Document and Entity Information
Document and Entity Information | Aug. 09, 2023 |
Entity Information [Line Items] | |
Document Type | 8-K |
Document Period End Date | Aug. 09, 2023 |
Entity Registrant Name | AMERICAN EQUITY INVESTMENT LIFE HOLDING CO |
Entity Incorporation, State or Country Code | IA |
Entity File Number | 001-31911 |
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 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001039828 |
Amendment Flag | false |
Common Stock | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common stock, par value $1 |
Trading Symbol | AEL |
Security Exchange Name | NYSE |
Preferred Stock, Series A | |
Entity Information [Line Items] | |
Title of 12(b) Security | Depositary Shares, each representing a 1/1,000th interest in a share of 5.95% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series A |
Trading Symbol | AELPRA |
Security Exchange Name | NYSE |
Preferred Stock, Series B | |
Entity Information [Line Items] | |
Title of 12(b) Security | Depositary Shares, each representing a 1/1,000th interest in a share of 6.625% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series B |
Trading Symbol | AELPRB |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investments: | ||
Fixed maturity securities, available for sale, at fair value (amortized cost of $44,866,019 as of 2022 and $46,999,183 as of 2021; allowance for credit losses of $3,347 as of 2022 and $2,846 as of 2021) | $ 39,804,617 | $ 51,305,943 |
Mortgage loans on real estate (net of allowance for credit losses of $36,972 as of 2022 and $24,024 as of 2021) | 6,949,027 | 5,687,998 |
Limited partnerships and limited liability companies (2022 and 2021 include $684,834 and $168,711 related to consolidated variable interest entities) | 1,266,779 | 520,120 |
Derivative instruments | 431,727 | 1,277,480 |
Other investments | 1,817,085 | 1,247,024 |
Total investments | 51,325,298 | 60,376,504 |
Cash and cash equivalents (2022 and 2021 include $27,235 and $23,763 related to consolidated variable interest entities) | 1,919,669 | 4,508,982 |
Coinsurance deposits (net of allowance for credit losses of $8,737 as of 2022 and $2,264 as of 2021) | 13,254,956 | 8,988,891 |
Market risk benefits | 229,871 | 526,373 |
Accrued investment income (2022 and 2021 include $3,444 and $3 related to consolidated variable interest entities) | 497,851 | 445,097 |
Deferred policy acquisition costs | 2,773,643 | 3,062,204 |
Deferred sales inducements | 2,045,683 | 2,119,962 |
Deferred income taxes | 438,434 | 0 |
Income taxes recoverable | 55,498 | 166,586 |
Other assets (2022 and 2021 include $10,690 and $1,524 related to consolidated variable interest entities) | 642,696 | 349,023 |
Total assets | 73,183,599 | 80,543,622 |
Liabilities: | ||
Policy benefit reserves | 58,781,836 | 62,614,822 |
Market risk benefits | 2,455,492 | 3,162,162 |
Other policy funds and contract claims | 512,790 | 226,844 |
Notes and loan payable | 792,073 | 496,250 |
Subordinated debentures | 78,753 | 78,421 |
Deferred income taxes | 0 | 914,417 |
Funds withheld for reinsurance liabilities | 6,577,426 | 3,124,740 |
Other liabilities (2022 and 2021 include $78,644 and $20,168 related to consolidated variable interest entities) | 1,614,479 | 2,187,249 |
Total liabilities | 70,812,849 | 72,804,905 |
Stockholders' equity: | ||
Common stock; par value $1 per share; 200,000,000 shares authorized; issued and outstanding: 2022 - 84,810,255 shares (excluding 24,590,353 treasury shares); 2021 - 92,513,517 shares (excluding 9,936,715 treasury shares) | 84,810 | 92,514 |
Additional paid-in capital | 1,325,316 | 1,614,374 |
Accumulated other comprehensive income (loss) | (3,746,230) | 3,192,547 |
Retained earnings | 4,685,593 | 2,839,254 |
Total stockholders' equity attributable to American Equity Investment Life Holding Company | 2,349,517 | 7,738,717 |
Noncontrolling interests | 21,233 | 0 |
Total stockholders' equity | 2,370,750 | 7,738,717 |
Total liabilities and stockholders' equity | 73,183,599 | 80,543,622 |
Variable Interest Entities | ||
Investments: | ||
Real estate investments related to consolidated variable interest entities | 1,056,063 | 337,939 |
Limited partnerships and limited liability companies (2022 and 2021 include $684,834 and $168,711 related to consolidated variable interest entities) | 684,834 | 168,711 |
Cash and cash equivalents (2022 and 2021 include $27,235 and $23,763 related to consolidated variable interest entities) | 27,235 | 23,763 |
Accrued investment income (2022 and 2021 include $3,444 and $3 related to consolidated variable interest entities) | 3,444 | 3 |
Other assets (2022 and 2021 include $10,690 and $1,524 related to consolidated variable interest entities) | 10,690 | 1,524 |
Total assets | 1,782,266 | 531,940 |
Liabilities: | ||
Other liabilities (2022 and 2021 include $78,644 and $20,168 related to consolidated variable interest entities) | 78,644 | 20,168 |
Total liabilities | 78,644 | 20,168 |
Preferred Stock, Series A | ||
Stockholders' equity: | ||
Preferred stock | 16 | 16 |
Preferred Stock, Series B | ||
Stockholders' equity: | ||
Preferred stock | $ 12 | $ 12 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Fixed maturity securities, available for sale, amortized cost | [1] | $ 44,866,019 | $ 46,999,183 |
Fixed maturity securities, available for sale, allowance for credit losses | 3,347 | 2,846 | |
Mortgage loans on real estate, allowance for credit losses | 36,972 | 24,024 | |
Limited partnerships and limited liability companies | 1,266,779 | 520,120 | |
Cash and cash equivalents | 1,919,669 | 4,508,982 | |
Coinsurance deposits, allowance for credit losses | 8,737 | 2,264 | |
Accrued investment income | 497,851 | 445,097 | |
Other assets | 642,696 | 349,023 | |
Other liabilities | $ 1,614,479 | $ 2,187,249 | |
Stockholders' equity: | |||
Common stock, par value (dollars per share) | $ 1 | $ 1 | |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 | |
Common stock, shares issued (in shares) | 84,810,255 | 92,513,517 | |
Common stock, shares outstanding (in shares) | 84,810,255 | 92,513,517 | |
Common stock, shares held in treasury (in shares) | 24,590,353 | 9,936,715 | |
Variable Interest Entities | |||
Limited partnerships and limited liability companies | $ 684,834 | $ 168,711 | |
Cash and cash equivalents | 27,235 | 23,763 | |
Accrued investment income | 3,444 | 3 | |
Other assets | 10,690 | 1,524 | |
Other liabilities | $ 78,644 | $ 20,168 | |
Preferred Stock, Series A | |||
Stockholders' equity: | |||
Preferred stock, par value (dollars per share) | $ 1 | $ 1 | |
Preferred stock, aggregate liquidation preference | $ 400,000 | $ 400,000 | |
Preferred stock, shares authorized (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 | |
Preferred Stock, Series B | |||
Stockholders' equity: | |||
Preferred stock, par value (dollars per share) | $ 1 | $ 1 | |
Preferred stock, aggregate liquidation preference | $ 300,000 | $ 300,000 | |
Preferred stock, shares authorized (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]Amortized cost excludes accrued interest receivable of $425.4 million and $400.7 million as of December 31, 2022 and 2021, respectively. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||
Premiums and other considerations | $ 19,739 | $ 58,202 | $ 39,382 |
Annuity product charges | 230,354 | 242,631 | 251,227 |
Net investment income | 2,307,463 | 2,037,475 | 2,182,078 |
Change in fair value of derivatives | (1,138,128) | 1,348,735 | 34,666 |
Net realized losses on investments | (47,848) | (13,242) | (80,680) |
Other revenue | 42,245 | 16,160 | 0 |
Loss on extinguishment of debt | 0 | 0 | (2,024) |
Total revenues | 1,413,825 | 3,689,961 | 2,424,649 |
Benefits, Losses and Expenses [Abstract] | |||
Insurance policy benefits and change in future policy benefits (remeasurement losses of future policy benefit reserves of $(1,959) for 2022 and $(1,907) for 2021) | 33,220 | 73,896 | 49,742 |
Interest sensitive and index product benefits | 554,871 | 2,231,567 | 1,543,270 |
Market risk benefits (gains) losses | 3,684 | 268,973 | 0 |
Amortization of deferred sales inducements | 181,970 | 191,884 | 438,164 |
Change in fair value of embedded derivatives | (2,352,598) | (358,302) | (1,286,787) |
Interest expense on notes and loan payable | 32,098 | 25,581 | 25,552 |
Interest expense on subordinated debentures | 5,331 | 5,324 | 5,557 |
Amortization of deferred policy acquisition costs | 284,011 | 306,370 | 649,554 |
Other operating costs and expenses | 239,526 | 241,882 | 183,636 |
Total benefits and expenses | (1,017,887) | 2,987,175 | 1,608,688 |
Income before income taxes | 2,431,712 | 702,786 | 815,961 |
Income tax expense | 511,135 | 149,763 | 144,501 |
Net income | 1,920,577 | 553,023 | 671,460 |
Less: Net income available to noncontrolling interests | 358 | 0 | 0 |
Net income available to American Equity Investment Life Holding Company stockholders | 1,920,219 | 553,023 | 671,460 |
Less: Preferred stock dividends | 43,675 | 43,675 | 33,515 |
Net income available to American Equity Investment Life Holding Company common stockholders | $ 1,876,544 | $ 509,348 | $ 637,945 |
Earnings per common share (in dollars per share) | $ 20.72 | $ 5.43 | $ 6.93 |
Earnings per common share - assuming dilution (in dollars per share) | $ 20.50 | $ 5.39 | $ 6.90 |
Weighted average common shares outstanding: earnings per common share (in shares) | 90,558,121 | 93,860,378 | 92,055,035 |
Weighted average common shares outstanding: earnings per common share - assuming dilution (in shares) | 91,538,128 | 94,491,159 | 92,392,496 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,920,577 | $ 553,023 | $ 671,460 | |
Other comprehensive income (loss): | ||||
Change in net unrealized investment gains/losses (1) | [1] | (9,361,135) | (978,461) | 1,058,289 |
Change in current discount rate for liability for future policy benefits | 73,091 | 19,065 | 0 | |
Changes in instrument-specific credit risk for market risk benefits | 519,525 | (18,514) | 0 | |
Reclassification of unrealized investment gains/losses to net income (1) | [1] | (13,893) | (8,973) | 16,690 |
Other comprehensive income (loss) before income tax | (8,782,412) | (986,883) | 1,074,979 | |
Income tax effect related to other comprehensive income (loss) | 1,843,635 | 207,353 | (225,746) | |
Other comprehensive income (loss) | (6,938,777) | (779,530) | 849,233 | |
Comprehensive income (loss) | $ (5,018,200) | $ (226,507) | $ 1,520,693 | |
[1]Net of related adjustments to amortization of deferred sales inducements, deferred policy acquisition costs and policy benefit reserves for 2020. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Preferred Stock | Common Stock | Preferred Stock | Preferred Stock Preferred Stock | Common Stock | Common Stock Common Stock | Additional Paid-in Capital | Additional Paid-in Capital Preferred Stock | Additional Paid-in Capital Common Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Noncontrolling Interest |
Stockholders' equity at beginning of period at Dec. 31, 2019 | $ 4,426,522 | $ 16 | $ 91,107 | $ 1,212,311 | $ 1,354,324 | $ 1,768,764 | $ 0 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net income | 671,460 | 671,460 | ||||||||||||||
Other comprehensive income (loss) | 849,233 | 849,233 | ||||||||||||||
Issuance of stock | $ 290,260 | $ 338,061 | $ 12 | $ 10,053 | $ 290,248 | $ 328,008 | ||||||||||
Share-based compensation | 10,215 | 10,215 | ||||||||||||||
Treasury stock acquired, common | (165,094) | (5,439) | (159,655) | |||||||||||||
Dividends on preferred stock | (33,515) | (33,515) | ||||||||||||||
Dividends on common stock | (28,859) | (28,859) | ||||||||||||||
Stockholders' equity at end of period at Dec. 31, 2020 | 6,348,988 | $ (9,295) | 28 | 95,721 | 1,681,127 | 2,203,557 | 2,368,555 | $ (9,295) | 0 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net income | 553,023 | 553,023 | ||||||||||||||
Other comprehensive income (loss) | (779,530) | (779,530) | ||||||||||||||
Issuance of stock | 4,854 | 460 | 4,394 | |||||||||||||
Share-based compensation | 24,601 | 24,601 | ||||||||||||||
Treasury stock acquired, common | (99,415) | (3,667) | (95,748) | |||||||||||||
Dividends on preferred stock | (43,675) | (43,675) | ||||||||||||||
Dividends on common stock | (31,450) | (31,450) | ||||||||||||||
Stockholders' equity at end of period at Dec. 31, 2021 | 7,738,717 | $ 1,761,321 | 28 | 92,514 | 1,614,374 | 3,192,547 | $ 1,768,520 | 2,839,254 | $ (7,199) | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net income | 1,920,577 | 1,920,219 | 358 | |||||||||||||
Other comprehensive income (loss) | (6,938,777) | (6,938,777) | ||||||||||||||
Issuance of stock | $ 253,978 | $ 7,112 | $ 246,866 | |||||||||||||
Share-based compensation | 15,827 | 15,827 | ||||||||||||||
Treasury stock acquired, common | (566,567) | (14,816) | (551,751) | |||||||||||||
Dividends on preferred stock | (43,675) | (43,675) | ||||||||||||||
Dividends on common stock | (30,205) | (30,205) | ||||||||||||||
Contributions from noncontrolling interests | 20,875 | 20,875 | ||||||||||||||
Stockholders' equity at end of period at Dec. 31, 2022 | $ 2,370,750 | $ 28 | $ 84,810 | $ 1,325,316 | $ (3,746,230) | $ 4,685,593 | $ 21,233 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends on common stock, per share amount (in dollars per share) | $ 0.36 | $ 0.34 | $ 0.32 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities | |||
Net income | $ 1,920,577 | $ 553,023 | $ 671,460 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Interest sensitive and index product benefits | 554,871 | 2,231,567 | 1,543,270 |
Amortization of deferred sales inducements | 181,970 | 191,884 | 438,164 |
Annuity product charges | (230,354) | (242,631) | (251,227) |
Change in fair value of embedded derivatives | (2,352,598) | (358,302) | (1,286,787) |
Change in traditional life and accident and health insurance reserves | (83,456) | 83,734 | 8,694 |
Policy acquisition costs deferred | (199,075) | (309,683) | (255,154) |
Amortization of deferred policy acquisition costs | 284,011 | 306,370 | 649,554 |
Provision for depreciation and other amortization | 14,185 | 5,527 | 5,199 |
Amortization of discounts and premiums on investments | 2,640 | 19,861 | 57,437 |
Loss on extinguishment of debt | 0 | 0 | 2,024 |
Realized gains/losses on investments | 47,848 | 13,242 | 80,680 |
Change in fair value of derivatives | 1,138,127 | (1,348,704) | (34,668) |
Distributions from equity method investments | 4,090 | 12,409 | 1,968 |
Deferred income taxes | 490,926 | 149,431 | 141,071 |
Share-based compensation | 15,827 | 24,601 | 10,215 |
Change in accrued investment income | (52,754) | (47,015) | 74,744 |
Change in income taxes recoverable/payable | 111,088 | (165,724) | (1,291) |
Change in other assets | 2,852 | (5,085) | (849) |
Change in other policy funds and contract claims | 279,936 | (19,809) | (21,865) |
Change in market risk benefits, net | (22,915) | 208,257 | 0 |
Change in collateral held for derivatives | (851,971) | 17,423 | (72,413) |
Change in collateral held for securities lending | 0 | 0 | (495,039) |
Change in funds withheld from reinsurers | 931,600 | 3,124,740 | 0 |
Change in other liabilities | 9,033 | (224,171) | 38,995 |
Other | (152,639) | 12,219 | 804 |
Net cash provided by operating activities | 2,043,819 | 4,233,164 | 1,304,986 |
Sales, maturities, or repayments of investments: | |||
Fixed maturity securities, available for sale | 9,691,210 | 4,490,736 | 8,291,316 |
Mortgage loans on real estate | 1,916,328 | 862,666 | 378,812 |
Derivative instruments | 584,055 | 2,260,959 | 860,520 |
Other investments | 739,027 | 368,837 | 4,324 |
Acquisitions of investments: | |||
Fixed maturity securities, available for sale | (8,894,629) | (9,206,733) | (2,429,114) |
Mortgage loans on real estate | (3,092,385) | (2,386,712) | (1,121,756) |
Real estate investments acquired | (724,484) | (335,767) | 0 |
Derivative instruments | (790,229) | (748,061) | (730,333) |
Other investments | (1,842,843) | (1,512,123) | (105,925) |
Purchases of property, furniture and equipment | (40,961) | (18,109) | (13,240) |
Net cash provided by (used in) investing activities | (2,454,911) | (6,224,307) | 5,134,604 |
Financing activities | |||
Receipts credited to annuity policyholder account balances | 3,316,221 | 5,910,024 | 3,648,936 |
Coinsurance deposits | (186,637) | (3,187,332) | 430,644 |
Return of annuity policyholder account balances | (5,257,487) | (5,145,193) | (4,040,054) |
Repayment of loan payable | (3,750) | 0 | 0 |
Proceeds from issuance of loan payable | 300,000 | 0 | 0 |
Repayment of subordinated debentures | 0 | 0 | (81,450) |
Proceeds from issuance of common stock, net | 253,978 | 4,854 | 338,061 |
Acquisition of treasury stock | (566,567) | (99,415) | (165,094) |
Proceeds from issuance of preferred stock, net | 0 | 0 | 290,260 |
Change in checks in excess of cash balance | 39,901 | (3,210) | 3,611 |
Dividends paid on common stock | (30,205) | (31,450) | (28,859) |
Dividends paid on preferred stock | (43,675) | (43,675) | (33,515) |
Net cash provided by (used in) financing activities | (2,178,221) | (2,595,397) | 362,540 |
Increase (decrease) in cash and cash equivalents | (2,589,313) | (4,586,540) | 6,802,130 |
Cash and cash equivalents at beginning of year | 4,508,982 | 9,095,522 | 2,293,392 |
Cash and cash equivalents at end of year | 1,919,669 | 4,508,982 | 9,095,522 |
Cash paid during the year for: | |||
Interest expense | 36,289 | 30,000 | 31,427 |
Income taxes | 4,873 | 165,537 | 4,842 |
Income tax refunds received | 98,644 | 0 | 0 |
Non-cash operating activity: | |||
Deferral of sales inducements | $ 107,691 | $ 95,161 | $ 93,610 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | ||
Remeasurement losses of future policy benefit reserves | $ (1,959) | $ (1,907) |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Nature of Operations American Equity Investment Life Holding Company ("we", "us", "our" or "parent company"), through its wholly-owned subsidiaries, American Equity Investment Life Insurance Company ("American Equity Life"), American Equity Investment Life Insurance Company of New York ("American Equity Life of New York") and Eagle Life Insurance Company ("Eagle Life"), is licensed to sell insurance products in 50 states and the District of Columbia at December 31, 2022. We operate solely in the insurance business. We market fixed index and fixed rate annuities. Annuity deposits (net of coinsurance) collected in 2022, 2021 and 2020, by product type were as follows: Year Ended December 31, Product Type 2022 2021 2020 (Dollars in thousands) Fixed index annuities $ 2,202,688 $ 3,026,211 $ 2,309,580 Annual reset fixed rate annuities 5,535 6,000 7,846 Multi-year fixed rate annuities 139,092 2,452,994 1,295,843 Single premium immediate annuities (SPIA) 18,935 59,816 33,461 $ 2,366,250 $ 5,545,021 $ 3,646,730 Agents contracted with us through four national marketing organizations accounted for more than 10% of annuity deposits we collected during 2022 representing 22%, 16%, 10%, and 10% individually, of the annuity deposits collected. Agents contracted with us through two national marketing organization accounted for more than 10% of annuity deposits we collected during 2021 representing 14% and 11%, individually, of the annuity deposits collected. Agents contracted with us through two national marketing organization accounted for more than 10% of annuity deposits we collected during 2020 representing 17% and 10%, individually, of the annuity deposits collected. Consolidation and Basis of Presentation The consolidated financial statements include our accounts and our wholly-owned subsidiaries: American Equity Life, American Equity Life of New York, Eagle Life, AERL, L.C., AE Capital, LLC., American Equity Investment Properties, L.C., High Trestle Investment Management, LLC., AEL RE Vermont, Inc., AEL Re Bermuda, Ltd, NC Securities Holdco, LLC, AEL Financial Services, LLC, and North Wolf Bay Holdings, LLC. All significant intercompany accounts and transactions have been eliminated. In addition, our consolidated financial statements include variable interest entities ("VIE"s) in which we are the primary beneficiary. We have relationships with various special purpose entities and other legal entities that must be evaluated to determine if the entities meet the criteria of a VIE. This assessment is performed by reviewing contractual, ownership and other rights and requires use of judgment. First, we determine if we hold a variable interest in an entity by assessing if we have the right to receive expected losses and expected residual returns of the entity. If we hold a variable interest, then the entity is assessed to determine if it is a VIE. An entity is a VIE if the equity at risk is not sufficient to support its activities, if the equity holders lack a controlling financial interest or if the entity is structured with non-substantive voting rights. In addition to the previous criteria, if the entity is a limited partnership or similar entity, it is a VIE if the limited partners do not have the power to direct the entity’s most significant activities through substantive kick-out rights or participating rights. A VIE is evaluated to determine the primary beneficiary. The primary beneficiary of a VIE is the enterprise with (1) the power to direct the activities of a VIE that most significantly impact the entity's economic performance and (2) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. When we are the primary beneficiary, we are required to consolidate the entity in our financial statements. We reassess our involvement with VIEs on a quarterly basis. For further information about VIEs, refer to Note 5 – Variable Interest Entities . Estimates and Assumptions The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions are utilized in the calculation of deferred policy acquisition costs, deferred sales inducements, policy benefit reserves, including the fair value of embedded derivatives in fixed index annuity contracts, market risk benefits, valuation of derivatives, valuation of investments, valuation of real estate, allowances for credit losses on available-for-sale fixed maturity securities, allowances for loan losses on mortgage loans and valuation allowances on deferred tax assets. A description of each critical estimate is incorporated within the discussion of the related accounting policies which follow. It is reasonably possible that actual experience could differ from the estimates and assumptions utilized. Investments Fixed maturity securities (bonds maturing more than one year after issuance) that may be sold prior to maturity are classified as available for sale. Available for sale securities are reported at fair value and unrealized gains and losses, if any, on these securities are included directly in a separate component of stockholders' equity, net of income taxes and certain adjustments for assumed changes in amortization of deferred policy acquisition costs, deferred sales inducements and policy benefit reserves. Fair values, as reported herein, of fixed maturity securities are based on quoted market prices in active markets when available, or for those fixed maturity securities not actively traded, yield data and other factors relating to instruments or securities with similar characteristics are used. See Note 2 - Fair Value of Financial Instruments for more information on the determination of fair value. Premiums and discounts are amortized/accrued using methods which result in a constant yield over the securities' expected lives. Amortization/accrual of premiums and discounts on residential and commercial mortgage backed securities incorporate prepayment assumptions to estimate the securities' expected lives. Interest income is recognized as earned. Available-for-sale fixed maturity securities are subject to an allowance for credit loss and changes in the allowance are reported in net income as a component of net realized losses on investments. See Note 3 - Investments for further discussion of the allowance for credit losses on available-for-sale fixed maturity securities. Mortgage loans on real estate are reported at cost adjusted for amortization of premiums and accrual of discounts and net of valuation allowances. Interest income is recorded when earned; however, interest ceases to accrue for loans on which interest is more than 90 days past due based upon contractual terms and/or when the collection of interest is not considered probable. Interest income on impaired loans is recorded on a cash basis. Any changes in the loan valuation allowances are reported in net realized losses on investments. See Note 4 - Mortgage Loans on Real Estate for further discussion of the valuation allowance on the mortgage loan portfolios. Beginning in 2021, we held residential real estate investments through consolidation of an investment company VIE. As this is an investment company VIE, the residential real estate investments are reported at fair value and the change in fair value on these investments is reported in net income as a component of net investment income. Fair values of residential real estate investments are initially based on the cost to purchase the properties and subsequently based on a discounted cash flow methodology. See Note 2 – Fair Values of Financial Instruments for more information on the determination of fair value. The residential real estate investments are leased to renters through operating lease arrangements. Rental income is recognized on a straight-line basis over the term of the respective leases. Beginning in 2022, we held a commercial real estate investment in the ultra-luxury hospitality sector through consolidation of a VIE that is not an investment company. The commercial real estate investment is held at depreciated cost and was initially held at the cost to purchase the property. Our limited partnerships and limited liability companies are accounted for either using the equity method of accounting, NAV as a practical expedient, or fair value. For our equity method investments, we record our share of earnings and losses of the limited partnership or limited liability company as a component of net investment income. Our consolidated limited partnerships are measured using NAV as a practical expedient, as the investments do not have a readily determinable fair value and the investments are in an investment company within scope of Topic 946. Our consolidated real estate limited liability companies are fair valued on a recurring basis using the methods described in Note 2 – Fair Values of Financial Instruments . For all of our limited partnerships and limited liability company investments, recognition of income is reported on a quarter lag due to the availability of the related financial statements of the limited partnerships and limited liability companies. Other invested assets include company owned life insurance, equity securities, short-term debt securities with maturities of greater than three months but less than twelve months when purchased, and short-term loans and collateral loans with maturities less than one year. Company owned life insurance is recorded at the amount that can be realized under the insurance contract at the end of the reporting period, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Dividends are recognized when declared. Realized gains and losses on sales of investments are determined on the basis of specific identification based on the trade date. Federal Home Loan Bank During the first quarter of 2022, American Equity Life became a member of the Federal Home Loan Bank (“FHLB”) which provides access to collateralized borrowings and other FHLB products. We may also issue funding agreements to the FHLB. Both the collateralized borrowings and funding agreements require us to pledge qualified assets as collateral. Obligations arising from funding agreements are used in investment spread activities and reported in Other policy funds and contract claims on the Consolidated Balance Sheets. See Note 15 - Commitments and Contingencies for more information on the funding agreements issued. Entering into FHLB membership, borrowings and funding agreements requires the ownership of FHLB stock and the pledge of assets as collateral. See Note 2 - Fair Value of Financial Instruments and Note 15 - Commitments and Contingencies for more information on the common stock purchased and assets pledged as collateral. Derivative Instruments Our derivative instruments include call options used to fund fixed index annuity credits and interest rate swaps which were designated as fair value hedges. Our call option derivative instruments are recognized in the balance sheet at fair value and changes in fair value are recognized immediately in operations. A fair value hedge is a hedge of the exposure to changes in the fair value of a recognized asset or liability, or of an unrecognized firm commitment, that are attributable to a particular risk. The accounting for a fair value hedge is determined at hedge inception. Hedge accounting can be applied if, at inception, and throughout the hedging period, the changes in the fair value of the derivative are highly effective at offsetting the changes in fair value of the hedged asset, liability or unrecognized firm commitment that are attributable to the risk being hedged. When hedge accounting is applied, the change in fair value of the hedged asset, liability or unrecognized firm commitment attributable to the hedged risk are reported in the same line item in the Consolidated Statements of Operations as the changes in fair value of the derivative instrument. For fair value hedges of fixed maturity securities, the change in fair value attributable to the risk being hedged is recognized in the Change in fair value of derivatives line item of the Consolidated Statements of Operations. For any change in fair value of our interest rate swaps that are excluded from hedge effectiveness, we have elected to recognize the change immediately in earnings rather than amortizing over the life of the hedge. At hedge inception, we formally document our risk management objective and strategy for entering into hedging relationships for any fair value hedge. We also quantitatively test for hedge effectiveness using statistical regression analysis on both a prospective and retrospective basis. The results of the testing determine whether we have a highly effective hedging relationship and can apply hedge accounting. Prior to the redemption of our floating rate subordinated debentures in 2020, our derivative instruments also included an interest rate swap and interest rate caps which were used to manage interest rate risk associated with the floating rate component on certain of our subordinated debentures. These interest rate swaps and interest rate caps were recognized in the balance sheet at fair value and changes in fair value were recognized immediately in operations. See Note 6 - Derivative Instruments for more information on derivative instruments. Cash and Cash Equivalents We consider all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. Book Overdrafts Under our cash management system, checks issued but not yet presented to banks frequently result in overdraft balances for accounting purposes and are classified as Other liabilities on our consolidated balance sheets. We report the changes in the amount of the overdraft balance as a financing activity in our consolidated statement of cash flows as Change in checks in excess of cash balance. Deferred Income Taxes Deferred income tax assets or liabilities are computed based on the temporary differences between the financial statement and income tax bases of assets and liabilities using the enacted marginal tax rate. The effect on deferred income tax assets and liabilities resulting from a change in the enacted marginal tax rate is recognized in income in the period that includes the enactment date. Deferred income tax expenses or benefits are based on the changes in the asset or liability from period to period. Deferred income tax assets are subject to ongoing evaluation of whether such assets will more likely than not be realized. The realization of deferred income tax assets primarily depends on generating future taxable income during the periods in which temporary differences become deductible. Deferred income tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax asset will not be realized. In making such a determination, all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations, is considered. The realization of deferred income tax assets related to unrealized losses on available-for-sale fixed maturity securities is also based upon our intent and ability to hold those securities for a period of time sufficient to allow for a recovery in fair value and not realize the unrealized loss. See Note 10 - Income Taxes for more information on deferred income taxes. Recognition of Premium Revenues and Costs Revenues for annuity products include surrender and living income benefit rider charges assessed against policyholder account balances during the period. Interest sensitive and index product benefits related to annuity products include interest credited or index credits to policyholder account balances pursuant to accounting by insurance companies for certain long-duration contracts. The change in fair value of the embedded derivatives for fixed index annuities equals the change in the difference between policy benefit reserves for fixed index annuities computed under the derivative accounting standard and the long-duration contracts accounting standard at each balance sheet date. Considerations from immediate annuities and supplemental contract annuities with life contingencies are recognized as revenue when the policy is issued. All insurance-related revenues, including the change in the fair value of derivatives for call options related to the business ceded under coinsurance agreements (see Note 9 - Reinsurance and Policy Provisions ), benefits, losses and expenses are reported net of reinsurance ceded. Revenue and fees associated with reinsurance agreements (see Note 9 - Reinsurance and Policy Provisions ) are recognized in Other revenue when earned over the life of the reinsured policies or when service is performed. Other Comprehensive Income (Loss) Other comprehensive income (loss) includes all changes in stockholders' equity during a period except those resulting from investments by and distributions to stockholders. Other comprehensive income (loss) excludes net realized investment gains (losses) included in net income which represents transfers from unrealized to realized gains and losses. Reclassifications Certain amounts in the prior years' consolidated financial statements and related footnotes thereto have been reclassified to conform with the current year presentation. The following accounting policies were applicable prior to the adoption of LDTI accounting guidance which was effective January 1, 2023 with a transition date of January 1, 2021: Deferred Policy Acquisition Costs (DAC) and Deferred Sales Inducements (DSI) For annuity products, these costs are being amortized in proportion to actual and expected gross profits. Actual and expected gross profits include the excess of net investment income earned over the interest credited or the cost of providing index credits to the policyholders, or the "investment spread"; and to a lesser extent, product charges and fees net of expected excess payments for lifetime income benefit riders and certain policy expenses. Actual and expected gross profits for fixed index annuities also include the impact of amounts recorded for the change in fair value of derivatives and the change in fair value of embedded derivatives. Current period amortization is adjusted retrospectively through an unlocking process when estimates of actual and expected gross profits (including the impact of net realized gains (losses) on investments) to be realized from a group of products are revised. Deferred policy acquisition costs and deferred sales inducements are also adjusted for the change in amortization that would have occurred if available for sale fixed maturity securities had been sold at their aggregate fair value at the end of the reporting period and the proceeds reinvested at current yields. The impact of this adjustment is included in accumulated other comprehensive income (loss) within consolidated stockholders' equity, net of applicable taxes. Policy Benefit Reserves Policy benefit reserves for fixed index annuities with returns linked to the performance of a specified market index are equal to the sum of the fair value of the embedded derivatives and the host (or guaranteed) component of the contracts. The host value is established at inception of the contract and accreted over the policy's life at a constant rate of interest. Future policy benefit reserves for fixed index annuities earning a fixed rate of interest and other deferred annuity products are computed under a retrospective deposit method and represent policy account balances before applicable surrender charges. For the years ended December 31, 2022, 2021 and 2020, interest crediting rates for these products ranged from 1.45% to 2.65%. The liability for lifetime income benefit riders is based on the actual and present value of expected benefit payments to be paid in excess of projected policy values recognizing the excess over the expected lives of the underlying policies based on the actual and present value of expected assessments including investment spreads, product charges and fees. The inputs used in the calculation of the liability for lifetime income benefit riders include actual policy values, actual income account values, actual payout factors, actual roll-up rates and our best estimate assumptions for future policy growth, expected utilization of lifetime income benefit riders, which includes the ages at which policyholders are expected to elect to begin to receive lifetime income benefit payments and the percentage of policyholders who elect to receive lifetime income benefit payments, the type of income benefit payments selected upon election and future assumptions for lapse, partial withdrawal and mortality rates. Policy benefit reserves are not reduced for amounts ceded under coinsurance agreements which are reported as coinsurance deposits on our consolidated balance sheets. See Note 9 - Reinsurance and Policy Provisions for more information on reinsurance. The following accounting policies were new or changed subsequent to the adoption of LDTI accounting guidance which was effective January 1, 2023 with a transition date of January 1, 2021: Deferred Policy Acquisition Costs (DAC) and Deferred Sales Inducements (DSI) 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. Policy Benefit Reserves Policy benefit reserves for fixed index annuities with returns linked to the performance of a specified market index are equal to the sum of the fair value of the embedded derivatives and the host (or guaranteed) component of the contracts. The host value is established at inception of the contract and accreted over the policy's life at a constant rate of interest. Future policy benefit reserves for fixed index annuities earning a fixed rate of interest and other deferred annuity products are computed under a retrospective deposit method and represent policy account balances before applicable surrender charges. For the years ended December 31, 2022, 2021 and 2020, interest crediting rates for these products ranged from 1.45% to 2.65%. 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. Market Risk Benefits 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. Adopted Accounting Pronouncements Financial Instruments - Credit Losses In June 2016, the Financial Accounting Standards Board ("FASB") issued an accounting standards update ("ASU") that significantly changed the impairment model for most financial assets that are measured at amortized cost and certain other instruments from an incurred loss model to an expected loss model that requires these assets be presented at the net amount expected to be collected. In addition, credit losses on available-for-sale debt securities are recorded through an allowance account subsequent to the adoption of this ASU. We adopted this ASU on January 1, 2020. The adoption of this ASU resulted in an increase in our mortgage loan allowance for credit losses of $8.6 million and the recognition of an allowance for credit losses on our reinsurance recoverable/coinsurance deposits balances of $3.2 million on the date of adoption. Retained earnings was decreased by $9.3 million, which reflects the net of tax impact of the increase in the mortgage loan allowance for credit losses and the recognition of an allowance for credit losses on our reinsurance recoverable/coinsurance deposits balances on the date of adoption. 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 Benefits for Payout Annuity With Life Contingency (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 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 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. |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Financial Instruments | Fair Values of Financial Instruments The following sets forth a comparison of the carrying amounts and fair values of our financial instruments: December 31, 2022 2021 Carrying Fair Value Carrying Fair Value (Dollars in thousands) Assets Fixed maturity securities, available for sale $ 39,804,617 $ 39,804,617 $ 51,305,943 $ 51,305,943 Mortgage loans on real estate 6,949,027 6,502,463 5,687,998 5,867,227 Real estate investments 1,056,063 1,056,063 337,939 337,939 Limited partnerships and limited liability companies 684,835 684,835 168,711 168,711 Derivative instruments 431,727 431,727 1,277,480 1,277,480 Other investments 1,817,085 1,817,085 1,247,024 1,247,024 Cash and cash equivalents 1,919,669 1,919,669 4,508,982 4,508,982 Coinsurance deposits 13,254,956 12,640,797 8,988,891 8,188,338 Market risk benefits 229,871 229,871 526,373 526,373 Liabilities Policy benefit reserves 58,419,911 55,572,896 62,169,441 56,375,076 Market risk benefits 2,455,492 2,455,492 3,162,162 3,162,162 Single premium immediate annuity (SPIA) benefit reserves 212,119 221,130 226,207 235,891 Other policy funds - FHLB 300,000 300,000 — — Notes and loan payable 792,073 774,220 496,250 569,485 Subordinated debentures 78,753 87,293 78,421 93,721 Fair value is the price that would be received to sell an asset or paid to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. The objective of a fair value measurement is to determine that price for each financial instrument at each measurement date. We meet this objective using various methods of valuation that include market, income and cost approaches. We categorize our financial instruments into three levels of fair value hierarchy based on the priority of inputs used in determining fair value. The hierarchy defines the highest priority inputs (Level 1) as quoted prices in active markets for identical assets or liabilities. The lowest priority inputs (Level 3) are our own assumptions about what a market participant would use in determining fair value such as estimated future cash flows. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, a financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. We categorize financial assets and liabilities recorded at fair value in the consolidated balance sheets as follows: Level 1 – Quoted prices are available in active markets for identical financial instruments as of the reporting date. We do not adjust the quoted price for these financial instruments, even in situations where we hold a large position and a sale could reasonably impact the quoted price. Level 2 – Quoted prices in active markets for similar financial instruments, quoted prices for identical or similar financial instruments in markets that are not active; and models and other valuation methodologies using inputs other than quoted prices that are observable. Level 3 – Models and other valuation methodologies using significant inputs that are unobservable for financial instruments and include situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. Financial instruments that are included in Level 3 are securities for which no market activity or data exists and for which we used discounted expected future cash flows with our own assumptions about what a market participant would use in determining fair value. 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. Our assets and liabilities which are measured at fair value on a recurring basis as of December 31, 2022 and 2021 are presented below based on the fair value hierarchy levels: Total NAV Quoted Significant Significant (Dollars in thousands) 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 December 31, 2021 Assets Fixed maturity securities, available for sale: U.S. Government and agencies $ 1,078,746 $ — $ 32,737 $ 1,046,009 $ — States, municipalities and territories 3,927,201 — — 3,927,201 — Foreign corporate securities and foreign governments 402,545 — — 402,545 — Corporate securities 34,660,234 — 32,700 34,627,534 — Residential mortgage backed securities 1,125,049 — — 1,125,049 — Commercial mortgage backed securities 4,840,311 — — 4,840,311 — Other asset backed securities 5,271,857 — — 5,271,857 — Other investments 12,226 — — 5,877 6,349 Real estate investments 337,939 — — — 337,939 Limited partnerships and limited liability companies 168,711 168,711 — — — Derivative instruments 1,277,480 — — 1,277,480 — Cash and cash equivalents 4,508,982 — 4,508,982 — — Market risk benefits (a) 526,373 — — — 526,373 $ 58,137,654 $ 168,711 $ 4,574,419 $ 52,523,863 $ 870,661 Liabilities Funds withheld liability - embedded derivative $ (2,362) $ — $ — $ (2,362) $ — Fixed index annuities - embedded derivatives 7,964,961 — — — 7,964,961 Market risk benefits (a) 3,162,162 — — — 3,162,162 $ 11,124,761 $ — $ — $ (2,362) $ 11,127,123 (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 December 31, 2022 and 2021. 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 $84.7 million and $0 million as of December 31, 2022 and 2021, 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 $296.8 million and $0 million as of December 31, 2022 and 2021, 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 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%. At December 31, 2022, the weighted average lives used in the fair value calculations ranged from 8.79 years to 12.48 years with a weighted 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. At 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%. At 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%. At December 31, 2021, the residual capitalization rates used in the fair value calculations ranged from 5.00% to 6.25% with an average rate of 5.72%. At December 31, 2021, the discount rates used in the fair value calculations ranged from 6.25% to 7.50% with an average rate of 6.97%. In Q4 2022, we purchased one real estate investment through consolidation of a VIE that is not measured at fair value on a recurring basis. Due to the proximity of the purchase date to year end, the cost to purchase the property approximates fair value. 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 our variable interest entities was $64.2 million as of December 31, 2022 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. At 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%. 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. 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. At December 31, 2022, our unfunded commitments for our consolidated limited partnership funds are $926.3 million. 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 Equity securities and short-term debt securities with maturities of greater than three months but less than twelve months when purchased are the only financial instruments included in other investments that 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. 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 $22.0 million as of December 31, 2022 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. The fair value of short-term loans was $316.4 million and $320.0 million as of December 31, 2022 and December 31, 2021, respectively. Our short-term loans fall within Level 2 of the fair value hierarchy. For our collateral loans, we have concluded the fair value approximates carrying value and falls within Level 2 of the fair value hierarchy. The fair value of collateral loans was $64.6 million and $0 million as of December 31, 2022 and December 31, 2021, respectively. 