DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION | 6 Months Ended |
Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |
Document type | S-1/A |
Document period end date | Jun. 30, 2018 |
Amendment flag | true |
Registrant name | Symetra Life Insurance Company |
Central index key | 1,559,495 |
Entity filer category | Non-accelerated Filer |
Amendment Description | the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-sale securities: | |||
Fixed maturities, at fair value | $ 30,124.5 | $ 30,281.3 | $ 28,312 |
Marketable equity securities, at fair value | 708.6 | 755.7 | 717.4 |
Mortgage loans, net | 6,285 | 6,241.2 | 5,692.2 |
Policy loans | 52.1 | 54.5 | 57 |
Investments in limited partnerships | 150 | 173 | 214.7 |
Derivatives, at fair value | 294.8 | 339.1 | 307.4 |
Total investments | 37,615 | 37,844.8 | 35,300.7 |
Cash and cash equivalents | 435 | 347.5 | 326.3 |
Accrued investment income | 339 | 335.2 | 326.7 |
Reinsurance recoverables | 320.4 | 318.2 | 298.8 |
DAC and VOBA | 960.8 | 696.2 | 596.7 |
Receivables and other assets | 216.8 | 216.3 | 191.7 |
Other intangible assets, net | 1,212.8 | 1,254.9 | 1,339.4 |
Goodwill | 563 | 563 | 563 |
Separate account assets | 999.4 | 978.1 | 911.4 |
Total assets | 42,662.2 | 42,554.2 | 39,854.7 |
LIABILITIES AND STOCKHOLDER'S EQUITY | |||
Funds held under deposit contracts | 36,199.1 | 35,345.9 | 33,393.1 |
Future policy benefits | 507.6 | 498.8 | 473.7 |
Policy and contract claims | 250.6 | 196.6 | 152.8 |
Other policyholders' funds | 131.7 | 117.9 | 118 |
Deferred income tax liabilities, net | 60.3 | 251.1 | 253.4 |
Other liabilities | 673.4 | 601.3 | 526.3 |
Separate account liabilities | 999.4 | 978.1 | 911.4 |
Total liabilities | 38,822.1 | 37,989.7 | 35,828.7 |
Commitments and contingencies | |||
Common stock, $250 par value; 20,000 shares authorized, issued, and outstanding | 5 | 5 | 5 |
Additional paid-in capital | 3,867.5 | 3,867.5 | 3,887.4 |
Retained earnings (deficit) | 226.1 | 140.9 | (7.5) |
Accumulated other comprehensive income (loss), net of taxes | (258.5) | 551.1 | 141.1 |
Total stockholder's equity | 3,840.1 | 4,564.5 | 4,026 |
Total liabilities and stockholder's equity | $ 42,662.2 | $ 42,554.2 | $ 39,854.7 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | |||
Fixed maturities, amortized cost | $ 30,486.7 | $ 29,599.2 | $ 28,097.5 |
Marketable equity securities, amortized cost | 611.4 | 642.7 | |
Investments in limited partnerships, fair value | $ 0 | $ 19.4 | |
Common stock par value (in usd per share) | $ 250 | $ 250 | $ 250 |
Common shares authorized (in shares) | 20,000 | 20,000 | 20,000 |
Common shares issued (in shares) | 20,000 | 20,000 | 20,000 |
Common shares outstanding (in shares) | 20,000 | 20,000 | 20,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 11 Months Ended | 12 Months Ended | ||
Jan. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2015 | |
Revenues: | ||||||
Premiums | $ 506.8 | $ 441.7 | $ 717.5 | $ 899.5 | ||
Net investment income | 671.3 | 640.6 | 1,101.3 | 1,284.1 | ||
Policy fees, contract charges, and other | 153.1 | 131.5 | 220.1 | 272.7 | ||
Net realized gains (losses): | ||||||
Total other-than-temporary impairment losses on securities | (3) | (2) | (10.6) | (6.5) | ||
Less: portion recognized in other comprehensive income | 0 | 0 | (0.1) | 0.1 | ||
Net impairment losses on securities recognized in earnings | (3) | (2) | (10.7) | (6.4) | ||
Other net realized gains (losses) | (55.8) | (2.3) | (99.6) | 8.3 | ||
Net realized gains (losses) | (58.8) | (4.3) | (110.3) | 1.9 | ||
Total revenues | 1,272.4 | 1,209.5 | 1,928.6 | 2,458.2 | ||
Benefits and expenses: | ||||||
Policyholder benefits and claims | 439.4 | 377.9 | 568.8 | 758.7 | ||
Interest credited | 505.4 | 479.9 | 867.8 | 973.6 | ||
Other underwriting and operating expenses | 243.2 | 224.5 | 406.6 | 452.5 | ||
Amortization of DAC and VOBA | 26.2 | 40.7 | 59.7 | 74.3 | ||
Amortization of intangible assets | 42.2 | 42.2 | 77.4 | 84.4 | ||
Total benefits and expenses | 1,256.4 | 1,165.2 | 1,980.3 | 2,343.5 | ||
Income (loss) from operations before income taxes | 16 | 44.3 | (51.7) | 114.7 | ||
Provision (benefit) for income taxes: | ||||||
Current | 19.1 | 9 | ||||
Deferred | (5.9) | (30.5) | (89.6) | (154.4) | ||
Total provision (benefit) for income taxes | (4.9) | (3.8) | (70.5) | (145.4) | ||
Net income (loss) | $ 20.9 | $ 48.1 | $ 18.8 | $ 260.1 | ||
Predecessor Company | ||||||
Revenues: | ||||||
Premiums | $ 61.2 | $ 716.6 | ||||
Net investment income | 109.7 | 1,339.4 | ||||
Policy fees, contract charges, and other | 18.3 | 207 | ||||
Net realized gains (losses): | ||||||
Total other-than-temporary impairment losses on securities | (3.8) | (56.1) | ||||
Less: portion recognized in other comprehensive income | 0 | 17.5 | ||||
Net impairment losses on securities recognized in earnings | (3.8) | (38.6) | ||||
Other net realized gains (losses) | (23.1) | (54.5) | ||||
Net realized gains (losses) | (26.9) | (93.1) | ||||
Total revenues | 162.3 | 2,169.9 | ||||
Benefits and expenses: | ||||||
Policyholder benefits and claims | 48.4 | 570.8 | ||||
Interest credited | 84.9 | 973.6 | ||||
Other underwriting and operating expenses | 33 | 384.5 | ||||
Amortization of DAC and VOBA | 8.6 | 90.1 | ||||
Amortization of intangible assets | 0.2 | 2.8 | ||||
Total benefits and expenses | 175.1 | 2,021.8 | ||||
Income (loss) from operations before income taxes | (12.8) | 148.1 | ||||
Provision (benefit) for income taxes: | ||||||
Current | (24.2) | 15.8 | ||||
Deferred | 15.3 | (46.1) | ||||
Total provision (benefit) for income taxes | (8.9) | (30.3) | ||||
Net income (loss) | $ (3.9) | $ 178.4 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 11 Months Ended | 12 Months Ended | ||
Jan. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2015 | |
Net income (loss) | $ 20.9 | $ 48.1 | $ 18.8 | $ 260.1 | ||
Other comprehensive income (loss), net of taxes and reclassification adjustments: | ||||||
Changes in unrealized gains (losses) on available-for-sale securities | (840) | 314.7 | 137.7 | 411.5 | ||
Other-than-temporary impairments on fixed maturities not related to credit losses (net of taxes of: 2017 $0.0; 2016 Successor $(0.1); 2016 Predecessor $0.0; 2015 $(6.1)) | (0.3) | (0.1) | ||||
Impact of net unrealized (gains) losses on DAC and VOBA | 150 | (52.8) | (14) | (41.9) | ||
Impact of cash flow hedges | (5.3) | (13.7) | 17.7 | (41.1) | ||
Other comprehensive income (loss) | (695.3) | 248.2 | 141.1 | 328.4 | ||
Total comprehensive income (loss) | $ (674.4) | $ 296.3 | $ 159.9 | $ 588.5 | ||
Predecessor Company | ||||||
Net income (loss) | $ (3.9) | $ 178.4 | ||||
Other comprehensive income (loss), net of taxes and reclassification adjustments: | ||||||
Changes in unrealized gains (losses) on available-for-sale securities | 113.3 | (598.9) | ||||
Other-than-temporary impairments on fixed maturities not related to credit losses (net of taxes of: 2017 $0.0; 2016 Successor $(0.1); 2016 Predecessor $0.0; 2015 $(6.1)) | 0 | (11.4) | ||||
Impact of net unrealized (gains) losses on DAC and VOBA | (24.4) | 103.3 | ||||
Impact of cash flow hedges | 25.2 | 35.7 | ||||
Other comprehensive income (loss) | 114.1 | (471.3) | ||||
Total comprehensive income (loss) | $ 110.2 | $ (292.9) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 11 Months Ended | 12 Months Ended | ||
Jan. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2015 | |
Changes in unrealized gains (losses) on available-for-sale securities, tax | $ (223.3) | $ 169.4 | $ 74.1 | $ 190.4 | ||
Other-than-temporary impairments on fixed maturities not related to credit losses, tax | (0.1) | 0 | ||||
Impact of net unrealized (gains) losses on DAC and VOBA, tax | 39.9 | (28.4) | (7.5) | (17) | ||
Impact of cash flow hedges, tax | $ (1.4) | $ (7.4) | $ 9.5 | $ (21.2) | ||
Predecessor Company | ||||||
Changes in unrealized gains (losses) on available-for-sale securities, tax | $ 61 | $ (322.5) | ||||
Other-than-temporary impairments on fixed maturities not related to credit losses, tax | 0 | (6.1) | ||||
Impact of net unrealized (gains) losses on DAC and VOBA, tax | (13.1) | 55.7 | ||||
Impact of cash flow hedges, tax | $ 13.6 | $ 19.3 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY - USD ($) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Stockholders' equity, beginning balance (Predecessor Company) at Dec. 31, 2014 | $ 3,578,200,000 | $ 5,000,000 | $ 1,642,100,000 | $ 941,700,000 | $ 989,400,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | Predecessor Company | 178,400,000 | 0 | 0 | 178,400,000 | 0 |
Other comprehensive income (loss) | Predecessor Company | (471,300,000) | 0 | 0 | 0 | (471,300,000) |
Capital contributions | Predecessor Company | 10,900,000 | 0 | 10,900,000 | 0 | 0 |
Dividends declared | Predecessor Company | (140,000,000) | 0 | 0 | (140,000,000) | 0 |
Stockholders' equity, ending balance (Predecessor Company) at Dec. 31, 2015 | 3,156,200,000 | 5,000,000 | 1,653,000,000 | 980,100,000 | 518,100,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | Predecessor Company | (3,900,000) | 0 | 0 | (3,900,000) | 0 |
Other comprehensive income (loss) | Predecessor Company | 114,100,000 | 0 | 0 | 0 | 114,100,000 |
Capital contributions | Predecessor Company | 400,000 | 0 | 400,000 | 0 | 0 |
Stockholders' equity, ending balance (Predecessor Company) at Jan. 31, 2016 | 3,266,800,000 | 5,000,000 | 1,653,400,000 | 976,200,000 | 632,200,000 |
Stockholders' equity, ending balance at Jan. 31, 2016 | 3,946,100,000 | 5,000,000 | 3,941,100,000 | 0 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 18,800,000 | 0 | 0 | 18,800,000 | 0 |
Other comprehensive income (loss) | 141,100,000 | 0 | 0 | 0 | 141,100,000 |
Dividends declared | (80,000,000) | 0 | (53,700,000) | (26,300,000) | 0 |
Stockholders' equity, ending balance at Dec. 31, 2016 | 4,026,000,000 | 5,000,000 | 3,887,400,000 | (7,500,000) | 141,100,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 48,100,000 | 0 | 0 | 48,100,000 | 0 |
Other comprehensive income (loss) | 248,200,000 | 0 | 0 | 0 | 248,200,000 |
Dividends declared | (50,000,000) | 0 | (19,900,000) | (30,100,000) | 0 |
Stockholders' equity, ending balance at Jun. 30, 2017 | 4,272,300,000 | 5,000,000 | 3,867,500,000 | 10,500,000 | 389,300,000 |
Stockholders' equity, beginning balance at Dec. 31, 2016 | 4,026,000,000 | 5,000,000 | 3,887,400,000 | (7,500,000) | 141,100,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 260,100,000 | 0 | 0 | 260,100,000 | 0 |
Other comprehensive income (loss) | 328,400,000 | 0 | 0 | 0 | 328,400,000 |
Dividends declared | (50,000,000) | 0 | (19,900,000) | (30,100,000) | 0 |
Adoption of new accounting standard | 0 | 0 | 0 | (81,600,000) | 81,600,000 |
Stockholders' equity, ending balance at Dec. 31, 2017 | 4,564,500,000 | 5,000,000 | 3,867,500,000 | 140,900,000 | 551,100,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 20,900,000 | 0 | 0 | 20,900,000 | 0 |
Other comprehensive income (loss) | (695,300,000) | 0 | 0 | 0 | (695,300,000) |
Dividends declared | (50,000,000) | 0 | 0 | (50,000,000) | 0 |
Adoption of new accounting standard | 0 | 0 | 0 | 114,300,000 | (114,300,000) |
Stockholders' equity, ending balance at Jun. 30, 2018 | $ 3,840,100,000 | $ 5,000,000 | $ 3,867,500,000 | $ 226,100,000 | $ (258,500,000) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 11 Months Ended | 12 Months Ended | ||
Jan. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2015 | |
Cash flows from operating activities | ||||||
Net income (loss) | $ 20.9 | $ 48.1 | $ 18.8 | $ 260.1 | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||
Net realized (gains) losses | 58.8 | 4.3 | 110.3 | (1.9) | ||
Accretion and amortization of invested assets, net | 124.1 | 144.8 | 292.9 | 295.2 | ||
Amortization of intangible assets | 42.2 | 42.2 | 77.4 | 84.4 | ||
Other amortization, accretion and depreciation | (2.6) | (17.2) | (33.3) | (31.8) | ||
Deferred income tax provision (benefit) | (5.9) | (30.5) | (89.6) | (154.4) | ||
Interest credited on deposit contracts | 505.4 | 479.9 | 867.8 | 973.6 | ||
Mortality and expense charges and administrative fees | (136) | (115.2) | (175.2) | (221.4) | ||
Other changes in: | ||||||
DAC and VOBA | (107.8) | (93.7) | (155.6) | (165.6) | ||
Future policy benefits | 22.6 | 13.3 | 17.8 | 28.9 | ||
Other policyholder reserves | 37.2 | 37.4 | 47.1 | 79.8 | ||
Policy and contract claims | 54.1 | 63.1 | 8.6 | 43.8 | ||
Other assets and liabilities | 11.3 | (11.1) | 42.5 | (45.4) | ||
Other, net | (2.1) | (7.6) | 6.1 | (6.1) | ||
Total adjustments | 601.3 | 509.7 | 1,016.8 | 879.1 | ||
Net cash provided by (used in) operating activities | 622.2 | 557.8 | 1,035.6 | 1,139.2 | ||
Purchases of: | ||||||
Fixed maturities and marketable equity securities | (3,439.3) | (3,538.7) | (5,408.5) | (6,927.8) | ||
Derivatives and other investments | (119.6) | (84.8) | (133.6) | (177.9) | ||
Issuances of mortgage loans | (340.7) | (435.6) | (1,046.1) | (1,019.1) | ||
Sales of fixed maturities and marketable equity securities | 1,223.2 | 1,085.9 | 1,672 | 2,741.9 | ||
Maturities, calls, paydowns, and other repayments | 1,344.9 | 1,282.5 | 1,873 | 2,560.5 | ||
Cash received for sales/settlements of derivatives and other investments | 160.7 | 113.7 | 85.9 | 245.2 | ||
Repayments of mortgage loans | 277.9 | 205.6 | 377.4 | 420.7 | ||
Cash received (pledged or returned) as collateral, net | (44.4) | 30.5 | 166 | 54.9 | ||
Other, net | (40.7) | (21.7) | (11) | (43.1) | ||
Net cash provided by (used in) investing activities | (978) | (1,362.6) | (2,424.9) | (2,144.7) | ||
Policyholder account balances: | ||||||
Deposits | 1,999.9 | 2,212.9 | 3,715.4 | 3,622.2 | ||
Withdrawals | (1,506.8) | (1,321.5) | (2,173.8) | (2,566.4) | ||
Cash dividends paid on common stock | (50) | (25) | (80) | (29.1) | ||
Other, net | 0 | 0 | ||||
Net cash provided by (used in) financing activities | 443.1 | 866.4 | 1,461.6 | 1,026.7 | ||
Net increase (decrease) in cash and cash equivalents | 87.3 | 61.6 | 72.3 | 21.2 | ||
Cash, cash equivalents, and restricted cash at beginning of period | 348.3 | 327.9 | 327.9 | |||
Cash, cash equivalents, and restricted cash at end of period | 435.6 | 389.5 | 327.9 | 348.3 | ||
Supplemental disclosures of cash flow information | ||||||
Income taxes | (4.5) | 28.2 | ||||
Non-cash transactions during the period: | ||||||
Fixed maturities exchanges | 251.8 | 350.5 | 309.1 | 649.2 | ||
Limited partnership investments liability | 2.2 | 36.4 | ||||
Dividends paid on common stock | 0 | (20.9) | ||||
Cash, cash equivalents, and restricted cash reconciliation | ||||||
Cash and cash equivalents | $ 254 | |||||
Total cash, cash equivalents, and restricted cash | $ 348.3 | $ 327.9 | $ 327.9 | $ 327.9 | ||
Predecessor Company | ||||||
Cash flows from operating activities | ||||||
Net income (loss) | (3.9) | $ 178.4 | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||
Net realized (gains) losses | 26.9 | 93.1 | ||||
Accretion and amortization of invested assets, net | 8.3 | 98.1 | ||||
Amortization of intangible assets | 0.2 | 2.8 | ||||
Other amortization, accretion and depreciation | 1.3 | 18.1 | ||||
Deferred income tax provision (benefit) | 15.3 | (46.1) | ||||
Interest credited on deposit contracts | 84.9 | 973.6 | ||||
Mortality and expense charges and administrative fees | (13.6) | (162.1) | ||||
Other changes in: | ||||||
DAC and VOBA | (11) | (157.6) | ||||
Future policy benefits | (2.7) | 16.9 | ||||
Other policyholder reserves | 3.6 | 24.6 | ||||
Policy and contract claims | (6.1) | 8.5 | ||||
Other assets and liabilities | (47.9) | (14) | ||||
Other, net | (8.4) | (11) | ||||
Total adjustments | 50.8 | 844.9 | ||||
Net cash provided by (used in) operating activities | 46.9 | 1,023.3 | ||||
Purchases of: | ||||||
Fixed maturities and marketable equity securities | (448.7) | (6,781) | ||||
Derivatives and other investments | (5.6) | (149.1) | ||||
Issuances of mortgage loans | (45.4) | (1,016.2) | ||||
Sales of fixed maturities and marketable equity securities | 202.6 | 2,521.2 | ||||
Maturities, calls, paydowns, and other repayments | 129.8 | 1,874.2 | ||||
Cash received for sales/settlements of derivatives and other investments | 20.3 | 59.8 | ||||
Repayments of mortgage loans | 33.9 | 368.7 | ||||
Cash received (pledged or returned) as collateral, net | (19.7) | 52.7 | ||||
Other, net | 0.6 | 2.9 | ||||
Net cash provided by (used in) investing activities | (132.2) | (3,066.8) | ||||
Policyholder account balances: | ||||||
Deposits | 365.4 | 4,335.2 | ||||
Withdrawals | (169.1) | (2,155.4) | ||||
Cash dividends paid on common stock | 0 | (140) | ||||
Other, net | (1.2) | 1.4 | ||||
Net cash provided by (used in) financing activities | 195.1 | 2,041.2 | ||||
Net increase (decrease) in cash and cash equivalents | 109.8 | (2.3) | ||||
Supplemental disclosures of cash flow information | ||||||
Income taxes | 0 | 25 | ||||
Non-cash transactions during the period: | ||||||
Fixed maturities exchanges | 11.1 | 143.7 | ||||
Limited partnership investments liability | 0 | 1.6 | ||||
Dividends paid on common stock | 0 | 0 | ||||
Cash, cash equivalents, and restricted cash reconciliation | ||||||
Cash and cash equivalents | $ 254 | $ 144.2 |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | 1. Description of Business The accompanying financial statements include, on a consolidated basis, the accounts of Symetra Life Insurance Company (Symetra Life) and its three wholly-owned subsidiaries, Symetra National Life Insurance Company, First Symetra National Life Insurance Company of New York, and Symetra Reinsurance Corporation, collectively referred to as "Symetra" or "the Company." Symetra Life is a stock life insurance company and a wholly-owned subsidiary of Symetra Financial Corporation, a Delaware corporation, referred to as "the Parent." Symetra offers products and services that serve the retirement, employment-based benefits and life insurance markets. These products and services are marketed through financial institutions, broker-dealers, benefits consultants, and independent agents and advisors in all 50 states and the District of Columbia. The Company's principal products include fixed and fixed indexed deferred annuities, single premium immediate annuities (SPIA), medical stop-loss insurance, group life and disability income (DI) insurance, group fixed-payment insurance, individual life insurance, and institutional life insurance including bank-owned life insurance (BOLI) and variable corporate owned life insurance (COLI). The Company also services its blocks of structured settlement and variable annuities. Sumitomo Life Merger On February 1, 2016 (the Merger Date), the Parent became a wholly-owned subsidiary of Sumitomo Life Insurance Company (Sumitomo Life), which event is referred to as the Merger. The aggregate cash consideration paid in connection with the Merger for all of the Parent's outstanding shares of common stock was $3.7 billion . The Merger was accounted for under the acquisition method of accounting (purchase accounting, or PGAAP). As of the Merger Date, the Company applied "pushdown" accounting by applying the guidance allowed by Accounting Standards Codification (ASC) 805, Business Combinations. This included the initial recognition of most of the Company's assets and liabilities at fair value as of the acquisition date, and the recognition of goodwill calculated based on the terms of the transaction and the new basis of net assets of the Company. As part of the application of this standard, certain balances were reset to zero. Accounting records and financial statements and related disclosures for periods following the Merger use this new basis of accounting. Prior period data has not been restated. These financial statements include information as of December 31, 2017 and December 31, 2016 , for the year ended December 31, 2017 , and for the period February 1 to December 31, 2016 that relates to the Successor Company, following completion of the Merger. Information for the period January 1 to January 31, 2016 and for the year ended December 31, 2015 relates to the Predecessor Company. Amounts are generally not comparable between the Successor Company and Predecessor Company due to the application of purchase accounting. 1. Description of Business The accompanying financial statements include, on a consolidated basis, the accounts of Symetra Life Insurance Company (Symetra Life) and its three wholly-owned subsidiaries, Symetra National Life Insurance Company, First Symetra National Life Insurance Company of New York, and Symetra Reinsurance Corporation, collectively referred to as "Symetra" or "the Company." Symetra Life is a stock life insurance company and a wholly-owned subsidiary of Symetra Financial Corporation, a Delaware corporation, referred to as "the Parent." Symetra offers products and services that serve the retirement, employment-based benefits and life insurance markets. These products and services are marketed through financial institutions, broker-dealers, benefits consultants, and independent agents and advisors in all 50 states and the District of Columbia. The Company's principal products include fixed and fixed indexed deferred annuities, single premium immediate annuities (SPIA), medical stop-loss insurance, group life and disability income (DI) insurance, group fixed-payment insurance, individual life insurance, and institutional life insurance including bank-owned life insurance (BOLI) and variable corporate owned life insurance (COLI). The Company also services its blocks of structured settlement and variable annuities. In 2016, the Parent became a wholly-owned subsidiary of Sumitomo Life Insurance Company, an event which is referred to as the Merger. The Merger was accounted for under the acquisition method of accounting (purchase accounting, or PGAAP). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation and Use of Estimates The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP). All significant intercompany transactions and balances between Symetra Life and its subsidiaries have been eliminated. Certain reclassifications have been made to prior year financial information to conform to the current period presentation. The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The most significant estimates include those used to determine the following: valuation of investments carried at fair value; the balance, recoverability and amortization of deferred policy acquisition costs (DAC) and value of business acquired (VOBA); the liabilities for funds held under deposit contracts, future policy benefits, and policy and contract claims; recoverability of goodwill and intangible assets; and valuation of assets and liabilities under PGAAP. The recorded amounts reflect management’s best estimates, though actual results could differ from those estimates. Recognition of Insurance Revenue and Related Benefits The Company’s group insurance policies, which include medical stop-loss, group fixed-benefit insurance, and group life and DI, are short-duration contracts. Group life and DI business includes group life insurance and short- and long-term disability products. Premiums from these products are recognized as revenue when earned over the life of the policy. Policyholder claims are charged to operations as incurred. Traditional individual life insurance products, including term and whole life insurance products, are long-duration contracts, and the associated premiums and benefits are fixed. Premiums from these products are considered earned and recognized as revenue when due. Reserves are associated with earned premiums such that profits are recognized over the life of the contracts. Deposits related to universal life (UL) insurance products and investment-type products are credited to policyholder account balances and reflected as liabilities when received, rather than as premium income. Investment-type products include fixed deferred annuities, SPIAs, and structured settlements. Revenues from UL insurance and investment-type products consist of net investment income on the policyholders’ fund balances, and amounts assessed for cost of insurance, policy administration, and surrender charges. These assessments are recorded in policy fees, contract charges, and other in the consolidated statements of income (loss). Expenses charged to operations for these products include interest credited and claims in excess of related policyholder account balances. These amounts are expensed as incurred. Revenue from variable annuities, life and COLI products include mortality and expense, policy administration and surrender charges. These fees are charged to policyholders’ accounts based upon the daily net assets of the policyholders’ account values and are recognized as revenue in policy fees, contract charges, and other in the consolidated statements of income (loss) when assessed. Separate Account Assets and Liabilities Separate account balances relate to the Company's variable products. Separate account assets are reported at fair value and represent funds that are invested on behalf of the Company’s variable product policyholders. The assets of each separate account are legally segregated and are not subject to claims that arise out of the Company’s other business activities. Investment risks associated with market value changes are borne by the policyholder, except to the extent of death benefits guaranteed by the Company with respect to certain accounts. Net investment income and realized gains and losses accrue directly to the policyholders and are not included in the Company’s revenues. Separate account liabilities represent the policyholders' account balances in the separate account. For variable annuity contracts with guaranteed minimum death benefits (GMDB), the Company contractually guarantees death benefits that may exceed the policyholder's account balance. The Company reinsures nearly all of the GMDB risk on its variable annuity contracts. Funds Held Under Deposit Contracts Funds held under deposit contracts includes liabilities for fixed deferred annuity contracts, fixed indexed annuities (FIA), SPIAs, structured settlement annuities, and universal life policies, including BOLI. For the Successor Company, these liabilities also include PGAAP-related adjustments discussed below. Liabilities for fixed deferred annuity contracts, and the fixed account portion of FIA and universal life policies are equal to account value, plus additional liabilities for policy benefits accrued but not yet earned, credited, or redeemed. Account value represents the amount available in cash to the policyholder, without regard to any surrender fees. This is computed as deposits net of withdrawals made by the policyholder, plus amounts credited based on contract specifications, less contract fees and charges assessed, plus any additional interest. Policy benefits accrued but not yet earned, credited, or redeemed relate to bonus interest, excess death benefits, and other policy benefits that can be attributed to a specific policy or group of policies. The liability for the indexed account portion of FIA represents the present value of future estimated guaranteed benefits, as well as an embedded derivative related to expected index credits on these policies. The embedded derivative is recorded at fair value. See Note 6 for further discussion. For SPIAs and structured settlements, liabilities are based on discounted amounts of estimated future benefits. Future benefits are either fully guaranteed or are contingent on the survivorship of the annuitant. For policies issued subsequent to the Merger, contingent future benefits are discounted with pricing mortality assumptions, which include provisions for longer life spans over time. The interest rate pattern used to calculate the reserves for these policies is set at issue, and interest rates for the pattern vary over time. For the Successor Company, assumptions were reset for policies as of the date of the Merger, as discussed below. As of December 31, 2017, the weighted-average implied interest rate on the business was 4.03% and grades to 5.63% during the next 40 years. Impact of Purchase Accounting In conjunction with the Merger, liabilities for in-force business were recorded at fair value and the underlying contracts were considered to be new contracts for measurement and reporting purposes as of the Merger Date. Estimating the fair value of these liabilities required the use of current assumptions relative to future investment yields, mortality, persistency, and other assumptions based on the Company’s historical experience, modified as necessary to reflect anticipated trends. The Company’s assumptions and estimates required significant judgment and, therefore, are inherently uncertain. The Company cannot determine with precision the ultimate amounts that it will pay to its contract holders or the timing of those payments. At the Merger Date, the Company updated the assumptions described above to reflect current best estimates. Either a VOBA asset or an additional insurance liability was recorded to reflect the difference between the fair value of the liability and the amounts previously established. An additional insurance liability was established for the Company's lines of business related to structured settlement, SPIA, and certain BOLI policies. The liability is reported in funds held under deposit contracts and amortized over the policy period in proportion to the approximate consumption of losses. Amortization is recorded as a reduction of interest credited. Future Policy Benefits The Company estimates liabilities for future policy benefits for its traditional individual life policies as the present value of expected future policy benefits less future net premiums. The Company selects the net premiums so that the actuarial present value of future benefits equals the actuarial present value of future premiums. The Company sets the interest, mortality, and persistency assumptions in the year of issue and includes a provision for adverse deviation. The provision for adverse deviation is intended to provide coverage for the risk that actual experience may be worse than locked-in best-estimate assumptions. The Company derives mortality assumptions from both company-specific and industry statistics. Future benefits are discounted at interest rates that vary by year of policy issue. These rates are initially set to be consistent with investment rates at the time of issue, and are graded to a lower rate over time. Assumptions are set at the time each product is introduced and are not updated for actual experience unless the total product liability amount is determined to be inadequate to cover future policy benefits. The Company estimates liabilities for future policy benefits for group long-term disability policies as the present value of future benefit payments, net of terminations and reinsurance recoverables, and discounted at interest rates based on investment rates at the time of disability. Liabilities for policies in-force as of the Merger Date were set to fair value, using assumptions that reflected current best estimates as of the Merger Date. Policy Loans Policy loans are carried at unpaid principal balances. Policy loans are not granted for amounts in excess of the accumulated cash surrender value of the policy or contract. Investments in Limited Partnerships The Company invests in limited partnerships where the primary return on investment is in the form of income tax credits and the tax benefit on the pass-through of partnership activity. These partnerships (collectively referred to as "tax credit investments") are established to invest in low-income housing and other qualifying purposes. Refer to Note 4 for further discussion. Variable Interest Entities The Company performs an ongoing qualitative assessment of its involvement with variable interest entities (VIEs). A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support, or where investors lack certain characteristics of a controlling financial interest. The Company assesses its contractual, ownership or other interests in a VIE to determine whether it has a variable interest in the entity, and if so, to determine whether the Company has a controlling financial interest and would therefore be considered the primary beneficiary of the VIE. If it is determined the Company is the primary beneficiary of a VIE, the Company includes the assets and liabilities of the VIE in the consolidated financial statements. The limited partnerships that the Company invests in meet the definition of a VIE. Because the Company, as a limited partner, lacks the ability to direct the activities of any of these partnerships, it is not considered the primary beneficiary and therefore has not consolidated them. The maximum exposure to loss in these VIEs was $176.3 and $215.3 as of December 31, 2017 and 2016, respectively. The maximum exposure to loss includes commitments to provide future capital contributions. In the normal course of business, the Company also makes passive investments in structured securities issued by VIEs. These structured securities primarily include residential and commercial mortgage-backed securities and collateralized loan obligations. Because the Company lacks the ability to direct the activities that most significantly impact the economic performance of the VIEs, it is not considered the primary beneficiary and therefore does not consolidate them. The Company’s maximum exposure to loss with respect to these investments is limited to the amortized cost of the Company’s investment, which was $5,053.9 and $5,155.2 as of December 31, 2017 and 2016, respectively. Subsequent Events The Company has evaluated the effects of events subsequent to December 31, 2017, and the accounting and disclosure requirements related to subsequent events are included in the consolidated financial statements. Management has assessed material subsequent events through March 26, 2018, the date the financial statements were available to be issued. Disclosures about subsequent events are included in the relevant note. Other Significant Accounting Policies The following table includes significant accounting policies that are described in other notes to the financial statements, including the number of the note. Significant Accounting Policy Note # Other Intangible Assets 3 Goodwill 3 Investments 4 Mortgage Loans 5 Derivative Financial Instruments 6 Fair Value of Financial Instruments 7 Deferred Policy Acquisition Costs (DAC) 8 Value of Business Acquired (VOBA) 8 Commitments and Contingencies 10 Segment Information 11 Reinsurance 12 Liability for Unpaid Claims 13 Income Taxes 14 Accounting Pronouncements Standard Description Required date of adoption Effect on the financial statements or other significant matters Accounting Pronouncements Newly Adopted Update No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income This standard permits entities to reclassify the residual tax effects arising from the change in enacted tax rate from the Tax Cuts and Jobs Act of 2017 (the "2017 Tax Act"). Under the standard, the tax effects stranded in accumulated other comprehensive income may be reclassified to retained earnings. January 1, 2019 The Company early adopted this guidance using a retrospective approach, and elected to reclassify tax effects stranded in accumulated other comprehensive income (AOCI) to retained earnings for its December 31, 2017 Financial Statements. See the Statement of Stockholder's Equity and Note 9 for the impact of adoption. Standard Description Required date of adoption Effect on the financial statements or other significant matters Accounting Pronouncements Not Yet Adopted Update No. 2016-01, Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities This standard amends recognition and disclosure requirements primarily for equity investments carried at fair value. Under the standard, changes in fair value will be recorded in income. In addition, the requirement to disclose the fair value of financial instruments held at amortized cost has been eliminated for nonpublic companies. January 1, 2018 The Company adopted the standard using a modified retrospective approach. Update No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities This standard amends the recognition and measurement of hedging instruments to better represent an entity's risk management activities. Under the standard, the requirement to separately measure and report hedge ineffectiveness is eliminated. In addition, the standard provides relief from certain initial documentation requirements and replaces the requirement for quarterly quantitative ineffectiveness testing with a qualitative approach. January 1, 2019 The Company is in the early stages of evaluating the potential impact of the standard on its financial statements. The Company holds derivative instruments that will be impacted by the standard (See Note 6 for details regarding these holdings). Upon adoption, the Company will apply the standard using a modified retrospective approach. The Company is considering whether to early adopt. Update No. 2016-02, Leases (Topic 842) This standard amends the recognition requirements for all leases with a term greater than 12 months and provides new guidelines for the identification of a lease within a contract. Under the standard, companies must measure and recognize a liability to make lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term. In addition, the standard requires expanded quantitative and qualitative disclosures. January 1, 2019 The Company is in the early stages of evaluating the potential impact of the standard on its financial statements. The majority of the Company's leases are currently accounted for as operating leases. Upon adoption, the Company will apply the standard using a modified retrospective approach and apply the requirements to all existing leases. Update No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities This standard amends the guidance for amortization of premiums on purchased callable debt securities. Under the standard, premiums on these securities will be amortized to the earliest call date, rather than final maturity of the security. The guidance applies only to bonds for which the call date and price is fixed. Further, the amortization period for debt securities carried at a discount will not be impacted. January 1, 2019 The Company is in the early stages of evaluating the potential impact of the standard on its financial statements. Upon adoption, the Company will apply the standard using a modified retrospective approach. Accounting Pronouncements Not Yet Adopted (cont.) Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326) This standard amends the credit loss measurement guidance for available-for-sale securities. Credit losses will be recognized in a credit allowance account rather than as reductions in the amortized cost of the securities. Further, entities are no longer allowed to consider length of time a security has been underwater as a factor when evaluating credit losses. This standard also amends existing guidance on the impairment of certain financial instruments by adding an impairment model that reflects expected credit losses. This requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. January 1, 2020 The Company is in the early stages of evaluating the potential impact of the standard on its financial statements. Upon adoption, the Company will apply the standard using a modified retrospective approach. Update No. 2017-04, Intangibles - Goodwill and Other (Topic 350) This standard removes the requirement to calculate the implied fair value of goodwill (Step 2 of the goodwill impairment test) to measure a goodwill impairment charge. A goodwill impairment charge will now be measured as the amount by which a reporting unit's carrying value exceeds its fair value determined in Step 1 of the goodwill impairment test. This impairment test will be applied to goodwill assigned to all reporting units, even those with zero or negative carrying amounts. Entities will be required to disclose the amount of goodwill assigned to reporting units with zero or negative carrying amounts. January 1, 2020 The Company is monitoring the potential impact of the standard on its annual goodwill impairment assessment. Upon adoption, the Company will apply the standard prospectively. 2. Summary of Significant Accounting Policies The interim condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP). The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that may affect the amounts reported in the interim condensed consolidated financial statements and accompanying notes. These interim condensed consolidated financial statements are unaudited and in management's opinion include all adjustments, consisting of normal recurring adjustments and accruals, necessary for a fair presentation. All significant intercompany transactions and balances have been eliminated. Certain reclassifications have been made to prior year financial information to conform to the current period presentation. Management has assessed subsequent events through October 31, 2018, the date the financial statements were issued. Subsequent events requiring disclosure are included in Notes 2 and 11. The interim condensed consolidated financial statements should be read in conjunction with the December 31, 2017 audited consolidated financial statements. Financial results for the six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the twelve months ended December 31, 2018. A full description of the Company's significant accounting policies is included in the December 31, 2017 audited consolidated financial statements. Reinsurance Transaction In September 2018, the Company, entered into a 100% modified coinsurance reinsurance agreement with Resolution Re Ltd. for $6.8 billion of its in-force block of income annuities. Income annuity policies issued after September 30, 2017 are not included in this agreement. The transaction reduces the Company's exposure to long-term interest rate risk associated with the long-tail nature of the reinsured business. The reinsured business is primarily comprised of structured settlement annuities that the Company discontinued selling in 2012. Under terms of the agreement, the Company will continue to service the reinsured business and hold the associated invested assets and policyholder liabilities on its balance sheets. However, Resolution Re Ltd. will be responsible for asset management, subject to investment management guidelines. The Company will continue to sell retail SPIAs as part of its retirement product offerings. Income Taxes The Company had a negative effective tax rate for the six months ended June 30, 2018 and 2017. The Company's effective tax rate differs from the U.S. federal income tax rate each year, primarily due to benefits from the Company's tax credit investments relative to the forecasted income from operations for the full fiscal year On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the "2017 Tax Act") was signed into law. The effects of the 2017 Tax Act were reasonably estimated and recorded as a provisional amount for the year ended December 31, 2017. As analysis of the 2017 Tax Act is completed, and any additional guidance is issued and interpreted, there may be adjustments to this provisional amount, which will be recorded in the provision for income taxes in the period made. There were no significant adjustments to the provisional amount recorded during the six months ended June 30, 2018. Accounting Pronouncements Newly Adopted ASU No. 2016-01, Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities. This accounting standards update (ASU) amends recognition and disclosure requirements primarily for equity investments carried at fair value. Under the standard, changes in fair value are recorded in income. The Company adopted the standard on January 1, 2018 using a modified retrospective approach. The Company held equity investments previously classified as available-for-sale securities that were impacted by the standard. Upon adoption, $114.3 of net unrealized gains, net of taxes of $30.4 , related to these securities were reclassified from accumulated other comprehensive income (loss) (AOCI) to retained earnings. Subsequent to adoption, changes in fair value of these securities are recorded through net realized gains (losses) in the consolidated statements of income (loss). As a result, the Company expects increased volatility in net income. Accounting Pronouncements Not Yet Adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This standard amends the recognition and measurement of hedging instruments to better represent an entity's risk management activities. Under the standard, the requirement to separately measure and report hedge ineffectiveness is eliminated. In addition, the standard provides relief from certain initial documentation requirements and replaces the requirement for quarterly quantitative ineffectiveness testing with a qualitative approach. The update is effective beginning January 1, 2019. The Company is evaluating the potential impact of the standard on its financial statements. The Company holds derivative instruments that will be impacted by the standard (See Note 6 for details regarding these holdings). Upon adoption, the Company will apply the standard using a modified retrospective approach. ASU No. 2016-02, Leases (Topic 842): This standard amends the recognition requirements for all leases with a term greater than 12 months and provides new guidelines for the identification of a lease within a contract. Under the standard, companies must measure and recognize a liability for future lease payments and a right-of-use asset for the right to use the underlying asset for the lease term. Entities may elect a simplified transition option, under which they recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption rather than in the earliest period presented. In addition, the standard requires expanded quantitative and qualitative disclosures. The update is effective beginning January 1, 2019. The Company has compiled an inventory of all its leases and is currently assessing the impact of the standard and updating internal processes to ensure compliance with the revised guidance. The majority of the Company's leases are currently accounted for as operating leases. The Company does not anticipate that this standard will impact its expense recognition pattern. Upon adoption, the Company will apply the standard using a modified retrospective approach and apply the requirements to all existing leases using the simplified transition option. ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. This standard amends the guidance for amortization of premiums on purchased callable debt securities. Under the standard, premiums on these securities will be amortized to the earliest call date, rather than final maturity of the security. The guidance applies only to bonds for which the call date and price are fixed. The amortization period for debt securities carried at a discount will not be impacted. The update is effective beginning January 1, 2019. The Company is evaluating the potential impact of the standard on its financial statements. Upon adoption, the Company will apply the standard using a modified retrospective approach. ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): This standard amends the credit loss measurement guidance for available-for-sale securities. Credit losses will be recognized in a credit allowance account rather than as reductions in the amortized cost of the securities. Entities will no longer be allowed to consider length of time a security has been underwater as a factor when evaluating credit losses. This standard further amends existing guidance on the impairment of certain financial instruments by adding an impairment model that reflects expected credit losses. This requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The update is effective beginning January 1, 2020. The Company is in the early stages of evaluating the potential impact of the standard on its financial statements, with a focus on fixed maturity securities, mortgage loans, and reinsurance recoverables. Upon adoption, the Company will apply the standard using a modified retrospective approach. ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350). This standard removes the requirement to calculate the implied fair value of goodwill (Step 2 of the goodwill impairment test) to measure a goodwill impairment charge. A goodwill impairment charge will now be measured as the amount by which a reporting unit's carrying value exceeds its fair value determined in Step 1 of the goodwill impairment test. This impairment test will be applied to goodwill assigned to all reporting units, even those with zero or negative carrying amounts. The update is effective beginning January 1, 2020. The Company is monitoring the potential impact of the standard on its annual goodwill impairment assessment. Upon adoption, the Company will apply the standard prospectively. ASU No. 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts . This standard amends the guidance for long-duration contracts. Entities will be required to measure the liability for future policy benefits by reviewing and updating assumptions used to measure cash flows at least annually and recognize any change in net income. The discount rate assumption must be based on observable market inputs and updated at each reporting period, with any resulting change recognized in other comprehensive income. A fair value model will be required to measure the market risk benefits. Finally, for contracts within the scope of this guidance, deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins will be required to be amortized on a constant level basis over the expected term of the related contracts. The standard also amends disclosure requirements to include disaggregated rollforwards of the related liabilities and information about significant assumptions used. The update is effective beginning January 1, 2021. This ASU was recently released and the Company is in the early stages of assessing the impact on its annuity and life insurance contracts. ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This standard amends the disclosure requirements for fair value measurements. Under the standard, there are new disclosure requirements for Level 3 fair value measurements as well as the elimination of certain current disclosure requirements. The update is effective beginning January 1, 2020. This ASU was recently released and the Company is in the early stages of assessing the impact on its financial statements. |
Sumitomo Life Merger
Sumitomo Life Merger | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Sumitomo Life Merger | 3. Sumitomo Life Merger On the Merger Date, the Parent became a wholly-owned subsidiary of Sumitomo Life Insurance Company. Refer to Note 1 for further details on this transaction. The following table summarizes the fair value of the Company's assets acquired and liabilities assumed at the Merger Date: Fair Value Assets Fixed maturities $ 26,638.8 Marketable equity securities 627.5 Mortgage loans 5,077.0 Policy loans 58.3 Investments in limited partnerships 238.7 Derivatives 149.7 Total investments 32,790.0 Cash and cash equivalents 254.0 Accrued investment income 326.6 Reinsurance recoverables 321.5 VOBA 457.6 Receivables and other assets 217.0 Other intangible assets 1,416.8 Goodwill 563.0 Separate account assets 858.2 Total assets $ 37,204.7 Liabilities Funds held under deposit contracts $ 31,047.4 Future policy benefits 459.3 Policy and contract claims 144.2 Other policyholders' funds 150.7 Deferred income tax liabilities, net 260.8 Other liabilities 338.0 Separate account liabilities 858.2 Total liabilities 33,258.6 Net assets acquired $ 3,946.1 Other Intangible Assets In conjunction with the Merger, the Company recognized certain specifically identifiable intangible assets. Intangible assets with finite lives are amortized on a straight-line basis over the estimated useful life of the assets. Amortizable intangible assets consist of value of distribution acquired (VODA), value of customer relationships acquired (VOCRA), trade names and technology. VODA represents the present value of expected future profits associated with the expected future business derived from distribution relationships in existence as of the Merger Date. VOCRA represents the present value of the expected future profits associated with the Company's group insurance business in-force in the Benefits segment as of the Merger Date, including the value of renewals associated with this business. Identified intangible assets were valued using the excess earnings method, relief from royalty method or cost approach, as appropriate. Other intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Conditions that would necessitate an impairment assessment include a significant change in the extent or manner in which an asset is used or any other significant adverse change that would indicate that the carrying amount of an asset or group of assets may not be recoverable. Impairment is only recorded if the asset’s carrying amount is not recoverable through its undiscounted future cash flows. If an impairment exists, the amount is measured as the difference between the carrying amount and fair value. Identified intangible assets recognized by the Company included the following: Estimated Fair Value on Merger Date Weighted Average Estimated Useful Life VODA $ 782.0 35 years VOCRA 361.8 10 years Trade names 190.0 17 years Technology 72.0 5 years Total intangible assets subject to amortization 1,405.8 24.3 years Insurance licenses 11.0 Indefinite Total intangible assets $ 1,416.8 The following table sets forth the gross carrying amounts and accumulated amortization for identified intangible assets as of December 31, 2017 and 2016: As of December 31, 2017 As of December 31, 2016 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization VODA $ 782.0 $ (43.5 ) $ 782.0 $ (20.8 ) VOCRA 361.8 (69.4 ) 361.8 (33.1 ) Trade names 190.0 (21.4 ) 190.0 (10.3 ) Technology 72.0 (27.6 ) 72.0 (13.2 ) Total intangible assets subject to amortization 1,405.8 (161.9 ) 1,405.8 (77.4 ) Insurance licenses 11.0 — 11.0 — Total intangible assets $ 1,416.8 $ (161.9 ) $ 1,416.8 $ (77.4 ) The following table sets forth the estimated future aggregate amortization expense for the next 5 years: Year Amount 2018 $ 84.5 2019 84.5 2020 84.5 2021 70.9 2022 69.6 Goodwill Goodwill was determined based on the terms of the transaction and the fair value of the net assets of the Company under the new basis of accounting. It represents the acquisition price in excess of the fair value of net assets acquired in the Merger, including identifiable intangible assets, and reflects the Company’s future growth potential, assembled workforce and other sources of value not associated with identifiable assets. The Company's goodwill balance was assigned to its reporting units, which are the same as the Company's reportable business segments (Benefits, Deferred Annuities, Income Annuities and Individual Life). The goodwill recognized is not deductible for tax purposes. The Company reviews goodwill for impairment at least annually, as of July 1, or more frequently if there are indicators of impairment, with consideration given to financial performance and estimates of the future profitability of the associated lines of business. When evaluating whether goodwill is impaired, the Company generally first determines through qualitative analysis whether relevant events and circumstances indicate that it is more likely than not that goodwill balances are impaired. If it is determined that it is more likely than not that an impairment exists, the Company compares its estimate of the fair value of the reporting unit to which the goodwill is assigned to the reporting unit's carrying amount, including goodwill. If the fair value is lower than the carrying amount, the Company determines the implied fair value of goodwill and records an impairment equal to the excess of the existing goodwill balance over the implied fair value. During the third quarter of 2017, the Company performed its annual impairment assessment of goodwill and determined that goodwill was not impaired. Value of Business Acquired (VOBA) As a result of the Merger, the Company's DAC balance was reset to zero, and a balance for VOBA was established. Refer to Note 8 for more detailed discussion. Treatment of Outstanding Employee Awards At or immediately prior to the effective time of the Merger, unvested and outstanding awards granted under the Symetra Financial Corporation Equity Plan, in which the Company's employees participated, were canceled and converted into a right to receive amounts in cash, without interest. This included stock options, restricted stock, and performance unit awards. Upon completion of the Merger, $16.7 was recorded as an expense of the Successor Company related to these awards. |
Other Intangible Assets
Other Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | 3. Other Intangible Assets Intangible assets with finite lives are amortized on a straight-line basis over the estimated useful life of the assets. Amortizing intangible assets consist of value of distribution acquired (VODA), value of customer relationships acquired (VOCRA), trade names, and technology. Identified intangible assets recognized by the Company included the following: As of June 30, 2018 As of December 31, 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization VODA $ 782.0 $ (54.9 ) $ 782.0 $ (43.5 ) VOCRA 361.8 (87.3 ) 361.8 (69.4 ) Trade names 190.0 (27.0 ) 190.0 (21.4 ) Technology 72.0 (34.8 ) 72.0 (27.6 ) Total intangible assets subject to amortization 1,405.8 (204.0 ) 1,405.8 (161.9 ) Insurance licenses 11.0 — 11.0 — Total intangible assets $ 1,416.8 $ (204.0 ) $ 1,416.8 $ (161.9 ) The following table sets forth the estimated future aggregate amortization expense for the next 5 years: Year Amount 2018 (remaining) $ 42.3 2019 84.5 2020 84.5 2021 70.9 2022 69.6 |
Investments
