assets | 348 | 36 |
Liabilities | (530) | (2,063) |
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 | 9,891 | 9,550 |
Assets | 95 | 7 |
Liabilities | 0 | (290) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Options | ||
Derivative [Line Items] | ||
Gross Notional | 1,511,036 | 1,288,555 |
Assets | 77,332 | 30,679 |
Liabilities | $ (65,174) | $ (43,354) |
Derivatives and Hedging (Offset
Derivatives and Hedging (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Derivatives | ||
Gross Amounts of Recognized Financial Instruments | $ 89,334 | $ 40,150 |
Gross Amounts Offset in the Statements of Financial Position | (69,096) | (40,150) |
Net Amounts Presented in the Statements of Financial Position | 20,238 | 0 |
Financial Instruments/Collateral | (19,054) | 0 |
Net Amount | 1,184 | 0 |
Total Assets | ||
Gross Amounts of Recognized Financial Instruments | 89,334 | 40,150 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (69,096) | (40,150) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 20,238 | 0 |
Financial Instruments/Collateral | (19,054) | 0 |
Net Amount | 1,184 | 0 |
Derivatives | ||
Gross Amounts of Recognized Financial Instruments | 69,173 | 50,561 |
Gross Amounts Offset in the Statements of Financial Position | (69,173) | (42,247) |
Net Amounts Presented in the Statements of Financial Position | 0 | 8,314 |
Financial Instruments/ Collateral | 0 | (8,314) |
Net Amount | 0 | 0 |
Total Liabilities | ||
Gross Amounts of Recognized Financial Instruments | 69,173 | 50,561 |
Gross Amounts Offset in the Statements of Financial Position | (69,173) | (42,247) |
Net Amounts Presented in the Statements of Financial Position | 0 | 8,314 |
Financial instruments/ collateral | 0 | (8,314) |
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, 2024 | Mar. 31, 2023 | |
Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | $ (4,489) | $ (8,241) |
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 | 465 | 481 |
Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 490 | (120) |
Change in AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 2,653 | (1,589) |
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 | (95) | 18 |
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 | 465 | 481 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Other Income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 482 | (112) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Change in AOCI | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | 2,653 | (1,589) |
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 | (95) | 18 |
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 | 465 | 481 |
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 | 482 | (112) |
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 | 2,653 | (1,589) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Realized Investment Gains (Losses) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, gain (loss) on derivatives, net | (4,394) | (8,259) |
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 | 1,554 | 167 |
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 | 197 | (82) |
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 | 618 | (228) |
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 | 31,818 | 1,759 |
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 | (38,581) | (9,875) |
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, 2024 USD ($) | |
Cash flow hedgers in AOCI | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |
Balance, beginning | $ 5,246 |
Amount recorded in AOCI | 3,505 |
Amount reclassified from AOCI to income | (852) |
Balance, ending | 7,899 |
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 | 3,505 |
Amount reclassified from AOCI to income | $ (852) |
Derivatives and Hedging (Narrat
Derivatives and Hedging (Narrative) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Cash flow hedge to be reclassified, short-term | $ 2 |
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, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | $ 2,324,427 | $ 2,362,095 | |
Market risk benefit assets | 492,992 | 537,659 | $ 563,000 |
Fixed maturities, trading | 22,604 | 23,440 | |
Equity securities | 4,548 | 4,615 | |
Other invested assets | 177,794 | 153,885 | |
Reinsurance recoverables | 4,008,437 | 3,603,225 | |
Receivables from parent and affiliates | 64,166 | 24,502 | |
Separate account assets | 14,520,998 | 14,077,103 | |
TOTAL ASSETS | 23,829,953 | 22,897,725 | |
Market risk benefit liabilities | 492,992 | 537,659 | $ 563,000 |
Payables to parent and affiliates | 1,185 | 9,380 | |
Total liabilities | 22,594,779 | 21,529,599 | |
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: | 49,804 | 51,042 | |
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: | 174,504 | 182,538 | |
Foreign government bonds | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 72,151 | 80,744 | |
U.S. corporate public securities | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 1,306,166 | 1,350,933 | |
U.S. corporate private securities | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 229,761 | 220,436 | |
Foreign corporate public securities | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 160,362 | 164,785 | |
Foreign corporate private securities | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 202,154 | 180,856 | |
Asset-backed securities | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 17,738 | 18,511 | |
Commercial mortgage-backed securities | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 96,627 | 96,699 | |
Residential mortgage-backed securities | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 15,160 | 15,551 | |
Fair Value, Measurements, Recurring | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 2,324,427 | 2,362,095 | |
Market risk benefit assets | 492,992 | 537,659 | |
Fixed maturities, trading | 22,604 | 23,440 | |
Equity securities | 4,548 | 4,615 | |
Short-term investments | 11,894 | 3,459 | |
Cash equivalents | 161,638 | 185,258 | |
Other invested assets | 20,238 | 0 | |
Reinsurance recoverables | 98,083 | 69,745 | |
Receivables from parent and affiliates | 11,117 | ||
Subtotal excluding separate account assets | 3,147,541 | 3,186,271 | |
Separate account assets | 13,337,472 | 12,914,412 | |
TOTAL ASSETS | 16,485,013 | 16,100,683 | |
Market risk benefit liabilities | 492,992 | 537,659 | |
Policyholders' account balances | 297,683 | 237,316 | |
Payables to parent and affiliates | 0 | 8,314 | |
Total liabilities | 790,675 | 783,289 | |
Assets netting | (69,096) | (40,150) | |
Liabilities netting | (69,173) | (42,247) | |
Netting | (100) | (2,000) | |
Fair Value, Measurements, Recurring | Other invested assets | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets netting | (69,096) | (40,150) | |
Fair Value, Measurements, Recurring | Payables to parent and affiliates | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liabilities netting | (69,173) | (42,247) | |
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: | 49,804 | 51,042 | |
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: | 174,504 | 182,538 | |
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: | 72,151 | 80,744 | |
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: | 1,306,166 | 1,350,933 | |
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: | 229,761 | 220,436 | |
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: | 160,362 | 164,785 | |
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: | 202,154 | 180,856 | |
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: | 17,738 | 18,511 | |
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: | 96,627 | 96,699 | |
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: | 15,160 | 15,551 | |
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 | 4,953 | 0 | |
Cash equivalents | 5,989 | 24,928 | |
Other invested assets | 0 | 0 | |
Reinsurance recoverables | 0 | 0 | |
Receivables from parent and affiliates | 0 | ||
Subtotal excluding separate account assets | 10,942 | 24,928 | |
Separate account assets | 0 | 0 | |
TOTAL ASSETS | 10,942 | 24,928 | |
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: | 2,285,213 | 2,323,262 | |
Market risk benefit assets | 0 | 0 | |
Fixed maturities, trading | 22,604 | 23,440 | |
Equity securities | 70 | 74 | |
Short-term investments | 6,941 | 3,459 | |
Cash equivalents | 155,649 | 160,330 | |
Other invested assets | 89,334 | 40,150 | |
Reinsurance recoverables | 0 | 0 | |
Receivables from parent and affiliates | 0 | ||
Subtotal excluding separate account assets | 2,559,811 | 2,550,715 | |
Separate account assets | 13,337,472 | 12,914,412 | |
TOTAL ASSETS | 15,897,283 | 15,465,127 | |
Market risk benefit liabilities | 0 | 0 | |
Policyholders' account balances | 0 | 0 | |
Payables to parent and affiliates | 69,173 | 50,561 | |
Total liabilities | 69,173 | 50,561 | |
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: | 49,804 | 51,042 | |
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: | 174,504 | 182,538 | |
