Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 05, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 000-55522 | |
Entity Registrant Name | NATIONAL WESTERN LIFE GROUP, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-3339380 | |
Entity Address, Address Line One | 10801 N. Mopac Expy Bldg 3 | |
Entity Address, City or Town | Austin, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78759 | |
City Area Code | (512) | |
Local Phone Number | 836-1010 | |
Title of 12(b) Security | Class A Common Stock, $0.01 par value | |
Trading Symbol | NWLI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001635984 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Class A | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 3,436,020 | |
Class B | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 200,000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Investments: | ||
Debt securities available-for-sale, at fair value (cost: $8,973,860 and $9,874,543) | $ 9,617,027 | $ 10,770,923 |
Debt securities trading, at fair value (cost: $1,056,183 and $0) | 1,066,454 | 0 |
Mortgage loans, net of allowance for credit losses ($3,238 and $2,486), ($2,729 and $0 at fair value) | 394,112 | 332,521 |
Policy loans | 71,640 | 74,083 |
Derivatives, index options | 114,840 | 132,821 |
Equity securities, at fair value (cost: $12,079 and $12,069) | 21,132 | 17,744 |
Other long-term investments | 126,604 | 104,113 |
Total investments | 11,411,809 | 11,432,205 |
Cash and cash equivalents | 395,833 | 581,059 |
Deferred policy acquisition costs | 470,382 | 382,080 |
Deferred sales inducements | 64,189 | 43,845 |
Value of business acquired | 158,167 | 162,968 |
Cost of reinsurance | 95,709 | 102,840 |
Accrued investment income | 87,856 | 88,323 |
Federal income tax receivable | 0 | 10,408 |
Amounts recoverable from reinsurer | 1,629,857 | 1,709,232 |
Other assets | 156,337 | 135,310 |
Total assets | 14,470,139 | 14,648,270 |
Future policy benefits: | ||
Universal life and annuity contracts | 9,029,419 | 9,035,316 |
Traditional life reserves | 899,855 | 898,103 |
Other policyholder liabilities | 134,417 | 138,480 |
Funds withheld liability | 1,594,020 | 1,697,591 |
Deferred Federal income tax liability | 114,736 | 145,126 |
Federal income tax payable | 6,030 | 0 |
Other liabilities | 151,818 | 193,904 |
Total liabilities | 11,930,295 | 12,108,520 |
COMMITMENTS AND CONTINGENCIES (Note 8) | ||
Common stock: | ||
Additional paid-in capital | 41,716 | 41,716 |
Accumulated other comprehensive income | 283,487 | 395,421 |
Retained earnings | 2,214,605 | 2,102,577 |
Total stockholders’ equity | 2,539,844 | 2,539,750 |
Total liabilities and stockholders' equity | 14,470,139 | 14,648,270 |
Class A | ||
Common stock: | ||
Common stock, value outstanding | 34 | 34 |
Class B | ||
Common stock: | ||
Common stock, value outstanding | $ 2 | $ 2 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt securities available for sale, amortized cost | $ 8,973,860 | $ 9,874,543 |
Debt Securities, trading, amortized cost | 1,056,183 | 0 |
Mortgage loans - allowance for possible losses | 3,238 | 2,486 |
Mortgage loans | 2,729 | 0 |
Equity securities - cost | $ 12,079 | $ 12,069 |
Class A | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 7,500,000 | 7,500,000 |
Common stock, shares issued (in shares) | 3,436,020 | 3,436,020 |
Common stock, shares outstanding (in shares) | 3,436,020 | 3,436,020 |
Class B | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000 | 200,000 |
Common stock, shares issued (in shares) | 200,000 | 200,000 |
Common stock, shares outstanding (in shares) | 200,000 | 200,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Premiums and other revenues: | ||||
Universal life and annuity contract charges | $ 34,060 | $ 36,869 | $ 68,949 | $ 72,175 |
Traditional life premiums | 22,112 | 22,741 | 44,696 | 46,263 |
Net investment income | 156,544 | 145,694 | 322,619 | 132,215 |
Other revenues | 6,034 | 7,586 | 11,448 | 11,240 |
Net realized investment gains: | ||||
Total other-than-temporary impairment (“OTTI”) gains | 0 | 2 | 0 | 4 |
Portion of OTTI (gains) recognized in other comprehensive income | 0 | (2) | 0 | (4) |
Net OTTI recognized in earnings | 0 | 0 | 0 | 0 |
Other net investment gains | 3,415 | 3,125 | 4,831 | 6,610 |
Total net realized investment gains | 3,415 | 3,125 | 4,831 | 6,610 |
Total revenues | 222,165 | 216,015 | 452,543 | 268,503 |
Benefits and expenses: | ||||
Life and other policy benefits | 35,904 | 33,431 | 73,793 | 67,065 |
Amortization of deferred transaction costs | 25,123 | 31,100 | 55,112 | 61,137 |
Universal life and annuity contract interest | 69,973 | 61,772 | 122,818 | 33,746 |
Other operating expenses | 28,468 | 29,154 | 59,803 | 48,976 |
Total benefits and expenses | 159,468 | 155,457 | 311,526 | 210,924 |
Earnings before Federal income taxes | 62,697 | 60,558 | 141,017 | 57,579 |
Federal income taxes | 12,798 | 12,145 | 28,989 | 11,228 |
Net earnings | 49,899 | 48,413 | 112,028 | 46,351 |
Class A | ||||
Benefits and expenses: | ||||
Net earnings | $ 48,488 | $ 47,044 | $ 108,860 | $ 45,040 |
Basic earnings per share: | ||||
Basic earnings per share (in dollars per share) | $ 14.11 | $ 13.69 | $ 31.68 | $ 13.11 |
Diluted earnings per share: | ||||
Diluted earnings per share (in dollars per share) | $ 14.11 | $ 13.69 | $ 31.68 | $ 13.11 |
Class B | ||||
Benefits and expenses: | ||||
Net earnings | $ 1,411 | $ 1,369 | $ 3,168 | $ 1,311 |
Basic earnings per share: | ||||
Basic earnings per share (in dollars per share) | $ 7.06 | $ 6.85 | $ 15.84 | $ 6.55 |
Diluted earnings per share: | ||||
Diluted earnings per share (in dollars per share) | $ 7.06 | $ 6.85 | $ 15.84 | $ 6.55 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 49,899 | $ 48,413 | $ 112,028 | $ 46,351 |
Unrealized gains (losses) on securities: | ||||
Net unrealized holding gains (losses) arising during period | 41,396 | 107,365 | (110,799) | 29,212 |
Net unrealized liquidity gains (losses) | 0 | 0 | 0 | 1 |
Reclassification adjustment for net amounts included in net earnings | (3,810) | (1,367) | (4,929) | (1,968) |
Net unrealized gains (losses) on securities | 37,586 | 105,998 | (115,728) | 27,245 |
Foreign currency translation adjustments | (71) | (92) | (76) | (131) |
Benefit plans: | ||||
Amortization of net prior service cost and net gain (loss) | 1,935 | (2,067) | 3,870 | (4,133) |
Other comprehensive income (loss) | 39,450 | 103,839 | (111,934) | 22,981 |
Comprehensive income | $ 89,349 | $ 152,252 | $ 94 | $ 69,332 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common stock: | Additional paid-in capital: | Accumulated other comprehensive income: | Unrealized gains (losses) on non-impaired securities: | Unrealized losses on impaired held-to-maturity securities: | Unrealized losses on impaired available-for-sale securities: | Foreign currency translation adjustments: | Benefit plan liability adjustment: | Retained earnings: | Retained earnings:Provision January 1, 2020 for adoption of new accounting guidance |
Total stockholders’ equity, beginning of period at Dec. 31, 2019 | $ 36 | $ 41,716 | $ 70,665 | $ (4) | $ (2) | $ 5,101 | $ (15,652) | $ 2,014,570 | $ (3,032) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Change in unrealized gains (losses) during period, net of tax | $ 29,212 | 27,244 | |||||||||
Amortization | 3 | ||||||||||
Change in shadow deferred policy acquisition costs | (2) | ||||||||||
Change in translation adjustments during period | (131) | ||||||||||
Amortization of net prior service cost and net gain (loss) | (4,133) | (4,133) | |||||||||
Net earnings | 46,351 | 46,351 | |||||||||
Total stockholders’ equity, end of period at Jun. 30, 2020 | 2,182,730 | 36 | 41,716 | $ 83,089 | 97,909 | (3) | (2) | 4,970 | (19,785) | 2,057,889 | |
Total stockholders’ equity, beginning of period at Mar. 31, 2020 | 36 | 41,716 | (8,089) | (3) | (2) | 5,062 | (17,718) | 2,009,476 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Change in unrealized gains (losses) during period, net of tax | 107,365 | 105,998 | |||||||||
Amortization | 1 | ||||||||||
Change in shadow deferred policy acquisition costs | (1) | ||||||||||
Change in translation adjustments during period | (92) | ||||||||||
Amortization of net prior service cost and net gain (loss) | (2,067) | (2,067) | |||||||||
Net earnings | 48,413 | 48,413 | |||||||||
Total stockholders’ equity, end of period at Jun. 30, 2020 | 2,182,730 | 36 | 41,716 | 83,089 | 97,909 | (3) | (2) | 4,970 | (19,785) | 2,057,889 | |
Total stockholders’ equity, beginning of period at Dec. 31, 2020 | 2,539,750 | 36 | 41,716 | 418,741 | 0 | 0 | 5,116 | (28,436) | 2,102,577 | $ 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Change in unrealized gains (losses) during period, net of tax | (110,799) | (115,728) | |||||||||
Amortization | 0 | ||||||||||
Change in shadow deferred policy acquisition costs | 0 | ||||||||||
Change in translation adjustments during period | (76) | ||||||||||
Amortization of net prior service cost and net gain (loss) | 3,870 | 3,870 | |||||||||
Net earnings | 112,028 | 112,028 | |||||||||
Total stockholders’ equity, end of period at Jun. 30, 2021 | 2,539,844 | 36 | 41,716 | 283,487 | 303,013 | 0 | 0 | 5,040 | (24,566) | 2,214,605 | |
Total stockholders’ equity, beginning of period at Mar. 31, 2021 | 36 | 41,716 | 265,427 | 0 | 0 | 5,111 | (26,501) | 2,164,706 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Change in unrealized gains (losses) during period, net of tax | 41,396 | 37,586 | |||||||||
Amortization | 0 | ||||||||||
Change in shadow deferred policy acquisition costs | 0 | ||||||||||
Change in translation adjustments during period | (71) | ||||||||||
Amortization of net prior service cost and net gain (loss) | 1,935 | 1,935 | |||||||||
Net earnings | 49,899 | 49,899 | |||||||||
Total stockholders’ equity, end of period at Jun. 30, 2021 | $ 2,539,844 | $ 36 | $ 41,716 | $ 283,487 | $ 303,013 | $ 0 | $ 0 | $ 5,040 | $ (24,566) | $ 2,214,605 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net earnings | $ 112,028 | $ 46,351 |
Adjustments to reconcile net earnings to net cash from operating activities: | ||
Universal life and annuity contract interest | 122,818 | 33,746 |
Surrender charges and other policy revenues | (13,301) | (15,027) |
Realized (gains) losses on investments | (4,831) | (6,610) |
Accretion/amortization of discounts and premiums, investments | 945 | 1,237 |
Depreciation and amortization | 6,631 | 5,992 |
Increase (decrease) in estimated credit losses on investments | 752 | 2,654 |
(Increase) decrease in value of debt securities trading | (10,271) | 0 |
(Increase) decrease in value of equity securities | (3,698) | 3,990 |
(Increase) decrease in value of derivative options | (68,190) | 66,385 |
(Increase) decrease in deferred policy acquisition and sales inducement costs, and value of business acquired | 2,876 | 36,144 |
(Increase) decrease in accrued investment income | 467 | 2,230 |
(Increase) decrease in reinsurance recoverable | 79,375 | 11,016 |
(Increase) decrease in cost of reinsurance | 7,131 | 0 |
(Increase) decrease in other assets | (2,485) | (3,113) |
Increase (decrease) in liabilities for future policy benefits | (95,970) | 10,463 |
Increase (decrease) in other policyholder liabilities | (4,063) | 8,263 |
Increase (decrease) in Federal income tax liability | 16,438 | (2,290) |
Increase (decrease) in deferred Federal income tax | (635) | 13,357 |
Increase (decrease) in funds withheld liability | (103,571) | 0 |
Increase (decrease) in other liabilities | (36,690) | (6,209) |
Net cash provided by operating activities | 5,756 | 208,579 |
Proceeds from sales of: | ||
Debt securities available-for-sale | 1,099,043 | 0 |
Other investments | 10,853 | 2,312 |
Proceeds from maturities, redemptions, and prepayments of: | ||
Debt securities held-to-maturity | 0 | 375,315 |
Debt securities available-for-sale | 782,008 | 156,929 |
Debt securities trading | 8,102 | 0 |
Other investments | 9,685 | 7,421 |
Derivatives, index options | 108,397 | 67,729 |
Purchases of: | ||
Debt securities held-to-maturity | 0 | (169,704) |
Debt securities available-for-sale | (928,573) | (109,893) |
Debt securities trading | (1,064,566) | 0 |
Equity securities | (10,543) | (623) |
Derivatives, index options | (22,483) | (39,676) |
Other investments | (30,908) | (12,546) |
Property, equipment, and other productive assets | (4,823) | (275) |
Principal payments on mortgage loans | 8,053 | 3,971 |
Cost of mortgage loans acquired | (70,308) | (10,359) |
Decrease (increase) in policy loans | 2,443 | 3,197 |
Other (increases) decreases to funds withheld | (69,377) | 0 |
Net cash provided by (used in) investing activities | (172,997) | 273,798 |
