Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 02, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
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 | 78,298,297 | |
Entity Central Index Key | 0001039828 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Common stock, par value $1 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common stock, par value $1 | |
Trading Symbol | AEL | |
Security Exchange Name | NYSE | |
Depositary Shares, each representing a 1/1,000th interest in a share of 5.95% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series A | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/1,000th interest in a share of 5.95% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series A | |
Trading Symbol | AELPRA | |
Security Exchange Name | NYSE | |
Depositary Shares, each representing a 1/1,000th interest in a share of 6.625% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series B | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/1,000th interest in a share of 6.625% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series B | |
Trading Symbol | AELPRB | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Investments: | |||
Fixed maturity securities, available for sale, at fair value (amortized cost of $43,323,015 as of 2023 and $44,866,019 as of 2022; allowance for credit losses of $4,146 as of 2023 and $3,347 as of 2022) | $ 38,680,457 | $ 39,804,617 | [1] |
Mortgage loans, carrying value | 7,373,609 | 6,949,027 | [1] |
Limited partnerships and limited liability companies (2023 and 2022 include $1,069,965 and $684,834 related to consolidated variable interest entities) | 1,649,959 | 1,266,779 | [1] |
Derivative instruments | 1,131,597 | 431,727 | [1] |
Other investments | 1,412,939 | 1,817,085 | [1] |
Total investments | 51,518,774 | 51,325,298 | [1] |
Cash and cash equivalents (2023 and 2022 include $44,919 and $27,235 related to consolidated variable interest entities) | 5,000,657 | 1,919,669 | [1] |
Coinsurance deposits (net of allowance for credit losses of $3,392 as of 2023 and $8,737 as of 2022) | 14,247,284 | 13,254,956 | [1] |
Market risk benefits | 234,470 | 229,871 | [1] |
Accrued investment income (2023 and 2022 include $3,745 and $3,444 related to consolidated variable interest entities) | 488,396 | 497,851 | [1] |
Deferred policy acquisition costs | 2,842,615 | 2,773,643 | [1] |
Deferred sales inducements | 2,134,254 | 2,045,683 | [1] |
Deferred income taxes | 293,466 | 438,434 | [1] |
Income taxes recoverable | 55,678 | 55,498 | [1] |
Other assets (2023 and 2022 include $19,726 and $10,690 related to consolidated variable interest entities) | 829,831 | 642,696 | [1] |
Total assets | 77,645,425 | 73,183,599 | [1] |
Liabilities: | |||
Policy benefit reserves | 59,856,677 | 58,781,836 | [1] |
Market risk benefits | 2,673,272 | 2,455,492 | [1] |
Other policy funds and contract claims | 202,251 | 512,790 | [1] |
Notes and loan payable | 788,754 | 792,073 | [1] |
Subordinated debentures | 78,927 | 78,753 | [1] |
Funds withheld for reinsurance liabilities | 7,565,295 | 6,577,426 | [1] |
Other liabilities (2023 and 2022 include $94,705 and $78,644 related to consolidated variable interest entities) | 3,885,208 | 1,614,479 | [1] |
Total liabilities | 75,050,384 | 70,812,849 | [1] |
Stockholders' equity: | |||
Common stock; par value $1 per share; 200,000,000 shares authorized; issued and outstanding: 2023 - 78,047,941 shares (excluding 31,713,969 treasury shares); 2022 - 84,810,255 shares (excluding 24,590,353 treasury shares) | 78,048 | 84,810 | [1] |
Additional paid-in capital | 1,055,963 | 1,325,316 | [1] |
Accumulated other comprehensive loss | (3,425,248) | (3,746,230) | [1] |
Retained earnings | 4,863,124 | 4,685,593 | [1] |
Total stockholders' equity attributable to American Equity Investment Life Holding Company | 2,571,915 | 2,349,517 | [1] |
Noncontrolling interests | 23,126 | 21,233 | [1] |
Total stockholders' equity | 2,595,041 | 2,370,750 | [1] |
Total liabilities and stockholders' equity | 77,645,425 | 73,183,599 | [1] |
Depositary Shares, each representing a 1/1,000th interest in a share of 5.95% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series A | |||
Stockholders' equity: | |||
Preferred stock | 16 | 16 | [1] |
Depositary Shares, each representing a 1/1,000th interest in a share of 6.625% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series B | |||
Stockholders' equity: | |||
Preferred stock | 12 | 12 | [1] |
Variable Interest Entities | |||
Investments: | |||
Real estate investments related to consolidated variable interest entities | 1,270,213 | 1,056,063 | [1] |
Limited partnerships and limited liability companies (2023 and 2022 include $1,069,965 and $684,834 related to consolidated variable interest entities) | 1,069,965 | 684,834 | |
Cash and cash equivalents (2023 and 2022 include $44,919 and $27,235 related to consolidated variable interest entities) | 44,919 | 27,235 | |
Accrued investment income (2023 and 2022 include $3,745 and $3,444 related to consolidated variable interest entities) | 3,745 | 3,444 | |
Other assets (2023 and 2022 include $19,726 and $10,690 related to consolidated variable interest entities) | 19,726 | 10,690 | |
Total assets | 2,408,568 | 1,782,266 | |
Liabilities: | |||
Other liabilities (2023 and 2022 include $94,705 and $78,644 related to consolidated variable interest entities) | 94,705 | 78,644 | |
Total liabilities | $ 94,705 | $ 78,644 | |
[1] Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Fixed maturity securities, available for sale, amortized cost | $ 43,323,015 | $ 44,866,019 | |
Fixed maturity securities, available for sale, allowance for credit losses | 4,146 | 3,347 | |
Mortgage loans on real estate, allowance for credit losses | 40,395 | 36,972 | |
Limited partnerships and limited liability companies (2023 and 2022 include $1,069,965 and $684,834 related to consolidated variable interest entities) | 1,649,959 | 1,266,779 | [1] |
Cash and cash equivalents (2023 and 2022 include $44,919 and $27,235 related to consolidated variable interest entities) | 5,000,657 | 1,919,669 | [1] |
Coinsurance deposits, allowance for credit losses | 3,392 | 8,737 | |
Accrued investment income (2023 and 2022 include $3,745 and $3,444 related to consolidated variable interest entities) | 488,396 | 497,851 | [1] |
Other assets (2023 and 2022 include $19,726 and $10,690 related to consolidated variable interest entities) | 829,831 | 642,696 | [1] |
Other liabilities (2023 and 2022 include $94,705 and $78,644 related to consolidated variable interest entities) | $ 3,885,208 | $ 1,614,479 | [1] |
Common stock, par value (dollars per share) | $ 1 | $ 1 | |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 | |
Common stock, shares outstanding (in shares) | 78,047,941 | 84,810,255 | |
Common stock, shares issued (in shares) | 78,047,941 | 84,810,255 | |
Treasury stock, shares (in shares) | 31,713,969 | 24,590,353 | |
Variable Interest Entities | |||
Limited partnerships and limited liability companies (2023 and 2022 include $1,069,965 and $684,834 related to consolidated variable interest entities) | $ 1,069,965 | $ 684,834 | |
Cash and cash equivalents (2023 and 2022 include $44,919 and $27,235 related to consolidated variable interest entities) | 44,919 | 27,235 | |
Accrued investment income (2023 and 2022 include $3,745 and $3,444 related to consolidated variable interest entities) | 3,745 | 3,444 | |
Other assets (2023 and 2022 include $19,726 and $10,690 related to consolidated variable interest entities) | 19,726 | 10,690 | |
Other liabilities (2023 and 2022 include $94,705 and $78,644 related to consolidated variable interest entities) | $ 94,705 | $ 78,644 | |
Depositary Shares, each representing a 1/1,000th interest in a share of 5.95% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series A | |||
Preferred stock, par value (dollars per share) | $ 1 | $ 1 | |
Preferred stock, aggregate liquidation preference | $ 400,000 | $ 400,000 | |
Preferred stock, shares authorized (in shares) | 20,000 | 20,000 | |
Preferred stock, shares issued (in shares) | 16,000 | 16,000 | |
Preferred stock, shares outstanding (in shares) | 16,000 | 16,000 | |
Depositary Shares, each representing a 1/1,000th interest in a share of 6.625% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series B | |||
Preferred stock, par value (dollars per share) | $ 1 | $ 1 | |
Preferred stock, aggregate liquidation preference | $ 300,000 | $ 300,000 | |
Preferred stock, shares authorized (in shares) | 12,000 | 12,000 | |
Preferred stock, shares issued (in shares) | 12,000 | 12,000 | |
Preferred stock, shares outstanding (in shares) | 12,000 | 12,000 | |
[1] Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | [1] | Jun. 30, 2023 | Jun. 30, 2022 | ||
Revenues: | ||||||
Premiums and other considerations | $ 2,516 | $ 3,831 | $ 6,653 | $ 13,909 | [1] | |
Annuity product charges | 71,642 | 55,514 | 134,233 | 107,869 | [1] | |
Net investment income | 542,685 | 592,308 | 1,104,008 | 1,159,731 | [1] | |
Change in fair value of derivatives | 242,739 | (506,181) | 288,629 | (983,700) | [1] | |
Net realized losses on investments | (24,679) | (33,272) | (52,466) | (46,399) | [2] | |
Other revenue | 16,736 | 9,408 | 33,130 | 18,225 | [1] | |
Total revenues | 851,639 | 121,608 | 1,514,187 | 269,635 | [1] | |
Benefits and expenses: | ||||||
Insurance policy benefits and change in future policy benefits (remeasurement gains (losses) of future policy benefit reserves of $997 and $138 for three months ended and $1,351 and $775 for six months ended June 30, 2023 and 2022, respectively) | 5,125 | 6,998 | 12,333 | 20,613 | [1] | |
Interest sensitive and index product benefits | 122,387 | 140,346 | 180,298 | 428,263 | [1] | |
Market risk benefits (gains) losses | (144,124) | (299,278) | 39,570 | (107,385) | [1] | |
Amortization of deferred sales inducements | 46,951 | 44,696 | 93,552 | 89,781 | [1] | |
Change in fair value of embedded derivatives | 213,764 | (885,984) | 618,204 | (2,279,633) | [2] | |
Interest expense on notes and loan payable | 11,227 | 6,461 | 22,245 | 12,886 | [1] | |
Interest expense on subordinated debentures | 1,338 | 1,346 | 2,674 | 2,663 | [1] | |
Amortization of deferred policy acquisition costs | 68,476 | 72,485 | 136,711 | 145,454 | [2] | |
Other operating costs and expenses | 75,697 | 59,872 | 149,701 | 117,667 | [1] | |
Total benefits and expenses | 400,841 | (853,058) | 1,255,288 | (1,569,691) | [1] | |
Income before income taxes | 450,798 | 974,666 | 258,899 | 1,839,326 | [1] | |
Income tax expense | 95,652 | 211,377 | 59,644 | 396,572 | [1] | |
Net income | 355,146 | 763,289 | 199,255 | 1,442,754 | [3] | |
Less: Net loss available to noncontrolling interests | (217) | (4) | (114) | (4) | [1] | |
Net income available to American Equity Investment Life Holding Company stockholders | 355,363 | 763,293 | 199,369 | 1,442,758 | [1] | |
Less: Preferred stock dividends | 10,919 | 10,919 | 21,838 | 21,838 | [1] | |
Net income available to American Equity Investment Life Holding Company common stockholders | $ 344,444 | $ 752,374 | $ 177,531 | $ 1,420,920 | [1] | |
Earnings per common share (dollars per share) | $ 4.43 | $ 8.13 | $ 2.20 | $ 15.01 | [1] | |
Earnings per common share - assuming dilution (dollars per share) | $ 4.36 | $ 8.06 | $ 2.17 | $ 14.86 | [1] | |
Weighted average common shares outstanding (in thousands): | ||||||
Weighted average common shares outstanding: earnings per common share (in shares) | 77,766,851 | 92,543,850 | 80,576,301 | 94,693,048 | [1] | |
Weighted average common shares outstanding: earnings per common share - assuming dilution (in shares) | 78,927,958 | 93,374,738 | 81,824,056 | 95,652,085 | [1] | |
[1] Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Remeasurement gains (losses) of future policy benefit reserves | $ 997 | $ 138 | $ 1,351 | $ 775 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |||
Statement of Comprehensive Income [Abstract] | ||||||
Net income | $ 355,146 | $ 763,289 | [1] | $ 199,255 | $ 1,442,754 | [2] |
Other comprehensive income (loss): | ||||||
Change in net unrealized investment gains/losses | (421,329) | (3,419,845) | [3] | 430,402 | (7,435,675) | [3] |
Change in current discount rate for liability for future policy benefits | 5,342 | 23,683 | [3] | 551 | 56,681 | [3] |
Change in instrument-specific credit risk for market risk benefits | (98,909) | 55,065 | [3] | (28,904) | 535,475 | [3] |
Reclassification of unrealized investment gains/losses to net income | 22,721 | (23,546) | [3] | 4,258 | (22,087) | [3] |
Other comprehensive income (loss) before income tax | (492,175) | (3,364,643) | [3] | 406,307 | (6,865,606) | [3] |
Income tax effect related to other comprehensive income (loss) | 103,356 | 706,559 | [3] | (85,325) | 1,441,465 | [3] |
Other comprehensive income (loss) | (388,819) | (2,658,084) | [2] | 320,982 | (5,424,141) | [3] |
Comprehensive income (loss) | $ (33,673) | $ (1,894,795) | [3] | $ 520,237 | $ (3,981,387) | [3] |
[1] Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Preferred Stock | Common Stock | Common Stock Common Stock | Additional Paid-in Capital | Additional Paid-in Capital Common Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Noncontrolling Interest | |||||
Stockholders' equity at beginning of period at Dec. 31, 2021 | [1] | $ 7,738,717 | $ 28 | $ 92,514 | $ 1,614,374 | $ 3,192,547 | $ 2,839,254 | $ 0 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income (loss) for period | [1] | 1,442,754 | 1,442,758 | (4) | |||||||||||
Other comprehensive income (loss) | (5,424,141) | [2] | (5,424,141) | [1] | |||||||||||
Share-based compensation | [1] | 6,420 | 6,420 | ||||||||||||
Issuance of common stock | [1] | $ 252,842 | $ 7,052 | $ 245,790 | |||||||||||
Treasury stock acquired, common | [1] | (368,380) | (9,397) | (358,983) | |||||||||||
Dividends on preferred stock | [1] | (21,838) | (21,838) | ||||||||||||
Contributions from noncontrolling interests | [1] | 1,173 | 1,173 | ||||||||||||
Stockholders' equity at end of period at Jun. 30, 2022 | [1] | 3,627,547 | 28 | 90,169 | 1,507,601 | (2,231,594) | 4,260,174 | 1,169 | |||||||
Stockholders' equity at beginning of period at Mar. 31, 2022 | [1] | 5,720,028 | 28 | 95,020 | 1,689,606 | 426,490 | 3,507,800 | 1,084 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income (loss) for period | 763,289 | [3] | 763,293 | [1] | (4) | [1] | |||||||||
Other comprehensive income (loss) | [1] | (2,658,084) | (2,658,084) | ||||||||||||
Share-based compensation | [1] | 824 | 824 | ||||||||||||
Issuance of common stock | [1] | 1,304 | 94 | 1,210 | |||||||||||
Treasury stock acquired, common | [1] | (188,984) | (4,945) | (184,039) | |||||||||||
Dividends on preferred stock | [1] | (10,919) | (10,919) | ||||||||||||
Contributions from noncontrolling interests | [1] | 89 | 89 | ||||||||||||
Stockholders' equity at end of period at Jun. 30, 2022 | [1] | 3,627,547 | 28 | 90,169 | 1,507,601 | (2,231,594) | 4,260,174 | 1,169 | |||||||
Stockholders' equity at beginning of period at Dec. 31, 2022 | 2,370,750 | [4] | 28 | 84,810 | 1,325,316 | (3,746,230) | 4,685,593 | 21,233 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income (loss) for period | 199,255 | 199,369 | (114) | ||||||||||||
Other comprehensive income (loss) | 320,982 | 320,982 | |||||||||||||
Share-based compensation | 20,877 | 20,877 | |||||||||||||
Issuance of common stock | (867) | 506 | (1,373) | ||||||||||||
Treasury stock acquired, common | (296,125) | (7,268) | (288,857) | ||||||||||||
Dividends on preferred stock | (21,838) | (21,838) | |||||||||||||
Contributions from noncontrolling interests | 2,007 | 2,007 | |||||||||||||
Stockholders' equity at end of period at Jun. 30, 2023 | 2,595,041 | 28 | 78,048 | 1,055,963 | (3,425,248) | 4,863,124 | 23,126 | ||||||||
Stockholders' equity at beginning of period at Mar. 31, 2023 | 2,628,809 | 28 | 77,753 | 1,045,453 | (3,036,429) | 4,518,680 | 23,324 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income (loss) for period | 355,146 | 355,363 | (217) | ||||||||||||
Other comprehensive income (loss) | (388,819) | (388,819) | |||||||||||||
Share-based compensation | 10,973 | 10,973 | |||||||||||||
Issuance of common stock | $ 2,764 | $ 295 | $ 2,469 | ||||||||||||
Treasury stock acquired, common | (2,932) | 0 | (2,932) | ||||||||||||
Dividends on preferred stock | (10,919) | (10,919) | |||||||||||||
Contributions from noncontrolling interests | 19 | 19 | |||||||||||||
Stockholders' equity at end of period at Jun. 30, 2023 | $ 2,595,041 | $ 28 | $ 78,048 | $ 1,055,963 | $ (3,425,248) | $ 4,863,124 | $ 23,126 | ||||||||
[1] Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | ||||
Operating activities | ||||||||
Net income | $ 355,146 | $ 763,289 | [1] | $ 199,255 | $ 1,442,754 | [2] | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Interest sensitive and index product benefits | 180,298 | 428,263 | [3] | |||||
Amortization of deferred sales inducements | 46,951 | 44,696 | [1] | 93,552 | 89,781 | [1] | $ 181,970 | |
Annuity product charges | (71,642) | (55,514) | [1] | (134,233) | (107,869) | [1] | ||
Change in fair value of embedded derivatives | 213,764 | (885,984) | [1] | 618,204 | (2,279,633) | [3] | ||
Change in traditional life and accident and health insurance reserves | (8,664) | (57,896) | [3] | |||||
Policy acquisition costs deferred | (205,683) | (105,290) | [3] | |||||
Amortization of deferred policy acquisition costs | 68,476 | 72,485 | [1] | 136,711 | 145,454 | [3] | 284,011 | |
Provision for depreciation and other amortization | 3,921 | 10,264 | [3] | |||||
Amortization of discounts and premiums on investments | 31,785 | (4,711) | [3] | |||||
Realized gains/losses on investments | 24,679 | 33,272 | [1] | 52,466 | 46,399 | [3] | ||
Distributions from equity method investments | 40,845 | 2,204 | [3] | |||||
Change in fair value of derivatives | (288,629) | 983,700 | [3] | |||||
Deferred income taxes | 59,643 | 381,964 | [3] | |||||
Share-based compensation | 20,877 | 6,420 | [3] | |||||
Change in accrued investment income | 9,455 | (47,442) | [3] | |||||
Change in income taxes recoverable/payable | (180) | 31,345 | [3] | |||||
Change in other assets | (204,847) | (29,655) | [3] | |||||
Change in other policy funds and contract claims | (313,591) | 293,303 | [3] | |||||
Change in market risk benefits, net | 36,864 | (116,966) | [3] | |||||
Change in collateral held for derivatives | 619,829 | (1,051,808) | [3] | |||||
Change in funds withheld from reinsurers | 943,237 | 213,493 | [3] | |||||
Change in other liabilities | 1,364,474 | 78,642 | [3] | |||||
Other | (8,098) | (40,346) | [3] | |||||
Net cash provided by operating activities | 3,247,491 | 312,370 | [3] | |||||
Sales, maturities, or repayments of investments: | ||||||||
Fixed maturity securities, available for sale | 5,105,068 | 3,456,943 | [3] | |||||
Mortgage loans on real estate | 556,786 | 1,082,235 | [3] | |||||
Real estate investments sold | 1,842 | 0 | [3] | |||||
Derivative instruments | 124,339 | 373,481 | [3] | |||||
Other investments | 969,525 | 354,056 | [3] | |||||
Acquisitions of investments: | ||||||||
Fixed maturity securities, available for sale | (3,175,094) | (4,883,166) | [3] | |||||
Mortgage loans on real estate | (1,091,795) | (1,664,966) | [3] | |||||
Real estate investments acquired | (231,575) | (361,820) | [3] | |||||
Derivative instruments | (472,354) | (393,783) | [3] | |||||
Other investments | (1,191,870) | (589,861) | [3] | |||||
Purchases of property, furniture and equipment | (13,567) | (8,327) | [3] | |||||
Net cash provided by (used in) investing activities | 581,305 | (2,635,208) | [3] | |||||
Financing activities | ||||||||
Receipts credited to annuity policyholder account balances | 3,371,142 | 1,666,306 | [3] | |||||
Coinsurance deposits | (512,172) | 45,108 | [3] | |||||
Return of annuity policyholder account balances | (3,249,645) | (2,449,267) | [3] | |||||
Repayment of loan payable | (3,749) | 0 | [3] | |||||
Acquisition of treasury stock | (296,125) | (368,380) | [3] | |||||
Proceeds from issuance of common stock, net | (867) | 252,842 | [3] | |||||
Change in checks in excess of cash balance | (34,554) | (23,690) | [3] | |||||
Dividends paid on preferred stock | (21,838) | (21,838) | [3] | |||||
Net cash used in financing activities | (747,808) | (898,919) | [3] | |||||
Increase (decrease) in cash and cash equivalents | 3,080,988 | (3,221,757) | [3] | |||||
Cash and cash equivalents at beginning of period | 1,919,669 | 4,508,982 | [3] | 4,508,982 | [3] | |||
Cash and cash equivalents at end of period | $ 5,000,657 | $ 1,287,225 | [3] | 5,000,657 | 1,287,225 | [3] | 1,919,669 | |
Cash paid during period for: | ||||||||
Interest expense | 18,026 | 1,250 | [3] | |||||
Income taxes | 1,899 | 0 | [3] | |||||
Income tax refunds received | 53 | 0 | [3] | |||||
Non-cash operating activity: | ||||||||
Deferral of sales inducements | $ 182,123 | $ 23,446 | [3] | $ 107,692 | ||||
[1] Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
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 and six month periods ended June 30, 2023 are not necessarily indicative of the results that may be expected for any other period, including for the year ended December 31, 2023. 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, 2022. Adopted Accounting Pronouncements Troubled Debt Restructurings and Vintage Disclosures In March 2022, the Financial Accounting Standards Board ("FASB") issued an accounting standards update ("ASU") on troubled debt restructurings ("TDR") and vintage disclosures related to current period gross write-offs and recoveries. This guidance eliminates the accounting guidance for TDRs by creditors and enhances disclosure requirements for certain refinancing and restructuring of loans by creditors when a borrower is experiencing financial difficulty. The guidance also requires companies to disclosure current-period gross write-offs by year of origination for financing receivables and net investments in leases. This ASU was adopted on January 1, 2023 and will be applied prospectively. This guidance did not have a material impact on our consolidated financial statements. Targeted Improvements to the Accounting for Long-Duration Insurance Contracts 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 with the change in fair value recognized in net income excluding the change in fair value related to our own-credit risk which is recognized in AOCI and simplifying the method used to amortize deferred policy acquisition costs and deferred sales inducements to a constant level 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 was effective for us January 1, 2023, the transition date (the remeasurement date) was January 1, 2021. We adopted the guidance for the liability for future policyholder benefits, deferred acquisition costs, and deferred sales inducements on a modified retrospective basis such that those balances were adjusted to conform to ASU 2018-12 on January 1, 2021. The guidance for market risk benefits was applied retrospectively. Below are the transition date impacts for each of these items. Liability for Future Policy (Dollars in thousands) Pre-adoption 1/1/2021 balance $ 337,467 Adjustment to opening retained earnings for expected future policy benefits 2,566 Adjustment for the effect of remeasurement of liability at current single A rate 68,717 Post adoption 1/1/2021 balance $ 408,750 Market Risk (Dollars in thousands) Pre-adoption 1/1/2021 carrying amount for features now classified as MRBs $ 2,547,231 Adjustment for the removal of shadow adjustments (584,636) Adjustment for the cumulative effect of the changes in the instrument-specific credit risk between the original contract issuance date and the transition date 229,108 Adjustment for the remaining difference between previous carrying amount and fair value measurement for the MRB, exclusive of the instrument specific credit risk 33,781 Post adoption 1/1/2021 MRB balance $ 2,225,484 Ceded Market Risk (Dollars in thousands) Pre-adoption 1/1/2021 carrying amount for features now classified as MRBs $ 62,108 Adjustment for the difference between previous carrying amount and fair value measurement for the MRB, exclusive of the instrument specific credit risk 27,230 Post adoption 1/1/2021 ceded MRB balance $ 89,338 (a) The ceded market risk benefit is recognized in coinsurance deposits on the Consolidated Balance Sheets. Deferred Policy Fixed Index Annuities and (Dollars in thousands) Pre-adoption 1/1/2021 balance $ 2,225,199 Adjustments for the removal of shadow adjustments 1,183,306 Post adoption 1/1/2021 balance $ 3,408,505 Deferred Sales Fixed Index Annuities and (Dollars in thousands) Pre-adoption 1/1/2021 balance $ 1,448,375 Adjustments for the removal of shadow adjustments 768,310 Post adoption 1/1/2021 balance $ 2,216,685 For deferred acquisition costs, the Company removed shadow adjustments previously recorded in accumulated other comprehensive income for the impact of unrealized gains and losses that were included in the pre-ASU 2018-12 expected gross profits amortization calculation as of the transition date. As a result of the adoption of ASU 2018-12, the Company decreased beginning retained earnings by $7.2 million and increased accumulated other comprehensive income by $1.8 billion as of January 1, 2021. Certain amounts in the prior years' consolidated financial statements and related footnotes thereto have been recast, to the extent impacted by ASU 2018-12, to conform to the new guidance. Market Risk Benefits Accounting Policy Market risk benefits (MRBs) are contracts or contract features that both provide protection to the policyholder from other-than-nominal capital market risk and expose the Company to other-than-nominal capital market risk. We issue certain fixed indexed annuity and fixed rate annuity contracts that provide minimum guarantees to policyholders including guaranteed minimum withdrawal benefits (GMWB) and guaranteed minimum death benefits (GMDB) that are MRBs. MRBs are measured at fair value, at the individual contract level, and can be either an asset or a liability. Contracts which contain more than one MRB feature are combined into one single MRB. The fair value is calculated using stochastic models that include a risk margin and incorporate a spread for our instrument specific credit risk. At contract inception, attributed fees are calculated based on the present value of the fees and assessments collectible from the policyholder relative to the present value of expected benefits paid attributable to the MRB. The attributed fees remain static over the life of the MRB and is used to calculate the fair value of the MRB using a risk neutral valuation method. The attributed fees cannot be negative and cannot exceed the total explicit fees collectible from the policyholder. The MRB assets and liabilities are presented separately on the Consolidated Balance Sheets. The ceded MRB assets are presented in coinsurance deposits on the Consolidated Balance Sheets. Changes in fair value of the MRB are recognized in market risk benefits (gains) losses on the Consolidated Statements of Operations each period with the exception of the portion of the change in fair value related to a changes in our nonperformance risk, which is recognized in other comprehensive income (OCI). See Note 8 - Policyholder Liabilities for more information on MRBs. Deferred Policy Acquisition Costs (DAC) and Deferred Sales Inducements (DSI) Accounting Policy The Company incurs costs in connection with acquiring new and renewal business. The portion of these costs which are incremental and direct to the acquisition of a new or renewal policy are deferred as they are incurred. DAC and DSI are amortized on a constant level basis over the expected term of the contracts based on projected policy counts. Contracts are grouped consistent with the grouping used in the estimating of the liability. The assumptions used in the calculation of DAC and DSI include full surrenders, partial withdrawals, mortality, utilization and reset assumptions associated with lifetime income benefit riders, and the option budget assumption. If the actual experience is different from our expectations, the amortization pattern is adjusted prospectively. See Note 7 - Deferred Policy Acquisition Costs and Deferred Sales Inducements for more information on DAC and DSI. Liability for Future Policy Benefits Accounting Policy A liability for future policy benefits is recorded for our traditional limited-payment insurance contracts and is generally equal to the present value of expected future policy benefit payments. The present value calculation uses assumptions for mortality, morbidity, termination, and expense. The contracts are grouped into cohorts based on issue year and product type. The liability for future policy benefits is discounted using an upper-medium grade fixed-income instrument yield that reflects the duration characteristics of the liabilities and maximizes the use of observable data. The discount rate is updated each reporting period and any changes in the liability resulting from changes in the upper medium grade fixed income instrument yield are recognized in AOCI. Any changes to the liability as a result of assumption changes will be recognized as remeasurement gains (losses) in insurance policy benefits and change in future policy benefits in the Consolidated Statement of Operations. See Note 8 - Policyholder Liabilities for more information on the liability for future policy benefits. |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Financial Instruments | Fair Values of Financial Instruments The following sets forth a comparison of the carrying amounts and fair values of our financial instruments: June 30, 2023 December 31, 2022 Carrying Fair Value Carrying Fair Value (Dollars in thousands) Assets Fixed maturity securities, available for sale $ 38,680,457 $ 38,680,457 $ 39,804,617 $ 39,804,617 Mortgage loans on real estate 7,373,609 6,900,291 6,949,027 6,502,463 Real estate investments 1,158,772 1,158,772 1,056,063 1,056,063 Limited partnerships and limited liability companies 1,069,965 1,069,965 684,835 684,835 Derivative instruments 1,131,597 1,131,597 431,727 431,727 Other investments 1,412,939 1,412,939 1,817,085 1,817,085 Cash and cash equivalents 5,000,657 5,000,657 1,919,669 1,919,669 Coinsurance deposits 14,247,284 13,362,371 13,254,956 12,640,797 Market risk benefits 234,470 234,470 229,871 229,871 Liabilities Policy benefit reserves 59,503,416 55,933,419 58,419,911 55,572,896 Market risk benefits 2,673,272 2,673,272 2,455,492 2,455,492 Single premium immediate annuity (SPIA) benefit reserves 201,539 210,273 212,119 221,130 Other policy funds - FHLB — — 300,000 300,000 Notes and loan payable 788,754 774,860 792,073 774,220 Subordinated debentures 78,927 88,388 78,753 87,293 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. NAV – Our consolidated limited partnership funds are typically measured using NAV as a practical expedient in determining fair value and are not classified in the fair value hierarchy. Our carrying value reflects our pro rata ownership percentage as indicated by NAV in the investment fund financial statements and is recorded on a quarter lag due to the timing of when financial statements are available. Transfers of securities among the levels occur at times and depend on the type of inputs used to determine fair value of each security. We record transfers between levels as of the beginning of the reporting period. Our assets and liabilities which are measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022 are presented below based on the fair value hierarchy levels: Total NAV Quoted Significant Significant (Dollars in thousands) June 30, 2023 Assets Fixed maturity securities, available for sale: U.S. Government and agencies $ 175,462 $ — $ 29,718 $ 145,744 $ — States, municipalities and territories 3,261,359 — — 3,132,056 129,303 Foreign corporate securities and foreign governments 573,917 — — 573,917 — Corporate securities 22,069,209 — — 21,818,072 251,137 Residential mortgage backed securities 1,473,297 — — 1,473,297 — Commercial mortgage backed securities 3,553,618 — — 3,553,618 — Other asset backed securities 7,573,595 — — 6,830,671 742,924 Other investments 932,242 — 376,022 532,976 23,244 Real estate investments 1,158,772 — — — 1,158,772 Limited partnerships and limited liability companies 1,069,965 918,925 — — 151,040 Derivative instruments 1,131,597 — — 1,131,597 — Cash and cash equivalents 5,000,657 — 5,000,657 — — Market risk benefits (a) 234,470 — — — 234,470 $ 48,208,160 $ 918,925 $ 5,406,397 $ 39,191,948 $ 2,690,890 Liabilities Funds withheld liability - embedded derivative $ (397,234) $ — $ — $ — $ (397,234) Fixed index annuities - embedded derivatives 5,014,697 — — — 5,014,697 Market risk benefits (a) 2,673,272 — — — 2,673,272 $ 7,290,735 $ — $ — $ — $ 7,290,735 December 31, 2022 Assets Fixed maturity securities, available for sale: U.S. Government and agencies $ 169,071 $ — $ 26,184 $ 142,887 $ — States, municipalities and territories 3,822,982 — — 3,822,982 — Foreign corporate securities and foreign governments 676,852 — — 676,852 — Corporate securities 24,161,921 — — 23,759,573 402,348 Residential mortgage backed securities 1,377,611 — — 1,377,611 — Commercial mortgage backed securities 3,687,478 — — 3,687,478 — Other asset backed securities 5,908,702 — — 5,465,784 442,918 Other investments 1,013,297 — 398,280 615,017 — Real estate investments 940,559 — — — 940,559 Limited partnerships and limited liability companies 684,835 620,626 — — 64,209 Derivative instruments 431,727 — — 431,727 — Cash and cash equivalents 1,919,669 — 1,919,669 — — Market risk benefits (a) 229,871 — — — 229,871 $ 45,024,575 $ 620,626 $ 2,344,133 $ 39,979,911 $ 2,079,905 Liabilities Funds withheld liability - embedded derivative $ (441,864) $ — $ — $ — $ (441,864) Fixed index annuities - embedded derivatives 4,820,845 — — — 4,820,845 Market risk benefits (a) 2,455,492 — — — 2,455,492 $ 6,834,473 $ — $ — $ — $ 6,834,473 (a) See Note 8 - Policyholder Liabilities for additional information related to market risk benefits, including the balances of and changes in market risk benefits as well as significant inputs and assumptions used in the fair value measurements of market risk benefits. 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 June 30, 2023 and December 31, 2022. Fixed maturity security valuations that include at least one significant unobservable input are reflected in Level 3 in the fair value hierarchy and can include fixed maturity securities across all asset classes. Quantitative information about the significant unobservable inputs used are provided below for fixed maturity securities that were either valued internally or were valued by a third party and the inputs were reasonably available. The fair value of corporate securities that utilized at least one significant unobservable input was $85.7 million and $84.7 million as of June 30, 2023 and December 31, 2022, respectively. A discounted cash flow methodology was utilized in the valuation, which included an unobservable liquidity premium of 20 basis points being incorporated along with other observable market data. The fair value of other asset backed securities that utilized at least one significant unobservable input was $595.0 million and $296.8 million as of June 30, 2023 and December 31, 2022, respectively. A discounted cash flow methodology was utilized in the valuation, which included unobservable discount rates and weighted average lives being incorporated along with other observable market data. At June 30, 2023, the discount rates used in the fair value calculations ranged from 5.50% to 9.99% with a weighted average rate of 6.38%. The weighted average lives used in the fair value calculations ranged from 1.26 years to 12.60 years with a weighted average of 7.59 years. At December 31, 2022, the discount rates used in the fair value calculations ranged from 4.04% to 28.58% with a weighted average rate of 4.36%. The weighted average lives used in the fair value calculations ranged from 8.79 years to 12.48 years with an average of 9.29 years. 