Investments | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 4. Investments The Company's investment portfolio consists in large part of fixed maturities and commercial mortgage loans, as well as a smaller allocation of marketable equity securities, investments in limited partnerships, and derivatives. As of December 31, 2017, the Company had no investments in related parties. Available-for-Sale Securities The Company classifies its investments in fixed maturities as available-for-sale and carries them at fair value. Fixed maturities primarily include bonds, mortgage-backed securities, collateralized loan obligations and redeemable preferred stock. See Note 7 for information on the valuation of these securities and additional disclosures regarding fair value measurements. In addition, as of the Merger Date, the Company classified all of its investments in marketable equity securities as available-for-sale. Equity investments primarily consist of common stock and exchange-traded funds (ETFs) in support of long-duration insurance products in the Income Annuities segment. Prior to the Merger, a portion was classified as trading. The Company reports net unrealized gains (losses) related to its available-for-sale securities in AOCI in stockholder’s equity, net of related DAC and VOBA adjustments and deferred income taxes. The cost of securities sold is determined using the specific-identification method. The Company reports interest and dividends earned, including prepayment fees or interest-related make whole payments, in net investment income. Prepayments of fixed maturities and commercial mortgage loans result in accelerated amortization or accretion of the premium or discount associated with the investment, which is recorded in realized gains and losses. Interest income for fixed maturities is recognized using the effective yield method. For mortgage-backed securities, the Company recognizes income using a constant effective yield based on anticipated prepayments and the estimated economic life of the securities. Quarterly, the Company compares actual prepayments to anticipated prepayments and recalculates the effective yield to reflect actual payments plus anticipated future payments. The Company includes any resulting adjustment in net investment income in the current period. When the collectibility of interest income for fixed maturities is considered doubtful, any accrued but uncollectible interest is deducted from investment income in the current period. The Company then places the securities on nonaccrual status, and they are not restored to accrual status until all delinquent interest and principal are paid. The following tables summarize the Company's available-for-sale fixed maturities and marketable equity securities. As of the Merger Date, the book value of the Company’s fixed maturity and marketable equity securities was increased to fair value, which resulted in the elimination of previously recorded unrealized gains and losses from AOCI and an overall net premium balance included in the new cost basis. As of December 31, 2017 Cost or Gross Gross Fair Value Fixed maturities: U.S. government and agencies $ 426.9 $ 0.2 $ (4.9 ) $ 422.2 State and political subdivisions 794.3 5.0 (6.9 ) 792.4 Corporate securities 23,223.8 768.9 (60.5 ) 23,932.2 Residential mortgage-backed securities 2,516.0 6.6 (49.8 ) 2,472.8 Commercial mortgage-backed securities 795.0 3.8 (3.1 ) 795.7 Collateralized loan obligations 1,128.1 18.5 — 1,146.6 Other debt obligations 715.1 9.8 (5.5 ) 719.4 Total fixed maturities 29,599.2 812.8 (130.7 ) 30,281.3 Marketable equity securities 611.4 150.7 (6.4 ) 755.7 Total $ 30,210.6 $ 963.5 $ (137.1 ) $ 31,037.0 As of December 31, 2016 Cost or Gross Gross Fair Value Fixed maturities: U.S. government and agencies $ 397.3 $ 0.4 $ (5.6 ) $ 392.1 State and political subdivisions 943.0 1.3 (13.5 ) 930.8 Corporate securities 21,497.2 423.5 (151.7 ) 21,769.0 Residential mortgage-backed securities 2,633.1 3.7 (52.2 ) 2,584.6 Commercial mortgage-backed securities 920.5 2.7 (6.4 ) 916.8 Collateralized loan obligations 1,198.7 18.7 (3.8 ) 1,213.6 Other debt obligations 507.7 4.2 (6.8 ) 505.1 Total fixed maturities 28,097.5 454.5 (240.0 ) 28,312.0 Marketable equity securities 642.7 81.9 (7.2 ) 717.4 Total $ 28,740.2 $ 536.4 $ (247.2 ) $ 29,029.4 The Company maintains a diversified portfolio of corporate fixed maturity securities across industries. The following table presents the composition of the Company's corporate securities portfolio by sector: As of December 31, 2017 As of December 31, 2016 Fair Value % of Total Fair Value % of Total Industrial $ 4,446.7 18.6 % $ 4,020.8 18.5 % Consumer discretionary 3,379.9 14.1 2,994.9 13.8 Utilities 3,088.8 12.9 2,466.4 11.3 Financial 2,826.1 11.8 2,281.5 10.5 Consumer staples 2,704.0 11.3 2,785.5 12.8 Health care 2,635.5 11.0 2,832.6 13.0 Other 4,851.2 20.3 4,387.3 20.1 Total $ 23,932.2 100.0 % $ 21,769.0 100.0 % As of December 31, 2017, the Company's corporate fixed maturities included public utilities and redeemable preferred stock with fair values of $3,088.8 and $69.5 , respectively, and amortized costs of $2,981.4 and $66.1 , respectively. Additionally, the Company had fixed maturity investments in foreign governments with fair value of $101.4 and amortized cost of $100.3 , which are classified as other debt obligations. All of these investments are reported on the balance sheet at fair value. The following table provides additional information about equity investments held by the Company as of December 31, 2017: Cost or Amortized Cost Fair Value Amount as shown in Balance Sheet Marketable Equity Securities: Banks, trusts, and insurance companies $ 431.9 $ 550.0 $ 550.0 Industrial, miscellaneous, and all other 146.6 173.1 173.1 Nonredeemable preferred stock 32.9 32.6 32.6 Total marketable equity securities $ 611.4 $ 755.7 $ 755.7 The following tables summarize gross unrealized losses and fair values of the Company's available-for-sale investments. The tables are aggregated by investment category and present separately those securities that have been in a continuous unrealized loss position for less than twelve months and for twelve months or more. As of December 31, 2017 Less Than 12 Months 12 Months or More Fair Value Gross Unrealized Losses # of Securities Fair Value Gross Unrealized Losses # of Securities Fixed maturities: U.S. government and agencies $ 111.2 $ (0.3 ) 4 $ 206.2 $ (4.6 ) 30 State and political subdivisions 311.8 (2.8 ) 48 169.7 (4.1 ) 36 Corporate securities 4,963.8 (34.3 ) 396 1,257.7 (26.2 ) 82 Residential mortgage-backed securities 693.4 (7.7 ) 176 1,509.9 (42.1 ) 351 Commercial mortgage-backed securities 296.5 (1.4 ) 24 60.5 (1.7 ) 19 Collateralized loan obligations 10.0 — 1 — — — Other debt obligations 218.0 (2.5 ) 32 109.3 (3.0 ) 13 Total fixed maturities 6,604.7 (49.0 ) 681 3,313.3 (81.7 ) 531 Marketable equity securities 34.8 (3.3 ) 153 40.7 (3.1 ) 9 Total $ 6,639.5 $ (52.3 ) 834 $ 3,354.0 $ (84.8 ) 540 As of December 31, 2016 Less Than 12 Months 12 Months or More Fair Value Gross Unrealized Losses # of Securities Fair Value Gross Unrealized Losses # of Securities Fixed maturities: U.S. government and agencies $ 273.4 $ (5.6 ) 41 $ — $ — — State and political subdivisions 758.8 (13.5 ) 118 — — — Corporate securities 8,282.2 (151.7 ) 546 — — — Residential mortgage-backed securities 2,358.1 (52.2 ) 467 — — — Commercial mortgage-backed securities 449.6 (6.4 ) 54 — — — Collateralized loan obligations 384.2 (3.8 ) 27 — — — Other debt obligations 388.6 (6.8 ) 48 — — — Total fixed maturities 12,894.9 (240.0 ) 1,301 — — — Marketable equity securities 95.0 (7.2 ) 36 — — — Total $ 12,989.9 $ (247.2 ) 1,337 $ — $ — — Based on National Association of Insurance Commissioners (NAIC) ratings as of December 31, 2017 and 2016 , the Company held below-investment-grade fixed maturities with fair values of $1,111.4 and $1,295.7 , respectively, and amortized costs of $1,029.6 and $1,220.8 , respectively. These holdings amounted to 3.7% and 4.6% of the Company's investments in fixed maturities, at fair value, as of December 31, 2017 and 2016 , respectively. The following table summarizes the amortized costs and fair values of fixed maturities as of December 31, 2017 , by contractual years to maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. Amortized Cost Fair Value One year or less $ 896.0 $ 895.9 Over one year through five years 8,179.0 8,275.6 Over five years through ten years 10,136.9 10,346.4 Over ten years 5,333.4 5,730.3 Total fixed maturities with contractual maturity dates 24,545.3 25,248.2 Residential mortgage-backed securities 2,516.0 2,472.8 Commercial mortgage-backed securities 795.0 795.7 Collateralized loan obligations 1,128.1 1,146.6 Other asset-backed securities 614.8 618.0 Total fixed maturities $ 29,599.2 $ 30,281.3 The following table summarizes the Company's net investment income: Successor Predecessor For the Year Ended February 1 to January 1 to For the Year Ended Fixed maturities $ 1,055.8 $ 915.3 $ 95.5 $ 1,151.3 Marketable equity securities 17.9 19.4 0.3 18.1 Mortgage loans 239.9 195.1 21.3 247.6 Other (1) 9.9 7.1 (4.1 ) (40.2 ) Total investment income 1,323.5 1,136.9 113.0 1,376.8 Investment expenses (39.4 ) (35.6 ) (3.3 ) (37.4 ) Net investment income $ 1,284.1 $ 1,101.3 $ 109.7 $ 1,339.4 ____________________ (1) Predecessor Company income included net pass through activity from tax credit investments. The following table summarizes the Company's net realized gains (losses): Successor Predecessor For the Year Ended February 1 to January 1 to For the Year Ended Fixed maturities: Gross gains on sales $ 23.1 $ 20.7 $ 2.4 $ 13.2 Gross losses on sales (10.4 ) (24.3 ) (1.2 ) (22.2 ) Net impairment losses (6.4 ) (10.7 ) (3.8 ) (38.6 ) Marketable equity securities, available-for-sale: Gross gains on sales 29.9 4.7 — 10.4 Gross losses on sales (3.3 ) (4.2 ) — (3.1 ) Investments in limited partnerships (1): Tax credit investments (54.9 ) (47.1 ) (0.6 ) (40.9 ) Net gains (losses) - FIA (2) 48.1 0.7 (4.2 ) (16.1 ) DAC and VOBA adjustment (16.6 ) 3.7 (0.5 ) 7.2 Other (3) (7.6 ) (53.8 ) 3.5 (13.0 ) Marketable equity securities, trading (4) — — (22.5 ) 10.0 Net realized gains (losses) $ 1.9 $ (110.3 ) $ (26.9 ) $ (93.1 ) ____________________ (1) Successor Company results reflect losses related to tax credit investments. Prior to the Merger, pass through activity from tax credit investments was recorded in net investment income. Historical periods have not been adjusted. (2) Includes changes of fair value of the FIA embedded derivative (VED) and related options, excluding options related to the Company's block of FIA business sold during the late 1990s. Also includes the impact of annual unlocking on the VED, which is further discussed in Note 7. (3) Includes net gains (losses) related to calls and redemptions, certain derivatives not designated for hedge accounting, commercial mortgage loans, and other instruments. For more information on net gain (losses) on derivatives not designated as hedges, refer to Note 6. (4) Predecessor Company results include net gains (losses) on changes in the fair value of trading securities held as of period end totaling $ (22.7) and $4.0 for the one month ended January 31, 2016 and the year ended December 31, 2015, respectively. Other-Than-Temporary Impairments (OTTI) The Company's review of available-for-sale investment securities for OTTI includes both quantitative and qualitative criteria. Quantitative criteria include the length of time and amount that each security is in an unrealized loss position (i.e., is underwater) and, for fixed maturities, whether expected future cash flows indicate that a credit loss exists. While all securities are monitored for impairment, the Company's experience indicates that, under normal market conditions, securities for which the cost or amortized cost exceeds fair value by less than 20% do not typically represent a significant risk of impairment and, often, fair values recover over time as the factors that caused the declines improve. If the estimated fair value has declined and remained below cost or amortized cost by 20% or more for at least six months, the Company further analyzes the decrease in fair value to determine whether it is an other-than-temporary decline. To make this determination for each security, the Company considers, among other factors: • Extent and duration of the decline in fair value below cost or amortized cost; • Financial condition and near-term prospects of the issuer of the security, including any specific events that may affect its operations, earnings potential or compliance with terms and covenants of the security; • Changes in the financial condition of the security's underlying collateral; • Any downgrades of the security by a rating agency; • Nonpayment of scheduled interest, or the reduction or elimination of dividends; and • Other indications that a credit loss has occurred. Fixed Maturities For fixed maturities, the Company concludes that an OTTI has occurred if a security is underwater and there is an intent to sell the security, or it is more likely than not that the Company will be required to sell the security prior to recovery of its amortized cost, considering any regulatory developments, prepayment or call notifications and the Company's liquidity needs. If there is an intent or requirement to sell the security, the entire unrealized loss is recognized as an OTTI in net realized gains (losses). An OTTI has also occurred if the present value of expected cash flows is less than the amortized cost of the security (i.e., a credit loss exists). In such cases, the Company isolates the portion of the total unrealized loss related to the credit loss, which is recognized in realized gains (losses) on the consolidated statements of income (loss), and the remainder is recorded as a non-credit OTTI through other comprehensive income. To determine the amount of a credit loss, the Company calculates the recovery value by discounting its estimate of future cash flows from the security. The discount rate is the original effective yield for corporate securities, which reflects book value adjustments made at PGAAP, or current effective yield for mortgage-backed and other structured securities. The amount of the credit loss equals the difference between the carrying value and recovery value of the security. Determination of Credit-Related OTTI on Corporate Securities To determine the recovery value for a corporate security, the Company performs an analysis including, but not limited to, the following: • Expected cash flows of the issuer; • Fundamentals of the industry in which the issuer operates; • Fundamentals of the issuer to determine what the Company would recover if the issuer were to file for bankruptcy or restructure its debt outside of bankruptcy; • Expectations regarding defaults and recovery rates; • Changes to the rating of the security by a rating agency; • Third-party guarantees; and • Additional available market information. Determination of Credit-Related OTTI on Structured Securities To determine the recovery value for a structured security, including residential mortgage-, commercial mortgage- and other asset-backed securities, the Company performs an analysis including, but not limited to, the following: • Expected cash flows from the security; • Creditworthiness; • Delinquency, debt-service coverage, and loan-to-value ratios on the underlying collateral; • Underlying collateral values, vintage year and level of subordination; • Geographic concentrations; and • Susceptibility to prepayment due to changes in the interest rate environment. The largest write-downs recorded through net realized gains (losses) on fixed maturities were related to investments in the following sectors: Successor Predecessor For the Year Ended December 31, 2017 February 1 to December 31, 2016 January 1 to For the Year Ended December 31, 2015 Amount % of Total Amount % of Total Amount % of Total Amount % of Total U.S. Federal Government (1) 3.1 48.4 3.7 34.6 — — 1.6 4.1 Telecommunication services 2.6 40.6 — — — — — — Health care 0.5 7.8 1.6 15.0 — — — — Financials 0.1 1.6 4.2 39.3 — — 1.8 4.7 Energy — — 0.4 3.7 3.8 100.0 30.5 79.0 Other 0.1 1.6 0.8 7.4 — — 4.7 12.2 Net impairment losses recognized in earnings $ 6.4 100.0 % $ 10.7 100.0 % $ 3.8 100.0 % $ 38.6 100.0 % ____________________ (1) Impairments on U.S. Federal Government securities are due to the Company's intent to sell and reflect the impact of interest rate movements. The following table presents the severity and duration of the gross unrealized losses on the Company's underwater available-for-sale fixed maturities, after the recognition of OTTI: As of December 31, 2017 As of December 31, 2016 Fair Value Gross Unrealized Losses # of Securities Fair Value Gross Unrealized Losses # of Securities Fixed maturities: Underwater by 20% or more: Less than 6 consecutive months $ 5.2 $ (1.7 ) 6 $ 1.9 $ (0.6 ) 2 6 consecutive months or more 0.9 (0.8 ) 3 0.1 (0.3 ) 5 Total underwater by 20% or more 6.1 (2.5 ) 9 2.0 (0.9 ) 7 All other underwater fixed maturities 9,911.9 (128.2 ) 1,203 12,892.9 (239.1 ) 1,294 Total underwater fixed maturities $ 9,918.0 $ (130.7 ) 1,212 $ 12,894.9 $ (240.0 ) 1,301 Marketable Equity Securities For equity securities, the Company concludes an OTTI has occurred if it does not have the intent or ability to hold the security until recovery, or if qualitative factors otherwise indicate that the security's cost will not be recovered. If an OTTI exists, the entire unrealized loss is recognized as an OTTI in net realized gains (losses). Changes in the amount of credit-related OTTI recognized in net income where the portion related to other factors was recognized in other comprehensive income (OCI) were as follows: Successor Predecessor For the Year Ended February 1 to January 1 to For the Year Ended December 31, 2015 Balance, beginning of period $ 4.4 $ — $ 27.7 $ 20.1 Increases recognized in the current period: For which an OTTI was not previously recognized 0.2 4.1 — 8.3 For which an OTTI was previously recognized — 0.9 — 7.8 Decreases attributable to: Securities sold or paid down during the period (0.8 ) (0.6 ) (0.4 ) (7.4 ) Previously recognized credit losses on securities impaired during the period due to a change in intent to sell (1) — — — (1.1 ) Balance, end of period $ 3.8 $ 4.4 $ 27.3 $ 27.7 ____________________ (1) Represents circumstances where the Company determined in the period that it intended to sell the security prior to recovery of its amortized cost. The Company reviewed its available-for-sale securities with unrealized losses as of December 31, 2017 and 2016 in accordance with its impairment policy and determined, after the recognition of OTTI, that the declines in fair value were temporary. For fixed maturities, the Company did not intend to sell its underwater securities, and it was not more likely than not that the Company will be required to sell the securities before recovery of cost or amortized cost, which may be maturity. This conclusion is supported by the Company's spread analyses, cash flow modeling and expected continuation of contractually required principal and interest payments. Investments in Limited Partnerships — Low-Income Housing Project Investments The Company invests in limited partnerships that are established to fund low-income housing and other qualifying purposes, where the primary return on investment is in the form of income tax credits. These are collectively referred to as "tax credit investments." The majority of the Company's tax credit investments relate to low-income housing project investments. As of December 31, 2017 and 2016 , the Company's tax credit investments had carrying values of $173.0 and $195.2 , respectively, of which $165.8 and $186.0 , respectively, related to low-income housing project investments. The Company’s tax credit investments are accounted for under the equity method, which recognizes the Company's share of partnership income or loss (pass through activity) in earnings. Typically, low-income housing project investments are written down over time as partnership losses are allocated to the Company or when the carrying value of the investment exceeds the total amount of remaining benefits. Subsequent to the Merger, activity related to these investments is recorded in other net realized gains (losses). Prior to the Merger, pass through activity was recorded as a reduction to net investment income. The associated tax credits are reported in the provision for income taxes. For certain partnerships, the Company contributes its investment commitment over time, and the present value of any unfunded commitments is included in the asset balance and recorded in other liabilities. The following table sets forth the impact of low-income housing project investments on net income. These amounts do not include the impacts of the Company's holdings in other types of tax credit investments. Successor Predecessor For the Year Ended February 1 to January 1 to For the Year Ended December 31, 2015 Pass through activity $ (27.4 ) $ (24.0 ) $ (2.1 ) $ (30.6 ) Write downs (25.6 ) (1.0 ) (0.5 ) (8.3 ) Tax benefits 18.6 8.8 0.9 13.6 Tax credits, net 34.7 35.5 3.1 45.2 Impact to net income $ 0.3 $ 19.3 $ 1.4 $ 19.9 The 2017 Tax Act caused a decrease in the Company's expected tax benefits from future pass through activity due to the reduction in the corporate tax rate to 21% from 35% , resulting in impairments of $18.4 during the year ended December 31, 2017. 4. Investments The Company's investment portfolio consists largely of fixed maturities and commercial mortgage loans, with smaller allocations of marketable equity securities, investments in limited partnerships, and derivatives. Equity investments primarily consist of exchange-traded funds (ETFs) in support of long-duration insurance products in the Income Annuities segment. The following tables summarize the Company's available-for-sale fixed maturities: As of June 30, 2018 Cost or Gross Gross Fair Value U.S. government and agencies $ 305.1 $ 0.7 $ (8.5 ) $ 297.3 State and political subdivisions 761.9 1.3 (16.3 ) 746.9 Corporate securities 24,165.4 278.4 (509.4 ) 23,934.4 Residential mortgage-backed securities 2,520.1 4.7 (98.6 ) 2,426.2 Commercial mortgage-backed securities 769.1 0.5 (14.0 ) 755.6 Collateralized loan obligations 1,099.4 8.8 (2.7 ) 1,105.5 Other debt obligations 865.7 6.8 (13.9 ) 858.6 Total $ 30,486.7 $ 301.2 $ (663.4 ) $ 30,124.5 As of December 31, 2017 Cost or Gross Gross Fair Value U.S. government and agencies $ 426.9 $ 0.2 $ (4.9 ) $ 422.2 State and political subdivisions 794.3 5.0 (6.9 ) 792.4 Corporate securities 23,223.8 768.9 (60.5 ) 23,932.2 Residential mortgage-backed securities 2,516.0 6.6 (49.8 ) 2,472.8 Commercial mortgage-backed securities 795.0 3.8 (3.1 ) 795.7 Collateralized loan obligations 1,128.1 18.5 — 1,146.6 Other debt obligations 715.1 9.8 (5.5 ) 719.4 Total $ 29,599.2 $ 812.8 $ (130.7 ) $ 30,281.3 The Company maintains a diversified portfolio of corporate fixed maturity securities across industries. The following table presents the composition of the Company's corporate securities portfolio by sector: As of June 30, 2018 As of December 31, 2017 Fair Value % of Total Fair Value % of Total Industrial $ 4,418.5 18.5 % $ 4,446.7 18.6 % Consumer discretionary 3,420.4 14.3 3,379.9 14.1 Utilities 3,109.2 13.0 3,088.8 12.9 Financial 2,864.5 12.0 2,826.1 11.8 Consumer staples 2,713.2 11.3 2,704.0 11.3 Health care 2,510.5 10.5 2,635.5 11.0 Other 4,898.1 20.4 4,851.2 20.3 Total $ 23,934.4 100.0 % $ 23,932.2 100.0 % The following tables summarize gross unrealized losses and fair values of the Company's available-for-sale investments. The tables are aggregated by investment category and present separately securities that have been in a continuous unrealized loss position for less than twelve months and for twelve months or more. As of June 30, 2018 Less Than 12 Months 12 Months or More Fair Gross # of Fair Gross # of U.S. government and agencies $ 33.5 $ (1.0 ) 8 $ 189.1 $ (7.5 ) 30 State and political subdivisions 510.4 (9.6 ) 74 165.5 (6.7 ) 38 Corporate securities 16,297.7 (437.2 ) 1,126 1,304.2 (72.2 ) 110 Residential mortgage-backed securities 797.9 (24.3 ) 186 1,476.3 (74.3 ) 392 Commercial mortgage-backed securities 591.8 (11.4 ) 50 51.3 (2.6 ) 18 Collateralized loan obligations 477.9 (2.7 ) 31 — — — Other debt obligations 412.6 (10.0 ) 49 88.1 (3.9 ) 12 Total $ 19,121.8 $ (496.2 ) 1,524 $ 3,274.5 $ (167.2 ) 600 As of December 31, 2017 Less Than 12 Months 12 Months or More Fair Gross # of Fair Gross # of U.S. government and agencies $ 111.2 $ (0.3 ) 4 $ 206.2 $ (4.6 ) 30 State and political subdivisions 311.8 (2.8 ) 48 169.7 (4.1 ) 36 Corporate securities 4,963.8 (34.3 ) 396 1,257.7 (26.2 ) 82 Residential mortgage-backed securities 693.4 (7.7 ) 176 1,509.9 (42.1 ) 351 Commercial mortgage-backed securities 296.5 (1.4 ) 24 60.5 (1.7 ) 19 Collateralized loan obligations 10.0 — 1 — — — Other debt obligations 218.0 (2.5 ) 32 109.3 (3.0 ) 13 Total $ 6,604.7 $ (49.0 ) 681 $ 3,313.3 $ (81.7 ) 531 Based on National Association of Insurance Commissioners (NAIC) ratings as of June 30, 2018 and December 31, 2017 , the Company held below-investment-grade fixed maturities with fair values of $978.9 and $1,111.4 , respectively, and amortized costs of $953.2 and $1,029.6 , respectively. These holdings amounted to 3.2% and 3.7% of the Company's investments in fixed maturities, at fair value, as of June 30, 2018 and December 31, 2017 , respectively. The following table summarizes the amortized costs and fair values of fixed maturities as of June 30, 2018 by contractual years to maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. Amortized Cost Fair Value One year or less $ 1,320.1 $ 1,317.4 Over one year through five years 8,186.3 8,112.6 Over five years through ten years 10,273.7 10,067.8 Over ten years 5,547.6 5,575.5 Total fixed maturities with contractual maturity dates 25,327.7 25,073.3 Residential mortgage-backed securities 2,520.1 2,426.2 Commercial mortgage-backed securities 769.1 755.6 Collateralized loan obligations 1,099.4 1,105.5 Other asset-backed securities 770.4 763.9 Total fixed maturities $ 30,486.7 $ 30,124.5 The following table summarizes the Company's net investment income: For the Six Months Ended June 30, 2018 2017 Fixed maturities $ 545.7 $ 529.7 Marketable equity securities 8.5 8.1 Mortgage loans 132.6 117.4 Other 6.0 4.5 Total investment income 692.8 659.7 Investment expenses (21.5 ) (19.1 ) Net investment income $ 671.3 $ 640.6 The following table summarizes the Company's net realized gains (losses): For the Six Months Ended June 30, 2018 2017 Fixed maturities: Gross gains on sales $ 5.1 $ 11.2 Gross losses on sales (10.6 ) (4.6 ) Net impairment losses (3.0 ) (2.0 ) Marketable equity securities (1) (5.8 ) 24.4 Investments in limited partnerships (2): Tax credit investments (23.7 ) (16.8 ) Net gains (losses) - FIA (3) 14.1 — DAC and VOBA adjustment (7.2 ) (1.1 ) Other (4) (27.7 ) (15.4 ) Net realized losses $ (58.8 ) $ (4.3 ) ____________________ (1) Includes net gains on changes in the fair value of equity securities held, totaling $3.6 for the six months ended June 30, 2018. (2) Reflect losses related to tax credit investments. (3) Includes changes of fair value of the FIA embedded derivative (VED) and related options, excluding options related to the Company's block of FIA business sold during the late 1990s. (4) Includes net gains (losses) related to calls and redemptions, certain derivatives not designated for hedge accounting, commercial mortgage loans, and other instruments. For more information on net gain (losses) on derivatives not designated as hedges, refer to Note 6. Other-Than-Temporary Impairments (OTTI) The Company's review of available-for-sale fixed maturities for OTTI includes both quantitative and qualitative criteria. Quantitative criteria include the length of time and amount that each security is in an unrealized loss position (i.e., is underwater) and whether expected future cash flows indicate that a credit loss exists. While all securities are monitored for impairment, the Company's experience indicates that, under normal market conditions, securities for which the cost or amortized cost exceeds fair value by less than 20% do not typically represent a significant risk of impairment and, often, fair values recover over time as the factors that caused the declines improve. If the estimated fair value has declined and remained below cost or amortized cost by 20% or more for at least six months, the Company further analyzes the decrease in fair value to determine whether it is an other-than-temporary decline. To make this determination for each security, the Company considers, among other factors: • Extent and duration of the decline in fair value below amortized cost; • Financial condition and near-term prospects of the issuer of the security, including any specific events that may affect its operations, earnings potential or compliance with terms and covenants of the security; • Changes in the financial condition of the security's underlying collateral; • Any downgrades of the security by a rating agency; • Nonpayment of scheduled interest; and • Other indications that a credit loss has occurred. The Company concludes that an OTTI has occurred if a security is underwater and there is an intent to sell the security, or it is more likely than not that the Company will be required to sell the security prior to recovery of its amortized cost, considering any regulatory developments, prepayment or call notifications and the Company's liquidity needs. If there is an intent or requirement to sell the security, the entire unrealized loss is recognized as an OTTI in net realized gains (losses). An OTTI has also occurred if the present value of expected cash flows is less than the amortized cost of the security (i.e., a credit loss exists). In such cases, the Company isolates the portion of the total unrealized loss related to the credit loss, which is recognized in realized losses on the consolidated statements of income (loss), and the remainder is recorded as a non-credit OTTI through other comprehensive income. To determine the amount of a credit loss, the Company calculates the recovery value by discounting its estimate of future cash flows from the security. The discount rate is the original effective yield for corporate securities, which reflects book value adjustments made at PGAAP, or current effective yield for mortgage-backed and other structured securities. The amount of the credit loss equals the difference between the carrying value and recovery value of the security. Determination of Credit-Related OTTI on Corporate Securities To determine the recovery value for a corporate security, the Company performs an analysis including, but not limited to, the following: • Expected cash flows of the issuer; • Fundamentals of the industry in which the issuer operates; • Fundamentals of the issuer to determine what the Company would recover if the issuer were to file for bankruptcy or restructure its debt outside of bankruptcy; • Expectations regarding defaults and recovery rates; • Changes to the rating of the security by a rating agency; • Third-party guarantees; and • Additional available market information. Determination of Credit-Related OTTI on Structured Securities To determine the recovery value for a structured security, including residential mortgage-, commercial mortgage- and other asset-backed securities, the Company performs an analysis including, but not limited to, the following: • Expected cash flows from the security; • Creditworthiness; • Delinquency, debt-service coverage, and loan-to-value ratios on the underlying collateral; • Underlying collateral values, vintage year and level of subordination; • Geographic concentrations; and • Susceptibility to prepayment due to changes in the interest rate environment. The following table presents the severity and duration of the gross unrealized losses on the Company's underwater available-for-sale fixed maturities, after the recognition of OTTI: As of June 30, 2018 As of December 31, 2017 Fair Value Gross Unrealized Losses # of Securities Fair Gross # of Securities Fixed maturities: Underwater by 20% or more: Less than 6 consecutive months $ 3.6 $ (1.1 ) 6 $ 5.2 $ (1.7 ) 6 6 consecutive months or more 1.7 (0.9 ) 5 0.9 |
Mortgage Loans
Mortgage Loans | 6 Months Ended |
Jun. 30, 2018 | |
Mortgage Loans on Real Estate [Abstract] | |
Mortgage Loans | 5. Mortgage Loans The Company originates and manages a portfolio of mortgage loans, which are secured by first-mortgage liens on income-producing commercial real estate, primarily in the retail, industrial and office building sectors. Loans are underwritten based on loan-to-value (LTV) ratios and debt-service coverage ratios (DSCR), as well as detailed market, property and borrower analyses. The Company's mortgage loan portfolio is considered a single portfolio segment and class of financing receivables, which is consistent with how the Company assesses and monitors the risk and performance of the portfolio. A large majority of these loans have personal guarantees, and all mortgaged properties are inspected annually. The Company updates each loan's LTV ratio every period based on the carrying value of the property, while property information (such as property value and income for DSCR) is updated annually, primarily during the third quarter. The Company's mortgage loan portfolio is diversified by geographic region, loan size and scheduled maturity. As of December 31, 2017 , the three states with the largest concentrations of the Company's commercial mortgage loans were California , Texas and Washington , representing 27.0% , 10.9% , and 6.7% , respectively, of total outstanding principal. Of the loans in California, 42.7% related to properties located in the Los Angeles area. As of the Merger Date, all outstanding mortgage loans were measured at fair value, which resulted in the establishment of a net premium for the portfolio. This net premium is amortized into net investment income for each loan based on its expected maturity, using the effective interest rate method. As of December 31, 2017 and 2016 , the unamortized premium balance was $177.1 and $228.4 , respectively. Each mortgage loan was individually analyzed and assigned a discount rate used to determine the fair value. Various market factors were considered in determining the net present value of the expected cash flows, including the characteristics of the borrower, the underlying collateral, underlying credit worthiness of the tenants, and tenant payment history. Known events and risks, such as refinancing and credit-related risks, were also considered in the fair value determination. The balances of deferred costs, unearned fees, and allowance for loan losses were set to zero as of the Merger Date. For loans issued subsequent to the Merger, the carrying value of mortgage loans reflects outstanding principal balances, adjusted for unamortized deferred fees and costs, net of an allowance for loan losses. Loan origination fees and costs are deferred and amortized over the life of the loan. Interest income, including amortization of deferred fees and expenses, is recorded in net investment income using the effective interest rate method. Allowance for Loan Losses The allowance for losses on mortgage loans provides for the risk of credit loss inherent in the lending process. The allowance consists of a portfolio reserve for probable losses incurred but not specifically identified and, as needed, specific reserves for impaired loans. The allowance for losses on mortgage loans is evaluated at each reporting period and adjustments are recorded when appropriate. Loans are specifically evaluated for impairment if the Company considers it probable that amounts due according to the terms of the loan agreement will not be collected, or the loan is modified in a troubled debt restructuring. The Company establishes specific reserves for these loans when the fair value is less than the carrying value. To assist in its evaluation of the allowance for loan losses, the Company utilizes the following credit quality indicators to categorize its loans as lower, medium or higher risk: • Lower Risk Loans – Loans with an LTV ratio of less than 65% , and a DSCR of greater than 1.50 . • Medium Risk Loans – Loans that have an LTV ratio of less than 65% but a DSCR below 1.50 , or loans with an LTV ratio between 65% and 80% and a DSCR of greater than 1.50 . • Higher Risk Loans – Loans with an LTV ratio greater than 80% , or loans which have an LTV ratio between 65% and 80% and a DSCR of less than 1.50 . Loans held as of the Merger Date (referred to as PGAAP loans) were adjusted to fair value, which incorporated expectations for credit losses at that time, and the allowance was set to zero. The Company separately monitors these loans for deterioration in credit quality or other indicators that a loss has incurred. Any allowance related to these PGAAP loans reflects losses incurred subsequent to the Merger. The following table sets forth the Company's mortgage loans by risk category: As of December 31, 2017 As of December 31, 2016 Balance % Balance % Lower risk $ 1,486.1 69.8 % $ 760.4 70.3 % Medium risk 486.3 22.8 261.9 24.2 Higher risk 157.6 7.4 59.2 5.5 Subtotal, excluding certain PGAAP loans 2,130.0 100.0 1,081.5 100.0 Lower risk 2,899.2 70.7 3,097.6 67.2 Medium risk 896.8 21.8 1,071.3 23.2 Higher risk 308.4 7.5 441.3 9.6 Subtotal, certain PGAAP loans (1) 4,104.4 100.0 % 4,610.2 100.0 % Loans specifically evaluated for impairment (2) 4.8 — Other (3) 2.0 0.5 Total $ 6,241.2 $ 5,692.2 ________________ (1) Represents loans set to fair value on February 1, 2016 for which there are no indications of subsequent credit deterioration. (2) As of both December 31, 2017 and 2016, no reserve amounts were held for loans specifically evaluated for impairment. (3) Includes allowance for loan losses and deferred fees and costs. In developing the portfolio reserve for incurred but not specifically identified losses, the Company evaluates loans by risk category. The Company considers past loan experience, commercial real estate market conditions, third-party data for expected losses on loans with similar LTV ratios and DSCRs, personal guarantees, and other relevant factors when determining whether an allowance is needed for loans categorized as medium or higher risk. No allowance is recorded for lower risk loans, based on their characteristics and the Company's historical experience. In developing the provision for specifically identified loans, a market valuation on the collateral is performed to determine if a reserve is necessary. The following table summarizes the activity in the Company’s allowance for mortgage loan losses, which includes portfolio and specific reserves: Successor Predecessor For the Year Ended February 1 to January 1 to For the Year Ended December 31, 2015 Allowance at beginning of period (1) $ 0.7 $ — $ 8.1 $ 8.1 Provision for loans not specifically identified 0.3 0.7 — — Allowance at end of period $ 1.0 $ 0.7 $ 8.1 $ 8.1 _______________________ (1) Balance was reset to $0.0 on February 1, 2016 due to PGAAP. Non-performing loans, defined generally as those in default, close to being in default or more than 90 days past due, are placed on non-accrual status. As of December 31, 2017 and 2016 , no loans were considered non-performing. 5. Mortgage Loans The Company originates and manages a portfolio of mortgage loans, which are secured by first-mortgage liens on income-producing commercial real estate, primarily in the retail, industrial and office building sectors. The Company's mortgage loan portfolio is diversified by geographic region, loan size and scheduled maturity. As of June 30, 2018 , the three states with the largest concentrations of the Company's commercial mortgage loans were California , Texas and Washington representing 26.7% , 11.5% , and 6.5% , respectively, of total outstanding principal. Of the loans in California, 42.0% related to properties located in the Los Angeles area. All outstanding mortgage loans as of the Merger (referred to as PGAAP loans) were measured at fair value as of February 1, 2016, which resulted in the establishment of a net premium for the portfolio. This net premium is amortized into net investment income for each loan based on its expected maturity, using the effective interest rate method. As of June 30, 2018 and December 31, 2017 , the unamortized premium balance was $153.4 and $177.1 , respectively. Allowance for Loan Losses The allowance for losses on mortgage loans provides for the risk of credit loss inherent in the lending process. The allowance consists of a portfolio reserve for probable losses incurred but not specifically identified and, as needed, specific reserves for impaired loans. The allowance for losses on mortgage loans is evaluated at each reporting period and adjustments are recorded when appropriate. Loans are specifically evaluated for impairment if the Company considers it probable that amounts due according to the terms of the loan agreement will not be collected, or the loan is modified in a troubled debt restructuring. The Company establishes specific reserves for these loans when the fair value is less than the carrying value. To assist in its evaluation of the allowance for loan losses, the Company utilizes the following credit quality indicators to categorize its loans as lower, medium or higher risk: • Lower Risk Loans – Loans with an LTV ratio of less than 65% , and a DSCR of greater than 1.50 . • Medium Risk Loans – Loans that have an LTV ratio of less than 65% but a DSCR below 1.50 , or loans with an LTV ratio between 65% and 80% and a DSCR of greater than 1.50 . • Higher Risk Loans – Loans with an LTV ratio greater than 80% , or loans which have an LTV ratio between 65% and 80% and a DSCR of less than 1.50 . The adjustment to fair value of the PGAAP loans on February 1, 2016 incorporated expectations for credit losses at that time, and the allowance was set to zero. The Company separately monitors these loans for deterioration in credit quality or other indicators that a loss has incurred. Any allowance related to the PGAAP loans reflects losses incurred subsequent to the Merger. The following table sets forth the Company's mortgage loans by risk category: As of June 30, 2018 As of December 31, 2017 Balance % Balance % Lower risk $ 1,681.8 68.5 % $ 1,486.1 69.8 % Medium risk 507.8 20.7 486.3 22.8 Higher risk 265.7 10.8 157.6 7.4 Subtotal, excluding certain PGAAP loans 2,455.3 100.0 2,130.0 100.0 Lower risk 2,746.0 71.7 2,899.2 70.7 Medium risk 806.9 21.1 896.8 21.8 Higher risk 274.5 7.2 308.4 7.5 Subtotal, certain PGAAP loans (1) 3,827.4 100.0 % 4,104.4 100.0 % Loans specifically evaluated for impairment (2) — 4.8 Other (3) 2.3 2.0 Total $ 6,285.0 $ 6,241.2 ________________ (1) Represents loans set to fair value on February 1, 2016 for which there are no indications of subsequent credit deterioration. (2) As of both June 30, 2018 and December 31, 2017, no reserve amounts were held for loans specifically evaluated for impairment. (3) Includes allowance for loan losses and deferred fees and costs. In developing the portfolio reserve for incurred but not specifically identified losses, the Company evaluates loans by risk category. The Company considers past loan experience, commercial real estate market conditions, third-party data for expected losses on loans with similar LTV ratios and DSCRs, personal guarantees, and other relevant factors when determining whether an allowance is needed for loans categorized as medium or higher risk. No allowance is recorded for low risk loans, based on their characteristics and the Company's historical experience. In developing the provision for specifically identified loans, a market valuation on the collateral is performed to determine if a reserve is necessary. The following table summarizes the activity in the Company’s allowance for mortgage loan losses, which includes portfolio and specific reserves: For the Six Months Ended June 30, 2018 2017 Allowance at beginning of period $ 1.0 $ 0.7 Change in provision for loans not specifically identified 0.5 — Allowance at end of period $ 1.5 $ 0.7 Non-performing loans, defined generally as those in default, close to being in default or more than 90 days past due, are placed on non-accrual status. As of both June 30, 2018 and December 31, 2017 , no loans were considered non-performing. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 6. Derivative Instruments The Company uses derivative financial instruments to hedge certain portions of its exposure to equity market risk, interest rate risk and foreign currency exchange risk. Derivative financial instruments currently held consist primarily of equity market contracts, interest rate swaps, and foreign currency swaps. Derivative instruments may be exchange-traded or contracted in the over-the-counter (OTC) market. The Company has established policies for managing its derivatives, including prohibitions on derivatives market-making and other speculative derivatives activities. All of the Company’s derivative financial instruments are individually recognized at fair value as either assets within derivatives and other invested assets, or liabilities within other liabilities in the consolidated balance sheets. The accounting for derivatives depends on whether it qualifies and has been designated for hedge accounting. To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated risk of the hedged item. Effectiveness of the hedge is formally assessed at inception and throughout the life of the hedging relationship. In connection with purchase accounting, the Company formally redesignated its hedge accounting relationships as of the Merger Date. When a derivative is designated as a cash flow hedge and is determined to be highly effective, changes in its fair value are recorded as a component of OCI and reclassified into net income in the same period during which the hedged transaction affects net income. Any hedge ineffectiveness is recorded in the consolidated statements of income (loss) within net realized gains (losses). If a derivative instrument does not qualify, or is not designated for hedge accounting, the changes in its fair value are recorded in the consolidated statements of income (loss) within net realized gains (losses). The Company prospectively discontinues hedge accounting when: (1) the criteria to qualify for hedge accounting is no longer met ( e.g. , the derivative is no longer highly effective in offsetting the change in cash flows of a hedged item); (2) the derivative expires, is sold, terminated or exercised; or (3) the derivative is de-designated as a hedging instrument for hedge accounting purposes. If it is determined that a derivative no longer qualifies as an effective hedge, the derivative continues to be carried in the consolidated balance sheet at its fair value, with changes in fair value recognized prospectively in the consolidated statements of income (loss) within net realized gains (losses). The Company also issues fixed indexed annuity contracts that contain embedded derivatives, which are recorded at fair value in funds held under deposit contracts in the consolidated balance sheets. Changes in fair value are recognized in net realized gains (losses). Derivative Exposure The following table sets forth the fair value of the Company's derivative instruments: As of December 31, 2017 As of December 31, 2016 Notional Amount Fair Value Notional Amount Fair Value Assets Liabilities Assets Liabilities Derivatives designated as hedges: Cash flow hedges: Interest rate swaps $ 968.1 $ 1.5 $ 1.4 $ 719.8 $ 3.3 $ 16.3 Foreign currency swaps 686.2 75.5 5.6 701.1 141.9 — Total derivatives designated as hedges $ 1,654.3 $ 77.0 $ 7.0 $ 1,420.9 $ 145.2 $ 16.3 Derivatives not designated as hedges: Index options $ 6,696.1 $ 261.9 $ 1.5 $ 5,116.4 $ 161.7 $ 1.7 Total return swaps — — — 384.0 — 22.8 Embedded derivatives — — 797.5 — — 532.4 Other derivatives 22.2 0.2 — 166.3 0.5 0.5 Total derivatives not designated as hedges 6,718.3 262.1 799.0 5,666.7 162.2 557.4 Total derivatives $ 8,372.6 $ 339.1 $ 806.0 $ 7,087.6 $ 307.4 $ 573.7 Equity Market Contracts and Embedded Derivatives The Company uses indexed call options as part of its equity market risk management strategy. The Company offers a FIA contract that permits the contract holder to allocate all or a portion of their account value to an index-linked component, where interest credited to the contract is linked to index performance, subject to caps or performance margins set by the Company. The contract holders may elect to rebalance index options at renewal dates, typically annually. As of each renewal date, the Company has the opportunity to re-price the indexed component by establishing revised cap rates or performance margins, subject to contractual guarantees. The Company transacts in call options according to the portfolio allocation decisions of the contract holders, such that the Company is economically hedged with respect to equity returns for the current interest term. These derivatives are not designated for hedge accounting. The index-based crediting feature in these contracts is an embedded derivative instrument that is bifurcated from the host contract for measurement purposes, because it possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract. In 2016, the Company entered into total return swaps to economically hedge market risk with relation to the Company's investments in marketable equity securities. In its total return swaps, the Company agreed with other parties to make payments based on the return of two market indexes, including both the income generated and any capital gains, in exchange for payments based on a set rate. The Company terminated all of its total return swaps in 2017. Foreign Currency Contracts The Company uses foreign currency swaps and forwards as part of its foreign currency risk management strategy, to reduce exchange risk with respect to the Company's investments denominated in foreign currencies. In a foreign currency swap transaction, the Company agrees with other parties to exchange, at specified intervals, one currency for another at a specified rate of exchange. Generally, the notional amount of each currency is exchanged at the maturity of the currency swap by each party. These derivatives qualify and are designated as cash flow hedges, and accumulated gains (losses) are reclassified into income when interest and principal payments on the underlying foreign bonds are received. Interest Rate Swaps The Company uses interest rate swaps as part of its interest rate risk management strategy. In an interest rate swap, the Company agrees with other parties to exchange, at specified intervals, the difference between floating-rate and fixed-rate interest amounts calculated by reference to an agreed upon notional principal amount. The Company primarily uses interest rate swaps to synthetically convert variable rate fixed maturities, including investments in collateralized loan obligations, to fixed rate securities. These derivatives qualify and are designated as cash flow hedges, and accumulated gains (losses) are reclassified into income when interest payments on the underlying bonds are received. Collateral Arrangements and Offsetting of Financial Instruments The Company's derivative contracts are typically governed by an International Swaps and Derivatives Association (ISDA) Master Agreement. For each Master Agreement, the Company and the counterparty have also entered into a credit support annex (CSA) to reduce the risk of counterparty default in derivative transactions by requiring the posting of cash collateral or other financial assets. The CSA requires either party to post collateral when net exposures from all derivative contracts between the parties exceed pre-determined contractual thresholds, which vary by counterparty. The amount of net exposure is the difference between the derivative contract's fair value and the fair value of the collateral held for such agreements with each counterparty. Collateral amounts required to be posted or received are determined daily based on the net exposure with each counterparty under a master netting agreement. The Company does not offset recognized collateral amounts pledged or received against the fair value amounts recognized for derivative contracts. For certain centrally-cleared instruments, the Company is required to post initial margin, which is determined at contract inception, as well as variation margin, which is based on the fair value of the derivative contracts and generally determined on a daily basis. As of December 31, 2017 and 2016 , the Company posted initial margin of $33.5 and $30.0 , respectively, related to its centrally-cleared derivatives. These amounts are not reflected in collateral presented in the tables below. Certain exchanges made adjustments to their rulebooks effective in 2017, resulting in the legal characterization of variation margin payments as settlements as opposed to collateral for its centrally cleared derivatives. As a result, the variation margin for these securities reduces the fair value of the derivative recorded in the consolidated balance sheets. In the consolidated balance sheets, the Company recognizes cash collateral received in cash and cash equivalents, and the obligation to return cash collateral in other liabilities. Non-cash collateral received is not recognized in the consolidated balance sheets. In the event of default, the counterparty relinquishes claim to the assets pledged as collateral, and the Company recognizes the collateral as its own asset recorded at fair value, or, in the case of cash collateral, derecognizes its obligation to return collateral. The following tables present the potential effect of netting arrangements by counterparty on the Company's consolidated balance sheets: As of December 31, 2017 Gross Amounts not Offset in the Consolidated Balance Sheets Fair Value Presented in the Balance Sheets Financial Instruments (1) Cash Collateral Received Net Amount Counterparty: Assets: A $ 46.1 $ (4.2 ) $ (41.9 ) $ — B 63.6 (1.4 ) (62.2 ) — C 13.2 — (13.2 ) — E 21.3 — (21.3 ) — F 31.6 (1.3 ) (29.0 ) 1.3 G 30.2 — (30.2 ) — H 51.9 (1.0 ) (50.9 ) — I 34.6 — (32.9 ) 1.7 J 42.7 — (42.7 ) — Other 3.9 (0.6 ) (3.3 ) — Total derivative assets $ 339.1 $ (8.5 ) $ (327.6 ) $ 3.0 _______________________ (1) Represents amount of offsetting derivative liabilities that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative assets for presentation on the consolidated balance sheets. As of December 31, 2017 Gross Amounts not Offset in the Consolidated Balance Sheets Fair Value Presented in the Financial Instruments (1) Cash Collateral Posted Net Amount Counterparty: Liabilities: A $ 4.2 $ (4.2 ) $ — $ — B 1.4 (1.4 ) — — F 1.3 (1.3 ) — — Other 1.6 (1.6 ) — — Total derivative liabilities (2) $ 8.5 $ (8.5 ) $ — $ — _______________________ (1) Represents amount of offsetting derivative assets that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative liabilities for presentation on the consolidated balance sheets. (2) Excludes embedded derivatives of $797.5 which have no counterparty. As of December 31, 2016 Gross Amounts not Offset in the Consolidated Balance Sheets Fair Value Presented in the Balance Sheets Financial Instruments (1) Cash Collateral Received Net Amount Counterparty: Assets: A $ 25.9 $ (14.9 ) $ (10.5 ) $ 0.5 B 95.2 (17.2 ) (78.0 ) — C 25.6 — (25.6 ) — E 25.1 — (25.1 ) — G 30.4 (0.7 ) (29.7 ) — H 18.3 — (18.3 ) — I 32.9 (8.0 ) (24.9 ) — J 32.5 — (32.5 ) — Other 21.5 (0.5 ) (20.3 ) 0.7 Total derivative assets $ 307.4 $ (41.3 ) $ (264.9 ) $ 1.2 _______________________ (1) Represents amount of offsetting derivative liabilities that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative assets for presentation on the consolidated balance sheets. As of December 31, 2016 Gross Amounts not Offset in the Consolidated Balance Sheets Fair Value Presented in the Financial Cash Collateral Posted Net Amount Counterparty: Liabilities: A $ 14.9 $ (14.9 ) $ — $ — B 17.2 (17.2 ) — — I 8.0 (8.0 ) — — Other 1.2 (1.2 ) — — Total derivative liabilities (2) $ 41.3 $ (41.3 ) $ — $ — _______________________ (1) Represents amount of offsetting derivative assets that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative liabilities for presentation on the consolidated balance sheets. (2) Excludes embedded derivatives of $532.4 which have no counterparty. Derivatives Designated as Hedges The following table presents the amount of gain (loss) recognized in OCI on derivatives qualifying and designated as cash flow hedges: Successor Predecessor For the Year Ended February 1 to January 1 to For the Year Ended Interest rate swaps $ (2.9 ) $ (18.9 ) $ 11.3 $ 2.4 Foreign currency swaps (64.6 ) 62.5 29.1 62.7 Total $ (67.5 ) $ 43.6 $ 40.4 $ 65.1 See Note 9 for amounts reclassified out of AOCI into net income. The Company expects to reclassify net gains of $3.4 from AOCI into net income in the next 12 months. Actual amounts may vary from this estimate as a result of market conditions. As of December 31, 2017 , the maximum term over which the Company is hedging its exposure to the variability in future cash flows is approximately 23 years. For the year ended December 31, 2017 , realized gains of $1.6 were recognized related to hedge ineffectiveness, while for the period February 1 to December 31, 2016 , losses of $1.9 were recorded. For the period January 1 to January 31, 2016 and the year ended December 31, 2015, no material hedge ineffectiveness was recorded. Derivatives Not Designated as Hedges The following table shows the effect of derivatives not designated as hedges in the consolidated statements of income (loss), which is recorded in net realized gains (losses): Successor Predecessor For the Year Ended February 1 to January 1 to For the Year Ended Index options $ 170.0 $ 84.3 $ (33.2 ) $ (23.9 ) Embedded derivatives (118.6 ) (84.5 ) 29.4 6.9 Total return swaps (4.3 ) (22.8 ) — — Other derivatives 4.9 1.9 3.8 1.7 Total $ 52.0 $ (21.1 ) $ — $ (15.3 ) 6. Derivative Instruments The following table sets forth the fair value of the Company's derivative instruments, including embedded derivatives that primarily related to the Company's FIA products. In the consolidated balance sheets, derivative contracts in a liability position are included in other liabilities, and embedded derivative liabilities are included in funds held under deposit contracts. As of June 30, 2018 As of December 31, 2017 Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities Derivatives designated as hedges: Cash flow hedges: Interest rate swaps $ 942.2 $ 0.3 $ 1.2 $ 968.1 $ 1.5 $ 1.4 Foreign currency swaps 764.1 86.6 5.4 686.2 75.5 5.6 Total derivatives designated as hedges $ 1,706.3 $ 86.9 $ 6.6 $ 1,654.3 $ 77.0 $ 7.0 Derivatives not designated as hedges: Index options $ 7,384.0 $ 207.2 $ 0.4 $ 6,696.1 $ 261.9 $ 1.5 Total return swaps 500.0 0.6 — — — — Embedded derivatives — — 857.8 — — 797.5 Other derivatives 44.4 0.1 0.7 22.2 0.2 — Total derivatives not designated as hedges 7,928.4 207.9 858.9 6,718.3 262.1 799.0 Total derivatives $ 9,634.7 $ 294.8 $ 865.5 $ 8,372.6 $ 339.1 $ 806.0 In March 2018, the Company entered into total return swaps to economically hedge market risk with relation to the majority of the Company's investments in marketable equity securities. In its total return swaps, the Company agreed with other parties to make payments based on the return of two market indexes, including both the income generated and any capital gains, in exchange for payments based on a set rate. Collateral Arrangements and Offsetting of Financial Instruments The Company's derivative contracts are typically governed by an International Swaps and Derivatives Association (ISDA) Master Agreement. For each Master Agreement, the Company and the counterparty have also entered into a credit support annex (CSA) to reduce the risk of counterparty default in derivative transactions by requiring the posting of cash collateral or other financial assets. The CSA requires either party to post collateral when net exposures from all derivative contracts between the parties exceed pre-determined contractual thresholds, which vary by counterparty. The amount of net exposure is the difference between the derivative contract's fair value and the fair value of the collateral held for such agreements with each counterparty. Collateral amounts required to be posted or received are determined daily based on the net exposure with each counterparty under a master netting agreement. The Company does not offset recognized collateral amounts pledged or received against the fair value amounts recognized for derivative contracts. For certain centrally-cleared instruments, the Company is required to post initial margin, which is determined at contract inception, as well as variation margin, which is based on the fair value of the derivative contracts and generally determined on a daily basis. As of June 30, 2018 and December 31, 2017 , the Company posted initial margin of $21.0 and $33.5 , respectively, related to its centrally-cleared derivatives. These amounts are not reflected in collateral presented in the tables below. Certain exchanges legally characterize variation margin payments as settlements as opposed to collateral for centrally cleared derivatives. As a result, the variation margin for these securities reduces the fair value of the derivative recorded in the consolidated balance sheets. In the consolidated balance sheets, the Company recognizes cash collateral received in cash and cash equivalents, and the obligation to return cash collateral in other liabilities. Non-cash collateral received is not recognized in the consolidated balance sheets. In the event of default, the counterparty relinquishes claim to the assets pledged as collateral, and the Company recognizes the collateral as its own asset recorded at fair value, or, in the case of cash collateral, derecognizes its obligation to return collateral. The following tables present the potential effect of netting arrangements by counterparty on the Company's consolidated balance sheets: As of June 30, 2018 Gross Amounts not Offset in the Consolidated Balance Sheets Fair Value Presented in the Financial Cash Collateral Received Net Amount Counterparty: Assets: A $ 31.8 $ (4.2 ) $ (27.6 ) $ — B 56.4 (1.9 ) (54.5 ) — C 14.7 — (14.7 ) — E 19.5 — (19.5 ) — F 26.0 — (26.0 ) — G 48.9 — (48.9 ) — H 24.7 (0.7 ) (24.0 ) — I 33.8 — (33.8 ) — J 25.4 — (25.1 ) 0.3 Other 13.6 (0.9 ) (12.4 ) 0.3 Total derivative assets $ 294.8 $ (7.7 ) $ (286.5 ) $ 0.6 _______________________ (1) Represents amount of offsetting derivative liabilities that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative assets for presentation on the consolidated balance sheets. As of June 30, 2018 Gross Amounts not Offset in the Consolidated Balance Sheets Fair Value Presented in the Financial Cash Collateral Posted Net Amount Counterparty: Liabilities: A $ 4.2 $ (4.2 ) $ — $ — B 1.9 (1.9 ) — — H 0.7 (0.7 ) — — Other 0.9 (0.9 ) — — Total derivative liabilities (2) $ 7.7 $ (7.7 ) $ — $ — _______________________ (1) Represents amount of offsetting derivative assets that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative liabilities for presentation on the consolidated balance sheets. (2) Excludes embedded derivatives of $857.8 which have no counterparty. As of December 31, 2017 Gross Amounts not Offset in the Consolidated Balance Sheets Fair Value Presented in the Financial Cash Collateral Received Net Amount Counterparty: Assets: A $ 46.1 $ (4.2 ) $ (41.9 ) $ — B 63.6 (1.4 ) (62.2 ) — C 13.2 — (13.2 ) — E 21.3 — (21.3 ) — F 31.6 (1.3 ) (29.0 ) 1.3 G 30.2 — (30.2 ) — H 51.9 (1.0 ) (50.9 ) — I 34.6 — (32.9 ) 1.7 J 42.7 — (42.7 ) — Other 3.9 (0.6 ) (3.3 ) — Total derivative assets $ 339.1 $ (8.5 ) $ (327.6 ) $ 3.0 _______________________ (1) Represents amount of offsetting derivative liabilities that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative assets for presentation on the consolidated balance sheets. As of December 31, 2017 Gross Amounts not Offset in the Consolidated Balance Sheets Fair Value Presented in the Financial Cash Collateral Posted Net Amount Counterparty: Liabilities: A $ 4.2 $ (4.2 ) $ — $ — B 1.4 (1.4 ) — — F 1.3 (1.3 ) — — Other 1.6 (1.6 ) — — Total derivative liabilities (2) $ 8.5 $ (8.5 ) $ — $ — _______________________ (1) Represents amount of offsetting derivative assets that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative liabilities for presentation on the consolidated balance sheets. (2) Excludes embedded derivatives of $797.5 which have no counterparty. Derivatives Designated as Hedges The following table presents the amount of gain (loss) recognized in OCI on derivatives qualifying and designated as cash flow hedges: For the Six Months Ended June 30, 2018 2017 Interest rate swaps $ (24.6 ) $ 5.1 Foreign currency swaps 14.2 (27.7 ) Total $ (10.4 ) $ (22.6 ) See Note 10 for amounts reclassified out of AOCI into net income. The Company expects to reclassify net gains of $2.6 from AOCI into net income in the next 12 months. Actual amounts may vary from this estimate as a result of market conditions. As of June 30, 2018 , the maximum term over which the Company is hedging its exposure to the variability in future cash flows is approximately 22 years. For the six months ended June 30, 2018 and 2017 , net realized losses of $0.1 and $3.8 , respectively, were recognized related to hedge ineffectiveness. Derivatives Not Designated as Hedges The following table shows the effect of derivatives not designated as hedges in the consolidated statements of income, which is recorded in net realized losses: For the Six Months Ended June 30, 2018 2017 Embedded derivatives 14.6 (65.1 ) Index options $ (0.8 ) $ 65.4 Total return swaps (19.5 ) (4.3 ) Other derivatives — 1.7 Total $ (5.7 ) $ (2.3 ) |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 7. Fair Value of Financial Instruments The Company determines the fair value of its financial instruments based on the fair value hierarchy, which favors the use of observable inputs over the use of unobservable inputs. The Company has categorized its financial instruments into the three-level hierarchy, which gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The level assigned to a fair value measurement is based on the lowest-level input that is significant to the measurement. The fair value measurements for the Company's financial instruments are categorized as follows: • Level 1 — Unadjusted quoted prices in active markets for identical instruments. • Level 2 — Quoted prices for similar instruments in active markets and model-derived valuations whose inputs are observable. This category includes financial instruments that are valued using industry-standard pricing methodologies or models. All significant inputs are observable or derived from observable information in the marketplace. • Level 3 — Fair value estimates whose significant inputs are unobservable. This includes financial instruments for which fair value is estimated based on industry-standard pricing methodologies and internally developed models utilizing significant inputs not based on or corroborated by readily available market information. In limited circumstances, this may also utilize estimates based on non-binding broker quotes. The following tables present the fair value of the Company's financial instruments classified by the valuation hierarchy described above. The financial instruments are separated between those measured at fair value on a recurring basis and those not carried at fair value, but for which disclosure of fair value is required. As of December 31, 2017 Carrying Amount Fair Value Level 1 Level 2 Level 3 Measured at fair value on a recurring basis: Financial assets: Fixed