Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Mar. 24, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | BRIGHTHOUSE LIFE INSURANCE Co OF NY | |
Entity Central Index Key | 1,167,609 | |
Document Type | 10-K | |
Document Period End Date | Dec. 31, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | FY | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Public Float | $ 0 | |
Entity Common Stock, Shares Outstanding | 200,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Investments: | ||
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $1,870,654 and $1,081,183, respectively) | $ 1,878,514 | $ 1,087,215 |
Mortgage loans (net of valuation allowances of $1,775 and $640, respectively) | 406,085 | 141,278 |
Short-term investments, principally at estimated fair value | 0 | 18,484 |
Other invested assets, at estimated fair value | 8,656 | 4,981 |
Total investments | 2,293,255 | 1,251,958 |
Cash and cash equivalents, principally at estimated fair value | 18,583 | 9,310 |
Accrued investment income | 16,626 | 9,316 |
Premiums, reinsurance and other receivables | 354,939 | 1,539,801 |
Deferred policy acquisition costs and value of business acquired | 85,173 | 107,514 |
Current income tax recoverable | 57,736 | 2,801 |
Other assets | 48,285 | 62,937 |
Separate account assets | 4,758,449 | 4,792,140 |
Total assets | 7,633,046 | 7,775,777 |
Liabilities | ||
Future policy benefits | 627,007 | 548,208 |
Policyholder account balances | 1,202,350 | 1,248,493 |
Other policy-related balances | 7,285 | 8,560 |
Payables for collateral under derivative transactions | 8,942 | 3,300 |
Deferred income tax liability | 219,839 | 121,117 |
Other liabilities | 112,441 | 446,637 |
Separate account liabilities | 4,758,449 | 4,792,140 |
Total liabilities | 6,936,313 | 7,168,455 |
Commitments and Contingencies | ||
Stockholder’s Equity | ||
Common stock, par value $10 per share; 200,000 shares authorized, issued and outstanding | 2,000 | 2,000 |
Additional paid-in capital | 340,931 | 340,931 |
Retained earnings | 349,395 | 258,985 |
Accumulated other comprehensive income (loss) | 4,407 | 5,406 |
Total stockholder's equity | 696,733 | 607,322 |
Total liabilities and stockholder's equity | $ 7,633,046 | $ 7,775,777 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Amortized cost of fixed maturity securities available-for-sale | $ 1,870,654 | $ 1,081,183 |
Mortgage loans valuation allowances | $ 1,775 | $ 640 |
Stockholder’s Equity | ||
Common stock, par value | $ 10 | $ 10 |
Common stock, shares authorized | 200,000 | 200,000 |
Common stock, shares issued | 200,000 | 200,000 |
Common stock, shares outstanding | 200,000 | 200,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | |||
Premiums | $ 50,739 | $ 71,872 | $ 81,482 |
Universal life and investment-type product policy fees | 103,000 | 110,905 | 104,544 |
Net investment income | 57,780 | 52,944 | 41,053 |
Other revenues | 29,192 | (9,465) | 47,305 |
Net investment gains (losses) | (3,737) | 4,399 | 552 |
Net derivative gains (losses) | 67,726 | 65,000 | 127,162 |
Total revenues | 304,700 | 295,655 | 402,098 |
Expenses | |||
Policyholder benefits and claims | 51,980 | 49,400 | 76,905 |
Interest credited to policyholder account balances | 39,914 | 52,133 | 54,136 |
Deferred Policy Acquisition Costs and Present Value of Future Profits, Amortization | 23,217 | 103,826 | 68,771 |
Other expenses | 57,027 | 65,213 | 79,567 |
Total expenses | 172,138 | 270,572 | 279,379 |
Income (loss) before provision for income tax | 132,562 | 25,083 | 122,719 |
Provision for income tax expense (benefit) | 42,152 | 1,988 | 36,270 |
Net income (loss) | $ 90,410 | $ 23,095 | $ 86,449 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 90,410 | $ 23,095 | $ 86,449 |
Other comprehensive income (loss): | |||
Unrealized investment gains (losses), net of related offsets | (3,066) | (55,353) | 44,913 |
Unrealized gains (losses) on derivatives | 1,529 | 2,760 | 1,278 |
Other comprehensive income (loss), before income tax | (1,537) | (52,593) | 46,191 |
Income tax (expense) benefit related to items of other comprehensive income (loss) | 538 | 18,408 | (16,167) |
Other comprehensive income (loss), net of income tax | (999) | (34,185) | 30,024 |
Comprehensive income (loss) | $ 89,411 | $ (11,090) | $ 116,473 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Dec. 31, 2013 | $ 501,927 | $ 2,000 | $ 340,919 | $ 149,441 | $ 9,567 |
Capital contribution | 12 | 12 | |||
Net income (loss) | 86,449 | 86,449 | |||
Other comprehensive income (loss), net of income tax | 30,024 | 30,024 | |||
Ending Balance at Dec. 31, 2014 | 618,412 | 2,000 | 340,931 | 235,890 | 39,591 |
Net income (loss) | 23,095 | 23,095 | |||
Other comprehensive income (loss), net of income tax | (34,185) | (34,185) | |||
Ending Balance at Dec. 31, 2015 | 607,322 | 2,000 | 340,931 | 258,985 | 5,406 |
Net income (loss) | 90,410 | 90,410 | |||
Other comprehensive income (loss), net of income tax | (999) | (999) | |||
Ending Balance at Dec. 31, 2016 | $ 696,733 | $ 2,000 | $ 340,931 | $ 349,395 | $ 4,407 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities | |||
Net income (loss) | $ 90,410 | $ 23,095 | $ 86,449 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization expenses | 3,534 | 1,408 | 1,571 |
Amortization of premiums and accretion of discounts associated with investments, net | (828) | (1,918) | (852) |
(Gains) losses on investments, net | 3,737 | (4,399) | (552) |
(Gains) losses on derivatives, net | (44,031) | (41,794) | (130,598) |
Interest credited to policyholder account balances | 39,914 | 52,133 | 54,136 |
Universal life and investment-type product policy fees | (103,000) | (110,905) | (104,544) |
Change in accrued investment income | (404) | (1,048) | (1,664) |
Change in premiums, reinsurance and other receivables | 433,724 | 2,601 | (29,111) |
Change in deferred policy acquisition costs and value of business acquired, net | 18,241 | 99,059 | 48,461 |
Change in income tax | 44,325 | (78,460) | 78,307 |
Change in other assets | 103,403 | 102,648 | 117,079 |
Change in future policy benefits and other policy-related balances | 77,708 | 68,764 | 75,237 |
Change in other liabilities | (334,195) | 12,764 | 291,365 |
Net cash provided by (used in) operating activities | 332,538 | 123,948 | 485,284 |
Cash flows from investing activities | |||
Sales, maturities and repayments of fixed maturity securities | 140,236 | 364,194 | 340,571 |
Sales, maturities and repayments of mortgage loans | 42,446 | 23,593 | 5,371 |
Purchases of fixed maturity securities | (379,993) | (372,108) | (726,115) |
Purchases of mortgage loans | (44,325) | (45,240) | (10,050) |
Cash received in connection with freestanding derivatives | 54 | 786 | 0 |
Cash paid in connection with freestanding derivatives | (25) | (822) | (4) |
Net change in short-term investments | 18,487 | (6,380) | 8,018 |
Net change in other invested assets | 2 | 414 | (12) |
Other, net | 183 | 0 | 0 |
Net cash provided by (used in) investing activities | (222,935) | (35,563) | (382,221) |
Cash flows from financing activities | |||
Policyholder account balances: Deposits | 50,745 | 56,728 | 38,453 |
Policyholder account balances: Withdrawals | (156,717) | (146,131) | (135,867) |
Net change in payables for collateral under securities loaned and other transactions | 5,642 | 3,300 | 0 |
Net cash provided by (used in) financing activities | (100,330) | (86,103) | (97,414) |
Change in cash and cash equivalents | 9,273 | 2,282 | 5,649 |
Cash and cash equivalents, beginning of year | 9,310 | 7,028 | 1,379 |
Cash and cash equivalents, end of year | 18,583 | 9,310 | 7,028 |
Supplemental disclosures of cash flow information | |||
Net cash paid (received) for Income tax | (1,314) | 80,448 | (40,683) |
Non-cash transactions: | |||
Capital contribution | 0 | 0 | 12 |
Transfer of fixed maturity securities from affiliates | 552,113 | 0 | 0 |
Transfer of mortgage loans from affiliates | $ 266,557 | $ 0 | $ 0 |
Business, Basis of Presentation
Business, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business, Basis of Presentation and Summary of Significant Accounting Policies | 1. Business, Basis of Presentation and Summary of Significant Accounting Policies Business “Brighthouse NY” and the “Company” refer to Brighthouse Life Insurance Company of NY (formerly, First MetLife Investors Insurance Company), a New York domiciled life insurance company. Brighthouse Life Insurance Company of NY is a wholly-owned subsidiary of MetLife, Inc. (MetLife, Inc., together with its subsidiaries and affiliates, “MetLife”). The Company markets and/or administers traditional life, universal life, variable annuity and fixed annuity products to individuals. The Company is licensed to transact business in the state of New York. The Company is organized into two segments: Annuities and Life. In January 2016, MetLife, Inc. announced its plan to pursue the separation of a substantial portion of its U.S. retail business (the “Separation”). Additionally, on July 21, 2016, MetLife, Inc. announced that following the planned Separation, the separated business will be rebranded as Brighthouse Financial. On October 5, 2016, Brighthouse Financial, Inc., a subsidiary of MetLife, Inc. (“Brighthouse”), filed a registration statement on Form 10 (the “Form 10”) with the U.S. Securities and Exchange Commission (“SEC”). The information statement filed as an exhibit to the Form 10 disclosed that MetLife intends to include the Company and certain affiliates in the proposed separated business and distribute at least 80.1% of the shares of Brighthouse’s common stock on a pro rata basis to the holders of MetLife, Inc. common stock. Effective March 6, 2017, and in connection with the planned Separation, the company changed its name from First MetLife Investors Insurance Company to Brighthouse Life Insurance Company of NY. The ultimate form and timing of the planned Separation will be influenced by a number of factors, including regulatory considerations and economic conditions. MetLife continues to evaluate and pursue structural alternatives for the proposed Separation. The planned Separation remains subject to certain conditions, including among others, obtaining final approval from the MetLife, Inc. Board of Directors, receipt of a favorable ruling from the Internal Revenue Service (“IRS”) and an opinion from MetLife’s tax advisor regarding certain U.S. federal income tax matters, insurance and other regulatory approvals, and an SEC declaration of the effectiveness of the Form 10. Basis of Presentation The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates. Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a stand-alone entity. Separate Accounts Separate accounts are established in conformity with insurance laws. Generally, the assets of the separate accounts cannot be used to settle the liabilities that arise from any other business of the Company. Separate account assets are subject to general account claims only to the extent the value of such assets exceeds the separate account liabilities. The Company reports separately, as assets and liabilities, investments held in separate accounts and liabilities of the separate accounts if: • such separate accounts are legally recognized; • assets supporting the contract liabilities are legally insulated from the Company’s general account liabilities; • investments are directed by the contractholder; and • all investment performance, net of contract fees and assessments, is passed through to the contractholder. The Company reports separate account assets at their fair value, which is based on the estimated fair values of the underlying assets comprising the individual separate account portfolios. Investment performance (including investment income, net investment gains (losses) and changes in unrealized gains (losses)) and the corresponding amounts credited to contractholders of such separate accounts are offset within the same line on the statements of operations. The Company’s revenues reflect fees charged to the separate accounts, including mortality charges, risk charges, policy administration fees, investment management fees and surrender charges. Such fees are included in universal life and investment-type product policy fees on the statements of operations. Reclassifications Certain amounts in the prior years’ financial statements and related footnotes thereto have been reclassified to conform with the current year presentation as discussed throughout the Notes to the Financial Statements. Summary of Significant Accounting Policies The following are the Company’s significant accounting policies with references to notes providing additional information on such policies and critical accounting estimates relating to such policies. Accounting Policy Note Insurance 3 Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles 4 Reinsurance 5 Investments 6 Derivatives 7 Fair Value 8 Income Tax 11 Litigation Contingencies 12 Insurance Future Policy Benefit Liabilities and Policyholder Account Balances The Company establishes liabilities for amounts payable under insurance policies. Generally, amounts are payable over an extended period of time and related liabilities are calculated as the present value of future expected benefits to be paid, reduced by the present value of future expected premiums. Such liabilities are established based on methods and underlying assumptions that are in accordance with GAAP and applicable actuarial standards. The principal assumptions used in the establishment of liabilities for future policy benefits are mortality, policy lapse, policy renewal, investment returns, inflation, expenses and other contingent events as appropriate to the respective product type. These assumptions are established at the time the policy is issued and locked in and are intended to estimate the experience for the period the policy benefits are payable. Utilizing these assumptions, liabilities are established on a block of business basis. For long duration insurance contracts, assumptions such as mortality and interest rates are locked in upon the issuance of new business. However, significant adverse changes in experience on such contracts may require the establishment of premium deficiency reserves. Such reserves are determined based on the then current assumptions and do not include a provision for adverse deviation. The Company regularly reviews its estimates of liabilities for future policy benefits and compares them with its actual experience. Differences result in changes to the liability balances with related charges or credits to benefit expenses in the period in which the changes occur. Policyholder account balances relate to contracts or contract features where the Company has no significant insurance risk. The Company issues directly, certain variable annuity products with guaranteed minimum benefits that provide the policyholder a minimum return based on their initial deposit (i.e., the benefit base) less withdrawals. These guarantees are accounted for as insurance liabilities or as embedded derivatives depending on how and when the benefit is paid. Specifically, a guarantee is accounted for as an embedded derivative if a guarantee is paid without requiring (i) the occurrence of specific insurable event, or (ii) the policyholder to annuitize. Alternatively, a guarantee is accounted for as an insurance liability if the guarantee is paid only upon either (i) the occurrence of a specific insurable event, or (ii) annuitization. In certain cases, a guarantee may have elements of both an insurance liability and an embedded derivative and in such cases the guarantee is split and accounted for under both models. Guarantees accounted for as insurance liabilities in future policy benefits include guaranteed minimum death benefits (“GMDBs”), the portion of guaranteed minimum income benefits (“GMIBs”) that require annuitization, and the life-contingent portion of guaranteed minimum withdrawal benefits (“GMWBs”). Guarantees accounted for as embedded derivatives in policyholder account balances include the non life-contingent portion of GMWBs, guaranteed minimum accumulation benefits (“GMABs”) and the portion of GMIBs that do not require annuitization. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. Other Policy-Related Balances Other policy-related balances include policy and contract claims, unearned revenue liabilities and premiums received in advance. The liability for policy and contract claims generally relates to incurred but not reported death claims, as well as claims which have been reported but not yet settled. The liability for these claims is based on the Company’s estimated ultimate cost of settling all claims. The Company derives estimates for the development of incurred but not reported claims principally from analyses of historical patterns of claims by business line. The methods used to determine these estimates are continually reviewed. Adjustments resulting from this continuous review process and differences between estimates and payments for claims are recognized in policyholder benefits and claims expense in the period in which the estimates are changed or payments are made. The unearned revenue liability relates to investment-type products and represents policy charges for services to be provided in future periods. The charges are deferred as unearned revenue and amortized using the product’s estimated gross profits, similar to deferred policy acquisition costs (“DAC”) as discussed further herein. Such amortization is recorded in universal life and investment-type product policy fees. The Company accounts for the prepayment of premiums on its individual life contracts as premiums received in advance and applies the cash received to premiums when due. Recognition of Insurance Revenues and Deposits Premiums related to traditional life and annuity contracts with life contingencies are recognized as revenues when due from policyholders. Policyholder benefits and expenses are provided to recognize profits over the estimated lives of the insurance policies. When premiums are due over a significantly shorter period than the period over which benefits are provided, any excess profit is deferred and recognized into earnings in a constant relationship to insurance in-force or, for annuities, the amount of expected future policy benefit payments. Deposits related to universal life-type and investment-type products are credited to policyholder account balances. Revenues from such contracts consist of fees for mortality, policy administration and surrender charges and are recorded in universal life and investment-type product policy fees in the period in which services are provided. Amounts that are charged to earnings include interest credited and benefit claims incurred in excess of related policyholder account balances. Premiums, policy fees, policyholder benefits and expenses are presented net of reinsurance. Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that are related directly to the successful acquisition or renewal of insurance contracts are capitalized as DAC. Such costs include: • incremental direct costs of contract acquisition, such as commissions; • the portion of an employee’s total compensation and benefits related to time spent selling, underwriting or processing the issuance of new and renewal insurance business only with respect to actual policies acquired or renewed; and • other essential direct costs that would not have been incurred had a policy not been acquired or renewed. All other acquisition-related costs, including those related to general advertising and solicitation, market research, agent training, product development, unsuccessful sales and underwriting efforts, as well as all indirect costs, are expensed as incurred. Value of business acquired (“VOBA”) is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity, and investment-type contracts in-force at the acquisition date. The estimated fair value of the acquired liabilities is based on projections, by each block of business, of future policy and contract charges, premiums, mortality, separate account performance, surrenders, operating expenses, investment returns, nonperformance risk adjustment and other factors. Actual experience on the purchased business may vary from these projections. DAC and VOBA are amortized as follows: Products: In proportion to the following over estimated lives of the contracts: • Nonparticipating and non-dividend-paying traditional contracts (term insurance) Actual and expected future gross premiums. • Fixed and variable deferred annuity contracts Actual and expected future gross profits. See Note 4 for additional information on DAC and VOBA amortization. The recovery of DAC and VOBA is dependent upon the future profitability of the related business. DAC and VOBA are aggregated on the financial statements for reporting purposes. The Company generally has two different types of sales inducements which are included in other assets: (i) the policyholder receives a bonus whereby the policyholder’s initial account balance is increased by an amount equal to a specified percentage of the customer’s deposit; and (ii) the policyholder receives a higher interest rate using a dollar cost averaging method than would have been received based on the normal general account interest rate credited. The Company defers sales inducements and amortizes them over the life of the policy using the same methodology and assumptions used to amortize DAC. The amortization of sales inducements is included in policyholder benefits and claims. Each year, or more frequently if circumstances indicate a potential recoverability issue exists, the Company reviews deferred sales inducements (“DSI”) to determine the recoverability of the asset. Value of distribution agreements acquired (“VODA”) is reported in other assets and represents the present value of expected future profits associated with the expected future business derived from the distribution agreements. The VODA associated with past business combinations is amortized over useful lives ranging from 10 to 30 years and such amortization is included in other expenses. Each year, or more frequently if circumstances indicate a possible impairment exists, the Company reviews VODA to determine whether the asset is impaired. Reinsurance For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Cessions under reinsurance agreements do not discharge the Company’s obligations as the primary insurer. The Company reviews all contractual features, including those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims. For reinsurance of existing in-force blocks of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid, and the liabilities ceded related to the underlying contracts is considered the net cost of reinsurance at the inception of the reinsurance agreement. The net cost of reinsurance is recorded as an adjustment to DAC when there is a gain at inception on the ceding entity and to other liabilities when there is a loss at inception. The net cost of reinsurance is recognized as a component of other expenses when there is a gain at inception and as policyholder benefits and claims when there is a loss and is subsequently amortized on a basis consistent with the methodology used for amortizing DAC related to the underlying reinsured contracts. Subsequent amounts paid on the reinsurance of in-force blocks, as well as amounts paid related to new business, are recorded as ceded premiums and ceded premiums, reinsurance and other receivables are established. Amounts currently recoverable under reinsurance agreements are included in premiums, reinsurance and other receivables and amounts currently payable are included in other liabilities. Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance. The funds withheld liability represents amounts withheld by the Company in accordance with the terms of the reinsurance agreements. The Company withholds the funds rather than transferring the underlying investments and, as a result, records funds withheld liability within other liabilities. The Company recognizes interest on funds withheld, included in other expenses, at rates defined by the terms of the agreement which may be contractually specified or directly related to the investment portfolio. Premiums, fees and policyholder benefits and claims are net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in other revenues. With respect to GMIBs, a portion of the directly written GMIBs are accounted for as insurance liabilities, but the associated reinsurance agreements contain embedded derivatives. These embedded derivatives are included in premiums, reinsurance and other receivables with changes in estimated fair value reported in net derivative gains (losses). If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included within premiums, reinsurance and other receivables. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on such deposits is recorded as other revenues or other expenses, as appropriate. Periodically, the Company evaluates the adequacy of the expected payments or recoveries and adjusts the deposit asset or liability through other revenues or other expenses, as appropriate. Investments Net Investment Income and Net Investment Gains (Losses) Income from investments is reported within net investment income, unless otherwise stated herein. Gains and losses on sales of investments, impairment losses and changes in valuation allowances are reported within net investment gains (losses), unless otherwise stated herein. Fixed Maturity Securities The Company’s fixed maturity securities are classified as available-for-sale (“AFS”) and are reported at their estimated fair value. Unrealized investment gains and losses on these securities are recorded as a separate component of other comprehensive income (loss) (“OCI”), net of policy-related amounts and deferred income taxes. All security transactions are recorded on a trade date basis. Investment gains and losses on sales are determined on a specific identification basis. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts and is based on the estimated economic life of the securities, which for mortgage-backed and asset-backed securities considers the estimated timing and amount of prepayments of the underlying loans. (See Note 6 “Investments — Fixed Maturity Securities AFS — Methodology for Amortization of Premium and Accretion of Discount on Structured Securities”). The amortization of premium and accretion of discount of fixed maturity securities also takes into consideration call and maturity dates. Dividends on equity securities are recognized when declared. The Company periodically evaluates fixed maturity securities for impairment. The assessment of whether impairments have occurred is based on management’s case-by-case evaluation of the underlying reasons for the decline in estimated fair value, as well as an analysis of the gross unrealized losses by severity and/or age as described in Note 6 “— Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities.” For fixed maturity securities in an unrealized loss position, an other-than-temporary impairment (“OTTI”) is recognized in earnings when it is anticipated that the amortized cost will not be recovered. When either: (i) the Company has the intent to sell the security; or (ii) it is more likely than not that the Company will be required to sell the security before recovery, the OTTI recognized in earnings is the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions exists, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected is recognized as an OTTI in earnings (“credit loss”). If the estimated fair value is less than the present value of projected future cash flows expected to be collected, this portion of OTTI related to other-than-credit factors (“noncredit loss”) is recorded in OCI. Mortgage Loans The Company disaggregates its mortgage loan investments into two portfolio segments: commercial and agricultural. The accounting policies that are applicable to both portfolio segments are presented below and the accounting policies related to each of the portfolio segments are included in Note 6 . Mortgage loans are stated at unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, and are net of valuation allowances. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts. Short-term Investments Short-term investments include securities and other investments with remaining maturities of one year or less, but greater than three months, at the time of purchase and are stated at estimated fair value or amortized cost, which approximates estimated fair value. Other Invested Assets Other invested assets consist of freestanding derivatives with positive estimated fair values which are described in “— Derivatives” below. Derivatives Freestanding Derivatives Freestanding derivatives are carried on the Company’s balance sheet either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the derivatives carrying value in other invested assets or other liabilities. If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are reported in net derivative gains (losses). Hedge Accounting To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. Hedge designation and financial statement presentation of changes in estimated fair value of the hedging derivatives are as follows: • Cash flow hedge (a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability) - effectiveness in OCI (deferred gains or losses on the derivative are reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item); ineffectiveness in net derivative gains (losses). The changes in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported on the statement of operations within interest income or interest expense to match the location of the hedged item. In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. Assessments of hedge effectiveness and measurements of ineffectiveness are also subject to interpretation and estimation and different interpretations or estimates may have a material effect on the amount reported in net income. The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument. When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the cash flows of a hedged item, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within two months of that date, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized currently in net derivative gains (losses). Deferred gains and losses of a derivative recorded in OCI pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable are recognized immediately in net derivative gains (losses). In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). Embedded Derivatives The Company sells variable annuities and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if: • the combined instrument is not accounted for in its entirety at estimated fair value with changes in estimated fair value recorded in earnings; • the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and • a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument. Such embedded derivatives are carried on the balance sheet at estimated fair value with the host contract and changes in their estimated fair value are generally reported in net derivative gains (losses). If the Company is unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income. Additionally, the Company may elect to carry an entire contract on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income if that contract contains an embedded derivative that requires bifurcation. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In most cases, the exit price and the transaction (or entry) price will be the same at initial recognition. Subsequent to initial recognition, fair values are based on unadjusted quoted prices for identical assets or liabilities in active markets that are readily and regularly obtainable. When such quoted prices are not available, fair values are based on quoted prices in markets that are not active, quoted prices for similar but not identical assets or liabilities, or other observable inputs. If these inputs are not available, or observable inputs are not determinable, unobservable inputs and/or adjustments to observable inputs requiring management judgment are used to determine the estimated fair value of assets and liabilities. Income Tax The Company joins with MetLife and its includable subsidiaries in filing a consolidated U.S. life and non-life federal income tax return in accordance with the provisions of the Internal Revenue Code of 1986, as amended. Current taxes (and the benefits of tax attributes such as losses) are allocated to the Company under the consolidated tax return regulations and a tax sharing agreement. Under the consolidated tax return regulations, MetLife has elected the “percentage method” (and 100% under such method) of reimbursing companies for tax attributes, e.g., net operating losses. As a result, 100% of tax attributes are reimbursed by MetLife to the extent that consolidated federal income tax of the consolidated federal tax return group is reduced in a year by tax attributes. On an annual basis, each of the profitable subsidiaries pays to MetLife the federal income tax which it would have paid based upon that year’s taxable income. If the Company has current or prior deductions and credits (including but not limited to losses) which reduce the consolidated tax liability of the consolidated federal tax return group, the deductions and credits are characterized as realized (or realizable) by the Company when those tax attributes are realized (or realizable) by the consolidated federal tax return group, even if the Company would not have realized the attributes on a stand-alone basis under a “wait and see” method. The Company’s accounting for income taxes represents |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | 2. Segment Information The Company is organized into two segments: Annuities and Life. In addition, the Company reports certain of its results of operations in Corporate & Other. Annuities The Annuities segment offers a variety of variable, fixed and income annuities designed to address contractholders’ needs for protected wealth accumulation on a tax-deferred basis, wealth transfer and income security. Life The Life segment previously offered insurance products and services, including term and universal life, designed to address policyholders’ needs for financial security and protected wealth transfer, which may be provided on a tax-advantaged basis. Corporate & Other Corporate & Other contains the excess capital, as well as certain charges and activities, not allocated to the segments, ancillary U.S. term life business sold direct to consumer and expenses associated with income tax audit issues. Financial Measures and Segment Accounting Policies Operating earnings is used by management to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, operating earnings is also the Company’s GAAP measure of segment performance and is reported below. Operating earnings should not be viewed as a substitute for net income (loss). The Company believes the presentation of operating earnings as the Company measures it for management purposes enhances the understanding of its performance by highlighting the results of operations and the underlying profitability drivers of the business. Operating earnings allows analysis of the Company’s performance and facilitates comparisons to industry results. Operating earnings is defined as operating revenues less operating expenses, both net of income tax. The following are excluded from total revenues in calculating operating revenues: • Net investment gains (losses); • Net derivative gains (losses) except earned income on derivatives that are hedges of investments but do not qualify for hedge accounting treatment; and • Amortization of unearned revenue related to net investment gains (losses) and net derivative gains (losses) and certain variable annuity GMIB fees (“ GMIB Fees ”). The following are excluded from total expenses in calculating operating expenses: • Amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets, benefits and hedging costs related to GMIBs (“GMIB Costs”) and market value adjustments associated with surrenders or terminations of contracts; and • Amounts related to: (i) net investment gains (losses) and net derivative gains (losses) and (ii) GMIB Fees and GMIB Costs included in amortization of deferred policy acquisition costs and v alue of business acquired. The tax impact of the adjustments mentioned above are calculated net of the U.S. statutory tax rate, which could differ from the Company’s effective tax rate. Set forth in the tables below is certain financial information with respect to the Company’s segments, as well as Corporate & Other, for the years ended December 31, 2016, 2015 and 2014 and at December 31, 2016 and 2015. The segment accounting policies are the same as those used to prepare the Company’s financial statements, except for operating earnings adjustments as defined above. In addition, segment accounting policies include the method of capital allocation described below. The internal capital model is a MetLife developed risk capital model that reflects management’s judgment and view of required capital to represent the measurement of the risk profile of the business, to meet the Company’s long term promises to clients, to service long-term obligations and to support the credit ratings of the Company. It accounts for the unique and specific nature of the risks inherent in the Company’s business. Management is responsible for the ongoing production and enhancement of the internal capital model and reviews its approach periodically to ensure that it remains consistent with emerging industry practice standards. As such, the internal capital allocation methodology in the future may differ from MetLife’s historical model. The Company allocates equity to the segments based on the internal capital model, coupled with considerations of local capital requirements, and aligns with emerging standards and consistent risk principles. Segment net investment income is credited or charged based on the level of allocated equity; however, changes in allocated equity do not impact the Company’s net investment income or net income (loss). Net investment income is based upon the actual results within a specifically identifiable investment portfolio and is allocated to segments at a rate based upon each product’s net GAAP liability, adjusted for allocated equity. Other costs are allocated to each of the segments based upon: (i) a review of the nature of such costs; (ii) time studies analyzing the amount of employee time incurred by each segment; and (iii) cost estimates included in the Company’s product pricing. Operating Results Year Ended December 31, 2016 Annuities Life Corporate Total (In thousands) Pre-tax operating earnings $ 52,855 $ 40,561 $ 9,665 $ 103,081 Provision for income tax expense (benefit) 14,623 14,197 3,014 31,834 Operating earnings $ 38,232 $ 26,364 $ 6,651 71,247 Adjustments for: Net investment gains (losses) (3,737 ) Net derivative gains (losses) 67,726 Other adjustments to net income (34,508 ) Provision for income tax (expense) benefit (10,318 ) Net income (loss) $ 90,410 Inter-segment revenues $ 70 $ (3,791 ) $ (1,555 ) Interest revenue $ 27,747 $ 17,108 $ 13,204 At December 31, 2016 Annuities Life Corporate & Other Total (In thousands) Total assets $ 6,708,803 $ 342,592 $ 581,651 $ 7,633,046 Separate account assets $ 4,758,449 $ — $ — $ 4,758,449 Separate account liabilities $ 4,758,449 $ — $ — $ 4,758,449 Operating Results Year Ended December 31, 2015 Annuities Life Corporate Total (In thousands) Pre-tax operating earnings $ 20,794 $ (60,934 ) $ 11,842 $ (28,298 ) Provision for income tax expense (benefit) 1,139 (21,327 ) 3,493 (16,695 ) Operating earnings $ 19,655 $ (39,607 ) $ 8,349 (11,603 ) Adjustments for: Net investment gains (losses) 4,399 Net derivative gains (losses) 65,000 Other adjustments to net income (16,018 ) Provision for income tax (expense) benefit (18,683 ) Net income (loss) $ 23,095 Inter-segment revenues $ 1,505 $ (36,366 ) $ (1,371 ) Interest revenue $ 23,210 $ 15,432 $ 14,516 At December 31, 2015 Annuities Life Corporate Total (In thousands) Total assets $ 6,675,617 $ 607,090 $ 493,070 $ 7,775,777 Separate account assets $ 4,792,140 $ — $ — $ 4,792,140 Separate account liabilities $ 4,792,140 $ — $ — $ 4,792,140 Operating Results Year Ended December 31, 2014 Annuities Life Corporate Total (In thousands) Pre-tax operating earnings $ 22,539 $ (7,980 ) $ 9,352 $ 23,911 Provision for income tax expense (benefit) 8,239 (2,493 ) (4,059 ) 1,687 Operating earnings $ 14,300 $ (5,487 ) $ 13,411 22,224 Adjustments for: Net investment gains (losses) 552 Net derivative gains (losses) 127,162 Other adjustments to net income (28,906 ) Provision for income tax (expense) benefit (34,583 ) Net income (loss) $ 86,449 Inter-segment revenues $ 53,368 $ (38,850 ) $ (1,221 ) Interest revenue $ 12,801 $ 14,032 $ 14,388 Reconciliation of Company operating revenues to total revenues: Years Ended December 31, 2016 2015 2014 (In thousands) Annuities $ 125,308 $ 139,102 $ 188,831 Life 86,089 56,322 59,092 Total segment 211,397 195,424 247,923 Corporate & Other 15,135 16,771 17,128 Net investment gains (losses) (3,737 ) 4,399 552 Net derivative gains (losses) 67,726 65,000 127,162 Other adjustments 14,179 14,061 9,333 Total $ 304,700 $ 295,655 $ 402,098 The following table presents total premiums, universal life and investment-type product policy fees and other revenues by major product groups of the Company’s segments, as well as Corporate & Other: Years Ended December 31, 2016 2015 2014 (In thousands) Annuity products $ 112,018 $ 130,167 $ 185,531 Life insurance products 70,913 43,145 47,800 Total $ 182,931 $ 173,312 $ 233,331 All of the Company’s premiums, universal life and investment-type product policy fees and other revenues originated in the U.S. Revenues derived from any customer did not exceed 10% of premiums, universal life and investment-type product policy fees and other revenues for the years ended December 31, 2016, 2015 and 2014. |
Insurance