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 $397.7 million and $384.3 million as of December 31, 2022 and December 31, 2021, respectively. Cash and cash equivalents Amounts reported in the consolidated balance sheets for these instruments are reported at their historical cost which approximates fair value due to the nature of the assets assigned to this category. Policy benefit reserves, coinsurance deposits and SPIA benefit reserves The fair values of the liabilities under contracts not involving significant mortality or morbidity risks (principally deferred annuities), are stated at the cost we would incur to extinguish the liability (i.e., the cash surrender value) as these contracts are generally issued without an annuitization date. The coinsurance deposits related to the annuity benefit reserves have fair values determined in a similar fashion. For period-certain annuity benefit contracts, the fair value is determined by discounting the benefits at the interest rates currently in effect for newly issued immediate annuity contracts. We are not required to and have not estimated the fair value of the liabilities under contracts that involve significant mortality or morbidity risks, as these liabilities fall within the definition of insurance contracts that are exceptions from financial instruments that require disclosures of fair value. Policy benefit reserves, coinsurance deposits and SPIA benefit reserves 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 Consolidated 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 price. 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 December 31, 2022 and 2021, we utilized an estimate of 2.40% and 2.10%, respectively, for the expected cost of annual call options, which is based on estimated long-term account value growth and a historical review of our actual option costs. Our best estimate assumptions for lapse, partial withdrawal and mortality rates are based on our actual experience and our outlook as to future expectations for such assumptions. These assumptions, which are consistent with the assumptions used in calculating deferred policy acquisition costs and deferred sales inducements, are reviewed on a quarterly basis and are updated as our experience develops and/or as future expectations change. The following table presents average lapse rate and partial withdrawal rate assumptions, by contract duration, used in estimating the fair value of the embedded derivative component of our fixed index annuity policy benefit reserves at each reporting date: Average Lapse Rates Average Partial Withdrawal Rates Contract Duration (Years) December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 1 - 5 2.17% 3.04% 1.86% 2.19% 6 - 10 3.28% 2.84% 1.97% 2.26% 11 - 15 3.63% 4.47% 1.86% 2.14% 16 - 20 8.55% 8.93% 2.96% 1.33% 20+ 4.90% 4.93% 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 years ended December 31, 2022 and 2021: Year Ended 2022 2021 (Dollars in thousands) Fixed maturity securities, available for sale - Corporate securities Beginning balance $ — $ — Purchases 2,233 — Transfers in 391,702 — Transfers out — — Total realized/unrealized gains (losses): Included in net income — — Included in other comprehensive income (loss) 8,413 — Ending balance $ 402,348 $ — Fixed maturity securities, available for sale - Other asset backed securities Beginning balance $ — $ — Purchases 296,800 — Transfers in 153,669 — Transfers out — — Total realized/unrealized gains (losses): Included in net income — — Included in other comprehensive income (loss) (7,551) — Ending balance $ 442,918 $ — Other investments Beginning balance $ 6,349 $ — Transfers in — 6,349 Transfers out (3,867) — Total realized/unrealized gains (losses): Included in net income (2,482) — Included in other comprehensive income (loss) — — Ending balance $ — $ 6,349 Year Ended 2022 2021 (Dollars in thousands) Real estate investments Beginning balance $ 337,939 $ — Purchases and sales, net 602,298 335,767 Change in fair value 322 2,172 Ending balance $ 940,559 $ 337,939 Limited partnerships and limited liability companies Beginning balance $ — $ — Purchases and sales, net 57,574 — Change in fair value 6,635 — Ending balance $ 64,209 $ — Funds withheld liability - embedded derivative Beginning balance $ — $ — Transfers in (441,864) — Change in fair value — — Ending balance $ (441,864) $ — Fixed index annuities - embedded derivatives Beginning balance $ 7,964,961 $ 7,938,281 Premiums less benefits (125,940) 1,424,372 Change in fair value, net (2,561,676) (876,803) Reserve release related to in-force ceded reinsurance (456,500) (520,889) Ending balance $ 4,820,845 $ 7,964,961 Transfers into Level 3 during the years ended December 31, 2022 and 2021 were the result of changes in observable pricing information for certain fixed maturity securities. The fair value of our fixed index annuities embedded derivatives is net of coinsurance ceded of $1,173.4 million and $1,245.0 million as of December 31, 2022 and 2021, respectively. Change in fair value, net for each period in our embedded derivatives is included in Change in fair value of embedded derivatives in the 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 December 31, 2022, were to increase by 100 basis points, the fair value of the embedded derivatives would decrease by $336.2 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 $386.4 million recorded through operations as an increase in the change in fair value of embedded derivatives. We review these assumptions quarterly and as a result of these reviews, we made updates to assumptions in 2022, 2021 and 2020. The most significant assumption update to the calculation of the fair value of the embedded derivative component of our fixed index annuity policy benefit reserves in 2022 was the change in the discount rate. The discount rate assumption was increased, and the period over which the discount rate assumption grades to an ultimate assumption was adjusted. This resulted in a decrease in the fair value of the embedded derivative. The most significant assumption update to the calculation of the fair value of the embedded derivative component of our fixed index annuity benefit policy reserves in 2021 was changes in lapse rate assumptions. For certain annuity products without a lifetime income benefit rider, the lapse rate assumption was increased in more recent cohorts to reflect higher lapses on policies with a market value adjustment ("MVA") feature. For other annuity products with a lifetime income benefit rider, the population was bifurcated based on whether policies had utilized the rider. For those policies which had utilized the rider, the lapse rate assumption was decreased in later durations. The net impact of the updates to the lapse rate assumption resulted in a decrease in the embedded derivative component of our fixed index annuity policy benefit reserves as less funds ultimately qualify for excess benefits. The most significant assumption update to the calculation of the fair value of the embedded derivative component of our fixed index annuity policy benefit reserves in 2020 was a decrease in the crediting rate/option budget to 2.10% from 2.90% as a result of a revised estimate of the cost of options. This assumption change resulted in a decrease in the fair value of the embedded derivative component of our fixed index annuity policy benefit reserves due to a reduction in the projected policy contract values over the expected lives of the contracts. During 2020, we revised the derivation of the discount rate used in calculating the fair value of embedded derivatives which increased the discount rate and resulted in a decrease in the change in fair value of embedded derivatives. The net impact of the updates to lapse and partial withdrawal assumptions resulted in an increase in the embedded derivative component of our fixed index annuity policy benefit reserves as more funds ultimately qualify for excess benefits. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Investments [Abstract] | |
Investments | Investments At December 31, 2022 and 2021, the amortized cost and fair value of fixed maturity securities were as follows: Amortized Gross Gross Allowance for Credit Losses Fair Value (Dollars in thousands) 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 December 31, 2021 Fixed maturity securities, available for sale: U.S. Government and agencies $ 1,046,029 $ 32,841 $ (124) $ — $ 1,078,746 States, municipalities and territories 3,495,563 437,456 (3,042) (2,776) 3,927,201 Foreign corporate securities and foreign governments 380,646 22,742 (843) — 402,545 Corporate securities 31,084,629 3,614,047 (38,442) — 34,660,234 Residential mortgage backed securities 1,056,778 70,434 (2,093) (70) 1,125,049 Commercial mortgage backed securities 4,708,878 149,152 (17,719) — 4,840,311 Other asset backed securities 5,226,660 95,304 (50,107) — 5,271,857 $ 46,999,183 $ 4,421,976 $ (112,370) $ (2,846) $ 51,305,943 (1) Amortized cost excludes accrued interest receivable of $425.4 million and $400.7 million as of December 31, 2022 and 2021, respectively. (2) Gross unrealized losses are net of allowance for credit losses. The amortized cost and fair value of fixed maturity securities at December 31, 2022, by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. All of our mortgage and other asset backed securities provide for periodic payments throughout their lives and are shown below as separate lines. Available for sale Amortized Fair Value (Dollars in thousands) Due in one year or less $ 1,184,147 $ 1,180,124 Due after one year through five years 5,641,072 5,406,059 Due after five years through ten years 6,254,569 5,672,730 Due after ten years through twenty years 9,853,998 8,817,815 Due after twenty years 10,051,313 7,754,098 32,985,099 28,830,826 Residential mortgage backed securities 1,492,242 1,377,611 Commercial mortgage backed securities 4,098,755 3,687,478 Other asset backed securities 6,289,923 5,908,702 $ 44,866,019 $ 39,804,617 Net unrealized gains (losses) on available for sale fixed maturity securities reported as a separate component of stockholders' equity were comprised of the following: December 31, 2022 2021 (Dollars in thousands) Net unrealized gains (losses) on available for sale fixed maturity securities $ (5,065,422) $ 4,309,606 Deferred income tax valuation allowance reversal 22,534 22,534 Deferred income tax expense 1,063,441 (905,047) Net unrealized gains (losses) reported as accumulated other comprehensive income (loss) $ (3,979,447) $ 3,427,093 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 December 31, 2022 and 2021, respectively. The following table summarizes the credit quality, as determined by NAIC designation, of our fixed maturity portfolio as of the dates indicated: December 31, 2022 2021 NAIC Amortized Fair Amortized Fair (Dollars in thousands) 1 $ 27,061,903 $ 24,211,086 $ 26,157,531 $ 28,785,839 2 17,023,157 14,944,131 19,758,594 21,396,020 3 595,193 510,392 909,311 941,210 4 109,409 91,495 133,070 147,160 5 61,721 36,738 16,496 15,357 6 14,636 10,775 24,181 20,357 $ 44,866,019 $ 39,804,617 $ 46,999,183 $ 51,305,943 The following table shows our investments' gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities (consisting of 4,510 and 1,427 securities, respectively) have been in a continuous unrealized loss position, at December 31, 2022 and 2021: Less than 12 months 12 months or more Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Dollars in thousands) 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) December 31, 2021 Fixed maturity securities, available for sale: U.S. Government and agencies $ 760,977 $ (124) $ — $ — $ 760,977 $ (124) States, municipalities and territories 168,942 (2,468) 15,711 (3,350) 184,653 (5,818) Foreign corporate securities and foreign governments 42,861 (843) — — 42,861 (843) Corporate securities 2,375,603 (30,070) 116,819 (8,372) 2,492,422 (38,442) Residential mortgage backed securities 250,964 (1,408) 26,917 (755) 277,881 (2,163) Commercial mortgage backed securities 784,464 (5,500) 142,224 (12,219) 926,688 (17,719) Other asset backed securities 1,351,324 (11,345) 1,771,182 (38,762) 3,122,506 (50,107) $ 5,735,135 $ (51,758) $ 2,072,853 $ (63,458) $ 7,807,988 $ (115,216) (1) Unrealized losses have not been reduced to reflect the allowance for credit losses of $3.3 million and $2.8 million as of December 31, 2022 and 2021, respectively. The unrealized losses at December 31, 2022 are principally related to the timing of the purchases of certain securities, which carry less yield than those available at December 31, 2022. Approximately 98% and 85% of the unrealized losses on fixed maturity securities shown in the above table for December 31, 2022 and 2021, respectively, are on securities that are rated investment grade, defined as being the highest two NAIC designations. We expect to recover our amortized cost on all securities except for those securities on which we recognized an allowance for credit loss. In addition, because we did not have the intent to sell fixed maturity securities with unrealized losses and it was not more likely than not that we would be required to sell these securities prior to recovery of the amortized cost, which may be maturity, we did not write down these investments to fair value through the consolidated statements of operations. Changes in net unrealized gains/losses on investments for the years ended December 31, 2022, 2021 and 2020 are as follows: Year Ended December 31, 2022 2021 2020 (Dollars in thousands) Fixed maturity securities available for sale carried at fair value $ (9,375,028) $ (987,434) $ 1,955,496 Adjustment for effect on other balance sheet accounts: Deferred policy acquisition costs, deferred sales inducements and policy benefit reserves — — (880,517) Deferred income tax asset/liability 1,968,488 207,361 (225,746) 1,968,488 207,361 (1,106,263) Change in net unrealized gains/losses on investments carried at fair value $ (7,406,540) $ (780,073) $ 849,233 Components of net investment income are as follows: Year Ended December 31, 2022 2021 2020 (Dollars in thousands) Fixed maturity securities $ 1,849,915 $ 1,772,675 $ 2,035,762 Real estate investments 40,243 14,138 — Mortgage loans on real estate 301,118 215,138 170,749 Cash and cash equivalents 24,985 3,385 4,871 Limited partnerships and limited liability companies 188,131 67,157 (12,204) Other investments 49,537 29,399 15,372 2,453,929 2,101,892 2,214,550 Less: investment expenses (146,466) (64,417) (32,472) Net investment income $ 2,307,463 $ 2,037,475 $ 2,182,078 Proceeds from sales of available for sale fixed maturity securities for the years ended December 31, 2022, 2021 and 2020 were $7.8 billion, $0.8 billion and $5.4 billion, respectively. Scheduled principal repayments, calls and tenders for available for sale fixed maturity securities for the years ended December 31, 2022, 2021 and 2020 were $2.8 billion, $3.7 billion and $2.9 billion, respectively. Net realized losses on investments for the years ended December 31, 2022, 2021 and 2020 are as follows: Year Ended December 31, 2022 2021 2020 (Dollars in thousands) Fixed maturity securities, available for sale: Gross realized gains $ 139,819 $ 10,167 $ 305,170 Gross realized losses (153,712) (19,140) (276,847) Net credit loss (provision) release (15,536) (6,241) (94,560) (29,429) (15,214) (66,237) Mortgage loans on real estate: Decrease (increase) in allowance for credit losses (15,126) 7,005 (15,447) Recovery of specific allowance 1,677 — 712 Gain (loss) on sale of mortgage loans (4,970) (5,033) 292 (18,419) 1,972 (14,443) Total net realized losses $ (47,848) $ (13,242) $ (80,680) Realized losses on available for sale fixed maturity securities in 2022, 2021 and 2020 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. In addition, certain realized gains and losses on available for sale fixed maturity securities in 2020 were realized as a result of efforts to de-risk the portfolio. Realized gains and losses on sales are determined on the basis of specific identification of investments based on the trade date. The following table summarizes the carrying value of our investments that have been non-income producing for 12 consecutive months: December 31, 2022 2021 (Dollars in thousands) Fixed maturity securities, available for sale $ 10,708 $ 4,118 Mortgage loans on real estate 1,483 — $ 12,191 $ 4,118 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: Year Ended December 31, 2022 States, Municipalities and Corporate Securities Residential Mortgage Backed Securities Total (Dollars in thousands) Beginning balance $ 2,776 $ — $ 70 $ 2,846 Additions for credit losses not previously recorded — 3,825 1,070 4,895 Change in allowance on securities with previous allowance (2,776) (611) (579) (3,966) Reduction for securities with credit losses due to intent to sell — — — — Reduction for securities sold during the period — — (428) (428) Write-offs charged against the allowance — — — — Recoveries of amounts previously written off — — — — Ending balance $ — $ 3,214 $ 133 $ 3,347 Year Ended December 31, 2021 States, Municipalities and Corporate Securities Residential Mortgage Backed Securities Total (Dollars in thousands) Beginning balance $ 2,844 $ 60,193 $ 1,734 $ 64,771 Additions for credit losses not previously recorded — 705 407 1,112 Change in allowance on securities with previous allowance (68) 443 (857) (482) Reduction for securities with credit losses due to intent to sell — (209) — (209) Reduction for securities sold during the period — (50,758) — (50,758) Write-offs charged against the allowance — (10,032) — (10,032) Recoveries of amounts previously written off — (342) (1,214) (1,556) Ending balance $ 2,776 $ — $ 70 $ 2,846 At December 31, 2022 and 2021, cash and invested assets of $51.0 billion and $49.3 billion, respectively, were on deposit with state agencies to meet regulatory requirements including deposits for the benefit of all policyholders. There are no restrictions on these assets. |
Mortgage Loans on Real Estate
Mortgage Loans on Real Estate | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Mortgage Loans on Real Estate | Mortgage Loans on Real Estate Our financing receivables consist of the following three portfolio segments: commercial mortgage loans, agricultural mortgage loans and residential mortgage loans. Our mortgage loan portfolios are summarized in the following table. There were commitments outstanding of $420.2 million at December 31, 2022. December 31, 2022 2021 (Dollars in thousands) Commercial mortgage loans: Principal outstanding $ 3,560,903 $ 3,633,131 Deferred fees and costs, net (6,345) (4,629) Amortized cost 3,554,558 3,628,502 Valuation allowance (22,428) (17,926) Commercial mortgage loans, carrying value 3,532,130 3,610,576 Agricultural mortgage loans: Principal outstanding 567,630 408,135 Deferred fees and costs, net (1,667) (1,136) Amortized cost 565,963 406,999 Valuation allowance (1,021) (519) Agricultural mortgage loans, carrying value 564,942 406,480 Residential mortgage loans: Principal outstanding 2,807,652 1,652,910 Deferred fees and costs, net 1,909 1,468 Unamortized discounts and premiums, net 55,917 22,143 Amortized cost 2,865,478 1,676,521 Valuation allowance (13,523) (5,579) Residential mortgage loans, carrying value 2,851,955 1,670,942 Mortgage loans, carrying value $ 6,949,027 $ 5,687,998 Our commercial mortgage loan portfolio consists of loans collateralized by the related properties and diversified as to property type, location and loan size. Our lending policies establish limits on the amount that can be loaned to one borrower and other criteria to attempt to reduce the risk of default. The commercial mortgage loan portfolio is summarized by geographic region and property type as follows: December 31, 2022 2021 Principal Percent Principal Percent (Dollars in thousands) Geographic distribution East $ 502,659 14.1 % $ 614,406 16.9 % Middle Atlantic 280,993 7.9 % 293,494 8.1 % Mountain 416,307 11.7 % 452,818 12.5 % New England 73,631 2.1 % 60,172 1.6 % Pacific 858,812 24.1 % 863,879 23.8 % South Atlantic 934,007 26.2 % 785,679 21.6 % West North Central 205,568 5.8 % 235,864 6.5 % West South Central 288,926 8.1 % 326,819 9.0 % $ 3,560,903 100.0 % $ 3,633,131 100.0 % Property type distribution Office $ 378,713 10.6 % $ 315,374 8.7 % Medical Office 10,265 0.3 % 10,827 0.3 % Retail 896,351 25.2 % 1,016,101 28.0 % Industrial/Warehouse 866,623 24.3 % 924,779 25.4 % Apartment 912,984 25.6 % 864,580 23.8 % Hotel 285,271 8.0 % 283,500 7.8 % Mixed Use/Other 210,696 6.0 % 217,970 6.0 % $ 3,560,903 100.0 % $ 3,633,131 100.0 % Our agricultural mortgage loan portfolio consists of loans with an outstanding principal balance of $567.6 million and $408.1 million as of December 31, 2022 and 2021, respectively. These loans are collateralized by agricultural land and are diversified as to location within the United States. Our residential mortgage loan portfolio consists of loans with an outstanding principal balance of $2.8 billion and $1.7 billion as of December 31, 2022 and 2021, respectively. These loans are collateralized by the related properties and diversified as to location within the United States. Mortgage loans on real estate are generally reported at cost adjusted for amortization of premiums and accrual of discounts, computed using the interest method and net of valuation allowances. Interest income is accrued on the principal amount of the loan based on the loan's contractual interest rate. Interest income is included in Net investment income on our Consolidated Statements of Operations. Accrued interest receivable, which was $58.2 million and $37.0 million as of December 31, 2022 and 2021, respectively, is included in Accrued investment income on our consolidated balance sheets. Loan Valuation Allowance We establish a valuation allowance to provide for the risk of credit losses inherent in our mortgage loan portfolios. The valuation allowance is maintained at a level believed adequate by management to absorb estimated expected credit losses. The valuation allowance is based on amortized cost, which excludes accrued interest receivable. We do not measure a credit loss allowance on accrued interest receivable as we write off any uncollectible accrued interest receivable balances to net investment income in a timely manner. We did not charge off any uncollectible accrued interest receivable on our commercial, agricultural or residential mortgage loan portfolios for the years ended December 31, 2022 or 2021, respectively. The valuation allowances for each of our mortgage loan portfolios are estimated by deriving probability of default and recovery rate assumptions based on the characteristics of the loans in each portfolio, historical economic data and loss information, and current and forecasted economic conditions. Key loan characteristics impacting the estimate for our commercial mortgage loan portfolio include the current state of the borrower’s credit quality, which considers factors such as loan-to-value (“LTV”) and debt service coverage (“DSC”) ratios, loan performance, underlying collateral type, delinquency status, time to maturity, and original credit scores. Key loan characteristics impacting the estimate for our agricultural and residential mortgage loan portfolios include 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: Year Ended December 31, 2022 Commercial Agricultural Residential Total (Dollars in thousands) Beginning allowance balance $ (17,926) $ (519) $ (5,579) $ (24,024) Charge-offs 501 — — 501 Recoveries 1,677 — — 1,677 Change in provision for credit losses (6,680) (502) (7,944) (15,126) Ending allowance balance $ (22,428) $ (1,021) $ (13,523) $ (36,972) Year Ended December 31, 2021 Commercial Agricultural Residential Total (Dollars in thousands) Beginning allowance balance $ (25,529) $ (2,130) $ (3,370) $ (31,029) Charge-offs — — — — Recoveries — — — — Change in provision for credit losses 7,603 1,611 (2,209) 7,005 Ending allowance balance $ (17,926) $ (519) $ (5,579) $ (24,024) 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 Real estate investments and the loan is recorded as fully paid, with any allowance for credit loss that has been established charged off. Fair value of the real estate is determined by third party appraisal. There is no real estate in which ownership of the property was taken to satisfy an outstanding loan held in Real estate investments as of December 31, 2022 or December 31, 2021. Recoveries are situations where we have received a payment from the borrower in an amount greater than the carrying value of the loan (principal outstanding less specific allowance). Credit Quality Indicators We evaluate the credit quality of our commercial and agricultural mortgage loans by analyzing LTV and DSC ratios and loan performance. We evaluate the credit quality of our residential mortgage loans by analyzing loan performance. LTV and DSC ratios for our commercial mortgage loans are originally calculated at the time of loan origination and are updated annually for each loan using information such as rent rolls, assessment of lease maturity dates and property operating statements, which are reviewed in the context of current leasing and in place rents compared to market leasing and market rents. A DSC ratio of less than 1.0 indicates that a property's operations do not generate sufficient income to cover debt payments. An LTV ratio in excess of 100% indicates the unpaid loan amount exceeds the value of the underlying collateral. All of our commercial mortgage loans that have a debt service coverage ratio of less than 1.0 are performing under the original contractual loan terms at December 31, 2022 and 2021. The amortized cost of our commercial mortgage loan portfolio by LTV and DSC ratios based on the most recent information collected was as follows at December 31, 2022 and 2021 (by year of origination): 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: (Dollars in thousands) 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 % 2021 2020 2019 2018 2017 Prior Total As of December 31, 2021: Amortized Average Amortized Average Amortized Average Amortized Average Amortized Average Amortized Average Amortized Average Debt Service Coverage Ratio: (Dollars in thousands) Greater than or equal to 1.5 $ 260,623 64 % $ 454,828 60 % $ 464,059 61 % $ 344,170 58 % $ 246,854 52 % $ 758,494 45 % $ 2,529,028 55 % Greater than or equal to 1.2 and less than 1.5 12,836 67 % 58,960 66 % 128,301 70 % 89,293 66 % 135,818 66 % 129,833 57 % 555,041 65 % Greater than or equal to 1.0 and less than 1.2 318,636 45 % 17,762 82 % 69,684 72 % 11,937 75 % 6,343 60 % 42,125 58 % 466,487 53 % Less than 1.0 — — % 3,289 61 % 26,147 63 % 14,051 76 % 13,385 73 % 21,074 54 % 77,946 65 % Total $ 592,095 54 % $ 534,839 61 % $ 688,191 64 % $ 459,451 60 % $ 402,400 58 % $ 951,526 47 % $ 3,628,502 56 % LTV and DSC ratios for our agricultural mortgage loans are calculated at the time of loan origination and are evaluated annually for each loan using land value averages. A DSC ratio of less than 1.0 indicates that a property's operations do not generate sufficient income to cover debt payments. An LTV ratio in excess of 100% indicates the unpaid loan amount exceeds the value of the underlying collateral. All of our agricultural mortgage loans that have a debt service coverage ratio of less than 1.0 are performing under the original contractual loan terms at December 31, 2022 and 2021. The amortized cost of our agricultural mortgage loan portfolio by LTV and DSC ratios based on the most recent information collected was as follows at December 31, 2022 and 2021 (by year of origination): 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: (Dollars in thousands) 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 % 2021 2020 2019 2018 2017 Prior Total As of December 31, 2021: Amortized Average Amortized Average Amortized Average Amortized Average Amortized Average Amortized Average Amortized Average Debt Service Coverage Ratio: (Dollars in thousands) Greater than or equal to 1.5 $ 62,548 54 % $ 80,919 56 % $ 11,645 49 % $ 25,000 11 % $ — — % $ — — % $ 180,112 49 % Greater than or equal to 1.2 and less than 1.5 95,738 55 % 102,958 43 % 3,335 22 % — — % — — % — — % 202,031 48 % Greater than or equal to 1.0 and less than 1.2 7,478 44 % 4,092 36 % 4,734 50 % — — % — — % — — % 16,304 44 % Less than 1.0 — — % 8,552 59 % — — % — — % — — % — — % 8,552 59 % Total $ 165,764 54 % $ 196,521 49 % $ 19,714 45 % $ 25,000 11 % $ — — % $ — — % $ 406,999 48 % We closely monitor loan performance for our commercial, agricultural and residential mortgage loan portfolios. Aging of financing receivables is summarized in the following table (by year of origination): 2022 2021 2020 2019 2018 Prior Total As of 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 2021 2020 2019 2018 2017 Prior Total As of December 31, 2021: (Dollars in thousands) Commercial mortgage loans Current $ 592,095 $ 534,839 $ 688,191 $ 459,451 $ 402,400 $ 951,526 $ 3,628,502 30 - 59 days past due — — — — — — — 60 - 89 days past due — — — — — — — Over 90 days past due — — — — — — — Total commercial mortgage loans $ 592,095 $ 534,839 $ 688,191 $ 459,451 $ 402,400 $ 951,526 $ 3,628,502 Agricultural mortgage loans Current $ 165,764 $ 196,521 $ 19,714 $ 25,000 $ — $ — $ 406,999 30 - 59 days past due — — — — — — — 60 - 89 days past due — — — — — — — Over 90 days past due — — — — — — — Total agricultural mortgage loans $ 165,764 $ 196,521 $ 19,714 $ 25,000 $ — $ — $ 406,999 Residential mortgage loans Current $ 1,092,438 $ 454,532 $ 67,380 $ 16,898 $ 751 $ — $ 1,631,999 30 - 59 days past due 10,284 12,363 11,373 427 — — 34,447 60 - 89 days past due 1,838 1,090 102 — — — 3,030 Over 90 days past due 679 5,459 907 — — — 7,045 Total residential mortgage loans $ 1,105,239 $ 473,444 $ 79,762 $ 17,325 $ 751 $ — $ 1,676,521 Commercial, agricultural and residential mortgage loans are considered nonperforming when they become 90 days or more past due. When loans become nonperforming, we place them on non-accrual status and discontinue recognizing interest income. If payments are received on a nonperforming loan, interest income is recognized to the extent it would have been recognized if normal principal and interest would have been received timely. If payments are received to bring a nonperforming loan back to less than 90 days past due, we will resume accruing interest income on that loan. There were 59 loans in non-accrual status at December 31, 2022 and 13 loans in non-accrual status at December 31, 2021. During the years ended December 31, 2022 and 2021, we recognized interest income of $670 thousand and $36 thousand, respectively, on loans which were in non-accrual status at the respective period end. During the year ended December 31, 2020 we recognized no interest income on loans which were in non-accrual status at the respective period end. Troubled Debt Restructuring A Troubled Debt Restructuring ("TDR") is a situation where we have granted a concession to a borrower for economic or legal reasons related to the borrower's financial difficulties that we would not otherwise consider. A mortgage loan that has been granted new terms, including workout terms as described previously, would be considered a TDR if it meets conditions that would indicate a borrower is experiencing financial difficulty and the new terms constitute a concession on our part. We analyze all loans where we have agreed to workout terms and all loans that we have refinanced to determine if they meet the definition of a TDR. We consider the following factors in determining whether or not a borrower is experiencing financial difficulty: • borrower is in default, • borrower has declared bankruptcy, • there is growing concern about the borrower's ability to continue as a going concern, • borrower has insufficient cash flows to service debt, • borrower's inability to obtain funds from other sources, and • there is a breach of financial covenants by the borrower. If the borrower is determined to be in financial difficulty, we consider the following conditions to determine if the borrower is granted a concession: • assets used to satisfy debt are less than our recorded investment, • interest rate is modified, • maturity date extension at an interest rate less than market rate, • capitalization of interest, • delaying principal and/or interest for a period of three months or more, and • partial forgiveness of the balance or charge-off. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities We have relationships with various types of entities which may be VIEs. Certain VIEs are consolidated in our financial results. See Note 1 - Significant Accounting Policies for further details on our consolidation accounting policies. Consolidated Variable Interest Entities We are invested in four 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 limited liability companies that invest in operating entities which hold multifamily real estate properties. 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 our significant ownership. The investment balance, which represents an equity interest in the limited liability company, fluctuates 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. 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: December 31, 2022 2021 Total Total Total Total (Dollars in thousands) Real estate investments $ 1,095,267 $ 78,244 $ 363,229 $ 20,168 Real estate limited liability companies 66,258 287 — — Limited partnership funds 620,741 113 168,711 — $ 1,782,266 $ 78,644 $ 531,940 $ 20,168 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. In 2021, we provided funding to a limited partnership which purchased a residential business purpose loan originator. The limited partnership was deemed a VIE based on insufficient equity at risk, however, we are not the primary beneficiary due to our lack of control of the limited partnership. In Q4 2022, as a result of equity capital raised from third party investors, the debt funding was repaid to us. We have reassessed the VIE conclusion and concluded the limited partnership no longer meets the definition of a variable interest entity. The unconsolidated VIE disclosures are no longer applicable. The investment will be accounted for as an equity method investment and still be reported in Limited partnerships and limited liability companies in the Consolidated Balance Sheets. The carrying value and maximum loss exposure for our unconsolidated VIEs were as follows: December 31, 2022 2021 Asset Maximum Asset Maximum (Dollars in thousands) Fixed maturity securities, available for sale $ 1,178,110 $ 1,178,110 $ 459,681 $ 459,681 Other investments — — 345,000 345,000 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2022 | |
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: December 31, 2022 December 31, 2021 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 $ 38,927,534 $ 397,789 $ 40,091,353 $ 1,276,574 Warrants 2,020 1,169 2,020 906 $ 38,929,554 $ 398,958 $ 40,093,373 $ 1,277,480 Liabilities Policy benefit reserves - annuity products Fixed index annuities - embedded derivatives, net $ 4,820,845 $ 7,964,961 Funds withheld for reinsurance liabilities Reinsurance related embedded derivative (441,864) (2,362) $ 4,378,981 $ 7,962,599 Derivatives Designated as Hedging Instruments We use interest rate swaps that are 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 allow 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 are carried at fair value and presented as Derivative instruments on the Consolidated Balance Sheets. For derivative instruments that are designated and qualify 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 are 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 are designated as part of the hedge are 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 is 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) December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 (Dollars in thousands) Fixed maturities, available for sale: Current hedging relationships $ 389,060 $ — $ (39,128) $ — Discontinued hedging relationships 1,594,736 — (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 year ended December 31, 2022 Interest rate swaps $ 215,587 $ (249,168) $ (33,581) $ 13,957 For the year ended December 31, 2021 Interest rate swaps $ — $ — $ — $ — For the year ended December 31, 2020 Interest rate swaps $ — $ — $ — $ — 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: Year Ended 2022 2021 2020 (Dollars in thousands) Change in fair value of derivatives: Call options $ (1,118,768) $ 1,347,925 $ 34,604 Warrants 264 810 — Interest rate swaps 13,957 — — Interest rate caps — — 62 $ (1,104,547) $ 1,348,735 $ 34,666 Change in fair value of embedded derivatives: Fixed index annuities - embedded derivatives $ (1,913,096) $ (355,940) $ (1,286,787) Reinsurance related embedded derivative (439,502) (2,362) — $ (2,352,598) $ (358,302) $ (1,286,787) 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: December 31, 2022 2021 Counterparty Credit Rating (S&P) Credit Rating (Moody's) Notional Fair Value Notional Fair Value (Dollars in thousands) Bank of America A+ Aa2 $ 3,574,125 $ 26,080 $ 3,556,256 $ 99,229 Barclays A A1 3,686,896 39,657 4,213,658 157,865 Canadian Imperial Bank of Commerce A+ Aa2 2,707,734 34,218 3,956,329 141,540 Citibank, N.A. A+ Aa3 3,748,162 29,873 3,190,833 115,860 Credit Suisse A- A3 2,086,470 20,691 3,716,868 113,295 J.P. Morgan A+ Aa2 6,501,103 69,006 4,482,832 105,899 Morgan Stanley A+ Aa3 2,957,389 38,470 2,223,743 47,950 Royal Bank of Canada AA- A2 4,378,132 58,026 3,567,972 100,472 Societe Generale A A1 2,099,081 17,157 2,548,072 86,494 Truist A A2 1,960,787 32,885 2,547,808 94,924 Wells Fargo A+ Aa2 5,436,824 61,840 5,820,381 206,403 Exchange traded 199,200 2,655 266,601 6,643 $ 39,335,903 $ 430,558 $ 40,091,353 $ 1,276,574 As of December 31, 2022 and 2021, we held $0.4 billion and $1.3 billion, respectively, of cash and cash equivalents and other investments from counterparties for derivative collateral, which is included in Other liabilities on our Consolidated Balance Sheets. This derivative collateral limits the maximum amount of economic loss due to credit risk that we would incur if the counterparties failed completely to perform according to the terms of the contracts to $3.3 million and $8.5 million at December 31, 2022 and 2021, respectively. The future index credits on our fixed index annuities are treated as a "series of embedded derivatives" over the expected life of the applicable contract. We do not purchase call options to fund the index liabilities which may arise after the next policy anniversary date. We must value both the call options and the related forward embedded options in the policies at fair value. We cede certain fixed index annuity product liabilities to third party reinsurers on a modified coinsurance basis which results in an embedded derivative. The obligation to pay the total return on the assets supporting liabilities associated with this reinsurance agreement represents a total return swap. The fair value of the total return swap is based on the unrealized gains and losses of the underlying assets held in the modified coinsurance portfolio. The reinsurance related embedded derivative is reported in Funds withheld for reinsurance liabilities on the Consolidated Balance Sheets and the change in the fair value of the embedded derivative is reported in Change in fair value of embedded derivatives on the Consolidated Statements of Operations. See Note 9 – Reinsurance and Policy Provisions for further discussion on these reinsurance agreements. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs and Deferred Sales Inducements | 12 Months Ended |
Dec. 31, 2022 | |
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: December 31, 2022 Fixed Index Fixed Rate Single Premium Total (Dollars in thousands) Balance, beginning of year $ 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 year $ 2,649,322 $ 120,105 $ 4,216 $ 2,773,643 December 31, 2021 Fixed Index Fixed Rate Single Premium Total (Dollars in thousands) Balance, beginning of year $ 3,286,059 $ 119,805 $ 2,641 $ 3,408,505 Write-off related to in-force ceded reinsurance (349,614) — — (349,614) Capitalizations 250,070 57,344 2,269 309,683 Amortization expense (279,831) (25,827) (712) (306,370) Balance, end of year $ 2,906,684 $ 151,322 $ 4,198 $ 3,062,204 Deferred Sales Inducements The following tables present the balances and changes in deferred sales inducements: December 31, 2022 Fixed Index Fixed Rate Total (Dollars in thousands) Balance, beginning of year $ 2,088,591 $ 31,371 $ 2,119,962 Capitalizations 107,684 7 107,691 Amortization expense (178,315) (3,655) (181,970) Balance, end of year $ 2,017,960 $ 27,723 $ 2,045,683 December 31, 2021 Fixed Index Fixed Rate Total (Dollars in thousands) Balance, beginning of year $ 2,180,980 $ 35,705 $ 2,216,685 Capitalizations 95,104 57 95,161 Amortization expense (187,493) (4,391) (191,884) Balance, end of year $ 2,088,591 $ 31,371 $ 2,119,962 |
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: December 31, 2022 Fixed Index Fixed Rate Single Premium Total (Dollars in thousands) Balance, beginning of year $ 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 year $ 2,649,322 $ 120,105 $ 4,216 $ 2,773,643 December 31, 2021 Fixed Index Fixed Rate Single Premium Total (Dollars in thousands) Balance, beginning of year $ 3,286,059 $ 119,805 $ 2,641 $ 3,408,505 Write-off related to in-force ceded reinsurance (349,614) — — (349,614) Capitalizations 250,070 57,344 2,269 309,683 Amortization expense (279,831) (25,827) (712) (306,370) Balance, end of year $ 2,906,684 $ 151,322 $ 4,198 $ 3,062,204 Deferred Sales Inducements The following tables present the balances and changes in deferred sales inducements: December 31, 2022 Fixed Index Fixed Rate Total (Dollars in thousands) Balance, beginning of year $ 2,088,591 $ 31,371 $ 2,119,962 Capitalizations 107,684 7 107,691 Amortization expense (178,315) (3,655) (181,970) Balance, end of year $ 2,017,960 $ 27,723 $ 2,045,683 December 31, 2021 Fixed Index Fixed Rate Total (Dollars in thousands) Balance, beginning of year $ 2,180,980 $ 35,705 $ 2,216,685 Capitalizations 95,104 57 95,161 Amortization expense (187,493) (4,391) (191,884) Balance, end of year $ 2,088,591 $ 31,371 $ 2,119,962 |
Policyholder Liabilities
Policyholder Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
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 the years ended December 31, 2022 and 2021 is as follows: Present Value of Expected December 31, 2022 2021 (Dollars in thousands) Balance, beginning of year $ 402,305 $ 384,510 Beginning balance at original discount rate 352,708 315,793 Effect of changes in cash flow assumptions 1,277 7,892 Effect of actual variances from expected experience (1,941) (1,908) Adjusted beginning of year balance 352,044 321,777 Issuances 16,072 55,229 Interest accrual 14,664 14,819 Benefit payments — — Net premiums collected — — Derecognition (lapses) (40,327) (39,117) Ending balance at original discount rate 342,453 352,708 Effect of changes in discount rate assumptions (23,776) 49,597 Balance, end of year $ 318,677 $ 402,305 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: December 31, 2022 2021 (Dollars in thousands) Liability for future policy benefits $ 318,677 $ 402,305 Deferred profit liability 19,223 18,716 337,900 421,021 Less: Reinsurance recoverable (1,259) (1,283) Net liability for future policy benefits, after reinsurance recoverable $ 336,641 $ 419,738 The weighted-average liability duration of the liability for future policy benefits is as follows: December 31, 2022 2021 SPIA With Life Contingency: Weighted-average liability duration of the liability for future policy benefits (years) 6.78 7.57 The following table presents the amount of undiscounted expected future benefit payments and expected gross premiums: December 31, 2022 2021 (Dollars in thousands) SPIA With Life Contingency: Expected future benefit payments $ 467,627 $ 485,411 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 the years ended December 31, 2022 and 2021 is as follows: December 31, 2022 December 31, 2021 Gross Premiums Interest Gross Premiums Interest (Dollars in thousands) SPIA With Life Contingency $ 16,994 $ 14,613 $ 53,778 $ 14,777 Total $ 16,994 $ 14,613 $ 53,778 $ 14,777 The weighted-average interest rate is as follows: December 31, 2022 2021 Interest accretion rate 4.25 % 4.29 % Current discount rate 5.37 % 1.74 % Market Risk Benefits The balances of and changes in the liability for market risk benefits (MRB) for the years ended December 31, 2022 and 2021 is as follows: December 31, 2022 December 31, 2021 Fixed Rate Fixed Index Fixed Rate Fixed Index (Dollars in thousands) MRB Liability Balance, beginning of year $ 78,411 $ 2,557,378 $ 73,904 $ 2,294,129 Balance, beginning of year, before effect of changes in the instrument-specific credit risk 77,731 2,310,437 74,371 2,064,555 Issuances 376 59,452 23 22,836 Interest accrual 1,349 72,551 986 39,614 Attributed fees collected 1,270 125,168 1,326 122,756 Benefits payments — — — — Effect of changes in interest rates (19,421) (952,265) (4,091) (206,055) Effect of changes in equity markets — 186,618 — (151,145) Effect of changes in equity index volatility — 241,563 — (57,940) Actual policyholder behavior different from expected behavior — — — — Effect of changes in future expected policyholder behavior 602 46,567 369 142,713 Effect of changes in other future expected assumptions (17,552) 363,078 4,747 333,103 Balance, end of year, before effect of changes in the instrument-specific credit 44,355 2,453,169 77,731 2,310,437 Effect of changes in the instrument-specific credit risk (6,492) (265,411) 680 246,941 Balance, end of year 37,863 2,187,758 78,411 2,557,378 Reinsured MRB, end of period 10,656 593,959 — 156,931 Balance, end of period, net of reinsurance $ 27,207 $ 1,593,799 $ 78,411 $ 2,400,447 Net amount at risk (a) $ 258,826 $ 10,987,198 $ 239,995 $ 10,001,385 Weighted average attained age of contract holders (years) 69 71 69 70 (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 liability position to market risk benefit amounts included in other assets and market risk benefit reserves, respectively, in the Consolidated Balance Sheets: December 31, 2022 Asset Liability Net (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 December 31, 2021 Asset Liability Net (Dollars in thousands) Fixed Index Annuities $ 520,566 $ 3,077,944 $ 2,557,378 Fixed Rate Annuities 5,807 84,218 78,411 Total $ 526,373 $ 3,162,162 $ 2,635,789 Reinsured Market Risk Benefits The following table presents the balances and changes in reinsured market risk benefits associated with fixed index annuities for the years ended December 31, 2022 and 2021: December 31, 2022 December 31, 2021 Fixed Rate Fixed Index Fixed Rate Fixed Index (Dollars in thousands) Ceded MRB Balance, beginning of year $ — $ 156,931 $ — $ 90,022 Inception of in-force ceded reinsurance 10,091 334,835 — 100,327 Issuances — 36,036 — 915 Interest accrual 104 7,598 — 414 Attributed fees collected 28 23,745 — 9,904 Benefits payments — — — — Effect of changes in interest rates 135 (171,948) — 1,601 Effect of changes in equity markets 118 43,799 — (6,148) Effect of changes in equity index volatility — 34,278 — (9,074) Actual policyholder behavior different from expected behavior — — — — Effect of changes in future expected policyholder behavior 180 12,598 — 16,878 Effect of changes in other future expected assumptions — 116,087 — (47,908) Balance, end of year $ 10,656 $ 593,959 $ — $ 156,931 Net amount at risk (a) $ 72,350 $ 2,402,964 $ — $ 582,315 Weighted average attained age of contract holders (years) 70 71 0.00 69 (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: December 31, 2022 Asset Liability Net (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 December 31, 2021 Asset Liability Net (Dollars in thousands) Fixed Index Annuities $ 250,046 $ 93,115 $ 156,931 Fixed Rate Annuities — — — Total $ 250,046 $ 93,115 $ 156,931 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: 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% December 31, 2021 Fair Value Valuation Significant Inputs Range Weighted (in thousands) Market risk benefits $ 2,635,789 Discounted cash flow Utilization (a) —% - 60.00% 3.25% Ceded market risk benefits 156,931 Option budget (b) 1.55% - 2.50% 2.02% Risk-free interest rate (c) 0.53% - 2.05% 1.77% Nonperformance risk (d) 0.07% - 2.50% 1.49% (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. 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. During the year ended December 31, 2021, the Company made the following notable changes to significant inputs and assumptions resulting in changes in the fair value measurement and market risk benefits: • Utilization assumptions were decreased resulting in a decrease to the market risk benefits liability and an increase to net income. • Option budget assumptions were decreased resulting in an increase to the market risk benefits liability and a decrease to net income. Policyholder Account Balances The following table presents the balances and changes in policyholders’ account balances: December 31, 2022 December 31, 2021 Fixed Rate Fixed Index Fixed Rate Fixed Index (Dollars in thousands) Balance, beginning of year $ 6,860,060 $ 55,003,305 $ 5,083,537 $ 53,612,622 Issuances 159,570 3,001,738 2,523,061 3,194,663 Premiums received 4,811 170,493 (3,649) 258,159 Policy charges (6,587) (272,604) (4,706) (258,552) Surrenders and withdrawals (574,590) (3,945,504) (883,440) (3,644,593) Benefit payments (11,328) (727,847) (9,304) (621,700) Interest credited 151,762 599,259 154,267 2,464,347 Other 5,879 (2,606) 294 (1,641) Balance, end of period $ 6,589,577 $ 53,826,234 $ 6,860,060 $ 55,003,305 Weighted-average crediting rate 2.28 % 1.11 % 2.62 % 4.64 % Net amount at risk (a) $ 258,826 $ 10,987,198 $ 239,995 $ 10,001,385 Cash surrender value 6,208,597 49,551,657 6,392,133 50,177,630 (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: December 31, 2022 December 31, 2021 (Dollars in thousands) Fixed index annuities policyholder account balances $ 53,826,234 $ 55,003,305 Fixed rate annuities policyholder account balances 6,589,577 6,860,060 Embedded derivative adjustment (b) (1,996,640) 305,340 Liability for future policy benefits 318,677 402,305 Deferred profit liability 19,223 18,716 Other 24,765 25,096 Total $ 58,781,836 $ 62,614,822 (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: 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 December 31, 2021 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% $ — $ 284,190 $ 305,770 $ 133,060 $ 723,020 0.50% - 1.00% 2,020,896 1,383,008 2,422,207 60,413 5,886,524 1.00% - 1.50% 55,375 10,874 637 — 66,886 1.50% - 2.00% — 84 — — 84 2.00% - 2.50% 134,690 121,299 151 — 256,140 2.50% - 3.00% 1,011,812 — — — 1,011,812 Greater than 3.00% — — — — — Allocated to index strategies 47,058,839 Total $ 3,222,773 $ 1,799,455 $ 2,728,765 $ 193,473 $ 55,003,305 Fixed Rate Annuities 0.00% - 0.50% $ 108 $ — $ — $ — $ 108 0.50% - 1.00% 42,216 119,438 351,059 24,950 537,663 1.00% - 1.50% 491,489 226 — — 491,715 1.50% - 2.00% 834,249 99,654 129,943 — 1,063,846 2.00% - 2.50% 3,254,565 22 — — 3,254,587 2.50% - 3.00% 1,040,592 7,754 — — 1,048,346 Greater than 3.00% 463,795 — — — 463,795 Total $ 6,127,014 $ 227,094 $ 481,002 $ 24,950 $ 6,860,060 |