Cash flows from financing activities: | ||
Deposits to account balances for universal life and annuity contracts | 329,742 | 223,630 |
Return of account balances on universal life and annuity contracts | (347,434) | (508,663) |
Principal payments under finance lease obligation | (197) | 0 |
Net cash provided by (used in) financing activities | (17,889) | (285,033) |
Effect of foreign exchange | (96) | (166) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (185,226) | 197,178 |
Cash, cash equivalents, and restricted cash at beginning of period | 581,059 | 253,525 |
Cash, cash equivalents and restricted cash at end of period | 395,833 | 450,703 |
Cash paid (received) during the period for: | ||
Interest | 19 | 38 |
Income taxes | 13,085 | 2 |
Noncash operating activities: | ||
Net deferral and amortization of sales inducements | $ 3,659 | $ (6,651) |
Consolidation and Basis of Pres
Consolidation and Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
CONSOLIDATION AND BASIS OF PRESENTATION | CONSOLIDATION AND BASIS OF PRESENTATION The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete annual financial statements. In the opinion of management, the accompanying Condensed Consolidated Financial Statements contain all adjustments necessary to present fairly the financial position and results of operations of National Western Life Group, Inc. ("NWLGI") and its wholly owned subsidiaries (collectively, the “Company”), on a basis consistent with the prior audited consolidated financial statements, as of June 30, 2021, and for the three and six months ended June 30, 2021 and June 30, 2020. Such adjustments are of a normal recurring nature. Certain reclasses of prior year balances have been made for comparison. In addition, certain segment information disclosed in Note 6 has been revised. The results of operations for the six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the full year. It is recommended that these Condensed Consolidated Financial Statements be read in conjunction with the audited consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 which is accessible free of charge through the Company's internet site at www.nwlgi.com or the Securities and Exchange Commission internet site at www.sec.gov . The Condensed Consolidated Balance Sheet at December 31, 2020 has been derived from the audited consolidated financial statements as of that date. The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of NWLGI and its wholly owned subsidiaries: National Western Life Insurance Company ("NWLIC" or "National Western"), Regent Care San Marcos Holdings, LLC, NWL Services, Inc., and N.I.S. Financial Services, Inc. ("NIS"). National Western's wholly owned subsidiaries include The Westcap Corporation, NWL Financial, Inc., NWLSM, Inc., Braker P III, LLC, and Ozark National Life Insurance Company ("Ozark National"). All significant intercorporate transactions and accounts have been eliminated in consolidation. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant estimates in the accompanying Condensed Consolidated Financial Statements include: (1) liabilities for future policy benefits, (2) valuation of derivative instruments, (3) recoverability and amortization of deferred policy acquisition costs ("DPAC"), deferred sales inducements ("DSI"), the value of business acquired ("VOBA"), and the cost of reinsurance ("COR"), (4) valuation allowances for deferred tax assets, (5) goodwill, (6) allowances for credit losses on debt securities and mortgage loans, and (7) commitments and contingencies. As a result of executing a funds withheld coinsurance agreement at December 31, 2020, the Company implemented accounting policies related to trading debt securities and the embedded derivative on reinsurance in its financial statements. Trading securities represent debt securities that are included in the fund assets withheld as part of the funds withheld coinsurance agreements to support the policyholder liability obligations ceded to the reinsurer. Trading debt securities are reported in the accompanying Condensed Consolidated Financial Statements at their fair values with changes in their fair values reflected as a component of Net investment income in the Condensed Consolidated Statements of Earnings. Since these trading debt securities pertain to investment activities related to coinsurance agreements rather than as an income strategy based on active trading, they are classified as investing activities in the Condensed Consolidated Statements of Cash Flows. Under the terms of the coinsurance funds withheld agreement, while the assets are withheld, the associated interest and credit risk of these assets are transferred to the reinsurer creating an embedded derivative on reinsurance in the funds withheld liability. Accordingly, the Company is required to bifurcate the embedded derivative from the host contract in accordance with ASC 815-15. The bifurcated embedded derivative on reinsurance is computed as the fair value unrealized gain (loss) on the underlying funds withheld assets. This amount is included as a component of the funds withheld liability balance reported on the Condensed Consolidated Balance Sheets, with changes in the embedded derivative on reinsurance reported in Net investment income (loss) in the Condensed Consolidated Statements of Earnings. The embedded derivative on reinsurance is classified as a Level 2 financial instrument in the fair value hierarchy because its valuation input is the fair value market adjustments on the underlying Level 2 debt securities. See Note (10) Fair Values of Financial Instruments for further details of fair value disclosures. In the Condensed Consolidated Statements of Cash Flows, changes in the funds withheld liability are reported as operating activities. Realized gains on funds withheld assets are transferred to the reinsurer and reported as investing activities in the Condensed Consolidated Statements of Cash Flows. The table below shows the net unrealized gains and losses on available-for-sale securities that were reclassified out of accumulated other comprehensive income for the three and six months ended June 30, 2021 and June 30, 2020. Affected Line Item in the Amount Reclassified From Accumulated Other Comprehensive Income Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Other net investment gains $ 4,823 1,729 6,239 2,491 Earnings before Federal income taxes 4,823 1,729 6,239 2,491 Federal income taxes 1,013 363 1,310 523 Net earnings $ 3,810 1,366 4,929 1,968 |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS Recent accounting pronouncements not yet adopted In August 2018, the FASB issued ASU 2018-12 Financial Services-Insurance (Topic 944) - Targeted Improvements to the Accounting for Long-Duration Contracts . This update is aimed at improving the Codification as it relates to long-duration contracts which will improve the timeliness of recognizing changes in the liability for future policy benefits, simplify accounting for certain market-based options, simplify the amortization of deferred acquisition costs, and improve the effectiveness of required disclosures. Amendments include the following: A. Require insurance entity to (1) review and update assumptions used to measure cash flows at least annually (with changes recognized in net income) and (2) update discount rate assumption at each reporting date (with changes recognized in other comprehensive income). B. Require insurance entity to measure all market risk benefits associated with deposit (i.e. account balance) contracts at fair value, with change in fair value attributable to change in instrument-specific credit risk recognized in other comprehensive income. C. Simplify amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins and require those balances be amortized on constant level basis over expected term of related contract. Deferred acquisition costs are required to be written off for unexpected contract terminations but are not subject to impairment test. D. Require insurance entity to add disclosures of disaggregated rollforwards of beginning to ending balances of the liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities, and deferred acquisition costs. Insurance entity must also disclose information about significant inputs, judgments, assumptions, and methods used in measurement, including changes in those inputs, judgments, and assumptions, and the effect of those changes on measurement. These updates are required to be applied retrospectively to the earliest period presented in the financial statements for fiscal periods beginning after December 15, 2022, with early adoption permitted. The Company has performed a preliminary gap analysis and created a roadmap for implementation of this standard by the effective date and is evaluating the impact of the new guidance on its Consolidated Financial Statements. Accounting pronouncements adopted In December 2019, the FASB issued ASU 2019-12 Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740) , which simplifies various aspects of the income tax accounting guidance and will be applied using different approaches depending on the specific amendment. The amendments are effective for fiscal periods beginning after December 15, 2020. Early adoption is permitted. The adoption of this ASU did not have a material effect on the results of operations or financial position of the Company. In June 2016, the FASB released ASU 2016-13, Financial Instruments - Credit Losses , which revises the credit loss recognition criteria for certain financial assets measured at amortized cost. The new guidance replaces the existing incurred loss recognition model with an expected loss recognition model ("CECL"). The objective of the CECL model is for the reporting entity to recognize its estimate of current expected credit losses for affected financial assets in a valuation allowance deducted from the amortized cost basis of the related financial assets that results in presenting the net carrying value of the financial assets at the amount expected to be collected. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. The amendments in this Update add clarification and correction to ASU 2016-13 around expected recoveries for purchased financial assets with credit deterioration, transition relief for troubled debt restructurings, disclosures related to accrued interest receivables, and financial assets secured by collateral maintenance provisions. The guidance for these pronouncements was effective for interim and annual periods beginning after December 15, 2019, and for most affected instruments must be adopted using a modified retrospective approach, with a cumulative effect adjustment recorded to beginning retained earnings. Effective January 1, 2020, the Company adopted the expected loss recognition model related to mortgage loans, debt securities held to maturity, and reinsurance recoverable using a modified retrospective approach. The change in accounting, net of tax, of $3.0 million was recorded as a charge to retained earnings in the first quarter of 2020 reflecting initial allowance for estimated credit losses balances of $1.2 million on mortgage loans and $3.3 million on debt securities held to maturity. The estimated credit losses for reinsurance recoverable were immaterial to the financial statements, but are monitored on a quarterly basis for any changes. Refer to Note (9) Investments for more information. Certain disclosures required by ASU 2016-13 are not included in the Consolidated Financial Statements as the impact of this standard was not material. Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the SEC did not, or are not believed by management to, have a material impact on the Company’s present or future Consolidated Financial Statements. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY Robert L. Moody, Sr., through the Robert L. Moody Revocable Trust, controls 99.0% of the total outstanding shares of the Company's Class B common stock as of June 30, 2021. Holders of the Company's Class A common stock elect one-third of the Board of Directors of the Company, and holders of the Class B common stock elect the remainder. Any cash or in-kind dividends paid on each share of Class B common stock are to be only one-half of the cash or in-kind dividends paid on each share of Class A common stock. In the event of liquidation of the Company, the Class A stockholders will receive the par value of their shares; then the Class B stockholders shall receive the par value of their shares; and the remaining net assets of the Company shall be divided between the stockholders of both Class A and Class B stock based upon the number of shares held. As the sole owner of National Western, all dividends declared by National Western are payable entirely to NWLGI and are eliminated in consolidation. National Western is restricted by state insurance laws as to dividend amounts which may be paid to stockholders without prior approval from the Colorado Division of Insurance. The restrictions are based on the lesser of statutory earnings from operations, excluding capital gains, or 10% of statutory surplus of National Western as of the previous year-end. Under these guidelines the maximum dividend payment which may be made without prior approval in 2021 is $10.0 million. Ozark National is similarly restricted under the state insurance laws of Missouri as to dividend amounts which may be paid to stockholders without prior approval to the greater of 10.0% of the statutory surplus of the company from the preceding year-end or the company's net gain from operations, excluding capital gains, from the prior calendar year. Based upon this restriction, the maximum dividend payment which may be made in 2021 without prior approval is $20.0 million. All dividends declared by Ozark National are payable entirely to NWLIC as the sole owner and are eliminated in consolidation. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share of common stock are computed by dividing net earnings available to each class of common stockholders on an as if distributed basis by the weighted-average number of common shares outstanding for the period. Diluted earnings per share, by definition, reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock, that then shared in the distributed earnings of each class of common stock. U.S. GAAP requires a two-class presentation for the Company's two classes of common stock. The Company currently has no share-based compensation awards outstanding that could be redeemed for shares of common stock. Net earnings for the periods shown below are allocated between Class A shares and Class B shares based upon (1) the proportionate number of shares issued and outstanding as of the end of the period, and (2) the per share dividend rights of the two classes under the Company's Restated Certificate of Incorporation (the Class B dividend per share is equal to one-half the Class A dividend per share). Three Months Ended June 30, 2021 2020 Class A Class B Class A Class B (In thousands except per share amounts) Numerator for Basic and Diluted Earnings Per Share: Net earnings $ 49,899 48,413 Dividends - Class A shares — — Dividends - Class B shares — — Undistributed earnings $ 49,899 48,413 Allocation of net earnings: Dividends $ — — — — Allocation of undistributed earnings 48,488 1,411 47,044 1,369 Net earnings $ 48,488 1,411 47,044 1,369 Denominator: Basic earnings per share - weighted-average shares 3,436 200 3,436 200 Effect of dilutive stock options — — — — Diluted earnings per share - adjusted weighted-average shares for assumed conversions 3,436 200 3,436 200 Basic earnings per share $ 14.11 7.06 13.69 6.85 Diluted earnings per share $ 14.11 7.06 13.69 6.85 Six Months Ended June 30, 2021 2020 Class A Class B Class A Class B (In thousands except per share amounts) Numerator for Basic and Diluted Earnings Per Share: Net earnings $ 112,028 46,351 Dividends - Class A shares — — Dividends - Class B shares — — Undistributed earnings $ 112,028 46,351 Allocation of net earnings: Dividends $ — — — — Allocation of undistributed earnings 108,860 3,168 45,040 1,311 Net earnings $ 108,860 3,168 45,040 1,311 Denominator: Basic earnings per share - weighted-average shares 3,436 200 3,436 200 Effect of dilutive stock options — — — — Diluted earnings per share - adjusted weighted-average shares for assumed conversions 3,436 200 3,436 200 Basic earnings per share $ 31.68 15.84 13.11 6.55 Diluted earnings per share $ 31.68 15.84 13.11 6.55 |
Pension and Other Postretiremen
Pension and Other Postretirement Plans | 6 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
PENSION AND OTHER POSTRETIREMENT PLANS | PENSION AND OTHER POSTRETIREMENT PLANS (A) Defined Benefit Pension Plans National Western sponsors a qualified defined benefit pension plan covering employees enrolled prior to 2008. The plan provides benefits based on the participants' years of service and compensation. The Company makes annual contributions to the plan that comply with the minimum funding provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"). On October 19, 2007, National Western's Board of Directors approved an amendment to freeze the pension plan as of December 31, 2007. The freeze ceased future benefit accruals to all participants and closed the plan to any new participants. In addition, all participants became immediately 100% vested in their accrued benefits as of that date. As participants are no longer earning a credit for service, future qualified defined benefit plan expense is projected to be minimal. Fair values of plan assets and liabilities are measured as of the prior December 31 for each year. The following table summarizes the components of net periodic benefit cost. Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (In thousands) Service cost $ 30 27 60 54 Interest cost 131 169 263 337 Expected return on plan assets (356) (316) (712) (631) Amortization of net loss 135 145 269 290 Net periodic benefit cost $ (60) 25 (120) 50 The service cost shown above for each period represents plan expenses expected to be paid out of plan assets. Under the clarified rules of the Pension Protection Act, plan expenses paid from plan assets are to be included in the plan's service cost component. The Company's minimum required contribution for the 2021 plan year is $0.0 million. There was $0.7 million in planned contributions remaining for the 2020 plan year as of June 30, 2021. As of June 30, 2021, the Company has made $0.2 million in contributions to the plan for the 2020 plan year and $0.0 million in contributions to the plan for the 2021 plan year. The components of net periodic benefit cost including service cost are reported in the line item “Other operating expenses” in the Condensed Consolidated Statements of Earnings. National Western also sponsors three non-qualified defined benefit pension plans. The first plan covers certain senior officers and provides benefits based on the participants' years of service and compensation. The primary pension obligations and administrative responsibilities of the plan are maintained by a pension administration firm, which is a subsidiary of American National Group, Inc. ("American National"), a related party. American National has guaranteed the payment of pension obligations under the plan. However, the Company has a contingent liability with respect to the plan should these entities be unable to meet their obligations under the existing agreements. Also, the Company has a contingent liability with respect to the plan in the event that a plan participant continues employment with National Western beyond age seventy, the aggregate average annual participant salary increases exceed 10% per year, or any additional employees become eligible to participate in the plan. If any of these conditions are met, the Company would be responsible for any additional pension obligations resulting from these items. Amendments were made to the plan to allow an additional employee to participate and to change the benefit formula for the then Chairman of the Company. As previously mentioned, these additional obligations are a liability to the Company. Effective December 31, 2004, this plan was frozen with respect to the continued accrual of benefits of the then Chairman and the then President of the Company in order to comply with law changes under the American Jobs Creation Act of 2004 ("Act"). Effective July 1, 2005, National Western established a second non-qualified defined benefit plan for the benefit of the then Chairman of the Company. This plan is intended to provide for post-2004 benefit accruals that mirror and supplement the pre-2005 benefit accruals under the previously discussed non-qualified plan, while complying with the requirements of the Act. Effective November 1, 2005, National Western established a third non-qualified defined benefit plan for the benefit of the then President of the Company. This plan is intended to provide for post-2004 benefit accruals that supplement the pre-2005 benefit accruals under the first non-qualified plan as previously discussed, while complying with the requirements of the Act. The following table summarizes the components of net periodic benefit costs for the non-qualified defined benefit plans. Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (In thousands) Service cost $ 309 303 618 605 Interest cost 260 337 521 675 Amortization of prior service cost 15 15 30 30 Amortization of net loss 1,283 1,445 2,565 2,890 Net periodic benefit cost $ 1,867 2,100 3,734 4,200 As the plans are not funded, there is no expected return on plan assets shown in the net periodic benefit cost table above. The Company expects to contribute $2.0 million to these plans in 2021. As of June 30, 2021, the Company has contributed $0.9 million to the plans. The components of net periodic benefit cost including service cost are reported in the line item “Other operating expenses” in the Condensed Consolidated Statements of Earnings. Ozark National and NIS have no defined benefit plans. (B) Postretirement Employment Plans Other Than Pension National Western sponsors two healthcare plans that were amended in 2004 to provide postretirement benefits to certain fully-vested individuals. The plans are unfunded. The following table summarizes the components of net periodic benefit costs. Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (In thousands) Interest cost $ 37 42 74 83 Amortization of net loss 73 39 146 79 Net periodic benefit cost $ 110 81 220 162 As the plans are not funded, there is no expected return on plan assets shown in the net periodic benefit cost table above. The Company expects to contribute minimal amounts to the plans in 2021. Ozark National and NIS do not offer postemployment benefits. The components of net periodic benefit cost including service cost are reported in the line item “Other operating expenses” in the Condensed Consolidated Statements of Earnings. |
Segment and Other Operating Inf
Segment and Other Operating Information | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT AND OTHER OPERATING INFORMATION | SEGMENT AND OTHER OPERATING INFORMATION The Company defines its reportable operating segments as domestic life insurance, international life insurance, annuities, and ONL and Affiliates (previously referred to as "Acquired Businesses"). These segments are organized based on product types, geographic marketing areas, and business groupings. Ozark National and NIS have been combined into a separate segment given its inter-related marketing and sales approach which consists of a coordinated sale of a non-participating whole life insurance product (Ozark National) and a mutual fund investment product (NIS). A fifth category "All Others" primarily includes investments and earnings of non-operating subsidiaries as well as other remaining investments and assets not otherwise supporting specific segment operations. A summary of segment information as of June 30, 2021 and December 31, 2020 for the Condensed Consolidated Balance Sheet items and for the three and six months ended June 30, 2021 and June 30, 2020 for the Condensed Consolidated Statements of Earnings is provided below. Condensed Consolidated Balance Sheet Items: June 30, 2021 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Deferred transaction costs $ 112,847 130,696 377,369 167,535 — 788,447 Total segment assets 1,716,487 1,021,962 9,626,473 1,108,040 381,901 13,854,863 Future policy benefits 1,443,093 783,053 6,929,958 773,170 — 9,929,274 Other policyholder liabilities 17,991 12,695 89,115 14,616 — 134,417 Funds withheld liability — — 1,594,020 — — 1,594,020 December 31, 2020 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Deferred transaction costs $ 94,100 124,480 302,397 170,756 — 691,733 Total segment assets 3,242,794 1,034,280 7,976,588 1,117,509 382,149 13,753,320 Future policy benefits 1,337,174 798,952 7,028,860 768,433 — 9,933,419 Other policyholder liabilities 16,378 11,086 94,049 16,967 — 138,480 Funds withheld liability — — 1,697,591 — — 1,697,591 Condensed Consolidated Statements of Earnings: Three Months Ended June 30, 2021 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Premiums and contract revenues $ 