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: | 72,151 | 80,744 | |
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: | 1,306,166 | 1,350,933 | |
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: | 214,635 | 205,814 | |
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: | 160,362 | 164,785 | |
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: | 197,224 | 175,849 | |
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: | 17,738 | 18,511 | |
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: | 77,469 | 77,495 | |
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: | 15,160 | 15,551 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 39,214 | 38,833 | |
Market risk benefit assets | 492,992 | 537,659 | |
Fixed maturities, trading | 0 | 0 | |
Equity securities | 4,478 | 4,541 | |
Short-term investments | 0 | 0 | |
Cash equivalents | 0 | 0 | |
Other invested assets | 0 | 0 | |
Reinsurance recoverables | 98,083 | 69,745 | |
Receivables from parent and affiliates | 11,117 | ||
Subtotal excluding separate account assets | 645,884 | 650,778 | |
Separate account assets | 0 | 0 | |
TOTAL ASSETS | 645,884 | 650,778 | |
Market risk benefit liabilities | 492,992 | 537,659 | |
Policyholders' account balances | 297,683 | 237,316 | |
Payables to parent and affiliates | 0 | 0 | |
Total liabilities | 790,675 | 774,975 | |
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: | 15,126 | 14,622 | |
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: | 4,930 | 5,007 | |
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: | 19,158 | 19,204 | |
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 | 4,100 | 4,400 | |
Separate account assets | |||
Fair Value Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value investment measured at NAV per share | $ 1,184,000 | $ 1,163,000 |
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, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | |
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Corporate securities | $ 4,920 | $ 4,653 | |
Market risk benefit assets | 492,992 | 537,659 | $ 563,000 |
Market risk benefit liabilities | 492,992 | 537,659 | $ 563,000 |
Fair Value, Measurements, Recurring | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Market risk benefit assets | 492,992 | 537,659 | |
Market risk benefit liabilities | 492,992 | 537,659 | |
Policyholders' account balances | $ 297,683 | 237,316 | |
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 | $ 492,992 | 537,659 | |
Market risk benefit liabilities | 492,992 | 537,659 | |
Policyholders' account balances | $ 297,683 | $ 237,316 | |
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 | 0.33% | 0.41% | |
Utilization rate | 38% | 38% | |
Withdrawal rate (greater than maximum) | 81% | 81% | |
Mortality rate | 0% | 0% | |
Equity volatility curve | 15% | 15% | |
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 | 0.33% | 0.41% | |
Mortality rate | 0% | 0% | |
Option budget | (1.00%) | (1.00%) | |
Level 3 | Internal | Minimum | Discounted cash flow | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Discount rate | 10.13% | ||
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% | 0.60% | |
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 | 0.33% | 0.41% | |
Utilization rate | 38% | 38% | |
Withdrawal rate (greater than maximum) | 81% | 81% | |
Mortality rate | 0% | 0% | |
Equity volatility curve | 15% | 15% | |
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 | 1.80% | 1.91% | |
Utilization rate | 95% | 95% | |
Withdrawal rate (greater than maximum) | 100% | 100% | |
Mortality rate | 15% | 15% | |
Equity volatility curve | 25% | 25% | |
Level 3 | Internal | Maximum | Discounted cash flow | Policyholders' account balances | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Lapse rate | 80% | 80% | |
Spread over SOFR | 1.80% | 1.85% | |
Mortality rate | 23% | 23% | |
Option budget | 7% | 7% | |
Level 3 | Internal | Maximum | Discounted cash flow | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Discount rate | 13.29% | ||
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% | 0.75% | |
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 | 1.80% | 1.91% | |
Utilization rate | 95% | 95% | |
Withdrawal rate (greater than maximum) | 100% | 100% | |
Mortality rate | 15% | 15% | |
Equity volatility curve | 25% | 25% | |
Level 3 | Internal | Weighted Average | Discounted cash flow | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Discount rate | 12.08% | ||
Level 3 | Internal | Weighted Average | Discounted cash flow | Commercial mortgage-backed securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Liquidity premium | 0.66% | 0.69% | |
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 | $ 492,992 | $ 537,659 | |
Level 3 | Internal | Fair Value, Measurements, Recurring | Policyholders' account balances | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Policyholders' account balances | 297,683 | 237,316 | |
Level 3 | Internal | Fair Value, Measurements, Recurring | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Corporate securities | 12,833 | ||
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 | 19,158 | 19,204 | |
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 | $ 492,992 | $ 537,659 |
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, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Market risk benefit assets | $ 492,992 | $ 563,000 | $ 537,659 |
Market risk benefit liabilities | 492,992 | 563,000 | $ 537,659 |
Equity securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 4,541 | 4,291 | |
Purchases | 272 | 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 | 4,478 | 4,294 | |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (335) | 3 | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (335) | 3 | |
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 | (335) | 3 | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (335) | 3 | |
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 | 69,745 | 0 | |
Purchases | 34,302 | 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 | 98,083 | 1,357 | |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (5,964) | 1,357 | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (35,533) | 1,357 | |
Reinsurance recoverables | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (5,964) | 1,357 | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (35,533) | 1,357 | |
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 | |
Receivables from parent and affiliates | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 0 | ||
Purchases | 11,117 | ||
Sales | 0 | ||
Issuances | 0 | ||
Settlements | 0 | ||
Other | 0 | ||
Transfers into Level 3 | 0 | ||
Transfers out of Level 3 | 0 | ||
Fair Value, end of period | 11,117 | ||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | ||
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | ||
Policyholders' account balances | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | (237,316) | (108,144) | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | (27,642) | (8,056) | |
Settlements | 0 | 0 | |
Other | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | (297,683) | (127,032) | |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (32,725) | (10,832) | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (1,472) | (13,914) | |
Policyholders' account balances | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (32,725) | (10,832) | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (1,472) | (13,914) | |
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 | 0 | (2) | |
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 | (13) | (756) | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (12) | (757) | |
Available-for-sale | Fixed maturities | Net investment income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (8) | (11) | |
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 | 19,629 | 3,803 | |
Purchases | 733 | 3,644 | |
Sales | (51) | 0 | |
Issuances | 0 | 0 | |
Settlements | (187) | (3,835) | |
Other | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | 20,056 | 3,576 | |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (68) | (36) | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (68) | (37) | |
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 | 19,204 | 20,701 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (93) | (87) | |
Other | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | 19,158 | 19,881 | |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 47 | (733) | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | $ 56 | $ (720) |
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, 2024 | Dec. 31, 2023 |
Assets: | ||
Policy loans | $ 1,116,711 | $ 1,115,096 |
Cash and cash equivalents | 176,240 | 186,383 |
Accrued investment income | 64,442 | 53,906 |
Reinsurance recoverables | 4,008,437 | 3,603,225 |
Receivables from parent and affiliates | 64,166 | 24,502 |
Fair Value | ||
Assets: | ||
Commercial mortgage and other loans | 260,082 | 237,993 |