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 held through consolidation of investment company VIEs 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 forecasted 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. As of June 30, 2023, the residual capitalization rates used in the fair value calculations ranged from 4.75% to 6.50% with an average rate of 5.42%. As of December 31, 2022, the residual capitalization rates used in the fair value calculations ranged from 4.75% to 6.50% with an average rate of 5.44%. As of June 30, 2023, the discount rates used in the fair value calculations ranged from 6.00% to 7.88% with an average rate of 6.87%. As of December 31, 2022, the discount rates used in the fair value calculations ranged from 6.00% to 8.00% with an average rate of 6.91%. Limited partnerships and limited liability companies Two of our consolidated variable interest entities, which are fair valued on a recurring basis, invest in limited liability companies that invest in operating entities which hold multifamily real estate properties. The fair value of these variable interest entities were $51.0 million and $64.2 million as of June 30, 2023 and December 31, 2022, respectively, and falls within Level 3 of the fair value hierarchy. The fair value of the limited liability companies was obtained from a third party and is based on the fair value of the underlying real estate held by the various operating entities. The real estate is initially calculated based on the cost to purchase the properties and subsequently calculated based on a discounted cash flow methodology. As of June 30, 2023, the residual capitalization rates used in the fair value calculations of the underlying real estate ranged from 4.48% to 4.63% with a weighted average rate of 4.55%. As of December 31, 2022, the residual capitalization rates used in the fair value calculations of the underlying real estate ranged from 4.25% to 4.75% with a weighted average rate of 4.46%. As of June 30, 2023, the discount rates used in the fair value calculations of the underlying real estate ranged from 6.50% to 9.25% with a weighted average rate of 8.03%. As of December 31, 2022, the discount rates used in the fair value calculations of the underlying real estate ranged from 5.75% to 6.00% with a weighted average rate of 5.86%. The fair value of this investment falls within Level 3 of the fair value hierarchy. During the year, we purchased an investment in an infrastructure limited liability company through a consolidated VIE that is measured at fair value on a recurring basis. There have been no significant changes to inputs since the purchase date, and therefore, the cost to purchase the investment of $100 million approximates fair value as of June 30, 2023, and falls within Level 3 of the fair value hierarchy. Each of our consolidated limited partnership funds, which are measured using NAV as a practical expedient, are closed-end funds that invest in infrastructure credit assets and tech-centric middle-market loans, respectively. Redemptions are not allowed until the funds’ termination dates and liquidations begin. As of June 30, 2023 and December 31, 2022, our unfunded commitments for our consolidated limited partnership funds were $605.8 million and $926.3 million, respectively. Derivative instruments The fair values of our 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. The fair values of our pay fixed/receive float interest rate swaps are determined using internal valuation models that generate discounted expected future cash flows by constructing a projected Secured Overnight Financing Rate (SOFR) curve over the term of the swap. Other investments Certain financial instruments included in other investments are measured at fair value on a recurring basis. The fair value for these investments are determined using the same methods discussed above for fixed maturity securities. The fair value of other investments that utilized at least one significant unobservable input was $23.2 million and $0 as of June 30, 2023 and December 31, 2022, respectively and are included in Level 3 of the fair value hierarchy. For these other investments, a discounted cash flow methodology was utilized in the valuation, which included unobservable discount rates and weighted average lives being incorporated along with other observable market data. At June 30, 2023, the discount rate used in the fair value calculation was 25.0% and the weighted average lives ranged from 11.50 years to 12.41 years with a weighted average of 11.98 years. Financial instruments included in other investments that are not measured at fair value on a recurring basis are FHLB common stock, short-term loans, collateral loans and company owned life insurance ("COLI"). FHLB common stock is carried at cost which approximates fair value. FHLB common stock was $10.0 million and $22.0 million as of June 30, 2023 and December 31, 2022, respectively, and falls within Level 2 of the fair value hierarchy. Due to the short-term nature of the investments, the fair value of a portion of our short-term loans approximates the carrying value. We had no short-term loans as of June 30, 2023. The fair value of short-term loans was $316.4 million as of December 31, 2022. Our short-term loans fall within Level 2 of the fair value hierarchy. For our collateral loans, we have concluded the carrying value approximates fair value and falls within Level 2 of the fair value hierarchy. The fair value of collateral loans was $64.6 million as of June 30, 2023 and December 31, 2022. 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 $401.8 million and $397.7 million as of June 30, 2023 and December 31, 2022, 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 without life contingencies are not measured at fair value on a recurring basis. SPIA benefit reserves without life contingencies are recognized in other policy funds and contract claims on the Consoldiated Balance Sheets. 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 and loan payable The fair value of our senior unsecured notes is based upon quoted market prices. The carrying value of the term loan approximates fair value as the interest rate is reset on a quarterly basis utilizing SOFR adjusted for a credit spread. Both of these are categorized as Level 2 within the fair value hierarchy, and 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 and funds withheld coinsurance reinsurance agreeme nts. The fair value of the embedded derivative is classified as Level 3 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 June 30, 2023 and December 31, 2022, we utilized an estimate of 2.40% 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 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) June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 1 - 5 2.07% 2.17% 1.87% 1.86% 6 - 10 3.38% 3.28% 1.95% 1.97% 11 - 15 3.58% 3.63% 1.81% 1.86% 16 - 20 10.44% 8.55% 2.89% 2.96% 20+ 4.92% 4.90% 1.82% 1.81% 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 and six months ended June 30, 2023 and 2022: Three Months Ended Six Months Ended 2023 2022 2023 2022 (Dollars in thousands) Fixed maturity securities, available for sale - States, municipalities and territories Beginning balance $ 97,659 $ — $ — $ — Purchases and sales, net — — — — Transfers in 11,164 77,726 108,823 77,726 Transfers out — — — — Total realized/unrealized gains (losses) Included in net income — — — — Included in other comprehensive income (loss) 20,480 — 20,480 — Ending balance $ 129,303 $ 77,726 $ 129,303 $ 77,726 Fixed maturity securities, available for sale - Corporate securities Beginning balance $ 375,297 $ — $ 402,348 $ — Purchases and sales, net — — (26,278) — Transfers in 49,326 — 49,673 — Transfers out (172,174) — (172,174) — Total realized/unrealized gains (losses): Included in net income — — — — Included in other comprehensive income (loss) (1,312) — (2,432) — Ending balance $ 251,137 $ — $ 251,137 $ — Fixed maturity securities, available for sale - Other asset backed securities Beginning balance $ 808,228 $ — $ 442,918 $ — Purchases and sales, net — — 227,032 — Transfers in — 64,550 130,502 64,550 Transfers out (20,817) — (20,817) — Total realized/unrealized gains (losses): Included in net income — — — — Included in other comprehensive income (loss) (44,487) — (36,711) — Ending balance $ 742,924 $ 64,550 $ 742,924 $ 64,550 Three Months Ended Six Months Ended 2023 2022 2023 2022 (Dollars in thousands) Other investments Beginning balance $ — $ 3,867 $ — $ 6,349 Transfers in 9,821 — 9,821 — Transfers out — (3,867) — (3,867) Total realized/unrealized gains (losses): Included in net income — — — (2,482) Included in other comprehensive income (loss) 13,423 — 13,423 — Ending balance $ 23,244 $ — $ 23,244 $ — Real estate investments Beginning balance $ 1,053,631 $ 510,188 $ 940,559 $ 337,939 Purchases and sales, net 108,825 135,478 229,733 303,566 Change in fair value (3,684) 26,809 (11,520) 30,970 Ending balance $ 1,158,772 $ 672,475 $ 1,158,772 $ 672,475 Limited partnerships and limited liability companies Beginning balance $ 164,327 $ — $ 64,209 $ — Purchases and sales, net 3,339 — 97,476 — Change in fair value (16,626) — (10,645) — Ending balance $ 151,040 $ — $ 151,040 $ — Funds withheld liability - embedded derivative Beginning balance $ (377,484) $ — $ (441,864) $ — Transfers in — — — — Change in fair value (19,750) — 44,630 — Ending balance $ (397,234) $ — $ (397,234) $ — Fixed index annuities - embedded derivatives Beginning balance $ 4,905,133 $ 6,770,915 $ 4,820,845 $ 7,964,961 Premiums less benefits (32,309) (50,594) (153,490) 63,483 Change in fair value, net 141,873 (884,009) 347,342 (2,192,132) Ending balance $ 5,014,697 $ 5,836,312 $ 5,014,697 $ 5,836,312 Transfers into and out of Level 3 during the three and six months ended June 30, 2023 and 2022 were primarily the result of changes in observable pricing information. The fair value of our fixed index annuities embedded derivatives is net of coinsurance ceded of $1,195.9 million and $1,173.4 million as of June 30, 2023 and December 31, 2022, 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 Consolidated Statements of Operations. Certain derivatives embedded in our fixed index annuity contracts are our most significant financial instrument measured at fair value that are categorized as Level 3 in the fair value hierarchy. The contractual obligations for future annual index credits within our fixed index annuity contracts are treated as a "series of embedded derivatives" over the expected life of the applicable contracts. We estimate the fair value of these embedded derivatives at each valuation date by the method described above under fixed index annuities - embedded derivatives . The projections of minimum guaranteed contract values include the same best estimate assumptions for policy decrements as were used to project policy contract values. The most sensitive assumption in determining policy liabilities for fixed index annuities is the rates used to discount the excess projected contract values. As indicated above, the discount rate reflects our nonperformance risk. If the discount rates used to discount the excess projected contract values at June 30, 2023, were to increase by 100 basis points, the fair value of the embedded derivatives would decrease by $347.7 million recorded through operations as a decrease in the change in fair value of embedded derivatives. A decrease by 100 basis points in the discount rates used to discount the excess projected contract values would increase the fair value of the embedded derivatives by $400.2 million recorded through operations as an increase in the change in fair value of embedded derivatives. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2023 | |
Investments [Abstract] | |
Investments | Investments At June 30, 2023 and December 31, 2022, 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) June 30, 2023 Fixed maturity securities, available for sale: U.S. Government and agencies $ 179,087 $ 66 $ (3,691) $ — $ 175,462 States, municipalities and territories 3,706,837 25,316 (470,794) — 3,261,359 Foreign corporate securities and foreign governments 649,101 3,491 (78,675) — 573,917 Corporate securities 25,268,072 123,687 (3,319,418) (3,132) 22,069,209 Residential mortgage backed securities 1,593,824 7,650 (128,110) (67) 1,473,297 Commercial mortgage backed securities 4,041,901 609 (488,892) — 3,553,618 Other asset backed securities 7,884,193 13,330 (322,981) (947) 7,573,595 $ 43,323,015 $ 174,149 $ (4,812,561) $ (4,146) $ 38,680,457 December 31, 2022 Fixed maturity securities, available for sale: U.S. Government and agencies $ 173,638 $ 70 $ (4,637) $ — $ 169,071 States, municipalities and territories 4,356,251 41,565 (574,834) — 3,822,982 Foreign corporate securities and foreign governments 748,770 11,661 (83,579) — 676,852 Corporate securities 27,706,440 146,065 (3,687,370) (3,214) 24,161,921 Residential mortgage backed securities 1,492,242 11,870 (126,368) (133) 1,377,611 Commercial mortgage backed securities 4,098,755 493 (411,770) — 3,687,478 Other asset backed securities 6,289,923 14,068 (395,289) — 5,908,702 $ 44,866,019 $ 225,792 $ (5,283,847) $ (3,347) $ 39,804,617 (1) Amortized cost excludes accrued interest receivable of $416.5 million and $425.4 million as of June 30, 2023 and December 31, 2022, respectively. (2) Gross unrealized losses are net of allowance for credit losses. The amortized cost and fair value of fixed maturity securities at June 30, 2023, 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 $ 681,287 $ 668,827 Due after one year through five years 6,111,532 5,857,320 Due after five years through ten years 5,588,456 5,069,920 Due after ten years through twenty years 8,060,065 7,137,892 Due after twenty years 9,361,757 7,345,988 29,803,097 26,079,947 Residential mortgage backed securities 1,593,824 1,473,297 Commercial mortgage backed securities 4,041,901 3,553,618 Other asset backed securities 7,884,193 7,573,595 $ 43,323,015 $ 38,680,457 Net unrealized losses on investments reported as a separate component of stockholders' equity were comprised of the following: June 30, 2023 December 31, 2022 (Dollars in thousands) Net unrealized losses on investments $ (4,630,762) $ (5,065,422) Deferred income tax valuation allowance reversal 22,534 22,534 Deferred income tax expense 972,162 1,063,441 Net unrealized losses reported as accumulated other comprehensive loss $ (3,636,066) $ (3,979,447) 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 June 30, 2023 and December 31, 2022, respectively. The following table summarizes the credit quality, as determined by NAIC designation, of our fixed maturity portfolio as of the dates indicated: June 30, 2023 December 31, 2022 NAIC Amortized Fair Amortized Fair (Dollars in thousands) 1 $ 26,852,711 $ 24,130,363 $ 27,061,903 $ 24,211,086 2 15,733,173 13,925,216 17,023,157 14,944,131 3 616,104 518,089 595,193 510,392 4 102,614 92,058 109,409 91,495 5 6,765 6,917 61,721 36,738 6 11,648 7,814 14,636 10,775 $ 43,323,015 $ 38,680,457 $ 44,866,019 $ 39,804,617 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 4,300 and 4,510 securities, respectively) have been in a continuous unrealized loss position, at June 30, 2023 and December 31, 2022: Less than 12 months 12 months or more Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Dollars in thousands) June 30, 2023 Fixed maturity securities, available for sale: U.S. Government and agencies $ 120,241 $ (2,104) $ 24,084 $ (1,587) $ 144,325 $ (3,691) States, municipalities and territories 545,909 (38,329) 2,077,644 (432,465) 2,623,553 (470,794) Foreign corporate securities and foreign governments 86,734 (4,892) 404,826 (73,783) 491,560 (78,675) Corporate securities 4,341,434 (232,048) 14,300,847 (3,087,370) 18,642,281 (3,319,418) Residential mortgage backed securities 845,456 (50,133) 463,440 (77,977) 1,308,896 (128,110) Commercial mortgage backed securities 573,518 (18,089) 2,888,442 (470,803) 3,461,960 (488,892) Other asset backed securities 2,010,044 (48,514) 3,641,288 (274,467) 5,651,332 (322,981) $ 8,523,336 $ (394,109) $ 23,800,571 $ (4,418,452) $ 32,323,907 $ (4,812,561) December 31, 2022 Fixed maturity securities, available for sale: U.S. Government and agencies $ 160,201 $ (4,512) $ 908 $ (125) $ 161,109 $ (4,637) States, municipalities and territories 2,595,122 (537,313) 95,184 (37,521) 2,690,306 (574,834) Foreign corporate securities and foreign governments 522,826 (76,957) 21,816 (6,622) 544,642 (83,579) Corporate securities 18,784,181 (3,218,323) 1,411,177 (469,047) 20,195,358 (3,687,370) Residential mortgage backed securities 992,783 (101,100) 116,388 (25,268) 1,109,171 (126,368) Commercial mortgage backed securities 2,941,293 (302,513) 651,923 (109,257) 3,593,216 (411,770) Other asset backed securities 2,561,390 (162,821) 1,924,026 (232,468) 4,485,416 (395,289) $ 28,557,796 $ (4,403,539) $ 4,221,422 $ (880,308) $ 32,779,218 $ (5,283,847) (1) Unrealized losses have not been reduced to reflect the allowance for credit losses of $4.1 million and $3.3 million as of June 30, 2023 and December 31, 2022, respectively. The unrealized losses at June 30, 2023 are principally related to the timing of the purchases of certain securities, which carry less yield than those available at June 30, 2023. Approximately 98% of the unrealized losses on fixed maturity securities shown in the above table for both June 30, 2023 and December 31, 2022 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 and six months ended June 30, 2023 and 2022 are as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 (Dollars in thousands) Fixed maturity securities available for sale carried at fair value $ (398,608) $ (3,443,391) $ 434,660 $ (7,457,762) Adjustment for effect on other balance sheet accounts: Deferred income tax asset/liability 83,707 723,065 (91,279) 1,565,847 83,707 723,065 (91,279) 1,565,847 Change in net unrealized gains/losses on investments carried at fair value $ (314,901) $ (2,720,326) $ 343,381 $ (5,891,915) Proceeds from sales of available for sale fixed maturity securities for the six months ended June 30, 2023 and 2022 were $3.7 billion and $2.1 billion, respectively. Scheduled principal repayments, calls and tenders for available for sale fixed maturity securities for the six months ended June 30, 2023 and 2022 were $1.4 billion and $1.3 billion, respectively. Net realized losses on investments for the three and six months ended June 30, 2023 and 2022, are as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 (Dollars in thousands) Available for sale fixed maturity securities: Gross realized gains $ 59,056 $ 507 $ 85,044 $ 3,972 Gross realized losses (36,335) (24,053) (80,786) (26,059) Net credit loss (provision) release (46,273) (5,498) (47,102) (12,854) (23,552) (29,044) (42,844) (34,941) Other investments: Gross realized gains 433 — 2,210 — Gross realized losses (4,629) — (5,061) — (4,196) — (2,851) — Mortgage loans on real estate: Decrease (increase) in allowance for credit losses 5,231 (3,348) (3,423) (8,593) Recovery of specific allowance — 229 — 229 Loss on sale of mortgage loans (2,162) (1,109) (3,348) (3,094) 3,069 (4,228) (6,771) (11,458) $ (24,679) $ (33,272) $ (52,466) $ (46,399) Realized losses on available for sale fixed maturity securities in 2023 and 2022 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 June 30, 2023 States, Municipalities and Corporate Securities Commercial Mortgage Backed Securities Residential Mortgage Backed Securities Other Asset Backed Securities Total (Dollars in thousands) Beginning balance $ — $ 1,914 $ — $ 133 $ — $ 2,047 Additions for credit losses not previously recorded — — — — 947 947 Change in allowance on securities with previous allowance — 1,218 — (66) — 1,152 Reduction for securities sold during the period — — — — — — Ending balance $ — $ 3,132 $ — $ 67 $ 947 $ 4,146 Three Months Ended June 30, 2022 States, Municipalities and Corporate Securities Commercial Mortgage Backed Securities Residential Mortgage Backed Securities Other Asset Backed Securities Total (Dollars in thousands) Beginning balance $ 2,009 $ 3,825 $ — $ 743 $ — $ 6,577 Additions for credit losses not previously recorded — — — 295 — 295 Change in allowance on securities with previous allowance (175) (82) — — — (257) Reduction for securities sold during the period — — — (428) — (428) Ending balance $ 1,834 $ 3,743 $ — $ 610 $ — $ 6,187 Six Months Ended June 30, 2023 States, Municipalities and Corporate Securities Commercial Mortgage Backed Securities Residential Mortgage Backed Securities Other Asset Backed Securities Total (Dollars in thousands) Beginning balance $ — $ 3,214 $ — $ 133 $ — $ 3,347 Additions for credit losses not previously recorded — — — — 947 947 Change in allowance on securities with previous allowance — (82) — (66) — (148) Reduction for securities sold during the period — — — — — — Ending balance $ — $ 3,132 $ — $ 67 $ 947 $ 4,146 Six Months Ended June 30, 2022 States, Municipalities and 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 — 631 — 4,456 Change in allowance on securities with previous allowance (942) (82) — 337 — (687) Reduction for securities sold during the period — — — (428) — (428) Ending balance $ 1,834 $ 3,743 $ — $ 610 $ — $ 6,187 |
Mortgage Loans on Real Estate
Mortgage Loans on Real Estate | 6 Months Ended |
Jun. 30, 2023 | |
Loans Payable [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 $693.0 million at June 30, 2023. June 30, 2023 December 31, 2022 (Dollars in thousands) Commercial mortgage loans: Principal outstanding $ 3,535,506 $ 3,560,903 Deferred fees and costs, net (4,316) (6,345) Unamortized discounts and premiums, net (1,821) — Amortized cost 3,529,369 3,554,558 Valuation allowance (21,330) (22,428) Commercial mortgage loans, carrying value 3,508,039 3,532,130 Agricultural mortgage loans: Principal outstanding 582,660 567,630 Deferred fees and costs, net (1,719) (1,667) Amortized cost 580,941 565,963 Valuation allowance (895) (1,021) Agricultural mortgage loans, carrying value 580,046 564,942 Residential mortgage loans: Principal outstanding 3,236,400 2,807,652 Deferred fees and costs, net 1,068 1,909 Unamortized discounts and premiums, net 66,226 55,917 Amortized cost 3,303,694 2,865,478 Valuation allowance (18,170) (13,523) Residential mortgage loans, carrying value 3,285,524 2,851,955 Mortgage loans, carrying value $ 7,373,609 $ 6,949,027 Our commercial mortgage loan portfolio consists of loans collateralized by the related properties and diversified as to property type, location and loan size. Our lending policies establish limits on the amount that can be loaned to one borrower and other criteria to attempt to reduce the risk of default. The commercial mortgage loan portfolio is summarized by geographic region and property type as follows: June 30, 2023 December 31, 2022 Principal Percent Principal Percent (Dollars in thousands) Geographic distribution East $ 484,451 13.7 % $ 502,659 14.1 % Middle Atlantic 278,727 7.9 % 280,993 7.9 % Mountain 397,667 11.2 % 416,307 11.7 % New England 77,457 2.2 % 73,631 2.1 % Pacific 844,371 23.9 % 858,812 24.1 % South Atlantic 943,302 26.7 % 934,007 26.2 % West North Central 197,206 5.6 % 205,568 5.8 % West South Central 312,325 8.8 % 288,926 8.1 % $ 3,535,506 100.0 % $ 3,560,903 100.0 % Property type distribution Office $ 366,086 10.3 % $ 388,978 10.9 % Retail 845,217 23.9 % 896,351 25.2 % Industrial/Warehouse 896,797 25.4 % 866,623 24.3 % Apartment 1,024,893 29.0 % 912,984 25.6 % Hotel 324,271 9.2 % 285,271 8.0 % Mixed Use/Other 78,242 2.2 % 210,696 6.0 % $ 3,535,506 100.0 % $ 3,560,903 100.0 % Our agricultural mortgage loan portfolio consists of loans with an outstanding principal balance of $582.7 million and $567.6 million as of June 30, 2023 and December 31, 2022, 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 $3.2 billion and $2.8 billion as of June 30, 2023 and December 31, 2022, 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 $62.5 million and $58.2 million as of June 30, 2023 and December 31, 2022, 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 and six month periods ended June 30, 2023 or 2022, 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 the current state of the borrowers' credit quality, delinquency status, time to maturity and original credit scores. The following table represents a rollforward of the valuation allowance on our mortgage loan portfolios: Three Months Ended June 30, 2023 Commercial Agricultural Residential Total (Dollars in thousands) Beginning allowance balance $ (25,082) $ (1,356) $ (19,188) $ (45,626) Charge-offs — — — — Recoveries — — — — Change in provision for credit losses 3,752 461 1,018 5,231 Ending allowance balance $ (21,330) $ (895) $ (18,170) $ (40,395) Three Months Ended June 30, 2022 Commercial Agricultural Residential Total (Dollars in thousands) Beginning allowance balance $ (24,587) $ (558) $ (4,124) $ (29,269) Charge-offs — — — — Recoveries 229 — — 229 Change in provision for credit losses 114 (106) (3,356) (3,348) Ending allowance balance $ (24,244) $ (664) $ (7,480) $ (32,388) Six Months Ended June 30, 2023 Commercial Agricultural Residential Total (Dollars in thousands) Beginning allowance balance $ (22,428) $ (1,021) $ (13,523) $ (36,972) Charge-offs — — — — Recoveries — — — — Change in provision for credit losses 1,098 126 (4,647) (3,423) Ending allowance balance $ (21,330) $ (895) $ (18,170) $ (40,395) Six Months Ended June 30, 2022 Commercial Agricultural Residential Total (Dollars in thousands) Beginning allowance balance $ (17,926) $ (519) $ (5,579) $ (24,024) Charge-offs — — — — Recoveries 229 — — 229 Change in provision for credit losses (6,547) (145) (1,901) (8,593) Ending allowance balance $ (24,244) $ (664) $ (7,480) $ (32,388) 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 were two real estate properties totaling $715 thousand at June 30, 2023. There were no real estate properties in which ownership of the property was taken to satisfy an outstanding loan at December 31, 2022. 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 June 30, 2023 and December 31, 2022. 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 June 30, 2023 and December 31, 2022 (by year of origination): 2023 2022 2021 2020 2019 Prior Total As of June 30, 2023: 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 $ — — % $ 285,762 62 % $ 268,348 61 % $ 390,439 56 % $ 443,532 59 % $ 1,112,909 46 % $ 2,500,990 53 % Greater than or equal to 1.2 and less than 1.5 — — % — — % 9,830 69 % 46,365 54 % 103,702 67 % 177,289 61 % 337,186 62 % Greater than or equal to 1.0 and less than 1.2 18,444 18 % 192,832 43 % 294,759 45 % 39,486 60 % 8,318 66 % 50,856 56 % 604,695 46 % Less than 1.0 — — % — — % 26,946 52 % — — % 6,009 63 % 53,543 57 % 86,498 56 % Total $ 18,444 18 % $ 478,594 55 % $ 599,883 53 % $ 476,290 56 % $ 561,561 60 % $ 1,394,597 49 % $ 3,529,369 53 % 2022 2021 2020 2019 2018 Prior Total As of December 31, 2022: 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 $ 249,328 63 % $ 257,746 61 % $ 421,391 57 % $ 429,596 58 % $ 325,117 53 % $ 813,319 44 % $ 2,496,497 53 % Greater than or equal to 1.2 and less than 1.5 6,488 70 % 123,038 55 % 46,804 58 % 115,977 66 % 67,642 67 % 145,703 60 % 505,652 62 % Greater than or equal to 1.0 and less than 1.2 170,059 52 % 211,684 43 % 18,144 79 % 39,396 73 % 10,348 76 % 58,021 47 % 507,652 51 % Less than 1.0 — — % — — % — — % 6,107 64 % 13,025 70 % 25,625 65 % 44,757 66 % Total $ 425,875 59 % $ 592,468 53 % $ 486,339 58 % $ 591,076 61 % $ 416,132 57 % $ 1,042,668 47 % $ 3,554,558 54 % 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 June 30, 2023 and December 31, 2022. 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 June 30, 2023 and December 31, 2022 (by year of origination): 2023 2022 2021 2020 2019 Prior Total As of June 30, 2023: 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 $ 25,736 59 % $ 86,661 46 % $ 70,160 55 % $ 101,670 45 % $ — — % $ — — % $ 284,227 49 % Greater than or equal to 1.2 and less than 1.5 10,007 58 % 104,193 55 % 65,945 53 % 60,530 45 % — — % — — % 240,675 52 % Greater than or equal to 1.0 and less than 1.2 — — % 3,102 56 % 8,686 39 % — — % — — % — — % 11,788 44 % Less than 1.0 — — % — — % — — % 7,975 40 % 2,276 34 % 34,000 42 % 44,251 41 % Total $ 35,743 59 % $ 193,956 51 % $ 144,791 53 % $ 170,175 45 % $ 2,276 34 % $ 34,000 42 % $ 580,941 50 % 2022 2021 2020 2019 2018 Prior Total As of December 31, 2022: 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 $ 85,367 47 % $ 84,186 46 % $ 97,143 41 % $ — — % $ — — % $ — — % $ 266,696 45 % Greater than or equal to 1.2 and less than 1.5 107,856 54 % 67,630 52 % 61,103 32 % — — % — — % — — % 236,589 48 % Greater than or equal to 1.0 and less than 1.2 3,124 56 % 8,825 38 % 3,125 25 % — — % — — % — — % 15,074 39 % Less than 1.0 — — % — — % 7,975 35 % 5,629 41 % 34,000 31 % — — % 47,604 33 % Total $ 196,347 51 % $ 160,641 48 % $ 169,346 37 % $ 5,629 41 % $ 34,000 31 % $ — — % $ 565,963 45 % 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): 2023 2022 2021 2020 2019 Prior Total As of June 30, 2023: (Dollars in thousands) Commercial mortgage loans Current $ 18,444 $ 478,594 $ 599,883 $ 476,290 $ 561,561 $ 1,394,597 $ 3,529,369 30 - 59 days past due — — — — — — — 60 - 89 days past due — — — — — — — Over 90 days past due — — — — — — — Total commercial mortgage loans $ 18,444 $ 478,594 $ 599,883 $ 476,290 $ 561,561 $ 1,394,597 $ 3,529,369 Agricultural mortgage loans Current $ 32,743 $ 193,956 $ 144,791 $ 170,175 $ 2,276 $ 34,000 $ 577,941 30 - 59 days past due 3,000 — — — — — 3,000 60 - 89 days past due — — — — — — — Over 90 days past due — — — — — — — Total agricultural mortgage loans $ 35,743 $ 193,956 $ 144,791 $ 170,175 $ 2,276 $ 34,000 $ 580,941 Residential mortgage loans Current $ 663,036 $ 1,778,621 $ 473,986 $ 186,088 $ 26,497 $ 978 $ 3,129,206 30 - 59 days past due 39,680 43,994 14,638 4,650 2,274 162 105,398 60 - 89 days past due 3,901 10,276 5,427 1,030 — 190 20,824 Over 90 days past due 807 27,268 10,460 4,882 1,637 3,212 48,266 Total residential mortgage loans $ 707,424 $ 1,860,159 $ 504,511 $ 196,650 $ 30,408 $ 4,542 $ 3,303,694 2022 2021 2020 2019 2018 Prior Total As of December 31, 2022: (Dollars in thousands) Commercial mortgage loans Current $ 425,875 $ 592,468 $ 486,339 $ 591,076 $ 416,132 $ 1,042,668 $ 3,554,558 30 - 59 days past due — — — — — — — 60 - 89 days past due — — — — — — — Over 90 days past due — — — — — — — Total commercial mortgage loans $ 425,875 $ 592,468 $ 486,339 $ 591,076 $ 416,132 $ 1,042,668 $ 3,554,558 Agricultural mortgage loans Current $ 196,347 $ 160,641 $ 166,211 $ 5,629 $ 34,000 $ — $ 562,828 30 - 59 days past due — — — — — — — 60 - 89 days past due — — — — — — — Over 90 days past due — — 3,135 — — — 3,135 Total agricultural mortgage loans $ 196,347 $ 160,641 $ 169,346 $ 5,629 $ 34,000 $ — $ 565,963 Residential mortgage loans Current $ 1,915,169 $ 595,363 $ 211,119 $ 27,483 $ 1,710 $ 417 $ 2,751,261 30 - 59 days past due 39,179 8,238 13,073 1,960 — — 62,450 60 - 89 days past due 6,668 7,165 3,034 57 — — 16,924 Over 90 days past due 9,702 14,068 6,515 1,762 2,796 — 34,843 Total residential mortgage loans $ 1,970,718 $ 624,834 $ 233,741 $ 31,262 $ 4,506 $ 417 $ 2,865,478 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 93 loans in non-accrual status at June 30, 2023 and 59 loans in non-accrual status at December 31, 2022. During the three and six months ended June 30, 2023 we recognized $108 thousand and $445 thousand in interest income on loans which were in non-accrual status at the respective period end. During the three and six months ended June 30, 2022, we recognized $5 thousand and $71 thousand interest income on loans which were in non-accrual status at the respective period end. Loan Modifications Our commercial, agricultural and residential mortgage loans may be subject to loan modifications. Loan modifications may be granted to borrowers experiencing financial difficulty and could include principal forgiveness, interest rate reduction, an other-than-significant delay or a term extension. 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. A loan modification typically does not result in a change in valuation allowance as it is already incorporated into our allowance methodology. However, if we grant a borrower experiencing financial difficulty principal forgiveness, the amount of principal forgiven would be written off, which would reduce the amortized cost of the loan and result in an adjustment to the valuation allowance. There were no significant mortgage loan modifications for the three and six months ended June 30, 2023. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2023 | |
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 multiple investment company real estate limited partnerships which own various limited liability companies that invest in residential real estate properties and one real estate limited liability company that invests in a commercial real estate property. These entities are VIE's as the legal entities equity investors have insufficient equity at risk and lack of power to direct the activities that most significantly impact the economic performance. We determined we are the primary beneficiary as a result of our power to control the entities through our significant ownership. Due to the nature of the investment company real estate investments, the investments balance will fluctuate based on changes in the fair value of the properties as well as when purchases and sales of properties are made. The investment balance in the commercial real estate property is held at depreciated cost, and is expected to decrease over time. We are invested in two investment company limited liability companies that invest in operating entities which hold multifamily real estate properties. The entities are VIEs and we have determined we are the primary beneficiary as a result of our power to control the entities through our significant ownership. The investment balances, which represent equity interests in the investment company limited liability companies, fluctuate based on changes in the fair value of the properties and the performance of the operating entities. 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 equity interests in limited partnerships. We are invested in one investment company limited liability company that invests in core infrastructure assets typically held through an interest in limited liability companies. The entity is a VIE and we have determined we are the primary beneficiary as a result of our power to control the entity through significant ownership and our obligation to absorb losses or receive benefits from the VIE. The VIE meets the definition of an investment company, which requires the investment balance to be held at fair value. 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: June 30, 2023 December 31, 2022 Total Total Total Total (Dollars in thousands) Real estate investments $ 1,335,598 $ 94,071 $ 1,095,267 $ 78,244 Real estate limited liability companies 53,428 137 66,258 287 Limited partnership funds 918,937 213 620,741 113 Infrastructure limited liability companies 100,605 284 — — $ 2,408,568 $ 94,705 $ 1,782,266 $ 78,644 Unconsolidated Variable Interest Entities We provided debt funding to various special purpose vehicles, which are used to acquire and hold various types of loans or receivables. 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. The carrying value and maximum loss exposure for our unconsolidated VIEs were as follows: June 30, 2023 December 31, 2022 Asset Maximum Asset Maximum (Dollars in thousands) Fixed maturity securities, available for sale $ 1,445,039 $ 1,445,039 $ 1,178,110 $ 1,178,110 Other investments 71,208 71,208 — — |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments We use derivative instruments to manage risks. We have derivatives that are designated as hedging instruments and others that are not designated as hedging instruments. Any change in the fair value of the derivatives is recognized immediately in the Consolidated Statements of Operations. The notional and fair values of our derivative instruments, including derivative instruments embedded in fixed index annuity contracts, presented in the Consolidated Balance Sheets are as follows: June 30, 2023 December 31, 2022 Notional Fair Value Notional Fair Value (Dollars in thousands) Derivatives designated as hedging instruments Assets Derivative instruments Interest rate swaps $ — $ — $ 408,369 $ 32,769 Derivatives not designated as hedging instruments Assets Derivative instruments Call options $ 39,783,069 $ 1,131,597 $ 38,927,534 $ 397,789 Warrants — — 2,020 1,169 $ 39,783,069 $ 1,131,597 $ 38,929,554 $ 398,958 Liabilities Policy benefit reserves - annuity products Fixed index annuities - embedded derivatives, net $ 5,014,697 $ 4,820,845 Funds withheld for reinsurance liabilities Reinsurance related embedded derivative (397,234) (441,864) $ 4,617,463 $ 4,378,981 Derivatives Designated as Hedging Instruments We used interest rate swaps designated and accounted for as fair value hedges to protect a portfolio of fixed-rate fixed maturity securities against changes in fair value due to changes in interest rates. Our interest rate swap contracts allowed us to pay a fixed rate and receive a floating rate utilizing the Secured Overnight Financing Rate at specified intervals based on a notional amount. Interest rate swaps were carried at fair value and presented as Derivative instruments on the Consolidated Balance Sheets. For derivative instruments that were designated and qualified as a fair value hedge, the gain or loss on the portion of the derivative instrument included in the assessment of hedge effectiveness and the offsetting gain or loss on the hedged item attributable to the hedged risk were recognized in the same line item in the Consolidated Statements of Operations. The change in unrealized gain or loss attributable to interest rate changes on the fixed maturity securities that were designated as part of the hedge were reclassified out of Accumulated other comprehensive income (loss) into Change in fair value of derivatives in the Consolidated Statements of Operations. The remaining change in unrealized gain or loss on the hedged item not associated with the risk being hedged was recognized as a component of Other comprehensive income. The following represents the amortized cost and cumulative fair value hedging adjustments included in the hedged assets: Line Item in the Consolidated Balance Sheets in Which Hedged Item is Included Amortized Cost Cumulative Amount of Fair Value Basis Adjustment Gain (Loss) June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 (Dollars in thousands) Fixed maturities, available for sale: Current hedging relationships $ — $ 389,060 $ — $ (39,128) Discontinued hedging relationships 1,372,336 1,594,736 (80,946) (94,681) The following represents a summary of the gains (losses) related to the derivatives and hedged items that qualify for fair value hedge accounting: Derivative Hedged Item Net Amount Excluded: (Dollars in thousands) For the three months ended June 30, 2023 Interest rate swaps $ 18,847 $ (10,876) $ 7,971 $ — For the three months ended June 30, 2022 Interest rate swaps $ 26,771 $ (33,093) $ (6,322) $ 2,656 For the six months ended June 30, 2023 Interest rate swaps $ 5,856 $ 3,240 $ 9,096 $ — For the six months ended June 30, 2022 Interest rate swaps $ 26,771 $ (33,093) $ (6,322) $ 2,656 Derivatives Not Designated as Hedging 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. The changes in fair value of derivatives not designated as hedging instruments included in the Consolidated Statements of Operations are as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 (Dollars in thousands) Change in fair value of derivatives: Call options $ 234,883 $ (501,765) $ 278,327 $ (980,213) Warrants (115) (750) 1,206 179 Interest rate swaps — 2,656 — 2,656 $ 234,768 $ (499,859) $ 279,533 $ (977,378) Change in fair value of embedded derivatives: Fixed index annuities - embedded derivatives $ 233,514 $ (686,562) $ 573,574 $ (1,877,767) Reinsurance related embedded derivative (19,750) (199,422) 44,630 (401,866) $ 213,764 $ (885,984) $ 618,204 $ (2,279,633) Derivative Exposure We attempt to mitigate potential risk of loss due to the nonperformance of the counterparties through a regular monitoring process which evaluates the program's effectiveness. We do not purchase derivative instruments that would require payment or collateral to another institution and our derivative instruments 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 derivative instruments from multiple counterparties and evaluate the creditworthiness of all counterparties prior to purchase of the contracts. All non-exchange traded derivative instruments 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. Both our call options and interest rate swaps fall under the same credit support agreements with each counterparty 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 and interest rate swaps by counterparty and each counterparty's current credit rating are as follows: June 30, 2023 December 31, 2022 Counterparty Credit Rating Credit Rating (Moody's) Notional Fair Value Notional Fair Value (Dollars in thousands) Bank of America A+ Aa1 $ 4,124,812 $ 81,590 $ 3,574,125 $ 26,080 Barclays A+ A1 2,567,616 82,180 3,686,896 39,657 Canadian Imperial Bank of Commerce A+ Aa2 1,602,801 58,359 2,707,734 34,218 Citibank, N.A. A+ Aa3 4,171,072 102,691 3,748,162 29,873 Credit Suisse A A3 1,955,159 49,252 2,086,470 20,691 J.P. Morgan A+ Aa2 5,404,600 120,638 6,501,103 69,006 Mizuho A A1 4,030,827 145,197 — — Morgan Stanley A+ Aa3 1,967,830 45,622 2,957,389 38,470 Royal Bank of Canada AA- A1 4,479,656 146,476 4,378,132 58,026 Societe Generale A A1 2,806,536 69,333 2,099,081 17,157 Truist A A2 2,004,578 65,032 1,960,787 32,885 UBS AG A+ Aa3 300,708 8,676 — — Wells Fargo A+ Aa2 4,283,753 154,506 5,436,824 61,840 Exchange traded 83,121 2,045 199,200 2,655 $ 39,783,069 $ 1,131,597 $ 39,335,903 $ 430,558 As of June 30, 2023 and December 31, 2022, we held $1.1 billion and $0.4 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 the counterparties failed completely to perform according to the terms of the contracts to $68.5 million and $3.3 million at June 30, 2023 and December 31, 2022, 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. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs and Deferred Sales Inducements | 6 Months Ended |