Reinsurance and Policy Provisio
Reinsurance and Policy Provisions | 12 Months Ended |
Dec. 31, 2022 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance and Policy Provisions | Reinsurance and Policy Provisions Coinsurance We have two coinsurance agreements with EquiTrust Life Insurance Company ("EquiTrust"), covering 70% of certain of American Equity Life's fixed index and fixed rate annuities issued from August 1, 2001 through December 31, 2001, 40% of those contracts issued during 2002 and 2003, and 20% of those contracts issued from January 1, 2004 to July 31, 2004. The business reinsured under these agreements may not be recaptured. Coinsurance deposits (aggregate policy benefit reserves transferred to EquiTrust under these agreements) were $323.7 million and $381.4 million at December 31, 2022 and 2021, respectively. We remain liable to policyholders with respect to the policy liabilities ceded to EquiTrust should EquiTrust fail to meet the obligations it has coinsured. The balance due from or due to EquiTrust under these agreements was a $0.8 million receivable and $7.8 million payable at December 31, 2022 and 2021, respectively, and represents the fair value of call options held by us to fund index credits related to the ceded business net of cash due to or from EquiTrust related to monthly settlements of policy activity and other expenses. We have three coinsurance agreements with Athene Life Re Ltd. ("Athene"), an unauthorized life reinsurer domiciled in Bermuda. One agreement ceded 20% of certain of American Equity Life's fixed index annuities issued from January 1, 2009 through March 31, 2010. The second agreement ceded 80% of American Equity Life's multi-year rate guaranteed annuities issued from July 1, 2009 through December 31, 2013 and 80% of Eagle Life's multi-year rate guaranteed annuities issued from November 20, 2013 through December 31, 2013. The third agreement ceded 80% of certain of American Equity Life's and Eagle Life's multi-year rate guaranteed annuities issued on or after January 1, 2014 through December 31, 2020, 80% of Eagle Life's fixed index annuities issued prior to January 1, 2017, 50% of certain of Eagle Life's fixed index annuities issued from January 1, 2017 through December 31, 2018, 20% of certain of Eagle Life's fixed index annuities issued on or after January 1, 2019 through December 31, 2020 and 80% of certain of American Equity Life's fixed index annuities issued from August 1, 2016 through December 31, 2016. Effective January 1, 2021, no new business is being ceded to Athene. The business reinsured under any of the Athene agreements may not be recaptured. Coinsurance deposits (aggregate policy benefit reserves transferred to Athene under these agreements) were $3.1 billion and $3.7 billion at December 31, 2022 and 2021, respectively. American Equity Life is an intermediary for reinsurance of Eagle Life's business ceded to Athene. American Equity Life and Eagle Life remain liable to policyholders with respect to the policy liabilities ceded to Athene should Athene fail to meet the obligations it has coinsured. The annuity deposits that have been ceded to Athene are secured by assets held in trusts and American Equity Life is the sole beneficiary of the trusts. The assets in the trusts are required to remain at a value that is sufficient to support the current balance of policy benefit liabilities of the ceded business on a statutory basis. If the value of the trust accounts would ever be less than the amount of the ceded policy benefit liabilities on a statutory basis, Athene is required to either establish a letter of credit or deposit securities in the trusts for the amount of any shortfall. The balance due under these agreements to Athene was $16.9 million and $74.8 million at December 31, 2022 and 2021, respectively, and represents the fair value of call options held by us to fund index credits related to the ceded business net of cash due from Athene related to monthly settlements of policy activity. Effective July 1, 2021 American Equity Life entered into a reinsurance agreement with North End Re (North End Re reinsurance treaty), a wholly-owned subsidiary of Brookfield Asset Management Reinsurance Partners Ltd. (“Brookfield Reinsurance” or “Brookfield”) to reinsure approximately $4.4 billion of in-force fixed indexed annuity product liabilities as of the effective date of the reinsurance agreement, 70% on a modified coinsurance (“modco”) basis and 30% on a coinsurance basis. The liabilities reinsured on a coinsurance basis are secured by assets held in both a statutory and supplemental trust (collectively referred to as the “trusts”). The liabilities reinsured on a modco basis are secured by a segregated modco account in which the assets are maintained by American Equity Life. American Equity Life transferred cash of $2.6 billion to the segregated modco account and $1.1 billion to the statutory trust at close of this reinsurance agreement on October 8, 2021. American Equity Life will receive an annual ceding commission equal to 49 basis points and the Company will receive an annual asset liability management fee equal to 30 basis points calculated based on the initial cash surrender value of liabilities ceded. Such fees are fixed and contractually guaranteed for six years with the additional and final seventh year payment partially contingent on certain performance obligations for both parties. The initial net present value of the ceding commission related to the in-force business was $114.1 million. As part of the North End Re reinsurance treaty, American Equity Life is also ceding 75% of certain fixed index annuities issued after the effective date of the agreement, 70% on a modco basis and 30% on a coinsurance basis to North End Re. Effective July 1, 2022, the North End Re reinsurance treaty was amended to include additional fixed index annuity products. As part of this amendment, 75% of an additional block of in-force fixed indexed annuity product liabilities issued after July 1, 2021 was ceded, 70% on a modco basis and 30% on a coinsurance basis. On sales subsequent to the effective date of the North End Re reinsurance treaty, American Equity Life will receive an annual ceding commission equal to 140 basis points and the Company will receive an annual asset liability management fee equal to 30 basis points calculated based on the initial cash surrender value of liabilities ceded. Such fees are fixed and contractually guaranteed for six years with the additional and final seventh year payment being contingent on certain performance obligations for both parties. The initial net present value of the ceding commission related to the flow business ceded in 2022 and 2021 was $67.7 million and $27.1 million, respectively. The asset liability management fee recognized in Other revenue in 2022 and 2021 was $12.7 million and $5.5 million, respectively. In addition, American Equity Life will receive certain acquisition cost reimbursements and an on-going annual expense reimbursement on each policy subject to the reinsurance agreement for the entirety of the policy duration. Acquisition cost reimbursements will reduce policy acquisition costs deferred. As a result of the North End Re reinsurance treaty, there is a deferred gain of $480.5 million and $335.4 million which is recorded in Other liabilities as of December 31, 2022 and 2021, respectively. This deferred gain represents the unamortized portion of the cost of reinsurance related to the in-force business and new business which will be amortized over the life of the underlying reinsured policies. The deferred gain consists primarily of the difference between liabilities ceded and assets transferred as part of the reinsurance agreement and the present value of the ceding commissions previously noted offset by a reduction in deferred policy acquisition costs associated with the the in-force business ceded. The amortization of the deferred gain recognized in Other revenue in 2022 and 2021 was $24.2 million and $9.6 million, respectively. American Equity Life remains liable to policyholders with respect to the policy liabilities ceded to North End Re should North End Re fail to meet the obligations it has reinsured. The assets in the trusts and modco account are required to remain at a value that is sufficient to support the current balance of policy benefit liabilities of the ceded business on a statutory basis. The assets in the trusts and modco account are subject to investment management agreements between American Equity Life and North End Re. The assets in the modco account earned net investment income of $95.4 million and $11.4 million during 2022 and 2021, respectively, which are reflected within the Net investment income line in the Consolidated Statements of Operations and presented net of amounts earned for the benefit of the reinsurer. As of December 31, 2022 and 2021, coinsurance deposits (aggregate policy benefits reserves transferred to North End Re under these agreements) were $5.8 billion and $4.8 billion, respectively. The balance due under these agreements to North End Re was $124.2 million and $127.9 million which is recorded in Other liabilities at December 31, 2022 and 2021, respectively. Separate from the reinsurance transaction, Brookfield Reinsurance, has an approximate 18.7% interest in the Company's outstanding common stock as of December 31, 2022. See Note 16 - Earnings Per Common Share and Stockholders' Equity for further discussion of Brookfield's ownership. Effective October 1, 2022 American Equity Life entered into a reinsurance agreement with an unaffiliated reinsurer AeBe ISA LTD (“AeBe”), a Bermuda exempted company affiliated with 26North Holdings LP (“26North”), that is an incorporated segregated account licensed as a Class E reinsurer. Under the agreement, American Equity Life ceded $4.2 billion of certain in-force fixed indexed and fixed rate annuity product liabilities as of October 3, 2022, the effective date of the reinsurance agreement, 75% on a funds withheld coinsurance basis and 25% on a coinsurance basis. The liabilities reinsured on a coinsurance basis are secured by assets held in both a statutory and supplemental trust (collectively referred to as the “trusts”). The liabilities reinsured on a funds withheld basis are secured by a segregated funds withheld account in which the assets are maintained by American Equity Life. American Equity Life transferred cash and investments with a fair value of $3.0 billion to the segregated funds withheld account and $1.0 billion to the statutory trust at close of this reinsurance agreement on October 3, 2022. At the close of the reinsurance agreement, American Equity Life received a closing ceding commission of $70.0 million. American Equity Life will also receive certain acquisition cost reimbursements and an on-going annual expense reimbursement on each policy subject to the reinsurance agreement for the entirety of the policy duration. As a result of the AeBe reinsurance treaty, there is a deferred gain of $51.6 million which is recorded in Other liabilities as of December 31, 2022. This deferred gain represents the unamortized portion of the cost of reinsurance related to the in-force business which will be amortized over the life of the underlying reinsured policies. The deferred gain consists primarily of the difference between liabilities ceded and assets transferred as part of the reinsurance agreement and the closing ceding commission previously noted offset by a reduction in deferred policy acquisition costs associated with the in-force business ceded. The amortization of the deferred gain recognized in Other revenue in 2022 was $1.1 million. American Equity Life remains liable to policyholders with respect to the policy liabilities ceded to AeBe should AeBe fail to meet the obligations it has reinsured. The assets in the trusts and funds withheld account are required to remain at a value that is sufficient to support the current balance of policy benefit liabilities of the ceded business on a statutory basis. The assets in the trusts and funds withheld account are subject to investment management agreements between American Equity Life and 26North. The assets in the funds withheld account earned net investment income of $42.3 million during 2022, which is reflected within the Net investment income line in the Consolidated Statements of Operations and presented net of amounts earned for the benefit of the reinsurer. As of December 31, 2022, coinsurance deposits (aggregate policy benefits reserves transferred to AeBe under these agreements) were $4.1 billion. The balance due under these agreements to AeBe was $38.0 million which is recorded in Other liabilities at December 31, 2022. American Equity Life has the option to cede liabilities of certain single premium fixed deferred annuities, or policies as otherwise agreed to by parties issued after the treaty effective date, at risk adjusted pricing terms that may be acceptable to American Equity Life at that time. For flow business ceded, American Equity Life will receive an annual ceding commission over the term of the policy of up to 0.50% of the premium received. Amounts ceded to EquiTrust, Athene, North End Re and AeBe under these agreements are as follows: Year Ended December 31, 2022 2021 2020 (Dollars in thousands) Consolidated Statements of Operations Annuity product charges $ 49,093 $ 20,351 $ 7,021 Change in fair value of derivatives (184,388) 140,641 43,080 $ (135,295) $ 160,992 $ 50,101 Interest sensitive and index product benefits $ 103,542 $ 303,035 $ 152,485 Change in fair value of embedded derivatives 81,907 (76,915) 4,352 Other operating costs and expenses 18,318 16,440 17,663 $ 203,767 $ 242,560 $ 174,500 Consolidated Statements of Cash Flows Annuity deposits $ (982,176) $ (424,819) $ (35,667) Cash payments to policyholders 1,029,667 984,260 466,311 $ 47,491 $ 559,441 $ 430,644 We calculate estimated losses on reinsurance recoverable balances by determining an expected loss ratio. The expected loss ratio is based on industry historical loss experience and expected recovery timing adjusted for certain current and forecasted environmental factors management believes to be relevant. Estimated losses related to our reinsurance recoverable balances were $8.7 million and $2.3 million as of December 31, 2022 and 2021, respectively. We monitor concentration of reinsurance risk with third party reinsurers and monitor concentration as well as financial strength ratings of our reinsurers. Financing Arrangements Effective April 1, 2019, we entered into a reinsurance agreement with Hannover Life Reassurance Company of America ("Hannover"), which was treated as reinsurance under statutory accounting practices and as a financing arrangement under GAAP. The statutory surplus benefit under this agreement was eliminated under GAAP and the associated charges were recorded as risk charges and included in Other operating costs and expenses in the Consolidated Statements of Operations. The 2019 Hannover Agreement was a coinsurance funds withheld reinsurance agreement for statutory purposes covering 80% of lifetime income benefit rider payments in excess of policy fund values and waived surrender charges related to penalty free withdrawals on certain business. We paid a quarterly risk charge based on the pretax statutory benefit as of the end of each calendar quarter. Risk charges attributable to our 2019 agreement with Hannover were $33.1 million and $44.7 million during 2021 and 2020, respectively. Effective October 1, 2021, we recaptured the 2019 Hannover agreement. Intercompany Reinsurance Agreements Effective October 1, 2021, American Equity Life entered into a reinsurance agreement with AEL Re Vermont, a wholly-owned captive reinsurance company, to cede a portion of lifetime income benefit rider payments in excess of policy fund values on a funds withheld basis ("The AEL Re Vermont Agreement"). In connection with the agreement, AEL Re Vermont entered into an excess of loss ("XOL") reinsurance agreement with Hannover to retrocede the lifetime income benefit rider payments in excess of the policy fund values ceded under the AEL Re Vermont Agreement after the funds withheld account balance is exhausted. AEL Re Vermont is permitted to carry the XOL treaty as an admitted asset on the AEL Re Vermont statutory balance sheet. The effects of this agreement are not accounted for as reinsurance as it does not satisfy the risk transfer requirements for GAAP. AEL Re Vermont incurred risk charges of $11.7 million and $2.8 million during the years ended December 31, 2022 and 2021, respectively, in relation to this XOL agreement with Hannover. The risk charges are included in Other operating costs and expenses in the Consolidated Statements of Operations. Effective December 31, 2021, American Equity Life executed a coinsurance agreement with AEL Re Bermuda, an affiliated Bermuda reinsurer, wholly-owned by American Equity Investment Life Holding Company, to reinsure a quota share of fixed index annuities issued from January 1, 1997 through December 31, 2007. The treaty is maintained on a funds withheld basis. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We file consolidated federal income tax returns that include all of our wholly-owned subsidiaries. Our income tax expense as presented in the consolidated financial statements is summarized as follows: Year Ended December 31, 2022 2021 2020 (Dollars in thousands) Consolidated statements of operations: Current income taxes $ 20,209 $ 332 $ 3,430 Deferred income taxes 490,926 149,431 141,071 Total income tax expense included in consolidated statements of operations 511,135 149,763 144,501 Stockholders' equity: Expense (benefit) relating to: Adoption of expected credit loss model — — (2,543) Changes in other comprehensive income (1,843,635) 207,353 225,746 Total income tax expense included in consolidated financial statements $ (1,332,500) $ 357,116 $ 367,704 Income tax expense in the consolidated statements of operations differed from the amount computed at the applicable statutory federal income tax rates of 21% for the years ended December 31, 2022, 2021, and 2020 as follows: Year Ended December 31, 2022 2021 2020 (Dollars in thousands) Income before income taxes $ 2,431,712 $ 702,786 $ 815,961 Income tax expense on income before income taxes $ 510,660 $ 147,585 $ 171,352 Tax effect of: State income taxes 2,564 5,239 5,749 Tax exempt net investment income (4,065) (4,715) (4,602) Tax rate differential on net operating loss carryback — — (30,041) Other 1,976 1,654 2,043 Income tax expense $ 511,135 $ 149,763 $ 144,501 Effective tax rate 21.0 % 21.3 % 17.7 % The effective tax rate for the year ended December 31, 2020 was positively impacted by $30.0 million related to the provision of the CARES ACT which allowed net operating losses for 2018 through 2020 to be carried back to previous tax years in which a 35% statutory tax rate was in effect. Deferred income tax assets or liabilities are established for temporary differences between the financial reporting amounts and tax bases of assets and liabilities that will result in deductible or taxable amounts, respectively, in future years. The tax effects of temporary differences that give rise to the deferred tax assets and liabilities at December 31, 2022 and 2021, are as follows: December 31, 2022 2021 (Dollars in thousands) Deferred income tax assets: Policy benefit reserves $ — $ 445,793 Credit losses/impairments 10,531 15,275 Net unrealized losses on available for sale fixed maturity securities 1,063,441 — Amounts due reinsurer 1,030,759 748,812 Other policyholder funds 358 3,332 Deferred compensation 3,866 3,434 Share-based compensation 422 5,171 Net operating loss carryforwards 50,913 87,314 Other 71,417 1,140 Gross deferred tax assets 2,231,707 1,310,271 Deferred income tax liabilities: Deferred policy acquisition costs and deferred sales inducements (976,103) (1,051,900) Net unrealized gains on available for sale fixed maturity securities — (905,050) Derivative instruments (145,785) (107,717) Policy benefit reserves (612,454) (98,616) Investment income items (39,309) (56,285) Other (19,622) (5,120) Gross deferred tax liabilities (1,793,273) (2,224,688) Net deferred income tax asset (liability) $ 438,434 $ (914,417) Included in deferred income taxes is the expected income tax benefit attributable to unrealized losses on available for sale fixed maturity securities. There is no valuation allowance provided for the deferred income tax asset attributable to unrealized losses on available for sale fixed maturity securities. We have the intent and ability to hold these securities to maturity or recovery of value, whichever is sooner. Realization of our deferred income tax assets is more likely than not based on expectations as to our future taxable income and considering all other available evidence, both positive and negative. Therefore, no valuation allowance against deferred income tax assets has been established as of December 31, 2022 and 2021. There were no material income tax contingencies requiring recognition in our consolidated financial statements as of December 31, 2022. Our tax returns are subject to audit by various federal, state and local tax authorities. The Company's income tax returns are subject to examination by the IRS and state tax authorities, generally for three years after they are due or filed, whichever is later. Tax years ended before December 31, 2019 are no longer open to examination by the IRS. |
Notes and Loan Payable
Notes and Loan Payable | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Notes and Loan Payable | Notes and Loan Payable Notes and loan payable includes the following: December 31, 2022 2021 (Dollars in thousands) Senior notes due 2027 Principal $ 500,000 $ 500,000 Unamortized debt issue costs (2,960) (3,537) Unamortized discount (178) (213) Term loan due 2027 Principal 300,000 — Principal paydown (3,750) — Unamortized debt issue costs (1,039) — $ 792,073 $ 496,250 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-year, $300 million unsecured delayed draw term loan credit agreement. On July 6, 2022, we borrowed $300 million under this agreement. We will pay a floating rate of interest on the term loan utilizing SOFR adjusted for a credit spread. The term loan matures on February 15, 2027 and is amortizing at 2.5% annually for the first three years and 5.0% for the last two years. |
Subordinated Debentures
Subordinated Debentures | 12 Months Ended |
Dec. 31, 2022 | |
Subordinated Borrowings [Abstract] | |
Subordinated Debentures | Subordinated Debentures Our wholly-owned subsidiary trust (which is not consolidated) has issued fixed rate and floating rate trust preferred securities and has used the proceeds from these offerings to purchase subordinated debentures from us. We also issued subordinated debentures to the trust in exchange for all of the common securities of the trust. The sole assets of the trust are the subordinated debentures and any interest accrued thereon. The interest payment dates on the subordinated debentures correspond to the distribution dates on the trust preferred securities issued by the trust. The trust preferred securities mature simultaneously with the subordinated debentures. Our obligations under the subordinated debentures and related agreements provide a full and unconditional guarantee of payments due under the trust preferred securities. Following is a summary of subordinated debt obligations to the trusts at December 31, 2022 and 2021: December 31, 2022 2021 Interest Rate Due Date (Dollars in thousands) American Equity Capital Trust II $ 78,753 $ 78,421 5% June 1, 2047 The principal amount of the subordinated debentures issued by us to American Equity Capital Trust II ("Trust II") is $100.0 million. These debentures were assigned a fair value of $74.7 million at the date of issue (based upon an effective yield-to-maturity of 6.8%). The difference between the fair value at the date of issue and the principal amount is being accreted over the life of the debentures. The trust preferred securities issued by Trust II were issued to Iowa Farm Bureau Federation, which owns a majority of FBL Financial Group, Inc. ("FBL"). The consideration received by Trust II in connection with the issuance of its trust preferred securities consisted of fixed income securities of equal value which were issued by FBL. |
Retirement and Share-based Comp
Retirement and Share-based Compensation Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Retirement and Share-based Compensation Plans | Retirement and Share-based Compensation Plans We have adopted a contributory defined contribution plan which is qualified under Section 401(k) of the Internal Revenue Code. The plan covers substantially all of our full-time employees subject to minimum eligibility requirements. Employees can contribute a percentage of their annual salary (up to a maximum annual contribution of $20,500 in 2022, $19,500 in 2021 and $19,500 in 2020) to the plan. We contribute an additional amount, subject to limitations, based on the voluntary contribution of the employee. Further, the plan provides for additional employer contributions based on the discretion of the Board of Directors. Plan contributions charged to expense were $3.3 million, $2.7 million and $2.4 million for the years ended December 31, 2022, 2021 and 2020, respectively. The following table summarizes compensation expense recognized for employees and directors as a result of share-based compensation: Year Ended December 31, 2022 2021 2020 (Dollars in thousands) ESOP $ 4,152 $ 3,377 $ 2,908 Employee Incentive Plans 14,454 22,886 7,855 Director Equity Plans 1,053 1,262 1,056 $ 19,659 $ 27,525 $ 11,819 ESOP The principal purpose of the American Equity Investment Employee Stock Ownership Plan ("ESOP") is to provide each eligible employee with an equity interest in us. Employees become eligible once they have completed a minimum of six months of service. Employees become 100% vested after two years of service. Our contribution to the ESOP is determined by the Board of Directors. Employee Incentive Plans During 2020, the 2016 Employee Incentive Plan ("2016 Plan") was amended and renamed the American Equity Investment Life Holding Company Amended and Restated Equity Incentive Plan ("Amended Plan"). The Amended Plan increased the number of shares of Common stock reserved for issuance by 3,000,000 shares to 5,500,000 shares of our Common stock which may be issued in the form of grants of options, stock appreciation rights, restricted stock awards and restricted stock units. In addition, the Amended Plan allows for awards to be granted to members of the Board of Directors of the Company. At December 31, 2022, we had 776,516 shares of common stock available for future grant under the Amended Plan. We have a long-term performance incentive plan under which certain members of our management team are granted performance-based restricted stock units pursuant to the Amended Plan or the 2016 Plan. During 2022, 2021 and 2020, we granted 229,880, 186,091 and 217,781 restricted stock units under these plans, respectively. For the 2022 and 2021 grants, vesting is tied to threshold, target and maximum performance goals for the three year periods ending December 31, 2024 and December 31, 2023, respectively. Fifty percent of the restricted stock units will vest if we meet threshold goals, 100% of the restricted stock units will vest if we meet target performance goals and 200% of the restricted stock units will vest if we meet maximum performance goals. For the 2020 grant, vesting is tied to threshold, target and maximum performance goals for the three year period ending December 31, 2022. Fifty percent of the restricted stock units will vest if we meet threshold goals, 100% of the restricted stock units will vest if we meet target performance goals and 150% of the restricted stock units will vest if we meet maximum performance goals. Compensation expense is recognized over the three year vesting period based on the likelihood of meeting threshold, target and maximum goals. Restricted stock units that ultimately vest are payable in an equal number of shares of our common stock. Restricted stock units are accounted for as equity awards and the estimated fair value of restricted stock units is based upon the closing price of our common stock on the date of grant. During 2022, 2021 and 2020 we granted 159,494, 199,597 and 133,429, respectively, time-based restricted stock units to employees under the Amended Plan or the 2016 Plan. These grants vest one During 2022, 2021 and 2020, we granted 0, 391,553 and 105,809, respectively, options to employees under the Amended Plan or the 2016 Plan at an exercise price equal to the fair market value of our common stock on the date of grant. These options vest over a period of one During 2022, a strategic incentive award was approved under the Amended Plan in which the Chief Executive Officer has the opportunity to earn the value of up to 1.2 million shares of AEL common stock based upon attainment of specified significant sustained increases in AEL's common stock price on or before December 31, 2027. The award has four tranches with a share value objective for each tranche based on AEL's 30-day volume weighted average common stock price. Fifty percent of each tranche is paid in shares of AEL common stock, subject to a stay requirement up to 2 years, and fifty percent of each tranche is paid in cash upon attainment of the share value objective. The portion of the award payable in shares is accounted for as an equity award, and the portion of the award payable in cash is accounted for as a liability award. The fair value of both the equity award and liability award were calculated using a Monte Carlo simulation. Compensation expense is recognized over a service period which is the longer of the stay requirement, where applicable, or a derived service period calculated using a Monte Carlo simulation. There was $4.2 million of compensation expense recognized for the year ended December 31, 2022 for this award. During 2021 and 2020, we granted 855,052 and 709,958 performance-based options ("Performance Options") to employees under the Amended Plan at an exercise price equal to the fair market value of our common stock on the date of grant. These Performance Options vest based upon the timing of meeting the market condition of a 30-day volume weighted average common stock price of $37.00 per common share. Fifty percent of the Performance Options granted vest upon the later of: (i) the market condition noted above being met; and (ii) the one year anniversary of the Grant Date. The remaining fifty percent of the Performance Options granted vest on the one year anniversary of the vesting of the initial fifty percent of the Performance Options. The market condition for these performance options was met on January 4, 2022. Compensation expense for the Performance Options is recognized over the requisite service period. Director Equity Plans During 2022, 2021 and 2020, we issued 32,409, 39,273 and 51,450 shares of common stock under the Amended Plan to our Directors, all of which are restricted stock, and which vest on the earlier of the next annual meeting date or one year from the grant date provided the individual remains a Director during that time period. Changes in the number of stock options granted to employees outstanding during the years ended December 31, 2022, 2021 and 2020 are as follows: Number of Weighted-Average Total (Dollars in thousands, except per share data) Outstanding at January 1, 2020 828,913 $ 19.91 $ 16,506 Granted 815,767 26.70 21,778 Canceled (31,200) 21.50 (670) Exercised (355,563) 16.98 (6,038) Outstanding at December 31, 2020 1,257,917 25.10 31,576 Granted 1,246,605 29.15 36,336 Canceled (146,803) 25.44 (3,735) Exercised (295,000) 22.88 (6,749) Outstanding at December 31, 2021 2,062,719 27.84 57,428 Granted — — — Canceled (102,143) 27.49 (2,808) Exercised (173,782) 24.59 (4,273) Outstanding at December 31, 2022 1,786,794 28.18 $ 50,347 The following table summarizes information about stock options outstanding at December 31, 2022: Stock Options Outstanding Stock Options Vested Range of Exercise Prices Number of Remaining Weighted-Average Number of Remaining Weighted-Average $21.89 - $26.72 375,820 7.83 $ 26.07 126,224 8.01 $ 26.72 $27.05 - $32.58 1,410,974 8.10 28.74 606,322 8.09 28.71 $21.89 - $32.58 1,786,794 8.05 28.18 732,546 8.08 28.37 The aggregate intrinsic value for stock options outstanding and vested awards was $31.2 million and $12.6 million, respectively, at December 31, 2022. For the years ended December 31, 2022, 2021 and 2020, the total intrinsic value of options exercised by officers, directors and employees was $3.7 million, $1.2 million and $2.2 million, respectively. Intrinsic value for stock options is calculated as the difference between the exercise price of the underlying awards and the price of our common stock as of the reporting date. Cash received from stock options exercised for the years ended December 31, 2022, 2021 and 2020 was $4.3 million, $6.7 million and $6.0 million, respectively. During 2022, a new incentive plan was approved under which certain members of management are awarded an initial cash grant that can accumulate additional value based on the performance of certain private asset investments during the vesting period. The cash grant cliff |
Statutory Financial Information
Statutory Financial Information and Dividend Restrictions | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Statutory Financial Information and Dividend Restrictions | Statutory Financial Information and Dividend Restrictions Statutory accounting practices prescribed or permitted by regulatory authorities for our life insurance subsidiaries differ from GAAP. Net income (loss) for our primary life insurance subsidiary as determined in accordance with statutory accounting practices was as follows: Year Ended December 31, 2022 2021 2020 (Dollars in thousands) American Equity Life $ 151,857 $ (863,818) $ (34,467) Statutory capital and surplus for our primary life insurance subsidiary was as follows: December 31, 2022 2021 (Dollars in thousands) American Equity Life $ 3,692,602 $ 4,078,532 American Equity Life is domiciled in the State of Iowa and is regulated by the Iowa Insurance Division. In some instances, the Iowa Insurance Division has adopted prescribed or permitted statutory accounting practices that differ from the required accounting outlined in National Association of Insurance Commissioners ("NAIC") Statutory Accounting Principles ("SAP"). For the year ended December 31, 2022, American Equity Life's use of prescribed statutory accounting practices resulted in higher statutory capital and surplus of $83.0 million relative to NAIC SAP due to its accounting for call option derivative instruments and fixed index annuity reserves. For the year ended December 31, 2021, American Equity Life's use of the same prescribed statutory accounting practice resulted in lower statutory capital and surplus of $210.2 million. We purchase call options to hedge the growth in interest credited on fixed index products. The Iowa Insurance Division allows an insurer to elect (1) to use an amortized cost method to account for such call options and (2) to use a fixed index annuity reserve calculation methodology under which call options associated with the current index interest crediting term are valued at zero. Prior approval of regulatory authorities is required for the payment of dividends to the parent company by American Equity Life which exceed an annual limitation. American Equity Life may pay dividends without prior approval, unless such payments, together with all other such payments within the preceding twelve months, exceed the greater of (1) net gain from operations before net realized capital gains/losses for the preceding calendar year or, (2) 10% of the American Equity Life's surplus at the preceding year-end. The amount of dividends permitted to be paid by American Equity Life to its parent company without prior approval of regulatory authorities is $369.3 million as of December 31, 2022. The Parent Company relies on its subsidiaries for cash flow, which has primarily been in the form of investment management fees and dividends. Retained earnings in our consolidated financial statements primarily represent undistributed earnings of American Equity Life. As such, our ability to pay dividends is limited by the regulatory restriction placed upon insurance companies as described above. In addition, American Equity Life retains funds to allow for sufficient capital for growth. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We lease our office spaces and certain equipment under various operating leases. Rent expense for the years ended December 31, 2022, 2021 and 2020 totaled $5.2 million, $3.8 million and $4.2 million, respectively. At December 31, 2022, the aggregate future minimum lease payments are $28.5 million. The following represents payments due by period for operating lease obligations as of December 31, 2022 (dollars in thousands): Year Ending December 31: 2023 $ 3,792 2024 4,112 2025 3,985 2026 3,587 2027 2,014 2028 and thereafter 11,013 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 December 31, 2022 to limited partnerships of $1.7 billion and to fixed maturity securities of $237.4 million. Through our FHLB membership, we have issued funding agreements to the FHLB in exchange for cash advances. As of December 31, 2022, we had $300.0 million of FHLB funding agreements outstanding. We are required to provide collateral in excess of the funding agreement amounts outstanding. The fixed maturity security investments pledged for collateral had a fair value of $1.2 billion at December 31, 2022. |
Earnings Per Common Share and S
Earnings Per Common Share and Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share and Stockholders' Equity | Earnings Per Common Share and Stockholders' Equity Earnings Per Common Share The following table sets forth the computation of earnings per common share and earnings per common share - assuming dilution: Year Ended December 31, 2022 2021 2020 (Dollars in thousands, except per share data) Numerator: Net income available to common stockholders - numerator for earnings per common share $ 1,876,544 $ 509,348 $ 637,945 Denominator : Weighted average common shares outstanding 90,558,121 93,860,378 92,055,035 Effect of dilutive securities: Stock options and deferred compensation agreements 523,248 271,422 93,014 Restricted stock and restricted stock units 456,759 359,359 244,447 Denominator for earnings per common share - assuming dilution 91,538,128 94,491,159 92,392,496 Earnings per common share $ 20.72 $ 5.43 $ 6.93 Earnings per common share - assuming dilution $ 20.50 $ 5.39 $ 6.90 There were no options to purchase shares of our common stock outstanding excluded from the computation of diluted earnings per common share during the years ended December 31, 2022, 2021 and 2020, 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 the year ended December 31, 2022, 2021, and 2020, we paid dividends totaling $23.8 million, $23.8 million, and $24.5 million, respectively, for Series A preferred stock and $19.9 million, $19.9 million, and $9.0 million, respectively, for Series B preferred stock. The Series A and Series B preferred stock rank senior to our common stock with respect to dividends, to the extent declared, and in liquidation, to the extent of the liquidation preference. The Series A and Series B preferred stock are not subject to any mandatory redemption, sinking fund, retirement fund, purchase fund or similar provisions. 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 October 18, 2020, an additional $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. From the 2020 inception of the share repurchase program through December 31, 2022, we have repurchased approximately 23.9 million shares of our common stock at an average price of $34.74 per common share, including 14.8 million shares repurchased during the year ended December 31, 2022. As of December 31, 2022, we had $569 million remaining under our share repurchase program. Treasury Stock As of December 31, 2022, we held 24,590,353 shares of treasury stock with a carrying value of $823.1 million. As of December 31, 2021, we held 9,936,715 shares of treasury stock with a carrying value of $260.6 million. |
Schedule I - Summary of Investm
Schedule I - Summary of Investments - Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule I - Summary of Investments - Other Than Investments in Related Parties | Schedule I—Summary of Investments— Other Than Investments in Related Parties AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY December 31, 2022 Column A Column B Column C Column D Type of Investment Amortized Fair Amount at (Dollars in thousands) Fixed maturity securities: Available for sale: U.S. Government and agencies $ 173,638 $ 169,071 $ 169,071 States, municipalities and territories 4,356,251 3,822,982 3,822,982 Foreign corporate securities and foreign governments 748,770 676,852 676,852 Corporate securities 27,706,440 24,161,921 24,161,921 Residential mortgage backed securities 1,492,242 1,377,611 1,377,611 Commercial mortgage backed securities 4,098,755 3,687,478 3,687,478 Other asset backed securities 6,289,923 5,908,702 5,908,702 Total fixed maturity securities 44,866,019 39,804,617 39,804,617 Mortgage loans on real estate 6,949,027 6,502,463 6,949,027 Real estate investments 1,053,569 1,056,063 1,056,063 Derivative instruments 425,097 431,727 431,727 Limited partnerships and limited liability companies 1,266,779 1,266,779 Other investments 1,818,144 1,817,085 Total investments $ 56,378,635 $ 51,325,298 (1) On the basis of cost adjusted for repayments and amortization of premiums and accrual of discounts for fixed maturity securities and short-term investments, unpaid principal balance less allowance for credit losses for mortgage loans, original cost reduced by impairments and/or depreciation for real estate investments, amortized cost for derivative instruments and original cost adjusted for equity in earnings and distributions for limited partnerships and limited liability companies. See accompanying Report of Independent Registered Public Accounting Firm. |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule II - Condensed Financial Information of Registrant | December 31, 2022 2021 Assets Cash and cash equivalents $ 531,347 $ 362,245 Equity securities of subsidiary trusts 2,360 2,353 Receivable from subsidiaries 8,868 2,783 Notes receivable from subsidiaries 85,654 165,000 Federal income tax recoverable, including amount from subsidiaries 267,076 217,174 Other assets 33,990 20,134 929,295 769,689 Investment in and advances to subsidiaries 2,617,873 7,803,501 Total assets $ 3,547,168 $ 8,573,190 Liabilities and Stockholders' Equity Liabilities: Notes and loan payable $ 792,073 $ 496,250 Subordinated debentures payable to subsidiary trusts 78,753 78,421 Deferred income taxes 268,639 223,304 Other liabilities 58,186 36,499 Total liabilities 1,197,651 834,474 Stockholders' equity: Preferred stock, Series A 16 16 Preferred stock, Series B 12 12 Common stock 84,810 92,514 Additional paid-in capital 1,325,316 1,614,374 Accumulated other comprehensive income (loss) (3,746,230) 3,192,547 Retained earnings 4,685,593 2,839,254 Total stockholders' equity attributable to American Equity Investment Life Holding Company 2,349,517 7,738,717 Total liabilities and stockholders' equity $ 3,547,168 $ 8,573,191 See accompanying note to condensed financial statements. See accompanying Report of Independent Registered Public Accounting Firm. Year Ended December 31, 2022 2021 2020 Revenues: Net investment income $ 6,733 $ 114 $ 1,115 Dividends from subsidiary trusts 155 159 167 Dividends from subsidiaries 325,000 250,000 — Investment advisory fees 110,094 126,643 114,228 Surplus note interest from subsidiary 4,080 4,080 4,080 Change in fair value of derivatives — — 62 Loss on extinguishment of debt — — (2,024) Other revenue 19,153 8,511 346 Total revenues 465,215 389,507 117,974 Expenses: Interest expense on notes and loan payable 32,098 25,581 25,552 Interest expense on subordinated debentures issued to subsidiary trusts 5,331 5,324 5,557 Other operating costs and expenses 114,792 72,435 46,686 Total expenses 152,221 103,340 77,795 Income before income taxes and equity in undistributed income of subsidiaries 312,994 286,167 40,179 Income tax expense (benefit) (1,067) 11,565 13,142 Income before equity in undistributed income of subsidiaries 314,061 274,602 27,037 Equity in undistributed income of subsidiaries 1,606,158 278,421 644,423 Net income available to American Equity Investment Life Holding Company stockholders 1,920,219 553,023 671,460 Less: Preferred stock dividends 43,675 43,675 33,515 Net income available to American Equity Investment Life Holding Company common stockholders $ 1,876,544 $ 509,348 $ 637,945 See accompanying note to condensed financial statements. See accompanying Report of Independent Registered Public Accounting Firm. Year Ended December 31, 2022 2021 2020 Operating activities Net income available to American Equity Investment Life Holding Company stockholders $ 1,920,219 $ 553,023 $ 671,460 Adjustments to reconcile net income to net cash provided by operating activities: Provision for depreciation and amortization 4,925 1,232 1,138 Accrual of discount on equity security (7) (10) (3) Equity in undistributed income of subsidiaries (1,606,158) (278,421) (644,423) Non cash dividend from subsidiaries — (80,000) — Change in fair value of derivatives — — (62) Loss on extinguishment of debt — — 2,024 Accrual of discount on debenture issued to subsidiary trust 332 309 289 Share-based compensation 6,023 10,235 3,303 Deferred income taxes 45,335 222,714 6,408 Changes in operating assets and liabilities: Receivable from subsidiaries (6,085) (365) (1,208) Federal income tax recoverable/payable (49,902) (222,569) (3,879) Other assets (16,363) (5,054) (320) Other liabilities 21,687 21,819 7,617 Net cash provided by operating activities 320,006 222,913 42,344 Investing activities Change in notes receivable from subsidiaries 79,346 (165,000) — Repayment of equity securities — — 2,445 Contribution to subsidiaries (137,002) — (210,000) Purchases of property, plant and equipment (1,432) (12,642) (48) Net cash used in investing activities (59,088) (177,642) (207,603) Financing activities Financing fees incurred and deferred (1,235) — — Repayment of loan payable (3,750) — — Proceeds from issuance of loan payable 300,000 — — Repayment of subordinated debentures — — (81,450) Proceeds from issuance of common stock 253,978 4,844 338,061 Acquisition of treasury stock (566,567) (99,415) (165,094) Proceeds from issuance of preferred stock, net — — 290,260 Dividends paid on common stock (30,567) (31,450) (28,859) Dividends paid on preferred stock (43,675) (43,675) (33,515) Net cash provided by (used in) financing activities (91,816) (169,696) 319,403 Increase (decrease) in cash and cash equivalents 169,102 (124,425) 154,144 Cash and cash equivalents at beginning of year 362,245 486,670 332,526 Cash and cash equivalents at end of year $ 531,347 $ 362,245 $ 486,670 Supplemental disclosures of cash flow information Cash paid during the year for: Interest on notes and loan payable $ 31,288 $ 25,000 $ 25,000 Interest on subordinated debentures 5,000 5,000 6,181 See accompanying note to condensed financial statements. See accompanying Report of Independent Registered Public Accounting Firm. 1. Basis of Presentation The accompanying condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto of American Equity Investment Life Holding Company (Parent Company). In the Parent Company financial statements, its investment in and advances to subsidiaries are stated at cost plus equity in undistributed income (losses) of subsidiaries since the date of acquisition and net unrealized gains/losses on the subsidiaries' fixed maturity securities classified as "available for sale" and equity securities. See Note 11- Notes and Loan Payable and Note 12 - Subordinated Debentures to our audited consolidated financial statements in this document for a description of the Parent Company's notes payable and subordinated debentures payable to subsidiary trusts. |
