Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | May 04, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
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 | 93,062,970 | |
Entity Central Index Key | 0001039828 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Investments: | ||
Fixed maturity securities, available for sale, at fair value (amortized cost of $49,364,915 as of 2022 and $46,999,183 as of 2021; allowance for credit losses of $6,577 as of 2022 and $2,846 as of 2021) | $ 49,662,120 | $ 51,305,943 |
Mortgage loans on real estate (net of allowance for credit losses of $29,269 as of 2022 and $24,024 as of 2021) | 5,734,872 | 5,687,998 |
Derivative instruments | 642,413 | 1,277,480 |
Other investments (2022 and 2021 include $350,621 and $168,711 related to consolidated variable interest entities) | 1,999,113 | 1,767,144 |
Total investments | 58,548,706 | 60,376,504 |
Cash and cash equivalents (2022 and 2021 include $30,067 and $23,763 related to consolidated variable interest entities) | 1,933,899 | 4,508,982 |
Coinsurance deposits (net of allowance for credit losses of $2,862 as of 2022 and $2,264 as of 2021) | 8,713,069 | 8,850,608 |
Accrued investment income (2022 and 2021 include $908 and $3 related to consolidated variable interest entities) | 483,902 | 445,097 |
Deferred policy acquisition costs | 2,840,938 | 2,222,769 |
Deferred sales inducements | 1,957,518 | 1,546,073 |
Income taxes recoverable | 166,067 | 166,586 |
Other assets (2022 and 2021 include $2,272 and $1,524 related to consolidated variable interest entities) | 255,245 | 232,490 |
Total assets | 74,899,344 | 78,349,109 |
Liabilities: | ||
Policy benefit reserves | 63,730,995 | 65,477,778 |
Other policy funds and contract claims | 425,308 | 226,844 |
Notes payable | 496,425 | 496,250 |
Subordinated debentures | 78,502 | 78,421 |
Deferred income taxes | 219,013 | 541,972 |
Funds withheld for reinsurance liabilities | 3,003,062 | 3,124,740 |
Other liabilities (2022 and 2021 include $64,598 and $20,168 related to consolidated variable interest entities) | 1,773,869 | 2,079,977 |
Total liabilities | 69,727,174 | 72,025,982 |
Stockholders' equity: | ||
Common stock; par value $1 per share; 200,000,000 shares authorized; issued and outstanding: 2022 - 95,019,904 shares (excluding 14,326,518 treasury shares); 2021 - 92,513,517 shares (excluding 9,936,715 treasury shares) | 95,020 | 92,514 |
Additional paid-in capital | 1,689,606 | 1,614,374 |
Accumulated other comprehensive income | 63,706 | 1,848,789 |
Retained earnings | 3,322,726 | 2,767,422 |
Total stockholders' equity attributable to American Equity Investment Life Holding Company | 5,171,086 | 6,323,127 |
Noncontrolling interests | 1,084 | 0 |
Total stockholders' equity | 5,172,170 | 6,323,127 |
Total liabilities and stockholders' equity | 74,899,344 | 78,349,109 |
Variable Interest Entities | ||
Investments: | ||
Real estate investments related to consolidated variable interest entities | 510,188 | 337,939 |
Other investments (2022 and 2021 include $350,621 and $168,711 related to consolidated variable interest entities) | 350,621 | 168,711 |
Cash and cash equivalents (2022 and 2021 include $30,067 and $23,763 related to consolidated variable interest entities) | 30,067 | 23,763 |
Accrued investment income (2022 and 2021 include $908 and $3 related to consolidated variable interest entities) | 908 | 3 |
Other assets (2022 and 2021 include $2,272 and $1,524 related to consolidated variable interest entities) | 2,272 | 1,524 |
Total assets | 894,056 | 531,940 |
Liabilities: | ||
Other liabilities (2022 and 2021 include $64,598 and $20,168 related to consolidated variable interest entities) | 64,598 | 20,168 |
Total liabilities | 64,598 | 20,168 |
Preferred Stock, Series A | ||
Stockholders' equity: | ||
Preferred stock | 16 | 16 |
Preferred Stock, Series B | ||
Stockholders' equity: | ||
Preferred stock | $ 12 | $ 12 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fixed maturity securities, available for sale, amortized cost | $ 49,364,915 | $ 46,999,183 |
Fixed maturity securities, available for sale, allowance for credit losses | 6,577 | 2,846 |
Mortgage loans on real estate, allowance for credit losses | 29,269 | 24,024 |
Other investments | 1,999,113 | 1,767,144 |
Cash and cash equivalents | 1,933,899 | 4,508,982 |
Coinsurance deposits, allowance for credit losses | 2,862 | 2,264 |
Accrued investment income | 483,902 | 445,097 |
Other assets | 255,245 | 232,490 |
Other liabilities | $ 1,773,869 | $ 2,079,977 |
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 | 95,019,904 | 92,513,517 |
Common stock, shares outstanding | 95,019,904 | 92,513,517 |
Treasury stock, shares | 14,326,518 | 9,936,715 |
Variable Interest Entities | ||
Other investments | $ 350,621 | $ 168,711 |
Cash and cash equivalents | 30,067 | 23,763 |
Accrued investment income | 908 | 3 |
Other assets | 2,272 | 1,524 |
Other liabilities | $ 64,598 | $ 20,168 |
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 | $ 1 |
Preferred stock, aggregate liquidation preference | $ 300,000 | $ 300,000 |
Preferred stock, shares authorized | 12,000 | 12,000 |
Preferred stock, shares issued | 12,000 | 12,000 |
Preferred stock, shares outstanding | 12,000 | 12,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues: | ||
Premiums and other considerations | $ 10,078 | $ 13,213 |
Annuity product charges | 52,355 | 60,082 |
Net investment income | 567,423 | 497,190 |
Change in fair value of derivatives | (477,519) | 396,305 |
Net realized losses on investments | (13,127) | (4,583) |
Other revenue | 8,589 | 0 |
Total revenues | 147,799 | 962,207 |
Benefits and expenses: | ||
Insurance policy benefits and change in future policy benefits | 12,638 | 16,424 |
Interest sensitive and index product benefits | 372,662 | 476,595 |
Amortization of deferred sales inducements | 143,545 | 122,975 |
Change in fair value of embedded derivatives | (1,393,649) | (282,413) |
Interest expense on notes payable | 6,425 | 6,393 |
Interest expense on subordinated debentures | 1,317 | 1,326 |
Amortization of deferred policy acquisition costs | 225,426 | 203,823 |
Other operating costs and expenses | 58,120 | 55,865 |
Total benefits and expenses | (573,516) | 600,988 |
Income before income taxes | 721,315 | 361,219 |
Income tax expense | 155,092 | 78,535 |
Net income | 566,223 | 282,684 |
Less: Net income available to noncontrolling interests | 0 | 0 |
Net income available to American Equity Investment Life Holding Company stockholders | 566,223 | 282,684 |
Less: Preferred stock dividends | 10,919 | 10,919 |
Net income available to American Equity Investment Life Holding Company common stockholders | $ 555,304 | $ 271,765 |
Earnings per common share | $ 5.73 | $ 2.84 |
Earnings per common share - assuming dilution | $ 5.67 | $ 2.82 |
Weighted average common shares outstanding: earnings per common share | 96,866,125 | 95,734,851 |
Weighted average common shares outstanding: earnings per common share - assuming dilution | 97,953,313 | 96,215,665 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Net income | $ 566,223 | $ 282,684 | |
Other comprehensive loss: | |||
Change in net unrealized investment gains/losses (1) | [1] | (2,263,915) | (880,509) |
Reclassification of unrealized investment gains/losses to net income (1) | [1] | 823 | (3,411) |
Other comprehensive loss before income tax | (2,263,092) | (883,920) | |
Income tax effect related to other comprehensive loss | 478,009 | 185,623 | |
Other comprehensive loss | (1,785,083) | (698,297) | |
Comprehensive loss | $ (1,218,860) | $ (415,613) | |
[1] | Net of related adjustments to amortization of deferred sales inducements, deferred policy acquisition costs and policy benefit reserves. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Preferred Stock | Common Stock | Common StockCommon Stock | Additional Paid-In Capital | Additional Paid-In CapitalCommon Stock | Accumulated Other Comprehensive Income | Retained Earnings | Noncontrolling Interest |
Stockholders' equity at beginning of period at Dec. 31, 2020 | $ 6,348,988 | $ 28 | $ 95,721 | $ 1,681,127 | $ 2,203,557 | $ 2,368,555 | $ 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income for period | 282,684 | 282,684 | ||||||||
Other comprehensive loss | (698,297) | (698,297) | ||||||||
Share-based compensation | 4,296 | 4,296 | ||||||||
Issuance of stock | $ 5,006 | $ 402 | $ 4,604 | |||||||
Treasury stock acquired, common | (2,998) | (640) | (2,358) | |||||||
Dividends on preferred stock | (10,919) | (10,919) | ||||||||
Stockholders' equity at end of period at Mar. 31, 2021 | 5,928,760 | 28 | 95,483 | 1,687,669 | 1,505,260 | 2,640,320 | 0 | |||
Stockholders' equity at beginning of period at Dec. 31, 2021 | 6,323,127 | 28 | 92,514 | 1,614,374 | 1,848,789 | 2,767,422 | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income for period | 566,223 | 566,223 | ||||||||
Other comprehensive loss | (1,785,083) | (1,785,083) | ||||||||
Share-based compensation | 5,596 | 5,596 | ||||||||
Issuance of stock | $ 251,538 | $ 6,958 | $ 244,580 | |||||||
Treasury stock acquired, common | (179,396) | (4,452) | (174,944) | |||||||
Dividends on preferred stock | (10,919) | (10,919) | ||||||||
Contributions from noncontrolling interests | 1,084 | 1,084 | ||||||||
Stockholders' equity at end of period at Mar. 31, 2022 | $ 5,172,170 | $ 28 | $ 95,020 | $ 1,689,606 | $ 63,706 | $ 3,322,726 | $ 1,084 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating activities | ||
Net income | $ 566,223 | $ 282,684 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Interest sensitive and index product benefits | 372,662 | 476,595 |
Amortization of deferred sales inducements | 143,545 | 122,975 |
Annuity product charges | (52,355) | (60,082) |
Change in fair value of embedded derivatives | (1,393,649) | (282,413) |
Change in traditional life and accident and health insurance reserves | (12,779) | 5,374 |
Policy acquisition costs deferred | (56,569) | (97,004) |
Amortization of deferred policy acquisition costs | 225,426 | 203,823 |
Provision for depreciation and other amortization | 2,250 | 1,518 |
Amortization of discounts and premiums on investments | (258) | 8,097 |
Realized gains/losses on investments | 13,127 | 4,583 |
Distributions from equity method investments | 0 | 7,631 |
Change in fair value of derivatives | 477,519 | (396,305) |
Deferred income taxes | 155,050 | 58,514 |
Share-based compensation | 5,596 | 4,296 |
Change in accrued investment income | (38,805) | (12,030) |
Change in income taxes recoverable/payable | 519 | 20,461 |
Change in other assets | (21,480) | (1,166) |
Change in other policy funds and contract claims | 197,191 | (7,571) |
Change in collateral held for derivatives | (584,969) | 236,558 |
Change in funds withheld from reinsurers | 80,767 | 0 |
Change in other liabilities | 96,591 | (92,813) |
Other | (75,670) | (11,844) |
Net cash provided by operating activities | 99,932 | 471,881 |
Sales, maturities, or repayments of investments: | ||
Fixed maturity securities, available for sale | 1,779,328 | 1,116,965 |
Mortgage loans on real estate | 536,216 | 105,378 |
Derivative instruments | 280,510 | 400,322 |
Other investments | 26,376 | 4,189 |
Acquisitions of investments: | ||
Fixed maturity securities, available for sale | (3,924,643) | (757,301) |
Mortgage loans on real estate | (585,867) | (228,049) |
Real estate investments acquired | (168,088) | 0 |
Derivative instruments | (185,486) | (165,390) |
Other investments | (202,160) | (351,661) |
Purchases of property, furniture and equipment | (2,424) | (3,724) |
Net cash provided by (used in) investing activities | (2,446,238) | 120,729 |
Financing activities | ||
Receipts credited to annuity policyholder account balances | 888,488 | 2,420,777 |
Coinsurance deposits | 10,757 | 218,987 |
Return of annuity policyholder account balances | (1,198,638) | (1,250,244) |
Acquisition of treasury stock | (179,396) | (2,998) |
Proceeds from issuance of common stock, net | 251,538 | 5,006 |
Change in checks in excess of cash balance | 9,393 | 18,384 |
Dividends paid on preferred stock | (10,919) | (10,919) |
Net cash provided by (used in) financing activities | (228,777) | 1,398,993 |
Increase (decrease) in cash and cash equivalents | (2,575,083) | 1,991,603 |
Cash and cash equivalents at beginning of period | 4,508,982 | 9,095,522 |
Cash and cash equivalents at end of period | 1,933,899 | 11,087,125 |
Cash paid during period for interest: | ||
Interest expense | 1,250 | 1,250 |
Cash paid during period for income taxes: | ||
Income tax refunds received | 0 | (440) |
Non-cash operating activity: | ||
Deferral of sales inducements | $ 23,446 | $ 24,850 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
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. The consolidated financial statements include variable interest entities (“VIE”) in which we are the primary beneficiary. All of the adjustments in the consolidated financial statements are 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 month period ended March 31, 2022 are not necessarily indicative of the results that may be expected for any other period, including for the year ended December 31, 2022. All significant intercompany accounts and transactions have been eliminated. The preparation of financial statements requires management estimates and assumptions using subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Our actual results could differ from these 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, 2021. Federal Home Loan Bank During the first quarter of 2022, American Equity Investment Life Insurance Company (“American Equity Life”) became a member of the Federal Home Loan Bank (“FHLB”) which provides access to collateralized borrowings and other FHLB products. We may also issue funding agreements to the FHLB. Both the collateralized borrowings and funding agreements require us to pledge qualified assets as collateral. Obligations arising from funding agreements are used in investment spread activities and reported in Other policy funds and contract claims on the Consolidated Balance Sheets. See Note 8 - Commitments and Contingencies for more information on the funding agreements issued. Entering into FHLB membership, borrowings and funding agreements requires the ownership of FHLB stock and the pledge of assets as collateral. See Note 2 - Fair Value of Financial Instruments and Note 8 - Commitments and Contingencies for more information on the common stock purchased and assets pledged as collateral. Adopted Accounting Pronouncements There were no accounting pronouncements that were adopted during the current period. 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, 2023, the transition date (the remeasurement date) is January 1, 2021. 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 | 3 Months Ended |
Mar. 31, 2022 | |
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: March 31, 2022 December 31, 2021 Carrying Fair Value Carrying Fair Value (Dollars in thousands) Assets Fixed maturity securities, available for sale $ 49,662,120 $ 49,662,120 $ 51,305,943 $ 51,305,943 Mortgage loans on real estate 5,734,872 5,792,356 5,687,998 5,867,227 Real estate investments 510,188 510,188 337,939 337,939 Derivative instruments 642,413 642,413 1,277,480 1,277,480 Other investments 1,999,113 2,057,113 1,767,144 1,767,144 Cash and cash equivalents 1,933,899 1,933,899 4,508,982 4,508,982 Coinsurance deposits 8,713,069 8,002,548 8,850,608 7,938,292 Liabilities Policy benefit reserves 63,342,037 56,478,030 65,076,041 56,375,076 Single premium immediate annuity (SPIA) benefit reserves 224,618 234,189 226,207 235,891 Other policy funds - FHLB 200,000 200,000 — — Notes payable 496,425 523,085 496,250 569,485 Subordinated debentures 78,502 80,126 78,421 93,721 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. Our assets and liabilities which are measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021 are presented below based on the fair value hierarchy levels: Total Quoted Significant Significant (Dollars in thousands) March 31, 2022 Assets Fixed maturity securities, available for sale: United States Government full faith and credit $ 38,666 $ 33,850 $ 4,816 $ — United States Government sponsored agencies 174,845 — 174,845 — United States municipalities, states and territories 3,812,510 — 3,812,510 — Foreign government obligations 405,166 — 405,166 — Corporate securities 33,873,527 31,499 33,842,028 — Residential mortgage backed securities 1,210,559 — 1,210,559 — Commercial mortgage backed securities 4,769,867 — 4,769,867 — Other asset backed securities 5,376,980 — 5,376,980 — Other investments: equity securities 29,303 — 25,436 3,867 Real estate investments 510,188 — — 510,188 Derivative instruments 642,413 — 642,413 — Cash and cash equivalents 1,933,899 1,933,899 — — $ 52,777,923 $ 1,999,248 $ 50,264,620 $ 514,055 Liabilities Funds withheld liability - embedded derivative $ (204,806) $ — $ (204,806) $ — Fixed index annuities - embedded derivatives 6,770,915 — — 6,770,915 $ 6,566,109 $ — $ (204,806) $ 6,770,915 December 31, 2021 Assets Fixed maturity securities, available for sale: United States Government full faith and credit $ 37,793 $ 32,737 $ 5,056 $ — United States Government sponsored agencies 1,040,953 — 1,040,953 — United States municipalities, states and territories 3,927,201 — 3,927,201 — Foreign government obligations 402,545 — 402,545 — Corporate securities 34,660,234 32,700 34,627,534 — Residential mortgage backed securities 1,125,049 — 1,125,049 — Commercial mortgage backed securities 4,840,311 — 4,840,311 — Other asset backed securities 5,271,857 — 5,271,857 — Other investments: equity securities 12,226 — 5,877 6,349 Real estate investments 337,939 — — 337,939 Derivative instruments 1,277,480 — 1,277,480 — Cash and cash equivalents 4,508,982 4,508,982 — — $ 57,442,570 $ 4,574,419 $ 52,523,863 $ 344,288 Liabilities Funds withheld liability - embedded derivative $ (2,362) $ — $ (2,362) $ — Fixed index annuities - embedded derivatives 7,964,961 — — 7,964,961 $ 7,962,599 $ — $ (2,362) $ 7,964,961 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 into 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 March 31, 2022 and December 31, 2021. 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. Real estate investments The fair values of residential real estate investments are initially calculated based on the cost to purchase the properties and subsequently calculated based on a discounted cash flow methodology. Under the discounted cash flow method, net operating income is forecasted assuming a 10-year hold period commencing as of the valuation date. An additional year is forecast in order to determine the residual sale price at the end of the hold period, using a residual (terminal) capitalization rate. The significant inputs into the fair value calculation under the discounted cash flow method include the residual capitalization rate and discount rate. These inputs are unobservable market data; therefore, fair value of residential real estate investments falls into Level 3 in the fair value hierarchy. At March 31, 2022, the residual capitalization rates used in the fair value calculations ranged from 4.75% to 6.50% with an average rate of 5.47%. At March 31, 2022, the discount rates used in the fair value calculations ranged from 6.00% to 7.75% with an average rate of 6.72%. 