maturities, available-for-sale: U.S. government and agencies $ 422.2 $ 422.2 $ — $ 422.2 $ — State and political subdivisions 792.4 792.4 — 792.4 — Corporate securities 23,932.2 23,932.2 — 23,731.4 200.8 Residential mortgage-backed securities 2,472.8 2,472.8 — 2,472.8 — Commercial mortgage-backed securities 795.7 795.7 — 795.6 0.1 Collateralized loan obligations 1,146.6 1,146.6 — 1,146.6 — Other debt obligations 719.4 719.4 — 677.9 41.5 Total fixed maturities, available-for-sale 30,281.3 30,281.3 — 30,038.9 242.4 Marketable equity securities, available-for-sale 755.7 755.7 722.6 26.8 6.3 Derivatives: Index options 261.9 261.9 — 222.4 39.5 Foreign currency swaps 75.5 75.5 — 75.5 — Other 1.7 1.7 0.2 1.5 — Total derivatives 339.1 339.1 0.2 299.4 39.5 Total investments carried at fair value 31,376.1 31,376.1 722.8 30,365.1 288.2 Separate account assets 978.1 978.1 978.1 — — Total assets at fair value $ 32,354.2 $ 32,354.2 $ 1,700.9 $ 30,365.1 $ 288.2 Financial liabilities: Embedded derivatives $ 797.5 $ 797.5 $ — $ — $ 797.5 Subject to fair value disclosure requirements: Financial assets: Mortgage loans $ 6,241.2 $ 6,180.8 $ — $ — $ 6,180.8 Investments in limited partnerships, tax credit investments (1) 173.0 135.1 — — 135.1 Cash and cash equivalents 347.5 347.5 347.5 — — Financial liabilities: Funds held under deposit contracts (2): Deferred annuities 20,128.3 19,943.3 — — 19,943.3 Income annuities 7,202.5 8,080.5 — — 8,080.5 _______________________ (1) Fair value includes obligations for future investment contributions of $32.8 , which is reflected as a liability on the consolidated balance sheets. (2) The carrying value of this balance excludes $8,015.1 of liabilities related to insurance contracts and embedded derivatives. As of December 31, 2016 Carrying Amount Fair Value Level 1 Level 2 Level 3 Measured at fair value on a recurring basis: Financial assets: Fixed maturities, available-for-sale: U.S. government and agencies $ 392.1 $ 392.1 $ — $ 392.1 $ — State and political subdivisions 930.8 930.8 — 930.8 — Corporate securities 21,769.0 21,769.0 — 21,712.0 57.0 Residential mortgage-backed securities 2,584.6 2,584.6 — 2,584.6 — Commercial mortgage-backed securities 916.8 916.8 — 915.9 0.9 Collateralized loan obligations 1,213.6 1,213.6 — 1,213.6 — Other debt obligations 505.1 505.1 — 497.5 7.6 Total fixed maturities, available-for-sale 28,312.0 28,312.0 — 28,246.5 65.5 Marketable equity securities, available-for-sale 717.4 717.4 684.6 26.9 5.9 Derivatives: Index options 161.7 161.7 — 154.7 7.0 Foreign currency swaps 141.9 141.9 — 141.9 — Other 3.7 3.7 — 3.7 — Total derivatives 307.3 307.3 — 300.3 7.0 Total investments carried at fair value 29,336.7 29,336.7 684.6 28,573.7 78.4 Separate account assets 911.4 911.4 911.4 — — Total assets at fair value $ 30,248.1 $ 30,248.1 $ 1,596.0 $ 28,573.7 $ 78.4 Financial liabilities: Embedded derivatives $ 532.4 $ 532.4 $ — $ — $ 532.4 Subject to fair value disclosure requirements: Financial assets: Mortgage loans $ 5,692.2 $ 5,538.2 $ — $ — $ 5,538.2 Investments in limited partnerships, tax credit investments (1) 195.2 204.0 — — 204.0 Cash and cash equivalents 326.3 326.3 326.3 — — Financial liabilities: Funds held under deposit contracts (2): Deferred annuities $ 18,566.6 $ 18,228.6 $ — $ — $ 18,228.6 Income annuities 7,336.6 7,678.4 — — 7,678.4 _______________________ (1) Fair value includes obligations for future investment contributions of $16.5 , which is reflected as a liability on the consolidated balance sheets. (2) The carrying value of this balance excludes $7,489.9 of liabilities related to insurance contracts and embedded derivatives. Financial Instruments Measured at Fair Value on a Recurring Basis Fixed Maturities The vast majority of the Company's fixed maturities have been classified as Level 2 measurements. To make this assessment, the Company determines whether the market for a security is active and if significant pricing inputs are observable. The Company predominantly utilizes third-party independent pricing services to assist management in determining the fair value of its fixed maturity securities. As of December 31, 2017 and 2016 , pricing services provided prices for 94.4% and 94.7% , respectively, of the Company's fixed maturities. As of December 31, 2017 , the Company had $1,509.0 , or 5.0% , of its fixed maturities invested in private placement securities. These securities were generally valued using a composite of observed comparable public securities as well as reference yield curves. The yield curves are determined based on industry, credit quality, seniority rank in the capital structure, and residual spreads determined by the Company's independent pricing service for each security. The residual spreads are considered unobservable inputs and classified as a Level 3 measurement when they are significant to the valuation result. When only observable inputs are significant to the valuation result, they are classified as Level 2 measurements. The use of only significant observable inputs in determining the fair value of the Company's investments in private placement securities resulted in the classification of $1,325.9 , or 87.9% , as Level 2 measurements as of December 31, 2017 . As of December 31, 2016 , the Company had $1,362.5 , or 4.8% , of its fixed maturities invested in private placement securities, of which $1,318.3 , or 96.8% , were classified as Level 2 measurements. Corporate Securities The majority of corporate securities classified as Level 2 measurements are priced by independent pricing services utilizing evaluated pricing models. Because many corporate securities do not trade on a daily basis, evaluated pricing models apply available information through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing to prepare valuations. The significant inputs for security evaluations include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and other reference data, including market research publications. Residential Mortgage-backed Securities The Company's residential mortgage-backed securities (RMBS) classified as Level 2 measurements are priced by pricing services that utilize evaluated pricing models. Because many RMBS do not trade on a daily basis, evaluated pricing models apply available information through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing to prepare evaluations. The significant observable inputs for security evaluations include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and other reference data, including market research publications. In addition, the pricing services use models and processes to develop prepayment and interest rate scenarios. The pricing services monitor market indicators, industry and economic events, and their models take into account market convention. Marketable Equity Securities Marketable equity securities are investments in common stock (mainly in publicly traded companies), ETFs, and certain nonredeemable preferred stocks. When the fair values of the Company's marketable equity securities are based on quoted market prices in active markets for identical assets, they are classified as Level 1 measurements. The fair values of nonredeemable preferred stocks are determined by pricing services utilizing evaluated pricing models and are classified as a Level 2 measurement. These valuations are created based on benchmark curves using industry standard inputs and exchange prices of underlying securities and common stock of the same issuer. Index Options Index options consist primarily of Standard & Poor's 500 Index ® (S&P 500) options. The fair values of these index options were determined using option pricing models. Significant inputs include index implied volatilities, index dividend yields, index prices, a risk-free rate, option term and option strike price. As these inputs are observable, most index options are classified as a Level 2 measurement. Foreign Currency Swaps Foreign currency swaps are valued using an income approach. These swaps are priced using a discounted cash flow model. The significant inputs include the projected cash flows, currency spot rates, swap yield curve and cross currency basis curve. As these inputs are observable, the foreign currency swaps valuation is classified as a Level 2 measurement. Separate Accounts Separate account assets are primarily invested in mutual funds with published NAVs, which are classified as a Level 1 measurement. Embedded Derivatives Embedded derivatives relate to the Company's FIA product, which credits interest to the policyholder's account balance based on increases in selected indices, primarily the S&P 500. The fair value of the embedded derivative reflects the excess of the projected benefits based on the indexed fund value over the projected benefits based on the guaranteed fund value. The excess benefits are projected using best estimates for surrenders, mortality and indexed fund interest, and discounted at a risk-free rate plus a spread for nonperformance and policyholder behavior risk. Because the estimates utilize significant unobservable inputs, the Company classifies the valuation of embedded derivatives as a Level 3 measurement. The Company updates its estimates regarding projected benefits during the third quarter each year as part of its annual unlocking of various assumptions used to determine the fair value. This resulted in a $28.9 and $15.6 decrease to the fair value of the embedded derivative for 2017 and 2016, respectively, which was recorded as a gain in net realized gains (losses). Other Financial Instruments Subject to Fair Value Disclosure Requirements Cash and cash equivalents consist of demand bank deposits and short-term highly liquid investments with original maturities of three months or less at the time of purchase. These are classified as a Level 1 measurement. The fair value of the Company’s mortgage loans is measured by discounting the projected future cash flows using the current rate at which the loans would be made to borrowers with similar credit ratings and for the same maturities. Because these estimates utilize significant unobservable inputs, mortgage loans are classified as a Level 3 measurement. The fair value of the Company’s investments in limited partnerships associated with tax credit investments is estimated based on the discounted future economic benefits over the remaining life of each investment, using a market rate of return based on similar investments observed by brokers. The future economic benefits are based on assumptions about the partnerships' future performance and related tax benefits passed through to the Company, net of the Company's obligations to make future investment contributions. Because these estimates utilize significant unobservable inputs, investments in limited partnerships are classified as a Level 3 measurement. The fair value of funds held under deposit contracts related to investment-type contracts is estimated based on the present value of the discounted cash flows. Cash flows were projected using best estimates for lapses, mortality and expenses, and discounted at a risk-free rate plus a spread for nonperformance and policyholder behavior risk. Because these estimates utilize significant unobservable inputs, the Company classifies funds held under deposit contracts as a Level 3 measurement. Rollforward of Financial Instruments Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) The following tables present additional information about financial instruments measured at fair value on a recurring basis and for which the Company has utilized significant unobservable inputs (Level 3) to determine fair value for the year ended December 31, 2017 (Successor Company): Unrealized Gains (Losses) Included in: Balance as of January 1, 2017 Purchases and Issues(1) Sales and Settlements(1) Transfers In and/or (Out) of Level 3(2) Other(3) Net Income(4) Other Comprehensive Income (5) Realized Gains (Losses)(4) Balance as of December 31, 2017 Financial Assets: Fixed maturities, available-for-sale: Corporate securities $ 57.0 $ 87.9 $ — $ 57.2 $ (9.0 ) $ — $ 7.8 $ (0.1 ) $ 200.8 Commercial mortgage-backed securities 0.9 — — — (0.8 ) — — — 0.1 Other debt obligations 7.6 — — 28.7 0.7 — 4.5 — 41.5 Total fixed maturities, available-for-sale 65.5 87.9 — 85.9 (9.1 ) — 12.3 (0.1 ) 242.4 Marketable equity securities, available-for-sale 5.9 — — 0.1 — — 0.3 — 6.3 Derivatives: Index options 7.0 22.7 — — (14.5 ) 26.0 — (1.7 ) 39.5 Other — 0.9 — — (0.6 ) — — (0.3 ) — Total derivatives 7.0 23.6 — — (15.1 ) 26.0 — (2.0 ) 39.5 Total Level 3 assets $ 78.4 $ 111.5 $ — $ 86.0 $ (24.2 ) $ 26.0 $ 12.6 $ (2.1 ) $ 288.2 Financial Liabilities: Embedded derivatives $ 532.4 $ 162.6 $ (8.0 ) $ — $ (8.1 ) $ 118.6 $ — $ — $ 797.5 _______________ (1) Issues and settlements are related to the Company's embedded derivative liabilities. (2) Transfers into Level 3 are generally the result of observable market information on a security no longer being available or utilized by pricing vendors. Transfers into and/or out of Level 3 are reported at the value as of the beginning of the period in which the transfer occurs. Gross transfers into Level 3 were $86.0 for the year ended December 31, 2017 . Gross transfers out of Level 3 were $0.0 for the year ended December 31, 2017 . (3) Other includes transactions such as pay downs, calls, amortization, and redemptions. (4) Amounts are included in net realized gains (losses) on the consolidated statements of income (loss). Amounts shown for financial liabilities are (gains) losses in net income. (5) Amounts are generally included in changes in unrealized gains (losses) on available-for-sale securities on the consolidated statements of comprehensive income. The following tables present additional information about financial instruments measured at fair value on a recurring basis and for which the Company has utilized significant unobservable inputs (Level 3) to determine fair value for the period February 1 through December 31, 2016 (Successor Company): Unrealized Gains (Losses) Included in: Balance as of February 1, 2016 Purchases and Issues(1) Sales and Settlements(1) Transfers In and/or (Out) of Level 3(2) Other(3) Net Income(4) Other Comprehensive Income (5) Realized Gains (Losses)(4) Balance as of December 31, 2016 Financial Assets: Fixed maturities, available-for-sale: Corporate securities $ 50.0 $ 13.0 $ — $ 2.6 $ (8.4 ) $ — $ (0.9 ) $ 0.7 $ 57.0 Commercial mortgage-backed securities 1.2 — — — (0.3 ) — — — 0.9 Collateralized loan obligations 10.0 — — (10.0 ) — — — — — Other debt obligations 43.4 — — (36.1 ) 0.6 — (0.3 ) — 7.6 Total fixed maturities, available-for-sale 104.6 13.0 — (43.5 ) (8.1 ) — (1.2 ) 0.7 65.5 Marketable equity securities, available-for-sale 6.1 — (0.2 ) — 0.3 — (0.3 ) — 5.9 Derivatives: Index options 3.3 9.9 — — (4.7 ) (0.9 ) — (0.6 ) 7.0 Other — 1.1 — — — — — (1.1 ) — Total derivatives 3.3 11.0 — — (4.7 ) (0.9 ) — (1.7 ) 7.0 Total Level 3 assets $ 114.0 $ 24.0 $ (0.2 ) $ (43.5 ) $ (12.5 ) $ (0.9 ) $ (1.5 ) $ (1.0 ) $ 78.4 Financial Liabilities: Embedded derivatives $ 334.9 $ 119.2 $ (6.2 ) $ — $ — $ 84.5 $ — $ — $ 532.4 _______________ (1) Issues and settlements are related to the Company's embedded derivative liabilities. (2) Transfers into and/or out of Level 3 are reported at the value as of the beginning of the period in which the transfer occurs. Gross transfers into Level 3 were $11.0 for the period February 1 through December 31, 2016 . Gross transfers out of Level 3 were $54.5 for the period February 1 through December 31, 2016 , of which most were related to fixed maturities for which observable inputs became available. (3) Other includes transactions such as pay downs, calls, amortization and redemptions. (4) Amounts are included in net realized gains (losses) on the consolidated statements of income (loss). Amounts shown for financial liabilities are (gains) losses in net income. (5) Amounts are generally included in changes in unrealized gains (losses) on available-for-sale securities on the consolidated statements of comprehensive income. The following table presents additional information about financial instruments measured at fair value on a recurring basis and for which the Company has utilized significant unobservable inputs (Level 3) to determine fair value for the period January 1 to January 31, 2016 (Predecessor Company): Unrealized Gains (Losses) Included in: Balance as of January 1, 2016 Purchases Sales Transfers In and/or (Out) of Level 3(2) Other(3) Net Other Realized Balance as of January 31, 2016 Financial Assets: Fixed maturities, available-for-sale: Corporate securities $ 47.8 $ 8.1 $ — $ (5.1 ) $ — $ — $ (0.8 ) $ — $ 50.0 Commercial mortgage-backed securities 1.2 — — — — — — — 1.2 Collateralized loan obligations 89.6 10.0 — (89.6 ) — — — — 10.0 Other debt obligations 42.5 — — — — — 0.9 — 43.4 Total fixed maturities, available-for-sale 181.1 18.1 — (94.7 ) — — 0.1 — 104.6 Marketable equity securities, available-for-sale 5.9 — — — — — — — 5.9 Marketable equity securities, trading 0.2 — — — — — — — 0.2 Derivatives: Index options 3.7 0.4 — — — (0.7 ) — (0.1 ) 3.3 Other 0.1 — — — (1.1 ) 0.1 — 0.9 — Total derivatives 3.8 0.4 — — (1.1 ) (0.6 ) — 0.8 3.3 Total Level 3 assets $ 191.0 $ 18.5 $ — $ (94.7 ) $ (1.1 ) $ (0.6 ) $ 0.1 $ 0.8 $ 114.0 Financial Liabilities: Embedded derivatives $ 385.7 $ 16.2 $ (1.0 ) $ — $ — $ (29.4 ) $ — $ — $ 371.5 _______________ (1) Issues and settlements are related to the Company's embedded derivative liabilities. (2) Transfers into and/or out of Level 3 are reported at the value as of the beginning of the period in which the transfer occurs. Gross transfers into Level 3 were $0.0 for the period January 1 to January 31, 2016 . Gross transfers out of Level 3 were $94.7 for the period January 1 to January 31, 2016 , which related to fixed maturities for which observable inputs became available. (3) Other includes transactions such as pay downs, calls, amortization and redemptions. (4) Amounts are included in net realized gains (losses) on the consolidated statements of income (loss). Amounts shown for financial liabilities are (gains) losses in net income. (5) Amounts are generally included in changes in unrealized gains (losses) on available-for-sale securities on the consolidated statements of comprehensive income. 7. Fair Value of Financial Instruments The Company determines the fair value of its financial instruments based on the fair value hierarchy, which favors the use of observable inputs over the use of unobservable inputs. The Company has categorized its financial instruments into the three-level hierarchy, which gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The level assigned to a fair value measurement is based on the lowest-level input that is significant to the measurement. The fair value measurements for the Company's financial instruments are categorized as follows: • Level 1 — Unadjusted quoted prices in active markets for identical instruments. • Level 2 — Quoted prices for similar instruments in active markets and model-derived valuations whose inputs are observable. This category includes financial instruments that are valued using industry-standard pricing methodologies or models. All significant inputs are observable or derived from observable information in the marketplace. • Level 3 — Fair value estimates whose significant inputs are unobservable. This includes financial instruments for which fair value is estimated based on industry-standard pricing methodologies and internally developed models utilizing significant inputs not based on or corroborated by readily available market information. In limited circumstances, this may also utilize estimates based on non-binding broker quotes. The following tables present the fair value of the Company's financial instruments classified by the valuation hierarchy described above. The financial instruments are separated between those measured at fair value on a recurring basis and those not carried at fair value, but for which disclosure of fair value is required. As of June 30, 2018 Carrying Fair Value Level 1 Level 2 Level 3 Measured at fair value on a recurring basis: Financial assets: Fixed maturities, available-for-sale: U.S. government and agencies $ 297.3 $ 297.3 $ — $ 297.3 $ — State and political subdivisions 746.9 746.9 — 746.9 — Corporate securities 23,934.4 23,934.4 — 23,611.4 323.0 Residential mortgage-backed securities 2,426.2 2,426.2 — 2,426.2 — Commercial mortgage-backed securities 755.6 755.6 — 728.7 26.9 Collateralized loan obligations 1,105.5 1,105.5 — 1,056.2 49.3 Other debt obligations 858.6 858.6 — 818.8 39.8 Total fixed maturities, available-for-sale 30,124.5 30,124.5 — 29,685.5 439.0 Marketable equity securities 708.6 708.6 676.6 25.8 6.2 Derivatives: Index options 207.2 207.2 — 183.6 23.6 Foreign currency swaps 86.6 86.6 — 86.6 — Other 1.0 1.0 — 1.0 — Total derivatives 294.8 294.8 — 271.2 23.6 Total investments carried at fair value 31,127.9 31,127.9 676.6 29,982.5 468.8 Separate account assets 999.4 999.4 999.4 — — Total assets at fair value $ 32,127.3 $ 32,127.3 $ 1,676.0 $ 29,982.5 $ 468.8 Financial liabilities: Embedded derivatives $ 857.8 $ 857.8 $ — $ — $ 857.8 Subject to fair value disclosure requirements: Financial assets: Mortgage loans $ 6,285.0 $ 6,054.8 $ — $ — $ 6,054.8 Investments in limited partnerships, tax credit investments (1) 150.0 128.5 — — 128.5 Cash and cash equivalents 435.0 435.0 435.0 — — Financial liabilities: Funds held under deposit contracts (2): Deferred annuities 20,810.0 20,029.6 — — 20,029.6 Income annuities 7,149.1 7,347.3 — — 7,347.3 _______________________ (1) Fair value includes obligations for future investment contributions of $16.5 , which is reflected as a liability on the consolidated balance sheets. (2) The carrying value of this balance excludes $8,240.0 of liabilities related to insurance contracts and embedded derivatives. As of December 31, 2017 Carrying Fair Value Level 1 Level 2 Level 3 Measured at fair value on a recurring basis: Financial assets: Fixed maturities, available-for-sale: U.S. government and agencies $ 422.2 $ 422.2 $ — $ 422.2 $ — State and political subdivisions 792.4 792.4 — 792.4 — Corporate securities 23,932.2 23,932.2 — 23,731.4 200.8 Residential mortgage-backed securities 2,472.8 2,472.8 — 2,472.8 — Commercial mortgage-backed securities 795.7 795.7 — 795.6 0.1 Collateralized loan obligations 1,146.6 1,146.6 — 1,146.6 — Other debt obligations 719.4 719.4 — 677.9 41.5 Total fixed maturities, available-for-sale 30,281.3 30,281.3 — 30,038.9 242.4 Marketable equity securities 755.7 755.7 722.6 26.8 6.3 Derivatives: Index options 261.9 261.9 — 222.4 39.5 Foreign currency swaps 75.5 75.5 — 75.5 — Other 1.7 1.7 0.2 1.5 — Total derivatives 339.1 339.1 0.2 299.4 39.5 Total investments carried at fair value 31,376.1 31,376.1 722.8 30,365.1 288.2 Separate account assets 978.1 978.1 978.1 — — Total assets at fair value $ 32,354.2 $ 32,354.2 $ 1,700.9 $ 30,365.1 $ 288.2 Financial liabilities: Embedded derivatives $ 797.5 $ 797.5 $ — $ — $ 797.5 Subject to fair value disclosure requirements: Financial assets: Mortgage loans $ 6,241.2 $ 6,180.8 $ — $ — $ 6,180.8 Investments in limited partnerships, tax credit investments (1) 173.0 135.1 — — 135.1 Cash and cash equivalents 347.5 347.5 347.5 — — Financial liabilities: Funds held under deposit contracts (2): Deferred annuities $ 20,128.3 $ 19,943.3 $ — $ — $ 19,943.3 Income annuities 7,202.5 8,080.5 — — 8,080.5 _______________________ (1) Fair value includes obligations for future investment contributions of $32.8 , which is reflected as a liability on the consolidated balance sheets. (2) The carrying value of this balance excludes $8,015.1 of liabilities related to insurance contracts and embedded derivatives. Financial Instruments Measured at Fair Value on a Recurring Basis Fixed Maturities The vast majority of the Company's fixed maturities have been classified as Level 2 measurements. To make this assessment, the Company determines whether the market for a security is active and if significant pricing inputs are observable. The Company predominantly utilizes third-party independent pricing services to assist management in determining the fair value of its fixed maturity securities. As of June 30, 2018 and December 31, 2017 , pricing services provided prices for 94.1% and 94.4% , respectively, of the Company's fixed maturities. As of June 30, 2018 , the Company had $1,539.3 , or 5.1% , of its fixed maturities invested in private placement securities. These securities were generally valued using a composite of observed comparable public securities as well as reference yield curves. The yield curves are determined based on industry, credit quality, seniority rank in the capital structure, and residual spreads determined by the Company's independent pricing service for each security. The residual spreads are considered unobservable inputs and classified as a Level 3 measurement when they are significant to the valuation result. When only observable inputs are significant to the valuation result, they are classified as Level 2 measurements. The use of only significant observable inputs in determining the fair value of the Company's investments in private placement securities resulted in the classification of $1,234.0 , or 80.2% , as Level 2 measurements as of June 30, 2018 . As of December 31, 2017 , the Company had $1,509.0 , or 5.0% , of its fixed maturities invested in private placement securities, of which $1,325.9 , or 87.9% , were classified as Level 2 measurements. Corporate Securities The majority of corporate securities classified as Level 2 measurements are priced by independent pricing services utilizing evaluated pricing models. Because many corporate securities do not trade on a daily basis, evaluated pricing models apply available information through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing to prepare valuations. The significant inputs for security evaluations include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and other reference data, including market research publications. Residential Mortgage-backed Securities The Company's residential mortgage-backed securities (RMBS) classified as Level 2 measurements are priced by pricing services that utilize evaluated pricing models. Because many RMBS do not trade on a daily basis, evaluated pricing models apply available information through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing to prepare evaluations. The significant observable inputs for security evaluations include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and other reference data, including market research publications. In addition, the pricing services use models and processes to develop prepayment and interest rate scenarios. The pricing services monitor market indicators, industry and economic events, and their models take into account market convention. Marketable Equity Securities Marketable equity securities are investments in common stock (mainly in publicly traded companies), ETFs, and certain nonredeemable preferred stocks. When the fair values of the Company's marketable equity securities are based on quoted market prices in active markets for identical assets, they are classified as Level 1 measurements. The fair values of nonredeemable preferred stocks are determined by pricing services utilizing evaluated pricing models and are classified as a Level 2 measurement. These valuations are created based on benchmark curves using industry standard inputs and exchange prices of underlying securities and common stock of the same issuer. Index Options Index options consist primarily of Standard & Poor's 500 Index ® (S&P 500) options. The fair values of these index options were determined using option pricing models. Significant inputs include index implied volatilities, index dividend yields, index prices, a risk-free rate, option term and option strike price. As these inputs are observable, most index options are classified as a Level 2 measurement. Foreign Currency Swaps Foreign currency swaps are valued using an income approach. These swaps are priced using a discounted cash flow model. The significant inputs include the projected cash flows, currency spot rates, swap yield curve and cross currency basis curve. As these inputs are observable, the foreign currency swaps valuation is classified as a Level 2 measurement. Separate Accounts Separate account assets are primarily invested in mutual funds with published NAVs, which are classified as a Level 1 measurement. Embedded Derivatives Embedded derivatives relate to the Company's FIA product, which credits interest to the policyholder's account balance based on increases in selected indices, primarily the S&P 500. The fair value of the embedded derivative reflects the excess of the projected benefits based on the indexed fund value over the projected benefits based on the guaranteed fund value. The excess benefits are projected using best estimates for surrenders, mortality and indexed fund interest, and discounted at a risk-free rate plus a spread for nonperformance and policyholder behavior risk. Because the estimates utilize significant unobservable inputs, the Company classifies the valuation of embedded derivatives as a Level 3 measurement. Rollforward of Financial Instruments Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) The following tables present additional information about financial instruments measured at fair value on a recurring basis and for which the Company has utilized significant unobservable inputs (Level 3) to determine fair value for the six months ended June 30, 2018 : Unrealized Gains (Losses) Included in: Balance as of January 1, 2018 Purchases and Issues(1) Sales and Settlements(1) Transfers In and/or (Out) of Level 3(2) Other(3) Net Income(4) Other Comprehensive Income (5) Realized Gains (Losses)(4) Balance a |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs (DAC) and Value of Business Acquired (VOBA) | 6 Months Ended |
Jun. 30, 2018 | |
Insurance [Abstract] | |
Deferred Policy Acquisition Costs (DAC) and Value of Business Acquired (VOBA) | 8. Deferred Policy Acquisition Costs (DAC) and Value of Business Acquired (VOBA) The Company defers costs that are directly related to the successful acquisition or renewal of insurance contracts. These primarily include commissions, distribution costs directly related to sales, third-party underwriting costs and the portion of salaries and benefits directly related to processing successful new and renewal contracts. All other acquisition-related costs, including costs incurred for soliciting potential customers, managing the distribution and underwriting functions, training, administration, unsuccessful acquisition or renewal efforts, market research and product development are not deferrable and are expensed in the period incurred. On the date of the Merger, the Company's DAC balance was reset to zero, and a balance for VOBA was established, representing the right to receive future gross profits from cash flows and earnings of the Company's existing business. VOBA was based on the actuarially estimated present value of future cash flows from the Company's insurance policies and annuity contracts in-force on the date of the Merger. The estimated present value of future cash flows used in the calculation of VOBA was based on certain assumptions, including lapse rates, mortality experience, maintenance expenses, crediting rates, and investment performance that the Company expects to experience in future years. The Company amortizes DAC and VOBA for deferred annuity contracts and universal life insurance policies over the lives of the contracts or policies in proportion to the estimated future gross profits. To estimate future gross profits, the Company makes assumptions as to lapse rates, mortality experience, maintenance expenses, crediting rates, and investment performance. Actual profits can vary from the estimates and can thereby result in increases or decreases to DAC and VOBA amortization. The Company regularly evaluates its assumptions and, when necessary, revises the estimated gross profits of these contracts, resulting in assumption and experience unlocking adjustments to DAC and VOBA amortization recorded in the consolidated statements of income (loss). The Company amortizes acquisition costs for traditional individual life insurance policies over the premium paying period of the related policies, using assumptions consistent with those used in computing policy reserves. The Company amortizes acquisition costs for immediate annuities using a constant yield approach. The Company adjusts the unamortized DAC and VOBA balances for the effect of net unrealized gains and losses on securities as if they had been realized as of the balance sheet date. The Company includes the impact of this adjustment, net of tax, in AOCI. The Company also adjusts its unamortized DAC and VOBA balances for the effect of realized gains and losses including changes in fair value of the embedded derivatives for the Company's FIA policies. These adjustments are recognized in net realized gains (losses) in the consolidated statements of income (loss). For some products, policyholders can elect to modify product benefits, features, rights or coverage by exchanging a contract for a new contract; by amendment, endorsement or rider to a contract; or by election of a feature or coverage within a contract. These transactions are known as internal replacements. If the modification substantially changes the original contract, the remaining DAC balance is immediately written off through earnings and any eligible costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC is retained and amortized over the life of the modified contract and any acquisition costs associated with the related modification are expensed as incurred. The following table provides a reconciliation of the beginning and ending balance for DAC: Successor Predecessor For the Year Ended February 1 to January 1 to For the Year Ended Unamortized balance at beginning of period $ 202.8 $ — $ 677.5 $ 513.9 Deferral of acquisition costs 239.9 215.4 19.6 247.7 Adjustments for realized (gains) losses (1) (4.6 ) (1.6 ) (0.4 ) 6.0 Amortization — excluding unlocking (30.9 ) (9.9 ) (8.4 ) (86.4 ) Amortization — impact of unlocking (1) — (1.1 ) (0.2 ) (3.7 ) Unamortized balance at end of period 407.2 202.8 688.1 677.5 Accumulated effect of net unrealized gains (21.0 ) (3.4 ) (41.0 ) (11.4 ) Balance at end of period $ 386.2 $ 199.4 $ 647.1 $ 666.1 ___________________ (1) Includes the impact of the Company's annual unlocking process, which takes place during the third quarter of each year. Amortization also includes the impact of assumption and experience unlocking related to quarterly investment prepayment activity. The following table provides a reconciliation of the beginning and ending balance for VOBA: Successor For the Year Ended February 1 to Unamortized balance at beginning of period $ 413.4 $ 457.6 Adjustments related to realized (gains) losses (1) (11.9 ) 4.5 Amortization — excluding unlocking (41.8 ) (40.7 ) Amortization — impact of unlocking (1) (1.6 ) (8.0 ) Unamortized balance at end of period 358.1 413.4 Accumulated effect of net unrealized gains (48.1 ) (16.1 ) Balance at end of period $ 310.0 $ 397.3 ___________________ (1) Includes the impact of the Company's annual unlocking process, which takes place during the third quarter of each year. Amortization also includes the impact of assumption and experience unlocking related to quarterly investment prepayment activity. The following table sets forth the estimated future VOBA amortization expense, net of interest, for the next 5 years, based on the balance recorded as of December 31, 2017: Year Amount 2018 $ 38.0 2019 36.0 2020 33.0 2021 29.8 2022 26.2 8. Deferred Policy Acquisition Costs (DAC) and Value of Business Acquired (VOBA) The following table provides a reconciliation of the beginning and ending balance for DAC: For the Six Months Ended June 30, 2018 2017 Unamortized balance at beginning of period $ 407.2 $ 202.8 Deferral of acquisition costs 134.0 134.4 Adjustments for realized (gains) losses (1) (6.0 ) (0.9 ) Amortization — excluding unlocking (1.6 ) (13.1 ) Amortization — impact of unlocking (1) (0.9 ) (1.2 ) Unamortized balance at end of period 532.7 322.0 Accumulated effect of net unrealized (gains) losses 32.8 (21.7 ) Balance at end of period $ 565.5 $ 300.3 ___________________ (1) Includes the impact of assumption and experience unlocking related to quarterly investment prepayment activity. The following table provides a reconciliation of the beginning and ending balance for VOBA: For the Six Months Ended June 30, 2018 2017 Unamortized balance at beginning of period $ 358.1 $ 413.4 Adjustments related to realized (gains) losses (1) (1.6 ) (0.2 ) Amortization — excluding unlocking (21.6 ) (22.3 ) Amortization — impact of unlocking (1) (2.1 ) (4.1 ) Unamortized balance at end of period 332.8 386.8 Accumulated effect of net unrealized (gains) losses 62.5 (70.8 ) Balance at end of period $ 395.3 $ 316.0 ___________________ (1) Includes the impact of assumption and experience unlocking related to quarterly investment prepayment activity. |
Stockholder's Equity
Stockholder's Equity | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Stockholder's Equity | 9. Stockholder's Equity Components of AOCI primarily relate to unrealized gains (losses) on the Company's available-for-sale securities and derivatives designated as cash flow hedges, as well as the related adjustments to DAC and VOBA. These amounts are reported net of deferred taxes. The tax effects are released from AOCI into income tax expense (benefit) when the underlying amounts are reclassified to income, typically when the related instrument is sold, terminated or otherwise extinguished. The following tables summarize the components of AOCI and the adjustments to OCI for amounts reclassified from AOCI into net income for the year ended December 31, 2017 (Successor Company): Net Unrealized OTTI on Fixed Adjustment Net Gains (Losses) on Cash Flow Hedges Accumulated Balance as of January 1, 2017 $ 137.6 $ (0.2 ) $ (14.0 ) $ 17.7 $ 141.1 Other comprehensive income (loss) before reclassifications, net of taxes (1) 432.9 (0.1 ) (52.7 ) (44.5 ) 335.6 Reclassifications recorded in: Net investment income: Interest rate swaps — — — 0.1 0.1 Foreign currency swaps — — — (2.7 ) (2.7 ) Net realized (gains) losses (32.9 ) — 16.6 7.8 (8.5 ) Total provision (benefit) for income taxes 11.5 — (5.8 ) (1.8 ) 3.9 Total reclassifications from AOCI, net of taxes (21.4 ) — 10.8 3.4 (7.2 ) Other comprehensive income (loss) after reclassifications 411.5 (0.1 ) (41.9 ) (41.1 ) 328.4 Adoption of new accounting standard (3) 93.6 — (7.7 ) (4.3 ) 81.6 Balance as of December 31, 2017 $ 642.7 $ (0.3 ) $ (63.6 ) $ (27.7 ) $ 551.1 ___________________ (1) Other comprehensive income (loss) before reclassifications is net of taxes of $201.9 , $0.0 , $(22.8) , $(23.0) , and $156.1 , respectively, for the year ended December 31, 2017 . Tax effects in OCI are calculated based on the applicable enacted tax rate at the time gains (losses) are incurred. (2) Reclassification adjustments of OTTI on fixed maturities not related to credit losses are included in changes in unrealized gains and losses on available-for-sale securities within the consolidated statements of comprehensive income. (3) Accounting Standards Update No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. Refer to Note 2 for further discussion. The following tables summarize the components of AOCI and the adjustments to OCI for amounts reclassified from AOCI into net income for the period February 1 to December 31, 2016 (Successor Company): Net Unrealized OTTI on Fixed Adjustment Net Gains (Losses) on Cash Flow Hedges Accumulated Balance as of February 1, 2016 $ — $ — $ — $ — $ — Other comprehensive income (loss) before reclassifications, net of taxes (1) 128.6 (0.3 ) (11.5 ) 28.3 145.1 Reclassifications recorded in: Net investment income: Interest rate swaps — — — (6.6 ) (6.6 ) Foreign currency swaps — — — (9.0 ) (9.0 ) Net realized (gains) losses 13.8 0.1 (3.7 ) (0.8 ) 9.4 Total provision (benefit) for income taxes (4.8 ) — 1.2 5.8 2.2 Total reclassifications from AOCI, net of taxes 9.0 0.1 (2.5 ) (10.6 ) (4.0 ) Other comprehensive income (loss) after reclassifications 137.6 (0.2 ) (14.0 ) 17.7 141.1 Balance as of December 31, 2016 $ 137.6 $ (0.2 ) $ (14.0 ) $ 17.7 $ 141.1 ___________________ (1) Other comprehensive income (loss) before reclassifications is net of taxes of $69.3 , $(0.1) , $(6.3) , $15.3 , and $78.2 , respectively, for the period February 1 to December 31, 2016 . (2) Reclassification adjustments of OTTI on fixed maturities not related to credit losses are included in changes in unrealized gains and losses on available-for-sale securities within the consolidated statements of comprehensive income. The following table summarizes the components of AOCI and the adjustments to OCI for amounts reclassified from AOCI into net income for the period January 1 to January 31, 2016 (Predecessor Company): Net Unrealized Gains (Losses) on Available-for- sale Securities OTTI on Fixed Maturities not related to Credit Losses (2) Adjustment for DAC Net Gains (Losses) on Cash Flow Hedges Accumulated Balance as of January 1, 2016 $ 521.7 $ (17.7 ) $ (28.1 ) $ 42.2 $ 518.1 Other comprehensive income (loss) before reclassifications, net of taxes (1) 111.6 — (24.7 ) 26.2 113.1 Reclassifications recorded in: Net investment income: Interest rate swaps — — — (0.6 ) (0.6 ) Foreign currency swaps — — — (1.0 ) (1.0 ) Net realized (gains) losses 2.6 — 0.5 — 3.1 Total provision (benefit) for income taxes (0.9 ) — (0.2 ) 0.6 (0.5 ) Total reclassifications from AOCI, net of taxes 1.7 — 0.3 (1.0 ) 1.0 Other comprehensive income (loss) after reclassifications 113.3 — (24.4 ) 25.2 114.1 Balance as of January 31, 2016 $ 635.0 $ (17.7 ) $ (52.5 ) $ 67.4 $ 632.2 ___________________ (1) Other comprehensive income (loss) before reclassifications is net of taxes of $60.1 , $0.0 , $(13.3) , $14.2 , and $61.0 , respectively, for the period January 1 to January 31, 2016. (2) Reclassification adjustments of OTTI on fixed maturities not related to credit losses are included in changes in unrealized gains and losses on available-for-sale securities within the consolidated statements of comprehensive income. The following table summarizes the components of AOCI and the adjustments to OCI for amounts reclassified from AOCI into net income for the year ended December 31, 2015 (Predecessor Company): Net Unrealized Gains (Losses) on Available-for- sale Securities OTTI on Fixed Maturities not related to Credit Losses (2) Adjustment for DAC Net Gains (Losses) on Cash Flow Hedges Accumulated Balance as of January 1, 2015 $ 1,127.8 $ (13.5 ) $ (131.4 ) $ 6.5 $ 989.4 Other comprehensive income (loss) before reclassifications, net of taxes (1) (641.2 ) (11.4 ) 108.0 42.3 (502.3 ) Reclassifications recorded in: Net investment income: Interest rate swaps — — — (4.6 ) (4.6 ) Foreign currency swaps — — — (5.5 ) (5.5 ) Net realized (gains) losses 54.0 11.1 (7.2 ) — 57.9 Total provision (benefit) for income taxes (18.9 ) (3.9 ) 2.5 3.5 (16.8 ) Total reclassifications from AOCI, net of taxes 35.1 7.2 (4.7 ) (6.6 ) 31.0 Other comprehensive income (loss) after reclassifications (606.1 ) (4.2 ) 103.3 35.7 (471.3 ) Balance as of December 31, 2015 $ 521.7 $ (17.7 ) $ (28.1 ) $ 42.2 $ 518.1 ___________________ (1) Other comprehensive income (loss) before reclassifications is net of taxes of $(345.3) , $(6.1) , $58.2 , $22.8 , and $(270.4) , respectively, for the year ended December 31, 2015. (2) Reclassification adjustments of OTTI on fixed maturities not related to credit losses are included in changes in unrealized gains and losses on available-for-sale securities within the consolidated statements of comprehensive income. 10. Stockholder's Equity The following tables summarize the components of AOCI and the adjustments to OCI for amounts reclassified from AOCI into net income for the six months ended June 30, 2018 : Net Unrealized OTTI on Fixed Adjustment Net Gains (Losses) on Cash Flow Hedges Accumulated Other Comprehensive Income (Loss) Balance as of January 1, 2018 $ 642.7 $ (0.3 ) $ (63.6 ) $ (27.7 ) $ 551.1 Other comprehensive income (loss) before reclassifications, net of taxes (1) (847.5 ) — 144.3 (8.3 ) (711.5 ) Reclassifications recorded in: Net investment income: Interest rate swaps — — — 1.7 1.7 Foreign currency swaps — — — (3.1 ) (3.1 ) Net realized (gains) losses 9.5 — 7.2 5.2 21.9 Total provision (benefit) for income taxes (2.0 ) — (1.5 ) (0.8 ) (4.3 ) Total reclassifications from AOCI, net of taxes 7.5 — 5.7 3.0 16.2 Other comprehensive income (loss) after reclassifications (840.0 ) — 150.0 (5.3 ) (695.3 ) Adoption of new accounting standard (3) (114.3 ) — — — (114.3 ) Balance as of June 30, 2018 $ (311.6 ) $ (0.3 ) $ 86.4 $ (33.0 ) $ (258.5 ) ___________________ (1) Other comprehensive income (loss) before reclassifications is net of taxes of $(225.3) , $0.0 , $38.4 , $(2.2) , and $(189.1) , respectively, for the six months ended June 30, 2018 . Tax effects in OCI are calculated based on the applicable enacted tax rate at the time gains (losses) are incurred. (2) Reclassification adjustments of OTTI on fixed maturities not related to credit losses are included in changes in unrealized gains and losses on available-for-sale securities within the consolidated statements of comprehensive income. (3) Accounting Standards Update No. 2016-01, Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities. Refer to Note 2 for further discussion. The following tables summarize the components of AOCI and the adjustments to OCI for amounts reclassified from AOCI into net income for the six months ended June 30, 2017: Net Unrealized OTTI on Fixed Adjustment Net Gains (Losses) on Cash Flow Hedges Accumulated Other Comprehensive Income (Loss) Balance as of January 1, 2017 $ 137.6 $ (0.2 ) $ (14.0 ) $ 17.7 $ 141.1 Other comprehensive income (loss) before reclassifications, net of taxes (1) 333.5 — (53.5 ) (14.7 ) 265.3 Reclassifications recorded in: Net investment income: Interest rate swaps — — — (3.2 ) (3.2 ) Foreign currency swaps — — — (4.7 ) (4.7 ) Net realized (gains) losses (28.9 ) — 1.1 9.4 (18.4 ) Total provision (benefit) for income taxes 10.1 — (0.4 ) (0.5 ) 9.2 Total reclassifications from AOCI, net of taxes (18.8 ) — 0.7 1.0 (17.1 ) Other comprehensive income (loss) after reclassifications 314.7 — (52.8 ) (13.7 ) 248.2 Balance as of June 30, 2017 $ 452.3 $ (0.2 ) $ (66.8 ) $ 4.0 $ 389.3 ___________________ (1) Other comprehensive income (loss) before reclassifications is net of taxes of $179.6 , $0.0 , $(28.8) , $(7.9) , and $142.9 , respectively, for the six months ended June 30, 2017. Tax effects in OCI are calculated based on the applicable enacted tax rate at the time gains (losses) are incurred. (2) Reclassification adjustments of OTTI on fixed maturities not related to credit losses are included in changes in unrealized gains and losses on available-for-sale securities within the consolidated statements of comprehensive income. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies Leases The Company has office space and certain equipment under leases that expire at various dates through 2025, subject to certain renewal options. The Company accounts for these leases primarily as operating leases. Future minimum lease commitments, including cost escalation clauses, for the next five years and thereafter are as follows: Lease Payments 2018 $ 9.4 2019 9.1 2020 8.5 2021 4.6 2022 2.4 Thereafter 4.6 Total $ 38.6 Litigation Because of the nature of its business, the Company is subject to legal actions filed or threatened in the ordinary course of its business operations. The Company establishes liabilities for litigation and regulatory actions when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. For matters where a loss is believed to be reasonably possible, but not probable, no liability is established. For such matters, the Company may provide an estimate of the possible loss or range of loss or a statement that such an estimate cannot be made. The Company reviews relevant information with respect to litigation and regulatory matters on a quarterly basis and updates its established liabilities, disclosures and estimates of reasonably possible losses or range of loss based on such reviews. Although the Company cannot predict the outcome of any litigation or regulatory action, the Company does not believe that any such matters will have an impact on its financial condition or results of operations that differs materially from the Company’s established liabilities. Given the inherent difficulty in predicting the outcome of such matters, however, it is possible that an adverse outcome in certain such matters could be material to the Company’s financial condition or results of operations for any particular reporting period. Notes Payable and Credit Facilities On December 12, 2014, Symetra Life and its wholly-owned subsidiary, Symetra Reinsurance Corporation (SRC), entered into a 25 -year transaction to finance certain non-economic statutory reserves related to a block of universal life insurance policies with secondary guarantees issued by Symetra Life. As part of this transaction, SRC issued a surplus note with no initial principal balance. The maximum borrowing capacity as of December 31, 2017 was $101.4 . There have been no borrowings since inception under the surplus note. Other Commitments As of December 31, 2017 and 2016 , unfunded mortgage loan commitments were $53.2 and $48.9 , respectively. The Company had no other material commitments or contingencies as of December 31, 2017 and 2016 . 11. Commitments and Contingencies Litigation Because of the nature of its business, the Company is subject to legal actions filed or threatened in the ordinary course of its business operations. The Company establishes liabilities for litigation and regulatory actions when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. For matters where a loss is believed to be reasonably possible, but not probable, no liability is established. For such matters, the Company may provide an estimate of the possible loss or range of loss or a statement that such an estimate cannot be made. The Company reviews relevant information with respect to litigation and regulatory matters on a quarterly basis and updates its established liabilities, disclosures and estimates of reasonably possible losses or range of loss based on such reviews. Although the Company cannot predict the outcome of any litigation or regulatory action, the Company does not believe that any such matters will have an impact on its financial condition or results of operations that differs materially from the Company’s established liabilities. Given the inherent difficulty in predicting the outcome of such matters, however, it is possible that an adverse outcome in certain such matters could be material to the Company’s financial condition or results of operations for any particular reporting period. Notes Payable and Credit Facilities On December 12, 2014, Symetra Life and its wholly-owned subsidiary, Symetra Reinsurance Corporation (SRC), entered into a 25 -year transaction to finance certain non-economic statutory reserves related to a block of universal life insurance policies with secondary guarantees issued by Symetra Life. As part of this transaction, SRC issued a surplus note with no initial principal balance. The maximum borrowing capacity as of June 30, 2018 was $100.3 . There have been no borrowings since inception under the surplus note. Other As of June 30, 2018, the Company had committed to purchase $61.3 of unsettled private placement securities. In August 2018, Symetra Life became a member of the Federal Home Loan Bank of Des Moines (FHLB DM). Membership allows Symetra Life access to the FHLB DM’s funding services, which provide an alternative liquidity source, including the ability to obtain loans and issue funding agreements that are collateralized by qualifying assets. Symetra Life’s maximum borrowing capacity varies and is based on a percentage of total assets, subject to the availability of eligible collateral and Symetra Life's internal authorization limits. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | 11. Segment Information The Company offers a broad range of products and services that include retirement, employment based benefits, and life insurance products. These operations are managed separately as three divisions consisting of four business segments based on product groupings, and a fifth reportable segment consisting primarily of unallocated corporate items and surplus investment income. The five segments are Benefits, Deferred Annuities, Income Annuities, Individual Life and Other. Results for the Successor Company reflect the application of purchase accounting, and Predecessor Company results were not adjusted. The primary profitability measure that management uses to manage business segment results is adjusted pre-tax income (loss), which is defined as follows: • For the Predecessor Company, adjusted pre-tax income is defined as income from operations, excluding certain net realized gains (losses). Excluded gains (losses) are associated with: ◦ investment sales or disposals, ◦ investment impairments, ◦ changes in the fair value of mark-to-market investments and derivative investments (except for certain index options discussed below), and ◦ changes in the fair value of embedded derivatives related to the Company's FIA product. • For the Successor Company, adjusted pre-tax income is defined as income from operations, excluding intangible asset amortization and certain net realized gains (losses). Excluded gains (losses) are associated with: ◦ investment sales or disposals, ◦ investment impairments, ◦ changes in the fair value of mark-to-market investments and derivative investments (except for certain index options discussed below), and ◦ changes in the fair value of embedded derivatives related to the Company's FIA product. Prior to 2017, adjusted pre-tax income excluded only certain intangible asset amortization related to VODA and trade names, and excluded the realized gain (loss) from pass through activity and write-downs associated with tax credit investments. Effective in 2017, adjusted pre-tax income excludes all intangible asset amortization and includes the realized gain (loss) from tax credit investments. Prior period results for the Successor Company have been adjusted to reflect these changes. In the Deferred Annuities segment, net gains (losses) on certain index options purchased to economically hedge exposure from FIA products sold in the late 1990s are included in adjusted pre-tax income. The accounting policies of the segments are the same as those described for the Company, except for the method of capital allocation. The Company has an internally developed risk-based capital model, the purpose of which is to measure the risk in the business and to provide a basis upon which capital is deployed. This model accounts for the unique and specific nature of the risks inherent in the Company’s business segments. A portion of net investment income on surplus investments held in the Other segment, but not the invested assets, is allocated to the business segments based on the level of allocated capital. The following tables present selected financial information by segment and reconcile segment adjusted pre-tax income (loss) to amounts reported in the consolidated statements of income (loss): For the Year Ended December 31, 2017 (Successor Company) Benefits Deferred Income Individual Other Total Adjusted revenues: Premiums $ 867.4 $ — $ — $ 32.1 $ — $ 899.5 Net investment income 25.7 698.7 303.3 242.1 14.3 1,284.1 Policy fees, contract charges, and other 4.9 22.9 0.7 244.2 — 272.7 Certain realized gains (losses) — (12.7 ) (1.2 ) (5.4 ) (56.2 ) (75.5 ) Total adjusted revenues 898.0 708.9 302.8 513.0 (41.9 ) 2,380.8 Segment benefits and expenses: Policyholder benefits and claims 640.2 8.4 — 110.1 — 758.7 Interest credited — 418.4 279.7 275.5 — 973.6 Other underwriting and operating expenses 220.7 115.1 15.6 98.8 2.3 452.5 Amortization of DAC and VOBA 2.8 60.8 2.0 8.7 — 74.3 Total segment benefits and expenses 863.7 602.7 297.3 493.1 2.3 2,259.1 Segment adjusted pre-tax income (loss) $ 34.3 $ 106.2 $ 5.5 $ 19.9 $ (44.2 ) $ 121.7 Total adjusted revenues $ 898.0 $ 708.9 $ 302.8 $ 513.0 $ (41.9 ) $ 2,380.8 Add: Excluded realized gains (losses) 0.6 42.6 33.3 0.5 0.4 77.4 Total revenues 898.6 751.5 336.1 513.5 (41.5 ) 2,458.2 Total segment benefits and expenses 863.7 602.7 297.3 493.1 2.3 2,259.1 Add: Amortization of intangible assets 53.4 26.0 3.3 1.7 — 84.4 Total benefits and expenses 917.1 628.7 300.6 494.8 2.3 2,343.5 Income (loss) from operations before income taxes $ (18.5 ) $ 122.8 $ 35.5 $ 18.7 $ (43.8 ) $ 114.7 As of December 31, 2017 Total investments $ 342.3 $ 21,673.5 $ 7,349.9 $ 6,855.5 $ 1,623.6 $ 37,844.8 DAC and VOBA 7.7 422.0 16.3 250.2 — 696.2 Other intangible assets 707.3 485.2 49.6 12.8 — 1,254.9 Goodwill 308.0 198.8 50.2 6.0 — 563.0 Separate account assets — 613.2 — 364.9 — 978.1 Total assets 1,467.3 23,968.5 7,513.4 7,836.0 1,769.0 42,554.2 Future policy benefits, losses, claims and loss expense (1) 344.7 21,350.2 7,124.5 7,221.9 — 36,041.3 Other policyholders' funds 29.3 22.7 4.0 47.0 14.9 117.9 ___________________ (1) Includes funds held under deposit contracts, future policy benefits, and policy and contract claims on the consolidated balance sheets. February 1 to December 31, 2016 (Successor Company) Benefits Deferred Income Individual Other Total Adjusted revenues: Premiums $ 686.7 $ — $ — $ 30.8 $ — $ 717.5 Net investment income 18.8 579.5 288.8 202.9 11.3 1,101.3 Policy fees, contract charges, and other 6.3 17.9 0.8 195.0 0.1 220.1 Certain realized gains (losses) — (24.3 ) (5.1 ) (7.9 ) (48.5 ) (85.8 ) Total adjusted revenues 711.8 573.1 284.5 420.8 (37.1 ) 1,953.1 Segment benefits and expenses: Policyholder benefits and claims 497.6 2.8 — 68.4 — 568.8 Interest credited — 354.8 267.5 245.5 — 867.8 Other underwriting and operating expenses 177.8 98.2 17.0 87.9 25.7 406.6 Amortization of DAC and VOBA 0.6 56.5 0.7 1.9 — 59.7 Total segment benefits and expenses 676.0 512.3 285.2 403.7 25.7 1,902.9 Segment adjusted pre-tax income (loss) $ 35.8 $ 60.8 $ (0.7 ) $ 17.1 $ (62.8 ) $ 50.2 Total adjusted revenues $ 711.8 $ 573.1 $ 284.5 $ 420.8 $ (37.1 ) $ 1,953.1 Add: Excluded realized gains (losses) (1.3 ) (2.9 ) (12.0 ) (4.5 ) (3.8 ) (24.5 ) Total revenues 710.5 570.2 272.5 416.3 (40.9 ) 1,928.6 Total segment benefits and expenses 676.0 512.3 285.2 403.7 25.7 1,902.9 Add: Amortization of intangible assets 49.0 23.8 3.1 1.5 — 77.4 Total benefits and expenses 725.0 536.1 288.3 405.2 25.7 1,980.3 Income (loss) from operations before income taxes $ (14.5 ) $ 34.1 $ (15.8 ) $ 11.1 $ (66.6 ) $ (51.7 ) As of December 31, 2016 Total investments $ 95.3 $ 19,609.6 $ 7,204.2 $ 6,513.4 $ 1,878.2 $ 35,300.7 DAC and VOBA 2.4 423.5 8.8 162.0 — 596.7 Other intangible assets 760.8 511.2 52.9 14.5 — 1,339.4 Goodwill 308.0 198.8 50.2 6.0 — 563.0 Separate account assets — 652.2 — 259.2 — 911.4 Total assets 1,237.6 21,941.4 7,377.8 7,345.1 1,952.8 39,854.7 Future policy benefits, losses, claims and loss expense (1) 272.8 19,531.9 7,260.4 6,954.5 — 34,019.6 Other policyholders' funds 26.3 22.1 5.0 49.9 14.7 118.0 ___________________ (1) Includes funds held under deposit contracts, future policy benefits, and policy and contract claims on the consolidated balance sheets. January 1 to January 31, 2016 (Predecessor Company) Benefits Deferred Annuities Income Annuities Individual Life Other Total Adjusted revenues: Premiums $ 58.6 $ — $ — $ 2.6 $ — $ 61.2 Net investment income 2.1 57.3 29.8 22.9 (2.4 ) 109.7 Policy fees, contract charges, and other 0.6 1.4 0.1 16.2 — 18.3 Certain realized gains (losses) — (0.4 ) — — — (0.4 ) Total adjusted revenues 61.3 58.3 29.9 41.7 (2.4 ) 188.8 Segment benefits and expenses: Policyholder benefits and claims 37.1 0.2 — 11.1 — 48.4 Interest credited — 33.2 30.1 21.6 — 84.9 Other underwriting and operating expenses 16.1 8.0 1.4 7.3 0.4 33.2 Amortization of DAC 0.2 6.6 0.6 1.2 — 8.6 Total segment benefits and expenses 53.4 48.0 32.1 41.2 0.4 175.1 Segment adjusted pre-tax income (loss) $ 7.9 $ 10.3 $ (2.2 ) $ 0.5 $ (2.8 ) $ 13.7 Total adjusted revenues $ 61.3 $ 58.3 $ 29.9 $ 41.7 $ (2.4 ) $ 188.8 Add: Excluded realized gains (losses) — (1.9 ) (22.5 ) 0.6 (2.7 ) (26.5 ) Total revenues 61.3 56.4 7.4 42.3 (5.1 ) 162.3 Total benefits and expenses 53.4 48.0 32.1 41.2 0.4 175.1 Income (loss) from operations before income taxes $ 7.9 $ 8.4 $ (24.7 ) $ 1.1 $ (5.5 ) $ (12.8 ) For the Year Ended December 31, 2015 (Predecessor Company) Benefits Deferred Income Individual Other Total Adjusted revenues: Premiums $ 683.2 $ — $ — $ 33.4 $ — $ 716.6 Net investment income 23.4 663.6 380.9 290.9 (19.4 ) 1,339.4 Policy fees, contract charges, and other 6.5 18.7 0.8 180.7 0.3 207.0 Certain realized gains (losses) — (1.0 ) — — — (1.0 ) Total adjusted revenues 713.1 681.3 381.7 505.0 (19.1 ) 2,262.0 Segment benefits and expenses: Policyholder benefits and claims 456.9 0.6 — 113.3 — 570.8 Interest credited — 374.8 341.0 257.8 — 973.6 Other underwriting and operating expenses 184.5 99.9 16.7 87.2 (1.0 ) 387.3 Amortization of DAC and VOBA 1.8 71.8 6.1 10.4 — 90.1 Total segment benefits and expenses 643.2 547.1 363.8 468.7 (1.0 ) 2,021.8 Segment adjusted pre-tax income (loss) $ 69.9 $ 134.2 $ 17.9 $ 36.3 $ (18.1 ) $ 240.2 Total adjusted revenues $ 713.1 $ 681.3 $ 381.7 $ 505.0 $ (19.1 ) $ 2,262.0 Add: Excluded realized gains (losses) 0.1 (34.6 ) (6.3 ) (5.3 ) (46.0 ) (92.1 ) Total revenues 713.2 646.7 375.4 499.7 (65.1 ) 2,169.9 Total benefits and expenses 643.2 547.1 363.8 468.7 (1.0 ) 2,021.8 Income (loss) from operations before income taxes $ 70.0 $ 99.6 $ 11.6 $ 31.0 $ (64.1 ) $ 148.1 12. Segment Information The Company offers a broad range of products and services that include retirement, employment based benefits, and life insurance products. These operations are managed separately as three divisions consisting of four business segments based on product groupings, and a fifth reportable segment consisting primarily of unallocated corporate items and surplus investment income. The five segments are Benefits, Deferred Annuities, Income Annuities, Individual Life and Other. The primary profitability measure that management uses to manage business segment results is adjusted pre-tax income (loss), which is defined as income from operations, excluding intangible asset amortization and certain net realized gains (losses). Excluded gains (losses) are associated with: • investment sales or disposals, • investment impairments, • changes in the fair value of mark-to-market investments and derivative investments (except for certain index options discussed below), and • changes in the fair value of embedded derivatives related to the Company's FIA product. In the Deferred Annuities segment, net gains (losses) on certain index options purchased to economically hedge exposure from FIA products sold in the late 1990s are included in adjusted pre-tax income. The following tables present selected financial information by segment and reconcile segment adjusted pre-tax income (loss) to amounts reported in the consolidated statements of income (loss): For the Six Months Ended June 30, 2018 Benefits Deferred Income Individual Other Total Adjusted revenues: Premiums $ 491.1 $ — $ — $ 15.7 $ — $ 506.8 Net investment income 14.4 365.4 151.4 129.4 10.7 671.3 Policy fees, contract charges, and other 2.4 14.2 0.3 136.2 — 153.1 Certain realized gains (losses) (0.1 ) (2.3 ) (2.1 ) (1.5 ) (23.6 ) (29.6 ) Total adjusted revenues 507.8 377.3 149.6 279.8 (12.9 ) 1,301.6 Segment benefits and expenses: Policyholder benefits and claims 353.6 6.2 — 79.6 — 439.4 Interest credited — 221.9 141.8 141.7 — 505.4 Other underwriting and operating expenses 119.0 60.4 8.0 55.6 0.2 243.2 Amortization of DAC and VOBA 2.6 33.6 1.5 (11.5 ) — 26.2 Total segment benefits and expenses 475.2 322.1 151.3 265.4 0.2 1,214.2 Segment adjusted pre-tax income (loss) $ 32.6 $ 55.2 $ (1.7 ) $ 14.4 $ (13.1 ) $ 87.4 Total adjusted revenues $ 507.8 $ 377.3 $ 149.6 $ 279.8 $ (12.9 ) $ 1,301.6 Add: Excluded realized gains (losses) (0.1 ) 1.7 (26.3 ) (1.5 ) (3.0 ) (29.2 ) Total revenues 507.7 379.0 123.3 278.3 (15.9 ) 1,272.4 Total segment benefits and expenses 475.2 322.1 151.3 265.4 0.2 1,214.2 Add: Amortization of intangible assets 26.7 13.0 1.7 0.8 — 42.2 Total benefits and expenses 501.9 335.1 153.0 266.2 0.2 1,256.4 Income (loss) from operations before income taxes $ 5.8 $ 43.9 $ (29.7 ) $ 12.1 $ (16.1 ) $ 16.0 For the Six Months Ended June 30, 2017 Benefits Deferred Income Individual Other Total Adjusted revenues: Premiums $ 425.0 $ — $ — $ 16.7 $ — $ 441.7 Net investment income 11.7 349.3 152.1 119.8 7.7 640.6 Policy fees, contract charges, and other 2.4 11.4 0.4 117.3 — 131.5 Certain realized gains (losses) — (4.0 ) (1.3 ) (3.1 ) (17.3 ) (25.7 ) Total adjusted revenues 439.1 356.7 151.2 250.7 (9.6 ) 1,188.1 Segment benefits and expenses: Policyholder benefits and claims 330.0 2.4 — 45.5 — 377.9 Interest credited — 206.9 136.9 136.1 — 479.9 Other underwriting and operating expenses 109.3 57.8 7.8 48.7 0.9 224.5 Amortization of DAC and VOBA 1.1 34.2 0.8 4.6 — 40.7 Total segment benefits and expenses 440.4 301.3 145.5 234.9 0.9 1,123.0 Segment adjusted pre-tax income (loss) $ (1.3 ) $ 55.4 $ 5.7 $ 15.8 $ (10.5 ) $ 65.1 Total adjusted revenues $ 439.1 $ 356.7 $ 151.2 $ 250.7 $ (9.6 ) $ 1,188.1 Add: Excluded realized gains (losses) 0.5 (6.1 ) 26.9 (0.6 ) 0.7 21.4 Total revenues 439.6 350.6 178.1 250.1 (8.9 ) 1,209.5 Total segment benefits and expenses 440.4 301.3 145.5 234.9 0.9 1,123.0 Add: Amortization of intangible assets 26.7 13.0 1.7 0.8 — 42.2 Total benefits and expenses 467.1 314.3 147.2 235.7 0.9 1,165.2 Income (loss) from operations before income taxes $ (27.5 ) $ 36.3 $ 30.9 $ 14.4 $ (9.8 ) $ 44.3 As of June 30, 2018 Benefits Deferred Annuities Income Annuities Individual Life Other Total Total investments $ 387.9 $ 21,836.7 $ 6,888.0 $ 6,786.0 $ 1,716.4 $ 37,615.0 DAC and VOBA 10.1 583.8 19.5 347.4 — 960.8 Other intangible assets 680.8 472.2 47.9 11.9 — 1,212.8 Goodwill 308.0 198.8 50.2 6.0 — 563.0 Separate account assets — 578.7 — 420.7 — 999.4 Total assets 1,482.4 24,426.7 7,066.0 7,924.9 1,762.2 42,662.2 Future policy benefits, losses, claims and loss expense (1) 395.2 22,078.0 7,072.1 7,412.0 — 36,957.3 Other policyholders' funds 26.1 42.3 2.1 49.2 12.0 131.7 December 31, 2017 Benefits Deferred Annuities Income Annuities Individual Life Other Total Total investments $ 342.3 $ 21,673.5 $ 7,349.9 $ 6,855.5 $ 1,623.6 $ 37,844.8 DAC and VOBA 7.7 422.0 16.3 250.2 — 696.2 Other intangible assets 707.3 485.2 49.6 12.8 — 1,254.9 Goodwill 308.0 198.8 50.2 6.0 — 563.0 Separate account assets — 613.2 — 364.9 — 978.1 Total assets 1,467.3 23,968.5 7,513.4 7,836.0 1,769.0 42,554.2 Future policy benefits, losses, claims and loss expense (1) 344.7 21,350.2 7,124.5 7,221.9 — 36,041.3 Other policyholders' funds 29.3 22.7 4.0 47.0 14.9 117.9 ___________________ (1) Includes funds held under deposit contracts, future policy benefits, and policy and contract claims on the consolidated balance sheets. |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2018 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |
Reinsurance | 12. Reinsurance The Company reinsures portions of its insurance risk, primarily in the Individual Life and Benefits segments, in order to spread risk and limit losses. Reinsurance agreements are evaluated for risk transfer to determine if they qualify for reinsurance accounting. If they qualify, the Company accounts for reinsurance premiums, commissions, expense reimbursements, benefits and reserves related to reinsured business on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. If the agreements do not qualify, they are accounted for on a deposit contract basis. The Company remains liable to its policyholders to the extent that counterparties to reinsurance contracts do not meet their contractual obligations. Accordingly, the future policy benefit reserves and policy and contract claims liabilities are reported gross of any related reinsurance recoverables, which are reported as assets. The Company reports premiums, benefits, and settlement expenses net of reinsurance in the consolidated statements of income (loss). The following summarizes the Company's reinsurance coverage by line of business: • Medical stop-loss. The Company reinsures the excess of $2.0 per individual claim. Prior to 2016, the Company reinsured the majority of its exposure in excess of $1.7 per individual claim. • Group life & DI. The Company typically reinsures group life mortality risk in excess of $0.25 per individual and line of coverage, and morbidity risk in excess of $8.0 thousand of gross monthly benefit per life. The Company also has catastrophic coverage for group life policies. • Deferred Annuities. In 2017, the Company executed a reinsurance agreement to manage its statutory capital position related to fixed deferred and fixed indexed annuities issued beginning in 2017 with a guaranteed return of premium feature. This agreement does not qualify for GAAP reinsurance accounting. • Individual life. The Company's reinsurance coverage varies by product, policy issue year, and issue age of the insured. For fully underwritten policies issued subsequent to April 2017, the Company retains up to a maximum of $5.0 per life. For fully underwritten policies issued between March 2013 and April 2017, the Company retains up to a maximum of $3.0 per life. Prior to March 2013, reinsurance coverage varied based on policy type and issue date. In addition, the Company has an inter-company reinsurance agreement related to a block of universal life policies in order to manage its statutory capital position. The following table sets forth net life insurance in force: Successor Predecessor As of December 31, 2017 As of December 31, 2016 As of December 31, 2015 Direct life insurance in force $ 109,179.4 $ 86,142.8 $ 76,853.1 Amounts assumed from other companies 188.1 187.0 184.7 Amounts ceded to other companies (26,473.9 ) (24,452.4 ) (23,558.3 ) Net life insurance in force $ 82,893.6 $ 61,877.4 $ 53,479.5 Percentage of amount assumed to net 0.23 % 0.30 % 0.35 % Percentage of amount ceded to direct 24.25 % 28.39 % 30.65 % The Company evaluates the financial condition of its reinsurers to monitor its exposure to losses from reinsurer insolvencies. The Company analyzes reinsurance recoverables according to the credit ratings and financial health of its reinsurers and is not aware of any of its major reinsurers currently experiencing financial difficulties. As of December 31, 2017 and 2016, $201.3 and $191.5 , respectively, of the reinsurance recoverable was associated with two highly rated reinsurers, each representing approximately 32% of the recoverable balance in both periods. Of the total amount due from reinsurers, 97.5% and 97.9% were with reinsurers rated A- or higher by A.M. Best, as of December 31, 2017 and 2016 , respectively. The Company had no write-offs or reserve for uncollectible reinsurance in 2017 , 2016 or 2015 . Reinsurance recoverables are composed of the following amounts: As of As of Life insurance Reinsurance recoverables on: Funds held under deposit contracts $ 102.4 $ 99.8 Future policy benefits 134.3 130.9 Paid claims, expense allowance, premium tax recoverables and other 18.7 3.7 Policy and contract claims 5.8 6.9 Total life insurance 261.2 241.3 Accident and health insurance Reinsurance recoverables on: Future policy benefits 40.3 47.6 Policy and contract claims 12.7 8.0 Paid claims, expense allowance and premium tax recoverables 4.0 1.9 Total accident and health insurance 57.0 57.5 Total reinsurance recoverables $ 318.2 $ 298.8 The following table sets forth the effect of reinsurance on premiums and policy fees and contract charges. It is disaggregated by accident and health, and life insurance products, which are short- and long-duration contracts, respectively. Successor Predecessor For the Year Ended February 1 to January 1 to For the Year Ended Premiums: Direct: Accident and health $ 798.7 $ 626.3 $ 56.7 $ 676.0 Life insurance 171.1 127.5 10.7 123.1 Total direct 969.8 753.8 67.4 799.1 Total assumed 0.9 0.3 — 0.1 Ceded: Accident and health (1) (26.4 ) (0.6 ) (4.0 ) (43.5 ) Life insurance (44.8 ) (36.0 ) (2.2 ) (39.1 ) Total ceded (71.2 ) (36.6 ) (6.2 ) (82.6 ) Total premiums 899.5 717.5 61.2 716.6 Policy fees and contract charges: Direct life insurance 245.4 195.2 16.0 180.0 Ceded life insurance (11.7 ) (9.1 ) (0.5 ) (8.6 ) Total policy fees and contract charges (2) 233.7 186.1 15.5 171.4 Total premiums and other amounts assessed to policyholders $ 1,133.2 $ 903.6 $ 76.7 $ 888.0 Percentage of assumed to total premiums and other amounts assessed to policyholders 0.08 % 0.03 % — % 0.01 % _______________ (1) Successor Company ceded premiums reflect long-term disability income business recaptured during 2016. (2) Total policy fees and contract charges represents amounts charged to policyholders other than premiums and recorded in policy fees, contract charges and other in the consolidated statements of income (loss). This primarily consists of cost of insurance charges. Reinsurance benefits reduced policyholder benefits and claims by $98.0 , $27.2 , $3.5 , and $70.1 , respectively, for the year ended December 31, 2017 , the periods February 1 to December 31, 2016 and January 1 to January 31, 2016 , and for the year ended December 31, 2015 . |
Liability for Unpaid Claims and
Liability for Unpaid Claims and Claim Adjustment Expenses | 6 Months Ended |
Jun. 30, 2018 | |
Insurance [Abstract] | |
Liability for Unpaid Claims and Claim Adjustment Expenses | 13. Liability for Unpaid Claims and Claim Adjustment Expenses Liabilities for policy and contract claims primarily represent liabilities for claims under medical stop-loss, group life and DI, and individual life policies. These liabilities are established on the basis of reported losses. The Company also provides for claims incurred but not reported (IBNR). For medical stop-loss and group life and DI policies, this is based on expected loss ratios, claims paying completion patterns and historical experience. If expected loss ratios increase or expected claims paying completion patterns extend, the IBNR claim liability increases. The Company reviews estimates for reported but unpaid claims and IBNR claims quarterly. Any necessary adjustments are reflected in earnings. The following tables provide reconciliations of the beginning and ending liability balances for unpaid claims and claims adjustment expenses (CAE) disaggregated by medical stop-loss, and group life and DI and other. These reserves include policy and contract claims and certain amounts recorded in future policy benefits on the consolidated balance sheets. Medical Stop-Loss Successor Predecessor For the Year Ended December 31, 2017 February 1 to January 1 to For the Year Ended December 31, 2015 Balance, beginning of period $ 114.6 $ 113.1 $ 122.9 $ 113.3 Less: reinsurance recoverables 7.7 3.4 3.6 2.8 Net balance, beginning of period 106.9 109.7 119.3 110.5 Incurred related to insured events of: The current year 464.8 351.9 28.1 371.4 Prior years 3.3 (5.2 ) (0.5 ) (7.6 ) Total incurred 468.1 346.7 27.6 363.8 Paid related to insured events of: The current year 331.1 276.7 1.9 256.9 Prior years 103.2 72.8 35.3 98.1 Total paid 434.3 349.5 37.2 355.0 Net balance, end of period 140.7 106.9 109.7 119.3 Add: reinsurance recoverables 12.4 7.7 3.4 3.6 Balance, end of period $ 153.1 $ 114.6 $ 113.1 $ 122.9 Group Life and DI and Other Successor Predecessor For the Year Ended December 31, 2017 February 1 to January 1 to For the Year Ended December 31, 2015 Balance, beginning of period $ 182.9 $ 149.4 $ 144.3 $ 126.3 Less: reinsurance recoverables 55.1 80.5 81.3 81.1 Net balance, beginning of period 127.8 68.9 63.0 45.2 Incurred related to insured events of: The current year 261.3 221.9 14.4 163.6 Prior years 2.7 10.5 3.0 7.8 Total incurred 264.0 232.4 17.4 171.4 Paid related to insured events of: The current year 172.3 137.9 1.7 118.6 Prior years 52.4 35.6 9.8 35.0 Total paid 224.7 173.5 11.5 153.6 Net balance, end of period 167.1 127.8 68.9 63.0 Add: reinsurance recoverables 46.7 55.1 80.5 81.3 Balance, end of period $ 213.8 $ 182.9 $ 149.4 $ 144.3 Claims Development – Short Duration Contracts The Company's short duration contracts primarily include medical stop-loss and group life and DI. The following tables present information about claims development of short-duration contracts as of December 31, 2017, net of reinsurance. The tables also include cumulative claim frequency (presented in whole numbers) and the total of incurred but not reported (IBNR) liabilities plus expected development on reported claims included within the net incurred amounts. Claim frequency for medical stop-loss is measured on an individual claimant basis per policy year. Claim frequency for group life and DI is measured by claim event on an individual basis. The information about incurred and paid claims development for the years ended December 31, 2013 through 2016 is presented as unaudited supplementary information. The recording and paying of claims and related reserves on short duration contracts was not impacted by the Merger, and therefore, the information presented below combines Predecessor and Successor Company for 2016. The tables below present information for the number of years for which claims incurred typically remain outstanding. Medical stop-loss claims are typically paid within two years. Claims for group life and DI tend to develop over a longer period; however, prior to 2013, this business was substantially reinsured and did not materially impact the Company's results. Additionally, during the fourth quarter of 2016, the Company entered into an agreement to recapture the majority of the long-term DI business that had been ceded to a reinsurer, which impacted the retained incurred claims in later contract years. Prior to the recapture, long-term DI business was generally reinsured at 45% to 90% , depending on year of issue, and prior period amounts have not been adjusted to reflect the recapture. Medical Stop-Loss For the Years Ended December 31, As of December 31, 2017 Related IBNR Reserves Cumulative Number of Reported Claims Year of Insured Event 2016 (Unaudited) 2017 Incurred Claims, Net of Reinsurance: 2016 $ 380.0 $ 387.9 $ 5.8 4,806 2017 464.8 109.5 2,992 Total $ 852.7 $ 115.3 Cumulative Paid Claims, Net of Reinsurance: 2016 $ 278.5 $ 380.9 2017 331.1 Total 712.0 Liabilities for unpaid claims prior to 2016, net of reinsurance — Total liabilities for unpaid claims, net of reinsurance $ 140.7 Group Life and DI For the Years Ended December 31, As of December 31, 2017 2013 2014 2015 2016 Related IBNR Reserves Cumulative Number of Reported Claims Year of Insured Event (Unaudited) 2017 Incurred Claims, Net of Reinsurance: 2013 $ 21.9 $ 23.5 $ 23.0 $ 26.6 $ 27.5 $ — 16,249 2014 41.3 42.1 56.2 56.1 — 30,678 2015 73.6 92.1 90.8 — 37,966 2016 106.5 105.6 0.7 35,152 2017 157.9 42.4 36,690 Total $ 437.9 $ 43.1 Cumulative Paid Claims, Net of Reinsurance: 2013 $ 15.1 $ 19.7 $ 21.3 $ 22.0 $ 22.8 2014 25.3 32.6 35.9 39.8 2015 39.9 57.1 66.1 2016 53.4 74.2 2017 80.7 Total $ 283.6 Liabilities for unpaid claims prior to 2013, net of reinsurance 2.7 Total liabilities for unpaid claims, net of reinsurance $ 157.0 Reconciliation The reconciliation of the December 31, 2017 net incurred and paid claims development tables to the unpaid claims liability is as follows: Reconciliation of the Claims Development Information to the Liability for Unpaid Claims and CAE As of December 31, 2017 Net outstanding liabilities for unpaid claims Medical Stop-Loss $ 140.7 Group Life and DI 157.0 Other 3.8 Liabilities for unpaid claims, net of reinsurance 301.5 Reinsurance recoverable on unpaid claims Medical Stop-Loss 12.4 Group Life and DI 41.9 Other 0.2 Total reinsurance recoverable on unpaid claims 54.5 Insurance lines other than short duration, net 25.7 Impact of discounting (14.8 ) Total gross liability for unpaid claims $ 366.9 Claims Duration and Payout The following is required unaudited supplementary information about average historical percentage payout of incurred claims by age, net of reinsurance: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Group Life and DI 57.2 % 16.2 % 3.0 % 0.6 % 6.1 % 9. Liability for Unpaid Claims and Claim Adjustment Expenses The following tables provide reconciliations of the beginning and ending liability balances for unpaid claims and claims adjustment expenses (CAE) disaggregated by medical stop-loss, group life and DI, and other. These reserves include policy and contract claims and certain amounts recorded in future policy benefits on the consolidated balance sheets. Liabilities for claims represent estimates that involve significant judgments. The Company reviews its estimates regularly and makes any necessary adjustments based on experience and expectations. Medical Stop-Loss For the Six Months Ended June 30, 2018 2017 Balance, beginning of period $ 153.1 $ 114.6 Less: reinsurance recoverables 12.4 7.7 Net balance, beginning of period 140.7 106.9 Incurred related to insured events of: The current year 249.8 239.2 Prior years (11.7 ) 4.8 Total incurred 238.1 244.0 Paid related to insured events of: The current year 93.6 87.4 Prior years 118.1 100.2 Total paid 211.7 187.6 Net balance, end of period 167.1 163.3 Add: reinsurance recoverables 7.9 11.2 Balance, end of period $ 175.0 $ 174.5 For the six months ended June 30, 2018, the change in prior year incurred claims for medical stop-loss was primarily due to favorable claims experience on policies issued in January 2017. For the six months ended June 30, 2017, the change in prior year incurred claims was primarily due to unfavorable claims experience on policies issued in January 2016. Group Life and DI For the Six Months Ended June 30, 2018 2017 Balance, beginning of period $ 184.2 $ 149.9 Less: reinsurance recoverables 41.9 48.4 Net balance, beginning of period 142.3 101.5 Incurred related to insured events of: The current year 103.5 71.1 Prior years — 3.8 Total incurred 103.5 74.9 Paid related to insured events of: The current year 42.4 28.4 Prior years 31.6 22.8 Total paid 74.0 51.2 Net balance, end of period 171.8 125.2 Add: reinsurance recoverables 41.1 42.1 Balance, end of period $ 212.9 $ 167.3 Other For the Six Months Ended June 30, 2018 2017 Balance, beginning of period $ 29.6 $ 33.0 Less: reinsurance recoverables 4.8 6.7 Net balance, beginning of period 24.8 26.3 Incurred related to insured events of: The current year 61.7 53.4 Prior years 1.4 (1.5 ) Total incurred 63.1 51.9 Paid related to insured events of: The current year 37.6 33.4 Prior years 18.8 17.3 Total paid 56.4 50.7 Net balance, end of period 31.5 27.5 Add: reinsurance recoverables 25.6 5.2 Balance, end of period $ 57.1 $ 32.7 The Company's short duration contracts primarily include medical stop-loss and group life and DI. The following table presents total of incurred but not reported (IBNR) liabilities plus expected development on reported claims. As of June 30, 2018 Year of Insured Event Medical Stop-Loss Group Life and DI IBNR Reserves: 2017 $ 9.6 $ 7.3 2018 137.4 46.2 Total $ 147.0 $ 53.5 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes Symetra Life files a consolidated federal income tax return with its wholly-owned subsidiaries. Income taxes have been determined using the liability method. The provision for income taxes has two components: amounts currently payable or receivable and deferred income taxes. The deferred income taxes are calculated as the difference between the book and tax bases of the appropriate assets and liabilities and are measured using enacted tax rates. The Company includes penalties and interest related to unrecognized tax benefits in the calculation of income tax expense in the accompanying consolidated statements of income (loss). The Company files income tax returns in the U.S. federal and various state jurisdictions. The Company's federal income tax returns have been examined and closing agreements have been executed with the Internal Revenue Service (IRS), or the statute of limitations has expired, for all tax periods through December 31, 2012. Based upon a 2016 federal carryback claim, the Company's tax year 2013 is open for examination until 2020. The Company is not currently subject to any state income tax examinations. The Company receives investment tax credits from its investments in certain limited partnerships. These are accounted for using the flow-through method. Refer to Note 4 for further discussion of our tax credit investments. Differences between income taxes computed by applying the U.S. federal income tax rate to income (loss) from operations before income taxes and the provision (benefit) for income taxes were as follows: Successor Predecessor For the Year Ended February 1 to January 1 to For the Year Ended Income (loss) from operations before income taxes $ 114.7 $ (51.7 ) $ (12.8 ) $ 148.1 Tax provision (benefit) at U.S. Federal statutory rate 40.2 35.0 % (18.1 ) 35.0 % (4.5 ) 35.0 % 51.8 35.0 % Increase (reduction) in rate resulting from: Impact of change in enacted tax rates on deferred tax balances (151.0 ) (131.6 ) — — — — — — Investment tax credits (37.0 ) (32.3 ) (52.0 ) 100.8 (4.1 ) 32.0 (79.8 ) (53.9 ) Other 2.4 2.1 (0.4 ) 0.6 (0.3 ) 2.4 (2.3 ) (1.5 ) Provision (benefit) for income taxes $ (145.4 ) (126.8 )% $ (70.5 ) 136.4 % $ (8.9 ) 69.4 % $ (30.3 ) (20.4 )% On December 22, 2017, the 2017 Tax Act was signed into law, reducing the corporate tax rate from 35% to 21%, effective January 1, 2018. The effects of the 2017 Tax Act have been reasonably estimated, and a provisional tax benefit of $151.0 was recorded for the year ended December 31, 2017. This amount reflects the re-measurement of deferred tax assets and liabilities due to the change in the enacted tax rate. As analysis of the 2017 Tax Act is completed and any additional guidance issued by the U.S. Treasury Department, the IRS, and other standard-setting bodies is interpreted, there may be adjustments to this provisional amount. Those adjustments may, but are not expected to, materially impact the provision for income taxes in the period in which the adjustments are made. The following table sets forth the tax effects of temporary differences that gave rise to the deferred income tax assets and liabilities. Deferred income tax assets and liabilities were measured at a corporate tax rate of 21% and 35%, respectively, as of December 31, 2017 and 2016. As of As of Deferred income tax assets: Adjustments to life policy liabilities $ 452.6 $ 840.8 Deferred policy acquisition costs — 36.6 Other 13.3 21.9 Total deferred income tax assets 465.9 899.3 Deferred income tax liabilities: Deferred policy acquisition costs 24.4 — Basis adjustment on securities 210.4 462.0 Unrealized gains on investment securities (net of DAC and VOBA adjustment: $ 16.9 and $7.5, respectively) 146.5 76.0 Intangible assets 325.7 605.1 Other 10.0 9.6 Total deferred income tax liabilities 717.0 1,152.7 Deferred income tax liability, net $ 251.1 $ 253.4 Deferred tax assets are recognized only to the extent that it is more likely than not that future taxable profits will be available, and a valuation allowance is established where deferred tax assets cannot be recognized. Based on an analysis of the Company’s tax position, management believes that it is more likely than not that the results of future operations will generate sufficient taxable income to enable the Company to utilize all of its deferred tax assets. Accordingly, no valuation allowance for deferred tax assets has been established as of December 31, 2017 and 2016. |
Dividends
Dividends | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Dividends | 15. Dividends Symetra Life is restricted by state regulations as to the aggregate amount of dividends it may pay to the Parent in any consecutive 12-month period without regulatory approval. The aggregate amount of dividends for the current year is determined based on the prior year’s statutory results. Under state law, Symetra Life may pay dividends only from the earned surplus arising from its business and must receive prior approval of the Insurance Commissioner of the State of Iowa ("the Commissioner") if such distributions would exceed certain statutory limitations. Iowa law gives the Commissioner discretion to disapprove requests for distributions in excess of these limits. For the year ended December 31, 2017, dividends to the Parent from Symetra Life were limited to $208.2 without Commissioner approval, and total dividends declared were $50.0 , of which $19.9 was recorded as a return of capital and deducted against additional paid in capital. A portion of the dividend was paid as a non-cash transfer of Symetra Life's investment in a limited partnership with a fair value of $20.9 , while the remaining $29.1 was paid in cash. For the year ended December 31, 2018, dividends are restricted to $221.9 without prior Commissioner approval. On March 7, 2018, the Board of Directors declared a $25.0 dividend to the Parent. |
Statutory Basis Information
Statutory Basis Information | 6 Months Ended |
Jun. 30, 2018 | |
Insurance [Abstract] | |
Statutory Basis Information | 16. Statutory-Basis Information The Company and its subsidiaries are required to prepare statutory financial statements in accordance with statutory accounting practices prescribed or permitted by the insurance department of the state of domicile. Statutory accounting practices differ from GAAP primarily by charging policy acquisition costs to expense as incurred and establishing future policy benefit liabilities using different actuarial assumptions, as well as using a different basis in accounting for investments, certain assets, certain financial reinsurance transactions, and deferred taxes. Additionally, the statutory financial statements were not affected by purchase accounting. Effective January 1, 2017, Symetra Life elected Iowa Bulletin 06-01, which allows companies to record in income the change in fair value of derivative instruments used to economically hedge indexed products, consistent with how the change in indexed product reserves is recorded. There was no net impact on surplus. The statutory net income and statutory capital and surplus for the Company and its subsidiaries are as follows: For the Year Ended December 31, 2017 For the Year Ended December 31, 2016 For the Year Ended December 31, 2015 Statutory net income: Symetra Life Insurance Company $ 267.8 $ 43.4 $ 205.6 Subsidiaries 11.1 7.3 9.4 Statutory capital and surplus: Symetra Life Insurance Company (1) $ 2,218.9 $ 2,082.4 $ 2,081.5 Subsidiaries 135.9 134.0 138.1 _______________ (1) Symetra Life Insurance Company’s surplus includes the balances of its three wholly-owned subsidiaries, First Symetra National Life Insurance Company of New York, Symetra National Life Insurance Company and Symetra Reinsurance Corporation. Each state of domicile imposes minimum risk–based capital (RBC) requirements that were developed by the NAIC. The formulas for determining the amount of RBC specify various weighting factors that are applied to the financial balances or various levels of activity based on the perceived degree of risk. Regulatory compliance is determined by a ratio of total adjusted capital, as defined by the NAIC, to company action level RBC, as defined by the NAIC. Companies below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action. The Company and its subsidiaries have statutory surplus and RBC levels above current regulatory required levels. |
Related Parties
Related Parties | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Parties | 17. Related Parties The Company has entered into various agreements with the Parent and its affiliates for services necessary to conduct its activities. These agreements specify that the parties will provide to and receive from each other certain general services related to sharing common management, personnel and facilities, and that the related expenses will be shared. These expenses include rent, payroll, benefits, data processing systems, and other charges. General service expenses are allocated among legal entities using various methodologies to estimate service utilization, including headcount, time studies or relevant activity levels, which management believes to be reasonable. In addition, the Company paid concessions, general agent fees, administrative and underwriting fees for services provided by its affiliates. These affiliates primarily included Symetra Securities, Inc. and Medical Risk Managers, Inc. The Company’s affiliate, Symetra Assigned Benefits Service Company (SABSCO), purchased future payment streams of structured settlement annuity contracts issued by the Company from third-party payees. These contracts were assigned to and owned by SABSCO. The Company issued commutation endorsements to pay SABSCO lump sum amounts in lieu of receiving the future payment streams in the structured settlement annuity contracts and releases its reserves related to the contracts. The Company records intercompany receivables in receivables and other assets and intercompany payables in other liabilities on the consolidated balance sheets. It is the Company’s policy to settle amounts due with affiliated companies within 30 days, except for certain long-term compensation liabilities that are settled when the awards are paid to the employee. Payables and receivables are aggregated and reported net for each affiliated entity. Balances and transactions with related parties recorded in the Company’s consolidated financial statements were as follows: As of As of Balances with Parent and affiliates: Receivables $ 0.1 $ 0.3 Payables 17.1 — Successor Predecessor For the Year Ended December 31, 2017 February 1 to December 31, 2016 January 1 to For the Year Ended December 31, 2015 Transactions with Parent and affiliates: Payments related to commutation endorsements (1) $ 7.8 $ 7.4 $ 0.6 $ 14.7 Shared services expenses allocated, net (2) 6.9 6.1 0.4 5.5 Concessions, general agent fees, administrative and underwriting fees 10.7 8.0 0.9 11.7 ___________________ (1) Commutation endorsements reduce the reserves reported in funds held under deposit contracts on the consolidated balance sheets and interest credited on the consolidated statements of income, net of related payments. (2) Reported primarily in other underwriting and operating expenses on the consolidated statements of income. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP). All significant intercompany transactions and balances between Symetra Life and its subsidiaries have been eliminated. Certain reclassifications have been made to prior year financial information to conform to the current period presentation. The interim condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP). The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that may affect the amounts reported in the interim condensed consolidated financial statements and accompanying notes. These interim condensed consolidated financial statements are unaudited and in management's opinion include all adjustments, consisting of normal recurring adjustments and accruals, necessary for a fair presentation. All significant intercompany transactions and balances have been eliminated. Certain reclassifications have been made to prior year financial information to conform to the current period presentation. Management has assessed subsequent events through October 31, 2018, the date the financial statements were issued. Subsequent events requiring disclosure are included in Notes 2 and 11. The interim condensed consolidated financial statements should be read in conjunction with the December 31, 2017 audited consolidated financial statements. Financial results for the six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the twelve months ended December 31, 2018. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The most significant estimates include those used to determine the following: valuation of investments carried at fair value; the balance, recoverability and amortization of deferred policy acquisition costs (DAC) and value of business acquired (VOBA); the liabilities for funds held under deposit contracts, future policy benefits, and policy and contract claims; recoverability of goodwill and intangible assets; and valuation of assets and liabilities under PGAAP. The recorded amounts reflect management’s best estimates, though actual results could differ from those estimates. |
Recognition of Insurance Revenue and Related Benefits | Recognition of Insurance Revenue and Related Benefits The Company’s group insurance policies, which include medical stop-loss, group fixed-benefit insurance, and group life and DI, are short-duration contracts. Group life and DI business includes group life insurance and short- and long-term disability products. Premiums from these products are recognized as revenue when earned over the life of the policy. Policyholder claims are charged to operations as incurred. Traditional individual life insurance products, including term and whole life insurance products, are long-duration contracts, and the associated premiums and benefits are fixed. Premiums from these products are considered earned and recognized as revenue when due. Reserves are associated with earned premiums such that profits are recognized over the life of the contracts. Deposits related to universal life (UL) insurance products and investment-type products are credited to policyholder account balances and reflected as liabilities when received, rather than as premium income. Investment-type products include fixed deferred annuities, SPIAs, and structured settlements. Revenues from UL insurance and investment-type products consist of net investment income on the policyholders’ fund balances, and amounts assessed for cost of insurance, policy administration, and surrender charges. These assessments are recorded in policy fees, contract charges, and other in the consolidated statements of income (loss). Expenses charged to operations for these products include interest credited and claims in excess of related policyholder account balances. These amounts are expensed as incurred. Revenue from variable annuities, life and COLI products include mortality and expense, policy administration and surrender charges. These fees are charged to policyholders’ accounts based upon the daily net assets of the policyholders’ account values and are recognized as revenue in policy fees, contract charges, and other in the consolidated statements of income (loss) when assessed. |
Separate Account Assets and Liabilities | Separate Account Assets and Liabilities Separate account balances relate to the Company's variable products. Separate account assets are reported at fair value and represent funds that are invested on behalf of the Company’s variable product policyholders. The assets of each separate account are legally segregated and are not subject to claims that arise out of the Company’s other business activities. Investment risks associated with market value changes are borne by the policyholder, except to the extent of death benefits guaranteed by the Company with respect to certain accounts. Net investment income and realized gains and losses accrue directly to the policyholders and are not included in the Company’s revenues. Separate account liabilities represent the policyholders' account balances in the separate account. For variable annuity contracts with guaranteed minimum death benefits (GMDB), the Company contractually guarantees death benefits that may exceed the policyholder's account balance. The Company reinsures nearly all of the GMDB risk on its variable annuity contracts. |
Funds Held Under Deposit Contracts | Funds Held Under Deposit Contracts Funds held under deposit contracts includes liabilities for fixed deferred annuity contracts, fixed indexed annuities (FIA), SPIAs, structured settlement annuities, and universal life policies, including BOLI. For the Successor Company, these liabilities also include PGAAP-related adjustments discussed below. Liabilities for fixed deferred annuity contracts, and the fixed account portion of FIA and universal life policies are equal to account value, plus additional liabilities for policy benefits accrued but not yet earned, credited, or redeemed. Account value represents the amount available in cash to the policyholder, without regard to any surrender fees. This is computed as deposits net of withdrawals made by the policyholder, plus amounts credited based on contract specifications, less contract fees and charges assessed, plus any additional interest. Policy benefits accrued but not yet earned, credited, or redeemed relate to bonus interest, excess death benefits, and other policy benefits that can be attributed to a specific policy or group of policies. The liability for the indexed account portion of FIA represents the present value of future estimated guaranteed benefits, as well as an embedded derivative related to expected index credits on these policies. The embedded derivative is recorded at fair value. See Note 6 for further discussion. For SPIAs and structured settlements, liabilities are based on discounted amounts of estimated future benefits. Future benefits are either fully guaranteed or are contingent on the survivorship of the annuitant. For policies issued subsequent to the Merger, contingent future benefits are discounted with pricing mortality assumptions, which include provisions for longer life spans over time. The interest rate pattern used to calculate the reserves for these policies is set at issue, and interest rates for the pattern vary over time. For the Successor Company, assumptions were reset for policies as of the date of the Merger, as discussed below. As of December 31, 2017, the weighted-average implied interest rate on the business was 4.03% and grades to 5.63% during the next 40 years. Impact of Purchase Accounting In conjunction with the Merger, liabilities for in-force business were recorded at fair value and the underlying contracts were considered to be new contracts for measurement and reporting purposes as of the Merger Date. Estimating the fair value of these liabilities required the use of current assumptions relative to future investment yields, mortality, persistency, and other assumptions based on the Company’s historical experience, modified as necessary to reflect anticipated trends. The Company’s assumptions and estimates required significant judgment and, therefore, are inherently uncertain. The Company cannot determine with precision the ultimate amounts that it will pay to its contract holders or the timing of those payments. At the Merger Date, the Company updated the assumptions described above to reflect current best estimates. Either a VOBA asset or an additional insurance liability was recorded to reflect the difference between the fair value of the liability and the amounts previously established. An additional insurance liability was established for the Company's lines of business related to structured settlement, SPIA, and certain BOLI policies. The liability is reported in funds held under deposit contracts and amortized over the policy period in proportion to the approximate consumption of losses. Amortization is recorded as a reduction of interest credited. |
Future Policy Benefits | Future Policy Benefits The Company estimates liabilities for future policy benefits for its traditional individual life policies as the present value of expected future policy benefits less future net premiums. The Company selects the net premiums so that the actuarial present value of future benefits equals the actuarial present value of future premiums. The Company sets the interest, mortality, and persistency assumptions in the year of issue and includes a provision for adverse deviation. The provision for adverse deviation is intended to provide coverage for the risk that actual experience may be worse than locked-in best-estimate assumptions. The Company derives mortality assumptions from both company-specific and industry statistics. Future benefits are discounted at interest rates that vary by year of policy issue. These rates are initially set to be consistent with investment rates at the time of issue, and are graded to a lower rate over time. Assumptions are set at the time each product is introduced and are not updated for actual experience unless the total product liability amount is determined to be inadequate to cover future policy benefits. The Company estimates liabilities for future policy benefits for group long-term disability policies as the present value of future benefit payments, net of terminations and reinsurance recoverables, and discounted at interest rates based on investment rates at the time of disability. Liabilities for policies in-force as of the Merger Date were set to fair value, using assumptions that reflected current best estimates as of the Merger Date. |
Policy Loans | Policy Loans Policy loans are carried at unpaid principal balances. Policy loans are not granted for amounts in excess of the accumulated cash surrender value of the policy or contract. |
Investments in Limited Partnerships | Investments in Limited Partnerships The Company invests in limited partnerships where the primary return on investment is in the form of income tax credits and the tax benefit on the pass-through of partnership activity. These partnerships (collectively referred to as "tax credit investments") are established to invest in low-income housing and other qualifying purposes. Refer to Note 4 for further discussion. |
Variable Interest Entities | Variable Interest Entities The Company performs an ongoing qualitative assessment of its involvement with variable interest entities (VIEs). A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support, or where investors lack certain characteristics of a controlling financial interest. The Company assesses its contractual, ownership or other interests in a VIE to determine whether it has a variable interest in the entity, and if so, to determine whether the Company has a controlling financial interest and would therefore be considered the primary beneficiary of the VIE. If it is determined the Company is the primary beneficiary of a VIE, the Company includes the assets and liabilities of the VIE in the consolidated financial statements. The limited partnerships that the Company invests in meet the definition of a VIE. Because the Company, as a limited partner, lacks the ability to direct the activities of any of these partnerships, it is not considered the primary beneficiary and therefore has not consolidated them. The maximum exposure to loss in these VIEs was $176.3 and $215.3 as of December 31, 2017 and 2016, respectively. The maximum exposure to loss includes commitments to provide future capital contributions. In the normal course of business, the Company also makes passive investments in structured securities issued by VIEs. These structured securities primarily include residential and commercial mortgage-backed securities and collateralized loan obligations. Because the Company lacks the ability to direct the activities that most significantly impact the economic performance of the VIEs, it is not considered the primary beneficiary and therefore does not consolidate them. |
Accounting Pronouncements | Accounting Pronouncements Standard Description Required date of adoption Effect on the financial statements or other significant matters Accounting Pronouncements Newly Adopted Update No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income This standard permits entities to reclassify the residual tax effects arising from the change in enacted tax rate from the Tax Cuts and Jobs Act of 2017 (the "2017 Tax Act"). Under the standard, the tax effects stranded in accumulated other comprehensive income may be reclassified to retained earnings. January 1, 2019 The Company early adopted this guidance using a retrospective approach, and elected to reclassify tax effects stranded in accumulated other comprehensive income (AOCI) to retained earnings for its December 31, 2017 Financial Statements. See the Statement of Stockholder's Equity and Note 9 for the impact of adoption. Standard Description Required date of adoption Effect on the financial statements or other significant matters Accounting Pronouncements Not Yet Adopted Update No. 2016-01, Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities This standard amends recognition and disclosure requirements primarily for equity investments carried at fair value. Under the standard, changes in fair value will be recorded in income. In addition, the requirement to disclose the fair value of financial instruments held at amortized cost has been eliminated for nonpublic companies. January 1, 2018 The Company adopted the standard using a modified retrospective approach. Update No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities This standard amends the recognition and measurement of hedging instruments to better represent an entity's risk management activities. Under the standard, the requirement to separately measure and report hedge ineffectiveness is eliminated. In addition, the standard provides relief from certain initial documentation requirements and replaces the requirement for quarterly quantitative ineffectiveness testing with a qualitative approach. January 1, 2019 The Company is in the early stages of evaluating the potential impact of the standard on its financial statements. The Company holds derivative instruments that will be impacted by the standard (See Note 6 for details regarding these holdings). Upon adoption, the Company will apply the standard using a modified retrospective approach. The Company is considering whether to early adopt. Update No. 2016-02, Leases (Topic 842) This standard amends the recognition requirements for all leases with a term greater than 12 months and provides new guidelines for the identification of a lease within a contract. Under the standard, companies must measure and recognize a liability to make lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term. In addition, the standard requires expanded quantitative and qualitative disclosures. January 1, 2019 The Company is in the early stages of evaluating the potential impact of the standard on its financial statements. The majority of the Company's leases are currently accounted for as operating leases. Upon adoption, the Company will apply the standard using a modified retrospective approach and apply the requirements to all existing leases. Update No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities This standard amends the guidance for amortization of premiums on purchased callable debt securities. Under the standard, premiums on these securities will be amortized to the earliest call date, rather than final maturity of the security. The guidance applies only to bonds for which the call date and price is fixed. Further, the amortization period for debt securities carried at a discount will not be impacted. January 1, 2019 The Company is in the early stages of evaluating the potential impact of the standard on its financial statements. Upon adoption, the Company will apply the standard using a modified retrospective approach. Accounting Pronouncements Not Yet Adopted (cont.) Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326) This standard amends the credit loss measurement guidance for available-for-sale securities. Credit losses will be recognized in a credit allowance account rather than as reductions in the amortized cost of the securities. Further, entities are no longer allowed to consider length of time a security has been underwater as a factor when evaluating credit losses. This standard also amends existing guidance on the impairment of certain financial instruments by adding an impairment model that reflects expected credit losses. This requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. January 1, 2020 The Company is in the early stages of evaluating the potential impact of the standard on its financial statements. Upon adoption, the Company will apply the standard using a modified retrospective approach. Update No. 2017-04, Intangibles - Goodwill and Other (Topic 350) This standard removes the requirement to calculate the implied fair value of goodwill (Step 2 of the goodwill impairment test) to measure a goodwill impairment charge. A goodwill impairment charge will now be measured as the amount by which a reporting unit's carrying value exceeds its fair value determined in Step 1 of the goodwill impairment test. This impairment test will be applied to goodwill assigned to all reporting units, even those with zero or negative carrying amounts. Entities will be required to disclose the amount of goodwill assigned to reporting units with zero or negative carrying amounts. January 1, 2020 The Company is monitoring the potential impact of the standard on its annual goodwill impairment assessment. Upon adoption, the Company will apply the standard prospectively. Accounting Pronouncements Newly Adopted ASU No. 2016-01, Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities. This accounting standards update (ASU) amends recognition and disclosure requirements primarily for equity investments carried at fair value. Under the standard, changes in fair value are recorded in income. The Company adopted the standard on January 1, 2018 using a modified retrospective approach. The Company held equity investments previously classified as available-for-sale securities that were impacted by the standard. Upon adoption, $114.3 of net unrealized gains, net of taxes of $30.4 , related to these securities were reclassified from accumulated other comprehensive income (loss) (AOCI) to retained earnings. Subsequent to adoption, changes in fair value of these securities are recorded through net realized gains (losses) in the consolidated statements of income (loss). As a result, the Company expects increased volatility in net income. Accounting Pronouncements Not Yet Adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. This standard amends the recognition and measurement of hedging instruments to better represent an entity's risk management activities. Under the standard, the requirement to separately measure and report hedge ineffectiveness is eliminated. In addition, the standard provides relief from certain initial documentation requirements and replaces the requirement for quarterly quantitative ineffectiveness testing with a qualitative approach. The update is effective beginning January 1, 2019. The Company is evaluating the potential impact of the standard on its financial statements. The Company holds derivative instruments that will be impacted by the standard (See Note 6 for details regarding these holdings). Upon adoption, the Company will apply the standard using a modified retrospective approach. ASU No. 2016-02, Leases (Topic 842): This standard amends the recognition requirements for all leases with a term greater than 12 months and provides new guidelines for the identification of a lease within a contract. Under the standard, companies must measure and recognize a liability for future lease payments and a right-of-use asset for the right to use the underlying asset for the lease term. Entities may elect a simplified transition option, under which they recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption rather than in the earliest period presented. In addition, the standard requires expanded quantitative and qualitative disclosures. The update is effective beginning January 1, 2019. The Company has compiled an inventory of all its leases and is currently assessing the impact of the standard and updating internal processes to ensure compliance with the revised guidance. The majority of the Company's leases are currently accounted for as operating leases. The Company does not anticipate that this standard will impact its expense recognition pattern. Upon adoption, the Company will apply the standard using a modified retrospective approach and apply the requirements to all existing leases using the simplified transition option. ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. This standard amends the guidance for amortization of premiums on purchased callable debt securities. Under the standard, premiums on these securities will be amortized to the earliest call date, rather than final maturity of the security. The guidance applies only to bonds for which the call date and price are fixed. The amortization period for debt securities carried at a discount will not be impacted. The update is effective beginning January 1, 2019. The Company is evaluating the potential impact of the standard on its financial statements. Upon adoption, the Company will apply the standard using a modified retrospective approach. ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): This standard amends the credit loss measurement guidance for available-for-sale securities. Credit losses will be recognized in a credit allowance account rather than as reductions in the amortized cost of the securities. Entities will no longer be allowed to consider length of time a security has been underwater as a factor when evaluating credit losses. This standard further amends existing guidance on the impairment of certain financial instruments by adding an impairment model that reflects expected credit losses. This requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The update is effective beginning January 1, 2020. The Company is in the early stages of evaluating the potential impact of the standard on its financial statements, with a focus on fixed maturity securities, mortgage loans, and reinsurance recoverables. Upon adoption, the Company will apply the standard using a modified retrospective approach. ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350). This standard removes the requirement to calculate the implied fair value of goodwill (Step 2 of the goodwill impairment test) to measure a goodwill impairment charge. A goodwill impairment charge will now be measured as the amount by which a reporting unit's carrying value exceeds its fair value determined in Step 1 of the goodwill impairment test. This impairment test will be applied to goodwill assigned to all reporting units, even those with zero or negative carrying amounts. The update is effective beginning January 1, 2020. The Company is monitoring the potential impact of the standard on its annual goodwill impairment assessment. Upon adoption, the Company will apply the standard prospectively. ASU No. 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts . This standard amends the guidance for long-duration contracts. Entities will be required to measure the liability for future policy benefits by reviewing and updating assumptions used to measure cash flows at least annually and recognize any change in net income. The discount rate assumption must be based on observable market inputs and updated at each reporting period, with any resulting change recognized in other comprehensive income. A fair value model will be required to measure the market risk benefits. Finally, for contracts within the scope of this guidance, deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins will be required to be amortized on a constant level basis over the expected term of the related contracts. The standard also amends disclosure requirements to include disaggregated rollforwards of the related liabilities and information about significant assumptions used. The update is effective beginning January 1, 2021. This ASU was recently released and the Company is in the early stages of assessing the impact on its annuity and life insurance contracts. ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This standard amends the disclosure requirements for fair value measurements. Under the standard, there are new disclosure requirements for Level 3 fair value measurements as well as the elimination of certain current disclosure requirements. The update is effective beginning January 1, 2020. This ASU was recently released and the Company is in the early stages of assessing the impact on its financial statements. |
Other Intangible Assets | Other Intangible Assets In conjunction with the Merger, the Company recognized certain specifically identifiable intangible assets. Intangible assets with finite lives are amortized on a straight-line basis over the estimated useful life of the assets. Amortizable intangible assets consist of value of distribution acquired (VODA), value of customer relationships acquired (VOCRA), trade names and technology. VODA represents the present value of expected future profits associated with the expected future business derived from distribution relationships in existence as of the Merger Date. VOCRA represents the present value of the expected future profits associated with the Company's group insurance business in-force in the Benefits segment as of the Merger Date, including the value of renewals associated with this business. Identified intangible assets were valued using the excess earnings method, relief from royalty method or cost approach, as appropriate. Other intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable. Conditions that would necessitate an impairment assessment include a significant change in the extent or manner in which an asset is used or any other significant adverse change that would indicate that the carrying amount of an asset or group of assets may not be recoverable. Impairment is only recorded if the asset’s carrying amount is not recoverable through its undiscounted future cash flows. If an impairment exists, the amount is measured as the difference between the carrying amount and fair value. |
Goodwill | Goodwill Goodwill was determined based on the terms of the transaction and the fair value of the net assets of the Company under the new basis of accounting. It represents the acquisition price in excess of the fair value of net assets acquired in the Merger, including identifiable intangible assets, and reflects the Company’s future growth potential, assembled workforce and other sources of value not associated with identifiable assets. The Company's goodwill balance was assigned to its reporting units, which are the same as the Company's reportable business segments (Benefits, Deferred Annuities, Income Annuities and Individual Life). The goodwill recognized is not deductible for tax purposes. The Company reviews goodwill for impairment at least annually, as of July 1, or more frequently if there are indicators of impairment, with consideration given to financial performance and estimates of the future profitability of the associated lines of business. When evaluating whether goodwill is impaired, the Company generally first determines through qualitative analysis whether relevant events and circumstances indicate that it is more likely than not that goodwill balances are impaired. If it is determined that it is more likely than not that an impairment exists, the Company compares its estimate of the fair value of the reporting unit to which the goodwill is assigned to the reporting unit's carrying amount, including goodwill. If the fair value is lower than the carrying amount, the Company determines the implied fair value of goodwill and records an impairment equal to the excess of the existing goodwill balance over the implied fair value. |
Available-for-sale Securities | Available-for-Sale Securities The Company classifies its investments in fixed maturities as available-for-sale and carries them at fair value. Fixed maturities primarily include bonds, mortgage-backed securities, collateralized loan obligations and redeemable preferred stock. See Note 7 for information on the valuation of these securities and additional disclosures regarding fair value measurements. In addition, as of the Merger Date, the Company classified all of its investments in marketable equity securities as available-for-sale. Equity investments primarily consist of common stock and exchange-traded funds (ETFs) in support of long-duration insurance products in the Income Annuities segment. Prior to the Merger, a portion was classified as trading. The Company reports net unrealized gains (losses) related to its available-for-sale securities in AOCI in stockholder’s equity, net of related DAC and VOBA adjustments and deferred income taxes. The cost of securities sold is determined using the specific-identification method. The Company reports interest and dividends earned, including prepayment fees or interest-related make whole payments, in net investment income. Prepayments of fixed maturities and commercial mortgage loans result in accelerated amortization or accretion of the premium or discount associated with the investment, which is recorded in realized gains and losses. Interest income for fixed maturities is recognized using the effective yield method. For mortgage-backed securities, the Company recognizes income using a constant effective yield based on anticipated prepayments and the estimated economic life of the securities. Quarterly, the Company compares actual prepayments to anticipated prepayments and recalculates the effective yield to reflect actual payments plus anticipated future payments. The Company includes any resulting adjustment in net investment income in the current period. When the collectibility of interest income for fixed maturities is considered doubtful, any accrued but uncollectible interest is deducted from investment income in the current period. The Company then places the securities on nonaccrual status, and they are not restored to accrual status until all delinquent interest and principal are paid. |
