Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 03, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-31911 | |
Entity Registrant Name | American Equity Investment Life Holding Co | |
Entity Incorporation, State or Country Code | IA | |
Entity Tax Identification Number | 42-1447959 | |
Entity Address, Address Line One | 6000 Westown Parkway | |
Entity Address, City or Town | West Des Moines | |
Entity Address, State or Province | IA | |
Entity Address, Postal Zip Code | 50266 | |
City Area Code | 515 | |
Local Phone Number | 221-0002 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 91,954,552 | |
Entity Central Index Key | 0001039828 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common stock, par value $1 | |
Trading Symbol | AEL | |
Security Exchange Name | NYSE | |
Preferred Stock, Series A | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/1,000th interest in a share of 5.95% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series A | |
Trading Symbol | AELPRA | |
Security Exchange Name | NYSE | |
Preferred Stock, Series B | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/1,000th interest in a share of 6.625% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series B | |
Trading Symbol | AELPRB | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Investments: | ||
Fixed maturity securities, available for sale, at fair value (amortized cost of $46,951,043 as of 2020 and $48,238,946 as of 2019; allowance for credit losses of $50,186 as of 2020) | $ 50,738,792 | $ 51,580,490 |
Mortgage loans on real estate (net of allowance for credit losses of $20,089 as of 2020 and $9,179 as of 2019) | 3,958,233 | 3,448,793 |
Derivative instruments | 672,958 | 1,355,989 |
Other investments | 479,099 | 492,301 |
Total investments | 55,849,082 | 56,877,573 |
Cash and cash equivalents | 2,408,635 | 2,293,392 |
Coinsurance deposits (net of allowance for credit losses of $3,948 as of 2020 and $0 as of 2019) | 4,962,859 | 5,115,013 |
Accrued investment income | 450,290 | 472,826 |
Deferred policy acquisition costs | 2,920,793 | 2,923,454 |
Deferred sales inducements | 1,937,083 | 1,966,723 |
Income taxes recoverable | 35,962 | 0 |
Other assets | 43,592 | 47,571 |
Total assets | 68,608,296 | 69,696,552 |
Liabilities: | ||
Policy benefit reserves | 61,669,232 | 61,893,945 |
Other policy funds and contract claims | 244,186 | 256,105 |
Notes payable | 495,388 | 495,116 |
Subordinated debentures | 77,964 | 157,265 |
Deferred income taxes | 229,757 | 177,897 |
Income taxes payable | 0 | 429 |
Other liabilities | 829,710 | 2,145,676 |
Total liabilities | 63,546,237 | 65,126,433 |
Stockholders' equity: | ||
Common stock; par value $1 per share; 200,000,000 shares authorized; issued and outstanding: 2020 - 91,595,066 shares (excluding 1,171,451 treasury shares); 2019 - 91,107,555 shares (excluding 1,344,193 treasury shares) | 91,595 | 91,107 |
Additional paid-in capital | 1,508,171 | 1,212,311 |
Accumulated other comprehensive income | 1,719,839 | 1,497,921 |
Retained earnings | 1,742,426 | 1,768,764 |
Total stockholders' equity | 5,062,059 | 4,570,119 |
Total liabilities and stockholders' equity | 68,608,296 | 69,696,552 |
Preferred Stock, Series A | ||
Stockholders' equity: | ||
Preferred stock | 16 | 16 |
Preferred Stock, Series B | ||
Stockholders' equity: | ||
Preferred stock | $ 12 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Fixed maturity securities, available for sale, amortized cost | $ 46,951,043 | [1] | $ 48,238,946 |
Fixed maturity securities, available for sale, allowance for credit losses | 50,186 | ||
Mortgage loans on real estate, allowance for credit losses | 20,089 | 9,179 | |
Coinsurance deposits, allowance for credit losses | $ 3,948 | $ 0 | |
Stockholders' equity: | |||
Common stock, par value (dollars per share) | $ 1 | $ 1 | |
Common stock, shares authorized | 200,000,000 | 200,000,000 | |
Common stock, shares issued | 91,595,066 | 91,107,555 | |
Common stock, shares outstanding | 91,595,066 | 91,107,555 | |
Common stock, shares held in treasury | 1,171,451 | 1,344,193 | |
Preferred Stock, Series A | |||
Stockholders' equity: | |||
Preferred stock, par value (dollars per share) | $ 1 | $ 1 | |
Preferred stock, aggregate liquidation preference | $ 400,000 | $ 400,000 | |
Preferred stock, shares authorized | 20,000 | 20,000 | |
Preferred stock, shares issued | 16,000 | 16,000 | |
Preferred stock, shares outstanding | 16,000 | 16,000 | |
Preferred Stock, Series B | |||
Stockholders' equity: | |||
Preferred stock, par value (dollars per share) | $ 1 | ||
Preferred stock, aggregate liquidation preference | $ 300,000 | ||
Preferred stock, shares authorized | 12,000 | ||
Preferred stock, shares issued | 12,000 | ||
Preferred stock, shares outstanding | 12,000 | ||
[1] | (1) Amortized cost excludes accrued interest receivable of $432.0 million as of June 30, 2020 . |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues: | ||||
Premiums and other considerations | $ 11,032 | $ 4,126 | $ 18,696 | $ 9,536 |
Annuity product charges | 63,438 | 60,700 | 122,987 | 113,666 |
Net investment income | 543,704 | 570,568 | 1,117,022 | 1,129,006 |
Change in fair value of derivatives | 327,662 | 76,045 | (614,212) | 460,514 |
Net realized gains (losses) on investments | (25,888) | (3,832) | (46,224) | (4,395) |
Total OTTI losses | 0 | (998) | 0 | (998) |
Portion of OTTI losses recognized from other comprehensive income | 0 | (215) | 0 | (215) |
Net OTTI losses recognized in operations | 0 | (1,213) | 0 | (1,213) |
Loss on extinguishment of debt | 0 | 0 | (2,024) | 0 |
Total revenues | 919,948 | 706,394 | 596,245 | 1,707,114 |
Benefits and expenses: | ||||
Insurance policy benefits and change in future policy benefits | 13,331 | 6,939 | 23,403 | 16,238 |
Interest sensitive and index product benefits | 240,992 | 251,103 | 641,211 | 387,777 |
Amortization of deferred sales inducements | (75,178) | 19,785 | (1,587) | 53,094 |
Change in fair value of embedded derivatives | 1,126,935 | 327,562 | (123,126) | 1,093,885 |
Interest expense on notes payable | 6,388 | 6,380 | 12,773 | 12,759 |
Interest expense on subordinated debentures | 1,321 | 4,057 | 2,909 | 8,145 |
Amortization of deferred policy acquisition costs | (119,889) | 29,946 | 813 | 75,078 |
Other operating costs and expenses | 41,951 | 37,426 | 85,577 | 76,405 |
Total benefits and expenses | 1,235,851 | 683,198 | 641,973 | 1,723,381 |
Income (loss) before income taxes | (315,903) | 23,196 | (45,728) | (16,267) |
Income tax expense (benefit) | (68,474) | 4,606 | (41,246) | (4,847) |
Net income (loss) | (247,429) | 18,590 | (4,482) | (11,420) |
Less: Preferred stock dividends | 5,950 | 0 | 12,561 | 0 |
Net income (loss) available to common stockholders | $ (253,379) | $ 18,590 | $ (17,043) | $ (11,420) |
Earnings (loss) per common share | $ (2.76) | $ 0.20 | $ (0.19) | $ (0.13) |
Earnings (loss) per common share - assuming dilution | $ (2.76) | $ 0.20 | $ (0.19) | $ (0.13) |
Weighted average common shares outstanding: earnings (loss) per common share | 91,803,312 | 91,103,151 | 91,723,814 | 90,993,810 |
Weighted average common shares outstanding: earnings (loss) per common share - assuming dilution | 92,026,853 | 91,785,223 | 92,023,966 | 91,765,098 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Net income (loss) | $ (247,429) | $ 18,590 | $ (4,482) | $ (11,420) | |
Other comprehensive income: | |||||
Change in net unrealized investment gains/losses (1) | [1] | 1,898,567 | 677,320 | 273,492 | 1,394,233 |
Noncredit component of OTTI losses (1) | [1] | 0 | 103 | 0 | 103 |
Reclassification of unrealized investment gains/losses to net income (loss) (1) | [1] | (2) | 1,422 | 7,418 | 1,128 |
Other comprehensive income before income tax | 1,898,565 | 678,845 | 280,910 | 1,395,464 | |
Income tax effect related to other comprehensive income | (398,700) | (142,558) | (58,992) | (293,048) | |
Other comprehensive income | 1,499,865 | 536,287 | 221,918 | 1,102,416 | |
Comprehensive income | $ 1,252,436 | $ 554,877 | $ 217,436 | $ 1,090,996 | |
[1] | Net of related adjustments to amortization of deferred sales inducements and deferred policy acquisition costs. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Stockholders' equity at beginning of period at Dec. 31, 2018 | $ 2,399,101 | $ 0 | $ 90,369 | $ 811,186 | $ (52,432) | $ 1,549,978 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (11,420) | (11,420) | ||||
Other comprehensive income | 1,102,416 | 1,102,416 | ||||
Share-based compensation | 7,360 | 7,360 | ||||
Issuance of common stock under compensation plans | 18 | 567 | (549) | |||
Stockholders' equity at end of period at Jun. 30, 2019 | 3,497,475 | 0 | 90,936 | 817,997 | 1,049,984 | 1,538,558 |
Stockholders' equity at beginning of period at Mar. 31, 2019 | 2,939,537 | 0 | 90,784 | 815,088 | 513,697 | 1,519,968 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 18,590 | 18,590 | ||||
Other comprehensive income | 536,287 | 536,287 | ||||
Share-based compensation | 3,155 | 3,155 | ||||
Issuance of common stock under compensation plans | (94) | 152 | (246) | |||
Stockholders' equity at end of period at Jun. 30, 2019 | 3,497,475 | 0 | 90,936 | 817,997 | 1,049,984 | 1,538,558 |
Stockholders' equity at beginning of period at Dec. 31, 2019 | 4,570,119 | 16 | 91,107 | 1,212,311 | 1,497,921 | 1,768,764 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (4,482) | (4,482) | ||||
Other comprehensive income | 221,918 | 221,918 | ||||
Issuance of preferred stock | 290,260 | 12 | 290,248 | |||
Share-based compensation | 4,394 | 4,394 | ||||
Issuance of common stock under compensation plans | 1,706 | 488 | 1,218 | |||
Cumulative effect of change in accounting principle | (9,295) | (9,295) | ||||
Dividends on preferred stock | (12,561) | (12,561) | ||||
Stockholders' equity at end of period at Jun. 30, 2020 | 5,062,059 | 28 | 91,595 | 1,508,171 | 1,719,839 | 1,742,426 |
Stockholders' equity at beginning of period at Mar. 31, 2020 | 3,522,757 | 16 | 91,498 | 1,215,464 | 219,974 | 1,995,805 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (247,429) | (247,429) | ||||
Other comprehensive income | 1,499,865 | 1,499,865 | ||||
Issuance of preferred stock | 290,260 | 12 | 290,248 | |||
Share-based compensation | 2,105 | 2,105 | ||||
Issuance of common stock under compensation plans | 451 | 97 | 354 | |||
Dividends on preferred stock | (5,950) | (5,950) | ||||
Stockholders' equity at end of period at Jun. 30, 2020 | $ 5,062,059 | $ 28 | $ 91,595 | $ 1,508,171 | $ 1,719,839 | $ 1,742,426 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Shares of common stock issued under compensation plans | 97,225 | 152,201 | 487,511 | 567,095 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating activities | ||
Net income (loss) | $ (4,482) | $ (11,420) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Interest sensitive and index product benefits | 641,211 | 387,777 |
Amortization of deferred sales inducements | (1,587) | 53,094 |
Annuity product charges | (122,987) | (113,666) |
Change in fair value of embedded derivatives | (123,126) | 1,093,885 |
Change in traditional life and accident and health insurance reserves | 3,322 | (2,889) |
Policy acquisition costs deferred | (123,861) | (236,076) |
Amortization of deferred policy acquisition costs | 813 | 75,078 |
Provision for depreciation and other amortization | 2,485 | 1,916 |
Amortization of discounts and premiums on investments | 17,645 | 12,734 |
Realized gains/losses on investments | 46,224 | 4,395 |
Realized gains/losses on investments | 5,608 | |
Distributions from equity method investments | 0 | 753 |
Change in fair value of derivatives | 614,212 | (460,326) |
Deferred income taxes | (7,132) | (11,207) |
Loss on extinguishment of debt | 2,024 | 0 |
Share-based compensation | 4,394 | 7,360 |
Change in accrued investment income | 22,536 | (11,935) |
Change in income taxes recoverable/payable | (36,391) | (21,547) |
Change in other assets | 3,055 | (4,868) |
Change in other policy funds and contract claims | (15,222) | (10,605) |
Change in collateral held for derivatives | (727,069) | 680,208 |
Change in collateral held for securities lending | (494,280) | 441,908 |
Change in other liabilities | (36,407) | 1,306 |
Other | 6,727 | (5,854) |
Net cash provided by (used in) operating activities | (327,896) | 1,871,234 |
Sales, maturities, or repayments of investments: | ||
Fixed maturity securities, available for sale | 2,413,147 | 859,767 |
Mortgage loans on real estate | 129,531 | 136,035 |
Derivative instruments | 430,662 | 238,557 |
Other investments | 3,013 | 3,407 |
Acquisitions of investments: | ||
Fixed maturity securities, available for sale | (1,137,134) | (2,199,848) |
Mortgage loans on real estate | (654,936) | (276,385) |
Derivative instruments | (389,877) | (419,798) |
Other investments | (4,936) | (291,519) |
Purchases of property, furniture and equipment | (11,624) | (1,400) |
Net cash provided by (used in) investing activities | 777,846 | (1,951,184) |
Financing activities | ||
Receipts credited to annuity policyholder account balances | 1,248,172 | 2,732,241 |
Coinsurance deposits | 204,759 | 59,190 |
Return of annuity policyholder account balances | (1,971,344) | (1,726,013) |
Repayment of subordinated debentures | (81,450) | 0 |
Net proceeds from amounts due under repurchase agreements | 0 | (109,298) |
Proceeds from issuance of preferred stock, net | 290,260 | 0 |
Proceeds from issuance of common stock, net | 1,706 | 18 |
Change in checks in excess of cash balance | (14,249) | (4,617) |
Preferred stock dividends | (12,561) | 0 |
Net cash provided by (used in) financing activities | (334,707) | 951,521 |
Increase in cash and cash equivalents | 115,243 | 871,571 |
Cash and cash equivalents at beginning of period | 2,293,392 | 344,396 |
Cash and cash equivalents at end of period | 2,408,635 | 1,215,967 |
Cash paid during period for interest: | ||
Interest expense | 16,427 | 22,513 |
Cash paid (received) during period for income taxes: | ||
Income taxes | (161) | |
Income taxes | 28,193 | |
Non-cash operating activity: | ||
Deferral of sales inducements | $ 47,262 | $ 93,991 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Consolidation and Basis of Presentation The accompanying consolidated financial statements of American Equity Investment Life Holding Company ("we", "us", "our" or the "Company") have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and notes required by GAAP for complete financial statements. The consolidated financial statements reflect all adjustments, consisting only of normal recurring items, which are necessary to present fairly our financial position and results of operations on a basis consistent with the prior audited consolidated financial statements. Operating results for the three and six month periods ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ended December 31, 2020 . All significant intercompany accounts and transactions have been eliminated. The preparation of financial statements requires the use of management estimates. For further information related to a description of areas of judgment and estimates and other information necessary to understand our financial position and results of operations, refer to the audited consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2019 . Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”) that significantly changed the impairment model for most financial assets that are measured at amortized cost and certain other instruments from an incurred loss model to an expected loss model that requires these assets be presented at the net amount expected to be collected. In addition, credit losses on available for sale debt securities will be recorded through an allowance account subsequent to the adoption of this ASU. We adopted this ASU on January 1, 2020. The adoption of this ASU resulted in an increase in our mortgage loan allowance for credit losses of $8.6 million and the recognition of an allowance for credit losses on our reinsurance recoverable/coinsurance deposits balances of $3.2 million on the date of adoption. Retained earnings was decreased by $9.3 million , which reflects the net of tax impact of the increase in the mortgage loan allowance for credit losses and the recognition of an allowance for credit losses on our reinsurance recoverable/coinsurance deposits balances on the date of adoption. New Accounting Pronouncements In August 2018, the FASB issued an ASU that revises certain aspects of the measurement models and disclosure requirements for long duration insurance and investment contracts. The FASB’s objective in issuing this ASU is to improve, simplify, and enhance the accounting for long-duration contracts. The revisions include updating cash flow assumptions in the calculation of the liability for traditional life products, introducing the term ‘market risk benefit’ ("MRB") and requiring all contract features meeting the definition of an MRB to be measured at fair value, simplifying the method used to amortize deferred policy acquisition costs and deferred sales inducements to a constant basis over the expected term of the related contracts rather than based on actual and estimated gross profits and enhancing disclosure requirements. While this ASU is effective for us on January 1, 2022, the transition date (the remeasurement date) is January 1, 2020. Early adoption of this ASU is permitted. We are in the process of evaluating the impact this guidance will have on our consolidated financial statements. |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Financial Instruments | Fair Values of Financial Instruments The following sets forth a comparison of the carrying amounts and fair values of our financial instruments: June 30, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value (Dollars in thousands) Assets Fixed maturity securities, available for sale $ 50,738,792 $ 50,738,792 $ 51,580,490 $ 51,580,490 Mortgage loans on real estate 3,958,233 4,044,873 3,448,793 3,536,446 Derivative instruments 672,958 672,958 1,355,989 1,355,989 Other investments 479,099 479,099 492,301 492,301 Cash and cash equivalents 2,408,635 2,408,635 2,293,392 2,293,392 Coinsurance deposits 4,962,859 4,527,374 5,115,013 4,635,926 Interest rate caps — — 6 6 Liabilities Policy benefit reserves 61,312,957 51,865,732 61,540,992 51,800,247 Single premium immediate annuity (SPIA) benefit reserves 243,910 251,599 255,698 263,773 Notes payable 495,388 543,520 495,116 541,520 Subordinated debentures 77,964 74,084 157,265 168,357 Fair value is the price that would be received to sell an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. The objective of a fair value measurement is to determine that price for each financial instrument at each measurement date. We meet this objective using various methods of valuation that include market, income and cost approaches. We categorize our financial instruments into three levels of fair value hierarchy based on the priority of inputs used in determining fair value. The hierarchy defines the highest priority inputs (Level 1) as quoted prices in active markets for identical assets or liabilities. The lowest priority inputs (Level 3) are our own assumptions about what a market participant would use in determining fair value such as estimated future cash flows. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, a financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. We categorize financial assets and liabilities recorded at fair value in the consolidated balance sheets as follows: Level 1— Quoted prices are available in active markets for identical financial instruments as of the reporting date. We do not adjust the quoted price for these financial instruments, even in situations where we hold a large position and a sale could reasonably impact the quoted price. Level 2— Quoted prices in active markets for similar financial instruments, quoted prices for identical or similar financial instruments in markets that are not active; and models and other valuation methodologies using inputs other than quoted prices that are observable. Level 3— Models and other valuation methodologies using significant inputs that are unobservable for financial instruments and include situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. Financial instruments that are included in Level 3 are securities for which no market activity or data exists and for which we used discounted expected future cash flows with our own assumptions about what a market participant would use in determining fair value. Transfers of securities among the levels occur at times and depend on the type of inputs used to determine fair value of each security. There were no transfers between levels during any period presented. Our assets and liabilities which are measured at fair value on a recurring basis as of June 30, 2020 and December 31, 2019 are presented below based on the fair value hierarchy levels: Total Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) June 30, 2020 Assets Fixed maturity securities, available for sale: United States Government full faith and credit $ 39,342 $ 33,057 $ 6,285 $ — United States Government sponsored agencies 343,387 — 343,387 — United States municipalities, states and territories 3,778,710 — 3,778,710 — Foreign government obligations 207,509 — 207,509 — Corporate securities 33,330,711 10 33,330,701 — Residential mortgage backed securities 1,712,725 — 1,712,725 — Commercial mortgage backed securities 5,393,062 — 5,393,062 — Other asset backed securities 5,933,346 — 5,933,346 — Derivative instruments 672,958 — 672,958 — Cash and cash equivalents 2,408,635 2,408,635 — — $ 53,820,385 $ 2,441,702 $ 51,378,683 $ — Liabilities Fixed index annuities - embedded derivatives $ 9,418,485 $ — $ — $ 9,418,485 December 31, 2019 Assets Fixed maturity securities, available for sale: United States Government full faith and credit $ 161,765 $ 155,945 $ 5,820 $ — United States Government sponsored agencies 625,020 — 625,020 — United States municipalities, states and territories 4,527,671 — 4,527,671 — Foreign government obligations 205,096 — 205,096 — Corporate securities 32,536,839 4 32,536,835 — Residential mortgage backed securities 1,575,664 — 1,575,664 — Commercial mortgage backed securities 5,786,279 — 5,786,279 — Other asset backed securities 6,162,156 — 6,162,156 — Derivative instruments 1,355,989 — 1,355,989 — Cash and cash equivalents 2,293,392 2,293,392 — — Interest rate caps 6 — 6 — $ 55,229,877 $ 2,449,341 $ 52,780,536 $ — Liabilities Fixed index annuities - embedded derivatives $ 9,624,395 $ — $ — $ 9,624,395 The following methods and assumptions were used in estimating the fair values of financial instruments during the periods presented in these consolidated financial statements. Fixed maturity securities The fair values of fixed maturity securities in an active and orderly market are determined by utilizing independent pricing services. The independent pricing services incorporate a variety of observable market data in their valuation techniques, including: • reported trading prices, • benchmark yields, • broker-dealer quotes, • benchmark securities, • bids and offers, • credit ratings, • relative credit information, and • other reference data. The independent pricing services also take in to account perceived market movements and sector news, as well as a security's terms and conditions, including any features specific to that issue that may influence risk and marketability. Depending on the security, the priority of the use of observable market inputs may change as some observable market inputs may not be relevant or additional inputs may be necessary. The independent pricing services provide quoted market prices when