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 Equity securities are the only financial instruments included in other investments that are measured at fair value on a recurring basis. The fair value for these securities are determined using the same methods discussed above for fixed maturity securities. Financial instruments included in other investments that are not measured at fair value on a recurring basis are FHLB common stock, equity method investments, short-term loans and company owned life insurance ("COLI"). FHLB common stock is carried at cost which approximates fair value. FHLB common stock was $18.0 million as of March 31, 2022 and falls within Level 2 of the fair value hierarchy. The fair values for most 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 for one of our equity method investments is based on earnings multiples derived by comparing valuations of similar entities relative to earnings data. The fair value of this equity method investment falls within Level 3 of the fair value hierarchy. The fair value of equity method investments was $717.9 million and $520.1 million as of March 31, 2022 and December 31, 2021, respectively. Due to the short-term nature of the investment, the fair value of our short-term loans approximates the carrying value. The fair value of short-term loans was $320.0 million and $320.0 million as of March 31, 2022 and December 31, 2021, respectively. Our short-term loans fall within Level 2 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. The fair value of COLI was $387.7 million and $384.3 million as of March 31, 2022 and December 31, 2021, respectively. 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. 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. Other policy funds - FHLB The fair values of the Company's funding agreements with the FHLB are estimated using discounted cash flow calculations based on interest rates currently being offered for similar agreements with similar maturities. 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. Funds withheld liability - embedded derivative We estimate the fair value of the embedded derivative based on the fair value of the assets supporting the funds withheld payable under modified coinsurance reinsurance agreements. The fair value of the embedded derivative is classified as Level 2 based on valuation methods used for the assets held supporting the reinsurance agreements. 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 March 31, 2022 and December 31, 2021, we utilized an estimate of 2.10% 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 updated 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) March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 1 - 5 3.13% 3.04% 2.20% 2.19% 6 - 10 2.91% 2.84% 2.27% 2.26% 11 - 15 4.32% 4.47% 2.11% 2.14% 16 - 20 9.30% 8.93% 1.30% 1.33% 20+ 4.97% 4.93% —% —% Lapse rates are generally expected to increase as surrender charge percentages decrease for policies without a lifetime income benefit rider. 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 assets and liabilities, which are measured at fair value on a recurring basis using significant unobservable inputs for the three months ended March 31, 2022 and 2021: Three Months Ended 2022 2021 (Dollars in thousands) Other investments: equity securities Beginning balance $ 6,349 $ — Transfers in — — Total realized/unrealized gains (losses): Included in net income (2,482) — Included in other comprehensive income (loss) — — Ending balance $ 3,867 $ — Real estate investments Beginning balance $ 337,939 $ — Purchases and sales, net 168,088 — Change in fair value 4,161 — Ending balance $ 510,188 $ — Fixed index annuities - embedded derivatives Beginning balance $ 7,964,961 $ 7,938,281 Premiums less benefits 114,077 119,791 Change in fair value, net (1,308,123) (377,121) Ending balance $ 6,770,915 $ 7,680,951 The fair value of our fixed index annuities embedded derivatives is net of coinsurance ceded of $1,048.7 million and $1,245.0 million as of March 31, 2022 and December 31, 2021, 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. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2022 | |
Investments [Abstract] | |
Investments | Investments At March 31, 2022 and December 31, 2021, the amortized cost and fair value of fixed maturity securities were as follows: Amortized Gross Gross Allowance for Credit Losses Fair Value (Dollars in thousands) March 31, 2022 Fixed maturity securities, available for sale: United States Government full faith and credit $ 39,302 $ 88 $ (724) $ — $ 38,666 United States Government sponsored agencies 158,596 18,473 (2,224) — 174,845 United States municipalities, states and territories 3,694,146 214,986 (94,613) (2,009) 3,812,510 Foreign government obligations 415,227 11,175 (21,236) — 405,166 Corporate securities 33,550,018 1,311,404 (984,070) (3,825) 33,873,527 Residential mortgage backed securities 1,195,436 38,688 (22,822) (743) 1,210,559 Commercial mortgage backed securities 4,873,980 23,338 (127,451) — 4,769,867 Other asset backed securities 5,438,210 53,355 (114,585) — 5,376,980 $ 49,364,915 $ 1,671,507 $ (1,367,725) $ (6,577) $ 49,662,120 December 31, 2021 Fixed maturity securities, available for sale: United States Government full faith and credit $ 37,109 $ 718 $ (34) $ — $ 37,793 United States Government sponsored agencies 1,008,920 32,123 (90) — 1,040,953 United States municipalities, states and territories 3,495,563 437,456 (3,042) (2,776) 3,927,201 Foreign government obligations 380,646 22,742 (843) — 402,545 Corporate securities 31,084,629 3,614,047 (38,442) — 34,660,234 Residential mortgage backed securities 1,056,778 70,434 (2,093) (70) 1,125,049 Commercial mortgage backed securities 4,708,878 149,152 (17,719) — 4,840,311 Other asset backed securities 5,226,660 95,304 (50,107) — 5,271,857 $ 46,999,183 $ 4,421,976 $ (112,370) $ (2,846) $ 51,305,943 (1) Amortized cost excludes accrued interest receivable of $440.5 million and $400.7 million as of March 31, 2022 and December 31, 2021, respectively. (2) Gross unrealized losses are net of allowance for credit losses. The amortized cost and fair value of fixed maturity securities at March 31, 2022, 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 Fair Value (Dollars in thousands) Due in one year or less $ 1,285,124 $ 1,294,473 Due after one year through five years 8,050,284 8,089,245 Due after five years through ten years 7,228,862 7,278,595 Due after ten years through twenty years 10,741,247 11,453,442 Due after twenty years 10,551,772 10,188,959 37,857,289 38,304,714 Residential mortgage backed securities 1,195,436 1,210,559 Commercial mortgage backed securities 4,873,980 4,769,867 Other asset backed securities 5,438,210 5,376,980 $ 49,364,915 $ 49,662,120 Net unrealized gains on available for sale fixed maturity securities reported as a separate component of stockholders' equity were comprised of the following: March 31, 2022 December 31, 2021 (Dollars in thousands) Net unrealized gains on available for sale fixed maturity securities $ 295,235 $ 4,309,606 Adjustments for assumed changes in amortization of deferred policy acquisition costs, deferred sales inducements and policy benefit reserves (242,590) (1,993,869) Deferred income tax valuation allowance reversal 22,534 22,534 Deferred income tax expense (11,473) (489,482) Net unrealized gains reported as accumulated other comprehensive income $ 63,706 $ 1,848,789 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 98% of our fixed maturity portfolio rated investment grade at both March 31, 2022 and December 31, 2021, respectively. The following table summarizes the credit quality, as determined by NAIC designation, of our fixed maturity portfolio as of the dates indicated: March 31, 2022 December 31, 2021 NAIC Amortized Fair Amortized Fair (Dollars in thousands) 1 $ 27,701,587 $ 28,064,072 $ 26,157,531 $ 28,785,839 2 20,740,585 20,701,013 19,758,594 21,396,020 3 772,726 748,881 909,311 941,210 4 117,725 122,867 133,070 147,160 5 3,259 3,259 16,496 15,357 6 29,033 22,028 24,181 20,357 $ 49,364,915 $ 49,662,120 $ 46,999,183 $ 51,305,943 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 3,781 and 1,427 securities, respectively) have been in a continuous unrealized loss position, at March 31, 2022 and December 31, 2021: Less than 12 months 12 months or more Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Dollars in thousands) March 31, 2022 Fixed maturity securities, available for sale: United States Government full faith and credit $ 27,565 $ (686) $ 434 $ (38) $ 27,999 $ (724) United States Government sponsored agencies 11,468 (2,224) — — 11,468 (2,224) United States municipalities, states and territories 1,161,530 (94,117) 18,344 (2,505) 1,179,874 (96,622) Foreign government obligations 252,267 (21,236) — — 252,267 (21,236) Corporate securities 12,808,738 (965,862) 131,098 (22,033) 12,939,836 (987,895) Residential mortgage backed securities 501,285 (21,186) 32,665 (2,379) 533,950 (23,565) Commercial mortgage backed securities 3,217,274 (111,459) 88,148 (15,992) 3,305,422 (127,451) Other asset backed securities 2,503,524 (50,385) 1,731,947 (64,200) 4,235,471 (114,585) $ 20,483,651 $ (1,267,155) $ 2,002,636 $ (107,147) $ 22,486,287 $ (1,374,302) December 31, 2021 Fixed maturity securities, available for sale: United States Government full faith and credit $ 1,007 $ (34) $ — $ — $ 1,007 $ (34) United States Government sponsored agencies 759,970 (90) — — 759,970 (90) United States municipalities, states and territories 168,942 (2,468) 15,711 (3,350) 184,653 (5,818) Foreign government obligations 42,861 (843) — — 42,861 (843) Corporate securities 2,375,603 (30,070) 116,819 (8,372) 2,492,422 (38,442) Residential mortgage backed securities 250,964 (1,408) 26,917 (755) 277,881 (2,163) Commercial mortgage backed securities 784,464 (5,500) 142,224 (12,219) 926,688 (17,719) Other asset backed securities 1,351,324 (11,345) 1,771,182 (38,762) 3,122,506 (50,107) $ 5,735,135 $ (51,758) $ 2,072,853 $ (63,458) $ 7,807,988 $ (115,216) (1) Unrealized losses have not been reduced to reflect the allowance for credit losses of $6.6 million and $2.8 million as of March 31, 2022 and December 31, 2021, respectively. The unrealized losses at March 31, 2022 are principally related to the timing of the purchases of certain securities, which carry less yield than those available at March 31, 2022. Approximately 97% and 85% of the unrealized losses on fixed maturity securities shown in the above table for March 31, 2022 and December 31, 2021, 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 the consolidated statements of operations. Changes in net unrealized gains/losses on investments for the three months ended March 31, 2022 and 2021 are as follows: Three Months Ended 2022 2021 (Dollars in thousands) Fixed maturity securities available for sale carried at fair value $ (4,014,371) $ (1,661,361) Adjustment for effect on other balance sheet accounts: Deferred policy acquisition costs, deferred sales inducements and policy benefit reserves 1,751,279 777,441 Deferred income tax asset/liability 478,009 185,623 2,229,288 963,064 Change in net unrealized gains/losses on investments carried at fair value $ (1,785,083) $ (698,297) Proceeds from sales of available for sale fixed maturity securities for the three months ended March 31, 2022 and 2021 were $1.2 billion and $122.2 million, respectively. Scheduled principal repayments, calls and tenders for available for sale fixed maturity securities for the three months ended March 31, 2022 and 2021 were $0.6 billion and $1.0 billion, respectively. Net realized losses on investments for the three months ended March 31, 2022 and 2021, are as follows: Three Months Ended 2022 2021 (Dollars in thousands) Available for sale fixed maturity securities: Gross realized gains $ 3,465 $ 2,367 Gross realized losses (2,006) (8,196) Net credit loss (provision) release (7,356) (1,437) (5,897) (7,266) Mortgage loans on real estate: Decrease (increase) in allowance for credit losses (5,245) 2,515 Gain (loss) on sale of mortgage loans (1,985) 168 (7,230) 2,683 $ (13,127) $ (4,583) Realized losses on available for sale fixed maturity securities in 2022 and 2021 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 pertinent 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 March 31, 2022 United States Corporate Securities Commercial Mortgage Backed Securities Residential Mortgage Backed Securities Other Asset Backed Securities Total (Dollars in thousands) Beginning balance $ 2,776 $ — $ — $ 70 $ — $ 2,846 Additions for credit losses not previously recorded — 3,825 — 336 — 4,161 Change in allowance on securities with previous allowance (767) — — 337 — (430) Reduction for securities sold during the period — — — — — — Ending balance $ 2,009 $ 3,825 $ — $ 743 $ — $ 6,577 Three Months Ended March 31, 2021 United States Corporate Securities Commercial Mortgage Backed Securities Residential Mortgage Backed Securities Other Asset Backed Securities Total (Dollars in thousands) Beginning balance $ 2,844 $ 60,193 $ — $ 1,734 $ — $ 64,771 Additions for credit losses not previously recorded — 705 — 111 — 816 Change in allowance on securities with previous allowance (53) 1,327 — (653) — 621 Reduction for securities sold during the period — (6,510) — — — (6,510) Ending balance $ 2,791 $ 55,715 $ — $ 1,192 $ — $ 59,698 |
Mortgage Loans on Real Estate
Mortgage Loans on Real Estate | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Mortgage Loans on Real Estate | Mortgage Loans on Real Estate Our financing receivables consist of the following three portfolio segments: commercial mortgage loans, agricultural mortgage loans and residential mortgage loans. Our mortgage loan portfolios are summarized in the following table. There were commitments outstanding of $444.2 million at March 31, 2022. March 31, 2022 December 31, 2021 (Dollars in thousands) Commercial mortgage loans: Principal outstanding $ 3,610,872 $ 3,633,131 Deferred fees and costs, net (4,873) (4,629) Amortized cost 3,605,999 3,628,502 Valuation allowance (24,587) (17,926) Commercial mortgage loans, carrying value 3,581,412 3,610,576 Agricultural mortgage loans: Principal outstanding 464,431 408,135 Deferred fees and costs, net (1,344) (1,136) Amortized cost 463,087 406,999 Valuation allowance (558) (519) Agricultural mortgage loans, carrying value 462,529 406,480 Residential mortgage loans: Principal outstanding 1,669,897 1,652,910 Deferred fees and costs, net 1,432 1,468 Unamortized discounts and premiums, net 23,726 22,143 Amortized cost 1,695,055 1,676,521 Valuation allowance (4,124) (5,579) Residential mortgage loans, carrying value 1,690,931 1,670,942 Mortgage loans, carrying value $ 5,734,872 $ 5,687,998 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: March 31, 2022 December 31, 2021 Principal Percent Principal Percent (Dollars in thousands) Geographic distribution East $ 596,667 16.5 % $ 614,406 16.9 % Middle Atlantic 296,015 8.2 % 293,494 8.1 % Mountain 459,562 12.7 % 452,818 12.5 % New England 59,996 1.7 % 60,172 1.6 % Pacific 884,983 24.5 % 863,879 23.8 % South Atlantic 758,905 21.0 % 785,679 21.6 % West North Central 225,801 6.3 % 235,864 6.5 % West South Central 328,943 9.1 % 326,819 9.0 % $ 3,610,872 100.0 % $ 3,633,131 100.0 % Property type distribution Office $ 353,011 9.8 % $ 315,374 8.7 % Medical Office 10,688 0.3 % 10,827 0.3 % Retail 997,613 27.6 % 1,016,101 28.0 % Industrial/Warehouse 900,747 24.9 % 924,779 25.4 % Apartment 850,404 23.6 % 864,580 23.8 % Hotel 285,010 7.9 % 283,500 7.8 % Mixed Use/Other 213,399 5.9 % 217,970 6.0 % $ 3,610,872 100.0 % $ 3,633,131 100.0 % Our agricultural mortgage loan portfolio consists of loans with an outstanding principal balance of $464.4 million and $408.1 million as of March 31, 2022 and December 31, 2021, respectively. These loans are collateralized by agricultural land and are diversified as to location within the United States. Our residential mortgage loan portfolio consists of loans with an outstanding principal balance of $1.7 billion and $1.7 billion as of March 31, 2022 and December 31, 2021, respectively. 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 $35.2 million and $37.0 million as of March 31, 2022 and December 31, 2021, respectively, 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, agricultural or residential mortgage loan portfolios for the three month periods ended March 31, 2022 or 2021, respectively. The valuation allowances for each of our mortgage loan portfolios are estimated by deriving probability of default and recovery rate assumptions based on the characteristics of the loans in each portfolio, historical economic data and loss information, and current and forecasted economic conditions. Key loan characteristics impacting the estimate for our commercial mortgage loan portfolio include 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, underlying collateral type, delinquency status, time to maturity, and original credit scores. Key loan characteristics impacting the estimate for our agricultural and residential mortgage loan portfolios include delinquency status, time to maturity, original credit scores and LTV ratios. The following table represents a rollforward of the valuation allowance on our mortgage loan portfolios: Three Months Ended March 31, 2022 Commercial Agricultural Residential Total (Dollars in thousands) Beginning allowance balance $ (17,926) $ (519) $ (5,579) $ (24,024) Charge-offs — — — — Recoveries — — — — Change in provision for credit losses (6,661) (39) 1,455 (5,245) Ending allowance balance $ (24,587) $ (558) $ (4,124) $ (29,269) Three Months Ended March 31, 2021 Commercial Agricultural Residential Total (Dollars in thousands) Beginning allowance balance $ (25,529) $ (2,130) $ (3,370) $ (31,029) Charge-offs — — — — Recoveries — — — — Change in provision for credit losses (610) 1,691 1,434 2,515 Ending allowance balance $ (26,139) $ (439) $ (1,936) $ (28,514) 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. There is no real estate held in Other investments as of March 31, 2022 or December 31, 2021. 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). Credit Quality Indicators We evaluate the credit quality of our commercial and agricultural 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 March 31, 2022 and December 31, 2021. The amortized cost of our commercial mortgage loan portfolio by LTV and DSC ratios based on the most recent information collected was as follows at March 31, 2022 and December 31, 2021 (by year of origination): 2022 2021 2020 2019 2018 Prior Total As of March 31, 2022: Amortized Average 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 $ 78,485 64 % $ 259,927 65 % $ 421,975 59 % $ 462,591 61 % $ 344,612 57 % $ 968,571 46 % $ 2,536,161 55 % Greater than or equal to 1.2 and less than 1.5 — — % 12,698 67 % 58,438 65 % 127,455 69 % 95,119 67 % 251,192 60 % 544,902 64 % Greater than or equal to 1.0 and less than 1.2 — — % 320,504 45 % 17,648 82 % 69,336 72 % 2,799 44 % 47,592 58 % 457,879 52 % Less than 1.0 12,491 60 % — — % 3,240 60 % 3,614 50 % 13,948 76 % 33,764 61 % 67,057 63 % Total $ 90,976 63 % $ 593,129 54 % $ 501,301 61 % $ 662,996 64 % $ 456,478 60 % $ 1,301,119 50 % $ 3,605,999 56 % 2021 2020 2019 2018 2017 Prior Total As of December 31, 2021: Amortized Average Amortized Average Amortized Average Amortized Average Amortized Average Amortized Average Amortized Average Debt Service Coverage Ratio: Greater than or equal to 1.5 $ 260,623 64 % $ 454,828 60 % $ 464,059 61 % $ 344,170 58 % $ 246,854 52 % $ 758,494 45 % $ 2,529,028 55 % Greater than or equal to 1.2 and less than 1.5 12,836 67 % 58,960 66 % 128,301 70 % 89,293 66 % 135,818 66 % 129,833 57 % 555,041 65 % Greater than or equal to 1.0 and less than 1.2 318,636 45 % 17,762 82 % 69,684 72 % 11,937 75 % 6,343 60 % 42,125 58 % 466,487 53 % Less than 1.0 — — % 3,289 61 % 26,147 63 % 14,051 76 % 13,385 73 % 21,074 54 % 77,946 65 % Total $ 592,095 54 % $ 534,839 61 % $ 688,191 64 % $ 459,451 60 % $ 402,400 58 % $ 951,526 47 % $ 3,628,502 56 % LTV and DSC ratios for our agricultural mortgage loans are calculated at the time of loan origination and are evaluated annually for each loan using land value averages. 