Schedule III - Supplementary In
Schedule III - Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Schedule III - Supplementary Insurance Information | Schedule III—Supplementary Insurance Information AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY Column A Column B Column C Column D Column E Deferred policy Future policy Unearned Other policy (Dollars in thousands) As of December 31, 2022: Life insurance $ 2,773,643 $ 58,781,836 $ — $ 512,790 As of December 31, 2021: Life insurance $ 3,062,204 $ 62,614,822 $ — $ 226,844 As of December 31, 2020: Life insurance $ 2,225,199 $ 62,352,882 $ — $ 240,904 Column A Column F Column G Column H Column I Column J Premium Net Benefits, Amortization Other (Dollars in thousands) For the year ended December 31, 2022: Life insurance $ 250,093 $ 2,307,463 $ (1,582,537) $ 284,011 $ 276,955 For the year ended December 31, 2021: Life insurance $ 300,833 $ 2,037,475 $ 2,139,045 $ 306,370 $ 272,787 For the year ended December 31, 2020: Life insurance $ 290,609 $ 2,182,078 $ 744,389 $ 649,554 $ 214,745 See accompanying Report of Independent Registered Public Accounting Firm. |
Schedule IV - Reinsurance
Schedule IV - Reinsurance | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Schedule IV - Reinsurance | Schedule IV—Reinsurance AMERICAN EQUITY INVESTMENT LIFE HOLDING COMPANY Column A Column B Column C Column D Column E Column F Gross amount Ceded to Assumed Net amount Percent of (Dollars in thousands) Year ended December 31, 2022 Life insurance in force, at end of year $ 44,003 $ 4,761 $ 43,607 $ 82,849 52.63 % Insurance premiums and other considerations: Annuity product charges $ 279,447 $ 49,093 $ — $ 230,354 — Traditional life, accident and health insurance, and life contingent immediate annuity premiums 19,660 91 170 19,739 0.86 % $ 299,107 $ 49,184 $ 170 $ 250,093 0.07 % Year ended December 31, 2021 Life insurance in force, at end of year $ 48,943 $ 5,131 $ 46,119 $ 89,931 51.28 % Insurance premiums and other considerations: Annuity product charges $ 262,982 $ 20,351 $ — $ 242,631 — Traditional life, accident and health insurance, and life contingent immediate annuity premiums 58,150 117 169 58,202 0.29 % $ 321,132 $ 20,468 $ 169 $ 300,833 0.06 % Year ended December 31, 2020 Life insurance in force, at end of year $ 52,234 $ 5,925 $ 49,577 $ 95,886 51.70 % Insurance premiums and other considerations: Annuity product charges $ 258,248 $ 7,021 $ — $ 251,227 — Traditional life, accident and health insurance, and life contingent immediate annuity premiums 39,323 139 198 39,382 0.50 % $ 297,571 $ 7,160 $ 198 $ 290,609 0.07 % See accompanying Report of Independent Registered Public Accounting Firm. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation and Basis of Presentation The consolidated financial statements include our accounts and our wholly-owned subsidiaries: American Equity Life, American Equity Life of New York, Eagle Life, AERL, L.C., AE Capital, LLC., American Equity Investment Properties, L.C., High Trestle Investment Management, LLC., AEL RE Vermont, Inc., AEL Re Bermuda, Ltd, NC Securities Holdco, LLC, AEL Financial Services, LLC, and North Wolf Bay Holdings, LLC. All significant intercompany accounts and transactions have been eliminated. In addition, our consolidated financial statements include variable interest entities ("VIE"s) in which we are the primary beneficiary. We have relationships with various special purpose entities and other legal entities that must be evaluated to determine if the entities meet the criteria of a VIE. This assessment is performed by reviewing contractual, ownership and other rights and requires use of judgment. First, we determine if we hold a variable interest in an entity by assessing if we have the right to receive expected losses and expected residual returns of the entity. If we hold a variable interest, then the entity is assessed to determine if it is a VIE. An entity is a VIE if the equity at risk is not sufficient to support its activities, if the equity holders lack a controlling financial interest or if the entity is structured with non-substantive voting rights. In addition to the previous criteria, if the entity is a limited partnership or similar entity, it is a VIE if the limited partners do not have the power to direct the entity’s most significant activities through substantive kick-out rights or participating rights. A VIE is evaluated to determine the primary beneficiary. The primary beneficiary of a VIE is the enterprise with (1) the power to direct the activities of a VIE that most significantly impact the entity's economic performance and (2) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. When we are the primary beneficiary, we are required to consolidate the entity in our financial statements. We reassess our involvement with VIEs on a quarterly basis. For further information about VIEs, refer to Note 5 – Variable Interest Entities . |
Basis of Presentation | Consolidation and Basis of Presentation The consolidated financial statements include our accounts and our wholly-owned subsidiaries: American Equity Life, American Equity Life of New York, Eagle Life, AERL, L.C., AE Capital, LLC., American Equity Investment Properties, L.C., High Trestle Investment Management, LLC., AEL RE Vermont, Inc., AEL Re Bermuda, Ltd, NC Securities Holdco, LLC, AEL Financial Services, LLC, and North Wolf Bay Holdings, LLC. All significant intercompany accounts and transactions have been eliminated. In addition, our consolidated financial statements include variable interest entities ("VIE"s) in which we are the primary beneficiary. We have relationships with various special purpose entities and other legal entities that must be evaluated to determine if the entities meet the criteria of a VIE. This assessment is performed by reviewing contractual, ownership and other rights and requires use of judgment. First, we determine if we hold a variable interest in an entity by assessing if we have the right to receive expected losses and expected residual returns of the entity. If we hold a variable interest, then the entity is assessed to determine if it is a VIE. An entity is a VIE if the equity at risk is not sufficient to support its activities, if the equity holders lack a controlling financial interest or if the entity is structured with non-substantive voting rights. In addition to the previous criteria, if the entity is a limited partnership or similar entity, it is a VIE if the limited partners do not have the power to direct the entity’s most significant activities through substantive kick-out rights or participating rights. A VIE is evaluated to determine the primary beneficiary. The primary beneficiary of a VIE is the enterprise with (1) the power to direct the activities of a VIE that most significantly impact the entity's economic performance and (2) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. When we are the primary beneficiary, we are required to consolidate the entity in our financial statements. We reassess our involvement with VIEs on a quarterly basis. For further information about VIEs, refer to Note 5 – Variable Interest Entities . |
Estimates and Assumptions | Estimates and Assumptions The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions are utilized in the calculation of deferred policy acquisition costs, deferred sales inducements, policy benefit reserves, including the fair value of embedded derivatives in fixed index annuity contracts, market risk benefits, valuation of derivatives, valuation of investments, valuation of real estate, allowances for credit losses on available-for-sale fixed maturity securities, allowances for loan losses on mortgage loans and valuation allowances on deferred tax assets. A description of each critical estimate is incorporated within the discussion of the related accounting policies which follow. It is reasonably possible that actual experience could differ from the estimates and assumptions utilized. |
Investments | Investments Fixed maturity securities (bonds maturing more than one year after issuance) that may be sold prior to maturity are classified as available for sale. Available for sale securities are reported at fair value and unrealized gains and losses, if any, on these securities are included directly in a separate component of stockholders' equity, net of income taxes and certain adjustments for assumed changes in amortization of deferred policy acquisition costs, deferred sales inducements and policy benefit reserves. Fair values, as reported herein, of fixed maturity securities are based on quoted market prices in active markets when available, or for those fixed maturity securities not actively traded, yield data and other factors relating to instruments or securities with similar characteristics are used. See Note 2 - Fair Value of Financial Instruments for more information on the determination of fair value. Premiums and discounts are amortized/accrued using methods which result in a constant yield over the securities' expected lives. Amortization/accrual of premiums and discounts on residential and commercial mortgage backed securities incorporate prepayment assumptions to estimate the securities' expected lives. Interest income is recognized as earned. Available-for-sale fixed maturity securities are subject to an allowance for credit loss and changes in the allowance are reported in net income as a component of net realized losses on investments. See Note 3 - Investments for further discussion of the allowance for credit losses on available-for-sale fixed maturity securities. Mortgage loans on real estate are reported at cost adjusted for amortization of premiums and accrual of discounts and net of valuation allowances. Interest income is recorded when earned; however, interest ceases to accrue for loans on which interest is more than 90 days past due based upon contractual terms and/or when the collection of interest is not considered probable. Interest income on impaired loans is recorded on a cash basis. Any changes in the loan valuation allowances are reported in net realized losses on investments. See Note 4 - Mortgage Loans on Real Estate for further discussion of the valuation allowance on the mortgage loan portfolios. Beginning in 2021, we held residential real estate investments through consolidation of an investment company VIE. As this is an investment company VIE, the residential real estate investments are reported at fair value and the change in fair value on these investments is reported in net income as a component of net investment income. Fair values of residential real estate investments are initially based on the cost to purchase the properties and subsequently based on a discounted cash flow methodology. See Note 2 – Fair Values of Financial Instruments for more information on the determination of fair value. The residential real estate investments are leased to renters through operating lease arrangements. Rental income is recognized on a straight-line basis over the term of the respective leases. Beginning in 2022, we held a commercial real estate investment in the ultra-luxury hospitality sector through consolidation of a VIE that is not an investment company. The commercial real estate investment is held at depreciated cost and was initially held at the cost to purchase the property. Our limited partnerships and limited liability companies are accounted for either using the equity method of accounting, NAV as a practical expedient, or fair value. For our equity method investments, we record our share of earnings and losses of the limited partnership or limited liability company as a component of net investment income. Our consolidated limited partnerships are measured using NAV as a practical expedient, as the investments do not have a readily determinable fair value and the investments are in an investment company within scope of Topic 946. Our consolidated real estate limited liability companies are fair valued on a recurring basis using the methods described in Note 2 – Fair Values of Financial Instruments . For all of our limited partnerships and limited liability company investments, recognition of income is reported on a quarter lag due to the availability of the related financial statements of the limited partnerships and limited liability companies. Other invested assets include company owned life insurance, equity securities, short-term debt securities with maturities of greater than three months but less than twelve months when purchased, and short-term loans and collateral loans with maturities less than one year. Company owned life insurance is recorded at the amount that can be realized under the insurance contract at the end of the reporting period, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Dividends are recognized when declared. Realized gains and losses on sales of investments are determined on the basis of specific identification based on the trade date. Federal Home Loan Bank During the first quarter of 2022, American Equity Life became a member of the Federal Home Loan Bank (“FHLB”) which provides access to collateralized borrowings and other FHLB products. We may also issue funding agreements to the FHLB. Both the collateralized borrowings and funding agreements require us to pledge qualified assets as collateral. Obligations arising from funding agreements are used in investment spread activities and reported in Other policy funds and contract claims on the Consolidated Balance Sheets. See Note 15 - Commitments and Contingencies for more information on the funding agreements issued. Entering into FHLB membership, borrowings and funding agreements requires the ownership of FHLB stock and the pledge of assets as collateral. See Note 2 - Fair Value of Financial Instruments and Note 15 - Commitments and Contingencies for more information on the common stock purchased and assets pledged as collateral. 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. |
Derivative Instruments | Derivative Instruments Our derivative instruments include call options used to fund fixed index annuity credits and interest rate swaps which were designated as fair value hedges. Our call option derivative instruments are recognized in the balance sheet at fair value and changes in fair value are recognized immediately in operations. A fair value hedge is a hedge of the exposure to changes in the fair value of a recognized asset or liability, or of an unrecognized firm commitment, that are attributable to a particular risk. The accounting for a fair value hedge is determined at hedge inception. Hedge accounting can be applied if, at inception, and throughout the hedging period, the changes in the fair value of the derivative are highly effective at offsetting the changes in fair value of the hedged asset, liability or unrecognized firm commitment that are attributable to the risk being hedged. When hedge accounting is applied, the change in fair value of the hedged asset, liability or unrecognized firm commitment attributable to the hedged risk are reported in the same line item in the Consolidated Statements of Operations as the changes in fair value of the derivative instrument. For fair value hedges of fixed maturity securities, the change in fair value attributable to the risk being hedged is recognized in the Change in fair value of derivatives line item of the Consolidated Statements of Operations. For any change in fair value of our interest rate swaps that are excluded from hedge effectiveness, we have elected to recognize the change immediately in earnings rather than amortizing over the life of the hedge. At hedge inception, we formally document our risk management objective and strategy for entering into hedging relationships for any fair value hedge. We also quantitatively test for hedge effectiveness using statistical regression analysis on both a prospective and retrospective basis. The results of the testing determine whether we have a highly effective hedging relationship and can apply hedge accounting. Prior to the redemption of our floating rate subordinated debentures in 2020, our derivative instruments also included an interest rate swap and interest rate caps which were used to manage interest rate risk associated with the floating rate component on certain of our subordinated debentures. These interest rate swaps and interest rate caps were recognized in the balance sheet at fair value and changes in fair value were recognized immediately in operations. See Note 6 - Derivative Instruments for more information on derivative instruments. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. Book Overdrafts Under our cash management system, checks issued but not yet presented to banks frequently result in overdraft balances for accounting purposes and are classified as Other liabilities on our consolidated balance sheets. We report the changes in the amount of the overdraft balance as a financing activity in our consolidated statement of cash flows as Change in checks in excess of cash balance. |
Deferred Income Taxes | Deferred Income Taxes Deferred income tax assets or liabilities are computed based on the temporary differences between the financial statement and income tax bases of assets and liabilities using the enacted marginal tax rate. The effect on deferred income tax assets and liabilities resulting from a change in the enacted marginal tax rate is recognized in income in the period that includes the enactment date. Deferred income tax expenses or benefits are based on the changes in the asset or liability from period to period. Deferred income tax assets are subject to ongoing evaluation of whether such assets will more likely than not be realized. The realization of deferred income tax assets primarily depends on generating future taxable income during the periods in which temporary differences become deductible. Deferred income tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax asset will not be realized. In making such a determination, all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations, is considered. The realization of deferred income tax assets related to unrealized losses on available-for-sale fixed maturity securities is also based upon our intent and ability to hold those securities for a period of time sufficient to allow for a recovery in fair value and not realize the unrealized loss. See Note 10 - Income Taxes for more information on deferred income taxes. |
Recognition of Premium Revenues and Costs | Recognition of Premium Revenues and Costs Revenues for annuity products include surrender and living income benefit rider charges assessed against policyholder account balances during the period. Interest sensitive and index product benefits related to annuity products include interest credited or index credits to policyholder account balances pursuant to accounting by insurance companies for certain long-duration contracts. The change in fair value of the embedded derivatives for fixed index annuities equals the change in the difference between policy benefit reserves for fixed index annuities computed under the derivative accounting standard and the long-duration contracts accounting standard at each balance sheet date. Considerations from immediate annuities and supplemental contract annuities with life contingencies are recognized as revenue when the policy is issued. All insurance-related revenues, including the change in the fair value of derivatives for call options related to the business ceded under coinsurance agreements (see Note 9 - Reinsurance and Policy Provisions ), benefits, losses and expenses are reported net of reinsurance ceded. Revenue and fees associated with reinsurance agreements (see Note 9 - Reinsurance and Policy Provisions ) are recognized in Other revenue when earned over the life of the reinsured policies or when service is performed. |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) Other comprehensive income (loss) includes all changes in stockholders' equity during a period except those resulting from investments by and distributions to stockholders. Other comprehensive income (loss) excludes net realized investment gains (losses) included in net income which represents transfers from unrealized to realized gains and losses. |
Reclassifications | Reclassifications Certain amounts in the prior years' consolidated financial statements and related footnotes thereto have been reclassified to conform with the current year presentation. |
Deferred Policy Acquisition Costs (DAC) | Deferred Policy Acquisition Costs (DAC) and Deferred Sales Inducements (DSI) For annuity products, these costs are being amortized in proportion to actual and expected gross profits. Actual and expected gross profits include the excess of net investment income earned over the interest credited or the cost of providing index credits to the policyholders, or the "investment spread"; and to a lesser extent, product charges and fees net of expected excess payments for lifetime income benefit riders and certain policy expenses. Actual and expected gross profits for fixed index annuities also include the impact of amounts recorded for the change in fair value of derivatives and the change in fair value of embedded derivatives. Current period amortization is adjusted retrospectively through an unlocking process when estimates of actual and expected gross profits (including the impact of net realized gains (losses) on investments) to be realized from a group of products are revised. Deferred policy acquisition costs and deferred sales inducements are also adjusted for the change in amortization that would have occurred if available for sale fixed maturity securities had been sold at their aggregate fair value at the end of the reporting period and the proceeds reinvested at current yields. The impact of this adjustment is included in accumulated other comprehensive income (loss) within consolidated stockholders' equity, net of applicable taxes. Deferred Policy Acquisition Costs (DAC) and Deferred Sales Inducements (DSI) 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) For annuity products, these costs are being amortized in proportion to actual and expected gross profits. Actual and expected gross profits include the excess of net investment income earned over the interest credited or the cost of providing index credits to the policyholders, or the "investment spread"; and to a lesser extent, product charges and fees net of expected excess payments for lifetime income benefit riders and certain policy expenses. Actual and expected gross profits for fixed index annuities also include the impact of amounts recorded for the change in fair value of derivatives and the change in fair value of embedded derivatives. Current period amortization is adjusted retrospectively through an unlocking process when estimates of actual and expected gross profits (including the impact of net realized gains (losses) on investments) to be realized from a group of products are revised. Deferred policy acquisition costs and deferred sales inducements are also adjusted for the change in amortization that would have occurred if available for sale fixed maturity securities had been sold at their aggregate fair value at the end of the reporting period and the proceeds reinvested at current yields. The impact of this adjustment is included in accumulated other comprehensive income (loss) within consolidated stockholders' equity, net of applicable taxes. Deferred Policy Acquisition Costs (DAC) and Deferred Sales Inducements (DSI) 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. |
Policy Benefit Reserves | Policy Benefit Reserves Policy benefit reserves for fixed index annuities with returns linked to the performance of a specified market index are equal to the sum of the fair value of the embedded derivatives and the host (or guaranteed) component of the contracts. The host value is established at inception of the contract and accreted over the policy's life at a constant rate of interest. Future policy benefit reserves for fixed index annuities earning a fixed rate of interest and other deferred annuity products are computed under a retrospective deposit method and represent policy account balances before applicable surrender charges. For the years ended December 31, 2022, 2021 and 2020, interest crediting rates for these products ranged from 1.45% to 2.65%. The liability for lifetime income benefit riders is based on the actual and present value of expected benefit payments to be paid in excess of projected policy values recognizing the excess over the expected lives of the underlying policies based on the actual and present value of expected assessments including investment spreads, product charges and fees. The inputs used in the calculation of the liability for lifetime income benefit riders include actual policy values, actual income account values, actual payout factors, actual roll-up rates and our best estimate assumptions for future policy growth, expected utilization of lifetime income benefit riders, which includes the ages at which policyholders are expected to elect to begin to receive lifetime income benefit payments and the percentage of policyholders who elect to receive lifetime income benefit payments, the type of income benefit payments selected upon election and future assumptions for lapse, partial withdrawal and mortality rates. Policy benefit reserves are not reduced for amounts ceded under coinsurance agreements which are reported as coinsurance deposits on our consolidated balance sheets. See Note 9 - Reinsurance and Policy Provisions for more information on reinsurance. Policy Benefit Reserves Policy benefit reserves for fixed index annuities with returns linked to the performance of a specified market index are equal to the sum of the fair value of the embedded derivatives and the host (or guaranteed) component of the contracts. The host value is established at inception of the contract and accreted over the policy's life at a constant rate of interest. Future policy benefit reserves for fixed index annuities earning a fixed rate of interest and other deferred annuity products are computed under a retrospective deposit method and represent policy account balances before applicable surrender charges. For the years ended December 31, 2022, 2021 and 2020, interest crediting rates for these products ranged from 1.45% to 2.65%. 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. |
Market Risk Benefits | Market Risk Benefits 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. |
Adopted Accounting Pronouncements | Adopted Accounting Pronouncements Financial Instruments - Credit Losses In June 2016, the Financial Accounting Standards Board ("FASB") issued an accounting standards update ("ASU") that significantly changed the impairment model for most financial assets that are measured at amortized cost and certain other instruments from an incurred loss model to an expected loss model that requires these assets be presented at the net amount expected to be collected. In addition, credit losses on available-for-sale debt securities are recorded through an allowance account subsequent to the adoption of this ASU. We adopted this ASU on January 1, 2020. The adoption of this ASU resulted in an increase in our mortgage loan allowance for credit losses of $8.6 million and the recognition of an allowance for credit losses on our reinsurance recoverable/coinsurance deposits balances of $3.2 million on the date of adoption. Retained earnings was decreased by $9.3 million, which reflects the net of tax impact of the increase in the mortgage loan allowance for credit losses and the recognition of an allowance for credit losses on our reinsurance recoverable/coinsurance deposits balances on the date of adoption. 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. |
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. |
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 years ended December 31, 2022 or 2021, respectively. |
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 Real estate investments and the loan is recorded as fully paid, with any allowance for credit loss that has been established charged off. Fair value of the real estate is determined by third party appraisal. There is no real estate in which ownership of the property was taken to satisfy an outstanding loan held in Real estate investments as of December 31, 2022 or December 31, 2021. Recoveries are situations where we have received a payment from the borrower in an amount greater than the carrying value of the loan (principal outstanding less specific allowance). |
Mortgage Loans on Real Estate, Non-Accrual Loan Status | 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 59 loans in non-accrual status at December 31, 2022 and 13 loans in non-accrual status at December 31, 2021. During the years ended December 31, 2022 and 2021, we recognized interest income of $670 thousand and $36 thousand, respectively, on loans which were in non-accrual status at the respective period end. During the year ended December 31, 2020 we recognized no interest income on loans which were in non-accrual status at the respective period end. |
Mortgage Loans on Real Estate, Troubled Debt Restructuring | A Troubled Debt Restructuring ("TDR") is a situation where we have granted a concession to a borrower for economic or legal reasons related to the borrower's financial difficulties that we would not otherwise consider. A mortgage loan that has been granted new terms, including workout terms as described previously, would be considered a TDR if it meets conditions that would indicate a borrower is experiencing financial difficulty and the new terms constitute a concession on our part. We analyze all loans where we have agreed to workout terms and all loans that we have refinanced to determine if they meet the definition of a TDR. We consider the following factors in determining whether or not a borrower is experiencing financial difficulty: • borrower is in default, • borrower has declared bankruptcy, • there is growing concern about the borrower's ability to continue as a going concern, • borrower has insufficient cash flows to service debt, • borrower's inability to obtain funds from other sources, and • there is a breach of financial covenants by the borrower. If the borrower is determined to be in financial difficulty, we consider the following conditions to determine if the borrower is granted a concession: • assets used to satisfy debt are less than our recorded investment, • interest rate is modified, • maturity date extension at an interest rate less than market rate, • capitalization of interest, • delaying principal and/or interest for a period of three months or more, and • partial forgiveness of the balance or charge-off. |
Commitments and Contingencies | 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) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Annuity Deposits (Net of Coinsurance), By Product Type | Annuity deposits (net of coinsurance) collected in 2022, 2021 and 2020, by product type were as follows: Year Ended December 31, Product Type 2022 2021 2020 (Dollars in thousands) Fixed index annuities $ 2,202,688 $ 3,026,211 $ 2,309,580 Annual reset fixed rate annuities 5,535 6,000 7,846 Multi-year fixed rate annuities 139,092 2,452,994 1,295,843 Single premium immediate annuities (SPIA) 18,935 59,816 33,461 $ 2,366,250 $ 5,545,021 $ 3,646,730 |
Liability for Future Policy Benefit, Activity | Liability for Future Policy Benefits for Payout Annuity With Life Contingency (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 December 31, 2022 2021 (Dollars in thousands) Balance, beginning of year $ 402,305 $ 384,510 Beginning balance at original discount rate 352,708 315,793 Effect of changes in cash flow assumptions 1,277 7,892 Effect of actual variances from expected experience (1,941) (1,908) Adjusted beginning of year balance 352,044 321,777 Issuances 16,072 55,229 Interest accrual 14,664 14,819 Benefit payments — — Net premiums collected — — Derecognition (lapses) (40,327) (39,117) Ending balance at original discount rate 342,453 352,708 Effect of changes in discount rate assumptions (23,776) 49,597 Balance, end of year $ 318,677 $ 402,305 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: December 31, 2022 2021 (Dollars in thousands) Liability for future policy benefits $ 318,677 $ 402,305 Deferred profit liability 19,223 18,716 337,900 421,021 Less: Reinsurance recoverable (1,259) (1,283) Net liability for future policy benefits, after reinsurance recoverable $ 336,641 $ 419,738 The weighted-average liability duration of the liability for future policy benefits is as follows: December 31, 2022 2021 SPIA With Life Contingency: Weighted-average liability duration of the liability for future policy benefits (years) 6.78 7.57 The amount of revenue and interest associated with the liability for future policy benefits recognized in the statement of operations for the the years ended December 31, 2022 and 2021 is as follows: December 31, 2022 December 31, 2021 Gross Premiums Interest Gross Premiums Interest (Dollars in thousands) SPIA With Life Contingency $ 16,994 $ 14,613 $ 53,778 $ 14,777 Total $ 16,994 $ 14,613 $ 53,778 $ 14,777 The weighted-average interest rate is as follows: December 31, 2022 2021 Interest accretion rate 4.25 % 4.29 % Current discount rate 5.37 % 1.74 % |
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 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 The balances of and changes in the liability for market risk benefits (MRB) for the years ended December 31, 2022 and 2021 is as follows: December 31, 2022 December 31, 2021 Fixed Rate Fixed Index Fixed Rate Fixed Index (Dollars in thousands) MRB Liability Balance, beginning of year $ 78,411 $ 2,557,378 $ 73,904 $ 2,294,129 Balance, beginning of year, before effect of changes in the instrument-specific credit risk 77,731 2,310,437 74,371 2,064,555 Issuances 376 59,452 23 22,836 Interest accrual 1,349 72,551 986 39,614 Attributed fees collected 1,270 125,168 1,326 122,756 Benefits payments — — — — Effect of changes in interest rates (19,421) (952,265) (4,091) (206,055) Effect of changes in equity markets — 186,618 — (151,145) Effect of changes in equity index volatility — 241,563 — (57,940) Actual policyholder behavior different from expected behavior — — — — Effect of changes in future expected policyholder behavior 602 46,567 369 142,713 Effect of changes in other future expected assumptions (17,552) 363,078 4,747 333,103 Balance, end of year, before effect of changes in the instrument-specific credit 44,355 2,453,169 77,731 2,310,437 Effect of changes in the instrument-specific credit risk (6,492) (265,411) 680 246,941 Balance, end of year 37,863 2,187,758 78,411 2,557,378 Reinsured MRB, end of period 10,656 593,959 — 156,931 Balance, end of period, net of reinsurance $ 27,207 $ 1,593,799 $ 78,411 $ 2,400,447 Net amount at risk (a) $ 258,826 $ 10,987,198 $ 239,995 $ 10,001,385 Weighted average attained age of contract holders (years) 69 71 69 70 (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 liability position to market risk benefit amounts included in other assets and market risk benefit reserves, respectively, in the Consolidated Balance Sheets: December 31, 2022 Asset Liability Net (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 December 31, 2021 Asset Liability Net (Dollars in thousands) Fixed Index Annuities $ 520,566 $ 3,077,944 $ 2,557,378 Fixed Rate Annuities 5,807 84,218 78,411 Total $ 526,373 $ 3,162,162 $ 2,635,789 The following table presents the balances and changes in reinsured market risk benefits associated with fixed index annuities for the years ended December 31, 2022 and 2021: December 31, 2022 December 31, 2021 Fixed Rate Fixed Index Fixed Rate Fixed Index (Dollars in thousands) Ceded MRB Balance, beginning of year $ — $ 156,931 $ — $ 90,022 Inception of in-force ceded reinsurance 10,091 334,835 — 100,327 Issuances — 36,036 — 915 Interest accrual 104 7,598 — 414 Attributed fees collected 28 23,745 — 9,904 Benefits payments — — — — Effect of changes in interest rates 135 (171,948) — 1,601 Effect of changes in equity markets 118 43,799 — (6,148) Effect of changes in equity index volatility — 34,278 — (9,074) Actual policyholder behavior different from expected behavior — — — — Effect of changes in future expected policyholder behavior 180 12,598 — 16,878 Effect of changes in other future expected assumptions — 116,087 — (47,908) Balance, end of year $ 10,656 $ 593,959 $ — $ 156,931 Net amount at risk (a) $ 72,350 $ 2,402,964 $ — $ 582,315 Weighted average attained age of contract holders (years) 70 71 0.00 69 (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: December 31, 2022 Asset Liability Net (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 December 31, 2021 Asset Liability Net (Dollars in thousands) Fixed Index Annuities $ 250,046 $ 93,115 $ 156,931 Fixed Rate Annuities — — — Total $ 250,046 $ 93,115 $ 156,931 |
Rollforward of Deferred Sales 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: December 31, 2022 Fixed Index Fixed Rate Total (Dollars in thousands) Balance, beginning of year $ 2,088,591 $ 31,371 $ 2,119,962 Capitalizations 107,684 7 107,691 Amortization expense (178,315) (3,655) (181,970) Balance, end of year $ 2,017,960 $ 27,723 $ 2,045,683 December 31, 2021 Fixed Index Fixed Rate Total (Dollars in thousands) Balance, beginning of year $ 2,180,980 $ 35,705 $ 2,216,685 Capitalizations 95,104 57 95,161 Amortization expense (187,493) (4,391) (191,884) Balance, end of year $ 2,088,591 $ 31,371 $ 2,119,962 |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Fair Values of Financial Instruments | The following sets forth a comparison of the carrying amounts and fair values of our financial instruments: December 31, 2022 2021 Carrying Fair Value Carrying Fair Value (Dollars in thousands) Assets Fixed maturity securities, available for sale $ 39,804,617 $ 39,804,617 $ 51,305,943 $ 51,305,943 Mortgage loans on real estate 6,949,027 6,502,463 5,687,998 5,867,227 Real estate investments 1,056,063 1,056,063 337,939 337,939 Limited partnerships and limited liability companies 684,835 684,835 168,711 168,711 Derivative instruments 431,727 431,727 1,277,480 1,277,480 Other investments 1,817,085 1,817,085 1,247,024 1,247,024 Cash and cash equivalents 1,919,669 1,919,669 4,508,982 4,508,982 Coinsurance deposits 13,254,956 12,640,797 8,988,891 8,188,338 Market risk benefits 229,871 229,871 526,373 526,373 Liabilities Policy benefit reserves 58,419,911 55,572,896 62,169,441 56,375,076 Market risk benefits 2,455,492 2,455,492 3,162,162 3,162,162 Single premium immediate annuity (SPIA) benefit reserves 212,119 221,130 226,207 235,891 Other policy funds - FHLB 300,000 300,000 — — Notes and loan payable 792,073 774,220 496,250 569,485 Subordinated debentures 78,753 87,293 78,421 93,721 |
Assets and Liabilities Measured 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 December 31, 2022 and 2021 are presented below based on the fair value hierarchy levels: Total NAV Quoted Significant Significant (Dollars in thousands) 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 December 31, 2021 Assets Fixed maturity securities, available for sale: U.S. Government and agencies $ 1,078,746 $ — $ 32,737 $ 1,046,009 $ — States, municipalities and territories 3,927,201 — — 3,927,201 — Foreign corporate securities and foreign governments 402,545 — — 402,545 — Corporate securities 34,660,234 — 32,700 34,627,534 — Residential mortgage backed securities 1,125,049 — — 1,125,049 — Commercial mortgage backed securities 4,840,311 — — 4,840,311 — Other asset backed securities 5,271,857 — — 5,271,857 — Other investments 12,226 — — 5,877 6,349 Real estate investments 337,939 — — — 337,939 Limited partnerships and limited liability companies 168,711 168,711 — — — Derivative instruments 1,277,480 — — 1,277,480 — Cash and cash equivalents 4,508,982 — 4,508,982 — — Market risk benefits (a) 526,373 — — — 526,373 $ 58,137,654 $ 168,711 $ 4,574,419 $ 52,523,863 $ 870,661 Liabilities Funds withheld liability - embedded derivative $ (2,362) $ — $ — $ (2,362) $ — Fixed index annuities - embedded derivatives 7,964,961 — — — 7,964,961 Market risk benefits (a) 3,162,162 — — — 3,162,162 $ 11,124,761 $ — $ — $ (2,362) $ 11,127,123 (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) December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 1 - 5 2.17% 3.04% 1.86% 2.19% 6 - 10 3.28% 2.84% 1.97% 2.26% 11 - 15 3.63% 4.47% 1.86% 2.14% 16 - 20 8.55% 8.93% 2.96% 1.33% 20+ 4.90% 4.93% 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 years ended December 31, 2022 and 2021: Year Ended 2022 2021 (Dollars in thousands) Fixed maturity securities, available for sale - Corporate securities Beginning balance $ — $ — Purchases 2,233 — Transfers in 391,702 — Transfers out — — Total realized/unrealized gains (losses): Included in net income — — Included in other comprehensive income (loss) 8,413 — Ending balance $ 402,348 $ — Fixed maturity securities, available for sale - Other asset backed securities Beginning balance $ — $ — Purchases 296,800 — Transfers in 153,669 — Transfers out — — Total realized/unrealized gains (losses): Included in net income — — Included in other comprehensive income (loss) (7,551) — Ending balance $ 442,918 $ — Other investments Beginning balance $ 6,349 $ — Transfers in — 6,349 Transfers out (3,867) — Total realized/unrealized gains (losses): Included in net income (2,482) — Included in other comprehensive income (loss) — — Ending balance $ — $ 6,349 Year Ended 2022 2021 (Dollars in thousands) Real estate investments Beginning balance $ 337,939 $ — Purchases and sales, net 602,298 335,767 Change in fair value 322 2,172 Ending balance $ 940,559 $ 337,939 Limited partnerships and limited liability companies Beginning balance $ — $ — Purchases and sales, net 57,574 — Change in fair value 6,635 — Ending balance $ 64,209 $ — Funds withheld liability - embedded derivative Beginning balance $ — $ — Transfers in (441,864) — Change in fair value — — Ending balance $ (441,864) $ — Fixed index annuities - embedded derivatives Beginning balance $ 7,964,961 $ 7,938,281 Premiums less benefits (125,940) 1,424,372 Change in fair value, net (2,561,676) (876,803) Reserve release related to in-force ceded reinsurance (456,500) (520,889) Ending balance $ 4,820,845 $ 7,964,961 |
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 years ended December 31, 2022 and 2021: Year Ended 2022 2021 (Dollars in thousands) Fixed maturity securities, available for sale - Corporate securities Beginning balance $ — $ — Purchases 2,233 — Transfers in 391,702 — Transfers out — — Total realized/unrealized gains (losses): Included in net income — — Included in other comprehensive income (loss) 8,413 — Ending balance $ 402,348 $ — Fixed maturity securities, available for sale - Other asset backed securities Beginning balance $ — $ — Purchases 296,800 — Transfers in 153,669 — Transfers out — — Total realized/unrealized gains (losses): Included in net income — — Included in other comprehensive income (loss) (7,551) — Ending balance $ 442,918 $ — Other investments Beginning balance $ 6,349 $ — Transfers in — 6,349 Transfers out (3,867) — Total realized/unrealized gains (losses): Included in net income (2,482) — Included in other comprehensive income (loss) — — Ending balance $ — $ 6,349 Year Ended 2022 2021 (Dollars in thousands) Real estate investments Beginning balance $ 337,939 $ — Purchases and sales, net 602,298 335,767 Change in fair value 322 2,172 Ending balance $ 940,559 $ 337,939 Limited partnerships and limited liability companies Beginning balance $ — $ — Purchases and sales, net 57,574 — Change in fair value 6,635 — Ending balance $ 64,209 $ — Funds withheld liability - embedded derivative Beginning balance $ — $ — Transfers in (441,864) — Change in fair value — — Ending balance $ (441,864) $ — Fixed index annuities - embedded derivatives Beginning balance $ 7,964,961 $ 7,938,281 Premiums less benefits (125,940) 1,424,372 Change in fair value, net (2,561,676) (876,803) Reserve release related to in-force ceded reinsurance (456,500) (520,889) Ending balance $ 4,820,845 $ 7,964,961 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments [Abstract] | |
Schedule of Fixed Maturity Securities | At December 31, 2022 and 2021, the amortized cost and fair value of fixed maturity securities were as follows: Amortized Gross Gross Allowance for Credit Losses Fair Value (Dollars in thousands) 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 December 31, 2021 Fixed maturity securities, available for sale: U.S. Government and agencies $ 1,046,029 $ 32,841 $ (124) $ — $ 1,078,746 States, municipalities and territories 3,495,563 437,456 (3,042) (2,776) 3,927,201 Foreign corporate securities and foreign governments 380,646 22,742 (843) — 402,545 Corporate securities 31,084,629 3,614,047 (38,442) — 34,660,234 Residential mortgage backed securities 1,056,778 70,434 (2,093) (70) 1,125,049 Commercial mortgage backed securities 4,708,878 149,152 (17,719) — 4,840,311 Other asset backed securities 5,226,660 95,304 (50,107) — 5,271,857 $ 46,999,183 $ 4,421,976 $ (112,370) $ (2,846) $ 51,305,943 (1) Amortized cost excludes accrued interest receivable of $425.4 million and $400.7 million as of December 31, 2022 and 2021, respectively. |
Schedule of Fixed Maturity Securities by Contractual Maturity Date | The amortized cost and fair value of fixed maturity securities at December 31, 2022, by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. All of our mortgage and other asset backed securities provide for periodic payments throughout their lives and are shown below as separate lines. Available for sale Amortized Fair Value (Dollars in thousands) Due in one year or less $ 1,184,147 $ 1,180,124 Due after one year through five years 5,641,072 5,406,059 Due after five years through ten years 6,254,569 5,672,730 Due after ten years through twenty years 9,853,998 8,817,815 Due after twenty years 10,051,313 7,754,098 32,985,099 28,830,826 Residential mortgage backed securities 1,492,242 1,377,611 Commercial mortgage backed securities 4,098,755 3,687,478 Other asset backed securities 6,289,923 5,908,702 $ 44,866,019 $ 39,804,617 |
Net Unrealized Gains (Losses) on Available For Sale Fixed Maturity Securities Reported as Separate Component of Stockholders' Equity | Net unrealized gains (losses) on available for sale fixed maturity securities reported as a separate component of stockholders' equity were comprised of the following: December 31, 2022 2021 (Dollars in thousands) Net unrealized gains (losses) on available for sale fixed maturity securities $ (5,065,422) $ 4,309,606 Deferred income tax valuation allowance reversal 22,534 22,534 Deferred income tax expense 1,063,441 (905,047) Net unrealized gains (losses) reported as accumulated other comprehensive income (loss) $ (3,979,447) $ 3,427,093 |
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: December 31, 2022 2021 NAIC Amortized Fair Amortized Fair (Dollars in thousands) 1 $ 27,061,903 $ 24,211,086 $ 26,157,531 $ 28,785,839 2 17,023,157 14,944,131 19,758,594 21,396,020 3 595,193 510,392 909,311 941,210 4 109,409 91,495 133,070 147,160 5 61,721 36,738 16,496 15,357 6 14,636 10,775 24,181 20,357 $ 44,866,019 $ 39,804,617 $ 46,999,183 $ 51,305,943 |
Schedule of Gross Unrealized Losses on Investments, By Category and Length of Time | The following table shows our investments' gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities (consisting of 4,510 and 1,427 securities, respectively) have been in a continuous unrealized loss position, at December 31, 2022 and 2021: Less than 12 months 12 months or more Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (Dollars in thousands) 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) December 31, 2021 Fixed maturity securities, available for sale: U.S. Government and agencies $ 760,977 $ (124) $ — $ — $ 760,977 $ (124) States, municipalities and territories 168,942 (2,468) 15,711 (3,350) 184,653 (5,818) Foreign corporate securities and foreign governments 42,861 (843) — — 42,861 (843) Corporate securities 2,375,603 (30,070) 116,819 (8,372) 2,492,422 (38,442) Residential mortgage backed securities 250,964 (1,408) 26,917 (755) 277,881 (2,163) Commercial mortgage backed securities 784,464 (5,500) 142,224 (12,219) 926,688 (17,719) Other asset backed securities 1,351,324 (11,345) 1,771,182 (38,762) 3,122,506 (50,107) $ 5,735,135 $ (51,758) $ 2,072,853 $ (63,458) $ 7,807,988 $ (115,216) |