Mortgage Loans | For loans issued subsequent to the Merger, the carrying value of mortgage loans reflects outstanding principal balances, adjusted for unamortized deferred fees and costs, net of an allowance for loan losses. Loan origination fees and costs are deferred and amortized over the life of the loan. Interest income, including amortization of deferred fees and expenses, is recorded in net investment income using the effective interest rate method. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for losses on mortgage loans provides for the risk of credit loss inherent in the lending process. The allowance consists of a portfolio reserve for probable losses incurred but not specifically identified and, as needed, specific reserves for impaired loans. The allowance for losses on mortgage loans is evaluated at each reporting period and adjustments are recorded when appropriate. Loans are specifically evaluated for impairment if the Company considers it probable that amounts due according to the terms of the loan agreement will not be collected, or the loan is modified in a troubled debt restructuring. The Company establishes specific reserves for these loans when the fair value is less than the carrying value. |
Derivative Financial Instruments | The Company uses derivative financial instruments to hedge certain portions of its exposure to equity market risk, interest rate risk and foreign currency exchange risk. Derivative financial instruments currently held consist primarily of equity market contracts, interest rate swaps, and foreign currency swaps. Derivative instruments may be exchange-traded or contracted in the over-the-counter (OTC) market. The Company has established policies for managing its derivatives, including prohibitions on derivatives market-making and other speculative derivatives activities. All of the Company’s derivative financial instruments are individually recognized at fair value as either assets within derivatives and other invested assets, or liabilities within other liabilities in the consolidated balance sheets. The accounting for derivatives depends on whether it qualifies and has been designated for hedge accounting. To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated risk of the hedged item. Effectiveness of the hedge is formally assessed at inception and throughout the life of the hedging relationship. In connection with purchase accounting, the Company formally redesignated its hedge accounting relationships as of the Merger Date. When a derivative is designated as a cash flow hedge and is determined to be highly effective, changes in its fair value are recorded as a component of OCI and reclassified into net income in the same period during which the hedged transaction affects net income. Any hedge ineffectiveness is recorded in the consolidated statements of income (loss) within net realized gains (losses). If a derivative instrument does not qualify, or is not designated for hedge accounting, the changes in its fair value are recorded in the consolidated statements of income (loss) within net realized gains (losses). The Company prospectively discontinues hedge accounting when: (1) the criteria to qualify for hedge accounting is no longer met ( e.g. , the derivative is no longer highly effective in offsetting the change in cash flows of a hedged item); (2) the derivative expires, is sold, terminated or exercised; or (3) the derivative is de-designated as a hedging instrument for hedge accounting purposes. If it is determined that a derivative no longer qualifies as an effective hedge, the derivative continues to be carried in the consolidated balance sheet at its fair value, with changes in fair value recognized prospectively in the consolidated statements of income (loss) within net realized gains (losses). The Company also issues fixed indexed annuity contracts that contain embedded derivatives, which are recorded at fair value in funds held under deposit contracts in the consolidated balance sheets. Changes in fair value are recognized in net realized gains (losses). |
Fair Value of Financial Instruments | The Company determines the fair value of its financial instruments based on the fair value hierarchy, which favors the use of observable inputs over the use of unobservable inputs. The Company has categorized its financial instruments into the three-level hierarchy, which gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The level assigned to a fair value measurement is based on the lowest-level input that is significant to the measurement. The fair value measurements for the Company's financial instruments are categorized as follows: • Level 1 — Unadjusted quoted prices in active markets for identical instruments. • Level 2 — Quoted prices for similar instruments in active markets and model-derived valuations whose inputs are observable. This category includes financial instruments that are valued using industry-standard pricing methodologies or models. All significant inputs are observable or derived from observable information in the marketplace. • Level 3 — Fair value estimates whose significant inputs are unobservable. This includes financial instruments for which fair value is estimated based on industry-standard pricing methodologies and internally developed models utilizing significant inputs not based on or corroborated by readily available market information. In limited circumstances, this may also utilize estimates based on non-binding broker quotes. The Company determines the fair value of its financial instruments based on the fair value hierarchy, which favors the use of observable inputs over the use of unobservable inputs. The Company has categorized its financial instruments into the three-level hierarchy, which gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The level assigned to a fair value measurement is based on the lowest-level input that is significant to the measurement. The fair value measurements for the Company's financial instruments are categorized as follows: • Level 1 — Unadjusted quoted prices in active markets for identical instruments. • Level 2 — Quoted prices for similar instruments in active markets and model-derived valuations whose inputs are observable. This category includes financial instruments that are valued using industry-standard pricing methodologies or models. All significant inputs are observable or derived from observable information in the marketplace. • Level 3 — Fair value estimates whose significant inputs are unobservable. This includes financial instruments for which fair value is estimated based on industry-standard pricing methodologies and internally developed models utilizing significant inputs not based on or corroborated by readily available market information. In limited circumstances, this may also utilize estimates based on non-binding broker quotes. |
Deferred Policy Acquisition Costs and Value of Business Acquired | The Company defers costs that are directly related to the successful acquisition or renewal of insurance contracts. These primarily include commissions, distribution costs directly related to sales, third-party underwriting costs and the portion of salaries and benefits directly related to processing successful new and renewal contracts. All other acquisition-related costs, including costs incurred for soliciting potential customers, managing the distribution and underwriting functions, training, administration, unsuccessful acquisition or renewal efforts, market research and product development are not deferrable and are expensed in the period incurred. On the date of the Merger, the Company's DAC balance was reset to zero, and a balance for VOBA was established, representing the right to receive future gross profits from cash flows and earnings of the Company's existing business. VOBA was based on the actuarially estimated present value of future cash flows from the Company's insurance policies and annuity contracts in-force on the date of the Merger. The estimated present value of future cash flows used in the calculation of VOBA was based on certain assumptions, including lapse rates, mortality experience, maintenance expenses, crediting rates, and investment performance that the Company expects to experience in future years. The Company amortizes DAC and VOBA for deferred annuity contracts and universal life insurance policies over the lives of the contracts or policies in proportion to the estimated future gross profits. To estimate future gross profits, the Company makes assumptions as to lapse rates, mortality experience, maintenance expenses, crediting rates, and investment performance. Actual profits can vary from the estimates and can thereby result in increases or decreases to DAC and VOBA amortization. The Company regularly evaluates its assumptions and, when necessary, revises the estimated gross profits of these contracts, resulting in assumption and experience unlocking adjustments to DAC and VOBA amortization recorded in the consolidated statements of income (loss). The Company amortizes acquisition costs for traditional individual life insurance policies over the premium paying period of the related policies, using assumptions consistent with those used in computing policy reserves. The Company amortizes acquisition costs for immediate annuities using a constant yield approach. The Company adjusts the unamortized DAC and VOBA balances for the effect of net unrealized gains and losses on securities as if they had been realized as of the balance sheet date. The Company includes the impact of this adjustment, net of tax, in AOCI. The Company also adjusts its unamortized DAC and VOBA balances for the effect of realized gains and losses including changes in fair value of the embedded derivatives for the Company's FIA policies. These adjustments are recognized in net realized gains (losses) in the consolidated statements of income (loss). |
Commitments and Contingencies | Because of the nature of its business, the Company is subject to legal actions filed or threatened in the ordinary course of its business operations. The Company establishes liabilities for litigation and regulatory actions when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. For matters where a loss is believed to be reasonably possible, but not probable, no liability is established. For such matters, the Company may provide an estimate of the possible loss or range of loss or a statement that such an estimate cannot be made. The Company reviews relevant information with respect to litigation and regulatory matters on a quarterly basis and updates its established liabilities, disclosures and estimates of reasonably possible losses or range of loss based on such reviews. Because of the nature of its business, the Company is subject to legal actions filed or threatened in the ordinary course of its business operations. The Company establishes liabilities for litigation and regulatory actions when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. For matters where a loss is believed to be reasonably possible, but not probable, no liability is established. For such matters, the Company may provide an estimate of the possible loss or range of loss or a statement that such an estimate cannot be made. The Company reviews relevant information with respect to litigation and regulatory matters on a quarterly basis and updates its established liabilities, disclosures and estimates of reasonably possible losses or range of loss based on such reviews. |
Segment Information | The accounting policies of the segments are the same as those described for the Company, except for the method of capital allocation. The Company has an internally developed risk-based capital model, the purpose of which is to measure the risk in the business and to provide a basis upon which capital is deployed. This model accounts for the unique and specific nature of the risks inherent in the Company’s business segments. A portion of net investment income on surplus investments held in the Other segment, but not the invested assets, is allocated to the business segments based on the level of allocated capital. |
Reinsurance | The Company reinsures portions of its insurance risk, primarily in the Individual Life and Benefits segments, in order to spread risk and limit losses. Reinsurance agreements are evaluated for risk transfer to determine if they qualify for reinsurance accounting. If they qualify, the Company accounts for reinsurance premiums, commissions, expense reimbursements, benefits and reserves related to reinsured business on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. If the agreements do not qualify, they are accounted for on a deposit contract basis. The Company remains liable to its policyholders to the extent that counterparties to reinsurance contracts do not meet their contractual obligations. Accordingly, the future policy benefit reserves and policy and contract claims liabilities are reported gross of any related reinsurance recoverables, which are reported as assets. The Company reports premiums, benefits, and settlement expenses net of reinsurance in the consolidated statements of income (loss). |
Liability for Unpaid Claims | Liabilities for policy and contract claims primarily represent liabilities for claims under medical stop-loss, group life and DI, and individual life policies. These liabilities are established on the basis of reported losses. The Company also provides for claims incurred but not reported (IBNR). For medical stop-loss and group life and DI policies, this is based on expected loss ratios, claims paying completion patterns and historical experience. If expected loss ratios increase or expected claims paying completion patterns extend, the IBNR claim liability increases. The Company reviews estimates for reported but unpaid claims and IBNR claims quarterly. Any necessary adjustments are reflected in earnings. |
Income Taxes | Symetra Life files a consolidated federal income tax return with its wholly-owned subsidiaries. Income taxes have been determined using the liability method. The provision for income taxes has two components: amounts currently payable or receivable and deferred income taxes. The deferred income taxes are calculated as the difference between the book and tax bases of the appropriate assets and liabilities and are measured using enacted tax rates. The Company includes penalties and interest related to unrecognized tax benefits in the calculation of income tax expense in the accompanying consolidated statements of income (loss). The Company files income tax returns in the U.S. federal and various state jurisdictions. The Company's federal income tax returns have been examined and closing agreements have been executed with the Internal Revenue Service (IRS), or the statute of limitations has expired, for all tax periods through December 31, 2012. Based upon a 2016 federal carryback claim, the Company's tax year 2013 is open for examination until 2020. The Company is not currently subject to any state income tax examinations. The Company receives investment tax credits from its investments in certain limited partnerships. These are accounted for using the flow-through method. Refer to Note 4 for further discussion of our tax credit investments. Income Taxes The Company had a negative effective tax rate for the six months ended June 30, 2018 and 2017. The Company's effective tax rate differs from the U.S. federal income tax rate each year, primarily due to benefits from the Company's tax credit investments relative to the forecasted income from operations for the full fiscal year On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the "2017 Tax Act") was signed into law. The effects of the 2017 Tax Act were reasonably estimated and recorded as a provisional amount for the year ended December 31, 2017. As analysis of the 2017 Tax Act is completed, and any additional guidance is issued and interpreted, there may be adjustments to this provisional amount, which will be recorded in the provision for income taxes in the period made. There were no significant adjustments to the provisional amount recorded during the six months ended June 30, 2018. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements | Standard Description Required date of adoption Effect on the financial statements or other significant matters Accounting Pronouncements Newly Adopted Update No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income This standard permits entities to reclassify the residual tax effects arising from the change in enacted tax rate from the Tax Cuts and Jobs Act of 2017 (the "2017 Tax Act"). Under the standard, the tax effects stranded in accumulated other comprehensive income may be reclassified to retained earnings. January 1, 2019 The Company early adopted this guidance using a retrospective approach, and elected to reclassify tax effects stranded in accumulated other comprehensive income (AOCI) to retained earnings for its December 31, 2017 Financial Statements. See the Statement of Stockholder's Equity and Note 9 for the impact of adoption. Standard Description Required date of adoption Effect on the financial statements or other significant matters Accounting Pronouncements Not Yet Adopted Update No. 2016-01, Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities This standard amends recognition and disclosure requirements primarily for equity investments carried at fair value. Under the standard, changes in fair value will be recorded in income. In addition, the requirement to disclose the fair value of financial instruments held at amortized cost has been eliminated for nonpublic companies. January 1, 2018 The Company adopted the standard using a modified retrospective approach. Update No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities This standard amends the recognition and measurement of hedging instruments to better represent an entity's risk management activities. Under the standard, the requirement to separately measure and report hedge ineffectiveness is eliminated. In addition, the standard provides relief from certain initial documentation requirements and replaces the requirement for quarterly quantitative ineffectiveness testing with a qualitative approach. January 1, 2019 The Company is in the early stages of evaluating the potential impact of the standard on its financial statements. The Company holds derivative instruments that will be impacted by the standard (See Note 6 for details regarding these holdings). Upon adoption, the Company will apply the standard using a modified retrospective approach. The Company is considering whether to early adopt. Update No. 2016-02, Leases (Topic 842) This standard amends the recognition requirements for all leases with a term greater than 12 months and provides new guidelines for the identification of a lease within a contract. Under the standard, companies must measure and recognize a liability to make lease payments and a right-of-use asset representing the right to use the underlying asset for the lease term. In addition, the standard requires expanded quantitative and qualitative disclosures. January 1, 2019 The Company is in the early stages of evaluating the potential impact of the standard on its financial statements. The majority of the Company's leases are currently accounted for as operating leases. Upon adoption, the Company will apply the standard using a modified retrospective approach and apply the requirements to all existing leases. Update No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities This standard amends the guidance for amortization of premiums on purchased callable debt securities. Under the standard, premiums on these securities will be amortized to the earliest call date, rather than final maturity of the security. The guidance applies only to bonds for which the call date and price is fixed. Further, the amortization period for debt securities carried at a discount will not be impacted. January 1, 2019 The Company is in the early stages of evaluating the potential impact of the standard on its financial statements. Upon adoption, the Company will apply the standard using a modified retrospective approach. Accounting Pronouncements Not Yet Adopted (cont.) Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326) This standard amends the credit loss measurement guidance for available-for-sale securities. Credit losses will be recognized in a credit allowance account rather than as reductions in the amortized cost of the securities. Further, entities are no longer allowed to consider length of time a security has been underwater as a factor when evaluating credit losses. This standard also amends existing guidance on the impairment of certain financial instruments by adding an impairment model that reflects expected credit losses. This requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. January 1, 2020 The Company is in the early stages of evaluating the potential impact of the standard on its financial statements. Upon adoption, the Company will apply the standard using a modified retrospective approach. Update No. 2017-04, Intangibles - Goodwill and Other (Topic 350) This standard removes the requirement to calculate the implied fair value of goodwill (Step 2 of the goodwill impairment test) to measure a goodwill impairment charge. A goodwill impairment charge will now be measured as the amount by which a reporting unit's carrying value exceeds its fair value determined in Step 1 of the goodwill impairment test. This impairment test will be applied to goodwill assigned to all reporting units, even those with zero or negative carrying amounts. Entities will be required to disclose the amount of goodwill assigned to reporting units with zero or negative carrying amounts. January 1, 2020 The Company is monitoring the potential impact of the standard on its annual goodwill impairment assessment. Upon adoption, the Company will apply the standard prospectively. |
Sumitomo Life Merger (Tables)
Sumitomo Life Merger (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the fair value of the Company's assets acquired and liabilities assumed at the Merger Date: Fair Value Assets Fixed maturities $ 26,638.8 Marketable equity securities 627.5 Mortgage loans 5,077.0 Policy loans 58.3 Investments in limited partnerships 238.7 Derivatives 149.7 Total investments 32,790.0 Cash and cash equivalents 254.0 Accrued investment income 326.6 Reinsurance recoverables 321.5 VOBA 457.6 Receivables and other assets 217.0 Other intangible assets 1,416.8 Goodwill 563.0 Separate account assets 858.2 Total assets $ 37,204.7 Liabilities Funds held under deposit contracts $ 31,047.4 Future policy benefits 459.3 Policy and contract claims 144.2 Other policyholders' funds 150.7 Deferred income tax liabilities, net 260.8 Other liabilities 338.0 Separate account liabilities 858.2 Total liabilities 33,258.6 Net assets acquired $ 3,946.1 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | Identified intangible assets recognized by the Company included the following: Estimated Fair Value on Merger Date Weighted Average Estimated Useful Life VODA $ 782.0 35 years VOCRA 361.8 10 years Trade names 190.0 17 years Technology 72.0 5 years Total intangible assets subject to amortization 1,405.8 24.3 years Insurance licenses 11.0 Indefinite Total intangible assets $ 1,416.8 The following table sets forth the gross carrying amounts and accumulated amortization for identified intangible assets as of December 31, 2017 and 2016: As of December 31, 2017 As of December 31, 2016 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization VODA $ 782.0 $ (43.5 ) $ 782.0 $ (20.8 ) VOCRA 361.8 (69.4 ) 361.8 (33.1 ) Trade names 190.0 (21.4 ) 190.0 (10.3 ) Technology 72.0 (27.6 ) 72.0 (13.2 ) Total intangible assets subject to amortization 1,405.8 (161.9 ) 1,405.8 (77.4 ) Insurance licenses 11.0 — 11.0 — Total intangible assets $ 1,416.8 $ (161.9 ) $ 1,416.8 $ (77.4 ) |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table sets forth the estimated future aggregate amortization expense for the next 5 years: Year Amount 2018 $ 84.5 2019 84.5 2020 84.5 2021 70.9 2022 69.6 The following table sets forth the estimated future aggregate amortization expense for the next 5 years: Year Amount 2018 (remaining) $ 42.3 2019 84.5 2020 84.5 2021 70.9 2022 69.6 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Identified Finite-Lived Intangible Assets | Identified intangible assets recognized by the Company included the following: As of June 30, 2018 As of December 31, 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization VODA $ 782.0 $ (54.9 ) $ 782.0 $ (43.5 ) VOCRA 361.8 (87.3 ) 361.8 (69.4 ) Trade names 190.0 (27.0 ) 190.0 (21.4 ) Technology 72.0 (34.8 ) 72.0 (27.6 ) Total intangible assets subject to amortization 1,405.8 (204.0 ) 1,405.8 (161.9 ) Insurance licenses 11.0 — 11.0 — Total intangible assets $ 1,416.8 $ (204.0 ) $ 1,416.8 $ (161.9 ) |
Schedule of Identified Indefinite-Lived Intangible Assets | Identified intangible assets recognized by the Company included the following: As of June 30, 2018 As of December 31, 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization VODA $ 782.0 $ (54.9 ) $ 782.0 $ (43.5 ) VOCRA 361.8 (87.3 ) 361.8 (69.4 ) Trade names 190.0 (27.0 ) 190.0 (21.4 ) Technology 72.0 (34.8 ) 72.0 (27.6 ) Total intangible assets subject to amortization 1,405.8 (204.0 ) 1,405.8 (161.9 ) Insurance licenses 11.0 — 11.0 — Total intangible assets $ 1,416.8 $ (204.0 ) $ 1,416.8 $ (161.9 ) |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table sets forth the estimated future aggregate amortization expense for the next 5 years: Year Amount 2018 $ 84.5 2019 84.5 2020 84.5 2021 70.9 2022 69.6 The following table sets forth the estimated future aggregate amortization expense for the next 5 years: Year Amount 2018 (remaining) $ 42.3 2019 84.5 2020 84.5 2021 70.9 2022 69.6 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Summaries of Available-for-sale Fixed Maturities | The following tables summarize the Company's available-for-sale fixed maturities and marketable equity securities. As of the Merger Date, the book value of the Company’s fixed maturity and marketable equity securities was increased to fair value, which resulted in the elimination of previously recorded unrealized gains and losses from AOCI and an overall net premium balance included in the new cost basis. As of December 31, 2017 Cost or Gross Gross Fair Value Fixed maturities: U.S. government and agencies $ 426.9 $ 0.2 $ (4.9 ) $ 422.2 State and political subdivisions 794.3 5.0 (6.9 ) 792.4 Corporate securities 23,223.8 768.9 (60.5 ) 23,932.2 Residential mortgage-backed securities 2,516.0 6.6 (49.8 ) 2,472.8 Commercial mortgage-backed securities 795.0 3.8 (3.1 ) 795.7 Collateralized loan obligations 1,128.1 18.5 — 1,146.6 Other debt obligations 715.1 9.8 (5.5 ) 719.4 Total fixed maturities 29,599.2 812.8 (130.7 ) 30,281.3 Marketable equity securities 611.4 150.7 (6.4 ) 755.7 Total $ 30,210.6 $ 963.5 $ (137.1 ) $ 31,037.0 As of December 31, 2016 Cost or Gross Gross Fair Value Fixed maturities: U.S. government and agencies $ 397.3 $ 0.4 $ (5.6 ) $ 392.1 State and political subdivisions 943.0 1.3 (13.5 ) 930.8 Corporate securities 21,497.2 423.5 (151.7 ) 21,769.0 Residential mortgage-backed securities 2,633.1 3.7 (52.2 ) 2,584.6 Commercial mortgage-backed securities 920.5 2.7 (6.4 ) 916.8 Collateralized loan obligations 1,198.7 18.7 (3.8 ) 1,213.6 Other debt obligations 507.7 4.2 (6.8 ) 505.1 Total fixed maturities 28,097.5 454.5 (240.0 ) 28,312.0 Marketable equity securities 642.7 81.9 (7.2 ) 717.4 Total $ 28,740.2 $ 536.4 $ (247.2 ) $ 29,029.4 The following tables summarize the Company's available-for-sale fixed maturities: As of June 30, 2018 Cost or Gross Gross Fair Value U.S. government and agencies $ 305.1 $ 0.7 $ (8.5 ) $ 297.3 State and political subdivisions 761.9 1.3 (16.3 ) 746.9 Corporate securities 24,165.4 278.4 (509.4 ) 23,934.4 Residential mortgage-backed securities 2,520.1 4.7 (98.6 ) 2,426.2 Commercial mortgage-backed securities 769.1 0.5 (14.0 ) 755.6 Collateralized loan obligations 1,099.4 8.8 (2.7 ) 1,105.5 Other debt obligations 865.7 6.8 (13.9 ) 858.6 Total $ 30,486.7 $ 301.2 $ (663.4 ) $ 30,124.5 As of December 31, 2017 Cost or Gross Gross Fair Value U.S. government and agencies $ 426.9 $ 0.2 $ (4.9 ) $ 422.2 State and political subdivisions 794.3 5.0 (6.9 ) 792.4 Corporate securities 23,223.8 768.9 (60.5 ) 23,932.2 Residential mortgage-backed securities 2,516.0 6.6 (49.8 ) 2,472.8 Commercial mortgage-backed securities 795.0 3.8 (3.1 ) 795.7 Collateralized loan obligations 1,128.1 18.5 — 1,146.6 Other debt obligations 715.1 9.8 (5.5 ) 719.4 Total $ 29,599.2 $ 812.8 $ (130.7 ) $ 30,281.3 |
Schedules of Corporate Fixed Securities Portfolio by Sector and Mortgage Loans by Risk Category | The following table presents the composition of the Company's corporate securities portfolio by sector: As of December 31, 2017 As of December 31, 2016 Fair Value % of Total Fair Value % of Total Industrial $ 4,446.7 18.6 % $ 4,020.8 18.5 % Consumer discretionary 3,379.9 14.1 2,994.9 13.8 Utilities 3,088.8 12.9 2,466.4 11.3 Financial 2,826.1 11.8 2,281.5 10.5 Consumer staples 2,704.0 11.3 2,785.5 12.8 Health care 2,635.5 11.0 2,832.6 13.0 Other 4,851.2 20.3 4,387.3 20.1 Total $ 23,932.2 100.0 % $ 21,769.0 100.0 % The following table sets forth the Company's mortgage loans by risk category: As of December 31, 2017 As of December 31, 2016 Balance % Balance % Lower risk $ 1,486.1 69.8 % $ 760.4 70.3 % Medium risk 486.3 22.8 261.9 24.2 Higher risk 157.6 7.4 59.2 5.5 Subtotal, excluding certain PGAAP loans 2,130.0 100.0 1,081.5 100.0 Lower risk 2,899.2 70.7 3,097.6 67.2 Medium risk 896.8 21.8 1,071.3 23.2 Higher risk 308.4 7.5 441.3 9.6 Subtotal, certain PGAAP loans (1) 4,104.4 100.0 % 4,610.2 100.0 % Loans specifically evaluated for impairment (2) 4.8 — Other (3) 2.0 0.5 Total $ 6,241.2 $ 5,692.2 ________________ (1) Represents loans set to fair value on February 1, 2016 for which there are no indications of subsequent credit deterioration. (2) As of both December 31, 2017 and 2016, no reserve amounts were held for loans specifically evaluated for impairment. (3) Includes allowance for loan losses and deferred fees and costs. The following table presents the composition of the Company's corporate securities portfolio by sector: As of June 30, 2018 As of December 31, 2017 Fair Value % of Total Fair Value % of Total Industrial $ 4,418.5 18.5 % $ 4,446.7 18.6 % Consumer discretionary 3,420.4 14.3 3,379.9 14.1 Utilities 3,109.2 13.0 3,088.8 12.9 Financial 2,864.5 12.0 2,826.1 11.8 Consumer staples 2,713.2 11.3 2,704.0 11.3 Health care 2,510.5 10.5 2,635.5 11.0 Other 4,898.1 20.4 4,851.2 20.3 Total $ 23,934.4 100.0 % $ 23,932.2 100.0 % The following table sets forth the Company's mortgage loans by risk category: As of June 30, 2018 As of December 31, 2017 Balance % Balance % Lower risk $ 1,681.8 68.5 % $ 1,486.1 69.8 % Medium risk 507.8 20.7 486.3 22.8 Higher risk 265.7 10.8 157.6 7.4 Subtotal, excluding certain PGAAP loans 2,455.3 100.0 2,130.0 100.0 Lower risk 2,746.0 71.7 2,899.2 70.7 Medium risk 806.9 21.1 896.8 21.8 Higher risk 274.5 7.2 308.4 7.5 Subtotal, certain PGAAP loans (1) 3,827.4 100.0 % 4,104.4 100.0 % Loans specifically evaluated for impairment (2) — 4.8 Other (3) 2.3 2.0 Total $ 6,285.0 $ 6,241.2 ________________ (1) Represents loans set to fair value on February 1, 2016 for which there are no indications of subsequent credit deterioration. (2) As of both June 30, 2018 and December 31, 2017, no reserve amounts were held for loans specifically evaluated for impairment. (3) Includes allowance for loan losses and deferred fees and costs. |
Summaries of Marketable Securities | The following table provides additional information about equity investments held by the Company as of December 31, 2017: Cost or Amortized Cost Fair Value Amount as shown in Balance Sheet Marketable Equity Securities: Banks, trusts, and insurance companies $ 431.9 $ 550.0 $ 550.0 Industrial, miscellaneous, and all other 146.6 173.1 173.1 Nonredeemable preferred stock 32.9 32.6 32.6 Total marketable equity securities $ 611.4 $ 755.7 $ 755.7 |
Summary of Fair Value of Available-for-sale Securities in a Continuous Unrealized Loss Position | The following tables summarize gross unrealized losses and fair values of the Company's available-for-sale investments. The tables are aggregated by investment category and present separately those securities that have been in a continuous unrealized loss position for less than twelve months and for twelve months or more. As of December 31, 2017 Less Than 12 Months 12 Months or More Fair Value Gross Unrealized Losses # of Securities Fair Value Gross Unrealized Losses # of Securities Fixed maturities: U.S. government and agencies $ 111.2 $ (0.3 ) 4 $ 206.2 $ (4.6 ) 30 State and political subdivisions 311.8 (2.8 ) 48 169.7 (4.1 ) 36 Corporate securities 4,963.8 (34.3 ) 396 1,257.7 (26.2 ) 82 Residential mortgage-backed securities 693.4 (7.7 ) 176 1,509.9 (42.1 ) 351 Commercial mortgage-backed securities 296.5 (1.4 ) 24 60.5 (1.7 ) 19 Collateralized loan obligations 10.0 — 1 — — — Other debt obligations 218.0 (2.5 ) 32 109.3 (3.0 ) 13 Total fixed maturities 6,604.7 (49.0 ) 681 3,313.3 (81.7 ) 531 Marketable equity securities 34.8 (3.3 ) 153 40.7 (3.1 ) 9 Total $ 6,639.5 $ (52.3 ) 834 $ 3,354.0 $ (84.8 ) 540 As of December 31, 2016 Less Than 12 Months 12 Months or More Fair Value Gross Unrealized Losses # of Securities Fair Value Gross Unrealized Losses # of Securities Fixed maturities: U.S. government and agencies $ 273.4 $ (5.6 ) 41 $ — $ — — State and political subdivisions 758.8 (13.5 ) 118 — — — Corporate securities 8,282.2 (151.7 ) 546 — — — Residential mortgage-backed securities 2,358.1 (52.2 ) 467 — — — Commercial mortgage-backed securities 449.6 (6.4 ) 54 — — — Collateralized loan obligations 384.2 (3.8 ) 27 — — — Other debt obligations 388.6 (6.8 ) 48 — — — Total fixed maturities 12,894.9 (240.0 ) 1,301 — — — Marketable equity securities 95.0 (7.2 ) 36 — — — Total $ 12,989.9 $ (247.2 ) 1,337 $ — $ — — The following tables summarize gross unrealized losses and fair values of the Company's available-for-sale investments. The tables are aggregated by investment category and present separately securities that have been in a continuous unrealized loss position for less than twelve months and for twelve months or more. As of June 30, 2018 Less Than 12 Months 12 Months or More Fair Gross # of Fair Gross # of U.S. government and agencies $ 33.5 $ (1.0 ) 8 $ 189.1 $ (7.5 ) 30 State and political subdivisions 510.4 (9.6 ) 74 165.5 (6.7 ) 38 Corporate securities 16,297.7 (437.2 ) 1,126 1,304.2 (72.2 ) 110 Residential mortgage-backed securities 797.9 (24.3 ) 186 1,476.3 (74.3 ) 392 Commercial mortgage-backed securities 591.8 (11.4 ) 50 51.3 (2.6 ) 18 Collateralized loan obligations 477.9 (2.7 ) 31 — — — Other debt obligations 412.6 (10.0 ) 49 88.1 (3.9 ) 12 Total $ 19,121.8 $ (496.2 ) 1,524 $ 3,274.5 $ (167.2 ) 600 As of December 31, 2017 Less Than 12 Months 12 Months or More Fair Gross # of Fair Gross # of U.S. government and agencies $ 111.2 $ (0.3 ) 4 $ 206.2 $ (4.6 ) 30 State and political subdivisions 311.8 (2.8 ) 48 169.7 (4.1 ) 36 Corporate securities 4,963.8 (34.3 ) 396 1,257.7 (26.2 ) 82 Residential mortgage-backed securities 693.4 (7.7 ) 176 1,509.9 (42.1 ) 351 Commercial mortgage-backed securities 296.5 (1.4 ) 24 60.5 (1.7 ) 19 Collateralized loan obligations 10.0 — 1 — — — Other debt obligations 218.0 (2.5 ) 32 109.3 (3.0 ) 13 Total $ 6,604.7 $ (49.0 ) 681 $ 3,313.3 $ (81.7 ) 531 |
Summary of Amortized Costs and Fair Values of Fixed Maturities | The following table summarizes the amortized costs and fair values of fixed maturities as of December 31, 2017 , by contractual years to maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. Amortized Cost Fair Value One year or less $ 896.0 $ 895.9 Over one year through five years 8,179.0 8,275.6 Over five years through ten years 10,136.9 10,346.4 Over ten years 5,333.4 5,730.3 Total fixed maturities with contractual maturity dates 24,545.3 25,248.2 Residential mortgage-backed securities 2,516.0 2,472.8 Commercial mortgage-backed securities 795.0 795.7 Collateralized loan obligations 1,128.1 1,146.6 Other asset-backed securities 614.8 618.0 Total fixed maturities $ 29,599.2 $ 30,281.3 The following table summarizes the amortized costs and fair values of fixed maturities as of June 30, 2018 by contractual years to maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. Amortized Cost Fair Value One year or less $ 1,320.1 $ 1,317.4 Over one year through five years 8,186.3 8,112.6 Over five years through ten years 10,273.7 10,067.8 Over ten years 5,547.6 5,575.5 Total fixed maturities with contractual maturity dates 25,327.7 25,073.3 Residential mortgage-backed securities 2,520.1 2,426.2 Commercial mortgage-backed securities 769.1 755.6 Collateralized loan obligations 1,099.4 1,105.5 Other asset-backed securities 770.4 763.9 Total fixed maturities $ 30,486.7 $ 30,124.5 |
Summary of Net Investment Income | The following table summarizes the Company's net investment income: Successor Predecessor For the Year Ended February 1 to January 1 to For the Year Ended Fixed maturities $ 1,055.8 $ 915.3 $ 95.5 $ 1,151.3 Marketable equity securities 17.9 19.4 0.3 18.1 Mortgage loans 239.9 195.1 21.3 247.6 Other (1) 9.9 7.1 (4.1 ) (40.2 ) Total investment income 1,323.5 1,136.9 113.0 1,376.8 Investment expenses (39.4 ) (35.6 ) (3.3 ) (37.4 ) Net investment income $ 1,284.1 $ 1,101.3 $ 109.7 $ 1,339.4 ____________________ (1) Predecessor Company income included net pass through activity from tax credit investments. The following table summarizes the Company's net investment income: For the Six Months Ended June 30, 2018 2017 Fixed maturities $ 545.7 $ 529.7 Marketable equity securities 8.5 8.1 Mortgage loans 132.6 117.4 Other 6.0 4.5 Total investment income 692.8 659.7 Investment expenses (21.5 ) (19.1 ) Net investment income $ 671.3 $ 640.6 |
Summary of Net Realized Gains (Losses) | The following table summarizes the Company's net realized gains (losses): Successor Predecessor For the Year Ended February 1 to January 1 to For the Year Ended Fixed maturities: Gross gains on sales $ 23.1 $ 20.7 $ 2.4 $ 13.2 Gross losses on sales (10.4 ) (24.3 ) (1.2 ) (22.2 ) Net impairment losses (6.4 ) (10.7 ) (3.8 ) (38.6 ) Marketable equity securities, available-for-sale: Gross gains on sales 29.9 4.7 — 10.4 Gross losses on sales (3.3 ) (4.2 ) — (3.1 ) Investments in limited partnerships (1): Tax credit investments (54.9 ) (47.1 ) (0.6 ) (40.9 ) Net gains (losses) - FIA (2) 48.1 0.7 (4.2 ) (16.1 ) DAC and VOBA adjustment (16.6 ) 3.7 (0.5 ) 7.2 Other (3) (7.6 ) (53.8 ) 3.5 (13.0 ) Marketable equity securities, trading (4) — — (22.5 ) 10.0 Net realized gains (losses) $ 1.9 $ (110.3 ) $ (26.9 ) $ (93.1 ) ____________________ (1) Successor Company results reflect losses related to tax credit investments. Prior to the Merger, pass through activity from tax credit investments was recorded in net investment income. Historical periods have not been adjusted. (2) Includes changes of fair value of the FIA embedded derivative (VED) and related options, excluding options related to the Company's block of FIA business sold during the late 1990s. Also includes the impact of annual unlocking on the VED, which is further discussed in Note 7. (3) Includes net gains (losses) related to calls and redemptions, certain derivatives not designated for hedge accounting, commercial mortgage loans, and other instruments. For more information on net gain (losses) on derivatives not designated as hedges, refer to Note 6. (4) Predecessor Company results include net gains (losses) on changes in the fair value of trading securities held as of period end totaling $ (22.7) and $4.0 for the one month ended January 31, 2016 and the year ended December 31, 2015, respectively. The following table summarizes the Company's net realized gains (losses): For the Six Months Ended June 30, 2018 2017 Fixed maturities: Gross gains on sales $ 5.1 $ 11.2 Gross losses on sales (10.6 ) (4.6 ) Net impairment losses (3.0 ) (2.0 ) Marketable equity securities (1) (5.8 ) 24.4 Investments in limited partnerships (2): Tax credit investments (23.7 ) (16.8 ) Net gains (losses) - FIA (3) 14.1 — DAC and VOBA adjustment (7.2 ) (1.1 ) Other (4) (27.7 ) (15.4 ) Net realized losses $ (58.8 ) $ (4.3 ) ____________________ (1) Includes net gains on changes in the fair value of equity securities held, totaling $3.6 for the six months ended June 30, 2018. (2) Reflect losses related to tax credit investments. (3) Includes changes of fair value of the FIA embedded derivative (VED) and related options, excluding options related to the Company's block of FIA business sold during the late 1990s. (4) Includes net gains (losses) related to calls and redemptions, certain derivatives not designated for hedge accounting, commercial mortgage loans, and other instruments. For more information on net gain (losses) on derivatives not designated as hedges, refer to Note 6. |
Summary of Write-Downs on Available-For-Sale Fixed Maturities | The largest write-downs recorded through net realized gains (losses) on fixed maturities were related to investments in the following sectors: Successor Predecessor For the Year Ended December 31, 2017 February 1 to December 31, 2016 January 1 to For the Year Ended December 31, 2015 Amount % of Total Amount % of Total Amount % of Total Amount % of Total U.S. Federal Government (1) 3.1 48.4 3.7 34.6 — — 1.6 4.1 Telecommunication services 2.6 40.6 — — — — — — Health care 0.5 7.8 1.6 15.0 — — — — Financials 0.1 1.6 4.2 39.3 — — 1.8 4.7 Energy — — 0.4 3.7 3.8 100.0 30.5 79.0 Other 0.1 1.6 0.8 7.4 — — 4.7 12.2 Net impairment losses recognized in earnings $ 6.4 100.0 % $ 10.7 100.0 % $ 3.8 100.0 % $ 38.6 100.0 % ____________________ (1) Impairments on U.S. Federal Government securities are due to the Company's intent to sell and reflect the impact of interest rate movements. |
Summary of Severity and Duration of Unrealized Losses On Available-For-Sale Fixed Maturities | The following table presents the severity and duration of the gross unrealized losses on the Company's underwater available-for-sale fixed maturities, after the recognition of OTTI: As of December 31, 2017 As of December 31, 2016 Fair Value Gross Unrealized Losses # of Securities Fair Value Gross Unrealized Losses # of Securities Fixed maturities: Underwater by 20% or more: Less than 6 consecutive months $ 5.2 $ (1.7 ) 6 $ 1.9 $ (0.6 ) 2 6 consecutive months or more 0.9 (0.8 ) 3 0.1 (0.3 ) 5 Total underwater by 20% or more 6.1 (2.5 ) 9 2.0 (0.9 ) 7 All other underwater fixed maturities 9,911.9 (128.2 ) 1,203 12,892.9 (239.1 ) 1,294 Total underwater fixed maturities $ 9,918.0 $ (130.7 ) 1,212 $ 12,894.9 $ (240.0 ) 1,301 The following table presents the severity and duration of the gross unrealized losses on the Company's underwater available-for-sale fixed maturities, after the recognition of OTTI: As of June 30, 2018 As of December 31, 2017 Fair Value Gross Unrealized Losses # of Securities Fair Gross # of Securities Fixed maturities: Underwater by 20% or more: Less than 6 consecutive months $ 3.6 $ (1.1 ) 6 $ 5.2 $ (1.7 ) 6 6 consecutive months or more 1.7 (0.9 ) 5 0.9 (0.8 ) 3 Total underwater by 20% or more 5.3 (2.0 ) 11 6.1 (2.5 ) 9 All other underwater fixed maturities 22,391.0 (661.4 ) 2,103 9,911.9 (128.2 ) 1,203 Total underwater fixed maturities $ 22,396.3 $ (663.4 ) 2,114 $ 9,918.0 $ (130.7 ) 1,212 |
Changes in the Amount of Credit-related OTTI Recognized in Earnings | Changes in the amount of credit-related OTTI recognized in net income where the portion related to other factors was recognized in other comprehensive income (OCI) were as follows: Successor Predecessor For the Year Ended February 1 to January 1 to For the Year Ended December 31, 2015 Balance, beginning of period $ 4.4 $ — $ 27.7 $ 20.1 Increases recognized in the current period: For which an OTTI was not previously recognized 0.2 4.1 — 8.3 For which an OTTI was previously recognized — 0.9 — 7.8 Decreases attributable to: Securities sold or paid down during the period (0.8 ) (0.6 ) (0.4 ) (7.4 ) Previously recognized credit losses on securities impaired during the period due to a change in intent to sell (1) — — — (1.1 ) Balance, end of period $ 3.8 $ 4.4 $ 27.3 $ 27.7 ____________________ (1) Represents circumstances where the Company determined in the period that it intended to sell the security prior to recovery of its amortized cost. Changes in the amount of credit-related OTTI recognized in net income when the portion related to other factors was recognized in other comprehensive income (loss) (OCI) were as follows: For the Six Months Ended June 30, 2018 2017 Balance, beginning of period $ 3.8 $ 4.4 Increases recognized in the current period: For which an OTTI was not previously recognized 0.6 — Decreases attributable to: Securities sold or paid down during the period (0.5 ) (0.6 ) Balance, end of period $ 3.9 $ 3.8 |
Schedule of the Impact of Housing Investments on Net Income | The following table sets forth the impact of low-income housing project investments on net income. These amounts do not include the impacts of the Company's holdings in other types of tax credit investments. Successor Predecessor For the Year Ended February 1 to January 1 to For the Year Ended December 31, 2015 Pass through activity $ (27.4 ) $ (24.0 ) $ (2.1 ) $ (30.6 ) Write downs (25.6 ) (1.0 ) (0.5 ) (8.3 ) Tax benefits 18.6 8.8 0.9 13.6 Tax credits, net 34.7 35.5 3.1 45.2 Impact to net income $ 0.3 $ 19.3 $ 1.4 $ 19.9 The following table sets forth the impact of low-income housing project investments on net income. These amounts do not include the impacts of the Company's holdings in other types of tax credit investments. For the Six Months Ended June 30, 2018 2017 Pass through activity $ (13.1 ) $ (13.4 ) Write downs (10.3 ) (2.0 ) Tax benefits 4.9 5.4 Tax credits, net 20.2 15.9 Impact to net income $ 1.7 $ 5.9 |
Mortgage Loans (Tables)
Mortgage Loans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Mortgage Loans on Real Estate [Abstract] | |
Schedules of Corporate Fixed Securities Portfolio by Sector and Mortgage Loans by Risk Category | The following table presents the composition of the Company's corporate securities portfolio by sector: As of December 31, 2017 As of December 31, 2016 Fair Value % of Total Fair Value % of Total Industrial $ 4,446.7 18.6 % $ 4,020.8 18.5 % Consumer discretionary 3,379.9 14.1 2,994.9 13.8 Utilities 3,088.8 12.9 2,466.4 11.3 Financial 2,826.1 11.8 2,281.5 10.5 Consumer staples 2,704.0 11.3 2,785.5 12.8 Health care 2,635.5 11.0 2,832.6 13.0 Other 4,851.2 20.3 4,387.3 20.1 Total $ 23,932.2 100.0 % $ 21,769.0 100.0 % The following table sets forth the Company's mortgage loans by risk category: As of December 31, 2017 As of December 31, 2016 Balance % Balance % Lower risk $ 1,486.1 69.8 % $ 760.4 70.3 % Medium risk 486.3 22.8 261.9 24.2 Higher risk 157.6 7.4 59.2 5.5 Subtotal, excluding certain PGAAP loans 2,130.0 100.0 1,081.5 100.0 Lower risk 2,899.2 70.7 3,097.6 67.2 Medium risk 896.8 21.8 1,071.3 23.2 Higher risk 308.4 7.5 441.3 9.6 Subtotal, certain PGAAP loans (1) 4,104.4 100.0 % 4,610.2 100.0 % Loans specifically evaluated for impairment (2) 4.8 — Other (3) 2.0 0.5 Total $ 6,241.2 $ 5,692.2 ________________ (1) Represents loans set to fair value on February 1, 2016 for which there are no indications of subsequent credit deterioration. (2) As of both December 31, 2017 and 2016, no reserve amounts were held for loans specifically evaluated for impairment. (3) Includes allowance for loan losses and deferred fees and costs. The following table presents the composition of the Company's corporate securities portfolio by sector: As of June 30, 2018 As of December 31, 2017 Fair Value % of Total Fair Value % of Total Industrial $ 4,418.5 18.5 % $ 4,446.7 18.6 % Consumer discretionary 3,420.4 14.3 3,379.9 14.1 Utilities 3,109.2 13.0 3,088.8 12.9 Financial 2,864.5 12.0 2,826.1 11.8 Consumer staples 2,713.2 11.3 2,704.0 11.3 Health care 2,510.5 10.5 2,635.5 11.0 Other 4,898.1 20.4 4,851.2 20.3 Total $ 23,934.4 100.0 % $ 23,932.2 100.0 % The following table sets forth the Company's mortgage loans by risk category: As of June 30, 2018 As of December 31, 2017 Balance % Balance % Lower risk $ 1,681.8 68.5 % $ 1,486.1 69.8 % Medium risk 507.8 20.7 486.3 22.8 Higher risk 265.7 10.8 157.6 7.4 Subtotal, excluding certain PGAAP loans 2,455.3 100.0 2,130.0 100.0 Lower risk 2,746.0 71.7 2,899.2 70.7 Medium risk 806.9 21.1 896.8 21.8 Higher risk 274.5 7.2 308.4 7.5 Subtotal, certain PGAAP loans (1) 3,827.4 100.0 % 4,104.4 100.0 % Loans specifically evaluated for impairment (2) — 4.8 Other (3) 2.3 2.0 Total $ 6,285.0 $ 6,241.2 ________________ (1) Represents loans set to fair value on February 1, 2016 for which there are no indications of subsequent credit deterioration. (2) As of both June 30, 2018 and December 31, 2017, no reserve amounts were held for loans specifically evaluated for impairment. (3) Includes allowance for loan losses and deferred fees and costs. |
Allowance for Mortgage Loan Losses | The following table summarizes the activity in the Company’s allowance for mortgage loan losses, which includes portfolio and specific reserves: Successor Predecessor For the Year Ended February 1 to January 1 to For the Year Ended December 31, 2015 Allowance at beginning of period (1) $ 0.7 $ — $ 8.1 $ 8.1 Provision for loans not specifically identified 0.3 0.7 — — Allowance at end of period $ 1.0 $ 0.7 $ 8.1 $ 8.1 _______________________ (1) Balance was reset to $0.0 on February 1, 2016 due to PGAAP. The following table summarizes the activity in the Company’s allowance for mortgage loan losses, which includes portfolio and specific reserves: For the Six Months Ended June 30, 2018 2017 Allowance at beginning of period $ 1.0 $ 0.7 Change in provision for loans not specifically identified 0.5 — Allowance at end of period $ 1.5 $ 0.7 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Assets at Fair Value | The following table sets forth the fair value of the Company's derivative instruments: As of December 31, 2017 As of December 31, 2016 Notional Amount Fair Value Notional Amount Fair Value Assets Liabilities Assets Liabilities Derivatives designated as hedges: Cash flow hedges: Interest rate swaps $ 968.1 $ 1.5 $ 1.4 $ 719.8 $ 3.3 $ 16.3 Foreign currency swaps 686.2 75.5 5.6 701.1 141.9 — Total derivatives designated as hedges $ 1,654.3 $ 77.0 $ 7.0 $ 1,420.9 $ 145.2 $ 16.3 Derivatives not designated as hedges: Index options $ 6,696.1 $ 261.9 $ 1.5 $ 5,116.4 $ 161.7 $ 1.7 Total return swaps — — — 384.0 — 22.8 Embedded derivatives — — 797.5 — — 532.4 Other derivatives 22.2 0.2 — 166.3 0.5 0.5 Total derivatives not designated as hedges 6,718.3 262.1 799.0 5,666.7 162.2 557.4 Total derivatives $ 8,372.6 $ 339.1 $ 806.0 $ 7,087.6 $ 307.4 $ 573.7 The following table sets forth the fair value of the Company's derivative instruments, including embedded derivatives that primarily related to the Company's FIA products. In the consolidated balance sheets, derivative contracts in a liability position are included in other liabilities, and embedded derivative liabilities are included in funds held under deposit contracts. As of June 30, 2018 As of December 31, 2017 Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities Derivatives designated as hedges: Cash flow hedges: Interest rate swaps $ 942.2 $ 0.3 $ 1.2 $ 968.1 $ 1.5 $ 1.4 Foreign currency swaps 764.1 86.6 5.4 686.2 75.5 5.6 Total derivatives designated as hedges $ 1,706.3 $ 86.9 $ 6.6 $ 1,654.3 $ 77.0 $ 7.0 Derivatives not designated as hedges: Index options $ 7,384.0 $ 207.2 $ 0.4 $ 6,696.1 $ 261.9 $ 1.5 Total return swaps 500.0 0.6 — — — — Embedded derivatives — — 857.8 — — 797.5 Other derivatives 44.4 0.1 0.7 22.2 0.2 — Total derivatives not designated as hedges 7,928.4 207.9 858.9 6,718.3 262.1 799.0 Total derivatives $ 9,634.7 $ 294.8 $ 865.5 $ 8,372.6 $ 339.1 $ 806.0 |
Schedule of Derivative Liabilities at Fair Value | The following table sets forth the fair value of the Company's derivative instruments: As of December 31, 2017 As of December 31, 2016 Notional Amount Fair Value Notional Amount Fair Value Assets Liabilities Assets Liabilities Derivatives designated as hedges: Cash flow hedges: Interest rate swaps $ 968.1 $ 1.5 $ 1.4 $ 719.8 $ 3.3 $ 16.3 Foreign currency swaps 686.2 75.5 5.6 701.1 141.9 — Total derivatives designated as hedges $ 1,654.3 $ 77.0 $ 7.0 $ 1,420.9 $ 145.2 $ 16.3 Derivatives not designated as hedges: Index options $ 6,696.1 $ 261.9 $ 1.5 $ 5,116.4 $ 161.7 $ 1.7 Total return swaps — — — 384.0 — 22.8 Embedded derivatives — — 797.5 — — 532.4 Other derivatives 22.2 0.2 — 166.3 0.5 0.5 Total derivatives not designated as hedges 6,718.3 262.1 799.0 5,666.7 162.2 557.4 Total derivatives $ 8,372.6 $ 339.1 $ 806.0 $ 7,087.6 $ 307.4 $ 573.7 The following table sets forth the fair value of the Company's derivative instruments, including embedded derivatives that primarily related to the Company's FIA products. In the consolidated balance sheets, derivative contracts in a liability position are included in other liabilities, and embedded derivative liabilities are included in funds held under deposit contracts. As of June 30, 2018 As of December 31, 2017 Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities Derivatives designated as hedges: Cash flow hedges: Interest rate swaps $ 942.2 $ 0.3 $ 1.2 $ 968.1 $ 1.5 $ 1.4 Foreign currency swaps 764.1 86.6 5.4 686.2 75.5 5.6 Total derivatives designated as hedges $ 1,706.3 $ 86.9 $ 6.6 $ 1,654.3 $ 77.0 $ 7.0 Derivatives not designated as hedges: Index options $ 7,384.0 $ 207.2 $ 0.4 $ 6,696.1 $ 261.9 $ 1.5 Total return swaps 500.0 0.6 — — — — Embedded derivatives — — 857.8 — — 797.5 Other derivatives 44.4 0.1 0.7 22.2 0.2 — Total derivatives not designated as hedges 7,928.4 207.9 858.9 6,718.3 262.1 799.0 Total derivatives $ 9,634.7 $ 294.8 $ 865.5 $ 8,372.6 $ 339.1 $ 806.0 |
Potential Effect of Netting Arrangements, Assets | The following tables present the potential effect of netting arrangements by counterparty on the Company's consolidated balance sheets: As of December 31, 2017 Gross Amounts not Offset in the Consolidated Balance Sheets Fair Value Presented in the Balance Sheets Financial Instruments (1) Cash Collateral Received Net Amount Counterparty: Assets: A $ 46.1 $ (4.2 ) $ (41.9 ) $ — B 63.6 (1.4 ) (62.2 ) — C 13.2 — (13.2 ) — E 21.3 — (21.3 ) — F 31.6 (1.3 ) (29.0 ) 1.3 G 30.2 — (30.2 ) — H 51.9 (1.0 ) (50.9 ) — I 34.6 — (32.9 ) 1.7 J 42.7 — (42.7 ) — Other 3.9 (0.6 ) (3.3 ) — Total derivative assets $ 339.1 $ (8.5 ) $ (327.6 ) $ 3.0 _______________________ (1) Represents amount of offsetting derivative liabilities that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative assets for presentation on the consolidated balance sheets. As of December 31, 2016 Gross Amounts not Offset in the Consolidated Balance Sheets Fair Value Presented in the Balance Sheets Financial Instruments (1) Cash Collateral Received Net Amount Counterparty: Assets: A $ 25.9 $ (14.9 ) $ (10.5 ) $ 0.5 B 95.2 (17.2 ) (78.0 ) — C 25.6 — (25.6 ) — E 25.1 — (25.1 ) — G 30.4 (0.7 ) (29.7 ) — H 18.3 — (18.3 ) — I 32.9 (8.0 ) (24.9 ) — J 32.5 — (32.5 ) — Other 21.5 (0.5 ) (20.3 ) 0.7 Total derivative assets $ 307.4 $ (41.3 ) $ (264.9 ) $ 1.2 _______________________ (1) Represents amount of offsetting derivative liabilities that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative assets for presentation on the consolidated balance sheets. The following tables present the potential effect of netting arrangements by counterparty on the Company's consolidated balance sheets: As of June 30, 2018 Gross Amounts not Offset in the Consolidated Balance Sheets Fair Value Presented in the Financial Cash Collateral Received Net Amount Counterparty: Assets: A $ 31.8 $ (4.2 ) $ (27.6 ) $ — B 56.4 (1.9 ) (54.5 ) — C 14.7 — (14.7 ) — E 19.5 — (19.5 ) — F 26.0 — (26.0 ) — G 48.9 — (48.9 ) — H 24.7 (0.7 ) (24.0 ) — I 33.8 — (33.8 ) — J 25.4 — (25.1 ) 0.3 Other 13.6 (0.9 ) (12.4 ) 0.3 Total derivative assets $ 294.8 $ (7.7 ) $ (286.5 ) $ 0.6 _______________________ (1) Represents amount of offsetting derivative liabilities that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative assets for presentation on the consolidated balance sheets. As of December 31, 2017 Gross Amounts not Offset in the Consolidated Balance Sheets Fair Value Presented in the Financial Cash Collateral Received Net Amount Counterparty: Assets: A $ 46.1 $ (4.2 ) $ (41.9 ) $ — B 63.6 (1.4 ) (62.2 ) — C 13.2 — (13.2 ) — E 21.3 — (21.3 ) — F 31.6 (1.3 ) (29.0 ) 1.3 G 30.2 — (30.2 ) — H 51.9 (1.0 ) (50.9 ) — I 34.6 — (32.9 ) 1.7 J 42.7 — (42.7 ) — Other 3.9 (0.6 ) (3.3 ) — Total derivative assets $ 339.1 $ (8.5 ) $ (327.6 ) $ 3.0 _______________________ (1) Represents amount of offsetting derivative liabilities that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative assets for presentation on the consolidated balance sheets. |
Potential Effect of Netting Arrangements, Liabilities | As of December 31, 2017 Gross Amounts not Offset in the Consolidated Balance Sheets Fair Value Presented in the Financial Instruments (1) Cash Collateral Posted Net Amount Counterparty: Liabilities: A $ 4.2 $ (4.2 ) $ — $ — B 1.4 (1.4 ) — — F 1.3 (1.3 ) — — Other 1.6 (1.6 ) — — Total derivative liabilities (2) $ 8.5 $ (8.5 ) $ — $ — _______________________ (1) Represents amount of offsetting derivative assets that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative liabilities for presentation on the consolidated balance sheets. (2) Excludes embedded derivatives of $797.5 which have no counterparty. As of December 31, 2016 Gross Amounts not Offset in the Consolidated Balance Sheets Fair Value Presented in the Financial Cash Collateral Posted Net Amount Counterparty: Liabilities: A $ 14.9 $ (14.9 ) $ — $ — B 17.2 (17.2 ) — — I 8.0 (8.0 ) — — Other 1.2 (1.2 ) — — Total derivative liabilities (2) $ 41.3 $ (41.3 ) $ — $ — _______________________ (1) Represents amount of offsetting derivative assets that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative liabilities for presentation on the consolidated balance sheets. (2) Excludes embedded derivatives of $532.4 which have no counterparty. As of June 30, 2018 Gross Amounts not Offset in the Consolidated Balance Sheets Fair Value Presented in the Financial Cash Collateral Posted Net Amount Counterparty: Liabilities: A $ 4.2 $ (4.2 ) $ — $ — B 1.9 (1.9 ) — — H 0.7 (0.7 ) — — Other 0.9 (0.9 ) — — Total derivative liabilities (2) $ 7.7 $ (7.7 ) $ — $ — _______________________ (1) Represents amount of offsetting derivative assets that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative liabilities for presentation on the consolidated balance sheets. (2) Excludes embedded derivatives of $857.8 which have no counterparty. As of December 31, 2017 Gross Amounts not Offset in the Consolidated Balance Sheets Fair Value Presented in the Financial Cash Collateral Posted Net Amount Counterparty: Liabilities: A $ 4.2 $ (4.2 ) $ — $ — B 1.4 (1.4 ) — — F 1.3 (1.3 ) — — Other 1.6 (1.6 ) — — Total derivative liabilities (2) $ 8.5 $ (8.5 ) $ — $ — _______________________ (1) Represents amount of offsetting derivative assets that are subject to an enforceable master netting agreement or similar agreement that are not netted against the gross derivative liabilities for presentation on the consolidated balance sheets. (2) Excludes embedded derivatives of $797.5 which have no counterparty. |
Schedule of Gain (Loss) Recognized in OCI on Derivatives | The following table presents the amount of gain (loss) recognized in OCI on derivatives qualifying and designated as cash flow hedges: Successor Predecessor For the Year Ended February 1 to January 1 to For the Year Ended Interest rate swaps $ (2.9 ) $ (18.9 ) $ 11.3 $ 2.4 Foreign currency swaps (64.6 ) 62.5 29.1 62.7 Total $ (67.5 ) $ 43.6 $ 40.4 $ 65.1 The following table presents the amount of gain (loss) recognized in OCI on derivatives qualifying and designated as cash flow hedges: For the Six Months Ended June 30, 2018 2017 Interest rate swaps $ (24.6 ) $ 5.1 Foreign currency swaps 14.2 (27.7 ) Total $ (10.4 ) $ (22.6 ) |