available. Quoted prices are not always available due to market inactivity. When quoted market prices are not available, the third parties use yield data and other factors relating to instruments or securities with similar characteristics to determine fair value for securities that are not actively traded. We generally obtain one value from our primary external pricing service. In situations where a price is not available from this service, we may obtain quotes or prices from additional parties as needed. Market indices of similar rated asset class spreads are considered for valuations and broker indications of similar securities are compared. Inputs used by the broker include market information, such as yield data and other factors relating to instruments or securities with similar characteristics. Valuations and quotes obtained from third party commercial pricing services are non-binding and do not represent quotes on which one may execute the disposition of the assets. We validate external valuations at least quarterly through a combination of procedures that include the evaluation of methodologies used by the pricing services, comparison of the prices to a secondary pricing source, analytical reviews and performance analysis of the prices against trends, and maintenance of a securities watch list. Additionally, as needed we utilize discounted cash flow models or perform independent valuations on a case-by-case basis using inputs and assumptions similar to those used by the pricing services. Although we do identify differences from time to time as a result of these validation procedures, we did not make any significant adjustments as of June 30, 2020 and December 31, 2019 . Mortgage loans on real estate Mortgage loans on real estate are not measured at fair value on a recurring basis. The fair values of mortgage loans on real estate are calculated using discounted expected cash flows using competitive market interest rates currently being offered for similar loans. The fair values of impaired mortgage loans on real estate that we have considered to be collateral dependent are based on the fair value of the real estate collateral (based on appraised values) less estimated costs to sell. The inputs utilized to determine fair value of all mortgage loans are unobservable market data (competitive market interest rates); therefore, fair value of mortgage loans falls into Level 3 in the fair value hierarchy. Derivative instruments The fair values of derivative instruments, primarily call options, are based upon the amount of cash that we will receive to settle each derivative instrument on the reporting date. These amounts are determined by our investment team using industry accepted valuation models and are adjusted for the nonperformance risk of each counterparty net of any collateral held. Inputs include market volatility and risk free interest rates and are used in income valuation techniques in arriving at a fair value for each option contract. The nonperformance risk for each counterparty is based upon its credit default swap rate. We have no performance obligations related to the call options purchased to fund our fixed index annuity policy liabilities. Other investments Financial instruments included in other investments that are not measured at fair value on a recurring basis are policy loans, equity method investments and company owned life insurance ("COLI"). We have not attempted to determine the fair values associated with our policy loans, as we believe any differences between carrying values and the fair values afforded these instruments are immaterial to our consolidated financial position and, accordingly, the cost to provide such disclosure does not justify the benefit to be derived. The fair values of our equity method investments are obtained from third parties and are determined using a variety of valuation techniques, including discounted cash flow analysis, valuation multiples analysis for comparable investments and appraisal values. As the risk spread and liquidity discount are unobservable market inputs, the fair value of our equity method investments falls within Level 3 of the fair value hierarchy. The fair value of our COLI approximates the cash surrender value of the policies and falls within Level 2 of the fair value hierarchy. Cash and cash equivalents Amounts reported in the consolidated balance sheets for these instruments are reported at their historical cost which approximates fair value due to the nature of the assets assigned to this category. Interest rate caps The fair values of our interest rate caps are obtained from third parties and are determined by discounting expected future cash flows using a projected London Interbank Offered Rate ("LIBOR") for the term of the caps. Policy benefit reserves, coinsurance deposits and SPIA benefit reserves The fair values of the liabilities under contracts not involving significant mortality or morbidity risks (principally deferred annuities), are stated at the cost we would incur to extinguish the liability (i.e., the cash surrender value) as these contracts are generally issued without an annuitization date. The coinsurance deposits related to the annuity benefit reserves have fair values determined in a similar fashion. For period-certain annuity benefit contracts, the fair value is determined by discounting the benefits at the interest rates currently in effect for newly issued immediate annuity contracts. We are not required to and have not estimated the fair value of the liabilities under contracts that involve significant mortality or morbidity risks, as these liabilities fall within the definition of insurance contracts that are exceptions from financial instruments that require disclosures of fair value. Policy benefit reserves, coinsurance deposits and SPIA benefit reserves are not measured at fair value on a recurring basis. All of the fair values presented within these categories fall within Level 3 of the fair value hierarchy as most of the inputs are unobservable market data. Notes payable The fair values of our senior unsecured notes are based upon quoted market prices and are categorized as Level 2 within the fair value hierarchy. Notes payable are not remeasured at fair value on a recurring basis. Subordinated debentures Fair values for subordinated debentures are estimated using discounted cash flow calculations based principally on observable inputs including our incremental borrowing rates, which reflect our credit rating, for similar types of borrowings with maturities consistent with those remaining for the debt being valued. These fair values are categorized as Level 2 within the fair value hierarchy. Subordinated debentures are not measured at fair value on a recurring basis. Fixed index annuities - embedded derivatives We estimate the fair value of the embedded derivative component of our fixed index annuity policy benefit reserves at each valuation date by (i) projecting policy contract values and minimum guaranteed contract values over the expected lives of the contracts and (ii) discounting the excess of the projected contract value amounts at the applicable risk free interest rates adjusted for our nonperformance risk related to those liabilities. The projections of policy contract values are based on our best estimate assumptions for future policy growth and future policy decrements. Our best estimate assumptions for future policy growth include assumptions for the expected index credit on the next policy anniversary date which are derived from the fair values of the underlying call options purchased to fund such index credits and the expected costs of annual call options we will purchase in the future to fund index credits beyond the next policy anniversary. The projections of minimum guaranteed contract values include the same best estimate assumptions for policy decrements as were used to project policy contract values. Within this determination we have the following significant unobservable inputs: 1) the expected cost of annual call options we will purchase in the future to fund index credits beyond the next policy anniversary and 2) our best estimates for future policy decrements, primarily lapse, partial withdrawal and mortality rates. As of both June 30, 2020 and December 31, 2019 , we utilized an estimate of 2.90% for the expected cost of annual call options, which is based on estimated long-term account value growth and a historical review of our actual option costs. Our best estimate assumptions for lapse, partial withdrawal and mortality rates are based on our actual experience and our outlook as to future expectations for such assumptions. These assumptions, which are consistent with the assumptions used in calculating deferred policy acquisition costs and deferred sales inducements, are reviewed on a quarterly basis and are revised as our experience develops and/or as future expectations change. The following table presents average lapse rate and partial withdrawal rate assumptions, by contract duration, used in estimating the fair value of the embedded derivative component of our fixed index annuity policy benefit reserves at each reporting date: Average Lapse Rates Average Partial Withdrawal Rates Contract Duration (Years) June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 1 - 5 0.98% 0.90% 3.38% 3.33% 6 - 10 1.29% 1.29% 3.87% 3.84% 11 - 15 3.11% 3.31% 4.12% 4.12% 16 - 20 7.74% 8.52% 4.21% 4.18% 20+ 7.29% 7.10% 4.12% 4.12% Lapse rates are generally expected to increase as surrender charge percentages decrease. Lapse expectations reflect a significant increase in the year in which the surrender charge period on a contract ends. The following table provides a reconciliation of the beginning and ending balances for our Level 3 liabilities, which are measured at fair value on a recurring basis using significant unobservable inputs for the three and six months ended June 30, 2020 and 2019 : Three Months Ended Six Months Ended 2020 2019 2020 2019 (Dollars in thousands) Fixed index annuities - embedded derivatives Beginning balance $ 8,451,482 $ 8,876,055 $ 9,624,395 $ 8,165,405 Premiums less benefits 53,019 200,472 165,177 258,480 Change in fair value, net 913,984 204,590 (371,087 ) 857,232 Ending balance $ 9,418,485 $ 9,281,117 $ 9,418,485 $ 9,281,117 The fair value of our fixed index annuities embedded derivatives is net of coinsurance ceded of $637.2 million and $644.6 million as of June 30, 2020 and December 31, 2019 , respectively. Change in fair value, net for each period in our embedded derivatives is included in change in fair value of embedded derivatives in the unaudited consolidated statements of operations. Certain derivatives embedded in our fixed index annuity contracts are our most significant financial instrument measured at fair value that are categorized as Level 3 in the fair value hierarchy. The contractual obligations for future annual index credits within our fixed index annuity contracts are treated as a "series of embedded derivatives" over the expected life of the applicable contracts. We estimate the fair value of these embedded derivatives at each valuation date by the method described above under fixed index annuities - embedded derivatives . The projections of minimum guaranteed contract values include the same best estimate assumptions for policy decrements as were used to project policy contract values. The most sensitive assumption in determining policy liabilities for fixed index annuities is the rates used to discount the excess projected contract values. As indicated above, the discount rate reflects our nonperformance risk. If the discount rates used to discount the excess projected contract values at June 30, 2020 , were to increase by 100 basis points, the fair value of the embedded derivatives would decrease by $868.6 million recorded through operations as a decrease in the change in fair value of embedded derivatives and there would be a corresponding decrease of $360.2 million to our combined balance for deferred policy acquisition costs and deferred sales inducements recorded through operations as an increase in amortization of deferred policy acquisition costs and deferred sales inducements. A decrease by 100 basis points in the discount rates used to discount the excess projected contract values would increase the fair value of the embedded derivatives by $967.6 million recorded through operations as an increase in the change in fair value of embedded derivatives and there would be a corresponding increase of $419.4 million |
Investments
Investments | 6 Months Ended |
Jun. 30, 2020 | |
Investments [Abstract] | |
Investments | Investments At June 30, 2020 and December 31, 2019 , the amortized cost and fair value of fixed maturity securities were as follows: Amortized Cost (1) Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value (Dollars in thousands) June 30, 2020 Fixed maturity securities, available for sale: United States Government full faith and credit $ 36,507 $ 2,835 $ — $ — $ 39,342 United States Government sponsored agencies 293,731 49,656 — — 343,387 United States municipalities, states and territories 3,283,321 497,428 (2,039 ) — 3,778,710 Foreign government obligations 187,021 21,616 (1,128 ) — 207,509 Corporate securities 29,734,789 3,889,518 (246,847 ) (46,749 ) 33,330,711 Residential mortgage backed securities 1,588,760 129,579 (4,837 ) (777 ) 1,712,725 Commercial mortgage backed securities 5,524,081 138,590 (266,949 ) (2,660 ) 5,393,062 Other asset backed securities 6,302,833 96,404 (465,891 ) — 5,933,346 $ 46,951,043 $ 4,825,626 $ (987,691 ) $ (50,186 ) $ 50,738,792 December 31, 2019 Fixed maturity securities, available for sale: United States Government full faith and credit $ 161,492 $ 369 $ (96 ) $ — $ 161,765 United States Government sponsored agencies 601,672 28,133 (4,785 ) — 625,020 United States municipalities, states and territories 4,147,343 388,578 (8,250 ) — 4,527,671 Foreign government obligations 186,993 18,103 — — 205,096 Corporate securities 29,822,172 2,796,926 (82,259 ) — 32,536,839 Residential mortgage backed securities 1,477,738 101,617 (3,691 ) — 1,575,664 Commercial mortgage backed securities 5,591,167 208,895 (13,783 ) — 5,786,279 Other asset backed securities 6,250,369 90,978 (179,191 ) — 6,162,156 $ 48,238,946 $ 3,633,599 $ (292,055 ) $ — $ 51,580,490 (1) Amortized cost excludes accrued interest receivable of $432.0 million as of June 30, 2020 . The amortized cost and fair value of fixed maturity securities at June 30, 2020 , by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. All of our mortgage and other asset backed securities provide for periodic payments throughout their lives and are shown below as separate lines. Available for sale Amortized Cost Fair Value (Dollars in thousands) Due in one year or less $ 425,542 $ 432,132 Due after one year through five years 6,511,972 6,869,898 Due after five years through ten years 9,337,950 10,131,288 Due after ten years through twenty years 9,676,298 11,429,195 Due after twenty years 7,583,607 8,837,146 33,535,369 37,699,659 Residential mortgage backed securities 1,588,760 1,712,725 Commercial mortgage backed securities 5,524,081 5,393,062 Other asset backed securities 6,302,833 5,933,346 $ 46,951,043 $ 50,738,792 Net unrealized gains on available for sale fixed maturity securities reported as a separate component of stockholders' equity were comprised of the following: June 30, 2020 December 31, 2019 (Dollars in thousands) Net unrealized gains on available for sale fixed maturity securities $ 3,826,652 $ 3,341,544 Adjustments for assumed changes in amortization of deferred policy acquisition costs and deferred sales inducements (1,678,164 ) (1,473,966 ) Deferred income tax valuation allowance reversal 22,534 22,534 Deferred income tax expense (451,183 ) (392,191 ) Net unrealized gains reported as accumulated other comprehensive income $ 1,719,839 $ 1,497,921 The National Association of Insurance Commissioners ("NAIC") assigns designations to fixed maturity securities. These designations range from Class 1 (highest quality) to Class 6 (lowest quality). In general, securities are assigned a designation based upon the ratings they are given by the Nationally Recognized Statistical Rating Organizations ("NRSRO’s"). The NAIC designations are utilized by insurers in preparing their annual statutory statements. NAIC Class 1 and 2 designations are considered "investment grade" while NAIC Class 3 through 6 designations are considered "non-investment grade." Based on the NAIC designations, we had 97% and 98% of our fixed maturity portfolio rated investment grade at June 30, 2020 and December 31, 2019 , respectively. The following table summarizes the credit quality, as determined by NAIC designation, of our fixed maturity portfolio as of the dates indicated: June 30, 2020 December 31, 2019 NAIC Designation Amortized Cost Fair Value Amortized Cost Fair Value (Dollars in thousands) 1 $ 25,587,355 $ 28,327,288 $ 27,781,525 $ 30,122,657 2 19,487,757 20,765,334 19,278,355 20,316,911 3 1,577,056 1,430,998 1,001,087 977,191 4 185,879 156,234 114,497 112,534 5 51,893 31,644 57,952 45,205 6 61,103 27,294 5,530 5,992 $ 46,951,043 $ 50,738,792 $ 48,238,946 $ 51,580,490 The following table shows our investments' gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities (consisting of 1,613 and 1,033 securities, respectively) have been in a continuous unrealized loss position, at June 30, 2020 and December 31, 2019 : Less than 12 months 12 months or more Total Fair Value Unrealized Losses (1) Fair Value Unrealized Losses (1) Fair Value Unrealized Losses (1) (Dollars in thousands) June 30, 2020 Fixed maturity securities, available for sale: United States municipalities, states and territories $ 51,931 $ (2,039 ) $ — $ — $ 51,931 $ (2,039 ) Foreign government obligations 23,057 (1,128 ) — — 23,057 (1,128 ) Corporate securities: Finance, insurance and real estate 626,564 (23,749 ) — — 626,564 (23,749 ) Manufacturing, construction and mining 280,272 (12,977 ) 18,451 (2,678 ) 298,723 (15,655 ) Utilities and related sectors 457,237 (62,364 ) 37,346 (9,405 ) 494,583 (71,769 ) Wholesale/retail trade 185,882 (21,316 ) 105,576 (27,228 ) 291,458 (48,544 ) Services, media and other 570,547 (64,840 ) 234,595 (69,039 ) 805,142 (133,879 ) Residential mortgage backed securities 221,327 (3,882 ) 12,675 (1,732 ) 234,002 (5,614 ) Commercial mortgage backed securities 2,711,400 (249,494 ) 88,303 (20,115 ) 2,799,703 (269,609 ) Other asset backed securities 2,161,262 (125,269 ) 2,677,210 (340,622 ) 4,838,472 (465,891 ) $ 7,289,479 $ (567,058 ) $ 3,174,156 $ (470,819 ) $ 10,463,635 $ (1,037,877 ) December 31, 2019 Fixed maturity securities, available for sale: United States Government full faith and credit $ 144,582 $ (96 ) $ — $ — $ 144,582 $ (96 ) United States Government sponsored agencies 168,732 (1,229 ) 201,444 (3,556 ) 370,176 (4,785 ) United States municipalities, states and territories 285,481 (8,173 ) 3,081 (77 ) 288,562 (8,250 ) Corporate securities: Finance, insurance and real estate 267,521 (4,785 ) 121,993 (4,744 ) 389,514 (9,529 ) Manufacturing, construction and mining 161,633 (6,039 ) 44,606 (3,951 ) 206,239 (9,990 ) Utilities and related sectors 334,635 (7,730 ) 51,269 (3,482 ) 385,904 (11,212 ) Wholesale/retail trade 54,289 (1,751 ) 129,364 (9,411 ) 183,653 (11,162 ) Services, media and other 275,135 (6,135 ) 316,086 (34,231 ) 591,221 (40,366 ) Residential mortgage backed securities 212,404 (2,686 ) 11,332 (1,005 ) 223,736 (3,691 ) Commercial mortgage backed securities 602,394 (9,366 ) 194,328 (4,417 ) 796,722 (13,783 ) Other asset backed securities 752,413 (11,709 ) 3,375,016 (167,482 ) 4,127,429 (179,191 ) $ 3,259,219 $ (59,699 ) $ 4,448,519 $ (232,356 ) $ 7,707,738 $ (292,055 ) (1) Unrealized losses have not been reduced to reflect the allowance for credit losses of $50.2 million as of June 30, 2020 . The unrealized losses at June 30, 2020 are principally related to the impacts the COVID-19 pandemic had on credit markets. In addition, certain unrealized losses at June 30, 2020 are related to the timing of the purchases of certain securities, which carry less yield than those currently available. Approximately 80% and 79% of the unrealized losses on fixed maturity securities shown in the above table for June 30, 2020 and December 31, 2019 , respectively, are on securities that are rated investment grade, defined as being the highest two NAIC designations. We expect to recover our amortized cost on all securities except for those securities on which we recognized an allowance for credit loss. In addition, because we did not have the intent to sell fixed maturity securities with unrealized losses and it was not more likely than not that we would be required to sell these securities prior to recovery of the amortized cost, which may be maturity, we did not write down these investments to fair value through operations. Changes in net unrealized gains/losses on investments for the three and six months ended June 30, 2020 and 2019 are as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 (Dollars in thousands) Fixed maturity securities available for sale carried at fair value $ 3,347,516 $ 1,383,290 $ 485,108 $ 2,900,810 Adjustment for effect on other balance sheet accounts: Deferred policy acquisition costs and deferred sales inducements (1,448,951 ) (704,445 ) (204,198 ) (1,505,346 ) Deferred income tax asset/liability (398,700 ) (142,558 ) (58,992 ) (293,048 ) (1,847,651 ) (847,003 ) (263,190 ) (1,798,394 ) Change in net unrealized gains/losses on investments carried at fair value $ 1,499,865 $ 536,287 $ 221,918 $ 1,102,416 Proceeds from sales of available for sale fixed maturity securities for the six months ended June 30, 2020 and 2019 were $973.4 million and $359.3 million , respectively. Scheduled principal repayments, calls and tenders for available for sale fixed maturity securities for the six months ended June 30, 2020 and 2019 were $1.4 billion and $500.5 million , respectively. Net realized gains (losses) on investments for the three and six months ended June 30, 2020 and 2019 , are as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 (Dollars in thousands) Available for sale fixed maturity securities: Gross realized gains $ 1,215 $ 5,255 $ 15,453 $ 6,426 Gross realized losses (264 ) (2,287 ) (1,470 ) (4,081 ) Credit losses (1) (25,041 ) — (56,412 ) — (24,090 ) 2,968 (42,429 ) 2,345 Other investments: Gross realized gains — 7,296 — 7,296 Gross realized losses — (14,446 ) — (14,446 ) — (7,150 ) — (7,150 ) Mortgage loans on real estate: Increase (decrease) in allowance for credit losses (2,510 ) 350 (4,507 ) 410 Recovery of specific allowance 712 — 712 — (1,798 ) 350 (3,795 ) 410 $ (25,888 ) $ (3,832 ) $ (46,224 ) $ (4,395 ) (1) Prior to adopting authoritative guidance effective January 1, 2020, credit losses on available for sale fixed maturity securities were classified as other than temporary impairments and reported in a separate line item in the Consolidated statements of operations. We recognized $1.2 million of other than temporary impairments during the three and six months ended June 30, 2019 . Losses on available for sale fixed maturity securities in 2020 and 2019 were realized primarily due to strategies to reposition the fixed maturity security portfolio that result in improved net investment income, credit risk or duration profiles as they pertain to our asset liability management. Realized gains and losses on sales are determined on the basis of specific identification of investments based on the trade date. We review and analyze all investments on an ongoing basis for changes in market interest rates and credit deterioration. This