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 agricultural mortgage loans that have a debt service coverage ratio of less than 1.0 are performing under the original contractual loan terms at March 31, 2022 and December 31, 2021. The amortized cost of our agricultural mortgage loan portfolio by LTV and DSC ratios based on the most recent information collected was as follows at March 31, 2022 and December 31, 2021 (by year of origination): 2022 2021 2020 2019 2018 Prior Total As of March 31, 2022: Amortized Average 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 $ 37,099 37 % $ 62,058 53 % $ 78,431 56 % $ 11,553 48 % $ 25,000 11 % $ — — % $ 214,141 46 % Greater than or equal to 1.2 and less than 1.5 22,719 55 % 95,201 55 % 101,189 42 % 3,301 22 % — — % — — % 222,410 48 % Greater than or equal to 1.0 and less than 1.2 6,925 76 % 7,357 43 % 4,064 36 % 1,434 43 % — — % — — % 19,780 53 % Less than 1.0 — — % — — % 6,756 46 % — — % — — % — — % 6,756 46 % Total $ 66,743 47 % $ 164,616 54 % $ 190,440 48 % $ 16,288 43 % $ 25,000 11 % $ — — % $ 463,087 48 % 2021 2020 2019 2018 2017 Prior Total As of December 31, 2021: Amortized Average Amortized Average Amortized Average Amortized Average Amortized Average Amortized Average Amortized Average Debt Service Coverage Ratio: Greater than or equal to 1.5 $ 62,548 54 % $ 80,919 56 % $ 11,645 49 % $ 25,000 11 % $ — — % $ — — % $ 180,112 49 % Greater than or equal to 1.2 and less than 1.5 95,738 55 % 102,958 43 % 3,335 22 % — — % — — % — — % 202,031 48 % Greater than or equal to 1.0 and less than 1.2 7,478 44 % 4,092 36 % 4,734 50 % — — % — — % — — % 16,304 44 % Less than 1.0 — — % 8,552 59 % — — % — — % — — % — — % 8,552 59 % Total $ 165,764 54 % $ 196,521 49 % $ 19,714 45 % $ 25,000 11 % $ — — % $ — — % $ 406,999 48 % We closely monitor loan performance for our commercial, agricultural and residential mortgage loan portfolios. Aging of financing receivables is summarized in the following table (by year of origination): 2022 2021 2020 2019 2018 Prior Total As of March 31, 2022: (Dollars in thousands) Commercial mortgage loans Current $ 90,976 $ 593,129 $ 501,301 $ 662,996 $ 456,478 $ 1,301,119 $ 3,605,999 30 - 59 days past due — — — — — — — 60 - 89 days past due — — — — — — — Over 90 days past due — — — — — — — Total commercial mortgage loans $ 90,976 $ 593,129 $ 501,301 $ 662,996 $ 456,478 $ 1,301,119 $ 3,605,999 Agricultural mortgage loans Current $ 66,743 $ 164,616 $ 190,440 $ 16,288 $ 25,000 $ — $ 463,087 30 - 59 days past due — — — — — — — 60 - 89 days past due — — — — — — — Over 90 days past due — — — — — — — Total agricultural mortgage loans $ 66,743 $ 164,616 $ 190,440 $ 16,288 $ 25,000 $ — $ 463,087 Residential mortgage loans Current $ 172,104 $ 1,002,004 $ 332,075 $ 48,951 $ 9,669 $ 572 $ 1,565,375 30 - 59 days past due 47,750 12,618 14,235 14,311 — — 88,914 60 - 89 days past due — 21,040 5,133 101 2,029 — 28,303 Over 90 days past due — 5,194 7,269 — — — 12,463 Total residential mortgage loans $ 219,854 $ 1,040,856 $ 358,712 $ 63,363 $ 11,698 $ 572 $ 1,695,055 2021 2020 2019 2018 2017 Prior Total As of December 31, 2021: (Dollars in thousands) Commercial mortgage loans Current $ 592,095 $ 534,839 $ 688,191 $ 459,451 $ 402,400 $ 951,526 $ 3,628,502 30 - 59 days past due — — — — — — — 60 - 89 days past due — — — — — — — Over 90 days past due — — — — — — — Total commercial mortgage loans $ 592,095 $ 534,839 $ 688,191 $ 459,451 $ 402,400 $ 951,526 $ 3,628,502 Agricultural mortgage loans Current $ 165,764 $ 196,521 $ 19,714 $ 25,000 $ — $ — $ 406,999 30 - 59 days past due — — — — — — — 60 - 89 days past due — — — — — — — Over 90 days past due — — — — — — — Total agricultural mortgage loans $ 165,764 $ 196,521 $ 19,714 $ 25,000 $ — $ — $ 406,999 Residential mortgage loans Current $ 1,092,438 $ 454,532 $ 67,380 $ 16,898 $ 751 $ — $ 1,631,999 30 - 59 days past due 10,284 12,363 11,373 427 — — 34,447 60 - 89 days past due 1,838 1,090 102 — — — 3,030 Over 90 days past due 679 5,459 907 — — — 7,045 Total residential mortgage loans $ 1,105,239 $ 473,444 $ 79,762 $ 17,325 $ 751 $ — $ 1,676,521 Commercial, agricultural and residential mortgage loans are considered nonperforming when they become 90 days or more past due. When loans become nonperforming, we place them on non-accrual status and discontinue recognizing interest income. If payments are received on a nonperforming 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 nonperforming loan back to less than 90 days past due, we will resume accruing interest income on that loan. There were 34 loans in non-accrual status at March 31, 2022 and 13 loan in non-accrual status at December 31, 2021. During the three months ended March 31, 2022 and 2021 we recognized no interest income on loans which were in non-accrual status at the respective period end. 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. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities We have relationships with various types of entities which may be VIEs. Certain VIEs are consolidated in our financial results. Consolidated Variable Interest Entities We are invested in two entities that invest in real estate properties. One is an investment company real estate limited partnership which owns various limited liability companies that invest in residential real estate properties and the other is an investment company real estate limited liability company that invests in multifamily real estate properties. Both entities are VIEs as each legal entity’s equity investors have insufficient equity at risk and lack of power to direct the activities that most significantly impact the economic performance of each entity. We determined we are the primary beneficiary of both entities as a result of our power to control the entities through our significant ownership. Due to the nature of these real estate investments, the investment balance will fluctuate based on changes in the fair value of the properties as well as when purchases and sales of properties are made. We are invested in two limited partnership feeder funds which each invest in a separate limited partnership fund. One fund holds infrastructure credit assets and the other holds tech-centric middle-market loans. In both cases, the feeder fund limited partnerships are VIEs, and we determined we are the primary beneficiary as a result of our significant ownership of the limited partnerships and our obligation to absorb losses or receive benefits from the VIEs. We have consolidated the assets and liabilities of the limited partnerships, which primarily consist of an equity interest in a limited partnership. The carrying amounts of our consolidated VIE assets, which can only be used to settle obligations of the consolidated VIEs, and liabilities of consolidated VIEs for which creditors do not have recourse were as follows: March 31, 2022 December 31, 2021 Total Total Total Total (Dollars in thousands) Real estate investments $ 543,435 $ 64,598 $ 363,229 $ 20,168 Limited partnership funds 350,621 — 168,711 — $ 894,056 $ 64,598 $ 531,940 $ 20,168 Unconsolidated Variable Interest Entities We provided debt funding to special purpose vehicles, which is used to acquire and hold loans made to middle market companies. These legal entities are deemed VIEs because there is insufficient equity at risk. We have determined we are not the primary beneficiary as we do not control the activities that most significantly impact the economic performance of the VIEs. Our investments in these VIEs are reported in Fixed maturity securities, available for sale in the Consolidated Balance Sheets. We provided funding to a limited partnership which purchased a residential business purpose loan originator. The limited partnership was deemed a VIE, however, we are not the primary beneficiary due to our lack of control of the limited partnership. Our investment in this VIE is reported in Other investments in the Consolidated Balance Sheets. The carrying value and maximum loss exposure for our unconsolidated VIEs were as follows: March 31, 2022 December 31, 2021 Asset Maximum Asset Maximum (Dollars in thousands) Fixed maturity securities, available for sale $ 481,348 $ 481,348 $ 459,681 $ 459,681 Other investments 345,000 345,000 345,000 345,000 |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2022 | |
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: March 31, 2022 December 31, 2021 (Dollars in thousands) Assets Derivative instruments Call options $ 640,578 $ 1,276,574 Warrants 1,835 906 $ 642,413 $ 1,277,480 Liabilities Policy benefit reserves - annuity products Fixed index annuities - embedded derivatives, net $ 6,770,915 $ 7,964,961 Funds withheld for reinsurance liabilities Reinsurance related embedded derivative (204,806) (2,362) $ 6,566,109 $ 7,962,599 The changes in fair value of derivatives included in the unaudited consolidated statements of operations are as follows: Three Months Ended 2022 2021 (Dollars in thousands) Change in fair value of derivatives: Call options $ (478,448) $ 396,276 Warrants 929 29 $ (477,519) $ 396,305 Change in fair value of embedded derivatives: Fixed index annuities - embedded derivatives $ (1,308,123) $ (377,121) Other changes in difference between policy benefit reserves computed using derivative accounting vs. long-duration contracts accounting 116,918 94,708 Reinsurance related embedded derivative (202,444) — $ (1,393,649) $ (282,413) 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 - Fair Values of Financial Instruments . 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 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: March 31, 2022 December 31, 2021 Counterparty Credit Rating Credit Rating (Moody's) Notional Fair Value Notional Fair Value (Dollars in thousands) Bank of America A+ Aa2 $ 3,392,015 $ 25,419 $ 3,556,256 $ 99,229 Barclays A A1 4,021,050 96,179 4,213,658 157,865 Canadian Imperial Bank of Commerce A+ Aa2 3,496,022 78,800 3,956,329 141,540 Citibank, N.A. A+ Aa3 2,573,024 16,407 3,190,833 115,860 Credit Suisse A+ A1 3,655,865 40,370 3,716,868 113,295 J.P. Morgan A+ Aa2 5,181,335 47,659 4,482,832 105,899 Morgan Stanley A+ Aa3 2,911,156 11,199 2,223,743 47,950 Royal Bank of Canada AA- A1 4,247,259 85,839 3,567,972 100,472 Societe Generale A A1 2,373,286 39,953 2,548,072 86,494 Truist A A2 2,170,979 52,640 2,547,808 94,924 Wells Fargo A+ Aa2 5,917,801 141,532 5,820,381 206,403 Exchange traded 281,721 4,581 266,601 6,643 $ 40,221,513 $ 640,578 $ 40,091,353 $ 1,276,574 As of March 31, 2022 and December 31, 2021, we held $0.7 billion 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 $4.6 million and $8.5 million at March 31, 2022 and December 31, 2021, 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. |
Notes Payable
Notes Payable | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Notes Payable | Notes Payable Notes payable includes the following: March 31, 2022 December 31, 2021 (Dollars in thousands) Senior notes due 2027 Principal $ 500,000 $ 500,000 Unamortized debt issue costs (3,371) (3,537) Unamortized discount (204) (213) $ 496,425 $ 496,250 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 to limited partnerships of $1.2 billion and to fixed maturity securities of $13.4 million. Through our FHLB membership, we have issued funding agreements to the FHLB in exchange for cash advances. As of March 31, 2022, we had $200.0 million of FHLB funding agreements outstanding. We are required to provide collateral in excess of the funding agreement amounts outstanding. The fixed maturity security investments pledged for collateral had a fair value of $940.7 million at March 31, 2022. |
Earnings Per Common Share and S
Earnings Per Common Share and Stockholders' Equity | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share and Stockholders' Equity | Earnings Per Common Share and Stockholders' Equity Earnings Per Common Share The following table sets forth the computation of earnings per common share and earnings per common share - assuming dilution: Three Months Ended 2022 2021 (Dollars in thousands, except per share data) Numerator: Net income available to common stockholders - numerator for earnings per common share $ 555,304 $ 271,765 Denominator: Weighted average common shares outstanding 96,866,125 95,734,851 Effect of dilutive securities: Stock options and deferred compensation agreements 612,265 181,054 Restricted stock and restricted stock units 474,923 299,760 Denominator for earnings per common share - assuming dilution 97,953,313 96,215,665 Earnings per common share $ 5.73 $ 2.84 Earnings per common share - assuming dilution $ 5.67 $ 2.82 There were no options to purchase shares of our common stock outstanding excluded from the computation of diluted earnings per common share during the three months ended March 31, 2022, as the exercise price of all options outstanding was less than the average market price of our common shares. During the three months ended March 31, 2021, there were 100,000 options to purchase shares of our common stock outstanding, with an exercise price of $30.50, excluded from the computation of diluted earnings per share. 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. 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. For the three months ended March 31, 2022, we paid dividends totaling $5.9 million on the Series A preferred stock and $5.0 million on the Series B preferred stock, respectively. For the three months ended March 31, 2021, we paid dividends totaling $5.9 million on the Series A preferred stock and $5.0 million on the Series B preferred stock, respectively. 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. Brookfield Asset Management Equity Investment On October 18, 2020, we announced an agreement with Brookfield Asset Management, Inc. and its affiliated entities (collectively, "Brookfield") under which Brookfield would acquire up to a 19.9% ownership interest of common stock in the Company. The equity investment by Brookfield took place in two stages: an initial purchase of a 9.9% equity interest at $37.00 per share which closed on November 30, 2020 with Brookfield purchasing 9,106,042 shares, and a second purchase of an additional 6,775,000 shares which were issued to Brookfield at $37.33 per share in January of 2022 as regulatory approval related to the second equity investment was received in December of 2021. Brookfield also received the right to nominate one candidate for the Company’s Board of Directors following the initial equity investment. Share Repurchase Program On October 18, 2020, the Company's Board of Directors approved a $500 million share repurchase program. On November 19, 2021, the Company's Board of Directors authorized the repurchase of an additional $500 million of Company common stock. The purpose of the share repurchase program is to both offset dilution from the issuance of shares to Brookfield and to institute a regular cash return program for shareholders. From the 2020 inception of the share repurchase program through March 31, 2022, we have repurchased approximately 13.6 million shares of our common stock at an average price of $32.73 per common share, including 4.5 million shares repurchased during the first quarter of 2022. As of March 31, 2022, we had $556 million remaining under our share repurchase program. Through April 30, 2022, we have repurchased approximately 15.3 million shares of our common shares at an average price of $33.43 per common share and have approximately $489 million remaining under our share repurchase program. Treasury Stock |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Consolidation, Policy | Consolidation and Basis of PresentationThe 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. The consolidated financial statements include variable interest entities (“VIE”) in which we are the primary beneficiary. All of the adjustments in the consolidated financial statements are 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 month period ended March 31, 2022 are not necessarily indicative of the results that may be expected for any other period, including for the year ended December 31, 2022. All significant intercompany accounts and transactions have been eliminated. The preparation of financial statements requires management estimates and assumptions using subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Our actual results could differ from these 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, 2021. |
Basis of Presentation, Policy | Consolidation and Basis of PresentationThe 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. The consolidated financial statements include variable interest entities (“VIE”) in which we are the primary beneficiary. All of the adjustments in the consolidated financial statements are 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 month period ended March 31, 2022 are not necessarily indicative of the results that may be expected for any other period, including for the year ended December 31, 2022. All significant intercompany accounts and transactions have been eliminated. The preparation of financial statements requires management estimates and assumptions using subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Our actual results could differ from these 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, 2021. |
Adopted and New Accounting Pronouncements, Policy | Adopted Accounting Pronouncements There were no accounting pronouncements that were adopted during the current period. 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, 2023, the transition date (the remeasurement date) is January 1, 2021. 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 | 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 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 pertinent 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, agricultural or residential mortgage loan portfolios for the three month periods ended March 31, 2022 or 2021, respectively. The valuation allowances for each of our mortgage loan portfolios are estimated by deriving probability of default and recovery rate assumptions based on the characteristics of the loans in each portfolio, historical economic data and loss information, and current and forecasted economic conditions. Key loan characteristics impacting the estimate for our commercial mortgage loan portfolio include 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, underlying collateral type, delinquency status, time to maturity, and original credit scores. Key loan characteristics impacting the estimate for our agricultural and residential mortgage loan portfolios include delinquency status, time to maturity, original credit scores and LTV 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. There is no real estate held in Other investments as of March 31, 2022 or December 31, 2021. 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, agricultural and residential mortgage loans are considered nonperforming when they become 90 days or more past due. When loans become nonperforming, we place them on non-accrual status and discontinue recognizing interest income. If payments are received on a nonperforming 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 nonperforming loan back to less than 90 days past due, we will resume accruing interest income on that loan. There were 34 loans in non-accrual status at March 31, 2022 and 13 loan in non-accrual status at December 31, 2021. During the three months ended March 31, 2022 and 2021 we recognized no interest income on loans which were in non-accrual status at the respective period end. |