Schedule of Changes in Net Unrealized Gains/Losses on Investments | Changes in net unrealized gains/losses on investments for the years ended December 31, 2022, 2021 and 2020 are as follows: Year Ended December 31, 2022 2021 2020 (Dollars in thousands) Fixed maturity securities available for sale carried at fair value $ (9,375,028) $ (987,434) $ 1,955,496 Adjustment for effect on other balance sheet accounts: Deferred policy acquisition costs, deferred sales inducements and policy benefit reserves — — (880,517) Deferred income tax asset/liability 1,968,488 207,361 (225,746) 1,968,488 207,361 (1,106,263) Change in net unrealized gains/losses on investments carried at fair value $ (7,406,540) $ (780,073) $ 849,233 |
Components of Net Investment Income | Components of net investment income are as follows: Year Ended December 31, 2022 2021 2020 (Dollars in thousands) Fixed maturity securities $ 1,849,915 $ 1,772,675 $ 2,035,762 Real estate investments 40,243 14,138 — Mortgage loans on real estate 301,118 215,138 170,749 Cash and cash equivalents 24,985 3,385 4,871 Limited partnerships and limited liability companies 188,131 67,157 (12,204) Other investments 49,537 29,399 15,372 2,453,929 2,101,892 2,214,550 Less: investment expenses (146,466) (64,417) (32,472) Net investment income $ 2,307,463 $ 2,037,475 $ 2,182,078 |
Net Realized Gains (Losses) on Investments | Net realized losses on investments for the years ended December 31, 2022, 2021 and 2020 are as follows: Year Ended December 31, 2022 2021 2020 (Dollars in thousands) Fixed maturity securities, available for sale: Gross realized gains $ 139,819 $ 10,167 $ 305,170 Gross realized losses (153,712) (19,140) (276,847) Net credit loss (provision) release (15,536) (6,241) (94,560) (29,429) (15,214) (66,237) Mortgage loans on real estate: Decrease (increase) in allowance for credit losses (15,126) 7,005 (15,447) Recovery of specific allowance 1,677 — 712 Gain (loss) on sale of mortgage loans (4,970) (5,033) 292 (18,419) 1,972 (14,443) Total net realized losses $ (47,848) $ (13,242) $ (80,680) |
Non-Income Producing Investments | The following table summarizes the carrying value of our investments that have been non-income producing for 12 consecutive months: December 31, 2022 2021 (Dollars in thousands) Fixed maturity securities, available for sale $ 10,708 $ 4,118 Mortgage loans on real estate 1,483 — $ 12,191 $ 4,118 |
Rollforward of Allowance for Credit Loss | The following table provides a rollforward of the allowance for credit loss: Year Ended December 31, 2022 States, Municipalities and Corporate Securities Residential Mortgage Backed Securities Total (Dollars in thousands) Beginning balance $ 2,776 $ — $ 70 $ 2,846 Additions for credit losses not previously recorded — 3,825 1,070 4,895 Change in allowance on securities with previous allowance (2,776) (611) (579) (3,966) Reduction for securities with credit losses due to intent to sell — — — — Reduction for securities sold during the period — — (428) (428) Write-offs charged against the allowance — — — — Recoveries of amounts previously written off — — — — Ending balance $ — $ 3,214 $ 133 $ 3,347 Year Ended December 31, 2021 States, Municipalities and Corporate Securities Residential Mortgage Backed Securities Total (Dollars in thousands) Beginning balance $ 2,844 $ 60,193 $ 1,734 $ 64,771 Additions for credit losses not previously recorded — 705 407 1,112 Change in allowance on securities with previous allowance (68) 443 (857) (482) Reduction for securities with credit losses due to intent to sell — (209) — (209) Reduction for securities sold during the period — (50,758) — (50,758) Write-offs charged against the allowance — (10,032) — (10,032) Recoveries of amounts previously written off — (342) (1,214) (1,556) Ending balance $ 2,776 $ — $ 70 $ 2,846 |
Mortgage Loans on Real Estate (
Mortgage Loans on Real Estate (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Summary of Mortgage Loan Portfolios | Our mortgage loan portfolios are summarized in the following table. There were commitments outstanding of $420.2 million at December 31, 2022. December 31, 2022 2021 (Dollars in thousands) Commercial mortgage loans: Principal outstanding $ 3,560,903 $ 3,633,131 Deferred fees and costs, net (6,345) (4,629) Amortized cost 3,554,558 3,628,502 Valuation allowance (22,428) (17,926) Commercial mortgage loans, carrying value 3,532,130 3,610,576 Agricultural mortgage loans: Principal outstanding 567,630 408,135 Deferred fees and costs, net (1,667) (1,136) Amortized cost 565,963 406,999 Valuation allowance (1,021) (519) Agricultural mortgage loans, carrying value 564,942 406,480 Residential mortgage loans: Principal outstanding 2,807,652 1,652,910 Deferred fees and costs, net 1,909 1,468 Unamortized discounts and premiums, net 55,917 22,143 Amortized cost 2,865,478 1,676,521 Valuation allowance (13,523) (5,579) Residential mortgage loans, carrying value 2,851,955 1,670,942 Mortgage loans, carrying value $ 6,949,027 $ 5,687,998 |
Commercial Mortgage Loan Portfolio Summarized by Geographic Region and Property Type | The commercial mortgage loan portfolio is summarized by geographic region and property type as follows: December 31, 2022 2021 Principal Percent Principal Percent (Dollars in thousands) Geographic distribution East $ 502,659 14.1 % $ 614,406 16.9 % Middle Atlantic 280,993 7.9 % 293,494 8.1 % Mountain 416,307 11.7 % 452,818 12.5 % New England 73,631 2.1 % 60,172 1.6 % Pacific 858,812 24.1 % 863,879 23.8 % South Atlantic 934,007 26.2 % 785,679 21.6 % West North Central 205,568 5.8 % 235,864 6.5 % West South Central 288,926 8.1 % 326,819 9.0 % $ 3,560,903 100.0 % $ 3,633,131 100.0 % Property type distribution Office $ 378,713 10.6 % $ 315,374 8.7 % Medical Office 10,265 0.3 % 10,827 0.3 % Retail 896,351 25.2 % 1,016,101 28.0 % Industrial/Warehouse 866,623 24.3 % 924,779 25.4 % Apartment 912,984 25.6 % 864,580 23.8 % Hotel 285,271 8.0 % 283,500 7.8 % Mixed Use/Other 210,696 6.0 % 217,970 6.0 % $ 3,560,903 100.0 % $ 3,633,131 100.0 % |
Rollforward of Valuation Allowance on Mortgage Loan Portfolios | The following table represents a rollforward of the valuation allowance on our mortgage loan portfolios: Year Ended December 31, 2022 Commercial Agricultural Residential Total (Dollars in thousands) Beginning allowance balance $ (17,926) $ (519) $ (5,579) $ (24,024) Charge-offs 501 — — 501 Recoveries 1,677 — — 1,677 Change in provision for credit losses (6,680) (502) (7,944) (15,126) Ending allowance balance $ (22,428) $ (1,021) $ (13,523) $ (36,972) Year Ended December 31, 2021 Commercial Agricultural Residential Total (Dollars in thousands) Beginning allowance balance $ (25,529) $ (2,130) $ (3,370) $ (31,029) Charge-offs — — — — Recoveries — — — — Change in provision for credit losses 7,603 1,611 (2,209) 7,005 Ending allowance balance $ (17,926) $ (519) $ (5,579) $ (24,024) |
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 December 31, 2022 and 2021 (by year of origination): 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: (Dollars in thousands) 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 % 2021 2020 2019 2018 2017 Prior Total As of December 31, 2021: Amortized Average Amortized Average Amortized Average Amortized Average Amortized Average Amortized Average Amortized Average Debt Service Coverage Ratio: (Dollars in thousands) Greater than or equal to 1.5 $ 260,623 64 % $ 454,828 60 % $ 464,059 61 % $ 344,170 58 % $ 246,854 52 % $ 758,494 45 % $ 2,529,028 55 % Greater than or equal to 1.2 and less than 1.5 12,836 67 % 58,960 66 % 128,301 70 % 89,293 66 % 135,818 66 % 129,833 57 % 555,041 65 % Greater than or equal to 1.0 and less than 1.2 318,636 45 % 17,762 82 % 69,684 72 % 11,937 75 % 6,343 60 % 42,125 58 % 466,487 53 % Less than 1.0 — — % 3,289 61 % 26,147 63 % 14,051 76 % 13,385 73 % 21,074 54 % 77,946 65 % Total $ 592,095 54 % $ 534,839 61 % $ 688,191 64 % $ 459,451 60 % $ 402,400 58 % $ 951,526 47 % $ 3,628,502 56 % The amortized cost of our agricultural mortgage loan portfolio by LTV and DSC ratios based on the most recent information collected was as follows at December 31, 2022 and 2021 (by year of origination): 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: (Dollars in thousands) 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 % 2021 2020 2019 2018 2017 Prior Total As of December 31, 2021: Amortized Average Amortized Average Amortized Average Amortized Average Amortized Average Amortized Average Amortized Average Debt Service Coverage Ratio: (Dollars in thousands) Greater than or equal to 1.5 $ 62,548 54 % $ 80,919 56 % $ 11,645 49 % $ 25,000 11 % $ — — % $ — — % $ 180,112 49 % Greater than or equal to 1.2 and less than 1.5 95,738 55 % 102,958 43 % 3,335 22 % — — % — — % — — % 202,031 48 % Greater than or equal to 1.0 and less than 1.2 7,478 44 % 4,092 36 % 4,734 50 % — — % — — % — — % 16,304 44 % Less than 1.0 — — % 8,552 59 % — — % — — % — — % — — % 8,552 59 % Total $ 165,764 54 % $ 196,521 49 % $ 19,714 45 % $ 25,000 11 % $ — — % $ — — % $ 406,999 48 % |
Aging of Financing Receivables | Aging of financing receivables is summarized in the following table (by year of origination): 2022 2021 2020 2019 2018 Prior Total As of 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 2021 2020 2019 2018 2017 Prior Total As of December 31, 2021: (Dollars in thousands) Commercial mortgage loans Current $ 592,095 $ 534,839 $ 688,191 $ 459,451 $ 402,400 $ 951,526 $ 3,628,502 30 - 59 days past due — — — — — — — 60 - 89 days past due — — — — — — — Over 90 days past due — — — — — — — Total commercial mortgage loans $ 592,095 $ 534,839 $ 688,191 $ 459,451 $ 402,400 $ 951,526 $ 3,628,502 Agricultural mortgage loans Current $ 165,764 $ 196,521 $ 19,714 $ 25,000 $ — $ — $ 406,999 30 - 59 days past due — — — — — — — 60 - 89 days past due — — — — — — — Over 90 days past due — — — — — — — Total agricultural mortgage loans $ 165,764 $ 196,521 $ 19,714 $ 25,000 $ — $ — $ 406,999 Residential mortgage loans Current $ 1,092,438 $ 454,532 $ 67,380 $ 16,898 $ 751 $ — $ 1,631,999 30 - 59 days past due 10,284 12,363 11,373 427 — — 34,447 60 - 89 days past due 1,838 1,090 102 — — — 3,030 Over 90 days past due 679 5,459 907 — — — 7,045 Total residential mortgage loans $ 1,105,239 $ 473,444 $ 79,762 $ 17,325 $ 751 $ — $ 1,676,521 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The carrying amounts of our consolidated VIE assets, which can only be used to settle obligations of the consolidated VIEs, and liabilities of consolidated VIEs for which creditors do not have recourse were as follows: December 31, 2022 2021 Total Total Total Total (Dollars in thousands) Real estate investments $ 1,095,267 $ 78,244 $ 363,229 $ 20,168 Real estate limited liability companies 66,258 287 — — Limited partnership funds 620,741 113 168,711 — $ 1,782,266 $ 78,644 $ 531,940 $ 20,168 The carrying value and maximum loss exposure for our unconsolidated VIEs were as follows: December 31, 2022 2021 Asset Maximum Asset Maximum (Dollars in thousands) Fixed maturity securities, available for sale $ 1,178,110 $ 1,178,110 $ 459,681 $ 459,681 Other investments — — 345,000 345,000 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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: December 31, 2022 December 31, 2021 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 $ 38,927,534 $ 397,789 $ 40,091,353 $ 1,276,574 Warrants 2,020 1,169 2,020 906 $ 38,929,554 $ 398,958 $ 40,093,373 $ 1,277,480 Liabilities Policy benefit reserves - annuity products Fixed index annuities - embedded derivatives, net $ 4,820,845 $ 7,964,961 Funds withheld for reinsurance liabilities Reinsurance related embedded derivative (441,864) (2,362) $ 4,378,981 $ 7,962,599 |
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) December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 (Dollars in thousands) Fixed maturities, available for sale: Current hedging relationships $ 389,060 $ — $ (39,128) $ — Discontinued hedging relationships 1,594,736 — (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 year ended December 31, 2022 Interest rate swaps $ 215,587 $ (249,168) $ (33,581) $ 13,957 For the year ended December 31, 2021 Interest rate swaps $ — $ — $ — $ — For the year ended December 31, 2020 Interest rate swaps $ — $ — $ — $ — |
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: Year Ended 2022 2021 2020 (Dollars in thousands) Change in fair value of derivatives: Call options $ (1,118,768) $ 1,347,925 $ 34,604 Warrants 264 810 — Interest rate swaps 13,957 — — Interest rate caps — — 62 $ (1,104,547) $ 1,348,735 $ 34,666 Change in fair value of embedded derivatives: Fixed index annuities - embedded derivatives $ (1,913,096) $ (355,940) $ (1,286,787) Reinsurance related embedded derivative (439,502) (2,362) — $ (2,352,598) $ (358,302) $ (1,286,787) |
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: December 31, 2022 2021 Counterparty Credit Rating (S&P) Credit Rating (Moody's) Notional Fair Value Notional Fair Value (Dollars in thousands) Bank of America A+ Aa2 $ 3,574,125 $ 26,080 $ 3,556,256 $ 99,229 Barclays A A1 3,686,896 39,657 4,213,658 157,865 Canadian Imperial Bank of Commerce A+ Aa2 2,707,734 34,218 3,956,329 141,540 Citibank, N.A. A+ Aa3 3,748,162 29,873 3,190,833 115,860 Credit Suisse A- A3 2,086,470 20,691 3,716,868 113,295 J.P. Morgan A+ Aa2 6,501,103 69,006 4,482,832 105,899 Morgan Stanley A+ Aa3 2,957,389 38,470 2,223,743 47,950 Royal Bank of Canada AA- A2 4,378,132 58,026 3,567,972 100,472 Societe Generale A A1 2,099,081 17,157 2,548,072 86,494 Truist A A2 1,960,787 32,885 2,547,808 94,924 Wells Fargo A+ Aa2 5,436,824 61,840 5,820,381 206,403 Exchange traded 199,200 2,655 266,601 6,643 $ 39,335,903 $ 430,558 $ 40,091,353 $ 1,276,574 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs and Deferred Sales Inducements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Charges, Insurers [Abstract] | |
Rollforward of 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: December 31, 2022 Fixed Index Fixed Rate Single Premium Total (Dollars in thousands) Balance, beginning of year $ 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 year $ 2,649,322 $ 120,105 $ 4,216 $ 2,773,643 December 31, 2021 Fixed Index Fixed Rate Single Premium Total (Dollars in thousands) Balance, beginning of year $ 3,286,059 $ 119,805 $ 2,641 $ 3,408,505 Write-off related to in-force ceded reinsurance (349,614) — — (349,614) Capitalizations 250,070 57,344 2,269 309,683 Amortization expense (279,831) (25,827) (712) (306,370) Balance, end of year $ 2,906,684 $ 151,322 $ 4,198 $ 3,062,204 |
Rollforward of Deferred Sales 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: December 31, 2022 Fixed Index Fixed Rate Total (Dollars in thousands) Balance, beginning of year $ 2,088,591 $ 31,371 $ 2,119,962 Capitalizations 107,684 7 107,691 Amortization expense (178,315) (3,655) (181,970) Balance, end of year $ 2,017,960 $ 27,723 $ 2,045,683 December 31, 2021 Fixed Index Fixed Rate Total (Dollars in thousands) Balance, beginning of year $ 2,180,980 $ 35,705 $ 2,216,685 Capitalizations 95,104 57 95,161 Amortization expense (187,493) (4,391) (191,884) Balance, end of year $ 2,088,591 $ 31,371 $ 2,119,962 |
Policyholder Liabilities (Table
Policyholder Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Liability for Future Policy Benefit, Activity | Liability for Future Policy Benefits for Payout Annuity With Life Contingency (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 December 31, 2022 2021 (Dollars in thousands) Balance, beginning of year $ 402,305 $ 384,510 Beginning balance at original discount rate 352,708 315,793 Effect of changes in cash flow assumptions 1,277 7,892 Effect of actual variances from expected experience (1,941) (1,908) Adjusted beginning of year balance 352,044 321,777 Issuances 16,072 55,229 Interest accrual 14,664 14,819 Benefit payments — — Net premiums collected — — Derecognition (lapses) (40,327) (39,117) Ending balance at original discount rate 342,453 352,708 Effect of changes in discount rate assumptions (23,776) 49,597 Balance, end of year $ 318,677 $ 402,305 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: December 31, 2022 2021 (Dollars in thousands) Liability for future policy benefits $ 318,677 $ 402,305 Deferred profit liability 19,223 18,716 337,900 421,021 Less: Reinsurance recoverable (1,259) (1,283) Net liability for future policy benefits, after reinsurance recoverable $ 336,641 $ 419,738 The weighted-average liability duration of the liability for future policy benefits is as follows: December 31, 2022 2021 SPIA With Life Contingency: Weighted-average liability duration of the liability for future policy benefits (years) 6.78 7.57 The amount of revenue and interest associated with the liability for future policy benefits recognized in the statement of operations for the the years ended December 31, 2022 and 2021 is as follows: December 31, 2022 December 31, 2021 Gross Premiums Interest Gross Premiums Interest (Dollars in thousands) SPIA With Life Contingency $ 16,994 $ 14,613 $ 53,778 $ 14,777 Total $ 16,994 $ 14,613 $ 53,778 $ 14,777 The weighted-average interest rate is as follows: December 31, 2022 2021 Interest accretion rate 4.25 % 4.29 % Current discount rate 5.37 % 1.74 % |
Schedule of Expected Benefit Payments | The following table presents the amount of undiscounted expected future benefit payments and expected gross premiums: December 31, 2022 2021 (Dollars in thousands) SPIA With Life Contingency: Expected future benefit payments $ 467,627 $ 485,411 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 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 The balances of and changes in the liability for market risk benefits (MRB) for the years ended December 31, 2022 and 2021 is as follows: December 31, 2022 December 31, 2021 Fixed Rate Fixed Index Fixed Rate Fixed Index (Dollars in thousands) MRB Liability Balance, beginning of year $ 78,411 $ 2,557,378 $ 73,904 $ 2,294,129 Balance, beginning of year, before effect of changes in the instrument-specific credit risk 77,731 2,310,437 74,371 2,064,555 Issuances 376 59,452 23 22,836 Interest accrual 1,349 72,551 986 39,614 Attributed fees collected 1,270 125,168 1,326 122,756 Benefits payments — — — — Effect of changes in interest rates (19,421) (952,265) (4,091) (206,055) Effect of changes in equity markets — 186,618 — (151,145) Effect of changes in equity index volatility — 241,563 — (57,940) Actual policyholder behavior different from expected behavior — — — — Effect of changes in future expected policyholder behavior 602 46,567 369 142,713 Effect of changes in other future expected assumptions (17,552) 363,078 4,747 333,103 Balance, end of year, before effect of changes in the instrument-specific credit 44,355 2,453,169 77,731 2,310,437 Effect of changes in the instrument-specific credit risk (6,492) (265,411) 680 246,941 Balance, end of year 37,863 2,187,758 78,411 2,557,378 Reinsured MRB, end of period 10,656 593,959 — 156,931 Balance, end of period, net of reinsurance $ 27,207 $ 1,593,799 $ 78,411 $ 2,400,447 Net amount at risk (a) $ 258,826 $ 10,987,198 $ 239,995 $ 10,001,385 Weighted average attained age of contract holders (years) 69 71 69 70 (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 liability position to market risk benefit amounts included in other assets and market risk benefit reserves, respectively, in the Consolidated Balance Sheets: December 31, 2022 Asset Liability Net (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 December 31, 2021 Asset Liability Net (Dollars in thousands) Fixed Index Annuities $ 520,566 $ 3,077,944 $ 2,557,378 Fixed Rate Annuities 5,807 84,218 78,411 Total $ 526,373 $ 3,162,162 $ 2,635,789 The following table presents the balances and changes in reinsured market risk benefits associated with fixed index annuities for the years ended December 31, 2022 and 2021: December 31, 2022 December 31, 2021 Fixed Rate Fixed Index Fixed Rate Fixed Index (Dollars in thousands) Ceded MRB Balance, beginning of year $ — $ 156,931 $ — $ 90,022 Inception of in-force ceded reinsurance 10,091 334,835 — 100,327 Issuances — 36,036 — 915 Interest accrual 104 7,598 — 414 Attributed fees collected 28 23,745 — 9,904 Benefits payments — — — — Effect of changes in interest rates 135 (171,948) — 1,601 Effect of changes in equity markets 118 43,799 — (6,148) Effect of changes in equity index volatility — 34,278 — (9,074) Actual policyholder behavior different from expected behavior — — — — Effect of changes in future expected policyholder behavior 180 12,598 — 16,878 Effect of changes in other future expected assumptions — 116,087 — (47,908) Balance, end of year $ 10,656 $ 593,959 $ — $ 156,931 Net amount at risk (a) $ 72,350 $ 2,402,964 $ — $ 582,315 Weighted average attained age of contract holders (years) 70 71 0.00 69 (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: December 31, 2022 Asset Liability Net (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 December 31, 2021 Asset Liability Net (Dollars in thousands) Fixed Index Annuities $ 250,046 $ 93,115 $ 156,931 Fixed Rate Annuities — — — Total $ 250,046 $ 93,115 $ 156,931 |
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: 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% December 31, 2021 Fair Value Valuation Significant Inputs Range Weighted (in thousands) Market risk benefits $ 2,635,789 Discounted cash flow Utilization (a) —% - 60.00% 3.25% Ceded market risk benefits 156,931 Option budget (b) 1.55% - 2.50% 2.02% Risk-free interest rate (c) 0.53% - 2.05% 1.77% Nonperformance risk (d) 0.07% - 2.50% 1.49% (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: December 31, 2022 December 31, 2021 Fixed Rate Fixed Index Fixed Rate Fixed Index (Dollars in thousands) Balance, beginning of year $ 6,860,060 $ 55,003,305 $ 5,083,537 $ 53,612,622 Issuances 159,570 3,001,738 2,523,061 3,194,663 Premiums received 4,811 170,493 (3,649) 258,159 Policy charges (6,587) (272,604) (4,706) (258,552) Surrenders and withdrawals (574,590) (3,945,504) (883,440) (3,644,593) Benefit payments (11,328) (727,847) (9,304) (621,700) Interest credited 151,762 599,259 154,267 2,464,347 Other 5,879 (2,606) 294 (1,641) Balance, end of period $ 6,589,577 $ 53,826,234 $ 6,860,060 $ 55,003,305 Weighted-average crediting rate 2.28 % 1.11 % 2.62 % 4.64 % Net amount at risk (a) $ 258,826 $ 10,987,198 $ 239,995 $ 10,001,385 Cash surrender value 6,208,597 49,551,657 6,392,133 50,177,630 (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: December 31, 2022 December 31, 2021 (Dollars in thousands) Fixed index annuities policyholder account balances $ 53,826,234 $ 55,003,305 Fixed rate annuities policyholder account balances 6,589,577 6,860,060 Embedded derivative adjustment (b) (1,996,640) 305,340 Liability for future policy benefits 318,677 402,305 Deferred profit liability 19,223 18,716 Other 24,765 25,096 Total $ 58,781,836 $ 62,614,822 (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: 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 December 31, 2021 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% $ — $ 284,190 $ 305,770 $ 133,060 $ 723,020 0.50% - 1.00% 2,020,896 1,383,008 2,422,207 60,413 5,886,524 1.00% - 1.50% 55,375 10,874 637 — 66,886 1.50% - 2.00% — 84 — — 84 2.00% - 2.50% 134,690 121,299 151 — 256,140 2.50% - 3.00% 1,011,812 — — — 1,011,812 Greater than 3.00% — — — — — Allocated to index strategies 47,058,839 Total $ 3,222,773 $ 1,799,455 $ 2,728,765 $ 193,473 $ 55,003,305 Fixed Rate Annuities 0.00% - 0.50% $ 108 $ — $ — $ — $ 108 0.50% - 1.00% 42,216 119,438 351,059 24,950 537,663 1.00% - 1.50% 491,489 226 — — 491,715 1.50% - 2.00% 834,249 99,654 129,943 — 1,063,846 2.00% - 2.50% 3,254,565 22 — — 3,254,587 2.50% - 3.00% 1,040,592 7,754 — — 1,048,346 Greater than 3.00% 463,795 — — — 463,795 Total $ 6,127,014 $ 227,094 $ 481,002 $ 24,950 $ 6,860,060 |
Reinsurance and Policy Provis_2
Reinsurance and Policy Provisions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Reinsurance Disclosures [Abstract] | |
Amounts Ceded Under Reinsurance Agreements, Effects of Reinsurance | Amounts ceded to EquiTrust, Athene, North End Re and AeBe under these agreements are as follows: Year Ended December 31, 2022 2021 2020 (Dollars in thousands) Consolidated Statements of Operations Annuity product charges $ 49,093 $ 20,351 $ 7,021 Change in fair value of derivatives (184,388) 140,641 43,080 $ (135,295) $ 160,992 $ 50,101 Interest sensitive and index product benefits $ 103,542 $ 303,035 $ 152,485 Change in fair value of embedded derivatives 81,907 (76,915) 4,352 Other operating costs and expenses 18,318 16,440 17,663 $ 203,767 $ 242,560 $ 174,500 Consolidated Statements of Cash Flows Annuity deposits $ (982,176) $ (424,819) $ (35,667) Cash payments to policyholders 1,029,667 984,260 466,311 $ 47,491 $ 559,441 $ 430,644 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | Our income tax expense as presented in the consolidated financial statements is summarized as follows: Year Ended December 31, 2022 2021 2020 (Dollars in thousands) Consolidated statements of operations: Current income taxes $ 20,209 $ 332 $ 3,430 Deferred income taxes 490,926 149,431 141,071 Total income tax expense included in consolidated statements of operations 511,135 149,763 144,501 Stockholders' equity: Expense (benefit) relating to: Adoption of expected credit loss model — — (2,543) Changes in other comprehensive income (1,843,635) 207,353 225,746 Total income tax expense included in consolidated financial statements $ (1,332,500) $ 357,116 $ 367,704 |
Effective Income Tax Rate Reconciliation | Income tax expense in the consolidated statements of operations differed from the amount computed at the applicable statutory federal income tax rates of 21% for the years ended December 31, 2022, 2021, and 2020 as follows: Year Ended December 31, 2022 2021 2020 (Dollars in thousands) Income before income taxes $ 2,431,712 $ 702,786 $ 815,961 Income tax expense on income before income taxes $ 510,660 $ 147,585 $ 171,352 Tax effect of: State income taxes 2,564 5,239 5,749 Tax exempt net investment income (4,065) (4,715) (4,602) Tax rate differential on net operating loss carryback — — (30,041) Other 1,976 1,654 2,043 Income tax expense $ 511,135 $ 149,763 $ 144,501 Effective tax rate 21.0 % 21.3 % 17.7 % |
Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to the deferred tax assets and liabilities at December 31, 2022 and 2021, are as follows: December 31, 2022 2021 (Dollars in thousands) Deferred income tax assets: Policy benefit reserves $ — $ 445,793 Credit losses/impairments 10,531 15,275 Net unrealized losses on available for sale fixed maturity securities 1,063,441 — Amounts due reinsurer 1,030,759 748,812 Other policyholder funds 358 3,332 Deferred compensation 3,866 3,434 Share-based compensation 422 5,171 Net operating loss carryforwards 50,913 87,314 Other 71,417 1,140 Gross deferred tax assets 2,231,707 1,310,271 Deferred income tax liabilities: Deferred policy acquisition costs and deferred sales inducements (976,103) (1,051,900) Net unrealized gains on available for sale fixed maturity securities — (905,050) Derivative instruments (145,785) (107,717) Policy benefit reserves (612,454) (98,616) Investment income items (39,309) (56,285) Other (19,622) (5,120) Gross deferred tax liabilities (1,793,273) (2,224,688) Net deferred income tax asset (liability) $ 438,434 $ (914,417) |
Notes and Loan Payable (Tables)
Notes and Loan Payable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Notes and Loan Payable | Notes and loan payable includes the following: December 31, 2022 2021 (Dollars in thousands) Senior notes due 2027 Principal $ 500,000 $ 500,000 Unamortized debt issue costs (2,960) (3,537) Unamortized discount (178) (213) Term loan due 2027 Principal 300,000 — Principal paydown (3,750) — Unamortized debt issue costs (1,039) — $ 792,073 $ 496,250 |
Subordinated Debentures (Tables
Subordinated Debentures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Subordinated Borrowings [Abstract] | |
Summary of Subordinated Debt Obligations to the Trusts | Following is a summary of subordinated debt obligations to the trusts at December 31, 2022 and 2021: December 31, 2022 2021 Interest Rate Due Date (Dollars in thousands) American Equity Capital Trust II $ 78,753 $ 78,421 5% June 1, 2047 |
Retirement and Share-based Co_2
Retirement and Share-based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Compensation Expense By Plan | The following table summarizes compensation expense recognized for employees and directors as a result of share-based compensation: Year Ended December 31, 2022 2021 2020 (Dollars in thousands) ESOP $ 4,152 $ 3,377 $ 2,908 Employee Incentive Plans 14,454 22,886 7,855 Director Equity Plans 1,053 1,262 1,056 $ 19,659 $ 27,525 $ 11,819 |
Changes in Stock Options Outstanding | Changes in the number of stock options granted to employees outstanding during the years ended December 31, 2022, 2021 and 2020 are as follows: Number of Weighted-Average Total (Dollars in thousands, except per share data) Outstanding at January 1, 2020 828,913 $ 19.91 $ 16,506 Granted 815,767 26.70 21,778 Canceled (31,200) 21.50 (670) Exercised (355,563) 16.98 (6,038) Outstanding at December 31, 2020 1,257,917 25.10 31,576 Granted 1,246,605 29.15 36,336 Canceled (146,803) 25.44 (3,735) Exercised (295,000) 22.88 (6,749) Outstanding at December 31, 2021 2,062,719 27.84 57,428 Granted — — — Canceled (102,143) 27.49 (2,808) Exercised (173,782) 24.59 (4,273) Outstanding at December 31, 2022 1,786,794 28.18 $ 50,347 |
Schedule of Stock Options Outstanding, By Exercise Price Range | The following table summarizes information about stock options outstanding at December 31, 2022: Stock Options Outstanding Stock Options Vested Range of Exercise Prices Number of Remaining Weighted-Average Number of Remaining Weighted-Average $21.89 - $26.72 375,820 7.83 $ 26.07 126,224 8.01 $ 26.72 $27.05 - $32.58 1,410,974 8.10 28.74 606,322 8.09 28.71 $21.89 - $32.58 1,786,794 8.05 28.18 732,546 8.08 28.37 |
Statutory Financial Informati_2
Statutory Financial Information and Dividend Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Statutory Accounting Practices Disclosure | Net income (loss) for our primary life insurance subsidiary as determined in accordance with statutory accounting practices was as follows: Year Ended December 31, 2022 2021 2020 (Dollars in thousands) American Equity Life $ 151,857 $ (863,818) $ (34,467) Statutory capital and surplus for our primary life insurance subsidiary was as follows: December 31, 2022 2021 (Dollars in thousands) American Equity Life $ 3,692,602 $ 4,078,532 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The following represents payments due by period for operating lease obligations as of December 31, 2022 (dollars in thousands): Year Ending December 31: 2023 $ 3,792 2024 4,112 2025 3,985 2026 3,587 2027 2,014 2028 and thereafter 11,013 |
Earnings Per Common Share and_2
Earnings Per Common Share and Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Common Share, Basic and Diluted | The following table sets forth the computation of earnings per common share and earnings per common share - assuming dilution: Year Ended December 31, 2022 2021 2020 (Dollars in thousands, except per share data) Numerator: Net income available to common stockholders - numerator for earnings per common share $ 1,876,544 $ 509,348 $ 637,945 Denominator : Weighted average common shares outstanding 90,558,121 93,860,378 92,055,035 Effect of dilutive securities: Stock options and deferred compensation agreements 523,248 271,422 93,014 Restricted stock and restricted stock units 456,759 359,359 244,447 Denominator for earnings per common share - assuming dilution 91,538,128 94,491,159 92,392,496 Earnings per common share $ 20.72 $ 5.43 $ 6.93 Earnings per common share - assuming dilution $ 20.50 $ 5.39 $ 6.90 |
Significant Accounting Polici_4
Significant Accounting Policies (Narrative) (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) state | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jan. 01, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Number of states in which entity is licensed to sell insurance products | state | 50 | ||||
Mortgage loans on real estate, allowance for credit losses | $ 36,972 | $ 24,024 | $ 31,029 | ||
Coinsurance deposits, allowance for credit losses | 8,737 | 2,264 | |||
Retained earnings | 4,685,593 | 2,839,254 | |||
Estimated impact to stockholders' equity at January 1, 2021 | 2,370,750 | 7,738,717 | $ 6,348,988 | $ 4,426,522 | |
Accumulated other comprehensive income (loss) | $ (3,746,230) | $ 3,192,547 | |||
Minimum | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Number of days past due, non-accrual status | 90 days | ||||
Interest crediting rate, range for fixed index annuities and other deferred annuity products | 1.45% | 1.45% | 1.45% | ||
Minimum | Fixed Maturity Securities, Available For Sale | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Investment maturity period | 1 year | ||||
Minimum | Other Invested Assets - COLI, Equity Securities, Short-Term Debt Securities | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Investment maturity period | 3 months | ||||
Maximum | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Interest crediting rate, range for fixed index annuities and other deferred annuity products | 2.65% | 2.65% | 2.65% | ||
Maximum | Other Invested Assets - COLI, Equity Securities, Short-Term Debt Securities | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Investment maturity period | 12 months | ||||
Maximum | Other Invested Assets - Short-Term Loans and Collateral Loans | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Investment maturity period | 1 year | ||||
Maximum | Cash and Cash Equivalents | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Investment maturity period | 3 months | ||||
Cumulative Effect, Period of Adoption, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Retained earnings | $ 7,200 | ||||
Estimated impact to stockholders' equity at January 1, 2021 | $ 1,761,321 | (9,295) | |||
Accumulated other comprehensive income (loss) | $ 1,800,000 | ||||
Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Mortgage loans on real estate, allowance for credit losses | $ 8,600 | ||||
Coinsurance deposits, allowance for credit losses | 3,200 | ||||
Retained earnings | $ (9,300) |
Significant Accounting Polici_5
Significant Accounting Policies (Annuity Deposits (Net of Coinsurance), By Product Type) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) organization | Dec. 31, 2021 USD ($) organization | Dec. 31, 2020 USD ($) organization | |
Product Information [Line Items] | |||
Fixed index annuities | $ 2,202,688 | $ 3,026,211 | $ 2,309,580 |
Annual reset fixed rate annuities | 5,535 | 6,000 | 7,846 |
Multi-year fixed rate annuities | 139,092 | 2,452,994 | 1,295,843 |
Single premium immediate annuities (SPIA) | 18,935 | 59,816 | 33,461 |
Annuity deposits, net of coinsurance | $ 2,366,250 | $ 5,545,021 | $ 3,646,730 |
Customer Concentration Risk | Annuity Deposits Benchmark | |||
Product Information [Line Items] | |||
National marketing organizations, number of organizations accounting for more than 10% of annuity deposits collected | organization | 4 | 2 | 2 |
Customer Concentration Risk | Annuity Deposits Benchmark | National Marketing Organization, Greater than 10%, NMO 1 | |||
Product Information [Line Items] | |||
National marketing organizations, percent of annuity deposits collected individually | 22% | 14% | 17% |
Customer Concentration Risk | Annuity Deposits Benchmark | National Marketing Organization, Greater than 10%, NMO 2 | |||
Product Information [Line Items] | |||
National marketing organizations, percent of annuity deposits collected individually | 16% | 11% | 10% |
Customer Concentration Risk | Annuity Deposits Benchmark | National Marketing Organization, Greater than 10%, NMO 3 | |||
Product Information [Line Items] | |||
National marketing organizations, percent of annuity deposits collected individually | 10% | ||
Customer Concentration Risk | Annuity Deposits Benchmark | National Marketing Organization, Greater than 10%, NMO 4 | |||
Product Information [Line Items] | |||
National marketing organizations, percent of annuity deposits collected individually | 10% |
Significant Accounting Polici_6
Significant Accounting Policies - Schedule of Long-Duration Contracts (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Liability for Future Policy Benefits for Payout Annuity With Life Contingency | |||
Beginning balance, liability for future policy benefit | $ 402,305 | $ 384,510 | |
Liability for future policy benefit, adjustment | 318,677 | 402,305 | $ 384,510 |
Ending balance, liability for future policy benefit | 318,677 | 402,305 | 384,510 |
Beginning balance, market risk benefit | 2,635,789 | ||
Net Liability | 2,225,621 | 2,635,789 | |
Ending balance, market risk benefit | 2,225,621 | 2,635,789 | |
Deferred Policy Acquisition Costs | |||
Pre-adoption 1/1/2021 balance | 3,062,204 | 3,408,505 | |
Deferred policy acquisition costs | 2,773,643 | 3,062,204 | 3,408,505 |
Post adoption 1/1/2021 balance | 2,773,643 | 3,062,204 | 3,408,505 |
Deferred Sales Inducements | |||
Pre-adoption 1/1/2021 balance | 2,119,962 | 2,216,685 | |
Deferred sales inducements | 2,045,683 | 2,119,962 | 2,216,685 |
Post adoption 1/1/2021 balance | $ 2,045,683 | $ 2,119,962 | 2,216,685 |
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 | |||
Liability for Future Policy Benefits for Payout Annuity With Life Contingency | As Reported | |||
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 | |||
Liability for Future Policy Benefits for Payout Annuity With Life Contingency | Adjustment to opening retained earnings for expected future policy benefits | |||
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 | |||
Liability for Future Policy Benefits for Payout Annuity With Life Contingency | Adjustment for the effect of remeasurement of liability at current single A rate | |||
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 | |||
Market Risk Benefit Liability | |||
Liability for Future Policy Benefits for Payout Annuity With Life Contingency | |||
Beginning balance, market risk benefit | 2,225,484 | ||
Net Liability | |||
Market Risk Benefit Liability | As Reported | |||
Liability for Future Policy Benefits for Payout Annuity With Life Contingency | |||
Beginning balance, market risk benefit | 2,547,231 | ||
Net Liability | |||
Market Risk Benefit Liability | Adjustment for the removal of shadow adjustments | |||
Liability for Future Policy Benefits for Payout Annuity With Life Contingency | |||
Beginning balance, market risk benefit | (584,636) | ||
Net Liability | |||
Market Risk Benefit Liability | Adjustment for the cumulative effect of the changes in the instrument-specific credit risk between the original contract issuance date and the transition date | |||
Liability for Future Policy Benefits for Payout Annuity With Life Contingency | |||
Beginning balance, market risk benefit | 229,108 | ||
Net Liability | |||
Market Risk Benefit Liability | Adjustment for the remaining difference between previous carrying amount and fair value measurement for the MRB, exclusive of the instrument specific credit risk | |||
Liability for Future Policy Benefits for Payout Annuity With Life Contingency | |||
Beginning balance, market risk benefit | 33,781 | ||
Net Liability | |||
Ceded Market Risk Benefit | |||
Liability for Future Policy Benefits for Payout Annuity With Life Contingency | |||
Beginning balance, market risk benefit | 89,338 | ||
Net Liability | |||
Ceded Market Risk Benefit | As Reported | |||
Liability for Future Policy Benefits for Payout Annuity With Life Contingency | |||
Beginning balance, market risk benefit | 62,108 | ||
Net Liability | |||
Ceded Market Risk Benefit | Adjustment for the remaining difference between previous carrying amount and fair value measurement for the MRB, exclusive of the instrument specific credit risk | |||
Liability for Future Policy Benefits for Payout Annuity With Life Contingency | |||
Beginning balance, market risk benefit | 27,230 | ||
Net Liability | |||
Fixed Index Annuities and Fixed Rate Annuities | |||
Deferred Policy Acquisition Costs | |||
Pre-adoption 1/1/2021 balance | 3,408,505 | ||
Deferred policy acquisition costs | |||
Deferred Sales Inducements | |||
Pre-adoption 1/1/2021 balance | 2,216,685 | ||
Deferred sales inducements | |||
Fixed Index Annuities and Fixed Rate Annuities | As Reported | |||
Deferred Policy Acquisition Costs | |||
Pre-adoption 1/1/2021 balance | 2,225,199 | ||
Deferred policy acquisition costs | |||
Deferred Sales Inducements | |||
Pre-adoption 1/1/2021 balance | 1,448,375 | ||
Deferred sales inducements | |||
Fixed Index Annuities and Fixed Rate Annuities | Revision of Prior Period, Accounting Standards Update, Adjustment | |||
Deferred Policy Acquisition Costs | |||
Pre-adoption 1/1/2021 balance | 1,183,306 | ||
Deferred policy acquisition costs | |||
Deferred Sales Inducements | |||
Pre-adoption 1/1/2021 balance | $ 768,310 | ||
Deferred sales inducements |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments (Carrying Amounts and Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Fixed maturity securities, available for sale | $ 39,804,617 | $ 51,305,943 |
Derivative instruments | 431,727 | 1,277,480 |
Other investments | 1,817,085 | 1,247,024 |
Coinsurance deposits (net of allowance for credit losses of $8,737 as of 2022 and $2,264 as of 2021) | 13,254,956 | 8,988,891 |
Market risk benefits | 229,871 | 526,373 |
Liabilities | ||
Policy benefit reserves | 318,677 | 402,305 |
Market risk benefits | 2,455,492 | 3,162,162 |
Other policy funds - FHLB | 300,000 | |
Carrying Amount | ||
Assets | ||
Fixed maturity securities, available for sale | 39,804,617 | 51,305,943 |
Mortgage loans on real estate | 6,949,027 | 5,687,998 |
Real estate investments | 1,056,063 | 337,939 |
Limited partnerships and limited liability companies | 684,835 | 168,711 |
Derivative instruments | 431,727 | 1,277,480 |
Other investments | 1,817,085 | 1,247,024 |
Cash and cash equivalents | 1,919,669 | 4,508,982 |
Coinsurance deposits (net of allowance for credit losses of $8,737 as of 2022 and $2,264 as of 2021) | 13,254,956 | 8,988,891 |
Market risk benefits | 229,871 | 526,373 |
Liabilities | ||
Policy benefit reserves | 58,419,911 | 62,169,441 |
Market risk benefits | 2,455,492 | 3,162,162 |
Single premium immediate annuity (SPIA) benefit reserves | 212,119 | 226,207 |
Other policy funds - FHLB | 300,000 | 0 |
Notes and loan payable | 792,073 | 496,250 |
Subordinated debentures | 78,753 | 78,421 |
Fair Value | ||
Assets | ||
Fixed maturity securities, available for sale | 39,804,617 | 51,305,943 |
Mortgage loans on real estate | 6,502,463 | 5,867,227 |
Real estate investments | 1,056,063 | 337,939 |
Limited partnerships and limited liability companies | 684,835 | 168,711 |
Derivative instruments | 431,727 | 1,277,480 |
Other investments | 1,817,085 | 1,247,024 |
Cash and cash equivalents | 1,919,669 | 4,508,982 |
Coinsurance deposits (net of allowance for credit losses of $8,737 as of 2022 and $2,264 as of 2021) | 12,640,797 | 8,188,338 |
Market risk benefits | 229,871 | 526,373 |
Liabilities | ||
Policy benefit reserves | 55,572,896 | 56,375,076 |
Market risk benefits | 2,455,492 | 3,162,162 |
Single premium immediate annuity (SPIA) benefit reserves | 221,130 | 235,891 |
Other policy funds - FHLB | 300,000 | 0 |
Notes and loan payable | 774,220 | 569,485 |
Subordinated debentures | $ 87,293 | $ 93,721 |
Fair Values of Financial Inst_4
Fair Values of Financial Instruments (Narrative) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) Basis_Points variable_interest_entities Investment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Expected cost of annual call options | 2.40% | 2.10% | 2.10% | 2.90% |
Coinsurance deposits (net of allowance for credit losses of $8,737 as of 2022 and $2,264 as of 2021) | $ 13,254,956 | $ 8,988,891 | ||
Fixed index annuities - embedded derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Coinsurance deposits (net of allowance for credit losses of $8,737 as of 2022 and $2,264 as of 2021) | $ 1,173,400 | 1,245,000 | ||
Variable Interest Entity, Primary Beneficiary, 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 | variable_interest_entities | 2 | |||
Unfunded commitments | $ 926,300 | |||
Minimum | Measurement Input, Discount Rate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value, sensitivity, discount rate adjustment (basis points) | Basis_Points | (0.0100) | |||
Fixed index annuities embedded derivative, adjustment due to change in discount rate | $ 386,400 | |||
Maximum | Measurement Input, Discount Rate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value, sensitivity, discount rate adjustment (basis points) | Basis_Points | 0.0100 | |||
Fixed index annuities embedded derivative, adjustment due to change in discount rate | $ (336,200) | |||
Fair Value, Measurements, Recurring | Corporate securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, fair value | 24,161,921 | 34,660,234 | ||
Fair Value, Measurements, Recurring | Other asset backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, fair value | 5,908,702 | 5,271,857 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Corporate securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, fair value | 402,348 | 0 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Other asset backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, fair value | $ 442,918 | 0 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Fixed Maturity Securities | Discounted cash flow | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Unobservable liquidity premium, basis points | 0.0020 | |||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Fixed Maturity Securities | Discounted cash flow | Corporate securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, fair value | $ 84,700 | 0 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Fixed Maturity Securities | Discounted cash flow | Other asset backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, fair value | $ 296,800 | 0 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Real estate investments | Discounted cash flow | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash flow modeling period | 10 years | |||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Limited partnerships and limited liability companies | 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 | variable_interest_entities | 2 | |||
Variable interest entity, fair value | $ 64,200 | |||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, fair value | 23,759,573 | 34,627,534 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Other asset backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, fair value | $ 5,465,784 | $ 5,271,857 | ||
Fair Value, Measurements, Recurring | Minimum | Equity Securities and Short-Term Debt Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment maturity period | 3 months | |||
Fair Value, Measurements, Recurring | Minimum | Significant Unobservable Inputs (Level 3) | Measurement Input, Discount Rate | Fixed Maturity Securities | Discounted cash flow | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturity securities, measurement input | 0.0404 | |||
Fair Value, Measurements, Recurring | Minimum | Significant Unobservable Inputs (Level 3) | Measurement Input, Discount Rate | Real estate investments | Discounted cash flow | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Real estate investments, measurement input | 6% | 6.25% | ||
Fair Value, Measurements, Recurring | Minimum | Significant Unobservable Inputs (Level 3) | Measurement Input, Discount Rate | Limited partnerships and limited liability companies | Discounted cash flow | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Limited partnerships and limited liability companies, measurement input | 5.75% | |||
Fair Value, Measurements, Recurring | Minimum | Significant Unobservable Inputs (Level 3) | Measurement Input, Expected Term | Fixed Maturity Securities | Discounted cash flow | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturity securities, weighted average lives | 8 years 9 months 14 days | |||
Fair Value, Measurements, Recurring | Minimum | Significant Unobservable Inputs (Level 3) | Measurement Input, Cap Rate | Real estate investments | Discounted cash flow | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Real estate investments, measurement input | 4.75% | 5% | ||
Fair Value, Measurements, Recurring | Minimum | Significant Unobservable Inputs (Level 3) | Measurement Input, Cap Rate | Limited partnerships and limited liability companies | Discounted cash flow | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Limited partnerships and limited liability companies, measurement input | 4.25% | |||
Fair Value, Measurements, Recurring | Maximum | Equity Securities and Short-Term Debt Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment maturity period | 12 months | |||