review process includes analyzing our ability to recover the amortized cost basis of each investment that has a fair value that is materially lower than its amortized cost and requires a high degree of management judgment and involves uncertainty. The evaluation of securities for credit loss is a quantitative and qualitative process, which is subject to risks and uncertainties. We have a policy and process to identify securities that could potentially have credit loss. This process involves monitoring market events and other items that could impact issuers. The evaluation includes but is not limited to such factors as: • the extent to which the fair value has been less than amortized cost or cost; • whether the issuer is current on all payments and all contractual payments have been made as agreed; • the remaining payment terms and the financial condition and near-term prospects of the issuer; • the lack of ability to refinance due to liquidity problems in the credit market; • the fair value of any underlying collateral; • the existence of any credit protection available; • our intent to sell and whether it is more likely than not we would be required to sell prior to recovery for debt securities; • consideration of rating agency actions; and • changes in estimated cash flows of mortgage and asset backed securities. We determine whether an allowance for credit loss should be established for debt securities by assessing all facts and circumstances surrounding each security. Where the decline in fair value of debt securities is attributable to changes in market interest rates or to factors such as market volatility, liquidity and spread widening, and we anticipate recovery of all contractual or expected cash flows, we do not consider these investments to have credit loss because we do not intend to sell these investments and it is not more likely than not we will be required to sell these investments before a recovery of amortized cost, which may be maturity. If we intend to sell a debt security or if it is more likely than not that we will be required to sell a debt security before recovery of its amortized cost basis, credit loss has occurred and the difference between amortized cost and fair value will be recognized as a loss in operations. If we do not intend to sell and it is not more likely than not we will be required to sell the debt security but also do not expect to recover the entire amortized cost basis of the security, a credit loss would be recognized in operations for the amount of the expected credit loss. We determine the amount of expected credit loss by calculating the present value of the cash flows expected to be collected discounted at each security's acquisition yield based on our consideration of whether the security was of high credit quality at the time of acquisition. The difference between the present value of expected future cash flows and the amortized cost basis of the security is the amount of credit loss recognized in operations. The recognized credit loss is limited to the total unrealized loss on the security (i.e., the fair value floor). The determination of the credit loss component of a mortgage backed security is based on a number of factors. The primary consideration in this evaluation process is the issuer's ability to meet current and future interest and principal payments as contractually stated at time of purchase. Our review of these securities includes an analysis of the cash flow modeling under various default scenarios considering independent third party benchmarks, the seniority of the specific tranche within the structure of the security, the composition of the collateral and the actual default, loss severity and prepayment experience exhibited. With the input of third party assumptions for default projections, loss severity and prepayment expectations, we evaluate the cash flow projections to determine whether the security is performing in accordance with its contractual obligation. We utilize models from a leading structured product software specialist serving institutional investors. These models incorporate each security's seniority and cash flow structure. In circumstances where the analysis implies a potential for principal loss at some point in the future, we use the "best estimate" cash flow projection discounted at the security's effective yield at acquisition to determine the amount of our potential credit loss associated with this security. The discounted expected future cash flows equates to our expected recovery value. Any shortfall of the expected recovery when compared to the amortized cost of the security will be recorded as credit loss. The determination of the credit loss component of a corporate bond is based on the underlying financial performance of the issuer and their ability to meet their contractual obligations. Considerations in our evaluation include, but are not limited to, credit rating changes, financial statement and ratio analysis, changes in management, significant changes in credit spreads, breaches of financial covenants and a review of the economic outlook for the industry and markets in which they trade. In circumstances where an issuer appears unlikely to meet its future obligation, an estimate of credit loss is determined. Credit loss is calculated using default probabilities as derived from the credit default swaps markets in conjunction with recovery rates derived from independent third party analysis or a best estimate of credit loss. This credit loss rate is then incorporated into a present value calculation based on an expected principal loss in the future discounted at the yield at the date of purchase and compared to amortized cost to determine the amount of credit loss associated with the security. We do not measure a credit loss allowance on accrued interest receivable as we write off any accrued interest receivable balance to net investment income in a timely manner when we have concerns regarding collectability. Amounts on available for sale fixed maturities that are deemed to be uncollectible are written off and removed from the allowance for credit loss. A write-off may also occur if we intend to sell a security or when it is more likely than not we will be required to sell the security before the recovery of its amortized cost. The following table provides a rollforward of the allowance for credit loss: Three Months Ended June 30, 2020 Corporate Securities Commercial Mortgage Backed Securities Residential Mortgage Backed Securities Other Asset Backed Securities Total (Dollars in thousands) Beginning balance (1) $ 28,332 $ — $ — $ — $ 28,332 Additions for credit losses not previously recorded 18,417 5,847 777 — 25,041 Reduction for securities with credit losses due to intent to sell — (3,187 ) — — (3,187 ) Ending balance $ 46,749 $ 2,660 $ 777 $ — $ 50,186 Six Months Ended June 30, 2020 Corporate Securities Commercial Mortgage Backed Securities Residential Mortgage Backed Securities Other Asset Backed Securities Total (Dollars in thousands) Beginning balance (1) $ — $ — $ — $ — $ — Additions for credit losses not previously recorded 46,749 8,338 777 548 56,412 Reduction for securities with credit losses due to intent to sell — (5,678 ) — (548 ) (6,226 ) Ending balance $ 46,749 $ 2,660 $ 777 $ — $ 50,186 (1) The allowance for credit loss associated with available for sale fixed maturity securities was applied prospectively upon adoption of authoritative guidance effective January 1, 2020. See Note 1 for further details. Prior to the implementation of authoritative guidance in 2020, we evaluated our investments for other than temporary impairments using a method consistent with our current credit loss evaluation process discussed above. In addition, we also considered length of time the fair value had been less than amortized cost or cost in our evaluation. If we did not intend to sell and it was not more likely than not we would be required to sell the debt security but also did not expect to recover the entire amortized cost basis of the security, an impairment loss was recognized in operations in the amount of the expected credit loss. The difference between the present value of expected future cash flows and the amortized cost basis of the security was the amount of credit loss recognized in operations. The remaining amount of the other than temporary impairment was recognized in other comprehensive income. In addition, for debt securities which we did not intend to sell and it was not more likely than not we would be required to sell, but our intent changed due to changes or events that could not have been reasonably anticipated, an other than temporary impairment charge was recognized. Once an impairment charge had been recorded, we then continued to review the other than temporarily impaired securities for appropriate valuation on an ongoing basis. Unrealized losses may have been recognized in future periods through a charge to earnings should we have later concluded that the decline in fair value below amortized cost was other than temporary pursuant to our accounting policy. The cumulative portion of other than temporary impairments determined to be credit losses which have been recognized in operations for debt securities are summarized as follows: Three Months Ended Six Months Ended 2019 2019 (Dollars in thousands) Cumulative credit loss at beginning of period $ (175,398 ) $ (175,398 ) Additions for the amount related to credit losses for which OTTI has not previously been recognized (998 ) (998 ) Additional credit losses on securities for which OTTI has previously been recognized (215 ) (215 ) Accumulated losses on securities that were disposed of during the period 10,960 10,960 Cumulative credit loss at end of period $ (165,651 ) $ (165,651 ) The following table summarizes the cumulative noncredit portion of OTTI and the change in fair value since recognition of OTTI, both of which were recognized in other comprehensive income, by major type of security, for securities that are part of our investment portfolio at December 31, 2019 : Amortized Cost OTTI Recognized in Other Comprehensive Income (Loss) Change in Fair Value Since OTTI was Recognized Fair Value (Dollars in thousands) December 31, 2019 Fixed maturity securities, available for sale: Corporate securities $ 50,755 $ (3,700 ) $ 9,268 $ 56,323 Residential mortgage backed securities 183,948 (145,446 ) 172,577 211,079 Commercial mortgage backed securities 12,776 — (401 ) 12,375 Other asset backed securities 977 — 261 1,238 $ 248,456 $ (149,146 ) $ 181,705 $ 281,015 |
Mortgage Loans on Real Estate
Mortgage Loans on Real Estate | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Mortgage Loans on Real Estate | Mortgage Loans on Real Estate Our financing receivables consist of the following two portfolio segments: commercial mortgage loans and residential mortgage loans. Our commercial and residential mortgage loan portfolios are summarized in the following table. There were commitments outstanding of $65.1 million at June 30, 2020 . June 30, 2020 December 31, 2019 (Dollars in thousands) Commercial mortgage loans: Principal outstanding $ 3,828,972 $ 3,458,914 Deferred fees and costs, net (1,858 ) (942 ) Amortized cost 3,827,114 3,457,972 Valuation allowance (18,439 ) (9,179 ) Commercial mortgage loans, carrying value 3,808,675 3,448,793 Residential mortgage loans: Principal outstanding 153,913 — Deferred fees and costs, net 373 — Unamortized discount (3,078 ) — Amortized cost 151,208 — Valuation allowance (1,650 ) — Residential mortgage loans, carrying value 149,558 — Mortgage loans, carrying value $ 3,958,233 $ 3,448,793 Our commercial mortgage loan portfolio consists of loans collateralized by the related properties and diversified as to property type, location and loan size. Our lending policies establish limits on the amount that can be loaned to one borrower and other criteria to attempt to reduce the risk of default. The commercial mortgage loan portfolio is summarized by geographic region and property type as follows: June 30, 2020 December 31, 2019 Principal Percent Principal Percent (Dollars in thousands) Geographic distribution East $ 714,198 18.7 % $ 645,991 18.7 % Middle Atlantic 287,864 7.5 % 284,597 8.2 % Mountain 444,495 11.6 % 389,892 11.3 % New England 25,066 0.7 % 9,152 0.3 % Pacific 782,240 20.4 % 655,518 19.0 % South Atlantic 820,260 21.4 % 751,199 21.7 % West North Central 308,874 8.1 % 302,534 8.7 % West South Central 445,975 11.6 % 420,031 12.1 % $ 3,828,972 100.0 % $ 3,458,914 100.0 % Property type distribution Office $ 259,888 6.8 % $ 250,287 7.3 % Medical Office 27,372 0.7 % 29,990 0.9 % Retail 1,225,212 32.0 % 1,225,670 35.4 % Industrial/Warehouse 974,579 25.5 % 896,558 25.9 % Apartment 971,536 25.4 % 858,679 24.8 % Agricultural 177,333 4.6 % 51,303 1.5 % Mixed use/Other 193,052 5.0 % 146,427 4.2 % $ 3,828,972 100.0 % $ 3,458,914 100.0 % Our residential mortgage loan portfolio consists of loans with an outstanding principal balance of $153.9 million that were purchased on June 25, 2020. These loans are collateralized by the related properties and diversified as to location within the United States. Mortgage loans on real estate are generally reported at cost adjusted for amortization of premiums and accrual of discounts, computed using the interest method and net of valuation allowances. Interest income is accrued on the principal amount of the loan based on the loan's contractual interest rate. Interest income is included in Net investment income on our consolidated statements of operations. Accrued interest receivable, which was $15.5 million as of June 30, 2020 , is included in Accrued investment income on our consolidated balance sheets. Loan Valuation Allowance We establish a valuation allowance to provide for the risk of credit losses inherent in our mortgage loan portfolios. The valuation allowance is maintained at a level believed adequate by management to absorb estimated expected credit losses. The valuation allowance is based on amortized cost, which excludes accrued interest receivable. We do not measure a credit loss allowance on accrued interest receivable as we write off any uncollectible accrued interest receivable balances to net investment income in a timely manner. We did not charge off any uncollectible accrued interest receivable on our commercial or residential mortgage loan portfolio for the three and six month periods ended June 30, 2020 . The valuation allowance for commercial mortgage loans is calculated by pooling our loans based on risk rating and property collateral type and applying an estimated loss ratio against each risk pool. Risk ratings are based on an analysis of the current state of the borrower's credit quality, which considers factors such as loan-to-value ("LTV") and debt service coverage ("DSC") ratios, loan performance and economic outlook, among others. The loss ratios are generally based upon historical loss experience for each risk pool and are adjusted for current and forecasted economic factors management believes to be relevant and supportable. Economic factors are forecasted for two years with immediate reversion to historical experience. A commercial loan is individually evaluated for impairment if it does not continue to share similar risk characteristics of a pool. A commercial mortgage loan that is individually evaluated is impaired when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. If we determine that the value of any specific mortgage loan is impaired, the carrying amount of the mortgage loan will be reduced to its fair value, based upon the present value of expected future cash flows from the loan discounted at the loan's effective interest rate, or the fair value of the underlying collateral less estimated costs to sell. The valuation allowance for residential mortgage loans is estimated by deriving probability of default and recovery rate assumptions based on the characteristics of the loans in our portfolio, historical economic data and loss information, and current and forecasted economics conditions. Key loan characteristics impacting the estimate include delinquency status, time to maturity, original credit scores and loan-to-value ratios. The following table represents a rollforward of the valuation of our mortgage loan portfolios: Three Months Ended June 30, 2020 Commercial Residential Total (Dollars in thousands) Beginning allowance balance (1) $ (19,776 ) $ — $ (19,776 ) Charge-offs 1,485 — 1,485 Recoveries 712 — 712 Change in provision for credit losses (860 ) (1,650 ) (2,510 ) Ending allowance balance $ (18,439 ) $ (1,650 ) $ (20,089 ) Six Months Ended June 30, 2020 Commercial Residential Total (Dollars in thousands) Beginning allowance balance (1) $ (17,779 ) $ — $ (17,779 ) Charge-offs 1,485 — 1,485 Recoveries 712 — 712 Change in provision for credit losses (2,857 ) (1,650 ) (4,507 ) Ending allowance balance $ (18,439 ) $ (1,650 ) $ (20,089 ) (1) Upon adoption of authoritative guidance effective January 1, 2020, we updated our accounting policies and methodology for calculating the general loan loss allowance, resulting in an adjustment to our mortgage loan valuation allowance. See Note 1 for further details. Charge-offs include allowances that have been established on loans that were satisfied either by taking ownership of the collateral or by some other means such as discounted pay-off or loan sale. When ownership of the property is taken it is recorded at the lower of the loan's carrying value or the property's fair value (based on appraised values) less estimated costs to sell. The real estate owned is recorded as a component of Other investments and the loan is recorded as fully paid, with any allowance for credit loss that has been established charged off. Fair value of the real estate is determined by third party appraisal. Recoveries are situations where we have received a payment from the borrower in an amount greater than the carrying value of the loan (principal outstanding less specific allowance). We did not own any real estate during the three and six months ended June 30, 2020 and 2019 . Credit Quality Indicators We evaluate the credit quality of our commercial mortgage loans by analyzing LTV and DSC ratios and loan performance. We evaluate the credit quality of our residential mortgage loans by analyzing loan performance. LTV and DSC ratios for our commercial mortgage loans are originally calculated at the time of loan origination and are updated annually for each loan using information such as rent rolls, assessment of lease maturity dates and property operating statements, which are reviewed in the context of current leasing and in place rents compared to market leasing and market rents. A DSC ratio of less than 1.0 indicates that a property's operations do not generate sufficient income to cover debt payments. An LTV ratio in excess of 100% indicates the unpaid loan amount exceeds the value of the underlying collateral. All of our commercial mortgage loans that have a debt service coverage ratio of less than 1.0 are performing under the original contractual loan terms at June 30, 2020 . A summary of our commercial mortgage loan portfolio by LTV and DSC ratios based on the most recent information collected follows (by year of origination): 2020 2019 2018 2017 2016 Prior Total As of June 30, 2020: Amortized Cost Average LTV Amortized Average Amortized Average Amortized Average Amortized Average Amortized Average Amortized Average Debt Service Coverage Ratio: (Dollars in thousands) Greater than or equal to 1.5 $ 316,727 64 % $ 455,910 67 % $ 405,363 61 % $ 310,373 58 % $ 378,311 55 % $ 816,947 46 % $ 2,683,631 56 % Greater than or equal to 1.2 and less than 1.5 187,242 63 % 256,913 69 % 141,693 68 % 151,241 65 % 54,324 62 % 159,528 54 % 950,941 64 % Greater than or equal to 1.0 and less than 1.2 5,966 68 % 61,471 58 % 8,931 75 % 15,548 64 % — — % 22,868 63 % 114,784 62 % Less than 1.0 8,784 60 % 25,220 44 % 18,550 65 % 2,996 62 % — — % 22,208 51 % 77,758 54 % Total $ 518,719 64 % $ 799,514 66 % $ 574,537 63 % $ 480,158 60 % $ 432,635 56 % $ 1,021,551 48 % $ 3,827,114 58 % We closely monitor loan performance for both our commercial and residential mortgage loan portfolios. Aging of financing receivables is summarized in the following table (by year of origination): 2020 2019 2018 2017 2016 Prior Total As of June 30, 2020: (Dollars in thousands) Commercial mortgage loans Current $ 518,719 $ 799,514 $ 574,537 $ 480,158 $ 432,635 $ 1,021,551 $ 3,827,114 30 - 59 days past due — — — — — — — 60 - 89 days past due — — — — — — — Over 90 days past due — — — — — — — Total commercial mortgage loans $ 518,719 $ 799,514 $ 574,537 $ 480,158 $ 432,635 $ 1,021,551 $ 3,827,114 Residential mortgage loans Current 138,749 $ 12,459 $ — $ — $ — $ — $ 151,208 30 - 59 days past due — — — — — — — 60 - 89 days past due — — — — — — — Over 90 days past due — — — — — — — Total residential mortgage loans $ 138,749 $ 12,459 $ — $ — $ — $ — $ 151,208 As of December 31, 2019 , none of our mortgage loans were 30 days or more past due. Commercial and residential mortgage loans are considered delinquent when they become 60 days or more past due. When loans become more than 90 days past due they are considered nonperforming and we place them on non-accrual status and discontinue recognizing interest income. If payments are received on a delinquent loan, interest income is recognized to the extent it would have been recognized if normal principal and interest would have been received timely. If payments are received to bring a delinquent loan back to current, we will resume accruing interest income on that loan. There were no loans in non-accrual status at June 30, 2020 and December 31, 2019 . We recognized no interest income on loans in non-accrual status during the three and six months ended June 30, 2020 and 2019 . Collateral dependent loans consist of loans for which we will depend on the value of the collateral real estate to satisfy the outstanding principal of the loan. There were no collateral dependent commercial or residential loans as of June 30, 2020 or December 31, 2019 . Troubled Debt Restructuring A Troubled Debt Restructuring ("TDR") is a situation where we have granted a concession to a borrower for economic or legal reasons related to the borrower's financial difficulties that we would not otherwise consider. A mortgage loan that has been granted new terms, including workout terms as described previously, would be considered a TDR if it meets conditions that would indicate a borrower is experiencing financial difficulty and the new terms constitute a concession on our part. We analyze all loans where we have agreed to workout terms and all loans that we have refinanced to determine if they meet the definition of a TDR. We consider the following factors in determining whether or not a borrower is experiencing financial difficulty: • borrower is in default, • borrower has declared bankruptcy, • there is growing concern about the borrower's ability to continue as a going concern, • borrower has insufficient cash flows to service debt, • borrower's inability to obtain funds from other sources, and • there is a breach of financial covenants by the borrower. If the borrower is determined to be in financial difficulty, we consider the following conditions to determine if the borrower is granted a concession: • assets used to satisfy debt are less than our recorded investment, • interest rate is modified, • maturity date extension at an interest rate less than market rate, • capitalization of interest, • delaying principal and/or interest for a period of three months or more, and • partial forgiveness of the balance