Jun. 30, 2023 | |
Deferred Charges, Insurers [Abstract] | |
Deferred Policy Acquisition Costs and Deferred Sales Inducements | Deferred Policy Acquisition Costs and Deferred Sales Inducements Deferred Policy Acquisition Costs The following tables present the balances and changes in deferred policy acquisition costs: Six Months Ended June 30, 2023 Fixed Index Annuities Fixed Rate Annuities Single Premium Immediate Annuities Total (Dollars in thousands) Balance, beginning of period $ 2,649,322 $ 120,105 $ 4,216 $ 2,773,643 Capitalizations 189,581 16,079 23 205,683 Amortization expense (121,769) (14,600) (342) (136,711) Balance, end of period $ 2,717,134 $ 121,584 $ 3,897 $ 2,842,615 Year Ended December 31, 2022 Fixed Index Annuities Fixed Rate Annuities Single Premium Immediate Annuities Total (Dollars in thousands) Balance, beginning of period $ 2,906,684 $ 151,322 $ 4,198 $ 3,062,204 Write-off related to in-force ceded reinsurance (196,417) (7,209) — (203,626) Capitalizations 193,989 4,424 663 199,076 Amortization expense (254,934) (28,432) (645) (284,011) Balance, end of period $ 2,649,322 $ 120,105 $ 4,216 $ 2,773,643 Deferred Sales Inducements The following tables present the balances and changes in deferred sales inducements: Six Months Ended June 30, 2023 Fixed Index Annuities Fixed Rate Annuities Total (Dollars in thousands) Balance, beginning of period $ 2,017,960 $ 27,723 $ 2,045,683 Capitalizations 182,123 — 182,123 Amortization expense (91,964) (1,588) (93,552) Balance, end of period $ 2,108,119 $ 26,135 $ 2,134,254 Year Ended December 31, 2022 Fixed Index Annuities Fixed Rate Annuities Total (Dollars in thousands) Balance, beginning of period $ 2,088,591 $ 31,370 $ 2,119,961 Capitalizations 107,684 8 107,692 Amortization expense (178,315) (3,655) (181,970) Balance, end of period $ 2,017,960 $ 27,723 $ 2,045,683 |
Deferred Policy Acquisition Costs and Deferred Sales Inducements | Deferred Policy Acquisition Costs and Deferred Sales Inducements Deferred Policy Acquisition Costs The following tables present the balances and changes in deferred policy acquisition costs: Six Months Ended June 30, 2023 Fixed Index Annuities Fixed Rate Annuities Single Premium Immediate Annuities Total (Dollars in thousands) Balance, beginning of period $ 2,649,322 $ 120,105 $ 4,216 $ 2,773,643 Capitalizations 189,581 16,079 23 205,683 Amortization expense (121,769) (14,600) (342) (136,711) Balance, end of period $ 2,717,134 $ 121,584 $ 3,897 $ 2,842,615 Year Ended December 31, 2022 Fixed Index Annuities Fixed Rate Annuities Single Premium Immediate Annuities Total (Dollars in thousands) Balance, beginning of period $ 2,906,684 $ 151,322 $ 4,198 $ 3,062,204 Write-off related to in-force ceded reinsurance (196,417) (7,209) — (203,626) Capitalizations 193,989 4,424 663 199,076 Amortization expense (254,934) (28,432) (645) (284,011) Balance, end of period $ 2,649,322 $ 120,105 $ 4,216 $ 2,773,643 Deferred Sales Inducements The following tables present the balances and changes in deferred sales inducements: Six Months Ended June 30, 2023 Fixed Index Annuities Fixed Rate Annuities Total (Dollars in thousands) Balance, beginning of period $ 2,017,960 $ 27,723 $ 2,045,683 Capitalizations 182,123 — 182,123 Amortization expense (91,964) (1,588) (93,552) Balance, end of period $ 2,108,119 $ 26,135 $ 2,134,254 Year Ended December 31, 2022 Fixed Index Annuities Fixed Rate Annuities Total (Dollars in thousands) Balance, beginning of period $ 2,088,591 $ 31,370 $ 2,119,961 Capitalizations 107,684 8 107,692 Amortization expense (178,315) (3,655) (181,970) Balance, end of period $ 2,017,960 $ 27,723 $ 2,045,683 |
Policyholder Liabilities
Policyholder Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Policyholder Liabilities | Policyholder Liabilities Liability for Future Policy Benefits The liability for future policy benefits consists only of the liability associated with single premium immediate annuities (SPIA) with life contingencies. As this business has no future expected premiums, the rollforward presented below is the present value of expected future benefits. The balances of and changes in the liability for future policy benefits for the six months ended June 30, 2023 and year ended December 31, 2022 is as follows: Present Value of Expected Future Six Months Ended Year Ended (Dollars in thousands) Balance, beginning of period $ 318,677 $ 402,305 Beginning balance at original discount rate 342,453 352,708 Effect of changes in cash flow assumptions — 1,277 Effect of actual variances from expected experience (1,341) (1,941) Adjusted beginning of year balance 341,112 352,044 Issuances 4,899 16,072 Interest accrual 7,055 14,664 Benefit payments — — Net premiums collected — — Derecognition (lapses) (19,501) (40,327) Ending balance at original discount rate 333,565 342,453 Effect of changes in discount rate assumptions (24,331) (23,776) Balance, end of period $ 309,234 $ 318,677 The reconciliation of the net liability for future policy benefits to the liability for future policy benefits included in policy benefit reserves in the consolidated balance sheets is as follows: June 30, 2023 December 31, 2022 (Dollars in thousands) Liability for future policy benefits $ 309,234 $ 318,677 Deferred profit liability 19,926 19,223 329,160 337,900 Less: Reinsurance recoverable (1,639) (1,259) Net liability for future policy benefits, after reinsurance recoverable $ 327,521 $ 336,641 The weighted-average liability duration of the liability for future policy benefits is as follows: June 30, 2023 December 31, 2022 SPIA With Life Contingency: Weighted-average liability duration of the liability for future policy benefits (years) 7.13 6.78 The following table presents the amount of undiscounted expected future benefit payments and expected gross premiums: June 30, 2023 December 31, 2022 (Dollars in thousands) SPIA With Life Contingency: Expected future benefit payments $ 453,722 $ 467,627 Expected future gross premiums — — The amount of revenue and interest associated with the liability for future policy benefits recognized in the statement of operations for the six months ended June 30, 2023 and year ended December 31, 2022 is as follows: Six Months Ended Year Ended Gross Premiums Interest Gross Premiums or Assessments Interest (Dollars in thousands) SPIA With Life Contingency $ 5,233 $ 7,023 $ 16,994 $ 14,613 Total $ 5,233 $ 7,023 $ 16,994 $ 14,613 The weighted-average interest rate is as follows: June 30, 2023 December 31, 2022 Interest accretion rate 4.26 % 4.25 % Current discount rate 5.46 % 5.37 % Market Risk Benefits The balances of and changes in the liability for market risk benefits (MRB) for the six months ended June 30, 2023 and year ended December 31, 2022 is as follows: Six Months Ended Year Ended Fixed Rate Fixed Index Fixed Rate Fixed Index (Dollars in thousands) MRB Liability Balance, beginning of period $ 37,863 $ 2,187,758 $ 78,411 $ 2,557,378 Balance, beginning of period, before effect of changes in the instrument-specific credit risk 44,355 2,453,169 77,731 2,310,437 Issuances — 161,757 376 59,452 Interest accrual 1,313 78,354 1,349 72,551 Attributed fees collected 584 60,972 1,270 125,168 Benefits payments — — — — Effect of changes in interest rates 372 8,175 (19,421) (952,265) Effect of changes in equity markets — (66,590) — 186,618 Effect of changes in equity index volatility — (63,759) — 241,563 Actual policyholder behavior different from expected behavior — — — — Effect of changes in future expected policyholder behavior 1,127 1,972 602 46,567 Effect of changes in other future expected assumptions — — (17,552) 363,078 Balance, end of period, before effect of changes in the instrument-specific credit 47,751 2,634,050 44,355 2,453,169 Effect of changes in the instrument-specific credit risk (6,272) (236,727) (6,492) (265,411) Balance, end of period 41,479 2,397,323 37,863 2,187,758 Reinsured MRB, end of period 11,326 702,398 10,656 593,959 Balance, end of period, net of reinsurance $ 30,153 $ 1,694,925 $ 27,207 $ 1,593,799 Net amount at risk (a) $ 266,173 $ 11,575,916 $ 258,826 $ 10,987,198 Weighted average attained age of contract holders (years) 70 71 69 71 (a) Net amount at risk is defined as the current guarantee amount in excess of the current account balance. The following is a reconciliation of market risk benefits by amounts in an asset position and in a liability position to market risk benefit amounts included in other assets and market risk benefit reserves, respectively, in the Consolidated Balance Sheets: June 30, 2023 Asset Liability Net Liability (Dollars in thousands) Fixed Index Annuities $ 231,005 $ 2,628,328 $ 2,397,323 Fixed Rate Annuities 3,465 44,944 41,479 Total $ 234,470 $ 2,673,272 $ 2,438,802 December 31, 2022 Asset Liability Net Liability (Dollars in thousands) Fixed Index Annuities $ 226,294 $ 2,414,052 $ 2,187,758 Fixed Rate Annuities 3,577 41,440 37,863 Total $ 229,871 $ 2,455,492 $ 2,225,621 Reinsured Market Risk Benefits The following table presents the balances and changes in reinsured market risk benefits associated with fixed index annuities for the six months ended June 30, 2023 and year ended December 31, 2022: Six Months Ended Year Ended Fixed Rate Fixed Index Fixed Rate Fixed Index (Dollars in thousands) Ceded MRB Balance, beginning of period $ 10,656 $ 593,959 $ — $ 156,931 Write-off related to in-force ceded reinsurance — — 10,091 334,835 Issuances — 114,216 — 36,036 Interest accrual 286 16,447 104 7,598 Attributed fees collected 19 13,451 28 23,745 Benefits payments — — — — Effect of changes in interest rates 154 4,455 135 (171,948) Effect of changes in equity markets — (29,194) 118 43,799 Effect of changes in equity index volatility — (12,929) — 34,278 Actual policyholder behavior different from expected behavior — — — — Effect of changes in future expected policyholder behavior 211 1,993 180 12,598 Effect of changes in other future expected assumptions — — — 116,087 Balance, end of period $ 11,326 $ 702,398 $ 10,656 $ 593,959 Net amount at risk (a) $ 74,282 $ 2,761,134 $ 72,350 $ 2,402,964 Weighted average attained age of contract holders (years) 70 70 70 71 (a) Net amount at risk is defined as the current guarantee amount in excess of the current account balance. The following is a reconciliation of reinsurance market risk benefits by amounts in an asset position and in liability position to market risk benefit amounts included in coinsurance deposits and other liabilities, respectively, in the consolidated balance sheets: June 30, 2023 Asset Liability Net Asset (Dollars in thousands) Fixed Index Annuities $ 744,734 $ 42,336 $ 702,398 Fixed Rate Annuities 11,735 409 11,326 Total $ 756,469 $ 42,745 $ 713,724 December 31, 2022 Asset Liability Net Asset (Dollars in thousands) Fixed Index Annuities $ 629,611 $ 35,652 $ 593,959 Fixed Rate Annuities 11,070 414 10,656 Total $ 640,681 $ 36,066 $ 604,615 Significant Inputs for Fair Value Measurement - Market Risk Benefits The following tables provides a summary of the significant inputs and assumptions used in the fair value measurements of market risk benefits: June 30, 2023 Fair Value Valuation Significant Inputs Range Weighted (in thousands) Market risk benefits $ 2,438,802 Discounted cash flow Utilization (a) 0.04% - 78.75% 4.12% Ceded market risk benefits 713,724 Option budget (b) 1.65% - 2.50% 2.32% Risk-free interest rate (c) 2.52% - 5.38% 3.27% Nonperformance risk (d) 0.53% - 3.10% 2.54% December 31, 2022 Fair Value Valuation Significant Inputs Range Weighted (in thousands) Market risk benefits $ 2,225,621 Discounted cash flow Utilization (a) 0.04% - 78.75% 4.24% Ceded market risk benefits 604,615 Option budget (b) 1.65% - 2.50% 2.31% Risk-free interest rate (c) 2.51% - 4.90% 3.31% Nonperformance risk (d) 0.06% - 3.27% 2.59% (a) The utilization assumption represents the percentage of policyholders who will elect to receive lifetime income benefit payments in a given year. A decrease (increase) in the utilization assumption used in the fair value of market risk benefits could lead to favorable (unfavorable) changes in the market risk benefits. (b) The option budget assumption represents the expected cost of annual call options we will purchases in the future. An increase (decrease) in the option budget assumption used in the fair value of market risk benefits could lead to favorable (unfavorable) changes in the market risk benefits. (c) The risk-free interest rate assumption impacts the discount rate used in the discounted future cash flow valuation. An increase (decrease) in the risk-free interest rate assumption used in the fair value of market risk benefits could lead to favorable (unfavorable) changes in the market risk benefits. (d) The nonperformance risk assumption impacts the discount rate used in the discounted future cash flow valuation and includes our own credit risk based on the current market credit spreads for debt-like instruments we have issued and are available in the market. Additionally, the nonperformance risk assumption includes the counterparty credit risk used in the fair value measurement of ceded market risk benefits which is determined using the current market credit spreads based on the counterparty credit rating. An increase (decrease) in the nonperformance risk assumption for own credit risk used in the fair value of market risk benefits could lead to favorable (unfavorable) changes in the market risk benefits. An decrease (increase) in the nonperformance risk assumption for counterparty credit risk used in the fair value of ceded market risk benefits could lead to favorable (unfavorable) changes in the ceded market risk benefits. There were no notable changes to significant inputs and assumptions used in the fair value measurement of market risk benefits during the six months ended June 30, 2023. During the year ended December 31, 2022, the Company made the following notable changes to significant inputs and assumptions resulting in changes in the fair value measurement of market risk benefits: • Utilization assumptions were increased resulting in an increase to the market risk benefits liability and a decrease to net income. • Option budget assumptions were increased resulting in a decrease to the market risk benefits liability and an increase to net income. Policyholder Account Balances The following table presents the balances and changes in policyholders’ account balances: Six Months Ended Year Ended Fixed Rate Fixed Index Fixed Rate Annuities Fixed Index Annuities (Dollars in thousands) Balance, beginning of period $ 6,589,577 $ 53,826,234 $ 6,860,060 $ 55,003,305 Issuances 534,191 2,763,039 159,570 3,001,738 Premiums received 618 74,613 4,811 170,493 Policy charges (3,655) (163,063) (6,587) (272,604) Surrenders and withdrawals (443,810) (2,392,211) (574,590) (3,945,504) Benefit payments (6,542) (404,942) (11,328) (727,847) Interest credited 80,653 339,864 151,762 599,259 Other (4,667) (3,296) 5,879 (2,606) Balance, end of period $ 6,746,365 $ 54,040,238 $ 6,589,577 $ 53,826,234 Weighted-average crediting rate 2.43 % 1.26 % 2.28 % 1.11 % Net amount at risk (a) $ 266,173 $ 11,575,916 $ 258,826 $ 10,987,198 Cash surrender value $ 6,354,283 $ 49,813,318 $ 6,208,597 $ 49,551,657 (a) Net amount at risk is defined as the current guarantee amount in excess of the current account balance. The following table presents the reconciliation of policyholders’ account balances to policy benefit reserves in the consolidated balance sheets: June 30, 2023 December 31, 2022 (Dollars in thousands) Fixed index annuities policyholder account balances $ 54,040,238 $ 53,826,234 Fixed rate annuities policyholder account balances 6,746,365 6,589,577 Embedded derivative adjustment (b) (1,284,548) (1,996,640) Liability for future policy benefits 309,234 318,677 Deferred profit liability 19,926 19,223 Other 25,462 24,765 Total $ 59,856,677 $ 58,781,836 (b) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. The following table presents the balance of account values by range of guaranteed minimum crediting rates and the related range of the difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums: June 30, 2023 Range of At guaranteed minimum 1 to 50 51 to 150 Greater than 150 basis points above Total (Dollars in thousands) Fixed Index Annuities 0.00% - 0.50% $ — $ 695,154 $ 464,407 $ 654,267 $ 1,813,828 0.50% - 1.00% 2,470,011 1,093,223 2,214,702 106,894 5,884,830 1.00% - 1.50% 48,145 9,350 — — 57,495 1.50% - 2.00% 50 — — — 50 2.00% - 2.50% 129,460 85,536 8 — 215,004 2.50% - 3.00% 865,320 15 202 — 865,537 Greater than 3.00% — — — — — Allocated to index strategies 45,203,494 Total $ 3,512,986 $ 1,883,278 $ 2,679,319 $ 761,161 $ 54,040,238 Fixed Rate Annuities 0.00% - 0.50% $ 148 $ — $ — $ — $ 148 0.50% - 1.00% 54,489 185,377 3,960,356 992,706 5,192,928 1.00% - 1.50% 458,488 234 — — 458,722 1.50% - 2.00% 363,889 33,907 233,549 213 631,558 2.00% - 2.50% 19,249 23 — — 19,272 2.50% - 3.00% 385,318 7,201 — — 392,519 Greater than 3.00% 51,218 — — — 51,218 Total $ 1,332,799 $ 226,742 $ 4,193,905 $ 992,919 $ 6,746,365 December 31, 2022 Range of At guaranteed minimum 1 to 50 51 to 150 Greater than 150 basis points above Total (Dollars in thousands) Fixed Index Annuities 0.00% - 0.50% $ — $ 462,356 $ 407,426 $ 314,929 $ 1,184,711 0.50% - 1.00% 2,421,795 1,098,332 2,258,992 77,901 5,857,020 1.00% - 1.50% 51,586 9,391 — — 60,977 1.50% - 2.00% 57 — — — 57 2.00% - 2.50% 133,059 100,205 8 — 233,272 2.50% - 3.00% 939,684 — — — 939,684 Greater than 3.00% — — — — — Allocated to index strategies 45,550,513 Total $ 3,546,181 $ 1,670,284 $ 2,666,426 $ 392,830 $ 53,826,234 Fixed Rate Annuities 0.00% - 0.50% $ 61 $ — $ — $ — $ 61 0.50% - 1.00% 55,458 203,523 4,000,203 701,836 4,961,020 1.00% - 1.50% 454,728 231 — — 454,959 1.50% - 2.00% 281,694 96,767 277,053 189 655,703 2.00% - 2.50% 21,887 22 — — 21,909 2.50% - 3.00% 434,042 7,417 — — 441,459 Greater than 3.00% 54,466 — — — 54,466 Total $ 1,302,336 $ 307,960 $ 4,277,256 $ 702,025 $ 6,589,577 |
Notes and Loan Payable
Notes and Loan Payable | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Notes and Loan Payable | Notes and Loan Payable Notes and loan payable includes the following: June 30, 2023 December 31, 2022 (Dollars in thousands) Senior notes due 2027 Principal $ 500,000 $ 500,000 Unamortized debt issue costs (2,661) (2,960) Unamortized discount (160) (178) Term loan due 2027 Principal 300,000 300,000 Principal paydown (7,500) (3,750) Unamortized debt issue costs (925) (1,039) $ 788,754 $ 792,073 On June 16, 2017, we issued $500 million aggregate principal amount of senior unsecured notes due 2027 which bear interest at 5.0% per year and will mature on June 15, 2027 (the "2027 Notes"). The 2027 Notes were issued at a $0.3 million discount, which is being amortized over the term of the 2027 Notes using the effective interest method. Contractual interest is payable semi-annually in arrears each June 15th and December 15th. The initial transaction fees and costs totaling $5.8 million were capitalized as deferred financing costs and are being amortized over the term of the 2027 Notes using the effective interest method. On February 15, 2022, we entered into a five |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are occasionally involved in litigation, both as a defendant and as a plaintiff. In addition, state and federal regulatory bodies, such as state insurance departments, the Securities and Exchange Commission ("SEC") and the Department of Labor, regularly make inquiries and conduct examinations or investigations concerning our compliance with, among other things, insurance laws, securities laws and the Employee Retirement Income Security Act of 1974, as amended. In accordance with applicable accounting guidelines, we establish an accrued liability for litigation and regulatory matters when those matters present loss contingencies that are both probable and estimable. As a litigation or regulatory matter is developing we, in conjunction with outside counsel, evaluate on an ongoing basis whether the matter presents a loss contingency that meets conditions indicating the need for accrual and/or disclosure, and if not, the matter will continue to be monitored for further developments. If and when the loss contingency related to litigation or regulatory matters is deemed to be both probable and estimable, we will establish an accrued liability with respect to that matter and will continue to monitor the matter for further developments that may affect the amount of the accrued liability. There can be no assurance that any pending or future litigation will not have a material adverse effect on our business, financial condition, or results of operations. In addition to our commitments to fund mortgage loans, we have unfunded commitments at June 30, 2023 to limited partnerships of $794.7 million, fixed maturity securities of $1.1 billion, and other investments of $52.3 million. Through our FHLB membership, we have issued funding agreements to the FHLB in exchange for cash advances. As of June 30, 2023, we had no 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 $1.5 billion at June 30, 2023. |
Earnings Per Common Share and S
Earnings Per Common Share and Stockholders' Equity | 6 Months Ended |
Jun. 30, 2023 | |
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 Six Months Ended 2023 2022 2023 2022 (Dollars in thousands, except per share data) Numerator: Net income available to common stockholders - numerator for earnings per common share $ 344,444 $ 752,374 $ 177,531 $ 1,420,920 Denominator: Weighted average common shares outstanding 77,766,851 92,543,850 80,576,301 94,693,048 Effect of dilutive securities: Stock options and deferred compensation agreements 499,921 487,883 548,520 550,073 Restricted stock and restricted stock units 661,186 343,005 699,235 408,964 Denominator for earnings per common share - assuming dilution 78,927,958 93,374,738 81,824,056 95,652,085 Earnings per common share $ 4.43 $ 8.13 $ 2.20 $ 15.01 Earnings per common share - assuming dilution $ 4.36 $ 8.06 $ 2.17 $ 14.86 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 and six months ended June 30, 2023 and 2022, as the exercise price of all options outstanding was less than the average market price of our common shares for those periods. Stockholders' Equity On June 10, 2020, we issued 12,000 shares of 6.625% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series B ("Series B") with a $1.00 par value per share and a liquidation preference of $25,000 per share, for aggregate net proceeds of $290.3 million. On November 21, 2019 we issued 16,000 shares of 5.95% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series A ("Series A") with a $1.00 par value per share and a liquidation preference of $25,000 per share, for aggregate net proceeds of $388.9 million. 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 both the three and six months ended June 30, 2023 and 2022, we paid dividends totaling $6.0 million and $11.9 million for Series A preferred stock and $4.9 million and $9.9 million for 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, resulting in total ownership of approximately 16%. Brookfield also received the right to nominate one candidate for the Company’s Board of Directors following the initial equity investment. Share Repurchase Program As part of a share repurchase program, the Company's Board of Directors approved the repurchase of Company common stock of $500 million on November 19, 2021, and an additional $400 million on November 11, 2022. The share repurchase program has offset dilution from the issuance of shares to Brookfield, and its purpose remains to institute a regular cash return program for shareholders. On March 17, 2023 we entered into an accelerated share repurchase (ASR) agreement with JPMorgan Chase Bank, National Association to repurchase an aggregate of $200 million of our common stock. Under the ASR agreement, we received an initial share delivery of approximately 4.8 million shares representing approximately 80% of the number of shares initially underlying the ASR. The average price paid for the initial share delivery under the ASR was $33.12 per common share. The ASR agreement was determined to be an equity contract. The ASR was terminated on July 13, 2023, and a payment of $14 million was made to settle for the final volume-weighted average price associated with the initial share delivery. From the 2020 inception of the share repurchase program through June 30, 2023, we have repurchased approximately 31.2 million shares of our common stock at an average price of $34.76 per common share, including 2.4 million shares repurchased in the open market during the six months ended June 30, 2023. As of June 30, 2023, we had $276 million remaining under our share repurchase program. Treasury Stock |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 4, 2023, American Equity Investment Life Holding Company entered into an Agreement and Plan of Merger (the "Agreement") with Brookfield Reinsurance Ltd. The Agreement provides that each issued and outstanding share of AEL common stock will be converted into the right to receive $38.85 per share in cash and a number of fully-paid and nonassessable share of class A limited voting shares of Brookfield Asset Management Ltd (BAM) equal to the Exchange Ratio as defined in the Agreement. The Exchange Ratio is subject to adjustment based on the 10-day volume-weighted average share price of BAM Class A Stock with total consideration ranging between $54.00 and $56.50 per share. The Agreement does not provide for the payment of any consideration with respect to the issued and outstanding shares of AEL Series A and Series B preferred stock. As such, these shares will be unaffected by the Agreement and will remain outstanding. The closing of the Agreement is subject to a number of contingencies, including (1) receipt of American Equity Investment Life Holding Company shareholder approval, (2) receipt of certain regulatory approvals, (3) the absence of any injunction or restraint making illegal or otherwise prohibiting the consummation of the merger, (4) the effectiveness of the applicable registration statement on Form F-4 to be filed by BAM and (5) listing approval of the shares of BAM Class A Stock on the New York Stock Exchange and the Toronto Stock Exchange. BAM’s obligations to close the merger are also conditioned upon the absence of a Company Material Adverse Effect (as defined in the Agreement) and the absence of the imposition of a Burdensome Condition (as defined in the Agreement) by any regulator as part of the regulatory approval process. The Agreement contains Company representations and warranties and provides for pre-closing covenants, including, subject to certain exceptions, covenants relating to the conduct by the Company in the ordinary course consistent with past practice. The closing of the merger may not occur prior to January 5, 2024, unless BAM's parent agrees otherwise. The Agreement also provides termination rights for each of the Company and BAM, including, among others, in the event the closing of the merger does not occur on or before April 4, 2024, subject to extension under certain circumstances be extended. Should the Agreement be terminated under certain circumstances, the Company may be required to pay BAM's parent a termination fee of $102 million. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |||
Pay vs Performance Disclosure | ||||||
Net Income (Loss) Attributable to Parent | $ 355,363 | $ 763,293 | [1] | $ 199,369 | $ 1,442,758 | [1] |
[1] Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Consolidation | 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 and six month periods ended June 30, 2023 are not necessarily indicative of the results that may be expected for any other period, including for the year ended December 31, 2023. 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, 2022. |
Basis of Presentation | 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 and six month periods ended June 30, 2023 are not necessarily indicative of the results that may be expected for any other period, including for the year ended December 31, 2023. 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, 2022. |
Adopted Accounting Pronouncements | Adopted Accounting Pronouncements Troubled Debt Restructurings and Vintage Disclosures In March 2022, the Financial Accounting Standards Board ("FASB") issued an accounting standards update ("ASU") on troubled debt restructurings ("TDR") and vintage disclosures related to current period gross write-offs and recoveries. This guidance eliminates the accounting guidance for TDRs by creditors and enhances disclosure requirements for certain refinancing and restructuring of loans by creditors when a borrower is experiencing financial difficulty. The guidance also requires companies to disclosure current-period gross write-offs by year of origination for financing receivables and net investments in leases. This ASU was adopted on January 1, 2023 and will be applied prospectively. This guidance did not have a material impact on our consolidated financial statements. Targeted Improvements to the Accounting for Long-Duration Insurance Contracts 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 with the change in fair value recognized in net income excluding the change in fair value related to our own-credit risk which is recognized in AOCI and simplifying the method used to amortize deferred policy acquisition costs and deferred sales inducements to a constant level 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 was effective for us January 1, 2023, the transition date (the remeasurement date) was January 1, 2021. We adopted the guidance for the liability for future policyholder benefits, deferred acquisition costs, and deferred sales inducements on a modified retrospective basis such that those balances were adjusted to conform to ASU 2018-12 on January 1, 2021. The guidance for market risk benefits was applied retrospectively. Below are the transition date impacts for each of these items. |
Market Risk Benefits | Market Risk Benefits Accounting Policy Market risk benefits (MRBs) are contracts or contract features that both provide protection to the policyholder from other-than-nominal capital market risk and expose the Company to other-than-nominal capital market risk. We issue certain fixed indexed annuity and fixed rate annuity contracts that provide minimum guarantees to policyholders including guaranteed minimum withdrawal benefits (GMWB) and guaranteed minimum death benefits (GMDB) that are MRBs. MRBs are measured at fair value, at the individual contract level, and can be either an asset or a liability. Contracts which contain more than one MRB feature are combined into one single MRB. The fair value is calculated using stochastic models that include a risk margin and incorporate a spread for our instrument specific credit risk. At contract inception, attributed fees are calculated based on the present value of the fees and assessments collectible from the policyholder relative to the present value of expected benefits paid attributable to the MRB. The attributed fees remain static over the life of the MRB and is used to calculate the fair value of the MRB using a risk neutral valuation method. The attributed fees cannot be negative and cannot exceed the total explicit fees collectible from the policyholder. The MRB assets and liabilities are presented separately on the Consolidated Balance Sheets. The ceded MRB assets are presented in coinsurance deposits on the Consolidated Balance Sheets. Changes in fair value of the MRB are recognized in market risk benefits (gains) losses on the Consolidated Statements of Operations each period with the exception of the portion of the change in fair value related to a changes in our nonperformance risk, which is recognized in other comprehensive income (OCI). See Note 8 - Policyholder Liabilities for more information on MRBs. |
Deferred Policy Acquisition Costs (DAC) | Deferred Policy Acquisition Costs (DAC) and Deferred Sales Inducements (DSI) Accounting Policy The Company incurs costs in connection with acquiring new and renewal business. The portion of these costs which are incremental and direct to the acquisition of a new or renewal policy are deferred as they are incurred. DAC and DSI are amortized on a constant level basis over the expected term of the contracts based on projected policy counts. Contracts are grouped consistent with the grouping used in the estimating of the liability. The assumptions used in the calculation of DAC and DSI include full surrenders, partial withdrawals, mortality, utilization and reset assumptions associated with lifetime income benefit riders, and the option budget assumption. If the actual experience is different from our expectations, the amortization pattern is adjusted prospectively. See Note 7 - Deferred Policy Acquisition Costs and Deferred Sales Inducements for more information on DAC and DSI. |
Deferred Sales Inducements (DSI) | Deferred Policy Acquisition Costs (DAC) and Deferred Sales Inducements (DSI) Accounting Policy The Company incurs costs in connection with acquiring new and renewal business. The portion of these costs which are incremental and direct to the acquisition of a new or renewal policy are deferred as they are incurred. DAC and DSI are amortized on a constant level basis over the expected term of the contracts based on projected policy counts. Contracts are grouped consistent with the grouping used in the estimating of the liability. The assumptions used in the calculation of DAC and DSI include full surrenders, partial withdrawals, mortality, utilization and reset assumptions associated with lifetime income benefit riders, and the option budget assumption. If the actual experience is different from our expectations, the amortization pattern is adjusted prospectively. See Note 7 - Deferred Policy Acquisition Costs and Deferred Sales Inducements for more information on DAC and DSI. |
Liability for Future Policy Benefits | Liability for Future Policy Benefits Accounting Policy A liability for future policy benefits is recorded for our traditional limited-payment insurance contracts and is generally equal to the present value of expected future policy benefit payments. The present value calculation uses assumptions for mortality, morbidity, termination, and expense. The contracts are grouped into cohorts based on issue year and product type. The liability for future policy benefits is discounted using an upper-medium grade fixed-income instrument yield that reflects the duration characteristics of the liabilities and maximizes the use of observable data. The discount rate is updated each reporting period and any changes in the liability resulting from changes in the upper medium grade fixed income instrument yield are recognized in AOCI. Any changes to the liability as a result of assumption changes will be recognized as remeasurement gains (losses) in insurance policy benefits and change in future policy benefits in the Consolidated Statement of Operations. See Note 8 - Policyholder Liabilities for more information on the liability for future policy benefits. |