Policy loans | 1,116,711 | 1,115,096 |
Short-term investments | 1,500 | 2,500 |
Cash and cash equivalents | 14,602 | 1,125 |
Accrued investment income | 64,442 | 53,906 |
Reinsurance recoverables | 21,774 | 22,155 |
Receivables from parent and affiliates | 53,049 | 24,502 |
Other assets | 3,468 | 4,363 |
Total assets | 1,535,628 | 1,461,640 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 172,036 | 179,487 |
Cash collateral for loaned securities | 0 | |
Payables to parent and affiliates | 1,185 | 1,066 |
Other liabilities | 49,276 | 52,027 |
Total liabilities | 222,497 | 232,580 |
Carrying Amount | ||
Assets: | ||
Commercial mortgage and other loans | 263,600 | 239,629 |
Policy loans | 1,116,711 | 1,115,096 |
Short-term investments | 1,500 | 2,500 |
Cash and cash equivalents | 14,602 | 1,125 |
Accrued investment income | 64,442 | 53,906 |
Reinsurance recoverables | 23,385 | 23,537 |
Receivables from parent and affiliates | 53,049 | 24,502 |
Other assets | 3,468 | 4,363 |
Total assets | 1,540,757 | 1,464,658 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 173,647 | 180,868 |
Cash collateral for loaned securities | 0 | |
Payables to parent and affiliates | 1,185 | 1,066 |
Other liabilities | 49,276 | 52,027 |
Total liabilities | 224,108 | 233,961 |
Level 1 | Fair Value | ||
Assets: | ||
Commercial mortgage and other loans | 0 | 0 |
Policy loans | 0 | 0 |
Short-term investments | 1,500 | 2,500 |
Cash and cash equivalents | 14,602 | 1,125 |
Accrued investment income | 0 | 0 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 16,102 | 3,625 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 0 | 0 |
Cash collateral for loaned securities | 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 | 64,442 | 53,906 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 53,049 | 24,502 |
Other assets | 3,468 | 4,363 |
Total assets | 120,959 | 82,771 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 141,634 | 148,542 |
Cash collateral for loaned securities | 0 | |
Payables to parent and affiliates | 1,185 | 1,066 |
Other liabilities | 49,276 | 52,027 |
Total liabilities | 192,095 | 201,635 |
Level 3 | Fair Value | ||
Assets: | ||
Commercial mortgage and other loans | 260,082 | 237,993 |
Policy loans | 1,116,711 | 1,115,096 |
Short-term investments | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Accrued investment income | 0 | 0 |
Reinsurance recoverables | 21,774 | 22,155 |
Receivables from parent and affiliates | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 1,398,567 | 1,375,244 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 30,402 | 30,945 |
Cash collateral for loaned securities | 0 | |
Payables to parent and affiliates | 0 | 0 |
Other liabilities | 0 | 0 |
Total liabilities | $ 30,402 | $ 30,945 |
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, 2024 | Mar. 31, 2023 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | $ 393,139 | |
Amortization expense | 25,585 | $ (5,017) |
Balance, end of period | 398,083 | |
Term Life | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 82,007 | 70,213 |
Capitalization | 4,894 | 4,007 |
Amortization expense | (2,028) | (1,748) |
Other | 0 | 0 |
Balance, end of period | 84,873 | 72,472 |
Variable and Universal Life | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 311,131 | 281,661 |
Capitalization | 11,191 | 10,791 |
Amortization expense | (3,692) | (3,272) |
Other | (5,420) | 3 |
Balance, end of period | 313,210 | 289,183 |
Total | ||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | 393,138 | 351,874 |
Capitalization | 16,085 | 14,798 |
Amortization expense | (5,720) | (5,020) |
Other | (5,420) | 3 |
Balance, end of period | $ 398,083 | $ 361,655 |
Deferred Policy Acquisition C_4
Deferred Policy Acquisition Costs and Deferred Reinsurance (Balance of and Changes in Deferred Reinsurance Losses) (Details) - Variable Annuity [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ 15,968 | $ 17,425 |
Amortization Expense | (358) | (378) |
Other | 1 | 0 |
Balance, end of period | $ 15,611 | $ 17,047 |
Deferred Policy Acquisition C_5
Deferred Policy Acquisition Costs and Deferred Reinsurance (Balance of and Changes in Deferred Reinsurance Gains) (Details) - Variable and Universal Life - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reinsurance Recoverable, Allowance for Credit Gain [Roll Forward] | ||
Balance, beginning of period | $ 0 | $ 0 |
Amortization expense | (2,246) | 0 |
Other | 198,641 | 0 |
Balance, end of period | $ 196,395 | $ 0 |
Separate Accounts (Separate Acc
Separate Accounts (Separate Account Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | $ 14,520,998 | $ 14,077,103 |
Equity | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 8,840,722 | 8,299,099 |
Fixed Income | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 3,751,231 | 3,901,137 |
Other | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | 745,519 | 714,176 |
Other invested assets | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate account assets | $ 1,183,526 | $ 1,162,691 |
Separate Accounts (Separate A_2
Separate Accounts (Separate Account Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of period | $ 14,077,103 | $ 13,926,958 |
Deposits | 66,311 | 52,309 |
Investment performance | 758,666 | 702,620 |
Policy charges | (80,322) | (81,363) |
Surrenders and withdrawals | (283,618) | (206,691) |
Benefit payments | (11,921) | (11,302) |
Net transfers (to) from general account | (14,990) | 29,102 |
Other | 9,769 | 2,048 |
Balance, end of period | 14,520,998 | 14,413,681 |
Cash surrender value | 14,273,647 | 14,142,362 |
Variable Annuity [Member] | ||
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of period | 9,064,177 | 8,928,568 |
Deposits | 14,902 | 8,431 |
Investment performance | 387,889 | 439,099 |
Policy charges | (53,559) | (55,991) |
Surrenders and withdrawals | (266,474) | (194,702) |
Benefit payments | (1,506) | (1,378) |
Net transfers (to) from general account | (3,588) | 913 |
Other | 178 | 397 |
Balance, end of period | 9,142,019 | 9,125,337 |
Cash surrender value | 9,014,812 | 8,933,846 |
Variable Life | ||
Separate Account, Liability [Roll Forward] | ||
Balance, beginning of period | 5,012,926 | 4,998,390 |
Deposits | 51,409 | 43,878 |
Investment performance | 370,777 | 263,521 |
Policy charges | (26,763) | (25,372) |
Surrenders and withdrawals | (17,144) | (11,989) |
Benefit payments | (10,415) | (9,924) |
Net transfers (to) from general account | (11,402) | 28,189 |
Other | 9,591 | 1,651 |
Balance, end of period | 5,378,979 | 5,288,344 |
Cash surrender value | $ 5,258,835 | $ 5,208,516 |
Liability For Future Policy B_3
Liability For Future Policy Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Other adjustments | $ 3,828 | $ 1,442 | ||
Nonparticipating Traditional And Limited-Pay Business | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Gain in net income | (3,000) | |||
Loss in net income | 3,000 | |||
Term Life | ||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||
Balance, beginning of period | 1,389,421 | 1,416,807 | ||
Effect of cumulative changes in discount rate assumptions, beginning of period | 29,313 | 73,563 | ||
Balance at original discount rate, beginning of period | 1,418,734 | 1,490,370 | ||
Effect of actual variances from expected experience and other activity | $ (21,792) | $ (10,232) | ||
Adjusted balance, beginning of period | 1,396,942 | 1,480,138 | ||
Issuances | 24,393 | 16,867 | ||
Net premiums / considerations collected | (40,799) | (43,352) | ||
Interest accrual | 16,394 | 17,156 | ||
Balance at original discount rate, end of period | 1,396,930 | 1,470,809 | ||
Effect of cumulative changes in discount rate assumptions, end of period | (56,897) | (40,753) | ||
Balance, end of period | 1,340,033 | 1,430,056 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance, beginning of period | 2,619,569 | 2,551,191 | ||
Effect of cumulative changes in discount rate assumptions, beginning of period | 44,322 | 137,962 | ||
Balance at original discount rate, beginning of period | 2,663,891 | 2,689,153 | ||
Effect of actual variances from expected experience and other activity | (29,994) | (14,462) | ||
Adjusted balance, beginning of period | 2,633,897 | 2,674,691 | ||
Issuances | 24,393 | 16,867 | ||
Interest accrual | 32,144 | 32,494 | ||
Benefit payments | (32,730) | (40,914) | ||
Other adjustments | (899) | (372) | ||
Balance at original discount rate, end of period | 2,656,805 | 2,682,766 | ||
Effect of cumulative changes in discount rate assumptions, end of period | (105,493) | (64,374) | ||
Balance, end of period | 2,551,312 | 2,618,392 | ||
Balance, end of period, pre-flooring | 1,211,279 | 1,188,336 | ||
Flooring impact, end of period | 14 | 0 | ||
Balance, end of period, post-flooring | 1,211,293 | 1,188,336 | ||
Less: Reinsurance recoverables | 1,036,843 | 1,036,995 | ||
Balance after reinsurance recoverables, end of period, post-flooring | 174,450 | 151,341 | ||
Interest accrual | 32,144 | 32,494 | ||