or charge-off. Mortgage loan workouts, refinances or restructures that are classified as TDRs are individually evaluated and measured for impairment. There were no mortgage loans on commercial real estate that we determined to be a TDR at June 30, 2020 and December 31, 2019 |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments None of our derivatives qualify for hedge accounting, thus, any change in the fair value of the derivatives is recognized immediately in the consolidated statements of operations. The fair value of our derivative instruments, including derivative instruments embedded in fixed index annuity contracts, presented in the consolidated balance sheets are as follows: June 30, 2020 December 31, 2019 (Dollars in thousands) Assets Derivative instruments Call options $ 672,958 $ 1,355,989 Other assets Interest rate caps — 6 $ 672,958 $ 1,355,995 Liabilities Policy benefit reserves - annuity products Fixed index annuities - embedded derivatives, net $ 9,418,485 $ 9,624,395 The changes in fair value of derivatives included in the unaudited consolidated statements of operations are as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 (Dollars in thousands) Change in fair value of derivatives: Call options $ 327,662 $ 76,942 $ (614,274 ) $ 462,108 Interest rate swap — (688 ) — (1,056 ) Interest rate caps — (209 ) 62 (538 ) $ 327,662 $ 76,045 $ (614,212 ) $ 460,514 Change in fair value of embedded derivatives: Fixed index annuities - embedded derivatives $ 913,984 $ 204,590 $ (371,087 ) $ 857,232 Other changes in difference between policy benefit reserves computed using derivative accounting vs. long-duration contracts accounting 212,951 122,972 247,961 236,653 $ 1,126,935 $ 327,562 $ (123,126 ) $ 1,093,885 The amounts presented as "Other changes in difference between policy benefit reserves computed using derivative accounting vs. long-duration contracts accounting" represents the total change in the difference between policy benefit reserves for fixed index annuities computed under the derivative accounting standard and the long-duration contracts accounting standard at each balance sheet date, less the change in fair value of our fixed index annuities embedded derivatives that is presented as Level 3 liabilities in Note 2. We have fixed index annuity products that guarantee the return of principal to the policyholder and credit interest based on a percentage of the gain in a specified market index. When fixed index annuity deposits are received, a portion of the deposit is used to purchase derivatives consisting of call options on the applicable market indices to fund the index credits due to fixed index annuity policyholders. Substantially all such call options are one year options purchased to match the funding requirements of the underlying policies. The call options are marked to fair value with the change in fair value included as a component of revenues. The change in fair value of derivatives includes the gains or losses recognized at the expiration of the option term and the changes in fair value for open positions. On the respective anniversary dates of the index policies, the index used to compute the index credit is reset and we purchase new call options to fund the next index credit. We manage the cost of these purchases through the terms of our fixed index annuities, which permit us to change caps, participation rates, and/or asset fees, subject to guaranteed minimums on each policy's anniversary date. By adjusting caps, participation rates, or asset fees, we can generally manage option costs except in cases where the contractual features would prevent further modifications. Our strategy attempts to mitigate any potential risk of loss due to the nonperformance of the counterparties to these call options through a regular monitoring process which evaluates the program's effectiveness. We do not purchase call options that would require payment or collateral to another institution and our call options do not contain counterparty credit-risk-related contingent features. We are exposed to risk of loss in the event of nonperformance by the counterparties and, accordingly, we purchase our option contracts from multiple counterparties and evaluate the creditworthiness of all counterparties prior to purchase of the contracts. All non-exchange traded options have been purchased from nationally recognized financial institutions with a Standard and Poor's credit rating of A- or higher at the time of purchase and the maximum credit exposure to any single counterparty is subject to concentration limits. We also have credit support agreements that allow us to request the counterparty to provide collateral to us when the fair value of our exposure to the counterparty exceeds specified amounts. The notional amount and fair value of our call options by counterparty and each counterparty's current credit rating are as follows: June 30, 2020 December 31, 2019 Counterparty Credit Rating (S&P) Credit Rating (Moody's) Notional Amount Fair Value Notional Amount Fair Value (Dollars in thousands) Bank of America A+ Aa2 $ 2,038,746 $ 36,929 $ 2,680,543 $ 80,692 Barclays A A1 6,458,090 191,581 5,753,868 217,536 Canadian Imperial Bank of Commerce A+ Aa2 4,080,916 110,616 4,110,525 154,917 Citibank, N.A. A+ Aa3 3,917,488 41,372 4,075,544 109,046 Credit Suisse A+ A1 4,442,148 21,101 4,526,414 116,659 J.P. Morgan A+ Aa2 4,962,629 20,842 4,703,234 151,651 Morgan Stanley A+ A1 2,535,021 25,478 1,886,995 41,253 Royal Bank of Canada AA- A2 1,776,753 35,503 2,565,202 101,511 Societe Generale A A1 1,731,241 21,407 3,280,286 139,101 SunTrust A A2 2,175,542 53,077 2,051,229 74,910 Wells Fargo A+ Aa2 5,106,215 113,688 4,221,408 163,520 Exchange traded 166,248 1,364 191,948 5,193 $ 39,391,037 $ 672,958 $ 40,047,196 $ 1,355,989 As of June 30, 2020 and December 31, 2019 , we held $621.2 million and $1.3 billion , respectively, of cash and cash equivalents and other investments from counterparties for derivative collateral, which is included in Other liabilities on our consolidated balance sheets. This derivative collateral limits the maximum amount of economic loss due to credit risk that we would incur if parties to the call options failed completely to perform according to the terms of the contracts to $55.8 million and $25.2 million at June 30, 2020 and December 31, 2019 , respectively. The future index credits on our fixed index annuities are treated as a "series of embedded derivatives" over the expected life of the applicable contract. We do not purchase call options to fund the index liabilities which may arise after the next policy anniversary date. We must value both the call options and the related forward embedded options in the policies at fair value. We entered into an interest rate swap and interest rate caps to manage interest rate risk associated with the floating rate component on certain of our subordinated debentures. See Note 10 in our Annual Report on Form 10-K for the year ended December 31, 2019 for more information on our subordinated debentures. As of June 30, 2020 , all of our floating rate subordinated debentures have been redeemed and the interest rate swap and interest rate caps have been terminated. The terms of the interest rate swap provided that we paid a fixed rate of interest and received a floating rate of interest. The terms of the interest rate caps limited the three month LIBOR to 2.50% |
Notes Payable and Amounts Due U
Notes Payable and Amounts Due Under Repurchase Agreements | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Notes Payable and Amounts Due Under Repurchase Agreements | Notes Payable and Amounts Due Under Repurchase Agreements Notes payable includes the following: June 30, 2020 December 31, 2019 (Dollars in thousands) Senior notes due 2027 Principal $ 500,000 $ 500,000 Unamortized debt issue costs (4,350 ) (4,607 ) Unamortized discount (262 ) (277 ) $ 495,388 $ 495,116 On June 16, 2017, we issued $500 million aggregate principal amount of senior unsecured notes due 2027 which bear interest at 5.0% per year and will mature on June 15, 2027 (the "2027 Notes"). The 2027 Notes were issued at a $0.3 million discount, which is being amortized over the term of the 2027 Notes using the effective interest method. Contractual interest is payable semi-annually in arrears each June 15th and December 15th. The initial transaction fees and costs totaling $5.8 million were capitalized as deferred financing costs and are being amortized over the term of the 2027 Notes using the effective interest method. As part of our investment strategy, we enter into securities repurchase agreements (short-term collateralized borrowings). When we do borrow cash on these repurchase agreements, we pledge collateral in the form of debt securities with fair values approximately equal to the amount due and we use the cash to purchase debt securities ahead of the time we collect the cash from selling annuity policies to avoid a lag between the investment of funds and the obligation to credit interest to policyholders. We earn investment income on the securities purchased with these borrowings at a rate in excess of the cost of these borrowings. Such borrowings averaged $32.8 million and $28.7 million during the three and six months ended June 30, 2020 , respectively, compared to $20.4 million and $54.6 million for the same periods in 2019 . The maximum amount borrowed was $186.4 million and $243.6 million during the six months ended June 30, 2020 and 2019 , respectively. The weighted average interest rate on amounts due under repurchase agreements was 1.89% and 1.73% for the three and six months ended June 30, 2020 , respectively, compared to 4.62% and 3.04% for the same periods in 2019 . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are occasionally involved in litigation, both as a defendant and as a plaintiff. In addition, state and federal regulatory bodies, such as state insurance departments, the Securities and Exchange Commission ("SEC") and the Department of Labor, regularly make inquiries and conduct examinations or investigations concerning our compliance with, among other things, insurance laws, securities laws and the Employee Retirement Income Security Act of 1974, as amended. In accordance with applicable accounting guidelines, we establish an accrued liability for litigation and regulatory matters when those matters present loss contingencies that are both probable and estimable. As a litigation or regulatory matter is developing we, in conjunction with outside counsel, evaluate on an ongoing basis whether the matter presents a loss contingency that meets conditions indicating the need for accrual and/or disclosure, and if not, the matter will continue to be monitored for further developments. If and when the loss contingency related to litigation or regulatory matters is deemed to be both probable and estimable, we will establish an accrued liability with respect to that matter and will continue to monitor the matter for further developments that may affect the amount of the accrued liability. There can be no assurance that any pending or future litigation will not have a material adverse effect on our business, financial condition, or results of operations. In addition to our commitments to fund mortgage loans, we have unfunded commitments at June 30, 2020 to limited partnerships of $41.2 million |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share and Stockholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Common Share and Stockholders' Equity | Earnings (Loss) Per Common Share and Stockholders' Equity Earnings (Loss) Per Common Share The following table sets forth the computation of earnings (loss) per common share and earnings (loss) per common share - assuming dilution: Three Months Ended Six Months Ended 2020 2019 2020 2019 (Dollars in thousands, except per share data) Numerator: Net income (loss) available to common stockholders - numerator for earnings (loss) per common share $ (253,379 ) $ 18,590 $ (17,043 ) $ (11,420 ) Denominator: Weighted average common shares outstanding 91,803,312 91,103,151 91,723,814 90,993,810 Effect of dilutive securities: Stock options and deferred compensation agreements 63,265 333,780 100,277 394,390 Restricted stock and restricted stock units 160,276 348,292 199,875 376,898 Denominator for earnings (loss) per common share - assuming dilution 92,026,853 91,785,223 92,023,966 91,765,098 Earnings (loss) per common share $ (2.76 ) $ 0.20 $ (0.19 ) $ (0.13 ) Earnings (loss) per common share - assuming dilution $ (2.76 ) $ 0.20 $ (0.19 ) $ (0.13 ) During the three months ended June 30, 2020 , there were 519,285 options to purchase shares of our common stock outstanding, with an exercise price of $24.79 - $26.70 , excluded from the computation of diluted loss per common share. During the six months ended June 30, 2020 , there were 50,000 options to purchase shares of our common stock outstanding, with an exercise price of $26.70 , excluded from the computation of diluted loss per common share. There were no options to purchase shares of our common stock outstanding excluded from the computation of diluted earnings (loss) per common share during the three and six months ended June 30, 2019 , as the exercise price of all options outstanding was less than the average market price of our common shares for those periods. Stockholders' Equity On June 10, 2020, we issued 12,000 shares of 6.625% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series B ("Series B") with a $1.00 par value per share and a liquidation preference of $25,000 per share, for aggregate net proceeds of $290.3 million . On November 21, 2019 we issued 16,000 shares of 5.95% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series A ("Series A") with a $1.00 par value per share and a liquidation preference of $25,000 per share, for aggregate net proceeds of $388.9 million . We used a portion of the proceeds to redeem all of our floating rate subordinated debentures. Dividends on the Series A and Series B preferred stock are payable on a non-cumulative basis only when, as and if declared, quarterly in arrears on the first day of March, June, September and December of each year, commencing on March 1, 2020 for Series A and on December 1, 2020 for Series B. On March 1 and June 1, 2020, we paid dividends totaling $6.6 million and $6.0 million , respectively, on the Series A preferred stock. The Series A and Series B preferred stock rank senior to our common stock with respect to dividends, to the extent declared, and in liquidation, to the extent of the liquidation preference. The Series A and Series B preferred stock are not subject to any mandatory redemption, sinking fund, retirement fund, purchase fund or similar provisions. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Adopted and New Accounting Pronouncements, Policy | Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”) that significantly changed the impairment model for most financial assets that are measured at amortized cost and certain other instruments from an incurred loss model to an expected loss model that requires these assets be presented at the net amount expected to be collected. In addition, credit losses on available for sale debt securities will be recorded through an allowance account subsequent to the adoption of this ASU. We adopted this ASU on January 1, 2020. The adoption of this ASU resulted in an increase in our mortgage loan allowance for credit losses of $8.6 million and the recognition of an allowance for credit losses on our reinsurance recoverable/coinsurance deposits balances of $3.2 million on the date of adoption. Retained earnings was decreased by $9.3 million , which reflects the net of tax impact of the increase in the mortgage loan allowance for credit losses and the recognition of an allowance for credit losses on our reinsurance recoverable/coinsurance deposits balances on the date of adoption. New Accounting Pronouncements In August 2018, the FASB issued an ASU that revises certain aspects of the measurement models and disclosure requirements for long duration insurance and investment contracts. The FASB’s objective in issuing this ASU is to improve, simplify, and enhance the accounting for long-duration contracts. The revisions include updating cash flow assumptions in the calculation of the liability for traditional life products, introducing the term ‘market risk benefit’ ("MRB") and requiring all contract features meeting the definition of an MRB to be measured at fair value, simplifying the method used to amortize deferred policy acquisition costs and deferred sales inducements to a constant basis over the expected term of the related contracts rather than based on actual and estimated gross profits and enhancing disclosure requirements. While this ASU is effective for us on January 1, 2022, the transition date (the remeasurement date) is January 1, 2020. Early adoption of this ASU is permitted. We are in the process of evaluating the impact this guidance will have on our consolidated financial statements. |
Fair Values of Financial Instruments, Policy | Fair value is the price that would be received to sell an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. The objective of a fair value measurement is to determine that price for each financial instrument at each measurement date. We meet this objective using various methods of valuation that include market, income and cost approaches. We categorize our financial instruments into three levels of fair value hierarchy based on the priority of inputs used in determining fair value. The hierarchy defines the highest priority inputs (Level 1) as quoted prices in active markets for identical assets or liabilities. The lowest priority inputs (Level 3) are our own assumptions about what a market participant would use in determining fair value such as estimated future cash flows. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, a financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. We categorize financial assets and liabilities recorded at fair value in the consolidated balance sheets as follows: Level 1— Quoted prices are available in active markets for identical financial instruments as of the reporting date. We do not adjust the quoted price for these financial instruments, even in situations where we hold a large position and a sale could reasonably impact the quoted price. Level 2— Quoted prices in active markets for similar financial instruments, quoted prices for identical or similar financial instruments in markets that are not active; and models and other valuation methodologies using inputs other than quoted prices that are observable. Level 3— Models and other valuation methodologies using significant inputs that are unobservable for financial instruments and include situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. Financial instruments that are included in Level 3 are securities for which no market activity or data exists and for which we used discounted expected future cash flows with our own assumptions about what a market participant would use in determining fair value. |
Investments, Policy | We review and analyze all investments on an ongoing basis for changes in market interest rates and credit deterioration. This review process includes analyzing our ability to recover the amortized cost basis of each investment that has a fair value that is materially lower than its amortized cost and requires a high degree of management judgment and involves uncertainty. The evaluation of securities for credit loss is a quantitative and qualitative process, which is subject to risks and uncertainties. We have a policy and process to identify securities that could potentially have credit loss. This process involves monitoring market events and other items that could impact issuers. The evaluation includes but is not limited to such factors as: • the extent to which the fair value has been less than amortized cost or cost; • whether the issuer is current on all payments and all contractual payments have been made as agreed; • the remaining payment terms and the financial condition and near-term prospects of the issuer; • the lack of ability to refinance due to liquidity problems in the credit market; • the fair value of any underlying collateral; • the existence of any credit protection available; • our intent to sell and whether it is more likely than not we would be required to sell prior to recovery for debt securities; • consideration of rating agency actions; and • changes in estimated cash flows of mortgage and asset backed securities. We determine whether an allowance for credit loss should be established for debt securities by assessing all facts and circumstances surrounding each security. Where the decline in fair value of debt securities is attributable to changes in market interest rates or to factors such as market volatility, liquidity and spread widening, and we anticipate recovery of all contractual or expected cash flows, we do not consider these investments to have credit loss because we do not intend to sell these investments and it is not more likely than not we will be required to sell these investments before a recovery of amortized cost, which may be maturity. If we intend to sell a debt security or if it is more likely than not that we will be required to sell a debt security before recovery of its amortized cost basis, credit loss has occurred and the difference between amortized cost and fair value will be recognized as a loss in operations. If we do not intend to sell and it is not more likely than not we will be required to sell the debt security but also do not expect to recover the entire amortized cost basis of the security, a credit loss would be recognized in operations for the amount of the expected credit loss. We determine the amount of expected credit loss by calculating the present value of the cash flows expected to be collected discounted at each security's acquisition yield based on our consideration of whether the security was of high credit quality at the time of acquisition. The difference between the present value of expected future cash flows and the amortized cost basis of the security is the amount of credit loss recognized in operations. The recognized credit loss is limited to the total unrealized loss on the security (i.e., the fair value floor). The determination of the credit loss component of a mortgage backed security is based on a number of factors. The primary consideration in this evaluation process is the issuer's ability to meet current and future interest and principal payments as contractually stated at time of purchase. Our review of these securities includes an analysis of the cash flow modeling under various default scenarios considering independent third party benchmarks, the seniority of the specific tranche within the structure of the security, the composition of the collateral and the actual default, loss severity and prepayment experience exhibited. With the input of third party assumptions for default projections, loss severity and prepayment expectations, we evaluate the cash flow projections to determine whether the security is performing in accordance with its contractual obligation. We utilize models from a leading structured product software specialist serving institutional investors. These models incorporate each security's seniority and cash flow structure. In circumstances where the analysis implies a potential for principal loss at some point in the future, we use the "best estimate" cash flow projection discounted at the security's effective yield at acquisition to determine the amount of our potential credit loss associated with this security. The discounted expected future cash flows equates to our expected recovery value. Any shortfall of the expected recovery when compared to the amortized cost of the security will be recorded as credit loss. The determination of the credit loss component of a corporate bond is based on the underlying financial performance of the issuer and their ability to meet their contractual obligations. Considerations in our evaluation include, but are not limited to, credit rating changes, financial statement and ratio analysis, changes in management, significant changes in credit spreads, breaches of financial covenants and a review of the economic outlook for the industry and markets in which they trade. In circumstances where an issuer appears unlikely to meet its future obligation, an estimate of credit loss is determined. Credit loss is calculated using default probabilities as derived from the credit default swaps markets in conjunction with recovery rates derived from independent third party analysis or a best estimate of credit loss. This credit loss rate is then incorporated into a present value calculation based on an expected principal loss in the future discounted at the yield at the date of purchase and compared to amortized cost to determine the amount of credit loss associated with the security. We do not measure a credit loss allowance on accrued interest receivable as we write off any accrued interest receivable balance to net investment income in a timely manner when we have concerns regarding collectability. Amounts on available for sale fixed maturities that are deemed to be uncollectible are written off and removed from the allowance for credit loss. A write-off may also occur if we intend to sell a security or when it is more likely than not we will be required to sell the security before the recovery of its amortized cost. |