Fair Values of Financial Instruments | 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. NAV – Our consolidated limited partnership funds are typically measured using NAV as a practical expedient in determining fair value and are not classified in the fair value hierarchy. Our carrying value reflects our pro rata ownership percentage as indicated by NAV in the investment fund financial statements and is recorded on a quarter lag due to the timing of when financial statements are available. |
Investments | 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, Loan Valuation Allowance | 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 and six month periods ended June 30, 2023 or 2022, 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 the current state of the borrowers' credit quality, delinquency status, time to maturity and original credit scores. |
Mortgage Loans on Real Estate, Real Estate Acquired Through Foreclosure | 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 were two real estate properties totaling $715 thousand at June 30, 2023. There were no real estate properties in which ownership of the property was taken to satisfy an outstanding loan at December 31, 2022. 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, Troubled Debt Restructuring | 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. A loan modification typically does not result in a change in valuation allowance as it is already incorporated into our allowance methodology. However, if we grant a borrower experiencing financial difficulty principal forgiveness, the amount of principal forgiven would be written off, which would reduce the amortized cost of the loan and result in an adjustment to the valuation allowance. |
Commitments and Contingencies | 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. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Liability for Future Policy Benefit, Activity | Liability for Future Policy (Dollars in thousands) Pre-adoption 1/1/2021 balance $ 337,467 Adjustment to opening retained earnings for expected future policy benefits 2,566 Adjustment for the effect of remeasurement of liability at current single A rate 68,717 Post adoption 1/1/2021 balance $ 408,750 Present Value of Expected Future Six Months Ended Year Ended (Dollars in thousands) Balance, beginning of period $ 318,677 $ 402,305 Beginning balance at original discount rate 342,453 352,708 Effect of changes in cash flow assumptions — 1,277 Effect of actual variances from expected experience (1,341) (1,941) Adjusted beginning of year balance 341,112 352,044 Issuances 4,899 16,072 Interest accrual 7,055 14,664 Benefit payments — — Net premiums collected — — Derecognition (lapses) (19,501) (40,327) Ending balance at original discount rate 333,565 342,453 Effect of changes in discount rate assumptions (24,331) (23,776) Balance, end of period $ 309,234 $ 318,677 The reconciliation of the net liability for future policy benefits to the liability for future policy benefits included in policy benefit reserves in the consolidated balance sheets is as follows: June 30, 2023 December 31, 2022 (Dollars in thousands) Liability for future policy benefits $ 309,234 $ 318,677 Deferred profit liability 19,926 19,223 329,160 337,900 Less: Reinsurance recoverable (1,639) (1,259) Net liability for future policy benefits, after reinsurance recoverable $ 327,521 $ 336,641 The weighted-average liability duration of the liability for future policy benefits is as follows: June 30, 2023 December 31, 2022 SPIA With Life Contingency: Weighted-average liability duration of the liability for future policy benefits (years) 7.13 6.78 The amount of revenue and interest associated with the liability for future policy benefits recognized in the statement of operations for the six months ended June 30, 2023 and year ended December 31, 2022 is as follows: Six Months Ended Year Ended Gross Premiums Interest Gross Premiums or Assessments Interest (Dollars in thousands) SPIA With Life Contingency $ 5,233 $ 7,023 $ 16,994 $ 14,613 Total $ 5,233 $ 7,023 $ 16,994 $ 14,613 The weighted-average interest rate is as follows: June 30, 2023 December 31, 2022 Interest accretion rate 4.26 % 4.25 % Current discount rate 5.46 % 5.37 % |
Market Risk Benefit, Activity | Market Risk (Dollars in thousands) Pre-adoption 1/1/2021 carrying amount for features now classified as MRBs $ 2,547,231 Adjustment for the removal of shadow adjustments (584,636) Adjustment for the cumulative effect of the changes in the instrument-specific credit risk between the original contract issuance date and the transition date 229,108 Adjustment for the remaining difference between previous carrying amount and fair value measurement for the MRB, exclusive of the instrument specific credit risk 33,781 Post adoption 1/1/2021 MRB balance $ 2,225,484 Ceded Market Risk (Dollars in thousands) Pre-adoption 1/1/2021 carrying amount for features now classified as MRBs $ 62,108 Adjustment for the difference between previous carrying amount and fair value measurement for the MRB, exclusive of the instrument specific credit risk 27,230 Post adoption 1/1/2021 ceded MRB balance $ 89,338 (a) The ceded market risk benefit is recognized in coinsurance deposits on the Consolidated Balance Sheets. The balances of and changes in the liability for market risk benefits (MRB) for the six months ended June 30, 2023 and year ended December 31, 2022 is as follows: Six Months Ended Year Ended Fixed Rate Fixed Index Fixed Rate Fixed Index (Dollars in thousands) MRB Liability Balance, beginning of period $ 37,863 $ 2,187,758 $ 78,411 $ 2,557,378 Balance, beginning of period, before effect of changes in the instrument-specific credit risk 44,355 2,453,169 77,731 2,310,437 Issuances — 161,757 376 59,452 Interest accrual 1,313 78,354 1,349 72,551 Attributed fees collected 584 60,972 1,270 125,168 Benefits payments — — — — Effect of changes in interest rates 372 8,175 (19,421) (952,265) Effect of changes in equity markets — (66,590) — 186,618 Effect of changes in equity index volatility — (63,759) — 241,563 Actual policyholder behavior different from expected behavior — — — — Effect of changes in future expected policyholder behavior 1,127 1,972 602 46,567 Effect of changes in other future expected assumptions — — (17,552) 363,078 Balance, end of period, before effect of changes in the instrument-specific credit 47,751 2,634,050 44,355 2,453,169 Effect of changes in the instrument-specific credit risk (6,272) (236,727) (6,492) (265,411) Balance, end of period 41,479 2,397,323 37,863 2,187,758 Reinsured MRB, end of period 11,326 702,398 10,656 593,959 Balance, end of period, net of reinsurance $ 30,153 $ 1,694,925 $ 27,207 $ 1,593,799 Net amount at risk (a) $ 266,173 $ 11,575,916 $ 258,826 $ 10,987,198 Weighted average attained age of contract holders (years) 70 71 69 71 (a) Net amount at risk is defined as the current guarantee amount in excess of the current account balance. The following is a reconciliation of market risk benefits by amounts in an asset position and in a liability position to market risk benefit amounts included in other assets and market risk benefit reserves, respectively, in the Consolidated Balance Sheets: June 30, 2023 Asset Liability Net Liability (Dollars in thousands) Fixed Index Annuities $ 231,005 $ 2,628,328 $ 2,397,323 Fixed Rate Annuities 3,465 44,944 41,479 Total $ 234,470 $ 2,673,272 $ 2,438,802 December 31, 2022 Asset Liability Net Liability (Dollars in thousands) Fixed Index Annuities $ 226,294 $ 2,414,052 $ 2,187,758 Fixed Rate Annuities 3,577 41,440 37,863 Total $ 229,871 $ 2,455,492 $ 2,225,621 The following table presents the balances and changes in reinsured market risk benefits associated with fixed index annuities for the six months ended June 30, 2023 and year ended December 31, 2022: Six Months Ended Year Ended Fixed Rate Fixed Index Fixed Rate Fixed Index (Dollars in thousands) Ceded MRB Balance, beginning of period $ 10,656 $ 593,959 $ — $ 156,931 Write-off related to in-force ceded reinsurance — — 10,091 334,835 Issuances — 114,216 — 36,036 Interest accrual 286 16,447 104 7,598 Attributed fees collected 19 13,451 28 23,745 Benefits payments — — — — Effect of changes in interest rates 154 4,455 135 (171,948) Effect of changes in equity markets — (29,194) 118 43,799 Effect of changes in equity index volatility — (12,929) — 34,278 Actual policyholder behavior different from expected behavior — — — — Effect of changes in future expected policyholder behavior 211 1,993 180 12,598 Effect of changes in other future expected assumptions — — — 116,087 Balance, end of period $ 11,326 $ 702,398 $ 10,656 $ 593,959 Net amount at risk (a) $ 74,282 $ 2,761,134 $ 72,350 $ 2,402,964 Weighted average attained age of contract holders (years) 70 70 70 71 (a) Net amount at risk is defined as the current guarantee amount in excess of the current account balance. The following is a reconciliation of reinsurance market risk benefits by amounts in an asset position and in liability position to market risk benefit amounts included in coinsurance deposits and other liabilities, respectively, in the consolidated balance sheets: June 30, 2023 Asset Liability Net Asset (Dollars in thousands) Fixed Index Annuities $ 744,734 $ 42,336 $ 702,398 Fixed Rate Annuities 11,735 409 11,326 Total $ 756,469 $ 42,745 $ 713,724 December 31, 2022 Asset Liability Net Asset (Dollars in thousands) Fixed Index Annuities $ 629,611 $ 35,652 $ 593,959 Fixed Rate Annuities 11,070 414 10,656 Total $ 640,681 $ 36,066 $ 604,615 |
Deferred Policy Acquisition Costs | Deferred Policy Fixed Index Annuities and (Dollars in thousands) Pre-adoption 1/1/2021 balance $ 2,225,199 Adjustments for the removal of shadow adjustments 1,183,306 Post adoption 1/1/2021 balance $ 3,408,505 The following tables present the balances and changes in deferred policy acquisition costs: Six Months Ended June 30, 2023 Fixed Index Annuities Fixed Rate Annuities Single Premium Immediate Annuities Total (Dollars in thousands) Balance, beginning of period $ 2,649,322 $ 120,105 $ 4,216 $ 2,773,643 Capitalizations 189,581 16,079 23 205,683 Amortization expense (121,769) (14,600) (342) (136,711) Balance, end of period $ 2,717,134 $ 121,584 $ 3,897 $ 2,842,615 Year Ended December 31, 2022 Fixed Index Annuities Fixed Rate Annuities Single Premium Immediate Annuities Total (Dollars in thousands) Balance, beginning of period $ 2,906,684 $ 151,322 $ 4,198 $ 3,062,204 Write-off related to in-force ceded reinsurance (196,417) (7,209) — (203,626) Capitalizations 193,989 4,424 663 199,076 Amortization expense (254,934) (28,432) (645) (284,011) Balance, end of period $ 2,649,322 $ 120,105 $ 4,216 $ 2,773,643 |
Deferred Sale Inducements | Deferred Sales Fixed Index Annuities and (Dollars in thousands) Pre-adoption 1/1/2021 balance $ 1,448,375 Adjustments for the removal of shadow adjustments 768,310 Post adoption 1/1/2021 balance $ 2,216,685 The following tables present the balances and changes in deferred sales inducements: Six Months Ended June 30, 2023 Fixed Index Annuities Fixed Rate Annuities Total (Dollars in thousands) Balance, beginning of period $ 2,017,960 $ 27,723 $ 2,045,683 Capitalizations 182,123 — 182,123 Amortization expense (91,964) (1,588) (93,552) Balance, end of period $ 2,108,119 $ 26,135 $ 2,134,254 Year Ended December 31, 2022 Fixed Index Annuities Fixed Rate Annuities Total (Dollars in thousands) Balance, beginning of period $ 2,088,591 $ 31,370 $ 2,119,961 Capitalizations 107,684 8 107,692 Amortization expense (178,315) (3,655) (181,970) Balance, end of period $ 2,017,960 $ 27,723 $ 2,045,683 |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Fair Values of Financial Instruments | The following sets forth a comparison of the carrying amounts and fair values of our financial instruments: June 30, 2023 December 31, 2022 Carrying Fair Value Carrying Fair Value (Dollars in thousands) Assets Fixed maturity securities, available for sale $ 38,680,457 $ 38,680,457 $ 39,804,617 $ 39,804,617 Mortgage loans on real estate 7,373,609 6,900,291 6,949,027 6,502,463 Real estate investments 1,158,772 1,158,772 1,056,063 1,056,063 Limited partnerships and limited liability companies 1,069,965 1,069,965 684,835 684,835 Derivative instruments 1,131,597 1,131,597 431,727 431,727 Other investments 1,412,939 1,412,939 1,817,085 1,817,085 Cash and cash equivalents 5,000,657 5,000,657 1,919,669 1,919,669 Coinsurance deposits 14,247,284 13,362,371 13,254,956 12,640,797 Market risk benefits 234,470 234,470 229,871 229,871 Liabilities Policy benefit reserves 59,503,416 55,933,419 58,419,911 55,572,896 Market risk benefits 2,673,272 2,673,272 2,455,492 2,455,492 Single premium immediate annuity (SPIA) benefit reserves 201,539 210,273 212,119 221,130 Other policy funds - FHLB — — 300,000 300,000 Notes and loan payable 788,754 774,860 792,073 774,220 Subordinated debentures 78,927 88,388 78,753 87,293 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis, By Fair Value Hierarchy Level | Our assets and liabilities which are measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022 are presented below based on the fair value hierarchy levels: Total NAV Quoted Significant Significant (Dollars in thousands) June 30, 2023 Assets Fixed maturity securities, available for sale: U.S. Government and agencies $ 175,462 $ — $ 29,718 $ 145,744 $ — States, municipalities and territories 3,261,359 — — 3,132,056 129,303 Foreign corporate securities and foreign governments 573,917 — — 573,917 — Corporate securities 22,069,209 — — 21,818,072 251,137 Residential mortgage backed securities 1,473,297 — — 1,473,297 — Commercial mortgage backed securities 3,553,618 — — 3,553,618 — Other asset backed securities 7,573,595 — — 6,830,671 742,924 Other investments 932,242 — 376,022 532,976 23,244 Real estate investments 1,158,772 — — — 1,158,772 Limited partnerships and limited liability companies 1,069,965 918,925 — — 151,040 Derivative instruments 1,131,597 — — 1,131,597 — Cash and cash equivalents 5,000,657 — 5,000,657 — — Market risk benefits (a) 234,470 — — — 234,470 $ 48,208,160 $ 918,925 $ 5,406,397 $ 39,191,948 $ 2,690,890 Liabilities Funds withheld liability - embedded derivative $ (397,234) $ — $ — $ — $ (397,234) Fixed index annuities - embedded derivatives 5,014,697 — — — 5,014,697 Market risk benefits (a) 2,673,272 — — — 2,673,272 $ 7,290,735 $ — $ — $ — $ 7,290,735 December 31, 2022 Assets Fixed maturity securities, available for sale: U.S. Government and agencies $ 169,071 $ — $ 26,184 $ 142,887 $ — States, municipalities and territories 3,822,982 — — 3,822,982 — Foreign corporate securities and foreign governments 676,852 — — 676,852 — Corporate securities 24,161,921 — — 23,759,573 402,348 Residential mortgage backed securities 1,377,611 — — 1,377,611 — Commercial mortgage backed securities 3,687,478 — — 3,687,478 — Other asset backed securities 5,908,702 — — 5,465,784 442,918 Other investments 1,013,297 — 398,280 615,017 — Real estate investments 940,559 — — — 940,559 Limited partnerships and limited liability companies 684,835 620,626 — — 64,209 Derivative instruments 431,727 — — 431,727 — Cash and cash equivalents 1,919,669 — 1,919,669 — — Market risk benefits (a) 229,871 — — — 229,871 $ 45,024,575 $ 620,626 $ 2,344,133 $ 39,979,911 $ 2,079,905 Liabilities Funds withheld liability - embedded derivative $ (441,864) $ — $ — $ — $ (441,864) Fixed index annuities - embedded derivatives 4,820,845 — — — 4,820,845 Market risk benefits (a) 2,455,492 — — — 2,455,492 $ 6,834,473 $ — $ — $ — $ 6,834,473 (a) See Note 8 - Policyholder Liabilities for additional information related to market risk benefits, including the balances of and changes in market risk benefits as well as significant inputs and assumptions used in the fair value measurements of market risk benefits. |
Schedule of Assumptions Used in Estimating Fair Value | The following table presents average lapse rate and partial withdrawal rate assumptions, by contract duration, used in estimating the fair value of the embedded derivative component of our fixed index annuity policy benefit reserves at each reporting date: Average Lapse Rates Average Partial Withdrawal Rates Contract Duration (Years) June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 1 - 5 2.07% 2.17% 1.87% 1.86% 6 - 10 3.38% 3.28% 1.95% 1.97% 11 - 15 3.58% 3.63% 1.81% 1.86% 16 - 20 10.44% 8.55% 2.89% 2.96% 20+ 4.92% 4.90% 1.82% 1.81% |
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 and six months ended June 30, 2023 and 2022: Three Months Ended Six Months Ended 2023 2022 2023 2022 (Dollars in thousands) Fixed maturity securities, available for sale - States, municipalities and territories Beginning balance $ 97,659 $ — $ — $ — Purchases and sales, net — — — — Transfers in 11,164 77,726 108,823 77,726 Transfers out — — — — Total realized/unrealized gains (losses) Included in net income — — — — Included in other comprehensive income (loss) 20,480 — 20,480 — Ending balance $ 129,303 $ 77,726 $ 129,303 $ 77,726 Fixed maturity securities, available for sale - Corporate securities Beginning balance $ 375,297 $ — $ 402,348 $ — Purchases and sales, net — — (26,278) — Transfers in 49,326 — 49,673 — Transfers out (172,174) — (172,174) — Total realized/unrealized gains (losses): Included in net income — — — — Included in other comprehensive income (loss) (1,312) — (2,432) — Ending balance $ 251,137 $ — $ 251,137 $ — Fixed maturity securities, available for sale - Other asset backed securities Beginning balance $ 808,228 $ — $ 442,918 $ — Purchases and sales, net — — 227,032 — Transfers in — 64,550 130,502 64,550 Transfers out (20,817) — (20,817) — Total realized/unrealized gains (losses): Included in net income — — — — Included in other comprehensive income (loss) (44,487) — (36,711) — Ending balance $ 742,924 $ 64,550 $ 742,924 $ 64,550 Three Months Ended Six Months Ended 2023 2022 2023 2022 (Dollars in thousands) Other investments Beginning balance $ — $ 3,867 $ — $ 6,349 Transfers in 9,821 — 9,821 — Transfers out — (3,867) — (3,867) Total realized/unrealized gains (losses): Included in net income — — — (2,482) Included in other comprehensive income (loss) 13,423 — 13,423 — Ending balance $ 23,244 $ — $ 23,244 $ — Real estate investments Beginning balance $ 1,053,631 $ 510,188 $ 940,559 $ 337,939 Purchases and sales, net 108,825 135,478 229,733 303,566 Change in fair value (3,684) 26,809 (11,520) 30,970 Ending balance $ 1,158,772 $ 672,475 $ 1,158,772 $ 672,475 Limited partnerships and limited liability companies Beginning balance $ 164,327 $ — $ 64,209 $ — Purchases and sales, net 3,339 — 97,476 — Change in fair value (16,626) — (10,645) — Ending balance $ 151,040 $ — $ 151,040 $ — Funds withheld liability - embedded derivative Beginning balance $ (377,484) $ — $ (441,864) $ — Transfers in — — — — Change in fair value (19,750) — 44,630 — Ending balance $ (397,234) $ — $ (397,234) $ — Fixed index annuities - embedded derivatives Beginning balance $ 4,905,133 $ 6,770,915 $ 4,820,845 $ 7,964,961 Premiums less benefits (32,309) (50,594) (153,490) 63,483 Change in fair value, net 141,873 (884,009) 347,342 (2,192,132) Ending balance $ 5,014,697 $ 5,836,312 $ 5,014,697 $ 5,836,312 |
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 and six months ended June 30, 2023 and 2022: Three Months Ended Six Months Ended 2023 2022 2023 2022 (Dollars in thousands) Fixed maturity securities, available for sale - States, municipalities and territories Beginning balance $ 97,659 $ — $ — $ — Purchases and sales, net — — — — Transfers in 11,164 77,726 108,823 77,726 Transfers out — — — — Total realized/unrealized gains (losses) Included in net income — — — — Included in other comprehensive income (loss) 20,480 — 20,480 — Ending balance $ 129,303 $ 77,726 $ 129,303 $ 77,726 Fixed maturity securities, available for sale - Corporate securities Beginning balance $ 375,297 $ — $ 402,348 $ — Purchases and sales, net — — (26,278) — Transfers in 49,326 — 49,673 — Transfers out (172,174) — (172,174) — Total realized/unrealized gains (losses): Included in net income — — — — Included in other comprehensive income (loss) (1,312) — (2,432) — Ending balance $ 251,137 $ — $ 251,137 $ — Fixed maturity securities, available for sale - Other asset backed securities Beginning balance $ 808,228 $ — $ 442,918 $ — Purchases and sales, net — — 227,032 — Transfers in — 64,550 130,502 64,550 Transfers out (20,817) — (20,817) — Total realized/unrealized gains (losses): Included in net income — — — — Included in other comprehensive income (loss) (44,487) — (36,711) — Ending balance $ 742,924 $ 64,550 $ 742,924 $ 64,550 Three Months Ended Six Months Ended 2023 2022 2023 2022 (Dollars in thousands) Other investments Beginning balance $ — $ 3,867 $ — $ 6,349 Transfers in 9,821 — 9,821 — Transfers out — (3,867) — (3,867) Total realized/unrealized gains (losses): Included in net income — — — (2,482) Included in other comprehensive income (loss) 13,423 — 13,423 — Ending balance $ 23,244 $ — $ 23,244 $ — Real estate investments Beginning balance $ 1,053,631 $ 510,188 $ 940,559 $ 337,939 Purchases and sales, net 108,825 135,478 229,733 303,566 Change in fair value (3,684) 26,809 (11,520) 30,970 Ending balance $ 1,158,772 $ 672,475 $ 1,158,772 $ 672,475 Limited partnerships and limited liability companies Beginning balance $ 164,327 $ — $ 64,209 $ — Purchases and sales, net 3,339 — 97,476 — Change in fair value (16,626) — (10,645) — Ending balance $ 151,040 $ — $ 151,040 $ — Funds withheld liability - embedded derivative Beginning balance $ (377,484) $ — $ (441,864) $ — Transfers in — — — — Change in fair value (19,750) — 44,630 — Ending balance $ (397,234) $ — $ (397,234) $ — Fixed index annuities - embedded derivatives Beginning balance $ 4,905,133 $ 6,770,915 $ 4,820,845 $ 7,964,961 Premiums less benefits (32,309) (50,594) (153,490) 63,483 Change in fair value, net 141,873 (884,009) 347,342 (2,192,132) Ending balance $ 5,014,697 $ 5,836,312 $ 5,014,697 $ 5,836,312 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments [Abstract] | |
Schedule of Fixed Maturity Securities | At June 30, 2023 and December 31, 2022, 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) June 30, 2023 Fixed maturity securities, available for sale: U.S. Government and agencies $ 179,087 $ 66 $ (3,691) $ — $ 175,462 States, municipalities and territories 3,706,837 25,316 (470,794) — 3,261,359 Foreign corporate securities and foreign governments 649,101 3,491 (78,675) — 573,917 Corporate securities 25,268,072 123,687 (3,319,418) (3,132) 22,069,209 Residential mortgage backed securities 1,593,824 7,650 (128,110) (67) 1,473,297 Commercial mortgage backed securities 4,041,901 609 (488,892) — 3,553,618 Other asset backed securities 7,884,193 13,330 (322,981) (947) 7,573,595 $ 43,323,015 $ 174,149 $ (4,812,561) $ (4,146) $ 38,680,457 December 31, 2022 Fixed maturity securities, available for sale: U.S. Government and agencies $ 173,638 $ 70 $ (4,637) $ — $ 169,071 States, municipalities and territories 4,356,251 41,565 (574,834) — 3,822,982 Foreign corporate securities and foreign governments 748,770 11,661 (83,579) — 676,852 Corporate securities 27,706,440 146,065 (3,687,370) (3,214) 24,161,921 Residential mortgage backed securities 1,492,242 11,870 (126,368) (133) 1,377,611 Commercial mortgage backed securities 4,098,755 493 (411,770) — 3,687,478 Other asset backed securities 6,289,923 14,068 (395,289) — 5,908,702 $ 44,866,019 $ 225,792 $ (5,283,847) $ (3,347) $ 39,804,617 (1) Amortized cost excludes accrued interest receivable of $416.5 million and $425.4 million as of June 30, 2023 and December 31, 2022, 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 June 30, 2023, 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 $ 681,287 $ 668,827 Due after one year through five years 6,111,532 5,857,320 Due after five years through ten years 5,588,456 5,069,920 Due after ten years through twenty years 8,060,065 7,137,892 Due after twenty years 9,361,757 7,345,988 29,803,097 26,079,947 Residential mortgage backed securities 1,593,824 1,473,297 Commercial mortgage backed securities 4,041,901 3,553,618 Other asset backed securities 7,884,193 7,573,595 $ 43,323,015 $ 38,680,457 |
Schedule of Net Unrealized Gains (Losses) on Investments Reported as Separate Component of Stockholders' Equity | Net unrealized losses on investments reported as a separate component of stockholders' equity were comprised of the following: June 30, 2023 December 31, 2022 (Dollars in thousands) Net unrealized losses on investments $ (4,630,762) $ (5,065,422) Deferred income tax valuation allowance reversal 22,534 22,534 Deferred income tax expense 972,162 1,063,441 Net unrealized losses reported as accumulated other comprehensive loss $ (3,636,066) $ (3,979,447) |
Schedule of Credit Quality of Fixed Maturity Security Portfolio by NAIC Designation | The following table summarizes the credit quality, as determined by NAIC designation, of our fixed maturity portfolio as of the dates indicated: June 30, 2023 December 31, 2022 NAIC Amortized Fair Amortized Fair (Dollars in thousands) 1 $ 26,852,711 $ 24,130,363 $ 27,061,903 $ 24,211,086 2 15,733,173 13,925,216 17,023,157 14,944,131 3 616,104 518,089 595,193 510,392 4 102,614 92,058 109,409 91,495 5 6,765 6,917 61,721 36,738 6 11,648 7,814 14,636 10,775 $ 43,323,015 $ 38,680,457 $ 44,866,019 $ 39,804,617 |
Unrealized Gains (Losses) on Investments | 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 4,300 and 4,510 securities, respectively) have been in a continuous unrealized loss position, at June 30, 2023 and December 31, 2022: Less than 12 months 12 months or more Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Dollars in thousands) June 30, 2023 Fixed maturity securities, available for sale: U.S. Government and agencies $ 120,241 $ (2,104) $ 24,084 $ (1,587) $ 144,325 $ (3,691) States, municipalities and territories 545,909 (38,329) 2,077,644 (432,465) 2,623,553 (470,794) Foreign corporate securities and foreign governments 86,734 (4,892) 404,826 (73,783) 491,560 (78,675) Corporate securities 4,341,434 (232,048) 14,300,847 (3,087,370) 18,642,281 (3,319,418) Residential mortgage backed securities 845,456 (50,133) 463,440 (77,977) 1,308,896 (128,110) Commercial mortgage backed securities 573,518 (18,089) 2,888,442 (470,803) 3,461,960 (488,892) Other asset backed securities 2,010,044 (48,514) 3,641,288 (274,467) 5,651,332 (322,981) $ 8,523,336 $ (394,109) $ 23,800,571 $ (4,418,452) $ 32,323,907 $ (4,812,561) December 31, 2022 Fixed maturity securities, available for sale: U.S. Government and agencies $ 160,201 $ (4,512) $ 908 $ (125) $ 161,109 $ (4,637) States, municipalities and territories 2,595,122 (537,313) 95,184 (37,521) 2,690,306 (574,834) Foreign corporate securities and foreign governments 522,826 (76,957) 21,816 (6,622) 544,642 (83,579) Corporate securities 18,784,181 (3,218,323) 1,411,177 (469,047) 20,195,358 (3,687,370) Residential mortgage backed securities 992,783 (101,100) 116,388 (25,268) 1,109,171 (126,368) Commercial mortgage backed securities 2,941,293 (302,513) 651,923 (109,257) 3,593,216 (411,770) Other asset backed securities 2,561,390 (162,821) 1,924,026 (232,468) 4,485,416 (395,289) $ 28,557,796 $ (4,403,539) $ 4,221,422 $ (880,308) $ 32,779,218 $ (5,283,847) (1) Unrealized losses have not been reduced to reflect the allowance for credit losses of $4.1 million and $3.3 million as of June 30, 2023 and December 31, 2022, respectively. Changes in net unrealized gains/losses on investments for the three and six months ended June 30, 2023 and 2022 are as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 (Dollars in thousands) Fixed maturity securities available for sale carried at fair value $ (398,608) $ (3,443,391) $ 434,660 $ (7,457,762) Adjustment for effect on other balance sheet accounts: Deferred income tax asset/liability 83,707 723,065 (91,279) 1,565,847 83,707 723,065 (91,279) 1,565,847 Change in net unrealized gains/losses on investments carried at fair value $ (314,901) $ (2,720,326) $ 343,381 $ (5,891,915) |
Net Realized Gains (Losses) on Investments | Net realized losses on investments for the three and six months ended June 30, 2023 and 2022, are as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 (Dollars in thousands) Available for sale fixed maturity securities: Gross realized gains $ 59,056 $ 507 $ 85,044 $ 3,972 Gross realized losses (36,335) (24,053) (80,786) (26,059) Net credit loss (provision) release (46,273) (5,498) (47,102) (12,854) (23,552) (29,044) (42,844) (34,941) Other investments: Gross realized gains 433 — 2,210 — Gross realized losses (4,629) — (5,061) — (4,196) — (2,851) — Mortgage loans on real estate: Decrease (increase) in allowance for credit losses 5,231 (3,348) (3,423) (8,593) Recovery of specific allowance — 229 — 229 Loss on sale of mortgage loans (2,162) (1,109) (3,348) (3,094) 3,069 (4,228) (6,771) (11,458) $ (24,679) $ (33,272) $ (52,466) $ (46,399) |
Rollforward of Allowance for Credit Loss | The following table provides a rollforward of the allowance for credit loss: Three Months Ended June 30, 2023 States, Municipalities and Corporate Securities Commercial Mortgage Backed Securities Residential Mortgage Backed Securities Other Asset Backed Securities Total (Dollars in thousands) Beginning balance $ — $ 1,914 $ — $ 133 $ — $ 2,047 Additions for credit losses not previously recorded — — — — 947 947 Change in allowance on securities with previous allowance — 1,218 — (66) — 1,152 Reduction for securities sold during the period — — — — — — Ending balance $ — $ 3,132 $ — $ 67 $ 947 $ 4,146 Three Months Ended June 30, 2022 States, Municipalities and Corporate Securities Commercial Mortgage Backed Securities Residential Mortgage Backed Securities Other Asset Backed Securities Total (Dollars in thousands) Beginning balance $ 2,009 $ 3,825 $ — $ 743 $ — $ 6,577 Additions for credit losses not previously recorded — — — 295 — 295 Change in allowance on securities with previous allowance (175) (82) — — — (257) Reduction for securities sold during the period — — — (428) — (428) Ending balance $ 1,834 $ 3,743 $ — $ 610 $ — $ 6,187 Six Months Ended June 30, 2023 States, Municipalities and Corporate Securities Commercial Mortgage Backed Securities Residential Mortgage Backed Securities Other Asset Backed Securities Total (Dollars in thousands) Beginning balance $ — $ 3,214 $ — $ 133 $ — $ 3,347 Additions for credit losses not previously recorded — — — — 947 947 Change in allowance on securities with previous allowance — (82) — (66) — (148) Reduction for securities sold during the period — — — — — — Ending balance $ — $ 3,132 $ — $ 67 $ 947 $ 4,146 Six Months Ended June 30, 2022 States, Municipalities and 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 — 631 — 4,456 Change in allowance on securities with previous allowance (942) (82) — 337 — (687) Reduction for securities sold during the period — — — (428) — (428) Ending balance $ 1,834 $ 3,743 $ — $ 610 $ — $ 6,187 |
Mortgage Loans on Real Estate (
Mortgage Loans on Real Estate (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Loans Payable [Abstract] | |
Summary of Mortgage Loan Portfolios | Our mortgage loan portfolios are summarized in the following table. There were commitments outstanding of $693.0 million at June 30, 2023. June 30, 2023 December 31, 2022 (Dollars in thousands) Commercial mortgage loans: Principal outstanding $ 3,535,506 $ 3,560,903 Deferred fees and costs, net (4,316) (6,345) Unamortized discounts and premiums, net (1,821) — Amortized cost 3,529,369 3,554,558 Valuation allowance (21,330) (22,428) Commercial mortgage loans, carrying value 3,508,039 3,532,130 Agricultural mortgage loans: Principal outstanding 582,660 567,630 Deferred fees and costs, net (1,719) (1,667) Amortized cost 580,941 565,963 Valuation allowance (895) (1,021) Agricultural mortgage loans, carrying value 580,046 564,942 Residential mortgage loans: Principal outstanding 3,236,400 2,807,652 Deferred fees and costs, net 1,068 1,909 Unamortized discounts and premiums, net 66,226 55,917 Amortized cost 3,303,694 2,865,478 Valuation allowance (18,170) (13,523) Residential mortgage loans, carrying value 3,285,524 2,851,955 Mortgage loans, carrying value $ 7,373,609 $ 6,949,027 |
Commercial Mortgage Loan Portfolio Summarized By Geographic Region and Property Type | The commercial mortgage loan portfolio is summarized by geographic region and property type as follows: June 30, 2023 December 31, 2022 Principal Percent Principal Percent (Dollars in thousands) Geographic distribution East $ 484,451 13.7 % $ 502,659 14.1 % Middle Atlantic 278,727 7.9 % 280,993 7.9 % Mountain 397,667 11.2 % 416,307 11.7 % New England 77,457 2.2 % 73,631 2.1 % Pacific 844,371 23.9 % 858,812 24.1 % South Atlantic 943,302 26.7 % 934,007 26.2 % West North Central 197,206 5.6 % 205,568 5.8 % West South Central 312,325 8.8 % 288,926 8.1 % $ 3,535,506 100.0 % $ 3,560,903 100.0 % Property type distribution Office $ 366,086 10.3 % $ 388,978 10.9 % Retail 845,217 23.9 % 896,351 25.2 % Industrial/Warehouse 896,797 25.4 % 866,623 24.3 % Apartment 1,024,893 29.0 % 912,984 25.6 % Hotel 324,271 9.2 % 285,271 8.0 % Mixed Use/Other 78,242 2.2 % 210,696 6.0 % $ 3,535,506 100.0 % $ 3,560,903 100.0 % |
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 June 30, 2023 Commercial Agricultural Residential Total (Dollars in thousands) Beginning allowance balance $ (25,082) $ (1,356) $ (19,188) $ (45,626) Charge-offs — — — — Recoveries — — — — Change in provision for credit losses 3,752 461 1,018 5,231 Ending allowance balance $ (21,330) $ (895) $ (18,170) $ (40,395) Three Months Ended June 30, 2022 Commercial Agricultural Residential Total (Dollars in thousands) Beginning allowance balance $ (24,587) $ (558) $ (4,124) $ (29,269) Charge-offs — — — — Recoveries 229 — — 229 Change in provision for credit losses 114 (106) (3,356) (3,348) Ending allowance balance $ (24,244) $ (664) $ (7,480) $ (32,388) Six Months Ended June 30, 2023 Commercial Agricultural Residential Total (Dollars in thousands) Beginning allowance balance $ (22,428) $ (1,021) $ (13,523) $ (36,972) Charge-offs — — — — Recoveries — — — — Change in provision for credit losses 1,098 126 (4,647) (3,423) Ending allowance balance $ (21,330) $ (895) $ (18,170) $ (40,395) Six Months Ended June 30, 2022 Commercial Agricultural Residential Total (Dollars in thousands) Beginning allowance balance $ (17,926) $ (519) $ (5,579) $ (24,024) Charge-offs — — — — Recoveries 229 — — 229 Change in provision for credit losses (6,547) (145) (1,901) (8,593) Ending allowance balance $ (24,244) $ (664) $ (7,480) $ (32,388) |
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 June 30, 2023 and December 31, 2022 (by year of origination): 2023 2022 2021 2020 2019 Prior Total As of June 30, 2023: 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 $ — — % $ 285,762 62 % $ 268,348 61 % $ 390,439 56 % $ 443,532 59 % $ 1,112,909 46 % $ 2,500,990 53 % Greater than or equal to 1.2 and less than 1.5 — — % — — % 9,830 69 % 46,365 54 % 103,702 67 % 177,289 61 % 337,186 62 % Greater than or equal to 1.0 and less than 1.2 18,444 18 % 192,832 43 % 294,759 45 % 39,486 60 % 8,318 66 % 50,856 56 % 604,695 46 % Less than 1.0 — — % — — % 26,946 52 % — — % 6,009 63 % 53,543 57 % 86,498 56 % Total $ 18,444 18 % $ 478,594 55 % $ 599,883 53 % $ 476,290 56 % $ 561,561 60 % $ 1,394,597 49 % $ 3,529,369 53 % 2022 2021 2020 2019 2018 Prior Total As of December 31, 2022: 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 $ 249,328 63 % $ 257,746 61 % $ 421,391 57 % $ 429,596 58 % $ 325,117 53 % $ 813,319 44 % $ 2,496,497 53 % Greater than or equal to 1.2 and less than 1.5 6,488 70 % 123,038 55 % 46,804 58 % 115,977 66 % 67,642 67 % 145,703 60 % 505,652 62 % Greater than or equal to 1.0 and less than 1.2 170,059 52 % 211,684 43 % 18,144 79 % 39,396 73 % 10,348 76 % 58,021 47 % 507,652 51 % Less than 1.0 — — % — — % — — % 6,107 64 % 13,025 70 % 25,625 65 % 44,757 66 % Total $ 425,875 59 % $ 592,468 53 % $ 486,339 58 % $ 591,076 61 % $ 416,132 57 % $ 1,042,668 47 % $ 3,554,558 54 % 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 June 30, 2023 and December 31, 2022 (by year of origination): 2023 2022 2021 2020 2019 Prior Total As of June 30, 2023: 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 $ 25,736 59 % $ 86,661 46 % $ 70,160 55 % $ 101,670 45 % $ — — % $ — — % $ 284,227 49 % Greater than or equal to 1.2 and less than 1.5 10,007 58 % 104,193 55 % 65,945 53 % 60,530 45 % — — % — — % 240,675 52 % Greater than or equal to 1.0 and less than 1.2 — — % 3,102 56 % 8,686 39 % — — % — — % — — % 11,788 44 % Less than 1.0 — — % — — % — — % 7,975 40 % 2,276 34 % 34,000 42 % 44,251 41 % Total $ 35,743 59 % $ 193,956 51 % $ 144,791 53 % $ 170,175 45 % $ 2,276 34 % $ 34,000 42 % $ 580,941 50 % 2022 2021 2020 2019 2018 Prior Total As of December 31, 2022: 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 $ 85,367 47 % $ 84,186 46 % $ 97,143 41 % $ — — % $ — — % $ — — % $ 266,696 45 % Greater than or equal to 1.2 and less than 1.5 107,856 54 % 67,630 52 % 61,103 32 % — — % — — % — — % 236,589 48 % Greater than or equal to 1.0 and less than 1.2 3,124 56 % 8,825 38 % 3,125 25 % — — % — — % — — % 15,074 39 % Less than 1.0 — — % — — % 7,975 35 % 5,629 41 % 34,000 31 % — — % 47,604 33 % Total $ 196,347 51 % $ 160,641 48 % $ 169,346 37 % $ 5,629 41 % $ 34,000 31 % $ — — % $ 565,963 45 % |