Insurance | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Insurance | 3. Insurance Insurance Liabilities Insurance liabilities, including affiliated insurance liabilities on reinsurance assumed and ceded, are comprised of future policy benefits, policyholder account balances and other policy-related balances. Information regarding insurance liabilities by segment, as well as Corporate & Other, was as follows at: December 31, 2016 2015 (In thousands) Annuities $ 1,504,773 $ 1,503,640 Life 322,319 294,888 Corporate & Other 9,550 6,733 Total $ 1,836,642 $ 1,805,261 See Note 5 for discussion of affiliated reinsurance liabilities included in the table above. Future policy benefits are measured as follows: Product Type: Measurement Assumptions: Nonparticipating life Aggregate of the present value of expected future benefit payments and related expenses less the present value of expected future net premiums. Assumptions as to mortality and persistency are based upon the Company’s experience when the basis of the liability is established. Interest rate assumptions for the aggregate future policy benefit liabilities range from 3% to 5%. Traditional fixed annuities after annuitization Present value of expected future payments. Interest rate assumptions used in establishing such liabilities range from 3% to 6%. Policyholder account balances are equal to: (i) policy account values, which consist of an accumulation of gross premium payments; and (ii) credited interest, ranging from 1% to 7% , less expenses, mortality charges and withdrawals. Guarantees The Company issues variable annuity products with guaranteed minimum benefits. GMABs, the non-life-contingent portion of GMWBs and the portion of certain GMIBs that do not require annuitization are accounted for as embedded derivatives in policyholder account balances and are further discussed in Note 7 . Guarantees accounted for as insurance liabilities include: Guarantee: Measurement Assumptions: GMDBs ● A return of purchase payment upon death even if the account value is reduced to zero. ● Present value of expected death benefits in excess of the projected account balance recognizing the excess ratably over the accumulation period based on the present value of total expected assessments. ● An enhanced death benefit may be available for an additional fee. ● Assumptions are consistent with those used for amortizing DAC, and are thus subject to the same variability and risk. ● Investment performance and volatility assumptions are consistent with the historical experience of the appropriate underlying equity index, such as the Standard & Poor’s Global Ratings (“S&P”) 500 Index. ● Benefit assumptions are based on the average benefits payable over a range of scenarios. GMIBs ● After a specified period of time determined at the time of issuance of the variable annuity contract, a minimum accumulation of purchase payments, even if the account value is reduced to zero, that can be annuitized to receive a monthly income stream that is not less than a specified amount. ● Present value of expected income benefits in excess of the projected account balance at any future date of annuitization and recognizing the excess ratably over the accumulation period based on present value of total expected assessments. ● Certain contracts also provide for a guaranteed lump sum return of purchase premium in lieu of the annuitization benefit. ● Assumptions are consistent with those used for estimating GMDB liabilities. ● Calculation incorporates an assumption for the percentage of the potential annuitizations that may be elected by the contractholder. GMWBs ● A return of purchase payment via partial withdrawals, even if the account value is reduced to zero, provided that cumulative withdrawals in a contract year do not exceed a certain limit. ● Expected value of the life contingent payments and expected assessments using assumptions consistent with those used for estimating the GMDB liabilities. ● Certain contracts include guaranteed withdrawals that are life contingent. Information regarding the liabilities for guarantees (excluding base policy liabilities and embedded derivatives) relating to annuity contracts was as follows: Annuity Contracts GMDBs GMIBs Total (In thousands) Direct Balance at January 1, 2014 $ 4,775 $ 77,511 $ 82,286 Incurred guaranteed benefits 2,397 19,215 21,612 Paid guaranteed benefits (20 ) — (20 ) Balance at December 31, 2014 7,152 96,726 103,878 Incurred guaranteed benefits 1,175 20,004 21,179 Paid guaranteed benefits (238 ) — (238 ) Balance at December 31, 2015 8,089 116,730 124,819 Incurred guaranteed benefits 2,272 32,338 34,610 Paid guaranteed benefits (560 ) 1 (559 ) Balance at December 31, 2016 $ 9,801 $ 149,069 $ 158,870 Ceded Balance at January 1, 2014 $ 4,775 $ 26,526 $ 31,301 Incurred guaranteed benefits 2,397 5,961 8,358 Paid guaranteed benefits (20 ) — (20 ) Balance at December 31, 2014 7,152 32,487 39,639 Incurred guaranteed benefits 1,664 7,433 9,097 Paid guaranteed benefits (238 ) — (238 ) Balance at December 31, 2015 8,578 39,920 48,498 Incurred guaranteed benefits 2,215 11,570 13,785 Paid guaranteed benefits (560 ) — (560 ) Balance at December 31, 2016 $ 10,233 $ 51,490 $ 61,723 Net Balance at January 1, 2014 $ — $ 50,985 $ 50,985 Incurred guaranteed benefits — 13,254 13,254 Paid guaranteed benefits — — — Balance at December 31, 2014 — 64,239 64,239 Incurred guaranteed benefits (489 ) 12,571 12,082 Paid guaranteed benefits — — — Balance at December 31, 2015 (489 ) 76,810 76,321 Incurred guaranteed benefits 57 20,768 20,825 Paid guaranteed benefits — 1 1 Balance at December 31, 2016 $ (432 ) $ 97,579 $ 97,147 Information regarding the Company’s guarantee exposure was as follows at: December 31, 2016 2015 In the Event of Death At Annuitization In the Event of Death At Annuitization (Dollars in thousands) Annuity Contracts (1), (2) Variable Annuity Guarantees Total account value (3) $ 4,763,943 $ 3,969,485 $ 4,795,645 $ 4,030,025 Separate account value $ 4,753,638 $ 3,968,482 $ 4,787,624 $ 4,027,392 Net amount at risk $ 36,827 (4) $ 209,926 (5) $ 127,244 (4) $ 152,482 (5) Average attained age of contractholders 66 years 65 years 65 years 65 years ______________ (1) The Company’s annuity contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. (2) Includes direct business, but excludes offsets from hedging or reinsurance, if any. Therefore, the NARs presented reflect the economic exposures of living and death benefit guarantees associated with variable annuities, but not necessarily their impact on the Company. See Note 5 for a discussion of GMxBs which have been reinsured. (3) Includes the contractholder’s investments in the general account and separate account, if applicable. (4) Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death. (5) Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contractholders have achieved. Account balances of contracts with guarantees were invested in separate account asset classes as follows at: December 31, 2016 2015 (In thousands) Fund Groupings: Balanced $ 2,945,952 $ 2,967,098 Equity 1,403,276 1,453,921 Bond 359,993 316,704 Money Market 49,228 51,416 Total $ 4,758,449 $ 4,789,139 Separate Accounts Separate account assets and liabilities consist of pass-through separate accounts totaling $4.8 billion at both December 31, 2016 and 2015 , for which the policyholder assumes all investment risk. For each of the years ended December 31, 2016 , 2015 and 2014 , there were no investment gains (losses) on transfers of assets from the general account to the separate accounts. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Policy Acquisition Costs and Value of Business Acquired [Abstract] | |
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles | 4. Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles See Note 1 for a description of capitalized acquisition costs. Nonparticipating and Non-Dividend-Paying Traditional Contracts The Company amortizes DAC and VOBA related to these contracts (primarily term insurance) over the appropriate premium paying period in proportion to the actual and expected future gross premiums that were set at contract issue. The expected premiums are based upon the premium requirement of each policy and assumptions for mortality, persistency and investment returns at policy issuance, or policy acquisition (as it relates to VOBA), include provisions for adverse deviation, and are consistent with the assumptions used to calculate future policy benefit liabilities. These assumptions are not revised after policy issuance or acquisition unless the DAC or VOBA balance is deemed to be unrecoverable from future expected profits. Absent a premium deficiency, variability in amortization after policy issuance or acquisition is caused only by variability in premium volumes. Fixed and Variable Deferred Annuity Contracts The Company amortizes DAC and VOBA related to these contracts over the estimated lives of the contracts in proportion to actual and expected future gross profits. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The amount of future gross profits is dependent principally upon returns in excess of the amounts credited to policyholders, mortality, persistency, interest crediting rates, expenses to administer the business, creditworthiness of reinsurance counterparties, the effect of any hedges used and certain economic variables, such as inflation. Of these factors, the Company anticipates that investment returns, expenses and persistency are reasonably likely to significantly impact the rate of DAC and VOBA amortization. Each reporting period, the Company updates the estimated gross profits with the actual gross profits for that period. When the actual gross profits change from previously estimated gross profits, the cumulative DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. When actual gross profits exceed those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the actual gross profits are below the previously estimated gross profits. Each reporting period, the Company also updates the actual amount of business remaining in-force, which impacts expected future gross profits. When expected future gross profits are below those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the expected future gross profits are above the previously estimated expected future gross profits. Each period, the Company also reviews the estimated gross profits for each block of business to determine the recoverability of DAC and VOBA balances. Factors Impacting Amortization Separate account rates of return on variable deferred annuity contracts affect in-force account balances on such contracts each reporting period, which can result in significant fluctuations in amortization of DAC and VOBA. Returns that are higher than the Company’s long-term expectation produce higher account balances, which increases the Company’s future fee expectations and decreases future benefit payment expectations on minimum death and living benefit guarantees, resulting in higher expected future gross profits. The opposite result occurs when returns are lower than the Company’s long-term expectation. The Company’s practice to determine the impact of gross profits resulting from returns on separate accounts assumes that long-term appreciation in equity markets is not changed by short-term market fluctuations, but is only changed when sustained interim deviations are expected. The Company monitors these events and only changes the assumption when its long-term expectation changes. The Company also periodically reviews other long-term assumptions underlying the projections of estimated gross profits. These assumptions primarily relate to investment returns, interest crediting rates, mortality, persistency and expenses to administer business. Management annually updates assumptions used in the calculation of estimated gross profits which may have significantly changed. If the update of assumptions causes expected future gross profits to increase, DAC and VOBA amortization will generally decrease, resulting in a current period increase to earnings. The opposite result occurs when the assumption update causes expected future gross profits to decrease. Periodically, the Company modifies product benefits, features, rights or coverages that occur by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. If such modification, referred to as an internal replacement, substantially changes the contract, the associated DAC or VOBA is written off immediately through income and any new deferrable costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC or VOBA amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed. Amortization of DAC and VOBA is attributed to net investment gains (losses) and net derivative gains (losses), and to other expenses for the amount of gross profits originating from transactions other than investment gains and losses. Unrealized investment gains and losses represent the amount of DAC and VOBA that would have been amortized if such gains and losses had been recognized. Information regarding DAC and VOBA was as follows: Years Ended December 31, 2016 2015 2014 (In thousands) DAC Balance at January 1, $ 107,474 $ 204,321 $ 254,958 Capitalizations 4,976 4,768 14,009 Amortization related to: Net investment gains (losses) and net derivative gains (losses) (12,163 ) (16,372 ) (20,279 ) Other expenses (11,155 ) (87,443 ) (48,467 ) Total amortization (1) (23,318 ) (103,815 ) (68,746 ) Unrealized investment gains (losses) (4,100 ) 2,200 (2,200 ) Other — — 6,300 Balance at December 31, 85,032 107,474 204,321 VOBA Balance at January 1, 40 51 76 Amortization related to: Net investment gains (losses) and net derivative gains (losses) — 5 — Other expenses 101 (16 ) (25 ) Total amortization (1) 101 (11 ) (25 ) Balance at December 31, 141 40 51 Total DAC and VOBA Balance at December 31, $ 85,173 $ 107,514 $ 204,372 ______________ (1) See Note 5 for additional information on affiliated amortization of DAC and VOBA. Information regarding total DAC and VOBA by segment, as well as Corporate & Other, was as follows at: December 31, 2016 2015 (In thousands) Annuities $ 60,689 $ 80,686 Life 24,265 26,591 Corporate & Other 219 237 Total $ 85,173 $ 107,514 Information regarding other intangibles was as follows: Years Ended December 31, 2016 2015 2014 (In thousands) DSI Balance at January 1, $ 37,114 $ 41,176 $ 50,425 Capitalization 350 452 542 Amortization (7,017 ) (5,014 ) (9,191 ) Unrealized investment gains (losses) (800 ) 500 (600 ) Balance at December 31, $ 29,647 $ 37,114 $ 41,176 VODA Balance at January 1, $ 11,222 $ 12,616 $ 13,975 Amortization (1,360 ) (1,394 ) (1,359 ) Balance at December 31, $ 9,862 $ 11,222 $ 12,616 Accumulated amortization $ 9,652 $ 8,292 $ 6,898 The estimated future amortization expense to be reported in other expenses for the next five years is as follows: VOBA VODA (In thousands) 2017 $ 52 $ 1,283 2018 $ 46 $ 1,184 2019 $ 43 $ 1,073 2020 $ — $ 956 2021 $ — $ 841 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2016 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | 5. Reinsurance The Company enters into reinsurance agreements primarily as a purchaser of reinsurance for its various insurance products. The Company participates in reinsurance activities in order to limit losses, minimize exposure to significant risks and provide additional capacity for future growth. Accounting for reinsurance requires extensive use of assumptions and estimates, particularly related to the future performance of the underlying business and the potential impact of counterparty credit risks. The Company periodically reviews actual and anticipated experience compared to the aforementioned assumptions used to establish assets and liabilities relating to ceded and assumed reinsurance and evaluates the financial strength of counterparties to its reinsurance agreements using criteria similar to that evaluated in the security impairment process discussed in Note 6 . Annuities For annuities, the Company currently reinsures to Brighthouse Life Insurance Company (“Brighthouse Insurance”) and MLIC, 100% of the GMxBs issued in connection with variable annuities. Under these reinsurance agreements, the Company pays a reinsurance premium generally based on fees associated with the guarantees collected from policyholders, and receives reimbursement for benefits paid or accrued in excess of account values, subject to certain limitations. Life For its individual life insurance products, the Company has historically reinsured the mortality risk primarily on an excess of retention basis or on a quota share basis to MLIC. The Company currently retains up to $100,000 per life and reinsures 100% of amounts in excess of the amount the Company retains. In addition to reinsuring mortality risk as described above, the Company reinsures other risks, as well as specific coverages. Placement of reinsurance is done primarily on an automatic basis and also on a facultative basis for risks with specified characteristics. The Company evaluates its reinsurance programs routinely and may increase or decrease its retention at any time. Catastrophe Coverage The Company has exposure to catastrophes, which could contribute to significant fluctuations in the Company’s results of operations. The Company uses excess of retention and quota share reinsurance agreements to provide greater diversification of risk and minimize exposure to larger risks. Reinsurance Recoverables The Company reinsures its business through a diversified group of well-capitalized reinsurers. The Company analyzes recent trends in arbitration and litigation outcomes in disputes, if any, with its reinsurers. The Company monitors ratings and evaluates the financial strength of its reinsurers by analyzing their financial statements. In addition, the reinsurance recoverable balance due from each reinsurer is evaluated as part of the overall monitoring process. Recoverability of reinsurance recoverable balances is evaluated based on these analyses. The Company generally secures large reinsurance recoverable balances with various forms of collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit. These reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance, which at both December 31, 2016 and 2015 , were not significant. The Company has secured certain reinsurance recoverable balances with irrevocable letters of credit. The Company had $11.9 million and $11.4 million of unsecured unaffiliated reinsurance recoverable balances at December 31, 2016 and 2015 , respectively. At December 31, 2016 , the Company had $11.9 million of net unaffiliated ceded reinsurance recoverables. Of this total, $10.5 million , or 88% , were with the Company’s five largest unaffiliated ceded reinsurers, all of which were unsecured. At December 31, 2015 , the Company had $11.5 million of net unaffiliated ceded reinsurance recoverables. Of this total, $10.1 million , or 88% , were with the Company’s five largest unaffiliated ceded reinsurers, all of which were unsecured. The amounts on the statements of operations include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows: Years Ended December 31, 2016 2015 2014 (In thousands) Premiums Direct premiums $ 109,733 $ 122,110 $ 133,129 Reinsurance ceded (58,994 ) (50,238 ) (51,647 ) Net premiums $ 50,739 $ 71,872 $ 81,482 Universal life and investment-type product policy fees Direct universal life and investment-type product policy fees $ 106,830 $ 114,850 $ 119,690 Reinsurance ceded (3,830 ) (3,945 ) (15,146 ) Net universal life and investment-type product policy fees $ 103,000 $ 110,905 $ 104,544 Other revenues Direct other revenues $ 12,494 $ 12,754 $ 11,422 Reinsurance ceded 16,698 (22,219 ) 35,883 Net other revenues $ 29,192 $ (9,465 ) $ 47,305 Policyholder benefits and claims Direct policyholder benefits and claims $ 128,420 $ 138,574 $ 129,663 Reinsurance ceded (76,440 ) (89,174 ) (52,758 ) Net policyholder benefits and claims $ 51,980 $ 49,400 $ 76,905 Amortization of deferred policy acquisition costs and value of business acquired Direct amortization of deferred policy acquisition costs and value of business acquired $ 48,447 $ 104,028 $ 69,991 Reinsurance ceded (25,230 ) (202 ) (1,220 ) Net amortization of deferred policy acquisition costs and value of business acquired $ 23,217 $ 103,826 $ 68,771 Other expenses Direct other expenses $ 56,905 $ 63,100 $ 77,209 Reinsurance ceded 122 2,113 2,358 Net other expenses $ 57,027 $ 65,213 $ 79,567 The amounts on the balance sheets include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows at: December 31, 2016 2015 Direct Ceded Total Direct Ceded Total (In thousands) Assets Premiums, reinsurance and other receivables $ 19,005 $ 335,934 $ 354,939 $ 13,487 $ 1,526,314 $ 1,539,801 Deferred policy acquisition costs and value of business acquired 89,538 (4,365 ) 85,173 134,005 (26,491 ) 107,514 Total assets $ 108,543 $ 331,569 $ 440,112 $ 147,492 $ 1,499,823 $ 1,647,315 Liabilities Other policy-related balances $ 7,285 $ — $ 7,285 $ 9,583 $ (1,023 ) $ 8,560 Other liabilities 10,637 101,804 112,441 14,335 432,302 446,637 Total liabilities $ 17,922 $ 101,804 $ 119,726 $ 23,918 $ 431,279 $ 455,197 Reinsurance agreements that do not expose the Company to a reasonable possibility of a significant loss from insurance risk are recorded using the deposit method of accounting. Deposit assets and deposit liabilities, if any, are the result of affiliated reinsurance transactions. See “— Related Party Reinsurance Transactions.” Related Party Reinsurance Transactions The Company has reinsurance agreements with certain of MetLife, Inc.’s subsidiaries, including MLIC, Brighthouse Insurance and MetLife Reinsurance Company of Vermont (“MRV”), all of which are related parties. Information regarding the significant effects of affiliated reinsurance included on the statements of operations was as follows: Years Ended December 31, 2016 2015 2014 (In thousands) Premiums Reinsurance ceded $ (44,259 ) $ (37,119 ) $ (39,455 ) Universal life and investment-type product policy fees Reinsurance ceded $ (3,645 ) $ (3,784 ) $ (15,008 ) Other revenues Reinsurance ceded $ 16,701 $ (22,212 ) $ 35,881 Policyholder benefits and claims Reinsurance ceded $ (71,948 ) $ (76,410 ) $ (48,882 ) Amortization of deferred policy acquisition costs and value of business acquired Reinsurance ceded $ (25,203 ) $ (172 ) $ (1,101 ) Other expenses Reinsurance ceded $ 114 $ 2,060 $ 2,290 Information regarding the significant effects of ceded affiliated reinsurance included on the balance sheets was as follows at: December 31, 2016 2015 (In thousands) Assets Premiums, reinsurance and other receivables $ 321,868 $ 1,513,398 Deferred policy acquisition costs and value of business acquired (4,309 ) (26,429 ) Total assets $ 317,559 $ 1,486,969 Liabilities Other policy-related balances $ — $ (1,023 ) Other liabilities 99,641 430,846 Total liabilities $ 99,641 $ 429,823 The Company ceded risks to an affiliate related to guaranteed minimum benefit guarantees written directly by the Company. These ceded reinsurance agreements contain embedded derivatives and changes in their estimated fair value are included within net derivative gains (losses). The embedded derivatives associated with the cessions are included within premiums, reinsurance and other receivables and were $211.2 million and $185.0 million at December 31, 2016 and 2015 , respectively. Net derivative gains (losses) associated with the embedded derivatives were $24.2 million , $12.5 million and $88.4 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. The Company ceded 100% of certain variable annuities including guaranteed minimum benefit guarantees on a modified coinsurance basis to MLIC. Certain contractual features of this agreement qualify as embedded derivatives, which are separately accounted for at estimated fair value on the Company’s balance sheets. The embedded derivatives associated with this cession are included within premiums, reinsurance and other receivables and were $168.1 million and $121.9 million at December 31, 2016 and 2015 , respectively. Net derivative gains (losses) associated with the embedded derivatives were $46.2 million , $54.1 million and $38.1 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. In November 2016, the Company recaptured certain single premium deferred annuity contracts previously reinsured to MLIC, an affiliate. This recapture resulted in an increase in investments and cash and cash equivalents of $933.4 million and an increase in DAC of $22.9 million , offset by a decrease in premiums, reinsurance and other receivables of $922.6 million . The Company recognized a gain of approximately $21.9 million , net of income tax, as a result of this recapture. In December 2016, the Company recaptured level premium term business previously reinsured to MRV, an affiliate. This recapture resulted in a decrease to premiums, reinsurance and other receivables of $294.8 million and a decrease in other liabilities of $334.6 million . The Company recognized a gain of $24.2 million , net of income tax, as a result of this recapture. The Company has secured certain reinsurance recoverable balances with various forms of collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit. The Company had $199.0 million and $1.2 billion of unsecured affiliated reinsurance recoverable balances at December 31, 2016 and 2015 , respectively. Affiliated reinsurance agreements that do not expose the Company to a reasonable possibility of a significant loss from insurance risk are recorded using the deposit method of accounting. The deposit assets on affiliated reinsurance were $28.0 million and $1.0 billion at December 31, 2016 and 2015 , respectively. There were no deposit liabilities on affiliated reinsurance at both December 31, 2016 and 2015 . |
Investments
Investments | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 6. Investments See Note 8 for information about the fair value hierarchy for investments and the related valuation methodologies. Investment Risks and Uncertainties Investments are exposed to the following primary sources of risk: credit, interest rate, liquidity, market valuation, currency and real estate risk. The financial statement risks, stemming from such investment risks, are those associated with the determination of estimated fair values, the diminished ability to sell certain investments in times of strained market conditions, the recognition of impairments, the recognition of income on certain investments and the potential consolidation of VIEs. The use of different methodologies, assumptions and inputs relating to these financial statement risks may have a material effect on the amounts presented within the financial statements. The determination of valuation allowances and impairments is highly subjective and is based upon periodic evaluations and assessments of known and inherent risks associated with the respective asset class. Such evaluations and assessments are revised as conditions change and new information becomes available. The recognition of income on certain investments (e.g. structured securities, including mortgage-backed securities, asset-backed securities (“ABS”) and certain structured investment transactions) is dependent upon certain factors such as prepayments and defaults, and changes in such factors could result in changes in amounts to be earned. Fixed Maturity AFS Fixed Maturity AFS by Sector The following table presents the fixed maturity securities AFS by sector. Redeemable preferred stock is reported within U.S. corporate and foreign corporate fixed maturity securities. Included within fixed maturity securities are structured securities including residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and ABS (collectively, “Structured Securities”). December 31, 2016 December 31, 2015 Amortized Gross Unrealized Estimated Amortized Gross Unrealized Estimated Gains Temporary OTTI Gains Temporary OTTI (In thousands) Fixed maturity securities U.S. corporate $ 709,694 $ 20,400 $ 8,283 $ — $ 721,811 $ 553,881 $ 15,607 $ 17,554 $ — $ 551,934 U.S. government and agency 410,504 9,560 13,519 — 406,545 105,700 10,549 1,291 — 114,958 RMBS 238,676 2,033 2,322 — 238,387 103,898 1,461 884 — 104,475 Foreign corporate 237,412 2,998 8,070 — 232,340 122,578 2,335 8,463 — 116,450 CMBS 177,719 2,724 1,487 — 178,956 131,662 1,450 1,003 — 132,109 State and political subdivision 52,739 4,345 764 — 56,320 41,557 3,995 404 — 45,148 ABS 26,695 152 177 — 26,670 17,930 242 208 — 17,964 Foreign government 17,215 543 273 — 17,485 3,977 327 127 — 4,177 Total fixed maturity securities $ 1,870,654 $ 42,755 $ 34,895 $ — $ 1,878,514 $ 1,081,183 $ 35,966 $ 29,934 $ — $ 1,087,215 The Company did not hold non-income producing fixed maturity securities at both December 31, 2016 and 2015 . Methodology for Amortization of Premium and Accretion of Discount on Structured Securities Amortization of premium and accretion of discount on Structured Securities considers the estimated timing and amount of prepayments of the underlying loans. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for Structured Securities are estimated using inputs obtained from third-party specialists and based on management’s knowledge of the current market. For credit-sensitive Structured Securities and certain prepayment-sensitive securities, the effective yield is recalculated on a prospective basis. For all other Structured Securities, the effective yield is recalculated on a retrospective basis. Maturities of Fixed Maturity Securities The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at December 31, 2016 : Due in One Year or Less Due After One Year Through Five Years Due After Five Years Through Ten Years Due After Ten Years Structured Securities Total Fixed Maturity Securities (In thousands) Amortized cost $ 16,980 $ 297,783 $ 610,139 $ 502,662 $ 443,090 $ 1,870,654 Estimated fair value $ 17,268 $ 307,889 $ 605,382 $ 503,962 $ 444,013 $ 1,878,514 Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. Structured Securities are shown separately, as they are not due at a single maturity. Continuous Gross Unrealized Losses for Fixed Maturity Securities AFS by Sector The following table presents the estimated fair value and gross unrealized losses of fixed maturity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position at: December 31, 2016 December 31, 2015 Less than 12 Months Equal to or Greater Less than 12 Months Equal to or Greater Estimated Gross Estimated Gross Estimated Gross Estimated Gross (Dollars in thousands) Fixed maturity securities U.S. corporate $ 250,559 $ 6,667 $ 17,745 $ 1,616 $ 257,983 $ 15,821 $ 14,836 $ 1,733 U.S. government and agency 342,150 13,519 — — 34,465 1,291 — — RMBS 137,470 2,089 6,822 233 30,330 641 3,396 243 Foreign corporate 129,093 3,541 22,965 4,529 48,866 4,584 22,448 3,879 CMBS 42,661 1,068 3,729 419 67,578 1,003 — — State and political subdivision 20,709 764 — — 3,955 69 4,665 335 ABS 17,504 177 — — 8,690 208 — — Foreign government 7,189 148 868 125 854 127 — — Total fixed maturity securities $ 947,335 $ 27,973 $ 52,129 $ 6,922 $ 452,721 $ 23,744 $ 45,345 $ 6,190 Total number of securities in an unrealized loss position 203 35 160 19 Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities Evaluation and Measurement Methodologies Management considers a wide range of factors about the security issuer and uses its best judgment in evaluating the cause of the decline in the estimated fair value of the security and in assessing the prospects for near-term recovery. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the impairment evaluation process include, but are not limited to: (i) the length of time and the extent to which the estimated fair value has been below amortized cost; (ii) the potential for impairments when the issuer is experiencing significant financial difficulties; (iii) the potential for impairments in an entire industry sector or sub-sector; (iv) the potential for impairments in certain economically depressed geographic locations; (v) the potential for impairments where the issuer, series of issuers or industry has suffered a catastrophic loss or has exhausted natural resources; (vi) whether the Company has the intent to sell or will more likely than not be required to sell a particular security before the decline in estimated fair value below amortized cost recovers; (vii) with respect to Structured Securities, changes in forecasted cash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying assets backing a particular security, and the payment priority within the tranche structure of the security; (viii) the potential for impairments due to weakening of foreign currencies on non-functional currency denominated fixed maturity securities that are near maturity; and (ix) other subjective factors, including concentrations and information obtained from regulators and rating agencies. The methodology and significant inputs used to determine the amount of credit loss on fixed maturity securities are as follows: • The Company calculates the recovery value by performing a discounted cash flow analysis based on the present value of future cash flows. The discount rate is generally the effective interest rate of the security prior to impairment. • When determining collectability and the period over which value is expected to recover, the Company applies considerations utilized in its overall impairment evaluation process which incorporates information regarding the specific security, fundamentals of the industry and geographic area in which the security issuer operates, and overall macroeconomic conditions. Projected future cash flows are estimated using assumptions derived from management’s best estimates of likely scenario-based outcomes after giving consideration to a variety of variables that include, but are not limited to: payment terms of the security; the likelihood that the issuer can service the interest and principal payments; the quality and amount of any credit enhancements; the security’s position within the capital structure of the issuer; possible corporate restructurings or asset sales by the issuer; and changes to the rating of the security or the issuer by rating agencies. • Additional considerations are made when assessing the unique features that apply to certain Structured Securities including, but not limited to: the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying loans or assets backing a particular security, and the payment priority within the tranche structure of the security. • When determining the amount of the credit loss for U.S. and foreign corporate securities, state and political subdivision securities and foreign government securities, the estimated fair value is considered the recovery value when available information does not indicate that another value is more appropriate. When information is identified that indicates a recovery value other than estimated fair value, management considers in the determination of recovery value the same considerations utilized in its overall impairment evaluation process as described above, as well as any private and public sector programs to restructure such securities. The amortized cost of fixed maturity securities is adjusted for OTTI in the period in which the determination is made. The Company does not change the revised cost basis for subsequent recoveries in value. In periods subsequent to the recognition of OTTI on a fixed maturity security, the Company accounts for the impaired security as if it had been purchased on the measurement date of the impairment. Accordingly, the discount (or reduced premium) based on the new cost basis is accreted over the remaining term of the fixed maturity security in a prospective manner based on the amount and timing of estimated future cash flows. Current Period Evaluation Based on the Company’s current evaluation of its AFS securities in an unrealized loss position in accordance with its impairment policy, and the Company’s current intentions and assessments (as applicable to the type of security) about holding, selling and any requirements to sell these securities, the Company concluded that these securities were not other-than-temporarily impaired at December 31, 2016 . Future OTTI will depend primarily on economic fundamentals, issuer performance (including changes in the present value of future cash flows expected to be collected), changes in credit ratings, collateral valuation, interest rates and credit spreads. If economic fundamentals deteriorate or if there are adverse changes in the above factors, OTTI may be incurred in upcoming periods. Gross unrealized losses on fixed maturity securities increased $5.0 million during the year ended December 31, 2016 to $34.9 million . The increase in gross unrealized losses for the year ended December 31, 2016 , was primarily attributable to an increase in interest rates and, to a lesser extent, the impact of weakening foreign currencies on non-functional currency denominated fixed maturity securities, partially offset by narrowing credit spreads. At December 31, 2016 , there were no gross unrealized losses from fixed maturity securities with an unrealized loss position of 20% or more of amortized cost for six months or greater. Mortgage Loans Mortgage Loans by Portfolio Segment Mortgage loans are summarized as follows at: December 31, 2016 2015 Carrying % of Carrying % of (Dollars in thousands) Mortgage loans Commercial $ 286,002 70.4 % $ 120,946 85.6 % Agricultural 121,858 30.0 20,972 14.8 Subtotal 407,860 100.4 141,918 100.4 Valuation allowances (1,775 ) (0.4 ) (640 ) (0.4 ) Total mortgage loans, net $ 406,085 100.0 % $ 141,278 100.0 % The Company purchases unaffiliated mortgage loans under a master participation agreement from an affiliate, simultaneously with the affiliate’s origination or acquisition of mortgage loans. The aggregate amount of unaffiliated mortgage loan participation interests purchased by the Company from an affiliate during the years ended December 31, 2016 , 2015 and 2014 were $100.2 million , $44.9 million and $10.0 million , respectively. In connection with the mortgage loan participations, the affiliate collected mortgage loan principal and interest payments on the Company’s behalf and the affiliate remitted such payments to the Company in the amount of $63.7 million , $30.3 million and $14.7 million during the years ended December 31, 2016 , 2015 and 2014 , respectively. Mortgage Loans, Valuation Allowance and Impaired Loans by Portfolio Segment At both December 31, 2016 and 2015 , the Company had no impaired mortgage loans, all mortgage loans were evaluated collectively for credit losses and the valuation allowances were maintained primarily for commercial mortgage loans. Valuation Allowance Rollforward by Portfolio Segment The changes in the valuation allowance, by portfolio segment, were as follows: Commercial Agricultural Total (In thousands) Balance at January 1, 2014 $ 450 $ 33 $ 483 Provision (release) 31 (2 ) 29 Balance at December 31, 2014 481 31 512 Provision (release) 97 31 128 Balance at December 31, 2015 578 62 640 Provision (release) 841 294 1,135 Balance at December 31, 2016 $ 1,419 $ 356 $ 1,775 Valuation Allowance Methodology Mortgage loans are considered to be impaired when it is probable that, based upon current information and events, the Company will be unable to collect all amounts due under the loan agreement. Specific valuation allowances are established using the same methodology for both portfolio segments as the excess carrying value of a loan over either (i) the present value of expected future cash flows discounted at the loan’s original effective interest rate, (ii) the estimated fair value of the loan’s underlying collateral if the loan is in the process of foreclosure or otherwise collateral dependent, or (iii) the loan’s observable market price. A common evaluation framework is used for establishing non-specific valuation allowances for both loan portfolio segments; however, a separate non-specific valuation allowance is calculated and maintained for each loan portfolio segment that is based on inputs unique to each loan portfolio segment. Non-specific valuation allowances are established for pools of loans with similar risk characteristics where a property-specific or market-specific risk has not been identified, but for which the Company expects to incur a credit loss. These evaluations are based upon several loan portfolio segment-specific factors, including the Company’s experience for loan losses, defaults and loss severity, and loss expectations for loans with similar risk characteristics. These evaluations are revised as conditions change and new information becomes available. Commercial and Agricultural Mortgage Loan Portfolio Segments The Company typically uses several years of historical experience in establishing non-specific valuation allowances which captures multiple economic cycles. For evaluations of commercial mortgage loans, in addition to historical experience, management considers factors that include the impact of a rapid change to the economy, which may not be reflected in the loan portfolio, and recent loss and recovery trend experience as compared to historical loss and recovery experience. For evaluations of agricultural mortgage loans, in addition to historical experience, management considers factors that include increased stress in certain sectors, which may be evidenced by higher delinquency rates, or a change in the number of higher risk loans. On a quarterly basis, management incorporates the impact of these current market events and conditions on historical experience in determining the non-specific valuation allowance established for commercial and agricultural mortgage loans. All commercial mortgage loans are reviewed on an ongoing basis which may include an analysis of the property financial statements and rent roll, lease rollover analysis, property inspections, market analysis, estimated valuations of the underlying collateral, loan-to-value ratios, debt service coverage ratios, and tenant creditworthiness. The monitoring process focuses on higher risk loans, which include those that are classified as restructured, delinquent or in foreclosure, as well as loans with higher loan-to-value ratios and lower debt service coverage ratios. All agricultural mortgage loans are monitored on an ongoing basis. The monitoring process for agricultural mortgage loans is generally similar to the commercial mortgage loan monitoring process, with a focus on higher risk loans, including reviews on a geographic and property-type basis. Higher risk loans are reviewed individually on an ongoing basis for potential credit loss and specific valuation allowances are established using the methodology described above. Quarterly, the remaining loans are reviewed on a pool basis by aggregating groups of loans that have similar risk characteristics for potential credit loss, and non-specific valuation allowances are established as described above using inputs that are unique to each segment of the loan portfolio. For commercial mortgage loans, the primary credit quality indicator is the debt service coverage ratio, which compares a property’s net operating income to amounts needed to service the principal and interest due under the loan. Generally, the lower the debt service coverage ratio, the higher the risk of experiencing a credit loss. The Company also reviews the loan-to-value ratio of its commercial mortgage loan portfolio. Loan-to-value ratios compare the unpaid principal balance of the loan to the estimated fair value of the underlying collateral. Generally, the higher the loan-to-value ratio, the higher the risk of experiencing a credit loss. The debt service coverage ratio and the values utilized in calculating the ratio are updated annually on a rolling basis, with a portion of the portfolio updated each quarter. In addition, the loan-to-value ratio is routinely updated for all but the lowest risk loans as part of the Company’s ongoing review of its commercial mortgage loan portfolio. For agricultural mortgage loans, the Company’s primary credit quality indicator is the loan-to-value ratio. The values utilized in calculating this ratio are developed in connection with the ongoing review of the agricultural mortgage loan portfolio and are routinely updated. Credit Quality of Commercial Mortgage Loans The credit quality of commercial mortgage loans was as follows at: Recorded Investment Debt Service Coverage Ratios Total % of > 1.20x 1.00x - 1.20x < 1.00x (Dollars in thousands) December 31, 2016 Loan-to-value ratios Less than 65% $ 259,711 $ 15,614 $ 999 $ 276,324 96.6 % 65% to 75% 9,678 — — 9,678 3.4 Total $ 269,389 $ 15,614 $ 999 $ 286,002 100.0 % December 31, 2015 Loan-to-value ratios Less than 65% $ 111,988 $ 1,861 $ 5,670 $ 119,519 98.8 % 65% to 75% — — 1,427 1,427 1.2 Total $ 111,988 $ 1,861 $ 7,097 $ 120,946 100.0 % Credit Quality of Agricultural Mortgage Loans The credit quality of agricultural mortgage loans was as follows at: December 31, 2016 2015 Recorded % of Recorded % of (Dollars in thousands) Loan-to-value ratios Less than 65% $ 119,974 98.4 % $ 20,022 95.5 % 65% to 75% 1,884 1.6 950 4.5 Total $ 121,858 100.0 % $ 20,972 100.0 % Past Due and Nonaccrual Mortgage Loans The Company has a high quality, well performing mortgage loan portfolio, with all mortgage loans classified as performing at both December 31, 2016 and 2015 . The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial mortgage loans – 60 days and agricultural mortgage loans – 90 days. The Company had no mortgage loans past due and no mortgage loans in nonaccrual status at both December 31, 2016 and 2015 . Mortgage Loans Modified in a Troubled Debt Restructuring The Company may grant concessions related to borrowers experiencing financial difficulties which are classified as troubled debt restructurings. Generally, the types of concessions include: reduction of the contractual interest rate, extension of the maturity date at an interest rate lower than current market interest rates, and/or a reduction of accrued interest. The amount, timing and extent of the concessions granted are considered in determining any impairment or changes in the specific valuation allowance. There were no mortgage loans modified in a troubled debt restructuring during both the years ended December 31, 2016 and 2015 . Cash Equivalents The carrying value of cash equivalents, which includes securities and other investments with an original or remaining maturity of three months or less at the time of purchase, was $9.2 million and $5.2 million at December 31, 2016 and 2015 , respectively. Net Unrealized Investment Gains (Losses) Unrealized investment gains (losses) on fixed maturity securities AFS and the effect on DAC, DSI and future policy benefits, that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in accumulated other comprehensive income (loss) (“AOCI”). The components of net unrealized investment gains (losses), included in AOCI, were as follows: Years Ended December 31, 2016 2015 2014 (In thousands) Fixed maturity securities $ 7,862 $ 6,028 $ 64,081 Derivatives 4,718 3,189 429 Subtotal 12,580 9,217 64,510 Amounts allocated from: DAC and DSI (5,800 ) (900 ) (3,600 ) Deferred income tax benefit (expense) (2,373 ) (2,911 ) (21,319 ) Net unrealized investment gains (losses) $ 4,407 $ 5,406 $ 39,591 The changes in net unrealized investment gains (losses) were as follows: Years Ended December 31, 2016 2015 2014 (In thousands) Balance at January 1, $ 5,406 $ 39,591 $ 9,567 Unrealized investment gains (losses) during the year 3,363 (55,293 ) 48,991 Unrealized investment gains (losses) relating to: DAC and DSI (4,900 ) 2,700 (2,800 ) Deferred income tax benefit (expense) 538 18,408 (16,167 ) Balance at December 31, $ 4,407 $ 5,406 $ 39,591 Change in net unrealized investment gains (losses) $ (999 ) $ (34,185 ) $ 30,024 Concentrations of Credit Risk There were no investments in any counterparty that were greater than 10% of the Company’s stockholder’s equity, other than the U.S. government and its agencies, at both December 31, 2016 and 2015 . Invested Assets on Deposit Invested assets on deposit are presented below at estimated fair value for fixed maturity securities at: December 31, 2016 2015 (In thousands) Invested assets on deposit (regulatory deposits) $ 1,507 $ 1,534 Variable Interest Entities The Company has invested in certain entities that are VIEs. In certain instances, the Company may hold both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, it would be deemed the primary beneficiary or consolidator of the entity. The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. Consolidated VIEs There were no VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at either December 31, 2016 or 2015 . Unconsolidated VIEs The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at: December 31, 2016 2015 Carrying Maximum Carrying Maximum (In thousands) Fixed maturity securities AFS: Structured Securities (2) $ 444,013 $ 444,013 $ 254,548 $ 254,548 Foreign corporate 5,884 5,884 — — Total $ 449,897 $ 449,897 $ 254,548 $ 254,548 _____________ (1) The maximum exposure to loss relating to fixed maturity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. (2) For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity. Net Investment Income The components of net investment income were as follows: Years Ended December 31, 2016 2015 2014 (In thousands) Investment income: Fixed maturity securities $ 50,386 $ 47,069 $ 35,301 Mortgage loans 8,734 6,904 6,658 Cash, cash equivalents and short-term investments 102 38 32 Other 516 401 159 Subtotal 59,738 54,412 42,150 Less: Investment expenses 1,958 1,468 1,097 Net investment income $ 57,780 $ 52,944 $ 41,053 See “— Related Party Investment Transactions” for discussion of affiliated investment expenses. Net Investment Gains (Losses) Components of Net Investment Gains (Losses) The components of net investment gains (losses) were as follows: Years Ended December 31, 2016 2015 2014 (In thousands) Total gains (losses) on fixed maturity securities: Total OTTI losses recognized: U.S. and foreign corporate securities — by industry: Industrial $ (870 ) $ — $ — OTTI losses on fixed maturity securities recognized in earnings (870 ) — — Fixed maturity securities — net gains (losses) on sales and disposals (1,884 ) 4,547 599 Total gains (losses) on fixed maturity securities (2,754 ) 4,547 599 Equity securities - net gains (losses) on sales and disposals 6 — — Mortgage loans (1,129 ) (146 ) (27 ) Other 140 (2 ) (20 ) Total net investment gains (losses) $ (3,737 ) $ 4,399 $ 552 Gains (losses) from foreign currency transactions included within net investment gains (losses) were ($54) thousand , $458 thousand and ($12) thousand for the years ended December 31, 2016 , 2015 and 2014 , respectively. Sales or Disposals and Impairments of Fixed Maturity Securities Investment gains and losses on sales of securities are determined on a specific identification basis. Proceeds from sales or disposals of fixed maturity securities and the components of fixed maturity securities net investment gains (losses) were as shown in the table below. Years Ended December 31, 2016 2015 2014 2016 2015 2014 Fixed Maturity Securities Equity Securities (In thousands) Proceeds $ 74,657 $ 292,993 $ 286,258 $ 183 $ — $ — Gross investment gains $ 1,006 $ 8,204 $ 1,633 $ 6 $ — $ — Gross investment losses (2,890 ) (3,657 ) (1,034 ) — — — OTTI losses (870 ) — — — — — Net investment gains (losses) $ (2,754 ) $ 4,547 $ 599 $ 6 $ — $ — Related Party Investment Transactions During the year ended December 31, 2016, the Company transferred invested assets to affiliates with an estimated fair value of $1.5 million and amortized cost of $1.4 million . Net investment gains (losses) recognized on these transfers was $64 thousand . In November 2016, the Company received a transfer of investments and cash and cash equivalents totaling $933.4 million for the recapture of risks related to certain single premium deferred annuity contracts previously reinsured to MLIC, an affiliate. See Note 5 for additional information related to this transfer. The Company receives investment administrative services from an affiliate. The related investment administrative service charges were $1.9 million , $1.4 million and $1.1 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. See “— Mortgage Loans — Mortgage Loans by Portfolio Segment” for discussion of mortgage loan participation agreements with an affiliate. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 7. Derivatives Accounting for Derivatives See Note 1 for a description of the Company’s accounting policies for derivatives and Note 8 for information about the fair value hierarchy for derivatives. Derivative Strategies The Company is exposed to various risks relating to its ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market. The Company uses a variety of strategies to manage these risks, including the use of derivatives. Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are bilateral contracts between two counterparties (“OTC-bilateral”). The Company primarily uses foreign currency swaps. Foreign Currency Exchange Rate Derivatives The Company uses foreign currency swaps to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets denominated in foreign currencies. In a foreign currency swap transaction, the Company agrees with another party to exchange, at specified intervals, the difference between one currency and another at a fixed exchange rate, generally set at inception, calculated by reference to an agreed upon notional amount. The notional amount of each currency is exchanged at the inception and termination of the currency swap by each party. The Company utilizes foreign currency swaps in cash flow and non-qualifying hedging relationships. Primary Risks Managed by Derivatives The following table presents the gross notional amount, estimated fair value and primary underlying risk exposure of the Company’s derivatives, excluding embedded derivatives, held at: Primary Underlying Risk Exposure December 31, 2016 2015 Estimated Fair Value Estimated Fair Value Gross Assets Liabilities Gross Assets Liabilities (In thousands) Derivatives Designated as Hedging Instruments Cash flow hedges: Foreign currency swaps Foreign currency exchange rate $ 33,930 $ 4,947 $ — $ 32,389 $ 3,386 $ — Derivatives Not Designated or Not Qualifying as Hedging Instruments Foreign currency swaps Foreign currency exchange rate 14,063 3,709 — 14,063 1,595 — Total $ 47,993 $ 8,656 $ — $ 46,452 $ 4,981 $ — Net Derivative Gains (Losses) The components of net derivative gains (losses) were as follows: Years Ended December 31, 2016 2015 2014 (In thousands) Freestanding derivatives and hedging gains (losses) (1) $ 1,647 $ 1,284 $ 2,032 Embedded derivatives gains (losses) 66,079 63,716 125,130 Total net derivative gains (losses) $ 67,726 $ 65,000 $ 127,162 ______________ (1) Includes foreign currency transaction gains (losses) on hedged items in cash flow and non-qualifying hedging relationships, which are not presented elsewhere in this note. The Company recognized net investment income from settlement payments related to qualifying hedges of $581 thousand , $394 thousand and $111 thousand for the years ended December 31, 2016 , 2015 and 2014 , respectively. The Company recognized net derivative gains (losses) from settlement payments related to non-qualifying hedges of $279 thousand , $215 thousand and $168 thousand for the years ended December 31, 2016 , 2015 and 2014 , respectively. Non-qualifying Derivatives and Derivatives for Purposes Other Than Hedging The following table presents the amount and location of gains (losses) recognized in income for derivatives that were not designated or qualifying as hedging instruments: Net Derivative Gains (Losses) (In thousands) Year Ended December 31, 2016 Foreign currency exchange rate derivatives $ 2,114 Total $ 2,114 Year Ended December 31, 2015 Foreign currency exchange rate derivatives $ 1,557 Total $ 1,557 Year Ended December 31, 2014 Foreign currency exchange rate derivatives $ 2,172 Total $ 2,172 Cash Flow Hedges The Company designates and accounts for foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated assets, as cash flow hedges, when they have met the requirements of cash flow hedging. In certain instances, the Company discontinued cash flow hedge accounting because the forecasted transactions were no longer probable of occurring. Because certain of the forecasted transactions also were not probable of occurring within two months of the anticipated date, the Company reclassified amounts from AOCI into net derivative gains (losses). These amounts were $49 thousand for the year ended December 31, 2016 . For both the years ended 2015 and 2014 , there were no amounts reclassified into net derivative gains (losses) related to such discontinued cash flow hedges. There were no hedged forecasted transactions, other than the receipt or payment of variable interest payments, for both the years ended December 31, 2016 , and 2015 . At December 31, 2016 and 2015 , the balance in AOCI associated with foreign currency swaps designated and qualifying as cash flow hedges was $4.7 million and $3.2 million , respectively. For the years ended December 31, 2016 , 2015 and 2014 , $1.6 million , $2.8 million and $1.3 million of gains (losses), respectively, were deferred in AOCI related to foreign currency swaps. For the year ended December 31, 2016 , $55 thousand was reclassified into net derivative gains (losses) related to foreign currency swaps. For the year ended December 31, 2015, there were no amounts reclassified into net derivative gains (losses). For the year ended December 31, 2014, the amount reclassified into net derivative gains (losses) related to foreign currency swaps was not significant. For the year ended December 31, 2016 , $3 thousand was recognized in net derivative gains (losses) representing the ineffective portion of all cash flow hedges. For both of the years ended December 31, 2015 and 2014 , the amounts the Company recognized in net derivative gains (losses) representing the ineffective portion of all cash flow hedges were not significant. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. As of December 31, 2016 , the Company expects to reclassify $521 thousand of deferred net gains (losses) on derivatives in AOCI to earnings within the next 12 months. Credit Risk on Freestanding Derivatives The Company may be exposed to credit-related losses in the event of nonperformance by its counterparties to derivatives. Generally, the current credit exposure of the Company’s derivatives is limited to the net positive estimated fair value of derivatives at the reporting date after taking into consideration the existence of master netting or similar agreements and any collateral received pursuant to such agreements. The Company manages its credit risk related to derivatives by entering into transactions with creditworthy counterparties and establishing and monitoring exposure limits. The Company’s OTC-bilateral derivative transactions are generally governed by International Swaps and Derivatives Association, Inc. (“ISDA”) Master Agreements which provide for legally enforceable set-off and close-out netting of exposures to specific counterparties in the event of early termination of a transaction, which includes, but is not limited to, events of default and bankruptcy. In the event of an early termination, the Company is permitted to set off receivables from the counterparty against payables to the same counterparty arising out of all included transactions. Substantially all of the Company’s ISDA Master Agreements also include Credit Support Annex provisions which require both the pledging and accepting of collateral in connection with its OTC-bilateral derivatives. See Note 8 for a description of the impact of credit risk on the valuation of derivatives. The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: December 31, 2016 2015 Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement Assets Liabilities Assets Liabilities (In thousands) Gross estimated fair value of derivatives: OTC-bilateral (1) $ 8,850 $ — $ 5,137 $ — Total gross estimated fair value of derivatives (1) 8,850 — 5,137 — Amounts offset on the balance sheets — — — — Estimated fair value of derivatives presented on the balance sheets (1) 8,850 — 5,137 — Gross amounts not offset on the balance sheets: Gross estimated fair value of derivatives: (2) OTC-bilateral — — — — Cash collateral: (3) OTC-bilateral (8,672 ) — (3,300 ) — Securities collateral: (4) OTC-bilateral — — (560 ) — Net amount after application of master netting agreements and collateral $ 178 $ — $ 1,277 $ — ______________ (1) At December 31, 2016 and 2015 , derivative assets included income or (expense) accruals reported in accrued investment income or in other liabilities of $194 thousand and $156 thousand , respectively. (2) Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals. (3) Cash collateral received is included in cash and cash equivalents or in short-term investments, and the obligation to return it is included in payables for collateral transactions on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At December 31, 2016 and 2015, the Company received excess cash collateral of $270 thousand and $0 , respectively, and did not provide any excess cash collateral, which is not included in the table above due to foregoing limitations (4) Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at December 31, 2016 , none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At both December 31, 2016 and 2015 , the Company did not receive or provide excess securities collateral. The Company’s collateral arrangements for its OTC-bilateral derivatives generally require the counterparty in a net liability position, after considering the effect of netting agreements, to pledge collateral when the collateral amount owed by that counterparty reaches a minimum transfer amount. In addition, the Company’s netting agreements for derivatives contain provisions that require both the Company and the counterparty to maintain a specific investment grade credit rating from each of Moody’s and S&P. If a party’s credit or financial strength ratings, as applicable, were to fall below that specific investment grade credit rating, that party would be in violation of these provisions, and the other party to the derivatives could terminate the transactions and demand immediate settlement and payment based on such party’s reasonable valuation of the derivatives. At both December 31, 2016 and 2015, the Company held no OTC-bilateral derivatives that were in a net liability position after considering the effect of netting agreements. The Company’s collateral arrangements require both parties to be fully collateralized, as such, the Company would not be required to post additional collateral as a result of a downgrade in its financial strength rating. Embedded Derivatives The Company issues certain products that contain embedded derivatives that are required to be separated from their host contracts and accounted for as freestanding derivatives. These host contracts principally include: variable annuities with guaranteed minimum benefits, including GMWBs, GMABs and certain GMIBs; and affiliated ceded reinsurance of guaranteed minimum benefits related to GMWBs, GMABs and certain GMIBs. The following table presents the estimated fair value and balance sheet location of the Company’s embedded derivatives that have been separated from their host contracts at : December 31, Balance Sheet Location 2016 2015 (In thousands) Embedded derivatives within asset host contracts: Ceded guaranteed minimum benefits Premiums, reinsurance and other receivables $ 379,297 $ 306,863 Embedded derivatives within liability host contracts: Direct guaranteed minimum benefits Policyholder account balances $ (23,740 ) $ (53,518 ) The following table presents changes in estimated fair value related to embedded derivatives: Years Ended December 31, 2016 2015 2014 (In thousands) Net derivative gains (losses) (1), (2) $ 66,079 $ 63,716 $ 125,130 ______________ (1) The valuation of direct guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were ($57) thousand , $1.4 million and $578 thousand for the years ended December 31, 2016 , 2015 and 2014 , respectively. In addition, the valuation of ceded guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were ($19.0) million , ($2.6) million and ($5.8) million for the years ended December 31, 2016 , 2015 and 2014 , respectively. (2) See Note 5 for discussion of affiliated net derivative gains (losses). |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 8. Fair Value When developing estimated fair values, the Company considers three broad valuation techniques: (i) the market approach, (ii) the income approach, and (iii) the cost approach. The Company determines the most appropriate valuation technique to use, given what is being measured and the availability of sufficient inputs, giving priority to observable inputs. The Company categorizes its assets and liabilities measured at estimated fair value into a three-level hierarchy, based on the significant input with the lowest level in its valuation. The input levels are as follows: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. The Company defines active markets based on average trading volume for equity securities. The size of the bid/ask spread is used as an indicator of market activity for fixed maturity securities. Level 2 Quoted prices in markets that are not active or inputs that are observable either directly or indirectly. These inputs can include quoted prices for similar assets or liabilities other than quoted prices in Level 1, quoted prices in markets that are not active, or other significant inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the determination of estimated fair value of the assets or liabilities. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. Financial markets are susceptible to severe events evidenced by rapid depreciation in asset values accompanied by a reduction in asset liquidity. The Company’s ability to sell securities, or the price ultimately realized for these securities, depends upon the demand and liquidity in the market and increases the use of judgment in determining the estimated fair value of certain securities. Considerable judgment is often required in interpreting market data to develop estimates of fair value, and the use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts. Recurring Fair Value Measurements The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy are presented below at: December 31, 2016 Fair Value Hierarchy Level 1 Level 2 Level 3 Total (In thousands) Assets Fixed maturity securities: U.S. corporate $ — $ 681,406 $ 40,405 $ 721,811 U.S. government and agency 289,186 117,359 — 406,545 RMBS — 217,091 21,296 238,387 Foreign corporate — 200,454 31,886 232,340 CMBS — 173,763 5,193 178,956 State and political subdivision — 56,320 — 56,320 ABS — 21,736 4,934 26,670 Foreign government — 17,485 — 17,485 Total fixed maturity securities 289,186 1,485,614 103,714 1,878,514 Short-term investments — — — — Derivative assets: (1) Foreign currency exchange rate — 8,656 — 8,656 Embedded derivatives within asset host contracts (2) — — 379,297 379,297 Separate account assets (3) — 4,758,449 — 4,758,449 Total assets $ 289,186 $ 6,252,719 $ 483,011 $ 7,024,916 Liabilities Embedded derivatives within liability host contracts (2) $ — $ — $ (23,740 ) $ (23,740 ) Total liabilities $ — $ — $ (23,740 ) $ (23,740 ) December 31, 2015 Fair Value Hierarchy Level 1 Level 2 Level 3 Total Estimated (In thousands) Assets Fixed maturity securities: U.S. corporate $ — $ 522,888 $ 29,046 $ 551,934 U.S. government and agency 65,364 49,594 — 114,958 RMBS — 95,828 8,647 104,475 Foreign corporate — 90,307 26,143 116,450 CMBS — 126,894 5,215 132,109 State and political subdivision — 45,148 — 45,148 ABS — 17,964 — 17,964 Foreign government — 4,177 — 4,177 Total fixed maturity securities 65,364 952,800 69,051 1,087,215 Short-term investments 500 17,984 — 18,484 Derivative assets: (1) Foreign currency exchange rate — 4,981 — 4,981 Embedded derivatives within asset host contracts (2) — — 306,863 306,863 Separate account assets (3) — 4,792,140 — 4,792,140 Total assets $ 65,864 $ 5,767,905 $ 375,914 $ 6,209,683 Liabilities Embedded derivatives within liability host contracts (2) $ — $ — $ (53,518 ) $ (53,518 ) Total liabilities $ — $ — $ (53,518 ) $ (53,518 ) ______________ (1) Derivative assets are presented within other invested assets on the balance sheets. (2) Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables on the balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances on the balance sheets. (3) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders whose liability is reflected within separate account liabilities. Separate account liabilities are set equal to the estimated fair value of separate account assets. The following describes the valuation methodologies used to measure assets and liabilities at fair value. The description includes the valuation techniques and key inputs for each category of assets or liabilities that are classified within Level 2 and Level 3 of the fair value hierarchy. Investments Valuation Controls and Procedures On behalf of the Company and MetLife, Inc.’s Chief Investment Officer and Chief Financial Officer, a pricing and valuation committee that is independent of the trading and investing functions and comprised of senior management, provides oversight of control systems and valuation policies for securities, mortgage loans and derivatives. On a quarterly basis, this committee reviews and approves new transaction types and markets, ensures that observable market prices and market-based parameters are used for valuation, wherever possible, and determines that judgmental valuation adjustments, when applied, are based upon established policies and are applied consistently over time. This committee also provides oversight of the selection of independent third party pricing providers and the controls and procedures to evaluate third party pricing. Periodically, the Chief Accounting Officer reports to the Audit Committee of MetLife Inc.’s Board of Directors regarding compliance with fair value accounting standards. The Company reviews its valuation methodologies on an ongoing basis and revises those methodologies when necessary based on changing market conditions. Assurance is gained on the overall reasonableness and consistent application of input assumptions, valuation methodologies and compliance with fair value accounting standards through controls designed to ensure valuations represent an exit price. Several controls are utilized, including certain monthly controls, which include, but are not limited to, analysis of portfolio returns to corresponding benchmark returns, comparing a sample of executed prices of securities sold to the fair value estimates, comparing fair value estimates to management’s knowledge of the current market, reviewing the bid/ask spreads to assess activity, comparing prices from multiple independent pricing services and ongoing due diligence to confirm that independent pricing services use market-based parameters. The process includes a determination of the observability of inputs used in estimated fair values received from independent pricing services or brokers by assessing whether these inputs can be corroborated by observable market data. The Company ensures that prices received from independent brokers, also referred to herein as “consensus pricing,” represent a reasonable estimate of fair value by considering such pricing relative to the Company’s knowledge of the current market dynamics and current pricing for similar financial instruments. While independent non-binding broker quotations are utilized, they are not used for a significant portion of the portfolio. For example, fixed maturity securities priced using independent non-binding broker quotations represent less than 1% of the total estimated fair value of fixed maturity securities and 5% of the total estimated fair value of Level 3 fixed maturity securities at December 31, 2016. The Company also applies a formal process to challenge any prices received from independent pricing services that are not considered representative of estimated fair value. If prices received from independent pricing services are not considered reflective of market activity or representative of estimated fair value, independent non-binding broker quotations are obtained, or an internally developed valuation is prepared. Internally developed valuations of current estimated fair value, which reflect internal estimates of liquidity and nonperformance risks, compared with pricing received from the independent pricing services, did not produce material differences in the estimated fair values for the majority of the portfolio; accordingly, overrides were not material. This is, in part, because internal estimates of liquidity and nonperformance risks are generally based on available market evidence and estimates used by other market participants. In the absence of such market-based evidence, management’s best estimate is used. Securities and Short-term Investments When available, the estimated fair value of these financial instruments is based on quoted prices in active markets that are readily and regularly obtainable. Generally, these are the most liquid of the Company’s securities holdings and valuation of these securities does not involve management’s judgment. When quoted prices in active markets are not available, the determination of estimated fair value is based on market standard valuation methodologies, giving priority to observable inputs. The significant inputs to the market standard valuation methodologies for certain types of securities with reasonable levels of price transparency are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. When observable inputs are not available, the market standard valuation methodologies rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs can be based in large part on management’s judgment or estimation and cannot be supported by reference to market activity. Even though these inputs are unobservable, management believes they are consistent with what other market participants would use when pricing such securities and are considered appropriate given the circumstances. The valuation of all instruments listed below is determined using independent pricing sources, matrix pricing, discounted cash flow methodologies or other similar techniques that use either observable market inputs or unobservable inputs. Instrument Level 2 Observable Inputs Level 3 Unobservable Inputs Fixed Maturity Securities U.S. corporate and Foreign corporate securities Valuation Techniques: Principally the market and income approaches. Valuation Techniques: Principally the market approach. Key Inputs: Key Inputs: • quoted prices in markets that are not active • illiquidity premium • benchmark yields; spreads off benchmark yields; new issuances; issuer rating • delta spread adjustments to reflect specific credit-related issues • trades of identical or comparable securities; duration • credit spreads • Privately-placed securities are valued using the additional key inputs: • quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 • market yield curve; call provisions • observable prices and spreads for similar public or private securities that incorporate the credit quality and industry sector of the issuer • independent non-binding broker quotations • delta spread adjustments to reflect specific credit-related issues U.S. government and agency, State and political subdivision and Foreign government securities Valuation Techniques: Principally the market approach. • N/A Key Inputs: • quoted prices in markets that are not active • benchmark U.S. Treasury yield or other yields • the spread off the U.S. Treasury yield curve for the identical security • issuer ratings and issuer spreads; broker-dealer quotes • comparable securities that are actively traded Structured Securities Valuation Techniques: Principally the market and income approaches. Valuation Techniques: Principally the market and income approaches. Key Inputs: Key Inputs: • quoted prices in markets that are not active • credit spreads • spreads for actively traded securities; spreads off benchmark yields • quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 • expected prepayment speeds and volumes • current and forecasted loss severity; ratings; geographic region • independent non-binding broker quotations • weighted average coupon and weighted average maturity • average delinquency rates; debt-service coverage ratios • issuance-specific information, including, but not limited to: • collateral type; structure of the security; vintage of the loans • payment terms of the underlying assets • payment priority within the tranche; deal performance Short-term investments • Short-term investments are of a similar nature and class to the fixed maturity securities described above; accordingly, the valuation techniques and observable inputs used in their valuation are also similar to those described above. • N/A Separate Account Assets (1) Mutual funds without readily determinable fair values as prices are not published publicly Key Input: • N/A • quoted prices or reported net asset value provided by the fund managers ______________ (1) Estimated fair value equals carrying value, based on the value of the underlying assets including mutual funds. Derivatives The estimated fair value of derivatives is determined through the use of quoted market prices for exchange-traded derivatives, or through the use of pricing models for OTC-bilateral and c ertain of the Company’s OTC derivatives that are cleared and settled through central clearing counterparties (“ OTC-cleared”). The determination of estimated fair value, when quoted market values are not available, is based on market standard valuation methodologies and inputs that management believes are consistent with what other market participants would use when pricing such instruments. Derivative valuations can be affected by changes in interest rates, foreign currency exchange rates, financial indices, credit spreads, default risk, nonperformance risk, volatility, liquidity and changes in estimates and assumptions used in the pricing models. The valuation controls and procedures for derivatives are described in “— Investments — Valuation Controls and Procedures.” The significant inputs to the pricing models for most OTC-bilateral and OTC-cleared derivatives are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. Certain OTC-bilateral and OTC-cleared derivatives may rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs may involve significant management judgment or estimation. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and management believes they are consistent with what other market participants would use when pricing such instruments. Most inputs for OTC-bilateral and OTC-cleared derivatives are mid-market inputs but, in certain cases, liquidity adjustments are made when they are deemed more representative of exit value. Market liquidity, as well as the use of different methodologies, assumptions and inputs, may have a material effect on the estimated fair values of the Company’s derivatives and could materially affect net income. The credit risk of both the counterparty and the Company are considered in determining the estimated fair value for all OTC-bilateral and OTC-cleared derivatives, and any potential credit adjustment is based on the net exposure by counterparty after taking into account the effects of netting agreements and collateral arrangements. The Company values its OTC-bilateral and OTC-cleared derivatives using standard swap curves which may include a spread to the risk-free rate, depending upon specific collateral arrangements. This credit spread is appropriate for those parties that execute trades at pricing levels consistent with similar collateral arrangements. As the Company and its significant derivative counterparties generally execute trades at such pricing levels and hold sufficient collateral, additional credit risk adjustments are not currently required in the valuation process. The Company’s ability to consistently execute at such pricing levels is in part due to the netting agreements and collateral arrangements that are in place with all of its significant derivative counterparties. An evaluation of the requirement to make additional credit risk adjustments is performed by the Company each reporting period. Freestanding Derivatives Level 2 Valuation Techniques and Key Inputs: This level includes all types of derivatives utilized by the Company. These derivatives are principally valued using the income approach. Freestanding derivatives are principally valued using the income approach. Valuations of non-option-based derivatives utilize present value techniques. Key inputs are as follows: Instrument Foreign Currency Exchange Rate Inputs common to Level 2 by instrument type • swap yield curves • basis curves • currency spot rates • cross currency basis curves Embedded Derivatives Embedded derivatives principally include certain direct variable annuity guarantees and certain affiliated ceded reinsurance agreements related to such variable annuity guarantees. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income. The Company issues certain variable annuity products with guaranteed minimum benefits. GMWBs, GMABs and certain GMIBs contain embedded derivatives, which are measured at estimated fair value separately from the host variable annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the balance sheets. The Company’s actuarial department calculates the fair value of these embedded derivatives, which are estimated as the present value of projected future benefits minus the present value of projected future fees using actuarial and capital market assumptions including expectations concerning policyholder behavior. The calculation is based on in-force business, and is performed using standard actuarial valuation software which projects future cash flows from the embedded derivative over multiple risk neutral stochastic scenarios using observable risk-free rates. Capital market assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience. The valuation of these guarantee liabilities includes nonperformance risk adjustments and adjustments for a risk margin related to non-capital market inputs. The nonperformance adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market for MetLife, Inc.’s debt, including related credit default swaps. These observable spreads are then adjusted, as necessary, to reflect the priority of these liabilities and the claims paying ability of the issuing insurance subsidiaries as compared to MetLife, Inc. Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions as annuitization, premium persistency, partial withdrawal and surrenders. The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount and cost of capital needed to cover the guarantees. These guarantees may be more costly than expected in volatile or declining equity markets. Market conditions including, but not limited to, changes in interest rates, equity indices, market volatility and foreign currency exchange rates; changes in nonperformance risk; and variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, may result in significant fluctuations in the estimated fair value of the guarantees that could materially affect net income. The Company ceded to an affiliated reinsurance company, the risk associated with certain of the GMIBs, GMABs and GMWBs described above. These reinsurance agreements contain embedded derivatives and are included within premiums, reinsurance and other receivables on the balance sheets with changes in estimated fair value reported in net derivative gains (losses). The value of the embedded derivatives on the ceded risk is determined using a methodology consistent with that described previously for the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer. Embedded Derivatives Within Asset and Liability Host Contracts Level 3 Valuation Techniques and Key Inputs: Direct guaranteed minimum benefits These embedded derivatives are principally valued using the income approach. Valuations are based on option pricing techniques, which utilize significant inputs that may include swap yield curves, currency exchange rates and implied volatilities. These embedded derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Significant unobservable inputs generally include: the extrapolation beyond observable limits of the swap yield curves and implied volatilities, actuarial assumptions for policyholder behavior and mortality and the potential variability in policyholder behavior and mortality, nonperformance risk and cost of capital for purposes of calculating the risk margin. Reinsurance ceded on certain guaranteed minimum benefits These embedded derivatives are principally valued using the income approach. The valuation techniques and significant market standard unobservable inputs used in their valuation are similar to those described above in “— Direct guaranteed minimum benefits” and also include counterparty credit spreads. Transfers between Levels Overall, transfers between levels occur when there are changes in the observability of inputs and market activity. Transfers into or out of any level are assumed to occur at the beginning of the period. Transfers between Levels 1 and 2: There were no transfers between Levels 1 and 2 for assets and liabilities measured at estimated fair value and still held at both December 31, 2016 and 2015. Transfers into or out of Level 3: Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable. Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at: December 31, 2016 December 31, 2015 Impact of Valuation Techniques Significant Range Weighted Range Weighted Fixed maturity securities (3) U.S. corporate and foreign corporate • Matrix pricing • Delta spread adjustments (4) (65) - 90 3 Decrease • Offered quotes (5) 94 - 136 107 96 96 96 Increase • Market pricing • Quoted prices (5) 75 - 110 97 Increase RMBS • Market pricing • Quoted prices (5) 56 - 111 86 68 - 98 90 Increase (6) CMBS • Market pricing • Quoted prices (5) 104 - 104 104 104 - 104 104 Increase (6) Embedded derivatives Direct and ceded guaranteed minimum benefits • Option pricing • Mortality rates: Ages 0 - 40 0% - 0.09% 0% - 0.09% Decrease (7) Ages 41 - 60 0.04% - 0.65% 0.04% - 0.65% Decrease (7) Ages 61 - 115 0.26% - 100% 0.26% - 100% Decrease (7) • Lapse rates: Durations 1 - 10 0.25% - 100% 0.25% - 100% Decrease (8) Durations 11 - 20 2% - 100% 3% - 100% Decrease (8) Durations 21 - 116 2% - 100% 3% - 100% Decrease (8) • Utilization rates 0% - 25% 0% - 25% Increase (9) • Withdrawal rates 0.25% - 10% 0.25% - 10% (10) • Long-term equity volatilities 17.40% - 25% 17.40% - 25% Increase (11) • Nonperformance risk spread 0.04% - 0.57% 0.04% - 0.52% Decrease (12) ______________ (1) The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities. (2) The impact of a decrease in input would have the opposite impact on estimated fair value. For embedded derivatives, changes to direct guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset positions. (3) Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations. (4) Range and weighted average are presented in basis points. (5) Range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par. (6) Changes in the assumptions used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates. (7) Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (8) Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (9) The utilization rate assumption estimates the percentage of contractholders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (10) The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. (11) Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (12) Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. The following is a summary of the valuation techniques and significant unobservable inputs used in the fair value measurement of assets and liabilities classified within Level 3 that are not included in the preceding table. Generally, all other classes of securities classified within Level 3 use the same valuation techniques and significant unobservable inputs as previously described for Level 3 securities. This includes matrix pricing and discounted cash flow methodologies, inputs such as quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2, as well as independent non-binding broker quotations. The sensitivity of the estimated fair value to changes in the significant unobservable inputs for these other assets and liabilities is similar in nature to that described in the preceding table. The following tables summarize the change of all assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fixed Maturity Securities Net Embedded Derivatives (2) Corporate (1) Structured Securities (In thousands) Balance, beginning of period $ 29,978 $ 5,215 $ 319,660 Total realized/unrealized gains (losses) included in net income (loss) (3) (4) 79 83 63,716 Total realized/unrealized gains (losses) included in AOCI (1,849 ) 55 — Purchases (5) 29,114 9,011 — Sales (5) (2,133 ) (502 ) — Issuances (5) — — — Settlements (5) — — (22,995 ) Transfers into Level 3 (6) — — — Transfers out of Level 3 (6) — — — Balance, December 31, 2015 55,189 13,862 360,381 Total realized/unrealized gains (losses) included in net income (loss) (3) (4) (64 ) 249 66,079 Total realized/unrealized gains (losses) included in AOCI (1,769 ) 152 — Purchases (5) 21,260 23,916 — Sales (5) (462 ) (1,901 ) — Issuances (5) — — — Settlements (5) — — (23,423 ) Transfers into Level 3 (6) — — — Transfers out of Level 3 (6) (1,863 ) (4,855 ) — Balance, December 31, 2016 $ 72,291 $ 31,423 $ 403,037 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2014 (7) $ — $ (22 ) $ 127,942 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2015 (7) $ 23 $ 83 $ 67,551 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2016 (7) $ (64 ) $ 249 $ 71,709 Gains (Losses) Data for the year ended December 31, 2014 Total realized/unrealized gains (losses) included in net income (loss) (3) (4) $ 8 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Equity | 9. Equity Statutory Equity and Income The state of domicile of the Company imposes risk-based capital (“RBC”) requirements that were developed by the National Association of Insurance Commissioners (“NAIC”). Regulatory compliance is determined by a ratio of a company’s total adjusted capital, calculated in the manner prescribed by the NAIC (“TAC”) to its authorized control level RBC, calculated in the manner prescribed by the NAIC (“ACL RBC”), based on the statutory-based filed financial statements. Companies below specific trigger levels or ratios are classified by their respective levels, each of which requires specified corrective action. The minimum level of TAC before corrective action commences is twice ACL RBC (“CAL RBC”). The CAL RBC for the Company was in excess of 400% for all periods presented. The Company prepares statutory-basis financial statements in accordance with statutory accounting practices prescribed or permitted by the New York State Department of Financial Services (“NYDFS”). The NAIC has adopted the Codification of Statutory Accounting Principles (“Statutory Codification”). Statutory Codification is intended to standardize regulatory accounting and reporting to state insurance departments. However, statutory accounting principles continue to be established by individual state laws and permitted practices. Modifications by the state insurance department may impact the effect of Statutory Codification on the statutory capital and surplus of the Company. Statutory accounting principles differ from GAAP primarily by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions, reporting of reinsurance agreements and valuing securities on a different basis. In addition, certain assets are not admitted under statutory accounting principles and are charged directly to surplus. The most significant assets not admitted by the Company are net deferred income tax assets resulting from temporary differences between statutory accounting principles basis and tax basis not expected to reverse and become recoverable within three years. New York has adopted certain prescribed accounting practices, primarily consisting of the continuous Commissioners’ Annuity Reserve Valuation Method, which impacts deferred annuities, NYDFS Circular letter No 11, which impacts deferred premiums, and NYDFS Seventh Amendment to Regulation 172, which impacts admitted unearned reinsurance premiums. The collective impact of these prescribed accounting practices decreased the statutory capital and surplus of the Company for the years ended December 31, 2016 and 2015 by an amo unt of $53.0 million and $46.9 million , respectively, in excess of the amount of the decrease had capital and surplus been measured under NAIC guidance. The tables below present amounts from the Company, which are derived from the statutory-basis financial statements as filed with the NYDFS. Statutory net income (loss) was as follows: Years Ended December 31, Company State of Domicile 2016 2015 2014 (In thousands) Brighthouse Life Insurance Company of NY New York $ (87,290 ) $ 17,194 $ 10,635 Statutory capital and surplus was as follows at: December 31, Company 2016 2015 (In thousands) Brighthouse Life Insurance Company of NY $ 195,824 $ 320,675 Dividend Restrictions The Company is not able to pay dividends in 2017 to MetLife, Inc. without insurance regulatory approval from the NYDFS. The Company did not pay any dividends in 2016 or 2015 to MetLife, Inc. Effective for dividends paid during 2016 and going forward, the New York Insurance Law was amended permitting the Company, without prior insurance regulatory clearance, to pay stockholder dividends to MetLife, Inc. in any calendar year based on either of two standards. Under one standard, the Company is permitted, without prior insurance regulatory clearance, to pay dividends out of earned surplus (defined as positive “unassigned funds (surplus)” excluding 85% of the change in net unrealized capital gains or losses (less capital gains tax), for the immediately preceding calendar year), in an amount up to the greater of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year, or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding realized capital gains), not to exceed 30% of surplus to policyholders as of the end of the immediately preceding calendar year. In addition, under this standard, the Company may not, without prior insurance regulatory clearance, pay any dividends in any calendar year immediately following a calendar year for which its net gain from operations, excluding realized capital gains, was negative. Under the second standard, if dividends are paid out of other than earned surplus, the Company may, without prior insurance regulatory clearance, pay an amount up to the lesser of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year, or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding realized capital gains). In addition, the Company will be permitted to pay a dividend to MetLife, Inc. in excess of the amounts allowed under both standards only if it files notice of its intention to declare such a dividend and the amount thereof with the New York Superintendent of Financial Services (the “Superintendent”) and the Superintendent either approves the distribution of the dividend or does not disapprove the dividend within 30 days of its filing. Under New York Insurance Law, the Superintendent has broad discretion in determining whether the financial condition of a stock life insurance company would support the payment of such dividends to its stockholders. Accumulated Other Comprehensive Income (Loss) Information regarding changes on the balances of each component of AOCI was as follows: Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Total (In thousands) Balance at December 31, 2013 $ 10,119 $ (552 ) $ 9,567 OCI before reclassifications 46,163 1,278 47,441 Deferred income tax benefit (expense) (16,157 ) (447 ) (16,604 ) AOCI before reclassifications, net of income tax 40,125 279 40,404 Amounts reclassified from AOCI (1,250 ) — (1,250 ) Deferred income tax benefit (expense) 437 — 437 Amounts reclassified from AOCI, net of income tax (813 ) — (813 ) Balance at December 31, 2014 39,312 279 39,591 OCI before reclassifications (50,792 ) 2,760 (48,032 ) Deferred income tax benefit (expense) 17,778 (966 ) 16,812 AOCI before reclassifications, net of income tax 6,298 2,073 8,371 Amounts reclassified from AOCI (4,561 ) — (4,561 ) Deferred income tax benefit (expense) 1,596 — 1,596 Amounts reclassified from AOCI, net of income tax (2,965 ) — (2,965 ) Balance at December 31, 2015 3,333 2,073 5,406 OCI before reclassifications (5,777 ) 1,584 (4,193 ) Deferred income tax benefit (expense) 2,022 (554 ) 1,468 AOCI before reclassifications, net of income tax (422 ) 3,103 2,681 Amounts reclassified from AOCI 2,711 (55 ) 2,656 Deferred income tax benefit (expense) (949 ) 19 (930 ) Amounts reclassified from AOCI, net of income tax 1,762 (36 ) 1,726 Balance at December 31, 2016 $ 1,340 $ 3,067 $ 4,407 ______________ (1) See Note 6 for information on offsets to investments related to future policy benefits, DAC and DSI. Information regarding amounts reclassified out of each component of AOCI was as follows: AOCI Components Amounts Reclassified from AOCI Statement of Operations and Comprehensive Income (Loss) Location Years Ended December 31, 2016 2015 2014 (In thousands) Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ (2,745 ) $ 4,550 $ 600 Net investment gains (losses) Net unrealized investment gains (losses) 79 228 650 Net investment income Net unrealized investment gains (losses) (45 ) (217 ) — Net derivative gains (losses) Net unrealized investment gains (losses), before income tax (2,711 ) 4,561 1,250 Income tax (expense) benefit 949 (1,596 ) (437 ) Net unrealized investment gains (losses), net of income tax $ (1,762 ) $ 2,965 $ 813 Unrealized gains (losses) on derivatives - cash flow hedges: Foreign currency swaps 55 — — Net derivative gains (losses) Gains (losses) on cash flow hedges, before income tax 55 — — Income tax (expense) benefit (19 ) — — Gains (losses) on cash flow hedges, net of income tax $ 36 $ — $ — Total reclassifications, net of income tax $ (1,726 ) $ 2,965 $ 813 |