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) | 3 Months Ended |
Mar. 31, 2022 | |
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: March 31, 2022 December 31, 2021 Carrying Fair Value Carrying Fair Value (Dollars in thousands) Assets Fixed maturity securities, available for sale $ 49,662,120 $ 49,662,120 $ 51,305,943 $ 51,305,943 Mortgage loans on real estate 5,734,872 5,792,356 5,687,998 5,867,227 Real estate investments 510,188 510,188 337,939 337,939 Derivative instruments 642,413 642,413 1,277,480 1,277,480 Other investments 1,999,113 2,057,113 1,767,144 1,767,144 Cash and cash equivalents 1,933,899 1,933,899 4,508,982 4,508,982 Coinsurance deposits 8,713,069 8,002,548 8,850,608 7,938,292 Liabilities Policy benefit reserves 63,342,037 56,478,030 65,076,041 56,375,076 Single premium immediate annuity (SPIA) benefit reserves 224,618 234,189 226,207 235,891 Other policy funds - FHLB 200,000 200,000 — — Notes payable 496,425 523,085 496,250 569,485 Subordinated debentures 78,502 80,126 78,421 93,721 |
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 March 31, 2022 and December 31, 2021 are presented below based on the fair value hierarchy levels: Total Quoted Significant Significant (Dollars in thousands) March 31, 2022 Assets Fixed maturity securities, available for sale: United States Government full faith and credit $ 38,666 $ 33,850 $ 4,816 $ — United States Government sponsored agencies 174,845 — 174,845 — United States municipalities, states and territories 3,812,510 — 3,812,510 — Foreign government obligations 405,166 — 405,166 — Corporate securities 33,873,527 31,499 33,842,028 — Residential mortgage backed securities 1,210,559 — 1,210,559 — Commercial mortgage backed securities 4,769,867 — 4,769,867 — Other asset backed securities 5,376,980 — 5,376,980 — Other investments: equity securities 29,303 — 25,436 3,867 Real estate investments 510,188 — — 510,188 Derivative instruments 642,413 — 642,413 — Cash and cash equivalents 1,933,899 1,933,899 — — $ 52,777,923 $ 1,999,248 $ 50,264,620 $ 514,055 Liabilities Funds withheld liability - embedded derivative $ (204,806) $ — $ (204,806) $ — Fixed index annuities - embedded derivatives 6,770,915 — — 6,770,915 $ 6,566,109 $ — $ (204,806) $ 6,770,915 December 31, 2021 Assets Fixed maturity securities, available for sale: United States Government full faith and credit $ 37,793 $ 32,737 $ 5,056 $ — United States Government sponsored agencies 1,040,953 — 1,040,953 — United States municipalities, states and territories 3,927,201 — 3,927,201 — Foreign government obligations 402,545 — 402,545 — Corporate securities 34,660,234 32,700 34,627,534 — Residential mortgage backed securities 1,125,049 — 1,125,049 — Commercial mortgage backed securities 4,840,311 — 4,840,311 — Other asset backed securities 5,271,857 — 5,271,857 — Other investments: equity securities 12,226 — 5,877 6,349 Real estate investments 337,939 — — 337,939 Derivative instruments 1,277,480 — 1,277,480 — Cash and cash equivalents 4,508,982 4,508,982 — — $ 57,442,570 $ 4,574,419 $ 52,523,863 $ 344,288 Liabilities Funds withheld liability - embedded derivative $ (2,362) $ — $ (2,362) $ — Fixed index annuities - embedded derivatives 7,964,961 — — 7,964,961 $ 7,962,599 $ — $ (2,362) $ 7,964,961 |
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) March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 1 - 5 3.13% 3.04% 2.20% 2.19% 6 - 10 2.91% 2.84% 2.27% 2.26% 11 - 15 4.32% 4.47% 2.11% 2.14% 16 - 20 9.30% 8.93% 1.30% 1.33% 20+ 4.97% 4.93% —% —% |
Assets 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 assets and liabilities, which are measured at fair value on a recurring basis using significant unobservable inputs for the three months ended March 31, 2022 and 2021: Three Months Ended 2022 2021 (Dollars in thousands) Other investments: equity securities Beginning balance $ 6,349 $ — Transfers in — — Total realized/unrealized gains (losses): Included in net income (2,482) — Included in other comprehensive income (loss) — — Ending balance $ 3,867 $ — Real estate investments Beginning balance $ 337,939 $ — Purchases and sales, net 168,088 — Change in fair value 4,161 — Ending balance $ 510,188 $ — Fixed index annuities - embedded derivatives Beginning balance $ 7,964,961 $ 7,938,281 Premiums less benefits 114,077 119,791 Change in fair value, net (1,308,123) (377,121) Ending balance $ 6,770,915 $ 7,680,951 |
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 assets and liabilities, which are measured at fair value on a recurring basis using significant unobservable inputs for the three months ended March 31, 2022 and 2021: Three Months Ended 2022 2021 (Dollars in thousands) Other investments: equity securities Beginning balance $ 6,349 $ — Transfers in — — Total realized/unrealized gains (losses): Included in net income (2,482) — Included in other comprehensive income (loss) — — Ending balance $ 3,867 $ — Real estate investments Beginning balance $ 337,939 $ — Purchases and sales, net 168,088 — Change in fair value 4,161 — Ending balance $ 510,188 $ — Fixed index annuities - embedded derivatives Beginning balance $ 7,964,961 $ 7,938,281 Premiums less benefits 114,077 119,791 Change in fair value, net (1,308,123) (377,121) Ending balance $ 6,770,915 $ 7,680,951 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments [Abstract] | |
Schedule of Fixed Maturity Securities | At March 31, 2022 and December 31, 2021, the amortized cost and fair value of fixed maturity securities were as follows: Amortized Gross Gross Allowance for Credit Losses Fair Value (Dollars in thousands) March 31, 2022 Fixed maturity securities, available for sale: United States Government full faith and credit $ 39,302 $ 88 $ (724) $ — $ 38,666 United States Government sponsored agencies 158,596 18,473 (2,224) — 174,845 United States municipalities, states and territories 3,694,146 214,986 (94,613) (2,009) 3,812,510 Foreign government obligations 415,227 11,175 (21,236) — 405,166 Corporate securities 33,550,018 1,311,404 (984,070) (3,825) 33,873,527 Residential mortgage backed securities 1,195,436 38,688 (22,822) (743) 1,210,559 Commercial mortgage backed securities 4,873,980 23,338 (127,451) — 4,769,867 Other asset backed securities 5,438,210 53,355 (114,585) — 5,376,980 $ 49,364,915 $ 1,671,507 $ (1,367,725) $ (6,577) $ 49,662,120 December 31, 2021 Fixed maturity securities, available for sale: United States Government full faith and credit $ 37,109 $ 718 $ (34) $ — $ 37,793 United States Government sponsored agencies 1,008,920 32,123 (90) — 1,040,953 United States municipalities, states and territories 3,495,563 437,456 (3,042) (2,776) 3,927,201 Foreign government obligations 380,646 22,742 (843) — 402,545 Corporate securities 31,084,629 3,614,047 (38,442) — 34,660,234 Residential mortgage backed securities 1,056,778 70,434 (2,093) (70) 1,125,049 Commercial mortgage backed securities 4,708,878 149,152 (17,719) — 4,840,311 Other asset backed securities 5,226,660 95,304 (50,107) — 5,271,857 $ 46,999,183 $ 4,421,976 $ (112,370) $ (2,846) $ 51,305,943 (1) Amortized cost excludes accrued interest receivable of $440.5 million and $400.7 million as of March 31, 2022 and December 31, 2021, respectively. (2) Gross unrealized losses are net of allowance for credit losses. |
Schedule of Fixed Maturity Securities by Contractual Maturity Date | The amortized cost and fair value of fixed maturity securities at March 31, 2022, 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 Fair Value (Dollars in thousands) Due in one year or less $ 1,285,124 $ 1,294,473 Due after one year through five years 8,050,284 8,089,245 Due after five years through ten years 7,228,862 7,278,595 Due after ten years through twenty years 10,741,247 11,453,442 Due after twenty years 10,551,772 10,188,959 37,857,289 38,304,714 Residential mortgage backed securities 1,195,436 1,210,559 Commercial mortgage backed securities 4,873,980 4,769,867 Other asset backed securities 5,438,210 5,376,980 $ 49,364,915 $ 49,662,120 |
Schedule 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: March 31, 2022 December 31, 2021 (Dollars in thousands) Net unrealized gains on available for sale fixed maturity securities $ 295,235 $ 4,309,606 Adjustments for assumed changes in amortization of deferred policy acquisition costs, deferred sales inducements and policy benefit reserves (242,590) (1,993,869) Deferred income tax valuation allowance reversal 22,534 22,534 Deferred income tax expense (11,473) (489,482) Net unrealized gains reported as accumulated other comprehensive income $ 63,706 $ 1,848,789 |
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: March 31, 2022 December 31, 2021 NAIC Amortized Fair Amortized Fair (Dollars in thousands) 1 $ 27,701,587 $ 28,064,072 $ 26,157,531 $ 28,785,839 2 20,740,585 20,701,013 19,758,594 21,396,020 3 772,726 748,881 909,311 941,210 4 117,725 122,867 133,070 147,160 5 3,259 3,259 16,496 15,357 6 29,033 22,028 24,181 20,357 $ 49,364,915 $ 49,662,120 $ 46,999,183 $ 51,305,943 |
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 3,781 and 1,427 securities, respectively) have been in a continuous unrealized loss position, at March 31, 2022 and December 31, 2021: Less than 12 months 12 months or more Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Dollars in thousands) March 31, 2022 Fixed maturity securities, available for sale: United States Government full faith and credit $ 27,565 $ (686) $ 434 $ (38) $ 27,999 $ (724) United States Government sponsored agencies 11,468 (2,224) — — 11,468 (2,224) United States municipalities, states and territories 1,161,530 (94,117) 18,344 (2,505) 1,179,874 (96,622) Foreign government obligations 252,267 (21,236) — — 252,267 (21,236) Corporate securities 12,808,738 (965,862) 131,098 (22,033) 12,939,836 (987,895) Residential mortgage backed securities 501,285 (21,186) 32,665 (2,379) 533,950 (23,565) Commercial mortgage backed securities 3,217,274 (111,459) 88,148 (15,992) 3,305,422 (127,451) Other asset backed securities 2,503,524 (50,385) 1,731,947 (64,200) 4,235,471 (114,585) $ 20,483,651 $ (1,267,155) $ 2,002,636 $ (107,147) $ 22,486,287 $ (1,374,302) December 31, 2021 Fixed maturity securities, available for sale: United States Government full faith and credit $ 1,007 $ (34) $ — $ — $ 1,007 $ (34) United States Government sponsored agencies 759,970 (90) — — 759,970 (90) United States municipalities, states and territories 168,942 (2,468) 15,711 (3,350) 184,653 (5,818) Foreign government obligations 42,861 (843) — — 42,861 (843) Corporate securities 2,375,603 (30,070) 116,819 (8,372) 2,492,422 (38,442) Residential mortgage backed securities 250,964 (1,408) 26,917 (755) 277,881 (2,163) Commercial mortgage backed securities 784,464 (5,500) 142,224 (12,219) 926,688 (17,719) Other asset backed securities 1,351,324 (11,345) 1,771,182 (38,762) 3,122,506 (50,107) $ 5,735,135 $ (51,758) $ 2,072,853 $ (63,458) $ 7,807,988 $ (115,216) |
Schedule of Changes in Net Unrealized Gains/Losses on Investments | Changes in net unrealized gains/losses on investments for the three months ended March 31, 2022 and 2021 are as follows: Three Months Ended 2022 2021 (Dollars in thousands) Fixed maturity securities available for sale carried at fair value $ (4,014,371) $ (1,661,361) Adjustment for effect on other balance sheet accounts: Deferred policy acquisition costs, deferred sales inducements and policy benefit reserves 1,751,279 777,441 Deferred income tax asset/liability 478,009 185,623 2,229,288 963,064 Change in net unrealized gains/losses on investments carried at fair value $ (1,785,083) $ (698,297) |
Net Realized Gains (Losses) on Investments | Net realized losses on investments for the three months ended March 31, 2022 and 2021, are as follows: Three Months Ended 2022 2021 (Dollars in thousands) Available for sale fixed maturity securities: Gross realized gains $ 3,465 $ 2,367 Gross realized losses (2,006) (8,196) Net credit loss (provision) release (7,356) (1,437) (5,897) (7,266) Mortgage loans on real estate: Decrease (increase) in allowance for credit losses (5,245) 2,515 Gain (loss) on sale of mortgage loans (1,985) 168 (7,230) 2,683 $ (13,127) $ (4,583) |
Rollforward of Allowance for Credit Loss | The following table provides a rollforward of the allowance for credit loss: Three Months Ended March 31, 2022 United States Corporate Securities Commercial Mortgage Backed Securities Residential Mortgage Backed Securities Other Asset Backed Securities Total (Dollars in thousands) Beginning balance $ 2,776 $ — $ — $ 70 $ — $ 2,846 Additions for credit losses not previously recorded — 3,825 — 336 — 4,161 Change in allowance on securities with previous allowance (767) — — 337 — (430) Reduction for securities sold during the period — — — — — — Ending balance $ 2,009 $ 3,825 $ — $ 743 $ — $ 6,577 Three Months Ended March 31, 2021 United States Corporate Securities Commercial Mortgage Backed Securities Residential Mortgage Backed Securities Other Asset Backed Securities Total (Dollars in thousands) Beginning balance $ 2,844 $ 60,193 $ — $ 1,734 $ — $ 64,771 Additions for credit losses not previously recorded — 705 — 111 — 816 Change in allowance on securities with previous allowance (53) 1,327 — (653) — 621 Reduction for securities sold during the period — (6,510) — — — (6,510) Ending balance $ 2,791 $ 55,715 $ — $ 1,192 $ — $ 59,698 |
Mortgage Loans on Real Estate (
Mortgage Loans on Real Estate (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Summary of Mortgage Loan Portfolios | Our mortgage loan portfolios are summarized in the following table. There were commitments outstanding of $444.2 million at March 31, 2022. March 31, 2022 December 31, 2021 (Dollars in thousands) Commercial mortgage loans: Principal outstanding $ 3,610,872 $ 3,633,131 Deferred fees and costs, net (4,873) (4,629) Amortized cost 3,605,999 3,628,502 Valuation allowance (24,587) (17,926) Commercial mortgage loans, carrying value 3,581,412 3,610,576 Agricultural mortgage loans: Principal outstanding 464,431 408,135 Deferred fees and costs, net (1,344) (1,136) Amortized cost 463,087 406,999 Valuation allowance (558) (519) Agricultural mortgage loans, carrying value 462,529 406,480 Residential mortgage loans: Principal outstanding 1,669,897 1,652,910 Deferred fees and costs, net 1,432 1,468 Unamortized discounts and premiums, net 23,726 22,143 Amortized cost 1,695,055 1,676,521 Valuation allowance (4,124) (5,579) Residential mortgage loans, carrying value 1,690,931 1,670,942 Mortgage loans, carrying value $ 5,734,872 $ 5,687,998 |
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: March 31, 2022 December 31, 2021 Principal Percent Principal Percent (Dollars in thousands) Geographic distribution East $ 596,667 16.5 % $ 614,406 16.9 % Middle Atlantic 296,015 8.2 % 293,494 8.1 % Mountain 459,562 12.7 % 452,818 12.5 % New England 59,996 1.7 % 60,172 1.6 % Pacific 884,983 24.5 % 863,879 23.8 % South Atlantic 758,905 21.0 % 785,679 21.6 % West North Central 225,801 6.3 % 235,864 6.5 % West South Central 328,943 9.1 % 326,819 9.0 % $ 3,610,872 100.0 % $ 3,633,131 100.0 % Property type distribution Office $ 353,011 9.8 % $ 315,374 8.7 % Medical Office 10,688 0.3 % 10,827 0.3 % Retail 997,613 27.6 % 1,016,101 28.0 % Industrial/Warehouse 900,747 24.9 % 924,779 25.4 % Apartment 850,404 23.6 % 864,580 23.8 % Hotel 285,010 7.9 % 283,500 7.8 % Mixed Use/Other 213,399 5.9 % 217,970 6.0 % $ 3,610,872 100.0 % $ 3,633,131 100.0 % |
Rollforward of Valuation Allowance on Mortgage Loan Portfolios | The following table represents a rollforward of the valuation allowance on our mortgage loan portfolios: Three Months Ended March 31, 2022 Commercial Agricultural Residential Total (Dollars in thousands) Beginning allowance balance $ (17,926) $ (519) $ (5,579) $ (24,024) Charge-offs — — — — Recoveries — — — — Change in provision for credit losses (6,661) (39) 1,455 (5,245) Ending allowance balance $ (24,587) $ (558) $ (4,124) $ (29,269) Three Months Ended March 31, 2021 Commercial Agricultural Residential Total (Dollars in thousands) Beginning allowance balance $ (25,529) $ (2,130) $ (3,370) $ (31,029) Charge-offs — — — — Recoveries — — — — Change in provision for credit losses (610) 1,691 1,434 2,515 Ending allowance balance $ (26,139) $ (439) $ (1,936) $ (28,514) |
Mortgage Loans By Credit Quality Indicator | The amortized cost of our commercial mortgage loan portfolio by LTV and DSC ratios based on the most recent information collected was as follows at March 31, 2022 and December 31, 2021 (by year of origination): 2022 2021 2020 2019 2018 Prior Total As of March 31, 2022: Amortized Average 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 $ 78,485 64 % $ 259,927 65 % $ 421,975 59 % $ 462,591 61 % $ 344,612 57 % $ 968,571 46 % $ 2,536,161 55 % Greater than or equal to 1.2 and less than 1.5 — — % 12,698 67 % 58,438 65 % 127,455 69 % 95,119 67 % 251,192 60 % 544,902 64 % Greater than or equal to 1.0 and less than 1.2 — — % 320,504 45 % 17,648 82 % 69,336 72 % 2,799 44 % 47,592 58 % 457,879 52 % Less than 1.0 12,491 60 % — — % 3,240 60 % 3,614 50 % 13,948 76 % 33,764 61 % 67,057 63 % Total $ 90,976 63 % $ 593,129 54 % $ 501,301 61 % $ 662,996 64 % $ 456,478 60 % $ 1,301,119 50 % $ 3,605,999 56 % 2021 2020 2019 2018 2017 Prior Total As of December 31, 2021: Amortized Average Amortized Average Amortized Average Amortized Average Amortized Average Amortized Average Amortized Average Debt Service Coverage Ratio: Greater than or equal to 1.5 $ 260,623 64 % $ 454,828 60 % $ 464,059 61 % $ 344,170 58 % $ 246,854 52 % $ 758,494 45 % $ 2,529,028 55 % Greater than or equal to 1.2 and less than 1.5 12,836 67 % 58,960 66 % 128,301 70 % 89,293 66 % 135,818 66 % 129,833 57 % 555,041 65 % Greater than or equal to 1.0 and less than 1.2 318,636 45 % 17,762 82 % 69,684 72 % 11,937 75 % 6,343 60 % 42,125 58 % 466,487 53 % Less than 1.0 — — % 3,289 61 % 26,147 63 % 14,051 76 % 13,385 73 % 21,074 54 % 77,946 65 % Total $ 592,095 54 % $ 534,839 61 % $ 688,191 64 % $ 459,451 60 % $ 402,400 58 % $ 951,526 47 % $ 3,628,502 56 % The amortized cost of our agricultural mortgage loan portfolio by LTV and DSC ratios based on the most recent information collected was as follows at March 31, 2022 and December 31, 2021 (by year of origination): 2022 2021 2020 2019 2018 Prior Total As of March 31, 2022: Amortized Average 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 $ 37,099 37 % $ 62,058 53 % $ 78,431 56 % $ 11,553 48 % $ 25,000 11 % $ — — % $ 214,141 46 % Greater than or equal to 1.2 and less than 1.5 22,719 55 % 95,201 55 % 101,189 42 % 3,301 22 % — — % — — % 222,410 48 % Greater than or equal to 1.0 and less than 1.2 6,925 76 % 7,357 43 % 4,064 36 % 1,434 43 % — — % — — % 19,780 53 % Less than 1.0 — — % — — % 6,756 46 % — — % — — % — — % 6,756 46 % Total $ 66,743 47 % $ 164,616 54 % $ 190,440 48 % $ 16,288 43 % $ 25,000 11 % $ — — % $ 463,087 48 % 2021 2020 2019 2018 2017 Prior Total As of December 31, 2021: Amortized Average Amortized Average Amortized Average Amortized Average Amortized Average Amortized Average Amortized Average Debt Service Coverage Ratio: Greater than or equal to 1.5 $ 62,548 54 % $ 80,919 56 % $ 11,645 49 % $ 25,000 11 % $ — — % $ — — % $ 180,112 49 % Greater than or equal to 1.2 and less than 1.5 95,738 55 % 102,958 43 % 3,335 22 % — — % — — % — — % 202,031 48 % Greater than or equal to 1.0 and less than 1.2 7,478 44 % 4,092 36 % 4,734 50 % — — % — — % — — % 16,304 44 % Less than 1.0 — — % 8,552 59 % — — % — — % — — % — — % 8,552 59 % Total $ 165,764 54 % $ 196,521 49 % $ 19,714 45 % $ 25,000 11 % $ — — % $ — — % $ 406,999 48 % |