Mortgage Loans on Real Estate, Allowance for Loan Losses, Policy | Loan Valuation Allowance We establish a valuation allowance to provide for the risk of credit losses inherent in our mortgage loan portfolios. The valuation allowance is maintained at a level believed adequate by management to absorb estimated expected credit losses. The valuation allowance is based on amortized cost, which excludes accrued interest receivable. We do not measure a credit loss allowance on accrued interest receivable as we write off any uncollectible accrued interest receivable balances to net investment income in a timely manner. We did not charge off any uncollectible accrued interest receivable on our commercial or residential mortgage loan portfolio for the three and six month periods ended June 30, 2020 . The valuation allowance for commercial mortgage loans is calculated by pooling our loans based on risk rating and property collateral type and applying an estimated loss ratio against each risk pool. Risk ratings are based on an analysis of the current state of the borrower's credit quality, which considers factors such as loan-to-value ("LTV") and debt service coverage ("DSC") ratios, loan performance and economic outlook, among others. The loss ratios are generally based upon historical loss experience for each risk pool and are adjusted for current and forecasted economic factors management believes to be relevant and supportable. Economic factors are forecasted for two years with immediate reversion to historical experience. A commercial loan is individually evaluated for impairment if it does not continue to share similar risk characteristics of a pool. A commercial mortgage loan that is individually evaluated is impaired when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. If we determine that the value of any specific mortgage loan is impaired, the carrying amount of the mortgage loan will be reduced to its fair value, based upon the present value of expected future cash flows from the loan discounted at the loan's effective interest rate, or the fair value of the underlying collateral less estimated costs to sell. The valuation allowance for residential mortgage loans is estimated by deriving probability of default and recovery rate assumptions based on the characteristics of the loans in our portfolio, historical economic data and loss information, and current and forecasted economics conditions. Key loan characteristics impacting the estimate include delinquency status, time to maturity, original credit scores and loan-to-value ratios. |
Mortgage Loans on Real Estate, Real Estate Acquired Through Foreclosure, Policy | Charge-offs include allowances that have been established on loans that were satisfied either by taking ownership of the collateral or by some other means such as discounted pay-off or loan sale. When ownership of the property is taken it is recorded at the lower of the loan's carrying value or the property's fair value (based on appraised values) less estimated costs to sell. The real estate owned is recorded as a component of Other investments and the loan is recorded as fully paid, with any allowance for credit loss that has been established charged off. Fair value of the real estate is determined by third party appraisal. Recoveries are situations where we have received a payment from the borrower in an amount greater than the carrying value of the loan (principal outstanding less specific allowance). |
Mortgage Loans on Real Estate, Non-Accrual Loan Status, Policy | Commercial and residential mortgage loans are considered delinquent when they become 60 days or more past due. When loans become more than 90 days past due they are considered nonperforming and we place them on non-accrual status and discontinue recognizing interest income. If payments are received on a delinquent loan, interest income is recognized to the extent it would have been recognized if normal principal and interest would have been received timely. If payments are received to bring a delinquent loan back to current, we will resume accruing interest income on that loan. There were no loans in non-accrual status at June 30, 2020 and December 31, 2019 . We recognized no interest income on loans in non-accrual status during the three and six months ended June 30, 2020 and 2019 . |
Mortgage Loans on Real Estate, Troubled Debt Restructuring, Policy | A Troubled Debt Restructuring ("TDR") is a situation where we have granted a concession to a borrower for economic or legal reasons related to the borrower's financial difficulties that we would not otherwise consider. A mortgage loan that has been granted new terms, including workout terms as described previously, would be considered a TDR if it meets conditions that would indicate a borrower is experiencing financial difficulty and the new terms constitute a concession on our part. We analyze all loans where we have agreed to workout terms and all loans that we have refinanced to determine if they meet the definition of a TDR. We consider the following factors in determining whether or not a borrower is experiencing financial difficulty: • borrower is in default, • borrower has declared bankruptcy, • there is growing concern about the borrower's ability to continue as a going concern, • borrower has insufficient cash flows to service debt, • borrower's inability to obtain funds from other sources, and • there is a breach of financial covenants by the borrower. If the borrower is determined to be in financial difficulty, we consider the following conditions to determine if the borrower is granted a concession: • assets used to satisfy debt are less than our recorded investment, • interest rate is modified, • maturity date extension at an interest rate less than market rate, • capitalization of interest, • delaying principal and/or interest for a period of three months or more, and • partial forgiveness of the balance or charge-off. |
Commitments and Contingencies, Policy | In accordance with applicable accounting guidelines, we establish an accrued liability for litigation and regulatory matters when those matters present loss contingencies that are both probable and estimable. As a litigation or regulatory matter is developing we, in conjunction with outside counsel, evaluate on an ongoing basis whether the matter presents a loss contingency that meets conditions indicating the need for accrual and/or disclosure, and if not, the matter will continue to be monitored for further developments. If and when the loss contingency related to litigation or regulatory matters is deemed to be both probable and estimable, we will establish an accrued liability with respect to that matter and will continue to monitor the matter for further developments that may affect the amount of the accrued liability. |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Fair Values of Financial Instruments | The following sets forth a comparison of the carrying amounts and fair values of our financial instruments: June 30, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value (Dollars in thousands) Assets Fixed maturity securities, available for sale $ 50,738,792 $ 50,738,792 $ 51,580,490 $ 51,580,490 Mortgage loans on real estate 3,958,233 4,044,873 3,448,793 3,536,446 Derivative instruments 672,958 672,958 1,355,989 1,355,989 Other investments 479,099 479,099 492,301 492,301 Cash and cash equivalents 2,408,635 2,408,635 2,293,392 2,293,392 Coinsurance deposits 4,962,859 4,527,374 5,115,013 4,635,926 Interest rate caps — — 6 6 Liabilities Policy benefit reserves 61,312,957 51,865,732 61,540,992 51,800,247 Single premium immediate annuity (SPIA) benefit reserves 243,910 251,599 255,698 263,773 Notes payable 495,388 543,520 495,116 541,520 Subordinated debentures 77,964 74,084 157,265 168,357 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis, By Fair Value Hierarchy Level | Our assets and liabilities which are measured at fair value on a recurring basis as of June 30, 2020 and December 31, 2019 are presented below based on the fair value hierarchy levels: Total Fair Value Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) June 30, 2020 Assets Fixed maturity securities, available for sale: United States Government full faith and credit $ 39,342 $ 33,057 $ 6,285 $ — United States Government sponsored agencies 343,387 — 343,387 — United States municipalities, states and territories 3,778,710 — 3,778,710 — Foreign government obligations 207,509 — 207,509 — Corporate securities 33,330,711 10 33,330,701 — Residential mortgage backed securities 1,712,725 — 1,712,725 — Commercial mortgage backed securities 5,393,062 — 5,393,062 — Other asset backed securities 5,933,346 — 5,933,346 — Derivative instruments 672,958 — 672,958 — Cash and cash equivalents 2,408,635 2,408,635 — — $ 53,820,385 $ 2,441,702 $ 51,378,683 $ — Liabilities Fixed index annuities - embedded derivatives $ 9,418,485 $ — $ — $ 9,418,485 December 31, 2019 Assets Fixed maturity securities, available for sale: United States Government full faith and credit $ 161,765 $ 155,945 $ 5,820 $ — United States Government sponsored agencies 625,020 — 625,020 — United States municipalities, states and territories 4,527,671 — 4,527,671 — Foreign government obligations 205,096 — 205,096 — Corporate securities 32,536,839 4 32,536,835 — Residential mortgage backed securities 1,575,664 — 1,575,664 — Commercial mortgage backed securities 5,786,279 — 5,786,279 — Other asset backed securities 6,162,156 — 6,162,156 — Derivative instruments 1,355,989 — 1,355,989 — Cash and cash equivalents 2,293,392 2,293,392 — — Interest rate caps 6 — 6 — $ 55,229,877 $ 2,449,341 $ 52,780,536 $ — Liabilities Fixed index annuities - embedded derivatives $ 9,624,395 $ — $ — $ 9,624,395 |
Schedule of Assumptions Used in Estimating Fair Value | The following table presents average lapse rate and partial withdrawal rate assumptions, by contract duration, used in estimating the fair value of the embedded derivative component of our fixed index annuity policy benefit reserves at each reporting date: Average Lapse Rates Average Partial Withdrawal Rates Contract Duration (Years) June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 1 - 5 0.98% 0.90% 3.38% 3.33% 6 - 10 1.29% 1.29% 3.87% 3.84% 11 - 15 3.11% 3.31% 4.12% 4.12% 16 - 20 7.74% 8.52% 4.21% 4.18% 20+ 7.29% 7.10% 4.12% 4.12% |
Liabilities Measured at Fair Value on Recurring Basis, Level 3 Reconciliation | The following table provides a reconciliation of the beginning and ending balances for our Level 3 liabilities, which are measured at fair value on a recurring basis using significant unobservable inputs for the three and six months ended June 30, 2020 and 2019 : Three Months Ended Six Months Ended 2020 2019 2020 2019 (Dollars in thousands) Fixed index annuities - embedded derivatives Beginning balance $ 8,451,482 $ 8,876,055 $ 9,624,395 $ 8,165,405 Premiums less benefits 53,019 200,472 165,177 258,480 Change in fair value, net 913,984 204,590 (371,087 ) 857,232 Ending balance $ 9,418,485 $ 9,281,117 $ 9,418,485 $ 9,281,117 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments [Abstract] | |
Schedule of Fixed Maturity Securities | At June 30, 2020 and December 31, 2019 , the amortized cost and fair value of fixed maturity securities were as follows: Amortized Cost (1) Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value (Dollars in thousands) June 30, 2020 Fixed maturity securities, available for sale: United States Government full faith and credit $ 36,507 $ 2,835 $ — $ — $ 39,342 United States Government sponsored agencies 293,731 49,656 — — 343,387 United States municipalities, states and territories 3,283,321 497,428 (2,039 ) — 3,778,710 Foreign government obligations 187,021 21,616 (1,128 ) — 207,509 Corporate securities 29,734,789 3,889,518 (246,847 ) (46,749 ) 33,330,711 Residential mortgage backed securities 1,588,760 129,579 (4,837 ) (777 ) 1,712,725 Commercial mortgage backed securities 5,524,081 138,590 (266,949 ) (2,660 ) 5,393,062 Other asset backed securities 6,302,833 96,404 (465,891 ) — 5,933,346 $ 46,951,043 $ 4,825,626 $ (987,691 ) $ (50,186 ) $ 50,738,792 December 31, 2019 Fixed maturity securities, available for sale: United States Government full faith and credit $ 161,492 $ 369 $ (96 ) $ — $ 161,765 United States Government sponsored agencies 601,672 28,133 (4,785 ) — 625,020 United States municipalities, states and territories 4,147,343 388,578 (8,250 ) — 4,527,671 Foreign government obligations 186,993 18,103 — — 205,096 Corporate securities 29,822,172 2,796,926 (82,259 ) — 32,536,839 Residential mortgage backed securities 1,477,738 101,617 (3,691 ) — 1,575,664 Commercial mortgage backed securities 5,591,167 208,895 (13,783 ) — 5,786,279 Other asset backed securities 6,250,369 90,978 (179,191 ) — 6,162,156 $ 48,238,946 $ 3,633,599 $ (292,055 ) $ — $ 51,580,490 (1) Amortized cost excludes accrued interest receivable of $432.0 million as of June 30, 2020 . |
Schedule of Fixed Maturity Securities by Contractual Maturity Date | The amortized cost and fair value of fixed maturity securities at June 30, 2020 , by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. All of our mortgage and other asset backed securities provide for periodic payments throughout their lives and are shown below as separate lines. Available for sale Amortized Cost Fair Value (Dollars in thousands) Due in one year or less $ 425,542 $ 432,132 Due after one year through five years 6,511,972 6,869,898 Due after five years through ten years 9,337,950 10,131,288 Due after ten years through twenty years 9,676,298 11,429,195 Due after twenty years 7,583,607 8,837,146 33,535,369 37,699,659 Residential mortgage backed securities 1,588,760 1,712,725 Commercial mortgage backed securities 5,524,081 5,393,062 Other asset backed securities 6,302,833 5,933,346 $ 46,951,043 $ 50,738,792 |
Schedule of Components of Net Unrealized Gains on Available for Sale Fixed Maturity Securities Reported as Separate Component of Stockholders' Equity | Net unrealized gains on available for sale fixed maturity securities reported as a separate component of stockholders' equity were comprised of the following: June 30, 2020 December 31, 2019 (Dollars in thousands) Net unrealized gains on available for sale fixed maturity securities $ 3,826,652 $ 3,341,544 Adjustments for assumed changes in amortization of deferred policy acquisition costs and deferred sales inducements (1,678,164 ) (1,473,966 ) Deferred income tax valuation allowance reversal 22,534 22,534 Deferred income tax expense (451,183 ) (392,191 ) Net unrealized gains reported as accumulated other comprehensive income $ 1,719,839 $ 1,497,921 |
Schedule of Credit Quality of Fixed Maturity Security Portfolio by NAIC Designation | The following table summarizes the credit quality, as determined by NAIC designation, of our fixed maturity portfolio as of the dates indicated: June 30, 2020 December 31, 2019 NAIC Designation Amortized Cost Fair Value Amortized Cost Fair Value (Dollars in thousands) 1 $ 25,587,355 $ 28,327,288 $ 27,781,525 $ 30,122,657 2 19,487,757 20,765,334 19,278,355 20,316,911 3 1,577,056 1,430,998 1,001,087 977,191 4 185,879 156,234 114,497 112,534 5 51,893 31,644 57,952 45,205 6 61,103 27,294 5,530 5,992 $ 46,951,043 $ 50,738,792 $ 48,238,946 $ 51,580,490 |
Schedule of Gross Unrealized Losses on Investments, By Category and Length of Time | The following table shows our investments' gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities (consisting of 1,613 and 1,033 securities, respectively) have been in a continuous unrealized loss position, at June 30, 2020 and December 31, 2019 : Less than 12 months 12 months or more Total Fair Value Unrealized Losses (1) Fair Value Unrealized Losses (1) Fair Value Unrealized Losses (1) (Dollars in thousands) June 30, 2020 Fixed maturity securities, available for sale: United States municipalities, states and territories $ 51,931 $ (2,039 ) $ — $ — $ 51,931 $ (2,039 ) Foreign government obligations 23,057 (1,128 ) — — 23,057 (1,128 ) Corporate securities: Finance, insurance and real estate 626,564 (23,749 ) — — 626,564 (23,749 ) Manufacturing, construction and mining 280,272 (12,977 ) 18,451 (2,678 ) 298,723 (15,655 ) Utilities and related sectors 457,237 (62,364 ) 37,346 (9,405 ) 494,583 (71,769 ) Wholesale/retail trade 185,882 (21,316 ) 105,576 (27,228 ) 291,458 (48,544 ) Services, media and other 570,547 (64,840 ) 234,595 (69,039 ) 805,142 (133,879 ) Residential mortgage backed securities 221,327 (3,882 ) 12,675 (1,732 ) 234,002 (5,614 ) Commercial mortgage backed securities 2,711,400 (249,494 ) 88,303 (20,115 ) 2,799,703 (269,609 ) Other asset backed securities 2,161,262 (125,269 ) 2,677,210 (340,622 ) 4,838,472 (465,891 ) $ 7,289,479 $ (567,058 ) $ 3,174,156 $ (470,819 ) $ 10,463,635 $ (1,037,877 ) December 31, 2019 Fixed maturity securities, available for sale: United States Government full faith and credit $ 144,582 $ (96 ) $ — $ — $ 144,582 $ (96 ) United States Government sponsored agencies 168,732 (1,229 ) 201,444 (3,556 ) 370,176 (4,785 ) United States municipalities, states and territories 285,481 (8,173 ) 3,081 (77 ) 288,562 (8,250 ) Corporate securities: Finance, insurance and real estate 267,521 (4,785 ) 121,993 (4,744 ) 389,514 (9,529 ) Manufacturing, construction and mining 161,633 (6,039 ) 44,606 (3,951 ) 206,239 (9,990 ) Utilities and related sectors 334,635 (7,730 ) 51,269 (3,482 ) 385,904 (11,212 ) Wholesale/retail trade 54,289 (1,751 ) 129,364 (9,411 ) 183,653 (11,162 ) Services, media and other 275,135 (6,135 ) 316,086 (34,231 ) 591,221 (40,366 ) Residential mortgage backed securities 212,404 (2,686 ) 11,332 (1,005 ) 223,736 (3,691 ) Commercial mortgage backed securities 602,394 (9,366 ) 194,328 (4,417 ) 796,722 (13,783 ) Other asset backed securities 752,413 (11,709 ) 3,375,016 (167,482 ) 4,127,429 (179,191 ) $ 3,259,219 $ (59,699 ) $ 4,448,519 $ (232,356 ) $ 7,707,738 $ (292,055 ) (1) Unrealized losses have not been reduced to reflect the allowance for credit losses of $50.2 million as of June 30, 2020 . |
Schedule of Changes in Net Unrealized Gains/Losses on Investments | Changes in net unrealized gains/losses on investments for the three and six months ended June 30, 2020 and 2019 are as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 (Dollars in thousands) Fixed maturity securities available for sale carried at fair value $ 3,347,516 $ 1,383,290 $ 485,108 $ 2,900,810 Adjustment for effect on other balance sheet accounts: Deferred policy acquisition costs and deferred sales inducements (1,448,951 ) (704,445 ) (204,198 ) (1,505,346 ) Deferred income tax asset/liability (398,700 ) (142,558 ) (58,992 ) (293,048 ) (1,847,651 ) (847,003 ) (263,190 ) (1,798,394 ) Change in net unrealized gains/losses on investments carried at fair value $ 1,499,865 $ 536,287 $ 221,918 $ 1,102,416 |
Net Realized Gains (Losses) on Investments | Net realized gains (losses) on investments for the three and six months ended June 30, 2020 and 2019 , are as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 (Dollars in thousands) Available for sale fixed maturity securities: Gross realized gains $ 1,215 $ 5,255 $ 15,453 $ 6,426 Gross realized losses (264 ) (2,287 ) (1,470 ) (4,081 ) Credit losses (1) (25,041 ) — (56,412 ) — (24,090 ) 2,968 (42,429 ) 2,345 Other investments: Gross realized gains — 7,296 — 7,296 Gross realized losses — (14,446 ) — (14,446 ) — (7,150 ) — (7,150 ) Mortgage loans on real estate: Increase (decrease) in allowance for credit losses (2,510 ) 350 (4,507 ) 410 Recovery of specific allowance 712 — 712 — (1,798 ) 350 (3,795 ) 410 $ (25,888 ) $ (3,832 ) $ (46,224 ) $ (4,395 ) (1) Prior to adopting authoritative guidance effective January 1, 2020, credit losses on available for sale fixed maturity securities were classified as other than temporary impairments and reported in a separate line item in the Consolidated statements of operations. We recognized $1.2 million of other than temporary impairments during the three and six months ended June 30, 2019 . |
Rollforward of Allowance for Credit Loss | The following table provides a rollforward of the allowance for credit loss: Three Months Ended June 30, 2020 Corporate Securities Commercial Mortgage Backed Securities Residential Mortgage Backed Securities Other Asset Backed Securities Total (Dollars in thousands) Beginning balance (1) $ 28,332 $ — $ — $ — $ 28,332 Additions for credit losses not previously recorded 18,417 5,847 777 — 25,041 Reduction for securities with credit losses due to intent to sell — (3,187 ) — — (3,187 ) Ending balance $ 46,749 $ 2,660 $ 777 $ — $ 50,186 Six Months Ended June 30, 2020 Corporate Securities Commercial Mortgage Backed Securities Residential Mortgage Backed Securities Other Asset Backed Securities Total (Dollars in thousands) Beginning balance (1) $ — $ — $ — $ — $ — Additions for credit losses not previously recorded 46,749 8,338 777 548 56,412 Reduction for securities with credit losses due to intent to sell — (5,678 ) — (548 ) (6,226 ) Ending balance $ 46,749 $ 2,660 $ 777 $ — $ 50,186 (1) The allowance for credit loss associated with available for sale fixed maturity securities was applied prospectively upon adoption of authoritative guidance effective January 1, 2020. See Note 1 for further details. |
Other Than Temporary Impairment, Credit Losses Recognized in Earnings | The cumulative portion of other than temporary impairments determined to be credit losses which have been recognized in operations for debt securities are summarized as follows: Three Months Ended Six Months Ended 2019 2019 (Dollars in thousands) Cumulative credit loss at beginning of period $ (175,398 ) $ (175,398 ) Additions for the amount related to credit losses for which OTTI has not previously been recognized (998 ) (998 ) Additional credit losses on securities for which OTTI has previously been recognized (215 ) (215 ) Accumulated losses on securities that were disposed of during the period 10,960 10,960 Cumulative credit loss at end of period $ (165,651 ) $ (165,651 ) |