Term Life | Gross Basis | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Interest accrual | 15,749 | 15,338 | ||
Undiscounted expected future gross premiums | 3,007,181 | 3,056,399 | ||
Discounted expected future gross premiums (at original discount rate) | 2,011,489 | 2,057,345 | ||
Discounted expected future gross premiums (at current discount rate) | 1,938,769 | 2,006,982 | ||
Undiscounted expected future benefits and expenses | 4,286,686 | 4,332,537 | ||
Interest accrual | 15,749 | 15,338 | ||
Gross premiums | $ 59,673 | $ 61,365 | ||
Weighted-average duration of the liability in years (at original discount rate) | 10 years | 11 years | ||
Weighted-average duration of the liability in years (at current discount rate) | 10 years | 10 years | ||
Weighted-average interest rate (at original discount rate) | 5.26% | 5.31% | ||
Weighted-average interest rate (at current discount rate) | 5.31% | 5.07% | ||
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 and other activity | 90 | (599) | ||
Adjusted balance, beginning of period | 90 | |||
Issuances | 639 | 710 | ||
Net premiums / considerations collected | (729) | (111) | ||
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 | 18,489 | 16,460 | ||
Effect of cumulative changes in discount rate assumptions, beginning of period | 1,510 | 1,899 | ||
Balance at original discount rate, beginning of period | 19,999 | 18,359 | ||
Effect of actual variances from expected experience and other activity | 62 | 183 | ||
Adjusted balance, beginning of period | 20,061 | 18,542 | ||
Issuances | 639 | 710 | ||
Interest accrual | 177 | 171 | ||
Benefit payments | (654) | (551) | ||
Other adjustments | 1 | 0 | ||
Balance at original discount rate, end of period | 20,224 | 18,872 | ||
Effect of cumulative changes in discount rate assumptions, end of period | (1,796) | (1,536) | ||
Balance, end of period | 18,428 | 17,336 | ||
Balance, end of period, pre-flooring | 18,428 | 17,336 | ||
Flooring impact, end of period | 0 | 0 | ||
Balance, end of period, post-flooring | 18,428 | 17,336 | ||
Less: Reinsurance recoverables | 18,428 | 17,336 | ||
Balance after reinsurance recoverables, end of period, post-flooring | 0 | 0 | ||
Interest accrual | 177 | 171 | ||
Fixed Annuities | Gross Basis | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Interest accrual | 177 | 171 | ||
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 | 26,109 | 24,654 | ||
Interest accrual | 177 | 171 | ||
Gross premiums | $ 950 | $ 112 | ||
Weighted-average duration of the liability in years (at original discount rate) | 6 years | 7 years | ||
Weighted-average duration of the liability in years (at current discount rate) | 5 years | 6 years | ||
Weighted-average interest rate (at original discount rate) | 3.71% | 3.61% | ||
Weighted-average interest rate (at current discount rate) | 5.21% | 4.98% | ||
Fixed Annuity Netting | ||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||
Adjusted balance, beginning of period | $ (599) | |||
Term Life And Fixed Annuities | ||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||
Balance, beginning of period | $ 1,389,421 | 1,416,807 | ||
Effect of cumulative changes in discount rate assumptions, beginning of period | 29,313 | 73,563 | ||
Balance at original discount rate, beginning of period | 1,418,734 | 1,490,370 | ||
Effect of actual variances from expected experience and other activity | (21,702) | (10,831) | ||
Adjusted balance, beginning of period | 1,397,032 | 1,479,539 | ||
Issuances | 25,032 | 17,577 | ||
Net premiums / considerations collected | (41,528) | (43,463) | ||
Interest accrual | 16,394 | 17,156 | ||
Balance at original discount rate, end of period | 1,396,930 | 1,470,809 | ||
Effect of cumulative changes in discount rate assumptions, end of period | (56,897) | (40,753) | ||
Balance, end of period | 1,340,033 | 1,430,056 | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance, beginning of period | 2,638,058 | 2,567,651 | ||
Effect of cumulative changes in discount rate assumptions, beginning of period | 45,832 | 139,861 | ||
Balance at original discount rate, beginning of period | 2,683,890 | 2,707,512 | ||
Effect of actual variances from expected experience and other activity | $ (29,932) | $ (14,279) | ||
Adjusted balance, beginning of period | 2,653,958 | 2,693,233 | ||
Issuances | 25,032 | 17,577 | ||
Interest accrual | 32,321 | 32,665 | ||
Benefit payments | (33,384) | (41,465) | ||
Other adjustments | (898) | (372) | ||
Balance at original discount rate, end of period | 2,677,029 | 2,701,638 | ||
Effect of cumulative changes in discount rate assumptions, end of period | (107,289) | (65,910) | ||
Balance, end of period | 2,569,740 | 2,635,728 | ||
Balance, end of period, pre-flooring | 1,229,707 | 1,205,672 | ||
Flooring impact, end of period | 14 | 0 | ||
Balance, end of period, post-flooring | 1,229,721 | 1,205,672 | ||
Less: Reinsurance recoverables | 1,055,271 | 1,054,331 | ||
Balance after reinsurance recoverables, end of period, post-flooring | 174,450 | 151,341 | ||
Interest accrual | $ 32,321 | $ 32,665 |
Liability For Future Policy B_4
Liability For Future Policy Benefits (Deferred Profit Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Other adjustments | $ 3,828 | $ 1,442 | ||
Deferred profit liability | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Revenue | 139 | |||
Deferred Profit Liability Netting | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Revenue | (211) | |||
Fixed Annuities | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Effect of actual variances from expected experience and other activity | $ 62 | $ 183 | ||
Adjusted balance, beginning of period | 20,061 | 18,542 | ||
Interest accrual | 177 | 171 | ||
Other adjustments | 1 | 0 | ||
Balance, end of period | 18,428 | 17,336 | ||
Less: Reinsurance recoverables | 18,428 | 17,336 | ||
Balance after reinsurance recoverables, end of period, post-flooring | 0 | 0 | ||
Fixed Annuities | Gross Basis | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Interest accrual | 177 | 171 | ||
Revenue | 950 | 112 | ||
Fixed Annuities | Deferred profit liability | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Balance, beginning of period | 1,365 | 1,684 | ||
Effect of actual variances from expected experience and other activity | 34 | (107) | ||
Adjusted balance, beginning of period | $ 1,399 | $ 1,577 | ||
Profits deferred | 216 | 0 | ||
Interest accrual | 14 | 13 | ||
Amortization | (53) | (45) | ||
Balance, end of period | 1,576 | 1,545 | ||
Less: Reinsurance recoverables | 1,576 | 1,545 | ||
Balance after reinsurance recoverables, end of period, post-flooring | 0 | 0 | ||
Revenue | 139 | |||
Fixed Annuities | Deferred profit liability | Gross Basis | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Interest accrual | 14 | 13 | ||
Revenue | $ 139 | |||
Fixed Annuities | Deferred Profit Liability Netting | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Revenue | (211) | |||
Fixed Annuities | Deferred Profit Liability Netting | Gross Basis | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Revenue | $ (211) |
Liability For Future Policy B_5
Liability For Future Policy Benefits (Additional Insurance Reserves) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Insurance [Abstract] | ||||
Balance, beginning of period | $ 986,166 | $ 827,478 | ||
Flooring impact and amounts in AOCI | 56,487 | 91,115 | ||
Balance, excluding amounts in AOCI, beginning of period, pre-flooring | 1,042,653 | 918,593 | ||
Effect of actual variances from expected experience and other activity | $ 17,115 | $ (342) | ||
Adjusted balance, beginning of period | $ 1,059,768 | $ 918,251 | ||
Assessments collected | 23,439 | 14,827 | ||
Interest accrual | 8,986 | 7,840 | ||
Benefits paid | (5,955) | (3,995) | ||
Balance, excluding amounts in AOCI, end of period, pre-flooring | 1,086,238 | 936,923 | ||
Flooring impact and amounts in AOCI | (103,881) | (65,818) | ||
Balance, including amounts in AOCI, end of period, post-flooring | 982,357 | 871,105 | ||
Less: Reinsurance recoverables | 956,650 | 834,640 | ||
Balance after reinsurance recoverables, including amounts in AOCI, end of period | 25,707 | 36,465 | ||
Gross assessments | $ 56,772 | $ 46,941 | ||
Weighted-average duration of the liability in years (at original discount rate) | 27 years | 28 years | ||
Weighted-average interest rate (at original discount rate) | 3.43% | 3.42% |
Liability For Future Policy B_6
Liability For Future Policy Benefits (Future Policy Benefits) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Insurance [Abstract] | |||
Benefit reserves, end of period, post-flooring | $ 1,229,721 | $ 1,205,672 | |
Deferred profit liability, end of period, post-flooring | 1,576 | 1,545 | |
Additional insurance reserves, including amounts in AOCI, EOP, post-flooring | 982,357 | 871,105 | |
Subtotal of amounts disclosed above | 2,213,654 | 2,078,322 | |
Other Future Policy Benefits reserves | 176,241 | 149,309 | |
Total Future policy benefits | $ 2,389,895 | $ 2,398,443 | $ 2,227,631 |