Aging of Financing Receivables | Aging of financing receivables is summarized in the following table (by year of origination): 2022 2021 2020 2019 2018 Prior Total As of March 31, 2022: (Dollars in thousands) Commercial mortgage loans Current $ 90,976 $ 593,129 $ 501,301 $ 662,996 $ 456,478 $ 1,301,119 $ 3,605,999 30 - 59 days past due — — — — — — — 60 - 89 days past due — — — — — — — Over 90 days past due — — — — — — — Total commercial mortgage loans $ 90,976 $ 593,129 $ 501,301 $ 662,996 $ 456,478 $ 1,301,119 $ 3,605,999 Agricultural mortgage loans Current $ 66,743 $ 164,616 $ 190,440 $ 16,288 $ 25,000 $ — $ 463,087 30 - 59 days past due — — — — — — — 60 - 89 days past due — — — — — — — Over 90 days past due — — — — — — — Total agricultural mortgage loans $ 66,743 $ 164,616 $ 190,440 $ 16,288 $ 25,000 $ — $ 463,087 Residential mortgage loans Current $ 172,104 $ 1,002,004 $ 332,075 $ 48,951 $ 9,669 $ 572 $ 1,565,375 30 - 59 days past due 47,750 12,618 14,235 14,311 — — 88,914 60 - 89 days past due — 21,040 5,133 101 2,029 — 28,303 Over 90 days past due — 5,194 7,269 — — — 12,463 Total residential mortgage loans $ 219,854 $ 1,040,856 $ 358,712 $ 63,363 $ 11,698 $ 572 $ 1,695,055 2021 2020 2019 2018 2017 Prior Total As of December 31, 2021: (Dollars in thousands) Commercial mortgage loans Current $ 592,095 $ 534,839 $ 688,191 $ 459,451 $ 402,400 $ 951,526 $ 3,628,502 30 - 59 days past due — — — — — — — 60 - 89 days past due — — — — — — — Over 90 days past due — — — — — — — Total commercial mortgage loans $ 592,095 $ 534,839 $ 688,191 $ 459,451 $ 402,400 $ 951,526 $ 3,628,502 Agricultural mortgage loans Current $ 165,764 $ 196,521 $ 19,714 $ 25,000 $ — $ — $ 406,999 30 - 59 days past due — — — — — — — 60 - 89 days past due — — — — — — — Over 90 days past due — — — — — — — Total agricultural mortgage loans $ 165,764 $ 196,521 $ 19,714 $ 25,000 $ — $ — $ 406,999 Residential mortgage loans Current $ 1,092,438 $ 454,532 $ 67,380 $ 16,898 $ 751 $ — $ 1,631,999 30 - 59 days past due 10,284 12,363 11,373 427 — — 34,447 60 - 89 days past due 1,838 1,090 102 — — — 3,030 Over 90 days past due 679 5,459 907 — — — 7,045 Total residential mortgage loans $ 1,105,239 $ 473,444 $ 79,762 $ 17,325 $ 751 $ — $ 1,676,521 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The carrying amounts of our consolidated VIE assets, which can only be used to settle obligations of the consolidated VIEs, and liabilities of consolidated VIEs for which creditors do not have recourse were as follows: March 31, 2022 December 31, 2021 Total Total Total Total (Dollars in thousands) Real estate investments $ 543,435 $ 64,598 $ 363,229 $ 20,168 Limited partnership funds 350,621 — 168,711 — $ 894,056 $ 64,598 $ 531,940 $ 20,168 The carrying value and maximum loss exposure for our unconsolidated VIEs were as follows: March 31, 2022 December 31, 2021 Asset Maximum Asset Maximum (Dollars in thousands) Fixed maturity securities, available for sale $ 481,348 $ 481,348 $ 459,681 $ 459,681 Other investments 345,000 345,000 345,000 345,000 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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: March 31, 2022 December 31, 2021 (Dollars in thousands) Assets Derivative instruments Call options $ 640,578 $ 1,276,574 Warrants 1,835 906 $ 642,413 $ 1,277,480 Liabilities Policy benefit reserves - annuity products Fixed index annuities - embedded derivatives, net $ 6,770,915 $ 7,964,961 Funds withheld for reinsurance liabilities Reinsurance related embedded derivative (204,806) (2,362) $ 6,566,109 $ 7,962,599 |
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 2022 2021 (Dollars in thousands) Change in fair value of derivatives: Call options $ (478,448) $ 396,276 Warrants 929 29 $ (477,519) $ 396,305 Change in fair value of embedded derivatives: Fixed index annuities - embedded derivatives $ (1,308,123) $ (377,121) Other changes in difference between policy benefit reserves computed using derivative accounting vs. long-duration contracts accounting 116,918 94,708 Reinsurance related embedded derivative (202,444) — $ (1,393,649) $ (282,413) |
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: March 31, 2022 December 31, 2021 Counterparty Credit Rating Credit Rating (Moody's) Notional Fair Value Notional Fair Value (Dollars in thousands) Bank of America A+ Aa2 $ 3,392,015 $ 25,419 $ 3,556,256 $ 99,229 Barclays A A1 4,021,050 96,179 4,213,658 157,865 Canadian Imperial Bank of Commerce A+ Aa2 3,496,022 78,800 3,956,329 141,540 Citibank, N.A. A+ Aa3 2,573,024 16,407 3,190,833 115,860 Credit Suisse A+ A1 3,655,865 40,370 3,716,868 113,295 J.P. Morgan A+ Aa2 5,181,335 47,659 4,482,832 105,899 Morgan Stanley A+ Aa3 2,911,156 11,199 2,223,743 47,950 Royal Bank of Canada AA- A1 4,247,259 85,839 3,567,972 100,472 Societe Generale A A1 2,373,286 39,953 2,548,072 86,494 Truist A A2 2,170,979 52,640 2,547,808 94,924 Wells Fargo A+ Aa2 5,917,801 141,532 5,820,381 206,403 Exchange traded 281,721 4,581 266,601 6,643 $ 40,221,513 $ 640,578 $ 40,091,353 $ 1,276,574 |
Notes Payable (Tables)
Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | Notes payable includes the following: March 31, 2022 December 31, 2021 (Dollars in thousands) Senior notes due 2027 Principal $ 500,000 $ 500,000 Unamortized debt issue costs (3,371) (3,537) Unamortized discount (204) (213) $ 496,425 $ 496,250 |
Earnings Per Common Share and_2
Earnings Per Common Share and Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Common Share, Basic and Diluted | The following table sets forth the computation of earnings per common share and earnings per common share - assuming dilution: Three Months Ended 2022 2021 (Dollars in thousands, except per share data) Numerator: Net income available to common stockholders - numerator for earnings per common share $ 555,304 $ 271,765 Denominator: Weighted average common shares outstanding 96,866,125 95,734,851 Effect of dilutive securities: Stock options and deferred compensation agreements 612,265 181,054 Restricted stock and restricted stock units 474,923 299,760 Denominator for earnings per common share - assuming dilution 97,953,313 96,215,665 Earnings per common share $ 5.73 $ 2.84 Earnings per common share - assuming dilution $ 5.67 $ 2.82 |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments (Narrative) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($)Basis_Points | Dec. 31, 2021USD ($) | |
Fair Value Disclosures [Abstract] | ||
FHLB common stock | $ 18 | |
Equity method investments, fair value | 717.9 | $ 520.1 |
Short-term loans, fair value | 320 | 320 |
COLI, fair value | $ 387.7 | $ 384.3 |
Measurement Input, Discount Rate | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, sensitivity, discount rate adjustment (basis points) | Basis_Points | (100) | |
Fixed index annuities embedded derivative, adjustment due to change in discount rate | $ 578.3 | |
Deferred policy scquisition costs and deferred sales inducements, combined balance, adjustment due to change in discount rate | $ 229 | |
Measurement Input, Discount Rate | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, sensitivity, discount rate adjustment (basis points) | Basis_Points | 100 | |
Fixed index annuities embedded derivative, adjustment due to change in discount rate | $ (499.4) | |
Deferred policy scquisition costs and deferred sales inducements, combined balance, adjustment due to change in discount rate | $ (193.5) | |
Real Estate Investments | Significant Unobservable Inputs (Level 3) | Valuation Technique, Discounted Cash Flow | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash flow modeling period | 10 years | |
Real Estate Investments | Significant Unobservable Inputs (Level 3) | Valuation Technique, Discounted Cash Flow | Fair Value, Measurements, Recurring | Measurement Input, Residual Capitalization Rate | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate investments, measurement input | 4.75% | |
Real Estate Investments | Significant Unobservable Inputs (Level 3) | Valuation Technique, Discounted Cash Flow | Fair Value, Measurements, Recurring | Measurement Input, Residual Capitalization Rate | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate investments, measurement input | 6.50% | |
Real Estate Investments | Significant Unobservable Inputs (Level 3) | Valuation Technique, Discounted Cash Flow | Fair Value, Measurements, Recurring | Measurement Input, Residual Capitalization Rate | Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate investments, measurement input | 5.47% | |
Real Estate Investments | Significant Unobservable Inputs (Level 3) | Valuation Technique, Discounted Cash Flow | Fair Value, Measurements, Recurring | Measurement Input, Discount Rate | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate investments, measurement input | 6.00% | |
Real Estate Investments | Significant Unobservable Inputs (Level 3) | Valuation Technique, Discounted Cash Flow | Fair Value, Measurements, Recurring | Measurement Input, Discount Rate | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate investments, measurement input | 7.75% | |
Real Estate Investments | Significant Unobservable Inputs (Level 3) | Valuation Technique, Discounted Cash Flow | Fair Value, Measurements, Recurring | Measurement Input, Discount Rate | Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate investments, measurement input | 6.72% |
Fair Values of Financial Inst_4
Fair Values of Financial Instruments (Fair Values and Carrying Amounts of Financial Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Fixed maturity securities, available for sale, fair value | $ 49,662,120 | $ 51,305,943 |
Derivative instruments | 642,413 | 1,277,480 |
Other investments | 1,999,113 | 1,767,144 |
Coinsurance deposits (net of allowance for credit losses of $2,862 as of 2022 and $2,264 as of 2021) | 8,713,069 | 8,850,608 |
Liabilities | ||
Policy benefit reserves | 63,730,995 | 65,477,778 |
Other policy funds - FHLB | 200,000 | |
Carrying Amount | ||
Assets | ||
Fixed maturity securities, available for sale, fair value | 49,662,120 | 51,305,943 |
Mortgage loans on real estate | 5,734,872 | 5,687,998 |
Real estate investments | 510,188 | 337,939 |
Derivative instruments | 642,413 | 1,277,480 |
Other investments | 1,999,113 | 1,767,144 |
Cash and cash equivalents | 1,933,899 | 4,508,982 |
Coinsurance deposits (net of allowance for credit losses of $2,862 as of 2022 and $2,264 as of 2021) | 8,713,069 | 8,850,608 |
Liabilities | ||
Policy benefit reserves | 63,342,037 | 65,076,041 |
Single premium immediate annuity (SPIA) benefit reserves | 224,618 | 226,207 |
Other policy funds - FHLB | 200,000 | 0 |
Notes payable | 496,425 | 496,250 |
Subordinated debentures | 78,502 | 78,421 |
Fair Value | ||
Assets | ||
Fixed maturity securities, available for sale, fair value | 49,662,120 | 51,305,943 |
Mortgage loans on real estate | 5,792,356 | 5,867,227 |
Real estate investments | 510,188 | 337,939 |
Derivative instruments | 642,413 | 1,277,480 |
Other investments | 2,057,113 | 1,767,144 |
Cash and cash equivalents | 1,933,899 | 4,508,982 |
Coinsurance deposits (net of allowance for credit losses of $2,862 as of 2022 and $2,264 as of 2021) | 8,002,548 | 7,938,292 |
Liabilities | ||
Policy benefit reserves | 56,478,030 | 56,375,076 |
Single premium immediate annuity (SPIA) benefit reserves | 234,189 | 235,891 |
Other policy funds - FHLB | 200,000 | 0 |
Notes payable | 523,085 | 569,485 |
Subordinated debentures | $ 80,126 | $ 93,721 |
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Derivative instruments | $ 642,413 | $ 1,277,480 |
Fair Value, Measurements, Recurring | ||
Assets | ||
Real estate investments | 510,188 | 337,939 |
Derivative instruments | 642,413 | 1,277,480 |
Cash and cash equivalents | 1,933,899 | 4,508,982 |
Assets | 52,777,923 | 57,442,570 |
Liabilities | ||
Liabilities | 6,566,109 | 7,962,599 |
Fair Value, Measurements, Recurring | United States Government Full Faith and Credit | ||
Assets | ||
Investments | 38,666 | 37,793 |
Fair Value, Measurements, Recurring | United States Government Sponsored Agencies | ||
Assets | ||
Investments | 174,845 | 1,040,953 |
Fair Value, Measurements, Recurring | United States Municipalities, States and Territories | ||
Assets | ||
Investments | 3,812,510 | 3,927,201 |
Fair Value, Measurements, Recurring | Foreign Government Obligations | ||
Assets | ||
Investments | 405,166 | 402,545 |
Fair Value, Measurements, Recurring | Corporate Securities | ||
Assets | ||
Investments | 33,873,527 | 34,660,234 |
Fair Value, Measurements, Recurring | Residential Mortgage Backed Securities | ||
Assets | ||
Investments | 1,210,559 | 1,125,049 |
Fair Value, Measurements, Recurring | Commercial Mortgage Backed Securities | ||
Assets | ||
Investments | 4,769,867 | 4,840,311 |
Fair Value, Measurements, Recurring | Other Asset Backed Securities | ||
Assets | ||
Investments | 5,376,980 | 5,271,857 |
Fair Value, Measurements, Recurring | Equity Securities | ||
Assets | ||
Investments | 29,303 | 12,226 |
Fair Value, Measurements, Recurring | Reinsurance Related Embedded Derivative | ||
Liabilities | ||
Derivative liabilities | (204,806) | (2,362) |
Fair Value, Measurements, Recurring | Fixed Index Annuities - Embedded Derivatives | ||
Liabilities | ||
Derivative liabilities | 6,770,915 | 7,964,961 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | ||
Assets | ||
Real estate investments | 0 | 0 |
Derivative instruments | 0 | 0 |
Cash and cash equivalents | 1,933,899 | 4,508,982 |
Assets | 1,999,248 | 4,574,419 |
Liabilities | ||
Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | United States Government Full Faith and Credit | ||
Assets | ||
Investments | 33,850 | 32,737 |
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 | 31,499 | 32,700 |
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 | Quoted Prices in Active Markets (Level 1) | Equity Securities | ||
Assets | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | Reinsurance Related Embedded Derivative | ||
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | Fixed Index Annuities - Embedded Derivatives | ||
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Real estate investments | 0 | 0 |
Derivative instruments | 642,413 | 1,277,480 |
Cash and cash equivalents | 0 | 0 |
Assets | 50,264,620 | 52,523,863 |
Liabilities | ||
Liabilities | (204,806) | (2,362) |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | United States Government Full Faith and Credit | ||
Assets | ||
Investments | 4,816 | 5,056 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | United States Government Sponsored Agencies | ||
Assets | ||
Investments | 174,845 | 1,040,953 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | United States Municipalities, States and Territories | ||
Assets | ||
Investments | 3,812,510 | 3,927,201 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign Government Obligations | ||
Assets | ||
Investments | 405,166 | 402,545 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate Securities | ||
Assets | ||
Investments | 33,842,028 | 34,627,534 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Residential Mortgage Backed Securities | ||
Assets | ||
Investments | 1,210,559 | 1,125,049 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Commercial Mortgage Backed Securities | ||
Assets | ||
Investments | 4,769,867 | 4,840,311 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Other Asset Backed Securities | ||
Assets | ||
Investments | 5,376,980 | 5,271,857 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Equity Securities | ||
Assets | ||
Investments | 25,436 | 5,877 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Reinsurance Related Embedded Derivative | ||
Liabilities | ||
Derivative liabilities | (204,806) | (2,362) |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Fixed Index Annuities - Embedded Derivatives | ||
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Real estate investments | 510,188 | 337,939 |
Derivative instruments | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Assets | 514,055 | 344,288 |
Liabilities | ||
Liabilities | 6,770,915 | 7,964,961 |
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 Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Equity Securities | ||
Assets | ||
Investments | 3,867 | 6,349 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Reinsurance Related Embedded Derivative | ||
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Fixed Index Annuities - Embedded Derivatives | ||
Liabilities | ||
Derivative liabilities | $ 6,770,915 | $ 7,964,961 |
Fair Values of Financial Inst_6
Fair Values of Financial Instruments (Assumptions Used in Estimating Fair Value) (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Expected cost of annual call options | 2.10% | 2.10% |
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 | 3.13% | 3.04% |
Average partial withdrawal rates | 2.20% | 2.19% |
Fixed Index Annuities | Average | Contract Duration (Years), 6-10 | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Average lapse rates | 2.91% | 2.84% |
Average partial withdrawal rates | 2.27% | 2.26% |
Fixed Index Annuities | Average | Contract Duration (Years), 11-15 | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Average lapse rates | 4.32% | 4.47% |
Average partial withdrawal rates | 2.11% | 2.14% |
Fixed Index Annuities | Average | Contract Duration (Years), 16-20 | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Average lapse rates | 9.30% | 8.93% |
Average partial withdrawal rates | 1.30% | 1.33% |
Fixed Index Annuities | Average | Contract Duration (Years), 20 or More | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Average lapse rates | 4.97% | 4.93% |
Average partial withdrawal rates | 0.00% | 0.00% |
Fair Values of Financial Inst_7
Fair Values of Financial Instruments (Reconciliation of Beginning and Ending Balances of Level 3 Assets and Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Coinsurance ceded, fixed index annuities embedded derivatives | $ 8,713,069 | $ 8,850,608 | |
Fair Value, Measurements, Recurring | Equity Securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 6,349 | $ 0 | |
Transfers in | 0 | 0 | |
Included in net income | (2,482) | 0 | |
Included in other comprehensive income (loss) | 0 | 0 | |
Ending balance | 3,867 | 0 | |
Fair Value, Measurements, Recurring | Real Estate Investments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 337,939 | 0 | |
Purchases and sales, net | 168,088 | 0 | |
Included in net income | 4,161 | 0 | |
Ending balance | 510,188 | 0 | |
Fixed Index Annuities - Embedded Derivatives | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Coinsurance ceded, fixed index annuities embedded derivatives | 1,048,700 | $ 1,245,000 | |
Fixed Index Annuities - Embedded Derivatives | Fair Value, Measurements, Recurring | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning balance | 7,964,961 | 7,938,281 | |
Premiums less benefits | 114,077 | 119,791 | |
Change in fair value, net | (1,308,123) | (377,121) | |
Ending balance | $ 6,770,915 | $ 7,680,951 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022USD ($)Securities | Mar. 31, 2021USD ($) | Dec. 31, 2021Securities | |
Investments [Abstract] | |||
Percentage of fixed maturity portfolio rated investment grade based on NAIC designations | 98.00% | 98.00% | |
Number of securities in unrealized loss position | Securities | 3,781 | 1,427 | |
Percentage of unrealized losses on fixed maturity securities where securities are rated investment grade | 97.00% | 85.00% | |
Proceeds from sales of available for sale fixed maturity securities | $ 1,200 | $ 122.2 | |
Principal repayments, calls and tenders for available for sale fixed maturity securities | $ 600 | $ 1,000 |
Investments (Schedule of Fixed
Investments (Schedule of Fixed Maturity Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Fixed maturity securities, available for sale, amortized cost | [1] | $ 49,364,915 | $ 46,999,183 | ||