Schedule of Other Than Temporary Impairment Losses, Investments | The following table summarizes the cumulative noncredit portion of OTTI and the change in fair value since recognition of OTTI, both of which were recognized in other comprehensive income, by major type of security, for securities that are part of our investment portfolio at December 31, 2019 : Amortized Cost OTTI Recognized in Other Comprehensive Income (Loss) Change in Fair Value Since OTTI was Recognized Fair Value (Dollars in thousands) December 31, 2019 Fixed maturity securities, available for sale: Corporate securities $ 50,755 $ (3,700 ) $ 9,268 $ 56,323 Residential mortgage backed securities 183,948 (145,446 ) 172,577 211,079 Commercial mortgage backed securities 12,776 — (401 ) 12,375 Other asset backed securities 977 — 261 1,238 $ 248,456 $ (149,146 ) $ 181,705 $ 281,015 |
Mortgage Loans on Real Estate (
Mortgage Loans on Real Estate (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Summary of Mortgage Loan Portfolio | Our commercial and residential mortgage loan portfolios are summarized in the following table. There were commitments outstanding of $65.1 million at June 30, 2020 . June 30, 2020 December 31, 2019 (Dollars in thousands) Commercial mortgage loans: Principal outstanding $ 3,828,972 $ 3,458,914 Deferred fees and costs, net (1,858 ) (942 ) Amortized cost 3,827,114 3,457,972 Valuation allowance (18,439 ) (9,179 ) Commercial mortgage loans, carrying value 3,808,675 3,448,793 Residential mortgage loans: Principal outstanding 153,913 — Deferred fees and costs, net 373 — Unamortized discount (3,078 ) — Amortized cost 151,208 — Valuation allowance (1,650 ) — Residential mortgage loans, carrying value 149,558 — Mortgage loans, carrying value $ 3,958,233 $ 3,448,793 |
Commercial Mortgage Loan Portfolio Summarized By Geographic Region and Property Type | The commercial mortgage loan portfolio is summarized by geographic region and property type as follows: June 30, 2020 December 31, 2019 Principal Percent Principal Percent (Dollars in thousands) Geographic distribution East $ 714,198 18.7 % $ 645,991 18.7 % Middle Atlantic 287,864 7.5 % 284,597 8.2 % Mountain 444,495 11.6 % 389,892 11.3 % New England 25,066 0.7 % 9,152 0.3 % Pacific 782,240 20.4 % 655,518 19.0 % South Atlantic 820,260 21.4 % 751,199 21.7 % West North Central 308,874 8.1 % 302,534 8.7 % West South Central 445,975 11.6 % 420,031 12.1 % $ 3,828,972 100.0 % $ 3,458,914 100.0 % Property type distribution Office $ 259,888 6.8 % $ 250,287 7.3 % Medical Office 27,372 0.7 % 29,990 0.9 % Retail 1,225,212 32.0 % 1,225,670 35.4 % Industrial/Warehouse 974,579 25.5 % 896,558 25.9 % Apartment 971,536 25.4 % 858,679 24.8 % Agricultural 177,333 4.6 % 51,303 1.5 % Mixed use/Other 193,052 5.0 % 146,427 4.2 % $ 3,828,972 100.0 % $ 3,458,914 100.0 % |
Rollforward of Allowance for Credit Losses | The following table represents a rollforward of the valuation of our mortgage loan portfolios: Three Months Ended June 30, 2020 Commercial Residential Total (Dollars in thousands) Beginning allowance balance (1) $ (19,776 ) $ — $ (19,776 ) Charge-offs 1,485 — 1,485 Recoveries 712 — 712 Change in provision for credit losses (860 ) (1,650 ) (2,510 ) Ending allowance balance $ (18,439 ) $ (1,650 ) $ (20,089 ) Six Months Ended June 30, 2020 Commercial Residential Total (Dollars in thousands) Beginning allowance balance (1) $ (17,779 ) $ — $ (17,779 ) Charge-offs 1,485 — 1,485 Recoveries 712 — 712 Change in provision for credit losses (2,857 ) (1,650 ) (4,507 ) Ending allowance balance $ (18,439 ) $ (1,650 ) $ (20,089 ) (1) Upon adoption of authoritative guidance effective January 1, 2020, we updated our accounting policies and methodology for calculating the general loan loss allowance, resulting in an adjustment to our mortgage loan valuation allowance. See Note 1 for further details. |
Commercial Mortgage Loans By Credit Quality Indicator | A summary of our commercial mortgage loan portfolio by LTV and DSC ratios based on the most recent information collected follows (by year of origination): 2020 2019 2018 2017 2016 Prior Total As of June 30, 2020: Amortized Cost Average LTV Amortized Average Amortized Average Amortized Average Amortized Average Amortized Average Amortized Average Debt Service Coverage Ratio: (Dollars in thousands) Greater than or equal to 1.5 $ 316,727 64 % $ 455,910 67 % $ 405,363 61 % $ 310,373 58 % $ 378,311 55 % $ 816,947 46 % $ 2,683,631 56 % Greater than or equal to 1.2 and less than 1.5 187,242 63 % 256,913 69 % 141,693 68 % 151,241 65 % 54,324 62 % 159,528 54 % 950,941 64 % Greater than or equal to 1.0 and less than 1.2 5,966 68 % 61,471 58 % 8,931 75 % 15,548 64 % — — % 22,868 63 % 114,784 62 % Less than 1.0 8,784 60 % 25,220 44 % 18,550 65 % 2,996 62 % — — % 22,208 51 % 77,758 54 % Total $ 518,719 64 % $ 799,514 66 % $ 574,537 63 % $ 480,158 60 % $ 432,635 56 % $ 1,021,551 48 % $ 3,827,114 58 % |
Aging of Financing Receivables | Aging of financing receivables is summarized in the following table (by year of origination): 2020 2019 2018 2017 2016 Prior Total As of June 30, 2020: (Dollars in thousands) Commercial mortgage loans Current $ 518,719 $ 799,514 $ 574,537 $ 480,158 $ 432,635 $ 1,021,551 $ 3,827,114 30 - 59 days past due — — — — — — — 60 - 89 days past due — — — — — — — Over 90 days past due — — — — — — — Total commercial mortgage loans $ 518,719 $ 799,514 $ 574,537 $ 480,158 $ 432,635 $ 1,021,551 $ 3,827,114 Residential mortgage loans Current 138,749 $ 12,459 $ — $ — $ — $ — $ 151,208 30 - 59 days past due — — — — — — — 60 - 89 days past due — — — — — — — Over 90 days past due — — — — — — — Total residential mortgage loans $ 138,749 $ 12,459 $ — $ — $ — $ — $ 151,208 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments as Presented in the Consolidated Balance Sheets | The fair value of our derivative instruments, including derivative instruments embedded in fixed index annuity contracts, presented in the consolidated balance sheets are as follows: June 30, 2020 December 31, 2019 (Dollars in thousands) Assets Derivative instruments Call options $ 672,958 $ 1,355,989 Other assets Interest rate caps — 6 $ 672,958 $ 1,355,995 Liabilities Policy benefit reserves - annuity products Fixed index annuities - embedded derivatives, net $ 9,418,485 $ 9,624,395 |
Schedule of Changes in Fair Value of Derivative Instruments | The changes in fair value of derivatives included in the unaudited consolidated statements of operations are as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 (Dollars in thousands) Change in fair value of derivatives: Call options $ 327,662 $ 76,942 $ (614,274 ) $ 462,108 Interest rate swap — (688 ) — (1,056 ) Interest rate caps — (209 ) 62 (538 ) $ 327,662 $ 76,045 $ (614,212 ) $ 460,514 Change in fair value of embedded derivatives: Fixed index annuities - embedded derivatives $ 913,984 $ 204,590 $ (371,087 ) $ 857,232 Other changes in difference between policy benefit reserves computed using derivative accounting vs. long-duration contracts accounting 212,951 122,972 247,961 236,653 $ 1,126,935 $ 327,562 $ (123,126 ) $ 1,093,885 |
Schedule of Call Options by Counterparty | The notional amount and fair value of our call options by counterparty and each counterparty's current credit rating are as follows: June 30, 2020 December 31, 2019 Counterparty Credit Rating (S&P) Credit Rating (Moody's) Notional Amount Fair Value Notional Amount Fair Value (Dollars in thousands) Bank of America A+ Aa2 $ 2,038,746 $ 36,929 $ 2,680,543 $ 80,692 Barclays A A1 6,458,090 191,581 5,753,868 217,536 Canadian Imperial Bank of Commerce A+ Aa2 4,080,916 110,616 4,110,525 154,917 Citibank, N.A. A+ Aa3 3,917,488 41,372 4,075,544 109,046 Credit Suisse A+ A1 4,442,148 21,101 4,526,414 116,659 J.P. Morgan A+ Aa2 4,962,629 20,842 4,703,234 151,651 Morgan Stanley A+ A1 2,535,021 25,478 1,886,995 41,253 Royal Bank of Canada AA- A2 1,776,753 35,503 2,565,202 101,511 Societe Generale A A1 1,731,241 21,407 3,280,286 139,101 SunTrust A A2 2,175,542 53,077 2,051,229 74,910 Wells Fargo A+ Aa2 5,106,215 113,688 4,221,408 163,520 Exchange traded 166,248 1,364 191,948 5,193 $ 39,391,037 $ 672,958 $ 40,047,196 $ 1,355,989 |
Notes Payable and Amounts Due_2
Notes Payable and Amounts Due Under Repurchase Agreements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | Notes payable includes the following: June 30, 2020 December 31, 2019 (Dollars in thousands) Senior notes due 2027 Principal $ 500,000 $ 500,000 Unamortized debt issue costs (4,350 ) (4,607 ) Unamortized discount (262 ) (277 ) $ 495,388 $ 495,116 |
Earnings (Loss) Per Common Sh_2
Earnings (Loss) Per Common Share and Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings (Loss) Per Common Share, Basic and Diluted | The following table sets forth the computation of earnings (loss) per common share and earnings (loss) per common share - assuming dilution: Three Months Ended Six Months Ended 2020 2019 2020 2019 (Dollars in thousands, except per share data) Numerator: Net income (loss) available to common stockholders - numerator for earnings (loss) per common share $ (253,379 ) $ 18,590 $ (17,043 ) $ (11,420 ) Denominator: Weighted average common shares outstanding 91,803,312 91,103,151 91,723,814 90,993,810 Effect of dilutive securities: Stock options and deferred compensation agreements 63,265 333,780 100,277 394,390 Restricted stock and restricted stock units 160,276 348,292 199,875 376,898 Denominator for earnings (loss) per common share - assuming dilution 92,026,853 91,785,223 92,023,966 91,765,098 Earnings (loss) per common share $ (2.76 ) $ 0.20 $ (0.19 ) $ (0.13 ) Earnings (loss) per common share - assuming dilution $ (2.76 ) $ 0.20 $ (0.19 ) $ (0.13 ) |
Significant Accounting Polici_3
Significant Accounting Policies (Narrative) (Details) - Accounting Standards Update 2016-13 $ in Millions | Jan. 01, 2020USD ($) |
Financing Receivable, Allowance for Credit Loss | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New accounting pronouncement, effect of adoption, quantification | $ 8.6 |
Reinsurance Recoverable, Allowance for Credit Loss | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New accounting pronouncement, effect of adoption, quantification | 3.2 |
Retained Earnings | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New accounting pronouncement, effect of adoption, quantification | $ (9.3) |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($)Basis_Points | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)Basis_Points | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, Level 1 to Level 2 transfers, amount | $ 0 | $ 0 | $ 0 | ||
Liabilities, Level 1 to Level 2 transfers, amount | 0 | 0 | 0 | ||
Assets, Level 2 to Level 1 transfers, amount | 0 | 0 | 0 | ||
Liabilities, Level 2 to Level 1 transfers, amount | 0 | 0 | $ 0 | ||
Assets, transfers into Level 3, amount | 0 | $ 0 | 0 | $ 0 | |
Liabilities, transfers into Level 3, amount | 0 | 0 | 0 | 0 | |
Assets, transfers out of Level 3, amount | 0 | 0 | 0 | 0 | |
Liabilities, transfers out of Level 3, amount | $ 0 | $ 0 | $ 0 | $ 0 | |
Maximum | Measurement Input, Discount Rate | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value, sensitivity, discount rate adjustment (basis points) | Basis_Points | 100 | 100 | |||
Fixed index annuities embedded derivative, adjustment due to change in discount rate | $ (868,600) | ||||
Deferred policy scquisition costs and deferred sales inducements, combined balance, adjustment due to change in discount rate | $ (360,200) | ||||
Minimum | Measurement Input, Discount Rate | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value, sensitivity, discount rate adjustment (basis points) | Basis_Points | (100) | (100) | |||
Fixed index annuities embedded derivative, adjustment due to change in discount rate | $ 967,600 | ||||
Deferred policy scquisition costs and deferred sales inducements, combined balance, adjustment due to change in discount rate | $ 419,400 |
Fair Values of Financial Inst_4
Fair Values of Financial Instruments (Fair Values and Carrying Amounts of Financial Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Fixed maturity securities, available for sale, fair value | $ 50,738,792 | $ 51,580,490 |
Derivative instruments | 672,958 | 1,355,989 |
Other investments | 479,099 | 492,301 |
Coinsurance deposits (net of allowance for credit losses of $3,948 as of 2020 and $0 as of 2019) | 4,962,859 | 5,115,013 |
Liabilities | ||
Policy benefit reserves | 61,669,232 | 61,893,945 |
Carrying Amount | ||
Assets | ||
Fixed maturity securities, available for sale, fair value | 50,738,792 | 51,580,490 |
Mortgage loans on real estate | 3,958,233 | 3,448,793 |
Derivative instruments | 672,958 | 1,355,989 |
Other investments | 479,099 | 492,301 |
Cash and cash equivalents | 2,408,635 | 2,293,392 |
Coinsurance deposits (net of allowance for credit losses of $3,948 as of 2020 and $0 as of 2019) | 4,962,859 | 5,115,013 |
Liabilities | ||
Policy benefit reserves | 61,312,957 | 61,540,992 |
Single premium immediate annuity (SPIA) benefit reserves | 243,910 | 255,698 |
Notes payable | 495,388 | 495,116 |
Subordinated debentures | 77,964 | 157,265 |
Carrying Amount | Interest Rate Caps | ||
Assets | ||
Interest rate derivative assets | 0 | 6 |
Fair Value | ||
Assets | ||
Fixed maturity securities, available for sale, fair value | 50,738,792 | 51,580,490 |
Mortgage loans on real estate | 4,044,873 | 3,536,446 |
Derivative instruments | 672,958 | 1,355,989 |
Other investments | 479,099 | 492,301 |
Cash and cash equivalents | 2,408,635 | 2,293,392 |
Coinsurance deposits (net of allowance for credit losses of $3,948 as of 2020 and $0 as of 2019) | 4,527,374 | 4,635,926 |
Liabilities | ||
Policy benefit reserves | 51,865,732 | 51,800,247 |
Single premium immediate annuity (SPIA) benefit reserves | 251,599 | 263,773 |
Notes payable | 543,520 | 541,520 |
Subordinated debentures | 74,084 | 168,357 |
Fair Value | Interest Rate Caps | ||
Assets | ||
Interest rate derivative assets | $ 0 | $ 6 |
Fair Values of Financial Inst_5
Fair Values of Financial Instruments (Assets and Liabilities Measured on a Recurring Basis by Fair Value Hierarchy) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Derivative instruments | $ 672,958 | $ 1,355,989 |
Fair Value, Measurements, Recurring | ||
Assets | ||
Derivative instruments | 672,958 | 1,355,989 |
Cash and cash equivalents | 2,408,635 | 2,293,392 |
Assets | 53,820,385 | 55,229,877 |
Liabilities | ||
Fixed index annuities - embedded derivatives | 9,418,485 | 9,624,395 |
Fair Value, Measurements, Recurring | Interest Rate Caps | ||
Assets | ||
Interest rate derivative assets | 6 | |
Fair Value, Measurements, Recurring | United States Government Full Faith and Credit | ||
Assets | ||
Investments | 39,342 | 161,765 |
Fair Value, Measurements, Recurring | United States Government Sponsored Agencies | ||
Assets | ||
Investments | 343,387 | 625,020 |
Fair Value, Measurements, Recurring | United States Municipalities, States and Territories | ||
Assets | ||
Investments | 3,778,710 | 4,527,671 |
Fair Value, Measurements, Recurring | Foreign Government Obligations | ||
Assets | ||
Investments | 207,509 | 205,096 |
Fair Value, Measurements, Recurring | Corporate Securities | ||
Assets | ||
Investments | 33,330,711 | 32,536,839 |
Fair Value, Measurements, Recurring | Residential Mortgage Backed Securities | ||
Assets | ||
Investments | 1,712,725 | 1,575,664 |
Fair Value, Measurements, Recurring | Commercial Mortgage Backed Securities | ||
Assets | ||
Investments | 5,393,062 | 5,786,279 |
Fair Value, Measurements, Recurring | Other Asset Backed Securities | ||
Assets | ||
Investments | 5,933,346 | 6,162,156 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | ||
Assets | ||
Derivative instruments | 0 | 0 |
Cash and cash equivalents | 2,408,635 | 2,293,392 |
Assets | 2,441,702 | 2,449,341 |
Liabilities | ||
Fixed index annuities - embedded derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | Interest Rate Caps | ||
Assets | ||
Interest rate derivative assets | 0 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | United States Government Full Faith and Credit | ||
Assets | ||
Investments | 33,057 | 155,945 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | United States Government Sponsored Agencies | ||
Assets | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | United States Municipalities, States and Territories | ||
Assets | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | Foreign Government Obligations | ||
Assets | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | Corporate Securities | ||
Assets | ||
Investments | 10 | 4 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | Residential Mortgage Backed Securities | ||
Assets | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | Commercial Mortgage Backed Securities | ||
Assets | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | Other Asset Backed Securities | ||
Assets | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Derivative instruments | 672,958 | 1,355,989 |
Cash and cash equivalents | 0 | 0 |
Assets | 51,378,683 | 52,780,536 |
Liabilities | ||
Fixed index annuities - embedded derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest Rate Caps | ||
Assets | ||
Interest rate derivative assets | 6 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | United States Government Full Faith and Credit | ||
Assets | ||
Investments | 6,285 | 5,820 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | United States Government Sponsored Agencies | ||
Assets | ||
Investments | 343,387 | 625,020 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | United States Municipalities, States and Territories | ||
Assets | ||
Investments | 3,778,710 | 4,527,671 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign Government Obligations | ||
Assets | ||
Investments | 207,509 | 205,096 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate Securities | ||
Assets | ||
Investments | 33,330,701 | 32,536,835 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Residential Mortgage Backed Securities | ||
Assets | ||
Investments | 1,712,725 | 1,575,664 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Commercial Mortgage Backed Securities | ||
Assets | ||
Investments | 5,393,062 | 5,786,279 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Other Asset Backed Securities | ||
Assets | ||
Investments | 5,933,346 | 6,162,156 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Derivative instruments | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Assets | 0 | 0 |
Liabilities | ||
Fixed index annuities - embedded derivatives | 9,418,485 | 9,624,395 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Interest Rate Caps | ||
Assets | ||
Interest rate derivative assets | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | United States Government Full Faith and Credit | ||
Assets | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | United States Government Sponsored Agencies | ||
Assets | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | United States Municipalities, States and Territories | ||
Assets | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Foreign Government Obligations | ||
Assets | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Corporate Securities | ||
Assets | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Residential Mortgage Backed Securities | ||
Assets | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Commercial Mortgage Backed Securities | ||
Assets | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Other Asset Backed Securities | ||
Assets | ||
Investments | $ 0 | $ 0 |
Fair Values of Financial Inst_6
Fair Values of Financial Instruments (Assumptions Used in Estimating Fair Value) (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Expected cost of annual call options | 2.90% | 2.90% |
Fixed Index Annuities | Minimum | Contract Duration (Years), 1-5 | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Contract duration (years) | 1 year | 1 year |
Fixed Index Annuities | Minimum | Contract Duration (Years), 6-10 | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Contract duration (years) | 6 years | 6 years |
Fixed Index Annuities | Minimum | Contract Duration (Years), 11-15 | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Contract duration (years) | 11 years | 11 years |
Fixed Index Annuities | Minimum | Contract Duration (Years), 16-20 | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Contract duration (years) | 16 years | 16 years |
Fixed Index Annuities | Minimum | Contract Duration (Years), 20 or More | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Contract duration (years) | 20 years | 20 years |
Fixed Index Annuities | Maximum | Contract Duration (Years), 1-5 | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Contract duration (years) | 5 years | 5 years |
Fixed Index Annuities | Maximum | Contract Duration (Years), 6-10 | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Contract duration (years) | 10 years | 10 years |
Fixed Index Annuities | Maximum | Contract Duration (Years), 11-15 | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Contract duration (years) | 15 years | 15 years |
Fixed Index Annuities | Maximum | Contract Duration (Years), 16-20 | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Contract duration (years) | 20 years | 20 years |
Fixed Index Annuities | Average | Contract Duration (Years), 1-5 | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Average lapse rates | 0.98% | 0.90% |
Average partial withdrawal rates | 3.38% | 3.33% |
Fixed Index Annuities | Average | Contract Duration (Years), 6-10 | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Average lapse rates | 1.29% | 1.29% |
Average partial withdrawal rates | 3.87% | 3.84% |
Fixed Index Annuities | Average | Contract Duration (Years), 11-15 | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Average lapse rates | 3.11% | 3.31% |
Average partial withdrawal rates | 4.12% | 4.12% |
Fixed Index Annuities | Average | Contract Duration (Years), 16-20 | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Average lapse rates | 7.74% | 8.52% |
Average partial withdrawal rates | 4.21% | 4.18% |
Fixed Index Annuities | Average | Contract Duration (Years), 20 or More | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Average lapse rates | 7.29% | 7.10% |
Average partial withdrawal rates | 4.12% | 4.12% |
Fair Values of Financial Inst_7
Fair Values of Financial Instruments (Reconciliation of Beginning and Ending Balances of Level 3 Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | $ 8,451,482 | $ 8,876,055 | $ 9,624,395 | $ 8,165,405 | |
Premiums less benefits | 53,019 | 200,472 | 165,177 | 258,480 | |
Change in fair value, net | 913,984 | 204,590 | (371,087) | 857,232 | |
Ending balance | 9,418,485 | 9,281,117 | 9,418,485 | 9,281,117 | |
Coinsurance ceded, fixed index annuities embedded derivatives | $ 4,962,859 | $ 4,962,859 | $ 5,115,013 | ||
Fixed Index Annuities - Embedded Derivatives | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Coinsurance ceded, fixed index annuities embedded derivatives | $ 637,200 | $ 637,200 | $ 644,600 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($)Securities | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)Securities | Jun. 30, 2019USD ($) | Dec. 31, 2019Securities | |
Investments [Abstract] | |||||
Percentage of fixed maturity portfolio rated investment grade based on NAIC designations | 97.00% | 97.00% | 98.00% | ||