Other Expenses
Other Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other Expenses | 10. Other Expenses Information on other expenses was as follows: Years Ended December 31, 2016 2015 2014 (In thousands) Compensation $ 8,535 $ 13,421 $ 18,843 Pension, postretirement and postemployment benefit costs 796 1,334 1,109 Commissions 17,586 21,291 26,482 Volume-related costs 4,943 6,123 5,002 Affiliated interest costs on ceded reinsurance 10,535 11,276 10,479 Capitalization of DAC (4,976 ) (4,768 ) (14,009 ) Premium taxes, licenses and fees 2,590 3,607 2,652 Professional services 1,529 373 2,268 Rent and related expenses 1,096 1,065 2,162 Other 14,393 11,491 24,579 Total other expenses $ 57,027 $ 65,213 $ 79,567 Capitalization of DAC See Note 4 for additional information on the capitalization of DAC. Affiliated Expenses Commissions and capitalization of DAC include the impact of affiliated reinsurance transactions. See Notes 5 and 13 for a discussion of affiliated expenses included in the table above. |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax | 11. Income Tax The provision for income tax was as follows: Years Ended December 31, 2016 2015 2014 (In thousands) Current: Federal $ (57,108 ) $ 1,148 $ 56,154 Deferred: Federal 99,260 840 (19,884 ) Provision for income tax expense (benefit) $ 42,152 $ 1,988 $ 36,270 The reconciliation of the income tax provision at the U.S. statutory rate to the provision for income tax as reported was as follows: Years Ended December 31, 2016 2015 2014 (In thousands) Tax provision at U.S. statutory rate $ 46,397 $ 8,779 $ 42,952 Tax effect of: Dividend received deduction (4,732 ) (5,589 ) (5,039 ) Prior year tax 1,282 (624 ) (1,220 ) Tax credits (797 ) (580 ) (504 ) Other, net 2 2 81 Provision for income tax expense (benefit) $ 42,152 $ 1,988 $ 36,270 Deferred income tax represents the tax effect of the differences between the book and tax bases of assets and liabilities. Net deferred income tax assets and liabilities consisted of the following at: December 31, 2016 2015 (In thousands) Deferred income tax assets: Tax credit carryforwards $ 4,491 $ 3,692 Other 2,206 858 Total deferred income tax assets 6,697 4,550 Deferred income tax liabilities: Investments, including derivatives 1,102 1,238 Policyholder liabilities and receivables 210,814 99,246 Intangibles 1,850 1,869 Net unrealized investment gains 2,373 2,911 DAC 10,397 20,403 Total deferred income tax liabilities 226,536 125,667 Net deferred income tax asset (liability) $ (219,839 ) $ (121,117 ) Tax credit carryforwards of $ 4.5 million at December 31, 2016 will expire beginning in 2022 . The Company currently participates in a tax sharing agreement with MetLife Inc., as described in Note 1 . Pursuant to this tax sharing agreement, the amounts due to (from affiliates) included ($57.9) million and ($1.5) million for the years ended December 31, 2016 and 2015 , respectively. The Company also files income tax returns with the U.S. federal government and various state and local jurisdictions. The Company is under continuous examination by the IRS and other tax authorities in jurisdictions in which the Company has significant business operations. The income tax years under examination vary by jurisdiction. The Company is no longer subject to U.S. federal, state or local income tax examinations for years prior to 2007. Management believes it has established adequate tax liabilities for all open years and any future resolve is not expected to have a material impact on the Company’s financial statements. The Company’s liability for unrecognized tax benefits may increase or decrease in the next 12 months. A reasonable estimate of the increase or decrease cannot be made at this time. However, the Company continues to believe that the ultimate resolution of the pending issues will not result in a material change to its financial statements, although the resolution of income tax matters could impact the Company’s effective tax rate for a particular future period. A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: Years Ended December 31, 2016 2015 2014 (In thousands) Balance at January 1, $ 983 $ 983 $ 838 Additions for tax positions of prior years 300 — 169 Reductions for tax positions of prior years (23 ) — (124 ) Additions for tax positions of current year 300 — 100 Settlements with tax authorities (356 ) — — Balance at December 31, $ 1,204 $ 983 $ 983 Unrecognized tax benefits that, if recognized would impact the effective rate $ 1,130 $ 909 $ 909 The Company classifies interest accrued related to unrecognized tax benefits in interest expense, included within other expenses, while penalties are included in income tax expense. Interest was as follows: Years Ended December 31, 2016 2015 2014 (In thousands) Interest recognized on the statements of operations $ (79 ) $ — $ (24 ) December 31, 2016 2015 (In thousands) Interest included in other liabilities on the balance sheets $ 62 $ 141 The Company had no penalties for each of the years ended December 31, 2016 , 2015 , and 2014 . The U.S. Treasury Department and the IRS have indicated that they intend to address through regulations the methodology to be followed in determining the dividends received deduction (“DRD”), related to variable life insurance and annuity contracts. The DRD reduces the amount of dividend income subject to tax and is a significant component of the difference between the actual tax expense and expected amount determined using the federal statutory tax rate of 35% . Any regulations that the IRS ultimately proposes for issuance in this area will be subject to public notice and comment, at which time insurance companies and other interested parties will have the opportunity to raise legal and practical questions about the content, scope and application of such regulations. As a result, the ultimate timing and substance of any such regulations are unknown at this time. For the years ended December 31, 2016 , 2015 and 2014 , the Company recognized an income tax benefit of $3.9 million , $5.6 million and $6.3 million , respectively, related to the separate account DRD. The 2016 benefit included an expense of $900 thousand related to a true-up of the 2015 tax return. The 2015 and 2014 benefit included a benefit of $600 thousand and $1.2 million related to a true-up of the 2014 and 2013 tax returns, respectively. |
Contingencies, Commitments and
Contingencies, Commitments and Guarantees | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies, Commitments and Guarantees | 12. Contingencies, Commitments and Guarantees Contingencies Litigation Sales Practices Claims Over the past several years, the Company has faced claim and regulatory inquiries and investigations, alleging improper marketing or sales of individual life insurance policies, annuities, mutual funds or other products. Summary Various litigation, claims and assessments against the Company, have arisen in the course of the Company's business, including, but not limited to, in connection with its activities as an insurer, investor, and taxpayer. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning the Company's compliance with applicable insurance and other laws and regulations. It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings. In some of the matters, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Although in light of these considerations it is possible that an adverse outcome in certain cases could have a material effect upon the Company's financial position, based on information currently known by the Company's management, in its opinion, the outcomes of such pending investigations and legal proceedings are not likely to have such an effect. However, given the large and/or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on the Company's net income or cash flows in particular quarterly or annual periods. Insolvency Assessments Most of the jurisdictions in which the Company is admitted to transact business require insurers doing business within the jurisdiction to participate in guaranty associations, which are organized to pay contractual benefits owed pursuant to insurance policies issued by impaired, insolvent or failed insurers. These associations levy assessments, up to prescribed limits, on all member insurers in a particular state on the basis of the proportionate share of the premiums written by member insurers in the lines of business in which the impaired, insolvent or failed insurer engaged. Some states permit member insurers to recover assessments paid through full or partial premium tax offsets. Assets and liabilities held for insolvency assessments were as follows: December 31, 2016 2015 (In thousands) Other Assets: Premium tax offset for future discounted and undiscounted assessments $ 300 $ 300 Premium tax offsets currently available for paid assessments 1,829 3,820 $ 2,129 $ 4,120 Other Liabilities: Insolvency assessments $ 400 $ 400 Commitments Mortgage Loan Commitments The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $42 thousand and $4.0 million at December 31, 2016 and 2015, respectively. Guarantees In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties such that it may be required to make payments now or in the future. In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third-party lawsuits. These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation. In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation, while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future. Management believes that it is unlikely the Company will have to make any material payments under these indemnities, guarantees, or commitments. In addition, the Company indemnifies its directors and officers as provided in its charters and by-laws. Also, the Company indemnifies its agents for liabilities incurred as a result of their representation of the Company’s interests. Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future. The Company had no liability for indemnities, guarantees and commitments at both December 31, 2016 and 2015 . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 13. Related Party Transactions The Company has various existing relationships with MetLife for services necessary to conduct its activities. Non-Broker-Dealer Transactions The following table summarizes income and expense from transactions with MetLife (excluding broker-dealer transactions) for the years indicated: Years Ended December 31, Years Ended December 31, 2016 2015 2014 2016 2015 2014 Income Expense (In thousands) MetLife $ 50,358 $ 16,759 $ 121,858 $ (76,613 ) $ (44,358 ) $ 1,671 The following table summarizes assets and liabilities from transactions with MetLife (excluding broker-dealer transactions) at: December 31, December 31, 2016 2015 2016 2015 Assets Liabilities (In thousands) MetLife $ 322,394 $ 1,489,214 $ 99,641 $ 429,822 The material arrangements between the Company and MetLife are as follows: Reinsurance Agreements The Company enters into reinsurance agreements primarily as a purchaser of reinsurance for its various insurance products and also as a provider of reinsurance for some insurance products issued by affiliated companies. The Company participates in reinsurance activities in order to limit losses, minimize exposure to significant risks and provide additional capacity for future growth . The Company has reinsurance agreements with certain of MetLife, Inc.’s subsidiaries, including MLIC and MRV, all of which are related parties. See Note 5 for further discussion of the affiliated reinsurance agreements. Capital Support Arrangement MetLife provides various capital support commitments and guarantees to the Brighthouse Financial, Inc. combined entities. Under these arrangements, MetLife has agreed to cause each affected entity to meet specified capital and surplus levels or has guaranteed certain contractual obligations. The terms of the material capital support commitment follows. MetLife has a net worth maintenance agreement with Brighthouse NY. Under this agreement, as amended, MetLife agreed, without limitation as to the amount, to cause Brighthouse NY to have capital and surplus of $10.0 million , total adjusted capital in an amount that is equal to or greater than 150% of the company action level RBC, as defined by applicable state insurance statutes, and liquidity necessary to enable it to meet its current obligations on a timely basis. Investment Transactions In the ordinary course of business, the Company transfers invested assets, primarily consisting of fixed maturity securities, to and from MetLife affiliates. See Note 6 for further discussion of the related party investment transactions. Shared Services and Overhead Allocations MetLife provides the Company certain services, which include, but are not limited to, executive oversight, treasury, finance, legal, human resources, tax planning, internal audit, financial reporting, information technology, distribution services and investor relations. The Company is charged for these services based on direct and indirect costs. When specific identification is not practicable, an allocation methodology is used, primarily based on sales, in-force liabilities, or headcount. For certain agreements, charges are based on various performance measures or activity-based costing, such as sales, new policies/contracts issued, reserves, and in-force policy counts. The bases for such charges are modified and adjusted by management when necessary or appropriate to reflect fairly and equitably the actual incidence of cost incurred by the Company and/or affiliate. Management believes that the methods used to allocate expenses under these arrangements are reasonable. Expenses incurred with MetLife related to these arrangements, recorded in other operating expenses, were $19.9 million , $30.4 million and $49.5 million for the years ended December 31, 2016, 2015 and 2014, respectively. Broker-Dealer Transactions The Company accrues related party revenues and expenses arising from transactions with MetLife’s broker-dealers whereby the MetLife broker-dealers sell the Company’s variable annuity and life products. The affiliated revenue for the Company is fee income from trusts and mutual funds whose shares serve as investment options of policyholders of the Company. The affiliated expense for the Company is commissions collected on the sale of variable products by the Company and passed through to the broker-dealer. The following table summarizes income and expense from transactions with related broker-dealers for the years indicated: Years Ended December 31, Years Ended December 31, 2016 2015 2014 2016 2015 2014 Fee Income Commission Expense (In thousands) MetLife broker-dealers $ 9,968 $ 10,515 $ 10,136 $ 32,191 $ 30,672 $ 30,007 The following table summarizes assets and liabilities from transactions with affiliated broker-dealers at: December 31, December 31, 2016 2015 2016 2015 Fee Income Receivables Secured Demand Notes (In thousands) MetLife broker-dealers $ 934 $ 883 $ — $ — |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events Effective January 1, 2017, the Company executed a novation and assignment of a reinsurance agreement under which MLIC reinsured certain variable annuities, including GMxBs. As a result of the novation and assignment, the reinsurance agreement is now between Brighthouse Insurance, as reinsurer, and the Company. These transactions are treated as a termination of the existing reinsurance agreement with recognition of a loss and a new reinsurance agreement with no recognition of a gain or loss. These transactions resulted in an increase in other liabilities of $129.8 million . The Company will recognize a loss of $84.4 million , net of income tax, as a result of these transactions. |
Consolidated Summary of Investm
Consolidated Summary of Investments - Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2016 | |
Consolidated Summary of Investments - Other Than Investments in Related Parties [Abstract] | |
Consolidated Summary of Investments - Other Than Investments in Related Parties | Brighthouse Life Insurance Company of NY (A Wholly-Owned Subsidiary of MetLife, Inc.) Schedule I Summary of Investments — Other Than Investments in Related Parties December 31, 2016 (In thousands) Types of Investments Amortized Cost (1) Estimated Fair Amount at Fixed maturity securities: Bonds: U.S. government and agency securities $ 410,504 $ 406,545 $ 406,545 Public utilities 56,657 58,275 58,275 State and political subdivision securities 52,739 56,320 56,320 Foreign government securities 17,215 17,485 17,485 All other corporate bonds 889,362 894,799 894,799 Total bonds 1,426,477 1,433,424 1,433,424 Mortgage-backed and asset-backed securities 443,090 444,013 444,013 Redeemable preferred stock 1,087 1,077 1,077 Total fixed maturity securities 1,870,654 1,878,514 1,878,514 Mortgage loans 406,085 406,085 Other invested assets 8,656 8,656 Total investments $ 2,285,395 $ 2,293,255 ______________ (1) Amortized cost for fixed maturity securities and mortgage loans represents original cost reduced by repayments, valuation allowances and impairments from other-than-temporary declines in estimated fair value that are charged to earnings and adjusted for amortization of premiums or accretion of discounts. |
Consolidated Supplementary Insu
Consolidated Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2016 | |
Supplementary Insurance Information [Abstract] | |
Consolidated Supplementary Insurance Information | Brighthouse Life Insurance Company of NY (A Wholly-Owned Subsidiary of MetLife, Inc.) Schedule III Supplementary Insurance Information December 31, 2016, 2015 and 2014 (In thousands) Segment DAC Future Policy Policyholder Unearned Premiums (1), (2) Unearned 2016 Annuities $ 60,689 $ 325,468 $ 1,179,305 $ — $ 2,164 Life 24,265 299,274 23,045 1,064 — Corporate & Other 219 9,550 — 22 — Total $ 85,173 $ 634,292 $ 1,202,350 $ 1,086 $ 2,164 2015 Annuities $ 80,686 $ 279,372 $ 1,224,268 $ — $ 2,410 Life 26,591 270,663 24,225 1,158 — Corporate & Other 237 6,733 — 20 — Total $ 107,514 $ 556,768 $ 1,248,493 $ 1,178 $ 2,410 2014 Annuities $ 111,090 $ 238,947 $ 1,255,229 $ — $ 2,492 Life 92,592 243,922 14,253 1,151 — Corporate & Other 690 5,212 — 19 — Total $ 204,372 $ 488,081 $ 1,269,482 $ 1,170 $ 2,492 ______________ (1) Amounts are included within the future policy benefits and other policy-related balances column. (2) Includes premiums received in advance. Brighthouse Life Insurance Company of NY (A Wholly-Owned Subsidiary of MetLife, Inc.) Schedule III Supplementary Insurance Information — (continued) December 31, 2016, 2015 and 2014 (In thousands) Segment Premiums and Net Policyholder Benefits Amortization of Other 2016 Annuities $ 122,830 $ 27,632 $ 62,676 $ 20,927 $ 37,537 Life 28,978 17,033 27,122 2,272 16,134 Corporate & Other 1,931 13,115 2,096 18 3,356 Total $ 153,739 $ 57,780 $ 91,894 $ 23,217 $ 57,027 2015 Annuities $ 139,905 $ 23,127 $ 65,764 $ 36,788 $ 45,835 Life 40,617 15,379 34,118 66,568 16,570 Corporate & Other 2,255 14,438 1,651 470 2,808 Total $ 182,777 $ 52,944 $ 101,533 $ 103,826 $ 65,213 2014 Annuities $ 138,440 $ 12,756 $ 106,965 $ 56,532 $ 41,034 Life 44,846 13,985 22,366 12,025 32,681 Corporate & Other 2,740 14,312 1,710 214 5,852 Total $ 186,026 $ 41,053 $ 131,041 $ 68,771 $ 79,567 ______________ (1) See Note 2 for the basis of allocation of net investment income. |
Consolidated Reinsurance
Consolidated Reinsurance | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |
Consolidated Reinsurance | Brighthouse Life Insurance Company of NY (A Wholly-Owned Subsidiary of MetLife, Inc.) Schedule IV Reinsurance December 31, 2016 , 2015 and 2014 (Dollars in thousands) Gross Amount Ceded Assumed Net Amount % Amount Assumed to Net 2016 Life insurance in-force $ 50,748,993 $ 43,894,276 $ — $ 6,854,717 — % Insurance premium Life insurance (1) $ 109,733 $ 58,994 $ — $ 50,739 — % Accident & health insurance — — — — — % Total insurance premium $ 109,733 $ 58,994 $ — $ 50,739 — % 2015 Life insurance in-force $ 53,017,387 $ 48,212,042 $ — $ 4,805,345 — % Insurance premium Life insurance (1) $ 122,110 $ 50,238 $ — $ 71,872 — % Accident & health insurance — — — — — % Total insurance premium $ 122,110 $ 50,238 $ — $ 71,872 — % 2014 Life insurance in-force $ 55,440,132 $ 50,403,555 $ — $ 5,036,577 — % Insurance premium Life insurance (1) $ 133,129 $ 51,647 $ — $ 81,482 — % Accident & health insurance — — — — — % Total insurance premium $ 133,129 $ 51,647 $ — $ 81,482 — % ______________ (1) Includes annuities with life contingencies. For the year ended December 31, 2016 , reinsurance ceded included affiliated transactions for life insurance in-force of $32.5 billion , and life insurance premiums of $44.2 million . For the year ended December 31, 2015 , reinsurance ceded included affiliated transactions for life insurance in-force of $36.3 billion , and life insurance premiums of $37.1 million . For the year ended December 31, 2014 , reinsurance ceded included affiliated transactions for life insurance in-force of $37.8 billion , and life insurance premiums of $39.5 million . |
Business, Basis of Presentati25
Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates. |
Consolidation of Subsidiaries | Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a stand-alone entity. |
Separate Accounts | Separate Accounts Separate accounts are established in conformity with insurance laws. Generally, the assets of the separate accounts cannot be used to settle the liabilities that arise from any other business of the Company. Separate account assets are subject to general account claims only to the extent the value of such assets exceeds the separate account liabilities. The Company reports separately, as assets and liabilities, investments held in separate accounts and liabilities of the separate accounts if: • such separate accounts are legally recognized; • assets supporting the contract liabilities are legally insulated from the Company’s general account liabilities; • investments are directed by the contractholder; and • all investment performance, net of contract fees and assessments, is passed through to the contractholder. The Company reports separate account assets at their fair value, which is based on the estimated fair values of the underlying assets comprising the individual separate account portfolios. Investment performance (including investment income, net investment gains (losses) and changes in unrealized gains (losses)) and the corresponding amounts credited to contractholders of such separate accounts are offset within the same line on the statements of operations. The Company’s revenues reflect fees charged to the separate accounts, including mortality charges, risk charges, policy administration fees, investment management fees and surrender charges. Such fees are included in universal life and investment-type product policy fees on the statements of operations. |
Future Policy Benefit Liabilities and Policyholder Account Balances | Future Policy Benefit Liabilities and Policyholder Account Balances The Company establishes liabilities for amounts payable under insurance policies. Generally, amounts are payable over an extended period of time and related liabilities are calculated as the present value of future expected benefits to be paid, reduced by the present value of future expected premiums. Such liabilities are established based on methods and underlying assumptions that are in accordance with GAAP and applicable actuarial standards. The principal assumptions used in the establishment of liabilities for future policy benefits are mortality, policy lapse, policy renewal, investment returns, inflation, expenses and other contingent events as appropriate to the respective product type. These assumptions are established at the time the policy is issued and locked in and are intended to estimate the experience for the period the policy benefits are payable. Utilizing these assumptions, liabilities are established on a block of business basis. For long duration insurance contracts, assumptions such as mortality and interest rates are locked in upon the issuance of new business. However, significant adverse changes in experience on such contracts may require the establishment of premium deficiency reserves. Such reserves are determined based on the then current assumptions and do not include a provision for adverse deviation. The Company regularly reviews its estimates of liabilities for future policy benefits and compares them with its actual experience. Differences result in changes to the liability balances with related charges or credits to benefit expenses in the period in which the changes occur. Policyholder account balances relate to contracts or contract features where the Company has no significant insurance risk. Product Type: Measurement Assumptions: Nonparticipating life Aggregate of the present value of expected future benefit payments and related expenses less the present value of expected future net premiums. Assumptions as to mortality and persistency are based upon the Company’s experience when the basis of the liability is established. Interest rate assumptions for the aggregate future policy benefit liabilities range from 3% to 5%. Traditional fixed annuities after annuitization Present value of expected future payments. Interest rate assumptions used in establishing such liabilities range from 3% to 6%. Policyholder account balances are equal to: (i) policy account values, which consist of an accumulation of gross premium payments; and (ii) credited interest, ranging from 1% to 7% , less expenses, mortality charges and withdrawals. |
Variable Annuity Guaranteed Minimum Benefits | The Company issues directly, certain variable annuity products with guaranteed minimum benefits that provide the policyholder a minimum return based on their initial deposit (i.e., the benefit base) less withdrawals. These guarantees are accounted for as insurance liabilities or as embedded derivatives depending on how and when the benefit is paid. Specifically, a guarantee is accounted for as an embedded derivative if a guarantee is paid without requiring (i) the occurrence of specific insurable event, or (ii) the policyholder to annuitize. Alternatively, a guarantee is accounted for as an insurance liability if the guarantee is paid only upon either (i) the occurrence of a specific insurable event, or (ii) annuitization. In certain cases, a guarantee may have elements of both an insurance liability and an embedded derivative and in such cases the guarantee is split and accounted for under both models. Guarantees accounted for as insurance liabilities in future policy benefits include guaranteed minimum death benefits (“GMDBs”), the portion of guaranteed minimum income benefits (“GMIBs”) that require annuitization, and the life-contingent portion of guaranteed minimum withdrawal benefits (“GMWBs”). Guarantees accounted for as embedded derivatives in policyholder account balances include the non life-contingent portion of GMWBs, guaranteed minimum accumulation benefits (“GMABs”) and the portion of GMIBs that do not require annuitization. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. The Company issues variable annuity products with guaranteed minimum benefits. GMABs, the non-life-contingent portion of GMWBs and the portion of certain GMIBs that do not require annuitization are accounted for as embedded derivatives in policyholder account balances and are further discussed in Note 7 . Guarantees accounted for as insurance liabilities include: Guarantee: Measurement Assumptions: GMDBs ● A return of purchase payment upon death even if the account value is reduced to zero. ● Present value of expected death benefits in excess of the projected account balance recognizing the excess ratably over the accumulation period based on the present value of total expected assessments. ● An enhanced death benefit may be available for an additional fee. ● Assumptions are consistent with those used for amortizing DAC, and are thus subject to the same variability and risk. ● Investment performance and volatility assumptions are consistent with the historical experience of the appropriate underlying equity index, such as the Standard & Poor’s Global Ratings (“S&P”) 500 Index. ● Benefit assumptions are based on the average benefits payable over a range of scenarios. GMIBs ● After a specified period of time determined at the time of issuance of the variable annuity contract, a minimum accumulation of purchase payments, even if the account value is reduced to zero, that can be annuitized to receive a monthly income stream that is not less than a specified amount. ● Present value of expected income benefits in excess of the projected account balance at any future date of annuitization and recognizing the excess ratably over the accumulation period based on present value of total expected assessments. ● Certain contracts also provide for a guaranteed lump sum return of purchase premium in lieu of the annuitization benefit. ● Assumptions are consistent with those used for estimating GMDB liabilities. ● Calculation incorporates an assumption for the percentage of the potential annuitizations that may be elected by the contractholder. GMWBs ● A return of purchase payment via partial withdrawals, even if the account value is reduced to zero, provided that cumulative withdrawals in a contract year do not exceed a certain limit. ● Expected value of the life contingent payments and expected assessments using assumptions consistent with those used for estimating the GMDB liabilities. ● Certain contracts include guaranteed withdrawals that are life contingent. Embedded Derivatives Embedded derivatives principally include certain direct variable annuity guarantees and certain affiliated ceded reinsurance agreements related to such variable annuity guarantees. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income. The Company issues certain variable annuity products with guaranteed minimum benefits. GMWBs, GMABs and certain GMIBs contain embedded derivatives, which are measured at estimated fair value separately from the host variable annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances on the balance sheets. The Company’s actuarial department calculates the fair value of these embedded derivatives, which are estimated as the present value of projected future benefits minus the present value of projected future fees using actuarial and capital market assumptions including expectations concerning policyholder behavior. The calculation is based on in-force business, and is performed using standard actuarial valuation software which projects future cash flows from the embedded derivative over multiple risk neutral stochastic scenarios using observable risk-free rates. Capital market assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience. The valuation of these guarantee liabilities includes nonperformance risk adjustments and adjustments for a risk margin related to non-capital market inputs. The nonperformance adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market for MetLife, Inc.’s debt, including related credit default swaps. These observable spreads are then adjusted, as necessary, to reflect the priority of these liabilities and the claims paying ability of the issuing insurance subsidiaries as compared to MetLife, Inc. Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions as annuitization, premium persistency, partial withdrawal and surrenders. The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount and cost of capital needed to cover the guarantees. These guarantees may be more costly than expected in volatile or declining equity markets. Market conditions including, but not limited to, changes in interest rates, equity indices, market volatility and foreign currency exchange rates; changes in nonperformance risk; and variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, may result in significant fluctuations in the estimated fair value of the guarantees that could materially affect net income. The Company ceded to an affiliated reinsurance company, the risk associated with certain of the GMIBs, GMABs and GMWBs described above. These reinsurance agreements contain embedded derivatives and are included within premiums, reinsurance and other receivables on the balance sheets with changes in estimated fair value reported in net derivative gains (losses). The value of the embedded derivatives on the ceded risk is determined using a methodology consistent with that described previously for the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer. |
Other Policy-Related Balances | Other Policy-Related Balances Other policy-related balances include policy and contract claims, unearned revenue liabilities and premiums received in advance. The liability for policy and contract claims generally relates to incurred but not reported death claims, as well as claims which have been reported but not yet settled. The liability for these claims is based on the Company’s estimated ultimate cost of settling all claims. The Company derives estimates for the development of incurred but not reported claims principally from analyses of historical patterns of claims by business line. The methods used to determine these estimates are continually reviewed. Adjustments resulting from this continuous review process and differences between estimates and payments for claims are recognized in policyholder benefits and claims expense in the period in which the estimates are changed or payments are made. The unearned revenue liability relates to investment-type products and represents policy charges for services to be provided in future periods. The charges are deferred as unearned revenue and amortized using the product’s estimated gross profits, similar to deferred policy acquisition costs (“DAC”) as discussed further herein. Such amortization is recorded in universal life and investment-type product policy fees. The Company accounts for the prepayment of premiums on its individual life contracts as premiums received in advance and applies the cash received to premiums when due. |
Recognition of Insurance Revenues and Deposits | Recognition of Insurance Revenues and Deposits Premiums related to traditional life and annuity contracts with life contingencies are recognized as revenues when due from policyholders. Policyholder benefits and expenses are provided to recognize profits over the estimated lives of the insurance policies. When premiums are due over a significantly shorter period than the period over which benefits are provided, any excess profit is deferred and recognized into earnings in a constant relationship to insurance in-force or, for annuities, the amount of expected future policy benefit payments. Deposits related to universal life-type and investment-type products are credited to policyholder account balances. Revenues from such contracts consist of fees for mortality, policy administration and surrender charges and are recorded in universal life and investment-type product policy fees in the period in which services are provided. Amounts that are charged to earnings include interest credited and benefit claims incurred in excess of related policyholder account balances. Premiums, policy fees, policyholder benefits and expenses are presented net of reinsurance. |