Fixed maturity securities, available for sale, gross unrealized gains | 1,671,507 | 4,421,976 | |||
Fixed maturity securities, available for sale, gross unrealized losses | [2] | (1,367,725) | (112,370) | ||
Fixed maturity securities, available for sale, allowance for credit losses | (6,577) | (2,846) | $ (59,698) | $ (64,771) | |
Fixed maturity securities, available for sale, fair value | 49,662,120 | 51,305,943 | |||
Accrued interest receivable | 440,500 | 400,700 | |||
United States Government Full Faith and Credit | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fixed maturity securities, available for sale, amortized cost | [1] | 39,302 | 37,109 | ||
Fixed maturity securities, available for sale, gross unrealized gains | 88 | 718 | |||
Fixed maturity securities, available for sale, gross unrealized losses | [2] | (724) | (34) | ||
Fixed maturity securities, available for sale, allowance for credit losses | 0 | 0 | |||
Fixed maturity securities, available for sale, fair value | 38,666 | 37,793 | |||
United States Government Sponsored Agencies | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fixed maturity securities, available for sale, amortized cost | [1] | 158,596 | 1,008,920 | ||
Fixed maturity securities, available for sale, gross unrealized gains | 18,473 | 32,123 | |||
Fixed maturity securities, available for sale, gross unrealized losses | [2] | (2,224) | (90) | ||
Fixed maturity securities, available for sale, allowance for credit losses | 0 | 0 | |||
Fixed maturity securities, available for sale, fair value | 174,845 | 1,040,953 | |||
United States Municipalities, States and Territories | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fixed maturity securities, available for sale, amortized cost | [1] | 3,694,146 | 3,495,563 | ||
Fixed maturity securities, available for sale, gross unrealized gains | 214,986 | 437,456 | |||
Fixed maturity securities, available for sale, gross unrealized losses | [2] | (94,613) | (3,042) | ||
Fixed maturity securities, available for sale, allowance for credit losses | (2,009) | (2,776) | (2,791) | (2,844) | |
Fixed maturity securities, available for sale, fair value | 3,812,510 | 3,927,201 | |||
Foreign Government Obligations | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fixed maturity securities, available for sale, amortized cost | [1] | 415,227 | 380,646 | ||
Fixed maturity securities, available for sale, gross unrealized gains | 11,175 | 22,742 | |||
Fixed maturity securities, available for sale, gross unrealized losses | [2] | (21,236) | (843) | ||
Fixed maturity securities, available for sale, allowance for credit losses | 0 | 0 | |||
Fixed maturity securities, available for sale, fair value | 405,166 | 402,545 | |||
Corporate Securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fixed maturity securities, available for sale, amortized cost | [1] | 33,550,018 | 31,084,629 | ||
Fixed maturity securities, available for sale, gross unrealized gains | 1,311,404 | 3,614,047 | |||
Fixed maturity securities, available for sale, gross unrealized losses | [2] | (984,070) | (38,442) | ||
Fixed maturity securities, available for sale, allowance for credit losses | (3,825) | 0 | (55,715) | (60,193) | |
Fixed maturity securities, available for sale, fair value | 33,873,527 | 34,660,234 | |||
Residential Mortgage Backed Securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fixed maturity securities, available for sale, amortized cost | [1] | 1,195,436 | 1,056,778 | ||
Fixed maturity securities, available for sale, gross unrealized gains | 38,688 | 70,434 | |||
Fixed maturity securities, available for sale, gross unrealized losses | [2] | (22,822) | (2,093) | ||
Fixed maturity securities, available for sale, allowance for credit losses | (743) | (70) | (1,192) | (1,734) | |
Fixed maturity securities, available for sale, fair value | 1,210,559 | 1,125,049 | |||
Commercial Mortgage Backed Securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fixed maturity securities, available for sale, amortized cost | [1] | 4,873,980 | 4,708,878 | ||
Fixed maturity securities, available for sale, gross unrealized gains | 23,338 | 149,152 | |||
Fixed maturity securities, available for sale, gross unrealized losses | [2] | (127,451) | (17,719) | ||
Fixed maturity securities, available for sale, allowance for credit losses | 0 | 0 | 0 | 0 | |
Fixed maturity securities, available for sale, fair value | 4,769,867 | 4,840,311 | |||
Other Asset Backed Securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fixed maturity securities, available for sale, amortized cost | [1] | 5,438,210 | 5,226,660 | ||
Fixed maturity securities, available for sale, gross unrealized gains | 53,355 | 95,304 | |||
Fixed maturity securities, available for sale, gross unrealized losses | [2] | (114,585) | (50,107) | ||
Fixed maturity securities, available for sale, allowance for credit losses | 0 | 0 | $ 0 | $ 0 | |
Fixed maturity securities, available for sale, fair value | $ 5,376,980 | $ 5,271,857 | |||
[1] | Amortized cost excludes accrued interest receivable of $440.5 million and $400.7 million as of March 31, 2022 and December 31, 2021, respectively. | ||||
[2] | Gross unrealized losses are net of allowance for credit losses. |
Investments (Fixed Maturity Sec
Investments (Fixed Maturity Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | ||
Fixed maturity securities, available for sale, due in one year or less, amortized cost | $ 1,285,124 | |
Fixed maturity securities, available for sale, due after one year through five years, amortized cost | 8,050,284 | |
Fixed maturity securities, available for sale, due after five years through ten years, amortized cost | 7,228,862 | |
Fixed maturity securities, available for sale, due after ten years through twenty years, amortized cost | 10,741,247 | |
Fixed maturity securities, available for sale, due after twenty years, amortized cost | 10,551,772 | |
Fixed maturity securities, available for sale, securities with a single maturity date, amortized cost | 37,857,289 | |
Fixed maturity securities, available for sale, amortized cost | 49,364,915 | $ 46,999,183 |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ||
Fixed maturity securities, available for sale, due in one year or less, fair value | 1,294,473 | |
Fixed maturity securities, available for sale, due after one year through five years, fair value | 8,089,245 | |
Fixed maturity securities, available for sale, due after five years through ten years, fair value | 7,278,595 | |
Fixed maturity securities, available for sale, due after ten years through twenty years, fair value | 11,453,442 | |
Fixed maturity securities, available for sale, due after twenty years, fair value | 10,188,959 | |
Fixed maturity securities, available for sale, securities with a single maturity date, fair value | 38,304,714 | |
Fixed maturity securities, available for sale, fair value | 49,662,120 | $ 51,305,943 |
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 | 1,195,436 | |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ||
Fixed maturity securities, available for sale, securities without a single maturity date, fair value | 1,210,559 | |
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 | 4,873,980 | |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ||
Fixed maturity securities, available for sale, securities without a single maturity date, fair value | 4,769,867 | |
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 | 5,438,210 | |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ||
Fixed maturity securities, available for sale, securities without a single maturity date, fair value | $ 5,376,980 |
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Investments [Abstract] | ||
Net unrealized gains on available for sale fixed maturity securities | $ 295,235 | $ 4,309,606 |
Adjustments for assumed changes in amortization of deferred policy acquisition costs, deferred sales inducements and policy benefit reserves | (242,590) | (1,993,869) |
Deferred income tax valuation allowance reversal | 22,534 | 22,534 |
Deferred income tax expense | (11,473) | (489,482) |
Net unrealized gains reported as accumulated other comprehensive income | $ 63,706 | $ 1,848,789 |
Investments (Credit Quality of
Investments (Credit Quality of Fixed Maturity Security Portfolio by NAIC Designation) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Investment Holdings [Line Items] | ||
Fixed maturity securities, available for sale, amortized cost | $ 49,364,915 | $ 46,999,183 |
Fixed maturity securities, available for sale, fair value | 49,662,120 | 51,305,943 |
NAIC, Class 1 Designation | ||
Investment Holdings [Line Items] | ||
Fixed maturity securities, available for sale, amortized cost | 27,701,587 | 26,157,531 |
Fixed maturity securities, available for sale, fair value | 28,064,072 | 28,785,839 |
NAIC, Class 2 Designation | ||
Investment Holdings [Line Items] | ||
Fixed maturity securities, available for sale, amortized cost | 20,740,585 | 19,758,594 |
Fixed maturity securities, available for sale, fair value | 20,701,013 | 21,396,020 |
NAIC, Class 3 Designation | ||
Investment Holdings [Line Items] | ||
Fixed maturity securities, available for sale, amortized cost | 772,726 | 909,311 |
Fixed maturity securities, available for sale, fair value | 748,881 | 941,210 |
NAIC, Class 4 Designation | ||
Investment Holdings [Line Items] | ||
Fixed maturity securities, available for sale, amortized cost | 117,725 | 133,070 |
Fixed maturity securities, available for sale, fair value | 122,867 | 147,160 |
NAIC, Class 5 Designation | ||
Investment Holdings [Line Items] | ||
Fixed maturity securities, available for sale, amortized cost | 3,259 | 16,496 |
Fixed maturity securities, available for sale, fair value | 3,259 | 15,357 |
NAIC, Class 6 Designation | ||
Investment Holdings [Line Items] | ||
Fixed maturity securities, available for sale, amortized cost | 29,033 | 24,181 |
Fixed maturity securities, available for sale, fair value | $ 22,028 | $ 20,357 |
Investments (Gross Unrealized L
Investments (Gross Unrealized Losses on Investments, By Category and Length of Time) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Line Items] | |||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, fair value | $ 20,483,651 | $ 5,735,135 | |||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | [1] | (1,267,155) | (51,758) | ||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 2,002,636 | 2,072,853 | |||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | [1] | (107,147) | (63,458) | ||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 22,486,287 | 7,807,988 | |||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | [1] | (1,374,302) | (115,216) | ||
Fixed maturity securities, available for sale, allowance for credit losses | 6,577 | 2,846 | $ 59,698 | $ 64,771 | |
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 | 27,565 | 1,007 | |||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | [1] | (686) | (34) | ||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 434 | 0 | |||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | [1] | (38) | 0 | ||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 27,999 | 1,007 | |||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | [1] | (724) | (34) | ||
Fixed maturity securities, available for sale, allowance for credit losses | 0 | 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 | 11,468 | 759,970 | |||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | [1] | (2,224) | (90) | ||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 0 | 0 | |||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | [1] | 0 | 0 | ||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 11,468 | 759,970 | |||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | [1] | (2,224) | (90) | ||
Fixed maturity securities, available for sale, allowance for credit losses | 0 | 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 | 1,161,530 | 168,942 | |||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | [1] | (94,117) | (2,468) | ||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 18,344 | 15,711 | |||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | [1] | (2,505) | (3,350) | ||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 1,179,874 | 184,653 | |||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | [1] | (96,622) | (5,818) | ||
Fixed maturity securities, available for sale, allowance for credit losses | 2,009 | 2,776 | 2,791 | 2,844 | |
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 | 252,267 | 42,861 | |||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | [1] | (21,236) | (843) | ||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 0 | 0 | |||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | [1] | 0 | 0 | ||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 252,267 | 42,861 | |||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | [1] | (21,236) | (843) | ||
Fixed maturity securities, available for sale, allowance for credit losses | 0 | 0 | |||
Corporate Securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, fair value | 12,808,738 | 2,375,603 | |||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | [1] | (965,862) | (30,070) | ||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 131,098 | 116,819 | |||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | [1] | (22,033) | (8,372) | ||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 12,939,836 | 2,492,422 | |||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | [1] | (987,895) | (38,442) | ||
Fixed maturity securities, available for sale, allowance for credit losses | 3,825 | 0 | 55,715 | 60,193 | |
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 | 501,285 | 250,964 | |||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | [1] | (21,186) | (1,408) | ||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 32,665 | 26,917 | |||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | [1] | (2,379) | (755) | ||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 533,950 | 277,881 | |||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | [1] | (23,565) | (2,163) | ||
Fixed maturity securities, available for sale, allowance for credit losses | 743 | 70 | 1,192 | 1,734 | |
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 | 3,217,274 | 784,464 | |||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | [1] | (111,459) | (5,500) | ||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 88,148 | 142,224 | |||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | [1] | (15,992) | (12,219) | ||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 3,305,422 | 926,688 | |||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | [1] | (127,451) | (17,719) | ||
Fixed maturity securities, available for sale, allowance for credit losses | 0 | 0 | 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 | 2,503,524 | 1,351,324 | |||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | [1] | (50,385) | (11,345) | ||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 1,731,947 | 1,771,182 | |||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | [1] | (64,200) | (38,762) | ||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 4,235,471 | 3,122,506 | |||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | [1] | (114,585) | (50,107) | ||
Fixed maturity securities, available for sale, allowance for credit losses | $ 0 | $ 0 | $ 0 | $ 0 | |
[1] | Unrealized losses have not been reduced to reflect the allowance for credit losses of $6.6 million and $2.8 million as of March 31, 2022 and December 31, 2021, respectively. |
Investments (Changes in Net Unr
Investments (Changes in Net Unrealized Gains/Losses on Investments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Investments [Abstract] | ||
Fixed maturity securities available for sale carried at fair value | $ (4,014,371) | $ (1,661,361) |
Adjustment for effect on other balance sheet accounts: | ||
Deferred policy acquisition costs, deferred sales inducements and policy benefit reserves | 1,751,279 | 777,441 |
Deferred income tax asset/liability | 478,009 | 185,623 |
Total adjustment for effect on other balance sheet accounts | 2,229,288 | 963,064 |
Change in net unrealized gains/losses on investments carried at fair value | $ (1,785,083) | $ (698,297) |
Investments (Net Realized Gains
Investments (Net Realized Gains (Losses) on Invesments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Gain (Loss) on Securities [Line Items] | ||
Decrease (increase) in allowance for credit losses | $ (5,245) | $ 2,515 |
Net realized losses on investments | (13,127) | (4,583) |
Available For Sale Fixed Maturity Securities | ||
Gain (Loss) on Securities [Line Items] | ||
Gross realized gains | 3,465 | 2,367 |
Gross realized losses | (2,006) | (8,196) |
Net credit loss (provision) release | (7,356) | (1,437) |
Realized gains (losses) | (5,897) | (7,266) |
Mortgage Loans on Real Estate | ||
Gain (Loss) on Securities [Line Items] | ||
Decrease (increase) in allowance for credit losses | (5,245) | 2,515 |
Gain (loss) on sale of mortgage loans | (1,985) | 168 |
Gain (loss) on mortgage loans | $ (7,230) | $ 2,683 |
Investments (Rollforward of All
Investments (Rollforward of Allowance for Credit Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Beginning balance | $ 2,846 | $ 64,771 |
Additions for credit losses not previously recorded | 4,161 | 816 |
Change in allowance on securities with previous allowance | (430) | 621 |
Reduction for securities sold during the period | 0 | (6,510) |
Ending balance | 6,577 | 59,698 |
United States Municipalities, States and Territories | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 2,776 | 2,844 |
Additions for credit losses not previously recorded | 0 | 0 |
Change in allowance on securities with previous allowance | (767) | (53) |
Reduction for securities sold during the period | 0 | 0 |
Ending balance | 2,009 | 2,791 |
Corporate Securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 0 | 60,193 |
Additions for credit losses not previously recorded | 3,825 | 705 |
Change in allowance on securities with previous allowance | 0 | 1,327 |
Reduction for securities sold during the period | 0 | (6,510) |
Ending balance | 3,825 | 55,715 |
Commercial Mortgage Backed Securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 0 | 0 |
Additions for credit losses not previously recorded | 0 | 0 |
Change in allowance on securities with previous allowance | 0 | 0 |
Reduction for securities sold during the period | 0 | 0 |
Ending balance | 0 | 0 |
Residential Mortgage Backed Securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 70 | 1,734 |
Additions for credit losses not previously recorded | 336 | 111 |
Change in allowance on securities with previous allowance | 337 | (653) |
Reduction for securities sold during the period | 0 | 0 |
Ending balance | 743 | 1,192 |
Other Asset Backed Securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 0 | 0 |
Additions for credit losses not previously recorded | 0 | 0 |
Change in allowance on securities with previous allowance | 0 | 0 |
Reduction for securities sold during the period | 0 | 0 |
Ending balance | $ 0 | $ 0 |
Mortgage Loans on Real Estate_2
Mortgage Loans on Real Estate (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022USD ($)loansportfolio_segment | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($)loans | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Number of portfolio segments that make up financing receivables | portfolio_segment | 3 | ||
Commitments outstanding | $ 444,200 | ||
Real estate owned | $ 0 | $ 0 | |
Non-accrual status, number of loans | loans | 34 | 13 | |
Interest income recognized on non-accrual loans | $ 0 | $ 0 | |