Fair Value, Measurements, Recurring | Maximum | Significant Unobservable Inputs (Level 3) | Measurement Input, Discount Rate | Fixed Maturity Securities | Discounted cash flow | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturity securities, measurement input | 0.2858 | |||
Fair Value, Measurements, Recurring | Maximum | Significant Unobservable Inputs (Level 3) | Measurement Input, Discount Rate | Real estate investments | Discounted cash flow | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Real estate investments, measurement input | 8% | 7.50% | ||
Fair Value, Measurements, Recurring | Maximum | Significant Unobservable Inputs (Level 3) | Measurement Input, Discount Rate | Limited partnerships and limited liability companies | 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% | |||
Fair Value, Measurements, Recurring | Maximum | Significant Unobservable Inputs (Level 3) | Measurement Input, Expected Term | Fixed Maturity Securities | Discounted cash flow | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturity securities, weighted average lives | 12 years 5 months 23 days | |||
Fair Value, Measurements, Recurring | Maximum | Significant Unobservable Inputs (Level 3) | Measurement Input, Cap Rate | Real estate investments | Discounted cash flow | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Real estate investments, measurement input | 6.50% | 6.25% | ||
Fair Value, Measurements, Recurring | Maximum | Significant Unobservable Inputs (Level 3) | Measurement Input, Cap Rate | Limited partnerships and limited liability companies | Discounted cash flow | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Limited partnerships and limited liability companies, measurement input | 4.75% | |||
Fair Value, Measurements, Recurring | Weighted Average | Significant Unobservable Inputs (Level 3) | Measurement Input, Discount Rate | Fixed Maturity Securities | Discounted cash flow | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturity securities, measurement input | 0.0436 | |||
Fair Value, Measurements, Recurring | Weighted Average | Significant Unobservable Inputs (Level 3) | Measurement Input, Discount Rate | Limited partnerships and limited liability companies | Discounted cash flow | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Limited partnerships and limited liability companies, measurement input | 5.86% | |||
Fair Value, Measurements, Recurring | Weighted Average | Significant Unobservable Inputs (Level 3) | Measurement Input, Expected Term | Fixed Maturity Securities | Discounted cash flow | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturity securities, weighted average lives | 9 years 3 months 14 days | |||
Fair Value, Measurements, Recurring | Weighted Average | Significant Unobservable Inputs (Level 3) | Measurement Input, Cap Rate | Limited partnerships and limited liability companies | Discounted cash flow | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Limited partnerships and limited liability companies, measurement input | 4.46% | |||
Fair Value, Measurements, Recurring | Average | Significant Unobservable Inputs (Level 3) | Measurement Input, Discount Rate | Real estate investments | Discounted cash flow | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Real estate investments, measurement input | 6.91% | 6.97% | ||
Fair Value, Measurements, Recurring | Average | Significant Unobservable Inputs (Level 3) | Measurement Input, Cap Rate | Real estate investments | Discounted cash flow | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Real estate investments, measurement input | 5.44% | 5.72% | ||
Fair Value, Nonrecurring | Real estate investments | Variable Interest Entities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Number of real estate investments not measured at fair value on a recurring basis | Investment | 1 | |||
Fair Value, Nonrecurring | Significant Other Observable Inputs (Level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
FHLB common stock | $ 22,000 | |||
Short-term loans, fair value | 316,400 | $ 320,000 | ||
Collateral loans, fair value | 64,600 | 0 | ||
COLI, fair value | $ 397,700 | $ 384,300 |
Fair Values of Financial Inst_5
Fair Values of Financial Instruments (Assets and Liabilities Measured on a Recurring Basis by Fair Value Hierarchy) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Derivative instruments | $ 431,727 | $ 1,277,480 |
Market risk benefits | 229,871 | 526,373 |
Liabilities | ||
Market risk benefits | 2,455,492 | 3,162,162 |
Fair Value, Measurements, Recurring | ||
Assets | ||
Real estate investments | 940,559 | 337,939 |
Limited partnerships and limited liability companies | 684,835 | 168,711 |
Derivative instruments | 431,727 | 1,277,480 |
Cash and cash equivalents | 1,919,669 | 4,508,982 |
Market risk benefits | 229,871 | 526,373 |
Assets | 45,024,575 | 58,137,654 |
Liabilities | ||
Market risk benefits | 2,455,492 | 3,162,162 |
Liabilities | 6,834,473 | 11,124,761 |
Fair Value, Measurements, Recurring | Funds withheld liability - embedded derivative | ||
Liabilities | ||
Derivative liabilities | (441,864) | (2,362) |
Fair Value, Measurements, Recurring | Fixed index annuities - embedded derivatives | ||
Liabilities | ||
Derivative liabilities | 4,820,845 | 7,964,961 |
Fair Value, Measurements, Recurring | U.S. Government and agencies | ||
Assets | ||
Investments | 169,071 | 1,078,746 |
Fair Value, Measurements, Recurring | States, municipalities and territories | ||
Assets | ||
Investments | 3,822,982 | 3,927,201 |
Fair Value, Measurements, Recurring | Foreign corporate securities and foreign governments | ||
Assets | ||
Investments | 676,852 | 402,545 |
Fair Value, Measurements, Recurring | Corporate securities | ||
Assets | ||
Investments | 24,161,921 | 34,660,234 |
Fair Value, Measurements, Recurring | Residential mortgage backed securities | ||
Assets | ||
Investments | 1,377,611 | 1,125,049 |
Fair Value, Measurements, Recurring | Commercial mortgage backed securities | ||
Assets | ||
Investments | 3,687,478 | 4,840,311 |
Fair Value, Measurements, Recurring | Other asset backed securities | ||
Assets | ||
Investments | 5,908,702 | 5,271,857 |
Fair Value, Measurements, Recurring | Other investments | ||
Assets | ||
Investments | 1,013,297 | 12,226 |
Fair Value, Measurements, Recurring | NAV | ||
Assets | ||
Real estate investments | 0 | 0 |
Limited partnerships and limited liability companies | 620,626 | 168,711 |
Derivative instruments | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Market risk benefits | 0 | 0 |
Assets | 620,626 | 168,711 |
Liabilities | ||
Market risk benefits | 0 | 0 |
Liabilities | 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 | 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 | 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 | 1,919,669 | 4,508,982 |
Market risk benefits | 0 | 0 |
Assets | 2,344,133 | 4,574,419 |
Liabilities | ||
Market risk benefits | 0 | 0 |
Liabilities | 0 | 0 |
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 | Quoted Prices in Active Markets (Level 1) | U.S. Government and agencies | ||
Assets | ||
Investments | 26,184 | 32,737 |
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 | 32,700 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | Residential mortgage backed securities | ||
Assets | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | Commercial mortgage backed securities | ||
Assets | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | Other asset backed securities | ||
Assets | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets (Level 1) | Other investments | ||
Assets | ||
Investments | 398,280 | 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 | 431,727 | 1,277,480 |
Cash and cash equivalents | 0 | 0 |
Market risk benefits | 0 | 0 |
Assets | 39,979,911 | 52,523,863 |
Liabilities | ||
Market risk benefits | 0 | 0 |
Liabilities | 0 | (2,362) |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Funds withheld liability - embedded derivative | ||
Liabilities | ||
Derivative liabilities | 0 | (2,362) |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Fixed index annuities - embedded derivatives | ||
Liabilities | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Government and agencies | ||
Assets | ||
Investments | 142,887 | 1,046,009 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | States, municipalities and territories | ||
Assets | ||
Investments | 3,822,982 | 3,927,201 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign corporate securities and foreign governments | ||
Assets | ||
Investments | 676,852 | 402,545 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate securities | ||
Assets | ||
Investments | 23,759,573 | 34,627,534 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Residential mortgage backed securities | ||
Assets | ||
Investments | 1,377,611 | 1,125,049 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Commercial mortgage backed securities | ||
Assets | ||
Investments | 3,687,478 | 4,840,311 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Other asset backed securities | ||
Assets | ||
Investments | 5,465,784 | 5,271,857 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Other investments | ||
Assets | ||
Investments | 615,017 | 5,877 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Real estate investments | 940,559 | 337,939 |
Limited partnerships and limited liability companies | 64,209 | 0 |
Derivative instruments | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Market risk benefits | 229,871 | 526,373 |
Assets | 2,079,905 | 870,661 |
Liabilities | ||
Market risk benefits | 2,455,492 | 3,162,162 |
Liabilities | 6,834,473 | 11,127,123 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Funds withheld liability - embedded derivative | ||
Liabilities | ||
Derivative liabilities | (441,864) | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Fixed index annuities - embedded derivatives | ||
Liabilities | ||
Derivative liabilities | 4,820,845 | 7,964,961 |
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 | 0 | 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 | 402,348 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Residential mortgage backed securities | ||
Assets | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Commercial mortgage backed securities | ||
Assets | ||
Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Other asset backed securities | ||
Assets | ||
Investments | 442,918 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Other investments | ||
Assets | ||
Investments | $ 0 | $ 6,349 |
Fair Values of Financial Inst_6
Fair Values of Financial Instruments (Assumptions Used in Estimating Fair Value) (Details) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||||
Expected cost of annual call options | 2.40% | 2.10% | 2.10% | 2.90% |
Fixed Index Annuities | Minimum | Contract Duration (Years), 1-5 | ||||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||||
Contract duration (years) | 1 year | 1 year | ||
Fixed Index Annuities | Minimum | Contract Duration (Years), 6-10 | ||||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||||
Contract duration (years) | 6 years | 6 years | ||
Fixed Index Annuities | Minimum | Contract Duration (Years), 11-15 | ||||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||||
Contract duration (years) | 11 years | 11 years | ||
Fixed Index Annuities | Minimum | Contract Duration (Years), 16-20 | ||||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||||
Contract duration (years) | 16 years | 16 years | ||
Fixed Index Annuities | Minimum | Contract Duration (Years), 20 or More | ||||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||||
Contract duration (years) | 20 years | 20 years | ||
Fixed Index Annuities | Maximum | Contract Duration (Years), 1-5 | ||||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||||
Contract duration (years) | 5 years | 5 years | ||
Fixed Index Annuities | Maximum | Contract Duration (Years), 6-10 | ||||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||||
Contract duration (years) | 10 years | 10 years | ||
Fixed Index Annuities | Maximum | Contract Duration (Years), 11-15 | ||||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||||
Contract duration (years) | 15 years | 15 years | ||
Fixed Index Annuities | Maximum | Contract Duration (Years), 16-20 | ||||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||||
Contract duration (years) | 20 years | 20 years | ||
Fixed Index Annuities | Average | Contract Duration (Years), 1-5 | ||||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||||
Average lapse rates | 2.17% | 3.04% | ||
Average partial withdrawal rates | 1.86% | 2.19% | ||
Fixed Index Annuities | Average | Contract Duration (Years), 6-10 | ||||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||||
Average lapse rates | 3.28% | 2.84% | ||
Average partial withdrawal rates | 1.97% | 2.26% | ||
Fixed Index Annuities | Average | Contract Duration (Years), 11-15 | ||||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||||
Average lapse rates | 3.63% | 4.47% | ||
Average partial withdrawal rates | 1.86% | 2.14% | ||
Fixed Index Annuities | Average | Contract Duration (Years), 16-20 | ||||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||||
Average lapse rates | 8.55% | 8.93% | ||
Average partial withdrawal rates | 2.96% | 1.33% | ||
Fixed Index Annuities | Average | Contract Duration (Years), 20 or More | ||||
Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items] | ||||
Average lapse rates | 4.90% | 4.93% | ||
Average partial withdrawal rates | 1.81% | 0% |
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 | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Corporate securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 0 | $ 0 |
Purchases | 2,233 | 0 |
Transfers in | 391,702 | 0 |
Transfers out | 0 | 0 |
Included in net income | 0 | 0 |
Included in other comprehensive income (loss) | 8,413 | 0 |
Ending balance | 402,348 | 0 |
Other asset backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 0 | 0 |
Purchases | 296,800 | 0 |
Transfers in | 153,669 | 0 |
Transfers out | 0 | 0 |
Included in net income | 0 | 0 |
Included in other comprehensive income (loss) | (7,551) | 0 |
Ending balance | 442,918 | 0 |
Other investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 6,349 | 0 |
Transfers in | 0 | 6,349 |
Transfers out | (3,867) | 0 |
Included in net income | (2,482) | 0 |
Included in other comprehensive income (loss) | 0 | 0 |
Ending balance | 0 | 6,349 |
Limited partnerships and limited liability companies | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 0 | 0 |
Purchases and sales, net | 57,574 | 0 |
Included in net income | 6,635 | 0 |
Ending balance | 64,209 | 0 |
Real estate investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 337,939 | 0 |
Purchases and sales, net | 602,298 | 335,767 |
Included in net income | 322 | 2,172 |
Ending balance | 940,559 | 337,939 |
Funds withheld liability - embedded derivative | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 0 | 0 |
Transfers in | (441,864) | 0 |
Change in fair value, net | 0 | 0 |
Ending balance | (441,864) | 0 |
Fixed index annuities - embedded derivatives | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 7,964,961 | 7,938,281 |
Premiums less benefits | (125,940) | 1,424,372 |
Change in fair value, net | (2,561,676) | (876,803) |
Reserve release related to in-force ceded reinsurance | (456,500) | (520,889) |
Ending balance | $ 4,820,845 | $ 7,964,961 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) security | Dec. 31, 2021 USD ($) security | Dec. 31, 2020 USD ($) | |
Investments [Abstract] | |||
Percentage of fixed maturity portfolio rated investment grade based on NAIC designations | 98% | 98% | |
Number of securities in unrealized loss position | security | 4,510 | 1,427 | |
Percentage of unrealized losses on fixed maturity securities where securities are rated investment grade | 98% | 85% | |
Proceeds from sales of available for sale fixed maturity securities | $ 7,800,000 | $ 800,000 | $ 5,400,000 |
Principal repayments, calls and tenders of available for sale fixed maturity securities | 2,800,000 | 3,700,000 | $ 2,900,000 |
Cash and invested assets on deposit with state agencies to meet regulatory requirements | 51,000,000 | 49,300,000 | |
Fair value, concentration of risk, investments | $ 0 | $ 0 |
Investments (Schedule of Fixed
Investments (Schedule of Fixed Maturity Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed maturity securities, available for sale, amortized cost | [1] | $ 44,866,019 | $ 46,999,183 | |
Fixed maturity securities, available for sale, gross unrealized gains | 225,792 | 4,421,976 | ||
Fixed maturity securities, available for sale, gross unrealized losses | [2] | (5,283,847) | (112,370) | |
Fixed maturity securities, available for sale, allowance for credit losses | (3,347) | (2,846) | $ (64,771) | |
Fixed maturity securities, available for sale | 39,804,617 | 51,305,943 | ||
U.S. Government and agencies | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed maturity securities, available for sale, amortized cost | [1] | 173,638 | 1,046,029 | |
Fixed maturity securities, available for sale, gross unrealized gains | 70 | 32,841 | ||
Fixed maturity securities, available for sale, gross unrealized losses | [2] | (4,637) | (124) | |
Fixed maturity securities, available for sale, allowance for credit losses | 0 | 0 | ||
Fixed maturity securities, available for sale | 169,071 | 1,078,746 | ||
States, municipalities and territories | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed maturity securities, available for sale, amortized cost | [1] | 4,356,251 | 3,495,563 | |
Fixed maturity securities, available for sale, gross unrealized gains | 41,565 | 437,456 | ||
Fixed maturity securities, available for sale, gross unrealized losses | [2] | (574,834) | (3,042) | |
Fixed maturity securities, available for sale, allowance for credit losses | 0 | (2,776) | (2,844) | |
Fixed maturity securities, available for sale | 3,822,982 | 3,927,201 | ||
Foreign corporate securities and foreign governments | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed maturity securities, available for sale, amortized cost | [1] | 748,770 | 380,646 | |
Fixed maturity securities, available for sale, gross unrealized gains | 11,661 | 22,742 | ||
Fixed maturity securities, available for sale, gross unrealized losses | [2] | (83,579) | (843) | |
Fixed maturity securities, available for sale, allowance for credit losses | 0 | 0 | ||
Fixed maturity securities, available for sale | 676,852 | 402,545 | ||
Corporate securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed maturity securities, available for sale, amortized cost | [1] | 27,706,440 | 31,084,629 | |
Fixed maturity securities, available for sale, gross unrealized gains | 146,065 | 3,614,047 | ||
Fixed maturity securities, available for sale, gross unrealized losses | [2] | (3,687,370) | (38,442) | |
Fixed maturity securities, available for sale, allowance for credit losses | (3,214) | 0 | (60,193) | |
Fixed maturity securities, available for sale | 24,161,921 | 34,660,234 | ||
Residential mortgage backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed maturity securities, available for sale, amortized cost | [1] | 1,492,242 | 1,056,778 | |
Fixed maturity securities, available for sale, gross unrealized gains | 11,870 | 70,434 | ||
Fixed maturity securities, available for sale, gross unrealized losses | [2] | (126,368) | (2,093) | |
Fixed maturity securities, available for sale, allowance for credit losses | (133) | (70) | $ (1,734) | |
Fixed maturity securities, available for sale | 1,377,611 | 1,125,049 | ||
Commercial mortgage backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed maturity securities, available for sale, amortized cost | [1] | 4,098,755 | 4,708,878 | |
Fixed maturity securities, available for sale, gross unrealized gains | 493 | 149,152 | ||
Fixed maturity securities, available for sale, gross unrealized losses | [2] | (411,770) | (17,719) | |
Fixed maturity securities, available for sale, allowance for credit losses | 0 | 0 | ||
Fixed maturity securities, available for sale | 3,687,478 | 4,840,311 | ||
Other asset backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Fixed maturity securities, available for sale, amortized cost | [1] | 6,289,923 | 5,226,660 | |
Fixed maturity securities, available for sale, gross unrealized gains | 14,068 | 95,304 | ||
Fixed maturity securities, available for sale, gross unrealized losses | [2] | (395,289) | (50,107) | |
Fixed maturity securities, available for sale, allowance for credit losses | 0 | 0 | ||
Fixed maturity securities, available for sale | 5,908,702 | 5,271,857 | ||
Fixed Maturity Securities, Available For Sale | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Accrued interest receivable | $ 425,400 | $ 400,700 | ||
[1]Amortized cost excludes accrued interest receivable of $425.4 million and $400.7 million as of December 31, 2022 and 2021, respectively.[2]Gross unrealized losses are net of allowance for credit losses. |
Investments (Fixed Maturity Sec
Investments (Fixed Maturity Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |||
Fixed maturity securities, available for sale, due in one year or less, amortized cost | $ 1,184,147 | ||
Fixed maturity securities, available for sale, due after one year through five years, amortized cost | 5,641,072 | ||
Fixed maturity securities, available for sale, due after five years through ten years, amortized cost | 6,254,569 | ||
Fixed maturity securities, available for sale, due after ten years through twenty years, amortized cost | 9,853,998 | ||
Fixed maturity securities, available for sale, due after twenty years, amortized cost | 10,051,313 | ||
Fixed maturity securities, available for sale, securities with a single maturity date, amortized cost | 32,985,099 | ||
Fixed maturity securities, available for sale, amortized cost | [1] | 44,866,019 | $ 46,999,183 |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||
Fixed maturity securities, available for sale, due in one year or less, fair value | 1,180,124 | ||
Fixed maturity securities, available for sale, due after one year through five years, fair value | 5,406,059 | ||
Fixed maturity securities, available for sale, due after five years through ten years, fair value | 5,672,730 | ||
Fixed maturity securities, available for sale, due after ten years through twenty years, fair value | 8,817,815 | ||
Fixed maturity securities, available for sale, due after twenty years, fair value | 7,754,098 | ||
Fixed maturity securities, available for sale, securities with a single maturity date, fair value | 28,830,826 | ||
Fixed maturity securities, available for sale | 39,804,617 | 51,305,943 | |
Residential mortgage backed securities | |||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |||
Fixed maturity securities, available for sale, securities without a single maturity date, amortized cost | 1,492,242 | ||
Fixed maturity securities, available for sale, amortized cost | [1] | 1,492,242 | 1,056,778 |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||
Fixed maturity securities, available for sale, securities without a single maturity date, fair value | 1,377,611 | ||
Fixed maturity securities, available for sale | 1,377,611 | 1,125,049 | |
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 | 4,098,755 | ||
Fixed maturity securities, available for sale, amortized cost | [1] | 4,098,755 | 4,708,878 |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||
Fixed maturity securities, available for sale, securities without a single maturity date, fair value | 3,687,478 | ||
Fixed maturity securities, available for sale | 3,687,478 | 4,840,311 | |
Other asset backed securities | |||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |||
Fixed maturity securities, available for sale, securities without a single maturity date, amortized cost | 6,289,923 | ||
Fixed maturity securities, available for sale, amortized cost | [1] | 6,289,923 | 5,226,660 |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||
Fixed maturity securities, available for sale, securities without a single maturity date, fair value | 5,908,702 | ||
Fixed maturity securities, available for sale | $ 5,908,702 | $ 5,271,857 | |
[1]Amortized cost excludes accrued interest receivable of $425.4 million and $400.7 million as of December 31, 2022 and 2021, respectively. |
Investments (Net Unrealized Gai
Investments (Net Unrealized Gains (Losses) on Available for Sale Fixed Maturity Securities Reported as a Separate Component of Stockholders' Equity) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investments [Abstract] | ||
Net unrealized gains (losses) on available for sale fixed maturity securities | $ (5,065,422) | $ 4,309,606 |
Deferred income tax valuation allowance reversal | 22,534 | 22,534 |
Deferred income tax expense | 1,063,441 | (905,047) |
Net unrealized gains (losses) reported as accumulated other comprehensive income (loss) | $ (3,979,447) | $ 3,427,093 |
Investments (Credit Quality of
Investments (Credit Quality of Fixed Maturity Security Portfolio by NAIC Designation) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Investment Holdings [Line Items] | |||
Fixed maturity securities, available for sale, amortized cost | [1] | $ 44,866,019 | $ 46,999,183 |
Fixed maturity securities, available for sale | 39,804,617 | 51,305,943 | |
NAIC, Class 1 Designation | |||
Investment Holdings [Line Items] | |||
Fixed maturity securities, available for sale, amortized cost | 27,061,903 | 26,157,531 | |
Fixed maturity securities, available for sale | 24,211,086 | 28,785,839 | |
NAIC, Class 2 Designation | |||
Investment Holdings [Line Items] | |||
Fixed maturity securities, available for sale, amortized cost | 17,023,157 | 19,758,594 | |
Fixed maturity securities, available for sale | 14,944,131 | 21,396,020 | |
NAIC, Class 3 Designation | |||
Investment Holdings [Line Items] | |||
Fixed maturity securities, available for sale, amortized cost | 595,193 | 909,311 | |
Fixed maturity securities, available for sale | 510,392 | 941,210 | |
NAIC, Class 4 Designation | |||
Investment Holdings [Line Items] | |||
Fixed maturity securities, available for sale, amortized cost | 109,409 | 133,070 | |
Fixed maturity securities, available for sale | 91,495 | 147,160 | |
NAIC, Class 5 Designation | |||
Investment Holdings [Line Items] | |||
Fixed maturity securities, available for sale, amortized cost | 61,721 | 16,496 | |
Fixed maturity securities, available for sale | 36,738 | 15,357 | |
NAIC, Class 6 Designation | |||
Investment Holdings [Line Items] | |||
Fixed maturity securities, available for sale, amortized cost | 14,636 | 24,181 | |
Fixed maturity securities, available for sale | $ 10,775 | $ 20,357 | |
[1]Amortized cost excludes accrued interest receivable of $425.4 million and $400.7 million as of December 31, 2022 and 2021, respectively. |
Investments (Gross Unrealized L
Investments (Gross Unrealized Losses on Investments, By Category and Length of Time) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Available for sale, continuous unrealized loss position, less than 12 months, fair value | $ 28,557,796 | $ 5,735,135 | ||
Available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | [1] | (4,403,539) | (51,758) | |
Available for sale, continuous unrealized loss position, 12 months or more, fair value | 4,221,422 | 2,072,853 | ||
Available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | [1] | (880,308) | (63,458) | |
Available for sale, continuous unrealized loss position, total, fair value | 32,779,218 | 7,807,988 | ||
Available for sale, continuous unrealized loss position, total, unrealized losses | [1] | (5,283,847) | (115,216) | |
Fixed maturity securities, available for sale, allowance for credit losses | 3,347 | 2,846 | $ 64,771 | |
U.S. Government and agencies | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available for sale, continuous unrealized loss position, less than 12 months, fair value | 160,201 | 760,977 | ||
Available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | [1] | (4,512) | (124) | |
Available for sale, continuous unrealized loss position, 12 months or more, fair value | 908 | 0 | ||
Available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | [1] | (125) | 0 | |
Available for sale, continuous unrealized loss position, total, fair value | 161,109 | 760,977 | ||
Available for sale, continuous unrealized loss position, total, unrealized losses | [1] | (4,637) | (124) | |
Fixed maturity securities, available for sale, allowance for credit losses | 0 | 0 | ||
States, municipalities and territories | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available for sale, continuous unrealized loss position, less than 12 months, fair value | 2,595,122 | 168,942 | ||
Available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | [1] | (537,313) | (2,468) | |
Available for sale, continuous unrealized loss position, 12 months or more, fair value | 95,184 | 15,711 | ||
Available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | [1] | (37,521) | (3,350) | |
Available for sale, continuous unrealized loss position, total, fair value | 2,690,306 | 184,653 | ||
Available for sale, continuous unrealized loss position, total, unrealized losses | [1] | (574,834) | (5,818) | |
Fixed maturity securities, available for sale, allowance for credit losses | 0 | 2,776 | 2,844 | |
Foreign corporate securities and foreign governments | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available for sale, continuous unrealized loss position, less than 12 months, fair value | 522,826 | 42,861 | ||
Available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | [1] | (76,957) | (843) | |
Available for sale, continuous unrealized loss position, 12 months or more, fair value | 21,816 | 0 | ||
Available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | [1] | (6,622) | 0 | |
Available for sale, continuous unrealized loss position, total, fair value | 544,642 | 42,861 | ||
Available for sale, continuous unrealized loss position, total, unrealized losses | [1] | (83,579) | (843) | |
Fixed maturity securities, available for sale, allowance for credit losses | 0 | 0 | ||
Corporate securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available for sale, continuous unrealized loss position, less than 12 months, fair value | 18,784,181 | 2,375,603 | ||
Available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | [1] | (3,218,323) | (30,070) | |
Available for sale, continuous unrealized loss position, 12 months or more, fair value | 1,411,177 | 116,819 | ||
Available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | [1] | (469,047) | (8,372) | |
Available for sale, continuous unrealized loss position, total, fair value | 20,195,358 | 2,492,422 | ||
Available for sale, continuous unrealized loss position, total, unrealized losses | [1] | (3,687,370) | (38,442) | |
Fixed maturity securities, available for sale, allowance for credit losses | 3,214 | 0 | 60,193 | |
Residential mortgage backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available for sale, continuous unrealized loss position, less than 12 months, fair value | 992,783 | 250,964 | ||
Available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | [1] | (101,100) | (1,408) | |
Available for sale, continuous unrealized loss position, 12 months or more, fair value | 116,388 | 26,917 | ||
Available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | [1] | (25,268) | (755) | |
Available for sale, continuous unrealized loss position, total, fair value | 1,109,171 | 277,881 | ||
Available for sale, continuous unrealized loss position, total, unrealized losses | [1] | (126,368) | (2,163) | |
Fixed maturity securities, available for sale, allowance for credit losses | 133 | 70 | $ 1,734 | |
Commercial mortgage backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available for sale, continuous unrealized loss position, less than 12 months, fair value | 2,941,293 | 784,464 | ||
Available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | [1] | (302,513) | (5,500) | |
Available for sale, continuous unrealized loss position, 12 months or more, fair value | 651,923 | 142,224 | ||
Available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | [1] | (109,257) | (12,219) | |
Available for sale, continuous unrealized loss position, total, fair value | 3,593,216 | 926,688 | ||
Available for sale, continuous unrealized loss position, total, unrealized losses | [1] | (411,770) | (17,719) | |
Fixed maturity securities, available for sale, allowance for credit losses | 0 | 0 | ||
Other asset backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available for sale, continuous unrealized loss position, less than 12 months, fair value | 2,561,390 | 1,351,324 | ||
Available for sale, continuous unrealized loss position, less than 12 months, unrealized losses | [1] | (162,821) | (11,345) | |
Available for sale, continuous unrealized loss position, 12 months or more, fair value | 1,924,026 | 1,771,182 | ||
Available for sale, continuous unrealized loss position, 12 months or more, unrealized losses | [1] | (232,468) | (38,762) | |
Available for sale, continuous unrealized loss position, total, fair value | 4,485,416 | 3,122,506 | ||
Available for sale, continuous unrealized loss position, total, unrealized losses | [1] | (395,289) | (50,107) | |
Fixed maturity securities, available for sale, allowance for credit losses | $ 0 | $ 0 | ||
[1]Unrealized losses have not been reduced to reflect the allowance for credit losses of $3.3 million and $2.8 million as of December 31, 2022 and 2021, respectively. |
Investments (Changes in Net Unr
Investments (Changes in Net Unrealized Gains/Losses on Investments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments [Abstract] | |||
Fixed maturity securities available for sale carried at fair value | $ (9,375,028) | $ (987,434) | $ 1,955,496 |
Adjustment for effect on other balance sheet accounts: | |||
Deferred policy acquisition costs, deferred sales inducements and policy benefit reserves | 0 | 0 | (880,517) |
Deferred income tax asset/liability | 1,968,488 | 207,361 | (225,746) |
Total adjustment for effect on other balance sheet accounts | 1,968,488 | 207,361 | (1,106,263) |
Change in net unrealized gains/losses on investments carried at fair value | $ (7,406,540) | $ (780,073) | $ 849,233 |
Investments (Components of Net
Investments (Components of Net Investment Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net Investment Income [Line Items] | |||
Gross investment income, operating, net | $ 2,453,929 | $ 2,101,892 | $ 2,214,550 |
Less: investment expenses | (146,466) | (64,417) | (32,472) |
Net investment income | 2,307,463 | 2,037,475 | 2,182,078 |
Fixed Maturity Securities, Available For Sale | |||
Net Investment Income [Line Items] | |||
Gross investment income, operating, net | 1,849,915 | 1,772,675 | 2,035,762 |
Real estate investments | |||
Net Investment Income [Line Items] | |||
Gross investment income, operating, net | 40,243 | 14,138 | 0 |
Mortgage loans on real estate | |||
Net Investment Income [Line Items] | |||
Gross investment income, operating, net | 301,118 | 215,138 | 170,749 |
Cash and Cash Equivalents | |||
Net Investment Income [Line Items] | |||
Gross investment income, operating, net | 24,985 | 3,385 | 4,871 |
Limited partnerships and limited liability companies | |||
Net Investment Income [Line Items] | |||
Gross investment income, operating, net | 188,131 | 67,157 | (12,204) |
Other investments | |||
Net Investment Income [Line Items] | |||
Gross investment income, operating, net | $ 49,537 | $ 29,399 | $ 15,372 |
Investments (Net Realized Losse
Investments (Net Realized Losses on Investments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Gain (Loss) on Securities [Line Items] | |||
Decrease (increase) in allowance for credit losses | $ (15,126) | $ 7,005 | |
Recovery of specific allowance | 1,677 | 0 | |
Net realized losses on investments | (47,848) | (13,242) | $ (80,680) |
Fixed Maturity Securities, Available For Sale | |||
Gain (Loss) on Securities [Line Items] | |||
Gross realized gains | 139,819 | 10,167 | 305,170 |
Gross realized losses | (153,712) | (19,140) | (276,847) |
Net credit loss (provision) release | (15,536) | (6,241) | (94,560) |
Realized losses | (29,429) | (15,214) | (66,237) |
Mortgage loans on real estate | |||
Gain (Loss) on Securities [Line Items] | |||
Decrease (increase) in allowance for credit losses | (15,126) | 7,005 | (15,447) |
Recovery of specific allowance | 1,677 | 0 | 712 |
Gain (loss) on sale of mortgage loans | (4,970) | (5,033) | 292 |
Gain (loss) on mortgage loans | $ (18,419) | $ 1,972 | $ (14,443) |
Investments (Non-Income Produci
Investments (Non-Income Producing Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investment Holdings [Line Items] | ||
Non-income producing investments | $ 12,191 | $ 4,118 |
Fixed Maturity Securities, Available For Sale | ||
Investment Holdings [Line Items] | ||
Non-income producing investments | 10,708 | 4,118 |
Mortgage loans on real estate | ||
Investment Holdings [Line Items] | ||
Non-income producing investments | $ 1,483 | $ 0 |
Investments (Rollforward of All
Investments (Rollforward of Allowance for Credit Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 2,846 | $ 64,771 |
Additions for credit losses not previously recorded | 4,895 | 1,112 |
Change in allowance on securities with previous allowance | (3,966) | (482) |
Reduction for securities with credit losses due to intent to sell | 0 | (209) |
Reduction for securities sold during the period | (428) | (50,758) |
Write-offs charged against the allowance | 0 | (10,032) |
Recoveries of amounts previously written off | 0 | (1,556) |
Ending balance | 3,347 | 2,846 |
States, municipalities and territories | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 2,776 | 2,844 |
Additions for credit losses not previously recorded | 0 | 0 |
Change in allowance on securities with previous allowance | (2,776) | (68) |
Reduction for securities with credit losses due to intent to sell | 0 | |
Reduction for securities sold during the period | 0 | 0 |
Write-offs charged against the allowance | 0 | 0 |
Recoveries of amounts previously written off | 0 | 0 |
Ending balance | 0 | 2,776 |
Corporate securities | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 0 | 60,193 |
Additions for credit losses not previously recorded | 3,825 | 705 |
Change in allowance on securities with previous allowance | (611) | 443 |
Reduction for securities with credit losses due to intent to sell | 0 | (209) |
Reduction for securities sold during the period | 0 | (50,758) |
Write-offs charged against the allowance | 0 | (10,032) |
Recoveries of amounts previously written off | 0 | (342) |
Ending balance | 3,214 | 0 |
Residential mortgage backed securities | ||
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | 70 | 1,734 |
Additions for credit losses not previously recorded | 1,070 | 407 |
Change in allowance on securities with previous allowance | (579) | (857) |
Reduction for securities with credit losses due to intent to sell | 0 | 0 |
Reduction for securities sold during the period | (428) | 0 |
Write-offs charged against the allowance | 0 | 0 |
Recoveries of amounts previously written off | 0 | (1,214) |
Ending balance | $ 133 | $ 70 |
Mortgage Loans on Real Estate_2
Mortgage Loans on Real Estate (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) loans portfolio_segment | Dec. 31, 2021 USD ($) loans | Dec. 31, 2020 USD ($) | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Number of portfolio segments that make up financing receivables | portfolio_segment | 3 | ||
Commitments outstanding | $ 420,200 | ||
Real estate acquired through foreclosure | $ 0 | $ 0 | |
Non-accrual status, number of loans | loans | 59 | 13 | |
Interest income recognized on non-accrual loans | $ 670 | $ 36 | $ 0 |
Number of TDRs | loans | 0 | 0 | |
Mortgage loans on real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Accrued interest receivable | $ 58,200 | $ 37,000 | |
Minimum | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Number of days past due, nonperforming | 90 days | ||
Financing receivable, modifications, period of time of delaying principal and/or interest (months) | 3 months | ||
Commercial Mortgage Loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Principal outstanding | $ 3,560,903 | 3,633,131 | |
Accrued interest receivable written off | 0 | 0 | |
Residential Mortgage Loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Principal outstanding | 2,807,652 | 1,652,910 | |
Accrued interest receivable written off | 0 | 0 | |
Agricultural Mortgage Loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Principal outstanding | 567,630 | 408,135 | |
Accrued interest receivable written off | $ 0 | $ 0 |
Mortgage Loans on Real Estate_3
Mortgage Loans on Real Estate (Summary of Mortgage Loan Portfolio) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Valuation allowance | $ (36,972) | $ (24,024) | $ (31,029) |
Mortgage loans, carrying value | 6,949,027 | 5,687,998 | |
Commercial Mortgage Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Principal outstanding | 3,560,903 | 3,633,131 | |
Deferred fees and costs, net | (6,345) | (4,629) | |
Mortgage loans, amortized cost | 3,554,558 | 3,628,502 | |
Valuation allowance | (22,428) | (17,926) | (25,529) |
Mortgage loans, carrying value | 3,532,130 | 3,610,576 | |
Agricultural Mortgage Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Principal outstanding | 567,630 | 408,135 | |
Deferred fees and costs, net | (1,667) | (1,136) | |
Mortgage loans, amortized cost | 565,963 | 406,999 | |
Valuation allowance | (1,021) | (519) | (2,130) |
Mortgage loans, carrying value | 564,942 | 406,480 | |
Residential Mortgage Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Principal outstanding | 2,807,652 | 1,652,910 | |
Deferred fees and costs, net | 1,909 | 1,468 | |
Unamortized discounts and premiums, net | 55,917 | 22,143 | |
Mortgage loans, amortized cost | 2,865,478 | 1,676,521 | |
Valuation allowance | (13,523) | (5,579) | $ (3,370) |
Mortgage loans, carrying value | $ 2,851,955 | $ 1,670,942 |
Mortgage Loans on Real Estate_4
Mortgage Loans on Real Estate (Commercial Mortgage Loan Portfolio Summarized by Geographic Region and Property Type) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Commercial Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 3,560,903 | $ 3,633,131 |
Percent | 100% | 100% |
Commercial Mortgage Loans | East | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 502,659 | $ 614,406 |
Percent | 14.10% | 16.90% |
Commercial Mortgage Loans | Middle Atlantic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 280,993 | $ 293,494 |
Percent | 7.90% | 8.10% |
Commercial Mortgage Loans | Mountain | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 416,307 | $ 452,818 |
Percent | 11.70% | 12.50% |
Commercial Mortgage Loans | New England | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 73,631 | $ 60,172 |
Percent | 2.10% | 1.60% |
Commercial Mortgage Loans | Pacific | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 858,812 | $ 863,879 |
Percent | 24.10% | 23.80% |
Commercial Mortgage Loans | South Atlantic | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 934,007 | $ 785,679 |
Percent | 26.20% | 21.60% |
Commercial Mortgage Loans | West North Central | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 205,568 | $ 235,864 |
Percent | 5.80% | 6.50% |
Commercial Mortgage Loans | West South Central | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 288,926 | $ 326,819 |
Percent | 8.10% | 9% |
Commercial Mortgage Loans | Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 378,713 | $ 315,374 |
Percent | 10.60% | 8.70% |
Commercial Mortgage Loans | Medical Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 10,265 | $ 10,827 |
Percent | 0.30% | 0.30% |
Commercial Mortgage Loans | Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 896,351 | $ 1,016,101 |
Percent | 25.20% | 28% |
Commercial Mortgage Loans | Industrial/Warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 866,623 | $ 924,779 |
Percent | 24.30% | 25.40% |
Commercial Mortgage Loans | Apartment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 912,984 | $ 864,580 |
Percent | 25.60% | 23.80% |
Commercial Mortgage Loans | Hotel | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 285,271 | $ 283,500 |
Percent | 8% | 7.80% |
Commercial Mortgage Loans | Mixed Use/Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 210,696 | $ 217,970 |
Percent | 6% | 6% |
Agricultural Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 567,630 | $ 408,135 |
Residential Mortgage Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal outstanding | $ 2,807,652 | $ 1,652,910 |
Mortgage Loans on Real Estate_5
Mortgage Loans on Real Estate (Rollforward of Valuation Allowance on Mortgage Loan Portfolios) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning allowance balance | $ (24,024) | $ (31,029) |
Charge-offs | 501 | 0 |
Recoveries | 1,677 | 0 |
Change in provision for credit losses | (15,126) | 7,005 |
Ending allowance balance | (36,972) | (24,024) |
Commercial Mortgage Loans | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning allowance balance | (17,926) | (25,529) |
Charge-offs | 501 | 0 |
Recoveries | 1,677 | 0 |
Change in provision for credit losses | (6,680) | 7,603 |
Ending allowance balance | (22,428) | (17,926) |
Agricultural Mortgage Loans | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning allowance balance | (519) | (2,130) |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Change in provision for credit losses | (502) | 1,611 |
Ending allowance balance | (1,021) | (519) |
Residential Mortgage Loans | ||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||
Beginning allowance balance | (5,579) | (3,370) |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Change in provision for credit losses | (7,944) | (2,209) |
Ending allowance balance | $ (13,523) | $ (5,579) |
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 | Dec. 31, 2022 | Dec. 31, 2021 |
Commercial Mortgage Loans | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Amortized cost, originated in current fiscal year | $ 425,875 | $ 592,095 |
Average LTV, year one, originated in current fiscal year | 59% | 54% |
Amortized cost, originated in fiscal year before current fiscal year | $ 592,468 | $ 534,839 |
Average LTV, year two, originated in fiscal year before current fiscal year | 53% | 61% |
Amortized cost, originated two years before current fiscal year | $ 486,339 | $ 688,191 |
Average LTV, year three, originated two years before current fiscal year | 58% | 64% |
Amortized cost, originated three years before current fiscal year | $ 591,076 | $ 459,451 |
Average LTV, year four, originated three years before current fiscal year | 61% | 60% |
Amortized cost, originated four years before current fiscal year | $ 416,132 | $ 402,400 |
Average LTV, year five, originated four years before current fiscal year | 57% | 58% |
Amortized cost, originated more than five years before current fiscal year | $ 1,042,668 | $ 951,526 |
Average LTV, originated more than five years before current fiscal year | 47% | 47% |
Mortgage loans, amortized cost | $ 3,554,558 | $ 3,628,502 |
Total - Average LTV | 54% | 56% |
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, originated in current fiscal year | $ 249,328 | $ 260,623 |
Average LTV, year one, originated in current fiscal year | 63% | 64% |
Amortized cost, originated in fiscal year before current fiscal year | $ 257,746 | $ 454,828 |
Average LTV, year two, originated in fiscal year before current fiscal year | 61% | 60% |
Amortized cost, originated two years before current fiscal year | $ 421,391 | $ 464,059 |
Average LTV, year three, originated two years before current fiscal year | 57% | 61% |
Amortized cost, originated three years before current fiscal year | $ 429,596 | $ 344,170 |
Average LTV, year four, originated three years before current fiscal year | 58% | 58% |
Amortized cost, originated four years before current fiscal year | $ 325,117 | $ 246,854 |
Average LTV, year five, originated four years before current fiscal year | 53% | 52% |
Amortized cost, originated more than five years before current fiscal year | $ 813,319 | $ 758,494 |
Average LTV, originated more than five years before current fiscal year | 44% | 45% |
Mortgage loans, amortized cost | $ 2,496,497 | $ 2,529,028 |
Total - Average LTV | 53% | 55% |
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, originated in current fiscal year | $ 6,488 | $ 12,836 |
Average LTV, year one, originated in current fiscal year | 70% | 67% |
Amortized cost, originated in fiscal year before current fiscal year | $ 123,038 | $ 58,960 |
Average LTV, year two, originated in fiscal year before current fiscal year | 55% | 66% |
Amortized cost, originated two years before current fiscal year | $ 46,804 | $ 128,301 |
Average LTV, year three, originated two years before current fiscal year | 58% | 70% |
Amortized cost, originated three years before current fiscal year | $ 115,977 | $ 89,293 |