Liability For Future Policy B_7
Liability For Future Policy Benefits (Revenue and Interest Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Benefit Reserves | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | $ 60,623 | $ 61,477 |
Interest Expense | 15,926 | 15,509 |
Benefit Reserves | Fixed Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 950 | 112 |
Interest Expense | 177 | 171 |
Benefit Reserves | Term Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 59,673 | 61,365 |
Interest Expense | 15,749 | 15,338 |
Benefit Reserves | Variable and Universal Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 0 | 0 |
Interest Expense | 0 | 0 |
Deferred profit liability | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 139 | |
Interest Expense | 14 | 13 |
Deferred profit liability | Fixed Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 139 | |
Interest Expense | 14 | 13 |
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 |
Additional insurance reserves | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 56,772 | 46,941 |
Interest Expense | 8,986 | 7,840 |
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 | 56,772 | 46,941 |
Interest Expense | 8,986 | 7,840 |
Revenues | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 117,184 | 108,557 |
Revenues | Fixed Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 739 | 251 |
Revenues | Term Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 59,673 | 61,365 |
Revenues | Variable and Universal Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | 56,772 | 46,941 |
Interest Expense | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest Expense | 24,926 | 23,362 |
Interest Expense | Fixed Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest Expense | 191 | 184 |
Interest Expense | Term Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest Expense | 15,749 | 15,338 |
Interest Expense | Variable and Universal Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Interest Expense | 8,986 | $ 7,840 |
Deferred Profit Liability Netting | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | (211) | |
Deferred Profit Liability Netting | Fixed Annuities | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Revenue | $ (211) |
Policyholders' Liabilities (Det
Policyholders' Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Additional Liability, Long-Duration Insurance [Roll Forward] | ||
Balance, beginning of period | $ 4,036,184 | |
Net transfers (to) from general account | 14,990 | $ (29,102) |
Unearned revenue reserves | 383,842 | 328,956 |
Other adjustments | 9,568 | 9,386 |
Total Policyholders' account balance | $ 4,186,756 | $ 2,792,291 |
Weighted-average crediting rate | 2.08% | 2.65% |
Net amount at risk | $ 34,482,721 | $ 33,887,277 |
Cash surrender value | 3,407,262 | 2,066,310 |
Total | ||
Additional Liability, Long-Duration Insurance [Roll Forward] | ||
Balance, beginning of period | 3,656,352 | 2,451,210 |
Deposits | 156,170 | 83,485 |
Interest credited | 19,396 | 16,239 |
Policy charges | (36,720) | (36,414) |
Surrenders and withdrawals | (46,018) | (39,551) |
Benefit payments | (3,549) | (2,223) |
Net transfers (to) from general account | 14,990 | (29,102) |
Change in market value and other adjustments | 32,725 | 10,305 |
Balance, end of period | 3,793,346 | 2,453,949 |
Fixed Annuities | ||
Additional Liability, Long-Duration Insurance [Roll Forward] | ||
Balance, beginning of period | 35,025 | 39,406 |
Deposits | 1,104 | 707 |
Interest credited | 212 | 252 |
Policy charges | (14) | (14) |
Surrenders and withdrawals | (1,473) | (2,027) |
Benefit payments | (155) | (154) |
Net transfers (to) from general account | 0 | 0 |
Change in market value and other adjustments | 0 | 0 |
Balance, end of period | 34,699 | 38,170 |
Total Policyholders' account balance | $ 27,049 | $ 30,626 |
Weighted-average crediting rate | 2.43% | 2.59% |
Net amount at risk | $ 0 | $ 0 |
Cash surrender value | 8,414 | 10,074 |
Variable Annuity [Member] | ||
Additional Liability, Long-Duration Insurance [Roll Forward] | ||
Balance, beginning of period | 592,581 | 327,124 |
Deposits | 100,818 | 25,558 |
Interest credited | 3,909 | 2,015 |
Policy charges | (49) | (40) |
Surrenders and withdrawals | (11,039) | (8,163) |
Benefit payments | (713) | (1,647) |
Net transfers (to) from general account | 3,588 | (913) |
Change in market value and other adjustments | 29,526 | (131) |
Balance, end of period | 718,621 | 343,803 |
Total Policyholders' account balance | $ 286,554 | $ 323,156 |
Weighted-average crediting rate | 2.38% | 2.40% |
Net amount at risk | $ 0 | $ 0 |
Cash surrender value | 690,349 | 322,593 |
Variable and Universal Life | ||
Additional Liability, Long-Duration Insurance [Roll Forward] | ||
Balance, beginning of period | 3,028,746 | 2,084,680 |
Deposits | 54,248 | 57,220 |
Interest credited | 15,275 | 13,972 |
Policy charges | (36,657) | (36,360) |
Surrenders and withdrawals | (33,506) | (29,361) |
Benefit payments | (2,681) | |
Net transfers (to) from general account | 11,402 | (28,189) |
Change in market value and other adjustments | 3,199 | 10,436 |
Balance, end of period | 3,040,026 | 2,071,976 |
Total Policyholders' account balance | $ 2,679,796 | $ 1,752,083 |
Weighted-average crediting rate | 2.01% | 2.69% |
Net amount at risk | $ 34,482,721 | $ 33,887,277 |
Cash surrender value | $ 2,708,499 | 1,733,643 |
Variable Universal Life Netting | ||
Additional Liability, Long-Duration Insurance [Roll Forward] | ||
Benefit payments | $ (422) |
Policyholders' Liabilities (Gua
Policyholders' Liabilities (Guaranteed Minimum Crediting Rate) (Details) $ in Thousands | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | $ 4,186,756 | $ 4,036,184 | $ 2,792,291 | |
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 | ||
Fixed Annuities | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | $ 27,049 | 35,025 | $ 30,626 | $ 39,406 |
Fixed Annuities | At guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 27,049 | 30,626 | ||
Fixed Annuities | 1 -50 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 0 | 0 | ||
Fixed Annuities | 51 - 150 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 0 | 0 | ||
Fixed Annuities | Greater than 150 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 0 | 0 | ||
Variable Annuity [Member] | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 286,554 | 592,581 | 323,156 | 327,124 |
Variable Annuity [Member] | At guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 278,965 | 321,448 | ||
Variable Annuity [Member] | 1 -50 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 7,589 | 1,708 | ||
Variable Annuity [Member] | 51 - 150 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 0 | 0 | ||
Variable Annuity [Member] | 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 | 2,679,796 | $ 3,028,746 | 1,752,083 | $ 2,084,680 |
Variable and Universal Life | At guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 646,041 | 548,749 | ||
Variable and Universal Life | 1 -50 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 418,477 | 359,398 | ||
Variable and Universal Life | 51 - 150 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 1,376,051 | 526,535 | ||
Variable and Universal Life | Greater than 150 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | $ 239,227 | $ 317,401 | ||
Less than 1.00% | Fixed Annuities | ||||
Policyholder Account Balance [Line Items] | ||||
Range of Guaranteed Minimum Crediting Rates | 1% | 1% | ||
Account Values with Crediting Rates | $ 0 | $ 0 | ||
Less than 1.00% | Fixed Annuities | At guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 0 | 0 | ||
Less than 1.00% | Fixed Annuities | 1 -50 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 0 | 0 | ||
Less than 1.00% | Fixed Annuities | 51 - 150 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 0 | 0 | ||
Less than 1.00% | Fixed 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 Annuity [Member] | ||||
Policyholder Account Balance [Line Items] | ||||
Range of Guaranteed Minimum Crediting Rates | 1% | 1% | ||
Account Values with Crediting Rates | $ 1,720 | $ 1,651 | ||
Less than 1.00% | Variable Annuity [Member] | At guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 1,720 | 1,651 | ||
Less than 1.00% | Variable Annuity [Member] | 1 -50 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 0 | 0 | ||
Less than 1.00% | Variable Annuity [Member] | 51 - 150 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 0 | 0 | ||
Less than 1.00% | Variable Annuity [Member] | 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 | $ 29,485 | $ 640 | ||
Less than 1.00% | Variable and Universal Life | At guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 0 | 0 | ||
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 | 29,485 | 640 | ||
1.00% - 1.99% | Fixed Annuities | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | $ 1,042 | $ 1,284 | ||
1.00% - 1.99% | Fixed Annuities | Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Range of Guaranteed Minimum Crediting Rates | 1% | 1% | ||