Schedule of Effects of Derivatives Not Designated as Hedges | The following table shows the effect of derivatives not designated as hedges in the consolidated statements of income (loss), which is recorded in net realized gains (losses): Successor Predecessor For the Year Ended February 1 to January 1 to For the Year Ended Index options $ 170.0 $ 84.3 $ (33.2 ) $ (23.9 ) Embedded derivatives (118.6 ) (84.5 ) 29.4 6.9 Total return swaps (4.3 ) (22.8 ) — — Other derivatives 4.9 1.9 3.8 1.7 Total $ 52.0 $ (21.1 ) $ — $ (15.3 ) The following table shows the effect of derivatives not designated as hedges in the consolidated statements of income, which is recorded in net realized losses: For the Six Months Ended June 30, 2018 2017 Embedded derivatives 14.6 (65.1 ) Index options $ (0.8 ) $ 65.4 Total return swaps (19.5 ) (4.3 ) Other derivatives — 1.7 Total $ (5.7 ) $ (2.3 ) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis and Those not Carried at Fair Value | The following tables present the fair value of the Company's financial instruments classified by the valuation hierarchy described above. The financial instruments are separated between those measured at fair value on a recurring basis and those not carried at fair value, but for which disclosure of fair value is required. As of December 31, 2017 Carrying Amount Fair Value Level 1 Level 2 Level 3 Measured at fair value on a recurring basis: Financial assets: Fixed maturities, available-for-sale: U.S. government and agencies $ 422.2 $ 422.2 $ — $ 422.2 $ — State and political subdivisions 792.4 792.4 — 792.4 — Corporate securities 23,932.2 23,932.2 — 23,731.4 200.8 Residential mortgage-backed securities 2,472.8 2,472.8 — 2,472.8 — Commercial mortgage-backed securities 795.7 795.7 — 795.6 0.1 Collateralized loan obligations 1,146.6 1,146.6 — 1,146.6 — Other debt obligations 719.4 719.4 — 677.9 41.5 Total fixed maturities, available-for-sale 30,281.3 30,281.3 — 30,038.9 242.4 Marketable equity securities, available-for-sale 755.7 755.7 722.6 26.8 6.3 Derivatives: Index options 261.9 261.9 — 222.4 39.5 Foreign currency swaps 75.5 75.5 — 75.5 — Other 1.7 1.7 0.2 1.5 — Total derivatives 339.1 339.1 0.2 299.4 39.5 Total investments carried at fair value 31,376.1 31,376.1 722.8 30,365.1 288.2 Separate account assets 978.1 978.1 978.1 — — Total assets at fair value $ 32,354.2 $ 32,354.2 $ 1,700.9 $ 30,365.1 $ 288.2 Financial liabilities: Embedded derivatives $ 797.5 $ 797.5 $ — $ — $ 797.5 Subject to fair value disclosure requirements: Financial assets: Mortgage loans $ 6,241.2 $ 6,180.8 $ — $ — $ 6,180.8 Investments in limited partnerships, tax credit investments (1) 173.0 135.1 — — 135.1 Cash and cash equivalents 347.5 347.5 347.5 — — Financial liabilities: Funds held under deposit contracts (2): Deferred annuities 20,128.3 19,943.3 — — 19,943.3 Income annuities 7,202.5 8,080.5 — — 8,080.5 _______________________ (1) Fair value includes obligations for future investment contributions of $32.8 , which is reflected as a liability on the consolidated balance sheets. (2) The carrying value of this balance excludes $8,015.1 of liabilities related to insurance contracts and embedded derivatives. As of December 31, 2016 Carrying Amount Fair Value Level 1 Level 2 Level 3 Measured at fair value on a recurring basis: Financial assets: Fixed maturities, available-for-sale: U.S. government and agencies $ 392.1 $ 392.1 $ — $ 392.1 $ — State and political subdivisions 930.8 930.8 — 930.8 — Corporate securities 21,769.0 21,769.0 — 21,712.0 57.0 Residential mortgage-backed securities 2,584.6 2,584.6 — 2,584.6 — Commercial mortgage-backed securities 916.8 916.8 — 915.9 0.9 Collateralized loan obligations 1,213.6 1,213.6 — 1,213.6 — Other debt obligations 505.1 505.1 — 497.5 7.6 Total fixed maturities, available-for-sale 28,312.0 28,312.0 — 28,246.5 65.5 Marketable equity securities, available-for-sale 717.4 717.4 684.6 26.9 5.9 Derivatives: Index options 161.7 161.7 — 154.7 7.0 Foreign currency swaps 141.9 141.9 — 141.9 — Other 3.7 3.7 — 3.7 — Total derivatives 307.3 307.3 — 300.3 7.0 Total investments carried at fair value 29,336.7 29,336.7 684.6 28,573.7 78.4 Separate account assets 911.4 911.4 911.4 — — Total assets at fair value $ 30,248.1 $ 30,248.1 $ 1,596.0 $ 28,573.7 $ 78.4 Financial liabilities: Embedded derivatives $ 532.4 $ 532.4 $ — $ — $ 532.4 Subject to fair value disclosure requirements: Financial assets: Mortgage loans $ 5,692.2 $ 5,538.2 $ — $ — $ 5,538.2 Investments in limited partnerships, tax credit investments (1) 195.2 204.0 — — 204.0 Cash and cash equivalents 326.3 326.3 326.3 — — Financial liabilities: Funds held under deposit contracts (2): Deferred annuities $ 18,566.6 $ 18,228.6 $ — $ — $ 18,228.6 Income annuities 7,336.6 7,678.4 — — 7,678.4 _______________________ (1) Fair value includes obligations for future investment contributions of $16.5 , which is reflected as a liability on the consolidated balance sheets. (2) The carrying value of this balance excludes $7,489.9 of liabilities related to insurance contracts and embedded derivatives. The following tables present the fair value of the Company's financial instruments classified by the valuation hierarchy described above. The financial instruments are separated between those measured at fair value on a recurring basis and those not carried at fair value, but for which disclosure of fair value is required. As of June 30, 2018 Carrying Fair Value Level 1 Level 2 Level 3 Measured at fair value on a recurring basis: Financial assets: Fixed maturities, available-for-sale: U.S. government and agencies $ 297.3 $ 297.3 $ — $ 297.3 $ — State and political subdivisions 746.9 746.9 — 746.9 — Corporate securities 23,934.4 23,934.4 — 23,611.4 323.0 Residential mortgage-backed securities 2,426.2 2,426.2 — 2,426.2 — Commercial mortgage-backed securities 755.6 755.6 — 728.7 26.9 Collateralized loan obligations 1,105.5 1,105.5 — 1,056.2 49.3 Other debt obligations 858.6 858.6 — 818.8 39.8 Total fixed maturities, available-for-sale 30,124.5 30,124.5 — 29,685.5 439.0 Marketable equity securities 708.6 708.6 676.6 25.8 6.2 Derivatives: Index options 207.2 207.2 — 183.6 23.6 Foreign currency swaps 86.6 86.6 — 86.6 — Other 1.0 1.0 — 1.0 — Total derivatives 294.8 294.8 — 271.2 23.6 Total investments carried at fair value 31,127.9 31,127.9 676.6 29,982.5 468.8 Separate account assets 999.4 999.4 999.4 — — Total assets at fair value $ 32,127.3 $ 32,127.3 $ 1,676.0 $ 29,982.5 $ 468.8 Financial liabilities: Embedded derivatives $ 857.8 $ 857.8 $ — $ — $ 857.8 Subject to fair value disclosure requirements: Financial assets: Mortgage loans $ 6,285.0 $ 6,054.8 $ — $ — $ 6,054.8 Investments in limited partnerships, tax credit investments (1) 150.0 128.5 — — 128.5 Cash and cash equivalents 435.0 435.0 435.0 — — Financial liabilities: Funds held under deposit contracts (2): Deferred annuities 20,810.0 20,029.6 — — 20,029.6 Income annuities 7,149.1 7,347.3 — — 7,347.3 _______________________ (1) Fair value includes obligations for future investment contributions of $16.5 , which is reflected as a liability on the consolidated balance sheets. (2) The carrying value of this balance excludes $8,240.0 of liabilities related to insurance contracts and embedded derivatives. As of December 31, 2017 Carrying Fair Value Level 1 Level 2 Level 3 Measured at fair value on a recurring basis: Financial assets: Fixed maturities, available-for-sale: U.S. government and agencies $ 422.2 $ 422.2 $ — $ 422.2 $ — State and political subdivisions 792.4 792.4 — 792.4 — Corporate securities 23,932.2 23,932.2 — 23,731.4 200.8 Residential mortgage-backed securities 2,472.8 2,472.8 — 2,472.8 — Commercial mortgage-backed securities 795.7 795.7 — 795.6 0.1 Collateralized loan obligations 1,146.6 1,146.6 — 1,146.6 — Other debt obligations 719.4 719.4 — 677.9 41.5 Total fixed maturities, available-for-sale 30,281.3 30,281.3 — 30,038.9 242.4 Marketable equity securities 755.7 755.7 722.6 26.8 6.3 Derivatives: Index options 261.9 261.9 — 222.4 39.5 Foreign currency swaps 75.5 75.5 — 75.5 — Other 1.7 1.7 0.2 1.5 — Total derivatives 339.1 339.1 0.2 299.4 39.5 Total investments carried at fair value 31,376.1 31,376.1 722.8 30,365.1 288.2 Separate account assets 978.1 978.1 978.1 — — Total assets at fair value $ 32,354.2 $ 32,354.2 $ 1,700.9 $ 30,365.1 $ 288.2 Financial liabilities: Embedded derivatives $ 797.5 $ 797.5 $ — $ — $ 797.5 Subject to fair value disclosure requirements: Financial assets: Mortgage loans $ 6,241.2 $ 6,180.8 $ — $ — $ 6,180.8 Investments in limited partnerships, tax credit investments (1) 173.0 135.1 — — 135.1 Cash and cash equivalents 347.5 347.5 347.5 — — Financial liabilities: Funds held under deposit contracts (2): Deferred annuities $ 20,128.3 $ 19,943.3 $ — $ — $ 19,943.3 Income annuities 7,202.5 8,080.5 — — 8,080.5 _______________________ (1) Fair value includes obligations for future investment contributions of $32.8 , which is reflected as a liability on the consolidated balance sheets. (2) The carrying value of this balance excludes $8,015.1 of liabilities related to insurance contracts and embedded derivatives. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables present additional information about financial instruments measured at fair value on a recurring basis and for which the Company has utilized significant unobservable inputs (Level 3) to determine fair value for the year ended December 31, 2017 (Successor Company): Unrealized Gains (Losses) Included in: Balance as of January 1, 2017 Purchases and Issues(1) Sales and Settlements(1) Transfers In and/or (Out) of Level 3(2) Other(3) Net Income(4) Other Comprehensive Income (5) Realized Gains (Losses)(4) Balance as of December 31, 2017 Financial Assets: Fixed maturities, available-for-sale: Corporate securities $ 57.0 $ 87.9 $ — $ 57.2 $ (9.0 ) $ — $ 7.8 $ (0.1 ) $ 200.8 Commercial mortgage-backed securities 0.9 — — — (0.8 ) — — — 0.1 Other debt obligations 7.6 — — 28.7 0.7 — 4.5 — 41.5 Total fixed maturities, available-for-sale 65.5 87.9 — 85.9 (9.1 ) — 12.3 (0.1 ) 242.4 Marketable equity securities, available-for-sale 5.9 — — 0.1 — — 0.3 — 6.3 Derivatives: Index options 7.0 22.7 — — (14.5 ) 26.0 — (1.7 ) 39.5 Other — 0.9 — — (0.6 ) — — (0.3 ) — Total derivatives 7.0 23.6 — — (15.1 ) 26.0 — (2.0 ) 39.5 Total Level 3 assets $ 78.4 $ 111.5 $ — $ 86.0 $ (24.2 ) $ 26.0 $ 12.6 $ (2.1 ) $ 288.2 Financial Liabilities: Embedded derivatives $ 532.4 $ 162.6 $ (8.0 ) $ — $ (8.1 ) $ 118.6 $ — $ — $ 797.5 _______________ (1) Issues and settlements are related to the Company's embedded derivative liabilities. (2) Transfers into Level 3 are generally the result of observable market information on a security no longer being available or utilized by pricing vendors. Transfers into and/or out of Level 3 are reported at the value as of the beginning of the period in which the transfer occurs. Gross transfers into Level 3 were $86.0 for the year ended December 31, 2017 . Gross transfers out of Level 3 were $0.0 for the year ended December 31, 2017 . (3) Other includes transactions such as pay downs, calls, amortization, and redemptions. (4) Amounts are included in net realized gains (losses) on the consolidated statements of income (loss). Amounts shown for financial liabilities are (gains) losses in net income. (5) Amounts are generally included in changes in unrealized gains (losses) on available-for-sale securities on the consolidated statements of comprehensive income. The following tables present additional information about financial instruments measured at fair value on a recurring basis and for which the Company has utilized significant unobservable inputs (Level 3) to determine fair value for the period February 1 through December 31, 2016 (Successor Company): Unrealized Gains (Losses) Included in: Balance as of February 1, 2016 Purchases and Issues(1) Sales and Settlements(1) Transfers In and/or (Out) of Level 3(2) Other(3) Net Income(4) Other Comprehensive Income (5) Realized Gains (Losses)(4) Balance as of December 31, 2016 Financial Assets: Fixed maturities, available-for-sale: Corporate securities $ 50.0 $ 13.0 $ — $ 2.6 $ (8.4 ) $ — $ (0.9 ) $ 0.7 $ 57.0 Commercial mortgage-backed securities 1.2 — — — (0.3 ) — — — 0.9 Collateralized loan obligations 10.0 — — (10.0 ) — — — — — Other debt obligations 43.4 — — (36.1 ) 0.6 — (0.3 ) — 7.6 Total fixed maturities, available-for-sale 104.6 13.0 — (43.5 ) (8.1 ) — (1.2 ) 0.7 65.5 Marketable equity securities, available-for-sale 6.1 — (0.2 ) — 0.3 — (0.3 ) — 5.9 Derivatives: Index options 3.3 9.9 — — (4.7 ) (0.9 ) — (0.6 ) 7.0 Other — 1.1 — — — — — (1.1 ) — Total derivatives 3.3 11.0 — — (4.7 ) (0.9 ) — (1.7 ) 7.0 Total Level 3 assets $ 114.0 $ 24.0 $ (0.2 ) $ (43.5 ) $ (12.5 ) $ (0.9 ) $ (1.5 ) $ (1.0 ) $ 78.4 Financial Liabilities: Embedded derivatives $ 334.9 $ 119.2 $ (6.2 ) $ — $ — $ 84.5 $ — $ — $ 532.4 _______________ (1) Issues and settlements are related to the Company's embedded derivative liabilities. (2) Transfers into and/or out of Level 3 are reported at the value as of the beginning of the period in which the transfer occurs. Gross transfers into Level 3 were $11.0 for the period February 1 through December 31, 2016 . Gross transfers out of Level 3 were $54.5 for the period February 1 through December 31, 2016 , of which most were related to fixed maturities for which observable inputs became available. (3) Other includes transactions such as pay downs, calls, amortization and redemptions. (4) Amounts are included in net realized gains (losses) on the consolidated statements of income (loss). Amounts shown for financial liabilities are (gains) losses in net income. (5) Amounts are generally included in changes in unrealized gains (losses) on available-for-sale securities on the consolidated statements of comprehensive income. The following table presents additional information about financial instruments measured at fair value on a recurring basis and for which the Company has utilized significant unobservable inputs (Level 3) to determine fair value for the period January 1 to January 31, 2016 (Predecessor Company): Unrealized Gains (Losses) Included in: Balance as of January 1, 2016 Purchases Sales Transfers In and/or (Out) of Level 3(2) Other(3) Net Other Realized Balance as of January 31, 2016 Financial Assets: Fixed maturities, available-for-sale: Corporate securities $ 47.8 $ 8.1 $ — $ (5.1 ) $ — $ — $ (0.8 ) $ — $ 50.0 Commercial mortgage-backed securities 1.2 — — — — — — — 1.2 Collateralized loan obligations 89.6 10.0 — (89.6 ) — — — — 10.0 Other debt obligations 42.5 — — — — — 0.9 — 43.4 Total fixed maturities, available-for-sale 181.1 18.1 — (94.7 ) — — 0.1 — 104.6 Marketable equity securities, available-for-sale 5.9 — — — — — — — 5.9 Marketable equity securities, trading 0.2 — — — — — — — 0.2 Derivatives: Index options 3.7 0.4 — — — (0.7 ) — (0.1 ) 3.3 Other 0.1 — — — (1.1 ) 0.1 — 0.9 — Total derivatives 3.8 0.4 — — (1.1 ) (0.6 ) — 0.8 3.3 Total Level 3 assets $ 191.0 $ 18.5 $ — $ (94.7 ) $ (1.1 ) $ (0.6 ) $ 0.1 $ 0.8 $ 114.0 Financial Liabilities: Embedded derivatives $ 385.7 $ 16.2 $ (1.0 ) $ — $ — $ (29.4 ) $ — $ — $ 371.5 _______________ (1) Issues and settlements are related to the Company's embedded derivative liabilities. (2) Transfers into and/or out of Level 3 are reported at the value as of the beginning of the period in which the transfer occurs. Gross transfers into Level 3 were $0.0 for the period January 1 to January 31, 2016 . Gross transfers out of Level 3 were $94.7 for the period January 1 to January 31, 2016 , which related to fixed maturities for which observable inputs became available. (3) Other includes transactions such as pay downs, calls, amortization and redemptions. (4) Amounts are included in net realized gains (losses) on the consolidated statements of income (loss). Amounts shown for financial liabilities are (gains) losses in net income. (5) Amounts are generally included in changes in unrealized gains (losses) on available-for-sale securities on the consolidated statements of comprehensive income. The following tables present additional information about financial instruments measured at fair value on a recurring basis and for which the Company has utilized significant unobservable inputs (Level 3) to determine fair value for the six months ended June 30, 2018 : Unrealized Gains (Losses) Included in: Balance as of January 1, 2018 Purchases and Issues(1) Sales and Settlements(1) Transfers In and/or (Out) of Level 3(2) Other(3) Net Income(4) Other Comprehensive Income (5) Realized Gains (Losses)(4) Balance as of June 30, 2018 Financial Assets: Fixed maturities, available-for-sale: Corporate securities $ 200.8 $ 50.8 $ — $ 85.4 $ (2.3 ) $ — $ (11.7 ) $ — $ 323.0 Commercial mortgage-backed securities 0.1 26.9 — — (0.1 ) — — — 26.9 Collateralized loan obligations — 49.3 — — — — — — 49.3 Other debt obligations 41.5 — — — 0.4 — (2.1 ) — 39.8 Total fixed maturities, available-for-sale 242.4 127.0 — 85.4 (2.0 ) — (13.8 ) — 439.0 Marketable equity securities 6.3 — — — — (0.1 ) — — 6.2 Derivatives: Index options 39.5 20.5 — — (22.1 ) (39.1 ) — 24.8 23.6 Other — — — — — — — — — Total derivatives 39.5 20.5 — — (22.1 ) (39.1 ) — 24.8 23.6 Total Level 3 assets $ 288.2 $ 147.5 $ — $ 85.4 $ (24.1 ) $ (39.2 ) $ (13.8 ) $ 24.8 $ 468.8 Financial Liabilities: Embedded derivatives $ 797.5 $ 81.2 $ (6.3 ) $ — $ — $ (14.6 ) $ — $ — $ 857.8 _______________ (1) Issues and settlements are related to the Company's embedded derivative liabilities. (2) Transfers into and/or out of Level 3 are reported at the value as of the beginning of the period in which the transfer occurs. Gross transfers into Level 3 were $85.4 for the six months ended June 30, 2018 . Gross transfers out of Level 3 were $0.0 for the six months ended June 30, 2018 . (3) Other includes transactions such as pay downs, calls, amortization, and redemptions. (4) Amounts are included in net realized gains (losses) on the consolidated statements of income (loss). Amounts shown for financial liabilities are (gains) losses in net income. (5) Amounts are generally included in changes in unrealized gains (losses) on available-for-sale securities on the consolidated statements of comprehensive income. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables present additional information about financial instruments measured at fair value on a recurring basis and for which the Company has utilized significant unobservable inputs (Level 3) to determine fair value for the year ended December 31, 2017 (Successor Company): Unrealized Gains (Losses) Included in: Balance as of January 1, 2017 Purchases and Issues(1) Sales and Settlements(1) Transfers In and/or (Out) of Level 3(2) Other(3) Net Income(4) Other Comprehensive Income (5) Realized Gains (Losses)(4) Balance as of December 31, 2017 Financial Assets: Fixed maturities, available-for-sale: Corporate securities $ 57.0 $ 87.9 $ — $ 57.2 $ (9.0 ) $ — $ 7.8 $ (0.1 ) $ 200.8 Commercial mortgage-backed securities 0.9 — — — (0.8 ) — — — 0.1 Other debt obligations 7.6 — — 28.7 0.7 — 4.5 — 41.5 Total fixed maturities, available-for-sale 65.5 87.9 — 85.9 (9.1 ) — 12.3 (0.1 ) 242.4 Marketable equity securities, available-for-sale 5.9 — — 0.1 — — 0.3 — 6.3 Derivatives: Index options 7.0 22.7 — — (14.5 ) 26.0 — (1.7 ) 39.5 Other — 0.9 — — (0.6 ) — — (0.3 ) — Total derivatives 7.0 23.6 — — (15.1 ) 26.0 — (2.0 ) 39.5 Total Level 3 assets $ 78.4 $ 111.5 $ — $ 86.0 $ (24.2 ) $ 26.0 $ 12.6 $ (2.1 ) $ 288.2 Financial Liabilities: Embedded derivatives $ 532.4 $ 162.6 $ (8.0 ) $ — $ (8.1 ) $ 118.6 $ — $ — $ 797.5 _______________ (1) Issues and settlements are related to the Company's embedded derivative liabilities. (2) Transfers into Level 3 are generally the result of observable market information on a security no longer being available or utilized by pricing vendors. Transfers into and/or out of Level 3 are reported at the value as of the beginning of the period in which the transfer occurs. Gross transfers into Level 3 were $86.0 for the year ended December 31, 2017 . Gross transfers out of Level 3 were $0.0 for the year ended December 31, 2017 . (3) Other includes transactions such as pay downs, calls, amortization, and redemptions. (4) Amounts are included in net realized gains (losses) on the consolidated statements of income (loss). Amounts shown for financial liabilities are (gains) losses in net income. (5) Amounts are generally included in changes in unrealized gains (losses) on available-for-sale securities on the consolidated statements of comprehensive income. The following tables present additional information about financial instruments measured at fair value on a recurring basis and for which the Company has utilized significant unobservable inputs (Level 3) to determine fair value for the period February 1 through December 31, 2016 (Successor Company): Unrealized Gains (Losses) Included in: Balance as of February 1, 2016 Purchases and Issues(1) Sales and Settlements(1) Transfers In and/or (Out) of Level 3(2) Other(3) Net Income(4) Other Comprehensive Income (5) Realized Gains (Losses)(4) Balance as of December 31, 2016 Financial Assets: Fixed maturities, available-for-sale: Corporate securities $ 50.0 $ 13.0 $ — $ 2.6 $ (8.4 ) $ — $ (0.9 ) $ 0.7 $ 57.0 Commercial mortgage-backed securities 1.2 — — — (0.3 ) — — — 0.9 Collateralized loan obligations 10.0 — — (10.0 ) — — — — — Other debt obligations 43.4 — — (36.1 ) 0.6 — (0.3 ) — 7.6 Total fixed maturities, available-for-sale 104.6 13.0 — (43.5 ) (8.1 ) — (1.2 ) 0.7 65.5 Marketable equity securities, available-for-sale 6.1 — (0.2 ) — 0.3 — (0.3 ) — 5.9 Derivatives: Index options 3.3 9.9 — — (4.7 ) (0.9 ) — (0.6 ) 7.0 Other — 1.1 — — — — — (1.1 ) — Total derivatives 3.3 11.0 — — (4.7 ) (0.9 ) — (1.7 ) 7.0 Total Level 3 assets $ 114.0 $ 24.0 $ (0.2 ) $ (43.5 ) $ (12.5 ) $ (0.9 ) $ (1.5 ) $ (1.0 ) $ 78.4 Financial Liabilities: Embedded derivatives $ 334.9 $ 119.2 $ (6.2 ) $ — $ — $ 84.5 $ — $ — $ 532.4 _______________ (1) Issues and settlements are related to the Company's embedded derivative liabilities. (2) Transfers into and/or out of Level 3 are reported at the value as of the beginning of the period in which the transfer occurs. Gross transfers into Level 3 were $11.0 for the period February 1 through December 31, 2016 . Gross transfers out of Level 3 were $54.5 for the period February 1 through December 31, 2016 , of which most were related to fixed maturities for which observable inputs became available. (3) Other includes transactions such as pay downs, calls, amortization and redemptions. (4) Amounts are included in net realized gains (losses) on the consolidated statements of income (loss). Amounts shown for financial liabilities are (gains) losses in net income. (5) Amounts are generally included in changes in unrealized gains (losses) on available-for-sale securities on the consolidated statements of comprehensive income. The following table presents additional information about financial instruments measured at fair value on a recurring basis and for which the Company has utilized significant unobservable inputs (Level 3) to determine fair value for the period January 1 to January 31, 2016 (Predecessor Company): Unrealized Gains (Losses) Included in: Balance as of January 1, 2016 Purchases Sales Transfers In and/or (Out) of Level 3(2) Other(3) Net Other Realized Balance as of January 31, 2016 Financial Assets: Fixed maturities, available-for-sale: Corporate securities $ 47.8 $ 8.1 $ — $ (5.1 ) $ — $ — $ (0.8 ) $ — $ 50.0 Commercial mortgage-backed securities 1.2 — — — — — — — 1.2 Collateralized loan obligations 89.6 10.0 — (89.6 ) — — — — 10.0 Other debt obligations 42.5 — — — — — 0.9 — 43.4 Total fixed maturities, available-for-sale 181.1 18.1 — (94.7 ) — — 0.1 — 104.6 Marketable equity securities, available-for-sale 5.9 — — — — — — — 5.9 Marketable equity securities, trading 0.2 — — — — — — — 0.2 Derivatives: Index options 3.7 0.4 — — — (0.7 ) — (0.1 ) 3.3 Other 0.1 — — — (1.1 ) 0.1 — 0.9 — Total derivatives 3.8 0.4 — — (1.1 ) (0.6 ) — 0.8 3.3 Total Level 3 assets $ 191.0 $ 18.5 $ — $ (94.7 ) $ (1.1 ) $ (0.6 ) $ 0.1 $ 0.8 $ 114.0 Financial Liabilities: Embedded derivatives $ 385.7 $ 16.2 $ (1.0 ) $ — $ — $ (29.4 ) $ — $ — $ 371.5 _______________ (1) Issues and settlements are related to the Company's embedded derivative liabilities. (2) Transfers into and/or out of Level 3 are reported at the value as of the beginning of the period in which the transfer occurs. Gross transfers into Level 3 were $0.0 for the period January 1 to January 31, 2016 . Gross transfers out of Level 3 were $94.7 for the period January 1 to January 31, 2016 , which related to fixed maturities for which observable inputs became available. (3) Other includes transactions such as pay downs, calls, amortization and redemptions. (4) Amounts are included in net realized gains (losses) on the consolidated statements of income (loss). Amounts shown for financial liabilities are (gains) losses in net income. (5) Amounts are generally included in changes in unrealized gains (losses) on available-for-sale securities on the consolidated statements of comprehensive income. The following tables present additional information about financial instruments measured at fair value on a recurring basis and for which the Company has utilized significant unobservable inputs (Level 3) to determine fair value for the six months ended June 30, 2017: Unrealized Gains (Losses) Included in: Balance as of January 1, 2017 Purchases and Issues(1) Sales and Settlements(1) Transfers In and/or (Out) of Level 3(2) Other(3) Net Income(4) Other Comprehensive Income (5) Realized Gains (Losses)(4) Balance as of June 30, 2017 Financial Assets: Fixed maturities, available-for-sale: Corporate securities $ 57.0 $ 21.6 $ — $ — $ (1.0 ) $ — $ 2.5 $ — $ 80.1 Commercial mortgage-backed securities 0.9 — — — (0.2 ) — — — 0.7 Other debt obligations 7.6 — — 28.7 0.4 — 1.1 — 37.8 Total fixed maturities, available-for-sale 65.5 21.6 — 28.7 (0.8 ) — 3.6 — 118.6 Marketable equity securities, available-for-sale 5.9 — — — — — 0.1 — 6.0 Derivatives: — Index options 7.0 10.0 — — (2.8 ) 3.0 — (2.6 ) 14.6 Other — 0.7 — — (0.3 ) (0.1 ) — (0.2 ) 0.1 Total derivatives 7.0 10.7 — — (3.1 ) 2.9 — (2.8 ) 14.7 Total Level 3 assets $ 78.4 $ 32.3 $ — $ 28.7 $ (3.9 ) $ 2.9 $ 3.7 $ (2.8 ) $ 139.3 Financial Liabilities: Embedded derivatives $ 532.4 $ 102.6 $ (4.0 ) $ — $ — $ 65.1 $ — $ — $ 696.1 _______________ (1) Issues and settlements are related to the Company's embedded derivative liabilities. (2) Transfers into and/or out of Level 3 are reported at the value as of the beginning of the period in which the transfer occurs. Gross transfers into Level 3 were $28.7 for the six ended June 30, 2017. Gross transfers out of Level 3 were $0.0 for the six months ended June 30, 2017. (3) Other includes transactions such as pay downs, calls, amortization, and redemptions. (4) Amounts are included in net realized gains (losses) on the consolidated statements of income (loss). Amounts shown for financial liabilities are (gains) losses in net income. (5) Amounts are generally included in changes in unrealized gains (losses) on available-for-sale securities on the consolidated statements of comprehensive income. |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (DAC) and Value of Business Acquired (VOBA) (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Insurance [Abstract] | |
Deferred Policy Acquisition Costs | The following table provides a reconciliation of the beginning and ending balance for DAC: Successor Predecessor For the Year Ended February 1 to January 1 to For the Year Ended Unamortized balance at beginning of period $ 202.8 $ — $ 677.5 $ 513.9 Deferral of acquisition costs 239.9 215.4 19.6 247.7 Adjustments for realized (gains) losses (1) (4.6 ) (1.6 ) (0.4 ) 6.0 Amortization — excluding unlocking (30.9 ) (9.9 ) (8.4 ) (86.4 ) Amortization — impact of unlocking (1) — (1.1 ) (0.2 ) (3.7 ) Unamortized balance at end of period 407.2 202.8 688.1 677.5 Accumulated effect of net unrealized gains (21.0 ) (3.4 ) (41.0 ) (11.4 ) Balance at end of period $ 386.2 $ 199.4 $ 647.1 $ 666.1 ___________________ (1) Includes the impact of the Company's annual unlocking process, which takes place during the third quarter of each year. Amortization also includes the impact of assumption and experience unlocking related to quarterly investment prepayment activity. The following table provides a reconciliation of the beginning and ending balance for DAC: For the Six Months Ended June 30, 2018 2017 Unamortized balance at beginning of period $ 407.2 $ 202.8 Deferral of acquisition costs 134.0 134.4 Adjustments for realized (gains) losses (1) (6.0 ) (0.9 ) Amortization — excluding unlocking (1.6 ) (13.1 ) Amortization — impact of unlocking (1) (0.9 ) (1.2 ) Unamortized balance at end of period 532.7 322.0 Accumulated effect of net unrealized (gains) losses 32.8 (21.7 ) Balance at end of period $ 565.5 $ 300.3 ___________________ (1) Includes the impact of assumption and experience unlocking related to quarterly investment prepayment activity. |
Present Value of Future Insurance Profits | The following table provides a reconciliation of the beginning and ending balance for VOBA: Successor For the Year Ended February 1 to Unamortized balance at beginning of period $ 413.4 $ 457.6 Adjustments related to realized (gains) losses (1) (11.9 ) 4.5 Amortization — excluding unlocking (41.8 ) (40.7 ) Amortization — impact of unlocking (1) (1.6 ) (8.0 ) Unamortized balance at end of period 358.1 413.4 Accumulated effect of net unrealized gains (48.1 ) (16.1 ) Balance at end of period $ 310.0 $ 397.3 ___________________ (1) Includes the impact of the Company's annual unlocking process, which takes place during the third quarter of each year. Amortization also includes the impact of assumption and experience unlocking related to quarterly investment prepayment activity. The following table provides a reconciliation of the beginning and ending balance for VOBA: For the Six Months Ended June 30, 2018 2017 Unamortized balance at beginning of period $ 358.1 $ 413.4 Adjustments related to realized (gains) losses (1) (1.6 ) (0.2 ) Amortization — excluding unlocking (21.6 ) (22.3 ) Amortization — impact of unlocking (1) (2.1 ) (4.1 ) Unamortized balance at end of period 332.8 386.8 Accumulated effect of net unrealized (gains) losses 62.5 (70.8 ) Balance at end of period $ 395.3 $ 316.0 ___________________ (1) Includes the impact of assumption and experience unlocking related to quarterly investment prepayment activity. |
Present Value of Future Insurance Profits, Expected Amortization | The following table sets forth the estimated future VOBA amortization expense, net of interest, for the next 5 years, based on the balance recorded as of December 31, 2017: Year Amount 2018 $ 38.0 2019 36.0 2020 33.0 2021 29.8 2022 26.2 |
Stockholder's Equity (Tables)
Stockholder's Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables summarize the components of AOCI and the adjustments to OCI for amounts reclassified from AOCI into net income for the year ended December 31, 2017 (Successor Company): Net Unrealized OTTI on Fixed Adjustment Net Gains (Losses) on Cash Flow Hedges Accumulated Balance as of January 1, 2017 $ 137.6 $ (0.2 ) $ (14.0 ) $ 17.7 $ 141.1 Other comprehensive income (loss) before reclassifications, net of taxes (1) 432.9 (0.1 ) (52.7 ) (44.5 ) 335.6 Reclassifications recorded in: Net investment income: Interest rate swaps — — — 0.1 0.1 Foreign currency swaps — — — (2.7 ) (2.7 ) Net realized (gains) losses (32.9 ) — 16.6 7.8 (8.5 ) Total provision (benefit) for income taxes 11.5 — (5.8 ) (1.8 ) 3.9 Total reclassifications from AOCI, net of taxes (21.4 ) — 10.8 3.4 (7.2 ) Other comprehensive income (loss) after reclassifications 411.5 (0.1 ) (41.9 ) (41.1 ) 328.4 Adoption of new accounting standard (3) 93.6 — (7.7 ) (4.3 ) 81.6 Balance as of December 31, 2017 $ 642.7 $ (0.3 ) $ (63.6 ) $ (27.7 ) $ 551.1 ___________________ (1) Other comprehensive income (loss) before reclassifications is net of taxes of $201.9 , $0.0 , $(22.8) , $(23.0) , and $156.1 , respectively, for the year ended December 31, 2017 . Tax effects in OCI are calculated based on the applicable enacted tax rate at the time gains (losses) are incurred. (2) Reclassification adjustments of OTTI on fixed maturities not related to credit losses are included in changes in unrealized gains and losses on available-for-sale securities within the consolidated statements of comprehensive income. (3) Accounting Standards Update No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. Refer to Note 2 for further discussion. The following tables summarize the components of AOCI and the adjustments to OCI for amounts reclassified from AOCI into net income for the period February 1 to December 31, 2016 (Successor Company): Net Unrealized OTTI on Fixed Adjustment Net Gains (Losses) on Cash Flow Hedges Accumulated Balance as of February 1, 2016 $ — $ — $ — $ — $ — Other comprehensive income (loss) before reclassifications, net of taxes (1) 128.6 (0.3 ) (11.5 ) 28.3 145.1 Reclassifications recorded in: Net investment income: Interest rate swaps — — — (6.6 ) (6.6 ) Foreign currency swaps — — — (9.0 ) (9.0 ) Net realized (gains) losses 13.8 0.1 (3.7 ) (0.8 ) 9.4 Total provision (benefit) for income taxes (4.8 ) — 1.2 5.8 2.2 Total reclassifications from AOCI, net of taxes 9.0 0.1 (2.5 ) (10.6 ) (4.0 ) Other comprehensive income (loss) after reclassifications 137.6 (0.2 ) (14.0 ) 17.7 141.1 Balance as of December 31, 2016 $ 137.6 $ (0.2 ) $ (14.0 ) $ 17.7 $ 141.1 ___________________ (1) Other comprehensive income (loss) before reclassifications is net of taxes of $69.3 , $(0.1) , $(6.3) , $15.3 , and $78.2 , respectively, for the period February 1 to December 31, 2016 . (2) Reclassification adjustments of OTTI on fixed maturities not related to credit losses are included in changes in unrealized gains and losses on available-for-sale securities within the consolidated statements of comprehensive income. The following table summarizes the components of AOCI and the adjustments to OCI for amounts reclassified from AOCI into net income for the period January 1 to January 31, 2016 (Predecessor Company): Net Unrealized Gains (Losses) on Available-for- sale Securities OTTI on Fixed Maturities not related to Credit Losses (2) Adjustment for DAC Net Gains (Losses) on Cash Flow Hedges Accumulated Balance as of January 1, 2016 $ 521.7 $ (17.7 ) $ (28.1 ) $ 42.2 $ 518.1 Other comprehensive income (loss) before reclassifications, net of taxes (1) 111.6 — (24.7 ) 26.2 113.1 Reclassifications recorded in: Net investment income: Interest rate swaps — — — (0.6 ) (0.6 ) Foreign currency swaps — — — (1.0 ) (1.0 ) Net realized (gains) losses 2.6 — 0.5 — 3.1 Total provision (benefit) for income taxes (0.9 ) — (0.2 ) 0.6 (0.5 ) Total reclassifications from AOCI, net of taxes 1.7 — 0.3 (1.0 ) 1.0 Other comprehensive income (loss) after reclassifications 113.3 — (24.4 ) 25.2 114.1 Balance as of January 31, 2016 $ 635.0 $ (17.7 ) $ (52.5 ) $ 67.4 $ 632.2 ___________________ (1) Other comprehensive income (loss) before reclassifications is net of taxes of $60.1 , $0.0 , $(13.3) , $14.2 , and $61.0 , respectively, for the period January 1 to January 31, 2016. (2) Reclassification adjustments of OTTI on fixed maturities not related to credit losses are included in changes in unrealized gains and losses on available-for-sale securities within the consolidated statements of comprehensive income. The following table summarizes the components of AOCI and the adjustments to OCI for amounts reclassified from AOCI into net income for the year ended December 31, 2015 (Predecessor Company): Net Unrealized Gains (Losses) on Available-for- sale Securities OTTI on Fixed Maturities not related to Credit Losses (2) Adjustment for DAC Net Gains (Losses) on Cash Flow Hedges Accumulated Balance as of January 1, 2015 $ 1,127.8 $ (13.5 ) $ (131.4 ) $ 6.5 $ 989.4 Other comprehensive income (loss) before reclassifications, net of taxes (1) (641.2 ) (11.4 ) 108.0 42.3 (502.3 ) Reclassifications recorded in: Net investment income: Interest rate swaps — — — (4.6 ) (4.6 ) Foreign currency swaps — — — (5.5 ) (5.5 ) Net realized (gains) losses 54.0 11.1 (7.2 ) — 57.9 Total provision (benefit) for income taxes (18.9 ) (3.9 ) 2.5 3.5 (16.8 ) Total reclassifications from AOCI, net of taxes 35.1 7.2 (4.7 ) (6.6 ) 31.0 Other comprehensive income (loss) after reclassifications (606.1 ) (4.2 ) 103.3 35.7 (471.3 ) Balance as of December 31, 2015 $ 521.7 $ (17.7 ) $ (28.1 ) $ 42.2 $ 518.1 ___________________ (1) Other comprehensive income (loss) before reclassifications is net of taxes of $(345.3) , $(6.1) , $58.2 , $22.8 , and $(270.4) , respectively, for the year ended December 31, 2015. (2) Reclassification adjustments of OTTI on fixed maturities not related to credit losses are included in changes in unrealized gains and losses on available-for-sale securities within the consolidated statements of comprehensive income. The following tables summarize the components of AOCI and the adjustments to OCI for amounts reclassified from AOCI into net income for the six months ended June 30, 2018 : Net Unrealized OTTI on Fixed Adjustment Net Gains (Losses) on Cash Flow Hedges Accumulated Other Comprehensive Income (Loss) Balance as of January 1, 2018 $ 642.7 $ (0.3 ) $ (63.6 ) $ (27.7 ) $ 551.1 Other comprehensive income (loss) before reclassifications, net of taxes (1) (847.5 ) — 144.3 (8.3 ) (711.5 ) Reclassifications recorded in: Net investment income: Interest rate swaps — — — 1.7 1.7 Foreign currency swaps — — — (3.1 ) (3.1 ) Net realized (gains) losses 9.5 — 7.2 5.2 21.9 Total provision (benefit) for income taxes (2.0 ) — (1.5 ) (0.8 ) (4.3 ) Total reclassifications from AOCI, net of taxes 7.5 — 5.7 3.0 16.2 Other comprehensive income (loss) after reclassifications (840.0 ) — 150.0 (5.3 ) (695.3 ) Adoption of new accounting standard (3) (114.3 ) — — — (114.3 ) Balance as of June 30, 2018 $ (311.6 ) $ (0.3 ) $ 86.4 $ (33.0 ) $ (258.5 ) ___________________ (1) Other comprehensive income (loss) before reclassifications is net of taxes of $(225.3) , $0.0 , $38.4 , $(2.2) , and $(189.1) , respectively, for the six months ended June 30, 2018 . Tax effects in OCI are calculated based on the applicable enacted tax rate at the time gains (losses) are incurred. (2) Reclassification adjustments of OTTI on fixed maturities not related to credit losses are included in changes in unrealized gains and losses on available-for-sale securities within the consolidated statements of comprehensive income. (3) Accounting Standards Update No. 2016-01, Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Financial Liabilities. Refer to Note 2 for further discussion. The following tables summarize the components of AOCI and the adjustments to OCI for amounts reclassified from AOCI into net income for the six months ended June 30, 2017: Net Unrealized OTTI on Fixed Adjustment Net Gains (Losses) on Cash Flow Hedges Accumulated Other Comprehensive Income (Loss) Balance as of January 1, 2017 $ 137.6 $ (0.2 ) $ (14.0 ) $ 17.7 $ 141.1 Other comprehensive income (loss) before reclassifications, net of taxes (1) 333.5 — (53.5 ) (14.7 ) 265.3 Reclassifications recorded in: Net investment income: Interest rate swaps — — — (3.2 ) (3.2 ) Foreign currency swaps — — — (4.7 ) (4.7 ) Net realized (gains) losses (28.9 ) — 1.1 9.4 (18.4 ) Total provision (benefit) for income taxes 10.1 — (0.4 ) (0.5 ) 9.2 Total reclassifications from AOCI, net of taxes (18.8 ) — 0.7 1.0 (17.1 ) Other comprehensive income (loss) after reclassifications 314.7 — (52.8 ) (13.7 ) 248.2 Balance as of June 30, 2017 $ 452.3 $ (0.2 ) $ (66.8 ) $ 4.0 $ 389.3 ___________________ (1) Other comprehensive income (loss) before reclassifications is net of taxes of $179.6 , $0.0 , $(28.8) , $(7.9) , and $142.9 , respectively, for the six months ended June 30, 2017. Tax effects in OCI are calculated based on the applicable enacted tax rate at the time gains (losses) are incurred. (2) Reclassification adjustments of OTTI on fixed maturities not related to credit losses are included in changes in unrealized gains and losses on available-for-sale securities within the consolidated statements of comprehensive income. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Commitments | Future minimum lease commitments, including cost escalation clauses, for the next five years and thereafter are as follows: Lease Payments 2018 $ 9.4 2019 9.1 2020 8.5 2021 4.6 2022 2.4 Thereafter 4.6 Total $ 38.6 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Selected Financial Information by Segment | The following tables present selected financial information by segment and reconcile segment adjusted pre-tax income (loss) to amounts reported in the consolidated statements of income (loss): For the Year Ended December 31, 2017 (Successor Company) Benefits Deferred Income Individual Other Total Adjusted revenues: Premiums $ 867.4 $ — $ — $ 32.1 $ — $ 899.5 Net investment income 25.7 698.7 303.3 242.1 14.3 1,284.1 Policy fees, contract charges, and other 4.9 22.9 0.7 244.2 — 272.7 Certain realized gains (losses) — (12.7 ) (1.2 ) (5.4 ) (56.2 ) (75.5 ) Total adjusted revenues 898.0 708.9 302.8 513.0 (41.9 ) 2,380.8 Segment benefits and expenses: Policyholder benefits and claims 640.2 8.4 — 110.1 — 758.7 Interest credited — 418.4 279.7 275.5 — 973.6 Other underwriting and operating expenses 220.7 115.1 15.6 98.8 2.3 452.5 Amortization of DAC and VOBA 2.8 60.8 2.0 8.7 — 74.3 Total segment benefits and expenses 863.7 602.7 297.3 493.1 2.3 2,259.1 Segment adjusted pre-tax income (loss) $ 34.3 $ 106.2 $ 5.5 $ 19.9 $ (44.2 ) $ 121.7 Total adjusted revenues $ 898.0 $ 708.9 $ 302.8 $ 513.0 $ (41.9 ) $ 2,380.8 Add: Excluded realized gains (losses) 0.6 42.6 33.3 0.5 0.4 77.4 Total revenues 898.6 751.5 336.1 513.5 (41.5 ) 2,458.2 Total segment benefits and expenses 863.7 602.7 297.3 493.1 2.3 2,259.1 Add: Amortization of intangible assets 53.4 26.0 3.3 1.7 — 84.4 Total benefits and expenses 917.1 628.7 300.6 494.8 2.3 2,343.5 Income (loss) from operations before income taxes $ (18.5 ) $ 122.8 $ 35.5 $ 18.7 $ (43.8 ) $ 114.7 As of December 31, 2017 Total investments $ 342.3 $ 21,673.5 $ 7,349.9 $ 6,855.5 $ 1,623.6 $ 37,844.8 DAC and VOBA 7.7 422.0 16.3 250.2 — 696.2 Other intangible assets 707.3 485.2 49.6 12.8 — 1,254.9 Goodwill 308.0 198.8 50.2 6.0 — 563.0 Separate account assets — 613.2 — 364.9 — 978.1 Total assets 1,467.3 23,968.5 7,513.4 7,836.0 1,769.0 42,554.2 Future policy benefits, losses, claims and loss expense (1) 344.7 21,350.2 7,124.5 7,221.9 — 36,041.3 Other policyholders' funds 29.3 22.7 4.0 47.0 14.9 117.9 ___________________ (1) Includes funds held under deposit contracts, future policy benefits, and policy and contract claims on the consolidated balance sheets. February 1 to December 31, 2016 (Successor Company) Benefits Deferred Income Individual Other Total Adjusted revenues: Premiums $ 686.7 $ — $ — $ 30.8 $ — $ 717.5 Net investment income 18.8 579.5 288.8 202.9 11.3 1,101.3 Policy fees, contract charges, and other 6.3 17.9 0.8 195.0 0.1 220.1 Certain realized gains (losses) — (24.3 ) (5.1 ) (7.9 ) (48.5 ) (85.8 ) Total adjusted revenues 711.8 573.1 284.5 420.8 (37.1 ) 1,953.1 Segment benefits and expenses: Policyholder benefits and claims 497.6 2.8 — 68.4 — 568.8 Interest credited — 354.8 267.5 245.5 — 867.8 Other underwriting and operating expenses 177.8 98.2 17.0 87.9 25.7 406.6 Amortization of DAC and VOBA 0.6 56.5 0.7 1.9 — 59.7 Total segment benefits and expenses 676.0 512.3 285.2 403.7 25.7 1,902.9 Segment adjusted pre-tax income (loss) $ 35.8 $ 60.8 $ (0.7 ) $ 17.1 $ (62.8 ) $ 50.2 Total adjusted revenues $ 711.8 $ 573.1 $ 284.5 $ 420.8 $ (37.1 ) $ 1,953.1 Add: Excluded realized gains (losses) (1.3 ) (2.9 ) (12.0 ) (4.5 ) (3.8 ) (24.5 ) Total revenues 710.5 570.2 272.5 416.3 (40.9 ) 1,928.6 Total segment benefits and expenses 676.0 512.3 285.2 403.7 25.7 1,902.9 Add: Amortization of intangible assets 49.0 23.8 3.1 1.5 — 77.4 Total benefits and expenses 725.0 536.1 288.3 405.2 25.7 1,980.3 Income (loss) from operations before income taxes $ (14.5 ) $ 34.1 $ (15.8 ) $ 11.1 $ (66.6 ) $ (51.7 ) As of December 31, 2016 Total investments $ 95.3 $ 19,609.6 $ 7,204.2 $ 6,513.4 $ 1,878.2 $ 35,300.7 DAC and VOBA 2.4 423.5 8.8 162.0 — 596.7 Other intangible assets 760.8 511.2 52.9 14.5 — 1,339.4 Goodwill 308.0 198.8 50.2 6.0 — 563.0 Separate account assets — 652.2 — 259.2 — 911.4 Total assets 1,237.6 21,941.4 7,377.8 7,345.1 1,952.8 39,854.7 Future policy benefits, losses, claims and loss expense (1) 272.8 19,531.9 7,260.4 6,954.5 — 34,019.6 Other policyholders' funds 26.3 22.1 5.0 49.9 14.7 118.0 ___________________ (1) Includes funds held under deposit contracts, future policy benefits, and policy and contract claims on the consolidated balance sheets. January 1 to January 31, 2016 (Predecessor Company) Benefits Deferred Annuities Income Annuities Individual Life Other Total Adjusted revenues: Premiums $ 58.6 $ — $ — $ 2.6 $ — $ 61.2 Net investment income 2.1 57.3 29.8 22.9 (2.4 ) 109.7 Policy fees, contract charges, and other 0.6 1.4 0.1 16.2 — 18.3 Certain realized gains (losses) — (0.4 ) — — — (0.4 ) Total adjusted revenues 61.3 58.3 29.9 41.7 (2.4 ) 188.8 Segment benefits and expenses: Policyholder benefits and claims 37.1 0.2 — 11.1 — 48.4 Interest credited — 33.2 30.1 21.6 — 84.9 Other underwriting and operating expenses 16.1 8.0 1.4 7.3 0.4 33.2 Amortization of DAC 0.2 6.6 0.6 1.2 — 8.6 Total segment benefits and expenses 53.4 48.0 32.1 41.2 0.4 175.1 Segment adjusted pre-tax income (loss) $ 7.9 $ 10.3 $ (2.2 ) $ 0.5 $ (2.8 ) $ 13.7 Total adjusted revenues $ 61.3 $ 58.3 $ 29.9 $ 41.7 $ (2.4 ) $ 188.8 Add: Excluded realized gains (losses) — (1.9 ) (22.5 ) 0.6 (2.7 ) (26.5 ) Total revenues 61.3 56.4 7.4 42.3 (5.1 ) 162.3 Total benefits and expenses 53.4 48.0 32.1 41.2 0.4 175.1 Income (loss) from operations before income taxes $ 7.9 $ 8.4 $ (24.7 ) $ 1.1 $ (5.5 ) $ (12.8 ) For the Year Ended December 31, 2015 (Predecessor Company) Benefits Deferred Income Individual Other Total Adjusted revenues: Premiums $ 683.2 $ — $ — $ 33.4 $ — $ 716.6 Net investment income 23.4 663.6 380.9 290.9 (19.4 ) 1,339.4 Policy fees, contract charges, and other 6.5 18.7 0.8 180.7 0.3 207.0 Certain realized gains (losses) — (1.0 ) — — — (1.0 ) Total adjusted revenues 713.1 681.3 381.7 505.0 (19.1 ) 2,262.0 Segment benefits and expenses: Policyholder benefits and claims 456.9 0.6 — 113.3 — 570.8 Interest credited — 374.8 341.0 257.8 — 973.6 Other underwriting and operating expenses 184.5 99.9 16.7 87.2 (1.0 ) 387.3 Amortization of DAC and VOBA 1.8 71.8 6.1 10.4 — 90.1 Total segment benefits and expenses 643.2 547.1 363.8 468.7 (1.0 ) 2,021.8 Segment adjusted pre-tax income (loss) $ 69.9 $ 134.2 $ 17.9 $ 36.3 $ (18.1 ) $ 240.2 Total adjusted revenues $ 713.1 $ 681.3 $ 381.7 $ 505.0 $ (19.1 ) $ 2,262.0 Add: Excluded realized gains (losses) 0.1 (34.6 ) (6.3 ) (5.3 ) (46.0 ) (92.1 ) Total revenues 713.2 646.7 375.4 499.7 (65.1 ) 2,169.9 Total benefits and expenses 643.2 547.1 363.8 468.7 (1.0 ) 2,021.8 Income (loss) from operations before income taxes $ 70.0 $ 99.6 $ 11.6 $ 31.0 $ (64.1 ) $ 148.1 The following tables present selected financial information by segment and reconcile segment adjusted pre-tax income (loss) to amounts reported in the consolidated statements of income (loss): For the Six Months Ended June 30, 2018 Benefits Deferred Income Individual Other Total Adjusted revenues: Premiums $ 491.1 $ — $ — $ 15.7 $ — $ 506.8 Net investment income 14.4 365.4 151.4 129.4 10.7 671.3 Policy fees, contract charges, and other 2.4 14.2 0.3 136.2 — 153.1 Certain realized gains (losses) (0.1 ) (2.3 ) (2.1 ) (1.5 ) (23.6 ) (29.6 ) Total adjusted revenues 507.8 377.3 149.6 279.8 (12.9 ) 1,301.6 Segment benefits and expenses: Policyholder benefits and claims 353.6 6.2 — 79.6 — 439.4 Interest credited — 221.9 141.8 141.7 — 505.4 Other underwriting and operating expenses 119.0 60.4 8.0 55.6 0.2 243.2 Amortization of DAC and VOBA 2.6 33.6 1.5 (11.5 ) — 26.2 Total segment benefits and expenses 475.2 322.1 151.3 265.4 0.2 1,214.2 Segment adjusted pre-tax income (loss) $ 32.6 $ 55.2 $ (1.7 ) $ 14.4 $ (13.1 ) $ 87.4 Total adjusted revenues $ 507.8 $ 377.3 $ 149.6 $ 279.8 $ (12.9 ) $ 1,301.6 Add: Excluded realized gains (losses) (0.1 ) 1.7 (26.3 ) (1.5 ) (3.0 ) (29.2 ) Total revenues 507.7 379.0 123.3 278.3 (15.9 ) 1,272.4 Total segment benefits and expenses 475.2 322.1 151.3 265.4 0.2 1,214.2 Add: Amortization of intangible assets 26.7 13.0 1.7 0.8 — 42.2 Total benefits and expenses 501.9 335.1 153.0 266.2 0.2 1,256.4 Income (loss) from operations before income taxes $ 5.8 $ 43.9 $ (29.7 ) $ 12.1 $ (16.1 ) $ 16.0 For the Six Months Ended June 30, 2017 Benefits Deferred Income Individual Other Total Adjusted revenues: Premiums $ 425.0 $ — $ — $ 16.7 $ — $ 441.7 Net investment income 11.7 349.3 152.1 119.8 7.7 640.6 Policy fees, contract charges, and other 2.4 11.4 0.4 117.3 — 131.5 Certain realized gains (losses) — (4.0 ) (1.3 ) (3.1 ) (17.3 ) (25.7 ) Total adjusted revenues 439.1 356.7 151.2 250.7 (9.6 ) 1,188.1 Segment benefits and expenses: Policyholder benefits and claims 330.0 2.4 — 45.5 — 377.9 Interest credited — 206.9 136.9 136.1 — 479.9 Other underwriting and operating expenses 109.3 57.8 7.8 48.7 0.9 224.5 Amortization of DAC and VOBA 1.1 34.2 0.8 4.6 — 40.7 Total segment benefits and expenses 440.4 301.3 145.5 234.9 0.9 1,123.0 Segment adjusted pre-tax income (loss) $ (1.3 ) $ 55.4 $ 5.7 $ 15.8 $ (10.5 ) $ 65.1 Total adjusted revenues $ 439.1 $ 356.7 $ 151.2 $ 250.7 $ (9.6 ) $ 1,188.1 Add: Excluded realized gains (losses) 0.5 (6.1 ) 26.9 (0.6 ) 0.7 21.4 Total revenues 439.6 350.6 178.1 250.1 (8.9 ) 1,209.5 Total segment benefits and expenses 440.4 301.3 145.5 234.9 0.9 1,123.0 Add: Amortization of intangible assets 26.7 13.0 1.7 0.8 — 42.2 Total benefits and expenses 467.1 314.3 147.2 235.7 0.9 1,165.2 Income (loss) from operations before income taxes $ (27.5 ) $ 36.3 $ 30.9 $ 14.4 $ (9.8 ) $ 44.3 As of June 30, 2018 Benefits Deferred Annuities Income Annuities Individual Life Other Total Total investments $ 387.9 $ 21,836.7 $ 6,888.0 $ 6,786.0 $ 1,716.4 $ 37,615.0 DAC and VOBA 10.1 583.8 19.5 347.4 — 960.8 Other intangible assets 680.8 472.2 47.9 11.9 — 1,212.8 Goodwill 308.0 198.8 50.2 6.0 — 563.0 Separate account assets — 578.7 — 420.7 — 999.4 Total assets 1,482.4 24,426.7 7,066.0 7,924.9 1,762.2 42,662.2 Future policy benefits, losses, claims and loss expense (1) 395.2 22,078.0 7,072.1 7,412.0 — 36,957.3 Other policyholders' funds 26.1 42.3 2.1 49.2 12.0 131.7 December 31, 2017 Benefits Deferred Annuities Income Annuities Individual Life Other Total Total investments $ 342.3 $ 21,673.5 $ 7,349.9 $ 6,855.5 $ 1,623.6 $ 37,844.8 DAC and VOBA 7.7 422.0 16.3 250.2 — 696.2 Other intangible assets 707.3 485.2 49.6 12.8 — 1,254.9 Goodwill 308.0 198.8 50.2 6.0 — 563.0 Separate account assets — 613.2 — 364.9 — 978.1 Total assets 1,467.3 23,968.5 7,513.4 7,836.0 1,769.0 42,554.2 Future policy benefits, losses, claims and loss expense (1) 344.7 21,350.2 7,124.5 7,221.9 — 36,041.3 Other policyholders' funds 29.3 22.7 4.0 47.0 14.9 117.9 ___________________ (1) Includes funds held under deposit contracts, future policy benefits, and policy and contract claims on the consolidated balance sheets. |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |
Schedule of Net Life Insurance in Force | The following table sets forth net life insurance in force: Successor Predecessor As of December 31, 2017 As of December 31, 2016 As of December 31, 2015 Direct life insurance in force $ 109,179.4 $ 86,142.8 $ 76,853.1 Amounts assumed from other companies 188.1 187.0 184.7 Amounts ceded to other companies (26,473.9 ) (24,452.4 ) (23,558.3 ) Net life insurance in force $ 82,893.6 $ 61,877.4 $ 53,479.5 Percentage of amount assumed to net 0.23 % 0.30 % 0.35 % Percentage of amount ceded to direct 24.25 % 28.39 % 30.65 % |
Schedule of Reinsurance Recoverables | Reinsurance recoverables are composed of the following amounts: As of As of Life insurance Reinsurance recoverables on: Funds held under deposit contracts $ 102.4 $ 99.8 Future policy benefits 134.3 130.9 Paid claims, expense allowance, premium tax recoverables and other 18.7 3.7 Policy and contract claims 5.8 6.9 Total life insurance 261.2 241.3 Accident and health insurance Reinsurance recoverables on: Future policy benefits 40.3 47.6 Policy and contract claims 12.7 8.0 Paid claims, expense allowance and premium tax recoverables 4.0 1.9 Total accident and health insurance 57.0 57.5 Total reinsurance recoverables $ 318.2 $ 298.8 |
The Effects of Reinsurance on Premiums and Policy Fees and Contract Charges | The following table sets forth the effect of reinsurance on premiums and policy fees and contract charges. It is disaggregated by accident and health, and life insurance products, which are short- and long-duration contracts, respectively. Successor Predecessor For the Year Ended February 1 to January 1 to For the Year Ended Premiums: Direct: Accident and health $ 798.7 $ 626.3 $ 56.7 $ 676.0 Life insurance 171.1 127.5 10.7 123.1 Total direct 969.8 753.8 67.4 799.1 Total assumed 0.9 0.3 — 0.1 Ceded: Accident and health (1) (26.4 ) (0.6 ) (4.0 ) (43.5 ) Life insurance (44.8 ) (36.0 ) (2.2 ) (39.1 ) Total ceded (71.2 ) (36.6 ) (6.2 ) (82.6 ) Total premiums 899.5 717.5 61.2 716.6 Policy fees and contract charges: Direct life insurance 245.4 195.2 16.0 180.0 Ceded life insurance (11.7 ) (9.1 ) (0.5 ) (8.6 ) Total policy fees and contract charges (2) 233.7 186.1 15.5 171.4 Total premiums and other amounts assessed to policyholders $ 1,133.2 $ 903.6 $ 76.7 $ 888.0 Percentage of assumed to total premiums and other amounts assessed to policyholders 0.08 % 0.03 % — % 0.01 % _______________ (1) Successor Company ceded premiums reflect long-term disability income business recaptured during 2016. (2) Total policy fees and contract charges represents amounts charged to policyholders other than premiums and recorded in policy fees, contract charges and other in the consolidated statements of income (loss). This primarily consists of cost of insurance charges. |
Liability for Unpaid Claims a_2
Liability for Unpaid Claims and Claim Adjustment Expenses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Insurance [Abstract] | |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | The following tables provide reconciliations of the beginning and ending liability balances for unpaid claims and claims adjustment expenses (CAE) disaggregated by medical stop-loss, and group life and DI and other. These reserves include policy and contract claims and certain amounts recorded in future policy benefits on the consolidated balance sheets. Medical Stop-Loss Successor Predecessor For the Year Ended December 31, 2017 February 1 to January 1 to For the Year Ended December 31, 2015 Balance, beginning of period $ 114.6 $ 113.1 $ 122.9 $ 113.3 Less: reinsurance recoverables 7.7 3.4 3.6 2.8 Net balance, beginning of period 106.9 109.7 119.3 110.5 Incurred related to insured events of: The current year 464.8 351.9 28.1 371.4 Prior years 3.3 (5.2 ) (0.5 ) (7.6 ) Total incurred 468.1 346.7 27.6 363.8 Paid related to insured events of: The current year 331.1 276.7 1.9 256.9 Prior years 103.2 72.8 35.3 98.1 Total paid 434.3 349.5 37.2 355.0 Net balance, end of period 140.7 106.9 109.7 119.3 Add: reinsurance recoverables 12.4 7.7 3.4 3.6 Balance, end of period $ 153.1 $ 114.6 $ 113.1 $ 122.9 Group Life and DI and Other Successor Predecessor For the Year Ended December 31, 2017 February 1 to January 1 to For the Year Ended December 31, 2015 Balance, beginning of period $ 182.9 $ 149.4 $ 144.3 $ 126.3 Less: reinsurance recoverables 55.1 80.5 81.3 81.1 Net balance, beginning of period 127.8 68.9 63.0 45.2 Incurred related to insured events of: The current year 261.3 221.9 14.4 163.6 Prior years 2.7 10.5 3.0 7.8 Total incurred 264.0 232.4 17.4 171.4 Paid related to insured events of: The current year 172.3 137.9 1.7 118.6 Prior years 52.4 35.6 9.8 35.0 Total paid 224.7 173.5 11.5 153.6 Net balance, end of period 167.1 127.8 68.9 63.0 Add: reinsurance recoverables 46.7 55.1 80.5 81.3 Balance, end of period $ 213.8 $ 182.9 $ 149.4 $ 144.3 The following tables provide reconciliations of the beginning and ending liability balances for unpaid claims and claims adjustment expenses (CAE) disaggregated by medical stop-loss, group life and DI, and other. These reserves include policy and contract claims and certain amounts recorded in future policy benefits on the consolidated balance sheets. Liabilities for claims represent estimates that involve significant judgments. The Company reviews its estimates regularly and makes any necessary adjustments based on experience and expectations. Medical Stop-Loss For the Six Months Ended June 30, 2018 2017 Balance, beginning of period $ 153.1 $ 114.6 Less: reinsurance recoverables 12.4 7.7 Net balance, beginning of period 140.7 106.9 Incurred related to insured events of: The current year 249.8 239.2 Prior years (11.7 ) 4.8 Total incurred 238.1 244.0 Paid related to insured events of: The current year 93.6 87.4 Prior years 118.1 100.2 Total paid 211.7 187.6 Net balance, end of period 167.1 163.3 Add: reinsurance recoverables 7.9 11.2 Balance, end of period $ 175.0 $ 174.5 |
Short-duration Insurance Contracts, Claims Development | Medical Stop-Loss For the Years Ended December 31, As of December 31, 2017 Related IBNR Reserves Cumulative Number of Reported Claims Year of Insured Event 2016 (Unaudited) 2017 Incurred Claims, Net of Reinsurance: 2016 $ 380.0 $ 387.9 $ 5.8 4,806 2017 464.8 109.5 2,992 Total $ 852.7 $ 115.3 Cumulative Paid Claims, Net of Reinsurance: 2016 $ 278.5 $ 380.9 2017 331.1 Total 712.0 Liabilities for unpaid claims prior to 2016, net of reinsurance — Total liabilities for unpaid claims, net of reinsurance $ 140.7 Group Life and DI For the Years Ended December 31, As of December 31, 2017 2013 2014 2015 2016 Related IBNR Reserves Cumulative Number of Reported Claims Year of Insured Event (Unaudited) 2017 Incurred Claims, Net of Reinsurance: 2013 $ 21.9 $ 23.5 $ 23.0 $ 26.6 $ 27.5 $ — 16,249 2014 41.3 42.1 56.2 56.1 — 30,678 2015 73.6 92.1 90.8 — 37,966 2016 106.5 105.6 0.7 35,152 2017 157.9 42.4 36,690 Total $ 437.9 $ 43.1 Cumulative Paid Claims, Net of Reinsurance: 2013 $ 15.1 $ 19.7 $ 21.3 $ 22.0 $ 22.8 2014 25.3 32.6 35.9 39.8 2015 39.9 57.1 66.1 2016 53.4 74.2 2017 80.7 Total $ 283.6 Liabilities for unpaid claims prior to 2013, net of reinsurance 2.7 Total liabilities for unpaid claims, net of reinsurance $ 157.0 The following table presents total of incurred but not reported (IBNR) liabilities plus expected development on reported claims. As of June 30, 2018 Year of Insured Event Medical Stop-Loss Group Life and DI IBNR Reserves: 2017 $ 9.6 $ 7.3 2018 137.4 46.2 Total $ 147.0 $ 53.5 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | The reconciliation of the December 31, 2017 net incurred and paid claims development tables to the unpaid claims liability is as follows: Reconciliation of the Claims Development Information to the Liability for Unpaid Claims and CAE As of December 31, 2017 Net outstanding liabilities for unpaid claims Medical Stop-Loss $ 140.7 Group Life and DI 157.0 Other 3.8 Liabilities for unpaid claims, net of reinsurance 301.5 Reinsurance recoverable on unpaid claims Medical Stop-Loss 12.4 Group Life and DI 41.9 Other 0.2 Total reinsurance recoverable on unpaid claims 54.5 Insurance lines other than short duration, net 25.7 Impact of discounting (14.8 ) Total gross liability for unpaid claims $ 366.9 |
Short-duration Insurance Contracts, Schedule of Historical Claims Duration | The following is required unaudited supplementary information about average historical percentage payout of incurred claims by age, net of reinsurance: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Group Life and DI 57.2 % 16.2 % 3.0 % 0.6 % 6.1 % |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | Differences between income taxes computed by applying the U.S. federal income tax rate to income (loss) from operations before income taxes and the provision (benefit) for income taxes were as follows: Successor Predecessor For the Year Ended February 1 to January 1 to For the Year Ended Income (loss) from operations before income taxes $ 114.7 $ (51.7 ) $ (12.8 ) $ 148.1 Tax provision (benefit) at U.S. Federal statutory rate 40.2 35.0 % (18.1 ) 35.0 % (4.5 ) 35.0 % 51.8 35.0 % Increase (reduction) in rate resulting from: Impact of change in enacted tax rates on deferred tax balances (151.0 ) (131.6 ) — — — — — — Investment tax credits (37.0 ) (32.3 ) (52.0 ) 100.8 (4.1 ) 32.0 (79.8 ) (53.9 ) Other 2.4 2.1 (0.4 ) 0.6 (0.3 ) 2.4 (2.3 ) (1.5 ) Provision (benefit) for income taxes $ (145.4 ) (126.8 )% $ (70.5 ) 136.4 % $ (8.9 ) 69.4 % $ (30.3 ) (20.4 )% |
Schedule of Deferred Tax Assets and Liabilities | The following table sets forth the tax effects of temporary differences that gave rise to the deferred income tax assets and liabilities. Deferred income tax assets and liabilities were measured at a corporate tax rate of 21% and 35%, respectively, as of December 31, 2017 and 2016. As of As of Deferred income tax assets: Adjustments to life policy liabilities $ 452.6 $ 840.8 Deferred policy acquisition costs — 36.6 Other 13.3 21.9 Total deferred income tax assets 465.9 899.3 Deferred income tax liabilities: Deferred policy acquisition costs 24.4 — Basis adjustment on securities 210.4 462.0 Unrealized gains on investment securities (net of DAC and VOBA adjustment: $ 16.9 and $7.5, respectively) 146.5 76.0 Intangible assets 325.7 605.1 Other 10.0 9.6 Total deferred income tax liabilities 717.0 1,152.7 Deferred income tax liability, net $ 251.1 $ 253.4 |
Statutory Basis Information (Ta
Statutory Basis Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Insurance [Abstract] | |
Schedule of Statutory Net Income and Statutory Capital and Surplus | The statutory net income and statutory capital and surplus for the Company and its subsidiaries are as follows: For the Year Ended December 31, 2017 For the Year Ended December 31, 2016 For the Year Ended December 31, 2015 Statutory net income: Symetra Life Insurance Company $ 267.8 $ 43.4 $ 205.6 Subsidiaries 11.1 7.3 9.4 Statutory capital and surplus: Symetra Life Insurance Company (1) $ 2,218.9 $ 2,082.4 $ 2,081.5 Subsidiaries 135.9 134.0 138.1 _______________ (1) Symetra Life Insurance Company’s surplus includes the balances of its three wholly-owned subsidiaries, First Symetra National Life Insurance Company of New York, Symetra National Life Insurance Company and Symetra Reinsurance Corporation. |
Related Parties (Tables)
Related Parties (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Recorded Balances and Transactions with Related Parties | Balances and transactions with related parties recorded in the Company’s consolidated financial statements were as follows: As of As of Balances with Parent and affiliates: Receivables $ 0.1 $ 0.3 Payables 17.1 — Successor Predecessor For the Year Ended December 31, 2017 February 1 to December 31, 2016 January 1 to For the Year Ended December 31, 2015 Transactions with Parent and affiliates: Payments related to commutation endorsements (1) $ 7.8 $ 7.4 $ 0.6 $ 14.7 Shared services expenses allocated, net (2) 6.9 6.1 0.4 5.5 Concessions, general agent fees, administrative and underwriting fees 10.7 8.0 0.9 11.7 ___________________ (1) Commutation endorsements reduce the reserves reported in funds held under deposit contracts on the consolidated balance sheets and interest credited on the consolidated statements of income, net of related payments. (2) Reported primarily in other underwriting and operating expenses on the consolidated statements of income. |
Description of Business (Detail
Description of Business (Details) $ in Billions | Feb. 01, 2016USD ($) |
Sumitomo Life | |
Business Acquisition [Line Items] | |
Payments to acquire businesses | $ 3.7 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2017 | Sep. 28, 2018 | Dec. 31, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Weighted average implied interest rate on business | 4.03% | 4.03% | |||
Weighted average implied interest rate on business over period of time | 5.63% | ||||
Subsequent event | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reinsurance agreement with funds withheld, in-force income annuities | $ 6,800 | ||||
Investments in limited partnerships | Not Primary Beneficiary | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Maximum exposure to loss | $ 176.3 | $ 176.3 | $ 215.3 | ||
Structured Securities | Not Primary Beneficiary | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Maximum exposure to loss | 5,053.9 | $ 5,053.9 | $ 5,155.2 | ||
Accumulated Other Comprehensive Income | Accounting Standards Update 2016-01 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net unrealized gains, reclassified from AOCI to RE | $ (114.3) | (114) | |||
Taxes on reclassified unrealized gains, net | (30.4) | (30.3) | |||
Retained Earnings | Accounting Standards Update 2016-01 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net unrealized gains, reclassified from AOCI to RE | 114.3 | 114 | |||
Taxes on reclassified unrealized gains, net | $ 30.4 | $ 30.3 |
Sumitomo Life Merger (Details)
Sumitomo Life Merger (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 01, 2016 |
Assets | ||||
Goodwill | $ 563 | $ 563 | $ 563 | |
Sumitomo Life Merger | ||||
Assets | ||||
Total investments | $ 32,790 | |||
Cash and cash equivalents | 254 | |||
Accrued investment income | 326.6 | |||
Reinsurance recoverables | 321.5 | |||
VOBA | 457.6 | |||