Deferred Policy Acquisition Costs and Value of Business Acquired | Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that are related directly to the successful acquisition or renewal of insurance contracts are capitalized as DAC. Such costs include: • incremental direct costs of contract acquisition, such as commissions; • the portion of an employee’s total compensation and benefits related to time spent selling, underwriting or processing the issuance of new and renewal insurance business only with respect to actual policies acquired or renewed; and • other essential direct costs that would not have been incurred had a policy not been acquired or renewed. All other acquisition-related costs, including those related to general advertising and solicitation, market research, agent training, product development, unsuccessful sales and underwriting efforts, as well as all indirect costs, are expensed as incurred. Value of business acquired (“VOBA”) is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity, and investment-type contracts in-force at the acquisition date. The estimated fair value of the acquired liabilities is based on projections, by each block of business, of future policy and contract charges, premiums, mortality, separate account performance, surrenders, operating expenses, investment returns, nonperformance risk adjustment and other factors. Actual experience on the purchased business may vary from these projections. DAC and VOBA are amortized as follows: Products: In proportion to the following over estimated lives of the contracts: • Nonparticipating and non-dividend-paying traditional contracts (term insurance) Actual and expected future gross premiums. • Fixed and variable deferred annuity contracts Actual and expected future gross profits. See Note 4 for additional information on DAC and VOBA amortization. The recovery of DAC and VOBA is dependent upon the future profitability of the related business. DAC and VOBA are aggregated on the financial statements for reporting purposes. Nonparticipating and Non-Dividend-Paying Traditional Contracts The Company amortizes DAC and VOBA related to these contracts (primarily term insurance) over the appropriate premium paying period in proportion to the actual and expected future gross premiums that were set at contract issue. The expected premiums are based upon the premium requirement of each policy and assumptions for mortality, persistency and investment returns at policy issuance, or policy acquisition (as it relates to VOBA), include provisions for adverse deviation, and are consistent with the assumptions used to calculate future policy benefit liabilities. These assumptions are not revised after policy issuance or acquisition unless the DAC or VOBA balance is deemed to be unrecoverable from future expected profits. Absent a premium deficiency, variability in amortization after policy issuance or acquisition is caused only by variability in premium volumes. Fixed and Variable Deferred Annuity Contracts The Company amortizes DAC and VOBA related to these contracts over the estimated lives of the contracts in proportion to actual and expected future gross profits. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The amount of future gross profits is dependent principally upon returns in excess of the amounts credited to policyholders, mortality, persistency, interest crediting rates, expenses to administer the business, creditworthiness of reinsurance counterparties, the effect of any hedges used and certain economic variables, such as inflation. Of these factors, the Company anticipates that investment returns, expenses and persistency are reasonably likely to significantly impact the rate of DAC and VOBA amortization. Each reporting period, the Company updates the estimated gross profits with the actual gross profits for that period. When the actual gross profits change from previously estimated gross profits, the cumulative DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. When actual gross profits exceed those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the actual gross profits are below the previously estimated gross profits. Each reporting period, the Company also updates the actual amount of business remaining in-force, which impacts expected future gross profits. When expected future gross profits are below those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the expected future gross profits are above the previously estimated expected future gross profits. Each period, the Company also reviews the estimated gross profits for each block of business to determine the recoverability of DAC and VOBA balances. Factors Impacting Amortization Separate account rates of return on variable deferred annuity contracts affect in-force account balances on such contracts each reporting period, which can result in significant fluctuations in amortization of DAC and VOBA. Returns that are higher than the Company’s long-term expectation produce higher account balances, which increases the Company’s future fee expectations and decreases future benefit payment expectations on minimum death and living benefit guarantees, resulting in higher expected future gross profits. The opposite result occurs when returns are lower than the Company’s long-term expectation. The Company’s practice to determine the impact of gross profits resulting from returns on separate accounts assumes that long-term appreciation in equity markets is not changed by short-term market fluctuations, but is only changed when sustained interim deviations are expected. The Company monitors these events and only changes the assumption when its long-term expectation changes. The Company also periodically reviews other long-term assumptions underlying the projections of estimated gross profits. These assumptions primarily relate to investment returns, interest crediting rates, mortality, persistency and expenses to administer business. Management annually updates assumptions used in the calculation of estimated gross profits which may have significantly changed. If the update of assumptions causes expected future gross profits to increase, DAC and VOBA amortization will generally decrease, resulting in a current period increase to earnings. The opposite result occurs when the assumption update causes expected future gross profits to decrease. Periodically, the Company modifies product benefits, features, rights or coverages that occur by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. If such modification, referred to as an internal replacement, substantially changes the contract, the associated DAC or VOBA is written off immediately through income and any new deferrable costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC or VOBA amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed. Amortization of DAC and VOBA is attributed to net investment gains (losses) and net derivative gains (losses), and to other expenses for the amount of gross profits originating from transactions other than investment gains and losses. Unrealized investment gains and losses represent the amount of DAC and VOBA that would have been amortized if such gains and losses had been recognized. |
Deferred Policy Acquisition Costs and Value of Business Acquired | Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that are related directly to the successful acquisition or renewal of insurance contracts are capitalized as DAC. Such costs include: • incremental direct costs of contract acquisition, such as commissions; • the portion of an employee’s total compensation and benefits related to time spent selling, underwriting or processing the issuance of new and renewal insurance business only with respect to actual policies acquired or renewed; and • other essential direct costs that would not have been incurred had a policy not been acquired or renewed. All other acquisition-related costs, including those related to general advertising and solicitation, market research, agent training, product development, unsuccessful sales and underwriting efforts, as well as all indirect costs, are expensed as incurred. Value of business acquired (“VOBA”) is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity, and investment-type contracts in-force at the acquisition date. The estimated fair value of the acquired liabilities is based on projections, by each block of business, of future policy and contract charges, premiums, mortality, separate account performance, surrenders, operating expenses, investment returns, nonperformance risk adjustment and other factors. Actual experience on the purchased business may vary from these projections. DAC and VOBA are amortized as follows: Products: In proportion to the following over estimated lives of the contracts: • Nonparticipating and non-dividend-paying traditional contracts (term insurance) Actual and expected future gross premiums. • Fixed and variable deferred annuity contracts Actual and expected future gross profits. See Note 4 for additional information on DAC and VOBA amortization. The recovery of DAC and VOBA is dependent upon the future profitability of the related business. DAC and VOBA are aggregated on the financial statements for reporting purposes. Nonparticipating and Non-Dividend-Paying Traditional Contracts The Company amortizes DAC and VOBA related to these contracts (primarily term insurance) over the appropriate premium paying period in proportion to the actual and expected future gross premiums that were set at contract issue. The expected premiums are based upon the premium requirement of each policy and assumptions for mortality, persistency and investment returns at policy issuance, or policy acquisition (as it relates to VOBA), include provisions for adverse deviation, and are consistent with the assumptions used to calculate future policy benefit liabilities. These assumptions are not revised after policy issuance or acquisition unless the DAC or VOBA balance is deemed to be unrecoverable from future expected profits. Absent a premium deficiency, variability in amortization after policy issuance or acquisition is caused only by variability in premium volumes. Fixed and Variable Deferred Annuity Contracts The Company amortizes DAC and VOBA related to these contracts over the estimated lives of the contracts in proportion to actual and expected future gross profits. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The amount of future gross profits is dependent principally upon returns in excess of the amounts credited to policyholders, mortality, persistency, interest crediting rates, expenses to administer the business, creditworthiness of reinsurance counterparties, the effect of any hedges used and certain economic variables, such as inflation. Of these factors, the Company anticipates that investment returns, expenses and persistency are reasonably likely to significantly impact the rate of DAC and VOBA amortization. Each reporting period, the Company updates the estimated gross profits with the actual gross profits for that period. When the actual gross profits change from previously estimated gross profits, the cumulative DAC and VOBA amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. When actual gross profits exceed those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the actual gross profits are below the previously estimated gross profits. Each reporting period, the Company also updates the actual amount of business remaining in-force, which impacts expected future gross profits. When expected future gross profits are below those previously estimated, the DAC and VOBA amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the expected future gross profits are above the previously estimated expected future gross profits. Each period, the Company also reviews the estimated gross profits for each block of business to determine the recoverability of DAC and VOBA balances. Factors Impacting Amortization Separate account rates of return on variable deferred annuity contracts affect in-force account balances on such contracts each reporting period, which can result in significant fluctuations in amortization of DAC and VOBA. Returns that are higher than the Company’s long-term expectation produce higher account balances, which increases the Company’s future fee expectations and decreases future benefit payment expectations on minimum death and living benefit guarantees, resulting in higher expected future gross profits. The opposite result occurs when returns are lower than the Company’s long-term expectation. The Company’s practice to determine the impact of gross profits resulting from returns on separate accounts assumes that long-term appreciation in equity markets is not changed by short-term market fluctuations, but is only changed when sustained interim deviations are expected. The Company monitors these events and only changes the assumption when its long-term expectation changes. The Company also periodically reviews other long-term assumptions underlying the projections of estimated gross profits. These assumptions primarily relate to investment returns, interest crediting rates, mortality, persistency and expenses to administer business. Management annually updates assumptions used in the calculation of estimated gross profits which may have significantly changed. If the update of assumptions causes expected future gross profits to increase, DAC and VOBA amortization will generally decrease, resulting in a current period increase to earnings. The opposite result occurs when the assumption update causes expected future gross profits to decrease. Periodically, the Company modifies product benefits, features, rights or coverages that occur by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. If such modification, referred to as an internal replacement, substantially changes the contract, the associated DAC or VOBA is written off immediately through income and any new deferrable costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC or VOBA amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed. Amortization of DAC and VOBA is attributed to net investment gains (losses) and net derivative gains (losses), and to other expenses for the amount of gross profits originating from transactions other than investment gains and losses. Unrealized investment gains and losses represent the amount of DAC and VOBA that would have been amortized if such gains and losses had been recognized. |
Deferred Sales Inducements | The Company generally has two different types of sales inducements which are included in other assets: (i) the policyholder receives a bonus whereby the policyholder’s initial account balance is increased by an amount equal to a specified percentage of the customer’s deposit; and (ii) the policyholder receives a higher interest rate using a dollar cost averaging method than would have been received based on the normal general account interest rate credited. The Company defers sales inducements and amortizes them over the life of the policy using the same methodology and assumptions used to amortize DAC. The amortization of sales inducements is included in policyholder benefits and claims. Each year, or more frequently if circumstances indicate a potential recoverability issue exists, the Company reviews deferred sales inducements (“DSI”) to determine the recoverability of the asset. |
Value of Distribution Agreements | Value of distribution agreements acquired (“VODA”) is reported in other assets and represents the present value of expected future profits associated with the expected future business derived from the distribution agreements. The VODA associated with past business combinations is amortized over useful lives ranging from 10 to 30 years and such amortization is included in other expenses. Each year, or more frequently if circumstances indicate a possible impairment exists, the Company reviews VODA to determine whether the asset is impaired. |
Reinsurance | Reinsurance For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. Cessions under reinsurance agreements do not discharge the Company’s obligations as the primary insurer. The Company reviews all contractual features, including those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims. For reinsurance of existing in-force blocks of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid, and the liabilities ceded related to the underlying contracts is considered the net cost of reinsurance at the inception of the reinsurance agreement. The net cost of reinsurance is recorded as an adjustment to DAC when there is a gain at inception on the ceding entity and to other liabilities when there is a loss at inception. The net cost of reinsurance is recognized as a component of other expenses when there is a gain at inception and as policyholder benefits and claims when there is a loss and is subsequently amortized on a basis consistent with the methodology used for amortizing DAC related to the underlying reinsured contracts. Subsequent amounts paid on the reinsurance of in-force blocks, as well as amounts paid related to new business, are recorded as ceded premiums and ceded premiums, reinsurance and other receivables are established. Amounts currently recoverable under reinsurance agreements are included in premiums, reinsurance and other receivables and amounts currently payable are included in other liabilities. Assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance. The funds withheld liability represents amounts withheld by the Company in accordance with the terms of the reinsurance agreements. The Company withholds the funds rather than transferring the underlying investments and, as a result, records funds withheld liability within other liabilities. The Company recognizes interest on funds withheld, included in other expenses, at rates defined by the terms of the agreement which may be contractually specified or directly related to the investment portfolio. Premiums, fees and policyholder benefits and claims are net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in other revenues. With respect to GMIBs, a portion of the directly written GMIBs are accounted for as insurance liabilities, but the associated reinsurance agreements contain embedded derivatives. These embedded derivatives are included in premiums, reinsurance and other receivables with changes in estimated fair value reported in net derivative gains (losses). If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included within premiums, reinsurance and other receivables. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on such deposits is recorded as other revenues or other expenses, as appropriate. Periodically, the Company evaluates the adequacy of the expected payments or recoveries and adjusts the deposit asset or liability through other revenues or other expenses, as appropriate. |
Investments | Investments Net Investment Income and Net Investment Gains (Losses) Income from investments is reported within net investment income, unless otherwise stated herein. Gains and losses on sales of investments, impairment losses and changes in valuation allowances are reported within net investment gains (losses), unless otherwise stated herein. Fixed Maturity Securities The Company’s fixed maturity securities are classified as available-for-sale (“AFS”) and are reported at their estimated fair value. Unrealized investment gains and losses on these securities are recorded as a separate component of other comprehensive income (loss) (“OCI”), net of policy-related amounts and deferred income taxes. All security transactions are recorded on a trade date basis. Investment gains and losses on sales are determined on a specific identification basis. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts and is based on the estimated economic life of the securities, which for mortgage-backed and asset-backed securities considers the estimated timing and amount of prepayments of the underlying loans. (See Note 6 “Investments — Fixed Maturity Securities AFS — Methodology for Amortization of Premium and Accretion of Discount on Structured Securities”). The amortization of premium and accretion of discount of fixed maturity securities also takes into consideration call and maturity dates. Dividends on equity securities are recognized when declared. The Company periodically evaluates fixed maturity securities for impairment. The assessment of whether impairments have occurred is based on management’s case-by-case evaluation of the underlying reasons for the decline in estimated fair value, as well as an analysis of the gross unrealized losses by severity and/or age as described in Note 6 “— Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities.” For fixed maturity securities in an unrealized loss position, an other-than-temporary impairment (“OTTI”) is recognized in earnings when it is anticipated that the amortized cost will not be recovered. When either: (i) the Company has the intent to sell the security; or (ii) it is more likely than not that the Company will be required to sell the security before recovery, the OTTI recognized in earnings is the entire difference between the security’s amortized cost and estimated fair value. If neither of these conditions exists, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected is recognized as an OTTI in earnings (“credit loss”). If the estimated fair value is less than the present value of projected future cash flows expected to be collected, this portion of OTTI related to other-than-credit factors (“noncredit loss”) is recorded in OCI. Mortgage Loans The Company disaggregates its mortgage loan investments into two portfolio segments: commercial and agricultural. The accounting policies that are applicable to both portfolio segments are presented below and the accounting policies related to each of the portfolio segments are included in Note 6 . Mortgage loans are stated at unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, and are net of valuation allowances. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts. Short-term Investments Short-term investments include securities and other investments with remaining maturities of one year or less, but greater than three months, at the time of purchase and are stated at estimated fair value or amortized cost, which approximates estimated fair value. Other Invested Assets Other invested assets consist of freestanding derivatives with positive estimated fair values which are described in “— Derivatives” below. Investment Risks and Uncertainties Investments are exposed to the following primary sources of risk: credit, interest rate, liquidity, market valuation, currency and real estate risk. The financial statement risks, stemming from such investment risks, are those associated with the determination of estimated fair values, the diminished ability to sell certain investments in times of strained market conditions, the recognition of impairments, the recognition of income on certain investments and the potential consolidation of VIEs. The use of different methodologies, assumptions and inputs relating to these financial statement risks may have a material effect on the amounts presented within the financial statements. The determination of valuation allowances and impairments is highly subjective and is based upon periodic evaluations and assessments of known and inherent risks associated with the respective asset class. Such evaluations and assessments are revised as conditions change and new information becomes available. The recognition of income on certain investments (e.g. structured securities, including mortgage-backed securities, asset-backed securities (“ABS”) and certain structured investment transactions) is dependent upon certain factors such as prepayments and defaults, and changes in such factors could result in changes in amounts to be earned. Maturities of Fixed Maturity Securities Evaluation and Measurement Methodologies Management considers a wide range of factors about the security issuer and uses its best judgment in evaluating the cause of the decline in the estimated fair value of the security and in assessing the prospects for near-term recovery. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the impairment evaluation process include, but are not limited to: (i) the length of time and the extent to which the estimated fair value has been below amortized cost; (ii) the potential for impairments when the issuer is experiencing significant financial difficulties; (iii) the potential for impairments in an entire industry sector or sub-sector; (iv) the potential for impairments in certain economically depressed geographic locations; (v) the potential for impairments where the issuer, series of issuers or industry has suffered a catastrophic loss or has exhausted natural resources; (vi) whether the Company has the intent to sell or will more likely than not be required to sell a particular security before the decline in estimated fair value below amortized cost recovers; (vii) with respect to Structured Securities, changes in forecasted cash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying assets backing a particular security, and the payment priority within the tranche structure of the security; (viii) the potential for impairments due to weakening of foreign currencies on non-functional currency denominated fixed maturity securities that are near maturity; and (ix) other subjective factors, including concentrations and information obtained from regulators and rating agencies. The methodology and significant inputs used to determine the amount of credit loss on fixed maturity securities are as follows: • The Company calculates the recovery value by performing a discounted cash flow analysis based on the present value of future cash flows. The discount rate is generally the effective interest rate of the security prior to impairment. • When determining collectability and the period over which value is expected to recover, the Company applies considerations utilized in its overall impairment evaluation process which incorporates information regarding the specific security, fundamentals of the industry and geographic area in which the security issuer operates, and overall macroeconomic conditions. Projected future cash flows are estimated using assumptions derived from management’s best estimates of likely scenario-based outcomes after giving consideration to a variety of variables that include, but are not limited to: payment terms of the security; the likelihood that the issuer can service the interest and principal payments; the quality and amount of any credit enhancements; the security’s position within the capital structure of the issuer; possible corporate restructurings or asset sales by the issuer; and changes to the rating of the security or the issuer by rating agencies. • Additional considerations are made when assessing the unique features that apply to certain Structured Securities including, but not limited to: the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying loans or assets backing a particular security, and the payment priority within the tranche structure of the security. • When determining the amount of the credit loss for U.S. and foreign corporate securities, state and political subdivision securities and foreign government securities, the estimated fair value is considered the recovery value when available information does not indicate that another value is more appropriate. When information is identified that indicates a recovery value other than estimated fair value, management considers in the determination of recovery value the same considerations utilized in its overall impairment evaluation process as described above, as well as any private and public sector programs to restructure such securities. The amortized cost of fixed maturity securities is adjusted for OTTI in the period in which the determination is made. The Company does not change the revised cost basis for subsequent recoveries in value. In periods subsequent to the recognition of OTTI on a fixed maturity security, the Company accounts for the impaired security as if it had been purchased on the measurement date of the impairment. Accordingly, the discount (or reduced premium) based on the new cost basis is accreted over the remaining term of the fixed maturity security in a prospective manner based on the amount and timing of estimated future cash flows. Mortgage Loans Modified in a Troubled Debt Restructuring The Company may grant concessions related to borrowers experiencing financial difficulties which are classified as troubled debt restructurings. Generally, the types of concessions include: reduction of the contractual interest rate, extension of the maturity date at an interest rate lower than current market interest rates, and/or a reduction of accrued interest. The amount, timing and extent of the concessions granted are considered in determining any impairment or changes in the specific valuation allowance. Past Due and Nonaccrual Mortgage Loans Valuation Allowance Methodology Mortgage loans are considered to be impaired when it is probable that, based upon current information and events, the Company will be unable to collect all amounts due under the loan agreement. Specific valuation allowances are established using the same methodology for both portfolio segments as the excess carrying value of a loan over either (i) the present value of expected future cash flows discounted at the loan’s original effective interest rate, (ii) the estimated fair value of the loan’s underlying collateral if the loan is in the process of foreclosure or otherwise collateral dependent, or (iii) the loan’s observable market price. A common evaluation framework is used for establishing non-specific valuation allowances for both loan portfolio segments; however, a separate non-specific valuation allowance is calculated and maintained for each loan portfolio segment that is based on inputs unique to each loan portfolio segment. Non-specific valuation allowances are established for pools of loans with similar risk characteristics where a property-specific or market-specific risk has not been identified, but for which the Company expects to incur a credit loss. These evaluations are based upon several loan portfolio segment-specific factors, including the Company’s experience for loan losses, defaults and loss severity, and loss expectations for loans with similar risk characteristics. These evaluations are revised as conditions change and new information becomes available. Commercial and Agricultural Mortgage Loan Portfolio Segments The Company typically uses several years of historical experience in establishing non-specific valuation allowances which captures multiple economic cycles. For evaluations of commercial mortgage loans, in addition to historical experience, management considers factors that include the impact of a rapid change to the economy, which may not be reflected in the loan portfolio, and recent loss and recovery trend experience as compared to historical loss and recovery experience. For evaluations of agricultural mortgage loans, in addition to historical experience, management considers factors that include increased stress in certain sectors, which may be evidenced by higher delinquency rates, or a change in the number of higher risk loans. On a quarterly basis, management incorporates the impact of these current market events and conditions on historical experience in determining the non-specific valuation allowance established for commercial and agricultural mortgage loans. All commercial mortgage loans are reviewed on an ongoing basis which may include an analysis of the property financial statements and rent roll, lease rollover analysis, property inspections, market analysis, estimated valuations of the underlying collateral, loan-to-value ratios, debt service coverage ratios, and tenant creditworthiness. The monitoring process focuses on higher risk loans, which include those that are classified as restructured, delinquent or in foreclosure, as well as loans with higher loan-to-value ratios and lower debt service coverage ratios. All agricultural mortgage loans are monitored on an ongoing basis. The monitoring process for agricultural mortgage loans is generally similar to the commercial mortgage loan monitoring process, with a focus on higher risk loans, including reviews on a geographic and property-type basis. Higher risk loans are reviewed individually on an ongoing basis for potential credit loss and specific valuation allowances are established using the methodology described above. Quarterly, the remaining loans are reviewed on a pool basis by aggregating groups of loans that have similar risk characteristics for potential credit loss, and non-specific valuation allowances are established as described above using inputs that are unique to each segment of the loan portfolio. For commercial mortgage loans, the primary credit quality indicator is the debt service coverage ratio, which compares a property’s net operating income to amounts needed to service the principal and interest due under the loan. Generally, the lower the debt service coverage ratio, the higher the risk of experiencing a credit loss. The Company also reviews the loan-to-value ratio of its commercial mortgage loan portfolio. Loan-to-value ratios compare the unpaid principal balance of the loan to the estimated fair value of the underlying collateral. Generally, the higher the loan-to-value ratio, the higher the risk of experiencing a credit loss. The debt service coverage ratio and the values utilized in calculating the ratio are updated annually on a rolling basis, with a portion of the portfolio updated each quarter. In addition, the loan-to-value ratio is routinely updated for all but the lowest risk loans as part of the Company’s ongoing review of its commercial mortgage loan portfolio. For agricultural mortgage loans, the Company’s primary credit quality indicator is the loan-to-value ratio. The values utilized in calculating this ratio are developed in connection with the ongoing review of the agricultural mortgage loan portfolio and are routinely updated. The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial mortgage loans – 60 days and agricultural mortgage loans – 90 days. Variable Interest Entities The Company has invested in certain entities that are VIEs. In certain instances, the Company may hold both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, it would be deemed the primary beneficiary or consolidator of the entity. The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. |
Derivatives | Derivatives Freestanding Derivatives Freestanding derivatives are carried on the Company’s balance sheet either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the derivatives carrying value in other invested assets or other liabilities. If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are reported in net derivative gains (losses). Hedge Accounting To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. Hedge designation and financial statement presentation of changes in estimated fair value of the hedging derivatives are as follows: • Cash flow hedge (a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability) - effectiveness in OCI (deferred gains or losses on the derivative are reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item); ineffectiveness in net derivative gains (losses). The changes in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported on the statement of operations within interest income or interest expense to match the location of the hedged item. In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. Assessments of hedge effectiveness and measurements of ineffectiveness are also subject to interpretation and estimation and different interpretations or estimates may have a material effect on the amount reported in net income. The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument. When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the cash flows of a hedged item, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within two months of that date, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized currently in net derivative gains (losses). Deferred gains and losses of a derivative recorded in OCI pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable are recognized immediately in net derivative gains (losses). In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). Embedded Derivatives The Company sells variable annuities and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if: • the combined instrument is not accounted for in its entirety at estimated fair value with changes in estimated fair value recorded in earnings; • the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and • a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument. Such embedded derivatives are carried on the balance sheet at estimated fair value with the host contract and changes in their estimated fair value are generally reported in net derivative gains (losses). If the Company is unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income. Additionally, the Company may elect to carry an entire contract on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income if that contract contains an embedded derivative that requires bifurcation. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. |
Fair Value | Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In most cases, the exit price and the transaction (or entry) price will be the same at initial recognition. Subsequent to initial recognition, fair values are based on unadjusted quoted prices for identical assets or liabilities in active markets that are readily and regularly obtainable. When such quoted prices are not available, fair values are based on quoted prices in markets that are not active, quoted prices for similar but not identical assets or liabilities, or other observable inputs. If these inputs are not available, or observable inputs are not determinable, unobservable inputs and/or adjustments to observable inputs requiring management judgment are used to determine the estimated fair value of assets and liabilities. When developing estimated fair values, the Company considers three broad valuation techniques: (i) the market approach, (ii) the income approach, and (iii) the cost approach. The Company determines the most appropriate valuation technique to use, given what is being measured and the availability of sufficient inputs, giving priority to observable inputs. The Company categorizes its assets and liabilities measured at estimated fair value into a three-level hierarchy, based on the significant input with the lowest level in its valuation. The input levels are as follows: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. The Company defines active markets based on average trading volume for equity securities. The size of the bid/ask spread is used as an indicator of market activity for fixed maturity securities. Level 2 Quoted prices in markets that are not active or inputs that are observable either directly or indirectly. These inputs can include quoted prices for similar assets or liabilities other than quoted prices in Level 1, quoted prices in markets that are not active, or other significant inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the determination of estimated fair value of the assets or liabilities. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. Financial markets are susceptible to severe events evidenced by rapid depreciation in asset values accompanied by a reduction in asset liquidity. The Company’s ability to sell securities, or the price ultimately realized for these securities, depends upon the demand and liquidity in the market and increases the use of judgment in determining the estimated fair value of certain securities. Considerable judgment is often required in interpreting market data to develop estimates of fair value, and the use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts. |
Employee Benefit Plans | Employee Benefit Plans Through December 31, 2016, Metropolitan Life Insurance Company (“MLIC”) provided and the Company contributed to defined benefit pension and postemployment plans for its employees and retirees. MLIC also provides and the Company contributes to a postretirement medical and life insurance benefit plan for certain retired employees. The Company accounts for these plans as multiemployer benefit plans and as a result the assets, obligations and other comprehensive gains and losses of these benefit plans are not included in the balance sheet. Within its statement of operations, the Company has included expense associated with its participants in these plans. These plans also include participants from other affiliates of MLIC. The Company’s participation in these plans ceased December 31, 2016. Defined Contribution Plans Through December 31, 2016, MLIC provides and the Company contributes to a defined contribution plan sponsored by MLIC for substantially all employees under which a portion of employee contributions are matched. The Company’s participation in this plan ceased on December 31, 2016. |
Income Tax | Income Tax The Company joins with MetLife and its includable subsidiaries in filing a consolidated U.S. life and non-life federal income tax return in accordance with the provisions of the Internal Revenue Code of 1986, as amended. Current taxes (and the benefits of tax attributes such as losses) are allocated to the Company under the consolidated tax return regulations and a tax sharing agreement. Under the consolidated tax return regulations, MetLife has elected the “percentage method” (and 100% under such method) of reimbursing companies for tax attributes, e.g., net operating losses. As a result, 100% of tax attributes are reimbursed by MetLife to the extent that consolidated federal income tax of the consolidated federal tax return group is reduced in a year by tax attributes. On an annual basis, each of the profitable subsidiaries pays to MetLife the federal income tax which it would have paid based upon that year’s taxable income. If the Company has current or prior deductions and credits (including but not limited to losses) which reduce the consolidated tax liability of the consolidated federal tax return group, the deductions and credits are characterized as realized (or realizable) by the Company when those tax attributes are realized (or realizable) by the consolidated federal tax return group, even if the Company would not have realized the attributes on a stand-alone basis under a “wait and see” method. The Company’s accounting for income taxes represents management’s best estimate of various events and transactions. Deferred tax assets and liabilities resulting from temporary differences between the financial reporting and tax bases of assets and liabilities are measured at the balance sheet date using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. The realization of deferred tax assets depends upon the existence of sufficient taxable income within the carryback or carryforward periods under the tax law in the applicable tax jurisdiction. Valuation allowances are established against deferred tax assets when management determines, based on available information, that it is more likely than not that deferred income tax assets will not be realized. Significant judgment is required in determining whether valuation allowances should be established, as well as the amount of such allowances. When making such determination, the Company considers many factors, including: • the nature, frequency, and amount of cumulative financial reporting income and losses in recent years; • the jurisdiction in which the deferred tax asset was generated; • the length of time that carryforward can be utilized in the various taxing jurisdiction; • future taxable income exclusive of reversing temporary differences and carryforwards; • future reversals of existing taxable temporary differences; • taxable income in prior carryback years; and • tax planning strategies. The Company may be required to change its provision for income taxes when estimates used in determining valuation allowances on deferred tax assets significantly change or when receipt of new information indicates the need for adjustment in valuation allowances. Additionally, the effect of changes in tax laws, tax regulations, or interpretations of such laws or regulations, is recognized in net income tax expense (benefit) in the period of change. The Company determines whether it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded on the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. Unrecognized tax benefits due to tax uncertainties that do not meet the threshold are included within other liabilities and are charged to earnings in the period that such determination is made. The Company classifies interest recognized as interest expense and penalties recognized as a component of income tax expense. |
Litigation Contingencies | Litigation Contingencies The Company may be a party to legal actions or regulatory investigations. Given the inherent unpredictability of these matters, it is difficult to estimate the impact, if any, on the Company’s financial position. Liabilities are established when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Legal costs are recognized as incurred. On a quarterly and annual basis, the Company reviews relevant information with respect to liabilities for litigation, regulatory investigations and litigation-related contingencies to be reflected on the Company’s financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid securities and other investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. Cash equivalents are stated at amortized cost, which approximates estimated fair value. |
Computer Software | Computer Software Computer software, which is included in other assets, is stated at cost, less accumulated amortization. Purchased software costs, as well as certain internal and external costs incurred to develop internal-use computer software during the application development stage, are capitalized. Such costs are amortized generally over a four -year period using the straight-line method. The cost basis of computer software was $12.4 million at both December 31, 2016 and 2015 . Accumulated amortization of capitalized software was $5.9 million and $3.8 million at December 31, 2016 and 2015 , respectively. Related amortization expense was $2.2 million , $13 thousand and $212 thousand for the years ended December 31, 2016 , 2015 and 2014 , respectively. |
Other Revenues | Other Revenues Other revenues primarily include, in addition to items described elsewhere herein, fee income on financial reinsurance agreements. Such fees are recognized in the period in which services are performed. |