1.00% - 1.99% | Fixed Annuities | Maximum | ||||
Policyholder Account Balance [Line Items] | ||||
Range of Guaranteed Minimum Crediting Rates | 1.99% | 1.99% | ||
1.00% - 1.99% | Fixed Annuities | At guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | $ 1,042 | $ 1,284 | ||
1.00% - 1.99% | Fixed Annuities | 1 -50 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 0 | 0 | ||
1.00% - 1.99% | Fixed Annuities | 51 - 150 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 0 | 0 | ||
1.00% - 1.99% | Fixed 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 Annuity [Member] | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | $ 175,305 | $ 191,108 | ||
1.00% - 1.99% | Variable Annuity [Member] | Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Range of Guaranteed Minimum Crediting Rates | 1% | 1% | ||
1.00% - 1.99% | Variable Annuity [Member] | Maximum | ||||
Policyholder Account Balance [Line Items] | ||||
Range of Guaranteed Minimum Crediting Rates | 1.99% | 1.99% | ||
1.00% - 1.99% | Variable Annuity [Member] | At guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | $ 168,733 | $ 189,516 | ||
1.00% - 1.99% | Variable Annuity [Member] | 1 -50 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 6,572 | 1,592 | ||
1.00% - 1.99% | Variable Annuity [Member] | 51 - 150 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 0 | 0 | ||
1.00% - 1.99% | Variable Annuity [Member] | 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 | $ 495,917 | $ 456,701 | ||
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 | $ 23,881 | $ 17,633 | ||
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 | 279,047 | 148,939 | ||
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 | 192,989 | 290,129 | ||
2.00% - 2.99% | Fixed Annuities | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | $ 18,421 | $ 20,243 | ||
2.00% - 2.99% | Fixed Annuities | Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Range of Guaranteed Minimum Crediting Rates | 2% | 2% | ||
2.00% - 2.99% | Fixed Annuities | Maximum | ||||
Policyholder Account Balance [Line Items] | ||||
Range of Guaranteed Minimum Crediting Rates | 2.99% | 2.99% | ||
2.00% - 2.99% | Fixed Annuities | At guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | $ 18,421 | $ 20,243 | ||
2.00% - 2.99% | Fixed Annuities | 1 -50 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 0 | 0 | ||
2.00% - 2.99% | Fixed Annuities | 51 - 150 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 0 | 0 | ||
2.00% - 2.99% | Fixed 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 Annuity [Member] | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | $ 1,329 | $ 1,784 | ||
2.00% - 2.99% | Variable Annuity [Member] | Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Range of Guaranteed Minimum Crediting Rates | 2% | 2% | ||
2.00% - 2.99% | Variable Annuity [Member] | Maximum | ||||
Policyholder Account Balance [Line Items] | ||||
Range of Guaranteed Minimum Crediting Rates | 2.99% | 2.99% | ||
2.00% - 2.99% | Variable Annuity [Member] | At guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | $ 1,329 | $ 1,784 | ||
2.00% - 2.99% | Variable Annuity [Member] | 1 -50 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 0 | 0 | ||
2.00% - 2.99% | Variable Annuity [Member] | 51 - 150 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 0 | 0 | ||
2.00% - 2.99% | Variable Annuity [Member] | 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 | $ 377,743 | $ 363,561 | ||
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 | $ 4,372 | $ 4,463 | ||
2.00% - 2.99% | Variable and Universal Life | 1 -50 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 159,463 | 15,422 | ||
2.00% - 2.99% | Variable and Universal Life | 51 - 150 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 197,155 | 317,044 | ||
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 | 16,753 | 26,632 | ||
3.00% - 4.00% | Fixed Annuities | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | $ 7,586 | $ 9,099 | ||
3.00% - 4.00% | Fixed Annuities | Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Range of Guaranteed Minimum Crediting Rates | 3% | 3% | ||
3.00% - 4.00% | Fixed Annuities | Maximum | ||||
Policyholder Account Balance [Line Items] | ||||
Range of Guaranteed Minimum Crediting Rates | 4% | 4% | ||
3.00% - 4.00% | Fixed Annuities | At guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | $ 7,586 | $ 9,099 | ||
3.00% - 4.00% | Fixed Annuities | 1 -50 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 0 | 0 | ||
3.00% - 4.00% | Fixed Annuities | 51 - 150 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 0 | 0 | ||
3.00% - 4.00% | Fixed 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 Annuity [Member] | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | $ 108,068 | $ 128,487 | ||
3.00% - 4.00% | Variable Annuity [Member] | Minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Range of Guaranteed Minimum Crediting Rates | 3% | 3% | ||
3.00% - 4.00% | Variable Annuity [Member] | Maximum | ||||
Policyholder Account Balance [Line Items] | ||||
Range of Guaranteed Minimum Crediting Rates | 4% | 4% | ||
3.00% - 4.00% | Variable Annuity [Member] | At guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | $ 107,051 | $ 128,371 | ||
3.00% - 4.00% | Variable Annuity [Member] | 1 -50 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 1,017 | 116 | ||
3.00% - 4.00% | Variable Annuity [Member] | 51 - 150 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 0 | 0 | ||
3.00% - 4.00% | Variable Annuity [Member] | 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 | $ 1,406,465 | $ 554,620 | ||
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 | $ 247,602 | $ 150,092 | ||
3.00% - 4.00% | Variable and Universal Life | 1 -50 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 259,014 | 343,976 | ||
3.00% - 4.00% | Variable and Universal Life | 51 - 150 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 899,849 | 60,552 | ||
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% | Fixed Annuities | ||||
Policyholder Account Balance [Line Items] | ||||
Range of Guaranteed Minimum Crediting Rates | 4% | 4% | ||
Account Values with Crediting Rates | $ 0 | $ 0 | ||
Greater than 4.00% | Fixed Annuities | At guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 0 | 0 | ||
Greater than 4.00% | Fixed Annuities | 1 -50 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 0 | 0 | ||
Greater than 4.00% | Fixed Annuities | 51 - 150 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 0 | 0 | ||
Greater than 4.00% | Fixed 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 Annuity [Member] | ||||
Policyholder Account Balance [Line Items] | ||||
Range of Guaranteed Minimum Crediting Rates | 4% | 4% | ||
Account Values with Crediting Rates | $ 132 | $ 126 | ||
Greater than 4.00% | Variable Annuity [Member] | At guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 132 | 126 | ||
Greater than 4.00% | Variable Annuity [Member] | 1 -50 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 0 | 0 | ||
Greater than 4.00% | Variable Annuity [Member] | 51 - 150 bps above guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 0 | 0 | ||
Greater than 4.00% | Variable Annuity [Member] | 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 | $ 370,186 | $ 376,561 | ||
Greater than 4.00% | Variable and Universal Life | At guaranteed minimum | ||||
Policyholder Account Balance [Line Items] | ||||
Account Values with Crediting Rates | 370,186 | 376,561 | ||
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 |
Policyholders' Liabilities (Add
Policyholders' Liabilities (Additional Insurance Reserves) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||
Less: Reinsurance recoverables | $ 956,650 | $ 834,640 |
Balance after reinsurance recoverables, end of period | 25,707 | 36,465 |
Variable / Universal Life | Policyholder Contract Deposit | ||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||
Balance, beginning of period | 370,258 | 313,711 |
Unearned revenue | 17,995 | 19,030 |
Amortization expense | (4,411) | (3,785) |
Balance, end of period | 383,842 | 328,956 |
Less: Reinsurance recoverables | 103,852 | 85,048 |
Balance after reinsurance recoverables, end of period | $ 279,990 | $ 243,908 |
Market Risk Benefits - Rollforw
Market Risk Benefits - Rollforward of Balances for Variable Annuity Products (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Variable Annuity [Member] | ||
Market Risk Benefit [Roll Forward] | ||
Balance, beginning of period | $ 301,771 | $ 398,254 |
Effect of cumulative changes in non-performance risk | 100,377 | 163,169 |
Balance, beginning of period, before effect of changes in non-performance risk | 402,148 | 561,423 |
Attributed fees collected | 26,214 | 27,304 |
Claims paid | (761) | (1,653) |
Interest accrual | 5,813 | 7,035 |
Actual in force different from expected | 518 | 2,229 |
Effect of changes in interest rates | (78,746) | 33,851 |
Effect of changes in equity markets | (73,358) | (54,966) |