Receivables and other assets | 217 | |||
Other intangible assets | 1,416.8 | |||
Goodwill | 563 | |||
Separate account assets | 858.2 | |||
Total assets | 37,204.7 | |||
Liabilities | ||||
Funds held under deposit contracts | 31,047.4 | |||
Future policy benefits | 459.3 | |||
Policy and contract claims | 144.2 | |||
Other policyholders' funds | 150.7 | |||
Deferred income tax liabilities, net | 260.8 | |||
Other liabilities | 338 | |||
Separate account liabilities | 858.2 | |||
Total liabilities | 33,258.6 | |||
Net assets acquired | 3,946.1 | |||
Fixed maturities | Sumitomo Life Merger | ||||
Assets | ||||
Total investments | 26,638.8 | |||
Marketable equity securities | Sumitomo Life Merger | ||||
Assets | ||||
Total investments | 627.5 | |||
Mortgage loans | Sumitomo Life Merger | ||||
Assets | ||||
Total investments | 5,077 | |||
Policy loans | Sumitomo Life Merger | ||||
Assets | ||||
Total investments | 58.3 | |||
Investments in limited partnerships | Sumitomo Life Merger | ||||
Assets | ||||
Total investments | 238.7 | |||
Derivatives | Sumitomo Life Merger | ||||
Assets | ||||
Total investments | $ 149.7 |
Sumitomo Life Merger - Intangib
Sumitomo Life Merger - Intangible Assets (Details) - USD ($) $ in Millions | Feb. 01, 2016 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets, Gross Carrying Amount | $ 1,405.8 | $ 1,405.8 | ||
indefinite-lived intangible assets, Gross Carrying Amount | 11 | 11 | ||
Accumulated Amortization | (204) | (161.9) | ||
Total intangible assets | 1,416.8 | 1,416.8 | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||
2,019 | 84.5 | |||
2,020 | 84.5 | |||
2,021 | 70.9 | |||
2,022 | 69.6 | |||
Sumitomo Life Merger | ||||
Business Acquisition [Line Items] | ||||
Total intangible assets subject to amortization | $ 1,405.8 | |||
Insurance licenses | 11 | |||
Total intangible assets | $ 1,416.8 | |||
Weighted Average Estimated Useful Life | 24 years 3 months 18 days | |||
Finite-lived intangible assets, Gross Carrying Amount | 1,405.8 | $ 1,405.8 | ||
indefinite-lived intangible assets, Gross Carrying Amount | 11 | 11 | ||
Accumulated Amortization | (161.9) | (77.4) | ||
Total intangible assets | 1,416.8 | 1,416.8 | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||
2,018 | 84.5 | |||
2,019 | 84.5 | |||
2,020 | 84.5 | |||
2,021 | 70.9 | |||
2,022 | 69.6 | |||
VODA | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets, Gross Carrying Amount | 782 | 782 | ||
Accumulated Amortization | (54.9) | (43.5) | ||
VODA | Sumitomo Life Merger | ||||
Business Acquisition [Line Items] | ||||
Total intangible assets subject to amortization | $ 782 | |||
Weighted Average Estimated Useful Life | 35 years | |||
Finite-lived intangible assets, Gross Carrying Amount | 782 | 782 | ||
Accumulated Amortization | (43.5) | (20.8) | ||
VOCRA | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets, Gross Carrying Amount | 361.8 | 361.8 | ||
Accumulated Amortization | (87.3) | (69.4) | ||
VOCRA | Sumitomo Life Merger | ||||
Business Acquisition [Line Items] | ||||
Total intangible assets subject to amortization | $ 361.8 | |||
Weighted Average Estimated Useful Life | 10 years | |||
Finite-lived intangible assets, Gross Carrying Amount | 361.8 | 361.8 | ||
Accumulated Amortization | (69.4) | (33.1) | ||
Trade names | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets, Gross Carrying Amount | 190 | 190 | ||
Accumulated Amortization | (27) | (21.4) | ||
Trade names | Sumitomo Life Merger | ||||
Business Acquisition [Line Items] | ||||
Total intangible assets subject to amortization | $ 190 | |||
Weighted Average Estimated Useful Life | 17 years | |||
Finite-lived intangible assets, Gross Carrying Amount | 190 | 190 | ||
Accumulated Amortization | (21.4) | (10.3) | ||
Technology | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets, Gross Carrying Amount | 72 | 72 | ||
Accumulated Amortization | $ (34.8) | (27.6) | ||
Technology | Sumitomo Life Merger | ||||
Business Acquisition [Line Items] | ||||
Total intangible assets subject to amortization | $ 72 | |||
Weighted Average Estimated Useful Life | 5 years | |||
Finite-lived intangible assets, Gross Carrying Amount | 72 | 72 | ||
Accumulated Amortization | $ (27.6) | $ (13.2) |
Sumitomo Life Merger - Narrativ
Sumitomo Life Merger - Narrative (Details) $ in Millions | Feb. 01, 2016USD ($) |
Sumitomo Life Merger | |
Business Acquisition [Line Items] | |
Share-based compensation expense | $ 16.7 |
Other Intangible Assets - Ident
Other Intangible Assets - Identified Intangible Assets Recognized (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Carrying Amount | $ 1,405.8 | $ 1,405.8 |
Accumulated Amortization | (204) | (161.9) |
indefinite-lived intangible assets, Gross Carrying Amount | 11 | 11 |
Total intangible assets | 1,416.8 | 1,416.8 |
VODA | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Carrying Amount | 782 | 782 |
Accumulated Amortization | (54.9) | (43.5) |
VOCRA | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Carrying Amount | 361.8 | 361.8 |
Accumulated Amortization | (87.3) | (69.4) |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Carrying Amount | 190 | 190 |
Accumulated Amortization | (27) | (21.4) |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, Gross Carrying Amount | 72 | 72 |
Accumulated Amortization | $ (34.8) | $ (27.6) |
Other Intangible Assets - Estim
Other Intangible Assets - Estimated Future Aggregate Amortization Expense (Details) $ in Millions | Jun. 30, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2018 (remaining) | $ 42.3 |
2,019 | 84.5 |
2,020 | 84.5 |
2,021 | 70.9 |
2,022 | $ 69.6 |
Investments - Unrealized Gains
Investments - Unrealized Gains and Losses on Available-for-sale and Marketable Securities (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Fixed maturities: | |||
Cost or Amortized Cost | $ 30,486.7 | $ 29,599.2 | $ 28,097.5 |
Gross Unrealized Gains | 301.2 | 812.8 | 454.5 |
Gross Unrealized Losses | (663.4) | (130.7) | (240) |
Fair Value | 30,124.5 | 30,281.3 | 28,312 |
Marketable equity securities | |||
Cost or Amortized Cost | 611.4 | 642.7 | |
Gross Unrealized Gains | 150.7 | 81.9 | |
Gross Unrealized Losses | (6.4) | (7.2) | |
Fair Value | 708.6 | 755.7 | 717.4 |
Cost or Amortized Cost | 30,210.6 | 28,740.2 | |
Gross Unrealized Gains | 963.5 | 536.4 | |
Gross Unrealized Losses | 137.1 | 247.2 | |
Fair Value | 31,037 | 29,029.4 | |
U.S. government and agencies | |||
Fixed maturities: | |||
Cost or Amortized Cost | 305.1 | 426.9 | 397.3 |
Gross Unrealized Gains | 0.7 | 0.2 | 0.4 |
Gross Unrealized Losses | (8.5) | (4.9) | (5.6) |
Fair Value | 297.3 | 422.2 | 392.1 |
State and political subdivisions | |||
Fixed maturities: | |||
Cost or Amortized Cost | 761.9 | 794.3 | 943 |
Gross Unrealized Gains | 1.3 | 5 | 1.3 |
Gross Unrealized Losses | (16.3) | (6.9) | (13.5) |
Fair Value | 746.9 | 792.4 | 930.8 |
Corporate securities | |||
Fixed maturities: | |||
Cost or Amortized Cost | 24,165.4 | 23,223.8 | 21,497.2 |
Gross Unrealized Gains | 278.4 | 768.9 | 423.5 |
Gross Unrealized Losses | (509.4) | (60.5) | (151.7) |
Fair Value | 23,934.4 | 23,932.2 | 21,769 |
Marketable equity securities | |||
Fair Value | 23,934.4 | 23,932.2 | 21,769 |
Residential mortgage-backed securities | |||
Fixed maturities: | |||
Cost or Amortized Cost | 2,520.1 | 2,516 | 2,633.1 |
Gross Unrealized Gains | 4.7 | 6.6 | 3.7 |
Gross Unrealized Losses | (98.6) | (49.8) | (52.2) |
Fair Value | 2,426.2 | 2,472.8 | 2,584.6 |
Commercial mortgage-backed securities | |||
Fixed maturities: | |||
Cost or Amortized Cost | 769.1 | 795 | 920.5 |
Gross Unrealized Gains | 0.5 | 3.8 | 2.7 |
Gross Unrealized Losses | (14) | (3.1) | (6.4) |
Fair Value | 755.6 | 795.7 | 916.8 |
Collateralized loan obligations | |||
Fixed maturities: | |||
Cost or Amortized Cost | 1,099.4 | 1,128.1 | 1,198.7 |
Gross Unrealized Gains | 8.8 | 18.5 | 18.7 |
Gross Unrealized Losses | (2.7) | 0 | (3.8) |
Fair Value | 1,105.5 | 1,146.6 | 1,213.6 |
Other debt obligations | |||
Fixed maturities: | |||
Cost or Amortized Cost | 865.7 | 715.1 | 507.7 |
Gross Unrealized Gains | 6.8 | 9.8 | 4.2 |
Gross Unrealized Losses | (13.9) | (5.5) | (6.8) |
Fair Value | $ 858.6 | $ 719.4 | $ 505.1 |
Investments - Composition of Co
Investments - Composition of Corporate Securities Portfolio by Sector (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Fair Value | $ 31,037 | $ 29,029.4 | |
Corporate securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair Value | $ 23,934.4 | $ 23,932.2 | $ 21,769 |
Concentration risk percentage | 100.00% | 100.00% | 100.00% |
Corporate securities | Sector Risk | Industrial | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair Value | $ 4,418.5 | $ 4,446.7 | $ 4,020.8 |
Concentration risk percentage | 18.50% | 18.60% | 18.50% |
Corporate securities | Sector Risk | Consumer discretionary | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair Value | $ 3,420.4 | $ 3,379.9 | $ 2,994.9 |
Concentration risk percentage | 14.30% | 14.10% | 13.80% |
Corporate securities | Sector Risk | Utilities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair Value | $ 3,109.2 | $ 3,088.8 | $ 2,466.4 |
Concentration risk percentage | 13.00% | 12.90% | 11.30% |
Corporate securities | Sector Risk | Financial | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair Value | $ 2,864.5 | $ 2,826.1 | $ 2,281.5 |
Concentration risk percentage | 12.00% | 11.80% | 10.50% |
Corporate securities | Sector Risk | Consumer staples | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair Value | $ 2,713.2 | $ 2,704 | $ 2,785.5 |
Concentration risk percentage | 11.30% | 11.30% | 12.80% |
Corporate securities | Sector Risk | Health care | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair Value | $ 2,510.5 | $ 2,635.5 | $ 2,832.6 |
Concentration risk percentage | 10.50% | 11.00% | 13.00% |
Corporate securities | Sector Risk | Other | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fair Value | $ 4,898.1 | $ 4,851.2 | $ 4,387.3 |
Concentration risk percentage | 20.40% | 20.30% | 20.10% |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | 11 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investment [Line Items] | ||||
Fair Value | $ 29,029.4 | $ 31,037 | $ 29,029.4 | |
Cost or Amortized Cost | 28,740.2 | 30,210.6 | 28,740.2 | |
Investments in limited partnerships | $ 150 | 214.7 | 173 | 214.7 |
Impairment caused by decrease in expected tax benefit | 18.4 | |||
Corporate securities | ||||
Investment [Line Items] | ||||
Fair Value | $ 23,934.4 | $ 21,769 | $ 23,932.2 | $ 21,769 |
Concentration risk percentage | 100.00% | 100.00% | 100.00% | |
Fixed maturities | ||||
Investment [Line Items] | ||||
Concentration risk percentage | 100.00% | 100.00% | ||
Public utilities | Corporate securities | ||||
Investment [Line Items] | ||||
Fair Value | $ 3,088.8 | |||
Cost or Amortized Cost | 2,981.4 | |||
Redeemable preferred stock | Corporate securities | ||||
Investment [Line Items] | ||||
Fair Value | 69.5 | |||
Cost or Amortized Cost | 66.1 | |||
Foreign Government Investments | Other debt obligations | ||||
Investment [Line Items] | ||||
Fair Value | 101.4 | |||
Cost or Amortized Cost | 100.3 | |||
Tax Credit Investments | ||||
Investment [Line Items] | ||||
Investments in limited partnerships | $ 150 | $ 195.2 | 173 | $ 195.2 |
Low-Income Housing Project Investments | Tax Credit Investments | ||||
Investment [Line Items] | ||||
Investments in limited partnerships | 143.7 | 186 | 165.8 | 186 |
Below Investment Grade | Fixed maturities | ||||
Investment [Line Items] | ||||
Fair Value | 978.9 | 1,295.7 | 1,111.4 | 1,295.7 |
Cost or Amortized Cost | $ 953.2 | $ 1,220.8 | $ 1,029.6 | $ 1,220.8 |
Concentration risk percentage | 3.20% | 3.70% | 4.60% |
Investments - Additional Info_2
Investments - Additional Information About Marketable Equity Securities (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | |||
Marketable equity securities, amortized cost | $ 611.4 | $ 642.7 | |
Marketable equity securities, at fair value | $ 708.6 | 755.7 | $ 717.4 |
Banks, trusts, and insurance companies | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Marketable equity securities, amortized cost | 431.9 | ||
Marketable equity securities, at fair value | 550 | ||
Industrial, miscellaneous, and all other | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Marketable equity securities, amortized cost | 146.6 | ||
Marketable equity securities, at fair value | 173.1 | ||
Nonredeemable preferred stock | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Marketable equity securities, amortized cost | 32.9 | ||
Marketable equity securities, at fair value | $ 32.6 |
Investments - Gross Unrealized
Investments - Gross Unrealized Losses on Securities in Continuous Loss Position (Details) $ in Millions | Jun. 30, 2018USD ($)securities | Dec. 31, 2017USD ($)securities | Dec. 31, 2016USD ($)securities |
Schedule of Available-for-sale Securities [Line Items] | |||
Less Than 12 Months, Fair Value | $ 6,639.5 | $ 12,989.9 | |
Less Than 12 Months, Gross Unrealized Losses | $ (52.3) | $ (247.2) | |
Less Than 12 Months, Number of Securities | securities | 834 | 1,337 | |
12 Months or More, Fair Value | $ 3,354 | $ 0 | |
12 Months or More, Gross Unrealized Losses | $ (84.8) | $ 0 | |
12 Months or More, Number of Securities | securities | 540 | 0 | |
U.S. government and agencies | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less Than 12 Months, Fair Value | $ 33.5 | $ 111.2 | $ 273.4 |
Less Than 12 Months, Gross Unrealized Losses | $ (1) | $ (0.3) | $ (5.6) |
Less Than 12 Months, Number of Securities | securities | 8 | 4 | 41 |
12 Months or More, Fair Value | $ 189.1 | $ 206.2 | $ 0 |
12 Months or More, Gross Unrealized Losses | $ (7.5) | $ (4.6) | $ 0 |
12 Months or More, Number of Securities | securities | 30 | 30 | 0 |
State and political subdivisions | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less Than 12 Months, Fair Value | $ 510.4 | $ 311.8 | $ 758.8 |
Less Than 12 Months, Gross Unrealized Losses | $ (9.6) | $ (2.8) | $ (13.5) |
Less Than 12 Months, Number of Securities | securities | 74 | 48 | 118 |
12 Months or More, Fair Value | $ 165.5 | $ 169.7 | $ 0 |
12 Months or More, Gross Unrealized Losses | $ (6.7) | $ (4.1) | $ 0 |
12 Months or More, Number of Securities | securities | 38 | 36 | 0 |
Corporate securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less Than 12 Months, Fair Value | $ 16,297.7 | $ 4,963.8 | $ 8,282.2 |
Less Than 12 Months, Gross Unrealized Losses | $ (437.2) | $ (34.3) | $ (151.7) |
Less Than 12 Months, Number of Securities | securities | 1,126 | 396 | 546 |
12 Months or More, Fair Value | $ 1,304.2 | $ 1,257.7 | $ 0 |
12 Months or More, Gross Unrealized Losses | $ (72.2) | $ (26.2) | $ 0 |
12 Months or More, Number of Securities | securities | 110 | 82 | 0 |
Residential mortgage-backed securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less Than 12 Months, Fair Value | $ 797.9 | $ 693.4 | $ 2,358.1 |
Less Than 12 Months, Gross Unrealized Losses | $ (24.3) | $ (7.7) | $ (52.2) |
Less Than 12 Months, Number of Securities | securities | 186 | 176 | 467 |
12 Months or More, Fair Value | $ 1,476.3 | $ 1,509.9 | $ 0 |
12 Months or More, Gross Unrealized Losses | $ (74.3) | $ (42.1) | $ 0 |
12 Months or More, Number of Securities | securities | 392 | 351 | 0 |
Commercial mortgage-backed securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less Than 12 Months, Fair Value | $ 591.8 | $ 296.5 | $ 449.6 |
Less Than 12 Months, Gross Unrealized Losses | $ (11.4) | $ (1.4) | $ (6.4) |
Less Than 12 Months, Number of Securities | securities | 50 | 24 | 54 |
12 Months or More, Fair Value | $ 51.3 | $ 60.5 | $ 0 |
12 Months or More, Gross Unrealized Losses | $ (2.6) | $ (1.7) | $ 0 |
12 Months or More, Number of Securities | securities | 18 | 19 | 0 |
Collateralized loan obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less Than 12 Months, Fair Value | $ 477.9 | $ 10 | $ 384.2 |
Less Than 12 Months, Gross Unrealized Losses | $ (2.7) | $ 0 | $ (3.8) |
Less Than 12 Months, Number of Securities | securities | 31 | 1 | 27 |
12 Months or More, Fair Value | $ 0 | $ 0 | $ 0 |
12 Months or More, Gross Unrealized Losses | $ 0 | $ 0 | $ 0 |
12 Months or More, Number of Securities | securities | 0 | 0 | 0 |
Other debt obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less Than 12 Months, Fair Value | $ 412.6 | $ 218 | $ 388.6 |
Less Than 12 Months, Gross Unrealized Losses | $ (10) | $ (2.5) | $ (6.8) |
Less Than 12 Months, Number of Securities | securities | 49 | 32 | 48 |
12 Months or More, Fair Value | $ 88.1 | $ 109.3 | $ 0 |
12 Months or More, Gross Unrealized Losses | $ (3.9) | $ (3) | $ 0 |
12 Months or More, Number of Securities | securities | 12 | 13 | 0 |
Total fixed maturities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less Than 12 Months, Fair Value | $ 19,121.8 | $ 6,604.7 | $ 12,894.9 |
Less Than 12 Months, Gross Unrealized Losses | $ (496.2) | $ (49) | $ (240) |
Less Than 12 Months, Number of Securities | securities | 1,524 | 681 | 1,301 |
12 Months or More, Fair Value | $ 3,274.5 | $ 3,313.3 | $ 0 |
12 Months or More, Gross Unrealized Losses | $ (167.2) | $ (81.7) | $ 0 |
12 Months or More, Number of Securities | securities | 600 | 531 | 0 |
Marketable equity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less Than 12 Months, Fair Value | $ 34.8 | $ 95 | |
Less Than 12 Months, Gross Unrealized Losses | $ (3.3) | $ (7.2) | |
Less Than 12 Months, Number of Securities | securities | 153 | 36 | |
12 Months or More, Fair Value | $ 40.7 | $ 0 | |
12 Months or More, Gross Unrealized Losses | $ (3.1) | $ 0 | |
12 Months or More, Number of Securities | securities | 9 | 0 |
Investments - Fixed Maturity Am
Investments - Fixed Maturity Amortized Cost and Fair Value, by Contractual Maturity (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Amortized Cost | |||
One year or less | $ 1,320.1 | $ 896 | |
Over one year through five years | 8,186.3 | 8,179 | |
Over five years through ten years | 10,273.7 | 10,136.9 | |
Over ten years | 5,547.6 | 5,333.4 | |
Total fixed maturities with contractual maturity dates | 25,327.7 | 24,545.3 | |
Total fixed maturities, amortized cost | 30,486.7 | 29,599.2 | $ 28,097.5 |
Fair Value | |||
One year or less | 1,317.4 | 895.9 | |
Over one year through five years | 8,112.6 | 8,275.6 | |
Over five years through ten years | 10,067.8 | 10,346.4 | |
Over ten years | 5,575.5 | 5,730.3 | |
Total fixed maturities with contractual maturity dates | 25,073.3 | 25,248.2 | |
Fixed maturities, at fair value | 30,124.5 | 30,281.3 | 28,312 |
Residential mortgage-backed securities | |||
Amortized Cost | |||
Total fixed maturities, amortized cost | 2,520.1 | 2,516 | 2,633.1 |
Fair Value | |||
Fixed maturities, at fair value | 2,426.2 | 2,472.8 | 2,584.6 |
Commercial mortgage-backed securities | |||
Amortized Cost | |||
Total fixed maturities, amortized cost | 769.1 | 795 | 920.5 |
Fair Value | |||
Fixed maturities, at fair value | 755.6 | 795.7 | 916.8 |
Collateralized loan obligations | |||
Amortized Cost | |||
Total fixed maturities, amortized cost | 1,099.4 | 1,128.1 | 1,198.7 |
Fair Value | |||
Fixed maturities, at fair value | 1,105.5 | 1,146.6 | $ 1,213.6 |
Other asset-backed securities | |||
Amortized Cost | |||
Total fixed maturities, amortized cost | 770.4 | 614.8 | |
Fair Value | |||
Fixed maturities, at fair value | $ 763.9 | $ 618 |
Investments - Summary of Net In
Investments - Summary of Net Investment Income (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 11 Months Ended | 12 Months Ended | ||
Jan. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2015 | |
Net Investment Income [Line Items] | ||||||
Total investment income | $ 692.8 | $ 659.7 | $ 1,136.9 | $ 1,323.5 | ||
Investment expenses | (21.5) | (19.1) | (35.6) | (39.4) | ||
Net investment income | 671.3 | 640.6 | 1,101.3 | 1,284.1 | ||
Predecessor Company | ||||||
Net Investment Income [Line Items] | ||||||
Total investment income | $ 113 | $ 1,376.8 | ||||
Investment expenses | (3.3) | (37.4) | ||||
Net investment income | 109.7 | 1,339.4 | ||||
Fixed maturities | ||||||
Net Investment Income [Line Items] | ||||||
Total investment income | 545.7 | 529.7 | 915.3 | 1,055.8 | ||
Fixed maturities | Predecessor Company | ||||||
Net Investment Income [Line Items] | ||||||
Total investment income | 95.5 | 1,151.3 | ||||
Marketable equity securities | ||||||
Net Investment Income [Line Items] | ||||||
Total investment income | 8.5 | 8.1 | 19.4 | 17.9 | ||
Marketable equity securities | Predecessor Company | ||||||
Net Investment Income [Line Items] | ||||||
Total investment income | 0.3 | 18.1 | ||||
Mortgage loans | ||||||
Net Investment Income [Line Items] | ||||||
Total investment income | 132.6 | 117.4 | 195.1 | 239.9 | ||
Mortgage loans | Predecessor Company | ||||||
Net Investment Income [Line Items] | ||||||
Total investment income | 21.3 | 247.6 | ||||
Other | ||||||
Net Investment Income [Line Items] | ||||||
Total investment income | $ 6 | $ 4.5 | $ 7.1 | $ 9.9 | ||
Other | Predecessor Company | ||||||
Net Investment Income [Line Items] | ||||||
Total investment income | $ (4.1) | $ (40.2) |
Investments - Summary of Net Re
Investments - Summary of Net Realized Gains (Losses) (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 11 Months Ended | 12 Months Ended | ||
Jan. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2015 | |
Gain (Loss) on Investments [Line Items] | ||||||
Net impairment losses | $ (3) | $ (2) | $ (10.7) | $ (6.4) | ||
Tax credit investments | (23.7) | (16.8) | (47.1) | (54.9) | ||
Net gains (losses) - FIA | 14.1 | 0 | 0.7 | 48.1 | ||
DAC and VOBA adjustment | (7.2) | (1.1) | 3.7 | (16.6) | ||
Other | (27.7) | (15.4) | (53.8) | (7.6) | ||
Marketable equity securities, trading | 0 | 0 | ||||
Net realized gains (losses) | (58.8) | (4.3) | (110.3) | 1.9 | ||
Predecessor Company | ||||||
Gain (Loss) on Investments [Line Items] | ||||||
Net impairment losses | $ (3.8) | $ (38.6) | ||||
Tax credit investments | (0.6) | (40.9) | ||||
Net gains (losses) - FIA | (4.2) | (16.1) | ||||
DAC and VOBA adjustment | (0.5) | 7.2 | ||||
Other | 3.5 | (13) | ||||
Marketable equity securities, trading | (22.5) | 10 | ||||
Net realized gains (losses) | (26.9) | (93.1) | ||||
Change in fair value of trading securities gains (losses) | (22.7) | 4 | ||||
Fixed maturities | ||||||
Gain (Loss) on Investments [Line Items] | ||||||
Gross gains on sales | 5.1 | 11.2 | 20.7 | 23.1 | ||
Gross losses on sales | (10.6) | (4.6) | (24.3) | (10.4) | ||
Net impairment losses | (3) | (2) | (10.7) | (6.4) | ||
Fixed maturities | Predecessor Company | ||||||
Gain (Loss) on Investments [Line Items] | ||||||
Gross gains on sales | 2.4 | 13.2 | ||||
Gross losses on sales | (1.2) | (22.2) | ||||
Net impairment losses | (3.8) | (38.6) | ||||
Marketable equity securities | ||||||
Gain (Loss) on Investments [Line Items] | ||||||
Gross gains on sales | 3.6 | 4.7 | 29.9 | |||
Gross losses on sales | $ (4.2) | $ (3.3) | ||||
Marketable equity securities | $ (5.8) | $ 24.4 | ||||
Marketable equity securities | Predecessor Company | ||||||
Gain (Loss) on Investments [Line Items] | ||||||
Gross gains on sales | 0 | 10.4 | ||||
Gross losses on sales | $ 0 | $ (3.1) |
Investments - Largest Write-dow
Investments - Largest Write-downs on Marketable Securities by Sector (Details) - Fixed maturities - USD ($) $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2015 | |
Investment [Line Items] | ||||
Net impairment losses recognized in earnings | $ 10.7 | $ 6.4 | ||
Concentration risk percentage | 100.00% | 100.00% | ||
Sector Risk | U.S. Federal Government | ||||
Investment [Line Items] | ||||
Net impairment losses recognized in earnings | $ 3.7 | $ 3.1 | ||
Concentration risk percentage | 34.60% | 48.40% | ||
Sector Risk | Telecommunication services | ||||
Investment [Line Items] | ||||
Net impairment losses recognized in earnings | $ 0 | $ 2.6 | ||
Concentration risk percentage | 0.00% | 40.60% | ||
Sector Risk | Health care | ||||
Investment [Line Items] | ||||
Net impairment losses recognized in earnings | $ 1.6 | $ 0.5 | ||
Concentration risk percentage | 15.00% | 7.80% | ||
Sector Risk | Financials | ||||
Investment [Line Items] | ||||
Net impairment losses recognized in earnings | $ 4.2 | $ 0.1 | ||
Concentration risk percentage | 39.30% | 1.60% | ||
Sector Risk | Energy | ||||
Investment [Line Items] | ||||
Net impairment losses recognized in earnings | $ 0.4 | $ 0 | ||
Concentration risk percentage | 3.70% | 0.00% | ||
Sector Risk | Other | ||||
Investment [Line Items] | ||||
Net impairment losses recognized in earnings | $ 0.8 | $ 0.1 | ||
Concentration risk percentage | 7.40% | 1.60% | ||
Predecessor Company | ||||
Investment [Line Items] | ||||
Net impairment losses recognized in earnings | $ 3.8 | $ 38.6 | ||
Concentration risk percentage | 100.00% | 100.00% | ||
Predecessor Company | Sector Risk | U.S. Federal Government | ||||
Investment [Line Items] | ||||
Net impairment losses recognized in earnings | $ 0 | $ 1.6 | ||
Concentration risk percentage | 0.00% | 4.10% | ||
Predecessor Company | Sector Risk | Telecommunication services | ||||
Investment [Line Items] | ||||
Net impairment losses recognized in earnings | $ 0 | $ 0 | ||
Concentration risk percentage | 0.00% | 0.00% | ||
Predecessor Company | Sector Risk | Health care | ||||
Investment [Line Items] | ||||
Net impairment losses recognized in earnings | $ 0 | $ 0 | ||
Concentration risk percentage | 0.00% | 0.00% | ||
Predecessor Company | Sector Risk | Financials | ||||
Investment [Line Items] | ||||
Net impairment losses recognized in earnings | $ 0 | $ 1.8 | ||
Concentration risk percentage | 0.00% | 4.70% | ||
Predecessor Company | Sector Risk | Energy | ||||
Investment [Line Items] | ||||
Net impairment losses recognized in earnings | $ 3.8 | $ 30.5 | ||
Concentration risk percentage | 100.00% | 79.00% | ||
Predecessor Company | Sector Risk | Other | ||||
Investment [Line Items] | ||||
Net impairment losses recognized in earnings | $ 0 | $ 4.7 | ||
Concentration risk percentage | 0.00% | 12.20% |
Investments - Underwater Availa
Investments - Underwater Available-for-sale Fixed Maturities (Details) - Fixed maturities $ in Millions | Jun. 30, 2018USD ($)securities | Dec. 31, 2017USD ($)securities | Dec. 31, 2016USD ($)securities |
Investment [Line Items] | |||
Fair Value | $ 22,396.3 | $ 9,918 | $ 12,894.9 |
Gross Unrealized Losses | $ (663.4) | $ (130.7) | $ (240) |
Number of Securities | securities | 2,114 | 1,212 | 1,301 |
Less than 6 consecutive months | |||
Investment [Line Items] | |||
Fair Value | $ 3.6 | $ 5.2 | $ 1.9 |
Gross Unrealized Losses | $ (1.1) | $ (1.7) | $ (0.6) |
Number of Securities | securities | 6 | 6 | 2 |
6 consecutive months or more | |||
Investment [Line Items] | |||
Fair Value | $ 1.7 | $ 0.9 | $ 0.1 |
Gross Unrealized Losses | $ (0.9) | $ (0.8) | $ (0.3) |
Number of Securities | securities | 5 | 3 | 5 |
Total underwater by 20% or more | |||
Investment [Line Items] | |||
Fair Value | $ 5.3 | $ 6.1 | $ 2 |
Gross Unrealized Losses | $ (2) | $ (2.5) | $ (0.9) |
Number of Securities | securities | 11 | 9 | 7 |
All other underwater fixed maturities | |||
Investment [Line Items] | |||
Fair Value | $ 22,391 | $ 9,911.9 | $ 12,892.9 |
Gross Unrealized Losses | $ (661.4) | $ (128.2) | $ (239.1) |
Number of Securities | securities | 2,103 | 1,203 | 1,294 |
Investments - Changes in Credit
Investments - Changes in Credit-related OTTI Recognized (Details) - Marketable equity securities - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 11 Months Ended | 12 Months Ended | ||
Jan. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2015 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||||
Balance, beginning of period | $ 3.8 | $ 4.4 | $ 0 | $ 4.4 | ||
Increases recognized in the current period, for which an OTTI was not previously recognized | 0.6 | 0 | 4.1 | 0.2 | ||
Increases recognized in the current period, for which an OTTI was previously recognized | 0.9 | 0 | ||||
Decreases attributable to securities sold or paid down during the period | (0.5) | (0.6) | (0.6) | (0.8) | ||
Decreases attributable to previously recognized credit losses on securities impaired during the period due to a change in intent to sell | 0 | 0 | ||||
Balance, end of period | $ 0 | $ 3.9 | $ 3.8 | 4.4 | $ 3.8 | |
Predecessor Company | ||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||||
Balance, beginning of period | 27.7 | $ 27.3 | $ 20.1 | |||
Increases recognized in the current period, for which an OTTI was not previously recognized | 0 | 8.3 | ||||
Increases recognized in the current period, for which an OTTI was previously recognized | 0 | 7.8 | ||||
Decreases attributable to securities sold or paid down during the period | (0.4) | (7.4) | ||||
Decreases attributable to previously recognized credit losses on securities impaired during the period due to a change in intent to sell | 0 | (1.1) | ||||
Balance, end of period | $ 27.3 | $ 27.7 |
Investments - Impact of Housing
Investments - Impact of Housing Investments on Net Income (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 11 Months Ended | 12 Months Ended | ||
Jan. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2015 | |
Investment [Line Items] | ||||||
Tax benefits | $ 4.9 | $ 3.8 | $ 70.5 | $ 145.4 | ||
Predecessor Company | ||||||
Investment [Line Items] | ||||||
Tax benefits | $ 8.9 | $ 30.3 | ||||
Low-Income Housing Project Investments | ||||||
Investment [Line Items] | ||||||
Pass through activity | (13.1) | (13.4) | (24) | (27.4) | ||
Write downs | (10.3) | (2) | (1) | (25.6) | ||
Tax benefits | 4.9 | 5.4 | 8.8 | 18.6 | ||
Tax credits, net | 20.2 | 15.9 | 35.5 | 34.7 | ||
Impact to net income | $ 1.7 | $ 5.9 | $ 19.3 | $ 0.3 | ||
Low-Income Housing Project Investments | Predecessor Company | ||||||
Investment [Line Items] | ||||||
Pass through activity | (2.1) | (30.6) | ||||
Write downs | (0.5) | (8.3) | ||||
Tax benefits | 0.9 | 13.6 | ||||
Tax credits, net | 3.1 | 45.2 | ||||
Impact to net income | $ 1.4 | $ 19.9 |
Mortgage Loans - Additional Inf
Mortgage Loans - Additional Information (Details) - Commercial Real Estate Portfolio Segment | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Mortgage Loans on Real Estate [Line Items] | |||
Concentration risk percentage | 100.00% | 100.00% | 100.00% |
First Mortgage Lien | |||
Mortgage Loans on Real Estate [Line Items] | |||
Unamortized premium balance | $ 153,400,000 | $ 177,100,000 | $ 228,400,000 |
Non-performing loans | $ 0 | $ 0 | $ 0 |
California | Geographic Concentration Risk | First Mortgage Lien | |||
Mortgage Loans on Real Estate [Line Items] | |||
Concentration risk percentage | 26.70% | 27.00% | |
Texas | Geographic Concentration Risk | First Mortgage Lien | |||
Mortgage Loans on Real Estate [Line Items] | |||
Concentration risk percentage | 11.50% | 10.90% | |
Washington | Geographic Concentration Risk | First Mortgage Lien | |||
Mortgage Loans on Real Estate [Line Items] | |||
Concentration risk percentage | 6.50% | 6.70% | |
Los Angeles | Geographic Concentration Risk | First Mortgage Lien | |||
Mortgage Loans on Real Estate [Line Items] | |||
Concentration risk percentage | 42.00% | 42.70% | |
Lower risk | |||
Mortgage Loans on Real Estate [Line Items] | |||
Concentration risk percentage | 68.50% | 69.80% | 70.30% |
Lower risk | First Mortgage Lien | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loan to value ratio | 65.00% | 65.00% | |
Debt service coverage ratio, greater or less than | 1.50 | 1.50 | |
Medium risk | |||
Mortgage Loans on Real Estate [Line Items] | |||
Concentration risk percentage | 20.70% | 22.80% | 24.20% |
Medium risk | First Mortgage Lien | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loan to value ratio | 65.00% | 65.00% | |
Debt service coverage ratio, greater or less than | 1.50 | 1.50 | |
Medium risk | First Mortgage Lien | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loan to value ratio | 65.00% | 65.00% | |
Medium risk | First Mortgage Lien | Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loan to value ratio | 80.00% | 80.00% | |
Higher risk | |||
Mortgage Loans on Real Estate [Line Items] | |||
Concentration risk percentage | 10.80% | 7.40% | 5.50% |
Higher risk | First Mortgage Lien | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loan to value ratio | 80.00% | 80.00% | |
Debt service coverage ratio, greater or less than | 1.50 | 1.50 | |
Higher risk | First Mortgage Lien | Minimum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loan to value ratio | 65.00% | 65.00% | |
Higher risk | First Mortgage Lien | Maximum | |||
Mortgage Loans on Real Estate [Line Items] | |||
Loan to value ratio | 80.00% | 80.00% |
Mortgage Loans - Mortgage Loans
Mortgage Loans - Mortgage Loans by Risk (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Concentration Risk [Line Items] | |||
Loans specifically evaluated for impairment | $ 0 | $ 4,800,000 | $ 0 |
Other | 2,300,000 | 2,000,000 | 500,000 |
Mortgage loans, net | 6,285,000,000 | 6,241,200,000 | 5,692,200,000 |
Reserve amounts held for loans evaluated for impairment | $ 0 | $ 0 | $ 0 |
Commercial Real Estate Portfolio Segment | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 100.00% | 100.00% | 100.00% |
Mortgage loans | $ 2,455,300,000 | $ 2,130,000,000 | $ 1,081,500,000 |
Commercial Real Estate Portfolio Segment | Lower risk | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 68.50% | 69.80% | 70.30% |
Mortgage loans | $ 1,681,800,000 | $ 1,486,100,000 | $ 760,400,000 |
Commercial Real Estate Portfolio Segment | Medium risk | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 20.70% | 22.80% | 24.20% |
Mortgage loans | $ 507,800,000 | $ 486,300,000 | $ 261,900,000 |
Commercial Real Estate Portfolio Segment | Higher risk | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.80% | 7.40% | 5.50% |
Mortgage loans | $ 265,700,000 | $ 157,600,000 | $ 59,200,000 |
Purchase GAAP Accounting Loan | Commercial Real Estate Portfolio Segment | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 100.00% | 100.00% | 100.00% |
Mortgage loans | $ 3,827,400,000 | $ 4,104,400,000 | $ 4,610,200,000 |
Purchase GAAP Accounting Loan | Commercial Real Estate Portfolio Segment | Lower risk | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 71.70% | 70.70% | 67.20% |
Mortgage loans | $ 2,746,000,000 | $ 2,899,200,000 | $ 3,097,600,000 |
Purchase GAAP Accounting Loan | Commercial Real Estate Portfolio Segment | Medium risk | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 21.10% | 21.80% | 23.20% |
Mortgage loans | $ 806,900,000 | $ 896,800,000 | $ 1,071,300,000 |
Purchase GAAP Accounting Loan | Commercial Real Estate Portfolio Segment | Higher risk | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 7.20% | 7.50% | 9.60% |
Mortgage loans | $ 274,500,000 | $ 308,400,000 | $ 441,300,000 |
Mortgage Loans - Allowance for
Mortgage Loans - Allowance for Mortgage Loan Losses (Details) - First Mortgage Lien - Commercial Real Estate Portfolio Segment - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 11 Months Ended | 12 Months Ended | ||
Jan. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2015 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Allowance at beginning of period | $ 1 | $ 0.7 | $ 0 | $ 0.7 | ||
Provision for loans not specifically identified | 0.5 | 0 | 0.7 | 0.3 | ||
Allowance at end of period | $ 0 | $ 1.5 | $ 0.7 | 0.7 | $ 1 | |
Predecessor Company | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Allowance at beginning of period | 8.1 | $ 8.1 | $ 8.1 | |||
Provision for loans not specifically identified | 0 | 0 | ||||
Allowance at end of period | $ 8.1 | $ 8.1 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | |||
Notional Amount | $ 9,634.7 | $ 8,372.6 | $ 7,087.6 |
Derivatives, at fair value | 339.1 | 307.4 | |
Fair Value, derivative asset | 294.8 | 339.1 | 307.4 |
Fair Value, derivative liability | 865.5 | 806 | 573.7 |
Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 1,706.3 | 1,654.3 | 1,420.9 |
Fair Value, derivative asset | 86.9 | 77 | 145.2 |
Fair Value, derivative liability | 6.6 | 7 | 16.3 |
Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 7,928.4 | 6,718.3 | 5,666.7 |
Fair Value, derivative asset | 207.9 | 262.1 | 162.2 |
Fair Value, derivative liability | 858.9 | 799 | 557.4 |
Interest rate swaps | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 942.2 | 968.1 | 719.8 |
Fair Value, derivative asset | 0.3 | 1.5 | 3.3 |
Fair Value, derivative liability | 1.2 | 1.4 | 16.3 |
Foreign currency swaps | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 764.1 | 686.2 | 701.1 |
Fair Value, derivative asset | 86.6 | 75.5 | 141.9 |
Fair Value, derivative liability | 5.4 | 5.6 | 0 |
Index options | Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 7,384 | 6,696.1 | 5,116.4 |
Fair Value, derivative asset | 207.2 | 261.9 | 161.7 |
Fair Value, derivative liability | 0.4 | 1.5 | 1.7 |
Total return swaps | Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 500 | 0 | 384 |
Fair Value, derivative asset | 0.6 | 0 | 0 |
Fair Value, derivative liability | 0 | 0 | 22.8 |
Embedded derivatives | Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 0 | 0 |
Fair Value, derivative asset | 0 | 0 | 0 |
Fair Value, derivative liability | 857.8 | 797.5 | 532.4 |
Other derivatives | Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 44.4 | 22.2 | 166.3 |
Fair Value, derivative asset | 0.1 | 0.2 | 0.5 |
Fair Value, derivative liability | $ 0.7 | $ 0 | $ 0.5 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | 11 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Initial margin, centrally-cleared derivatives | $ 21 | $ 30 | $ 33.5 | |
Net gains expected to be reclassified from AOCI into net income in next 12 months | $ 2.6 | $ 3.4 | ||
Maximum term exposure is hedged | 22 years | 23 years | ||
Gain on Cash Flow Hedge Ineffectiveness | $ 1.6 | |||
Loss on Cash Flow Hedge Ineffectiveness | $ (0.1) | $ (3.8) | $ (1.9) |
Derivative Instruments - Potent
Derivative Instruments - Potential Effect of Netting Arrangements, Assets (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Offsetting Assets [Line Items] | |||
Fair Value Presented in the Balance Sheets | $ 294.8 | $ 339.1 | $ 307.4 |
Financial Instruments | (7.7) | (8.5) | (41.3) |
Cash Collateral Received | (286.5) | (327.6) | (264.9) |
Net Amount | 0.6 | 3 | 1.2 |
A | |||
Offsetting Assets [Line Items] | |||
Fair Value Presented in the Balance Sheets | 31.8 | 46.1 | 25.9 |
Financial Instruments | (4.2) | (4.2) | (14.9) |
Cash Collateral Received | (27.6) | (41.9) | (10.5) |
Net Amount | 0 | 0 | 0.5 |
B | |||
Offsetting Assets [Line Items] | |||
Fair Value Presented in the Balance Sheets | 56.4 | 63.6 | 95.2 |
Financial Instruments | (1.9) | (1.4) | (17.2) |
Cash Collateral Received | (54.5) | (62.2) | (78) |
Net Amount | 0 | 0 | 0 |
C | |||
Offsetting Assets [Line Items] | |||
Fair Value Presented in the Balance Sheets | 14.7 | 13.2 | 25.6 |
Financial Instruments | 0 | 0 | 0 |
Cash Collateral Received | (14.7) | (13.2) | (25.6) |
Net Amount | 0 | 0 | 0 |
E | |||
Offsetting Assets [Line Items] | |||
Fair Value Presented in the Balance Sheets | 19.5 | 21.3 | 25.1 |
Financial Instruments | 0 | 0 | 0 |
Cash Collateral Received | (19.5) | (21.3) | (25.1) |
Net Amount | 0 | 0 | 0 |
F | |||
Offsetting Assets [Line Items] | |||
Fair Value Presented in the Balance Sheets | 26 | 31.6 | |
Financial Instruments | 0 | (1.3) | |
Cash Collateral Received | (26) | (29) | |
Net Amount | 0 | 1.3 | |
G | |||
Offsetting Assets [Line Items] | |||
Fair Value Presented in the Balance Sheets | 48.9 | 30.2 | 30.4 |
Financial Instruments | 0 | 0 | (0.7) |
Cash Collateral Received | (48.9) | (30.2) | (29.7) |
Net Amount | 0 | 0 | 0 |
H | |||
Offsetting Assets [Line Items] | |||
Fair Value Presented in the Balance Sheets | 24.7 | 51.9 | 18.3 |
Financial Instruments | (0.7) | (1) | 0 |
Cash Collateral Received | (24) | (50.9) | (18.3) |
Net Amount | 0 | 0 | 0 |
I | |||
Offsetting Assets [Line Items] | |||
Fair Value Presented in the Balance Sheets | 33.8 | 34.6 | 32.9 |
Financial Instruments | 0 | 0 | (8) |
Cash Collateral Received | (33.8) | (32.9) | (24.9) |
Net Amount | 0 | 1.7 | 0 |
J | |||
Offsetting Assets [Line Items] | |||
Fair Value Presented in the Balance Sheets | 25.4 | 42.7 | 32.5 |
Financial Instruments | 0 | 0 | 0 |
Cash Collateral Received | (25.1) | (42.7) | (32.5) |
Net Amount | 0.3 | 0 | 0 |
Other | |||
Offsetting Assets [Line Items] | |||
Fair Value Presented in the Balance Sheets | 13.6 | 3.9 | 21.5 |
Financial Instruments | (0.9) | (0.6) | (0.5) |
Cash Collateral Received | (12.4) | (3.3) | (20.3) |
Net Amount | $ 0.3 | $ 0 | $ 0.7 |
Derivative Instruments - Pote_2
Derivative Instruments - Potential Effect of Netting Arrangements, Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Offsetting Liabilities [Line Items] | |||
Fair Value Presented in the Balance Sheets | $ 7.7 | $ 8.5 | $ 41.3 |
Financial Instruments | (7.7) | (8.5) | (41.3) |
Cash Collateral Posted | 0 | 0 | 0 |
Net Amount | 0 | 0 | 0 |
Fair Value, derivative liability | 865.5 | 806 | 573.7 |
A | |||
Offsetting Liabilities [Line Items] | |||
Fair Value Presented in the Balance Sheets | 4.2 | 4.2 | 14.9 |
Financial Instruments | (4.2) | (4.2) | (14.9) |
Cash Collateral Posted | 0 | 0 | 0 |
Net Amount | 0 | 0 | 0 |
B | |||
Offsetting Liabilities [Line Items] | |||
Fair Value Presented in the Balance Sheets | 1.9 | 1.4 | 17.2 |
Financial Instruments | (1.9) | (1.4) | (17.2) |
Cash Collateral Posted | 0 | 0 | 0 |
Net Amount | 0 | 0 | 0 |
F | |||
Offsetting Liabilities [Line Items] | |||
Fair Value Presented in the Balance Sheets | 1.3 | ||
Financial Instruments | (1.3) | ||
Cash Collateral Posted | 0 | ||
Net Amount | 0 | ||
H | |||
Offsetting Liabilities [Line Items] | |||
Fair Value Presented in the Balance Sheets | 0.7 | ||
Financial Instruments | (0.7) | ||
Cash Collateral Posted | 0 | ||
Net Amount | 0 | ||
I | |||
Offsetting Liabilities [Line Items] | |||
Fair Value Presented in the Balance Sheets | 8 | ||
Financial Instruments | (8) | ||
Cash Collateral Posted | 0 | ||
Net Amount | 0 | ||
Other | |||
Offsetting Liabilities [Line Items] | |||
Fair Value Presented in the Balance Sheets | 0.9 | 1.6 | 1.2 |
Financial Instruments | (0.9) | (1.6) | (1.2) |
Cash Collateral Posted | 0 | 0 | 0 |
Net Amount | 0 | 0 | 0 |
Not Designated as Hedging Instrument | |||
Offsetting Liabilities [Line Items] | |||
Fair Value, derivative liability | 858.9 | 799 | 557.4 |
Embedded derivatives | Not Designated as Hedging Instrument | |||
Offsetting Liabilities [Line Items] | |||
Fair Value, derivative liability | $ 857.8 | $ 797.5 | $ 532.4 |
Derivative Instruments - Gain (
Derivative Instruments - Gain (Loss) Recognized in OCI on Derivatives (Details) - Designated as Hedging Instrument - Cash Flow Hedge - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 11 Months Ended | 12 Months Ended | ||
Jan. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Total gain (loss) recognized in OCI | $ (10.4) | $ (22.6) | $ 43.6 | $ (67.5) | ||
Interest rate swaps | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Total gain (loss) recognized in OCI | (24.6) | 5.1 | (18.9) | (2.9) | ||
Foreign currency swaps | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Total gain (loss) recognized in OCI | $ 14.2 | $ (27.7) | $ 62.5 | $ (64.6) | ||
Predecessor Company | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Total gain (loss) recognized in OCI | $ 40.4 | $ 65.1 | ||||
Predecessor Company | Interest rate swaps | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Total gain (loss) recognized in OCI | 11.3 | 2.4 | ||||
Predecessor Company | Foreign currency swaps | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Total gain (loss) recognized in OCI | $ 29.1 | $ 62.7 |
Derivative Instruments - Effect
Derivative Instruments - Effects of Derivatives Not Designated as Hedges (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 11 Months Ended | 12 Months Ended | ||
Jan. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net realized gains (losses) on derivatives recognized in income | $ (5.7) | $ (2.3) | $ (21.1) | $ 52 | ||
Predecessor Company | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net realized gains (losses) on derivatives recognized in income | $ 0 | $ (15.3) | ||||
Index options | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net realized gains (losses) on derivatives recognized in income | (0.8) | 65.4 | 84.3 | 170 | ||
Index options | Predecessor Company | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net realized gains (losses) on derivatives recognized in income | (33.2) | (23.9) | ||||
Embedded derivatives | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net realized gains (losses) on derivatives recognized in income | 14.6 | (65.1) | (84.5) | (118.6) | ||
Embedded derivatives | Predecessor Company | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net realized gains (losses) on derivatives recognized in income | 29.4 | 6.9 | ||||
Total return swaps | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net realized gains (losses) on derivatives recognized in income | (19.5) | (4.3) | (22.8) | (4.3) | ||
Total return swaps | Predecessor Company | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net realized gains (losses) on derivatives recognized in income | 0 | 0 | ||||
Other derivatives | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net realized gains (losses) on derivatives recognized in income | $ 0 | $ 1.7 | $ 1.9 | $ 4.9 | ||
Other derivatives | Predecessor Company | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Net realized gains (losses) on derivatives recognized in income | $ 3.8 | $ 1.7 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Additional Information About Instruments Measured at Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Jan. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | $ 30,124.5 | $ 30,281.3 | $ 28,312 | ||
Marketable equity securities, at fair value | 708.6 | 755.7 | 717.4 | ||
Derivatives, at fair value | 294.8 | 339.1 | 307.4 | ||
Separate account assets | 999.4 | 978.1 | 911.4 | ||
Embedded derivatives | 865.5 | 806 | 573.7 | ||
Mortgage loans | 6,285 | 6,241.2 | 5,692.2 | ||
Investments in limited partnerships | 150 | 173 | 214.7 | ||
Cash and cash equivalents | 435 | 347.5 | $ 387.9 | 326.3 | $ 254 |
Cash and cash equivalents, fair value disclosure | 435 | 347.5 | 326.3 | ||
Funds held under deposit contracts | 36,199.1 | 35,345.9 | 33,393.1 | ||
Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents, fair value disclosure | 435 | 347.5 | 326.3 | ||
Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents, fair value disclosure | 0 | 0 | 0 | ||
Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents, fair value disclosure | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 30,124.5 | 30,281.3 | 28,312 | ||
Marketable equity securities, at fair value | 708.6 | 755.7 | 717.4 | ||
Derivatives, at fair value | 294.8 | 339.1 | 307.3 | ||
Total investments carried at fair value | 31,127.9 | 31,376.1 | 29,336.7 | ||
Separate account assets | 999.4 | 978.1 | 911.4 | ||
Assets, fair value disclosure | 32,127.3 | 32,354.2 | 30,248.1 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 0 | 0 | 0 | ||
Marketable equity securities, at fair value | 676.6 | 722.6 | 684.6 | ||
Derivatives, at fair value | 0 | 0.2 | 0 | ||
Total investments carried at fair value | 676.6 | 722.8 | 684.6 | ||
Separate account assets | 999.4 | 978.1 | 911.4 | ||
Assets, fair value disclosure | 1,676 | 1,700.9 | 1,596 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 29,685.5 | 30,038.9 | 28,246.5 | ||
Marketable equity securities, at fair value | 25.8 | 26.8 | 26.9 | ||
Derivatives, at fair value | 271.2 | 299.4 | 300.3 | ||
Total investments carried at fair value | 29,982.5 | 30,365.1 | 28,573.7 | ||
Separate account assets | 0 | 0 | 0 | ||
Assets, fair value disclosure | 29,982.5 | 30,365.1 | 28,573.7 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 439 | 242.4 | 65.5 | ||
Marketable equity securities, at fair value | 6.2 | 6.3 | 5.9 | ||
Derivatives, at fair value | 23.6 | 39.5 | 7 | ||
Total investments carried at fair value | 468.8 | 288.2 | 78.4 | ||
Separate account assets | 0 | 0 | 0 | ||
Assets, fair value disclosure | 468.8 | 288.2 | 78.4 | ||
US Government Agencies Debt Securities | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 297.3 | 422.2 | 392.1 | ||
US Government Agencies Debt Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 0 | 0 | 0 | ||
US Government Agencies Debt Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 297.3 | 422.2 | 392.1 | ||
US Government Agencies Debt Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 0 | 0 | 0 | ||
US States and Political Subdivisions Debt Securities | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 746.9 | 792.4 | 930.8 | ||
US States and Political Subdivisions Debt Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 0 | 0 | 0 | ||
US States and Political Subdivisions Debt Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 746.9 | 792.4 | 930.8 | ||
US States and Political Subdivisions Debt Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 0 | 0 | 0 | ||
Corporate Debt Securities | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 23,934.4 | 23,932.2 | 21,769 | ||
Corporate Debt Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 0 | 0 | 0 | ||
Corporate Debt Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 23,611.4 | 23,731.4 | 21,712 | ||
Corporate Debt Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 323 | 200.8 | 57 | ||
Residential Mortgage Backed Securities | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 2,426.2 | 2,472.8 | 2,584.6 | ||
Residential Mortgage Backed Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 0 | 0 | 0 | ||
Residential Mortgage Backed Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 2,426.2 | 2,472.8 | 2,584.6 | ||
Residential Mortgage Backed Securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 0 | 0 | 0 | ||
Commercial mortgage-backed securities | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 755.6 | 795.7 | 916.8 | ||
Commercial mortgage-backed securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 0 | 0 | 0 | ||
Commercial mortgage-backed securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 728.7 | 795.6 | 915.9 | ||
Commercial mortgage-backed securities | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 26.9 | 0.1 | 0.9 | ||
Collateralized Debt Obligations | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 1,105.5 | 1,146.6 | 1,213.6 | ||
Collateralized Debt Obligations | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 0 | 0 | 0 | ||
Collateralized Debt Obligations | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 1,056.2 | 1,146.6 | 1,213.6 | ||
Collateralized Debt Obligations | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 49.3 | 0 | 0 | ||
Other Debt Obligations | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 858.6 | 719.4 | 505.1 | ||
Other Debt Obligations | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 0 | 0 | 0 | ||
Other Debt Obligations | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 818.8 | 677.9 | 497.5 | ||
Other Debt Obligations | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 39.8 | 41.5 | 7.6 | ||
Index options | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives, at fair value | 207.2 | 261.9 | 161.7 | ||
Index options | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives, at fair value | 0 | 0 | 0 | ||
Index options | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives, at fair value | 183.6 | 222.4 | 154.7 | ||
Index options | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives, at fair value | 23.6 | 39.5 | 7 | ||
Foreign currency swaps | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives, at fair value | 86.6 | 75.5 | 141.9 | ||
Foreign currency swaps | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives, at fair value | 0 | 0 | 0 | ||
Foreign currency swaps | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives, at fair value | 86.6 | 75.5 | 141.9 | ||
Foreign currency swaps | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives, at fair value | 0 | 0 | 0 | ||
Other derivatives | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives, at fair value | 1 | 1.7 | 3.7 | ||
Other derivatives | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives, at fair value | 0 | 0.2 | 0 | ||
Other derivatives | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives, at fair value | 1 | 1.5 | 3.7 | ||
Other derivatives | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives, at fair value | 0 | 0 | 0 | ||
Embedded derivatives | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Embedded derivatives | 857.8 | 797.5 | 532.4 | ||
Embedded derivatives | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Embedded derivatives | 0 | 0 | 0 | ||
Embedded derivatives | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Embedded derivatives | 0 | 0 | 0 | ||
Embedded derivatives | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Embedded derivatives | 857.8 | 797.5 | 532.4 | ||
Mortgage loans | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mortgage loans | 6,054.8 | 6,180.8 | 5,538.2 | ||
Mortgage loans | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mortgage loans | 0 | 0 | 0 | ||
Mortgage loans | Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mortgage loans | 0 | 0 | 0 | ||
Mortgage loans | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mortgage loans | 6,054.8 | 6,180.8 | 5,538.2 | ||
Tax Credit Investments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investments in limited partnerships | 128.5 | 135.1 | 204 | ||
Tax Credit Investments | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investments in limited partnerships | 0 | 0 | 0 | ||
Tax Credit Investments | Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investments in limited partnerships | 0 | 0 | 0 | ||
Tax Credit Investments | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investments in limited partnerships | 128.5 | 135.1 | 204 | ||
Fund held under deposit contracts: Deferred annuities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Funds held under deposit contracts | 20,029.6 | 19,943.3 | 18,228.6 | ||
Fund held under deposit contracts: Deferred annuities | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Funds held under deposit contracts | 0 | 0 | 0 | ||
Fund held under deposit contracts: Deferred annuities | Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Funds held under deposit contracts | 0 | 0 | 0 | ||
Fund held under deposit contracts: Deferred annuities | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Funds held under deposit contracts | 20,029.6 | 19,943.3 | 18,228.6 | ||
Fund held under deposit contracts: Income annuities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Funds held under deposit contracts | 7,347.3 | 8,080.5 | 7,678.4 | ||
Fund held under deposit contracts: Income annuities | Fair Value, Inputs, Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Funds held under deposit contracts | 0 | 0 | 0 | ||
Fund held under deposit contracts: Income annuities | Fair Value, Inputs, Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Funds held under deposit contracts | 0 | 0 | 0 | ||
Fund held under deposit contracts: Income annuities | Fair Value, Inputs, Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Funds held under deposit contracts | 7,347.3 | 8,080.5 | 7,678.4 | ||
Reported Value Measurement | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 30,124.5 | 30,281.3 | 28,312 | ||
Marketable equity securities, at fair value | 708.6 | 755.7 | 717.4 | ||
Derivatives, at fair value | 294.8 | 339.1 | 307.3 | ||
Total investments carried at fair value | 31,127.9 | 31,376.1 | 29,336.7 | ||
Separate account assets | 999.4 | 978.1 | 911.4 | ||
Assets, fair value disclosure | 32,127.3 | 32,354.2 | 30,248.1 | ||
Reported Value Measurement | US Government Agencies Debt Securities | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 297.3 | 422.2 | 392.1 | ||
Reported Value Measurement | US States and Political Subdivisions Debt Securities | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 746.9 | 792.4 | 930.8 | ||
Reported Value Measurement | Corporate Debt Securities | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 23,934.4 | 23,932.2 | 21,769 | ||
Reported Value Measurement | Residential Mortgage Backed Securities | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 2,426.2 | 2,472.8 | 2,584.6 | ||
Reported Value Measurement | Commercial mortgage-backed securities | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 755.6 | 795.7 | 916.8 | ||
Reported Value Measurement | Collateralized Debt Obligations | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 1,105.5 | 1,146.6 | 1,213.6 | ||
Reported Value Measurement | Other Debt Obligations | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fixed maturities, at fair value | 858.6 | 719.4 | 505.1 | ||
Reported Value Measurement | Index options | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives, at fair value | 207.2 | 261.9 | 161.7 | ||
Reported Value Measurement | Foreign currency swaps | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives, at fair value | 86.6 | 75.5 | 141.9 | ||
Reported Value Measurement | Other derivatives | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives, at fair value | 1 | 1.7 | 3.7 | ||
Reported Value Measurement | Embedded derivatives | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Embedded derivatives | 857.8 | 797.5 | 532.4 | ||
Reported Value Measurement | Mortgage loans | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mortgage loans | 6,285 | 6,241.2 | 5,692.2 | ||
Reported Value Measurement | Tax Credit Investments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investments in limited partnerships | 150 | 173 | 195.2 | ||
Reported Value Measurement | Fund held under deposit contracts: Deferred annuities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Funds held under deposit contracts | 20,810 | 20,128.3 | 18,566.6 | ||
Reported Value Measurement | Fund held under deposit contracts: Income annuities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Funds held under deposit contracts | 7,149.1 | 7,202.5 | 7,336.6 | ||
Reported Value Measurement | Insurance contracts and embedded derivatives | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Funds held under deposit contracts | 8,240 | 8,015.1 | 7,489.9 | ||
Liability | Tax Credit Investments | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Future investment contributions | $ 16.5 | $ 32.8 | $ 16.5 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturity securities, percentage of pricing services | 94.40% | 94.70% | 94.10% |
Decrease to the fair value of embedded derivative | $ 28.9 | $ 15.6 | |
Private Placement | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturity securities | $ 1,509 | $ 1,362.5 | $ 1,539.3 |
Fixed maturity securities, as a percentage | 5.00% | 4.80% | 5.10% |
Private Placement | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturity securities | $ 1,325.9 | $ 1,318.3 | $ 1,234 |
Fixed maturity securities, as a percentage | 87.90% | 96.80% | 80.20% |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Rollforward of Financial Instruments Significant Unobcervable Inputs (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning balance at recurring basis, asset value | $ 288.2 | $ 78.4 | $ 114 | $ 78.4 | |
Asset, purchases | 147.5 | 32.3 | 24 | 111.5 | |
Asset, sales | 0 | 0 | (0.2) | 0 | |
Asset, transfers, net | 85.4 | 28.7 | (43.5) | 86 | |
Other period increase (decrease) | (24.1) | (3.9) | (12.5) | (24.2) | |
Gain (loss) included in earnings | (39.2) | 2.9 | (0.9) | 26 | |
Gain (loss) included in other comprehensive income (loss) | (13.8) | 3.7 | (1.5) | 12.6 | |
Net realized gain (loss) | 24.8 | (2.8) | (1) | (2.1) | |
Ending balance at recurring basis, asset value | $ 114 | 468.8 | 139.3 | 78.4 | 288.2 |
Predecessor Company | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning balance at recurring basis, asset value | 191 | 114 | |||
Asset, purchases | 18.5 | ||||
Asset, sales | 0 | ||||
Asset, transfers, net | (94.7) | ||||
Other period increase (decrease) | (1.1) | ||||
Gain (loss) included in earnings | (0.6) | ||||
Gain (loss) included in other comprehensive income (loss) | 0.1 | ||||
Net realized gain (loss) | 0.8 | ||||
Ending balance at recurring basis, asset value | 114 | ||||
Fixed maturities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning balance at recurring basis, asset value | 242.4 | 65.5 | 104.6 | 65.5 | |
Asset, purchases | 127 | 21.6 | 13 | 87.9 | |
Asset, sales | 0 | 0 | 0 | 0 | |
Asset, transfers, net | 85.4 | 28.7 | (43.5) | 85.9 | |
Other period increase (decrease) | (2) | (0.8) | (8.1) | (9.1) | |
Gain (loss) included in earnings | 0 | 0 | 0 | 0 | |
Gain (loss) included in other comprehensive income (loss) | (13.8) | 3.6 | (1.2) | 12.3 | |
Net realized gain (loss) | 0 | 0 | 0.7 | (0.1) | |
Ending balance at recurring basis, asset value | 104.6 | 439 | 118.6 | 65.5 | 242.4 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Asset transfers into level 3 | 85.4 | 28.7 | 11 | 86 | |
Transfers out of level 3 | 0 | 0 | 54.5 | 0 | |
Fixed maturities | Predecessor Company | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning balance at recurring basis, asset value | 181.1 | 104.6 | |||
Asset, purchases | 18.1 | ||||
Asset, sales | 0 | ||||
Asset, transfers, net | (94.7) | ||||
Other period increase (decrease) | 0 | ||||
Gain (loss) included in earnings | 0 | ||||
Gain (loss) included in other comprehensive income (loss) | 0.1 | ||||
Net realized gain (loss) | 0 | ||||
Ending balance at recurring basis, asset value | 104.6 | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Asset transfers into level 3 | 0 | ||||
Transfers out of level 3 | 94.7 | ||||
Marketable equity securities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning balance at recurring basis, asset value | 6.3 | 5.9 | 6.1 | 5.9 | |
Asset, purchases | 0 | 0 | 0 | 0 | |
Asset, sales | 0 | 0 | (0.2) | 0 | |
Asset, transfers, net | 0 | 0 | 0 | 0.1 | |
Other period increase (decrease) | 0 | 0 | 0.3 | 0 | |
Gain (loss) included in earnings | (0.1) | 0 | 0 | 0 | |
Gain (loss) included in other comprehensive income (loss) | 0 | 0.1 | (0.3) | 0.3 | |
Net realized gain (loss) | 0 | 0 | 0 | 0 | |
Ending balance at recurring basis, asset value | 6.1 | 6.2 | 6 | 5.9 | 6.3 |
Marketable equity securities | Predecessor Company | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning balance at recurring basis, asset value | 5.9 | 5.9 | |||
Asset, purchases | 0 | ||||
Asset, sales | 0 | ||||
Asset, transfers, net | 0 | ||||
Other period increase (decrease) | 0 | ||||
Gain (loss) included in earnings | 0 | ||||
Gain (loss) included in other comprehensive income (loss) | 0 | ||||
Net realized gain (loss) | 0 | ||||
Ending balance at recurring basis, asset value | 5.9 | ||||
Trading Securities | Predecessor Company | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning balance at recurring basis, asset value | 0.2 | 0.2 | |||
Asset, purchases | 0 | ||||