Foreign Currency | Foreign Currency Gains and losses from foreign currency transactions, including the effect of re-measurement of monetary assets and liabilities to the appropriate functional currency, are reported as part of net investment gains (losses) in the period in which they occur. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Information, by Segment | Operating Results Year Ended December 31, 2016 Annuities Life Corporate Total (In thousands) Pre-tax operating earnings $ 52,855 $ 40,561 $ 9,665 $ 103,081 Provision for income tax expense (benefit) 14,623 14,197 3,014 31,834 Operating earnings $ 38,232 $ 26,364 $ 6,651 71,247 Adjustments for: Net investment gains (losses) (3,737 ) Net derivative gains (losses) 67,726 Other adjustments to net income (34,508 ) Provision for income tax (expense) benefit (10,318 ) Net income (loss) $ 90,410 Inter-segment revenues $ 70 $ (3,791 ) $ (1,555 ) Interest revenue $ 27,747 $ 17,108 $ 13,204 At December 31, 2016 Annuities Life Corporate & Other Total (In thousands) Total assets $ 6,708,803 $ 342,592 $ 581,651 $ 7,633,046 Separate account assets $ 4,758,449 $ — $ — $ 4,758,449 Separate account liabilities $ 4,758,449 $ — $ — $ 4,758,449 Operating Results Year Ended December 31, 2015 Annuities Life Corporate Total (In thousands) Pre-tax operating earnings $ 20,794 $ (60,934 ) $ 11,842 $ (28,298 ) Provision for income tax expense (benefit) 1,139 (21,327 ) 3,493 (16,695 ) Operating earnings $ 19,655 $ (39,607 ) $ 8,349 (11,603 ) Adjustments for: Net investment gains (losses) 4,399 Net derivative gains (losses) 65,000 Other adjustments to net income (16,018 ) Provision for income tax (expense) benefit (18,683 ) Net income (loss) $ 23,095 Inter-segment revenues $ 1,505 $ (36,366 ) $ (1,371 ) Interest revenue $ 23,210 $ 15,432 $ 14,516 At December 31, 2015 Annuities Life Corporate Total (In thousands) Total assets $ 6,675,617 $ 607,090 $ 493,070 $ 7,775,777 Separate account assets $ 4,792,140 $ — $ — $ 4,792,140 Separate account liabilities $ 4,792,140 $ — $ — $ 4,792,140 Operating Results Year Ended December 31, 2014 Annuities Life Corporate Total (In thousands) Pre-tax operating earnings $ 22,539 $ (7,980 ) $ 9,352 $ 23,911 Provision for income tax expense (benefit) 8,239 (2,493 ) (4,059 ) 1,687 Operating earnings $ 14,300 $ (5,487 ) $ 13,411 22,224 Adjustments for: Net investment gains (losses) 552 Net derivative gains (losses) 127,162 Other adjustments to net income (28,906 ) Provision for income tax (expense) benefit (34,583 ) Net income (loss) $ 86,449 Inter-segment revenues $ 53,368 $ (38,850 ) $ (1,221 ) Interest revenue $ 12,801 $ 14,032 $ 14,388 |
Premiums, Universal Life and Investment-Type Policy Fees and Other Revenue by Product Groups for Reportable Segment | The following table presents total premiums, universal life and investment-type product policy fees and other revenues by major product groups of the Company’s segments, as well as Corporate & Other: Years Ended December 31, 2016 2015 2014 (In thousands) Annuity products $ 112,018 $ 130,167 $ 185,531 Life insurance products 70,913 43,145 47,800 Total $ 182,931 $ 173,312 $ 233,331 |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Reconciliation of Company operating revenues to total revenues: Years Ended December 31, 2016 2015 2014 (In thousands) Annuities $ 125,308 $ 139,102 $ 188,831 Life 86,089 56,322 59,092 Total segment 211,397 195,424 247,923 Corporate & Other 15,135 16,771 17,128 Net investment gains (losses) (3,737 ) 4,399 552 Net derivative gains (losses) 67,726 65,000 127,162 Other adjustments 14,179 14,061 9,333 Total $ 304,700 $ 295,655 $ 402,098 |
Insurance (Tables)
Insurance (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Insurance Liabilities | Information regarding insurance liabilities by segment, as well as Corporate & Other, was as follows at: December 31, 2016 2015 (In thousands) Annuities $ 1,504,773 $ 1,503,640 Life 322,319 294,888 Corporate & Other 9,550 6,733 Total $ 1,836,642 $ 1,805,261 |
Liabilities for Guarantees | Information regarding the liabilities for guarantees (excluding base policy liabilities and embedded derivatives) relating to annuity contracts was as follows: Annuity Contracts GMDBs GMIBs Total (In thousands) Direct Balance at January 1, 2014 $ 4,775 $ 77,511 $ 82,286 Incurred guaranteed benefits 2,397 19,215 21,612 Paid guaranteed benefits (20 ) — (20 ) Balance at December 31, 2014 7,152 96,726 103,878 Incurred guaranteed benefits 1,175 20,004 21,179 Paid guaranteed benefits (238 ) — (238 ) Balance at December 31, 2015 8,089 116,730 124,819 Incurred guaranteed benefits 2,272 32,338 34,610 Paid guaranteed benefits (560 ) 1 (559 ) Balance at December 31, 2016 $ 9,801 $ 149,069 $ 158,870 Ceded Balance at January 1, 2014 $ 4,775 $ 26,526 $ 31,301 Incurred guaranteed benefits 2,397 5,961 8,358 Paid guaranteed benefits (20 ) — (20 ) Balance at December 31, 2014 7,152 32,487 39,639 Incurred guaranteed benefits 1,664 7,433 9,097 Paid guaranteed benefits (238 ) — (238 ) Balance at December 31, 2015 8,578 39,920 48,498 Incurred guaranteed benefits 2,215 11,570 13,785 Paid guaranteed benefits (560 ) — (560 ) Balance at December 31, 2016 $ 10,233 $ 51,490 $ 61,723 Net Balance at January 1, 2014 $ — $ 50,985 $ 50,985 Incurred guaranteed benefits — 13,254 13,254 Paid guaranteed benefits — — — Balance at December 31, 2014 — 64,239 64,239 Incurred guaranteed benefits (489 ) 12,571 12,082 Paid guaranteed benefits — — — Balance at December 31, 2015 (489 ) 76,810 76,321 Incurred guaranteed benefits 57 20,768 20,825 Paid guaranteed benefits — 1 1 Balance at December 31, 2016 $ (432 ) $ 97,579 $ 97,147 |
Guarantees Related to Annuity, Universal and Variable Life Contracts | Information regarding the Company’s guarantee exposure was as follows at: December 31, 2016 2015 In the Event of Death At Annuitization In the Event of Death At Annuitization (Dollars in thousands) Annuity Contracts (1), (2) Variable Annuity Guarantees Total account value (3) $ 4,763,943 $ 3,969,485 $ 4,795,645 $ 4,030,025 Separate account value $ 4,753,638 $ 3,968,482 $ 4,787,624 $ 4,027,392 Net amount at risk $ 36,827 (4) $ 209,926 (5) $ 127,244 (4) $ 152,482 (5) Average attained age of contractholders 66 years 65 years 65 years 65 years ______________ (1) The Company’s annuity contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. (2) Includes direct business, but excludes offsets from hedging or reinsurance, if any. Therefore, the NARs presented reflect the economic exposures of living and death benefit guarantees associated with variable annuities, but not necessarily their impact on the Company. See Note 5 for a discussion of GMxBs which have been reinsured. (3) Includes the contractholder’s investments in the general account and separate account, if applicable. (4) Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death. (5) Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contractholders have achieved. |
Fund Groupings | Account balances of contracts with guarantees were invested in separate account asset classes as follows at: December 31, 2016 2015 (In thousands) Fund Groupings: Balanced $ 2,945,952 $ 2,967,098 Equity 1,403,276 1,453,921 Bond 359,993 316,704 Money Market 49,228 51,416 Total $ 4,758,449 $ 4,789,139 |
Schedule of Liability Recorded and Collateral Pledged for Funding Agreements | Invested assets on deposit are presented below at estimated fair value for fixed maturity securities at: December 31, 2016 2015 (In thousands) Invested assets on deposit (regulatory deposits) $ 1,507 $ 1,534 |
Deferred Policy Acquisition C28
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Policy Acquisition Costs and Value of Business Acquired [Abstract] | |
Schedule of Deferred Policy Acquisition Costs and Value of Business Acquired | Information regarding DAC and VOBA was as follows: Years Ended December 31, 2016 2015 2014 (In thousands) DAC Balance at January 1, $ 107,474 $ 204,321 $ 254,958 Capitalizations 4,976 4,768 14,009 Amortization related to: Net investment gains (losses) and net derivative gains (losses) (12,163 ) (16,372 ) (20,279 ) Other expenses (11,155 ) (87,443 ) (48,467 ) Total amortization (1) (23,318 ) (103,815 ) (68,746 ) Unrealized investment gains (losses) (4,100 ) 2,200 (2,200 ) Other — — 6,300 Balance at December 31, 85,032 107,474 204,321 VOBA Balance at January 1, 40 51 76 Amortization related to: Net investment gains (losses) and net derivative gains (losses) — 5 — Other expenses 101 (16 ) (25 ) Total amortization (1) 101 (11 ) (25 ) Balance at December 31, 141 40 51 Total DAC and VOBA Balance at December 31, $ 85,173 $ 107,514 $ 204,372 ______________ (1) See Note 5 for additional information on affiliated amortization of DAC and VOBA. |
Deferred Policy Acquisition Costs [Table Text Block] | Information regarding DAC and VOBA was as follows: Years Ended December 31, 2016 2015 2014 (In thousands) DAC Balance at January 1, $ 107,474 $ 204,321 $ 254,958 Capitalizations 4,976 4,768 14,009 Amortization related to: Net investment gains (losses) and net derivative gains (losses) (12,163 ) (16,372 ) (20,279 ) Other expenses (11,155 ) (87,443 ) (48,467 ) Total amortization (1) (23,318 ) (103,815 ) (68,746 ) Unrealized investment gains (losses) (4,100 ) 2,200 (2,200 ) Other — — 6,300 Balance at December 31, 85,032 107,474 204,321 VOBA Balance at January 1, 40 51 76 Amortization related to: Net investment gains (losses) and net derivative gains (losses) — 5 — Other expenses 101 (16 ) (25 ) Total amortization (1) 101 (11 ) (25 ) Balance at December 31, 141 40 51 Total DAC and VOBA Balance at December 31, $ 85,173 $ 107,514 $ 204,372 ______________ (1) See Note 5 for additional information on affiliated amortization of DAC and VOBA. |
Information Regarding Deferred Policy Acquisition Costs and Value of Business Acquired by Segment | Information regarding total DAC and VOBA by segment, as well as Corporate & Other, was as follows at: December 31, 2016 2015 (In thousands) Annuities $ 60,689 $ 80,686 Life 24,265 26,591 Corporate & Other 219 237 Total $ 85,173 $ 107,514 |
Deferred Sales Inducements | Information regarding other intangibles was as follows: Years Ended December 31, 2016 2015 2014 (In thousands) DSI Balance at January 1, $ 37,114 $ 41,176 $ 50,425 Capitalization 350 452 542 Amortization (7,017 ) (5,014 ) (9,191 ) Unrealized investment gains (losses) (800 ) 500 (600 ) Balance at December 31, $ 29,647 $ 37,114 $ 41,176 VODA Balance at January 1, $ 11,222 $ 12,616 $ 13,975 Amortization (1,360 ) (1,394 ) (1,359 ) Balance at December 31, $ 9,862 $ 11,222 $ 12,616 Accumulated amortization $ 9,652 $ 8,292 $ 6,898 |
Value of Distribution Agreements and Customer Relationships Acquired | Information regarding other intangibles was as follows: Years Ended December 31, 2016 2015 2014 (In thousands) DSI Balance at January 1, $ 37,114 $ 41,176 $ 50,425 Capitalization 350 452 542 Amortization (7,017 ) (5,014 ) (9,191 ) Unrealized investment gains (losses) (800 ) 500 (600 ) Balance at December 31, $ 29,647 $ 37,114 $ 41,176 VODA Balance at January 1, $ 11,222 $ 12,616 $ 13,975 Amortization (1,360 ) (1,394 ) (1,359 ) Balance at December 31, $ 9,862 $ 11,222 $ 12,616 Accumulated amortization $ 9,652 $ 8,292 $ 6,898 |
Estimated Future Amortization Expense | The estimated future amortization expense to be reported in other expenses for the next five years is as follows: VOBA VODA (In thousands) 2017 $ 52 $ 1,283 2018 $ 46 $ 1,184 2019 $ 43 $ 1,073 2020 $ — $ 956 2021 $ — $ 841 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Reinsurance Disclosure [Line Items] | |
Effects of Reinsurance [Table Text Block] | The amounts on the statements of operations include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows: Years Ended December 31, 2016 2015 2014 (In thousands) Premiums Direct premiums $ 109,733 $ 122,110 $ 133,129 Reinsurance ceded (58,994 ) (50,238 ) (51,647 ) Net premiums $ 50,739 $ 71,872 $ 81,482 Universal life and investment-type product policy fees Direct universal life and investment-type product policy fees $ 106,830 $ 114,850 $ 119,690 Reinsurance ceded (3,830 ) (3,945 ) (15,146 ) Net universal life and investment-type product policy fees $ 103,000 $ 110,905 $ 104,544 Other revenues Direct other revenues $ 12,494 $ 12,754 $ 11,422 Reinsurance ceded 16,698 (22,219 ) 35,883 Net other revenues $ 29,192 $ (9,465 ) $ 47,305 Policyholder benefits and claims Direct policyholder benefits and claims $ 128,420 $ 138,574 $ 129,663 Reinsurance ceded (76,440 ) (89,174 ) (52,758 ) Net policyholder benefits and claims $ 51,980 $ 49,400 $ 76,905 Amortization of deferred policy acquisition costs and value of business acquired Direct amortization of deferred policy acquisition costs and value of business acquired $ 48,447 $ 104,028 $ 69,991 Reinsurance ceded (25,230 ) (202 ) (1,220 ) Net amortization of deferred policy acquisition costs and value of business acquired $ 23,217 $ 103,826 $ 68,771 Other expenses Direct other expenses $ 56,905 $ 63,100 $ 77,209 Reinsurance ceded 122 2,113 2,358 Net other expenses $ 57,027 $ 65,213 $ 79,567 The amounts on the balance sheets include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows at: December 31, 2016 2015 Direct Ceded Total Direct Ceded Total (In thousands) Assets Premiums, reinsurance and other receivables $ 19,005 $ 335,934 $ 354,939 $ 13,487 $ 1,526,314 $ 1,539,801 Deferred policy acquisition costs and value of business acquired 89,538 (4,365 ) 85,173 134,005 (26,491 ) 107,514 Total assets $ 108,543 $ 331,569 $ 440,112 $ 147,492 $ 1,499,823 $ 1,647,315 Liabilities Other policy-related balances $ 7,285 $ — $ 7,285 $ 9,583 $ (1,023 ) $ 8,560 Other liabilities 10,637 101,804 112,441 14,335 432,302 446,637 Total liabilities $ 17,922 $ 101,804 $ 119,726 $ 23,918 $ 431,279 $ 455,197 |
Affiliated Entity [Member] | |
Reinsurance Disclosure [Line Items] | |
Effects of Reinsurance [Table Text Block] | Information regarding the significant effects of ceded affiliated reinsurance included on the balance sheets was as follows at: December 31, 2016 2015 (In thousands) Assets Premiums, reinsurance and other receivables $ 321,868 $ 1,513,398 Deferred policy acquisition costs and value of business acquired (4,309 ) (26,429 ) Total assets $ 317,559 $ 1,486,969 Liabilities Other policy-related balances $ — $ (1,023 ) Other liabilities 99,641 430,846 Total liabilities $ 99,641 $ 429,823 Information regarding the significant effects of affiliated reinsurance included on the statements of operations was as follows: Years Ended December 31, 2016 2015 2014 (In thousands) Premiums Reinsurance ceded $ (44,259 ) $ (37,119 ) $ (39,455 ) Universal life and investment-type product policy fees Reinsurance ceded $ (3,645 ) $ (3,784 ) $ (15,008 ) Other revenues Reinsurance ceded $ 16,701 $ (22,212 ) $ 35,881 Policyholder benefits and claims Reinsurance ceded $ (71,948 ) $ (76,410 ) $ (48,882 ) Amortization of deferred policy acquisition costs and value of business acquired Reinsurance ceded $ (25,203 ) $ (172 ) $ (1,101 ) Other expenses Reinsurance ceded $ 114 $ 2,060 $ 2,290 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Fixed Maturity and Equity Securities Available-for-Sale | The following table presents the fixed maturity securities AFS by sector. Redeemable preferred stock is reported within U.S. corporate and foreign corporate fixed maturity securities. Included within fixed maturity securities are structured securities including residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and ABS (collectively, “Structured Securities”). December 31, 2016 December 31, 2015 Amortized Gross Unrealized Estimated Amortized Gross Unrealized Estimated Gains Temporary OTTI Gains Temporary OTTI (In thousands) Fixed maturity securities U.S. corporate $ 709,694 $ 20,400 $ 8,283 $ — $ 721,811 $ 553,881 $ 15,607 $ 17,554 $ — $ 551,934 U.S. government and agency 410,504 9,560 13,519 — 406,545 105,700 10,549 1,291 — 114,958 RMBS 238,676 2,033 2,322 — 238,387 103,898 1,461 884 — 104,475 Foreign corporate 237,412 2,998 8,070 — 232,340 122,578 2,335 8,463 — 116,450 CMBS 177,719 2,724 1,487 — 178,956 131,662 1,450 1,003 — 132,109 State and political subdivision 52,739 4,345 764 — 56,320 41,557 3,995 404 — 45,148 ABS 26,695 152 177 — 26,670 17,930 242 208 — 17,964 Foreign government 17,215 543 273 — 17,485 3,977 327 127 — 4,177 Total fixed maturity securities $ 1,870,654 $ 42,755 $ 34,895 $ — $ 1,878,514 $ 1,081,183 $ 35,966 $ 29,934 $ — $ 1,087,215 |
Available-for-sale fixed maturity securities by contractual maturity date | The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at December 31, 2016 : Due in One Year or Less Due After One Year Through Five Years Due After Five Years Through Ten Years Due After Ten Years Structured Securities Total Fixed Maturity Securities (In thousands) Amortized cost $ 16,980 $ 297,783 $ 610,139 $ 502,662 $ 443,090 $ 1,870,654 Estimated fair value $ 17,268 $ 307,889 $ 605,382 $ 503,962 $ 444,013 $ 1,878,514 |
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | The following table presents the estimated fair value and gross unrealized losses of fixed maturity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position at: December 31, 2016 December 31, 2015 Less than 12 Months Equal to or Greater Less than 12 Months Equal to or Greater Estimated Gross Estimated Gross Estimated Gross Estimated Gross (Dollars in thousands) Fixed maturity securities U.S. corporate $ 250,559 $ 6,667 $ 17,745 $ 1,616 $ 257,983 $ 15,821 $ 14,836 $ 1,733 U.S. government and agency 342,150 13,519 — — 34,465 1,291 — — RMBS 137,470 2,089 6,822 233 30,330 641 3,396 243 Foreign corporate 129,093 3,541 22,965 4,529 48,866 4,584 22,448 3,879 CMBS 42,661 1,068 3,729 419 67,578 1,003 — — State and political subdivision 20,709 764 — — 3,955 69 4,665 335 ABS 17,504 177 — — 8,690 208 — — Foreign government 7,189 148 868 125 854 127 — — Total fixed maturity securities $ 947,335 $ 27,973 $ 52,129 $ 6,922 $ 452,721 $ 23,744 $ 45,345 $ 6,190 Total number of securities in an unrealized loss position 203 35 160 19 |
Disclosure of Mortgage Loans Net of Valuation Allowance | Mortgage loans are summarized as follows at: December 31, 2016 2015 Carrying % of Carrying % of (Dollars in thousands) Mortgage loans Commercial $ 286,002 70.4 % $ 120,946 85.6 % Agricultural 121,858 30.0 20,972 14.8 Subtotal 407,860 100.4 141,918 100.4 Valuation allowances (1,775 ) (0.4 ) (640 ) (0.4 ) Total mortgage loans, net $ 406,085 100.0 % $ 141,278 100.0 % |
Allowance for Credit Losses on Financing Receivables | The changes in the valuation allowance, by portfolio segment, were as follows: Commercial Agricultural Total (In thousands) Balance at January 1, 2014 $ 450 $ 33 $ 483 Provision (release) 31 (2 ) 29 Balance at December 31, 2014 481 31 512 Provision (release) 97 31 128 Balance at December 31, 2015 578 62 640 Provision (release) 841 294 1,135 Balance at December 31, 2016 $ 1,419 $ 356 $ 1,775 |
Components of net unrealized investment gains (losses) included in accumulated other comprehensive income (loss) | The components of net unrealized investment gains (losses), included in AOCI, were as follows: Years Ended December 31, 2016 2015 2014 (In thousands) Fixed maturity securities $ 7,862 $ 6,028 $ 64,081 Derivatives 4,718 3,189 429 Subtotal 12,580 9,217 64,510 Amounts allocated from: DAC and DSI (5,800 ) (900 ) (3,600 ) Deferred income tax benefit (expense) (2,373 ) (2,911 ) (21,319 ) Net unrealized investment gains (losses) $ 4,407 $ 5,406 $ 39,591 The changes in net unrealized investment gains (losses) were as follows: Years Ended December 31, 2016 2015 2014 (In thousands) Balance at January 1, $ 5,406 $ 39,591 $ 9,567 Unrealized investment gains (losses) during the year 3,363 (55,293 ) 48,991 Unrealized investment gains (losses) relating to: DAC and DSI (4,900 ) 2,700 (2,800 ) Deferred income tax benefit (expense) 538 18,408 (16,167 ) Balance at December 31, $ 4,407 $ 5,406 $ 39,591 Change in net unrealized investment gains (losses) $ (999 ) $ (34,185 ) $ 30,024 |
Invested Assets on Deposit, Held in Trust and Pledged as Collateral | Invested assets on deposit are presented below at estimated fair value for fixed maturity securities at: December 31, 2016 2015 (In thousands) Invested assets on deposit (regulatory deposits) $ 1,507 $ 1,534 |
The Components of Net Investment Income | The components of net investment income were as follows: Years Ended December 31, 2016 2015 2014 (In thousands) Investment income: Fixed maturity securities $ 50,386 $ 47,069 $ 35,301 Mortgage loans 8,734 6,904 6,658 Cash, cash equivalents and short-term investments 102 38 32 Other 516 401 159 Subtotal 59,738 54,412 42,150 Less: Investment expenses 1,958 1,468 1,097 Net investment income $ 57,780 $ 52,944 $ 41,053 |
The components of net investment gains (losses) | The components of net investment gains (losses) were as follows: Years Ended December 31, 2016 2015 2014 (In thousands) Total gains (losses) on fixed maturity securities: Total OTTI losses recognized: U.S. and foreign corporate securities — by industry: Industrial $ (870 ) $ — $ — OTTI losses on fixed maturity securities recognized in earnings (870 ) — — Fixed maturity securities — net gains (losses) on sales and disposals (1,884 ) 4,547 599 Total gains (losses) on fixed maturity securities (2,754 ) 4,547 599 Equity securities - net gains (losses) on sales and disposals 6 — — Mortgage loans (1,129 ) (146 ) (27 ) Other 140 (2 ) (20 ) Total net investment gains (losses) $ (3,737 ) $ 4,399 $ 552 |
Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains and losses | Proceeds from sales or disposals of fixed maturity securities and the components of fixed maturity securities net investment gains (losses) were as shown in the table below. Years Ended December 31, 2016 2015 2014 2016 2015 2014 Fixed Maturity Securities Equity Securities (In thousands) Proceeds $ 74,657 $ 292,993 $ 286,258 $ 183 $ — $ — Gross investment gains $ 1,006 $ 8,204 $ 1,633 $ 6 $ — $ — Gross investment losses (2,890 ) (3,657 ) (1,034 ) — — — OTTI losses (870 ) — — — — — Net investment gains (losses) $ (2,754 ) $ 4,547 $ 599 $ 6 $ — $ — |
Variable Interest Entity, Not Primary Beneficiary [Member] | |
Variable Interest Entity [Line Items] | |
Variable Interest Entities | The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at: December 31, 2016 2015 Carrying Maximum Carrying Maximum (In thousands) Fixed maturity securities AFS: Structured Securities (2) $ 444,013 $ 444,013 $ 254,548 $ 254,548 Foreign corporate 5,884 5,884 — — Total $ 449,897 $ 449,897 $ 254,548 $ 254,548 _____________ (1) The maximum exposure to loss relating to fixed maturity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. (2) For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity. |
Commercial | |
Mortgage Loans on Real Estate [Line Items] | |
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories | The credit quality of commercial mortgage loans was as follows at: Recorded Investment Debt Service Coverage Ratios Total % of > 1.20x 1.00x - 1.20x < 1.00x (Dollars in thousands) December 31, 2016 Loan-to-value ratios Less than 65% $ 259,711 $ 15,614 $ 999 $ 276,324 96.6 % 65% to 75% 9,678 — — 9,678 3.4 Total $ 269,389 $ 15,614 $ 999 $ 286,002 100.0 % December 31, 2015 Loan-to-value ratios Less than 65% $ 111,988 $ 1,861 $ 5,670 $ 119,519 98.8 % 65% to 75% — — 1,427 1,427 1.2 Total $ 111,988 $ 1,861 $ 7,097 $ 120,946 100.0 % |
Agricultural | |
Mortgage Loans on Real Estate [Line Items] | |
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories | The credit quality of agricultural mortgage loans was as follows at: December 31, 2016 2015 Recorded % of Recorded % of (Dollars in thousands) Loan-to-value ratios Less than 65% $ 119,974 98.4 % $ 20,022 95.5 % 65% to 75% 1,884 1.6 950 4.5 Total $ 121,858 100.0 % $ 20,972 100.0 % |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The following table presents the gross notional amount, estimated fair value and primary underlying risk exposure of the Company’s derivatives, excluding embedded derivatives, held at: Primary Underlying Risk Exposure December 31, 2016 2015 Estimated Fair Value Estimated Fair Value Gross Assets Liabilities Gross Assets Liabilities (In thousands) Derivatives Designated as Hedging Instruments Cash flow hedges: Foreign currency swaps Foreign currency exchange rate $ 33,930 $ 4,947 $ — $ 32,389 $ 3,386 $ — Derivatives Not Designated or Not Qualifying as Hedging Instruments Foreign currency swaps Foreign currency exchange rate 14,063 3,709 — 14,063 1,595 — Total $ 47,993 $ 8,656 $ — $ 46,452 $ 4,981 $ — |
Offsetting Assets [Table Text Block] | The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: December 31, 2016 2015 Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement Assets Liabilities Assets Liabilities (In thousands) Gross estimated fair value of derivatives: OTC-bilateral (1) $ 8,850 $ — $ 5,137 $ — Total gross estimated fair value of derivatives (1) 8,850 — 5,137 — Amounts offset on the balance sheets — — — — Estimated fair value of derivatives presented on the balance sheets (1) 8,850 — 5,137 — Gross amounts not offset on the balance sheets: Gross estimated fair value of derivatives: (2) OTC-bilateral — — — — Cash collateral: (3) OTC-bilateral (8,672 ) — (3,300 ) — Securities collateral: (4) OTC-bilateral — — (560 ) — Net amount after application of master netting agreements and collateral $ 178 $ — $ 1,277 $ — ______________ (1) At December 31, 2016 and 2015 , derivative assets included income or (expense) accruals reported in accrued investment income or in other liabilities of $194 thousand and $156 thousand , respectively. (2) Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals. (3) Cash collateral received is included in cash and cash equivalents or in short-term investments, and the obligation to return it is included in payables for collateral transactions on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At December 31, 2016 and 2015, the Company received excess cash collateral of $270 thousand and $0 , respectively, and did not provide any excess cash collateral, which is not included in the table above due to foregoing limitations (4) Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at December 31, 2016 , none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At both December 31, 2016 and 2015 , the Company did not receive or provide excess securities collateral. |
Offsetting Liabilities [Table Text Block] | The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: December 31, 2016 2015 Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement Assets Liabilities Assets Liabilities (In thousands) Gross estimated fair value of derivatives: OTC-bilateral (1) $ 8,850 $ — $ 5,137 $ — Total gross estimated fair value of derivatives (1) 8,850 — 5,137 — Amounts offset on the balance sheets — — — — Estimated fair value of derivatives presented on the balance sheets (1) 8,850 — 5,137 — Gross amounts not offset on the balance sheets: Gross estimated fair value of derivatives: (2) OTC-bilateral — — — — Cash collateral: (3) OTC-bilateral (8,672 ) — (3,300 ) — Securities collateral: (4) OTC-bilateral — — (560 ) — Net amount after application of master netting agreements and collateral $ 178 $ — $ 1,277 $ — ______________ (1) At December 31, 2016 and 2015 , derivative assets included income or (expense) accruals reported in accrued investment income or in other liabilities of $194 thousand and $156 thousand , respectively. (2) Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals. (3) Cash collateral received is included in cash and cash equivalents or in short-term investments, and the obligation to return it is included in payables for collateral transactions on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At December 31, 2016 and 2015, the Company received excess cash collateral of $270 thousand and $0 , respectively, and did not provide any excess cash collateral, which is not included in the table above due to foregoing limitations (4) Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or re-pledge this collateral, but at December 31, 2016 , none of the collateral had been sold or re-pledged. Securities collateral pledged by the Company is reported in fixed maturity securities on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or re-pledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At both December 31, 2016 and 2015 , the Company did not receive or provide excess securities collateral. |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following table presents the amount and location of gains (losses) recognized in income for derivatives that were not designated or qualifying as hedging instruments: Net Derivative Gains (Losses) (In thousands) Year Ended December 31, 2016 Foreign currency exchange rate derivatives $ 2,114 Total $ 2,114 Year Ended December 31, 2015 Foreign currency exchange rate derivatives $ 1,557 Total $ 1,557 Year Ended December 31, 2014 Foreign currency exchange rate derivatives $ 2,172 Total $ 2,172 |
Derivative Instruments, Gain (Loss) [Line Items] | |
Components of Net Derivatives Gains (Losses) | The components of net derivative gains (losses) were as follows: Years Ended December 31, 2016 2015 2014 (In thousands) Freestanding derivatives and hedging gains (losses) (1) $ 1,647 $ 1,284 $ 2,032 Embedded derivatives gains (losses) 66,079 63,716 125,130 Total net derivative gains (losses) $ 67,726 $ 65,000 $ 127,162 ______________ (1) Includes foreign currency transaction gains (losses) on hedged items in cash flow and non-qualifying hedging relationships, which are not presented elsewhere in this note. |
Embedded Derivative Financial Instruments [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Components of Net Derivatives Gains (Losses) | The following table presents changes in estimated fair value related to embedded derivatives: Years Ended December 31, 2016 2015 2014 (In thousands) Net derivative gains (losses) (1), (2) $ 66,079 $ 63,716 $ 125,130 ______________ (1) The valuation of direct guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were ($57) thousand , $1.4 million and $578 thousand for the years ended December 31, 2016 , 2015 and 2014 , respectively. In addition, the valuation of ceded guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment were ($19.0) million , ($2.6) million and ($5.8) million for the years ended December 31, 2016 , 2015 and 2014 , respectively. (2) See Note 5 for discussion of affiliated net derivative gains (losses). |
Schedule of Derivative Instruments | The following table presents the estimated fair value and balance sheet location of the Company’s embedded derivatives that have been separated from their host contracts at : December 31, Balance Sheet Location 2016 2015 (In thousands) Embedded derivatives within asset host contracts: Ceded guaranteed minimum benefits Premiums, reinsurance and other receivables $ 379,297 $ 306,863 Embedded derivatives within liability host contracts: Direct guaranteed minimum benefits Policyholder account balances $ (23,740 ) $ (53,518 ) |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measurements | The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy are presented below at: December 31, 2016 Fair Value Hierarchy Level 1 Level 2 Level 3 Total (In thousands) Assets Fixed maturity securities: U.S. corporate $ — $ 681,406 $ 40,405 $ 721,811 U.S. government and agency 289,186 117,359 — 406,545 RMBS — 217,091 21,296 238,387 Foreign corporate — 200,454 31,886 232,340 CMBS — 173,763 5,193 178,956 State and political subdivision — 56,320 — 56,320 ABS — 21,736 4,934 26,670 Foreign government — 17,485 — 17,485 Total fixed maturity securities 289,186 1,485,614 103,714 1,878,514 Short-term investments — — — — Derivative assets: (1) Foreign currency exchange rate — 8,656 — 8,656 Embedded derivatives within asset host contracts (2) — — 379,297 379,297 Separate account assets (3) — 4,758,449 — 4,758,449 Total assets $ 289,186 $ 6,252,719 $ 483,011 $ 7,024,916 Liabilities Embedded derivatives within liability host contracts (2) $ — $ — $ (23,740 ) $ (23,740 ) Total liabilities $ — $ — $ (23,740 ) $ (23,740 ) December 31, 2015 Fair Value Hierarchy Level 1 Level 2 Level 3 Total Estimated (In thousands) Assets Fixed maturity securities: U.S. corporate $ — $ 522,888 $ 29,046 $ 551,934 U.S. government and agency 65,364 49,594 — 114,958 RMBS — 95,828 8,647 104,475 Foreign corporate — 90,307 26,143 116,450 CMBS — 126,894 5,215 132,109 State and political subdivision — 45,148 — 45,148 ABS — 17,964 — 17,964 Foreign government — 4,177 — 4,177 Total fixed maturity securities 65,364 952,800 69,051 1,087,215 Short-term investments 500 17,984 — 18,484 Derivative assets: (1) Foreign currency exchange rate — 4,981 — 4,981 Embedded derivatives within asset host contracts (2) — — 306,863 306,863 Separate account assets (3) — 4,792,140 — 4,792,140 Total assets $ 65,864 $ 5,767,905 $ 375,914 $ 6,209,683 Liabilities Embedded derivatives within liability host contracts (2) $ — $ — $ (53,518 ) $ (53,518 ) Total liabilities $ — $ — $ (53,518 ) $ (53,518 ) ______________ (1) Derivative assets are presented within other invested assets on the balance sheets. (2) Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables on the balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances on the balance sheets. (3) Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders whose liability is reflected within separate account liabilities. Separate account liabilities are set equal to the estimated fair value of separate account assets. |
Fair Value Inputs, Quantitative Information | The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at: December 31, 2016 December 31, 2015 Impact of Valuation Techniques Significant Range Weighted Range Weighted Fixed maturity securities (3) U.S. corporate and foreign corporate • Matrix pricing • Delta spread adjustments (4) (65) - 90 3 Decrease • Offered quotes (5) 94 - 136 107 96 96 96 Increase • Market pricing • Quoted prices (5) 75 - 110 97 Increase RMBS • Market pricing • Quoted prices (5) 56 - 111 86 68 - 98 90 Increase (6) CMBS • Market pricing • Quoted prices (5) 104 - 104 104 104 - 104 104 Increase (6) Embedded derivatives Direct and ceded guaranteed minimum benefits • Option pricing • Mortality rates: Ages 0 - 40 0% - 0.09% 0% - 0.09% Decrease (7) Ages 41 - 60 0.04% - 0.65% 0.04% - 0.65% Decrease (7) Ages 61 - 115 0.26% - 100% 0.26% - 100% Decrease (7) • Lapse rates: Durations 1 - 10 0.25% - 100% 0.25% - 100% Decrease (8) Durations 11 - 20 2% - 100% 3% - 100% Decrease (8) Durations 21 - 116 2% - 100% 3% - 100% Decrease (8) • Utilization rates 0% - 25% 0% - 25% Increase (9) • Withdrawal rates 0.25% - 10% 0.25% - 10% (10) • Long-term equity volatilities 17.40% - 25% 17.40% - 25% Increase (11) • Nonperformance risk spread 0.04% - 0.57% 0.04% - 0.52% Decrease (12) ______________ (1) The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities. (2) The impact of a decrease in input would have the opposite impact on estimated fair value. For embedded derivatives, changes to direct guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset positions. (3) Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations. (4) Range and weighted average are presented in basis points. (5) Range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par. (6) Changes in the assumptions used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates. (7) Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (8) Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (9) The utilization rate assumption estimates the percentage of contractholders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (10) The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. (11) Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (12) Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. |
Fair Value Inputs, Quantitative Information | The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at: December 31, 2016 December 31, 2015 Impact of Valuation Techniques Significant Range Weighted Range Weighted Fixed maturity securities (3) U.S. corporate and foreign corporate • Matrix pricing • Delta spread adjustments (4) (65) - 90 3 Decrease • Offered quotes (5) 94 - 136 107 96 96 96 Increase • Market pricing • Quoted prices (5) 75 - 110 97 Increase RMBS • Market pricing • Quoted prices (5) 56 - 111 86 68 - 98 90 Increase (6) CMBS • Market pricing • Quoted prices (5) 104 - 104 104 104 - 104 104 Increase (6) Embedded derivatives Direct and ceded guaranteed minimum benefits • Option pricing • Mortality rates: Ages 0 - 40 0% - 0.09% 0% - 0.09% Decrease (7) Ages 41 - 60 0.04% - 0.65% 0.04% - 0.65% Decrease (7) Ages 61 - 115 0.26% - 100% 0.26% - 100% Decrease (7) • Lapse rates: Durations 1 - 10 0.25% - 100% 0.25% - 100% Decrease (8) Durations 11 - 20 2% - 100% 3% - 100% Decrease (8) Durations 21 - 116 2% - 100% 3% - 100% Decrease (8) • Utilization rates 0% - 25% 0% - 25% Increase (9) • Withdrawal rates 0.25% - 10% 0.25% - 10% (10) • Long-term equity volatilities 17.40% - 25% 17.40% - 25% Increase (11) • Nonperformance risk spread 0.04% - 0.57% 0.04% - 0.52% Decrease (12) ______________ (1) The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities. (2) The impact of a decrease in input would have the opposite impact on estimated fair value. For embedded derivatives, changes to direct guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset positions. (3) Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations. (4) Range and weighted average are presented in basis points. (5) Range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par. (6) Changes in the assumptions used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates. (7) Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (8) Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (9) The utilization rate assumption estimates the percentage of contractholders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (10) The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. (11) Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (12) Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. |
Fair Value, Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables summarize the change of all assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fixed Maturity Securities Net Embedded Derivatives (2) Corporate (1) Structured Securities (In thousands) Balance, beginning of period $ 29,978 $ 5,215 $ 319,660 Total realized/unrealized gains (losses) included in net income (loss) (3) (4) 79 83 63,716 Total realized/unrealized gains (losses) included in AOCI (1,849 ) 55 — Purchases (5) 29,114 9,011 — Sales (5) (2,133 ) (502 ) — Issuances (5) — — — Settlements (5) — — (22,995 ) Transfers into Level 3 (6) — — — Transfers out of Level 3 (6) — — — Balance, December 31, 2015 55,189 13,862 360,381 Total realized/unrealized gains (losses) included in net income (loss) (3) (4) (64 ) 249 66,079 Total realized/unrealized gains (losses) included in AOCI (1,769 ) 152 — Purchases (5) 21,260 23,916 — Sales (5) (462 ) (1,901 ) — Issuances (5) — — — Settlements (5) — — (23,423 ) Transfers into Level 3 (6) — — — Transfers out of Level 3 (6) (1,863 ) (4,855 ) — Balance, December 31, 2016 $ 72,291 $ 31,423 $ 403,037 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2014 (7) $ — $ (22 ) $ 127,942 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2015 (7) $ 23 $ 83 $ 67,551 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2016 (7) $ (64 ) $ 249 $ 71,709 Gains (Losses) Data for the year ended December 31, 2014 Total realized/unrealized gains (losses) included in net income (loss) (3) (4) $ 81 $ (22 ) $ 125,130 Total realized/unrealized gains (losses) included in AOCI $ (93 ) $ 22 $ — ______________ (1) Comprised of U.S. and foreign corporate securities. (2) Embedded derivative assets and liabilities are presented net for purposes of the rollforward. (3) Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities are included in net investment gains (losses). Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income for net embedded derivatives are reported in net derivatives gains (losses). (4) Interest accruals, as well as cash interest coupons received, are excluded from the rollforward. (5) Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements. (6) Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward. (7) Changes in unrealized gains (losses) included in net income (loss) relate to assets and liabilities still held at the end of the respective periods. Substantially all changes in unrealized gains (losses) included in net income (loss) for net embedded derivatives are reported in net derivative gains (losses). |
Fair Value of Financial Instruments Carried at Other Than Fair Value | The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at: December 31, 2016 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In thousands) Assets Mortgage loans $ 406,085 $ — $ — $ 404,079 $ 404,079 Premiums, reinsurance and other receivables $ 30,122 $ — $ 2,095 $ 30,272 $ 32,367 Liabilities Policyholder account balances $ 1,214,186 $ — $ — $ 1,283,338 $ 1,283,338 December 31, 2015 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In thousands) Assets Mortgage loans $ 141,278 $ — $ — $ 149,037 $ 149,037 Premiums, reinsurance and other receivables $ 1,001,430 $ — $ 97 $ 1,100,556 $ 1,100,653 Liabilities Policyholder account balances $ 1,292,144 $ — $ — $ 1,386,997 $ 1,386,997 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedules of statutory net income, capital and surplus and reserve strengthening by subsidiary | Statutory net income (loss) was as follows: Years Ended December 31, Company State of Domicile 2016 2015 2014 (In thousands) Brighthouse Life Insurance Company of NY New York $ (87,290 ) $ 17,194 $ 10,635 Statutory capital and surplus was as follows at: December 31, Company 2016 2015 (In thousands) Brighthouse Life Insurance Company of NY $ 195,824 $ 320,675 |
Components of Accumulated Other Comprehensive Income (Loss) | Information regarding changes on the balances of each component of AOCI was as follows: Unrealized Investment Gains (Losses), Net of Related Offsets (1) Unrealized Gains (Losses) on Derivatives Total (In thousands) Balance at December 31, 2013 $ 10,119 $ (552 ) $ 9,567 OCI before reclassifications 46,163 1,278 47,441 Deferred income tax benefit (expense) (16,157 ) (447 ) (16,604 ) AOCI before reclassifications, net of income tax 40,125 279 40,404 Amounts reclassified from AOCI (1,250 ) — (1,250 ) Deferred income tax benefit (expense) 437 — 437 Amounts reclassified from AOCI, net of income tax (813 ) — (813 ) Balance at December 31, 2014 39,312 279 39,591 OCI before reclassifications (50,792 ) 2,760 (48,032 ) Deferred income tax benefit (expense) 17,778 (966 ) 16,812 AOCI before reclassifications, net of income tax 6,298 2,073 8,371 Amounts reclassified from AOCI (4,561 ) — (4,561 ) Deferred income tax benefit (expense) 1,596 — 1,596 Amounts reclassified from AOCI, net of income tax (2,965 ) — (2,965 ) Balance at December 31, 2015 3,333 2,073 5,406 OCI before reclassifications (5,777 ) 1,584 (4,193 ) Deferred income tax benefit (expense) 2,022 (554 ) 1,468 AOCI before reclassifications, net of income tax (422 ) 3,103 2,681 Amounts reclassified from AOCI 2,711 (55 ) 2,656 Deferred income tax benefit (expense) (949 ) 19 (930 ) Amounts reclassified from AOCI, net of income tax 1,762 (36 ) 1,726 Balance at December 31, 2016 $ 1,340 $ 3,067 $ 4,407 ______________ (1) See Note 6 for information on offsets to investments related to future policy benefits, DAC and DSI. |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Information regarding amounts reclassified out of each component of AOCI was as follows: AOCI Components Amounts Reclassified from AOCI Statement of Operations and Comprehensive Income (Loss) Location Years Ended December 31, 2016 2015 2014 (In thousands) Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ (2,745 ) $ 4,550 $ 600 Net investment gains (losses) Net unrealized investment gains (losses) 79 228 650 Net investment income Net unrealized investment gains (losses) (45 ) (217 ) — Net derivative gains (losses) Net unrealized investment gains (losses), before income tax (2,711 ) 4,561 1,250 Income tax (expense) benefit 949 (1,596 ) (437 ) Net unrealized investment gains (losses), net of income tax $ (1,762 ) $ 2,965 $ 813 Unrealized gains (losses) on derivatives - cash flow hedges: Foreign currency swaps 55 — — Net derivative gains (losses) Gains (losses) on cash flow hedges, before income tax 55 — — Income tax (expense) benefit (19 ) — — Gains (losses) on cash flow hedges, net of income tax $ 36 $ — $ — Total reclassifications, net of income tax $ (1,726 ) $ 2,965 $ 813 |
Other Expenses (Tables)
Other Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other Expenses | Information on other expenses was as follows: Years Ended December 31, 2016 2015 2014 (In thousands) Compensation $ 8,535 $ 13,421 $ 18,843 Pension, postretirement and postemployment benefit costs 796 1,334 1,109 Commissions 17,586 21,291 26,482 Volume-related costs 4,943 6,123 5,002 Affiliated interest costs on ceded reinsurance 10,535 11,276 10,479 Capitalization of DAC (4,976 ) (4,768 ) (14,009 ) Premium taxes, licenses and fees 2,590 3,607 2,652 Professional services 1,529 373 2,268 Rent and related expenses 1,096 1,065 2,162 Other 14,393 11,491 24,579 Total other expenses $ 57,027 $ 65,213 $ 79,567 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Provision for income tax from continuing operations | The provision for income tax was as follows: Years Ended December 31, 2016 2015 2014 (In thousands) Current: Federal $ (57,108 ) $ 1,148 $ 56,154 Deferred: Federal 99,260 840 (19,884 ) Provision for income tax expense (benefit) $ 42,152 $ 1,988 $ 36,270 |
Income tax for continuing operations effective rate reconciliation | The reconciliation of the income tax provision at the U.S. statutory rate to the provision for income tax as reported was as follows: Years Ended December 31, 2016 2015 2014 (In thousands) Tax provision at U.S. statutory rate $ 46,397 $ 8,779 $ 42,952 Tax effect of: Dividend received deduction (4,732 ) (5,589 ) (5,039 ) Prior year tax 1,282 (624 ) (1,220 ) Tax credits (797 ) (580 ) (504 ) Other, net 2 2 81 Provision for income tax expense (benefit) $ 42,152 $ 1,988 $ 36,270 |