Issuances | 650 | |
Effect of changes in current period counterparty non-performance risk | 0 | 0 |
Other adjustments | 585 | |
Balance, end of period, before effect of changes in non-performance risk | 283,063 | 575,223 |
Effect of cumulative changes in non-performance risk | (79,036) | (178,897) |
Balance, end of period | 204,027 | 396,326 |
Less: Reinsured Market Risk Benefits | ||
Market Risk Benefit [Roll Forward] | ||
Balance, beginning of period | (301,771) | (398,254) |
Effect of cumulative changes in non-performance risk | 0 | 0 |
Balance, beginning of period, before effect of changes in non-performance risk | (301,771) | (398,254) |
Interest accrual | (5,813) | (7,035) |
Actual in force different from expected | (518) | (2,229) |
Effect of changes in interest rates | 78,746 | (33,851) |
Effect of changes in equity markets | 73,358 | 54,966 |
Effect of changes in current period counterparty non-performance risk | (21,341) | 15,728 |
Other adjustments | (585) | |
Balance, end of period, before effect of changes in non-performance risk | (204,027) | (396,326) |
Effect of cumulative changes in non-performance risk | 0 | 0 |
Balance, end of period | (204,027) | (396,326) |
Less: Reinsured Market Risk Benefits | ||
Market Risk Benefit [Roll Forward] | ||
Attributed fees collected | (26,214) | (27,304) |
Claims paid | 761 | 1,653 |
Issuances | (650) | |
Total, Net of Reinsurance | ||
Market Risk Benefit [Roll Forward] | ||
Balance, beginning of period | 0 | 0 |
Effect of cumulative changes in non-performance risk | 100,377 | 163,169 |
Balance, beginning of period, before effect of changes in non-performance risk | 100,377 | 163,169 |
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 |
Issuances | 0 | |
Effect of changes in current period counterparty non-performance risk | (21,341) | 15,728 |
Other adjustments | 0 | |
Balance, end of period, before effect of changes in non-performance risk | 79,036 | 178,897 |
Effect of cumulative changes in non-performance risk | (79,036) | (178,897) |
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 | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Total market risk benefit assets | $ 492,992 | $ 563,000 | $ 537,659 | |
Total market risk benefit liabilities | 492,992 | 563,000 | 537,659 | |
Variable Annuity [Member] | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Net amount at risk | $ 680,353 | $ 877,211 | ||
Weighted-average attained age of contractholders | 70 years | 68 years | ||
Direct and assumed | $ 144,482 | $ 83,298 | ||
Ceded | 348,510 | 479,624 | ||
Total market risk benefit assets | 492,992 | 562,922 | ||
Direct and assumed | 348,510 | 479,624 | ||
Ceded | 144,482 | 83,298 | ||
Total market risk benefit liabilities | 492,992 | 562,922 | ||
Net balance | $ 0 | $ 0 | $ 301,771 | $ 398,254 |
Reinsurance (Reinsurance amount
Reinsurance (Reinsurance amounts included in the Statements of Financial Position) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Effects of Reinsurance [Line Items] | |||
Reinsurance recoverables | $ 4,008,437 | $ 3,603,225 | |
Policy loans | (1,116,711) | (1,115,096) | |
Deferred policy acquisition cost | (398,083) | (393,139) | |
Market risk benefit assets | 492,992 | 537,659 | $ 563,000 |
Other assets | 47,655 | 49,010 | |
Market risk benefit liabilities | 492,992 | 537,659 | $ 563,000 |
Other liabilities | 1,002,953 | 470,830 | |
Impacts of Reinsurance | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance recoverables | 4,008,437 | 3,603,225 | |
Policy loans | (26,977) | (24,518) | |
Deferred policy acquisition cost | (620,920) | (620,878) | |
Deferred sales inducements | (34,683) | (35,313) | |
Market risk benefit assets | 348,510 | 419,715 | |
Other assets | 39,911 | 40,267 | |
Market risk benefit liabilities | 144,482 | 117,944 | |
Other liabilities | $ 953,708 | $ 412,919 |
Reinsurance (Reinsurance Recove
Reinsurance (Reinsurance Recoverable by Counterparty) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | $ 4,008,437 | $ 3,603,225 |
Prudential Insurance | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 1,172,091 | 724,297 |
PAR U | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 780,799 | 1,725,753 |
PARCC | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 416,267 | 432,554 |
PAR Term | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 278,626 | 279,990 |
Term Re | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 270,803 | 275,721 |
DART | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 100,666 | 102,611 |
Pruco Life | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 56,590 | 57,509 |
PURE | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 929,034 | 0 |
Unaffiliated | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | $ 3,561 | $ 4,790 |
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, 2024 | Mar. 31, 2023 | |
Premiums: | ||
Direct | $ 59,878 | $ 62,583 |
Ceded | (48,719) | (52,406) |
Net premiums | 11,159 | 10,177 |
Policy charges and fee income: | ||
Direct | 90,440 | 86,513 |
Assumed | 13,066 | 0 |
Ceded | 226,078 | (72,375) |
Net policy charges and fee income | 329,584 | 14,138 |
Net investment income: | ||
Direct | 50,372 | 28,886 |
Ceded | (345) | (226) |
Net investment income | 50,027 | 28,660 |
Asset administration fees: | ||
Direct | 9,290 | 8,776 |
Ceded | (6,668) | (6,696) |
Net asset administration fees | 2,622 | 2,080 |
Other income (loss): | ||
Direct | (985) | 1,145 |
Ceded | 2,311 | (1) |
Net other income | 1,326 | 1,146 |
Realized investment gains (losses), net: | ||
Direct | 1,265 | (9,457) |
Ceded | (5,856) | 1,159 |
Realized investment gains (losses), net | (4,591) | (8,298) |
Change in value of market risk benefits, net of related hedging gain (loss): | ||
Direct | 145,162 | (13,801) |
Ceded | (123,821) | (1,927) |
Net change in value of market risk benefits, net of related hedging gain (loss) | 21,341 | (15,728) |
Policyholders’ benefits (including change in reserves): | ||
Direct | 137,781 | 107,337 |
Ceded | 409,677 | 88,998 |
Net policyholders' benefits (including change in reserves) | 547,458 | 18,339 |
Change in estimates of liability for future policy benefits: | ||
Direct | 9,247 | (3,917) |
Ceded | (13,075) | 2,475 |
Net change in estimates of liability for future policy benefits | (3,828) | (1,442) |
Interest credited to policyholders’ account balances: | ||
Direct | 30,405 | 18,022 |
Ceded | (10,383) | (7,885) |
Net interest credited to policyholders’ account balances | 20,022 | 10,137 |
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization | (62,055) | (32,950) |
Unaffiliated | ||
Policy charges and fee income: | ||
Ceded | (1,300) | (1,300) |
Policyholders’ benefits (including change in reserves): | ||
Ceded | $ 0 | $ 0 |
Reinsurance (Life Insurance In
Reinsurance (Life Insurance In Force) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Reinsurance Disclosures [Abstract] | ||
Direct gross life insurance face amount in force | $ 154,609,232 | $ 154,115,666 |
Reinsurance ceded | (141,317,963) | (139,826,733) |
Net life insurance face amount in force | $ 13,291,269 | $ 14,288,933 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - USD ($) $ in Millions | 24 Months Ended | 48 Months Ended | 60 Months Ended | |||||
Dec. 31, 2014 | Jul. 01, 2012 | Dec. 31, 2009 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2013 | Dec. 31, 2019 | Jan. 01, 2024 | |
Somerset Re | ||||||||
Effects of Reinsurance [Line Items] | ||||||||
Deferred Reinsurance Gain | $ 199 | |||||||
Recapture loss | $ (183) | |||||||
Affiliated Entity | PAR U | ||||||||
Effects of Reinsurance [Line Items] | ||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95% | 100% | ||||||
Affiliated Entity | PARCC | ||||||||
Effects of Reinsurance [Line Items] | ||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 90% | |||||||
Affiliated Entity | PAR Term | ||||||||
Effects of Reinsurance [Line Items] | ||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95% | |||||||
Affiliated Entity | Term Re | ||||||||
Effects of Reinsurance [Line Items] | ||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95% | |||||||
Affiliated Entity | DART | ||||||||
Effects of Reinsurance [Line Items] | ||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95% | |||||||
Affiliated Entity | PURE | ||||||||
Effects of Reinsurance [Line Items] | ||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 100% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ (53,516) | $ (1,440) |
Effective Income Tax Rate, Percent | 38.11% | 12.17% |
Federal Statutory Income Tax Rate, Percent | 21% | |
Book-income Alternative Minimum Tax Rate | 15% |
Equity (Accumulated Other Compr
Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | $ (47,527) | |
Income tax benefit (expense) | 12,238 | $ (10,004) |
Ending Balance | (93,565) | |
Foreign Currency Translation Adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (1,079) | (1,214) |
Change in OCI before reclassifications | (100) | 100 |
Amounts reclassified from AOCI | 0 | 0 |
Income tax benefit (expense) | 16 | (22) |