Average LTV, year four, originated three years before current fiscal year | 66% | 66% |
Amortized cost, originated four years before current fiscal year | $ 67,642 | $ 135,818 |
Average LTV, year five, originated four years before current fiscal year | 67% | 66% |
Amortized cost, originated more than five years before current fiscal year | $ 145,703 | $ 129,833 |
Average LTV, originated more than five years before current fiscal year | 60% | 57% |
Mortgage loans, amortized cost | $ 505,652 | $ 555,041 |
Total - Average LTV | 62% | 65% |
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, originated in current fiscal year | $ 170,059 | $ 318,636 |
Average LTV, year one, originated in current fiscal year | 52% | 45% |
Amortized cost, originated in fiscal year before current fiscal year | $ 211,684 | $ 17,762 |
Average LTV, year two, originated in fiscal year before current fiscal year | 43% | 82% |
Amortized cost, originated two years before current fiscal year | $ 18,144 | $ 69,684 |
Average LTV, year three, originated two years before current fiscal year | 79% | 72% |
Amortized cost, originated three years before current fiscal year | $ 39,396 | $ 11,937 |
Average LTV, year four, originated three years before current fiscal year | 73% | 75% |
Amortized cost, originated four years before current fiscal year | $ 10,348 | $ 6,343 |
Average LTV, year five, originated four years before current fiscal year | 76% | 60% |
Amortized cost, originated more than five years before current fiscal year | $ 58,021 | $ 42,125 |
Average LTV, originated more than five years before current fiscal year | 47% | 58% |
Mortgage loans, amortized cost | $ 507,652 | $ 466,487 |
Total - Average LTV | 51% | 53% |
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, originated in current fiscal year | $ 0 | $ 0 |
Average LTV, year one, originated in current fiscal year | 0% | 0% |
Amortized cost, originated in fiscal year before current fiscal year | $ 0 | $ 3,289 |
Average LTV, year two, originated in fiscal year before current fiscal year | 0% | 61% |
Amortized cost, originated two years before current fiscal year | $ 0 | $ 26,147 |
Average LTV, year three, originated two years before current fiscal year | 0% | 63% |
Amortized cost, originated three years before current fiscal year | $ 6,107 | $ 14,051 |
Average LTV, year four, originated three years before current fiscal year | 64% | 76% |
Amortized cost, originated four years before current fiscal year | $ 13,025 | $ 13,385 |
Average LTV, year five, originated four years before current fiscal year | 70% | 73% |
Amortized cost, originated more than five years before current fiscal year | $ 25,625 | $ 21,074 |
Average LTV, originated more than five years before current fiscal year | 65% | 54% |
Mortgage loans, amortized cost | $ 44,757 | $ 77,946 |
Total - Average LTV | 66% | 65% |
Agricultural Mortgage Loans | ||
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract] | ||
Amortized cost, originated in current fiscal year | $ 196,347 | $ 165,764 |
Average LTV, year one, originated in current fiscal year | 51% | 54% |
Amortized cost, originated in fiscal year before current fiscal year | $ 160,641 | $ 196,521 |
Average LTV, year two, originated in fiscal year before current fiscal year | 48% | 49% |
Amortized cost, originated two years before current fiscal year | $ 169,346 | $ 19,714 |
Average LTV, year three, originated two years before current fiscal year | 37% | 45% |
Amortized cost, originated three years before current fiscal year | $ 5,629 | $ 25,000 |
Average LTV, year four, originated three years before current fiscal year | 41% | 11% |
Amortized cost, originated four years before current fiscal year | $ 34,000 | $ 0 |
Average LTV, year five, originated four years before current fiscal year | 31% | 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 | $ 565,963 | $ 406,999 |
Total - Average LTV | 45% | 48% |
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, originated in current fiscal year | $ 85,367 | $ 62,548 |
Average LTV, year one, originated in current fiscal year | 47% | 54% |
Amortized cost, originated in fiscal year before current fiscal year | $ 84,186 | $ 80,919 |
Average LTV, year two, originated in fiscal year before current fiscal year | 46% | 56% |
Amortized cost, originated two years before current fiscal year | $ 97,143 | $ 11,645 |
Average LTV, year three, originated two years before current fiscal year | 41% | 49% |
Amortized cost, originated three years before current fiscal year | $ 0 | $ 25,000 |
Average LTV, year four, originated three years before current fiscal year | 0% | 11% |
Amortized cost, 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 | $ 266,696 | $ 180,112 |
Total - Average LTV | 45% | 49% |
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, originated in current fiscal year | $ 107,856 | $ 95,738 |
Average LTV, year one, originated in current fiscal year | 54% | 55% |
Amortized cost, originated in fiscal year before current fiscal year | $ 67,630 | $ 102,958 |
Average LTV, year two, originated in fiscal year before current fiscal year | 52% | 43% |
Amortized cost, originated two years before current fiscal year | $ 61,103 | $ 3,335 |
Average LTV, year three, originated two years before current fiscal year | 32% | 22% |
Amortized cost, originated three years before current fiscal year | $ 0 | $ 0 |
Average LTV, year four, originated three years before current fiscal year | 0% | 0% |
Amortized cost, 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 | $ 236,589 | $ 202,031 |
Total - Average LTV | 48% | 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, originated in current fiscal year | $ 3,124 | $ 7,478 |
Average LTV, year one, originated in current fiscal year | 56% | 44% |
Amortized cost, originated in fiscal year before current fiscal year | $ 8,825 | $ 4,092 |
Average LTV, year two, originated in fiscal year before current fiscal year | 38% | 36% |
Amortized cost, originated two years before current fiscal year | $ 3,125 | $ 4,734 |
Average LTV, year three, originated two years before current fiscal year | 25% | 50% |
Amortized cost, originated three years before current fiscal year | $ 0 | $ 0 |
Average LTV, year four, originated three years before current fiscal year | 0% | 0% |
Amortized cost, 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 | $ 15,074 | $ 16,304 |
Total - Average LTV | 39% | 44% |
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, originated in current fiscal year | $ 0 | $ 0 |
Average LTV, year one, originated in current fiscal year | 0% | 0% |
Amortized cost, originated in fiscal year before current fiscal year | $ 0 | $ 8,552 |
Average LTV, year two, originated in fiscal year before current fiscal year | 0% | 59% |
Amortized cost, originated two years before current fiscal year | $ 7,975 | $ 0 |
Average LTV, year three, originated two years before current fiscal year | 35% | 0% |
Amortized cost, originated three years before current fiscal year | $ 5,629 | $ 0 |
Average LTV, year four, originated three years before current fiscal year | 41% | 0% |
Amortized cost, originated four years before current fiscal year | $ 34,000 | $ 0 |
Average LTV, year five, originated four years before current fiscal year | 31% | 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 | $ 47,604 | $ 8,552 |
Total - Average LTV | 33% | 59% |
Mortgage Loans on Real Estate_7
Mortgage Loans on Real Estate (Aging of Financing Receivables) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Commercial Mortgage Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, originated in current fiscal year | $ 425,875 | $ 592,095 |
Amortized cost, originated in fiscal year before current fiscal year | 592,468 | 534,839 |
Amortized cost, originated two years before current fiscal year | 486,339 | 688,191 |
Amortized cost, originated three years before current fiscal year | 591,076 | 459,451 |
Amortized cost, originated four years before current fiscal year | 416,132 | 402,400 |
Amortized cost, originated more than five years before current fiscal year | 1,042,668 | 951,526 |
Mortgage loans, amortized cost | 3,554,558 | 3,628,502 |
Commercial Mortgage Loans | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, originated in current fiscal year | 425,875 | 592,095 |
Amortized cost, originated in fiscal year before current fiscal year | 592,468 | 534,839 |
Amortized cost, originated two years before current fiscal year | 486,339 | 688,191 |
Amortized cost, originated three years before current fiscal year | 591,076 | 459,451 |
Amortized cost, originated four years before current fiscal year | 416,132 | 402,400 |
Amortized cost, originated more than five years before current fiscal year | 1,042,668 | 951,526 |
Mortgage loans, amortized cost | 3,554,558 | 3,628,502 |
Commercial Mortgage Loans | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, originated in current fiscal year | 0 | 0 |
Amortized cost, originated in fiscal year before current fiscal year | 0 | 0 |
Amortized cost, originated two years before current fiscal year | 0 | 0 |
Amortized cost, originated three years before current fiscal year | 0 | 0 |
Amortized cost, 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, originated in current fiscal year | 0 | 0 |
Amortized cost, originated in fiscal year before current fiscal year | 0 | 0 |
Amortized cost, originated two years before current fiscal year | 0 | 0 |
Amortized cost, originated three years before current fiscal year | 0 | 0 |
Amortized cost, 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, originated in current fiscal year | 0 | 0 |
Amortized cost, originated in fiscal year before current fiscal year | 0 | 0 |
Amortized cost, originated two years before current fiscal year | 0 | 0 |
Amortized cost, originated three years before current fiscal year | 0 | 0 |
Amortized cost, 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, originated in current fiscal year | 196,347 | 165,764 |
Amortized cost, originated in fiscal year before current fiscal year | 160,641 | 196,521 |
Amortized cost, originated two years before current fiscal year | 169,346 | 19,714 |
Amortized cost, originated three years before current fiscal year | 5,629 | 25,000 |
Amortized cost, originated four years before current fiscal year | 34,000 | 0 |
Amortized cost, originated more than five years before current fiscal year | 0 | 0 |
Mortgage loans, amortized cost | 565,963 | 406,999 |
Agricultural Mortgage Loans | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, originated in current fiscal year | 196,347 | 165,764 |
Amortized cost, originated in fiscal year before current fiscal year | 160,641 | 196,521 |
Amortized cost, originated two years before current fiscal year | 166,211 | 19,714 |
Amortized cost, originated three years before current fiscal year | 5,629 | 25,000 |
Amortized cost, originated four years before current fiscal year | 34,000 | 0 |
Amortized cost, originated more than five years before current fiscal year | 0 | 0 |
Mortgage loans, amortized cost | 562,828 | 406,999 |
Agricultural Mortgage Loans | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, originated in current fiscal year | 0 | 0 |
Amortized cost, originated in fiscal year before current fiscal year | 0 | 0 |
Amortized cost, originated two years before current fiscal year | 0 | 0 |
Amortized cost, originated three years before current fiscal year | 0 | 0 |
Amortized cost, 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 | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, originated in current fiscal year | 0 | 0 |
Amortized cost, originated in fiscal year before current fiscal year | 0 | 0 |
Amortized cost, originated two years before current fiscal year | 0 | 0 |
Amortized cost, originated three years before current fiscal year | 0 | 0 |
Amortized cost, 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, originated in current fiscal year | 0 | 0 |
Amortized cost, originated in fiscal year before current fiscal year | 0 | 0 |
Amortized cost, originated two years before current fiscal year | 3,135 | 0 |
Amortized cost, originated three years before current fiscal year | 0 | 0 |
Amortized cost, 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 | 3,135 | 0 |
Residential Mortgage Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, originated in current fiscal year | 1,970,718 | 1,105,239 |
Amortized cost, originated in fiscal year before current fiscal year | 624,834 | 473,444 |
Amortized cost, originated two years before current fiscal year | 233,741 | 79,762 |
Amortized cost, originated three years before current fiscal year | 31,262 | 17,325 |
Amortized cost, originated four years before current fiscal year | 4,506 | 751 |
Amortized cost, originated more than five years before current fiscal year | 417 | 0 |
Mortgage loans, amortized cost | 2,865,478 | 1,676,521 |
Residential Mortgage Loans | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, originated in current fiscal year | 1,915,169 | 1,092,438 |
Amortized cost, originated in fiscal year before current fiscal year | 595,363 | 454,532 |
Amortized cost, originated two years before current fiscal year | 211,119 | 67,380 |
Amortized cost, originated three years before current fiscal year | 27,483 | 16,898 |
Amortized cost, originated four years before current fiscal year | 1,710 | 751 |
Amortized cost, originated more than five years before current fiscal year | 417 | 0 |
Mortgage loans, amortized cost | 2,751,261 | 1,631,999 |
Residential Mortgage Loans | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, originated in current fiscal year | 39,179 | 10,284 |
Amortized cost, originated in fiscal year before current fiscal year | 8,238 | 12,363 |
Amortized cost, originated two years before current fiscal year | 13,073 | 11,373 |
Amortized cost, originated three years before current fiscal year | 1,960 | 427 |
Amortized cost, 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 | 62,450 | 34,447 |
Residential Mortgage Loans | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, originated in current fiscal year | 6,668 | 1,838 |
Amortized cost, originated in fiscal year before current fiscal year | 7,165 | 1,090 |
Amortized cost, originated two years before current fiscal year | 3,034 | 102 |
Amortized cost, originated three years before current fiscal year | 57 | 0 |
Amortized cost, 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 | 16,924 | 3,030 |
Residential Mortgage Loans | Over 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, originated in current fiscal year | 9,702 | 679 |
Amortized cost, originated in fiscal year before current fiscal year | 14,068 | 5,459 |
Amortized cost, originated two years before current fiscal year | 6,515 | 907 |
Amortized cost, originated three years before current fiscal year | 1,762 | 0 |
Amortized cost, originated four years before current fiscal year | 2,796 | 0 |
Amortized cost, originated more than five years before current fiscal year | 0 | 0 |
Mortgage loans, amortized cost | $ 34,843 | $ 7,045 |
Variable Interest Entities (Con
Variable Interest Entities (Consolidated VIEs) (Details) $ in Thousands | Dec. 31, 2022 USD ($) variable_interest_entities | Dec. 31, 2021 USD ($) |
Variable Interest Entity [Line Items] | ||
Consolidated VIE assets | $ 73,183,599 | $ 80,543,622 |
Consolidated VIE liabilities | 70,812,849 | 72,804,905 |
Variable Interest Entity, Primary Beneficiary, Real Estate Investments | ||
Variable Interest Entity [Line Items] | ||
Consolidated VIE assets | 1,095,267 | 363,229 |
Consolidated VIE liabilities | $ 78,244 | 20,168 |
Variable Interest Entity, Primary Beneficiary, Real Estate Investments, Residential Real Estate | ||
Variable Interest Entity [Line Items] | ||
Variable interest entities, number of consolidated variable interest entities | variable_interest_entities | 4 | |
Variable Interest Entity, Primary Beneficiary, Real Estate Investments, Commercial Real Estate | ||
Variable Interest Entity [Line Items] | ||
Variable interest entities, number of consolidated variable interest entities | variable_interest_entities | 1 | |
Variable Interest Entity, Primary Beneficiary, Real Estate Limited Liability Companies | ||
Variable Interest Entity [Line Items] | ||
Variable interest entities, number of consolidated variable interest entities | variable_interest_entities | 2 | |
Consolidated VIE assets | $ 66,258 | 0 |
Consolidated VIE liabilities | $ 287 | 0 |
Variable Interest Entity, Primary Beneficiary, Limited Partnership Funds | ||
Variable Interest Entity [Line Items] | ||
Variable interest entities, number of consolidated variable interest entities | variable_interest_entities | 2 | |
Consolidated VIE assets | $ 620,741 | 168,711 |
Consolidated VIE liabilities | $ 113 | 0 |
Variable Interest Entity, Primary Beneficiary, Limited Partnership Funds, Infrastructure Credit Assets | ||
Variable Interest Entity [Line Items] | ||
Variable interest entities, number of consolidated variable interest entities | variable_interest_entities | 1 | |
Variable Interest Entities | ||
Variable Interest Entity [Line Items] | ||
Consolidated VIE assets | $ 1,782,266 | 531,940 |
Consolidated VIE liabilities | $ 78,644 | $ 20,168 |
Variable Interest Entities (Unc
Variable Interest Entities (Unconsolidated VIEs) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Total assets | $ 73,183,599 | $ 80,543,622 |
Variable Interest Entity, Not Primary Beneficiary | Fixed Maturity Securities, Available For Sale | ||
Variable Interest Entity [Line Items] | ||
Total assets | 1,178,110 | 459,681 |
VIE, not the primary beneficiary, maximum loss exposure, amount | 1,178,110 | 459,681 |
Variable Interest Entity, Not Primary Beneficiary | Other investments | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | 345,000 |
VIE, not the primary beneficiary, maximum loss exposure, amount | $ 0 | $ 345,000 |
Derivative Instruments (Notiona
Derivative Instruments (Notional and Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Fair Value | $ 431,727 | $ 1,277,480 |
Derivatives designated as hedging instruments | Fair Value Hedging | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 408,369 | 0 |
Fair Value | 32,769 | 0 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 38,929,554 | 40,093,373 |
Fair Value | 398,958 | 1,277,480 |
Derivative liabilities | 4,378,981 | 7,962,599 |
Derivatives not designated as hedging instruments | Call options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 38,927,534 | 40,091,353 |
Fair Value | 397,789 | 1,276,574 |
Derivatives not designated as hedging instruments | Warrants | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,020 | 2,020 |
Fair Value | 1,169 | 906 |
Derivatives not designated as hedging instruments | Fixed index annuities - embedded derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | 4,820,845 | 7,964,961 |
Derivatives not designated as hedging instruments | Reinsurance related embedded derivative | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ (441,864) | $ (2,362) |
Derivative Instruments (Carryin
Derivative Instruments (Carrying Amount and Cumulative Fair Value Hedging Adjustments) (Details) - Fixed Maturity Securities, Available For Sale - Fair Value Hedging - Derivatives designated as hedging instruments - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Current hedging relationships, amortized cost of hedged item | $ 389,060 | $ 0 |
Current hedging relationships, cumulative amount of fair value basis adjustment gain (loss) | (39,128) | 0 |
Discontinued hedging relationships, amortized cost of hedged item | 1,594,736 | 0 |
Discontinued hedging relationships, cumulative amount of fair value basis adjustment gain (loss) | $ (94,681) | $ 0 |
Derivative Instruments (Gains (
Derivative Instruments (Gains (Losses) Related to Derivatives and Hedged Items) (Details) - Interest rate swaps - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivatives designated as hedging instruments | Fair Value Hedging | |||
Derivative [Line Items] | |||
Derivative | $ 215,587 | $ 0 | $ 0 |
Hedged Item | (249,168) | 0 | 0 |
Net | (33,581) | 0 | 0 |
Derivatives not designated as hedging instruments | |||
Derivative [Line Items] | |||
Amount Excluded: Recognized in Income Immediately | $ 13,957 | $ 0 | $ 0 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | ||
Derivative collateral | $ 400 | $ 1,300 |
Credit risk, maximum exposure | $ 3.3 | $ 8.5 |
Call options | ||
Derivative [Line Items] | ||
Derivative, term of contract | 1 year |
Derivative Instruments (Change
Derivative Instruments (Change in Fair Value of Derivatives Not Designated as Hedging) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value of embedded derivatives | $ (2,352,598) | $ (358,302) | $ (1,286,787) |
Derivatives not designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value of derivatives | (1,104,547) | 1,348,735 | 34,666 |
Change in fair value of embedded derivatives | (2,352,598) | (358,302) | (1,286,787) |
Derivatives not designated as hedging instruments | Call options | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value of derivatives | (1,118,768) | 1,347,925 | 34,604 |
Derivatives not designated as hedging instruments | Warrants | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value of derivatives | 264 | 810 | 0 |
Derivatives not designated as hedging instruments | Interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value of derivatives | 13,957 | 0 | 0 |
Derivatives not designated as hedging instruments | Interest rate caps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value of derivatives | 0 | 0 | 62 |
Derivatives not designated as hedging instruments | Fixed index annuities - embedded derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value of embedded derivatives | (1,913,096) | (355,940) | (1,286,787) |
Derivatives not designated as hedging instruments | Reinsurance related embedded derivative | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value of embedded derivatives | $ (439,502) | $ (2,362) | $ 0 |
Derivative Instruments (Schedul
Derivative Instruments (Schedule of Call Options and Interest Rate Swaps by Counterparty) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Fair Value | $ 431,727 | $ 1,277,480 |
Call Options And Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional Amount | 39,335,903 | 40,091,353 |
Fair Value | 430,558 | 1,276,574 |
Bank of America | Call Options And Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional Amount | 3,574,125 | 3,556,256 |
Fair Value | 26,080 | 99,229 |
Barclays | Call Options And Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional Amount | 3,686,896 | 4,213,658 |
Fair Value | 39,657 | 157,865 |
Canadian Imperial Bank of Commerce | Call Options And Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional Amount | 2,707,734 | 3,956,329 |
Fair Value | 34,218 | 141,540 |
Citibank, N.A. | Call Options And Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional Amount | 3,748,162 | 3,190,833 |
Fair Value | 29,873 | 115,860 |
Credit Suisse | Call Options And Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional Amount | 2,086,470 | 3,716,868 |
Fair Value | 20,691 | 113,295 |
J.P. Morgan | Call Options And Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional Amount | 6,501,103 | 4,482,832 |
Fair Value | 69,006 | 105,899 |
Morgan Stanley | Call Options And Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional Amount | 2,957,389 | 2,223,743 |
Fair Value | 38,470 | 47,950 |
Royal Bank of Canada | Call Options And Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional Amount | 4,378,132 | 3,567,972 |
Fair Value | 58,026 | 100,472 |
Societe Generale | Call Options And Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional Amount | 2,099,081 | 2,548,072 |
Fair Value | 17,157 | 86,494 |
Truist | Call Options And Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional Amount | 1,960,787 | 2,547,808 |
Fair Value | 32,885 | 94,924 |
Wells Fargo | Call Options And Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional Amount | 5,436,824 | 5,820,381 |
Fair Value | 61,840 | 206,403 |
Exchange traded | Call Options And Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional Amount | 199,200 | 266,601 |
Fair Value | $ 2,655 | $ 6,643 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs and Deferred Sales Inducements - Schedule of Deferred Policy Acquisition Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Policy Acquisition Costs | |||
Pre-adoption 1/1/2021 balance | $ 3,062,204 | $ 3,408,505 | |
Write-off related to in-force ceded reinsurance | (203,626) | (349,614) | |
Capitalizations | 199,076 | 309,683 | |
Amortization expense | (284,011) | (306,370) | $ (649,554) |
Post adoption 1/1/2021 balance | 2,773,643 | 3,062,204 | 3,408,505 |
Fixed Index Annuities | |||
Deferred Policy Acquisition Costs | |||
Pre-adoption 1/1/2021 balance | 2,906,684 | 3,286,059 | |
Write-off related to in-force ceded reinsurance | (196,417) | (349,614) | |
Capitalizations | 193,989 | 250,070 | |
Amortization expense | (254,934) | (279,831) | |
Post adoption 1/1/2021 balance | 2,649,322 | 2,906,684 | 3,286,059 |
Fixed Rate Annuities | |||
Deferred Policy Acquisition Costs | |||
Pre-adoption 1/1/2021 balance | 151,322 | 119,805 | |
Write-off related to in-force ceded reinsurance | (7,209) | 0 | |
Capitalizations | 4,424 | 57,344 | |
Amortization expense | (28,432) | (25,827) | |
Post adoption 1/1/2021 balance | 120,105 | 151,322 | 119,805 |
Single Premium Immediate Annuities | |||
Deferred Policy Acquisition Costs | |||
Pre-adoption 1/1/2021 balance | 4,198 | 2,641 | |
Write-off related to in-force ceded reinsurance | 0 | 0 | |
Capitalizations | 663 | 2,269 | |
Amortization expense | (645) | (712) | |
Post adoption 1/1/2021 balance | $ 4,216 | $ 4,198 | $ 2,641 |
Deferred Policy Acquisition C_4
Deferred Policy Acquisition Costs and Deferred Sales Inducements - Schedule of Deferred Sales Inducements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Sales Inducements | |||
Pre-adoption 1/1/2021 balance | $ 2,119,962 | $ 2,216,685 | |
Deferral of sales inducements | 107,691 | 95,161 | $ 93,610 |
Amortization expense | (181,970) | (191,884) | (438,164) |
Post adoption 1/1/2021 balance | 2,045,683 | 2,119,962 | 2,216,685 |
Fixed Index Annuities | |||
Deferred Sales Inducements | |||
Pre-adoption 1/1/2021 balance | 2,088,591 | 2,180,980 | |
Deferral of sales inducements | 107,684 | 95,104 | |
Amortization expense | (178,315) | (187,493) | |
Post adoption 1/1/2021 balance | 2,017,960 | 2,088,591 | 2,180,980 |
Fixed Rate Annuities | |||
Deferred Sales Inducements | |||
Pre-adoption 1/1/2021 balance | 31,371 | 35,705 | |
Deferral of sales inducements | 7 | 57 | |
Amortization expense | (3,655) | (4,391) | |
Post adoption 1/1/2021 balance | $ 27,723 | $ 31,371 | $ 35,705 |
Policyholder Liabilities - Sche
Policyholder Liabilities - Schedule of Present Value of Expected Future Policy Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | |||
Beginning balance, liability for future policy benefit | $ 402,305 | $ 384,510 | |
Beginning balance at original discount rate | 352,708 | 315,793 | |
Effect of changes in cash flow assumptions | 1,277 | $ 7,892 | |
Effect of actual variances from expected experience | (1,941) | (1,908) | |
Adjusted beginning of year balance | 352,044 | $ 321,777 | |
Issuances | 16,072 | 55,229 | |
Interest accrual | 14,664 | 14,819 | |
Benefit payments | 0 | 0 | |
Net premiums collected | 0 | 0 | |
Derecognition (lapses) | (40,327) | (39,117) | |
Ending balance at original discount rate | 342,453 | 352,708 | |
Effect of changes in discount rate assumptions | (23,776) | 49,597 | |
Ending balance, liability for future policy benefit | $ 318,677 | $ 402,305 |
Policyholder Liabilities - Summ
Policyholder Liabilities - Summary of Liability For Future Policy Benefits Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Liability for Future Policy Benefit, Activity [Line Items] | ||
Policy benefit reserves | $ 318,677 | $ 402,305 |
Deferred profit liability | 19,223 | 18,716 |
Liability for future policy benefits and unpaid claims and claims adjustment expense, before reinsurance recoverable | 337,900 | 421,021 |
Less: Reinsurance recoverable | (1,259) | (1,283) |
Net liability for future policy benefits, after reinsurance recoverable | 336,641 | 419,738 |
Gross Premiums or Assessments | 16,994 | 53,778 |
Interest Expense | $ 14,613 | $ 14,777 |
SPIA With Life Contingency | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Weighted-average liability duration of the liability for future policy benefits (years) | 6 years 9 months 10 days | 7 years 6 months 25 days |
Expected future benefit payments | $ 467,627 | $ 485,411 |
Expected future gross premiums | $ 0 | $ 0 |
Policyholder Liabilities - Reco
Policyholder Liabilities - Reconciliation of the Net Liability For Future Policy Benefits to the Liability For Future Policy Benefits (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Insurance [Abstract] | ||
Interest accretion rate | 4.25% | 4.29% |
Current discount rate | 5.37% | 1.74% |
Policyholder Liabilities - Sc_2
Policyholder Liabilities - Schedule of Changes in the Liability for Market Risk Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Market Risk Benefit Liability | |||
Beginning balance, market risk benefit | $ 2,635,789 | ||
Ending balance, market risk benefit | 2,225,621 | $ 2,635,789 | |
Fixed Rate Annuities | |||
Market Risk Benefit Liability | |||
Beginning balance, market risk benefit | 78,411 | 73,904 | |
Balance, beginning of year, before effect of changes in the instrument-specific credit risk | 77,731 | 74,371 | |
Issuances | 376 | 23 | |
Interest accrual | 1,349 | 986 | |
Attributed fees collected | 1,270 | 1,326 | |
Benefits payments | 0 | 0 | |
Effect of changes in interest rates | (19,421) | (4,091) | |
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 | 602 | 369 | |
Effect of changes in other future expected assumptions | (17,552) | 4,747 | |
Balance, end of year, before effect of changes in the instrument-specific credit | 44,355 | 77,731 | |
Effect of changes in the instrument-specific credit risk | (6,492) | 680 | |
Ending balance, market risk benefit | 37,863 | 78,411 | |
Reinsured MRB, end of period | 10,656 | 0 | $ 0 |
Balance, end of period, net of reinsurance | 27,207 | 78,411 | |
Net amount at risk | $ 258,826 | $ 239,995 | |
Weighted average attained age of contract holders (years) | 69 years | 69 years | |
Fixed Index Annuities | |||
Market Risk Benefit Liability | |||
Beginning balance, market risk benefit | $ 2,557,378 | $ 2,294,129 | |
Balance, beginning of year, before effect of changes in the instrument-specific credit risk | 2,310,437 | 2,064,555 | |
Issuances | 59,452 | 22,836 | |
Interest accrual | 72,551 | 39,614 | |
Attributed fees collected | 125,168 | 122,756 | |
Benefits payments | 0 | 0 | |
Effect of changes in interest rates | (952,265) | (206,055) | |
Effect of changes in equity markets | 186,618 | (151,145) | |
Effect of changes in equity index volatility | 241,563 | (57,940) | |
Actual policyholder behavior different from expected behavior | 0 | 0 | |
Effect of changes in future expected policyholder behavior | 46,567 | 142,713 | |
Effect of changes in other future expected assumptions | 363,078 | 333,103 | |
Balance, end of year, before effect of changes in the instrument-specific credit | 2,453,169 | 2,310,437 | |
Effect of changes in the instrument-specific credit risk | (265,411) | 246,941 | |
Ending balance, market risk benefit | 2,187,758 | 2,557,378 | |
Reinsured MRB, end of period | 593,959 | 156,931 | $ 90,022 |
Balance, end of period, net of reinsurance | 1,593,799 | 2,400,447 | |
Net amount at risk | $ 10,987,198 | $ 10,001,385 | |
Weighted average attained age of contract holders (years) | 71 years | 70 years |
Policyholder Liabilities - Sc_3
Policyholder Liabilities - Schedule of Reconciliation of Reinsurance Market Risk Benefits by Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Market Risk Benefit [Line Items] | |||
Asset | $ 229,871 | $ 526,373 | |
Liability | 2,455,492 | 3,162,162 | |
Net Liability | 2,225,621 | 2,635,789 | |
Fixed Index Annuities | |||
Market Risk Benefit [Line Items] | |||
Asset | 226,294 | 520,566 | |
Liability | 2,414,052 | 3,077,944 | |
Net Liability | 2,187,758 | 2,557,378 | $ 2,294,129 |
Fixed Rate Annuities | |||
Market Risk Benefit [Line Items] | |||
Asset | 3,577 | 5,807 | |
Liability | 41,440 | 84,218 | |
Net Liability | $ 37,863 | $ 78,411 | $ 73,904 |
Policyholder Liabilities - Sc_4
Policyholder Liabilities - Schedule of Reinsured Market Risk Benefits (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fixed Rate Annuities | |||
Market Risk Benefit Liability | |||
Balance, beginning of year | $ 0 | $ 0 | |
Inception of in-force ceded reinsurance | 0 | 10,091 | |
Issuances | 0 | 0 | |
Interest accrual | 0 | 104 | |
Attributed fees collected | 0 | 28 | |
Benefits payments | 0 | 0 | |
Effect of changes in interest rates | 0 | 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 | 0 | 180 | |
Effect of changes in other future expected assumptions | $ 0 | 0 | |
Balance, end of year | 10,656 | ||
Net amount at risk | $ 72,350 | $ 0 | |
Weighted average attained age of contract holders (years) | 0 years | 70 years | |
Fixed Index Annuities | |||
Market Risk Benefit Liability | |||
Balance, beginning of year | $ 156,931 | $ 156,931 | |
Inception of in-force ceded reinsurance | 100,327 | 334,835 | |
Issuances | 915 | 36,036 | |
Interest accrual | 414 | 7,598 | |
Attributed fees collected | 9,904 | 23,745 | |
Benefits payments | 0 | 0 | |
Effect of changes in interest rates | 1,601 | (171,948) | |
Effect of changes in equity markets | (6,148) | 43,799 | |
Effect of changes in equity index volatility | (9,074) | 34,278 | |
Actual policyholder behavior different from expected behavior | 0 | 0 | |
Effect of changes in future expected policyholder behavior | 16,878 | 12,598 | |
Effect of changes in other future expected assumptions | $ (47,908) | 116,087 | |
Balance, end of year | 593,959 | ||
Net amount at risk | $ 2,402,964 | $ 582,315 | |
Weighted average attained age of contract holders (years) | 69 years | 71 years |
Policyholder Liabilities - Re_2
Policyholder Liabilities - Reconciliation of Market Risk Benefits in an Asset Position and in a Liability Position (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Market Risk Benefit [Line Items] | ||
Asset | $ 640,681 | $ 250,046 |
Liability | 36,066 | 93,115 |
Net Asset | 604,615 | 156,931 |
Fixed Index Annuities | ||
Market Risk Benefit [Line Items] | ||
Asset | 629,611 | 250,046 |
Liability | 35,652 | 93,115 |
Net Asset | 593,959 | 156,931 |
Fixed Rate Annuities | ||
Market Risk Benefit [Line Items] | ||
Asset | 11,070 | 0 |
Liability | 414 | 0 |
Net Asset | $ 10,656 | $ 0 |
Policyholder Liabilities - Sign
Policyholder Liabilities - Significant Inputs and Assumptions (Details) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Market Risk Benefit [Line Items] | ||
Market risk benefit, after increase (decrease) from instrument-specific credit risk | $ 2,225,621 | $ 2,635,789 |
Ceded market risk benefits | $ 604,615 | $ 156,931 |
Minimum | Utilization | Discounted cash flow | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.0004 | 0 |
Minimum | Option budget | Discounted cash flow | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.0165 | 0.0155 |
Minimum | Risk-free interest rate | Discounted cash flow | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.0251 | 0.0053 |
Minimum | Nonperformance risk | Discounted cash flow | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.0006 | 0.0007 |
Maximum | Utilization | Discounted cash flow | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.7875 | 0.6000 |
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 | 0.0490 | 0.0205 |
Maximum | Nonperformance risk | Discounted cash flow | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.0327 | 0.0250 |
Weighted Average | Utilization | Discounted cash flow | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.0424 | 0.0325 |
Weighted Average | Option budget | Discounted cash flow | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.0231 | 0.0202 |
Weighted Average | Risk-free interest rate | Discounted cash flow | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.0331 | 0.0177 |
Weighted Average | Nonperformance risk | Discounted cash flow | ||
Market Risk Benefit [Line Items] | ||
Market risk benefit, measurement input | 0.0259 | 0.0149 |
Policyholder Liabilities - Chan
Policyholder Liabilities - Changes in Policyholder Account Balances (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Policyholder Account Balance [Roll Forward] | |||
Policyholder account balance, beginning balance | $ 62,614,822 | $ 62,614,822 | |
Policyholder account balance, ending balance | 58,781,836 | ||
Fixed Rate Annuities | |||
Policyholder Account Balance [Roll Forward] | |||
Policyholder account balance, beginning balance | 6,860,060 | 6,860,060 | |
Issuances | 2,523,061 | 159,570 | |
Premiums received | (3,649) | 4,811 | |
Policy charges | (4,706) | (6,587) | |
Surrenders and withdrawals | (883,440) | (574,590) | |
Benefit payments | (9,304) | (11,328) | |
Interest credited | 154,267 | 151,762 | |
Other | 294 | 5,879 | |
Policyholder account balance, ending balance | $ 6,589,577 | ||
Weighted-average crediting rate | 2.28% | 2.62% | |
Net amount at risk | $ 258,826 | $ 239,995 | |
Cash surrender value | 6,208,597 | $ 6,392,133 | |
Fixed Index Annuities | |||
Policyholder Account Balance [Roll Forward] | |||
Policyholder account balance, beginning balance | 55,003,305 | 55,003,305 | |
Issuances | 3,194,663 | 3,001,738 | |
Premiums received | 258,159 | 170,493 | |
Policy charges | (258,552) | (272,604) | |
Surrenders and withdrawals | (3,644,593) | (3,945,504) | |
Benefit payments | (621,700) | (727,847) | |
Interest credited | 2,464,347 | 599,259 | |
Other | $ (1,641) | (2,606) | |
Policyholder account balance, ending balance | $ 53,826,234 | ||
Weighted-average crediting rate | 1.11% | 4.64% | |
Net amount at risk | $ 10,987,198 | $ 10,001,385 | |
Cash surrender value | $ 49,551,657 | $ 50,177,630 |
Policyholder Liabilities - Re_3
Policyholder Liabilities - Reconciliation of Policyholders’ Account Balances to the Policyholders’ Account Balances’ Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Policyholder Account Balance [Roll Forward] | |||
Embedded derivative adjustment | $ (1,996,640) | $ 305,340 | |
Policy benefit reserves | 318,677 | 402,305 | |
Deferred profit liability | 19,223 | 18,716 | |
Other | 58,781,836 | 62,614,822 | |
Fixed Index Annuities | |||
Policyholder Account Balance [Roll Forward] | |||
Other | 53,826,234 | 55,003,305 | $ 53,612,622 |
Fixed Rate Annuities | |||
Policyholder Account Balance [Roll Forward] | |||
Other | 6,589,577 | 6,860,060 | $ 5,083,537 |
Other | |||
Policyholder Account Balance [Roll Forward] | |||
Other | $ 24,765 | $ 25,096 |
Policyholder Liabilities - Acco
Policyholder Liabilities - Account Balances by Guaranteed Minimum Interest Rates (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Policyholder Account Balance [Line Items] | |||
Other | $ 58,781,836 | $ 62,614,822 | |
Fixed Index Annuities | |||
Policyholder Account Balance [Line Items] | |||
Other | 53,826,234 | 55,003,305 | $ 53,612,622 |
Allocated to index strategies | 45,550,513 | 47,058,839 | |
Fixed Index Annuities | 0.00% - 0.50% | |||
Policyholder Account Balance [Line Items] | |||
Other | $ 1,184,711 | $ 723,020 | |
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] | |||
Other | $ 5,857,020 | $ 5,886,524 | |
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] | |||
Other | $ 60,977 | $ 66,886 | |
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] | |||
Other | $ 57 | $ 84 | |
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] | |||
Other | $ 233,272 | $ 256,140 | |
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] | |||
Other | $ 939,684 | $ 1,011,812 | |
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] | |||
Other | $ 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] | |||
Other | $ 3,546,181 | $ 3,222,773 | |
Fixed Index Annuities | At guaranteed minimum | 0.00% - 0.50% | |||
Policyholder Account Balance [Line Items] | |||
Other | 0 | 0 | |
Fixed Index Annuities | At guaranteed minimum | 0.50% - 1.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 2,421,795 | 2,020,896 | |
Fixed Index Annuities | At guaranteed minimum | 1.00% - 1.50% | |||
Policyholder Account Balance [Line Items] | |||
Other | 51,586 | 55,375 | |
Fixed Index Annuities | At guaranteed minimum | 1.50% - 2.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 57 | 0 | |
Fixed Index Annuities | At guaranteed minimum | 2.00% - 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Other | 133,059 | 134,690 | |
Fixed Index Annuities | At guaranteed minimum | 2.50% - 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 939,684 | 1,011,812 | |
Fixed Index Annuities | At guaranteed minimum | Greater than 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 0 | 0 | |
Fixed Index Annuities | 1 to 50 | |||
Policyholder Account Balance [Line Items] | |||
Other | 1,670,284 | 1,799,455 | |
Fixed Index Annuities | 1 to 50 | 0.00% - 0.50% | |||
Policyholder Account Balance [Line Items] | |||
Other | 462,356 | 284,190 | |
Fixed Index Annuities | 1 to 50 | 0.50% - 1.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 1,098,332 | 1,383,008 | |
Fixed Index Annuities | 1 to 50 | 1.00% - 1.50% | |||
Policyholder Account Balance [Line Items] | |||
Other | 9,391 | 10,874 | |
Fixed Index Annuities | 1 to 50 | 1.50% - 2.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 0 | 84 | |
Fixed Index Annuities | 1 to 50 | 2.00% - 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Other | 100,205 | 121,299 | |
Fixed Index Annuities | 1 to 50 | 2.50% - 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 0 | 0 | |
Fixed Index Annuities | 1 to 50 | Greater than 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 0 | 0 | |
Fixed Index Annuities | 51 to 150 | |||
Policyholder Account Balance [Line Items] | |||
Other | 2,666,426 | 2,728,765 | |
Fixed Index Annuities | 51 to 150 | 0.00% - 0.50% | |||
Policyholder Account Balance [Line Items] | |||
Other | 407,426 | 305,770 | |
Fixed Index Annuities | 51 to 150 | 0.50% - 1.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 2,258,992 | 2,422,207 | |
Fixed Index Annuities | 51 to 150 | 1.00% - 1.50% | |||
Policyholder Account Balance [Line Items] | |||
Other | 0 | 637 | |
Fixed Index Annuities | 51 to 150 | 1.50% - 2.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 0 | 0 | |
Fixed Index Annuities | 51 to 150 | 2.00% - 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Other | 8 | 151 | |
Fixed Index Annuities | 51 to 150 | 2.50% - 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 0 | 0 | |
Fixed Index Annuities | 51 to 150 | Greater than 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 0 | 0 | |
Fixed Index Annuities | Greater than 150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Other | 392,830 | 193,473 | |
Fixed Index Annuities | Greater than 150 basis points above | 0.00% - 0.50% | |||
Policyholder Account Balance [Line Items] | |||
Other | 314,929 | 133,060 | |
Fixed Index Annuities | Greater than 150 basis points above | 0.50% - 1.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 77,901 | 60,413 | |
Fixed Index Annuities | Greater than 150 basis points above | 1.00% - 1.50% | |||
Policyholder Account Balance [Line Items] | |||
Other | 0 | 0 | |
Fixed Index Annuities | Greater than 150 basis points above | 1.50% - 2.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 0 | 0 | |
Fixed Index Annuities | Greater than 150 basis points above | 2.00% - 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Other | 0 | 0 | |
Fixed Index Annuities | Greater than 150 basis points above | 2.50% - 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 0 | 0 | |
Fixed Index Annuities | Greater than 150 basis points above | Greater than 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 0 | 0 | |
Fixed Rate Annuities | |||
Policyholder Account Balance [Line Items] | |||
Other | 6,589,577 | 6,860,060 | $ 5,083,537 |
Fixed Rate Annuities | 0.00% - 0.50% | |||
Policyholder Account Balance [Line Items] | |||
Other | $ 61 | $ 108 | |
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] | |||
Other | $ 4,961,020 | $ 537,663 | |
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] | |||
Other | $ 454,959 | $ 491,715 | |
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] | |||
Other | $ 655,703 | $ 1,063,846 | |
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] | |||
Other | $ 21,909 | $ 3,254,587 | |
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] | |||
Other | $ 441,459 | $ 1,048,346 | |
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] | |||
Other | $ 54,466 | $ 463,795 | |
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] | |||
Other | $ 1,302,336 | $ 6,127,014 | |
Fixed Rate Annuities | At guaranteed minimum | 0.00% - 0.50% | |||
Policyholder Account Balance [Line Items] | |||
Other | 61 | 108 | |
Fixed Rate Annuities | At guaranteed minimum | 0.50% - 1.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 55,458 | 42,216 | |
Fixed Rate Annuities | At guaranteed minimum | 1.00% - 1.50% | |||
Policyholder Account Balance [Line Items] | |||
Other | 454,728 | 491,489 | |
Fixed Rate Annuities | At guaranteed minimum | 1.50% - 2.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 281,694 | 834,249 | |
Fixed Rate Annuities | At guaranteed minimum | 2.00% - 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Other | 21,887 | 3,254,565 | |
Fixed Rate Annuities | At guaranteed minimum | 2.50% - 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 434,042 | 1,040,592 | |
Fixed Rate Annuities | At guaranteed minimum | Greater than 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 54,466 | 463,795 | |
Fixed Rate Annuities | 1 to 50 | |||
Policyholder Account Balance [Line Items] | |||
Other | 307,960 | 227,094 | |
Fixed Rate Annuities | 1 to 50 | 0.00% - 0.50% | |||
Policyholder Account Balance [Line Items] | |||
Other | 0 | 0 | |
Fixed Rate Annuities | 1 to 50 | 0.50% - 1.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 203,523 | 119,438 | |
Fixed Rate Annuities | 1 to 50 | 1.00% - 1.50% | |||
Policyholder Account Balance [Line Items] | |||
Other | 231 | 226 | |
Fixed Rate Annuities | 1 to 50 | 1.50% - 2.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 96,767 | 99,654 | |
Fixed Rate Annuities | 1 to 50 | 2.00% - 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Other | 22 | 22 | |
Fixed Rate Annuities | 1 to 50 | 2.50% - 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 7,417 | 7,754 | |
Fixed Rate Annuities | 1 to 50 | Greater than 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 0 | 0 | |
Fixed Rate Annuities | 51 to 150 | |||
Policyholder Account Balance [Line Items] | |||
Other | 4,277,256 | 481,002 | |
Fixed Rate Annuities | 51 to 150 | 0.00% - 0.50% | |||
Policyholder Account Balance [Line Items] | |||
Other | 0 | 0 | |
Fixed Rate Annuities | 51 to 150 | 0.50% - 1.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 4,000,203 | 351,059 | |
Fixed Rate Annuities | 51 to 150 | 1.00% - 1.50% | |||
Policyholder Account Balance [Line Items] | |||
Other | 0 | 0 | |
Fixed Rate Annuities | 51 to 150 | 1.50% - 2.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 277,053 | 129,943 | |
Fixed Rate Annuities | 51 to 150 | 2.00% - 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Other | 0 | 0 | |
Fixed Rate Annuities | 51 to 150 | 2.50% - 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 0 | 0 | |
Fixed Rate Annuities | 51 to 150 | Greater than 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 0 | 0 | |
Fixed Rate Annuities | Greater than 150 basis points above | |||
Policyholder Account Balance [Line Items] | |||
Other | 702,025 | 24,950 | |
Fixed Rate Annuities | Greater than 150 basis points above | 0.00% - 0.50% | |||
Policyholder Account Balance [Line Items] | |||
Other | 0 | 0 | |
Fixed Rate Annuities | Greater than 150 basis points above | 0.50% - 1.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 701,836 | 24,950 | |
Fixed Rate Annuities | Greater than 150 basis points above | 1.00% - 1.50% | |||
Policyholder Account Balance [Line Items] | |||
Other | 0 | 0 | |
Fixed Rate Annuities | Greater than 150 basis points above | 1.50% - 2.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 189 | 0 | |
Fixed Rate Annuities | Greater than 150 basis points above | 2.00% - 2.50% | |||
Policyholder Account Balance [Line Items] | |||
Other | 0 | 0 | |
Fixed Rate Annuities | Greater than 150 basis points above | 2.50% - 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | 0 | 0 | |
Fixed Rate Annuities | Greater than 150 basis points above | Greater than 3.00% | |||
Policyholder Account Balance [Line Items] | |||
Other | $ 0 | $ 0 |
Reinsurance and Policy Provis_3
Reinsurance and Policy Provisions (EquiTrust Coinsurance Agreements) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) agreement | Dec. 31, 2021 USD ($) | |
Ceded Credit Risk [Line Items] | ||
Coinsurance deposits (net of allowance for credit losses of $8,737 as of 2022 and $2,264 as of 2021) | $ 13,254,956 | $ 8,988,891 |