Financing receivable, modifications, period of time of delaying principal and/or interest (months) | 3 months | ||
Number of TDRs | loans | 0 | 0 | |
Minimum | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Number of days past due, nonperforming | 90 days | ||
Commercial Mortgage Loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Accrued interest receivable written off | $ 0 | 0 | |
Residential Mortgage Loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Accrued interest receivable written off | 0 | 0 | |
Agricultural Mortgage Loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Accrued interest receivable written off | $ 0 | $ 0 |
Mortgage Loans on Real Estate_3
Mortgage Loans on Real Estate (Summary of Mortgage Loan Portfolio) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Valuation allowance | $ (29,269) | $ (24,024) | $ (28,514) | $ (31,029) |
Mortgage loans, carrying value | 5,734,872 | 5,687,998 | ||
Commercial Mortgage Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal outstanding | 3,610,872 | 3,633,131 | ||
Deferred fees and costs, net | (4,873) | (4,629) | ||
Mortgage loans, amortized cost | 3,605,999 | 3,628,502 | ||
Valuation allowance | (24,587) | (17,926) | (26,139) | (25,529) |
Mortgage loans, carrying value | 3,581,412 | 3,610,576 | ||
Agricultural Mortgage Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal outstanding | 464,431 | 408,135 | ||
Deferred fees and costs, net | (1,344) | (1,136) | ||
Mortgage loans, amortized cost | 463,087 | 406,999 | ||
Valuation allowance | (558) | (519) | (439) | (2,130) |
Mortgage loans, carrying value | 462,529 | 406,480 | ||
Residential Mortgage Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal outstanding | 1,669,897 | 1,652,910 | ||
Deferred fees and costs, net | 1,432 | 1,468 | ||
Unamortized discounts and premiums, net | 23,726 | 22,143 | ||
Mortgage loans, amortized cost | 1,695,055 | 1,676,521 | ||
Valuation allowance | (4,124) | (5,579) | $ (1,936) | $ (3,370) |
Mortgage loans, carrying value | $ 1,690,931 | $ 1,670,942 |
Mortgage Loans on Real Estate_4
Mortgage Loans on Real Estate (Commercial Mortgage Loan Portfolio Summarized by Geographic Region and Property Type) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest receivable | $ 35,200 | $ 37,000 |
Commercial Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 3,610,872 | $ 3,633,131 |
Percent | 100.00% | 100.00% |
Commercial Mortgage Loans | East | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 596,667 | $ 614,406 |
Percent | 16.50% | 16.90% |
Commercial Mortgage Loans | Middle Atlantic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 296,015 | $ 293,494 |
Percent | 8.20% | 8.10% |
Commercial Mortgage Loans | Mountain | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 459,562 | $ 452,818 |
Percent | 12.70% | 12.50% |
Commercial Mortgage Loans | New England | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 59,996 | $ 60,172 |
Percent | 1.70% | 1.60% |
Commercial Mortgage Loans | Pacific | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 884,983 | $ 863,879 |
Percent | 24.50% | 23.80% |
Commercial Mortgage Loans | South Atlantic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 758,905 | $ 785,679 |
Percent | 21.00% | 21.60% |
Commercial Mortgage Loans | West North Central | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 225,801 | $ 235,864 |
Percent | 6.30% | 6.50% |
Commercial Mortgage Loans | West South Central | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 328,943 | $ 326,819 |
Percent | 9.10% | 9.00% |
Commercial Mortgage Loans | Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 353,011 | $ 315,374 |
Percent | 9.80% | 8.70% |
Commercial Mortgage Loans | Medical Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 10,688 | $ 10,827 |
Percent | 0.30% | 0.30% |
Commercial Mortgage Loans | Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 997,613 | $ 1,016,101 |
Percent | 27.60% | 28.00% |
Commercial Mortgage Loans | Industrial/Warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 900,747 | $ 924,779 |
Percent | 24.90% | 25.40% |
Commercial Mortgage Loans | Apartment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 850,404 | $ 864,580 |
Percent | 23.60% | 23.80% |
Commercial Mortgage Loans | Hotel | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 285,010 | $ 283,500 |
Percent | 7.90% | 7.80% |
Commercial Mortgage Loans | Mixed Use/Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 213,399 | $ 217,970 |
Percent | 5.90% | 6.00% |
Agricultural Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 464,431 | $ 408,135 |
Residential Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 1,669,897 | $ 1,652,910 |
Mortgage Loans on Real Estate_5
Mortgage Loans on Real Estate (Rollforward of Valuation Allowance on Mortgage Loan Portfolios) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning allowance balance | $ (24,024) | $ (31,029) |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Change in provision for credit losses | (5,245) | 2,515 |
Ending allowance balance | (29,269) | (28,514) |
Commercial | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning allowance balance | (17,926) | (25,529) |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Change in provision for credit losses | (6,661) | (610) |
Ending allowance balance | (24,587) | (26,139) |
Agricultural Mortgage Loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning allowance balance | (519) | (2,130) |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Change in provision for credit losses | (39) | 1,691 |
Ending allowance balance | (558) | (439) |
Residential | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning allowance balance | (5,579) | (3,370) |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Change in provision for credit losses | 1,455 | 1,434 |
Ending allowance balance | $ (4,124) | $ (1,936) |
Mortgage Loans on Real Estate_6
Mortgage Loans on Real Estate (Summary By Debt Service Coverage and Loan to Value Ratios) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Amortized cost, year one, originated in current fiscal year | $ 90,976 | $ 592,095 |
Average LTV, year one, originated in current fiscal year | 63.00% | 54.00% |
Amortized cost, year two, originated in fiscal year before current fiscal year | $ 593,129 | $ 534,839 |
Average LTV, year two, originated in fiscal year before current fiscal year | 54.00% | 61.00% |
Amortized cost, year three, originated two years before current fiscal year | $ 501,301 | $ 688,191 |
Average LTV, year three, originated two years before current fiscal year | 61.00% | 64.00% |
Amortized cost, year four, originated three years before current fiscal year | $ 662,996 | $ 459,451 |
Average LTV, year four, originated three years before current fiscal year | 64.00% | 60.00% |
Amortized cost, year five, originated four years before current fiscal year | $ 456,478 | $ 402,400 |
Average LTV, year five, originated four years before current fiscal year | 60.00% | 58.00% |
Amortized cost, originated more than five years before current fiscal year | $ 1,301,119 | $ 951,526 |
Average LTV, originated more than five years before current fiscal year | 50.00% | 47.00% |
Mortgage loans, amortized cost | $ 3,605,999 | $ 3,628,502 |
Total - Average LTV | 56.00% | 56.00% |
Commercial Mortgage Loans | Debt Service Coverage Ratio: Greater Than or Equal to 1.5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Amortized cost, year one, originated in current fiscal year | $ 78,485 | $ 260,623 |
Average LTV, year one, originated in current fiscal year | 64.00% | 64.00% |
Amortized cost, year two, originated in fiscal year before current fiscal year | $ 259,927 | $ 454,828 |
Average LTV, year two, originated in fiscal year before current fiscal year | 65.00% | 60.00% |
Amortized cost, year three, originated two years before current fiscal year | $ 421,975 | $ 464,059 |
Average LTV, year three, originated two years before current fiscal year | 59.00% | 61.00% |
Amortized cost, year four, originated three years before current fiscal year | $ 462,591 | $ 344,170 |
Average LTV, year four, originated three years before current fiscal year | 61.00% | 58.00% |
Amortized cost, year five, originated four years before current fiscal year | $ 344,612 | $ 246,854 |
Average LTV, year five, originated four years before current fiscal year | 57.00% | 52.00% |
Amortized cost, originated more than five years before current fiscal year | $ 968,571 | $ 758,494 |
Average LTV, originated more than five years before current fiscal year | 46.00% | 45.00% |
Mortgage loans, amortized cost | $ 2,536,161 | $ 2,529,028 |
Total - Average LTV | 55.00% | 55.00% |
Commercial Mortgage Loans | Debt Service Coverage Ratio: Greater Than or Equal to 1.2 and Less Than 1.5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Amortized cost, year one, originated in current fiscal year | $ 0 | $ 12,836 |
Average LTV, year one, originated in current fiscal year | 0.00% | 67.00% |
Amortized cost, year two, originated in fiscal year before current fiscal year | $ 12,698 | $ 58,960 |
Average LTV, year two, originated in fiscal year before current fiscal year | 67.00% | 66.00% |
Amortized cost, year three, originated two years before current fiscal year | $ 58,438 | $ 128,301 |
Average LTV, year three, originated two years before current fiscal year | 65.00% | 70.00% |
Amortized cost, year four, originated three years before current fiscal year | $ 127,455 | $ 89,293 |
Average LTV, year four, originated three years before current fiscal year | 69.00% | 66.00% |
Amortized cost, year five, originated four years before current fiscal year | $ 95,119 | $ 135,818 |
Average LTV, year five, originated four years before current fiscal year | 67.00% | 66.00% |
Amortized cost, originated more than five years before current fiscal year | $ 251,192 | $ 129,833 |
Average LTV, originated more than five years before current fiscal year | 60.00% | 57.00% |
Mortgage loans, amortized cost | $ 544,902 | $ 555,041 |
Total - Average LTV | 64.00% | 65.00% |
Commercial Mortgage Loans | Debt Service Coverage Ratio: Greater Than or Equal to 1.0 and Less Than 1.2 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Amortized cost, year one, originated in current fiscal year | $ 0 | $ 318,636 |
Average LTV, year one, originated in current fiscal year | 0.00% | 45.00% |
Amortized cost, year two, originated in fiscal year before current fiscal year | $ 320,504 | $ 17,762 |
Average LTV, year two, originated in fiscal year before current fiscal year | 45.00% | 82.00% |
Amortized cost, year three, originated two years before current fiscal year | $ 17,648 | $ 69,684 |
Average LTV, year three, originated two years before current fiscal year | 82.00% | 72.00% |
Amortized cost, year four, originated three years before current fiscal year | $ 69,336 | $ 11,937 |
Average LTV, year four, originated three years before current fiscal year | 72.00% | 75.00% |
Amortized cost, year five, originated four years before current fiscal year | $ 2,799 | $ 6,343 |
Average LTV, year five, originated four years before current fiscal year | 44.00% | 60.00% |
Amortized cost, originated more than five years before current fiscal year | $ 47,592 | $ 42,125 |
Average LTV, originated more than five years before current fiscal year | 58.00% | 58.00% |
Mortgage loans, amortized cost | $ 457,879 | $ 466,487 |
Total - Average LTV | 52.00% | 53.00% |
Commercial Mortgage Loans | Debt Service Coverage Ratio: Less Than 1.0 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Amortized cost, year one, originated in current fiscal year | $ 12,491 | $ 0 |
Average LTV, year one, originated in current fiscal year | 60.00% | 0.00% |
Amortized cost, year two, originated in fiscal year before current fiscal year | $ 0 | $ 3,289 |
Average LTV, year two, originated in fiscal year before current fiscal year | 0.00% | 61.00% |
Amortized cost, year three, originated two years before current fiscal year | $ 3,240 | $ 26,147 |
Average LTV, year three, originated two years before current fiscal year | 60.00% | 63.00% |
Amortized cost, year four, originated three years before current fiscal year | $ 3,614 | $ 14,051 |
Average LTV, year four, originated three years before current fiscal year | 50.00% | 76.00% |
Amortized cost, year five, originated four years before current fiscal year | $ 13,948 | $ 13,385 |
Average LTV, year five, originated four years before current fiscal year | 76.00% | 73.00% |
Amortized cost, originated more than five years before current fiscal year | $ 33,764 | $ 21,074 |
Average LTV, originated more than five years before current fiscal year | 61.00% | 54.00% |
Mortgage loans, amortized cost | $ 67,057 | $ 77,946 |
Total - Average LTV | 63.00% | 65.00% |
Agricultural Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Amortized cost, year one, originated in current fiscal year | $ 66,743 | $ 165,764 |
Average LTV, year one, originated in current fiscal year | 47.00% | 54.00% |
Amortized cost, year two, originated in fiscal year before current fiscal year | $ 164,616 | $ 196,521 |
Average LTV, year two, originated in fiscal year before current fiscal year | 54.00% | 49.00% |
Amortized cost, year three, originated two years before current fiscal year | $ 190,440 | $ 19,714 |
Average LTV, year three, originated two years before current fiscal year | 48.00% | 45.00% |
Amortized cost, year four, originated three years before current fiscal year | $ 16,288 | $ 25,000 |
Average LTV, year four, originated three years before current fiscal year | 43.00% | 11.00% |
Amortized cost, year five, originated four years before current fiscal year | $ 25,000 | $ 0 |
Average LTV, year five, originated four years before current fiscal year | 11.00% | 0.00% |
Amortized cost, originated more than five years before current fiscal year | $ 0 | $ 0 |
Average LTV, originated more than five years before current fiscal year | 0.00% | 0.00% |
Mortgage loans, amortized cost | $ 463,087 | $ 406,999 |
Total - Average LTV | 48.00% | 48.00% |
Agricultural Mortgage Loans | Debt Service Coverage Ratio: Greater Than or Equal to 1.5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Amortized cost, year one, originated in current fiscal year | $ 37,099 | $ 62,548 |
Average LTV, year one, originated in current fiscal year | 37.00% | 54.00% |
Amortized cost, year two, originated in fiscal year before current fiscal year | $ 62,058 | $ 80,919 |
Average LTV, year two, originated in fiscal year before current fiscal year | 53.00% | 56.00% |
Amortized cost, year three, originated two years before current fiscal year | $ 78,431 | $ 11,645 |
Average LTV, year three, originated two years before current fiscal year | 56.00% | 49.00% |
Amortized cost, year four, originated three years before current fiscal year | $ 11,553 | $ 25,000 |
Average LTV, year four, originated three years before current fiscal year | 48.00% | 11.00% |
Amortized cost, year five, originated four years before current fiscal year | $ 25,000 | $ 0 |
Average LTV, year five, originated four years before current fiscal year | 11.00% | 0.00% |
Amortized cost, originated more than five years before current fiscal year | $ 0 | $ 0 |
Average LTV, originated more than five years before current fiscal year | 0.00% | 0.00% |
Mortgage loans, amortized cost | $ 214,141 | $ 180,112 |
Total - Average LTV | 46.00% | 49.00% |
Agricultural Mortgage Loans | Debt Service Coverage Ratio: Greater Than or Equal to 1.2 and Less Than 1.5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Amortized cost, year one, originated in current fiscal year | $ 22,719 | $ 95,738 |
Average LTV, year one, originated in current fiscal year | 55.00% | 55.00% |
Amortized cost, year two, originated in fiscal year before current fiscal year | $ 95,201 | $ 102,958 |
Average LTV, year two, originated in fiscal year before current fiscal year | 55.00% | 43.00% |
Amortized cost, year three, originated two years before current fiscal year | $ 101,189 | $ 3,335 |
Average LTV, year three, originated two years before current fiscal year | 42.00% | 22.00% |
Amortized cost, year four, originated three years before current fiscal year | $ 3,301 | $ 0 |
Average LTV, year four, originated three years before current fiscal year | 22.00% | 0.00% |
Amortized cost, year five, originated four years before current fiscal year | $ 0 | $ 0 |
Average LTV, year five, originated four years before current fiscal year | 0.00% | 0.00% |
Amortized cost, originated more than five years before current fiscal year | $ 0 | $ 0 |
Average LTV, originated more than five years before current fiscal year | 0.00% | 0.00% |
Mortgage loans, amortized cost | $ 222,410 | $ 202,031 |
Total - Average LTV | 48.00% | 48.00% |
Agricultural Mortgage Loans | Debt Service Coverage Ratio: Greater Than or Equal to 1.0 and Less Than 1.2 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Amortized cost, year one, originated in current fiscal year | $ 6,925 | $ 7,478 |
Average LTV, year one, originated in current fiscal year | 76.00% | 44.00% |
Amortized cost, year two, originated in fiscal year before current fiscal year | $ 7,357 | $ 4,092 |
Average LTV, year two, originated in fiscal year before current fiscal year | 43.00% | 36.00% |
Amortized cost, year three, originated two years before current fiscal year | $ 4,064 | $ 4,734 |
Average LTV, year three, originated two years before current fiscal year | 36.00% | 50.00% |
Amortized cost, year four, originated three years before current fiscal year | $ 1,434 | $ 0 |
Average LTV, year four, originated three years before current fiscal year | 43.00% | 0.00% |
Amortized cost, year five, originated four years before current fiscal year | $ 0 | $ 0 |
Average LTV, year five, originated four years before current fiscal year | 0.00% | 0.00% |
Amortized cost, originated more than five years before current fiscal year | $ 0 | $ 0 |
Average LTV, originated more than five years before current fiscal year | 0.00% | 0.00% |
Mortgage loans, amortized cost | $ 19,780 | $ 16,304 |
Total - Average LTV | 53.00% | 44.00% |
Agricultural Mortgage Loans | Debt Service Coverage Ratio: Less Than 1.0 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Amortized cost, year one, originated in current fiscal year | $ 0 | $ 0 |
Average LTV, year one, originated in current fiscal year | 0.00% | 0.00% |
Amortized cost, year two, originated in fiscal year before current fiscal year | $ 0 | $ 8,552 |
Average LTV, year two, originated in fiscal year before current fiscal year | 0.00% | 59.00% |
Amortized cost, year three, originated two years before current fiscal year | $ 6,756 | $ 0 |
Average LTV, year three, originated two years before current fiscal year | 46.00% | 0.00% |
Amortized cost, year four, originated three years before current fiscal year | $ 0 | $ 0 |
Average LTV, year four, originated three years before current fiscal year | 0.00% | 0.00% |
Amortized cost, year five, originated four years before current fiscal year | $ 0 | $ 0 |
Average LTV, year five, originated four years before current fiscal year | 0.00% | 0.00% |
Amortized cost, originated more than five years before current fiscal year | $ 0 | $ 0 |
Average LTV, originated more than five years before current fiscal year | 0.00% | 0.00% |
Mortgage loans, amortized cost | $ 6,756 | $ 8,552 |
Total - Average LTV | 46.00% | 59.00% |
Mortgage Loans on Real Estate_7
Mortgage Loans on Real Estate (Aging of Financing Receivables) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Commercial Mortgage Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, originated in current fiscal year | $ 90,976 | $ 592,095 |
Amortized cost, originated in fiscal year before latest fiscal year | 593,129 | 534,839 |
Amortized cost, originated two years before latest fiscal year | 501,301 | 688,191 |