Ending Balance | (1,163) | (1,136) |
Net Unrealized Investment Gains (Losses) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (130,117) | (176,386) |
Change in OCI before reclassifications | (42,547) | 39,128 |
Amounts reclassified from AOCI | (751) | (361) |
Income tax benefit (expense) | 9,098 | (8,139) |
Ending Balance | (164,317) | (145,758) |
Interest Rate Remeasurement of Future Policy Benefits | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 4,369 | 12,504 |
Change in OCI before reclassifications | 6,463 | (6,958) |
Amounts reclassified from AOCI | 0 | 0 |
Income tax benefit (expense) | (1,357) | 1,463 |
Ending Balance | 9,475 | 7,009 |
Gain (Loss) from Changes in Non-Performance Risk on Market Risk Benefits | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 79,300 | 128,906 |
Change in OCI before reclassifications | (21,341) | 15,727 |
Amounts reclassified from AOCI | 0 | 0 |
Income tax benefit (expense) | 4,481 | (3,306) |
Ending Balance | 62,440 | 141,327 |
Total Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (47,527) | (36,190) |
Change in OCI before reclassifications | (57,525) | 47,997 |
Amounts reclassified from AOCI | (751) | (361) |
Income tax benefit (expense) | 12,238 | (10,004) |
Ending Balance | (93,565) | 1,442 |
Cash flow hedges | Net Unrealized Investment Gains (Losses) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 5,000 | 14,000 |
Ending Balance | $ 8,000 | $ 13,000 |
Equity (Reclassification out of
Equity (Reclassification out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net Unrealized Investment Gains (Losses) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from AOCI | $ (751) | $ (361) |
Accumulated Other Comprehensive Income (Loss) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from AOCI | (751) | (361) |
Amounts reclassified from AOCI | Net Unrealized Investment Gains (Losses) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from AOCI | 751 | 361 |
Amounts reclassified from AOCI | Accumulated Other Comprehensive Income (Loss) | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Amounts reclassified from AOCI | 751 | 361 |
Amounts reclassified from AOCI | Available-for-sale | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net unrealized investment gains (losses): | (101) | (26) |
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): | $ 852 | $ 387 |
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, 2024 USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | $ (47,527) |
Ending Balance | (93,565) |
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 | 0 |
Net investment gains (losses) on investments arising during the period | (3) |
Reclassification adjustment for (gains) losses included in net income | 0 |
Impact of net unrealized investment (gains) losses | 0 |
Ending Balance | (3) |
Accumulated Net Unrealized Investment Gain (Loss) on All Other Investments | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (192,271) |
Net investment gains (losses) on investments arising during the period | (49,107) |
Reclassification adjustment for (gains) losses included in net income | (751) |
Impact of net unrealized investment (gains) losses | 0 |
Ending Balance | (242,129) |
Deferred Policy Acquisition Costs and Other Costs | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (52,266) |
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 | (46,572) |
Ending Balance | (98,838) |
Future Policy Benefits and Policyholders’ Account Balances and other liabilities | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | 79,826 |
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 | 53,135 |
Ending Balance | 132,961 |
Income Tax Benefit (Expense) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | 34,594 |
Net investment gains (losses) on investments arising during the period | 10,319 |
Reclassification adjustment for (gains) losses included in net income | 158 |
Impact of net unrealized investment (gains) losses | (1,379) |
Ending Balance | 43,692 |
Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (130,117) |
Net investment gains (losses) on investments arising during the period | (38,791) |
Reclassification adjustment for (gains) losses included in net income | (593) |
Impact of net unrealized investment (gains) losses | 5,184 |
Ending Balance | $ (164,317) |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Feb. 28, 2023 USD ($) | Mar. 31, 2024 USD ($) policy | Dec. 31, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Related Party Transaction [Line Items] | |||||
Commissions and fees | $ 329,584,000 | $ 14,138,000 | |||
Payments to Fund Policy Loans | 8,661,000 | 5,515,000 | |||
Policy loans | 1,116,711,000 | $ 1,115,096,000 | $ 1,115,096,000 | ||
Net investment income | 50,027,000 | 28,660,000 | |||
Other invested assets | 177,794,000 | 153,885,000 | 153,885,000 | ||
Fee income from revenue sharing agreement | 2,622,000 | 2,080,000 | |||
Pruco Life | |||||
Related Party Transaction [Line Items] | |||||
Contributed Capital | $ 175,000,000 | 82,000,000 | |||
Dividends | 0 | 0 | |||
Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Accrued interest receivable related to long-term notes | 100,000 | 0 | 0 | ||
Revenues related to long-term notes receivable | 0 | 0 | |||
Line of credit facility, maximum borrowing capacity | 250,000,000 | ||||
Debt Outstanding | 0 | 0 | 0 | ||
Interest expense related to loans payable | 0 | 0 | |||
Affiliated Entity | PAD | |||||
Related Party Transaction [Line Items] | |||||
Commissions and fees | 14,000,000 | 8,000,000 | |||
Affiliated Entity | PGIM | |||||
Related Party Transaction [Line Items] | |||||
Net investment income | 700,000 | 600,000 | |||
Affiliated Entity | ASTISI and PGIM Investments | |||||
Related Party Transaction [Line Items] | |||||
Fee income from revenue sharing agreement | 7,000,000 | 7,000,000 | |||
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 | 2,000,000 | 0 | |||
Other invested assets | 61,000,000 | 58,000,000 | 58,000,000 | ||
Prudential Financial | |||||
Related Party Transaction [Line Items] | |||||
Company's share of corporate expenses | $ 4,000,000 | 4,000,000 | |||
Number of Corporate Owned Life Insurance policies sold | policy | 1 | ||||
Payments to Fund Policy Loans | $ 900,000,000 | ||||
Policy loans | 898,000,000 | 898,000,000 | 898,000,000 | ||
Interest Income on Policy Loans | 10,000,000 | ||||
Prudential Insurance and Prudential Financial | |||||
Related Party Transaction [Line Items] | |||||
Life Insurance, Corporate or Bank Owned, amount | 2,606,000,000 | $ 2,452,000,000 | $ 2,452,000,000 | ||
Fees related to Life Insurance, Corporate or Bank Owned, amount | $ 6,000,000 | 6,000,000 | |||
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 | 200,000 | 300,000 | |||
Welfare plan expense | $ 400,000 | 400,000 | |||
Defined contribution plan, employer matching contribution, percent (up to) | 4% | ||||
Defined contribution plan, cost recognized | $ 100,000 | $ 200,000 | |||
Number of Corporate Owned Life Insurance policies sold | policy | 3 |
Related Party Transactions (Aff
Related Party Transactions (Affiliated Notes Receivable) (Details) - Affiliated Entity - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Related Party Transaction [Line Items] | ||
Total notes receivable - affiliated | $ 11,117 | $ 0 |
U.S. dollar fixed rate notes | ||
Related Party Transaction [Line Items] | ||
Total notes receivable - affiliated | $ 11,117 | $ 0 |
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, 2024 | Mar. 31, 2023 | |
Related Party Transaction [Line Items] | ||
Realized Investment gains (losses), net | $ (4,591) | $ (8,298) |
Affiliated Entity | Prudential Insurance June 2023 Purchase | ||
Related Party Transaction [Line Items] | ||
Fair Value | 14,452 | |
Book Value | 15,086 | |
APIC, Net of Tax Increase/(Decrease) | 501 | |
Realized Investment gains (losses), net | 0 | |
Affiliated Entity | Prudential Insurance December2023 Sale CM&OL | ||
Related Party Transaction [Line Items] | ||
Fair Value | 762 | |
Book Value | 754 | |
APIC, Net of Tax Increase/(Decrease) | 0 | |
Realized Investment gains (losses), net | 8 | |
Affiliated Entity | PAR U January 2024 Transfer in | ||
Related Party Transaction [Line Items] | ||
Fair Value | 778,745 | |
Book Value | 778,745 | |
APIC, Net of Tax Increase/(Decrease) | 0 | |
Realized Investment gains (losses), net | 0 | |
Affiliated Entity | PURE January 2024 Transfer out | ||
Related Party Transaction [Line Items] | ||
Fair Value | 778,745 | |
Book Value | 778,745 | |
APIC, Net of Tax Increase/(Decrease) | 0 | |
Realized Investment gains (losses), net | $ 0 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Narratives) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
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 | $ 20 | |
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) | 142 | $ 135 | |
Purchase Commitment | |||
Commitments and Contingent Liabilities [Line Items] | |||
Change in allowance for credit loss expense (reversal) | $ 0 | $ 0 |