Number of securities in unrealized loss position | Securities | 1,613 | 1,613 | 1,033 | ||
Percentage of unrealized losses on fixed maturity securities where securities are rated investment grade | 80.00% | 80.00% | 79.00% | ||
Proceeds from sales of available for sale fixed maturity securities | $ 973,400 | $ 359,300 | |||
Principal repayments, calls and tenders for available for sale fixed maturity securities | 1,400,000 | 500,500 | |||
Other than temporary impairment losses | $ 0 | $ 1,213 | $ 0 | $ 1,213 |
Investments (Schedule of Fixed
Investments (Schedule of Fixed Maturity Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | [2] | Jan. 01, 2020 | [2] | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | |||||||
Fixed maturity securities, available for sale, amortized cost | $ 46,951,043 | [1] | $ 48,238,946 | ||||
Fixed maturity securities, available for sale, gross unrealized gains | 4,825,626 | 3,633,599 | |||||
Fixed maturity securities, available for sale, gross unrealized losses | (987,691) | (292,055) | |||||
Fixed maturity securities, available for sale, allowance for credit losses | (50,186) | $ (28,332) | $ 0 | ||||
Fixed maturity securities, available for sale, fair value | 50,738,792 | 51,580,490 | |||||
United States Government Full Faith and Credit | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Fixed maturity securities, available for sale, amortized cost | 36,507 | [1] | 161,492 | ||||
Fixed maturity securities, available for sale, gross unrealized gains | 2,835 | 369 | |||||
Fixed maturity securities, available for sale, gross unrealized losses | 0 | (96) | |||||
Fixed maturity securities, available for sale, allowance for credit losses | 0 | ||||||
Fixed maturity securities, available for sale, fair value | 39,342 | 161,765 | |||||
United States Government Sponsored Agencies | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Fixed maturity securities, available for sale, amortized cost | 293,731 | [1] | 601,672 | ||||
Fixed maturity securities, available for sale, gross unrealized gains | 49,656 | 28,133 | |||||
Fixed maturity securities, available for sale, gross unrealized losses | 0 | (4,785) | |||||
Fixed maturity securities, available for sale, allowance for credit losses | 0 | ||||||
Fixed maturity securities, available for sale, fair value | 343,387 | 625,020 | |||||
United States Municipalities, States and Territories | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Fixed maturity securities, available for sale, amortized cost | 3,283,321 | [1] | 4,147,343 | ||||
Fixed maturity securities, available for sale, gross unrealized gains | 497,428 | 388,578 | |||||
Fixed maturity securities, available for sale, gross unrealized losses | (2,039) | (8,250) | |||||
Fixed maturity securities, available for sale, allowance for credit losses | 0 | ||||||
Fixed maturity securities, available for sale, fair value | 3,778,710 | 4,527,671 | |||||
Foreign Government Obligations | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Fixed maturity securities, available for sale, amortized cost | 187,021 | [1] | 186,993 | ||||
Fixed maturity securities, available for sale, gross unrealized gains | 21,616 | 18,103 | |||||
Fixed maturity securities, available for sale, gross unrealized losses | (1,128) | 0 | |||||
Fixed maturity securities, available for sale, allowance for credit losses | 0 | ||||||
Fixed maturity securities, available for sale, fair value | 207,509 | 205,096 | |||||
Corporate Securities | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Fixed maturity securities, available for sale, amortized cost | 29,734,789 | [1] | 29,822,172 | ||||
Fixed maturity securities, available for sale, gross unrealized gains | 3,889,518 | 2,796,926 | |||||
Fixed maturity securities, available for sale, gross unrealized losses | (246,847) | (82,259) | |||||
Fixed maturity securities, available for sale, allowance for credit losses | (46,749) | (28,332) | 0 | ||||
Fixed maturity securities, available for sale, fair value | 33,330,711 | 32,536,839 | |||||
Residential Mortgage Backed Securities | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Fixed maturity securities, available for sale, amortized cost | 1,588,760 | [1] | 1,477,738 | ||||
Fixed maturity securities, available for sale, gross unrealized gains | 129,579 | 101,617 | |||||
Fixed maturity securities, available for sale, gross unrealized losses | (4,837) | (3,691) | |||||
Fixed maturity securities, available for sale, allowance for credit losses | (777) | 0 | 0 | ||||
Fixed maturity securities, available for sale, fair value | 1,712,725 | 1,575,664 | |||||
Commercial Mortgage Backed Securities | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Fixed maturity securities, available for sale, amortized cost | 5,524,081 | [1] | 5,591,167 | ||||
Fixed maturity securities, available for sale, gross unrealized gains | 138,590 | 208,895 | |||||
Fixed maturity securities, available for sale, gross unrealized losses | (266,949) | (13,783) | |||||
Fixed maturity securities, available for sale, allowance for credit losses | (2,660) | 0 | 0 | ||||
Fixed maturity securities, available for sale, fair value | 5,393,062 | 5,786,279 | |||||
Other Asset Backed Securities | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Fixed maturity securities, available for sale, amortized cost | 6,302,833 | [1] | 6,250,369 | ||||
Fixed maturity securities, available for sale, gross unrealized gains | 96,404 | 90,978 | |||||
Fixed maturity securities, available for sale, gross unrealized losses | (465,891) | (179,191) | |||||
Fixed maturity securities, available for sale, allowance for credit losses | 0 | $ 0 | $ 0 | ||||
Fixed maturity securities, available for sale, fair value | 5,933,346 | $ 6,162,156 | |||||
Fixed Maturity Securities, Available For Sale | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Accrued interest receivable | $ 432,000 | ||||||
[1] | (1) Amortized cost excludes accrued interest receivable of $432.0 million as of June 30, 2020 . | ||||||
[2] | (1) The allowance for credit loss associated with available for sale fixed maturity securities was applied prospectively upon adoption of authoritative guidance effective January 1, 2020. See Note 1 for further details. |
Investments (Fixed Maturity Sec
Investments (Fixed Maturity Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |||
Fixed maturity securities, available for sale, due in one year or less, amortized cost | $ 425,542 | ||
Fixed maturity securities, available for sale, due after one year through five years, amortized cost | 6,511,972 | ||
Fixed maturity securities, available for sale, due after five years through ten years, amortized cost | 9,337,950 | ||
Fixed maturity securities, available for sale, due after ten years through twenty years, amortized cost | 9,676,298 | ||
Fixed maturity securities, available for sale, due after twenty years, amortized cost | 7,583,607 | ||
Fixed maturity securities, available for sale, securities with a single maturity date, amortized cost | 33,535,369 | ||
Fixed maturity securities, available for sale, amortized cost | 46,951,043 | [1] | $ 48,238,946 |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||
Fixed maturity securities, available for sale, due in one year or less, fair value | 432,132 | ||
Fixed maturity securities, available for sale, due after one year through five years, fair value | 6,869,898 | ||
Fixed maturity securities, available for sale, due after five years through ten years, fair value | 10,131,288 | ||
Fixed maturity securities, available for sale, due after ten years through twenty years, fair value | 11,429,195 | ||
Fixed maturity securities, available for sale, due after twenty years, fair value | 8,837,146 | ||
Fixed maturity securities, available for sale, securities with a single maturity date, fair value | 37,699,659 | ||
Fixed maturity securities, available for sale, fair value | 50,738,792 | 51,580,490 | |
Residential Mortgage Backed Securities | |||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |||
Fixed maturity securities, available for sale, securities without a single maturity date, amortized cost | 1,588,760 | ||
Fixed maturity securities, available for sale, amortized cost | 1,588,760 | [1] | 1,477,738 |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||
Fixed maturity securities, available for sale, securities without a single maturity date, fair value | 1,712,725 | ||
Fixed maturity securities, available for sale, fair value | 1,712,725 | 1,575,664 | |
Commercial Mortgage Backed Securities | |||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |||
Fixed maturity securities, available for sale, securities without a single maturity date, amortized cost | 5,524,081 | ||
Fixed maturity securities, available for sale, amortized cost | 5,524,081 | [1] | 5,591,167 |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||
Fixed maturity securities, available for sale, securities without a single maturity date, fair value | 5,393,062 | ||
Fixed maturity securities, available for sale, fair value | 5,393,062 | 5,786,279 | |
Other Asset Backed Securities | |||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |||
Fixed maturity securities, available for sale, securities without a single maturity date, amortized cost | 6,302,833 | ||
Fixed maturity securities, available for sale, amortized cost | 6,302,833 | [1] | 6,250,369 |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||
Fixed maturity securities, available for sale, securities without a single maturity date, fair value | 5,933,346 | ||
Fixed maturity securities, available for sale, fair value | $ 5,933,346 | $ 6,162,156 | |
[1] | (1) Amortized cost excludes accrued interest receivable of $432.0 million as of June 30, 2020 . |
Investments (Net Unrealized Gai
Investments (Net Unrealized Gains on Available for Sale Fixed Maturity Securities Reported as a Separate Component of Stockholders' Equity) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Investments [Abstract] | ||
Net unrealized gains on available for sale fixed maturity securities | $ 3,826,652 | $ 3,341,544 |
Adjustments for assumed changes in amortization of deferred policy acquisition costs and deferred sales inducements | (1,678,164) | (1,473,966) |
Deferred income tax valuation allowance reversal | 22,534 | 22,534 |
Deferred income tax expense | (451,183) | (392,191) |
Net unrealized gains reported as accumulated other comprehensive income | $ 1,719,839 | $ 1,497,921 |
Investments (Credit Quality of
Investments (Credit Quality of Fixed Maturity Security Portfolio by NAIC Designation) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Investment Holdings [Line Items] | |||
Fixed maturity securities, available for sale, amortized cost | $ 46,951,043 | [1] | $ 48,238,946 |
Fixed maturity securities, available for sale, fair value | 50,738,792 | 51,580,490 | |
NAIC, Class 1 Designation | |||
Investment Holdings [Line Items] | |||
Fixed maturity securities, available for sale, amortized cost | 25,587,355 | 27,781,525 | |
Fixed maturity securities, available for sale, fair value | 28,327,288 | 30,122,657 | |
NAIC, Class 2 Designation | |||
Investment Holdings [Line Items] | |||
Fixed maturity securities, available for sale, amortized cost | 19,487,757 | 19,278,355 | |
Fixed maturity securities, available for sale, fair value | 20,765,334 | 20,316,911 | |
NAIC, Class 3 Designation | |||
Investment Holdings [Line Items] | |||
Fixed maturity securities, available for sale, amortized cost | 1,577,056 | 1,001,087 | |
Fixed maturity securities, available for sale, fair value | 1,430,998 | 977,191 | |
NAIC, Class 4 Designation | |||
Investment Holdings [Line Items] | |||
Fixed maturity securities, available for sale, amortized cost | 185,879 | 114,497 | |
Fixed maturity securities, available for sale, fair value | 156,234 | 112,534 | |
NAIC, Class 5 Designation | |||
Investment Holdings [Line Items] | |||
Fixed maturity securities, available for sale, amortized cost | 51,893 | 57,952 | |
Fixed maturity securities, available for sale, fair value | 31,644 | 45,205 | |
NAIC, Class 6 Designation | |||
Investment Holdings [Line Items] | |||
Fixed maturity securities, available for sale, amortized cost | 61,103 | 5,530 | |
Fixed maturity securities, available for sale, fair value | $ 27,294 | $ 5,992 | |
[1] | (1) Amortized cost excludes accrued interest receivable of $432.0 million as of June 30, 2020 . |
Investments (Gross Unrealized L
Investments (Gross Unrealized Losses on Investments, By Category and Length of Time) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | [2] | Jan. 01, 2020 | [2] | Dec. 31, 2019 | ||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, fair value | $ 7,289,479 | $ 3,259,219 | ||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | (567,058) | [1] | (59,699) | |||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 3,174,156 | 4,448,519 | ||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | (470,819) | [1] | (232,356) | |||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 10,463,635 | 7,707,738 | ||||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | (1,037,877) | [1] | (292,055) | |||||
Fixed maturity securities, available for sale, allowance for credit losses | 50,186 | $ 28,332 | $ 0 | |||||
United States Government Full Faith and Credit | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, fair value | 144,582 | |||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | (96) | |||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 0 | |||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | 0 | |||||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 144,582 | |||||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | (96) | |||||||
Fixed maturity securities, available for sale, allowance for credit losses | 0 | |||||||
United States Government Sponsored Agencies | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, fair value | 168,732 | |||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | (1,229) | |||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 201,444 | |||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | (3,556) | |||||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 370,176 | |||||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | (4,785) | |||||||
Fixed maturity securities, available for sale, allowance for credit losses | 0 | |||||||
United States Municipalities, States and Territories | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, fair value | 51,931 | 285,481 | ||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | (2,039) | [1] | (8,173) | |||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 0 | 3,081 | ||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | 0 | [1] | (77) | |||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 51,931 | 288,562 | ||||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | (2,039) | [1] | (8,250) | |||||
Fixed maturity securities, available for sale, allowance for credit losses | 0 | |||||||
Foreign Government Obligations | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, fair value | 23,057 | |||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | [1] | (1,128) | ||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 0 | |||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | [1] | 0 | ||||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 23,057 | |||||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | [1] | (1,128) | ||||||
Fixed maturity securities, available for sale, allowance for credit losses | 0 | |||||||
Corporate Securities | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Fixed maturity securities, available for sale, allowance for credit losses | 46,749 | 28,332 | 0 | |||||
Corporate Securities | Finance, Insurance and Real Estate Sectors | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, fair value | 626,564 | 267,521 | ||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | (23,749) | [1] | (4,785) | |||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 0 | 121,993 | ||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | 0 | [1] | (4,744) | |||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 626,564 | 389,514 | ||||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | (23,749) | [1] | (9,529) | |||||
Corporate Securities | Manufacturing, Construction and Mining | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, fair value | 280,272 | 161,633 | ||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | (12,977) | [1] | (6,039) | |||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 18,451 | 44,606 | ||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | (2,678) | [1] | (3,951) | |||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 298,723 | 206,239 | ||||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | (15,655) | [1] | (9,990) | |||||
Corporate Securities | Utilities and Related Sectors | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, fair value | 457,237 | 334,635 | ||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | (62,364) | [1] | (7,730) | |||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 37,346 | 51,269 | ||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | (9,405) | [1] | (3,482) | |||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 494,583 | 385,904 | ||||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | (71,769) | [1] | (11,212) | |||||
Corporate Securities | Wholesale/Retail Trade | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, fair value | 185,882 | 54,289 | ||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | (21,316) | [1] | (1,751) | |||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 105,576 | 129,364 | ||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | (27,228) | [1] | (9,411) | |||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 291,458 | 183,653 | ||||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | (48,544) | [1] | (11,162) | |||||
Corporate Securities | Services, Media and Other | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, fair value | 570,547 | 275,135 | ||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | (64,840) | [1] | (6,135) | |||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 234,595 | 316,086 | ||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | (69,039) | [1] | (34,231) | |||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 805,142 | 591,221 | ||||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | (133,879) | [1] | (40,366) | |||||
Residential Mortgage Backed Securities | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, fair value | 221,327 | 212,404 | ||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | (3,882) | [1] | (2,686) | |||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 12,675 | 11,332 | ||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | (1,732) | [1] | (1,005) | |||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 234,002 | 223,736 | ||||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | (5,614) | [1] | (3,691) | |||||
Fixed maturity securities, available for sale, allowance for credit losses | 777 | 0 | 0 | |||||
Commercial Mortgage Backed Securities | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, fair value | 2,711,400 | 602,394 | ||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | (249,494) | [1] | (9,366) | |||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 88,303 | 194,328 | ||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | (20,115) | [1] | (4,417) | |||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 2,799,703 | 796,722 | ||||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | (269,609) | [1] | (13,783) | |||||
Fixed maturity securities, available for sale, allowance for credit losses | 2,660 | 0 | 0 | |||||
Other Asset Backed Securities | ||||||||
Debt Securities, Available-for-sale [Line Items] | ||||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, fair value | 2,161,262 | 752,413 | ||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | (125,269) | [1] | (11,709) | |||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 2,677,210 | 3,375,016 | ||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | (340,622) | [1] | (167,482) | |||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 4,838,472 | 4,127,429 | ||||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | (465,891) | [1] | $ (179,191) | |||||
Fixed maturity securities, available for sale, allowance for credit losses | $ 0 | $ 0 | $ 0 | |||||
[1] | (1) Unrealized losses have not been reduced to reflect the allowance for credit losses of $50.2 million as of June 30, 2020 . | |||||||
[2] | (1) The allowance for credit loss associated with available for sale fixed maturity securities was applied prospectively upon adoption of authoritative guidance effective January 1, 2020. See Note 1 for further details. |
Investments (Changes in Net Unr
Investments (Changes in Net Unrealized Gains/Losses on Investments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Investments [Abstract] | ||||
Fixed maturity securities available for sale carried at fair value | $ 3,347,516 | $ 1,383,290 | $ 485,108 | $ 2,900,810 |
Adjustment for effect on other balance sheet accounts: | ||||
Deferred policy acquisition costs and deferred sales inducements | (1,448,951) | (704,445) | (204,198) | (1,505,346) |
Deferred income tax asset/liability | (398,700) | (142,558) | (58,992) | (293,048) |
Total adjustment for effect on other balance sheet accounts | (1,847,651) | (847,003) | (263,190) | (1,798,394) |
Change in net unrealized gains/losses on investments carried at fair value | $ 1,499,865 | $ 536,287 | $ 221,918 | $ 1,102,416 |
Investments (Net Realized Gains
Investments (Net Realized Gains (Losses) on Invesments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Gain (Loss) on Securities [Line Items] | |||||
Credit losses (1) | $ (25,041) | $ (56,412) | |||
Increase (decrease) in allowance for credit losses | (2,510) | (4,507) | |||
Recovery of specific allowance | 712 | 712 | |||
Net realized gains (losses) on investments | (25,888) | $ (3,832) | (46,224) | $ (4,395) | |
Available For Sale Fixed Maturity Securities | |||||
Gain (Loss) on Securities [Line Items] | |||||
Gross realized gains | 1,215 | 5,255 | 15,453 | 6,426 | |
Gross realized losses | (264) | (2,287) | (1,470) | (4,081) | |
Credit losses (1) | [1] | (25,041) | 0 | (56,412) | 0 |
Realized gains (losses) | (24,090) | 2,968 | (42,429) | 2,345 | |
Other Investments | |||||
Gain (Loss) on Securities [Line Items] | |||||
Gross realized gains | 0 | 7,296 | 0 | 7,296 | |
Gross realized losses | 0 | (14,446) | 0 | (14,446) | |
Realized gains (losses) | 0 | (7,150) | 0 | (7,150) | |
Mortgage Loans on Real Estate | |||||
Gain (Loss) on Securities [Line Items] | |||||
Increase (decrease) in allowance for credit losses | (2,510) | 350 | (4,507) | 410 | |
Recovery of specific allowance | 712 | 0 | 712 | 0 | |
Change in allowance for credit losses and recoveries | $ (1,798) | $ 350 | $ (3,795) | $ 410 | |
[1] | (1) Prior to adopting authoritative guidance effective January 1, 2020, credit losses on available for sale fixed maturity securities were classified as other than temporary impairments and reported in a separate line item in the Consolidated statements of operations. We recognized $1.2 million of other than temporary impairments during the three and six months ended June 30, 2019 . |
Investments Investments (Rollfo
Investments Investments (Rollforward of Allowance for Credit Losses) (Details) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||
Beginning balance (1) | [1] | $ 28,332 | |
Additions for credit losses not previously recorded | 25,041 | $ 56,412 | |