Aging of Financing Receivables | Aging of financing receivables is summarized in the following table (by year of origination): 2023 2022 2021 2020 2019 Prior Total As of June 30, 2023: (Dollars in thousands) Commercial mortgage loans Current $ 18,444 $ 478,594 $ 599,883 $ 476,290 $ 561,561 $ 1,394,597 $ 3,529,369 30 - 59 days past due — — — — — — — 60 - 89 days past due — — — — — — — Over 90 days past due — — — — — — — Total commercial mortgage loans $ 18,444 $ 478,594 $ 599,883 $ 476,290 $ 561,561 $ 1,394,597 $ 3,529,369 Agricultural mortgage loans Current $ 32,743 $ 193,956 $ 144,791 $ 170,175 $ 2,276 $ 34,000 $ 577,941 30 - 59 days past due 3,000 — — — — — 3,000 60 - 89 days past due — — — — — — — Over 90 days past due — — — — — — — Total agricultural mortgage loans $ 35,743 $ 193,956 $ 144,791 $ 170,175 $ 2,276 $ 34,000 $ 580,941 Residential mortgage loans Current $ 663,036 $ 1,778,621 $ 473,986 $ 186,088 $ 26,497 $ 978 $ 3,129,206 30 - 59 days past due 39,680 43,994 14,638 4,650 2,274 162 105,398 60 - 89 days past due 3,901 10,276 5,427 1,030 — 190 20,824 Over 90 days past due 807 27,268 10,460 4,882 1,637 3,212 48,266 Total residential mortgage loans $ 707,424 $ 1,860,159 $ 504,511 $ 196,650 $ 30,408 $ 4,542 $ 3,303,694 2022 2021 2020 2019 2018 Prior Total As of December 31, 2022: (Dollars in thousands) Commercial mortgage loans Current $ 425,875 $ 592,468 $ 486,339 $ 591,076 $ 416,132 $ 1,042,668 $ 3,554,558 30 - 59 days past due — — — — — — — 60 - 89 days past due — — — — — — — Over 90 days past due — — — — — — — Total commercial mortgage loans $ 425,875 $ 592,468 $ 486,339 $ 591,076 $ 416,132 $ 1,042,668 $ 3,554,558 Agricultural mortgage loans Current $ 196,347 $ 160,641 $ 166,211 $ 5,629 $ 34,000 $ — $ 562,828 30 - 59 days past due — — — — — — — 60 - 89 days past due — — — — — — — Over 90 days past due — — 3,135 — — — 3,135 Total agricultural mortgage loans $ 196,347 $ 160,641 $ 169,346 $ 5,629 $ 34,000 $ — $ 565,963 Residential mortgage loans Current $ 1,915,169 $ 595,363 $ 211,119 $ 27,483 $ 1,710 $ 417 $ 2,751,261 30 - 59 days past due 39,179 8,238 13,073 1,960 — — 62,450 60 - 89 days past due 6,668 7,165 3,034 57 — — 16,924 Over 90 days past due 9,702 14,068 6,515 1,762 2,796 — 34,843 Total residential mortgage loans $ 1,970,718 $ 624,834 $ 233,741 $ 31,262 $ 4,506 $ 417 $ 2,865,478 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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: June 30, 2023 December 31, 2022 Total Total Total Total (Dollars in thousands) Real estate investments $ 1,335,598 $ 94,071 $ 1,095,267 $ 78,244 Real estate limited liability companies 53,428 137 66,258 287 Limited partnership funds 918,937 213 620,741 113 Infrastructure limited liability companies 100,605 284 — — $ 2,408,568 $ 94,705 $ 1,782,266 $ 78,644 The carrying value and maximum loss exposure for our unconsolidated VIEs were as follows: June 30, 2023 December 31, 2022 Asset Maximum Asset Maximum (Dollars in thousands) Fixed maturity securities, available for sale $ 1,445,039 $ 1,445,039 $ 1,178,110 $ 1,178,110 Other investments 71,208 71,208 — — |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional and Fair Value of Derivative Instruments | The notional and fair values of our derivative instruments, including derivative instruments embedded in fixed index annuity contracts, presented in the Consolidated Balance Sheets are as follows: June 30, 2023 December 31, 2022 Notional Fair Value Notional Fair Value (Dollars in thousands) Derivatives designated as hedging instruments Assets Derivative instruments Interest rate swaps $ — $ — $ 408,369 $ 32,769 Derivatives not designated as hedging instruments Assets Derivative instruments Call options $ 39,783,069 $ 1,131,597 $ 38,927,534 $ 397,789 Warrants — — 2,020 1,169 $ 39,783,069 $ 1,131,597 $ 38,929,554 $ 398,958 Liabilities Policy benefit reserves - annuity products Fixed index annuities - embedded derivatives, net $ 5,014,697 $ 4,820,845 Funds withheld for reinsurance liabilities Reinsurance related embedded derivative (397,234) (441,864) $ 4,617,463 $ 4,378,981 |
Schedule of Fair Value Hedging Instruments | The following represents the amortized cost and cumulative fair value hedging adjustments included in the hedged assets: Line Item in the Consolidated Balance Sheets in Which Hedged Item is Included Amortized Cost Cumulative Amount of Fair Value Basis Adjustment Gain (Loss) June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 (Dollars in thousands) Fixed maturities, available for sale: Current hedging relationships $ — $ 389,060 $ — $ (39,128) Discontinued hedging relationships 1,372,336 1,594,736 (80,946) (94,681) The following represents a summary of the gains (losses) related to the derivatives and hedged items that qualify for fair value hedge accounting: Derivative Hedged Item Net Amount Excluded: (Dollars in thousands) For the three months ended June 30, 2023 Interest rate swaps $ 18,847 $ (10,876) $ 7,971 $ — For the three months ended June 30, 2022 Interest rate swaps $ 26,771 $ (33,093) $ (6,322) $ 2,656 For the six months ended June 30, 2023 Interest rate swaps $ 5,856 $ 3,240 $ 9,096 $ — For the six months ended June 30, 2022 Interest rate swaps $ 26,771 $ (33,093) $ (6,322) $ 2,656 |
Change in Fair Value of Derivatives Not Designated as Hedging | The changes in fair value of derivatives not designated as hedging instruments included in the Consolidated Statements of Operations are as follows: Three Months Ended Six Months Ended 2023 2022 2023 2022 (Dollars in thousands) Change in fair value of derivatives: Call options $ 234,883 $ (501,765) $ 278,327 $ (980,213) Warrants (115) (750) 1,206 179 Interest rate swaps — 2,656 — 2,656 $ 234,768 $ (499,859) $ 279,533 $ (977,378) Change in fair value of embedded derivatives: Fixed index annuities - embedded derivatives $ 233,514 $ (686,562) $ 573,574 $ (1,877,767) Reinsurance related embedded derivative (19,750) (199,422) 44,630 (401,866) $ 213,764 $ (885,984) $ 618,204 $ (2,279,633) |
Schedule of Call Options and Interest Rate Swaps by Counterparty | The notional amount and fair value of our call options and interest rate swaps by counterparty and each counterparty's current credit rating are as follows: June 30, 2023 December 31, 2022 Counterparty Credit Rating Credit Rating (Moody's) Notional Fair Value Notional Fair Value (Dollars in thousands) Bank of America A+ Aa1 $ 4,124,812 $ 81,590 $ 3,574,125 $ 26,080 Barclays A+ A1 2,567,616 82,180 3,686,896 39,657 Canadian Imperial Bank of Commerce A+ Aa2 1,602,801 58,359 2,707,734 34,218 Citibank, N.A. A+ Aa3 4,171,072 102,691 3,748,162 29,873 Credit Suisse A A3 1,955,159 49,252 2,086,470 20,691 J.P. Morgan A+ Aa2 5,404,600 120,638 6,501,103 69,006 Mizuho A A1 4,030,827 145,197 — — Morgan Stanley A+ Aa3 1,967,830 45,622 2,957,389 38,470 Royal Bank of Canada AA- A1 4,479,656 146,476 4,378,132 58,026 Societe Generale A A1 2,806,536 69,333 2,099,081 17,157 Truist A A2 2,004,578 65,032 1,960,787 32,885 UBS AG A+ Aa3 300,708 8,676 — — Wells Fargo A+ Aa2 4,283,753 154,506 5,436,824 61,840 Exchange traded 83,121 2,045 199,200 2,655 $ 39,783,069 $ 1,131,597 $ 39,335,903 $ 430,558 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs and Deferred Sales Inducements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Deferred Charges, Insurers [Abstract] | |
Deferred Policy Acquisition Costs | Deferred Policy Fixed Index Annuities and (Dollars in thousands) Pre-adoption 1/1/2021 balance $ 2,225,199 Adjustments for the removal of shadow adjustments 1,183,306 Post adoption 1/1/2021 balance $ 3,408,505 The following tables present the balances and changes in deferred policy acquisition costs: Six Months Ended June 30, 2023 Fixed Index Annuities Fixed Rate Annuities Single Premium Immediate Annuities Total (Dollars in thousands) Balance, beginning of period $ 2,649,322 $ 120,105 $ 4,216 $ 2,773,643 Capitalizations 189,581 16,079 23 205,683 Amortization expense (121,769) (14,600) (342) (136,711) Balance, end of period $ 2,717,134 $ 121,584 $ 3,897 $ 2,842,615 Year Ended December 31, 2022 Fixed Index Annuities Fixed Rate Annuities Single Premium Immediate Annuities Total (Dollars in thousands) Balance, beginning of period $ 2,906,684 $ 151,322 $ 4,198 $ 3,062,204 Write-off related to in-force ceded reinsurance (196,417) (7,209) — (203,626) Capitalizations 193,989 4,424 663 199,076 Amortization expense (254,934) (28,432) (645) (284,011) Balance, end of period $ 2,649,322 $ 120,105 $ 4,216 $ 2,773,643 |
Deferred Sale Inducements | Deferred Sales Fixed Index Annuities and (Dollars in thousands) Pre-adoption 1/1/2021 balance $ 1,448,375 Adjustments for the removal of shadow adjustments 768,310 Post adoption 1/1/2021 balance $ 2,216,685 The following tables present the balances and changes in deferred sales inducements: Six Months Ended June 30, 2023 Fixed Index Annuities Fixed Rate Annuities Total (Dollars in thousands) Balance, beginning of period $ 2,017,960 $ 27,723 $ 2,045,683 Capitalizations 182,123 — 182,123 Amortization expense (91,964) (1,588) (93,552) Balance, end of period $ 2,108,119 $ 26,135 $ 2,134,254 Year Ended December 31, 2022 Fixed Index Annuities Fixed Rate Annuities Total (Dollars in thousands) Balance, beginning of period $ 2,088,591 $ 31,370 $ 2,119,961 Capitalizations 107,684 8 107,692 Amortization expense (178,315) (3,655) (181,970) Balance, end of period $ 2,017,960 $ 27,723 $ 2,045,683 |
Policyholder Liabilities (Table
Policyholder Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Insurance [Abstract] | |
Liability for Future Policy Benefit, Activity | Liability for Future Policy (Dollars in thousands) Pre-adoption 1/1/2021 balance $ 337,467 Adjustment to opening retained earnings for expected future policy benefits 2,566 Adjustment for the effect of remeasurement of liability at current single A rate 68,717 Post adoption 1/1/2021 balance $ 408,750 Present Value of Expected Future Six Months Ended Year Ended (Dollars in thousands) Balance, beginning of period $ 318,677 $ 402,305 Beginning balance at original discount rate 342,453 352,708 Effect of changes in cash flow assumptions — 1,277 Effect of actual variances from expected experience (1,341) (1,941) Adjusted beginning of year balance 341,112 352,044 Issuances 4,899 16,072 Interest accrual 7,055 14,664 Benefit payments — — Net premiums collected — — Derecognition (lapses) (19,501) (40,327) Ending balance at original discount rate 333,565 342,453 Effect of changes in discount rate assumptions (24,331) (23,776) Balance, end of period $ 309,234 $ 318,677 The reconciliation of the net liability for future policy benefits to the liability for future policy benefits included in policy benefit reserves in the consolidated balance sheets is as follows: June 30, 2023 December 31, 2022 (Dollars in thousands) Liability for future policy benefits $ 309,234 $ 318,677 Deferred profit liability 19,926 19,223 329,160 337,900 Less: Reinsurance recoverable (1,639) (1,259) Net liability for future policy benefits, after reinsurance recoverable $ 327,521 $ 336,641 The weighted-average liability duration of the liability for future policy benefits is as follows: June 30, 2023 December 31, 2022 SPIA With Life Contingency: Weighted-average liability duration of the liability for future policy benefits (years) 7.13 6.78 The amount of revenue and interest associated with the liability for future policy benefits recognized in the statement of operations for the six months ended June 30, 2023 and year ended December 31, 2022 is as follows: Six Months Ended Year Ended Gross Premiums Interest Gross Premiums or Assessments Interest (Dollars in thousands) SPIA With Life Contingency $ 5,233 $ 7,023 $ 16,994 $ 14,613 Total $ 5,233 $ 7,023 $ 16,994 $ 14,613 The weighted-average interest rate is as follows: June 30, 2023 December 31, 2022 Interest accretion rate 4.26 % 4.25 % Current discount rate 5.46 % 5.37 % |
Schedule of Expected Benefit Payments | The following table presents the amount of undiscounted expected future benefit payments and expected gross premiums: June 30, 2023 December 31, 2022 (Dollars in thousands) SPIA With Life Contingency: Expected future benefit payments $ 453,722 $ 467,627 Expected future gross premiums — — |
Market Risk Benefit, Activity | Market Risk (Dollars in thousands) Pre-adoption 1/1/2021 carrying amount for features now classified as MRBs $ 2,547,231 Adjustment for the removal of shadow adjustments (584,636) Adjustment for the cumulative effect of the changes in the instrument-specific credit risk between the original contract issuance date and the transition date 229,108 Adjustment for the remaining difference between previous carrying amount and fair value measurement for the MRB, exclusive of the instrument specific credit risk 33,781 Post adoption 1/1/2021 MRB balance $ 2,225,484 Ceded Market Risk (Dollars in thousands) Pre-adoption 1/1/2021 carrying amount for features now classified as MRBs $ 62,108 Adjustment for the difference between previous carrying amount and fair value measurement for the MRB, exclusive of the instrument specific credit risk 27,230 Post adoption 1/1/2021 ceded MRB balance $ 89,338 (a) The ceded market risk benefit is recognized in coinsurance deposits on the Consolidated Balance Sheets. The balances of and changes in the liability for market risk benefits (MRB) for the six months ended June 30, 2023 and year ended December 31, 2022 is as follows: Six Months Ended Year Ended Fixed Rate Fixed Index Fixed Rate Fixed Index (Dollars in thousands) MRB Liability Balance, beginning of period $ 37,863 $ 2,187,758 $ 78,411 $ 2,557,378 Balance, beginning of period, before effect of changes in the instrument-specific credit risk 44,355 2,453,169 77,731 2,310,437 Issuances — 161,757 376 59,452 Interest accrual 1,313 78,354 1,349 72,551 Attributed fees collected 584 60,972 1,270 125,168 Benefits payments — — — — Effect of changes in interest rates 372 8,175 (19,421) (952,265) Effect of changes in equity markets — (66,590) — 186,618 Effect of changes in equity index volatility — (63,759) — 241,563 Actual policyholder behavior different from expected behavior — — — — Effect of changes in future expected policyholder behavior 1,127 1,972 602 46,567 Effect of changes in other future expected assumptions — — (17,552) 363,078 Balance, end of period, before effect of changes in the instrument-specific credit 47,751 2,634,050 44,355 2,453,169 Effect of changes in the instrument-specific credit risk (6,272) (236,727) (6,492) (265,411) Balance, end of period 41,479 2,397,323 37,863 2,187,758 Reinsured MRB, end of period 11,326 702,398 10,656 593,959 Balance, end of period, net of reinsurance $ 30,153 $ 1,694,925 $ 27,207 $ 1,593,799 Net amount at risk (a) $ 266,173 $ 11,575,916 $ 258,826 $ 10,987,198 Weighted average attained age of contract holders (years) 70 71 69 71 (a) Net amount at risk is defined as the current guarantee amount in excess of the current account balance. The following is a reconciliation of market risk benefits by amounts in an asset position and in a liability position to market risk benefit amounts included in other assets and market risk benefit reserves, respectively, in the Consolidated Balance Sheets: June 30, 2023 Asset Liability Net Liability (Dollars in thousands) Fixed Index Annuities $ 231,005 $ 2,628,328 $ 2,397,323 Fixed Rate Annuities 3,465 44,944 41,479 Total $ 234,470 $ 2,673,272 $ 2,438,802 December 31, 2022 Asset Liability Net Liability (Dollars in thousands) Fixed Index Annuities $ 226,294 $ 2,414,052 $ 2,187,758 Fixed Rate Annuities 3,577 41,440 37,863 Total $ 229,871 $ 2,455,492 $ 2,225,621 The following table presents the balances and changes in reinsured market risk benefits associated with fixed index annuities for the six months ended June 30, 2023 and year ended December 31, 2022: Six Months Ended Year Ended Fixed Rate Fixed Index Fixed Rate Fixed Index (Dollars in thousands) Ceded MRB Balance, beginning of period $ 10,656 $ 593,959 $ — $ 156,931 Write-off related to in-force ceded reinsurance — — 10,091 334,835 Issuances — 114,216 — 36,036 Interest accrual 286 16,447 104 7,598 Attributed fees collected 19 13,451 28 23,745 Benefits payments — — — — Effect of changes in interest rates 154 4,455 135 (171,948) Effect of changes in equity markets — (29,194) 118 43,799 Effect of changes in equity index volatility — (12,929) — 34,278 Actual policyholder behavior different from expected behavior — — — — Effect of changes in future expected policyholder behavior 211 1,993 180 12,598 Effect of changes in other future expected assumptions — — — 116,087 Balance, end of period $ 11,326 $ 702,398 $ 10,656 $ 593,959 Net amount at risk (a) $ 74,282 $ 2,761,134 $ 72,350 $ 2,402,964 Weighted average attained age of contract holders (years) 70 70 70 71 (a) Net amount at risk is defined as the current guarantee amount in excess of the current account balance. The following is a reconciliation of reinsurance market risk benefits by amounts in an asset position and in liability position to market risk benefit amounts included in coinsurance deposits and other liabilities, respectively, in the consolidated balance sheets: June 30, 2023 Asset Liability Net Asset (Dollars in thousands) Fixed Index Annuities $ 744,734 $ 42,336 $ 702,398 Fixed Rate Annuities 11,735 409 11,326 Total $ 756,469 $ 42,745 $ 713,724 December 31, 2022 Asset Liability Net Asset (Dollars in thousands) Fixed Index Annuities $ 629,611 $ 35,652 $ 593,959 Fixed Rate Annuities 11,070 414 10,656 Total $ 640,681 $ 36,066 $ 604,615 |
Schedule Of Fair Value Measurements Of Market Risk Benefits | The following tables provides a summary of the significant inputs and assumptions used in the fair value measurements of market risk benefits: June 30, 2023 Fair Value Valuation Significant Inputs Range Weighted (in thousands) Market risk benefits $ 2,438,802 Discounted cash flow Utilization (a) 0.04% - 78.75% 4.12% Ceded market risk benefits 713,724 Option budget (b) 1.65% - 2.50% 2.32% Risk-free interest rate (c) 2.52% - 5.38% 3.27% Nonperformance risk (d) 0.53% - 3.10% 2.54% December 31, 2022 Fair Value Valuation Significant Inputs Range Weighted (in thousands) Market risk benefits $ 2,225,621 Discounted cash flow Utilization (a) 0.04% - 78.75% 4.24% Ceded market risk benefits 604,615 Option budget (b) 1.65% - 2.50% 2.31% Risk-free interest rate (c) 2.51% - 4.90% 3.31% Nonperformance risk (d) 0.06% - 3.27% 2.59% (a) The utilization assumption represents the percentage of policyholders who will elect to receive lifetime income benefit payments in a given year. A decrease (increase) in the utilization assumption used in the fair value of market risk benefits could lead to favorable (unfavorable) changes in the market risk benefits. (b) The option budget assumption represents the expected cost of annual call options we will purchases in the future. An increase (decrease) in the option budget assumption used in the fair value of market risk benefits could lead to favorable (unfavorable) changes in the market risk benefits. (c) The risk-free interest rate assumption impacts the discount rate used in the discounted future cash flow valuation. An increase (decrease) in the risk-free interest rate assumption used in the fair value of market risk benefits could lead to favorable (unfavorable) changes in the market risk benefits. |
Policyholder Account Balance | The following table presents the balances and changes in policyholders’ account balances: Six Months Ended Year Ended Fixed Rate Fixed Index Fixed Rate Annuities Fixed Index Annuities (Dollars in thousands) Balance, beginning of period $ 6,589,577 $ 53,826,234 $ 6,860,060 $ 55,003,305 Issuances 534,191 2,763,039 159,570 3,001,738 Premiums received 618 74,613 4,811 170,493 Policy charges (3,655) (163,063) (6,587) (272,604) Surrenders and withdrawals (443,810) (2,392,211) (574,590) (3,945,504) Benefit payments (6,542) (404,942) (11,328) (727,847) Interest credited 80,653 339,864 151,762 599,259 Other (4,667) (3,296) 5,879 (2,606) Balance, end of period $ 6,746,365 $ 54,040,238 $ 6,589,577 $ 53,826,234 Weighted-average crediting rate 2.43 % 1.26 % 2.28 % 1.11 % Net amount at risk (a) $ 266,173 $ 11,575,916 $ 258,826 $ 10,987,198 Cash surrender value $ 6,354,283 $ 49,813,318 $ 6,208,597 $ 49,551,657 (a) Net amount at risk is defined as the current guarantee amount in excess of the current account balance. The following table presents the reconciliation of policyholders’ account balances to policy benefit reserves in the consolidated balance sheets: June 30, 2023 December 31, 2022 (Dollars in thousands) Fixed index annuities policyholder account balances $ 54,040,238 $ 53,826,234 Fixed rate annuities policyholder account balances 6,746,365 6,589,577 Embedded derivative adjustment (b) (1,284,548) (1,996,640) Liability for future policy benefits 309,234 318,677 Deferred profit liability 19,926 19,223 Other 25,462 24,765 Total $ 59,856,677 $ 58,781,836 (b) The embedded derivative adjustment reconciles the account balance to the gross GAAP liability and represents the combination of the host contract and the fair value of the embedded derivatives. |
Policyholder Account Balance, Guaranteed Minimum Crediting Rate | The following table presents the balance of account values by range of guaranteed minimum crediting rates and the related range of the difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums: June 30, 2023 Range of At guaranteed minimum 1 to 50 51 to 150 Greater than 150 basis points above Total (Dollars in thousands) Fixed Index Annuities 0.00% - 0.50% $ — $ 695,154 $ 464,407 $ 654,267 $ 1,813,828 0.50% - 1.00% 2,470,011 1,093,223 2,214,702 106,894 5,884,830 1.00% - 1.50% 48,145 9,350 — — 57,495 1.50% - 2.00% 50 — — — 50 2.00% - 2.50% 129,460 85,536 8 — 215,004 2.50% - 3.00% 865,320 15 202 — 865,537 Greater than 3.00% — — — — — Allocated to index strategies 45,203,494 Total $ 3,512,986 $ 1,883,278 $ 2,679,319 $ 761,161 $ 54,040,238 Fixed Rate Annuities 0.00% - 0.50% $ 148 $ — $ — $ — $ 148 0.50% - 1.00% 54,489 185,377 3,960,356 992,706 5,192,928 1.00% - 1.50% 458,488 234 — — 458,722 1.50% - 2.00% 363,889 33,907 233,549 213 631,558 2.00% - 2.50% 19,249 23 — — 19,272 2.50% - 3.00% 385,318 7,201 — — 392,519 Greater than 3.00% 51,218 — — — 51,218 Total $ 1,332,799 $ 226,742 $ 4,193,905 $ 992,919 $ 6,746,365 December 31, 2022 Range of At guaranteed minimum 1 to 50 51 to 150 Greater than 150 basis points above Total (Dollars in thousands) Fixed Index Annuities 0.00% - 0.50% $ — $ 462,356 $ 407,426 $ 314,929 $ 1,184,711 0.50% - 1.00% 2,421,795 1,098,332 2,258,992 77,901 5,857,020 1.00% - 1.50% 51,586 9,391 — — 60,977 1.50% - 2.00% 57 — — — 57 2.00% - 2.50% 133,059 100,205 8 — 233,272 2.50% - 3.00% 939,684 — — — 939,684 Greater than 3.00% — — — — — Allocated to index strategies 45,550,513 Total $ 3,546,181 $ 1,670,284 $ 2,666,426 $ 392,830 $ 53,826,234 Fixed Rate Annuities 0.00% - 0.50% $ 61 $ — $ — $ — $ 61 0.50% - 1.00% 55,458 203,523 4,000,203 701,836 4,961,020 1.00% - 1.50% 454,728 231 — — 454,959 1.50% - 2.00% 281,694 96,767 277,053 189 655,703 2.00% - 2.50% 21,887 22 — — 21,909 2.50% - 3.00% 434,042 7,417 — — 441,459 Greater than 3.00% 54,466 — — — 54,466 Total $ 1,302,336 $ 307,960 $ 4,277,256 $ 702,025 $ 6,589,577 |
Notes and Loan Payable (Tables)
Notes and Loan Payable (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Notes and Loan Payable | Notes and loan payable includes the following: June 30, 2023 December 31, 2022 (Dollars in thousands) Senior notes due 2027 Principal $ 500,000 $ 500,000 Unamortized debt issue costs (2,661) (2,960) Unamortized discount (160) (178) Term loan due 2027 Principal 300,000 300,000 Principal paydown (7,500) (3,750) Unamortized debt issue costs (925) (1,039) $ 788,754 $ 792,073 |
Earnings Per Common Share and_2
Earnings Per Common Share and Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 Six Months Ended 2023 2022 2023 2022 (Dollars in thousands, except per share data) Numerator: Net income available to common stockholders - numerator for earnings per common share $ 344,444 $ 752,374 $ 177,531 $ 1,420,920 Denominator: Weighted average common shares outstanding 77,766,851 92,543,850 80,576,301 94,693,048 Effect of dilutive securities: Stock options and deferred compensation agreements 499,921 487,883 548,520 550,073 Restricted stock and restricted stock units 661,186 343,005 699,235 408,964 Denominator for earnings per common share - assuming dilution 78,927,958 93,374,738 81,824,056 95,652,085 Earnings per common share $ 4.43 $ 8.13 $ 2.20 $ 15.01 Earnings per common share - assuming dilution $ 4.36 $ 8.06 $ 2.17 $ 14.86 |
Significant Accounting Polici_4
Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | [1] | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Adjustment to retained earnings | $ 4,863,124 | $ 4,685,593 | ||
Accumulated other comprehensive income | $ (3,425,248) | $ (3,746,230) | ||
Cumulative Effect, Period of Adoption, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Adjustment to retained earnings | $ 7,200 | |||
Accumulated other comprehensive income | $ 1,800,000 | |||
[1] Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. |
Significant Accounting Polici_5
Significant Accounting Policies (Schedule of Long-Duration Contracts) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Liability for Future Policy Benefits for Payout Annuity With Life Contingency | |||||
Beginning balance, liability for future policy benefit | $ 318,677 | $ 402,305 | |||
Liability for future policy benefit, adjustment | 309,234 | 318,677 | $ 402,305 | ||
Ending balance, liability for future policy benefit | 309,234 | 318,677 | 402,305 | ||
Beginning balance, market risk benefit | 2,225,621 | ||||
Market risk benefit, after increase (decrease) from instrument-specific credit risk | 2,438,802 | 2,225,621 | |||
Ending balance, market risk benefit | 2,438,802 | 2,225,621 | |||
Deferred Policy Acquisition Costs | |||||
Beginning balance, deferred policy acquisition costs | 2,773,643 | [1] | 3,062,204 | ||
Deferred policy acquisition costs | 2,842,615 | 2,773,643 | [1] | 3,062,204 | |
Ending balance, deferred policy acquisition costs | 2,842,615 | 2,773,643 | [1] | 3,062,204 | |
Deferred Sales Inducements | |||||
Beginning balance, deferred sales inducement costs | 2,045,683 | [1] | 2,119,961 | ||
Deferred sales inducements | 2,134,254 | 2,045,683 | [1] | 2,119,961 | |
Ending balance, deferred sales inducement costs | $ 2,134,254 | $ 2,045,683 | [1] | 2,119,961 | |
Liability for Future Policy Benefits for Payout Annuity With Life Contingency | |||||
Liability for Future Policy Benefits for Payout Annuity With Life Contingency | |||||
Beginning balance, liability for future policy benefit | 408,750 | ||||
Liability for future policy benefit, adjustment | |||||
Market Risk Benefit Liability | |||||
Liability for Future Policy Benefits for Payout Annuity With Life Contingency | |||||
Beginning balance, market risk benefit | 2,225,484 | ||||
Market risk benefit, after increase (decrease) from instrument-specific credit risk | |||||
Ceded Market Risk Benefit (a) | |||||
Liability for Future Policy Benefits for Payout Annuity With Life Contingency | |||||
Beginning balance, market risk benefit | 89,338 | ||||
Market risk benefit, after increase (decrease) from instrument-specific credit risk | |||||
Fixed Index Annuities and Fixed Rate Annuities | |||||
Deferred Policy Acquisition Costs | |||||
Beginning balance, deferred policy acquisition costs | 3,408,505 | ||||
Deferred policy acquisition costs | |||||
Deferred Sales Inducements | |||||
Beginning balance, deferred sales inducement costs | 2,216,685 | ||||
Deferred sales inducements | |||||
As Reported | Liability for Future Policy Benefits for Payout Annuity With Life Contingency | |||||
Liability for Future Policy Benefits for Payout Annuity With Life Contingency | |||||
Beginning balance, liability for future policy benefit | 337,467 | ||||
Liability for future policy benefit, adjustment | |||||
As Reported | Market Risk Benefit Liability | |||||
Liability for Future Policy Benefits for Payout Annuity With Life Contingency | |||||
Beginning balance, market risk benefit | 2,547,231 | ||||
Market risk benefit, after increase (decrease) from instrument-specific credit risk | |||||
As Reported | Ceded Market Risk Benefit (a) | |||||
Liability for Future Policy Benefits for Payout Annuity With Life Contingency | |||||
Beginning balance, market risk benefit | 62,108 | ||||
Market risk benefit, after increase (decrease) from instrument-specific credit risk | |||||
As Reported | Fixed Index Annuities and Fixed Rate Annuities | |||||
Deferred Policy Acquisition Costs | |||||
Beginning balance, deferred policy acquisition costs | 2,225,199 | ||||
Deferred policy acquisition costs | |||||
Deferred Sales Inducements | |||||
Beginning balance, deferred sales inducement costs | 1,448,375 | ||||
Deferred sales inducements | |||||
Adjustment to opening retained earnings for expected future policy benefits | Liability for Future Policy Benefits for Payout Annuity With Life Contingency | |||||
Liability for Future Policy Benefits for Payout Annuity With Life Contingency | |||||
Beginning balance, liability for future policy benefit | 2,566 | ||||
Liability for future policy benefit, adjustment | |||||
Adjustment for the effect of remeasurement of liability at current single A rate | Liability for Future Policy Benefits for Payout Annuity With Life Contingency | |||||
Liability for Future Policy Benefits for Payout Annuity With Life Contingency | |||||
Beginning balance, liability for future policy benefit | 68,717 | ||||
Liability for future policy benefit, adjustment | |||||
Adjustment for the removal of shadow adjustments | Market Risk Benefit Liability | |||||
Liability for Future Policy Benefits for Payout Annuity With Life Contingency | |||||
Beginning balance, market risk benefit | (584,636) | ||||
Market risk benefit, after increase (decrease) from instrument-specific credit risk | |||||
Adjustments for the removal of shadow adjustments | Fixed Index Annuities and Fixed Rate Annuities | |||||
Deferred Policy Acquisition Costs | |||||
Beginning balance, deferred policy acquisition costs | 1,183,306 | ||||
Deferred policy acquisition costs | |||||
Deferred Sales Inducements | |||||
Beginning balance, deferred sales inducement costs | 768,310 | ||||
Deferred sales inducements | |||||
Adjustment for the cumulative effect of the changes in the instrument-specific credit risk between the original contract issuance date and the transition date | Market Risk Benefit Liability | |||||
Liability for Future Policy Benefits for Payout Annuity With Life Contingency | |||||
Beginning balance, market risk benefit | 229,108 | ||||
Market risk benefit, after increase (decrease) from instrument-specific credit risk | |||||
Adjustment for the remaining difference between previous carrying amount and fair value measurement for the MRB, exclusive of the instrument specific credit risk | Market Risk Benefit Liability | |||||
Liability for Future Policy Benefits for Payout Annuity With Life Contingency | |||||
Beginning balance, market risk benefit | 33,781 | ||||
Market risk benefit, after increase (decrease) from instrument-specific credit risk | |||||
Adjustment for the remaining difference between previous carrying amount and fair value measurement for the MRB, exclusive of the instrument specific credit risk | Ceded Market Risk Benefit (a) | |||||
Liability for Future Policy Benefits for Payout Annuity With Life Contingency | |||||
Beginning balance, market risk benefit | $ 27,230 | ||||
Market risk benefit, after increase (decrease) from instrument-specific credit risk | |||||
[1] Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments (Fair Values and Carrying Amounts of Financial Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Assets | |||
Derivative instruments | $ 1,131,597 | $ 431,727 | [1] |
Other investments | 1,412,939 | 1,817,085 | [1] |
Coinsurance deposits | 14,247,284 | 13,254,956 | [1] |
Market risk benefits | 234,470 | 229,871 | [1] |
Liabilities | |||
Policy benefit reserves | 309,234 | 318,677 | |
Market risk benefits | 2,673,272 | 2,455,492 | [1] |
Other policy funds - FHLB | 0 | ||
Carrying Amount | |||
Assets | |||
Fixed maturity securities, available for sale, fair value | 38,680,457 | 39,804,617 | |
Mortgage loans on real estate | 7,373,609 | 6,949,027 | |
Real estate investments | 1,158,772 | 1,056,063 | |
Limited partnerships and limited liability companies | 1,069,965 | 684,835 | |
Derivative instruments | 1,131,597 | 431,727 | |
Other investments | 1,412,939 | 1,817,085 | |
Cash and cash equivalents | 5,000,657 | 1,919,669 | |
Coinsurance deposits | 14,247,284 | 13,254,956 | |
Market risk benefits | 234,470 | 229,871 | |
Liabilities | |||
Policy benefit reserves | 59,503,416 | 58,419,911 | |
Market risk benefits | 2,673,272 | 2,455,492 | |
Single premium immediate annuity (SPIA) benefit reserves | 201,539 | 212,119 | |
Other policy funds - FHLB | 0 | 300,000 | |
Notes and loan payable | 788,754 | 792,073 | |
Subordinated debentures | 78,927 | 78,753 | |
Fair Value | |||
Assets | |||
Fixed maturity securities, available for sale, fair value | 38,680,457 | 39,804,617 | |
Mortgage loans on real estate | 6,900,291 | 6,502,463 | |
Real estate investments | 1,158,772 | 1,056,063 | |
Limited partnerships and limited liability companies | 1,069,965 | 684,835 | |
Derivative instruments | 1,131,597 | 431,727 | |
Other investments | 1,412,939 | 1,817,085 | |
Cash and cash equivalents | 5,000,657 | 1,919,669 | |
Coinsurance deposits | 13,362,371 | 12,640,797 | |
Market risk benefits | 234,470 | 229,871 | |
Liabilities | |||
Policy benefit reserves | 55,933,419 | 55,572,896 | |
Market risk benefits | 2,673,272 | 2,455,492 | |
Single premium immediate annuity (SPIA) benefit reserves | 210,273 | 221,130 | |
Other policy funds - FHLB | 0 | 300,000 | |
Notes and loan payable | 774,860 | 774,220 | |
Subordinated debentures | $ 88,388 | $ 87,293 | |
[1] Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. |
Fair Values of Financial Inst_4
Fair Values of Financial Instruments (Assets and Liabilities Measured on a Recurring Basis by Fair Value Hierarchy) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Assets | |||
Derivative instruments | $ 1,131,597 | $ 431,727 | [1] |
Market risk benefits | 234,470 | 229,871 | [1] |
Liabilities | |||
Market risk benefits | 2,673,272 | 2,455,492 | [1] |
Fair Value, Measurements, Recurring | |||
Assets | |||
Real estate investments | 1,158,772 | 940,559 | |
Limited partnerships and limited liability companies | 1,069,965 | 684,835 | |
Derivative instruments | 1,131,597 | 431,727 | |
Cash and cash equivalents | 5,000,657 | 1,919,669 | |
Market risk benefits | 234,470 | 229,871 | |
Assets | 48,208,160 | 45,024,575 | |
Liabilities | |||
Market risk benefits | 2,673,272 | 2,455,492 | |
Liabilities | 7,290,735 | 6,834,473 | |
Fair Value, Measurements, Recurring | U.S. Government and agencies | |||
Assets | |||
Investments | 175,462 | 169,071 | |
Fair Value, Measurements, Recurring | States, municipalities and territories | |||
Assets | |||
Investments | 3,261,359 | 3,822,982 | |
Fair Value, Measurements, Recurring | Foreign corporate securities and foreign governments | |||
Assets | |||
Investments | 573,917 | 676,852 | |
Fair Value, Measurements, Recurring | Corporate securities | |||
Assets | |||
Investments | 22,069,209 | 24,161,921 | |
Fair Value, Measurements, Recurring | Residential mortgage backed securities | |||
Assets | |||
Investments | 1,473,297 | 1,377,611 | |
Fair Value, Measurements, Recurring | Commercial mortgage backed securities | |||
Assets | |||
Investments | 3,553,618 | 3,687,478 | |
Fair Value, Measurements, Recurring | Other asset backed securities | |||
Assets | |||
Investments | 7,573,595 | 5,908,702 | |
Fair Value, Measurements, Recurring | Other investments | |||
Assets | |||
Investments | 932,242 | 1,013,297 | |
Fair Value, Measurements, Recurring | Funds withheld liability - embedded derivative | |||
Liabilities | |||
Derivative liabilities | (397,234) | (441,864) | |
Fair Value, Measurements, Recurring | Fixed index annuities - embedded derivatives | |||
Liabilities | |||
Derivative liabilities | 5,014,697 | 4,820,845 | |
Fair Value, Measurements, Recurring | NAV | |||
Assets | |||
Real estate investments | 0 | 0 | |
Limited partnerships and limited liability companies | 918,925 | 620,626 | |
Derivative instruments | 0 | 0 | |
Cash and cash equivalents | 0 | 0 | |
Market risk benefits | 0 | 0 | |
Assets | 918,925 | 620,626 | |
Liabilities | |||
Market risk benefits | 0 | 0 | |
Liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | NAV | U.S. Government and agencies | |||
Assets | |||
Investments | 0 | 0 | |
Fair Value, Measurements, Recurring | NAV | States, municipalities and territories | |||
Assets | |||
Investments | 0 | 0 | |
Fair Value, Measurements, Recurring | NAV | Foreign corporate securities and foreign governments | |||
Assets | |||
Investments | 0 | 0 | |
Fair Value, Measurements, Recurring | NAV | Corporate securities | |||
Assets | |||
Investments | 0 | 0 | |
Fair Value, Measurements, Recurring | NAV | Residential mortgage backed securities | |||
Assets | |||
Investments | 0 | 0 | |
Fair Value, Measurements, Recurring | NAV | Commercial mortgage backed securities | |||
Assets | |||
Investments | 0 | 0 | |
Fair Value, Measurements, Recurring | NAV | Other asset backed securities | |||
Assets | |||
Investments | 0 | 0 | |
Fair Value, Measurements, Recurring | NAV | Other investments | |||
Assets | |||
Investments | 0 | 0 | |
Fair Value, Measurements, Recurring | NAV | Funds withheld liability - embedded derivative | |||
Liabilities | |||
Derivative liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | NAV | Fixed index annuities - embedded derivatives | |||
Liabilities | |||
Derivative liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | |||
Assets | |||
Real estate investments | 0 | 0 | |
Limited partnerships and limited liability companies | 0 | 0 | |
Derivative instruments | 0 | 0 | |
Cash and cash equivalents | 5,000,657 | 1,919,669 | |
Market risk benefits | 0 | 0 | |
Assets | 5,406,397 | 2,344,133 | |
Liabilities | |||
Market risk benefits | 0 | 0 | |
Liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | U.S. Government and agencies | |||
Assets | |||
Investments | 29,718 | 26,184 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | States, municipalities and territories | |||
Assets | |||
Investments | 0 | 0 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | Foreign corporate securities and foreign governments | |||
Assets | |||
Investments | 0 | 0 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | Corporate securities | |||
Assets | |||
Investments | 0 | 0 | |
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) | Other investments | |||
Assets | |||