12,475 20,656 3,742 19,299 — 56,172 Net investment income 28,247 13,847 100,199 6,780 7,471 156,544 Other revenues 31 44 1,389 3,273 1,297 6,034 Total revenues 40,753 34,547 105,330 29,352 8,768 218,750 Life and other policy benefits 5,007 5,302 9,829 15,766 — 35,904 Amortization of deferred transaction costs 153 6,163 16,378 2,429 — 25,123 Universal life and annuity contract interest 25,466 12,226 32,281 — — 69,973 Other operating expenses 5,482 4,646 11,864 4,933 1,543 28,468 Federal income taxes 958 1,268 7,115 1,258 1,481 12,080 Total expenses 37,066 29,605 77,467 24,386 3,024 171,548 Segment earnings $ 3,687 4,942 27,863 4,966 5,744 47,202 Six Months Ended June 30, 2021 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Premiums and contract revenues $ 26,373 40,836 7,672 38,764 — 113,645 Net investment income 52,090 25,963 219,923 13,354 11,289 322,619 Other revenues 52 72 2,763 6,199 2,362 11,448 Total revenues 78,515 66,871 230,358 58,317 13,651 447,712 Life and other policy benefits 11,117 9,677 19,830 33,169 — 73,793 Amortization of deferred transaction costs 5,613 11,555 32,825 5,119 — 55,112 Universal life and annuity contract interest 47,087 23,025 52,706 — — 122,818 Other operating expenses 12,929 9,420 24,794 9,679 2,981 59,803 Federal income taxes 364 2,711 20,591 2,115 2,193 27,974 Total expenses 77,110 56,388 150,746 50,082 5,174 339,500 Segment earnings $ 1,405 10,483 79,612 8,235 8,477 108,212 Three Months Ended June 30, 2020 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Premiums and contract revenues $ 12,009 23,061 4,699 19,841 — 59,610 Net investment income 21,475 11,153 97,666 6,549 8,851 145,694 Other revenues 1 (6) (8) 2,319 5,280 7,586 Total revenues 33,485 34,208 102,357 28,709 14,131 212,890 Life and other policy benefits 4,169 3,684 8,880 16,698 — 33,431 Amortization of deferred transaction costs 3,209 6,844 19,344 1,703 — 31,100 Universal life and annuity contract interest 19,172 9,492 33,108 — — 61,772 Other operating expenses 5,643 4,517 12,715 4,794 1,485 29,154 Federal income taxes 172 934 6,173 1,918 2,292 11,489 Total expenses 32,365 25,471 80,220 25,113 3,777 166,946 Segment earnings $ 1,120 8,737 22,137 3,596 10,354 45,944 Six Months Ended June 30, 2020 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Premiums and contract revenues $ 23,237 45,928 9,349 39,924 — 118,438 Net investment income 2,092 2,153 108,297 12,850 6,823 132,215 Other revenues 30 48 (4) 4,741 6,425 11,240 Total revenues 25,359 48,129 117,642 57,515 13,248 261,893 Life and other policy benefits 10,046 7,015 17,069 32,935 — 67,065 Amortization of deferred transaction costs 5,782 12,896 38,365 4,094 — 61,137 Universal life and annuity contract interest (2,521) (1,345) 37,612 — — 33,746 Other operating expenses 9,938 7,613 19,582 8,863 2,980 48,976 Federal income taxes 360 3,738 854 3,140 1,748 9,840 Total expenses 23,605 29,917 113,482 49,032 4,728 220,764 Segment earnings $ 1,754 18,212 4,160 8,483 8,520 41,129 Reconciliations of segment information to the Company's Condensed Consolidated Financial Statements are provided below. Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Premiums and Other Revenues : Premiums and contract revenues $ 56,172 59,610 113,645 118,438 Net investment income 156,544 145,694 322,619 132,215 Other revenues 6,034 7,586 11,448 11,240 Realized gains on investments 3,415 3,125 4,831 6,610 Total condensed consolidated premiums and other revenues $ 222,165 216,015 452,543 268,503 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Federal Income Taxes : Total segment Federal income taxes $ 12,080 11,489 27,974 9,840 Taxes on realized gains on investments 718 656 1,015 1,388 Total condensed consolidated Federal income taxes $ 12,798 12,145 28,989 11,228 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Net Earnings : Total segment earnings $ 47,202 45,944 108,212 41,129 Realized gains on investments, net of taxes 2,697 2,469 3,816 5,222 Total condensed consolidated net earnings $ 49,899 48,413 112,028 46,351 June 30, December 31, 2021 2020 (In thousands) Assets : Total segment assets $ 13,854,863 13,753,320 Other unallocated assets 615,276 894,950 Total condensed consolidated assets $ 14,470,139 14,648,270 |
Share-Based Payments
Share-Based Payments | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED PAYMENTS | SHARE-BASED PAYMENTS Effective June 20, 2008, the Company's shareholders approved a 2008 Incentive Plan (“2008 Plan”) which provided for the grant of any or all of the following types of awards to eligible employees: (1) stock options, including incentive stock options and nonqualified stock options; (2) stock appreciation rights ("SARs"), in tandem with stock options or freestanding; (3) restricted stock or restricted stock units; and, (4) performance awards. The number of shares of Class A, $1.00 par value, common stock which were allowed to be issued under the 2008 Plan, or as to which SARs or other awards were allowed to be granted, could not exceed 300,000. This plan was assumed by NWLGI from National Western pursuant to the terms of the holding company reorganization in 2015. On June 15, 2016, stockholders of NWLGI approved an amended and restated 2008 Plan ("Incentive Plan"), which extended the term of the 2008 Plan for ten years from the date of stockholder approval. The Incentive Plan includes additional provisions, most notably regarding the definition of performance objectives which could be used in the issuance of the fourth type of award noted above (performance awards). All of the employees of the Company and its subsidiaries are eligible to participate in the current Incentive Plan. In addition, directors of the Company are eligible to receive the same types of awards as employees except that they are not eligible to receive incentive stock options. Company directors, including members of the Compensation and Stock Option Committee, are eligible for nondiscretionary stock options. At the end of 2018, all stock options granted under the 2008 Plan had been exercised, forfeited, or expired. SARs granted prior to 2016 vest 20% annually following three years of service following the grant date. Employee SARs granted 2016 and thereafter vest 33.3% annually following one year of service from the date of the grant. Directors' SARs grants vest 20% annually following one year of service from the date of grant. Effective during August 2008, the Company adopted and implemented a limited stock buy-back program with respect to the 2008 Plan which provided stock option holders the additional alternative of selling shares acquired through the exercise of options directly back to the Company. Option holders could elect to sell such acquired shares back to the Company at any time within ninety (90) days after the exercise of options at the prevailing market price as of the date of notice of election. The buy-back program did not alter the terms and conditions of the 2008 Plan. This plan was assumed as well by NWLGI from National Western pursuant to the terms of the holding company reorganization. There are currently no stock options issued and outstanding. The Incentive Plan allows for certain other share or unit awards which are solely paid out in cash based on the value of the Company's shares, or changes therein, as well as the financial performance of the Company under pre-determined target performance metrics. Certain awards, such as restricted stock units ("RSUs") provide solely for cash settlement based upon the market price of the Company's Class A common shares, often referred to as "phantom stock-based awards" in equity compensation plans. Unlike share-settled awards, which have a fixed grant-date fair value, the fair value of unsettled or unvested liability awards is remeasured at the end of each reporting period based on the change in fair value of a share. The liability and corresponding expense are adjusted accordingly until the award is settled. For employees, the vesting period for RSUs is 100% at the end of 3 years from the grant date. RSUs granted prior to 2019 are payable in cash at the vesting date equal to the closing price of the Company's Class A common share on the three years anniversary date. RSUs granted in 2019 and forward are payable in cash at the 3 years vesting date equal to the 20-day moving average closing price of the Company’s Class A common share at that time. Other awards may involve performance share units ("PSUs") which are units granted at a specified dollar amount per unit, typically linked to the Company's Class A common share price, that are subsequently multiplied by an attained performance factor to derive the number of PSUs to be paid as cash compensation at the vesting date. PSUs also vest three years from the date of grant. For PSUs, the performance period begins the first day of the calendar year for which the PSUs are granted and runs three PSU awards covering the three year measurement period ended December 31, 2019 were paid out in the first quarter of 2020. The performance factor during the measurement period used to determine compensation payouts was 101.19% of the pre-defined metric target. PSU awards covering the three year measurement period ended December 31, 2020 were paid out in April 2021. The performance factor during the measurement period used to determine compensation payouts was 85.16% of the pre-defined metric target. Directors of the Company are eligible to receive RSUs under the Incentive Plan. Unlike RSUs granted to officers, the RSUs granted to directors vest one year from the date of grant. RSUs granted prior to 2019 are payable in cash at the vesting date equal to the closing price of the Company's Class A common share at that time. RSUs granted in 2019 and forward are payable in cash at the vesting date equal to the 20-day moving average closing price of the Company’s Class A common share at that time. No awards were granted to officers and directors during the six months ended June 30, 2021 and 2020. The Company uses the current fair value method to measure compensation costs for awards granted under the share-based plans. As of June 30, 2021 and December 31, 2020, the liability balance was $8.1 million and $6.2 million, respectively. A summary of awards by type and related activity is detailed below. Stock Options Outstanding Shares Shares Weighted- Stock Options: Balance at January 1, 2021 291,000 — $ — Exercised — — $ — Forfeited — — $ — Expired — — $ — Stock options granted — — $ — Balance at June 30, 2021 291,000 — $ — Liability Awards SAR RSU PSU Other Share/Unit Awards: Balance at January 1, 2021 144,248 16,449 24,282 Exercised (10,800) — (3,863) Forfeited (730) (157) — Granted — — — Balance at June 30, 2021 132,718 16,292 20,419 SARs, RSUs, and PSUs shown as forfeited in the above tables represent vested and unvested awards not exercised by plan participants upon their termination from the Company in accordance with the expiration provisions of the awards. The total intrinsic value of share-based compensation exercised and paid was $2.0 million and $1.9 million for the six months ended June 30, 2021 and 2020, respectively. The total fair value of SARs, RSUs, and PSUs vested during the six months ended June 30, 2021 and 2020 was $0.0 million and $1.8 million, respectively. No cash amounts were received from the exercise of stock options under the Plans during the periods reported. The following table summarizes information about SARs outstanding at June 30, 2021. There were no options outstanding as of June 30, 2021. SARs Outstanding Number Weighted- Number Exercise prices: $132.56 8,318 0.5 years 8,318 $210.22 23,450 2.4 years 23,450 $216.48 11,149 4.6 years 11,149 $311.16 9,531 5.6 years 9,531 $310.55 203 5.8 years 203 $334.34 9,018 6.4 years 9,018 $303.77 11,178 7.4 years 7,483 $252.91 19,323 8.4 years 6,509 $192.10 40,548 9.4 years — Totals 132,718 75,661 Aggregate intrinsic value (in thousands) $ 2,494 $ 1,184 The aggregate intrinsic value in the table above is based on the closing Class A stock price of $224.39 per share on June 30, 2021. The SARs shown above with exercise price of $132.56 have a remaining contractual life of less than one year. The holders for this grant have until the end of the contractual life of December 14, 2021 to exercise these holdings or otherwise forfeit the SAR grants held. In estimating the fair value of the SARs outstanding at June 30, 2021 and December 31, 2020, the Company employed the Black-Scholes option pricing model with assumptions detailed below. June 30, December 31, Expected term 0.5 to 9.4 years 1.0 to 9.9 years Expected volatility weighted-average 34.08 % 33.47 % Expected dividend yield 0.16 % 0.17 % Risk-free rate weighted-average 0.50 % 0.19 % The Company reviewed the contractual term relative to the SARs as well as perceived future behavior patterns of exercise. Volatility is based on the Company’s historical volatility over the expected term of the SARs by expected exercise date. The pre-tax compensation cost/(benefit) recognized in the financial statements related to these plans was $(0.5) million and $3.9 million for the three and six months ended June 30, 2021 and $2.4 million and $(3.8) million for the three and six months ended June 30, 2020, respectively. The related tax expense/(benefit) recognized was $0.1 million and $(0.8) million for the three and six months ended June 30, 2021 and $(0.5) million and $0.8 million for the three and six months ended June 30, 2020, respectively. As of June 30, 2021, the total pre-tax compensation expense related to non-vested share-based awards not yet recognized was $7.4 million. This amount is expected to be recognized over a weighted-average period of 1.3 years. The Company recognizes compensation cost over the graded vesting periods. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES (A) Legal Proceedings In the normal course of business, the Company is involved or may become involved in various legal actions in which claims for alleged economic and punitive damages have been or may be asserted, some for substantial amounts. In recent years, carriers offering life insurance and annuity products have faced litigation, including class action lawsuits, alleging improper product design, improper sales practices, and similar claims. As previously disclosed, the Company has been a defendant in prior years in such class action lawsuits. Given the uncertainty involved in these types of actions, the ability to make a reliable evaluation of the likelihood of an unfavorable outcome or an estimate of the amount of or range of potential loss is endemic to the particular circumstances and evolving developments of each individual matter on its own merits. On September 28, 2017, a purported shareholder derivative lawsuit was filed in the 122nd District Court of Galveston County, State of Texas entitled Robert L. Moody, Jr. derivatively on behalf of National Western Life Insurance Company and National Western Life Group, Inc. v. Ross Rankin Moody, et al., naming certain current and former directors and current officers as defendants. The complaint challenged the directors’ oversight of insurance sales to non-U.S. residents and alleged that the defendants breached their fiduciary duties in the conduct of their duties as board members by failing to act (i) on an informed basis and (ii) in good faith or with the honest belief that their actions were in the best interests of the Company. The complaint sought an undetermined amount of damages, attorneys’ fees and costs, and equitable relief, including the removal of the Company’s Chairman and Chief Executive Officer and other board members and/or officers of the Company. The Company believes that the claims in the complaint were baseless and without merit, will continue to vigorously defend this lawsuit, and was awarded reimbursement of legal costs and expenses from plaintiff as detailed below. The Company believes, based on information currently available, that the final outcome of this lawsuit will not have a material adverse effect on the Company’s business, results of operations, or consolidated financial position. The companies and directors filed their respective Pleas to the Jurisdiction ("Pleas") contesting the plaintiff's standing to even pursue this action, along with their Answers, on October 27, 2017. On December 14, 2017, plaintiff filed a Response to the Pleas and on December 21, 2017, the Court heard oral argument on the Pleas. Plaintiff then filed a First Amended Petition on January 11, 2018. The companies and directors filed a Supplement to the Pleas on January 30, 2018, to which plaintiff responded on February 1, 2018, and the companies and directors replied on February 9, 2018. On May 3, 2018, the Court issued a memorandum to all attorneys of record stating that the Court would grant the defendants' Pleas and asked the attorney for defendants to prepare and submit proposed orders/judgments granting the requested relief for consideration by the Court. The defendants filed such proposed order granting the Pleas on May 7, 2018. On May 16, 2018 the Court issued an Order granting the Pleas and dismissing Robert L. Moody, Jr.’s claims with prejudice, and plaintiff then filed a Motion to Transfer Venue (“MTTV”). Defendants filed an Application for Fees, seeking to recover defendants’ legal costs and expenses from plaintiff, and a Response to the MTTV on June 8, 2018. In response plaintiff filed a Motion to Vacate, a Response to the Application for Fees, and his own Request for Attorney’s Fees on July 5, 2018. Defendants filed a Response to the Motion to Vacate and to plaintiff’s Request for Attorney’s Fees on July 11, 2018, and the Court heard oral arguments on July 16, 2018. Plaintiff filed supplemental briefing in support of his July 5, 2018 filings on July 25, 2018, and defendants filed their response to plaintiff's supplemental briefing on July 27, 2018. On August 8, 2018 the Court issued an Order denying plaintiff's Motion to Vacate. Pursuant to the Court’s instructions, on October 5, 2018, defendants filed an Order Granting Application for Expenses. Defendants then filed a Motion for Entry of Final Judgment and a Request for Submission Date on Motion for Entry of Final Judgment on October 11, 2018, which the Court set as October 30, 2018. Plaintiff filed his Objection to Proposed Final Judgment and Objection to Proposed Order on Attorneys’ Fees on October 25, 2018, to which defendants filed a response on October 30, 2018. On November 11, 2018, the Court issued its Final Judgment: ordering Plaintiff to pay the companies $1,314,054 for reasonable and necessary fees and expenses, denying Plaintiff’s Motion to Transfer Venue, and dismissing Plaintiff’s counterclaim. Plaintiff appealed the Court’s Final Judgment to the First District Court of Appeals in Houston, TX. The court of appeals issued a panel decision on December 10, 2020 affirming the dismissal and award of attorneys’ fees and expenses to the companies. On January 22, 2021, Plaintiff filed a motion for rehearing of the affirmance of the award of attorneys’ fees and expenses. On July 27, 2021, the Court of Appeals vacated its December 10, 2020 judgment and withdrew its earlier opinion, and issued a new judgment and opinion again affirming the dismissal and award of attorneys’ fees and expenses to the companies. In April of 2019, National Western defended a two-week jury trial in which it was alleged that it committed actionable Financial Elder Abuse in its issuance of a $100,000 equity indexed annuity to the Plaintiff in the case of Williams v Pantaleoni et al , Case No. 17CV03462, Butte County California Superior Court. The Court entered an Amended Judgment on the Jury Verdict on July 27, 2019 against National Western in the amount of $14,949 for economic damages and $2.9 million in non-economic and punitive damages. National Western vigorously disputes the verdicts and the amounts awarded, and in furtherance of such, filed a Motion for Judgment Notwithstanding Jury Verdict and a Motion for New Trial, both of which were rejected by the Court. On September 9, 2019, NWLIC filed its Notice of Appeal. On November 11, 2019, the judge awarded the Plaintiff attorney’s fees in the amount of $1.26 million. Both the Plaintiff and NWLIC appealed this ruling. On June 11, 2021, the appellate court reversed the judgment and directed the trial court to enter judgment in favor of NWLIC. Plaintiff has filed an appeal with the Supreme Court of California. In the Form 10-Q for the period ended September 30, 2020, the Company reported that it experienced a data event in which an intruder accessed and exfiltrated certain data from the Company's network. As a result of this event, the Company reported in its Form 10-K for the year ended December 31, 2020, that it was aware of two proposed class actions filed against National Western, Mildred Baldwin, on behalf of herself and others similarly situated vs. National Western Life Insurance Company , Missouri Circuit Court for the 18th Judicial Circuit (Pettis County) filed February 16, 2021, and Douglas Dyrssen Sr., individually and on behalf of all others similarly situated vs. National Western Life Insurance Company and National Western Life Group, Inc. , United States District Court for the Eastern District of California filed March 8, 2021. The parties agreed to consolidate those two proposed class actions into a single proposed class action, Mildred Baldwin, on behalf of herself and others similarly situated vs. National Western Life Insurance Company , United States District Court for the Western District of Missouri. Baldwin is seeking an undetermined amount of damages, attorneys' fees and costs, injunctive relief, declaratory and other equitable relief, and enjoinment. National Western filed a Motion to Dismiss on July 16, 2021. On July 26, 2021, the parties filed a Joint Motion to Stay Pending Mediation, which the court denied. At this time, no prediction can be made as to the likelihood or amount of any recovery against National Western. It is possible other actions may be filed against the Company due to the data event. Although there can be no assurances, at the present time, the Company does not anticipate that the ultimate liability arising from such other potential, pending, or threatened legal actions will have a material adverse effect on the financial condition or operating results of the Company. Separately, Brazilian authorities commenced an investigation into possible violations of Brazilian criminal law in connection with the issuance of National Western insurance policies to Brazilian residents, and in assistance of such investigation a Commissioner appointed by the U.S. District Court for the Western District of Texas issued a subpoena in March of 2015 upon NWLIC to provide information relating to such possible violations. No conclusion can be drawn at this time as to its outcome or how such outcome may impact the Company’s business, results of operations or financial condition. National Western has been cooperating with the relevant governmental authorities in regard to this matter. (B) Financial Instruments In order to meet the financing needs of its customers in the normal course of business, the Company is a party to financial instruments with off-balance sheet risk. These financial instruments are commitments to extend credit which involve elements of credit and interest rate risk in excess of the amounts recognized in the Condensed Consolidated Balance Sheets. The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amounts, assuming that the amounts are fully advanced and that collateral or other security is of no value. Commitments to extend credit are legally binding agreements to lend to a customer that generally have fixed expiration dates or other termination clauses and may require payment of a fee. Commitments do not necessarily represent future liquidity requirements, as some could expire without being drawn upon. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The Company controls the credit risk of these transactions through credit approvals, limits, and monitoring procedures. The Company had $26.0 million commitments to fund new loans and no commitments to extend credit relating to existing loans at June 30, 2021. The Company evaluates each customer's creditworthiness on a case-by-case basis. The Company had commitments to make capital contributions to alternative investment funds of $210.2 million as of June 30, 2021. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS (A) Investment Gains and Losses The Company uses the specific identification method in computing realized gains and losses. The table below presents realized gains and losses for the periods indicated. Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Available-for-sale debt securities: Realized gains on disposal $ 4,823 1,730 6,239 2,491 Realized losses on disposal — — — — Held-to-maturity debt securities: Realized gains on disposal — 1,395 — 4,119 Realized losses on disposal — — — — Real estate gains (losses) (1,407) — (1,407) — Other (1) — (1) — Totals $ 3,415 3,125 4,831 6,610 Disposals in the held-to-maturity category during the three and six months ended June 30, 2020 represent calls initiated by the credit issuer of the debt security. At year-end 2020, the Company transferred all of its held-to-maturity debt securities to the available-for-sale category as the result of entering into a funds withheld reinsurance agreement effective December 31, 2020. The Company's policy was to initiate disposals of debt securities in the held-to-maturity category only in instances in which the credit status of the issuer came into question and the realization of all or a significant portion of the investment principal of the holding was deemed to be in jeopardy. For the three months ended June 30, 2021 and 2020 the percentage of total gains on bonds due to the call of securities was 100.0% and 99.9%, respectively. For the six months ended June 30, 2021 and 2020 the percentage of gains on bonds due to the call of securities was 100.0% and 99.8%, respectively. (B) Debt Securities The Company transferred all of its debt securities to the available-for-sale classification as of December 31, 2020. The table below presents amortized costs and fair values of debt securities available-for-sale at June 30, 2021. Debt Securities Available-for-Sale Amortized Gross Gross Fair Allowance for Credit Losses (In thousands) U.S. agencies $ 50,251 1,715 — 51,966 — U.S. Treasury 3,160 71 — 3,231 — States and political subdivisions 473,414 32,317 (378) 505,353 — Foreign governments 48,103 1,072 (435) 48,740 — Public utilities 792,134 58,495 (9) 850,620 — Corporate 6,569,365 518,303 (7,849) 7,079,819 — Commercial mortgage-backed 27,061 1,311 — 28,372 — Residential mortgage-backed 736,313 33,665 — 769,978 — Asset-backed 274,059 5,021 (132) 278,948 — Totals $ 8,973,860 651,970 (8,803) 9,617,027 — The table below presents amortized costs and fair values of debt securities available-for-sale at December 31, 2020. Debt Securities Available-for-Sale Amortized Gross Gross Fair Allowance for Credit Losses (In thousands) U.S. agencies $ 72,945 2,496 — 75,441 — U.S. Treasury 3,152 126 — 3,278 — States and political subdivisions 528,266 37,909 (86) 566,089 — Foreign governments 11,115 334 — 11,449 — Public utilities 831,990 77,920 — 909,910 — Corporate 7,376,104 727,470 (4,601) 8,098,973 — Commercial mortgage-backed 30,108 1,363 — 31,471 — Residential mortgage-backed 902,974 50,970 (156) 953,788 — Asset-backed 117,889 2,635 — 120,524 — Totals $ 9,874,543 901,223 (4,843) 10,770,923 — Unrealized losses for debt securities available-for-sale increased at June 30, 2021 from comparable balances at December 31, 2020 primarily due to increases in interest rate levels during the period. Debt securities balances at June 30, 2021 and December 31, 2020 include Ozark National holdings of $810.3 million and $811.6 million in available-for-sale. As part of the acquisition effective January 31, 2019 the Company employed purchase accounting procedures in accordance with GAAP which revalued the acquired investment portfolio to their fair values as of the date of the acquisition. These fair values became the book values for Ozark National from that point going forward. Accordingly, unrealized gains and losses for the Ozark National debt securities represent the changes subsequent to the purchase accounting book values established at the acquisition. The following table shows the gross unrealized losses and fair values of the Company's available-for-sale debt securities by investment category and length of time the individual securities have been in a continuous unrealized loss position at June 30, 2021. Debt Securities Available-for-Sale Less than 12 Months 12 Months or Greater Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) States and political subdivisions $ 14,124 (276) 1,788 (102) 15,912 (378) Foreign governments 7,436 (435) — — 7,436 (435) Public utilities 635 (9) — — 635 (9) Corporate 331,777 (7,264) 21,845 (585) 353,622 (7,849) Asset-backed 23,382 (132) — — 23,382 (132) Totals $ 377,354 (8,116) 23,633 (687) 400,987 (8,803) The following table shows the gross unrealized losses and fair values of the Company's available-for-sale debt securities by investment category and length of time that the individual securities have been in a continuous unrealized loss position at December 31, 2020. Debt Securities Available-for-Sale Less than 12 Months 12 Months or Greater Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) States and political subdivisions $ — — 1,762 (86) 1,762 (86) Public utilities — — — — — — Corporate 174,252 (3,836) 36,152 (765) 210,404 (4,601) Residential mortgage-backed — — 500 (156) 500 (156) Totals $ 174,252 (3,836) 38,414 (1,007) 212,666 (4,843) Debt securities. The gross unrealized losses for debt securities are made up of 47 individual issues, or 3.7 % of the total debt securities held available-for-sale by the Company at June 30, 2021. The market value of these bonds as a percent of amortized cost approximates 97.9%. Of the 47 securities, 6, or 12.8%, fall in the 12 months or greater aging category and 43 were rated investment grade at June 30, 2021. The amortized cost and fair value of investments in debt securities available-for-sale at June 30, 2021, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Debt Securities Available-for-Sale Amortized Cost Fair Value (In thousands) Due in 1 year or less $ 626,098 635,508 Due after 1 year through 5 years 3,370,526 3,610,011 Due after 5 years through 10 years 2,223,148 2,426,553 Due after 10 years 1,716,655 1,867,657 7,936,427 8,539,729 Mortgage and asset-backed securities 1,037,433 1,077,298 Totals before allowance for credit losses 8,973,860 9,617,027 Allowance for credit losses — — Totals $ 8,973,860 9,617,027 As disclosed in the Notes to Condensed Consolidated Financial Statements, the Company adopted new accounting guidance as of January 1, 2020 for credit loss recognition of certain financial assets, including debt securities classified in the held-to-maturity category. The Company employed a cohort cumulative loss rate method in estimating current expected credit losses with respect to its held-to-maturity debt securities. This method applies publicly available industry wide statistics of default incidence by defined segmentations of debt security investments combined with future assumptions regarding economic conditions (i.e. GDP forecasts) both in the near term and the long term. The Company utilized Moody's loss rates by industry type and credit ratings and applied them to each major bond category. These bond categories were further segmented by credit ratings and by maturities of two years and less and more than two years. The following table presents the allowance for debt securities credit losses for the three and six months ended June 30, 2021 and 2020. Three Months Ended June 30, 2021 2020 2021 2020 Debt Securities Debt Securities (In thousands) Balance, beginning of period $ — 6,039 — — Provision January 1, 2020 for adoption of new accounting guidance — — — — (Releases)/provision during period — (1,099) — — Balance, end of period $ — 4,940 — — Six Months Ended June 30, 2021 2020 2021 2020 Debt Securities Debt Securities (In thousands) Balance, beginning of period — — — — Provision January 1, 2020 for adoption of new accounting guidance — 3,334 — — (Releases)/provision during period — 1,606 — — Balance, end of period — 4,940 — — As previously noted, the Company reclassified all held-to-maturity debt securities to available-for-sale as of December 31, 2020. Provisions to and releases from the allowance for credit losses in 2020 are recorded in net investment income in the Condensed Consolidated Statements of Earnings. The Company determines current expected credit losses for available-for-sale debt securities in accordance with FASB ASC Subtopic 326-30 when fair value is less than amortized cost, interest payments are missed, and the security is experiencing credit issues. Based on its review, the Company determined none of these investments required an allowance for credit loss at June 30, 2021 or 2020. The Company's operating procedures include monitoring the investment portfolio on an ongoing basis for any changes in issuer facts and circumstances that might lead to future need for a credit loss allowance. (C) Transfer of Securities The Company reassessed its classification of its held-to-maturity portfolio at December 31, 2020 as a result of a funds withheld coinsurance agreement entered into with a third party reinsurer. A portion of the transferred debt securities was added to a funds withheld account for which the reinsurer provides investment management services and does not intend to hold the securities until maturity. Consequently, the Company determined that its continued classification of held-to-maturity debt securities was not appropriate and transferred the entire balance at that time to available-for-sale. (D) Mortgage Loans and Real Estate A financing receivable is a contractual right to receive money on demand or on fixed or determinable dates that is recognized as an asset in a company's statement of financial position. The Company's mortgage, participation and mezzanine loans on real estate are the only financing receivables included in the Condensed Consolidated Balance Sheets. Credit and default risk are minimized through strict underwriting guidelines and diversification of underlying property types and geographic locations. In addition to being secured by the property, mortgage loans with leases on the underlying property are often guaranteed by the lease payments. This approach has proved to result in quality mortgage loans with few defaults. Mortgage loan interest income is recognized on an accrual basis with any premium or discount amortized over the life of the loan. Prepayment and late fees are recorded on the date of collection. The Company targets a minimum specified yield on mortgage loan investments determined by reference to currently available debt security instrument yields plus a desired amount of incremental basis points. During the past several years, the low interest rate environment and a competitive marketplace resulted in fewer loan opportunities being available that met the Company's required rate of return. During the first half of 2020, mortgage loan originations were further impeded by the COVID-19 pandemic and its effects upon the commercial real estate market. Mortgage loans originated by the Company totaled $70.3 million for the six months ended June 30, 2021 and $80.2 million for the year ended December 31, 2020. Loans in foreclosure, loans considered impaired or loans past due 90 days or more are placed on a non-accrual status. If a mortgage loan is determined to be on non-accrual status, the mortgage loan does not accrue any revenue into the Condensed Consolidated Statements of Earnings. The loan is independently monitored and evaluated as to potential impairment or foreclosure. If delinquent payments are made and the loan is brought current, then the Company returns the loan to active status and accrues income accordingly. The Company had no mortgage loans past due 90 days or more at June 30, 2021 or 2020 and as a result all interest income was recognized at June 30, 2021 and 2020. As a result of the economic climate change induced by the COVID-19 virus, various mortgage loan borrowers of the Company requested a temporary forbearance of principal payments on loans in the range of three to nine months. During 2020 there were eight loans representing an aggregate principal balance of $29.2 million with borrowers meeting specified criteria of the Company that forbearance terms were agreed to by the Company. As of June 30, 2021 all forbearance loans have returned to the terms of the original loan agreements. The following table represents the mortgage loan portfolio by loan-to-value ratio. June 30, 2021 December 31, 2020 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Loan-to-Value Ratio (1): Less than 50% $ 100,376 25.3 $ 66,635 19.9 50% to 60% 111,867 28.2 64,536 19.3 60% to 70% 140,928 35.4 153,414 45.8 70% to 80% 44,143 11.1 50,422 15.0 Gross balance 397,314 100.0 335,007 100.0 Market value adjustment 36 — — — Allowance for credit losses (3,238) (0.8) (2,486) (0.7) Totals $ 394,112 99.2 $ 332,521 99.3 (1) Loan-to-Value Ratio is determined using the most recent appraised value. Appraisals are required at the time of funding and may be updated if a material change occurs from the original loan agreement. Market value adjustments are recorded for mortgage loan investments for which the Company has elected to measure the loan at fair value. During the quarter ended June 30, 2021, the investment manager associated with the funds withheld coinsurance arrangement executed a mortgage loan investment for the funds withheld assets under the