Components of deferred tax assets and liabilities | Deferred income tax represents the tax effect of the differences between the book and tax bases of assets and liabilities. Net deferred income tax assets and liabilities consisted of the following at: December 31, 2016 2015 (In thousands) Deferred income tax assets: Tax credit carryforwards $ 4,491 $ 3,692 Other 2,206 858 Total deferred income tax assets 6,697 4,550 Deferred income tax liabilities: Investments, including derivatives 1,102 1,238 Policyholder liabilities and receivables 210,814 99,246 Intangibles 1,850 1,869 Net unrealized investment gains 2,373 2,911 DAC 10,397 20,403 Total deferred income tax liabilities 226,536 125,667 Net deferred income tax asset (liability) $ (219,839 ) $ (121,117 ) |
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: Years Ended December 31, 2016 2015 2014 (In thousands) Balance at January 1, $ 983 $ 983 $ 838 Additions for tax positions of prior years 300 — 169 Reductions for tax positions of prior years (23 ) — (124 ) Additions for tax positions of current year 300 — 100 Settlements with tax authorities (356 ) — — Balance at December 31, $ 1,204 $ 983 $ 983 Unrecognized tax benefits that, if recognized would impact the effective rate $ 1,130 $ 909 $ 909 Interest was as follows: Years Ended December 31, 2016 2015 2014 (In thousands) Interest recognized on the statements of operations $ (79 ) $ — $ (24 ) December 31, 2016 2015 (In thousands) Interest included in other liabilities on the balance sheets $ 62 $ 141 |
Contingencies, Commitments an36
Contingencies, Commitments and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Insurance-related Assessments | |
Loss Contingencies [Line Items] | |
Schedule of Loss Contingencies by Contingency | Assets and liabilities held for insolvency assessments were as follows: December 31, 2016 2015 (In thousands) Other Assets: Premium tax offset for future discounted and undiscounted assessments $ 300 $ 300 Premium tax offsets currently available for paid assessments 1,829 3,820 $ 2,129 $ 4,120 Other Liabilities: Insolvency assessments $ 400 $ 400 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | The following table summarizes assets and liabilities from transactions with affiliated broker-dealers at: December 31, December 31, 2016 2015 2016 2015 Fee Income Receivables Secured Demand Notes (In thousands) MetLife broker-dealers $ 934 $ 883 $ — $ — The following table summarizes income and expense from transactions with MetLife (excluding broker-dealer transactions) for the years indicated: Years Ended December 31, Years Ended December 31, 2016 2015 2014 2016 2015 2014 Income Expense (In thousands) MetLife $ 50,358 $ 16,759 $ 121,858 $ (76,613 ) $ (44,358 ) $ 1,671 The following table summarizes assets and liabilities from transactions with MetLife (excluding broker-dealer transactions) at: December 31, December 31, 2016 2015 2016 2015 Assets Liabilities (In thousands) MetLife $ 322,394 $ 1,489,214 $ 99,641 $ 429,822 The following table summarizes income and expense from transactions with related broker-dealers for the years indicated: Years Ended December 31, Years Ended December 31, 2016 2015 2014 2016 2015 2014 Fee Income Commission Expense (In thousands) MetLife broker-dealers $ 9,968 $ 10,515 $ 10,136 $ 32,191 $ 30,672 $ 30,007 |
Business, Basis of Presentati38
Business, Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of segments | 2 | ||
Property, Equipment, Leasehold Improvements and Computer Software [Abstract] | |||
Cost basis of computer software | $ 12,400 | $ 12,400 | |
Accumulated amortization of computer software | 5,900 | 3,800 | |
Amortization expense related to computer software | $ 2,200 | $ 13 | $ 212 |
Value Of Distribution Agreements And Value Of Customer Relationships Acquired Intangible Asset [Member] | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 10 years | ||
Value Of Distribution Agreements And Value Of Customer Relationships Acquired Intangible Asset [Member] | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 30 years | ||
Computer Software, Intangible Asset [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 4 years |
Segment Information (Earnings)
Segment Information (Earnings) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Assets | $ 7,633,046 | $ 7,775,777 | |
Revenues | |||
Premiums | 50,739 | 71,872 | $ 81,482 |
Universal life and investment-type product policy fees | 103,000 | 110,905 | 104,544 |
Net investment income | 57,780 | 52,944 | 41,053 |
Other revenues | 29,192 | (9,465) | 47,305 |
Net investment gains (losses) | (3,737) | 4,399 | 552 |
Net derivative gains (losses) | 67,726 | 65,000 | 127,162 |
Total revenues | 304,700 | 295,655 | 402,098 |
Expenses | |||
Policyholder benefits and claims | 51,980 | 49,400 | 76,905 |
Interest credited to policyholder account balances | 39,914 | 52,133 | 54,136 |
Capitalization of DAC | (4,976) | (4,768) | (14,009) |
Amortization of DAC and VOBA | 23,217 | 103,826 | 68,771 |
Total expenses | (172,138) | (270,572) | (279,379) |
Income (loss) from continuing operations before provision for income tax | 132,562 | 25,083 | 122,719 |
Provision for income tax expense (benefit) | (42,152) | (1,988) | (36,270) |
Net income (loss) | 90,410 | 23,095 | 86,449 |
Separate Account Assets | 4,758,449 | 4,792,140 | |
Separate Accounts, Liability | 4,758,449 | 4,792,140 | |
Annuities | |||
Segment Reporting Information [Line Items] | |||
Assets | 6,708,803 | 6,675,617 | |
Expenses | |||
Amortization of DAC and VOBA | 20,927 | 36,788 | 56,532 |
Separate Account Assets | 4,758,449 | 4,792,140 | |
Separate Accounts, Liability | 4,758,449 | 4,792,140 | |
Interest Revenue (Expense), Net | 27,747 | 23,210 | 12,801 |
Life | |||
Segment Reporting Information [Line Items] | |||
Assets | 342,592 | 607,090 | |
Expenses | |||
Amortization of DAC and VOBA | 2,272 | 66,568 | 12,025 |
Separate Account Assets | 0 | 0 | |
Separate Accounts, Liability | 0 | 0 | |
Interest Revenue (Expense), Net | 17,108 | 15,432 | 14,032 |
Corporate & Other | |||
Segment Reporting Information [Line Items] | |||
Assets | 581,651 | 493,070 | |
Expenses | |||
Amortization of DAC and VOBA | 18 | 470 | 214 |
Separate Account Assets | 0 | 0 | |
Separate Accounts, Liability | 0 | 0 | |
Interest Revenue (Expense), Net | 13,204 | 14,516 | 14,388 |
Operating Segments [Member] | |||
Revenues | |||
Total revenues | 211,397 | 195,424 | 247,923 |
Expenses | |||
Income (loss) from continuing operations before provision for income tax | 103,081 | (28,298) | 23,911 |
Provision for income tax expense (benefit) | (31,834) | 16,695 | (1,687) |
Operating earnings | 71,247 | (11,603) | 22,224 |
Operating Segments [Member] | Annuities | |||
Revenues | |||
Total revenues | 125,308 | 139,102 | 188,831 |
Expenses | |||
Income (loss) from continuing operations before provision for income tax | 52,855 | 20,794 | 22,539 |
Provision for income tax expense (benefit) | (14,623) | (1,139) | (8,239) |
Operating earnings | 38,232 | 19,655 | 14,300 |
Operating Segments [Member] | Life | |||
Revenues | |||
Total revenues | 86,089 | 56,322 | 59,092 |
Expenses | |||
Income (loss) from continuing operations before provision for income tax | 40,561 | (60,934) | (7,980) |
Provision for income tax expense (benefit) | (14,197) | 21,327 | 2,493 |
Operating earnings | 26,364 | (39,607) | (5,487) |
Operating Segments [Member] | Corporate & Other | |||
Revenues | |||
Total revenues | 15,135 | 16,771 | 17,128 |
Expenses | |||
Income (loss) from continuing operations before provision for income tax | 9,665 | 11,842 | 9,352 |
Provision for income tax expense (benefit) | (3,014) | (3,493) | 4,059 |
Operating earnings | 6,651 | 8,349 | 13,411 |
Significant Reconciling Items | |||
Revenues | |||
Other revenues | (34,508) | (16,018) | (28,906) |
Net investment gains (losses) | (3,737) | 4,399 | 552 |
Net derivative gains (losses) | 67,726 | 65,000 | 127,162 |
Total revenues | 14,179 | 14,061 | 9,333 |
Expenses | |||
Provision for income tax expense (benefit) | (10,318) | (18,683) | (34,583) |
Intersegment Eliminations [Member] | Annuities | |||
Revenues | |||
Total revenues | 70 | 1,505 | 53,368 |
Intersegment Eliminations [Member] | Life | |||
Revenues | |||
Total revenues | (3,791) | (36,366) | (38,850) |
Intersegment Eliminations [Member] | Corporate & Other | |||
Revenues | |||
Total revenues | $ (1,555) | $ (1,371) | $ (1,221) |
Segment Information (Total Asse
Segment Information (Total Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Financial Services Revenue | $ 182,931 | $ 173,312 | $ 233,331 |
Total assets | 7,633,046 | 7,775,777 | |
Separate account assets | 4,758,449 | 4,792,140 | |
Separate account liabilities | 4,758,449 | 4,792,140 | |
Corporate & Other | |||
Segment Reporting Information [Line Items] | |||
Total assets | 581,651 | 493,070 | |
Separate account assets | 0 | 0 | |
Separate account liabilities | 0 | 0 | |
Annuities | |||
Segment Reporting Information [Line Items] | |||
Financial Services Revenue | 112,018 | 130,167 | 185,531 |
Life insurance | |||
Segment Reporting Information [Line Items] | |||
Financial Services Revenue | $ 70,913 | $ 43,145 | $ 47,800 |
Segment Information (Reconcilia
Segment Information (Reconciliation of Operating Revenues to Total Revenues) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | $ 304,700 | $ 295,655 | $ 402,098 |
Net investment gains (losses) | (3,737) | 4,399 | 552 |
Gain (Loss) on Derivative Instruments, Net, Pretax | 67,726 | 65,000 | 127,162 |
Operating Segments [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 211,397 | 195,424 | 247,923 |
Operating Segments [Member] | Annuities [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 125,308 | 139,102 | 188,831 |
Operating Segments [Member] | Life [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 86,089 | 56,322 | 59,092 |
Operating Segments [Member] | Corporate & Other | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 15,135 | 16,771 | 17,128 |
Segment Reconciling Items [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenues | 14,179 | 14,061 | 9,333 |
Net investment gains (losses) | (3,737) | 4,399 | 552 |
Gain (Loss) on Derivative Instruments, Net, Pretax | $ 67,726 | $ 65,000 | $ 127,162 |
Segment Information (Premiums,
Segment Information (Premiums, Universal Life and Investment-Type Policy Fees and Other Revenues by Major Product Groups) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Total premiums, universal life and investment-type product policy fees and other revenues | $ 182,931 | $ 173,312 | $ 233,331 |
Annuities | |||
Segment Reporting Information [Line Items] | |||
Total premiums, universal life and investment-type product policy fees and other revenues | 112,018 | 130,167 | 185,531 |
Life insurance | |||
Segment Reporting Information [Line Items] | |||
Total premiums, universal life and investment-type product policy fees and other revenues | $ 70,913 | $ 43,145 | $ 47,800 |
Insurance (Insurance Liabilitie
Insurance (Insurance Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Insurance Liabilities [Line Items] | ||
Insurance liabilities comprised of future policy benefits, policyholder account balances and other policy-related balances | $ 1,836,642 | $ 1,805,261 |
Annuities | ||
Insurance Liabilities [Line Items] | ||
Insurance liabilities comprised of future policy benefits, policyholder account balances and other policy-related balances | 1,504,773 | 1,503,640 |
Life | ||
Insurance Liabilities [Line Items] | ||
Insurance liabilities comprised of future policy benefits, policyholder account balances and other policy-related balances | 322,319 | 294,888 |
Corporate & Other | ||
Insurance Liabilities [Line Items] | ||
Insurance liabilities comprised of future policy benefits, policyholder account balances and other policy-related balances | $ 9,550 | $ 6,733 |
Insurance (Liabilities for Guar
Insurance (Liabilities for Guarantees) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | $ 124,819 | $ 103,878 | $ 82,286 |
Incurred guaranteed benefits | 34,610 | 21,179 | 21,612 |
Paid guaranteed benefits | (559) | (238) | (20) |
Balance at December 31, | 158,870 | 124,819 | 103,878 |
Variable Annuity | Guaranteed Minimum Death Benefit | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 8,089 | 7,152 | 4,775 |
Incurred guaranteed benefits | 2,272 | 1,175 | 2,397 |
Paid guaranteed benefits | (560) | (238) | (20) |
Balance at December 31, | 9,801 | 8,089 | 7,152 |
Variable Annuity | Guaranteed Minimum Income Benefit | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 116,730 | 96,726 | 77,511 |
Incurred guaranteed benefits | 32,338 | 20,004 | 19,215 |
Paid guaranteed benefits | 1 | 0 | 0 |
Balance at December 31, | 149,069 | 116,730 | 96,726 |
ERROR in label resolution. | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 48,498 | 39,639 | 31,301 |
Incurred guaranteed benefits | 13,785 | 9,097 | 8,358 |
Paid guaranteed benefits | (560) | (238) | (20) |
Balance at December 31, | 61,723 | 48,498 | 39,639 |
ERROR in label resolution. | Guaranteed Minimum Death Benefit | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 8,578 | 7,152 | 4,775 |
Incurred guaranteed benefits | 2,215 | 1,664 | 2,397 |
Paid guaranteed benefits | (560) | (238) | (20) |
Balance at December 31, | 10,233 | 8,578 | 7,152 |
ERROR in label resolution. | Guaranteed Minimum Income Benefit | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 39,920 | 32,487 | 26,526 |
Incurred guaranteed benefits | 11,570 | 7,433 | 5,961 |
Paid guaranteed benefits | 0 | 0 | 0 |
Balance at December 31, | 51,490 | 39,920 | 32,487 |
ERROR in label resolution. | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 76,321 | 64,239 | 50,985 |
Incurred guaranteed benefits | 20,825 | 12,082 | 13,254 |
Paid guaranteed benefits | 1 | 0 | 0 |
Balance at December 31, | 97,147 | 76,321 | 64,239 |
ERROR in label resolution. | Guaranteed Minimum Death Benefit | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | (489) | 0 | 0 |
Incurred guaranteed benefits | 57 | (489) | 0 |
Paid guaranteed benefits | 0 | 0 | 0 |
Balance at December 31, | (432) | (489) | 0 |
ERROR in label resolution. | Guaranteed Minimum Income Benefit | |||
Movement In Guaranteed Benefit Liability Gross Rollforward | |||
Balance at January 1, | 76,810 | 64,239 | 50,985 |
Incurred guaranteed benefits | 20,768 | 12,571 | 13,254 |
Paid guaranteed benefits | 1 | 0 | 0 |
Balance at December 31, | $ 97,579 | $ 76,810 | $ 64,239 |
Insurance (Fund Groupings) (Det
Insurance (Fund Groupings) (Details) - Variable Annuity and Variable Life - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Fund Groupings | $ 4,758,449 | $ 4,789,139 |
Equity | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Fund Groupings | 1,403,276 | 1,453,921 |
Balanced | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Fund Groupings | 2,945,952 | 2,967,098 |
Bond | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Fund Groupings | 359,993 | 316,704 |
Money Market | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Fund Groupings | $ 49,228 | $ 51,416 |
Insurance (Guarantees Related t
Insurance (Guarantees Related to Annuity Contracts) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | $ 158,870 | $ 124,819 | $ 103,878 | $ 82,286 |
Liabilities for Guarantees on Long-Duration Contracts, Incurred Benefits | 34,610 | 21,179 | 21,612 | |
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | (559) | (238) | (20) | |
Variable Annuity Guarantees | Guaranteed Minimum Income Benefit | ||||
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | 149,069 | 116,730 | 96,726 | 77,511 |
Liabilities for Guarantees on Long-Duration Contracts, Incurred Benefits | 32,338 | 20,004 | 19,215 | |
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | 1 | 0 | 0 | |
Variable Annuity Guarantees | Guaranteed Death Benefits | ||||
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | 9,801 | 8,089 | 7,152 | 4,775 |
Total account value (3) | 4,763,943 | 4,795,645 | ||
Separate account value | 4,753,638 | 4,787,624 | ||
Net amount at risk | $ 36,827 | $ 127,244 | ||
Average attained age of contractholders | 66 years | 65 years | ||
Liabilities for Guarantees on Long-Duration Contracts, Incurred Benefits | $ 2,272 | $ 1,175 | 2,397 | |
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | (560) | (238) | (20) | |
Variable Annuity Guarantees | Guaranteed Annuitization Benefits | ||||
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
Total account value (3) | 3,969,485 | 4,030,025 | ||
Separate account value | 3,968,482 | 4,027,392 | ||
Net amount at risk | $ 209,926 | $ 152,482 | ||
Average attained age of contractholders | 65 years | 65 years | ||
Ceded Liabilities For Guarantees [Member] | ||||
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | $ 61,723 | $ 48,498 | 39,639 | 31,301 |
Liabilities for Guarantees on Long-Duration Contracts, Incurred Benefits | 13,785 | 9,097 | 8,358 | |
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | (560) | (238) | (20) | |
Ceded Liabilities For Guarantees [Member] | Guaranteed Minimum Income Benefit | ||||
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | 51,490 | 39,920 | 32,487 | 26,526 |
Liabilities for Guarantees on Long-Duration Contracts, Incurred Benefits | 11,570 | 7,433 | 5,961 | |
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | 0 | 0 | 0 | |
Ceded Liabilities For Guarantees [Member] | Guaranteed Death Benefits | ||||
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | 10,233 | 8,578 | 7,152 | 4,775 |
Liabilities for Guarantees on Long-Duration Contracts, Incurred Benefits | 2,215 | 1,664 | 2,397 | |
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | (560) | (238) | (20) | |
Net Liabilities For Guarantees [Member] | ||||
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | 97,147 | 76,321 | 64,239 | 50,985 |
Liabilities for Guarantees on Long-Duration Contracts, Incurred Benefits | 20,825 | 12,082 | 13,254 | |
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | 1 | 0 | 0 | |
Net Liabilities For Guarantees [Member] | Guaranteed Minimum Income Benefit | ||||
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | 97,579 | 76,810 | 64,239 | 50,985 |
Liabilities for Guarantees on Long-Duration Contracts, Incurred Benefits | 20,768 | 12,571 | 13,254 | |
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | 1 | 0 | 0 | |
Net Liabilities For Guarantees [Member] | Guaranteed Death Benefits | ||||
Net Amount at Risk by Product and Guarantee [Line Items] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross | (432) | (489) | 0 | $ 0 |
Liabilities for Guarantees on Long-Duration Contracts, Incurred Benefits | 57 | (489) | 0 | |
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | $ 0 | $ 0 | $ 0 |
Insurance (Insurance Liabilit47
Insurance (Insurance Liabilities Assumptions and Ratios - Narrative) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Minimum | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | |
Interest rate assumptions for the aggregate future policy benefit liabilities for individual and group traditional fixed annuities after annuitization | 3.00% |
Interest rate range credited to policyholder account balances | 1.00% |
Maximum | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | |
Interest rate assumptions for the aggregate future policy benefit liabilities for individual and group traditional fixed annuities after annuitization | 6.00% |
Interest rate range credited to policyholder account balances | 7.00% |
Participating Life Insurance Policies [Member] | Minimum | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | |
Liability for Future Policy Benefits, Interest Rate Assumption | .03 |
Nonparticipating Life Insurance Policies | Maximum | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | |
Liability for Future Policy Benefits, Interest Rate Assumption | .05 |
Insurance (Separate Accounts -
Insurance (Separate Accounts - Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Separate Accounts [Line Items] | |||
Separate account assets | $ 4,758,449,000 | $ 4,792,140,000 | |
Gain (losses) on transfers of assets from the general account to the separate accounts | 0 | 0 | $ 0 |
Pass Through Separate Accounts | |||
Schedule Separate Accounts [Line Items] | |||
Separate account assets | $ 4,800,000,000 | $ 4,800,000,000 |
Deferred Policy Acquisition C49
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (DAC and VOBA) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred Policy Acquisition Costs and Value of Business Acquired [Abstract] | |||
Beginning Balance of DAC | $ 107,474 | $ 204,321 | $ 254,958 |
Capitalization of DAC | (4,976) | (4,768) | (14,009) |
Net investment gains (losses) of DAC and net derivative gains (losses) of DAC | (12,163) | (16,372) | (20,279) |
Other expenses of DAC | (11,155) | (87,443) | (48,467) |
Total amortization of DAC | (23,318) | (103,815) | (68,746) |
Unrealized investment gains (losses) of DAC | 4,100 | (2,200) | 2,200 |
Other of DAC | 0 | 0 | 6,300 |
Ending Balance of DAC | 85,032 | 107,474 | 204,321 |
Beginning Balance of VOBA | 40 | 51 | 76 |
Net investment gains (losses) of VOBA and net derivative gains (losses) of VOBA | 0 | 5 | 0 |
Other expenses of VOBA | 101 | (16) | (25) |
Total amortization of VOBA | 101 | (11) | (25) |
Ending Balance of VOBA | 141 | 40 | 51 |
Balance at December 31, | $ 85,173 | $ 107,514 | $ 204,372 |
Deferred Policy Acquisition C50
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (DAC and VOBA by Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | |||
DAC and VOBA | $ 85,173 | $ 107,514 | $ 204,372 |
Annuities | |||
Segment Reporting Information [Line Items] | |||
DAC and VOBA | 60,689 | 80,686 | 111,090 |
Life | |||
Segment Reporting Information [Line Items] | |||
DAC and VOBA | 24,265 | 26,591 | 92,592 |
Corporate & Other | |||
Segment Reporting Information [Line Items] | |||
DAC and VOBA | $ 219 | $ 237 | $ 690 |
Deferred Policy Acquisition C51
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (Deferred Sales Inducements) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Insurance [Abstract] | ||||
Finite-Lived Intangible Assets, Net | $ 9,862 | $ 11,222 | $ 12,616 | $ 13,975 |
DSI | ||||
Balance at January 1, | 37,114 | 41,176 | 50,425 | |
Capitalization | 350 | 452 | 542 | |
Amortization | (7,017) | (5,014) | (9,191) | |
Unrealized investment gains (losses) | (800) | 500 | (600) | |
Balance at December 31, | 29,647 | 37,114 | 41,176 | |
Amortization of Intangible Assets | (1,360) | (1,394) | (1,359) | |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 9,652 | $ 8,292 | $ 6,898 |
Deferred Policy Acquisition C52
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (VODA and VOCRA) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Insurance [Abstract] | |||
Balance at January 1, | $ 11,222 | $ 12,616 | $ 13,975 |
Amortization | (1,360) | (1,394) | (1,359) |
Balance at December 31, | 9,862 | 11,222 | 12,616 |
Accumulated amortization | $ 9,652 | $ 8,292 | $ 6,898 |
Deferred Policy Acquisition C53
Deferred Policy Acquisition Costs, Value of Business Acquired and Other Policy-Related Intangibles (Estimated Future Amortization) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Estimated future amortization expense allocated to other expenses for VOBA [Abstract] | |
VOBA 2,017 | $ 52 |
VOBA 2,018 | 46 |
VOBA 2,019 | 43 |
VOBA 2,020 | 0 |
VOBA 2,021 | 0 |
Value of Distribution Agreements and Customer Relationships Acquired [Abstract] | |
VODA and VOCRA 2017 | 1,283 |
VODA and VOCRA 2018 | 1,184 |
VODA and VOCRA 2019 | 1,073 |
VODA and VOCRA 2020 | 956 |
VODA and VOCRA 2021 | $ 841 |
Reinsurance (Effects of Reinsur
Reinsurance (Effects of Reinsurance on Earnings) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Premiums: | |||
Direct premiums | $ 109,733 | $ 122,110 | $ 133,129 |
Reinsurance ceded | (58,994) | (50,238) | (51,647) |
Net premiums | 50,739 | 71,872 | 81,482 |
Universal life and investment-type product policy fees: | |||
Direct universal life and investment-type product policy fees | 106,830 | 114,850 | 119,690 |
Reinsurance ceded | (3,830) | (3,945) | (15,146) |
Net universal life and investment-type product policy fees | 103,000 | 110,905 | 104,544 |
Other revenues: | |||
Direct other revenues | 12,494 | 12,754 | 11,422 |
Reinsurance ceded | 16,698 | (22,219) | 35,883 |
Net other revenues | 29,192 | (9,465) | 47,305 |
Policyholder benefits and claims: | |||
Direct policyholder benefits and claims | 128,420 | 138,574 | 129,663 |
Reinsurance ceded | (76,440) | (89,174) | (52,758) |
Net policyholder benefits and claims | 51,980 | 49,400 | 76,905 |
Direct Deferred Policy Acquisition Costs And Present Value Of Future Profits Amortization | 48,447 | 104,028 | 69,991 |
Ceded Deferred Policy Acquisition Costs And Present Value Of Future Profits Amortization | (25,230) | (202) | (1,220) |
Net amortization of deferred policy acquisition costs and value of business acquired | 23,217 | 103,826 | 68,771 |
Other expenses: | |||
Direct other expenses | 56,905 | 63,100 | 77,209 |
Reinsurance ceded | 122 | 2,113 | 2,358 |
Total other expenses | $ 57,027 | $ 65,213 | $ 79,567 |
Reinsurance (Effects of Reins55
Reinsurance (Effects of Reinsurance on Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | |||
Premiums, reinsurance and other receivables | $ 354,939 | $ 1,539,801 | |
Deferred policy acquisition costs and value of business acquired | 85,173 | 107,514 | $ 204,372 |
Total assets | 440,112 | 1,647,315 | |
Liabilities: | |||
Other policy-related balances | 7,285 | 8,560 | |
Other Liabilities | 112,441 | 446,637 | |
Total liabilities | 119,726 | 455,197 | |
Direct | |||
Assets: | |||
Premiums, reinsurance and other receivables | 19,005 | 13,487 | |
Deferred policy acquisition costs and value of business acquired | 89,538 | 134,005 | |
Total assets | 108,543 | 147,492 | |
Liabilities: | |||
Other policy-related balances | 7,285 | 9,583 | |
Other Liabilities | 10,637 | 14,335 | |
Total liabilities | 17,922 | 23,918 | |
Ceded | |||
Assets: | |||
Premiums, reinsurance and other receivables | 335,934 | 1,526,314 | |
Deferred policy acquisition costs and value of business acquired | (4,365) | (26,491) | |
Total assets | 331,569 | 1,499,823 | |
Liabilities: | |||
Other policy-related balances | 0 | (1,023) | |
Other Liabilities | 101,804 | 432,302 | |
Total liabilities | $ 101,804 | $ 431,279 |
Reinsurance (Effects of Affilia
Reinsurance (Effects of Affiliated Reinsurance on Statements of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Premiums: | |||
Reinsurance ceded | $ (58,994) | $ (50,238) | $ (51,647) |
Universal life and investment-type product policy fees: | |||
Reinsurance ceded | (3,830) | (3,945) | (15,146) |
Other revenues: | |||
Reinsurance ceded | 16,698 | (22,219) | 35,883 |
Policyholder benefits and claims: | |||
Reinsurance ceded | (76,440) | (89,174) | (52,758) |
Deferred Policy Acquisition Costs and Present Value of Future Profits, Amortization | (23,217) | (103,826) | (68,771) |
Other expenses: | |||
Reinsurance ceded | 122 | 2,113 | 2,358 |
Affiliated Entity [Member] | Ceded | |||
Premiums: | |||
Reinsurance ceded | (44,259) | (37,119) | (39,455) |
Universal life and investment-type product policy fees: | |||
Reinsurance ceded | (3,645) | (3,784) | (15,008) |
Other revenues: | |||
Reinsurance ceded | 16,701 | (22,212) | 35,881 |
Policyholder benefits and claims: | |||
Reinsurance ceded | (71,948) | (76,410) | (48,882) |
Deferred Policy Acquisition Costs and Present Value of Future Profits, Amortization | (25,203) | (172) | (1,101) |
Other expenses: | |||
Reinsurance ceded | $ 114 | $ 2,060 | $ 2,290 |
Reinsurance (Effects of Affil57
Reinsurance (Effects of Affiliated Reinsurance on Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | |||
Premiums, reinsurance and other receivables | $ 354,939 | $ 1,539,801 | |
Deferred policy acquisition costs and value of business acquired | 85,173 | 107,514 | $ 204,372 |
Total assets | 440,112 | 1,647,315 | |
Liabilities: | |||
Future policy benefits | 627,007 | 548,208 | |
Policyholder account balances | 1,202,350 | 1,248,493 | $ 1,269,482 |
Other policy-related balances | 7,285 | 8,560 | |
Other Liabilities | 112,441 | 446,637 | |
Total liabilities | 119,726 | 455,197 | |
Ceded | |||
Assets: | |||
Premiums, reinsurance and other receivables | 335,934 | 1,526,314 | |
Deferred policy acquisition costs and value of business acquired | (4,365) | (26,491) | |
Total assets | 331,569 | 1,499,823 | |
Liabilities: | |||
Other policy-related balances | 0 | (1,023) | |
Other Liabilities | 101,804 | 432,302 | |
Total liabilities | 101,804 | 431,279 | |
Ceded | Affiliated Entity [Member] | |||
Assets: | |||
Premiums, reinsurance and other receivables | 321,868 | 1,513,398 | |
Deferred policy acquisition costs and value of business acquired | (4,309) | (26,429) | |
Total assets | 317,559 | 1,486,969 | |
Liabilities: | |||
Other policy-related balances | 0 | (1,023) | |
Other Liabilities | 99,641 | 430,846 | |
Total liabilities | $ 99,641 | $ 429,823 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Ceded Credit Risk [Line Items] | ||
Reinsurance recoverables | $ 11,900,000 | $ 11,500,000 |
Future policy benefits | 627,007,000 | 548,208,000 |
Other policy-related balances | 7,285,000 | 8,560,000 |
Other assets | 48,285,000 | 62,937,000 |
Five Largest Ceded Reinsurers [Member] | ||
Ceded Credit Risk [Line Items] | ||
Five largest reinsurers, reinsurance recoverables amount | $ 10,500,000 | $ 10,100,000 |
Five largest reinsurers, reinsurance recoverables percentage | 88.00% | 88.00% |
Ceded Credit Risk, Unsecured [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance recoverables | $ 11,900,000 | $ 11,400,000 |
Mortality Risk [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Reinsured risk percentage | 100.00% | |
Retention amount | $ 100,000 | |
Fixed Annuities [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Reinsured risk percentage | 100.00% |
Reinsurance (Related Party Narr
Reinsurance (Related Party Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reinsurance Disclosures [Abstract] | |||
Other Liabilities | $ 112,441,000 | $ 446,637,000 | |
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | 66,079,000 | 63,716,000 | $ 125,130,000 |
Premiums, reinsurance and other receivables | 354,939,000 | 1,539,801,000 | |
Deferred Policy Acquisition Costs and Value of Business Acquired | 85,173,000 | 107,514,000 | 204,372,000 |
Other Assets | 48,285,000 | 62,937,000 | |
Future policy benefits | 627,007,000 | 548,208,000 | |
Other Policy-Related Balances | 7,285,000 | 8,560,000 | |
Reinsurance recoverables | 11,900,000 | 11,500,000 | |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 132,562,000 | 25,083,000 | 122,719,000 |
Affiliated Entity [Member] | |||
Reinsurance Disclosures [Abstract] | |||
Deposit Contracts, Assets | 28,000,000 | 1,000,000,000 | |
Deposit Contracts, Liabilities | 0 | 0 | |
Affiliated Entity [Member] | Ceded guaranteed minimum benefits | |||
Reinsurance Disclosures [Abstract] | |||
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | 24,200,000 | 12,500,000 | 88,400,000 |
Embedded Derivative, Fair Value of Embedded Derivative Asset | 211,200,000 | 185,000,000 | |
Affiliated Entity [Member] | ModifiedCoInsMLIC [Member] | |||
Reinsurance Disclosures [Abstract] | |||
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | 46,200,000 | 54,100,000 | $ 38,100,000 |
Embedded Derivative, Fair Value of Embedded Derivative Asset | 168,100,000 | 121,900,000 | |
Affiliated Entity [Member] | SPDARecapture [Member] | |||
Reinsurance Disclosures [Abstract] | |||
Cash, Cash Equivalents, and Short-term Investments | 933,400,000 | ||
Premiums, reinsurance and other receivables | 922,600,000 | ||
Deferred Policy Acquisition Costs and Value of Business Acquired | 22,900,000 | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 21,900,000 | ||
Affiliated Entity [Member] | MRVTermRecapture [Member] | |||
Reinsurance Disclosures [Abstract] | |||
Other Liabilities | 334,600,000 | ||
Premiums, reinsurance and other receivables | 294,800,000 | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 24,200,000 | ||
Ceded Credit Risk, Unsecured [Member] | |||
Reinsurance Disclosures [Abstract] | |||
Reinsurance recoverables | 11,900,000 | 11,400,000 | |
Ceded Credit Risk, Unsecured [Member] | Affiliated Entity [Member] | |||
Reinsurance Disclosures [Abstract] | |||
Reinsurance recoverables | $ 199,000,000 | $ 1,200,000,000 |
Investments (Fixed Maturity and
Investments (Fixed Maturity and Equity Securities Available-For-Sale by Sector) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | $ 1,870,654 | $ 1,081,183 |
Available-for-sale Securities, Debt Securities | 1,878,514 | 1,087,215 |
Non-income producing fixed maturity securities | ||
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | 1,870,654 | 1,081,183 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 42,755 | 35,966 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 34,895 | 29,934 |
Gross Unrealized OTTI Loss | 0 | 0 |
Available-for-sale Securities, Debt Securities | 1,878,514 | 1,087,215 |
U.S. corporate | ||
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | 709,694 | 553,881 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 20,400 | 15,607 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 8,283 | 17,554 |
Gross Unrealized OTTI Loss | 0 | 0 |
Available-for-sale Securities, Debt Securities | 721,811 | 551,934 |
U.S. Treasury and agency securities | ||
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | 410,504 | 105,700 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 9,560 | 10,549 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 13,519 | 1,291 |
Gross Unrealized OTTI Loss | 0 | 0 |
Available-for-sale Securities, Debt Securities | 406,545 | 114,958 |
RMBS | ||
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | 238,676 | 103,898 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 2,033 | 1,461 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 2,322 | 884 |
Gross Unrealized OTTI Loss | 0 | 0 |
Available-for-sale Securities, Debt Securities | 238,387 | 104,475 |
Foreign corporate | ||
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | 237,412 | 122,578 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 2,998 | 2,335 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 8,070 | 8,463 |
Gross Unrealized OTTI Loss | 0 | 0 |
Available-for-sale Securities, Debt Securities | 232,340 | 116,450 |
CMBS | ||
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | 177,719 | 131,662 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 2,724 | 1,450 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 1,487 | 1,003 |
Gross Unrealized OTTI Loss | 0 | 0 |
Available-for-sale Securities, Debt Securities | 178,956 | 132,109 |
State and political subdivision | ||
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | 52,739 | 41,557 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 4,345 | 3,995 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 764 | 404 |
Gross Unrealized OTTI Loss | 0 | 0 |
Available-for-sale Securities, Debt Securities | 56,320 | 45,148 |
ABS | ||
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | 26,695 | 17,930 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 152 | 242 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 177 | 208 |
Gross Unrealized OTTI Loss | 0 | 0 |
Available-for-sale Securities, Debt Securities | 26,670 | 17,964 |
Foreign government | ||
Available-for-sale Securities [Abstract] | ||
Cost or Amortized Cost | 17,215 | 3,977 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 543 | 327 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 273 | 127 |
Gross Unrealized OTTI Loss | 0 | 0 |
Available-for-sale Securities, Debt Securities | $ 17,485 | $ 4,177 |
Investments (Maturities of Fixe
Investments (Maturities of Fixed Maturity Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Amortized Cost, Due in one year or less | $ 16,980 | |
Amortized Cost, Due after one year through five years | 297,783 | |
Amortized Cost, Due after five years through ten years | 610,139 | |
Amortized Cost, Due after ten years | 502,662 | |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis | 443,090 | |
Amortized cost of fixed maturity securities available-for-sale | 1,870,654 | $ 1,081,183 |
Estimated Fair Value, Due in one year or less | 17,268 | |
Estimated Fair Value, Due after one year through five years | 307,889 | |
Estimated Fair Value, Due after five years through ten years | 605,382 | |
Estimated Fair Value, Due after ten years | 503,962 | |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 444,013 | |
Available-for-sale Securities, Debt Securities | $ 1,878,514 | $ 1,087,215 |
Investments (Continuous Gross U
Investments (Continuous Gross Unrealized Losses for Fixed Maturity and Equity Securities Available-For-Sale) (Details) $ in Thousands | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Total number of securities in an unrealized loss position less than 12 months | 203 | 160 |
Total number of securities in an unrealized loss position equal to or greater than 12 months | 35 | 19 |
Fixed maturity securities | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | $ 947,335 | $ 452,721 |
Less than 12 Months Gross Unrealized Loss | 27,973 | 23,744 |
Equal to or Greater than 12 Months Estimated Fair Value | 52,129 | 45,345 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 6,922 | 6,190 |
U.S. corporate | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 250,559 | 257,983 |
Less than 12 Months Gross Unrealized Loss | 6,667 | 15,821 |
Equal to or Greater than 12 Months Estimated Fair Value | 17,745 | 14,836 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 1,616 | 1,733 |
U.S. Treasury and agency securities | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 342,150 | 34,465 |
Less than 12 Months Gross Unrealized Loss | 13,519 | 1,291 |
Equal to or Greater than 12 Months Estimated Fair Value | 0 | 0 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 0 | 0 |
RMBS | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 137,470 | 30,330 |
Less than 12 Months Gross Unrealized Loss | 2,089 | 641 |
Equal to or Greater than 12 Months Estimated Fair Value | 6,822 | 3,396 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 233 | 243 |
Foreign corporate | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 129,093 | 48,866 |
Less than 12 Months Gross Unrealized Loss | 3,541 | 4,584 |
Equal to or Greater than 12 Months Estimated Fair Value | 22,965 | 22,448 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 4,529 | 3,879 |
CMBS | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 42,661 | 67,578 |
Less than 12 Months Gross Unrealized Loss | 1,068 | 1,003 |
Equal to or Greater than 12 Months Estimated Fair Value | 3,729 | 0 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 419 | 0 |
State and political subdivision | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 20,709 | 3,955 |
Less than 12 Months Gross Unrealized Loss | 764 | 69 |
Equal to or Greater than 12 Months Estimated Fair Value | 0 | 4,665 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 0 | 335 |
ABS | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 17,504 | 8,690 |
Less than 12 Months Gross Unrealized Loss | 177 | 208 |
Equal to or Greater than 12 Months Estimated Fair Value | 0 | 0 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 0 | 0 |
Foreign government | ||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ||
Less than 12 months Estimated Fair Value | 7,189 | 854 |
Less than 12 Months Gross Unrealized Loss | 148 | 127 |
Equal to or Greater than 12 Months Estimated Fair Value | 868 | 0 |
Equal to or Greater than 12 Months Gross Unrealized Loss | $ 125 | $ 0 |
Investments (Mortgage Loans by
Investments (Mortgage Loans by Portfolio Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Investments, Debt and Equity Securities [Abstract] | |||||
Commercial mortgage loans | $ 286,002 | $ 120,946 | |||
Percentage of loans receivable on commercial mortgage loans | 70.40% | 85.60% | |||
Agricultural mortgage loans | $ 121,858 | $ 121,858 | $ 20,972 | ||
Percentage of loans receivable on agricultural mortgage loans | 30.00% | 14.80% | |||
Subtotal | $ 407,860 | $ 141,918 | |||
Percentage of loans receivable on subtotal | 100.40% | 100.40% | |||
Valuation allowances | $ (1,775) | $ (640) | $ (512) | $ (483) | |
Percentage of loans receivable on valuation allowances | (0.40%) | (0.40%) | |||
Mortgage Loans on Real Estate | $ 406,085 | $ 141,278 | |||
Percentage of total mortgage loans, net | 100.00% | 100.00% |
Investments (Valuation Allowanc
Investments (Valuation Allowance Rollforward by Portfolio Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Mortgage Loans on Real Estate [Line Items] | |||
Beginning Balance | $ 640 | $ 512 | $ 483 |
Provision (release) | 1,135 | 128 | 29 |
Ending Balance | 1,775 | 640 | 512 |
Commercial | |||
Mortgage Loans on Real Estate [Line Items] | |||
Beginning Balance | 578 | 481 | 450 |
Provision (release) | 841 | 97 | 31 |
Ending Balance | 1,419 | 578 | 481 |
Agricultural | |||
Mortgage Loans on Real Estate [Line Items] | |||
Beginning Balance | 62 | 31 | 33 |
Provision (release) | 294 | 31 | (2) |
Ending Balance | $ 356 | $ 62 | $ 31 |
Investments (Credit Quality of
Investments (Credit Quality of Commercial Mortgage Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 286,002 | $ 120,946 |
% of Total | 100.00% | 100.00% |
Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 276,324 | $ 119,519 |
% of Total | 96.60% | 98.80% |
65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 9,678 | $ 1,427 |
% of Total | 3.40% | 1.20% |
Greater than 1.20x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 269,389 | $ 111,988 |
Greater than 1.20x | Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 259,711 | 111,988 |
Greater than 1.20x | 65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 9,678 | 0 |
1.00x - 1.20x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 15,614 | 1,861 |
1.00x - 1.20x | Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 15,614 | 1,861 |
1.00x - 1.20x | 65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 0 | 0 |
Less than 1.00x | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 999 | 7,097 |
Less than 1.00x | Less than 65% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | 999 | 5,670 |
Less than 1.00x | 65% to 75% | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans | $ 0 | $ 1,427 |
Investments (Credit Quality o66
Investments (Credit Quality of Agricultural and Residential Mortgage Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Agricultural Mortgage Loans - by Credit Quality Indicator: | |||
Recorded investment in Mortgage Loan | $ 121,858 | $ 121,858 | $ 20,972 |
% of Total | 100.00% | 100.00% | |
Less than 65% | |||
Agricultural Mortgage Loans - by Credit Quality Indicator: | |||
Recorded investment in Mortgage Loan | $ 119,974 | $ 20,022 | |
% of Total | 98.40% | 95.50% | |
65% to 75% | |||
Agricultural Mortgage Loans - by Credit Quality Indicator: | |||
Recorded investment in Mortgage Loan | $ 1,884 | $ 950 | |
% of Total | 1.60% | 4.50% |
Investments (Net Unrealized Inv
Investments (Net Unrealized Investment Gains Losses) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Components of net unrealized investment gains (losses) included in accumulated other comprehensive loss | |||
Fixed maturity securities | $ 7,862 | $ 6,028 | $ 64,081 |
Derivatives | 4,718 | 3,189 | 429 |
Subtotal | 12,580 | 9,217 | 64,510 |
DAC, VOBA and DSI | (5,800) | (900) | (3,600) |
Deferred income tax benefit (expense) | (2,373) | (2,911) | (21,319) |
Net unrealized investment gains (losses) | $ 4,407 | $ 5,406 | $ 39,591 |
Investments (Changes in Net Unr
Investments (Changes in Net Unrealized Investment Gains Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Changes In Net Unrealized Investment Gains Losses Included In Accumulated Other Comprehensive Loss [Abstract] | |||
Balance at January 1, | $ 5,406 | $ 39,591 | $ 9,567 |
Unrealized investment gains (losses) during the year | 3,363 | (55,293) | 48,991 |
Unrealized investment gains (losses) relating to [Abstract] | |||
DAC, VOBA and DSI | (4,900) | 2,700 | (2,800) |
Deferred income tax benefit (expense) | 538 | 18,408 | (16,167) |
Balance at December 31, | 4,407 | 5,406 | 39,591 |
Change in net unrealized investment gains (losses) | $ (999) | $ (34,185) | $ 30,024 |
Investments (Invested Assets on
Investments (Invested Assets on Deposit, Held In Trust and Pledged as Collateral) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Invested assets on deposit | $ 1,507 | $ 1,534 |
Investments (Unconsolidated Var
Investments (Unconsolidated Variable Interest Entities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | $ 449,897 | $ 254,548 |
Carrying Amount Liability | 449,897 | 254,548 |
Structured Securities [Member] | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 444,013 | 254,548 |
Carrying Amount Liability | 444,013 | 254,548 |