Asset, sales | 0 | ||||
Asset, transfers, net | 0 | ||||
Other period increase (decrease) | 0 | ||||
Gain (loss) included in earnings | 0 | ||||
Gain (loss) included in other comprehensive income (loss) | 0 | ||||
Net realized gain (loss) | 0 | ||||
Ending balance at recurring basis, asset value | 0.2 | ||||
Derivatives | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Beginning balance of net derivative asset (liability) | 39.5 | 7 | 3.3 | 7 | |
Derivative asset (liability), issues | 20.5 | 10.7 | 11 | 23.6 | |
Derivative asset (liability), settlements | 0 | 0 | 0 | 0 | |
Derivative asset (liability), transfers, net | 0 | 0 | 0 | 0 | |
Derivative asset (liability), other period increase (decrease) | (22.1) | (3.1) | (4.7) | (15.1) | |
Derivative asset (liability), gain (loss) included in earnings | (39.1) | 2.9 | (0.9) | 26 | |
Derivative asset (liability), gain (loss) included in OCI | 0 | 0 | 0 | 0 | |
Derivative asset (liability), net realized gain (loss) | 24.8 | (2.8) | (1.7) | (2) | |
Ending Balance of net derivative asset (liability) | 3.3 | 23.6 | 14.7 | 7 | 39.5 |
Derivatives | Predecessor Company | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Beginning balance of net derivative asset (liability) | 3.8 | 3.3 | |||
Derivative asset (liability), issues | 0.4 | ||||
Derivative asset (liability), settlements | 0 | ||||
Derivative asset (liability), transfers, net | 0 | ||||
Derivative asset (liability), other period increase (decrease) | (1.1) | ||||
Derivative asset (liability), gain (loss) included in earnings | (0.6) | ||||
Derivative asset (liability), gain (loss) included in OCI | 0 | ||||
Derivative asset (liability), net realized gain (loss) | 0.8 | ||||
Ending Balance of net derivative asset (liability) | 3.3 | ||||
Corporate Debt Securities | Fixed maturities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning balance at recurring basis, asset value | 200.8 | 57 | 50 | 57 | |
Asset, purchases | 50.8 | 21.6 | 13 | 87.9 | |
Asset, sales | 0 | 0 | 0 | 0 | |
Asset, transfers, net | 85.4 | 0 | 2.6 | 57.2 | |
Other period increase (decrease) | (2.3) | (1) | (8.4) | (9) | |
Gain (loss) included in earnings | 0 | 0 | 0 | 0 | |
Gain (loss) included in other comprehensive income (loss) | (11.7) | 2.5 | (0.9) | 7.8 | |
Net realized gain (loss) | 0 | 0 | 0.7 | (0.1) | |
Ending balance at recurring basis, asset value | 50 | 323 | 80.1 | 57 | 200.8 |
Corporate Debt Securities | Fixed maturities | Predecessor Company | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning balance at recurring basis, asset value | 47.8 | 50 | |||
Asset, purchases | 8.1 | ||||
Asset, sales | 0 | ||||
Asset, transfers, net | (5.1) | ||||
Other period increase (decrease) | 0 | ||||
Gain (loss) included in earnings | 0 | ||||
Gain (loss) included in other comprehensive income (loss) | (0.8) | ||||
Net realized gain (loss) | 0 | ||||
Ending balance at recurring basis, asset value | 50 | ||||
Commercial Mortgage Backed Securities | Fixed maturities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning balance at recurring basis, asset value | 0.1 | 0.9 | 1.2 | 0.9 | |
Asset, purchases | 26.9 | 0 | 0 | 0 | |
Asset, sales | 0 | 0 | 0 | 0 | |
Asset, transfers, net | 0 | 0 | 0 | 0 | |
Other period increase (decrease) | (0.1) | (0.2) | (0.3) | (0.8) | |
Gain (loss) included in earnings | 0 | 0 | 0 | 0 | |
Gain (loss) included in other comprehensive income (loss) | 0 | 0 | 0 | 0 | |
Net realized gain (loss) | 0 | 0 | 0 | 0 | |
Ending balance at recurring basis, asset value | 1.2 | 26.9 | 0.7 | 0.9 | 0.1 |
Commercial Mortgage Backed Securities | Fixed maturities | Predecessor Company | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning balance at recurring basis, asset value | 1.2 | 1.2 | |||
Asset, purchases | 0 | ||||
Asset, sales | 0 | ||||
Asset, transfers, net | 0 | ||||
Other period increase (decrease) | 0 | ||||
Gain (loss) included in earnings | 0 | ||||
Gain (loss) included in other comprehensive income (loss) | 0 | ||||
Net realized gain (loss) | 0 | ||||
Ending balance at recurring basis, asset value | 1.2 | ||||
Collateralized Loan Obligations | Fixed maturities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning balance at recurring basis, asset value | 0 | 0 | 10 | 0 | |
Asset, purchases | 49.3 | 0 | |||
Asset, sales | 0 | 0 | |||
Asset, transfers, net | 0 | (10) | |||
Other period increase (decrease) | 0 | 0 | |||
Gain (loss) included in earnings | 0 | 0 | |||
Gain (loss) included in other comprehensive income (loss) | 0 | 0 | |||
Net realized gain (loss) | 0 | 0 | |||
Ending balance at recurring basis, asset value | 10 | 49.3 | 0 | 0 | |
Collateralized Loan Obligations | Fixed maturities | Predecessor Company | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning balance at recurring basis, asset value | 89.6 | 10 | |||
Asset, purchases | 10 | ||||
Asset, sales | 0 | ||||
Asset, transfers, net | (89.6) | ||||
Other period increase (decrease) | 0 | ||||
Gain (loss) included in earnings | 0 | ||||
Gain (loss) included in other comprehensive income (loss) | 0 | ||||
Net realized gain (loss) | 0 | ||||
Ending balance at recurring basis, asset value | 10 | ||||
Other Debt Obligations | Fixed maturities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning balance at recurring basis, asset value | 41.5 | 7.6 | 43.4 | 7.6 | |
Asset, purchases | 0 | 0 | 0 | 0 | |
Asset, sales | 0 | 0 | 0 | 0 | |
Asset, transfers, net | 0 | 28.7 | (36.1) | 28.7 | |
Other period increase (decrease) | 0.4 | 0.4 | 0.6 | 0.7 | |
Gain (loss) included in earnings | 0 | 0 | 0 | 0 | |
Gain (loss) included in other comprehensive income (loss) | (2.1) | 1.1 | (0.3) | 4.5 | |
Net realized gain (loss) | 0 | 0 | 0 | 0 | |
Ending balance at recurring basis, asset value | 43.4 | 39.8 | 37.8 | 7.6 | 41.5 |
Other Debt Obligations | Fixed maturities | Predecessor Company | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning balance at recurring basis, asset value | 42.5 | 43.4 | |||
Asset, purchases | 0 | ||||
Asset, sales | 0 | ||||
Asset, transfers, net | 0 | ||||
Other period increase (decrease) | 0 | ||||
Gain (loss) included in earnings | 0 | ||||
Gain (loss) included in other comprehensive income (loss) | 0.9 | ||||
Net realized gain (loss) | 0 | ||||
Ending balance at recurring basis, asset value | 43.4 | ||||
Index options | Derivatives | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Beginning balance of net derivative asset (liability) | 39.5 | 7 | 3.3 | 7 | |
Derivative asset (liability), issues | 20.5 | 10 | 9.9 | 22.7 | |
Derivative asset (liability), settlements | 0 | 0 | 0 | 0 | |
Derivative asset (liability), transfers, net | 0 | 0 | 0 | 0 | |
Derivative asset (liability), other period increase (decrease) | (22.1) | (2.8) | (4.7) | (14.5) | |
Derivative asset (liability), gain (loss) included in earnings | (39.1) | 3 | (0.9) | 26 | |
Derivative asset (liability), gain (loss) included in OCI | 0 | 0 | 0 | 0 | |
Derivative asset (liability), net realized gain (loss) | 24.8 | (2.6) | (0.6) | (1.7) | |
Ending Balance of net derivative asset (liability) | 3.3 | 23.6 | 14.6 | 7 | 39.5 |
Index options | Derivatives | Predecessor Company | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Beginning balance of net derivative asset (liability) | 3.7 | 3.3 | |||
Derivative asset (liability), issues | 0.4 | ||||
Derivative asset (liability), settlements | 0 | ||||
Derivative asset (liability), transfers, net | 0 | ||||
Derivative asset (liability), other period increase (decrease) | 0 | ||||
Derivative asset (liability), gain (loss) included in earnings | (0.7) | ||||
Derivative asset (liability), gain (loss) included in OCI | 0 | ||||
Derivative asset (liability), net realized gain (loss) | (0.1) | ||||
Ending Balance of net derivative asset (liability) | 3.3 | ||||
Other derivatives | Derivatives | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Beginning balance of net derivative asset (liability) | 0 | 0 | 0 | 0 | |
Derivative asset (liability), issues | 0 | 0.7 | 1.1 | 0.9 | |
Derivative asset (liability), settlements | 0 | 0 | 0 | 0 | |
Derivative asset (liability), transfers, net | 0 | 0 | 0 | 0 | |
Derivative asset (liability), other period increase (decrease) | 0 | (0.3) | 0 | (0.6) | |
Derivative asset (liability), gain (loss) included in earnings | 0 | (0.1) | 0 | 0 | |
Derivative asset (liability), gain (loss) included in OCI | 0 | 0 | 0 | 0 | |
Derivative asset (liability), net realized gain (loss) | 0 | (0.2) | (1.1) | (0.3) | |
Ending Balance of net derivative asset (liability) | 0 | 0 | 0.1 | 0 | 0 |
Other derivatives | Derivatives | Predecessor Company | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Beginning balance of net derivative asset (liability) | 0.1 | 0 | |||
Derivative asset (liability), issues | 0 | ||||
Derivative asset (liability), settlements | 0 | ||||
Derivative asset (liability), transfers, net | 0 | ||||
Derivative asset (liability), other period increase (decrease) | (1.1) | ||||
Derivative asset (liability), gain (loss) included in earnings | 0.1 | ||||
Derivative asset (liability), gain (loss) included in OCI | 0 | ||||
Derivative asset (liability), net realized gain (loss) | 0.9 | ||||
Ending Balance of net derivative asset (liability) | 0 | ||||
Embedded derivatives | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Beginning balance of net derivative asset (liability) | (797.5) | (532.4) | (334.9) | (532.4) | |
Derivative asset (liability), issues | (81.2) | (102.6) | (119.2) | (162.6) | |
Derivative asset (liability), settlements | (6.3) | (4) | (6.2) | (8) | |
Derivative asset (liability), transfers, net | 0 | 0 | 0 | 0 | |
Derivative asset (liability), other period increase (decrease) | 0 | 0 | 0 | 8.1 | |
Derivative asset (liability), gain (loss) included in earnings | 14.6 | (65.1) | (84.5) | (118.6) | |
Derivative asset (liability), gain (loss) included in OCI | 0 | 0 | 0 | 0 | |
Derivative asset (liability), net realized gain (loss) | 0 | 0 | 0 | 0 | |
Ending Balance of net derivative asset (liability) | (334.9) | $ (857.8) | $ (696.1) | (532.4) | $ (797.5) |
Embedded derivatives | Predecessor Company | |||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||||
Beginning balance of net derivative asset (liability) | (385.7) | $ (371.5) | |||
Derivative asset (liability), issues | (16.2) | ||||
Derivative asset (liability), settlements | (1) | ||||
Derivative asset (liability), transfers, net | 0 | ||||
Derivative asset (liability), other period increase (decrease) | 0 | ||||
Derivative asset (liability), gain (loss) included in earnings | 29.4 | ||||
Derivative asset (liability), gain (loss) included in OCI | 0 | ||||
Derivative asset (liability), net realized gain (loss) | 0 | ||||
Ending Balance of net derivative asset (liability) | $ (371.5) |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs (DAC) and Value of Business Acquired (VOBA) - Reconciliation of DAC (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 11 Months Ended | 12 Months Ended | ||
Jan. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2015 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Unamortized balance at beginning of period | $ 407.2 | $ 202.8 | $ 0 | $ 202.8 | ||
Deferral of acquisition costs | 134 | 134.4 | 215.4 | 239.9 | ||
Adjustments for realized (gains) losses | (6) | (0.9) | (1.6) | (4.6) | ||
Amortization — excluding unlocking | (1.6) | (13.1) | (9.9) | (30.9) | ||
Amortization — impact of unlocking | (0.9) | (1.2) | (1.1) | 0 | ||
Unamortized balance at end of period | $ 0 | 532.7 | 322 | 202.8 | 407.2 | |
Accumulated effect of net unrealized (gains) losses | 32.8 | (21.7) | (3.4) | (21) | ||
Balance at end of period | $ 565.5 | $ 300.3 | 199.4 | $ 386.2 | ||
Predecessor Company | ||||||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||||
Unamortized balance at beginning of period | 677.5 | $ 688.1 | $ 513.9 | |||
Deferral of acquisition costs | 19.6 | 247.7 | ||||
Adjustments for realized (gains) losses | (0.4) | 6 | ||||
Amortization — excluding unlocking | (8.4) | (86.4) | ||||
Amortization — impact of unlocking | (0.2) | (3.7) | ||||
Unamortized balance at end of period | 688.1 | 677.5 | ||||
Accumulated effect of net unrealized (gains) losses | (41) | (11.4) | ||||
Balance at end of period | $ 647.1 | $ 666.1 |
Deferred Policy Acquisition C_4
Deferred Policy Acquisition Costs (DAC) and Value of Business Acquired (VOBA) - Reconciliation of VOBA (Details) - USD ($) $ in Millions | 6 Months Ended | 11 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | |
Movement in Present Value of Future Insurance Profits [Roll Forward] | ||||
Unamortized balance at beginning of period | $ 358.1 | $ 413.4 | $ 457.6 | $ 413.4 |
Adjustments related to realized (gains) losses | (1.6) | (0.2) | 4.5 | (11.9) |
Amortization — excluding unlocking | (21.6) | (22.3) | (40.7) | (41.8) |
Amortization — impact of unlocking | (2.1) | (4.1) | (8) | (1.6) |
Unamortized balance at end of period | 332.8 | 386.8 | 413.4 | 358.1 |
Accumulated effect of net unrealized (gains) losses | 62.5 | (70.8) | (16.1) | (48.1) |
Balance at end of period | $ 395.3 | $ 316 | $ 397.3 | $ 310 |
Deferred Policy Acquisition C_5
Deferred Policy Acquisition Costs (DAC) and Value of Business Acquired (VOBA) - Estimated Future Amortization Expense (Details) $ in Millions | Dec. 31, 2017USD ($) |
Insurance [Abstract] | |
2,018 | $ 38 |
2,019 | 36 |
2,020 | 33 |
2,021 | 29.8 |
2,022 | $ 26.2 |
Stockholder's Equity (Details)
Stockholder's Equity (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 11 Months Ended | 12 Months Ended | ||
Jan. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2015 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Stockholders' equity, beginning balance | $ 4,564.5 | $ 4,026 | $ 3,946.1 | $ 4,026 | ||
Other comprehensive income (loss) before reclassifications, net of taxes | 145.1 | |||||
Net realized (gains) losses | 9.4 | |||||
Total provision (benefit) for income taxes | 2.2 | |||||
Total reclassifications from AOCI, net of taxes | (4) | |||||
Other comprehensive income (loss) after reclassifications | 141.1 | |||||
Adoption of new accounting standard | 0 | 0 | ||||
Stockholders' equity, ending balance | $ 3,946.1 | 3,840.1 | 4,272.3 | 4,026 | 4,564.5 | |
Interest rate swaps | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Reclassifications recorded in net investment income | (6.6) | |||||
Foreign currency swaps | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Reclassifications recorded in net investment income | (9) | |||||
Net Unrealized Gains (Losses) on Available-for- sale Securities | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Stockholders' equity, beginning balance | 642.7 | 137.6 | 0 | 137.6 | ||
Other comprehensive income (loss) before reclassifications, net of taxes | (847.5) | 333.5 | 128.6 | 432.9 | ||
Net realized (gains) losses | 9.5 | (28.9) | 13.8 | (32.9) | ||
Total provision (benefit) for income taxes | (2) | 10.1 | (4.8) | 11.5 | ||
Total reclassifications from AOCI, net of taxes | 7.5 | (18.8) | 9 | (21.4) | ||
Other comprehensive income (loss) after reclassifications | (840) | 314.7 | 137.6 | 411.5 | ||
Adoption of new accounting standard | (114.3) | 93.6 | ||||
Stockholders' equity, ending balance | 0 | (311.6) | 452.3 | 137.6 | 642.7 | |
Other comprehensive income (loss) before reclassifications, tax | (225.3) | 179.6 | 69.3 | 201.9 | ||
Net Unrealized Gains (Losses) on Available-for- sale Securities | Interest rate swaps | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Reclassifications recorded in net investment income | 0 | 0 | 0 | 0 | ||
Net Unrealized Gains (Losses) on Available-for- sale Securities | Foreign currency swaps | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Reclassifications recorded in net investment income | 0 | 0 | 0 | 0 | ||
OTTI on Fixed Maturities not related to Credit Losses | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Stockholders' equity, beginning balance | (0.3) | (0.2) | 0 | (0.2) | ||
Other comprehensive income (loss) before reclassifications, net of taxes | 0 | 0 | (0.3) | (0.1) | ||
Net realized (gains) losses | 0 | 0 | 0.1 | 0 | ||
Total provision (benefit) for income taxes | 0 | 0 | 0 | 0 | ||
Total reclassifications from AOCI, net of taxes | 0 | 0 | 0.1 | 0 | ||
Other comprehensive income (loss) after reclassifications | 0 | 0 | (0.2) | (0.1) | ||
Adoption of new accounting standard | 0 | 0 | ||||
Stockholders' equity, ending balance | 0 | (0.3) | (0.2) | (0.2) | (0.3) | |
Other comprehensive income (loss) before reclassifications, tax | 0 | 0 | (0.1) | 0 | ||
OTTI on Fixed Maturities not related to Credit Losses | Interest rate swaps | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Reclassifications recorded in net investment income | 0 | 0 | 0 | 0 | ||
OTTI on Fixed Maturities not related to Credit Losses | Foreign currency swaps | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Reclassifications recorded in net investment income | 0 | 0 | 0 | 0 | ||
Adjustment for DAC and VOBA | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Stockholders' equity, beginning balance | (63.6) | (14) | 0 | (14) | ||
Other comprehensive income (loss) before reclassifications, net of taxes | 144.3 | (53.5) | (11.5) | (52.7) | ||
Net realized (gains) losses | 7.2 | 1.1 | (3.7) | 16.6 | ||
Total provision (benefit) for income taxes | (1.5) | (0.4) | 1.2 | (5.8) | ||
Total reclassifications from AOCI, net of taxes | 5.7 | 0.7 | (2.5) | 10.8 | ||
Other comprehensive income (loss) after reclassifications | 150 | (52.8) | (14) | (41.9) | ||
Adoption of new accounting standard | 0 | (7.7) | ||||
Stockholders' equity, ending balance | 0 | 86.4 | (66.8) | (14) | (63.6) | |
Other comprehensive income (loss) before reclassifications, tax | 38.4 | (28.8) | (6.3) | (22.8) | ||
Adjustment for DAC and VOBA | Interest rate swaps | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Reclassifications recorded in net investment income | 0 | 0 | 0 | 0 | ||
Adjustment for DAC and VOBA | Foreign currency swaps | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Reclassifications recorded in net investment income | 0 | 0 | 0 | 0 | ||
Net Gains (Losses) on Cash Flow Hedges | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Stockholders' equity, beginning balance | (27.7) | 17.7 | 0 | 17.7 | ||
Other comprehensive income (loss) before reclassifications, net of taxes | (8.3) | (14.7) | 28.3 | (44.5) | ||
Net realized (gains) losses | 5.2 | 9.4 | (0.8) | 7.8 | ||
Total provision (benefit) for income taxes | (0.8) | (0.5) | 5.8 | (1.8) | ||
Total reclassifications from AOCI, net of taxes | 3 | 1 | (10.6) | 3.4 | ||
Other comprehensive income (loss) after reclassifications | (5.3) | (13.7) | 17.7 | (41.1) | ||
Adoption of new accounting standard | 0 | (4.3) | ||||
Stockholders' equity, ending balance | 0 | (33) | 4 | 17.7 | (27.7) | |
Other comprehensive income (loss) before reclassifications, tax | (2.2) | (7.9) | 15.3 | (23) | ||
Net Gains (Losses) on Cash Flow Hedges | Interest rate swaps | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Reclassifications recorded in net investment income | 1.7 | (3.2) | (6.6) | 0.1 | ||
Net Gains (Losses) on Cash Flow Hedges | Foreign currency swaps | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Reclassifications recorded in net investment income | (3.1) | (4.7) | (9) | (2.7) | ||
Accumulated Other Comprehensive Income | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Stockholders' equity, beginning balance | 551.1 | 141.1 | 0 | 141.1 | ||
Other comprehensive income (loss) before reclassifications, net of taxes | (711.5) | 265.3 | 335.6 | |||
Net realized (gains) losses | 21.9 | (18.4) | (8.5) | |||
Total provision (benefit) for income taxes | (4.3) | 9.2 | 3.9 | |||
Total reclassifications from AOCI, net of taxes | 16.2 | (17.1) | (7.2) | |||
Other comprehensive income (loss) after reclassifications | (695.3) | 248.2 | 328.4 | |||
Adoption of new accounting standard | (114.3) | 81.6 | ||||
Stockholders' equity, ending balance | 0 | (258.5) | 389.3 | 141.1 | 551.1 | |
Other comprehensive income (loss) before reclassifications, tax | (189.1) | 142.9 | 78.2 | 156.1 | ||
Accumulated Other Comprehensive Income | Interest rate swaps | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Reclassifications recorded in net investment income | 1.7 | (3.2) | 0.1 | |||
Accumulated Other Comprehensive Income | Foreign currency swaps | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Reclassifications recorded in net investment income | $ (3.1) | $ (4.7) | $ (2.7) | |||
Predecessor Company | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Stockholders' equity, beginning balance | 3,156.2 | 3,266.8 | $ 3,578.2 | |||
Other comprehensive income (loss) before reclassifications, net of taxes | 113.1 | (502.3) | ||||
Net realized (gains) losses | 3.1 | 57.9 | ||||
Total provision (benefit) for income taxes | (0.5) | (16.8) | ||||
Total reclassifications from AOCI, net of taxes | 1 | 31 | ||||
Other comprehensive income (loss) after reclassifications | 114.1 | (471.3) | ||||
Stockholders' equity, ending balance | 3,266.8 | 3,156.2 | ||||
Predecessor Company | Interest rate swaps | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Reclassifications recorded in net investment income | (0.6) | (4.6) | ||||
Predecessor Company | Foreign currency swaps | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Reclassifications recorded in net investment income | (1) | (5.5) | ||||
Predecessor Company | Net Unrealized Gains (Losses) on Available-for- sale Securities | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Stockholders' equity, beginning balance | 521.7 | 635 | 1,127.8 | |||
Other comprehensive income (loss) before reclassifications, net of taxes | 111.6 | (641.2) | ||||
Net realized (gains) losses | 2.6 | 54 | ||||
Total provision (benefit) for income taxes | (0.9) | (18.9) | ||||
Total reclassifications from AOCI, net of taxes | 1.7 | 35.1 | ||||
Other comprehensive income (loss) after reclassifications | 113.3 | (606.1) | ||||
Stockholders' equity, ending balance | 635 | 521.7 | ||||
Other comprehensive income (loss) before reclassifications, tax | 60.1 | (345.3) | ||||
Predecessor Company | Net Unrealized Gains (Losses) on Available-for- sale Securities | Interest rate swaps | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Reclassifications recorded in net investment income | 0 | 0 | ||||
Predecessor Company | Net Unrealized Gains (Losses) on Available-for- sale Securities | Foreign currency swaps | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Reclassifications recorded in net investment income | 0 | 0 | ||||
Predecessor Company | OTTI on Fixed Maturities not related to Credit Losses | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Stockholders' equity, beginning balance | (17.7) | (17.7) | (13.5) | |||
Other comprehensive income (loss) before reclassifications, net of taxes | 0 | (11.4) | ||||
Net realized (gains) losses | 0 | 11.1 | ||||
Total provision (benefit) for income taxes | 0 | (3.9) | ||||
Total reclassifications from AOCI, net of taxes | 0 | 7.2 | ||||
Other comprehensive income (loss) after reclassifications | 0 | (4.2) | ||||
Stockholders' equity, ending balance | (17.7) | (17.7) | ||||
Other comprehensive income (loss) before reclassifications, tax | 0 | (6.1) | ||||
Predecessor Company | OTTI on Fixed Maturities not related to Credit Losses | Interest rate swaps | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Reclassifications recorded in net investment income | 0 | 0 | ||||
Predecessor Company | OTTI on Fixed Maturities not related to Credit Losses | Foreign currency swaps | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Reclassifications recorded in net investment income | 0 | 0 | ||||
Predecessor Company | Adjustment for DAC and VOBA | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Stockholders' equity, beginning balance | (28.1) | (52.5) | (131.4) | |||
Other comprehensive income (loss) before reclassifications, net of taxes | (24.7) | 108 | ||||
Net realized (gains) losses | 0.5 | (7.2) | ||||
Total provision (benefit) for income taxes | (0.2) | 2.5 | ||||
Total reclassifications from AOCI, net of taxes | 0.3 | (4.7) | ||||
Other comprehensive income (loss) after reclassifications | (24.4) | 103.3 | ||||
Stockholders' equity, ending balance | (52.5) | (28.1) | ||||
Other comprehensive income (loss) before reclassifications, tax | (13.3) | 58.2 | ||||
Predecessor Company | Adjustment for DAC and VOBA | Interest rate swaps | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Reclassifications recorded in net investment income | 0 | 0 | ||||
Predecessor Company | Adjustment for DAC and VOBA | Foreign currency swaps | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Reclassifications recorded in net investment income | 0 | 0 | ||||
Predecessor Company | Net Gains (Losses) on Cash Flow Hedges | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Stockholders' equity, beginning balance | 42.2 | 67.4 | 6.5 | |||
Other comprehensive income (loss) before reclassifications, net of taxes | 26.2 | 42.3 | ||||
Net realized (gains) losses | 0 | 0 | ||||
Total provision (benefit) for income taxes | 0.6 | 3.5 | ||||
Total reclassifications from AOCI, net of taxes | (1) | (6.6) | ||||
Other comprehensive income (loss) after reclassifications | 25.2 | 35.7 | ||||
Stockholders' equity, ending balance | 67.4 | 42.2 | ||||
Other comprehensive income (loss) before reclassifications, tax | 14.2 | 22.8 | ||||
Predecessor Company | Net Gains (Losses) on Cash Flow Hedges | Interest rate swaps | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Reclassifications recorded in net investment income | (0.6) | (4.6) | ||||
Predecessor Company | Net Gains (Losses) on Cash Flow Hedges | Foreign currency swaps | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Reclassifications recorded in net investment income | (1) | (5.5) | ||||
Predecessor Company | Accumulated Other Comprehensive Income | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
Stockholders' equity, beginning balance | 518.1 | $ 632.2 | 989.4 | |||
Stockholders' equity, ending balance | 632.2 | 518.1 | ||||
Other comprehensive income (loss) before reclassifications, tax | $ 61 | $ (270.4) |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Lease Commitments (Details) $ in Millions | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 9.4 |
2,019 | 9.1 |
2,020 | 8.5 |
2,021 | 4.6 |
2,022 | 2.4 |
Thereafter | 4.6 |
Total | $ 38.6 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) | Dec. 12, 2014 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||||
Unfunded mortgage loan and unsettled private placement securities commitments | $ 61,300,000 | $ 53,200,000 | $ 48,900,000 | |
Line of credit | Surplus Note | ||||
Debt Instrument [Line Items] | ||||
Debt instrument term | 25 years | |||
Initial principal balance | $ 0 | |||
Maximum borrowing capacity | 100,300,000 | 101,400,000 | ||
Borrowings since inception | $ 0 | $ 0 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 1 Months Ended | 6 Months Ended | 11 Months Ended | 12 Months Ended | ||
Jan. 31, 2016USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($)segment | Dec. 31, 2015USD ($) | |
Segment Reporting [Abstract] | ||||||
Number of reportable segments | segment | 5 | |||||
Adjusted revenues: | ||||||
Premiums | $ 506.8 | $ 441.7 | $ 717.5 | $ 899.5 | ||
Net investment income | 671.3 | 640.6 | 1,101.3 | 1,284.1 | ||
Policy fees, contract charges, and other | 153.1 | 131.5 | 220.1 | 272.7 | ||
Certain realized gains (losses) | (29.6) | (25.7) | (85.8) | (75.5) | ||
Segment benefits and expenses: | ||||||
Policyholder benefits and claims | 439.4 | 377.9 | 568.8 | 758.7 | ||
Interest credited | 505.4 | 479.9 | 867.8 | 973.6 | ||
Other underwriting and operating expenses | 243.2 | 224.5 | 406.6 | 452.5 | ||
Amortization of DAC and VOBA | 26.2 | 40.7 | 59.7 | 74.3 | ||
Segment adjusted pre-tax income (loss) | 87.4 | 65.1 | 50.2 | 121.7 | ||
Total adjusted revenues | 1,301.6 | 1,188.1 | 1,953.1 | 2,380.8 | ||
Add: Excluded realized gains (losses) | (29.2) | 21.4 | (24.5) | 77.4 | ||
Total revenues | 1,272.4 | 1,209.5 | 1,928.6 | 2,458.2 | ||
Total segment benefits and expenses | 1,214.2 | 1,123 | 1,902.9 | 2,259.1 | ||
Add: Amortization of intangible assets | 42.2 | 42.2 | 77.4 | 84.4 | ||
Total benefits and expenses | 1,256.4 | 1,165.2 | 1,980.3 | 2,343.5 | ||
Income (loss) from operations before income taxes | 16 | 44.3 | (51.7) | 114.7 | ||
Balance Sheet | ||||||
Total investments | 37,615 | 35,300.7 | 37,844.8 | |||
DAC and VOBA | 960.8 | 596.7 | 696.2 | |||
Other intangible assets | 1,212.8 | 1,339.4 | 1,254.9 | |||
Goodwill | 563 | 563 | 563 | |||
Separate account assets | 999.4 | 911.4 | 978.1 | |||
Total assets | 42,662.2 | 39,854.7 | 42,554.2 | |||
Future policy benefits, losses, claims and loss expense | 36,957.3 | 34,019.6 | 36,041.3 | |||
Other policyholders' funds | 131.7 | 118 | 117.9 | |||
Benefits | ||||||
Adjusted revenues: | ||||||
Premiums | 491.1 | 425 | 686.7 | 867.4 | ||
Net investment income | 14.4 | 11.7 | 18.8 | 25.7 | ||
Policy fees, contract charges, and other | 2.4 | 2.4 | 6.3 | 4.9 | ||
Certain realized gains (losses) | (0.1) | 0 | 0 | 0 | ||
Segment benefits and expenses: | ||||||
Policyholder benefits and claims | 353.6 | 330 | 497.6 | 640.2 | ||
Interest credited | 0 | 0 | 0 | 0 | ||
Other underwriting and operating expenses | 119 | 109.3 | 177.8 | 220.7 | ||
Amortization of DAC and VOBA | 2.6 | 1.1 | 0.6 | 2.8 | ||
Segment adjusted pre-tax income (loss) | 32.6 | (1.3) | 35.8 | 34.3 | ||
Total adjusted revenues | 507.8 | 439.1 | 711.8 | 898 | ||
Add: Excluded realized gains (losses) | (0.1) | 0.5 | (1.3) | 0.6 | ||
Total revenues | 507.7 | 439.6 | 710.5 | 898.6 | ||
Total segment benefits and expenses | 475.2 | 440.4 | 676 | 863.7 | ||
Add: Amortization of intangible assets | 26.7 | 26.7 | 49 | 53.4 | ||
Total benefits and expenses | 501.9 | 467.1 | 725 | 917.1 | ||
Income (loss) from operations before income taxes | 5.8 | (27.5) | (14.5) | (18.5) | ||
Balance Sheet | ||||||
Total investments | 387.9 | 95.3 | 342.3 | |||
DAC and VOBA | 10.1 | 2.4 | 7.7 | |||
Other intangible assets | 680.8 | 760.8 | 707.3 | |||
Goodwill | 308 | 308 | 308 | |||
Separate account assets | 0 | 0 | 0 | |||
Total assets | 1,482.4 | 1,237.6 | 1,467.3 | |||
Future policy benefits, losses, claims and loss expense | 395.2 | 272.8 | 344.7 | |||
Other policyholders' funds | 26.1 | 26.3 | 29.3 | |||
Deferred Annuities | ||||||
Adjusted revenues: | ||||||
Premiums | 0 | 0 | 0 | 0 | ||
Net investment income | 365.4 | 349.3 | 579.5 | 698.7 | ||
Policy fees, contract charges, and other | 14.2 | 11.4 | 17.9 | 22.9 | ||
Certain realized gains (losses) | (2.3) | (4) | (24.3) | (12.7) | ||
Segment benefits and expenses: | ||||||
Policyholder benefits and claims | 6.2 | 2.4 | 2.8 | 8.4 | ||
Interest credited | 221.9 | 206.9 | 354.8 | 418.4 | ||
Other underwriting and operating expenses | 60.4 | 57.8 | 98.2 | 115.1 | ||
Amortization of DAC and VOBA | 33.6 | 34.2 | 56.5 | 60.8 | ||
Segment adjusted pre-tax income (loss) | 55.2 | 55.4 | 60.8 | 106.2 | ||
Total adjusted revenues | 377.3 | 356.7 | 573.1 | 708.9 | ||
Add: Excluded realized gains (losses) | 1.7 | (6.1) | (2.9) | 42.6 | ||
Total revenues | 379 | 350.6 | 570.2 | 751.5 | ||
Total segment benefits and expenses | 322.1 | 301.3 | 512.3 | 602.7 | ||
Add: Amortization of intangible assets | 13 | 13 | 23.8 | 26 | ||
Total benefits and expenses | 335.1 | 314.3 | 536.1 | 628.7 | ||
Income (loss) from operations before income taxes | 43.9 | 36.3 | 34.1 | 122.8 | ||
Balance Sheet | ||||||
Total investments | 21,836.7 | 19,609.6 | 21,673.5 | |||
DAC and VOBA | 583.8 | 423.5 | 422 | |||
Other intangible assets | 472.2 | 511.2 | 485.2 | |||
Goodwill | 198.8 | 198.8 | 198.8 | |||
Separate account assets | 578.7 | 652.2 | 613.2 | |||
Total assets | 24,426.7 | 21,941.4 | 23,968.5 | |||
Future policy benefits, losses, claims and loss expense | 22,078 | 19,531.9 | 21,350.2 | |||
Other policyholders' funds | 42.3 | 22.1 | 22.7 | |||
Income Annuities | ||||||
Adjusted revenues: | ||||||
Premiums | 0 | 0 | 0 | 0 | ||
Net investment income | 151.4 | 152.1 | 288.8 | 303.3 | ||
Policy fees, contract charges, and other | 0.3 | 0.4 | 0.8 | 0.7 | ||
Certain realized gains (losses) | (2.1) | (1.3) | (5.1) | (1.2) | ||
Segment benefits and expenses: | ||||||
Policyholder benefits and claims | 0 | 0 | 0 | 0 | ||
Interest credited | 141.8 | 136.9 | 267.5 | 279.7 | ||
Other underwriting and operating expenses | 8 | 7.8 | 17 | 15.6 | ||
Amortization of DAC and VOBA | 1.5 | 0.8 | 0.7 | 2 | ||
Segment adjusted pre-tax income (loss) | (1.7) | 5.7 | (0.7) | 5.5 | ||
Total adjusted revenues | 149.6 | 151.2 | 284.5 | 302.8 | ||
Add: Excluded realized gains (losses) | (26.3) | 26.9 | (12) | 33.3 | ||
Total revenues | 123.3 | 178.1 | 272.5 | 336.1 | ||
Total segment benefits and expenses | 151.3 | 145.5 | 285.2 | 297.3 | ||
Add: Amortization of intangible assets | 1.7 | 1.7 | 3.1 | 3.3 | ||
Total benefits and expenses | 153 | 147.2 | 288.3 | 300.6 | ||
Income (loss) from operations before income taxes | (29.7) | 30.9 | (15.8) | 35.5 | ||
Balance Sheet | ||||||
Total investments | 6,888 | 7,204.2 | 7,349.9 | |||
DAC and VOBA | 19.5 | 8.8 | 16.3 | |||
Other intangible assets | 47.9 | 52.9 | 49.6 | |||
Goodwill | 50.2 | 50.2 | 50.2 | |||
Separate account assets | 0 | 0 | 0 | |||
Total assets | 7,066 | 7,377.8 | 7,513.4 | |||
Future policy benefits, losses, claims and loss expense | 7,072.1 | 7,260.4 | 7,124.5 | |||
Other policyholders' funds | 2.1 | 5 | 4 | |||
Individual Life | ||||||
Adjusted revenues: | ||||||
Premiums | 15.7 | 16.7 | 30.8 | 32.1 | ||
Net investment income | 129.4 | 119.8 | 202.9 | 242.1 | ||
Policy fees, contract charges, and other | 136.2 | 117.3 | 195 | 244.2 | ||
Certain realized gains (losses) | (1.5) | (3.1) | (7.9) | (5.4) | ||
Segment benefits and expenses: | ||||||
Policyholder benefits and claims | 79.6 | 45.5 | 68.4 | 110.1 | ||
Interest credited | 141.7 | 136.1 | 245.5 | 275.5 | ||
Other underwriting and operating expenses | 55.6 | 48.7 | 87.9 | 98.8 | ||
Amortization of DAC and VOBA | (11.5) | 4.6 | 1.9 | 8.7 | ||
Segment adjusted pre-tax income (loss) | 14.4 | 15.8 | 17.1 | 19.9 | ||
Total adjusted revenues | 279.8 | 250.7 | 420.8 | 513 | ||
Add: Excluded realized gains (losses) | (1.5) | (0.6) | (4.5) | 0.5 | ||
Total revenues | 278.3 | 250.1 | 416.3 | 513.5 | ||
Total segment benefits and expenses | 265.4 | 234.9 | 403.7 | 493.1 | ||
Add: Amortization of intangible assets | 0.8 | 0.8 | 1.5 | 1.7 | ||
Total benefits and expenses | 266.2 | 235.7 | 405.2 | 494.8 | ||
Income (loss) from operations before income taxes | 12.1 | 14.4 | 11.1 | 18.7 | ||
Balance Sheet | ||||||
Total investments | 6,786 | 6,513.4 | 6,855.5 | |||
DAC and VOBA | 347.4 | 162 | 250.2 | |||
Other intangible assets | 11.9 | 14.5 | 12.8 | |||
Goodwill | 6 | 6 | 6 | |||
Separate account assets | 420.7 | 259.2 | 364.9 | |||
Total assets | 7,924.9 | 7,345.1 | 7,836 | |||
Future policy benefits, losses, claims and loss expense | 7,412 | 6,954.5 | 7,221.9 | |||
Other policyholders' funds | 49.2 | 49.9 | 47 | |||
Other | ||||||
Adjusted revenues: | ||||||
Premiums | 0 | 0 | 0 | 0 | ||
Net investment income | 10.7 | 7.7 | 11.3 | 14.3 | ||
Policy fees, contract charges, and other | 0 | 0 | 0.1 | 0 | ||
Certain realized gains (losses) | (23.6) | (17.3) | (48.5) | (56.2) | ||
Segment benefits and expenses: | ||||||
Policyholder benefits and claims | 0 | 0 | 0 | 0 | ||
Interest credited | 0 | 0 | 0 | 0 | ||
Other underwriting and operating expenses | 0.2 | 0.9 | 25.7 | 2.3 | ||
Amortization of DAC and VOBA | 0 | 0 | 0 | 0 | ||
Segment adjusted pre-tax income (loss) | (13.1) | (10.5) | (62.8) | (44.2) | ||
Total adjusted revenues | (12.9) | (9.6) | (37.1) | (41.9) | ||
Add: Excluded realized gains (losses) | (3) | 0.7 | (3.8) | 0.4 | ||
Total revenues | (15.9) | (8.9) | (40.9) | (41.5) | ||
Total segment benefits and expenses | 0.2 | 0.9 | 25.7 | 2.3 | ||
Add: Amortization of intangible assets | 0 | 0 | 0 | 0 | ||
Total benefits and expenses | 0.2 | 0.9 | 25.7 | 2.3 | ||
Income (loss) from operations before income taxes | (16.1) | $ (9.8) | (66.6) | (43.8) | ||
Balance Sheet | ||||||
Total investments | 1,716.4 | 1,878.2 | 1,623.6 | |||
DAC and VOBA | 0 | 0 | 0 | |||
Other intangible assets | 0 | 0 | 0 | |||
Goodwill | 0 | 0 | 0 | |||
Separate account assets | 0 | 0 | 0 | |||
Total assets | 1,762.2 | 1,952.8 | 1,769 | |||
Future policy benefits, losses, claims and loss expense | 0 | 0 | 0 | |||
Other policyholders' funds | $ 12 | $ 14.7 | $ 14.9 | |||
Predecessor Company | ||||||
Adjusted revenues: | ||||||
Premiums | $ 61.2 | $ 716.6 | ||||
Net investment income | 109.7 | 1,339.4 | ||||
Policy fees, contract charges, and other | 18.3 | 207 | ||||
Certain realized gains (losses) | (0.4) | (1) | ||||
Segment benefits and expenses: | ||||||
Policyholder benefits and claims | 48.4 | 570.8 | ||||
Interest credited | 84.9 | 973.6 | ||||
Other underwriting and operating expenses | 33 | 384.5 | ||||
Other underwriting and operating expenses | 33.2 | 387.3 | ||||
Amortization of DAC and VOBA | 8.6 | 90.1 | ||||
Segment adjusted pre-tax income (loss) | 13.7 | 240.2 | ||||
Total adjusted revenues | 188.8 | 2,262 | ||||
Add: Excluded realized gains (losses) | (26.5) | (92.1) | ||||
Total revenues | 162.3 | 2,169.9 | ||||
Total segment benefits and expenses | 175.1 | 2,021.8 | ||||
Add: Amortization of intangible assets | 0.2 | 2.8 | ||||
Total benefits and expenses | 175.1 | 2,021.8 | ||||
Income (loss) from operations before income taxes | (12.8) | 148.1 | ||||
Predecessor Company | Benefits | ||||||
Adjusted revenues: | ||||||
Premiums | 58.6 | 683.2 | ||||
Net investment income | 2.1 | 23.4 | ||||
Policy fees, contract charges, and other | 0.6 | 6.5 | ||||
Certain realized gains (losses) | 0 | 0 | ||||
Segment benefits and expenses: | ||||||
Policyholder benefits and claims | 37.1 | 456.9 | ||||
Interest credited | 0 | 0 | ||||
Other underwriting and operating expenses | 16.1 | 184.5 | ||||
Amortization of DAC and VOBA | 0.2 | 1.8 | ||||
Segment adjusted pre-tax income (loss) | 7.9 | 69.9 | ||||
Total adjusted revenues | 61.3 | 713.1 | ||||
Add: Excluded realized gains (losses) | 0 | 0.1 | ||||
Total revenues | 61.3 | 713.2 | ||||
Total segment benefits and expenses | 53.4 | 643.2 | ||||
Total benefits and expenses | 53.4 | 643.2 | ||||
Income (loss) from operations before income taxes | 7.9 | 70 | ||||
Predecessor Company | Deferred Annuities | ||||||
Adjusted revenues: | ||||||
Premiums | 0 | 0 | ||||
Net investment income | 57.3 | 663.6 | ||||
Policy fees, contract charges, and other | 1.4 | 18.7 | ||||
Certain realized gains (losses) | (0.4) | (1) | ||||
Segment benefits and expenses: | ||||||
Policyholder benefits and claims | 0.2 | 0.6 | ||||
Interest credited | 33.2 | 374.8 | ||||
Other underwriting and operating expenses | 8 | 99.9 | ||||
Amortization of DAC and VOBA | 6.6 | 71.8 | ||||
Segment adjusted pre-tax income (loss) | 10.3 | 134.2 | ||||
Total adjusted revenues | 58.3 | 681.3 | ||||
Add: Excluded realized gains (losses) | (1.9) | (34.6) | ||||
Total revenues | 56.4 | 646.7 | ||||
Total segment benefits and expenses | 48 | 547.1 | ||||
Total benefits and expenses | 48 | 547.1 | ||||
Income (loss) from operations before income taxes | 8.4 | 99.6 | ||||
Predecessor Company | Income Annuities | ||||||
Adjusted revenues: | ||||||
Premiums | 0 | 0 | ||||
Net investment income | 29.8 | 380.9 | ||||
Policy fees, contract charges, and other | 0.1 | 0.8 | ||||
Certain realized gains (losses) | 0 | 0 | ||||
Segment benefits and expenses: | ||||||
Policyholder benefits and claims | 0 | 0 | ||||
Interest credited | 30.1 | 341 | ||||
Other underwriting and operating expenses | 1.4 | 16.7 | ||||
Amortization of DAC and VOBA | 0.6 | 6.1 | ||||
Segment adjusted pre-tax income (loss) | (2.2) | 17.9 | ||||
Total adjusted revenues | 29.9 | 381.7 | ||||
Add: Excluded realized gains (losses) | (22.5) | (6.3) | ||||
Total revenues | 7.4 | 375.4 | ||||
Total segment benefits and expenses | 32.1 | 363.8 | ||||
Total benefits and expenses | 32.1 | 363.8 | ||||
Income (loss) from operations before income taxes | (24.7) | 11.6 | ||||
Predecessor Company | Individual Life | ||||||
Adjusted revenues: | ||||||
Premiums | 2.6 | 33.4 | ||||
Net investment income | 22.9 | 290.9 | ||||
Policy fees, contract charges, and other | 16.2 | 180.7 | ||||
Certain realized gains (losses) | 0 | 0 | ||||
Segment benefits and expenses: | ||||||
Policyholder benefits and claims | 11.1 | 113.3 | ||||
Interest credited | 21.6 | 257.8 | ||||
Other underwriting and operating expenses | 7.3 | 87.2 | ||||
Amortization of DAC and VOBA | 1.2 | 10.4 | ||||
Segment adjusted pre-tax income (loss) | 0.5 | 36.3 | ||||
Total adjusted revenues | 41.7 | 505 | ||||
Add: Excluded realized gains (losses) | 0.6 | (5.3) | ||||
Total revenues | 42.3 | 499.7 | ||||
Total segment benefits and expenses | 41.2 | 468.7 | ||||
Total benefits and expenses | 41.2 | 468.7 | ||||
Income (loss) from operations before income taxes | 1.1 | 31 | ||||
Predecessor Company | Other | ||||||
Adjusted revenues: | ||||||
Premiums | 0 | 0 | ||||
Net investment income | (2.4) | (19.4) | ||||
Policy fees, contract charges, and other | 0 | 0.3 | ||||
Certain realized gains (losses) | 0 | 0 | ||||
Segment benefits and expenses: | ||||||
Policyholder benefits and claims | 0 | 0 | ||||
Interest credited | 0 | 0 | ||||
Other underwriting and operating expenses | 0.4 | (1) | ||||
Amortization of DAC and VOBA | 0 | 0 | ||||
Segment adjusted pre-tax income (loss) | (2.8) | (18.1) | ||||
Total adjusted revenues | (2.4) | (19.1) | ||||
Add: Excluded realized gains (losses) | (2.7) | (46) | ||||
Total revenues | (5.1) | (65.1) | ||||
Total segment benefits and expenses | 0.4 | (1) | ||||
Total benefits and expenses | 0.4 | (1) | ||||
Income (loss) from operations before income taxes | $ (5.5) | $ (64.1) |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Details) - USD ($) | 1 Months Ended | 8 Months Ended | 11 Months Ended | 12 Months Ended | 50 Months Ended | ||
Jan. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Apr. 30, 2017 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Amount retained per life | $ 5,000,000 | $ 3,000,000 | |||||
Reinsurance recoverables | 318,200,000 | $ 298,800,000 | $ 318,200,000 | $ 298,800,000 | |||
Write-offs of uncollectible insurance | 0 | 0 | $ 0 | ||||
Reserve for uncollectible insurance | 0 | 0 | 0 | 0 | 0 | ||
Reduction of policyholder benefits and claims | 27,200,000 | 98,000,000 | |||||
Medical Stop-Loss | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Amount of the excess reinsured per individual claim | 2,000,000 | 1,700,000 | |||||
Group Life Mortality | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Amount of the excess reinsured per individual claim | 250,000 | ||||||
Morbidity | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Amount of the excess reinsured per individual claim | 8,000 | ||||||
Two Highly Rated Insurers | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Reinsurance recoverables | $ 201,300,000 | $ 191,500,000 | $ 201,300,000 | $ 191,500,000 | |||
Reinsurer Concentration Risk | Two Highly Rated Insurers | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Concentration risk percentage | 32.00% | 32.00% | |||||
AM Best, Rating A-, or Higher | Reinsurer Concentration Risk | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Concentration risk percentage | 97.50% | 97.90% | |||||
Predecessor Company | |||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||
Reduction of policyholder benefits and claims | $ 3,500,000 | $ 70,100,000 |
Reinsurance - Net Life Insuranc
Reinsurance - Net Life Insurance in Force (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Direct life insurance in force | $ 109,179.4 | $ 86,142.8 | |
Amounts assumed from other companies | 188.1 | 187 | |
Amounts ceded to other companies | (26,473.9) | (24,452.4) | |
Net life insurance in force | $ 82,893.6 | $ 61,877.4 | |
Percentage of amount assumed to net | 0.23% | 0.30% | |
Percentage of amount ceded to direct | 24.25% | 28.39% | |
Predecessor Company | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Direct life insurance in force | $ 76,853.1 | ||
Amounts assumed from other companies | 184.7 | ||
Amounts ceded to other companies | (23,558.3) | ||
Net life insurance in force | $ 53,479.5 | ||
Percentage of amount assumed to net | 0.35% | ||
Percentage of amount ceded to direct | 30.65% |
Reinsurance - Components of Rei
Reinsurance - Components of Reinsurance Recoverables (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||
Future policy benefits | $ 54.5 | |
Total reinsurance recoverables | 318.2 | $ 298.8 |
Life insurance | ||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||
Funds held under deposit contracts | 102.4 | 99.8 |
Future policy benefits | 134.3 | 130.9 |
Paid claims, expense allowance, premium tax recoverables and other | 18.7 | 3.7 |
Policy and contract claims | 5.8 | 6.9 |
Total reinsurance recoverables | 261.2 | 241.3 |
Accident and health insurance | ||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||
Future policy benefits | 40.3 | 47.6 |
Paid claims, expense allowance, premium tax recoverables and other | 4 | 1.9 |
Policy and contract claims | 12.7 | 8 |
Total reinsurance recoverables | $ 57 | $ 57.5 |
Reinsurance - Effects of Reinsu
Reinsurance - Effects of Reinsurance on Premiums and Policy Fees and Contract Charges (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 11 Months Ended | 12 Months Ended | ||
Jan. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2015 | |
Direct: | ||||||
Total direct | $ 753.8 | $ 969.8 | ||||
Total assumed | 0.3 | 0.9 | ||||
Ceded: | ||||||
Total ceded | (36.6) | (71.2) | ||||
Total premiums | $ 506.8 | $ 441.7 | 717.5 | 899.5 | ||
Policy fees and contract charges: | ||||||
Direct life insurance | 195.2 | 245.4 | ||||
Ceded life insurance | (9.1) | (11.7) | ||||
Total policy fees and contract charges | 186.1 | 233.7 | ||||
Total premiums and other amounts assessed to policyholders | $ 903.6 | $ 1,133.2 | ||||
Total premiums and other amounts assessed to policyholders | 0.03% | 0.08% | ||||
Predecessor Company | ||||||
Direct: | ||||||
Total direct | $ 67.4 | $ 799.1 | ||||
Total assumed | 0 | 0.1 | ||||
Ceded: | ||||||
Total ceded | (6.2) | (82.6) | ||||
Total premiums | 61.2 | 716.6 | ||||
Policy fees and contract charges: | ||||||
Direct life insurance | 16 | 180 | ||||
Ceded life insurance | (0.5) | (8.6) | ||||
Total policy fees and contract charges | 15.5 | 171.4 | ||||
Total premiums and other amounts assessed to policyholders | $ 76.7 | $ 888 | ||||
Total premiums and other amounts assessed to policyholders | 0.00% | 0.01% | ||||
Accident and health insurance | ||||||
Direct: | ||||||
Total direct | $ 626.3 | $ 798.7 | ||||
Ceded: | ||||||
Total ceded | (0.6) | (26.4) | ||||
Accident and health insurance | Predecessor Company | ||||||
Direct: | ||||||
Total direct | $ 56.7 | $ 676 | ||||
Ceded: | ||||||
Total ceded | (4) | (43.5) | ||||
Life insurance | ||||||
Direct: | ||||||
Total direct | 127.5 | 171.1 | ||||
Ceded: | ||||||
Total ceded | $ (36) | $ (44.8) | ||||
Life insurance | Predecessor Company | ||||||
Direct: | ||||||
Total direct | 10.7 | 123.1 | ||||
Ceded: | ||||||
Total ceded | $ (2.2) | $ (39.1) |
Liability for Unpaid Claims a_3
Liability for Unpaid Claims and Claim Adjustment Expenses - Unpaid Claims and Claims Adjustment Expenses (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 11 Months Ended | 12 Months Ended | |||
Jan. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2015 | Dec. 31, 2014 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||||
Balance, beginning of period | $ 196.6 | $ 152.8 | $ 152.8 | ||||
Future policy benefits | 54.5 | ||||||
Paid related to insured events of: | |||||||
Balance, end of period | 250.6 | $ 152.8 | 196.6 | ||||
Medical Stop-Loss | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||||
Balance, beginning of period | 153.1 | 114.6 | 113.1 | 114.6 | |||
Future policy benefits | $ 3.4 | 7.9 | 11.2 | 7.7 | 12.4 | ||
Net balance, beginning of period | 140.7 | 106.9 | 109.7 | 106.9 | |||
Incurred related to insured events of: | |||||||
The current year | 249.8 | 239.2 | 351.9 | 464.8 | |||
Prior years | (11.7) | 4.8 | (5.2) | 3.3 | |||
Total incurred | 238.1 | 244 | 346.7 | 468.1 | |||
Paid related to insured events of: | |||||||
The current year | 93.6 | 87.4 | 276.7 | 331.1 | |||
Prior years | 118.1 | 100.2 | 72.8 | 103.2 | |||
Total paid | 211.7 | 187.6 | 349.5 | 434.3 | |||
Net balance, end of period | 109.7 | 167.1 | 163.3 | 106.9 | 140.7 | ||
Balance, end of period | 113.1 | 175 | 174.5 | 114.6 | 153.1 | ||
Group Life and DI and Other | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||||
Balance, beginning of period | 213.8 | 182.9 | 149.4 | 182.9 | |||
Future policy benefits | 80.5 | 55.1 | 46.7 | ||||
Net balance, beginning of period | 167.1 | 127.8 | 68.9 | 127.8 | |||
Incurred related to insured events of: | |||||||
The current year | 221.9 | 261.3 | |||||
Prior years | 10.5 | 2.7 | |||||
Total incurred | 232.4 | 264 | |||||
Paid related to insured events of: | |||||||
The current year | 137.9 | 172.3 | |||||
Prior years | 35.6 | 52.4 | |||||
Total paid | 173.5 | 224.7 | |||||
Net balance, end of period | 68.9 | 127.8 | 167.1 | ||||
Balance, end of period | 149.4 | 182.9 | 213.8 | ||||
Group Life and DI | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||||
Balance, beginning of period | 184.2 | 149.9 | 149.9 | ||||
Future policy benefits | 41.1 | 42.1 | 48.4 | 41.9 | |||
Net balance, beginning of period | 142.3 | 101.5 | 101.5 | ||||
Incurred related to insured events of: | |||||||
The current year | 103.5 | 71.1 | |||||
Prior years | 0 | 3.8 | |||||
Total incurred | 103.5 | 74.9 | |||||
Paid related to insured events of: | |||||||
The current year | 42.4 | 28.4 | |||||
Prior years | 31.6 | 22.8 | |||||
Total paid | 74 | 51.2 | |||||
Net balance, end of period | 171.8 | 125.2 | 101.5 | 142.3 | |||
Balance, end of period | 212.9 | 167.3 | 149.9 | 184.2 | |||
Other | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||||
Balance, beginning of period | 29.6 | 33 | 33 | ||||
Future policy benefits | 25.6 | 5.2 | 6.7 | 4.8 | |||
Net balance, beginning of period | 24.8 | 26.3 | 26.3 | ||||
Incurred related to insured events of: | |||||||
The current year | 61.7 | 53.4 | |||||
Prior years | 1.4 | (1.5) | |||||
Total incurred | 63.1 | 51.9 | |||||
Paid related to insured events of: | |||||||
The current year | 37.6 | 33.4 | |||||
Prior years | 18.8 | 17.3 | |||||
Total paid | 56.4 | 50.7 | |||||
Net balance, end of period | 31.5 | 27.5 | 26.3 | 24.8 | |||
Balance, end of period | $ 57.1 | $ 32.7 | 33 | $ 29.6 | |||
Predecessor Company | Medical Stop-Loss | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||||
Balance, beginning of period | 122.9 | 113.1 | $ 113.3 | ||||
Future policy benefits | 3.4 | 3.6 | $ 2.8 | ||||
Net balance, beginning of period | 119.3 | 109.7 | 110.5 | ||||
Incurred related to insured events of: | |||||||
The current year | 28.1 | 371.4 | |||||
Prior years | (0.5) | (7.6) | |||||
Total incurred | 27.6 | 363.8 | |||||
Paid related to insured events of: | |||||||
The current year | 1.9 | 256.9 | |||||
Prior years | 35.3 | 98.1 | |||||
Total paid | 37.2 | 355 | |||||
Net balance, end of period | 109.7 | 119.3 | |||||
Balance, end of period | 113.1 | 122.9 | |||||
Predecessor Company | Group Life and DI and Other | |||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||||
Balance, beginning of period | 144.3 | 149.4 | 126.3 | ||||
Future policy benefits | 80.5 | 81.3 | $ 81.1 | ||||
Net balance, beginning of period | 63 | $ 68.9 | 45.2 | ||||
Incurred related to insured events of: | |||||||
The current year | 14.4 | 163.6 | |||||
Prior years | 3 | 7.8 | |||||
Total incurred | 17.4 | 171.4 | |||||
Paid related to insured events of: | |||||||
The current year | 1.7 | 118.6 | |||||
Prior years | 9.8 | 35 | |||||
Total paid | 11.5 | 153.6 | |||||
Net balance, end of period | 68.9 | 63 | |||||
Balance, end of period | $ 149.4 | $ 144.3 | |||||
Minimum | |||||||
Paid related to insured events of: | |||||||
Reinsurance rates of long-term DI business | 45.00% | ||||||
Maximum | |||||||
Paid related to insured events of: | |||||||
Reinsurance rates of long-term DI business | 90.00% |
Liability for Unpaid Claims a_4
Liability for Unpaid Claims and Claim Adjustment Expenses - Liabilities for Unpaid Claims, Net of Reinsurance (Details) $ in Millions | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($)claim | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Short duration contracts, Total liabilities for unpaid claims, net of reinsurance | $ 301.5 | |||||
Medical Stop-Loss | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Short duration contracts, Incurred Claims, Net of Reinsurance | 852.7 | |||||
Short duration contracts, Cumulative Paid Claims, Net of Reinsurance | 712 | |||||
Short duration contracts, Total liabilities for unpaid claims, net of reinsurance | 140.7 | |||||
Short duration contracts, Related IBNR Reserves | $ 147 | 115.3 | ||||
Group Life and DI | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Short duration contracts, Incurred Claims, Net of Reinsurance | 437.9 | |||||
Short duration contracts, Cumulative Paid Claims, Net of Reinsurance | 283.6 | |||||
Short duration contracts, Liabilities for unpaid claims prior to 2016, net of reinsurance | 2.7 | |||||
Short duration contracts, Total liabilities for unpaid claims, net of reinsurance | 157 | |||||
Short duration contracts, Related IBNR Reserves | 53.5 | 43.1 | ||||
2013 | Group Life and DI | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Short duration contracts, Incurred Claims, Net of Reinsurance | 27.5 | $ 26.6 | $ 23 | $ 23.5 | $ 21.9 | |
Short duration contracts, Cumulative Paid Claims, Net of Reinsurance | 22.8 | 22 | 21.3 | 19.7 | $ 15.1 | |
Short duration contracts, Related IBNR Reserves | $ 0 | |||||
Short duration contracts, Cumulative Number of Reported Claims | claim | 16,249 | |||||
2014 | Group Life and DI | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Short duration contracts, Incurred Claims, Net of Reinsurance | $ 56.1 | 56.2 | 42.1 | 41.3 | ||
Short duration contracts, Cumulative Paid Claims, Net of Reinsurance | 39.8 | 35.9 | 32.6 | $ 25.3 | ||
Short duration contracts, Related IBNR Reserves | $ 0 | |||||
Short duration contracts, Cumulative Number of Reported Claims | claim | 30,678 | |||||
2015 | Group Life and DI | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Short duration contracts, Incurred Claims, Net of Reinsurance | $ 90.8 | 92.1 | 73.6 | |||
Short duration contracts, Cumulative Paid Claims, Net of Reinsurance | 66.1 | 57.1 | $ 39.9 | |||
Short duration contracts, Related IBNR Reserves | $ 0 | |||||
Short duration contracts, Cumulative Number of Reported Claims | claim | 37,966 | |||||
2016 | Medical Stop-Loss | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Short duration contracts, Incurred Claims, Net of Reinsurance | $ 387.9 | 380 | ||||
Short duration contracts, Cumulative Paid Claims, Net of Reinsurance | 380.9 | 278.5 | ||||
Short duration contracts, Liabilities for unpaid claims prior to 2016, net of reinsurance | 0 | |||||
Short duration contracts, Related IBNR Reserves | $ 5.8 | |||||
Short duration contracts, Cumulative Number of Reported Claims | claim | 4,806 | |||||
2016 | Group Life and DI | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Short duration contracts, Incurred Claims, Net of Reinsurance | $ 105.6 | 106.5 | ||||
Short duration contracts, Cumulative Paid Claims, Net of Reinsurance | 74.2 | $ 53.4 | ||||
Short duration contracts, Related IBNR Reserves | $ 0.7 | |||||
Short duration contracts, Cumulative Number of Reported Claims | claim | 35,152 | |||||
2017 | Medical Stop-Loss | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Short duration contracts, Incurred Claims, Net of Reinsurance | $ 464.8 | |||||
Short duration contracts, Cumulative Paid Claims, Net of Reinsurance | 331.1 | |||||
Short duration contracts, Related IBNR Reserves | 9.6 | $ 109.5 | ||||
Short duration contracts, Cumulative Number of Reported Claims | claim | 2,992 | |||||
2017 | Group Life and DI | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Short duration contracts, Incurred Claims, Net of Reinsurance | $ 157.9 | |||||
Short duration contracts, Cumulative Paid Claims, Net of Reinsurance | 80.7 | |||||
Short duration contracts, Related IBNR Reserves | 7.3 | $ 42.4 | ||||
Short duration contracts, Cumulative Number of Reported Claims | claim | 36,690 | |||||
2018 | Medical Stop-Loss | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Short duration contracts, Related IBNR Reserves | 137.4 | |||||
2018 | Group Life and DI | ||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||
Short duration contracts, Related IBNR Reserves | $ 46.2 |
Liability for Unpaid Claims a_5
Liability for Unpaid Claims and Claim Adjustment Expenses - Reconciliation (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Jan. 31, 2016 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Net outstanding liabilities for unpaid claims | $ 301.5 | ||||
Total reinsurance recoverable on unpaid claims | 54.5 | ||||
Insurance lines other than short duration, net | 25.7 | ||||
Impact of discounting | (14.8) | ||||
Total gross liability for unpaid claims | 366.9 | ||||
Medical Stop-Loss | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Net outstanding liabilities for unpaid claims | 140.7 | ||||
Total reinsurance recoverable on unpaid claims | $ 7.9 | 12.4 | $ 11.2 | $ 7.7 | $ 3.4 |
Group Life and DI | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Net outstanding liabilities for unpaid claims | 157 | ||||
Total reinsurance recoverable on unpaid claims | $ 41.1 | 41.9 | $ 42.1 | $ 48.4 | |
Other | |||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | |||||
Net outstanding liabilities for unpaid claims | 3.8 | ||||
Total reinsurance recoverable on unpaid claims | $ 0.2 |
Liability for Unpaid Claims a_6
Liability for Unpaid Claims and Claim Adjustment Expenses - Historical Payout Percentage (Details) - Group Life and DI | Dec. 31, 2017 |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 57.20% |
Year 2 | 16.20% |
Year 3 | 3.00% |
Year 4 | 0.60% |
Year 5 | 6.10% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 11 Months Ended | 12 Months Ended | ||
Jan. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||||
Income (loss) from operations before income taxes | $ 16 | $ 44.3 | $ (51.7) | $ 114.7 | ||
Tax provision (benefit) at U.S. Federal statutory rate | (18.1) | 40.2 | ||||
Impact of change in enacted tax rates on deferred tax balances | 0 | (151) | ||||
Investment tax credits | (52) | (37) | ||||
Other | (0.4) | 2.4 | ||||
Total provision (benefit) for income taxes | $ (4.9) | $ (3.8) | $ (70.5) | $ (145.4) | ||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||||
Tax provision (benefit) at U.S. Federal statutory rate (as a percentage) | 35.00% | 35.04795% | ||||
Impact of change in enacted tax rates on deferred tax balances (as a percentage) | 0.00% | (131.60%) | ||||
Investment tax credits (as a percentage) | 100.80% | (32.30%) | ||||
Other (as a percentage) | 0.60% | 2.10% | ||||
Provision (benefit) for income taxes (as a percentage) | 136.40% | (126.80%) | ||||
Predecessor Company | ||||||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||||
Income (loss) from operations before income taxes | $ (12.8) | $ 148.1 | ||||
Tax provision (benefit) at U.S. Federal statutory rate | (4.5) | 51.8 | ||||
Impact of change in enacted tax rates on deferred tax balances | 0 | 0 | ||||
Investment tax credits | (4.1) | (79.8) | ||||
Other | (0.3) | (2.3) | ||||
Total provision (benefit) for income taxes | $ (8.9) | $ (30.3) | ||||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||||
Tax provision (benefit) at U.S. Federal statutory rate (as a percentage) | 35.00% | 35.00% | ||||
Impact of change in enacted tax rates on deferred tax balances (as a percentage) | 0.00% | 0.00% | ||||
Investment tax credits (as a percentage) | 32.00% | (53.90%) | ||||
Other (as a percentage) | 2.40% | (1.50%) | ||||
Provision (benefit) for income taxes (as a percentage) | 69.40% | (20.40%) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
Deferred acquisition costs and value of business acquired adjustment | $ 16.9 | $ 7.5 |
Deferred income tax assets: | ||
Adjustments to life policy liabilities | 452.6 | 840.8 |
Deferred policy acquisition costs | 0 | 36.6 |
Other | 13.3 | 21.9 |
Total deferred income tax assets | 465.9 | 899.3 |
Deferred income tax liabilities: | ||
Deferred policy acquisition costs | 24.4 | 0 |
Basis adjustment on securities | 210.4 | 462 |
Unrealized gains on investment securities (net of DAC and VOBA adjustment: $16.9 and $7.5, respectively) | 146.5 | 76 |
Intangible assets | 325.7 | 605.1 |
Other | 10 | 9.6 |
Total deferred income tax liabilities | 717 | 1,152.7 |
Deferred income tax liability, net | $ 251.1 | $ 253.4 |
Dividends (Details)
Dividends (Details) - USD ($) | Mar. 07, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2018 |
Dividends Payable [Line Items] | ||||||
Dividends to Parent without Commissioner approval | $ 208,200,000 | |||||
Dividends | $ 50,000,000 | $ 50,000,000 | $ 80,000,000 | 50,000,000 | ||
Dividends recorded as a return of capital | 19,900,000 | |||||
Dividend, non-cash transfer of investment | 20,900,000 | |||||
Dividend, cash | $ 29,100,000 | |||||
Subsequent event | ||||||
Dividends Payable [Line Items] | ||||||
Dividends to Parent without Commissioner approval | $ 221,900,000 | |||||
Dividends | $ 25,000,000 |
Statutory Basis Information (De
Statutory Basis Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Symetra Life Insurance Company | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income | $ 267.8 | $ 43.4 | $ 205.6 |
Statutory capital and surplus | 2,218.9 | 2,082.4 | 2,081.5 |
Subsidiaries | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income | 11.1 | 7.3 | 9.4 |
Statutory capital and surplus | $ 135.9 | $ 134 | $ 138.1 |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2015 | |
Related Party Transactions [Abstract] | ||||
Receivables | $ 0.3 | $ 0.1 | ||
Payables | 0 | 17.1 | ||
Related Party Transaction [Line Items] | ||||
Payments related to commutation endorsements | 7.4 | 7.8 | ||
Shared services expenses allocated, net | 6.1 | 6.9 | ||
Concessions, general agent fees, administrative and underwriting fees | $ 8 | $ 10.7 | ||
Predecessor Company | ||||
Related Party Transaction [Line Items] | ||||
Payments related to commutation endorsements | $ 0.6 | $ 14.7 | ||
Shared services expenses allocated, net | 0.4 | 5.5 | ||
Concessions, general agent fees, administrative and underwriting fees | $ 0.9 | $ 11.7 |
Uncategorized Items - sya-20180
Label | Element | Value |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 1,600,000 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | 600,000 |
Predecessor [Member] | ||
Cash and Cash Equivalents, at Carrying Value | us-gaap_CashAndCashEquivalentsAtCarryingValue | $ 146,500,000 |