EquiTrust Coinsurance Agreements, All Periods | ||
Ceded Credit Risk [Line Items] | ||
Number of coinsurance agreements | agreement | 2 | |
Coinsurance deposits (net of allowance for credit losses of $8,737 as of 2022 and $2,264 as of 2021) | $ 323,700 | 381,400 |
Reinsurance Recoverables, Gross | $ (800) | |
Reinsurance payable | $ 7,800 | |
EquiTrust Coinsurance Agreement, August 1, 2001 to December 31, 2001 | ||
Ceded Credit Risk [Line Items] | ||
Coinsurance on certain annuities, percentage | 70% | |
EquiTrust Coinsurance Agreement, January 1, 2002 to December 31, 2003 | ||
Ceded Credit Risk [Line Items] | ||
Coinsurance on certain annuities, percentage | 40% | |
EquiTrust Coinsurance Agreement, January 1, 2004 to July 31, 2004 | ||
Ceded Credit Risk [Line Items] | ||
Coinsurance on certain annuities, percentage | 20% |
Reinsurance and Policy Provis_4
Reinsurance and Policy Provisions (Athene Coinsurance Agreements) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) agreement | Dec. 31, 2021 USD ($) | |
Ceded Credit Risk [Line Items] | ||
Coinsurance deposits (net of allowance for credit losses of $8,737 as of 2022 and $2,264 as of 2021) | $ 13,254,956 | $ 8,988,891 |
Athene Coinsurance Agreements, All Periods | ||
Ceded Credit Risk [Line Items] | ||
Number of coinsurance agreements | agreement | 3 | |
Coinsurance deposits (net of allowance for credit losses of $8,737 as of 2022 and $2,264 as of 2021) | $ 3,100,000 | 3,700,000 |
Reinsurance payable | $ 16,900 | $ 74,800 |
Fixed Index Annuities | American Equity Life | Athene, 1st Coinsurance Agreement, January 1, 2009 to March 31, 2010 | ||
Ceded Credit Risk [Line Items] | ||
Coinsurance on certain annuities, percentage | 20% | |
Fixed Index Annuities | American Equity Life | Athene, 3rd Coinsurance Agreement, August 1, 2016 to December 31, 2016 | ||
Ceded Credit Risk [Line Items] | ||
Coinsurance on certain annuities, percentage | 80% | |
Fixed Index Annuities | Eagle Life | Athene, 3rd Coinsurance Agreement, January 1, 2014 to December 31, 2016 | ||
Ceded Credit Risk [Line Items] | ||
Coinsurance on certain annuities, percentage | 80% | |
Fixed Index Annuities | Eagle Life | Athene, 3rd Coinsurance Agreement, January 1, 2017 to December 31, 2018 | ||
Ceded Credit Risk [Line Items] | ||
Coinsurance on certain annuities, percentage | 50% | |
Fixed Index Annuities | Eagle Life | Athene, 3rd Coinsurance Agreement, January 1, 2019 to December 31, 2020 | ||
Ceded Credit Risk [Line Items] | ||
Coinsurance on certain annuities, percentage | 20% | |
Multi-Year Rate Guaranteed Annuities | American Equity Life | Athene, 2nd Coinsurance Agreement, July 1, 2009 to December 31, 2013 | ||
Ceded Credit Risk [Line Items] | ||
Coinsurance on certain annuities, percentage | 80% | |
Multi-Year Rate Guaranteed Annuities | American Equity Life | Athene, 3rd Coinsurance Agreement, January 1, 2014 to December 31, 2020 | ||
Ceded Credit Risk [Line Items] | ||
Coinsurance on certain annuities, percentage | 80% | |
Multi-Year Rate Guaranteed Annuities | Eagle Life | Athene, 2nd Coinsurance Agreement, November 20, 2013 to December 31, 2013 | ||
Ceded Credit Risk [Line Items] | ||
Coinsurance on certain annuities, percentage | 80% | |
Multi-Year Rate Guaranteed Annuities | Eagle Life | Athene, 3rd Coinsurance Agreement, January 1, 2014 to December 31, 2020 | ||
Ceded Credit Risk [Line Items] | ||
Coinsurance on certain annuities, percentage | 80% |
Reinsurance and Policy Provis_5
Reinsurance and Policy Provisions (North End Re) (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2022 USD ($) Basis_Points | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) Basis_Points yearOfAgreement | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jan. 31, 2022 | Oct. 08, 2021 USD ($) | Jul. 01, 2021 USD ($) | |
Ceded Credit Risk [Line Items] | ||||||||
Other revenue | $ 42,245 | $ 16,160 | $ 0 | |||||
Other liabilities | $ 1,614,479 | $ 2,187,249 | 1,614,479 | 2,187,249 | ||||
Coinsurance deposits (net of allowance for credit losses of $8,737 as of 2022 and $2,264 as of 2021) | $ 13,254,956 | 8,988,891 | $ 13,254,956 | 8,988,891 | ||||
Third party ownership interest in Company's common stock | 18.70% | 18.70% | 16% | |||||
North End Re, Reinsurance Agreement, In Force as of July 1, 2021 | ||||||||
Ceded Credit Risk [Line Items] | ||||||||
Reinsurance liabilities, amount ceded | $ 4,400,000 | |||||||
Modified coinsurance basis, percentage | 70% | |||||||
Coinsurance basis, percentage | 30% | |||||||
Annual ceding commission, basis points | Basis_Points | 49 | 49 | ||||||
Annual asset liability management fee, basis points | Basis_Points | 30 | 30 | ||||||
Contractually guaranteed fees, duration | 6 years | |||||||
Fees contingent on certain performance obligations, agreement year | yearOfAgreement | 7 | |||||||
Ceding commission, initial net present value | 114,100 | |||||||
North End Re, Reinsurance Agreement, In Force as of July 1, 2021 | Reinsurance Contract [Axis]: North End Re, Coinsurance Basis | ||||||||
Ceded Credit Risk [Line Items] | ||||||||
Cash transferred at close of reinsurance agreement | $ 1,100,000 | |||||||
North End Re, Reinsurance Agreement, In Force as of July 1, 2021 | Reinsurance Contract [Axis]: North End Re, Modified Coinsurance Basis | ||||||||
Ceded Credit Risk [Line Items] | ||||||||
Cash transferred at close of reinsurance agreement | $ 2,600,000 | |||||||
North End Re, Reinsurance Agreement, July 1, 2021 Going Forward | ||||||||
Ceded Credit Risk [Line Items] | ||||||||
Modified coinsurance basis, percentage | 70% | |||||||
Coinsurance basis, percentage | 30% | |||||||
Annual ceding commission, basis points | Basis_Points | 140 | 140 | ||||||
Annual asset liability management fee, basis points | Basis_Points | 30 | 30 | ||||||
Contractually guaranteed fees, duration | 6 years | |||||||
Fees contingent on certain performance obligations, agreement year | yearOfAgreement | 7 | |||||||
Ceding commission, initial net present value | 27,100 | $ 67,700 | ||||||
Coinsurance on certain annuities, percentage | 75% | |||||||
North End Re, Reinsurance Agreement Amendment, In Force Issued After July 1, 2021 | ||||||||
Ceded Credit Risk [Line Items] | ||||||||
Modified coinsurance basis, percentage | 70% | |||||||
Coinsurance basis, percentage | 30% | |||||||
Coinsurance on certain annuities, percentage | 75% | |||||||
North End Re | ||||||||
Ceded Credit Risk [Line Items] | ||||||||
Net investment income earned by assets in modco account | $ 95,400 | 11,400 | ||||||
Coinsurance deposits (net of allowance for credit losses of $8,737 as of 2022 and $2,264 as of 2021) | $ 5,800,000 | 4,800,000 | 5,800,000 | 4,800,000 | ||||
Reinsurance payable | 124,200 | 127,900 | 124,200 | 127,900 | ||||
North End Re | Other Liabilities, Deferred Gain | ||||||||
Ceded Credit Risk [Line Items] | ||||||||
Other liabilities | $ 480,500 | $ 335,400 | 480,500 | 335,400 | ||||
North End Re | Other Income, Asset Liability Management Fee | ||||||||
Ceded Credit Risk [Line Items] | ||||||||
Other revenue | 12,700 | 5,500 | ||||||
North End Re | Other Income, Deferred Gain | ||||||||
Ceded Credit Risk [Line Items] | ||||||||
Other revenue | $ 24,200 | $ 9,600 |
Reinsurance and Policy Provis_6
Reinsurance and Policy Provisions (AeBe) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 03, 2022 | Oct. 01, 2022 | |
Ceded Credit Risk [Line Items] | ||||||
Other liabilities | $ 1,614,479 | $ 1,614,479 | $ 2,187,249 | |||
Other revenue | 42,245 | 16,160 | $ 0 | |||
Coinsurance deposits (net of allowance for credit losses of $8,737 as of 2022 and $2,264 as of 2021) | $ 13,254,956 | 13,254,956 | $ 8,988,891 | |||
AeBe ISA LTD | ||||||
Ceded Credit Risk [Line Items] | ||||||
Reinsurance liabilities, amount ceded | $ 4,200,000 | |||||
Funds withheld coinsurance basis, percentage | 75% | |||||
Coinsurance basis, percentage | 25% | |||||
Closing ceding commission received at close of reinsurance agreement | $ 70,000 | |||||
Coinsurance deposits (net of allowance for credit losses of $8,737 as of 2022 and $2,264 as of 2021) | $ 4,100,000 | 4,100,000 | ||||
Reinsurance payable | 38,000 | 38,000 | ||||
AeBe ISA LTD | Other Liabilities, Deferred Gain | ||||||
Ceded Credit Risk [Line Items] | ||||||
Other liabilities | $ 51,600 | $ 51,600 | ||||
AeBe ISA LTD | Reinsurance Contract [Axis]: AeBe ISA LTD, Coinsurance Basis | ||||||
Ceded Credit Risk [Line Items] | ||||||
Cash and investments transferred at close of reinsurance agreement | 1,000,000 | |||||
AeBe ISA LTD | Reinsurance Contract [Axis]: AeBe ISA LTD, Flow Business Ceded | Maximum | ||||||
Ceded Credit Risk [Line Items] | ||||||
Annual ceding commission as percent of premium received | 0.50% | 0.50% | ||||
AeBe ISA LTD | Reinsurance Contract [Axis]: AeBe ISA LTD, Funds Withheld Coinsurance Basis | ||||||
Ceded Credit Risk [Line Items] | ||||||
Cash and investments transferred at close of reinsurance agreement | $ 3,000,000 | |||||
AeBe ISA LTD | Other Income, Deferred Gain | ||||||
Ceded Credit Risk [Line Items] | ||||||
Other revenue | $ 1,100 | |||||
26North | ||||||
Ceded Credit Risk [Line Items] | ||||||
Net investment income earned by assets in funds withheld account | $ 42,300 |
Reinsurance and Policy Provis_7
Reinsurance and Policy Provisions (Amounts Ceded, Impact on Consolidated Statements of Operations and Consolidated Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Effects of Reinsurance [Line Items] | |||
Annuity product charges | $ 230,354 | $ 242,631 | $ 251,227 |
Change in fair value of derivatives | (1,138,128) | 1,348,735 | 34,666 |
Interest sensitive and index product benefits | 554,871 | 2,231,567 | 1,543,270 |
Change in fair value of embedded derivatives | (2,352,598) | (358,302) | (1,286,787) |
Other operating costs and expenses | 239,526 | 241,882 | 183,636 |
Coinsurance deposits | (186,637) | (3,187,332) | 430,644 |
Coinsurance deposits, allowance for credit losses | 8,737 | 2,264 | |
Coinsurance Agreements, EquiTrust, Athene, North End Re and AeBe | |||
Effects of Reinsurance [Line Items] | |||
Annuity product charges | 49,093 | 20,351 | 7,021 |
Change in fair value of derivatives | (184,388) | 140,641 | 43,080 |
Coinsurance, revenues included in consolidated statement of operations | (135,295) | 160,992 | 50,101 |
Interest sensitive and index product benefits | 103,542 | 303,035 | 152,485 |
Change in fair value of embedded derivatives | 81,907 | (76,915) | 4,352 |
Other operating costs and expenses | 18,318 | 16,440 | 17,663 |
Coinsurance, benefits and expenses included in the consolidated statement of operations | 203,767 | 242,560 | 174,500 |
Annuity deposits | (982,176) | (424,819) | (35,667) |
Cash payments to policyholders | 1,029,667 | 984,260 | 466,311 |
Coinsurance deposits | $ 47,491 | $ 559,441 | $ 430,644 |
Reinsurance and Policy Provis_8
Reinsurance and Policy Provisions (Hannover Financing Arrangements) (Details) - 2019 Hannover Reinsurance Agreement - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Ceded Credit Risk [Line Items] | ||
Lifetime income benefit rider payments in excess of policy fund values and waived surrender charges related to penalty free withdrawals on certain business, percentage | 80% | |
Risk charges | $ 33.1 | $ 44.7 |
Reinsurance and Policy Provis_9
Reinsurance and Policy Provisions (Intercompany Reinsurance Agreements) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
AEL Re Vermont | ||
Ceded Credit Risk [Line Items] | ||
Risk charges | $ 11.7 | $ 2.8 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated statements of operations: | |||
Current income taxes | $ 20,209 | $ 332 | $ 3,430 |
Deferred income taxes | 490,926 | 149,431 | 141,071 |
Total income tax expense included in consolidated statements of operations | 511,135 | 149,763 | 144,501 |
Stockholders' equity: | |||
Expense (benefit) relating to: Adoption of expected credit loss model | 0 | 0 | (2,543) |
Expense (benefit) relating to: Change in net unrealized investment losses | (1,843,635) | 207,353 | 225,746 |
Total income tax expense included in consolidated financial statements | $ (1,332,500) | $ 357,116 | $ 367,704 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income before income taxes | $ 2,431,712 | $ 702,786 | $ 815,961 |
Income tax expense on income before income taxes | 510,660 | 147,585 | 171,352 |
Tax effect of: State income taxes | 2,564 | 5,239 | 5,749 |
Tax effect of: Tax exempt net investment income | (4,065) | (4,715) | (4,602) |
Tax effect of: Tax rate differential on net operating loss carryback | 0 | 0 | (30,041) |
Tax effect of: Other | 1,976 | 1,654 | 2,043 |
Total income tax expense included in consolidated statements of operations | $ 511,135 | $ 149,763 | $ 144,501 |
Effective tax rate | 21% | 21.30% | 17.70% |
Statutory federal income tax rate | 21% | 21% | 21% |
Effective statutory tax rate used for net operating loss carryback | 35% |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred income tax assets: | ||
Policy benefit reserves | $ 0 | $ 445,793 |
Credit losses/impairments | 10,531 | 15,275 |
Net unrealized losses on available for sale fixed maturity securities | 1,063,441 | 0 |
Amounts due reinsurer | 1,030,759 | 748,812 |
Other policyholder funds | 358 | 3,332 |
Deferred compensation | 3,866 | 3,434 |
Share-based compensation | 422 | 5,171 |
Net operating loss carryforwards | 50,913 | 87,314 |
Other | 71,417 | 1,140 |
Gross deferred tax assets | 2,231,707 | 1,310,271 |
Deferred income tax liabilities: | ||
Deferred policy acquisition costs and deferred sales inducements | (976,103) | (1,051,900) |
Net unrealized gains on available for sale fixed maturity securities | 0 | (905,050) |
Derivative instruments | (145,785) | (107,717) |
Policy benefit reserves | (612,454) | (98,616) |
Investment income items | (39,309) | (56,285) |
Other | (19,622) | (5,120) |
Gross deferred tax liabilities | (1,793,273) | (2,224,688) |
Net deferred income tax asset (liability) | 438,434 | |
Net deferred income tax asset (liability) | (914,417) | |
Deferred tax assets, valuation allowance | $ 0 | 0 |
Period subject to examination | 3 years | |
Net operating loss carryforwards | $ 170,500 | 419,500 |
Capital Loss Carryforward | ||
Deferred income tax liabilities: | ||
Capital loss carryforward | $ 45,700 | $ 0 |
Capital loss carryforward, period | 5 years | |
Deferred Tax Asset, Valuation Allowance, Unrealized Losses on Available For Sale Fixed Maturity Securities | ||
Deferred income tax liabilities: | ||
Deferred tax assets, valuation allowance | $ 0 |
Notes and Loan Payable (Schedul
Notes and Loan Payable (Schedule of Notes and Loan Payable) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 16, 2017 |
Debt Instrument [Line Items] | |||
Notes and loans payable | $ 792,073 | $ 496,250 | |
June 2027 Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | 500,000 | 500,000 | $ 500,000 |
Unamortized debt issue costs | (2,960) | (3,537) | |
Unamortized discount | (178) | (213) | $ (300) |
Term Loan Due 2027 | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | 300,000 | 0 | |
Principal paydown | (3,750) | 0 | |
Unamortized debt issue costs | $ (1,039) | $ 0 |
Notes and Loan Payable (2027 No
Notes and Loan Payable (2027 Notes Narrative) (Details) - June 2027 Notes - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 16, 2017 |
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 500,000 | $ 500,000 | $ 500,000 |
Interest rate | 5% | ||
Unamortized discount | $ 178 | $ 213 | $ 300 |
Deferred financing costs | $ 5,800 |
Notes and Loan Payable (Term Lo
Notes and Loan Payable (Term Loan Narrative) (Details) - Term Loan Due 2027 - USD ($) $ in Millions | Feb. 15, 2022 | Dec. 31, 2022 | Jul. 06, 2022 |
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 | 2.50% | ||
Years 4 - 5 | |||
Debt Instrument [Line Items] | |||
Term note, annual principal repayment rate | 5% |
Notes and Loan Payable (Line of
Notes and Loan Payable (Line of Credit and Term Loan Narrative) (Details) $ in Millions | Jul. 06, 2022 USD ($) | Sep. 30, 2016 USD ($) banks |
Term Loan | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, face amount | $ 300 | |
September 30, 2016 Credit Agreement | ||
Line of Credit Facility [Line Items] | ||
Credit agreement, number of banks in the agreement | banks | 6 | |
September 30, 2016 Credit Agreement | 2016 Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit, maximum borrowing capacity | $ 150 | |
September 30, 2016 Credit Agreement | Term Loan | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, face amount | $ 100 |
Subordinated Debentures (Summar
Subordinated Debentures (Summary of Subordinated Debt Obligations to the Trusts) (Details) - American Equity Capital Trust II - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Subordinated Borrowing [Line Items] | ||
Debt instrument, face amount | $ 100,000 | |
Subordinated debentures, fair value at issuance | $ 74,700 | |
Interest rate, effective percentage | 6.80% | |
Subordinated Debentures | ||
Subordinated Borrowing [Line Items] | ||
Subordinated debentures, gross | $ 78,753 | $ 78,421 |
Interest rate | 5% |
Retirement and Share-based Co_3
Retirement and Share-based Compensation Plans (Defined Contribution Plan) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Defined contribution plan, maximum annual employee contribution | $ 20,500 | $ 19,500 | $ 19,500 |
Defined contribution plan, employer plan contributions | $ 3,300,000 | $ 2,700,000 | $ 2,400,000 |
Retirement and Share-based Co_4
Retirement and Share-based Compensation Plans (Share-based Compensation Expense By Plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
ESOP, compensation expense | $ 4,152 | $ 3,377 | $ 2,908 |
Compensation expense | 19,659 | 27,525 | 11,819 |
Employee Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | 14,454 | 22,886 | 7,855 |
Director Equity Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 1,053 | $ 1,262 | $ 1,056 |
Retirement and Share-based Co_5
Retirement and Share-based Compensation Plans (Employee Stock Ownership Plan) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
ESOP, requisite service period | 6 months |
ESOP, vesting percentage | 100% |
ESOP, vesting period | 2 years |
Retirement and Share-based Co_6
Retirement and Share-based Compensation Plans (Incentive Plans) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) tranche shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted (in shares) | 0 | 1,246,605 | 815,767 |
Compensation expense | $ | $ 19,659 | $ 27,525 | $ 11,819 |
2016 Employee Incentive Plan or Amended Plan | Performance Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award performance period | 3 years | 3 years | 3 years |
Award vesting period | 3 years | 3 years | 3 years |
2016 Employee Incentive Plan or Amended Plan | Performance Units | Award Date, 2022 Grant | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity instruments granted (in shares) | 229,880 | ||
2016 Employee Incentive Plan or Amended Plan | Performance Units | Award Date, 2021 Grant | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity instruments granted (in shares) | 186,091 | ||
2016 Employee Incentive Plan or Amended Plan | Performance Units | Award Date, 2020 Grant | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity instruments granted (in shares) | 217,781 | ||
2016 Employee Incentive Plan or Amended Plan | Performance Units | Threshold Goals, Vesting Percentage | Award Date, 2022 Grant | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 50% | ||
2016 Employee Incentive Plan or Amended Plan | Performance Units | Threshold Goals, Vesting Percentage | Award Date, 2021 Grant | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 50% | ||
2016 Employee Incentive Plan or Amended Plan | Performance Units | Threshold Goals, Vesting Percentage | Award Date, 2020 Grant | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 50% | ||
2016 Employee Incentive Plan or Amended Plan | Performance Units | Target Performance Goals, Vesting Percentage | Award Date, 2022 Grant | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 100% | ||
2016 Employee Incentive Plan or Amended Plan | Performance Units | Target Performance Goals, Vesting Percentage | Award Date, 2021 Grant | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 100% | ||
2016 Employee Incentive Plan or Amended Plan | Performance Units | Target Performance Goals, Vesting Percentage | Award Date, 2020 Grant | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 100% | ||
2016 Employee Incentive Plan or Amended Plan | Performance Units | Maximum Performance Goals, Vesting Percentage | Award Date, 2022 Grant | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 200% | ||
2016 Employee Incentive Plan or Amended Plan | Performance Units | Maximum Performance Goals, Vesting Percentage | Award Date, 2021 Grant | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 200% | ||
2016 Employee Incentive Plan or Amended Plan | Performance Units | Maximum Performance Goals, Vesting Percentage | Award Date, 2020 Grant | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 150% | ||
2016 Employee Incentive Plan or Amended Plan | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity instruments granted (in shares) | 159,494 | 199,597 | 133,429 |
Participant age for full vesting | 65 years | ||
Requisite service period for full vesting | 10 years | ||
2016 Employee Incentive Plan or Amended Plan | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted (in shares) | 0 | 391,553 | 105,809 |
Duration of award | 10 years | ||
Amended Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of additional shares authorized (in shares) | 3,000,000 | ||
Number of shares authorized (in shares) | 5,500,000 | ||
Number of shares available for future grant (in shares) | 776,516 | ||
Amended Plan | Strategic Incentive Award, 2022 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of tranches of award | tranche | 4 | ||
Period market condition must be met | 30 days | ||
Amount of each tranche paid in shares, percentage | 50% | ||
Amount of each tranche paid in cash, percentage | 50% | ||
Compensation expense | $ | $ 4,200 | ||
Amended Plan | Performance Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted (in shares) | 855,052 | 709,958 | |
Period market condition must be met | 30 days | ||
Market condition, weighted average common stock price per common share (in dollars per share) | $ / shares | $ 37 | ||
Amended Plan | Performance Options | Share-based Compensation Award, Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 50% | ||
Amended Plan | Performance Options | Share-based Compensation Award, Tranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 50% | ||
Award vesting period | 1 year | ||
Amended Plan | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued in period (in shares) | 32,409 | 39,273 | 51,450 |
Minimum | 2016 Employee Incentive Plan or Amended Plan | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
Minimum | 2016 Employee Incentive Plan or Amended Plan | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
Minimum | Amended Plan | Performance Options | Share-based Compensation Award, Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
Maximum | 2016 Employee Incentive Plan or Amended Plan | Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Maximum | 2016 Employee Incentive Plan or Amended Plan | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 5 years | ||
Maximum | Amended Plan | Strategic Incentive Award, 2022 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award, value (in shares) | 1,200,000 | ||
Stay requirement, years | 2 years | ||
Maximum | Amended Plan | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year |
Retirement and Share-based Co_7
Retirement and Share-based Compensation Plans (Changes in Stock Options Outstanding) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-Based Payment Arrangement [Abstract] | ||||
Outstanding, number of shares (in shares) | 1,786,794 | 2,062,719 | 1,257,917 | 828,913 |
Outstanding, weighted-average exercise price per share (in dollars per share) | $ 28.18 | $ 27.84 | $ 25.10 | $ 19.91 |
Outstanding, total exercise price | $ 50,347 | $ 57,428 | $ 31,576 | $ 16,506 |
Granted, number of shares (in shares) | 0 | 1,246,605 | 815,767 | |
Granted, weighted-average exercise price per share (in dollars per share) | $ 0 | $ 29.15 | $ 26.70 | |
Granted, total exercise price | $ 0 | $ 36,336 | $ 21,778 | |
Canceled, number of shares (in shares) | (102,143) | (146,803) | (31,200) | |
Canceled, weighted-average exercise price per share (in dollars per share) | $ 27.49 | $ 25.44 | $ 21.50 | |
Canceled, total exercise price | $ (2,808) | $ (3,735) | $ (670) | |
Exercised, number of shares (in shares) | (173,782) | (295,000) | (355,563) | |
Exercised, weighted-average exercise price per share (in dollars per share) | $ 24.59 | $ 22.88 | $ 16.98 | |
Exercised, total exercise price | $ (4,273) | $ (6,749) | $ (6,038) |
Retirement and Share-based Co_8
Retirement and Share-based Compensation Plans (Schedule of Stock Options Outstanding, By Exercise Price Range) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Options outstanding, intrinsic value | $ 31.2 | ||
Options vested, intrinsic value | 12.6 | ||
Proceeds from stock options exercised | 4.3 | $ 6.7 | $ 6 |
Stock Option Plans For Officers, Directors And Employees | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Options exercised in period, total intrinsic value | $ 3.7 | $ 1.2 | $ 2.2 |
Exercise Price Range I | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Exercise price range, lower range limit (in dollars per share) | $ 21.89 | ||
Exercise price range, upper range limit (in dollars per share) | $ 26.72 | ||
Stock options outstanding, number of awards (in shares) | 375,820 | ||
Stock options outstanding, remaining life (yrs) | 7 years 9 months 29 days | ||
Stock options outstanding, weighted-average exercise price per share (in dollars per share) | $ 26.07 | ||
Stock options vested, number of awards (in shares) | 126,224 | ||
Stock options vested, remaining life (yrs) | 8 years 3 days | ||
Stock options vested, weighted-average exercise price per share (in dollars per share) | $ 26.72 | ||
Exercise Price Range II | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Exercise price range, lower range limit (in dollars per share) | 27.05 | ||
Exercise price range, upper range limit (in dollars per share) | $ 32.58 | ||
Stock options outstanding, number of awards (in shares) | 1,410,974 | ||
Stock options outstanding, remaining life (yrs) | 8 years 1 month 6 days | ||
Stock options outstanding, weighted-average exercise price per share (in dollars per share) | $ 28.74 | ||
Stock options vested, number of awards (in shares) | 606,322 | ||
Stock options vested, remaining life (yrs) | 8 years 1 month 2 days | ||
Stock options vested, weighted-average exercise price per share (in dollars per share) | $ 28.71 | ||
Exercise Price Range, All Options | |||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |||
Exercise price range, lower range limit (in dollars per share) | 21.89 | ||
Exercise price range, upper range limit (in dollars per share) | $ 32.58 | ||
Stock options outstanding, number of awards (in shares) | 1,786,794 | ||
Stock options outstanding, remaining life (yrs) | 8 years 18 days | ||
Stock options outstanding, weighted-average exercise price per share (in dollars per share) | $ 28.18 | ||
Stock options vested, number of awards (in shares) | 732,546 | ||
Stock options vested, remaining life (yrs) | 8 years 29 days | ||
Stock options vested, weighted-average exercise price per share (in dollars per share) | $ 28.37 |
Retirement and Share-based Co_9
Retirement and Share-based Compensation Plans (Deferred Compensation Arrangements) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |
Award vesting period, years | 3 years |
Compensation expense | $ 6.7 |
Maximum | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |
Annual cash installment payout option, period (years) | 15 years |
Statutory Financial Informati_3
Statutory Financial Information and Dividend Restrictions (Narrative and Statutory Accounting Practices Tables) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Insurance [Abstract] | |||
American Equity Life, statutory net income (loss) | $ 151,857 | $ (863,818) | $ (34,467) |
American Equity Life, statutory capital and surplus balance | 3,692,602 | 4,078,532 | |
Statutory accounting practices, permitted practice, amount | $ 83,000 | $ (210,200) | |
Dividend restriction, percentage policyholders surplus | 10% | ||
Statutory amount available for dividend payments without regulatory approval | $ 369,300 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative and Schedule of Future Minimum Rental Payments for Operating Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense | $ 5,200 | $ 3,800 | $ 4,200 |
Aggregate future minimum lease payments due | 28,500 | ||
2023 | 3,792 | ||
2024 | 4,112 | ||
2025 | 3,985 | ||
2026 | 3,587 | ||
2027 | 2,014 | ||
2028 and thereafter | 11,013 | ||
Other Commitments [Line Items] | |||
FHLB funding agreements outstanding | 300,000 | ||
Limited Partnerships | |||
Other Commitments [Line Items] | |||
Unfunded commitments | 1,700,000 | ||
Fixed Maturity Securities | |||
Other Commitments [Line Items] | |||
Unfunded commitments | 237,400 | ||
Asset Pledged as Collateral without Right | Federal Home Loan Bank Advances | |||
Other Commitments [Line Items] | |||
Fixed maturity security investments pledged for FHLB | $ 1,200,000 |
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 | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share, Basic and Diluted [Line Items] | |||
Net income available to common stockholders - numerator for earnings per common share | $ 1,876,544 | $ 509,348 | $ 637,945 |
Weighted average common shares outstanding (shares) | 90,558,121 | 93,860,378 | 92,055,035 |
Denominator for earnings per common share - assuming dilution (shares) | 91,538,128 | 94,491,159 | 92,392,496 |
Earnings per common share (in dollars per share) | $ 20.72 | $ 5.43 | $ 6.93 |
Earnings per common share - assuming dilution (in dollars per share) | $ 20.50 | $ 5.39 | $ 6.90 |
Stock Options And Deferred Compensation Agreements | |||
Earnings Per Share, Basic and Diluted [Line Items] | |||
Effect of dilutive securities: Share-based payment agreements (shares) | 523,248 | 271,422 | 93,014 |
Restricted Stock And Restricted Stock Units | |||
Earnings Per Share, Basic and Diluted [Line Items] | |||
Effect of dilutive securities: Share-based payment agreements (shares) | 456,759 | 359,359 | 244,447 |
Stock Options | |||
Earnings Per Share, Basic and Diluted [Line Items] | |||
Antidilutive securities excluded from computation of diluted earnings per common share, amount (shares) | 0 | 0 | 0 |
Earnings Per Common Share and_4
Earnings Per Common Share and Stockholders' Equity (Stockholders' Equity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Jun. 10, 2020 | Nov. 21, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | |||||
Proceeds from issuance of preferred stock, net | $ 0 | $ 0 | $ 290,260 | ||
Dividends paid on preferred stock | $ 43,675 | $ 43,675 | 33,515 | ||
Preferred Stock, Series B | |||||
Class of Stock [Line Items] | |||||
Preferred stock, shares issued (in shares) | 12,000 | 12,000 | 12,000 | ||
Preferred stock dividend rate, percentage | 6.625% | ||||
Preferred stock, par value (dollars per share) | $ 1 | $ 1 | $ 1 | ||
Preferred stock, liquidation preference, per share (in dollars per share) | $ 25,000 | ||||
Proceeds from issuance of preferred stock, net | $ 290,300 | ||||
Dividends paid on preferred stock | $ 19,900 | $ 19,900 | 9,000 | ||
Preferred Stock, Series A | |||||
Class of Stock [Line Items] | |||||
Preferred stock, shares issued (in shares) | 16,000 | 16,000 | 16,000 | ||
Preferred stock dividend rate, percentage | 5.95% | ||||
Preferred stock, par value (dollars per share) | $ 1 | $ 1 | $ 1 | ||
Preferred stock, liquidation preference, per share (in dollars per share) | $ 25,000 | ||||
Proceeds from issuance of preferred stock, net | $ 388,900 | ||||
Dividends paid on preferred stock | $ 23,800 | $ 23,800 | $ 24,500 |
Earnings Per Common Share and_5
Earnings Per Common Share and Stockholders' Equity (Brookfield) (Details) | Dec. 31, 2022 | 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 | 18.70% | 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 | 12 Months Ended | 26 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2022 | Nov. 11, 2022 | Dec. 31, 2021 | Nov. 19, 2021 | Oct. 18, 2020 | |
Earnings Per Share [Abstract] | ||||||
Stock repurchase program, authorized amount | $ 400 | $ 500 | $ 500 | |||
Treasury stock acquired, shares (in shares) | 14,800,000 | 23,900,000 | ||||
Treasury stock acquired, average cost per share (in dollars per share) | $ 34.74 | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 569 | $ 569 | ||||
Treasury stock, shares (in shares) | 24,590,353 | 24,590,353 | 9,936,715 | |||
Treasury stock, carrying value | $ 823.1 | $ 823.1 | $ 260.6 |
Schedule I - Summary of Inves_2
Schedule I - Summary of Investments - Other Than Investments in Related Parties (Details) $ in Thousands | Dec. 31, 2022 USD ($) | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized cost | $ 56,378,635 | [1] |
Amount at which shown in the balance sheet | 51,325,298 | |
Total Fixed Maturity Securities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized cost | 44,866,019 | [1] |
Fair value | 39,804,617 | |
Amount at which shown in the balance sheet | 39,804,617 | |
U.S. Government and agencies | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized cost | 173,638 | [1] |
Fair value | 169,071 | |
Amount at which shown in the balance sheet | 169,071 | |
States, municipalities and territories | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized cost | 4,356,251 | [1] |
Fair value | 3,822,982 | |
Amount at which shown in the balance sheet | 3,822,982 | |
Foreign corporate securities and foreign governments | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized cost | 748,770 | [1] |
Fair value | 676,852 | |
Amount at which shown in the balance sheet | 676,852 | |
Corporate securities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized cost | 27,706,440 | [1] |
Fair value | 24,161,921 | |
Amount at which shown in the balance sheet | 24,161,921 | |
Residential mortgage backed securities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized cost | 1,492,242 | [1] |
Fair value | 1,377,611 | |
Amount at which shown in the balance sheet | 1,377,611 | |
Commercial mortgage backed securities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized cost | 4,098,755 | [1] |
Fair value | 3,687,478 | |
Amount at which shown in the balance sheet | 3,687,478 | |
Other asset backed securities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized cost | 6,289,923 | [1] |
Fair value | 5,908,702 | |
Amount at which shown in the balance sheet | 5,908,702 | |
Mortgage loans on real estate | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized cost | 6,949,027 | [1] |
Fair value | 6,502,463 | |
Amount at which shown in the balance sheet | 6,949,027 | |
Real estate investments | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized cost | 1,053,569 | [1] |
Fair value | 1,056,063 | |
Amount at which shown in the balance sheet | 1,056,063 | |
Derivative instruments | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized cost | 425,097 | [1] |
Fair value | 431,727 | |
Amount at which shown in the balance sheet | 431,727 | |
Limited partnerships and limited liability companies | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized cost | 1,266,779 | [1] |
Amount at which shown in the balance sheet | 1,266,779 | |
Other investments | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Amortized cost | 1,818,144 | [1] |
Amount at which shown in the balance sheet | $ 1,817,085 | |
[1]On the basis of cost adjusted for repayments and amortization of premiums and accrual of discounts for fixed maturity securities and short-term investments, unpaid principal balance less allowance for credit losses for mortgage loans, original cost reduced by impairments and/or depreciation for real estate investments, amortized cost for derivative instruments and original cost adjusted for equity in earnings and distributions for limited partnerships and limited liability companies. |
Schedule II - Condensed Finan_2
Schedule II - Condensed Financial Information of Registrant (Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 1,919,669 | $ 4,508,982 |
Federal income tax recoverable, including amount from subsidiaries | 55,498 | 166,586 |
Other assets | 642,696 | 349,023 |
Total assets | 73,183,599 | 80,543,622 |
Liabilities: | ||
Notes and loan payable | 792,073 | 496,250 |
Subordinated debentures payable to subsidiary trusts | 78,753 | 78,421 |
Deferred income taxes | 0 | 914,417 |
Other liabilities | 1,614,479 | 2,187,249 |
Total liabilities | 70,812,849 | 72,804,905 |
Stockholders' equity: | ||
Common stock | 84,810 | 92,514 |
Additional paid-in capital | 1,325,316 | 1,614,374 |
Accumulated other comprehensive income (loss) | (3,746,230) | 3,192,547 |
Retained earnings | 4,685,593 | 2,839,254 |
Total stockholders' equity attributable to American Equity Investment Life Holding Company | 2,349,517 | 7,738,717 |
Total liabilities and stockholders' equity | 73,183,599 | 80,543,622 |
Preferred Stock, Series A | ||
Stockholders' equity: | ||
Preferred stock | 16 | 16 |
Preferred Stock, Series B | ||
Stockholders' equity: | ||
Preferred stock | 12 | 12 |
Parent Company | ||
Assets | ||
Cash and cash equivalents | 531,347 | 362,245 |
Equity securities of subsidiary trusts | 2,360 | 2,353 |
Receivable from subsidiaries | 8,868 | 2,783 |
Notes receivable from subsidiaries | 85,654 | 165,000 |
Federal income tax recoverable, including amount from subsidiaries | 267,076 | 217,174 |
Other assets | 33,990 | 20,134 |
Total assets, excluding investment in and advances to subsidiaries | 929,295 | 769,689 |
Investment in and advances to subsidiaries | 2,617,873 | 7,803,501 |
Total assets | 3,547,168 | 8,573,190 |
Liabilities: | ||
Notes and loan payable | 792,073 | 496,250 |
Subordinated debentures payable to subsidiary trusts | 78,753 | 78,421 |
Deferred income taxes | 268,639 | 223,304 |
Other liabilities | 58,186 | 36,499 |
Total liabilities | 1,197,651 | 834,474 |
Stockholders' equity: | ||
Common stock | 84,810 | 92,514 |
Additional paid-in capital | 1,325,316 | 1,614,374 |
Accumulated other comprehensive income (loss) | (3,746,230) | 3,192,547 |
Retained earnings | 4,685,593 | 2,839,254 |
Total stockholders' equity attributable to American Equity Investment Life Holding Company | 2,349,517 | 7,738,717 |
Total liabilities and stockholders' equity | 3,547,168 | 8,573,191 |
Parent Company | Preferred Stock, Series A | ||
Stockholders' equity: | ||
Preferred stock | 16 | 16 |
Parent Company | Preferred Stock, Series B | ||
Stockholders' equity: | ||
Preferred stock | $ 12 | $ 12 |
Schedule II - Condensed Finan_3
Schedule II - Condensed Financial Information of Registrant (Condensed Statements of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||
Net investment income | $ 2,307,463 | $ 2,037,475 | $ 2,182,078 |
Change in fair value of derivatives | (1,138,128) | 1,348,735 | 34,666 |
Loss on extinguishment of debt | 0 | 0 | (2,024) |
Other revenue | 42,245 | 16,160 | 0 |
Total revenues | 1,413,825 | 3,689,961 | 2,424,649 |
Expenses: | |||
Interest expense on notes and loan payable | 32,098 | 25,581 | 25,552 |
Interest expense on subordinated debentures issued to subsidiary trusts | 5,331 | 5,324 | 5,557 |
Other operating costs and expenses | 239,526 | 241,882 | 183,636 |
Income tax expense (benefit) | 511,135 | 149,763 | 144,501 |
Net income available to American Equity Investment Life Holding Company stockholders | 1,920,219 | 553,023 | 671,460 |
Less: Preferred stock dividends | 43,675 | 43,675 | 33,515 |
Net income available to American Equity Investment Life Holding Company common stockholders | 1,876,544 | 509,348 | 637,945 |
Parent Company | |||
Revenues: | |||
Net investment income | 6,733 | 114 | 1,115 |
Dividends from subsidiary trusts | 155 | 159 | 167 |
Dividends from subsidiaries | 325,000 | 250,000 | 0 |
Surplus note interest from subsidiary | 4,080 | 4,080 | 4,080 |
Change in fair value of derivatives | 0 | 0 | 62 |
Loss on extinguishment of debt | 0 | 0 | (2,024) |
Other revenue | 19,153 | 8,511 | 346 |
Total revenues | 465,215 | 389,507 | 117,974 |
Expenses: | |||
Interest expense on notes and loan payable | 32,098 | 25,581 | 25,552 |
Interest expense on subordinated debentures issued to subsidiary trusts | 5,331 | 5,324 | 5,557 |
Other operating costs and expenses | 114,792 | 72,435 | 46,686 |
Total benefits and expenses | 152,221 | 103,340 | 77,795 |
Income before income taxes and equity in undistributed income of subsidiaries | 312,994 | 286,167 | 40,179 |
Income tax expense (benefit) | (1,067) | 11,565 | 13,142 |
Income before equity in undistributed income of subsidiaries | 314,061 | 274,602 | 27,037 |
Equity in undistributed income of subsidiaries | 1,606,158 | 278,421 | 644,423 |
Net income available to American Equity Investment Life Holding Company stockholders | 1,920,219 | 553,023 | 671,460 |
Less: Preferred stock dividends | 43,675 | 43,675 | 33,515 |
Net income available to American Equity Investment Life Holding Company common stockholders | 1,876,544 | 509,348 | 637,945 |
Investment Advisory Fees | Parent Company | |||
Revenues: | |||
Investment advisory fees | $ 110,094 | $ 126,643 | $ 114,228 |
Schedule II - Condensed Finan_4
Schedule II - Condensed Financial Information of Registrant (Condensed Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities | |||
Net income available to American Equity Investment Life Holding Company stockholders | $ 1,920,219 | $ 553,023 | $ 671,460 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Accrual of discount on equity security | 2,640 | 19,861 | 57,437 |
Change in fair value of derivatives | 1,138,127 | (1,348,704) | (34,668) |
Loss on extinguishment of debt | 0 | 0 | 2,024 |
Share-based compensation | 15,827 | 24,601 | 10,215 |
Deferred income taxes | 490,926 | 149,431 | 141,071 |
Changes in operating assets and liabilities: | |||
Other assets | 2,852 | (5,085) | (849) |
Other liabilities | 9,033 | (224,171) | 38,995 |
Net cash provided by operating activities | 2,043,819 | 4,233,164 | 1,304,986 |
Investing activities | |||
Purchases of property, plant and equipment | (40,961) | (18,109) | (13,240) |
Net cash provided by (used in) investing activities | (2,454,911) | (6,224,307) | 5,134,604 |
Financing activities | |||
Repayment of loan payable | (3,750) | 0 | 0 |
Proceeds from issuance of loan payable | 300,000 | 0 | 0 |
Repayment of subordinated debentures | 0 | 0 | (81,450) |
Proceeds from issuance of common stock, net | 253,978 | 4,854 | 338,061 |
Acquisition of treasury stock | (566,567) | (99,415) | (165,094) |
Proceeds from issuance of preferred stock, net | 0 | 0 | 290,260 |
Dividends paid on common stock | (30,205) | (31,450) | (28,859) |
Dividends paid on preferred stock | (43,675) | (43,675) | (33,515) |
Net cash provided by (used in) financing activities | (2,178,221) | (2,595,397) | 362,540 |
Increase (decrease) in cash and cash equivalents | (2,589,313) | (4,586,540) | 6,802,130 |
Cash and cash equivalents at beginning of year | 4,508,982 | 9,095,522 | 2,293,392 |
Cash and cash equivalents at end of year | 1,919,669 | 4,508,982 | 9,095,522 |
Cash paid during the year for: | |||
Interest paid | 36,289 | 30,000 | 31,427 |
Parent Company | |||
Operating activities | |||
Net income available to American Equity Investment Life Holding Company stockholders | 1,920,219 | 553,023 | 671,460 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for depreciation and amortization | 4,925 | 1,232 | 1,138 |
Accrual of discount on equity security | (7) | (10) | (3) |
Equity in undistributed income of subsidiaries | (1,606,158) | (278,421) | (644,423) |
Non cash dividend from subsidiaries | 0 | (80,000) | 0 |
Change in fair value of derivatives | 0 | 0 | (62) |
Loss on extinguishment of debt | 0 | 0 | 2,024 |
Accrual of discount on debenture issued to subsidiary trust | 332 | 309 | 289 |
Share-based compensation | 6,023 | 10,235 | 3,303 |
Deferred income taxes | 45,335 | 222,714 | 6,408 |
Changes in operating assets and liabilities: | |||
Receivable from subsidiaries | (6,085) | (365) | (1,208) |
Federal income tax recoverable/payable | (49,902) | (222,569) | (3,879) |
Other assets | (16,363) | (5,054) | (320) |
Other liabilities | 21,687 | 21,819 | 7,617 |
Net cash provided by operating activities | 320,006 | 222,913 | 42,344 |
Investing activities | |||
Change in notes receivable from subsidiaries | 79,346 | (165,000) | 0 |
Repayment of equity securities | 0 | 0 | 2,445 |
Contribution to subsidiaries | (137,002) | 0 | (210,000) |
Purchases of property, plant and equipment | (1,432) | (12,642) | (48) |
Net cash provided by (used in) investing activities | (59,088) | (177,642) | (207,603) |
Financing activities | |||
Financing fees incurred and deferred | (1,235) | 0 | 0 |
Repayment of loan payable | (3,750) | 0 | 0 |
Proceeds from issuance of loan payable | 300,000 | 0 | 0 |
Repayment of subordinated debentures | 0 | 0 | (81,450) |
Proceeds from issuance of common stock, net | 253,978 | 4,844 | 338,061 |
Acquisition of treasury stock | (566,567) | (99,415) | (165,094) |
Proceeds from issuance of preferred stock, net | 0 | 0 | 290,260 |
Dividends paid on common stock | (30,567) | (31,450) | (28,859) |
Dividends paid on preferred stock | (43,675) | (43,675) | (33,515) |
Net cash provided by (used in) financing activities | (91,816) | (169,696) | 319,403 |
Increase (decrease) in cash and cash equivalents | 169,102 | (124,425) | 154,144 |
Cash and cash equivalents at beginning of year | 362,245 | 486,670 | 332,526 |
Cash and cash equivalents at end of year | 531,347 | 362,245 | 486,670 |
Parent Company | Notes and Loan Payable | |||
Cash paid during the year for: | |||
Interest paid | 31,288 | 25,000 | 25,000 |
Parent Company | Subordinated Debentures | |||
Cash paid during the year for: | |||
Interest paid | $ 5,000 | $ 5,000 | $ 6,181 |
Schedule III - Supplementary _2
Schedule III - Supplementary Insurance Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |||
Deferred policy acquisition costs | $ 2,773,643 | $ 3,062,204 | $ 2,225,199 |
Future policy benefits, losses, claims and loss expenses | 58,781,836 | 62,614,822 | 62,352,882 |
Unearned premiums | 0 | 0 | 0 |
Other policy claims and benefits payable | 512,790 | 226,844 | 240,904 |
Premium revenue | 250,093 | 300,833 | 290,609 |
Net investment income | 2,307,463 | 2,037,475 | 2,182,078 |
Benefits, claims, losses and settlement expenses | (1,582,537) | 2,139,045 | 744,389 |
Amortization of deferred policy acquisition costs | 284,011 | 306,370 | 649,554 |
Other operating expenses | $ 276,955 | $ 272,787 | $ 214,745 |
Schedule IV - Reinsurance (Deta
Schedule IV - Reinsurance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Gross amount, life insurance in force | $ 44,003 | $ 48,943 | $ 52,234 |
Ceded to other companies, life insurance in force | 4,761 | 5,131 | 5,925 |
Assumed from other companies, life insurance in force | 43,607 | 46,119 | 49,577 |
Net amount, life insurance in force | 82,849 | 89,931 | 95,886 |
Net amount, insurance premiums and other considerations | $ 19,739 | $ 58,202 | $ 39,382 |
Percent of amount assumed to net, life insurance in force | 52.63% | 51.28% | 51.70% |
Insurance Premiums and Other Considerations | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Gross amount, insurance premiums and other considerations | $ 299,107 | $ 321,132 | $ 297,571 |
Ceded to other companies, insurance premiums and other considerations | 49,184 | 20,468 | 7,160 |
Assumed from other companies, insurance premiums and other considerations | 170 | 169 | 198 |
Net amount, insurance premiums and other considerations | $ 250,093 | $ 300,833 | $ 290,609 |
Percent of amount assumed to net, insurance premiums and other considerations | 0.07% | 0.06% | 0.07% |
Annuity Product Charges | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Gross amount, insurance premiums and other considerations | $ 279,447 | $ 262,982 | $ 258,248 |
Ceded to other companies, insurance premiums and other considerations | 49,093 | 20,351 | 7,021 |
Assumed from other companies, insurance premiums and other considerations | 0 | 0 | 0 |
Net amount, insurance premiums and other considerations | $ 230,354 | $ 242,631 | $ 251,227 |
Percent of amount assumed to net, insurance premiums and other considerations | 0% | 0% | 0% |
Traditional Life, Accident and Health Insurance, and Life Contingent Immediate Annuity Premiums | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Gross amount, insurance premiums and other considerations | $ 19,660 | $ 58,150 | $ 39,323 |
Ceded to other companies, insurance premiums and other considerations | 91 | 117 | 139 |
Assumed from other companies, insurance premiums and other considerations | 170 | 169 | 198 |
Net amount, insurance premiums and other considerations | $ 19,739 | $ 58,202 | $ 39,382 |
Percent of amount assumed to net, insurance premiums and other considerations | 0.86% | 0.29% | 0.50% |