U.S. and foreign corporate | ||
Variable Interest Entity [Line Items] | ||
Carrying Amount Asset | 5,884 | 0 |
Carrying Amount Liability | $ 5,884 | $ 0 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Investment Income [Line Items] | |||
Less: Investment expenses | $ 1,958 | $ 1,468 | $ 1,097 |
Net investment income | 57,780 | 52,944 | 41,053 |
Securities Investment | |||
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | 59,738 | 54,412 | 42,150 |
Fixed maturity securities | |||
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | 50,386 | 47,069 | 35,301 |
Mortgage loans | |||
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | 8,734 | 6,904 | 6,658 |
Cash, cash equivalents and short-term investments | |||
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | 102 | 38 | 32 |
Other | |||
Net Investment Income [Line Items] | |||
Gross Investment Income, Operating | $ 516 | $ 401 | $ 159 |
Investments (Components of Net
Investments (Components of Net Investment Gains Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Marketable Securities, Gain (Loss) [Abstract] | |||
Fixed maturity securities — net gains (losses) on sales and disposals | $ (1,884) | $ 4,547 | $ 599 |
Equity securities — net gains (losses) on sales and disposals | 6 | 0 | 0 |
Other net investment gains (losses): | |||
Mortgage loans | (1,129) | (146) | (27) |
Other | 140 | (2) | (20) |
Total net investment gains (losses) | (3,737) | 4,399 | 552 |
Fixed maturity securities | |||
Gain (Loss) on Investments [Line Items] | |||
Total OTTI losses recognized in earnings | (870) | 0 | 0 |
Net investment gains (losses) | (2,754) | 4,547 | 599 |
Industrial | |||
Gain (Loss) on Investments [Line Items] | |||
Total OTTI losses recognized in earnings | $ (870) | $ 0 | $ 0 |
Investments (Sales or Disposals
Investments (Sales or Disposals and Impairments of Fixed Maturity and Equity Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fixed maturity securities | |||
Components of Sales or Disposals of Fixed Maturity and Equity Securities | |||
Proceeds | $ 74,657 | $ 292,993 | $ 286,258 |
Gross investment gains | 1,006 | 8,204 | 1,633 |
Gross investment losses | (2,890) | (3,657) | (1,034) |
Total OTTI losses recognized in earnings | (870) | 0 | 0 |
Net investment gains (losses) | (2,754) | 4,547 | 599 |
Equity Securities [Member] | |||
Components of Sales or Disposals of Fixed Maturity and Equity Securities | |||
Proceeds | 183 | 0 | 0 |
Gross investment gains | 6 | 0 | 0 |
Gross investment losses | 0 | 0 | 0 |
Total OTTI losses recognized in earnings | 0 | 0 | 0 |
Net investment gains (losses) | $ 6 | $ 0 | $ 0 |
Investments (Fixed Maturity a74
Investments (Fixed Maturity and Equity Securities Available-For-Sale - Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Debt Securities | $ 1,878,514 | $ 1,087,215 |
Non-Income Producing Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Debt Securities | 0 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | $ 0 | $ 0 |
Investments (Evaluation of Avai
Investments (Evaluation of Available-For-Sale Securities for OTTI and Evaluating Temporarily Impaired AFS Securities - Narrative) (Details) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | |
Fixed maturities available-for-sale with gross unrealized loss of equal to or greater than stated percentage | 20.00% |
Fixed maturity securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss) before Taxes | $ 5,000,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 34,900,000 |
Twenty Percent Or More [Member] | Six Months Or Greater [Member] | Fixed maturity securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 0 |
Investments (Mortgage Loans - N
Investments (Mortgage Loans - Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Financing Receivable, Recorded Investment [Line Items] | |||
Percentage of Mortgage Loans Classified as Performing | 100.00% | 100.00% | |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 0 | 0 | |
Financing Receivable Number of Contract of Recorded Investment Past Due | 0 | 0 | |
Loans and Leases Receivable, Number of Contract, Nonperforming, Nonaccrual of Interest | 0 | 0 | |
Commercial Loan [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Carrying Value | $ 0 | $ 0 | |
Recorded Investment | 0 | 0 | |
Valuation Allowances | 0 | 0 | |
Affiliated Entity [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Financing Receivable, Significant Sales | 100,200,000 | 44,900,000 | $ 10,000,000 |
Related Party Transaction, Amounts of Transaction | $ 63,700,000 | $ 30,300,000 | $ 14,700,000 |
Investments (Cash Equivalents -
Investments (Cash Equivalents - Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | ||
Cash equivalents | $ 9.2 | $ 5.2 |
Investments (Concentrations of
Investments (Concentrations of Credit Risk - Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | ||
Securities holdings exposure in single issuer greater than stated percentage of Company's equity | 10.00% | |
Investments in any counterparty that were greater than 10% of equity | $ 0 | $ 0 |
Investments (Consolidated Varia
Investments (Consolidated Variable Interest Entities - Narrative) (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | ||
Variable interest, consoldidated carrying amount assets and liabilities net | $ 0 | $ 0 |
Investments (Net Investment Gai
Investments (Net Investment Gains Losses - Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | |||
Foreign Currency Transaction Gain (Loss), Realized | $ (54) | $ 458 | $ (12) |
Investments (Related Party Inve
Investments (Related Party Investment Transactions - Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 30, 2016 | |
Related Party Transaction [Line Items] | ||||
Related party investment administrative services | $ 1,900 | $ 1,400 | $ 1,100 | |
Affiliated Entity [Member] | ||||
Related Party Transaction [Line Items] | ||||
Assets Transferred To Affiliates, Estimated Fair Value | 1,500 | |||
Transfers of Financial Assets Accounted for as Sale, Amortized Cost of Assets Obtained as Proceeds | 1,400 | |||
Affiliated Entity [Member] | Other invested assets [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party net investment income | $ 64 | |||
Contract Termination [Member] | Recapture MLIC [Member] | Affiliated Entity [Member] | ||||
Related Party Transaction [Line Items] | ||||
Cash, Cash Equivalents, and Short-term Investments | $ 933,400 |
Derivatives (Primary Risks) (De
Derivatives (Primary Risks) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | $ 47,993 | $ 46,452 |
Estimated Fair Value Assets | 8,656 | 4,981 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 14,063 | 14,063 |
Estimated Fair Value Assets | 3,709 | 1,595 |
Estimated Fair Value Liabilities | 0 | 0 |
Cash Flow Hedging [Member] | Derivatives Designated as Hedging Instruments | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Gross Notional Amount | 33,930 | 32,389 |
Estimated Fair Value Assets | 4,947 | 3,386 |
Estimated Fair Value Liabilities | $ 0 | $ 0 |
Derivatives (Net Derivative Gai
Derivatives (Net Derivative Gains Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Components of Net Derivatives Gains (Losses) | |||
Derivatives and hedging gains (losses) | $ 1,647 | $ 1,284 | $ 2,032 |
Embedded derivatives gains (losses) | 66,079 | 63,716 | 125,130 |
Total net derivative gains (losses) | $ 67,726 | $ 65,000 | $ 127,162 |
Derivatives (Gains Losses Recog
Derivatives (Gains Losses Recognized in Income Not Designated or Qualifying) (Details) - Derivatives Not Designated or Not Qualifying as Hedging Instruments - Net Derivative Gains (Losses) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivatives Gains (Losses) Recognized for Derivatives | $ 2,114 | $ 1,557 | $ 2,172 |
Foreign currency exchange rate derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivatives Gains (Losses) Recognized for Derivatives | $ 2,114 | $ 1,557 | $ 2,172 |
Derivatives (Estimated Fair Val
Derivatives (Estimated Fair Value of Derivatives Assets and Liabilities after Master Netting Agreements and Cash) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | $ 8,850 | $ 5,137 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 0 | 0 |
Amounts offset in the consolidated balance sheets, Assets | 0 | 0 |
Amounts offset in the consolidated balance sheets, Liabilities | 0 | 0 |
Net amount of derivative assets after application of master netting agreements and cash collateral | 178 | 1,277 |
Net amount of derivative liabilities after application of master netting agreements and cash collateral | 0 | 0 |
Estimated fair value of derivative assets presented in the consolidated balance sheets | 8,850 | 5,137 |
Estimated fair value of derivative liabilities presented in the consolidated balance sheets | 0 | 0 |
Over the Counter [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | 8,850 | 5,137 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 0 | 0 |
Cash collateral on derivative assets | (8,672) | (3,300) |
Cash collateral on derivative liabilities | 0 | 0 |
Securities collateral on derivative assets | 0 | (560) |
Securities collateral on derivative liabilities | 0 | 0 |
Derivative Asset, Not Offset, Policy Election Deduction | 0 | 0 |
Derivative Liability, Not Offset, Policy Election Deduction | $ 0 | $ 0 |
Derivatives (Embedded Derivativ
Derivatives (Embedded Derivatives) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivatives, Fair Value [Line Items] | |||
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | $ 66,079 | $ 63,716 | $ 125,130 |
Ceded guaranteed minimum benefits | Premiums, reinsurance and other receivables | |||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | |||
Embedded Derivative, Fair Value of Embedded Derivative Asset | 379,297 | 306,863 | |
Direct guaranteed minimum benefits | Policyholder account balances | |||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | |||
Embedded Derivative, Fair Value of Embedded Derivative Liability | (23,740) | (53,518) | |
Net derivative gains (losses) | |||
Derivatives, Fair Value [Line Items] | |||
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | $ 66,079 | $ 63,716 | $ 125,130 |
Derivatives (Changes in Estimat
Derivatives (Changes in Estimated Fair Value Related to Embedded Derivatives) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net derivatives gains (losses) | $ 66,079 | $ 63,716 | $ 125,130 |
Net derivative gains (losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net derivatives gains (losses) | $ 66,079 | $ 63,716 | $ 125,130 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivatives, Fair Value [Line Items] | |||
Derivative assets | $ 8,656,000 | $ 4,981,000 | |
Derivative liabilities | 0 | 0 | |
Derivative, Collateral, Obligation to Return Cash | 270,000 | 0 | |
Customer Securities for which Entity has Right to Sell or Repledge, Fair Value of Securities Sold or Repledged | 0 | ||
Derivative, Net Liability Position, Aggregate Fair Value | 0 | 0 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net | $ 49,000 | $ 0 | $ 0 |
Maximum Length of Time Hedged in Cash Flow Hedge | 0 years | 0 years | |
Embedded derivatives gains (losses) | $ 66,079,000 | $ 63,716,000 | 125,130,000 |
Derivative Instrument Detail [Abstract] | |||
Accumulated Other Comprehensive Income (Loss) | 4,700,000 | 3,200,000 | |
Deferred net gains (losses) expected to be reclassified to earnings | 521,000 | ||
Derivative, Collateral, Obligation to Return Securities | 0 | 0 | |
Derivative, Collateral, Right to Reclaim Securities | 0 | 0 | |
Nonperformance Risk [Member] | Direct And Assumed Guaranteed Minimum Benefit [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Embedded derivatives gains (losses) | (57,000) | 1,400,000 | 578,000 |
Nonperformance Risk [Member] | Ceded guaranteed minimum benefits | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Embedded derivatives gains (losses) | (19,000,000) | (2,600,000) | (5,800,000) |
Currency Swap [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains Losses Deferred In Accumulated Other Comprehensive Income Loss On Derivatives Effective Portion | 1,600,000 | 2,800,000 | 1,300,000 |
Designated as Hedging Instrument [Member] | Currency Swap [Member] | Cash Flow Hedging [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 4,947,000 | 3,386,000 | |
Derivative liabilities | 0 | 0 | |
Not Designated as Hedging Instrument [Member] | Currency Swap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | 3,709,000 | 1,595,000 | |
Derivative liabilities | 0 | 0 | |
Investment Income [Member] | Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest Income (Expense), Nonoperating, Net | 581,000 | 394,000 | 111,000 |
Net derivative gains (losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Embedded derivatives gains (losses) | 66,079,000 | 63,716,000 | 125,130,000 |
Net derivative gains (losses) | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 55,000 | 0 | 0 |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 3,000 | 0 | 0 |
Net derivative gains (losses) | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest Income (Expense), Nonoperating, Net | 279,000 | 215,000 | $ 168,000 |
Accrued Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets | $ 194,000 | $ 156,000 |
Fair Value (Recurring Fair Valu
Fair Value (Recurring Fair Value Measurements) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | $ 1,878,514 | $ 1,087,215 |
Short-term investments | 0 | 18,484 |
Derivative Asset, Fair Value, Gross Asset | 8,656 | 4,981 |
Separate account assets | 4,758,449 | 4,792,140 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 1,878,514 | 1,087,215 |
Short-term investments | 0 | 18,484 |
Net embedded derivatives within asset host contracts | 379,297 | 306,863 |
Separate account assets | 4,758,449 | 4,792,140 |
Total assets | 7,024,916 | 6,209,683 |
Liabilities [Abstract] | ||
Net embedded derivatives within liability host contracts | (23,740) | (53,518) |
Total liabilities | (23,740) | (53,518) |
Recurring | Foreign currency exchange rate | ||
Assets [Abstract] | ||
Derivative Asset, Fair Value, Gross Asset | 8,656 | 4,981 |
Recurring | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 721,811 | 551,934 |
Recurring | US Treasury and Government [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 406,545 | 114,958 |
Recurring | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 238,387 | 104,475 |
Recurring | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 232,340 | 116,450 |
Recurring | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 178,956 | 132,109 |
Recurring | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 56,320 | 45,148 |
Recurring | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 26,670 | 17,964 |
Recurring | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 17,485 | 4,177 |
Recurring | Level 1 | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 289,186 | 65,364 |
Short-term investments | 0 | 500 |
Net embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 0 | 0 |
Total assets | 289,186 | 65,864 |
Liabilities [Abstract] | ||
Net embedded derivatives within liability host contracts | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring | Level 1 | Foreign currency exchange rate | ||
Assets [Abstract] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Recurring | Level 1 | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | US Treasury and Government [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 289,186 | 65,364 |
Recurring | Level 1 | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 1 | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 2 | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 1,485,614 | 952,800 |
Short-term investments | 0 | 17,984 |
Net embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 4,758,449 | 4,792,140 |
Total assets | 6,252,719 | 5,767,905 |
Liabilities [Abstract] | ||
Net embedded derivatives within liability host contracts | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring | Level 2 | Foreign currency exchange rate | ||
Assets [Abstract] | ||
Derivative Asset, Fair Value, Gross Asset | 8,656 | 4,981 |
Recurring | Level 2 | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 681,406 | 522,888 |
Recurring | Level 2 | US Treasury and Government [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 117,359 | 49,594 |
Recurring | Level 2 | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 217,091 | 95,828 |
Recurring | Level 2 | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 200,454 | 90,307 |
Recurring | Level 2 | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 173,763 | 126,894 |
Recurring | Level 2 | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 56,320 | 45,148 |
Recurring | Level 2 | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 21,736 | 17,964 |
Recurring | Level 2 | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 17,485 | 4,177 |
Recurring | Level 3 | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 103,714 | 69,051 |
Short-term investments | 0 | 0 |
Net embedded derivatives within asset host contracts | 379,297 | 306,863 |
Separate account assets | 0 | 0 |
Total assets | 483,011 | 375,914 |
Liabilities [Abstract] | ||
Net embedded derivatives within liability host contracts | (23,740) | (53,518) |
Total liabilities | (23,740) | (53,518) |
Recurring | Level 3 | Foreign currency exchange rate | ||
Assets [Abstract] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Recurring | Level 3 | U.S. corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 40,405 | 29,046 |
Recurring | Level 3 | US Treasury and Government [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 3 | RMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 21,296 | 8,647 |
Recurring | Level 3 | Foreign corporate | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 31,886 | 26,143 |
Recurring | Level 3 | CMBS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 5,193 | 5,215 |
Recurring | Level 3 | State and political subdivision | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring | Level 3 | ABS | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | 4,934 | 0 |
Recurring | Level 3 | Foreign government | ||
Assets [Abstract] | ||
Available-for-sale Securities, Debt Securities | $ 0 | $ 0 |
Fair Value (Quantitative Inform
Fair Value (Quantitative Information) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Embedded derivatives direct and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Utilization rates | 0.00% | 0.00% |
Withdrawal rates | 0.25% | 0.25% |
Long-term equity volatilities | 17.40% | 17.40% |
Nonperformance risk spread | 0.04% | 0.04% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Durations 1 - 10 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 0.25% | 0.25% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Durations 11 - 20 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 2.00% | 3.00% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Durations 21 - 116 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 2.00% | 3.00% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Ages 0 - 40 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 0.00% | 0.00% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Ages 41 - 60 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 0.04% | 0.04% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Minimum | Income Approach Valuation Technique | Ages 61 – 115 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 0.26% | 0.26% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Utilization rates | 25.00% | 25.00% |
Withdrawal rates | 10.00% | 10.00% |
Long-term equity volatilities | 25.00% | 25.00% |
Nonperformance risk spread | 0.57% | 0.52% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Durations 1 - 10 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 100.00% | 100.00% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Durations 11 - 20 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 100.00% | 100.00% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Durations 21 - 116 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Lapse Rate | 100.00% | 100.00% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Ages 0 - 40 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 0.09% | 0.09% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Ages 41 - 60 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 0.65% | 0.65% |
Embedded derivatives direct and ceded guaranteed minimum benefits | Maximum | Income Approach Valuation Technique | Ages 61 – 115 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Mortality Rate | 100.00% | 100.00% |
U.S. corporate and foreign corporate | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Delta spread adjustments | (0.65%) | |
Offered quotes (5) | $ 0.0094 | $ 0.0096 |
Quoted prices | 0.0075 | |
U.S. corporate and foreign corporate | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Delta spread adjustments | 0.90% | |
Offered quotes (5) | 0.0136 | $ 0.0096 |
Quoted prices | 0.011 | |
U.S. corporate and foreign corporate | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Delta spread adjustments | 0.03% | |
Offered quotes (5) | 0.0107 | $ 0.0096 |
Quoted prices | 0.0097 | |
CMBS | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 0.0104 | 0.0104 |
CMBS | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 0.0104 | 0.0104 |
CMBS | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 0.0104 | 0.0104 |
RMBS | Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 0.0056 | 0.0068 |
RMBS | Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | 0.0111 | 0.0098 |
RMBS | Weighted Average | Market Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Quoted prices | $ 0.0086 | $ 0.009 |
Fair Value (Unobservable Input
Fair Value (Unobservable Input Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Derivatives | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | $ 71,709 | $ 67,551 | $ 127,942 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Balance at January 1, | 360,381 | 319,660 | |
Total realized/unrealized gains (losses) included in net income (loss) | 66,079 | 63,716 | 125,130 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (23,423) | (22,995) | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Balance at December 31, | 403,037 | 360,381 | 319,660 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 71,709 | 67,551 | 127,942 |
U.S. corporate and foreign corporate | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 55,189 | 29,978 | |
Total realized/unrealized gains (losses) included in net income (loss) | (64) | 79 | 81 |
Total realized/unrealized gains (losses) included in AOCI | (1,769) | (1,849) | (93) |
Purchases | 21,260 | 29,114 | |
Sales | (462) | (2,133) | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | (1,863) | 0 | |
Balance at December 31, | 72,291 | 55,189 | 29,978 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (64) | 23 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (64) | 23 | 0 |
Structured | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1, | 13,862 | 5,215 | |
Total realized/unrealized gains (losses) included in net income (loss) | 249 | 83 | (22) |
Total realized/unrealized gains (losses) included in AOCI | 152 | 55 | 22 |
Purchases | 23,916 | 9,011 | |
Sales | (1,901) | (502) | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | (4,855) | 0 | |
Balance at December 31, | 31,423 | 13,862 | 5,215 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 249 | 83 | (22) |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | $ 249 | $ 83 | $ (22) |
Fair Value (Financial Instrumen
Fair Value (Financial Instruments Carried at Other Than Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Liabilities | ||
Separate account liabilities | $ 4,758,449 | $ 4,792,140 |
Estimated Fair Value | ||
Assets | ||
Mortgage loans | 404,079 | 149,037 |
Premiums, reinsurance and other receivables | 32,367 | 1,100,653 |
Liabilities | ||
Policyholder account balances | 1,283,338 | 1,386,997 |
Estimated Fair Value | Level 1 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Premiums, reinsurance and other receivables | 0 | 0 |
Liabilities | ||
Policyholder account balances | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Premiums, reinsurance and other receivables | 2,095 | 97 |
Liabilities | ||
Policyholder account balances | 0 | 0 |
Estimated Fair Value | Level 3 | ||
Assets | ||
Mortgage loans | 404,079 | 149,037 |
Premiums, reinsurance and other receivables | 30,272 | 1,100,556 |
Liabilities | ||
Policyholder account balances | 1,283,338 | 1,386,997 |
Carrying Value | ||
Assets | ||
Mortgage loans | 406,085 | 141,278 |
Premiums, reinsurance and other receivables | 30,122 | 1,001,430 |
Liabilities | ||
Policyholder account balances | $ 1,214,186 | $ 1,292,144 |
Fair Value Fair Value (Transfer
Fair Value Fair Value (Transfers Between Levels) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value (Transfers Between Levels) [Abstract] | ||
Fair Value Assets And Liabilities Transferred Between Levels 1 And Levels 2 | $ 0 | $ 0 |
Equity (Statutory Income) (Deta
Equity (Statutory Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statutory Accounting Practices [Line Items] | |||
Statutory capital and surplus | $ 195,824 | $ 320,675 | |
Statutory net income (loss) | $ (87,290) | $ 17,194 | $ 10,635 |
Equity (Components of Accumulat
Equity (Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 90,410 | $ 23,095 | $ 86,449 |
Balance beginning of period | 5,406 | 39,591 | 9,567 |
OCI before reclassifications | (4,193) | (48,032) | 47,441 |
Deferred income tax benefit (expense) | 1,468 | 16,812 | (16,604) |
AOCI before reclassifications, net of income tax | 2,681 | 8,371 | 40,404 |
Amounts reclassified from AOCI | 2,656 | (4,561) | (1,250) |
Deferred income tax benefit (expense) | (930) | 1,596 | 437 |
Amounts reclassified from AOCI, net of income tax | 1,726 | (2,965) | (813) |
Balance end of period | 4,407 | 5,406 | 39,591 |
Unrealized Investment Gains (Losses), Net of Related Offsets | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance beginning of period | 3,333 | 39,312 | 10,119 |
OCI before reclassifications | (5,777) | (50,792) | 46,163 |
Deferred income tax benefit (expense) | 2,022 | 17,778 | (16,157) |
AOCI before reclassifications, net of income tax | (422) | 6,298 | 40,125 |
Amounts reclassified from AOCI | 2,711 | (4,561) | (1,250) |
Deferred income tax benefit (expense) | (949) | 1,596 | 437 |
Amounts reclassified from AOCI, net of income tax | 1,762 | (2,965) | (813) |
Balance end of period | 1,340 | 3,333 | 39,312 |
Unrealized Gains (Losses) on Derivatives | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance beginning of period | 2,073 | 279 | (552) |
OCI before reclassifications | 1,584 | 2,760 | 1,278 |
Deferred income tax benefit (expense) | (554) | (966) | (447) |
AOCI before reclassifications, net of income tax | 3,103 | 2,073 | 279 |
Amounts reclassified from AOCI | (55) | 0 | 0 |
Deferred income tax benefit (expense) | 19 | 0 | 0 |
Amounts reclassified from AOCI, net of income tax | (36) | 0 | 0 |
Balance end of period | 3,067 | 2,073 | 279 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (1,726) | 2,965 | 813 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Investment Gains (Losses), Net of Related Offsets | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (1,762) | 2,965 | 813 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Derivatives | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 36 | $ 0 | $ 0 |
Equity (Reclassifications Out o
Equity (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net investment gains (losses) | $ (3,737) | $ 4,399 | $ 552 |
Net derivative gains (losses) | 67,726 | 65,000 | 127,162 |
Net investment income | 57,780 | 52,944 | 41,053 |
Income (loss) from continuing operations before provision for income tax | 132,562 | 25,083 | 122,719 |
Provision for income tax expense (benefit) | (42,152) | (1,988) | (36,270) |
Net income (loss) | 90,410 | 23,095 | 86,449 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 90,410 | 23,095 | 86,449 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (1,726) | 2,965 | 813 |
Unrealized Investment Gains (Losses), Net of Related Offsets | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net investment gains (losses) | (2,745) | 4,550 | 600 |
Net derivative gains (losses) | (45) | (217) | 0 |
Net investment income | 79 | 228 | 650 |
Income (loss) from continuing operations before provision for income tax | (2,711) | 4,561 | 1,250 |
Provision for income tax expense (benefit) | (949) | 1,596 | 437 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (1,762) | 2,965 | 813 |
Unrealized Gains (Losses) on Derivatives | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income (loss) from continuing operations before provision for income tax | 55 | 0 | 0 |
Provision for income tax expense (benefit) | (19) | 0 | 0 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 36 | 0 | 0 |
Foreign currency swaps | Unrealized Gains (Losses) on Derivatives | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net derivative gains (losses) | $ 55 | $ 0 | $ 0 |
Equity (Statutory Income - Narr
Equity (Statutory Income - Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Statutory Accounting Practices [Line Items] | ||
Total adjusted capital of MetLife USA | 400% | 400% |
Statutory Accounting Practices, Prescribed Practice, Amount | $ 53 | $ 46.9 |
Equity (Dividend Restrictions -
Equity (Dividend Restrictions - Narrative) (Details) - Metlife Inc [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | |
Payments of Dividends | $ 0 | $ 0 | |
Scenario, Forecast [Member] | |||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | $ 0 |
Other Expenses (Other Expenses)
Other Expenses (Other Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Income and Expenses [Abstract] | |||
Compensation | $ 8,535 | $ 13,421 | $ 18,843 |
Pension Post Retirement And Post Employment Benefit Costs | 796 | 1,334 | 1,109 |
Commissions | 17,586 | 21,291 | 26,482 |
Volume-related costs | 4,943 | 6,123 | 5,002 |
Affiliated interest costs on ceded and assumed reinsurance | 10,535 | 11,276 | 10,479 |
Capitalization of DAC | (4,976) | (4,768) | (14,009) |
Premium taxes, licenses and fees | 2,590 | 3,607 | 2,652 |
Professional services | 1,529 | 373 | 2,268 |
Rent and related expenses | 1,096 | 1,065 | 2,162 |
Other | 14,393 | 11,491 | 24,579 |
Total other expenses | $ 57,027 | $ 65,213 | $ 79,567 |
Income Tax (Provision for Incom
Income Tax (Provision for Income Tax from Continuing Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
Federal | $ (57,108) | $ 1,148 | $ 56,154 |
Deferred: | |||
Federal | 99,260 | 840 | (19,884) |
Current and Deferred | |||
Provision for income tax expense (benefit) | $ 42,152 | $ 1,988 | $ 36,270 |
Income Tax (Income Loss from Co
Income Tax (Income Loss from Continuing Operations Before Income Tax Expense from Domestic and Foreign Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income (loss) from continuing operations: | |||
Income (loss) before provision for income tax | $ 132,562 | $ 25,083 | $ 122,719 |
Income Tax (Reconciliation of I
Income Tax (Reconciliation of Income Tax Provision between US Statutory Rate and As Reported for Continuing Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income tax expense benefit continuing operations income tax reconciliation | |||
Tax provision at U.S. statutory rate | $ 46,397 | $ 8,779 | $ 42,952 |
Dividend received deduction | (4,732) | (5,589) | (5,039) |
Prior year tax | 1,282 | (624) | (1,220) |
Tax credits | (797) | (580) | (504) |
Other, net | 2 | 2 | 81 |
Provision for income tax expense (benefit) | $ 42,152 | $ 1,988 | $ 36,270 |
Income Tax (Net Deferred Income
Income Tax (Net Deferred Income Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred income tax assets: | ||
Tax Credit Carryforward, Amount | $ 4,491 | $ 3,692 |
Other | 2,206 | 858 |
Total deferred income tax assets | 6,697 | 4,550 |
Deferred income tax liabilities: | ||
Investments, including derivatives | 1,102 | 1,238 |
Policyholder liabilities and receivables | 210,814 | 99,246 |
Intangibles | 1,850 | 1,869 |
Net unrealized investment gains | 2,373 | 2,911 |
DAC | 10,397 | 20,403 |
Total deferred income tax liabilities | 226,536 | 125,667 |
Deferred tax assets and liabilities [Abstract] | ||
Net deferred income tax asset (liability) | $ (219,839) | $ (121,117) |
Income Tax (Reconciliation of U
Income Tax (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits | |||
Balance at January 1, | $ 983 | $ 983 | $ 838 |
Additions for tax positions of prior years | 300 | 0 | 169 |
Reductions for tax positions of prior years | (23) | 0 | (124) |
Additions for tax positions of current year | 300 | 0 | 100 |
Settlements with tax authorities | (356) | 0 | 0 |
Balance at December 31, | 1,204 | 983 | 983 |
Unrecognized tax benefits that, if recognized would impact the effective rate | $ 1,130 | $ 909 | $ 909 |
Income Tax (Tax Credit Carryfor
Income Tax (Tax Credit Carryforwards) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Tax Credit Carryforward [Line Items] | ||
Tax credit carryforwards | $ 4,491 | $ 3,692 |
Earliest Tax Year [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Tax Credit Carryforward, Expiration Date | Dec. 31, 2022 |
Income Tax (Interest Accrued Re
Income Tax (Interest Accrued Related to Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Interest recognized on the consolidated statements of operations | $ (79) | $ 0 | $ (24) |
Interest included in other liabilities on the consolidated balance sheets | $ 62 | $ 141 |
Income Tax (Tax) (Details)
Income Tax (Tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Tax Credit Carryforward [Line Items] | |||
Tax Credit Carryforward, Amount | $ 4,491 | $ 3,692 | |
Federal statutory tax rate | 35.00% | ||
Income tax benefit related to the separate account dividends received deduction | $ 3,900 | 5,600 | $ 6,300 |
Amounts due from affiliates per tax sharing agreement | (57,900) | (1,500) | |
True-up of the prior year tax return included in current year benefit related to the separate account dividends received deduction | $ 900 | $ 600 | $ 1,200 |
Earliest Tax Year [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Tax Credit Carryforward, Expiration Date | Dec. 31, 2022 |
Income Tax Income Tax Penalties
Income Tax Income Tax Penalties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Penalties [Abstract] | |||
Income Tax Examination, Penalties Expense | $ 0 | $ 0 | $ 0 |
Contingencies, Commitments a109
Contingencies, Commitments and Guarantees (Insolvency Assessments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Other Assets: | ||
Premium tax offset for future discounted and undiscounted assessments | $ 300 | $ 300 |
Premium tax offsets currently available for paid assessments | 1,829 | 3,820 |
Other Liabilities: | ||
Insolvency assessments | 400 | 400 |
Insurance-related Assessments | ||
Loss Contingencies [Line Items] | ||
Total assets held for insolvency assessments | $ 2,129 | $ 4,120 |
Contingencies, Commitments a110
Contingencies, Commitments and Guarantees (Commitments - Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Mortgage Loan Commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $ 42 | $ 4,000 |
Contingencies, Commitments a111
Contingencies, Commitments and Guarantees (Guarantees - Narrative) (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Guarantees [Abstract] | ||
Guarantor Obligations, Current Carrying Value | $ 0 | $ 0 |
Related Party Transactions (Rel
Related Party Transactions (Related Party Transactions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Assets | $ 7,633,046 | $ 7,775,777 | |
Liabilities | 6,936,313 | 7,168,455 | |
Affiliated Entity [Member] | Broker Dealer Activities [Member] | |||
Related Party Transaction [Line Items] | |||
Assets | 934 | 883 | |
Revenue from Related Parties | 9,968 | 10,515 | $ 10,136 |
Related Party Transaction, Expenses from Transactions with Related Party | 32,191 | 30,672 | 30,007 |
Liabilities | 0 | 0 | |
Affiliated Entity [Member] | All Services and Transactions Except Broker Dealer Activities [Member] | |||
Related Party Transaction [Line Items] | |||
Assets | 322,394 | 1,489,214 | |
Revenue from Related Parties | 50,358 | 16,759 | 121,858 |
Related Party Transaction, Expenses from Transactions with Related Party | (76,613) | (44,358) | $ 1,671 |
Liabilities | $ 99,641 | $ 429,822 |
Related Party Transactions (113
Related Party Transactions (Related Party Transactions - Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | $ 195,824 | $ 320,675 | |
Other expenses | 57,027 | 65,213 | $ 79,567 |
Affiliated Entity [Member] | |||
Related Party Transaction [Line Items] | |||
Other expenses | $ 19,900 | $ 30,400 | $ 49,500 |
Principal United States Insurance Subsidiaries, Excluding American Life [Member] | |||
Related Party Transaction [Line Items] | |||
Statutory Accounting Practices, Risk Based Capital Level, Domestic Jurisdiction | 150% | ||
Other Foreign Operations, Excluding Japan [Member] | |||
Related Party Transaction [Line Items] | |||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | $ 10,000 |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Event (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 01, 2017 | |
Subsequent Event [Line Items] | |||||
Other Liabilities | $ 112,441 | $ 446,637 | |||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ (132,562) | $ (25,083) | $ (122,719) | ||
Affiliated Entity [Member] | MLIC Variable Annuity [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Other Liabilities | $ 129,800 | ||||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 84,400 |
Consolidated Summary of Inve115
Consolidated Summary of Investments - Other Than Investments in Related Parties (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | $ 2,285,395 | |
Amount at Which Shown on Balance Sheet | 2,293,255 | |
Other Investments | 8,656 | $ 4,981 |
Mortgage Loans on Real Estate | 406,085 | $ 141,278 |
Fixed Maturities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 1,870,654 | |
Estimated Fair Value | 1,878,514 | |
Amount at Which Shown on Balance Sheet | 1,878,514 | |
U.S. Treasury and agency securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 410,504 | |
Estimated Fair Value | 406,545 | |
Amount at Which Shown on Balance Sheet | 406,545 | |
Public utilities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 56,657 | |
Estimated Fair Value | 58,275 | |
Amount at Which Shown on Balance Sheet | 58,275 | |
State and political subdivision securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 52,739 | |
Estimated Fair Value | 56,320 | |
Amount at Which Shown on Balance Sheet | 56,320 | |
Foreign government | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 17,215 | |
Estimated Fair Value | 17,485 | |
Amount at Which Shown on Balance Sheet | 17,485 | |
All other corporate bonds | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 889,362 | |
Estimated Fair Value | 894,799 | |
Amount at Which Shown on Balance Sheet | 894,799 | |
Total bonds | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 1,426,477 | |
Estimated Fair Value | 1,433,424 | |
Amount at Which Shown on Balance Sheet | 1,433,424 | |
Mortgage-backed and asset-backed securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 443,090 | |
Estimated Fair Value | 444,013 | |
Amount at Which Shown on Balance Sheet | 444,013 | |
Redeemable Preferred Stock [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost or Amortized Cost | 1,087 | |
Estimated Fair Value | 1,077 | |
Amount at Which Shown on Balance Sheet | 1,077 | |
Mortgage loans held-for-investment | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amount at Which Shown on Balance Sheet | 406,085 | |
Other invested assets | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amount at Which Shown on Balance Sheet | $ 8,656 |
Consolidated Supplementary I116
Consolidated Supplementary Insurance Information (Balance Sheet Items) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC and VOBA | $ 85,173 | $ 107,514 | $ 204,372 |
Future Policy Benefits and Other Policy-Related Balances | 634,292 | 556,768 | 488,081 |
Policyholder Account Balances | 1,202,350 | 1,248,493 | 1,269,482 |
Unearned Premiums | 1,086 | 1,178 | 1,170 |
Unearned Revenue | 2,164 | 2,410 | 2,492 |
Annuities | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC and VOBA | 60,689 | 80,686 | 111,090 |
Future Policy Benefits and Other Policy-Related Balances | 325,468 | 279,372 | 238,947 |
Policyholder Account Balances | 1,179,305 | 1,224,268 | 1,255,229 |
Unearned Premiums | 0 | 0 | 0 |
Unearned Revenue | 2,164 | 2,410 | 2,492 |
Life | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC and VOBA | 24,265 | 26,591 | 92,592 |
Future Policy Benefits and Other Policy-Related Balances | 299,274 | 270,663 | 243,922 |
Policyholder Account Balances | 23,045 | 24,225 | 14,253 |
Unearned Premiums | 1,064 | 1,158 | 1,151 |
Unearned Revenue | 0 | 0 | 0 |
Corporate & Other | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
DAC and VOBA | 219 | 237 | 690 |
Future Policy Benefits and Other Policy-Related Balances | 9,550 | 6,733 | 5,212 |
Policyholder Account Balances | 0 | 0 | 0 |
Unearned Premiums | 22 | 20 | 19 |
Unearned Revenue | $ 0 | $ 0 | $ 0 |
Consolidated Supplementary I117
Consolidated Supplementary Insurance Information (Income Statement Items) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Universal Life and Investment-Type Product Policy Fees | $ 153,739 | $ 182,777 | $ 186,026 |
Net Investment Income | 57,780 | 52,944 | 41,053 |
Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances | 91,894 | 101,533 | 131,041 |
Amortization of DAC and VOBA | 23,217 | 103,826 | 68,771 |
Other Operating Expenses | 57,027 | 65,213 | 79,567 |
Annuities | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Universal Life and Investment-Type Product Policy Fees | 122,830 | 139,905 | 138,440 |
Net Investment Income | 27,632 | 23,127 | 12,756 |
Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances | 62,676 | 65,764 | 106,965 |
Amortization of DAC and VOBA | 20,927 | 36,788 | 56,532 |
Other Operating Expenses | 37,537 | 45,835 | 41,034 |
Life | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Universal Life and Investment-Type Product Policy Fees | 28,978 | 40,617 | 44,846 |
Net Investment Income | 17,033 | 15,379 | 13,985 |
Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances | 27,122 | 34,118 | 22,366 |
Amortization of DAC and VOBA | 2,272 | 66,568 | 12,025 |
Other Operating Expenses | 16,134 | 16,570 | 32,681 |
Corporate & Other | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Premiums and Universal Life and Investment-Type Product Policy Fees | 1,931 | 2,255 | 2,740 |
Net Investment Income | 13,115 | 14,438 | 14,312 |
Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances | 2,096 | 1,651 | 1,710 |
Amortization of DAC and VOBA | 18 | 470 | 214 |
Other Operating Expenses | $ 3,356 | $ 2,808 | $ 5,852 |
Consolidated Reinsurance (Conso
Consolidated Reinsurance (Consolidated Reinsurance) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Reinsurance | |||
Life Insurance in Force, Gross Amounts | $ 50,748,993 | $ 53,017,387 | $ 55,440,132 |
Life Insurance in Force, Ceded Amounts | 43,894,276 | 48,212,042 | 50,403,555 |
Life Insurance in Force, Assumed Amounts | 0 | 0 | 0 |
Life Insurance in Force, Net Amounts | $ 6,854,717 | $ 4,805,345 | $ 5,036,577 |
Life Insurance in Force, Percentage Assumed to Net | 0.00% | 0.00% | 0.00% |
Direct premiums | $ 109,733 | $ 122,110 | $ 133,129 |
Ceded Premiums Earned | 58,994 | 50,238 | 51,647 |
Assumed Premiums Earned | 0 | 0 | 0 |
Premiums Earned, Net | $ 50,739 | $ 71,872 | $ 81,482 |
Premiums, Percentage Assumed to Net | 0.00% | 0.00% | 0.00% |
Life insurance (1) | |||
Consolidated Reinsurance | |||
Direct premiums | $ 109,733 | $ 122,110 | $ 133,129 |
Ceded Premiums Earned | 58,994 | 50,238 | 51,647 |
Assumed Premiums Earned | 0 | 0 | 0 |
Premiums Earned, Net | $ 50,739 | $ 71,872 | $ 81,482 |
Premiums, Percentage Assumed to Net | 0.00% | 0.00% | 0.00% |
Accident & health insurance | |||
Consolidated Reinsurance | |||
Direct premiums | $ 0 | $ 0 | $ 0 |
Ceded Premiums Earned | 0 | 0 | 0 |
Assumed Premiums Earned | 0 | 0 | 0 |
Premiums Earned, Net | $ 0 | $ 0 | $ 0 |
Premiums, Percentage Assumed to Net | 0.00% | 0.00% | 0.00% |
Consolidated Reinsurance (Narra
Consolidated Reinsurance (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Reinsurance | |||
Reinsurance ceded | $ 58,994 | $ 50,238 | $ 51,647 |
Ceded Premiums, Life Insurance in Force | 43,894,276 | 48,212,042 | 50,403,555 |
Affiliated Entity [Member] | |||
Consolidated Reinsurance | |||
Ceded Premiums, Life Insurance in Force | 32,500,000 | 36,300,000 | 37,800,000 |
Life insurance (1) | |||
Consolidated Reinsurance | |||
Reinsurance ceded | 58,994 | 50,238 | 51,647 |
Life insurance (1) | Affiliated Entity [Member] | |||
Consolidated Reinsurance | |||
Reinsurance ceded | $ 44,200 | $ 37,100 | $ 39,500 |