Reduction for securities with credit losses due to intent to sell | (3,187) | (6,226) | |
Ending balance | 50,186 | 50,186 | |
Corporate Securities | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||
Beginning balance (1) | [1] | 28,332 | |
Additions for credit losses not previously recorded | 18,417 | 46,749 | |
Reduction for securities with credit losses due to intent to sell | 0 | 0 | |
Ending balance | 46,749 | 46,749 | |
Commercial Mortgage Backed Securities | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||
Beginning balance (1) | [1] | 0 | |
Additions for credit losses not previously recorded | 5,847 | 8,338 | |
Reduction for securities with credit losses due to intent to sell | (3,187) | (5,678) | |
Ending balance | 2,660 | 2,660 | |
Residential Mortgage Backed Securities | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||
Beginning balance (1) | [1] | 0 | |
Additions for credit losses not previously recorded | 777 | 777 | |
Reduction for securities with credit losses due to intent to sell | 0 | 0 | |
Ending balance | 777 | 777 | |
Other Asset Backed Securities | |||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | |||
Beginning balance (1) | [1] | 0 | |
Additions for credit losses not previously recorded | 0 | 548 | |
Reduction for securities with credit losses due to intent to sell | 0 | (548) | |
Ending balance | $ 0 | $ 0 | |
[1] | (1) The allowance for credit loss associated with available for sale fixed maturity securities was applied prospectively upon adoption of authoritative guidance effective January 1, 2020. See Note 1 for further details. |
Investments (Cumulative Credit
Investments (Cumulative Credit Loss Portion of Other Than Temporary Impairment Recognized in Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Investments [Abstract] | ||
Cumulative credit loss at beginning of period | $ (175,398) | $ (175,398) |
Additions for the amount related to credit losses for which OTTI has not previously been recognized | (998) | (998) |
Additional credit losses on securities for which OTTI has previously been recognized | (215) | (215) |
Accumulated losses on securities that were disposed of during the period | 10,960 | 10,960 |
Cumulative credit loss at end of period | $ (165,651) | $ (165,651) |
Investments (Cumulative Noncred
Investments (Cumulative Noncredit Portion of Other Than Temporary Impairment Recognized in Other Comprehensive Income and Change in Fair Value Since Other Than Temporary Impairment) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Investment Holdings [Line Items] | |
Amortized cost | $ 248,456 |
OTTI recognized in other comprehensive income (loss) | (149,146) |
Change in fair value since OTTI was recognized | 181,705 |
Fair value | 281,015 |
Corporate Securities | |
Investment Holdings [Line Items] | |
Amortized cost | 50,755 |
OTTI recognized in other comprehensive income (loss) | (3,700) |
Change in fair value since OTTI was recognized | 9,268 |
Fair value | 56,323 |
Residential Mortgage Backed Securities | |
Investment Holdings [Line Items] | |
Amortized cost | 183,948 |
OTTI recognized in other comprehensive income (loss) | (145,446) |
Change in fair value since OTTI was recognized | 172,577 |
Fair value | 211,079 |
Commercial Mortgage Backed Securities | |
Investment Holdings [Line Items] | |
Amortized cost | 12,776 |
OTTI recognized in other comprehensive income (loss) | 0 |
Change in fair value since OTTI was recognized | (401) |
Fair value | 12,375 |
Other Asset Backed Securities | |
Investment Holdings [Line Items] | |
Amortized cost | 977 |
OTTI recognized in other comprehensive income (loss) | 0 |
Change in fair value since OTTI was recognized | 261 |
Fair value | $ 1,238 |
Mortgage Loans on Real Estate_2
Mortgage Loans on Real Estate (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020USD ($)portfolio_segment | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)loansportfolio_segment | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)loans | |
Loans and Leases Receivable Disclosure [Line Items] | |||||
Number of portfolio segments that make up financing receivables | portfolio_segment | 2 | 2 | |||
Commitments outstanding | $ 65,100 | $ 65,100 | |||
Allowance for credit loss, economic factors forecast period, years | 2 years | ||||
Real estate owned | 0 | $ 0 | $ 0 | $ 0 | |
Non-accrual loans | 0 | 0 | $ 0 | ||
Interest income recognized on non-accrual loans | 0 | $ 0 | $ 0 | $ 0 | |
Financing receivable, modifications, period of time of delaying principal and/or interest | 3 months | ||||
Minimum | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Number of days past due, delinquent status | 60 days | ||||
Number of days past due, non-accrual status | 90 days | ||||
Commercial Mortgage Loans | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Accrued interest receivable written off | 0 | $ 0 | |||
Collateral dependent loans | 0 | $ 0 | $ 0 | ||
Number of TDRs | loans | 0 | 0 | |||
Residential Mortgage Loans | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Accrued interest receivable written off | 0 | $ 0 | |||
Collateral dependent loans | $ 0 | $ 0 | $ 0 |
Mortgage Loans on Real Estate_3
Mortgage Loans on Real Estate (Summary of Mortgage Loan Portfolio) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | [1] | Jan. 01, 2020 | [1] | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Valuation allowance | $ (20,089) | $ (19,776) | $ (17,779) | $ (9,179) | ||
Mortgage loans, carrying value | 3,958,233 | 3,448,793 | ||||
Commercial Mortgage Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Principal outstanding | 3,828,972 | 3,458,914 | ||||
Deferred fees and costs, net | (1,858) | (942) | ||||
Amortized cost | 3,827,114 | 3,457,972 | ||||
Valuation allowance | (18,439) | (19,776) | (17,779) | (9,179) | ||
Mortgage loans, carrying value | 3,808,675 | 3,448,793 | ||||
Residential Mortgage Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Principal outstanding | 153,913 | 0 | ||||
Deferred fees and costs, net | 373 | 0 | ||||
Unamortized discount | (3,078) | 0 | ||||
Amortized cost | 151,208 | 0 | ||||
Valuation allowance | (1,650) | $ 0 | $ 0 | 0 | ||
Mortgage loans, carrying value | $ 149,558 | $ 0 | ||||
[1] | (1) Upon adoption of authoritative guidance effective January 1, 2020, we updated our accounting policies and methodology for calculating the general loan loss allowance, resulting in an adjustment to our mortgage loan valuation allowance. See Note 1 for further details. |
Mortgage Loans on Real Estate_4
Mortgage Loans on Real Estate (Mortgage Loan Portfolio Summarized by Geographic Region and Property Type) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Commercial Mortgage and Residential Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest receivable | $ 15,500 | |
Residential Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | 153,913 | $ 0 |
Commercial Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 3,828,972 | $ 3,458,914 |
Percent | 100.00% | 100.00% |
Commercial Mortgage Loans | East | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 714,198 | $ 645,991 |
Percent | 18.70% | 18.70% |
Commercial Mortgage Loans | Middle Atlantic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 287,864 | $ 284,597 |
Percent | 7.50% | 8.20% |
Commercial Mortgage Loans | Mountain | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 444,495 | $ 389,892 |
Percent | 11.60% | 11.30% |
Commercial Mortgage Loans | New England | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 25,066 | $ 9,152 |
Percent | 0.70% | 0.30% |
Commercial Mortgage Loans | Pacific | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 782,240 | $ 655,518 |
Percent | 20.40% | 19.00% |
Commercial Mortgage Loans | South Atlantic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 820,260 | $ 751,199 |
Percent | 21.40% | 21.70% |
Commercial Mortgage Loans | West North Central | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 308,874 | $ 302,534 |
Percent | 8.10% | 8.70% |
Commercial Mortgage Loans | West South Central | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 445,975 | $ 420,031 |
Percent | 11.60% | 12.10% |
Commercial Mortgage Loans | Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 259,888 | $ 250,287 |
Percent | 6.80% | 7.30% |
Commercial Mortgage Loans | Medical Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 27,372 | $ 29,990 |
Percent | 0.70% | 0.90% |
Commercial Mortgage Loans | Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 1,225,212 | $ 1,225,670 |
Percent | 32.00% | 35.40% |
Commercial Mortgage Loans | Industrial/Warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 974,579 | $ 896,558 |
Percent | 25.50% | 25.90% |
Commercial Mortgage Loans | Apartment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 971,536 | $ 858,679 |
Percent | 25.40% | 24.80% |
Commercial Mortgage Loans | Agricultural | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 177,333 | $ 51,303 |
Percent | 4.60% | 1.50% |
Commercial Mortgage Loans | Mixed Use/Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 193,052 | $ 146,427 |
Percent | 5.00% | 4.20% |
Mortgage Loans on Real Estate_5
Mortgage Loans on Real Estate (Allowance for Loan Losses Rollforward) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning allowance balance (1) | $ (19,776) | [1] | $ (9,179) |
Charge-offs | 1,485 | 1,485 | |
Recoveries | 712 | 712 | |
Change in provision for credit losses | (2,510) | (4,507) | |
Ending allowance balance | (20,089) | (20,089) | |
Commercial | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning allowance balance (1) | (19,776) | [1] | (9,179) |
Charge-offs | 1,485 | 1,485 | |
Recoveries | 712 | 712 | |
Change in provision for credit losses | (860) | (2,857) | |
Ending allowance balance | (18,439) | (18,439) | |
Residential | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning allowance balance (1) | 0 | [1] | 0 |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Change in provision for credit losses | (1,650) | (1,650) | |
Ending allowance balance | $ (1,650) | $ (1,650) | |
[1] | (1) Upon adoption of authoritative guidance effective January 1, 2020, we updated our accounting policies and methodology for calculating the general loan loss allowance, resulting in an adjustment to our mortgage loan valuation allowance. See Note 1 for further details. |
Mortgage Loans on Real Estate_6
Mortgage Loans on Real Estate (Summary By Debt Service Coverage and Loan to Value Ratios) (Details) - Commercial Mortgage Loans - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 - Amortized cost | $ 518,719 | |
2020 - Average LTV | 64.00% | |
2019 - Amortized cost | $ 799,514 | |
2019 - Average LTV | 66.00% | |
2018 - Amortized cost | $ 574,537 | |
2018 - Average LTV | 63.00% | |
2017 - Amortized cost | $ 480,158 | |
2017 - Average LTV | 60.00% | |
2016 - Amortized cost | $ 432,635 | |
2016 - Average LTV | 56.00% | |
Prior - Amortized cost | $ 1,021,551 | |
Prior - Average LTV | 48.00% | |
Amortized cost | $ 3,827,114 | $ 3,457,972 |
Total - Average LTV | 58.00% | |
Debt Service Coverage Ratio: Greater Than or Equal to 1.5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 - Amortized cost | $ 316,727 | |
2020 - Average LTV | 64.00% | |
2019 - Amortized cost | $ 455,910 | |
2019 - Average LTV | 67.00% | |
2018 - Amortized cost | $ 405,363 | |
2018 - Average LTV | 61.00% | |
2017 - Amortized cost | $ 310,373 | |
2017 - Average LTV | 58.00% | |
2016 - Amortized cost | $ 378,311 | |
2016 - Average LTV | 55.00% | |
Prior - Amortized cost | $ 816,947 | |
Prior - Average LTV | 46.00% | |
Amortized cost | $ 2,683,631 | |
Total - Average LTV | 56.00% | |
Debt Service Coverage Ratio: Greater Than or Equal to 1.2 and Less Than 1.5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 - Amortized cost | $ 187,242 | |
2020 - Average LTV | 63.00% | |
2019 - Amortized cost | $ 256,913 | |
2019 - Average LTV | 69.00% | |
2018 - Amortized cost | $ 141,693 | |
2018 - Average LTV | 68.00% | |
2017 - Amortized cost | $ 151,241 | |
2017 - Average LTV | 65.00% | |
2016 - Amortized cost | $ 54,324 | |
2016 - Average LTV | 62.00% | |
Prior - Amortized cost | $ 159,528 | |
Prior - Average LTV | 54.00% | |
Amortized cost | $ 950,941 | |
Total - Average LTV | 64.00% | |
Debt Service Coverage Ratio: Greater Than or Equal to 1.0 and Less Than 1.2 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 - Amortized cost | $ 5,966 | |
2020 - Average LTV | 68.00% | |
2019 - Amortized cost | $ 61,471 | |
2019 - Average LTV | 58.00% | |
2018 - Amortized cost | $ 8,931 | |
2018 - Average LTV | 75.00% | |
2017 - Amortized cost | $ 15,548 | |
2017 - Average LTV | 64.00% | |
2016 - Amortized cost | $ 0 | |
2016 - Average LTV | 0.00% | |
Prior - Amortized cost | $ 22,868 | |
Prior - Average LTV | 63.00% | |
Amortized cost | $ 114,784 | |
Total - Average LTV | 62.00% | |
Debt Service Coverage Ratio: Less Than 1.0 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 - Amortized cost | $ 8,784 | |
2020 - Average LTV | 60.00% | |
2019 - Amortized cost | $ 25,220 | |
2019 - Average LTV | 44.00% | |
2018 - Amortized cost | $ 18,550 | |
2018 - Average LTV | 65.00% | |
2017 - Amortized cost | $ 2,996 | |
2017 - Average LTV | 62.00% | |
2016 - Amortized cost | $ 0 | |
2016 - Average LTV | 0.00% | |
Prior - Amortized cost | $ 22,208 | |
Prior - Average LTV | 51.00% | |
Amortized cost | $ 77,758 | |
Total - Average LTV | 54.00% |
Mortgage Loans on Real Estate_7
Mortgage Loans on Real Estate (Schedule of Financing Receivables Past Due) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Mortgage loans, past due | $ 0 | |
Commercial Mortgage Loans | ||
Financing Receivable, Past Due [Line Items] | ||
2020 | $ 518,719 | |
2019 | 799,514 | |
2018 | 574,537 | |
2017 | 480,158 | |
2016 | 432,635 | |
Prior | 1,021,551 | |
Amortized cost | 3,827,114 | 3,457,972 |
Commercial Mortgage Loans | Current | ||
Financing Receivable, Past Due [Line Items] | ||
2020 | 518,719 | |
2019 | 799,514 | |
2018 | 574,537 | |
2017 | 480,158 | |
2016 | 432,635 | |
Prior | 1,021,551 | |
Mortgage loans, current | 3,827,114 | |
Commercial Mortgage Loans | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Mortgage loans, past due | 0 | |
Commercial Mortgage Loans | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Mortgage loans, past due | 0 | |
Commercial Mortgage Loans | Over 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Mortgage loans, past due | 0 | |
Residential Mortgage Loans | ||
Financing Receivable, Past Due [Line Items] | ||
2020 | 138,749 | |
2019 | 12,459 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Amortized cost | 151,208 | $ 0 |
Residential Mortgage Loans | Current | ||
Financing Receivable, Past Due [Line Items] | ||
2020 | 138,749 | |
2019 | 12,459 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Mortgage loans, current | 151,208 | |
Residential Mortgage Loans | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Mortgage loans, past due | 0 | |
Residential Mortgage Loans | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Mortgage loans, past due | 0 | |
Residential Mortgage Loans | Over 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Mortgage loans, past due | $ 0 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative collateral | $ 621.2 | $ 1,300 |
Credit risk, maximum exposure | $ 55.8 | $ 25.2 |
London Interbank Offered Rate (LIBOR) | Interest Rate Caps | ||
Derivative [Line Items] | ||
Cap rate | 2.50% |
Derivative Instruments (Fair Va
Derivative Instruments (Fair Value of Derivative Instruments as Presented in the Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 672,958 | $ 1,355,989 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 672,958 | 1,355,995 |
Not Designated as Hedging Instrument | Call Options | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 672,958 | 1,355,989 |
Not Designated as Hedging Instrument | Interest Rate Caps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 6 |
Not Designated as Hedging Instrument | Fixed Index Annuities - Embedded Derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 9,418,485 | $ 9,624,395 |
Derivative Instruments (Change
Derivative Instruments (Change in Fair Value of Derivatives Included in the Consolidated Statement of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value of derivatives | $ 327,662 | $ 76,045 | $ (614,212) | $ 460,514 |
Change in fair value of embedded derivatives | 1,126,935 | 327,562 | (123,126) | 1,093,885 |
Call Options | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value of derivatives | 327,662 | 76,942 | (614,274) | 462,108 |
Interest Rate Swap | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value of derivatives | 0 | (688) | 0 | (1,056) |
Interest Rate Caps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value of derivatives | 0 | (209) | 62 | (538) |
Fixed Index Annuities - Embedded Derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value of embedded derivatives | 913,984 | 204,590 | (371,087) | 857,232 |
Other Changes in Difference Between Policy Benefit Reserves Computed Using Derivative Accounting Vs. Long-Duration Contracts Accounting | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in fair value of embedded derivatives | $ 212,951 | $ 122,972 | $ 247,961 | $ 236,653 |
Derivative Instruments (Derivat
Derivative Instruments (Derivative Call Options, Notional Amount and Fair Value, by Counterparty) (Details) - Call Options - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Notional amount | $ 39,391,037 | $ 40,047,196 |
Fair value | 672,958 | 1,355,989 |
Bank of America | ||
Derivative [Line Items] | ||
Notional amount | 2,038,746 | 2,680,543 |
Fair value | 36,929 | 80,692 |
Barclays | ||
Derivative [Line Items] | ||
Notional amount | 6,458,090 | 5,753,868 |
Fair value | 191,581 | 217,536 |
Canadian Imperial Bank of Commerce | ||
Derivative [Line Items] | ||
Notional amount | 4,080,916 | 4,110,525 |
Fair value | 110,616 | 154,917 |
Citibank, N.A. | ||
Derivative [Line Items] | ||
Notional amount | 3,917,488 | 4,075,544 |
Fair value | 41,372 | 109,046 |
Credit Suisse | ||
Derivative [Line Items] | ||
Notional amount | 4,442,148 | 4,526,414 |
Fair value | 21,101 | 116,659 |
J.P. Morgan | ||
Derivative [Line Items] | ||
Notional amount | 4,962,629 | 4,703,234 |
Fair value | 20,842 | 151,651 |
Morgan Stanley | ||
Derivative [Line Items] | ||
Notional amount | 2,535,021 | 1,886,995 |
Fair value | 25,478 | 41,253 |
Royal Bank of Canada | ||
Derivative [Line Items] | ||
Notional amount | 1,776,753 | 2,565,202 |
Fair value | 35,503 | 101,511 |
Societe Generale | ||
Derivative [Line Items] | ||
Notional amount | 1,731,241 | 3,280,286 |
Fair value | 21,407 | 139,101 |
SunTrust | ||
Derivative [Line Items] | ||
Notional amount | 2,175,542 | 2,051,229 |
Fair value | 53,077 | 74,910 |
Wells Fargo | ||
Derivative [Line Items] | ||
Notional amount | 5,106,215 | 4,221,408 |
Fair value | 113,688 | 163,520 |
Exchange Traded | ||
Derivative [Line Items] | ||
Notional amount | 166,248 | 191,948 |
Fair value | $ 1,364 | $ 5,193 |
Notes Payable and Amounts Due_3
Notes Payable and Amounts Due Under Repurchase Agreements (Schedule of Notes Payable) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 16, 2017 |
Debt Instrument [Line Items] | |||
Notes payable | $ 495,388 | $ 495,116 | |
June 2027 Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | 500,000 | 500,000 | $ 500,000 |
Unamortized debt issue costs | (4,350) | (4,607) | |
Unamortized discount | $ (262) | $ (277) | $ (300) |
Notes Payable and Amounts Due_4
Notes Payable and Amounts Due Under Repurchase Agreements (2027 Notes Narrative) (Details) - June 2027 Notes - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 16, 2017 |
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 500,000 | $ 500,000 | $ 500,000 |
Interest rate | 5.00% | ||
Unamortized discount | $ 262 | $ 277 | $ 300 |
Debt financing costs | $ 5,800 |
Notes Payable and Amounts Due_5
Notes Payable and Amounts Due Under Repurchase Agreements (Repurchase Agreements Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Debt Disclosure [Abstract] | ||||
Repurchase agreement, average borrowings | $ 32.8 | $ 20.4 | $ 28.7 | $ 54.6 |
Repurchase agreement, maximum amount borrowed | $ 186.4 | $ 243.6 | ||
Repurchase agreement, weighted average interest rate | 1.89% | 4.62% | 1.73% | 3.04% |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Millions | Jun. 30, 2020USD ($) |
Limited Partnerships | |
Other Commitments [Line Items] | |
Unfunded commitments | $ 41.2 |
Earnings (Loss) Per Common Sh_3
Earnings (Loss) Per Common Share and Stockholders' Equity (Schedule of Earnings (Loss) Per Common Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share, Basic and Diluted [Line Items] | ||||
Net income (loss) available to common stockholders - numerator for earnings (loss) per common share | $ (253,379) | $ 18,590 | $ (17,043) | $ (11,420) |
Weighted average common shares outstanding (shares) | 91,803,312 | 91,103,151 | 91,723,814 | 90,993,810 |
Denominator for earnings (loss) per common share - assuming dilution (shares) | 92,026,853 | 91,785,223 | 92,023,966 | 91,765,098 |
Earnings (loss) per common share | $ (2.76) | $ 0.20 | $ (0.19) | $ (0.13) |
Earnings (loss) per common share - assuming dilution | $ (2.76) | $ 0.20 | $ (0.19) | $ (0.13) |
Stock Options and Deferred Compensation Agreements | ||||
Earnings Per Share, Basic and Diluted [Line Items] | ||||
Effect of dilutive securities: share-based payment arrangements (shares) | 63,265 | 333,780 | 100,277 | 394,390 |
Restricted Stock and Restricted Stock Units | ||||
Earnings Per Share, Basic and Diluted [Line Items] | ||||
Effect of dilutive securities: share-based payment arrangements (shares) | 160,276 | 348,292 | 199,875 | 376,898 |
Stock Options | ||||
Earnings Per Share, Basic and Diluted [Line Items] | ||||
Antidilutive securities excluded from computation of earnings (loss) per common share, amount (shares) | 519,285 | 0 | 50,000 | 0 |
Antidilutive securities excluded from computation of earnings (loss) per common share, exercise price | $ 26.70 | |||
Minimum | Stock Options | ||||
Earnings Per Share, Basic and Diluted [Line Items] | ||||
Antidilutive securities excluded from computation of earnings (loss) per common share, exercise price | $ 24.79 | |||
Maximum | Stock Options | ||||
Earnings Per Share, Basic and Diluted [Line Items] | ||||
Antidilutive securities excluded from computation of earnings (loss) per common share, exercise price | $ 26.70 |
Earnings (Loss) Per Common Sh_4
Earnings (Loss) Per Common Share and Stockholders' Equity (Stockholders' Equity) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 10, 2020 | Jun. 01, 2020 | Mar. 01, 2020 | Nov. 21, 2019 | Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 |
Class of Stock [Line Items] | ||||||||
Proceeds from issuance of preferred stock, net | $ 290,260 | $ 0 | ||||||
Dividends paid on preferred stock | $ 5,950 | $ 12,561 | ||||||
Preferred Stock, Series B | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, shares issued | 12,000 | 12,000 | 12,000 | |||||
Preferred stock, dividend rate, percentage | 6.625% | |||||||
Preferred stock, par value per share | $ 1 | $ 1 | $ 1 | |||||
Preferred stock, liquidation preference, per share | $ 25,000 | |||||||
Proceeds from issuance of preferred stock, net | $ 290,300 | |||||||
Preferred Stock, Series A | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, shares issued | 16,000 | 16,000 | 16,000 | 16,000 | ||||
Preferred stock, dividend rate, percentage | 5.95% | |||||||
Preferred stock, par value per share | $ 1 | $ 1 | $ 1 | $ 1 | ||||
Preferred stock, liquidation preference, per share | $ 25,000 | |||||||
Proceeds from issuance of preferred stock, net | $ 388,900 | |||||||
Dividends paid on preferred stock | $ 6,000 | $ 6,600 |