Investments | 376,022 | 398,280 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | Funds withheld liability - 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 | |
Limited partnerships and limited liability companies | 0 | 0 | |
Derivative instruments | 1,131,597 | 431,727 | |
Cash and cash equivalents | 0 | 0 | |
Market risk benefits | 0 | 0 | |
Assets | 39,191,948 | 39,979,911 | |
Liabilities | |||
Market risk benefits | 0 | 0 | |
Liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Government and agencies | |||
Assets | |||
Investments | 145,744 | 142,887 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | States, municipalities and territories | |||
Assets | |||
Investments | 3,132,056 | 3,822,982 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign corporate securities and foreign governments | |||
Assets | |||
Investments | 573,917 | 676,852 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate securities | |||
Assets | |||
Investments | 21,818,072 | 23,759,573 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Residential mortgage backed securities | |||
Assets | |||
Investments | 1,473,297 | 1,377,611 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Commercial mortgage backed securities | |||
Assets | |||
Investments | 3,553,618 | 3,687,478 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Other asset backed securities | |||
Assets | |||
Investments | 6,830,671 | 5,465,784 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Other investments | |||
Assets | |||
Investments | 532,976 | 615,017 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Funds withheld liability - embedded derivative | |||
Liabilities | |||
Derivative liabilities | 0 | 0 | |
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 | 1,158,772 | 940,559 | |
Limited partnerships and limited liability companies | 151,040 | 64,209 | |
Derivative instruments | 0 | 0 | |
Cash and cash equivalents | 0 | 0 | |
Market risk benefits | 234,470 | 229,871 | |
Assets | 2,690,890 | 2,079,905 | |
Liabilities | |||
Market risk benefits | 2,673,272 | 2,455,492 | |
Liabilities | 7,290,735 | 6,834,473 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. Government and agencies | |||
Assets | |||
Investments | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | States, municipalities and territories | |||
Assets | |||
Investments | 129,303 | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Foreign corporate securities and foreign governments | |||
Assets | |||
Investments | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Corporate securities | |||
Assets | |||
Investments | 251,137 | 402,348 | |
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 | 742,924 | 442,918 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Other investments | |||
Assets | |||
Investments | 23,244 | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Funds withheld liability - embedded derivative | |||
Liabilities | |||
Derivative liabilities | (397,234) | (441,864) | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Fixed index annuities - embedded derivatives | |||
Liabilities | |||
Derivative liabilities | $ 5,014,697 | $ 4,820,845 | |
[1] Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. |
Fair Values of Financial Inst_5
Fair Values of Financial Instruments (Narrative) (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 USD ($) entity limitedPartnership | Dec. 31, 2022 USD ($) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
FHLB common stock | $ 10,000 | $ 22,000 | |
Short-term loans, fair value | 0 | 316,400 | |
Collateral loans, fair value | 64,600 | 64,600 | |
COLI, fair value | $ 401,800 | $ 397,700 | |
Expected cost of annual call options | 2.40% | 2.40% | |
Coinsurance ceded, fixed index annuities embedded derivatives | $ 14,247,284 | $ 13,254,956 | [1] |
Fixed index annuities - embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Coinsurance ceded, fixed index annuities embedded derivatives | $ 1,195,900 | 1,173,400 | |
Limited partnership funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Variable interest entities, number of consolidated variable interest entities | limitedPartnership | 2 | ||
Unfunded commitments | $ 605,800 | 926,300 | |
Fair Value, Measurements, Recurring | Corporate securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments | 22,069,209 | 24,161,921 | |
Fair Value, Measurements, Recurring | Other asset backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments | 7,573,595 | 5,908,702 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Corporate securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments | 251,137 | 402,348 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Other asset backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments | $ 742,924 | 442,918 | |
Significant Unobservable Inputs (Level 3) | Debt Securities | Fair Value, Measurements, Recurring | Discounted cash flow | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unobservable liquidity premium, basis points | 0.0020 | ||
Significant Unobservable Inputs (Level 3) | Debt Securities | Fair Value, Measurements, Recurring | Discounted cash flow | Corporate securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments | $ 85,700 | 84,700 | |
Significant Unobservable Inputs (Level 3) | Debt Securities | Fair Value, Measurements, Recurring | Discounted cash flow | Other asset backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments | $ 595,000 | 296,800 | |
Significant Unobservable Inputs (Level 3) | Real Estate Investments | Fair Value, Measurements, Recurring | Discounted cash flow | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash flow modeling period | 10 years | ||
Significant Unobservable Inputs (Level 3) | Limited partnerships and limited liability companies | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Variable interest entity, fair value | $ 100,000 | ||
Significant Unobservable Inputs (Level 3) | Limited partnerships and limited liability companies | Fair Value, Measurements, Recurring | Discounted cash flow | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Variable interest entities, number of consolidated variable interest entities | entity | 2 | ||
Variable interest entity, fair value | $ 51,000 | 64,200 | |
Significant Unobservable Inputs (Level 3) | Other Investments | Fair Value, Measurements, Recurring | Discounted cash flow | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other investments, fair value | $ 23,200 | $ 0 | |
Measurement Input, Residual Capitalization Rate | Minimum | Significant Unobservable Inputs (Level 3) | Real Estate Investments | Fair Value, Measurements, Recurring | Discounted cash flow | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Real estate investments, measurement input | 4.75% | 4.75% | |
Measurement Input, Residual Capitalization Rate | Minimum | Significant Unobservable Inputs (Level 3) | Limited partnerships and limited liability companies | Fair Value, Measurements, Recurring | Discounted cash flow | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Limited partnerships and limited liability companies, measurement input | 4.48% | 4.25% | |
Measurement Input, Residual Capitalization Rate | Maximum | Significant Unobservable Inputs (Level 3) | Real Estate Investments | Fair Value, Measurements, Recurring | Discounted cash flow | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Real estate investments, measurement input | 6.50% | 6.50% | |
Measurement Input, Residual Capitalization Rate | Maximum | Significant Unobservable Inputs (Level 3) | Limited partnerships and limited liability companies | Fair Value, Measurements, Recurring | Discounted cash flow | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Limited partnerships and limited liability companies, measurement input | 4.63% | 4.75% | |
Measurement Input, Residual Capitalization Rate | Weighted Average | Significant Unobservable Inputs (Level 3) | Limited partnerships and limited liability companies | Fair Value, Measurements, Recurring | Discounted cash flow | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Limited partnerships and limited liability companies, measurement input | 4.55% | 4.46% | |
Measurement Input, Residual Capitalization Rate | Average | Significant Unobservable Inputs (Level 3) | Real Estate Investments | Fair Value, Measurements, Recurring | Discounted cash flow | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Real estate investments, measurement input | 5.42% | 5.44% | |
Measurement Input, Discount Rate | Significant Unobservable Inputs (Level 3) | Other Investments | Fair Value, Measurements, Recurring | Discounted cash flow | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other investments, measurement input | 0.250 | ||
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) | (0.0100) | ||
Fixed index annuities embedded derivative, adjustment due to change in discount rate | $ 400,200 | ||
Measurement Input, Discount Rate | Minimum | Significant Unobservable Inputs (Level 3) | Debt Securities | Fair Value, Measurements, Recurring | Discounted cash flow | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, measurement input | 0.0550 | 0.0404 | |
Measurement Input, Discount Rate | Minimum | Significant Unobservable Inputs (Level 3) | Real Estate Investments | Fair Value, Measurements, Recurring | Discounted cash flow | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Real estate investments, measurement input | 6% | 6% | |
Measurement Input, Discount Rate | Minimum | Significant Unobservable Inputs (Level 3) | Limited partnerships and limited liability companies | Fair Value, Measurements, Recurring | Discounted cash flow | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Limited partnerships and limited liability companies, measurement input | 6.50% | 5.75% | |
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) | 0.0100 | ||
Fixed index annuities embedded derivative, adjustment due to change in discount rate | $ (347,700) | ||
Measurement Input, Discount Rate | Maximum | Significant Unobservable Inputs (Level 3) | Debt Securities | Fair Value, Measurements, Recurring | Discounted cash flow | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, measurement input | 0.0999 | 0.2858 | |
Measurement Input, Discount Rate | Maximum | Significant Unobservable Inputs (Level 3) | Real Estate Investments | Fair Value, Measurements, Recurring | Discounted cash flow | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Real estate investments, measurement input | 7.88% | 8% | |
Measurement Input, Discount Rate | Maximum | Significant Unobservable Inputs (Level 3) | Limited partnerships and limited liability companies | Fair Value, Measurements, Recurring | Discounted cash flow | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Limited partnerships and limited liability companies, measurement input | 9.25% | 6% | |
Measurement Input, Discount Rate | Weighted Average | Significant Unobservable Inputs (Level 3) | Debt Securities | Fair Value, Measurements, Recurring | Discounted cash flow | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, measurement input | 0.0638 | 0.0436 | |
Measurement Input, Discount Rate | Weighted Average | Significant Unobservable Inputs (Level 3) | Limited partnerships and limited liability companies | Fair Value, Measurements, Recurring | Discounted cash flow | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Limited partnerships and limited liability companies, measurement input | 8.03% | 5.86% | |
Measurement Input, Discount Rate | Average | Significant Unobservable Inputs (Level 3) | Real Estate Investments | Fair Value, Measurements, Recurring | Discounted cash flow | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Real estate investments, measurement input | 6.87% | 6.91% | |
Measurement Input, Expected Term | Minimum | Significant Unobservable Inputs (Level 3) | Debt Securities | Fair Value, Measurements, Recurring | Discounted cash flow | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, term | 1 year 3 months 3 days | 8 years 9 months 14 days | |
Measurement Input, Expected Term | Minimum | Significant Unobservable Inputs (Level 3) | Other Investments | Fair Value, Measurements, Recurring | Discounted cash flow | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other investments, term | 11 years 6 months | ||
Measurement Input, Expected Term | Maximum | Significant Unobservable Inputs (Level 3) | Debt Securities | Fair Value, Measurements, Recurring | Discounted cash flow | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, term | 12 years 7 months 6 days | 12 years 5 months 23 days | |
Measurement Input, Expected Term | Maximum | Significant Unobservable Inputs (Level 3) | Other Investments | Fair Value, Measurements, Recurring | Discounted cash flow | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other investments, term | 12 years 4 months 28 days | ||
Measurement Input, Expected Term | Weighted Average | Significant Unobservable Inputs (Level 3) | Debt Securities | Fair Value, Measurements, Recurring | Discounted cash flow | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, term | 7 years 7 months 2 days | 9 years 3 months 14 days | |
Measurement Input, Expected Term | Weighted Average | Significant Unobservable Inputs (Level 3) | Other Investments | Fair Value, Measurements, Recurring | Discounted cash flow | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other investments, term | 11 years 11 months 23 days | ||
[1] Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. |
Fair Values of Financial Inst_6
Fair Values of Financial Instruments (Assumptions Used in Estimating Fair Value) (Details) - Fixed Index Annuities | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Minimum | Contract Duration (Years), 1-5 | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Contract duration (years) | 1 year | 1 year |
Minimum | Contract Duration (Years), 6-10 | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Contract duration (years) | 6 years | 6 years |
Minimum | Contract Duration (Years), 11-15 | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Contract duration (years) | 11 years | 11 years |
Minimum | Contract Duration (Years), 16-20 | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Contract duration (years) | 16 years | 16 years |
Minimum | Contract Duration (Years), 20 or More | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Contract duration (years) | 20 years | 20 years |
Maximum | Contract Duration (Years), 1-5 | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Contract duration (years) | 5 years | 5 years |
Maximum | Contract Duration (Years), 6-10 | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Contract duration (years) | 10 years | 10 years |
Maximum | Contract Duration (Years), 11-15 | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Contract duration (years) | 15 years | 15 years |
Maximum | Contract Duration (Years), 16-20 | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Contract duration (years) | 20 years | 20 years |
Average | Contract Duration (Years), 1-5 | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Average lapse rates | 2.07% | 2.17% |
Average partial withdrawal rates | 1.87% | 1.86% |
Average | Contract Duration (Years), 6-10 | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Average lapse rates | 3.38% | 3.28% |
Average partial withdrawal rates | 1.95% | 1.97% |
Average | Contract Duration (Years), 11-15 | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Average lapse rates | 3.58% | 3.63% |
Average partial withdrawal rates | 1.81% | 1.86% |
Average | Contract Duration (Years), 16-20 | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Average lapse rates | 10.44% | 8.55% |
Average partial withdrawal rates | 2.89% | 2.96% |
Average | Contract Duration (Years), 20 or More | ||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||
Average lapse rates | 4.92% | 4.90% |
Average partial withdrawal rates | 1.82% | 1.81% |
Fair Values of Financial Inst_7
Fair Values of Financial Instruments (Reconciliation of Beginning and Ending Balances of Level 3 Assets and Liabilities) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
States, municipalities and territories | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 97,659 | $ 0 | $ 0 | $ 0 |
Purchases and sales, net | 0 | 0 | 0 | 0 |
Transfers in | 11,164 | 77,726 | 108,823 | 77,726 |
Transfers out | 0 | 0 | 0 | 0 |
Included in net income | 0 | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 20,480 | 0 | 20,480 | 0 |
Ending balance | 129,303 | 77,726 | 129,303 | 77,726 |
Corporate securities | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 375,297 | 0 | 402,348 | 0 |
Purchases and sales, net | 0 | 0 | (26,278) | 0 |
Transfers in | 49,326 | 0 | 49,673 | 0 |
Transfers out | (172,174) | 0 | (172,174) | 0 |
Included in net income | 0 | 0 | 0 | 0 |
Included in other comprehensive income (loss) | (1,312) | 0 | (2,432) | 0 |
Ending balance | 251,137 | 0 | 251,137 | 0 |
Other asset backed securities | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 808,228 | 0 | 442,918 | 0 |
Purchases and sales, net | 0 | 0 | 227,032 | 0 |
Transfers in | 0 | 64,550 | 130,502 | 64,550 |
Transfers out | (20,817) | 0 | (20,817) | 0 |
Included in net income | 0 | 0 | 0 | 0 |
Included in other comprehensive income (loss) | (44,487) | 0 | (36,711) | 0 |
Ending balance | 742,924 | 64,550 | 742,924 | 64,550 |
Other investments | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 0 | 3,867 | 0 | 6,349 |
Transfers in | 9,821 | 0 | 9,821 | 0 |
Transfers out | 0 | (3,867) | 0 | (3,867) |
Included in net income | 0 | 0 | 0 | (2,482) |
Included in other comprehensive income (loss) | 13,423 | 0 | 13,423 | 0 |
Ending balance | 23,244 | 0 | 23,244 | 0 |
Real estate investments | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 1,053,631 | 510,188 | 940,559 | 337,939 |
Purchases and sales, net | 108,825 | 135,478 | 229,733 | 303,566 |
Included in net income | (3,684) | 26,809 | (11,520) | 30,970 |
Ending balance | 1,158,772 | 672,475 | 1,158,772 | 672,475 |
Limited partnerships and limited liability companies | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 164,327 | 0 | 64,209 | 0 |
Purchases and sales, net | 3,339 | 0 | 97,476 | 0 |
Included in net income | (16,626) | 0 | (10,645) | 0 |
Ending balance | 151,040 | 0 | 151,040 | 0 |
Funds withheld liability - embedded derivative | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning balance | (377,484) | 0 | (441,864) | 0 |
Transfers in | 0 | 0 | 0 | 0 |
Change in fair value, net | (19,750) | 0 | 44,630 | 0 |
Ending balance | (397,234) | 0 | (397,234) | 0 |
Fixed index annuities - embedded derivatives | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Beginning balance | 4,905,133 | 6,770,915 | 4,820,845 | 7,964,961 |
Premiums less benefits | (32,309) | (50,594) | (153,490) | 63,483 |
Change in fair value, net | 141,873 | (884,009) | 347,342 | (2,192,132) |
Ending balance | $ 5,014,697 | $ 5,836,312 | $ 5,014,697 | $ 5,836,312 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Billions | 6 Months Ended | ||
Jun. 30, 2023 USD ($) security | Jun. 30, 2022 USD ($) | Dec. 31, 2022 security | |
Investments [Abstract] | |||
Percentage of fixed maturity portfolio rated investment grade based on NAIC designations | 98% | 98% | |
Number of securities in unrealized loss position | security | 4,300 | 4,510 | |
Percentage of unrealized losses on fixed maturity securities where securities are rated investment grade | 98% | 98% | |
Proceeds from sales of available for sale fixed maturity securities | $ 3.7 | $ 2.1 | |
Principal repayments, calls and tenders for available for sale fixed maturity securities | $ 1.4 | $ 1.3 |
Investments (Schedule of Fixed
Investments (Schedule of Fixed Maturity Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-sale [Line Items] | |||||||
Fixed maturity securities, available for sale, amortized cost | $ 43,323,015 | $ 44,866,019 | |||||
Fixed maturity securities, available for sale, gross unrealized gains | 174,149 | 225,792 | |||||
Fixed maturity securities, available for sale, gross unrealized losses | (4,812,561) | (5,283,847) | |||||
Fixed maturity securities, available for sale, allowance for credit losses | (4,146) | $ (2,047) | (3,347) | $ (6,187) | $ (6,577) | $ (2,846) | |
Fair Value | 38,680,457 | 39,804,617 | [1] | ||||
Accrued interest receivable | 416,500 | 425,400 | |||||
U.S. Government and agencies | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Fixed maturity securities, available for sale, amortized cost | 179,087 | 173,638 | |||||
Fixed maturity securities, available for sale, gross unrealized gains | 66 | 70 | |||||
Fixed maturity securities, available for sale, gross unrealized losses | (3,691) | (4,637) | |||||
Fixed maturity securities, available for sale, allowance for credit losses | 0 | 0 | |||||
Fair Value | 175,462 | 169,071 | |||||
States, municipalities and territories | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Fixed maturity securities, available for sale, amortized cost | 3,706,837 | 4,356,251 | |||||
Fixed maturity securities, available for sale, gross unrealized gains | 25,316 | 41,565 | |||||
Fixed maturity securities, available for sale, gross unrealized losses | (470,794) | (574,834) | |||||
Fixed maturity securities, available for sale, allowance for credit losses | 0 | 0 | 0 | (1,834) | (2,009) | (2,776) | |
Fair Value | 3,261,359 | 3,822,982 | |||||
Foreign corporate securities and foreign governments | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Fixed maturity securities, available for sale, amortized cost | 649,101 | 748,770 | |||||
Fixed maturity securities, available for sale, gross unrealized gains | 3,491 | 11,661 | |||||
Fixed maturity securities, available for sale, gross unrealized losses | (78,675) | (83,579) | |||||
Fixed maturity securities, available for sale, allowance for credit losses | 0 | 0 | |||||
Fair Value | 573,917 | 676,852 | |||||
Corporate securities | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Fixed maturity securities, available for sale, amortized cost | 25,268,072 | 27,706,440 | |||||
Fixed maturity securities, available for sale, gross unrealized gains | 123,687 | 146,065 | |||||
Fixed maturity securities, available for sale, gross unrealized losses | (3,319,418) | (3,687,370) | |||||
Fixed maturity securities, available for sale, allowance for credit losses | (3,132) | (1,914) | (3,214) | (3,743) | (3,825) | 0 | |
Fair Value | 22,069,209 | 24,161,921 | |||||
Residential mortgage backed securities | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Fixed maturity securities, available for sale, amortized cost | 1,593,824 | 1,492,242 | |||||
Fixed maturity securities, available for sale, gross unrealized gains | 7,650 | 11,870 | |||||
Fixed maturity securities, available for sale, gross unrealized losses | (128,110) | (126,368) | |||||
Fixed maturity securities, available for sale, allowance for credit losses | (67) | (133) | (133) | (610) | (743) | (70) | |
Fair Value | 1,473,297 | 1,377,611 | |||||
Commercial mortgage backed securities | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Fixed maturity securities, available for sale, amortized cost | 4,041,901 | 4,098,755 | |||||
Fixed maturity securities, available for sale, gross unrealized gains | 609 | 493 | |||||
Fixed maturity securities, available for sale, gross unrealized losses | (488,892) | (411,770) | |||||
Fixed maturity securities, available for sale, allowance for credit losses | 0 | 0 | 0 | 0 | 0 | 0 | |
Fair Value | 3,553,618 | 3,687,478 | |||||
Other asset backed securities | |||||||
Debt Securities, Available-for-sale [Line Items] | |||||||
Fixed maturity securities, available for sale, amortized cost | 7,884,193 | 6,289,923 | |||||
Fixed maturity securities, available for sale, gross unrealized gains | 13,330 | 14,068 | |||||
Fixed maturity securities, available for sale, gross unrealized losses | (322,981) | (395,289) | |||||
Fixed maturity securities, available for sale, allowance for credit losses | (947) | $ 0 | 0 | $ 0 | $ 0 | $ 0 | |
Fair Value | $ 7,573,595 | $ 5,908,702 | |||||
[1] Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. |
Investments (Fixed Maturity Sec
Investments (Fixed Maturity Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |||
Fixed maturity securities, available for sale, due in one year or less, amortized cost | $ 681,287 | ||
Fixed maturity securities, available for sale, due after one year through five years, amortized cost | 6,111,532 | ||
Fixed maturity securities, available for sale, due after five years through ten years, amortized cost | 5,588,456 | ||
Fixed maturity securities, available for sale, due after ten years through twenty years, amortized cost | 8,060,065 | ||
Fixed maturity securities, available for sale, due after twenty years, amortized cost | 9,361,757 | ||
Fixed maturity securities, available for sale, securities with a single maturity date, amortized cost | 29,803,097 | ||
Amortized Cost | 43,323,015 | $ 44,866,019 | |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||
Fixed maturity securities, available for sale, due in one year or less, fair value | 668,827 | ||
Fixed maturity securities, available for sale, due after one year through five years, fair value | 5,857,320 | ||
Fixed maturity securities, available for sale, due after five years through ten years, fair value | 5,069,920 | ||
Fixed maturity securities, available for sale, due after ten years through twenty years, fair value | 7,137,892 | ||
Fixed maturity securities, available for sale, due after twenty years, fair value | 7,345,988 | ||
Fixed maturity securities, available for sale, securities with a single maturity date, fair value | 26,079,947 | ||
Fair Value | 38,680,457 | 39,804,617 | [1] |
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 | 1,593,824 | ||
Amortized Cost | 1,593,824 | 1,492,242 | |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||
Fixed maturity securities, available for sale, securities without a single maturity date, fair value | 1,473,297 | ||
Fair Value | 1,473,297 | 1,377,611 | |
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 | 4,041,901 | ||
Amortized Cost | 4,041,901 | 4,098,755 | |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||
Fixed maturity securities, available for sale, securities without a single maturity date, fair value | 3,553,618 | ||
Fair Value | 3,553,618 | 3,687,478 | |
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 | 7,884,193 | ||
Amortized Cost | 7,884,193 | 6,289,923 | |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||
Fixed maturity securities, available for sale, securities without a single maturity date, fair value | 7,573,595 | ||
Fair Value | $ 7,573,595 | $ 5,908,702 | |
[1] Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. |
Investments (Net Unrealized Gai
Investments (Net Unrealized Gains (Losses) on Investments Reported as a Separate Component of Stockholders' Equity) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Investments [Abstract] | ||
Net unrealized losses on investments | $ (4,630,762) | $ (5,065,422) |
Deferred income tax valuation allowance reversal | 22,534 | 22,534 |
Deferred income tax expense | 972,162 | 1,063,441 |
Net unrealized losses reported as accumulated other comprehensive loss | $ (3,636,066) | $ (3,979,447) |
Investments (Credit Quality of
Investments (Credit Quality of Fixed Maturity Security Portfolio by NAIC Designation) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | $ 43,323,015 | $ 44,866,019 | |
Fair Value | 38,680,457 | 39,804,617 | [1] |
NAIC, Class 1 Designation | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 26,852,711 | 27,061,903 | |
Fair Value | 24,130,363 | 24,211,086 | |
NAIC, Class 2 Designation | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 15,733,173 | 17,023,157 | |
Fair Value | 13,925,216 | 14,944,131 | |
NAIC, Class 3 Designation | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 616,104 | 595,193 | |
Fair Value | 518,089 | 510,392 | |
NAIC, Class 4 Designation | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 102,614 | 109,409 | |
Fair Value | 92,058 | 91,495 | |
NAIC, Class 5 Designation | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 6,765 | 61,721 | |
Fair Value | 6,917 | 36,738 | |
NAIC, Class 6 Designation | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 11,648 | 14,636 | |
Fair Value | $ 7,814 | $ 10,775 | |
[1] Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. |
Investments (Gross Unrealized L
Investments (Gross Unrealized Losses on Investments, By Category and Length of Time) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, fair value | $ 8,523,336 | $ 28,557,796 | ||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | (394,109) | (4,403,539) | ||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 23,800,571 | 4,221,422 | ||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | (4,418,452) | (880,308) | ||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 32,323,907 | 32,779,218 | ||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | (4,812,561) | (5,283,847) | ||||
Fixed maturity securities, available for sale, allowance for credit losses | 4,146 | $ 2,047 | 3,347 | $ 6,187 | $ 6,577 | $ 2,846 |
U.S. Government and agencies | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, fair value | 120,241 | 160,201 | ||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | (2,104) | (4,512) | ||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 24,084 | 908 | ||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | (1,587) | (125) | ||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 144,325 | 161,109 | ||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | (3,691) | (4,637) | ||||
Fixed maturity securities, available for sale, allowance for credit losses | 0 | 0 | ||||
States, municipalities 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 | 545,909 | 2,595,122 | ||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | (38,329) | (537,313) | ||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 2,077,644 | 95,184 | ||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | (432,465) | (37,521) | ||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 2,623,553 | 2,690,306 | ||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | (470,794) | (574,834) | ||||
Fixed maturity securities, available for sale, allowance for credit losses | 0 | 0 | 0 | 1,834 | 2,009 | 2,776 |
Foreign corporate securities and foreign governments | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, fair value | 86,734 | 522,826 | ||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | (4,892) | (76,957) | ||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 404,826 | 21,816 | ||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | (73,783) | (6,622) | ||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 491,560 | 544,642 | ||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | (78,675) | (83,579) | ||||
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 | 4,341,434 | 18,784,181 | ||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | (232,048) | (3,218,323) | ||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 14,300,847 | 1,411,177 | ||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | (3,087,370) | (469,047) | ||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 18,642,281 | 20,195,358 | ||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | (3,319,418) | (3,687,370) | ||||
Fixed maturity securities, available for sale, allowance for credit losses | 3,132 | 1,914 | 3,214 | 3,743 | 3,825 | 0 |
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 | 845,456 | 992,783 | ||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | (50,133) | (101,100) | ||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 463,440 | 116,388 | ||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | (77,977) | (25,268) | ||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 1,308,896 | 1,109,171 | ||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | (128,110) | (126,368) | ||||
Fixed maturity securities, available for sale, allowance for credit losses | 67 | 133 | 133 | 610 | 743 | 70 |
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 | 573,518 | 2,941,293 | ||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | (18,089) | (302,513) | ||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 2,888,442 | 651,923 | ||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | (470,803) | (109,257) | ||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 3,461,960 | 3,593,216 | ||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | (488,892) | (411,770) | ||||
Fixed maturity securities, available for sale, allowance for credit losses | 0 | 0 | 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 | 2,010,044 | 2,561,390 | ||||
Fixed maturity securities, available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | (48,514) | (162,821) | ||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, fair value | 3,641,288 | 1,924,026 | ||||
Fixed maturity securities, available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | (274,467) | (232,468) | ||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, fair value | 5,651,332 | 4,485,416 | ||||
Fixed maturity securities, available for sale securities, continuous unrealized loss position, total, unrealized losses | (322,981) | (395,289) | ||||
Fixed maturity securities, available for sale, allowance for credit losses | $ 947 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Investments (Changes in Net Unr
Investments (Changes in Net Unrealized Gains/Losses on Investments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Investments [Abstract] | ||||
Fixed maturity securities available for sale carried at fair value | $ (398,608) | $ (3,443,391) | $ 434,660 | $ (7,457,762) |
Adjustment for effect on other balance sheet accounts: | ||||
Deferred income tax asset/liability | 83,707 | 723,065 | (91,279) | 1,565,847 |
Total adjustment for effect on other balance sheet accounts | 83,707 | 723,065 | (91,279) | 1,565,847 |
Change in net unrealized gains/losses on investments carried at fair value | $ (314,901) | $ (2,720,326) | $ 343,381 | $ (5,891,915) |
Investments (Net Realized Gains
Investments (Net Realized Gains (Losses) on Investments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |||
Gain (Loss) on Securities [Line Items] | ||||||
Decrease (increase) in allowance for credit losses | $ 5,231 | $ (3,348) | $ (3,423) | $ (8,593) | ||
Net realized losses on investments | (24,679) | (33,272) | [1] | (52,466) | (46,399) | [2] |
Fixed Maturity Securities, Available For Sale | ||||||
Gain (Loss) on Securities [Line Items] | ||||||
Gross realized gains | 59,056 | 507 | 85,044 | 3,972 | ||
Gross realized losses | (36,335) | (24,053) | (80,786) | (26,059) | ||
Net credit loss (provision) release | (46,273) | (5,498) | (47,102) | (12,854) | ||
Realized gains (losses) | (23,552) | (29,044) | (42,844) | (34,941) | ||
Other Investments | ||||||
Gain (Loss) on Securities [Line Items] | ||||||
Gross realized gains | 433 | 0 | 2,210 | 0 | ||
Gross realized losses | (4,629) | 0 | (5,061) | 0 | ||
Other investments, realized gains (losses) | (4,196) | 0 | (2,851) | 0 | ||
Mortgage Loans on Real Estate | ||||||
Gain (Loss) on Securities [Line Items] | ||||||
Decrease (increase) in allowance for credit losses | 5,231 | (3,348) | (3,423) | (8,593) | ||
Recovery of specific allowance | 0 | 229 | 0 | 229 | ||
Loss on sale of mortgage loans | (2,162) | (1,109) | (3,348) | (3,094) | ||
Gain (loss) on mortgage loans | $ 3,069 | $ (4,228) | $ (6,771) | $ (11,458) | ||
[1] Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. |
Investments (Rollforward of All
Investments (Rollforward of Allowance for Credit Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 2,047 | $ 6,577 | $ 3,347 | $ 2,846 |
Additions for credit losses not previously recorded | 947 | 295 | 947 | 4,456 |
Change in allowance on securities with previous allowance | 1,152 | (257) | (148) | (687) |
Reduction for securities sold during the period | 0 | (428) | 0 | (428) |
Ending balance | 4,146 | 6,187 | 4,146 | 6,187 |
States, municipalities and territories | ||||
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 0 | 2,009 | 0 | 2,776 |
Additions for credit losses not previously recorded | 0 | 0 | 0 | 0 |
Change in allowance on securities with previous allowance | 0 | (175) | 0 | (942) |
Reduction for securities sold during the period | 0 | 0 | 0 | 0 |
Ending balance | 0 | 1,834 | 0 | 1,834 |
Corporate securities | ||||
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 1,914 | 3,825 | 3,214 | 0 |
Additions for credit losses not previously recorded | 0 | 0 | 0 | 3,825 |
Change in allowance on securities with previous allowance | 1,218 | (82) | (82) | (82) |
Reduction for securities sold during the period | 0 | 0 | 0 | |
Ending balance | 3,132 | 3,743 | 3,132 | 3,743 |
Commercial mortgage backed securities | ||||
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 0 | 0 | 0 | 0 |
Additions for credit losses not previously recorded | 0 | 0 | 0 | 0 |
Change in allowance on securities with previous allowance | 0 | 0 | 0 | 0 |
Reduction for securities sold during the period | 0 | 0 | 0 | |
Ending balance | 0 | 0 | 0 | 0 |
Residential mortgage backed securities | ||||
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 133 | 743 | 133 | 70 |
Additions for credit losses not previously recorded | 0 | 295 | 0 | 631 |
Change in allowance on securities with previous allowance | (66) | 0 | (66) | 337 |
Reduction for securities sold during the period | 0 | (428) | 0 | (428) |
Ending balance | 67 | 610 | 67 | 610 |
Other asset backed securities | ||||
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 0 | 0 | 0 | 0 |
Additions for credit losses not previously recorded | 947 | 0 | 947 | 0 |
Change in allowance on securities with previous allowance | 0 | 0 | 0 | 0 |
Reduction for securities sold during the period | 0 | 0 | 0 | |
Ending balance | $ 947 | $ 0 | $ 947 | $ 0 |