Amortized cost, originated three years before latest fiscal year | 662,996 | 459,451 |
Amortized cost, originated four years before latest fiscal year | 456,478 | 402,400 |
Amortized cost, originated five or more years before latest fiscal year | 1,301,119 | 951,526 |
Mortgage loans, amortized cost | 3,605,999 | 3,628,502 |
Commercial Mortgage Loans | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, originated in current fiscal year | 90,976 | 592,095 |
Amortized cost, originated in fiscal year before latest fiscal year | 593,129 | 534,839 |
Amortized cost, originated two years before latest fiscal year | 501,301 | 688,191 |
Amortized cost, originated three years before latest fiscal year | 662,996 | 459,451 |
Amortized cost, originated four years before latest fiscal year | 456,478 | 402,400 |
Amortized cost, originated five or more years before latest fiscal year | 1,301,119 | 951,526 |
Mortgage loans, amortized cost | 3,605,999 | 3,628,502 |
Commercial Mortgage Loans | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, originated in current fiscal year | 0 | 0 |
Amortized cost, originated in fiscal year before latest fiscal year | 0 | 0 |
Amortized cost, originated two years before latest fiscal year | 0 | 0 |
Amortized cost, originated three years before latest fiscal year | 0 | 0 |
Amortized cost, originated four years before latest fiscal year | 0 | 0 |
Amortized cost, originated five or more years before latest fiscal year | 0 | 0 |
Mortgage loans, amortized cost | 0 | 0 |
Commercial Mortgage Loans | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, originated in current fiscal year | 0 | 0 |
Amortized cost, originated in fiscal year before latest fiscal year | 0 | 0 |
Amortized cost, originated two years before latest fiscal year | 0 | 0 |
Amortized cost, originated three years before latest fiscal year | 0 | 0 |
Amortized cost, originated four years before latest fiscal year | 0 | 0 |
Amortized cost, originated five or more years before latest fiscal year | 0 | 0 |
Mortgage loans, amortized cost | 0 | 0 |
Commercial Mortgage Loans | Over 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, originated in current fiscal year | 0 | 0 |
Amortized cost, originated in fiscal year before latest fiscal year | 0 | 0 |
Amortized cost, originated two years before latest fiscal year | 0 | 0 |
Amortized cost, originated three years before latest fiscal year | 0 | 0 |
Amortized cost, originated four years before latest fiscal year | 0 | 0 |
Amortized cost, originated five or more years before latest fiscal year | 0 | 0 |
Mortgage loans, amortized cost | 0 | 0 |
Agricultural Mortgage Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, originated in current fiscal year | 66,743 | 165,764 |
Amortized cost, originated in fiscal year before latest fiscal year | 164,616 | 196,521 |
Amortized cost, originated two years before latest fiscal year | 190,440 | 19,714 |
Amortized cost, originated three years before latest fiscal year | 16,288 | 25,000 |
Amortized cost, originated four years before latest fiscal year | 25,000 | 0 |
Amortized cost, originated five or more years before latest fiscal year | 0 | 0 |
Mortgage loans, amortized cost | 463,087 | 406,999 |
Agricultural Mortgage Loans | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, originated in current fiscal year | 66,743 | 165,764 |
Amortized cost, originated in fiscal year before latest fiscal year | 164,616 | 196,521 |
Amortized cost, originated two years before latest fiscal year | 190,440 | 19,714 |
Amortized cost, originated three years before latest fiscal year | 16,288 | 25,000 |
Amortized cost, originated four years before latest fiscal year | 25,000 | 0 |
Amortized cost, originated five or more years before latest fiscal year | 0 | 0 |
Mortgage loans, amortized cost | 463,087 | 406,999 |
Agricultural Mortgage Loans | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, originated in current fiscal year | 0 | 0 |
Amortized cost, originated in fiscal year before latest fiscal year | 0 | 0 |
Amortized cost, originated two years before latest fiscal year | 0 | 0 |
Amortized cost, originated three years before latest fiscal year | 0 | 0 |
Amortized cost, originated four years before latest fiscal year | 0 | 0 |
Amortized cost, originated five or more years before latest fiscal year | 0 | 0 |
Mortgage loans, amortized cost | 0 | 0 |
Agricultural Mortgage Loans | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, originated in current fiscal year | 0 | 0 |
Amortized cost, originated in fiscal year before latest fiscal year | 0 | 0 |
Amortized cost, originated two years before latest fiscal year | 0 | 0 |
Amortized cost, originated three years before latest fiscal year | 0 | 0 |
Amortized cost, originated four years before latest fiscal year | 0 | 0 |
Amortized cost, originated five or more years before latest fiscal year | 0 | 0 |
Mortgage loans, amortized cost | 0 | 0 |
Agricultural Mortgage Loans | Over 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, originated in current fiscal year | 0 | 0 |
Amortized cost, originated in fiscal year before latest fiscal year | 0 | 0 |
Amortized cost, originated two years before latest fiscal year | 0 | 0 |
Amortized cost, originated three years before latest fiscal year | 0 | 0 |
Amortized cost, originated four years before latest fiscal year | 0 | 0 |
Amortized cost, originated five or more years before latest fiscal year | 0 | 0 |
Mortgage loans, amortized cost | 0 | 0 |
Residential Mortgage Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, originated in current fiscal year | 219,854 | 1,105,239 |
Amortized cost, originated in fiscal year before latest fiscal year | 1,040,856 | 473,444 |
Amortized cost, originated two years before latest fiscal year | 358,712 | 79,762 |
Amortized cost, originated three years before latest fiscal year | 63,363 | 17,325 |
Amortized cost, originated four years before latest fiscal year | 11,698 | 751 |
Amortized cost, originated five or more years before latest fiscal year | 572 | 0 |
Mortgage loans, amortized cost | 1,695,055 | 1,676,521 |
Residential Mortgage Loans | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, originated in current fiscal year | 172,104 | 1,092,438 |
Amortized cost, originated in fiscal year before latest fiscal year | 1,002,004 | 454,532 |
Amortized cost, originated two years before latest fiscal year | 332,075 | 67,380 |
Amortized cost, originated three years before latest fiscal year | 48,951 | 16,898 |
Amortized cost, originated four years before latest fiscal year | 9,669 | 751 |
Amortized cost, originated five or more years before latest fiscal year | 572 | 0 |
Mortgage loans, amortized cost | 1,565,375 | 1,631,999 |
Residential Mortgage Loans | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, originated in current fiscal year | 47,750 | 10,284 |
Amortized cost, originated in fiscal year before latest fiscal year | 12,618 | 12,363 |
Amortized cost, originated two years before latest fiscal year | 14,235 | 11,373 |
Amortized cost, originated three years before latest fiscal year | 14,311 | 427 |
Amortized cost, originated four years before latest fiscal year | 0 | 0 |
Amortized cost, originated five or more years before latest fiscal year | 0 | 0 |
Mortgage loans, amortized cost | 88,914 | 34,447 |
Residential Mortgage Loans | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, originated in current fiscal year | 0 | 1,838 |
Amortized cost, originated in fiscal year before latest fiscal year | 21,040 | 1,090 |
Amortized cost, originated two years before latest fiscal year | 5,133 | 102 |
Amortized cost, originated three years before latest fiscal year | 101 | 0 |
Amortized cost, originated four years before latest fiscal year | 2,029 | 0 |
Amortized cost, originated five or more years before latest fiscal year | 0 | 0 |
Mortgage loans, amortized cost | 28,303 | 3,030 |
Residential Mortgage Loans | Over 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, originated in current fiscal year | 0 | 679 |
Amortized cost, originated in fiscal year before latest fiscal year | 5,194 | 5,459 |
Amortized cost, originated two years before latest fiscal year | 7,269 | 907 |
Amortized cost, originated three years before latest fiscal year | 0 | 0 |
Amortized cost, originated four years before latest fiscal year | 0 | 0 |
Amortized cost, originated five or more years before latest fiscal year | 0 | 0 |
Mortgage loans, amortized cost | $ 12,463 | $ 7,045 |
Variable Interest Entities (Con
Variable Interest Entities (Consolidated VIEs) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)variable_interest_entities | Dec. 31, 2021USD ($) | |
Variable Interest Entity [Line Items] | ||
Consolidated VIE assets | $ 74,899,344 | $ 78,349,109 |
Consolidated VIE liabilities | $ 69,727,174 | 72,025,982 |
Variable Interest Entity, Real Estate Investments | ||
Variable Interest Entity [Line Items] | ||
Variable interest entities, number of consolidated variable interest entities | variable_interest_entities | 2 | |
Consolidated VIE assets | $ 543,435 | 363,229 |
Consolidated VIE liabilities | $ 64,598 | 20,168 |
Variable Interest Entity, Real Estate Investments, Residential Real Estate | ||
Variable Interest Entity [Line Items] | ||
Variable interest entities, number of consolidated variable interest entities | variable_interest_entities | 1 | |
Variable Interest Entity, Limited Partnership Funds | ||
Variable Interest Entity [Line Items] | ||
Variable interest entities, number of consolidated variable interest entities | variable_interest_entities | 2 | |
Consolidated VIE assets | $ 350,621 | 168,711 |
Consolidated VIE liabilities | $ 0 | 0 |
Variable Interest Entity, Limited Partnership Funds, Infrastructure Credit Assets | ||
Variable Interest Entity [Line Items] | ||
Variable interest entities, number of consolidated variable interest entities | variable_interest_entities | 1 | |
Variable Interest Entities | ||
Variable Interest Entity [Line Items] | ||
Consolidated VIE assets | $ 894,056 | 531,940 |
Consolidated VIE liabilities | $ 64,598 | $ 20,168 |
Variable Interest Entities (Unc
Variable Interest Entities (Unconsolidated VIEs) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Total assets | $ 74,899,344 | $ 78,349,109 |
Variable Interest Entity, Not Primary Beneficiary | Fixed Maturity Securities, Available For Sale | ||
Variable Interest Entity [Line Items] | ||
Total assets | 481,348 | 459,681 |
VIE, not the primary beneficiary, maximum loss exposure, amount | 481,348 | 459,681 |
Variable Interest Entity, Not Primary Beneficiary | Other Investments | ||
Variable Interest Entity [Line Items] | ||
Total assets | 345,000 | 345,000 |
VIE, not the primary beneficiary, maximum loss exposure, amount | $ 345,000 | $ 345,000 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative collateral | $ 700 | $ 1,300 |
Credit risk, maximum exposure | $ 4.6 | $ 8.5 |
Call Options | ||
Derivative [Line Items] | ||
Derivative, term of contract | 1 year |
Derivative Instruments (Fair Va
Derivative Instruments (Fair Value of Derivative Instruments as Presented in the Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 642,413 | $ 1,277,480 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 642,413 | 1,277,480 |
Derivative liabilities | 6,566,109 | 7,962,599 |
Not Designated as Hedging Instrument | Call Options | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 640,578 | 1,276,574 |
Not Designated as Hedging Instrument | Warrants | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 1,835 | 906 |
Not Designated as Hedging Instrument | Fixed Index Annuities - Embedded Derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 6,770,915 | 7,964,961 |
Not Designated as Hedging Instrument | Reinsurance Related Embedded Derivative | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ (204,806) | $ (2,362) |
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Change in fair value of derivatives | $ (477,519) | $ 396,305 |
Change in fair value of embedded derivatives | (1,393,649) | (282,413) |
Call Options | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Change in fair value of derivatives | (478,448) | 396,276 |
Warrants | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Change in fair value of derivatives | 929 | 29 |
Fixed Index Annuities - Embedded Derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Change in fair value of embedded derivatives | (1,308,123) | (377,121) |
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 | 116,918 | 94,708 |
Reinsurance Related Embedded Derivative | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Change in fair value of embedded derivatives | $ (202,444) | $ 0 |
Derivative Instruments (Derivat
Derivative Instruments (Derivative Call Options, Notional Amount and Fair Value, by Counterparty) (Details) - Call Options - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Notional amount | $ 40,221,513 | $ 40,091,353 |
Fair value | 640,578 | 1,276,574 |
Bank of America | ||
Derivative [Line Items] | ||
Notional amount | 3,392,015 | 3,556,256 |
Fair value | 25,419 | 99,229 |
Barclays | ||
Derivative [Line Items] | ||
Notional amount | 4,021,050 | 4,213,658 |
Fair value | 96,179 | 157,865 |
Canadian Imperial Bank of Commerce | ||
Derivative [Line Items] | ||
Notional amount | 3,496,022 | 3,956,329 |
Fair value | 78,800 | 141,540 |
Citibank, N.A. | ||
Derivative [Line Items] | ||
Notional amount | 2,573,024 | 3,190,833 |
Fair value | 16,407 | 115,860 |
Credit Suisse | ||
Derivative [Line Items] | ||
Notional amount | 3,655,865 | 3,716,868 |
Fair value | 40,370 | 113,295 |
J.P. Morgan | ||
Derivative [Line Items] | ||
Notional amount | 5,181,335 | 4,482,832 |
Fair value | 47,659 | 105,899 |
Morgan Stanley | ||
Derivative [Line Items] | ||
Notional amount | 2,911,156 | 2,223,743 |
Fair value | 11,199 | 47,950 |
Royal Bank of Canada | ||
Derivative [Line Items] | ||
Notional amount | 4,247,259 | 3,567,972 |
Fair value | 85,839 | 100,472 |
Societe Generale | ||
Derivative [Line Items] | ||
Notional amount | 2,373,286 | 2,548,072 |
Fair value | 39,953 | 86,494 |
Truist | ||
Derivative [Line Items] | ||
Notional amount | 2,170,979 | 2,547,808 |
Fair value | 52,640 | 94,924 |
Wells Fargo | ||
Derivative [Line Items] | ||
Notional amount | 5,917,801 | 5,820,381 |
Fair value | 141,532 | 206,403 |
Exchange Traded | ||
Derivative [Line Items] | ||
Notional amount | 281,721 | 266,601 |
Fair value | $ 4,581 | $ 6,643 |
Notes Payable (Schedule of Note
Notes Payable (Schedule of Notes Payable) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 16, 2017 |
Debt Instrument [Line Items] | |||
Notes payable | $ 496,425 | $ 496,250 | |
June 2027 Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | 500,000 | 500,000 | $ 500,000 |
Unamortized debt issue costs | (3,371) | (3,537) | |
Unamortized discount | $ (204) | $ (213) | $ (300) |
Notes Payable (2027 Notes Narra
Notes Payable (2027 Notes Narrative) (Details) - June 2027 Notes - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 16, 2017 |
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 500,000 | $ 500,000 | $ 500,000 |
Interest rate | 5.00% | ||
Unamortized discount | $ 204 | $ 213 | $ 300 |
Debt financing costs | $ 5,800 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Millions | Mar. 31, 2022USD ($) |
Other Commitments [Line Items] | |
FHLB funding agreements outstanding | $ 200 |
Fixed maturity security investments pledged for FHLB | 940.7 |
Limited Partnerships | |
Other Commitments [Line Items] | |
Unfunded commitments | 1,200 |
Fixed Maturity Securities | |
Other Commitments [Line Items] | |
Unfunded commitments | $ 13.4 |
Earnings Per Common Share and_3
Earnings Per Common Share and Stockholders' Equity (Schedule of Earnings Per Common Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share, Basic and Diluted [Line Items] | ||
Net income available to common stockholders - numerator for earnings per common share | $ 555,304 | $ 271,765 |
Weighted average common shares outstanding (shares) | 96,866,125 | 95,734,851 |
Denominator for earnings per common share - assuming dilution | 97,953,313 | 96,215,665 |
Earnings per common share | $ 5.73 | $ 2.84 |
Earnings per common share - assuming dilution | $ 5.67 | $ 2.82 |
Stock Options and Deferred Compensation Agreements | ||
Earnings Per Share, Basic and Diluted [Line Items] | ||
Effect of dilutive securities: share-based payment arrangements (shares) | 612,265 | 181,054 |
Restricted Stock and Restricted Stock Units | ||
Earnings Per Share, Basic and Diluted [Line Items] | ||
Effect of dilutive securities: share-based payment arrangements (shares) | 474,923 | 299,760 |
Stock Options | ||
Earnings Per Share, Basic and Diluted [Line Items] | ||
Antidilutive securities excluded from computation of diluted earnings per common share, amount (shares) | 0 | 100,000 |
Antidilutive securities excluded from computation of diluted earnings per common share, exercise price | $ 30.50 |
Earnings Per Common Share and_4
Earnings Per Common Share and Stockholders' Equity (Stockholders' Equity) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 10, 2020 | Nov. 21, 2019 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Class of Stock [Line Items] | |||||
Dividends paid on preferred stock | $ 10,919 | $ 10,919 | |||
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 | ||||
Dividends paid on preferred stock | $ 5,000 | 5,000 | |||
Preferred Stock, Series A | |||||
Class of Stock [Line Items] | |||||
Preferred stock, shares issued | 16,000 | 16,000 | 16,000 | ||
Preferred stock, dividend rate, percentage | 5.95% | ||||
Preferred stock, par value per share | $ 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 | $ 5,900 | $ 5,900 |
Earnings Per Common Share and_5
Earnings Per Common Share and Stockholders' Equity (Brookfield) (Details) | Jan. 31, 2022$ / sharesshares | Nov. 30, 2020boardOfDirectorsSeats$ / sharesshares | Oct. 18, 2020numberOfStages |
Third party equity investment, number of stages | numberOfStages | 2 | ||
Number of Board of Directors seats third party received right to nominate following initial equity investment | boardOfDirectorsSeats | 1 | ||
Initial Purchase | |||
Third party ownership interest in Company's common stock | 9.90% | ||
Third party ownership interest in Company's common stock, price per share | $ / shares | $ 37 | ||
Third party ownership interest in Company's common stock, shares | shares | 9,106,042 | ||
Second Purchase | |||
Third party ownership interest in Company's common stock, price per share | $ / shares | $ 37.33 | ||
Third party ownership interest in Company's common stock, shares | shares | 6,775,000 | ||
Maximum | |||
Expected future third party ownership interest in Company's common stock | 19.90% |
Earnings Per Common Share and_6
Earnings Per Common Share and Stockholders' Equity (Share Repurchase Program and Treasury Stock) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 17 Months Ended | 18 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2022 | Apr. 30, 2022 | Dec. 31, 2021 | Nov. 19, 2021 | Oct. 18, 2020 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Share repurchase program, authorized amount | $ 500 | $ 500 | ||||
Treasury stock acquired, shares | 4,500,000 | 13,600,000 | ||||
Treasury stock acquired, average price per common share | $ 32.73 | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 556 | $ 556 | ||||
Treasury stock, shares | 14,326,518 | 14,326,518 | 9,936,715 | |||
Treasury stock, carrying value | $ 438.6 | $ 438.6 | $ 260.6 | |||
Subsequent Events | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Treasury stock acquired, shares | 15,300,000 | |||||
Treasury stock acquired, average price per common share | $ 33.43 | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 489 |