Mortgage Loans on Real Estate_2
Mortgage Loans on Real Estate (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 USD ($) segment loan | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) loan properties segment | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) properties loan | |
Loans and Leases Receivable Disclosure [Line Items] | |||||
Number of portfolio segments that make up financing receivables | segment | 3 | 3 | |||
Commitments outstanding | $ 693,000 | $ 693,000 | |||
Accrued interest receivable | 62,500 | $ 62,500 | $ 58,200 | ||
Real estate owned, number of properties | properties | 2 | 0 | |||
Real estate owned | $ 715 | $ 715 | |||
Non-accrual status, number of loans | loan | 93 | 93 | 59 | ||
Interest income recognized on non-accrual loans | $ 108 | $ 5 | $ 445 | $ 71 | |
Number of TDRs | loan | 0 | 0 | |||
Minimum | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Number of days past due, nonperforming | 90 days | ||||
Agricultural Mortgage Loans | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Principal outstanding | $ 582,660 | $ 582,660 | $ 567,630 | ||
Accrued interest receivable written off | 0 | 0 | 0 | 0 | |
Residential Mortgage Loans | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Principal outstanding | 3,236,400 | 3,236,400 | 2,807,652 | ||
Accrued interest receivable written off | 0 | 0 | 0 | 0 | |
Commercial Mortgage Loans | |||||
Loans and Leases Receivable Disclosure [Line Items] | |||||
Principal outstanding | 3,535,506 | 3,535,506 | $ 3,560,903 | ||
Accrued interest receivable written off | $ 0 | $ 0 | $ 0 | $ 0 |
Mortgage Loans on Real Estate_3
Mortgage Loans on Real Estate (Summary of Mortgage Loan Portfolio) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Valuation allowance | $ (40,395) | $ (45,626) | $ (36,972) | $ (32,388) | $ (29,269) | $ (24,024) | |
Mortgage loans, carrying value | 7,373,609 | 6,949,027 | [1] | ||||
Commercial Mortgage Loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Principal outstanding | 3,535,506 | 3,560,903 | |||||
Deferred fees and costs, net | (4,316) | (6,345) | |||||
Unamortized discounts and premiums, net | (1,821) | 0 | |||||
Mortgage loans, amortized cost | 3,529,369 | 3,554,558 | |||||
Valuation allowance | (21,330) | (25,082) | (22,428) | (24,244) | (24,587) | (17,926) | |
Mortgage loans, carrying value | 3,508,039 | 3,532,130 | |||||
Agricultural Mortgage Loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Principal outstanding | 582,660 | 567,630 | |||||
Deferred fees and costs, net | (1,719) | (1,667) | |||||
Mortgage loans, amortized cost | 580,941 | 565,963 | |||||
Valuation allowance | (895) | (1,356) | (1,021) | (664) | (558) | (519) | |
Mortgage loans, carrying value | 580,046 | 564,942 | |||||
Residential Mortgage Loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Principal outstanding | 3,236,400 | 2,807,652 | |||||
Deferred fees and costs, net | 1,068 | 1,909 | |||||
Unamortized discounts and premiums, net | 66,226 | 55,917 | |||||
Mortgage loans, amortized cost | 3,303,694 | 2,865,478 | |||||
Valuation allowance | (18,170) | $ (19,188) | (13,523) | $ (7,480) | $ (4,124) | $ (5,579) | |
Mortgage loans, carrying value | $ 3,285,524 | $ 2,851,955 | |||||
[1] Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. |
Mortgage Loans on Real Estate_4
Mortgage Loans on Real Estate (Commercial Mortgage Loan Portfolio Summarized by Geographic Region and Property Type) (Details) - Commercial Mortgage Loans - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 3,535,506 | $ 3,560,903 |
Percent | 100% | 100% |
East | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 484,451 | $ 502,659 |
Percent | 13.70% | 14.10% |
Middle Atlantic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 278,727 | $ 280,993 |
Percent | 7.90% | 7.90% |
Mountain | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 397,667 | $ 416,307 |
Percent | 11.20% | 11.70% |
New England | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 77,457 | $ 73,631 |
Percent | 2.20% | 2.10% |
Pacific | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 844,371 | $ 858,812 |
Percent | 23.90% | 24.10% |
South Atlantic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 943,302 | $ 934,007 |
Percent | 26.70% | 26.20% |
West North Central | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 197,206 | $ 205,568 |
Percent | 5.60% | 5.80% |
West South Central | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 312,325 | $ 288,926 |
Percent | 8.80% | 8.10% |
Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 366,086 | $ 388,978 |
Percent | 10.30% | 10.90% |
Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 845,217 | $ 896,351 |
Percent | 23.90% | 25.20% |
Industrial/Warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 896,797 | $ 866,623 |
Percent | 25.40% | 24.30% |
Apartment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 1,024,893 | $ 912,984 |
Percent | 29% | 25.60% |
Hotel | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 324,271 | $ 285,271 |
Percent | 9.20% | 8% |
Mixed Use/Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 78,242 | $ 210,696 |
Percent | 2.20% | 6% |
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 | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning allowance balance | $ (45,626) | $ (29,269) | $ (36,972) | $ (24,024) |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 229 | 0 | 229 |
Change in provision for credit losses | 5,231 | (3,348) | (3,423) | (8,593) |
Ending allowance balance | (40,395) | (32,388) | (40,395) | (32,388) |
Commercial | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning allowance balance | (25,082) | (24,587) | (22,428) | (17,926) |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 229 | 0 | 229 |
Change in provision for credit losses | 3,752 | 114 | 1,098 | (6,547) |
Ending allowance balance | (21,330) | (24,244) | (21,330) | (24,244) |
Agricultural | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning allowance balance | (1,356) | (558) | (1,021) | (519) |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Change in provision for credit losses | 461 | (106) | 126 | (145) |
Ending allowance balance | (895) | (664) | (895) | (664) |
Residential | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning allowance balance | (19,188) | (4,124) | (13,523) | (5,579) |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Change in provision for credit losses | 1,018 | (3,356) | (4,647) | (1,901) |
Ending allowance balance | $ (18,170) | $ (7,480) | $ (18,170) | $ (7,480) |
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 | Jun. 30, 2023 | Dec. 31, 2022 |
Commercial Mortgage Loans | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Amortized cost, year one, originated in current fiscal year | $ 18,444 | $ 425,875 |
Average LTV, year one, originated in current fiscal year | 18% | 59% |
Amortized cost, year two, originated in fiscal year before current fiscal year | $ 478,594 | $ 592,468 |
Average LTV, year two, originated in fiscal year before current fiscal year | 55% | 53% |
Amortized cost, year three, originated two years before current fiscal year | $ 599,883 | $ 486,339 |
Average LTV, year three, originated two years before current fiscal year | 53% | 58% |
Amortized cost, year four, originated three years before current fiscal year | $ 476,290 | $ 591,076 |
Average LTV, year four, originated three years before current fiscal year | 56% | 61% |
Amortized cost, year five, originated four years before current fiscal year | $ 561,561 | $ 416,132 |
Average LTV, year five, originated four years before current fiscal year | 60% | 57% |
Amortized cost, originated more than five years before current fiscal year | $ 1,394,597 | $ 1,042,668 |
Average LTV, originated more than five years before current fiscal year | 49% | 47% |
Mortgage loans, amortized cost | $ 3,529,369 | $ 3,554,558 |
Total - Average LTV | 53% | 54% |
Commercial Mortgage Loans | Debt Service Coverage Ratio: Greater Than or Equal to 1.5 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Amortized cost, year one, originated in current fiscal year | $ 0 | $ 249,328 |
Average LTV, year one, originated in current fiscal year | 0% | 63% |
Amortized cost, year two, originated in fiscal year before current fiscal year | $ 285,762 | $ 257,746 |
Average LTV, year two, originated in fiscal year before current fiscal year | 62% | 61% |
Amortized cost, year three, originated two years before current fiscal year | $ 268,348 | $ 421,391 |
Average LTV, year three, originated two years before current fiscal year | 61% | 57% |
Amortized cost, year four, originated three years before current fiscal year | $ 390,439 | $ 429,596 |
Average LTV, year four, originated three years before current fiscal year | 56% | 58% |
Amortized cost, year five, originated four years before current fiscal year | $ 443,532 | $ 325,117 |
Average LTV, year five, originated four years before current fiscal year | 59% | 53% |
Amortized cost, originated more than five years before current fiscal year | $ 1,112,909 | $ 813,319 |
Average LTV, originated more than five years before current fiscal year | 46% | 44% |
Mortgage loans, amortized cost | $ 2,500,990 | $ 2,496,497 |
Total - Average LTV | 53% | 53% |
Commercial Mortgage Loans | Debt Service Coverage Ratio: Greater Than or Equal to 1.2 and Less Than 1.5 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Amortized cost, year one, originated in current fiscal year | $ 0 | $ 6,488 |
Average LTV, year one, originated in current fiscal year | 0% | 70% |
Amortized cost, year two, originated in fiscal year before current fiscal year | $ 0 | $ 123,038 |
Average LTV, year two, originated in fiscal year before current fiscal year | 0% | 55% |
Amortized cost, year three, originated two years before current fiscal year | $ 9,830 | $ 46,804 |
Average LTV, year three, originated two years before current fiscal year | 69% | 58% |
Amortized cost, year four, originated three years before current fiscal year | $ 46,365 | $ 115,977 |
Average LTV, year four, originated three years before current fiscal year | 54% | 66% |
Amortized cost, year five, originated four years before current fiscal year | $ 103,702 | $ 67,642 |
Average LTV, year five, originated four years before current fiscal year | 67% | 67% |
Amortized cost, originated more than five years before current fiscal year | $ 177,289 | $ 145,703 |
Average LTV, originated more than five years before current fiscal year | 61% | 60% |
Mortgage loans, amortized cost | $ 337,186 | $ 505,652 |
Total - Average LTV | 62% | 62% |
Commercial Mortgage Loans | Debt Service Coverage Ratio: Greater Than or Equal to 1.0 and Less Than 1.2 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Amortized cost, year one, originated in current fiscal year | $ 18,444 | $ 170,059 |
Average LTV, year one, originated in current fiscal year | 18% | 52% |
Amortized cost, year two, originated in fiscal year before current fiscal year | $ 192,832 | $ 211,684 |
Average LTV, year two, originated in fiscal year before current fiscal year | 43% | 43% |
Amortized cost, year three, originated two years before current fiscal year | $ 294,759 | $ 18,144 |
Average LTV, year three, originated two years before current fiscal year | 45% | 79% |
Amortized cost, year four, originated three years before current fiscal year | $ 39,486 | $ 39,396 |
Average LTV, year four, originated three years before current fiscal year | 60% | 73% |
Amortized cost, year five, originated four years before current fiscal year | $ 8,318 | $ 10,348 |
Average LTV, year five, originated four years before current fiscal year | 66% | 76% |
Amortized cost, originated more than five years before current fiscal year | $ 50,856 | $ 58,021 |
Average LTV, originated more than five years before current fiscal year | 56% | 47% |
Mortgage loans, amortized cost | $ 604,695 | $ 507,652 |
Total - Average LTV | 46% | 51% |
Commercial Mortgage Loans | Debt Service Coverage Ratio: Less Than 1.0 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Amortized cost, year one, originated in current fiscal year | $ 0 | $ 0 |
Average LTV, year one, originated in current fiscal year | 0% | 0% |
Amortized cost, year two, originated in fiscal year before current fiscal year | $ 0 | $ 0 |
Average LTV, year two, originated in fiscal year before current fiscal year | 0% | 0% |
Amortized cost, year three, originated two years before current fiscal year | $ 26,946 | $ 0 |
Average LTV, year three, originated two years before current fiscal year | 52% | 0% |
Amortized cost, year four, originated three years before current fiscal year | $ 0 | $ 6,107 |
Average LTV, year four, originated three years before current fiscal year | 0% | 64% |
Amortized cost, year five, originated four years before current fiscal year | $ 6,009 | $ 13,025 |
Average LTV, year five, originated four years before current fiscal year | 63% | 70% |
Amortized cost, originated more than five years before current fiscal year | $ 53,543 | $ 25,625 |
Average LTV, originated more than five years before current fiscal year | 57% | 65% |
Mortgage loans, amortized cost | $ 86,498 | $ 44,757 |
Total - Average LTV | 56% | 66% |
Agricultural Mortgage Loans | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Amortized cost, year one, originated in current fiscal year | $ 35,743 | $ 196,347 |
Average LTV, year one, originated in current fiscal year | 59% | 51% |
Amortized cost, year two, originated in fiscal year before current fiscal year | $ 193,956 | $ 160,641 |
Average LTV, year two, originated in fiscal year before current fiscal year | 51% | 48% |
Amortized cost, year three, originated two years before current fiscal year | $ 144,791 | $ 169,346 |
Average LTV, year three, originated two years before current fiscal year | 53% | 37% |
Amortized cost, year four, originated three years before current fiscal year | $ 170,175 | $ 5,629 |
Average LTV, year four, originated three years before current fiscal year | 45% | 41% |
Amortized cost, year five, originated four years before current fiscal year | $ 2,276 | $ 34,000 |
Average LTV, year five, originated four years before current fiscal year | 34% | 31% |
Amortized cost, originated more than five years before current fiscal year | $ 34,000 | $ 0 |
Average LTV, originated more than five years before current fiscal year | 42% | 0% |
Mortgage loans, amortized cost | $ 580,941 | $ 565,963 |
Total - Average LTV | 50% | 45% |
Agricultural Mortgage Loans | Debt Service Coverage Ratio: Greater Than or Equal to 1.5 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Amortized cost, year one, originated in current fiscal year | $ 25,736 | $ 85,367 |
Average LTV, year one, originated in current fiscal year | 59% | 47% |
Amortized cost, year two, originated in fiscal year before current fiscal year | $ 86,661 | $ 84,186 |
Average LTV, year two, originated in fiscal year before current fiscal year | 46% | 46% |
Amortized cost, year three, originated two years before current fiscal year | $ 70,160 | $ 97,143 |
Average LTV, year three, originated two years before current fiscal year | 55% | 41% |
Amortized cost, year four, originated three years before current fiscal year | $ 101,670 | $ 0 |
Average LTV, year four, originated three years before current fiscal year | 45% | 0% |
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% | 0% |
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% | 0% |
Mortgage loans, amortized cost | $ 284,227 | $ 266,696 |
Total - Average LTV | 49% | 45% |
Agricultural Mortgage Loans | Debt Service Coverage Ratio: Greater Than or Equal to 1.2 and Less Than 1.5 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Amortized cost, year one, originated in current fiscal year | $ 10,007 | $ 107,856 |
Average LTV, year one, originated in current fiscal year | 58% | 54% |
Amortized cost, year two, originated in fiscal year before current fiscal year | $ 104,193 | $ 67,630 |
Average LTV, year two, originated in fiscal year before current fiscal year | 55% | 52% |
Amortized cost, year three, originated two years before current fiscal year | $ 65,945 | $ 61,103 |
Average LTV, year three, originated two years before current fiscal year | 53% | 32% |
Amortized cost, year four, originated three years before current fiscal year | $ 60,530 | $ 0 |
Average LTV, year four, originated three years before current fiscal year | 45% | 0% |
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% | 0% |
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% | 0% |
Mortgage loans, amortized cost | $ 240,675 | $ 236,589 |
Total - Average LTV | 52% | 48% |
Agricultural Mortgage Loans | Debt Service Coverage Ratio: Greater Than or Equal to 1.0 and Less Than 1.2 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Amortized cost, year one, originated in current fiscal year | $ 0 | $ 3,124 |
Average LTV, year one, originated in current fiscal year | 0% | 56% |
Amortized cost, year two, originated in fiscal year before current fiscal year | $ 3,102 | $ 8,825 |
Average LTV, year two, originated in fiscal year before current fiscal year | 56% | 38% |
Amortized cost, year three, originated two years before current fiscal year | $ 8,686 | $ 3,125 |
Average LTV, year three, originated two years before current fiscal year | 39% | 25% |
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% | 0% |
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% | 0% |
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% | 0% |
Mortgage loans, amortized cost | $ 11,788 | $ 15,074 |
Total - Average LTV | 44% | 39% |
Agricultural Mortgage Loans | Debt Service Coverage Ratio: Less Than 1.0 | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Amortized cost, year one, originated in current fiscal year | $ 0 | $ 0 |
Average LTV, year one, originated in current fiscal year | 0% | 0% |
Amortized cost, year two, originated in fiscal year before current fiscal year | $ 0 | $ 0 |
Average LTV, year two, originated in fiscal year before current fiscal year | 0% | 0% |
Amortized cost, year three, originated two years before current fiscal year | $ 0 | $ 7,975 |
Average LTV, year three, originated two years before current fiscal year | 0% | 35% |
Amortized cost, year four, originated three years before current fiscal year | $ 7,975 | $ 5,629 |
Average LTV, year four, originated three years before current fiscal year | 40% | 41% |
Amortized cost, year five, originated four years before current fiscal year | $ 2,276 | $ 34,000 |
Average LTV, year five, originated four years before current fiscal year | 34% | 31% |
Amortized cost, originated more than five years before current fiscal year | $ 34,000 | $ 0 |
Average LTV, originated more than five years before current fiscal year | 42% | 0% |
Mortgage loans, amortized cost | $ 44,251 | $ 47,604 |
Total - Average LTV | 41% | 33% |
Mortgage Loans on Real Estate_7
Mortgage Loans on Real Estate (Aging of Financing Receivables) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Commercial Mortgage Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, year one, originated in current fiscal year | $ 18,444 | $ 425,875 |
Amortized cost, year two, originated in fiscal year before current fiscal year | 478,594 | 592,468 |
Amortized cost, year three, originated two years before current fiscal year | 599,883 | 486,339 |
Amortized cost, year four, originated three years before current fiscal year | 476,290 | 591,076 |
Amortized cost, year five, originated four years before current fiscal year | 561,561 | 416,132 |
Amortized cost, originated more than five years before current fiscal year | 1,394,597 | 1,042,668 |
Mortgage loans, amortized cost | 3,529,369 | 3,554,558 |
Commercial Mortgage Loans | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, year one, originated in current fiscal year | 18,444 | 425,875 |
Amortized cost, year two, originated in fiscal year before current fiscal year | 478,594 | 592,468 |
Amortized cost, year three, originated two years before current fiscal year | 599,883 | 486,339 |
Amortized cost, year four, originated three years before current fiscal year | 476,290 | 591,076 |
Amortized cost, year five, originated four years before current fiscal year | 561,561 | 416,132 |
Amortized cost, originated more than five years before current fiscal year | 1,394,597 | 1,042,668 |
Mortgage loans, amortized cost | 3,529,369 | 3,554,558 |
Commercial Mortgage Loans | 30 - 59 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, year one, originated in current fiscal year | 0 | 0 |
Amortized cost, year two, originated in fiscal year before current fiscal year | 0 | 0 |
Amortized cost, year three, originated two years before current fiscal year | 0 | 0 |
Amortized cost, year four, originated three years before current fiscal year | 0 | 0 |
Amortized cost, year five, originated four years before current fiscal year | 0 | 0 |
Amortized cost, originated more than five years before current 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, year one, originated in current fiscal year | 0 | 0 |
Amortized cost, year two, originated in fiscal year before current fiscal year | 0 | 0 |
Amortized cost, year three, originated two years before current fiscal year | 0 | 0 |
Amortized cost, year four, originated three years before current fiscal year | 0 | 0 |
Amortized cost, year five, originated four years before current fiscal year | 0 | 0 |
Amortized cost, originated more than five years before current 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, year one, originated in current fiscal year | 0 | 0 |
Amortized cost, year two, originated in fiscal year before current fiscal year | 0 | 0 |
Amortized cost, year three, originated two years before current fiscal year | 0 | 0 |
Amortized cost, year four, originated three years before current fiscal year | 0 | 0 |
Amortized cost, year five, originated four years before current fiscal year | 0 | 0 |
Amortized cost, originated more than five years before current fiscal year | 0 | 0 |
Mortgage loans, amortized cost | 0 | 0 |
Agricultural Mortgage Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, year one, originated in current fiscal year | 35,743 | 196,347 |
Amortized cost, year two, originated in fiscal year before current fiscal year | 193,956 | 160,641 |
Amortized cost, year three, originated two years before current fiscal year | 144,791 | 169,346 |
Amortized cost, year four, originated three years before current fiscal year | 170,175 | 5,629 |
Amortized cost, year five, originated four years before current fiscal year | 2,276 | 34,000 |
Amortized cost, originated more than five years before current fiscal year | 34,000 | 0 |
Mortgage loans, amortized cost | 580,941 | 565,963 |
Agricultural Mortgage Loans | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, year one, originated in current fiscal year | 32,743 | 196,347 |
Amortized cost, year two, originated in fiscal year before current fiscal year | 193,956 | 160,641 |
Amortized cost, year three, originated two years before current fiscal year | 144,791 | 166,211 |
Amortized cost, year four, originated three years before current fiscal year | 170,175 | 5,629 |
Amortized cost, year five, originated four years before current fiscal year | 2,276 | 34,000 |
Amortized cost, originated more than five years before current fiscal year | 34,000 | 0 |
Mortgage loans, amortized cost | 577,941 | 562,828 |
Agricultural Mortgage Loans | 30 - 59 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, year one, originated in current fiscal year | 3,000 | 0 |
Amortized cost, year two, originated in fiscal year before current fiscal year | 0 | 0 |
Amortized cost, year three, originated two years before current fiscal year | 0 | 0 |
Amortized cost, year four, originated three years before current fiscal year | 0 | 0 |
Amortized cost, year five, originated four years before current fiscal year | 0 | 0 |
Amortized cost, originated more than five years before current fiscal year | 0 | 0 |
Mortgage loans, amortized cost | 3,000 | 0 |
Agricultural Mortgage Loans | 60 - 89 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, year one, originated in current fiscal year | 0 | 0 |
Amortized cost, year two, originated in fiscal year before current fiscal year | 0 | 0 |
Amortized cost, year three, originated two years before current fiscal year | 0 | 0 |
Amortized cost, year four, originated three years before current fiscal year | 0 | 0 |
Amortized cost, year five, originated four years before current fiscal year | 0 | 0 |
Amortized cost, originated more than five years before current 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, year one, originated in current fiscal year | 0 | 0 |
Amortized cost, year two, originated in fiscal year before current fiscal year | 0 | 0 |
Amortized cost, year three, originated two years before current fiscal year | 0 | 3,135 |
Amortized cost, year four, originated three years before current fiscal year | 0 | 0 |
Amortized cost, year five, originated four years before current fiscal year | 0 | 0 |
Amortized cost, originated more than five years before current fiscal year | 0 | 0 |
Mortgage loans, amortized cost | 0 | 3,135 |
Residential Mortgage Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, year one, originated in current fiscal year | 707,424 | 1,970,718 |
Amortized cost, year two, originated in fiscal year before current fiscal year | 1,860,159 | 624,834 |
Amortized cost, year three, originated two years before current fiscal year | 504,511 | 233,741 |
Amortized cost, year four, originated three years before current fiscal year | 196,650 | 31,262 |
Amortized cost, year five, originated four years before current fiscal year | 30,408 | 4,506 |
Amortized cost, originated more than five years before current fiscal year | 4,542 | 417 |
Mortgage loans, amortized cost | 3,303,694 | 2,865,478 |
Residential Mortgage Loans | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, year one, originated in current fiscal year | 663,036 | 1,915,169 |
Amortized cost, year two, originated in fiscal year before current fiscal year | 1,778,621 | 595,363 |
Amortized cost, year three, originated two years before current fiscal year | 473,986 | 211,119 |
Amortized cost, year four, originated three years before current fiscal year | 186,088 | 27,483 |
Amortized cost, year five, originated four years before current fiscal year | 26,497 | 1,710 |
Amortized cost, originated more than five years before current fiscal year | 978 | 417 |
Mortgage loans, amortized cost | 3,129,206 | 2,751,261 |
Residential Mortgage Loans | 30 - 59 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, year one, originated in current fiscal year | 39,680 | 39,179 |
Amortized cost, year two, originated in fiscal year before current fiscal year | 43,994 | 8,238 |
Amortized cost, year three, originated two years before current fiscal year | 14,638 | 13,073 |
Amortized cost, year four, originated three years before current fiscal year | 4,650 | 1,960 |
Amortized cost, year five, originated four years before current fiscal year | 2,274 | 0 |
Amortized cost, originated more than five years before current fiscal year | 162 | 0 |
Mortgage loans, amortized cost | 105,398 | 62,450 |
Residential Mortgage Loans | 60 - 89 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, year one, originated in current fiscal year | 3,901 | 6,668 |
Amortized cost, year two, originated in fiscal year before current fiscal year | 10,276 | 7,165 |
Amortized cost, year three, originated two years before current fiscal year | 5,427 | 3,034 |
Amortized cost, year four, originated three years before current fiscal year | 1,030 | 57 |
Amortized cost, year five, originated four years before current fiscal year | 0 | 0 |
Amortized cost, originated more than five years before current fiscal year | 190 | 0 |
Mortgage loans, amortized cost | 20,824 | 16,924 |
Residential Mortgage Loans | Over 90 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, year one, originated in current fiscal year | 807 | 9,702 |
Amortized cost, year two, originated in fiscal year before current fiscal year | 27,268 | 14,068 |
Amortized cost, year three, originated two years before current fiscal year | 10,460 | 6,515 |
Amortized cost, year four, originated three years before current fiscal year | 4,882 | 1,762 |
Amortized cost, year five, originated four years before current fiscal year | 1,637 | 2,796 |
Amortized cost, originated more than five years before current fiscal year | 3,212 | 0 |
Mortgage loans, amortized cost | $ 48,266 | $ 34,843 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2023 limitedLiabilityCompany limitedPartnership fund | |
Variable Interest Entity, Real Estate Investments, Commercial Real Estate | |
Variable Interest Entity [Line Items] | |
Variable interest entities, number of consolidated variable interest entities | 1 |
Variable Interest Entity, Real Estate Limited Liability Companies | |
Variable Interest Entity [Line Items] | |
Variable interest entities, number of consolidated variable interest entities | 2 |
Variable Interest Entity, Limited Partnership Funds | |
Variable Interest Entity [Line Items] | |
Variable interest entities, number of consolidated variable interest entities | limitedPartnership | 2 |
Variable Interest Entity, Limited Partnership Funds, Infrastructure Credit Assets | |
Variable Interest Entity [Line Items] | |
Variable interest entities, number of consolidated variable interest entities | fund | 1 |
Variable Interest Entity, Limited Liability Company | |
Variable Interest Entity [Line Items] | |
Variable interest entities, number of consolidated variable interest entities | 1 |
Variable Interest Entities (Con
Variable Interest Entities (Consolidated VIEs) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Variable Interest Entity [Line Items] | |||
Total Assets | $ 77,645,425 | $ 73,183,599 | [1] |
Total Liabilities | 75,050,384 | 70,812,849 | [1] |
Real estate investments | |||
Variable Interest Entity [Line Items] | |||
Total Assets | 1,335,598 | 1,095,267 | |
Total Liabilities | 94,071 | 78,244 | |
Real estate limited liability companies | |||
Variable Interest Entity [Line Items] | |||
Total Assets | 53,428 | 66,258 | |
Total Liabilities | 137 | 287 | |
Limited partnership funds | |||
Variable Interest Entity [Line Items] | |||
Total Assets | 918,937 | 620,741 | |
Total Liabilities | 213 | 113 | |
Infrastructure limited liability companies | |||
Variable Interest Entity [Line Items] | |||
Total Assets | 100,605 | 0 | |
Total Liabilities | 284 | 0 | |
Variable Interest Entities | |||
Variable Interest Entity [Line Items] | |||
Total Assets | 2,408,568 | 1,782,266 | |
Total Liabilities | $ 94,705 | $ 78,644 | |
[1] Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. |
Variable Interest Entities (Unc
Variable Interest Entities (Unconsolidated VIEs) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Variable Interest Entity [Line Items] | |||
Asset carrying value | $ 77,645,425 | $ 73,183,599 | [1] |
Variable Interest Entity, Not Primary Beneficiary | Fixed Maturity Securities, Available For Sale | |||
Variable Interest Entity [Line Items] | |||
Asset carrying value | 1,445,039 | 1,178,110 | |
Maximum exposure to loss | 1,445,039 | 1,178,110 | |
Variable Interest Entity, Not Primary Beneficiary | Other Investments | |||
Variable Interest Entity [Line Items] | |||
Asset carrying value | 71,208 | 0 | |
Maximum exposure to loss | $ 71,208 | $ 0 | |
[1] Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Derivative [Line Items] | ||
Derivative collateral | $ 1,100 | $ 400 |
Credit risk, maximum exposure | $ 68.5 | $ 3.3 |
Call Options | ||
Derivative [Line Items] | ||
Derivative, term of contract | 1 year |
Derivative Instruments (Notiona
Derivative Instruments (Notional and Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Derivatives, Fair Value [Line Items] | |||
Derivative assets | $ 1,131,597 | $ 431,727 | [1] |
Designated as Hedging Instrument | Interest rate swaps | Fair Value Hedging | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | 0 | 408,369 | |
Derivative assets | 0 | 32,769 | |
Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | 39,783,069 | 38,929,554 | |
Derivative assets | 1,131,597 | 398,958 | |
Derivative liabilities | 4,617,463 | 4,378,981 | |
Not Designated as Hedging Instrument | Call Options | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | 39,783,069 | 38,927,534 | |
Derivative assets | 1,131,597 | 397,789 | |
Not Designated as Hedging Instrument | Warrants | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount | 0 | 2,020 | |
Derivative assets | 0 | 1,169 | |
Not Designated as Hedging Instrument | Fixed index annuities - embedded derivatives | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | 5,014,697 | 4,820,845 | |
Not Designated as Hedging Instrument | Reinsurance Related Embedded Derivative | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities | $ (397,234) | $ (441,864) | |
[1] Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. |
Derivative Instruments (Carryin
Derivative Instruments (Carrying Amount and Cumulative Fair Value Hedging Adjustments) (Details) - Fixed Maturity Securities, Available For Sale - Fair Value Hedging - Designated as Hedging Instrument - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Current hedging relationships, amortized cost of hedged item | $ 0 | $ 389,060 |
Current hedging relationships, cumulative amount of fair value basis adjustment gain (loss) | 0 | (39,128) |
Discontinued hedging relationships, amortized cost of hedged item | 1,372,336 | 1,594,736 |
Discontinued hedging relationships, cumulative amount of fair value basis adjustment gain (loss) | $ (80,946) | $ (94,681) |
Derivative Instruments (Gains (
Derivative Instruments (Gains (Losses) Related to Derivatives and Hedged Items) (Details) - Interest rate swaps - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Designated as Hedging Instrument | Fair Value Hedging | ||||
Derivative [Line Items] | ||||
Derivative, change in unrealized gain (loss) on fair value hedging instruments | $ 18,847 | $ 26,771 | $ 5,856 | $ 26,771 |
Change in unrealized gain (loss) on hedged item in fair value hedge | (10,876) | (33,093) | 3,240 | (33,093) |
Net, derivative, fair value hedge, included in effectiveness, gain (loss) | 7,971 | (6,322) | 9,096 | (6,322) |
Not Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Amount excluded: recognized in income immediately | $ 0 | $ 2,656 | $ 0 | $ 2,656 |
Derivative Instruments (Change
Derivative Instruments (Change in Fair Value of Derivatives Not Designated as Hedging) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Change in fair value of embedded derivatives | $ 213,764 | $ (885,984) | [1] | $ 618,204 | $ (2,279,633) | [2] |
Not Designated as Hedging Instrument | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Change in fair value of derivatives | 234,768 | (499,859) | 279,533 | (977,378) | ||
Change in fair value of embedded derivatives | 213,764 | (885,984) | 618,204 | (2,279,633) | ||
Not Designated as Hedging Instrument | Call Options | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Change in fair value of derivatives | 234,883 | (501,765) | 278,327 | (980,213) | ||
Not Designated as Hedging Instrument | Warrants | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Change in fair value of derivatives | (115) | (750) | 1,206 | 179 | ||
Not Designated as Hedging Instrument | Interest rate swaps | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Change in fair value of derivatives | 0 | 2,656 | 0 | 2,656 | ||
Not Designated as Hedging Instrument | Fixed index annuities - embedded derivatives | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Change in fair value of embedded derivatives | 233,514 | (686,562) | 573,574 | (1,877,767) | ||
Not Designated as Hedging Instrument | Reinsurance Related Embedded Derivative | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Change in fair value of embedded derivatives | $ (19,750) | $ (199,422) | $ 44,630 | $ (401,866) | ||
[1] Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. |
Derivative Instruments (Derivat
Derivative Instruments (Derivative Call Options and Interest Rate Swaps by Counterparty) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Derivative [Line Items] | |||
Derivative instruments | $ 1,131,597 | $ 431,727 | [1] |
Call Options and Interest Rate Swaps | |||
Derivative [Line Items] | |||
Notional amount | 39,783,069 | 39,335,903 | |
Derivative instruments | 1,131,597 | 430,558 | |
Bank of America | Call Options and Interest Rate Swaps | |||
Derivative [Line Items] | |||
Notional amount | 4,124,812 | 3,574,125 | |
Derivative instruments | 81,590 | 26,080 | |
Barclays | Call Options and Interest Rate Swaps | |||
Derivative [Line Items] | |||
Notional amount | 2,567,616 | 3,686,896 | |
Derivative instruments | 82,180 | 39,657 | |
Canadian Imperial Bank of Commerce | Call Options and Interest Rate Swaps | |||
Derivative [Line Items] | |||
Notional amount | 1,602,801 | 2,707,734 | |
Derivative instruments | 58,359 | 34,218 | |
Citibank, N.A. | Call Options and Interest Rate Swaps | |||
Derivative [Line Items] | |||
Notional amount | 4,171,072 | 3,748,162 | |
Derivative instruments | 102,691 | 29,873 | |
Credit Suisse | Call Options and Interest Rate Swaps | |||
Derivative [Line Items] | |||
Notional amount | 1,955,159 | 2,086,470 | |
Derivative instruments | 49,252 | 20,691 | |
J.P. Morgan | Call Options and Interest Rate Swaps | |||
Derivative [Line Items] | |||
Notional amount | 5,404,600 | 6,501,103 | |
Derivative instruments | 120,638 | 69,006 | |
Mizuho | Call Options and Interest Rate Swaps | |||
Derivative [Line Items] | |||
Notional amount | 4,030,827 | 0 | |
Derivative instruments | 145,197 | 0 | |
Morgan Stanley | Call Options and Interest Rate Swaps | |||
Derivative [Line Items] | |||
Notional amount | 1,967,830 | 2,957,389 | |
Derivative instruments | 45,622 | 38,470 | |
Royal Bank of Canada | Call Options and Interest Rate Swaps | |||
Derivative [Line Items] | |||
Notional amount | 4,479,656 | 4,378,132 | |
Derivative instruments | 146,476 | 58,026 | |
Societe Generale | Call Options and Interest Rate Swaps | |||
Derivative [Line Items] | |||
Notional amount | 2,806,536 | 2,099,081 | |
Derivative instruments | 69,333 | 17,157 | |
Truist | Call Options and Interest Rate Swaps | |||
Derivative [Line Items] | |||
Notional amount | 2,004,578 | 1,960,787 | |
Derivative instruments | 65,032 | 32,885 | |
UBS AG | Call Options and Interest Rate Swaps | |||
Derivative [Line Items] | |||
Notional amount | 300,708 | 0 | |
Derivative instruments | 8,676 | 0 | |
Wells Fargo | Call Options and Interest Rate Swaps | |||
Derivative [Line Items] | |||
Notional amount | 4,283,753 | 5,436,824 | |
Derivative instruments | 154,506 | 61,840 | |
Exchange traded | Call Options and Interest Rate Swaps | |||
Derivative [Line Items] | |||
Notional amount | 83,121 | 199,200 | |
Derivative instruments | $ 2,045 | $ 2,655 | |
[1] Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs and Deferred Sales Inducements (Schedule of Deferred Policy Acquisition Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2023 | Jun. 30, 2022 | [2] | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | ||||
Deferred Policy Acquisition Costs | |||||||||
Beginning balance, deferred policy acquisition costs | $ 2,773,643 | [1] | $ 3,062,204 | $ 3,062,204 | |||||
Write-off related to in-force ceded reinsurance | (203,626) | ||||||||
Capitalizations | 205,683 | 199,076 | |||||||
Amortization of deferred policy acquisition costs | $ (68,476) | $ (72,485) | (136,711) | (145,454) | [3] | (284,011) | |||
Ending balance, deferred policy acquisition costs | 2,842,615 | 2,842,615 | 2,773,643 | [1] | |||||
Fixed Index Annuities | |||||||||
Deferred Policy Acquisition Costs | |||||||||
Beginning balance, deferred policy acquisition costs | 2,649,322 | 2,906,684 | 2,906,684 | ||||||
Write-off related to in-force ceded reinsurance | (196,417) | ||||||||
Capitalizations | 189,581 | 193,989 | |||||||
Amortization of deferred policy acquisition costs | (121,769) | (254,934) | |||||||
Ending balance, deferred policy acquisition costs | 2,717,134 | 2,717,134 | 2,649,322 | ||||||
Fixed Rate Annuities | |||||||||
Deferred Policy Acquisition Costs | |||||||||
Beginning balance, deferred policy acquisition costs | 120,105 | 151,322 | 151,322 | ||||||
Write-off related to in-force ceded reinsurance | (7,209) | ||||||||
Capitalizations | 16,079 | 4,424 | |||||||
Amortization of deferred policy acquisition costs | (14,600) | (28,432) | |||||||
Ending balance, deferred policy acquisition costs | 121,584 | 121,584 | 120,105 | ||||||
Single Premium Immediate Annuities | |||||||||
Deferred Policy Acquisition Costs | |||||||||
Beginning balance, deferred policy acquisition costs | 4,216 | $ 4,198 | 4,198 | ||||||
Write-off related to in-force ceded reinsurance | 0 | ||||||||
Capitalizations | 23 | 663 | |||||||
Amortization of deferred policy acquisition costs | (342) | (645) | |||||||
Ending balance, deferred policy acquisition costs | $ 3,897 | $ 3,897 | $ 4,216 | ||||||
[1] Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. |
Deferred Policy Acquisition C_4
Deferred Policy Acquisition Costs and Deferred Sales Inducements (Schedule of Deferred Sales Inducements) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2023 | Jun. 30, 2022 | [3] | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | ||||
Deferred Sales Inducements | |||||||||
Beginning balance, deferred sales inducement costs | $ 2,045,683 | [1] | $ 2,119,961 | $ 2,119,961 | |||||
Capitalizations | 182,123 | 23,446 | [2] | 107,692 | |||||
Amortization expense | $ (46,951) | $ (44,696) | (93,552) | (89,781) | [3] | (181,970) | |||
Ending balance, deferred sales inducement costs | 2,134,254 | 2,134,254 | 2,045,683 | [1] | |||||
Fixed Index Annuities | |||||||||
Deferred Sales Inducements | |||||||||
Beginning balance, deferred sales inducement costs | 2,017,960 | 2,088,591 | 2,088,591 | ||||||
Capitalizations | 182,123 | 107,684 | |||||||
Amortization expense | (91,964) | (178,315) | |||||||
Ending balance, deferred sales inducement costs | 2,108,119 | 2,108,119 | 2,017,960 | ||||||
Fixed Rate Annuities | |||||||||
Deferred Sales Inducements | |||||||||
Beginning balance, deferred sales inducement costs | 27,723 | $ 31,370 | 31,370 | ||||||
Capitalizations | 0 | 8 | |||||||
Amortization expense | (1,588) | (3,655) | |||||||
Ending balance, deferred sales inducement costs | $ 26,135 | $ 26,135 | $ 27,723 | ||||||
[1] Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. |
Policyholder Liabilities (Sched
Policyholder Liabilities (Schedule of Present Value of Expected Future Policy Benefits) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Beginning balance, liability for future policy benefit | $ 318,677 | $ 402,305 | |
Beginning balance at original discount rate | 342,453 | 352,708 | |
Effect of changes in cash flow assumptions | 0 | $ 1,277 | |
Effect of actual variances from expected experience | (1,341) | (1,941) | |
Adjusted beginning of year balance | 341,112 | $ 352,044 | |
Issuances | 4,899 | 16,072 | |
Interest accrual | 7,055 | 14,664 | |
Benefit payments | 0 | 0 | |
Net premiums collected | 0 | 0 | |
Derecognition (lapses) | (19,501) | (40,327) | |
Ending balance at original discount rate | 333,565 | 342,453 | |
Effect of changes in discount rate assumptions | (24,331) | (23,776) | |
Ending balance, liability for future policy benefit | $ 309,234 | $ 318,677 |
Policyholder Liabilities (Summa
Policyholder Liabilities (Summary of Liability For Future Policy Benefits Activity) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Liability for Future Policy Benefit, Activity [Line Items] | ||
Policy benefit reserves | $ 309,234 | $ 318,677 |
Deferred profit liability | 19,926 | 19,223 |
Liability for future policy benefits and defered profit liability | 329,160 | 337,900 |
Less: Reinsurance recoverable | (1,639) | (1,259) |
Net liability for future policy benefits, after reinsurance recoverable | $ 327,521 | $ 336,641 |
Interest accretion rate | 4.26% | 4.25% |
Current discount rate | 5.46% | 5.37% |
SPIA With Life Contingency | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Weighted-average liability duration of the liability for future policy benefits (years) | 7 years 1 month 17 days | 6 years 9 months 10 days |
Expected future benefit payments | $ 453,722 | $ 467,627 |
Expected future gross premiums | 0 | 0 |
Gross premiums or assessments | 5,233 | 16,994 |
Interest expense | $ 7,023 | $ 14,613 |
Policyholder Liabilities (Sch_2
Policyholder Liabilities (Schedule of Changes in the Liability for Market Risk Benefits) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Market Risk Benefit Liability | |||
Beginning balance, market risk benefit | $ 2,225,621 | ||
Ending balance, market risk benefit | 2,438,802 | $ 2,225,621 | |
Fixed Rate Annuities | |||
Market Risk Benefit Liability | |||
Beginning balance, market risk benefit | 37,863 | 78,411 | |
Balance, beginning of period, before effect of changes in the instrument-specific credit risk | 44,355 | 77,731 | |
Issuances | 0 | 376 | |
Interest accrual | 1,313 | 1,349 | |
Attributed fees collected | 584 | 1,270 | |
Benefits payments | 0 | 0 | |
Effect of changes in interest rates | 372 | (19,421) | |
Effect of changes in equity markets | 0 | 0 | |
Effect of changes in equity index volatility | 0 | 0 | |
Actual policyholder behavior different from expected behavior | 0 | 0 | |
Effect of changes in future expected policyholder behavior | 1,127 | 602 | |
Effect of changes in other future expected assumptions | 0 | (17,552) | |
Balance, end of period, before effect of changes in the instrument-specific credit | 47,751 | 44,355 | |
Effect of changes in the instrument-specific credit risk | (6,272) | (6,492) | |
Ending balance, market risk benefit | 41,479 | 37,863 | |
Reinsured MRB, end of period | 11,326 | 10,656 | $ 0 |
Balance, end of period, net of reinsurance | 30,153 | 27,207 | |
Net amount at risk (a) | $ 266,173 | $ 258,826 | |
Weighted average attained age of contract holders (years) | 70 years | 69 years | |
Fixed Index Annuities | |||
Market Risk Benefit Liability | |||
Beginning balance, market risk benefit | $ 2,187,758 | $ 2,557,378 | |
Balance, beginning of period, before effect of changes in the instrument-specific credit risk | 2,453,169 | 2,310,437 | |
Issuances | 161,757 | 59,452 | |
Interest accrual | 78,354 | 72,551 | |
Attributed fees collected | 60,972 | 125,168 | |
Benefits payments | 0 | 0 | |
Effect of changes in interest rates | 8,175 | (952,265) | |
Effect of changes in equity markets | (66,590) | 186,618 | |
Effect of changes in equity index volatility | (63,759) | 241,563 | |
Actual policyholder behavior different from expected behavior | 0 | 0 | |
Effect of changes in future expected policyholder behavior | 1,972 | 46,567 | |
Effect of changes in other future expected assumptions | 0 | 363,078 | |
Balance, end of period, before effect of changes in the instrument-specific credit | 2,634,050 | 2,453,169 | |
Effect of changes in the instrument-specific credit risk | (236,727) | (265,411) | |
Ending balance, market risk benefit | 2,397,323 | 2,187,758 | |
Reinsured MRB, end of period | 702,398 | 593,959 | $ 156,931 |
Balance, end of period, net of reinsurance | 1,694,925 | 1,593,799 | |
Net amount at risk (a) | $ 11,575,916 | $ 10,987,198 | |
Weighted average attained age of contract holders (years) | 71 years | 71 years |
Policyholder Liabilities (Recon
Policyholder Liabilities (Reconciliation of Market Risk Benefits in an Asset Position and in a Liability Position) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Market Risk Benefit [Line Items] | ||||
MRB asset balance | $ 234,470 | $ 229,871 | [1] | |
MRB liability balance | 2,673,272 | 2,455,492 | [1] | |
Net liability | 2,438,802 | 2,225,621 | ||
Fixed Index Annuities | ||||
Market Risk Benefit [Line Items] | ||||
MRB asset balance | 231,005 | 226,294 | ||
MRB liability balance | 2,628,328 | 2,414,052 | ||
Net liability | 2,397,323 | 2,187,758 | $ 2,557,378 | |
Fixed Rate Annuities | ||||
Market Risk Benefit [Line Items] | ||||
MRB asset balance | 3,465 | 3,577 | ||
MRB liability balance | 44,944 | 41,440 | ||
Net liability | $ 41,479 | $ 37,863 | $ 78,411 | |
[1] Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. |
Policyholder Liabilities (Sch_3
Policyholder Liabilities (Schedule of Reinsured Market Risk Benefits) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Fixed Rate Annuities | ||
Market Risk Benefit Liability | ||
Balance, beginning of period | $ 10,656 | $ 0 |
Write-off related to in-force ceded reinsurance | 0 | 10,091 |
Issuances | 0 | 0 |
Interest accrual | 286 | 104 |
Attributed fees collected | 19 | 28 |
Benefits payments | 0 | 0 |
Effect of changes in interest rates | 154 | 135 |
Effect of changes in equity markets | 0 | 118 |
Effect of changes in equity index volatility | 0 | 0 |
Actual policyholder behavior different from expected behavior | 0 | 0 |
Effect of changes in future expected policyholder behavior | 211 | 180 |
Effect of changes in other future expected assumptions | 0 | 0 |
Balance, end of period | 11,326 | 10,656 |
Net amount at risk (a) | $ 74,282 | $ 72,350 |
Weighted average attained age of contract holders (years) | 70 years | 70 years |
Fixed Index Annuities | ||
Market Risk Benefit Liability | ||
Balance, beginning of period | $ 593,959 | $ 156,931 |
Write-off related to in-force ceded reinsurance | 0 | 334,835 |
Issuances | 114,216 | 36,036 |
Interest accrual | 16,447 | 7,598 |
Attributed fees collected | 13,451 | 23,745 |
Benefits payments | 0 | 0 |
Effect of changes in interest rates | 4,455 | (171,948) |
Effect of changes in equity markets | (29,194) | 43,799 |
Effect of changes in equity index volatility | (12,929) | 34,278 |
Actual policyholder behavior different from expected behavior | 0 | 0 |
Effect of changes in future expected policyholder behavior | 1,993 | 12,598 |
Effect of changes in other future expected assumptions | 0 | 116,087 |
Balance, end of period | 702,398 | 593,959 |
Net amount at risk (a) | $ 2,761,134 | $ 2,402,964 |
Weighted average attained age of contract holders (years) | 70 years | 71 years |
Policyholder Liabilities (Sch_4
Policyholder Liabilities (Schedule of Reconciliation of Reinsurance Market Risk Benefits by Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Market Risk Benefit [Line Items] | ||
Asset | $ 756,469 | $ 640,681 |
Liability | 42,745 | 36,066 |
Net asset | 713,724 | 604,615 |
Fixed Index Annuities | ||
Market Risk Benefit [Line Items] | ||
Asset | 744,734 | 629,611 |
Liability | 42,336 | 35,652 |
Net asset | 702,398 | 593,959 |
Fixed Rate Annuities | ||
Market Risk Benefit [Line Items] | ||
Asset | 11,735 | 11,070 |
Liability | 409 | 414 |
Net asset | $ 11,326 | $ 10,656 |
Policyholder Liabilities (Signi
Policyholder Liabilities (Significant Inputs and Assumptions) (Details) $ in Thousands | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Market Risk Benefit [Line Items] | ||
Market risk benefits | $ 2,438,802 | $ 2,225,621 |
Ceded market risk benefits | $ 713,724 | $ 604,615 |
Minimum | Utilization | Discounted cash flow | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.0004 | 0.0004 |
Minimum | Option Budget | Discounted cash flow | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.0165 | 0.0165 |
Minimum | Risk-Free Interest Rate | Discounted cash flow | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.0252 | 0.0251 |
Minimum | Nonperformance Risk | Discounted cash flow | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.0053 | 0.0006 |
Maximum | Utilization | Discounted cash flow | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.7875 | 0.7875 |
Maximum | Option Budget | Discounted cash flow | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.0250 | 0.0250 |
Maximum | Risk-Free Interest Rate | Discounted cash flow | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.0538 | 0.0490 |
Maximum | Nonperformance Risk | Discounted cash flow | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.0310 | 0.0327 |
Weighted Average | Utilization | Discounted cash flow | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.0412 | 0.0424 |
Weighted Average | Option Budget | Discounted cash flow | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.0232 | 0.0231 |
Weighted Average | Risk-Free Interest Rate | Discounted cash flow | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.0327 | 0.0331 |
Weighted Average | Nonperformance Risk | Discounted cash flow | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.0254 | 0.0259 |
Policyholder Liabilities (Chang
Policyholder Liabilities (Changes in Policyholder Account Balances) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Policyholder Account Balance [Roll Forward] | ||
Policyholder account balance, beginning balance | $ 58,781,836 | |
Policyholder account balance, ending balance | 59,856,677 | $ 58,781,836 |
Fixed Rate Annuities | ||
Policyholder Account Balance [Roll Forward] | ||
Policyholder account balance, beginning balance | 6,589,577 | 6,860,060 |
Issuances | 534,191 | 159,570 |
Premiums received | 618 | 4,811 |
Policy charges | (3,655) | (6,587) |
Surrenders and withdrawals | (443,810) | (574,590) |
Benefit payments | (6,542) | (11,328) |
Interest credited | 80,653 | 151,762 |
Other | (4,667) | 5,879 |
Policyholder account balance, ending balance | $ 6,746,365 | $ 6,589,577 |
Weighted-average crediting rate | 2.43% | 2.28% |
Net amount at risk (a) | $ 266,173 | $ 258,826 |
Cash surrender value | 6,354,283 | 6,208,597 |
Fixed Index Annuities | ||
Policyholder Account Balance [Roll Forward] | ||
Policyholder account balance, beginning balance | 53,826,234 | 55,003,305 |
Issuances | 2,763,039 | 3,001,738 |
Premiums received | 74,613 | 170,493 |
Policy charges | (163,063) | (272,604) |
Surrenders and withdrawals | (2,392,211) | (3,945,504) |
Benefit payments | (404,942) | (727,847) |
Interest credited | 339,864 | 599,259 |
Other | (3,296) | (2,606) |
Policyholder account balance, ending balance | $ 54,040,238 | $ 53,826,234 |
Weighted-average crediting rate | 1.26% | 1.11% |
Net amount at risk (a) | $ 11,575,916 | $ 10,987,198 |
Cash surrender value | $ 49,813,318 | $ 49,551,657 |
Policyholder Liabilities (Rec_2
Policyholder Liabilities (Reconciliation of Policyholders’ Account Balances to the Policyholders’ Account Balances’ Liability) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | $ 59,856,677 | $ 58,781,836 | |
Embedded derivative adjustment | (1,284,548) | (1,996,640) | |
Policy benefit reserves | 309,234 | 318,677 | |
Deferred profit liability | 19,926 | 19,223 | |
Fixed Index Annuities | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 54,040,238 | 53,826,234 | $ 55,003,305 |
Fixed Rate Annuities | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 6,746,365 | 6,589,577 | $ 6,860,060 |
Other | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | $ 25,462 | $ 24,765 |
Policyholder Liabilities (Accou
Policyholder Liabilities (Account Balances by Guaranteed Minimum Interest Rates) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | $ 59,856,677 | $ 58,781,836 | |
Fixed Index Annuities | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 54,040,238 | 53,826,234 | $ 55,003,305 |
Allocated to index strategies | 45,203,494 | 45,550,513 | |
Fixed Index Annuities | 0.00% - 0.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | $ 1,813,828 | $ 1,184,711 | |
Fixed Index Annuities | 0.00% - 0.50% | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 0% | 0% | |
Fixed Index Annuities | 0.00% - 0.50% | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 0.50% | 0.50% | |
Fixed Index Annuities | 0.50% - 1.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | $ 5,884,830 | $ 5,857,020 | |
Fixed Index Annuities | 0.50% - 1.00% | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 0.50% | 0.50% | |
Fixed Index Annuities | 0.50% - 1.00% | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 1% | 1% | |
Fixed Index Annuities | 1.00% - 1.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | $ 57,495 | $ 60,977 | |
Fixed Index Annuities | 1.00% - 1.50% | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 1% | 1% | |
Fixed Index Annuities | 1.00% - 1.50% | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 1.50% | 1.50% | |
Fixed Index Annuities | 1.50% - 2.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | $ 50 | $ 57 | |
Fixed Index Annuities | 1.50% - 2.00% | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 1.50% | 1.50% | |
Fixed Index Annuities | 1.50% - 2.00% | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 2% | 2% | |
Fixed Index Annuities | 2.00% - 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | $ 215,004 | $ 233,272 | |
Fixed Index Annuities | 2.00% - 2.50% | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 2% | 2% | |
Fixed Index Annuities | 2.00% - 2.50% | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 2.50% | 2.50% | |
Fixed Index Annuities | 2.50% - 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | $ 865,537 | $ 939,684 | |
Fixed Index Annuities | 2.50% - 3.00% | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 2.50% | 2.50% | |
Fixed Index Annuities | 2.50% - 3.00% | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 3% | 3% | |
Fixed Index Annuities | Greater than 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | $ 0 | $ 0 | |
Fixed Index Annuities | Greater than 3.00% | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 3% | 3% | |
Fixed Index Annuities | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | $ 3,512,986 | $ 3,546,181 | |
Fixed Index Annuities | At guaranteed minimum | 0.00% - 0.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 0 | 0 | |
Fixed Index Annuities | At guaranteed minimum | 0.50% - 1.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 2,470,011 | 2,421,795 | |
Fixed Index Annuities | At guaranteed minimum | 1.00% - 1.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 48,145 | 51,586 | |
Fixed Index Annuities | At guaranteed minimum | 1.50% - 2.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 50 | 57 | |
Fixed Index Annuities | At guaranteed minimum | 2.00% - 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 129,460 | 133,059 | |
Fixed Index Annuities | At guaranteed minimum | 2.50% - 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 865,320 | 939,684 | |
Fixed Index Annuities | At guaranteed minimum | Greater than 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 0 | 0 | |
Fixed Index Annuities | 1 to 50 | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 1,883,278 | 1,670,284 | |
Fixed Index Annuities | 1 to 50 | 0.00% - 0.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 695,154 | 462,356 | |
Fixed Index Annuities | 1 to 50 | 0.50% - 1.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 1,093,223 | 1,098,332 | |
Fixed Index Annuities | 1 to 50 | 1.00% - 1.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 9,350 | 9,391 | |
Fixed Index Annuities | 1 to 50 | 1.50% - 2.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 0 | 0 | |
Fixed Index Annuities | 1 to 50 | 2.00% - 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 85,536 | 100,205 | |
Fixed Index Annuities | 1 to 50 | 2.50% - 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 15 | 0 | |
Fixed Index Annuities | 1 to 50 | Greater than 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 0 | 0 | |
Fixed Index Annuities | 51 to 150 | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 2,679,319 | 2,666,426 | |
Fixed Index Annuities | 51 to 150 | 0.00% - 0.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 464,407 | 407,426 | |
Fixed Index Annuities | 51 to 150 | 0.50% - 1.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 2,214,702 | 2,258,992 | |
Fixed Index Annuities | 51 to 150 | 1.00% - 1.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 0 | 0 | |
Fixed Index Annuities | 51 to 150 | 1.50% - 2.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 0 | 0 | |
Fixed Index Annuities | 51 to 150 | 2.00% - 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 8 | 8 | |
Fixed Index Annuities | 51 to 150 | 2.50% - 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 202 | 0 | |
Fixed Index Annuities | 51 to 150 | Greater than 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 0 | 0 | |
Fixed Index Annuities | Greater than 150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 761,161 | 392,830 | |
Fixed Index Annuities | Greater than 150 basis points above | 0.00% - 0.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 654,267 | 314,929 | |
Fixed Index Annuities | Greater than 150 basis points above | 0.50% - 1.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 106,894 | 77,901 | |
Fixed Index Annuities | Greater than 150 basis points above | 1.00% - 1.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 0 | 0 | |
Fixed Index Annuities | Greater than 150 basis points above | 1.50% - 2.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 0 | 0 | |
Fixed Index Annuities | Greater than 150 basis points above | 2.00% - 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 0 | 0 | |
Fixed Index Annuities | Greater than 150 basis points above | 2.50% - 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 0 | 0 | |
Fixed Index Annuities | Greater than 150 basis points above | Greater than 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 0 | 0 | |
Fixed Rate Annuities | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 6,746,365 | 6,589,577 | $ 6,860,060 |
Fixed Rate Annuities | 0.00% - 0.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | $ 148 | $ 61 | |
Fixed Rate Annuities | 0.00% - 0.50% | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 0% | 0% | |
Fixed Rate Annuities | 0.00% - 0.50% | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 0.50% | 0.50% | |
Fixed Rate Annuities | 0.50% - 1.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | $ 5,192,928 | $ 4,961,020 | |
Fixed Rate Annuities | 0.50% - 1.00% | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 0.50% | 0.50% | |
Fixed Rate Annuities | 0.50% - 1.00% | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 1% | 1% | |
Fixed Rate Annuities | 1.00% - 1.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | $ 458,722 | $ 454,959 | |
Fixed Rate Annuities | 1.00% - 1.50% | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 1% | 1% | |
Fixed Rate Annuities | 1.00% - 1.50% | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 1.50% | 1.50% | |
Fixed Rate Annuities | 1.50% - 2.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | $ 631,558 | $ 655,703 | |
Fixed Rate Annuities | 1.50% - 2.00% | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 1.50% | 1.50% | |
Fixed Rate Annuities | 1.50% - 2.00% | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 2% | 2% | |
Fixed Rate Annuities | 2.00% - 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | $ 19,272 | $ 21,909 | |
Fixed Rate Annuities | 2.00% - 2.50% | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 2% | 2% | |
Fixed Rate Annuities | 2.00% - 2.50% | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 2.50% | 2.50% | |
Fixed Rate Annuities | 2.50% - 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | $ 392,519 | $ 441,459 | |
Fixed Rate Annuities | 2.50% - 3.00% | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 2.50% | 2.50% | |
Fixed Rate Annuities | 2.50% - 3.00% | Maximum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 3% | 3% | |
Fixed Rate Annuities | Greater than 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | $ 51,218 | $ 54,466 | |
Fixed Rate Annuities | Greater than 3.00% | Minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance, guaranteed minimum credit rating | 3% | 3% | |
Fixed Rate Annuities | At guaranteed minimum | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | $ 1,332,799 | $ 1,302,336 | |
Fixed Rate Annuities | At guaranteed minimum | 0.00% - 0.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 148 | 61 | |
Fixed Rate Annuities | At guaranteed minimum | 0.50% - 1.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 54,489 | 55,458 | |
Fixed Rate Annuities | At guaranteed minimum | 1.00% - 1.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 458,488 | 454,728 | |
Fixed Rate Annuities | At guaranteed minimum | 1.50% - 2.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 363,889 | 281,694 | |
Fixed Rate Annuities | At guaranteed minimum | 2.00% - 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 19,249 | 21,887 | |
Fixed Rate Annuities | At guaranteed minimum | 2.50% - 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 385,318 | 434,042 | |
Fixed Rate Annuities | At guaranteed minimum | Greater than 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 51,218 | 54,466 | |
Fixed Rate Annuities | 1 to 50 | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 226,742 | 307,960 | |
Fixed Rate Annuities | 1 to 50 | 0.00% - 0.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 0 | 0 | |
Fixed Rate Annuities | 1 to 50 | 0.50% - 1.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 185,377 | 203,523 | |
Fixed Rate Annuities | 1 to 50 | 1.00% - 1.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 234 | 231 | |
Fixed Rate Annuities | 1 to 50 | 1.50% - 2.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 33,907 | 96,767 | |
Fixed Rate Annuities | 1 to 50 | 2.00% - 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 23 | 22 | |
Fixed Rate Annuities | 1 to 50 | 2.50% - 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 7,201 | 7,417 | |
Fixed Rate Annuities | 1 to 50 | Greater than 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 0 | 0 | |
Fixed Rate Annuities | 51 to 150 | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 4,193,905 | 4,277,256 | |
Fixed Rate Annuities | 51 to 150 | 0.00% - 0.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 0 | 0 | |
Fixed Rate Annuities | 51 to 150 | 0.50% - 1.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 3,960,356 | 4,000,203 | |
Fixed Rate Annuities | 51 to 150 | 1.00% - 1.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 0 | 0 | |
Fixed Rate Annuities | 51 to 150 | 1.50% - 2.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 233,549 | 277,053 | |
Fixed Rate Annuities | 51 to 150 | 2.00% - 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 0 | 0 | |
Fixed Rate Annuities | 51 to 150 | 2.50% - 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 0 | 0 | |
Fixed Rate Annuities | 51 to 150 | Greater than 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 0 | 0 | |
Fixed Rate Annuities | Greater than 150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 992,919 | 702,025 | |
Fixed Rate Annuities | Greater than 150 basis points above | 0.00% - 0.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 0 | 0 | |
Fixed Rate Annuities | Greater than 150 basis points above | 0.50% - 1.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 992,706 | 701,836 | |
Fixed Rate Annuities | Greater than 150 basis points above | 1.00% - 1.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 0 | 0 | |
Fixed Rate Annuities | Greater than 150 basis points above | 1.50% - 2.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 213 | 189 | |
Fixed Rate Annuities | Greater than 150 basis points above | 2.00% - 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 0 | 0 | |
Fixed Rate Annuities | Greater than 150 basis points above | 2.50% - 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | 0 | 0 | |
Fixed Rate Annuities | Greater than 150 basis points above | Greater than 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Policyholder account balance | $ 0 | $ 0 |
Notes and Loan Payable (Schedul
Notes and Loan Payable (Schedule of Notes and Loan Payable) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 16, 2017 | |
Debt Instrument [Line Items] | ||||
Notes and loans payable | $ 788,754 | $ 792,073 | [1] | |
June 2027 Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | 500,000 | 500,000 | $ 500,000 | |
Unamortized debt issue costs | (2,661) | (2,960) | ||
Unamortized discount | (160) | (178) | $ (300) | |
Term Loan Due 2027 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | 300,000 | 300,000 | ||
Unamortized debt issue costs | (925) | (1,039) | ||
Principal paydown | $ (7,500) | $ (3,750) | ||
[1] Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. |
Notes and Loan Payable (2027 No
Notes and Loan Payable (2027 Notes Narrative) (Details) - June 2027 Notes - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 16, 2017 |
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 500,000 | $ 500,000 | $ 500,000 |
Interest rate | 5% | ||
Unamortized discount | $ 160 | $ 178 | $ 300 |
Debt financing costs | $ 5,800 |
Notes and Loan Payable (Term Lo
Notes and Loan Payable (Term Loan Narrative) (Details) - Term Loan Due 2027 $ in Millions | Feb. 15, 2022 USD ($) | Jun. 30, 2023 | Jul. 06, 2022 USD ($) |
Debt Instrument [Line Items] | |||
Debt instrument, term | 5 years | ||
Debt instrument, maximum borrowing capacity | $ 300 | ||
Debt instrument, face amount | $ 300 | ||
Years 1 - 3 | |||
Debt Instrument [Line Items] | |||
Term note, annual principal repayment rate | 0.025 | ||
Years 4 - 5 | |||
Debt Instrument [Line Items] | |||
Term note, annual principal repayment rate | 0.050 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Other Commitments [Line Items] | |
FHLB funding agreements outstanding | $ 0 |
Limited Partnerships | |
Other Commitments [Line Items] | |
Unfunded commitments | 794,700 |
Fixed Maturity Securities | |
Other Commitments [Line Items] | |
Unfunded commitments | 1,100,000 |
Other Investments | |
Other Commitments [Line Items] | |
Unfunded commitments | 52,300 |
Asset Pledged as Collateral without Right | Federal Home Loan Bank Advances | |
Other Commitments [Line Items] | |
Fixed maturity security investments pledged for FHLB | $ 1,500,000 |
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 | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |||
Earnings Per Share, Basic and Diluted [Line Items] | ||||||
Net income available to common stockholders - numerator for earnings per common share | $ 344,444 | $ 752,374 | [1] | $ 177,531 | $ 1,420,920 | [1] |
Weighted average common shares outstanding (shares) | 77,766,851 | 92,543,850 | [1] | 80,576,301 | 94,693,048 | [1] |
Denominator for earnings per common share - assuming dilution (shares) | 78,927,958 | 93,374,738 | [1] | 81,824,056 | 95,652,085 | [1] |
Earnings per common share (dollars per share) | $ 4.43 | $ 8.13 | [1] | $ 2.20 | $ 15.01 | [1] |
Earnings per common share - assuming dilution (dollars per share) | $ 4.36 | $ 8.06 | [1] | $ 2.17 | $ 14.86 | [1] |
Share-Based Payment Arrangement | ||||||
Earnings Per Share, Basic and Diluted [Line Items] | ||||||
Antidilutive securities excluded from computation of diluted earnings per common share, amount (shares) | 0 | 0 | 0 | 0 | ||
Stock options and deferred compensation agreements | ||||||
Earnings Per Share, Basic and Diluted [Line Items] | ||||||
Effect of dilutive securities: share-based payment arrangements (shares) | 499,921 | 487,883 | 548,520 | 550,073 | ||
Restricted stock and restricted stock units | ||||||
Earnings Per Share, Basic and Diluted [Line Items] | ||||||
Effect of dilutive securities: share-based payment arrangements (shares) | 661,186 | 343,005 | 699,235 | 408,964 | ||
[1] Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. |
Earnings Per Common Share and_4
Earnings Per Common Share and Stockholders' Equity (Stockholders' Equity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jun. 10, 2020 | Nov. 21, 2019 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |||
Class of Stock [Line Items] | |||||||||
Dividends paid on preferred stock | $ 10,919 | $ 10,919 | [1] | $ 21,838 | $ 21,838 | [1] | |||
Depositary Shares, each representing a 1/1,000th interest in a share of 6.625% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series B | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred stock, shares issued (in shares) | 12,000 | 12,000 | 12,000 | 12,000 | |||||
Preferred stock, dividend rate, percentage | 6.625% | ||||||||
Preferred stock, par value per share (dollars per share) | $ 1 | $ 1 | $ 1 | $ 1 | |||||
Preferred stock, liquidation preference, per share (dollars per share) | $ 25,000 | ||||||||
Proceeds from issuance of preferred stock, net | $ 290,300 | ||||||||
Dividends paid on preferred stock | $ 4,900 | 4,900 | $ 9,900 | 9,900 | |||||
Depositary Shares, each representing a 1/1,000th interest in a share of 5.95% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series A | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred stock, shares issued (in shares) | 16,000 | 16,000 | 16,000 | 16,000 | |||||
Preferred stock, dividend rate, percentage | 5.95% | ||||||||
Preferred stock, par value per share (dollars per share) | $ 1 | $ 1 | $ 1 | $ 1 | |||||
Preferred stock, liquidation preference, per share (dollars per share) | $ 25,000 | ||||||||
Proceeds from issuance of preferred stock, net | $ 388,900 | ||||||||
Dividends paid on preferred stock | $ 6,000 | $ 6,000 | $ 11,900 | $ 11,900 | |||||
[1] Certain prior period amounts have been recast. See Note 1 - Significant Accounting Policies for more information. |
Earnings Per Common Share and_5
Earnings Per Common Share and Stockholders' Equity (Brookfield) (Details) | Jan. 31, 2022 $ / shares shares | Nov. 30, 2020 candidate $ / shares shares | Oct. 18, 2020 stage |
Third party equity investment, number of stages | stage | 2 | ||
Third party ownership interest in Company's common stock | 16% | ||
Number of Board of Directors seats third party received right to nominate following initial equity investment | candidate | 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 (in dollars per share) | $ / shares | $ 37 | ||
Third party ownership interest in Company's common stock, shares (in shares) | shares | 9,106,042 | ||
Second Purchase | |||
Third party ownership interest in Company's common stock, price per share (in dollars per share) | $ / shares | $ 37.33 | ||
Third party ownership interest in Company's common stock, shares (in 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 | 6 Months Ended | 32 Months Ended | |||||
Mar. 17, 2023 | Jun. 30, 2023 | Jun. 30, 2023 | Jul. 13, 2023 | Dec. 31, 2022 | Nov. 11, 2022 | Nov. 19, 2021 | |
Class of Stock [Line Items] | |||||||
Share repurchase program, authorized amount | $ 400 | $ 500 | |||||
Treasury stock acquired, shares (in shares) | 2,400,000 | 31,200,000 | |||||
Treasury stock acquired, average price per common share (in dollars per share) | $ 34.76 | ||||||
Stock repurchase program, remaining authorized repurchase amount | $ 276 | $ 276 | |||||
Treasury stock, shares (in shares) | 31,713,969 | 31,713,969 | 24,590,353 | ||||
Treasury stock, carrying value | $ 1,072.2 | $ 1,072.2 | $ 823.1 | ||||
Accelerated Share Repurchase (ASR) | |||||||
Class of Stock [Line Items] | |||||||
Share repurchase program, authorized amount | $ 200 | ||||||
Treasury stock acquired, shares (in shares) | 4,800,000 | ||||||
Treasury stock, acquired, percentage | 80% | ||||||
Treasury stock acquired, average price per common share (in dollars per share) | $ 33.12 | ||||||
Accelerated Share Repurchase (ASR) | Subsequent Event | |||||||
Class of Stock [Line Items] | |||||||
Accelerated share repurchases, settlement (payment) or receipt | $ 14 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - Brookfield Reinsurance Ltd. - Forecast $ / shares in Units, $ in Millions | Dec. 31, 2023 USD ($) $ / shares |
Subsequent Event [Line Items] | |
Business acquisition, share price (in dollars per share) | $ 38.85 |
Business combination, weighted average share price, exchange ratio adjustment, duration | 10 days |
Business acquisition, termination fee | $ | $ 102 |
Minimum | |
Subsequent Event [Line Items] | |
Business acquisition, total consideration, share price (in dollars per share) | $ 54 |
Maximum | |
Subsequent Event [Line Items] | |
Business acquisition, total consideration, share price (in dollars per share) | $ 56.50 |