reinsurance treaty. The Company elected fair value measurement for this mortgage loan, which will be included in the funds withheld assets, for financial reporting purposes. All mortgage loans are analyzed quarterly in order to monitor the financial quality of these assets. Based on ongoing monitoring, mortgage loans with a likelihood of becoming delinquent are identified and placed on an internal “watch list.” Among the criteria that may indicate a potential problem include: major tenant vacancies or bankruptcies, late payments, and loan relief/restructuring requests. The mortgage loan portfolio is analyzed for the need for a valuation allowance on any loan that is on the internal watch list, in the process of foreclosure or that currently has a valuation allowance. Effective January 1, 2020, the Company implemented FASB ASU 2016-13, Financial Instruments-Credit Losses , which revised the credit loss recognition criteria for certain financial assets measured at amortized cost. The guidance replaced the existing incurred loss recognition model with an expected loss recognition model (“CECL”). The objective of the CECL model is for the reporting entity to recognize its estimate of current expected credit losses for affected financial assets in a valuation allowance deducted from the amortized cost basis of the related financial assets that results in presenting the net carrying value of the financial assets at the amount expected to be collected. For mortgage loan investments the Company is using the Weighted Average Remaining Maturity ("WARM") method, which uses an average annual charge-off rate applied to each mortgage loan risk category. At January 1, 2020, a CECL balance of $1.2 million was recorded for mortgage loans which incorporated the previous year-end balance under the prior accounting method. The adjustment resulted in a charge to retained earnings as a change in accounting, net of tax, of $0.4 million. Subsequent changes in the allowance for current expected credit losses for mortgage loans are reported in net investment income in the Condensed Consolidated Statements of Earnings. The following table represents the mortgage loan allowance for credit losses. Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Balance, beginning of the period $ 3,033 1,885 $ 2,486 675 Provision January 1, 2020 for adoption of new accounting guidance — — — 504 Provision during the period 205 342 752 1,048 Total ending allowance for credit losses $ 3,238 2,227 $ 3,238 2,227 |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUES OF FINANCIAL INSTRUMENTS | FAIR VALUES OF FINANCIAL INSTRUMENTS For financial instruments, the FASB provides guidance which defines fair value, establishes a framework for measuring fair value under GAAP, and requires additional disclosures about fair value measurements. In compliance with this GAAP guidance, the Company has categorized its financial instruments, based on the priority of the inputs to the valuation technique, into a three level hierarchy. The fair value hierarchy 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"). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument. Financial assets and liabilities recorded at fair value on the Condensed Consolidated Balance Sheets are categorized as follows: Level 1: Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. These generally provide the most reliable evidence and are used to measure fair value whenever available. The Company's Level 1 assets are equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets. Level 2: Fair value is based upon significant inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable for substantially the full term of the asset or liability through corroboration with observable market data as of the reporting date. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, model-derived valuations whose inputs are observable or whose significant value drivers are observable and other observable inputs. The Company’s Level 2 assets include fixed maturity debt securities (corporate and private bonds, government or agency securities, asset-backed and mortgage-backed securities). The Company's Level 2 liabilities include the embedded derivative on reinsurance. Valuations are generally obtained from third party pricing services for identical or comparable assets or determined through use of valuation methodologies using observable market inputs. Level 3: Fair value is based on significant unobservable inputs which reflect the entity’s or third party pricing service’s assumptions about the assumptions market participants would use in pricing an asset or liability. The Company’s Level 3 assets are over-the-counter derivative contracts and mortgage loans. The Company’s Level 3 liabilities consist of share-based compensation obligations and certain equity-index product-related embedded derivatives. Valuations are estimated based on non-binding broker prices or internally developed valuation models or methodologies, discounted cash flow models and other similar techniques. The following tables set forth the Company’s assets and liabilities that are measured at fair value on a recurring basis as of the date indicated: June 30, 2021 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale $ 9,617,027 — 9,617,027 — Debt securities, trading 1,066,454 — 1,066,454 — Equity securities 21,132 21,132 — — Mortgage loans 2,729 — — 2,729 Derivatives, index options 114,840 — — 114,840 Total assets $ 10,822,182 21,132 10,683,481 117,569 Policyholder account balances (a) $ 155,265 — — 155,265 Other liabilities (b) (64,196) — (72,340) 8,144 Total liabilities $ 91,069 — (72,340) 163,409 During the three and six months ended June 30, 2021, the Company made no transfers from Level 2 to Level 3 for debt securities available-for-sale. December 31, 2020 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale $ 10,770,923 — 10,770,923 — Equity securities 17,744 17,744 — — Derivatives, index options 132,821 — — 132,821 Total assets $ 10,921,488 17,744 10,770,923 132,821 Policyholder account balances (a) $ 161,351 — — 161,351 Other liabilities (c) 6,202 — — 6,202 Total liabilities $ 167,553 — — 167,553 (a) Represents the fair value of certain product-related embedded derivatives that were recorded at fair value. (b) Represents the liability for share-based compensation and the embedded derivative for funds withheld. (c) Represents the liability for share-based compensation. The following tables present, by pricing source and fair value hierarchy level, the Company's assets that are measured at fair value on a recurring basis: June 30, 2021 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale: Priced by third-party vendors $ 9,617,027 — 9,617,027 — Priced internally — — — — Subtotal 9,617,027 — 9,617,027 — Debt securities, trading: Priced by third-party vendors 1,066,454 — 1,066,454 — Priced internally — — — — Subtotal 1,066,454 — 1,066,454 — Equity securities: Priced by third-party vendors 21,132 21,132 — — Priced internally — — — — Subtotal 21,132 21,132 — — Mortgage loans: Priced by third-party vendors — — — — Priced internally 2,729 — — 2,729 Subtotal 2,729 — — 2,729 Derivatives, index options: Priced by third-party vendors 114,840 — — 114,840 Priced internally — — — — Subtotal 114,840 — — 114,840 Total $ 10,822,182 21,132 10,683,481 117,569 Percent of total 100.0 % 0.2 % 98.7 % 1.1 % December 31, 2020 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale: Priced by third-party vendors $ 10,770,923 — 10,770,923 — Priced internally — — — — Subtotal 10,770,923 — 10,770,923 — Equity securities: Priced by third-party vendors 17,744 17,744 — — Priced internally — — — — Subtotal 17,744 17,744 — — Derivatives, index options: Priced by third-party vendors 132,821 — — 132,821 Priced internally — — — — Subtotal 132,821 — — 132,821 Total $ 10,921,488 17,744 10,770,923 132,821 Percent of total 100.0 % 0.2 % 98.6 % 1.2 % The following tables provide additional information about fair value measurements for Level 3 for which significant unobservable inputs were utilized to determine fair value. For the Three Months Ended June 30, 2021 Assets Liabilities Derivatives, Index Options Mortgage Loans Total Assets Policyholder Account Balances Stock Options Total Liabilities (In thousands) Beginning balance, April 1, 2021 $ 137,130 — 137,130 168,902 9,899 178,801 Total realized and unrealized gains (losses): Included in net earnings 40,166 35 40,201 48,819 (461) 48,358 Included in other comprehensive income — — — — — — Purchases, sales, issuances and settlements, net: Purchases 10,974 2,694 13,668 10,974 — 10,974 Sales — — — — — — Issuances — — — — — — Settlements (73,430) — (73,430) (73,430) (1,294) (74,724) Transfers into (out of) Level 3 — — — — — — Balance at end of period $ 114,840 2,729 117,569 155,265 8,144 163,409 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: Net investment income 24,767 35 24,802 — — — Benefits and expenses — — — 24,767 (461) 24,306 Total $ 24,767 35 24,802 24,767 (461) 24,306 For the Three Months Ended June 30, 2020 Assets Liabilities Derivatives, Index Options Total Assets Policyholder Account Balances Stock Options Contingent Consideration Total Liabilities (In thousands) Beginning balance, April 1, 2020 $ 24,335 24,335 61,625 3,081 4,174 68,880 Total realized and unrealized gains (losses): Included in net earnings 40,243 40,243 23,790 2,444 (4,174) 22,060 Included in other comprehensive income — — — — — — Purchases, sales, issuances and settlements, net: Purchases 16,458 16,458 16,458 — — 16,458 Sales — — — — — — Issuances — — — — — — Settlements (14,298) (14,298) (14,300) (28) — (14,328) Transfers into (out of) Level 3 — — — — — — Balance at end of period $ 66,738 66,738 87,573 5,497 — 93,070 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: Net investment income $ 62,328 62,328 — — — — Benefits and expenses — — 62,328 2,444 (4,174) 60,598 Total $ 62,328 62,328 62,328 2,444 (4,174) 60,598 For the Six Months Ended June 30, 2021 Assets Other Liabilities Derivatives, Index Options Mortgage Loans Total Assets Policyholder Account Balances Stock Options Total Other Liabilities (In thousands) Beginning balance, January 1, 2021 $ 132,821 — 132,821 161,351 6,202 167,553 Total realized and unrealized gains (losses): Included in net earnings 68,190 35 68,225 80,085 3,918 84,003 Included in other comprehensive income — — — — — — Purchases, sales, issuances and settlements, net: Purchases 22,183 2,694 24,877 22,183 — 22,183 Sales — — — — — — Issuances — — — — — — Settlements (108,354) — (108,354) (108,354) (1,976) (110,330) Transfers into (out of) Level 3 — — — — — — Balance at end of period $ 114,840 2,729 117,569 155,265 8,144 163,409 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: Net investment income $ 51,361 35 51,396 — — — Benefits and expenses — — — 51,361 3,917 55,278 Total $ 51,361 $ 35 51,396 51,361 3,917 55,278 For the Six Months Ended June 30, 2020 Assets Other Liabilities Derivatives, Index Options Total Assets Policyholder Account Balances Stock Options Contingent Consideration Total Other Liabilities (In thousands) Beginning balance, January 1, 2020 $ 157,588 157,588 155,902 11,225 4,076 171,203 Total realized and unrealized gains (losses): Included in net earnings (66,386) (66,386) (43,865) (3,849) (4,076) (51,790) Included in other comprehensive income — — — — — — Purchases, sales, issuances and settlements, net: Purchases 38,861 38,861 38,861 — — 38,861 Sales — — — — — — Issuances — — — — — — Settlements (63,325) (63,325) (63,325) (1,879) — (65,204) Transfers into (out of) Level 3 — — — — — — Balance at end of period $ 66,738 66,738 87,573 5,497 — 93,070 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: Net investment income $ (43,670) (43,670) — — — — Benefits and expenses — — (43,670) (3,849) (4,076) (51,595) Total $ (43,670) (43,670) (43,670) (3,849) (4,076) (51,595) The following table presents the valuation method for financial assets and liabilities categorized as level 3, as well as the unobservable inputs used in the valuation of those financial instruments: June 30, 2021 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands) Assets: Derivatives, index options $ 114,840 Broker prices Implied volatility 11.76% - 27.41% (17.04%) Mortgage loans 2,729 Discounted cash flow Spread 180 - 280 bps Total assets $ 117,569 Liabilities: Policyholder account balances $ 155,265 Deterministic cash flow model Projected option cost 0.0% - 19.67% (3.01%) Share-based compensation 8,144 Black-Scholes model Expected term 0.5 to 9.4 years Expected volatility 34.08% Total liabilities $ 163,409 December 31, 2020 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands) Assets: Derivatives, index options $ 132,821 Broker prices Implied volatility 12.96% - 53.69% (20.70%) Total assets $ 132,821 Liabilities: Policyholder account balances $ 161,351 Deterministic cash flow model Projected option cost 0.0% - 45.04% (3.27%) Share-based compensation 6,202 Black-Scholes model Expected term 1.0 to 9.9 years Expected volatility 33.47% Total liabilities $ 167,553 Realized gains (losses) on debt securities are reported in the Condensed Consolidated Statements of Earnings as net investment gains (losses) with liabilities reported as expenses. Unrealized gains (losses) on available-for-sale debt securities are reported as Other comprehensive income (loss) within the stockholders' equity section of the Condensed Consolidated Balance Sheets. The fair value hierarchy classifications are reviewed each reporting period. Reclassification of certain financial assets and liabilities may result based on changes in the observability of valuation attributes. Reclassifications are reported as transfers into and out of Level 3 at the beginning fair value for the reporting period in which the changes occur. The carrying amounts and fair values of the Company's financial instruments are as follows: June 30, 2021 Fair Value Hierarchy Level Carrying Fair Level 1 Level 2 Level 3 (In thousands) ASSETS Debt securities, available-for-sale $ 9,617,027 9,617,027 — 9,617,027 — Debt securities, trading 1,066,454 1,066,454 — 1,066,454 — Cash and cash equivalents 395,833 395,833 395,833 — — Mortgage loans 394,112 408,450 — — 408,450 Real estate 33,495 51,627 — 4,600 47,027 Policy loans 71,640 111,658 — — 111,658 Other loans 26,818 27,102 — — 27,102 Derivatives, index options 114,840 114,840 — — 114,840 Equity securities 21,132 21,132 21,132 — — Life interest in Libbie Shearn Moody Trust 9,083 12,775 — — 12,775 Other investments 4,513 24,852 — — 24,852 LIABILITIES Deferred annuity contracts $ 6,551,387 5,192,886 — — 5,192,886 Immediate annuity and supplemental contracts 421,952 461,871 — — 461,871 December 31, 2020 Fair Value Hierarchy Level Carrying Fair Level 1 Level 2 Level 3 (In thousands) ASSETS Debt securities, available-for-sale $ 10,770,923 10,770,923 — 10,770,923 — Cash and cash equivalents 581,059 581,059 581,059 — — Mortgage loans 332,521 348,175 — — 348,175 Real estate 33,783 48,577 — — 48,577 Policy loans 74,083 121,260 — — 121,260 Other loans 23,396 23,691 — — 23,691 Derivatives, index options 132,821 132,821 — — 132,821 Equity securities 17,744 17,744 17,744 — — Life interest in Libbie Shearn Moody Trust 9,083 12,775 — — 12,775 Other investments 4,513 22,580 — — 22,580 LIABILITIES Deferred annuity contracts $ 6,662,730 5,192,663 — — 5,192,663 Immediate annuity and supplemental contracts 412,526 467,538 — — 467,538 Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company's entire holdings of a particular financial instrument. Because no market exists for a portion of the Company's financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES Fixed-index products provide traditional fixed annuities and universal life contracts with the option to have credited interest rates linked in part to an underlying equity index or a combination of equity indices. The equity return component of such policy contracts is identified separately and accounted for in future policy benefits as embedded derivatives on the Condensed Consolidated Balance Sheets. The remaining portions of these policy contracts are considered the host contracts and are recorded separately as fixed annuity or universal life contracts. The host contracts are accounted for under debt instrument type accounting in which future policy benefits are recorded as discounted debt instruments and accreted, using the effective yield method, to their minimum account values at their projected maturities or termination dates. The Company purchases over-the-counter index options, which are derivative financial instruments, to hedge the equity return component of its fixed-index annuity and life products. The index options act as hedges to match closely the returns on the underlying index or indices. The amounts which may be credited to policyholders are linked, in part, to the returns of the underlying index or indices. As a result, changes to policyholders' liabilities are substantially offset by changes in the value of the options. Cash is exchanged upon purchase of the index options and no principal or interest payments are made by either party during the option periods. Upon maturity or expiration of the options, cash may be paid to the Company depending on the performance of the underlying index or indices and terms of the contract. The Company does not elect hedge accounting relative to these derivative instruments. The index options are reported at fair value in the accompanying Condensed Consolidated Financial Statements. The changes in the values of the index options and the changes in the policyholder liabilities are both reflected in the Condensed Consolidated Statements of Earnings. Any changes relative to the embedded derivatives associated with policy contracts are reflected in contract interest in the Condensed Consolidated Statements of Earnings. Any gains or losses from the sale or expiration of the options, as well as period-to-period changes in values, are reflected as net investment income in the Condensed Consolidated Statements of Earnings. Although there is credit risk in the event of nonperformance by counterparties to the index options, the Company does not expect any of its counterparties to fail to meet their obligations, given their high credit ratings. In addition, credit support agreements are in place with all counterparties for option holdings in excess of specific limits, which may further reduce the Company's credit exposure. Effective December 31, 2020, the Company entered into a coinsurance funds withheld reinsurance agreement under which identified assets are maintained in a funds withheld account but the associated interest and credit risk of these assets has been transferred to the reinsurer, representing a total return swap with a floating rate leg. Accordingly, the Company bifurcates the embedded derivative for reinsurance from the host contract in accordance with GAAP. The fair value of the embedded derivative funds withheld liability is computed as the unrealized gain (loss) on the underlying funds withheld assets and is included in the funds withheld liability on the Condensed Consolidated Balance Sheets, with the change reported in net investment income in the Condensed Consolidated Statements of Earnings. Changes in the funds withheld liability are reported in operating activities in the Condensed Consolidated Statements of Cash Flows. The tables below present the fair value of derivative instruments as of June 30, 2021 and December 31, 2020, respectively. June 30, 2021 Asset Derivatives Liability Derivatives Balance Fair Balance Fair (In thousands) (In thousands) Derivatives not designated as hedging instruments Equity index options Derivatives, Index Options $ 114,840 Fixed-index products Universal Life and Annuity Contracts $ 155,265 Embedded derivative on reinsurance contract Funds Withheld Liability (72,340) Total $ 114,840 $ 82,925 December 31, 2020 Asset Derivatives Liability Derivatives Balance Fair Balance Fair (In thousands) (In thousands) Derivatives not designated as hedging instruments Equity index options Derivatives, Index Options $ 132,821 Fixed-index products Universal Life and Annuity Contracts $ 161,351 Total $ 132,821 $ 161,351 The table below presents the effect of derivative instruments in the Condensed Consolidated Statements of Earnings for the three months ended June 30, 2021 and 2020. June 30, June 30, Derivatives Not Designated Location of Gain Amount of Gain or (In thousands) Equity index options Net investment income $ 40,166 40,243 Fixed-index products Universal life and annuity contract interest (48,819) (23,790) Embedded derivative on reinsurance contract Net investment income 1,970 — $ (6,683) 16,453 The table below presents the effect of derivative instruments in the Condensed Consolidated Statements of Earnings for the six months ended June 30, 2021 and 2020. June 30, June 30, Derivatives Not Designated Location of Gain Amount of Gain or (In thousands) Equity index options Net investment income $ 68,190 (66,386) Fixed-index products Universal life and annuity contract interest (80,085) 43,865 Embedded derivative on reinsurance contract Net investment income 72,340 — $ 60,445 (22,521) The embedded derivative liability on fixed-index products, the change of which is recorded in universal life and annuity contract interest in the Condensed Consolidated Statements of Earnings, includes projected interest credits that are offset by the expected collectability by the Company of asset management fees on fixed-index products. The anticipated asset management fees to be collected increases or decreases based upon the most recent performance of index options and adds to or reduces the offset applied to the embedded derivative liability (increasing or decreasing contract interest expense). For the three months ended June 30, 2021 and 2020, the change in the embedded derivative liability due to the expected collectability of asset management fees increased/(decreased) contract interest expense by $2.1 million and $(3.7) million, respectively. For the six months ended June 30, 2021 and 2020, contract interest expense was increased/(decreased) by $6.5 million and $25.6 million, respectively, for the expected collectability of asset management fees. |
Intangibles, Value of Business
Intangibles, Value of Business Acquired, and Goodwill | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLES, VALUE OF BUSINESS ACQUIRED, AND GOODWILL | INTANGIBLES, VALUE OF BUSINESS ACQUIRED, AND GOODWILL Identifiable Intangible Assets The gross carrying amounts and accumulated amortization for intangible assets are as follows for the dates shown. June 30, 2021 December 31, 2020 Weighted-Average Amortization Period Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Trademarks/trade names 15 $ 2,800 (451) 2,800 (358) Internally developed software 7 3,800 (1,312) 3,800 (1,040) Insurance licenses N/A 3,000 — 3,000 — $ 9,600 (1,763) 9,600 (1,398) The value of trademarks was estimated using the relief from royalty method, based on the assumption that in lieu of ownership, an organization would be willing to pay a royalty in order to receive the related benefits of using the brand. The value of insurance licenses was estimated using the market approach to value, based on values paid for licenses in recent shell company transactions. The value of internally developed software was estimated using the replacement cost method. Trademarks, trade names and internally developed software are amortized using a straight-line method over the estimated useful lives. These intangible assets will be evaluated for impairment if indicators of impairment arise. Insurance licenses were determined to have an indefinite useful life. The Company evaluates the useful life of insurance licenses at each reporting period to determine whether the useful life remains indefinite. As of June 30, 2021, expected amortization expense relating to purchased intangible assets for each of the next 5 years and thereafter is as follows: Expected (In thousands) Remainder of 2021 $ 365 2022 730 2023 730 2024 730 2025 730 Thereafter 1,552 Value of Business Acquired ("VOBA") VOBA is a purchase accounting convention for life insurance companies in business combinations based upon an actuarial determination of the difference between the fair value of policyholder liabilities acquired and the same policyholder liabilities measured in accordance with the acquiring company's accounting policies. The difference, referred to as VOBA, is an intangible asset subject to periodic amortization. Changes in VOBA were as follows for the periods shown: June 30, December 31, 2021 2020 (In thousands) Balance, beginning of year $ 162,968 138,071 Other increase — 35,125 Amortization: Amortization, excluding unlocking (4,801) (10,228) Balance as of end of period $ 158,167 162,968 Estimated future amortization of VOBA, net of interest (in thousands), as of June 30, 2021, is as follows: Expected Amortization (In thousands) Remainder of 2021 $ 5,114 2022 9,753 2023 9,368 2024 9,015 2025 8,804 Goodwill The changes in the carrying amount of goodwill (in thousands) were as follows: June 30, December 31, 2021 2020 (In thousands) Gross goodwill as of beginning of year $ 13,864 13,864 Goodwill resulting from business acquisition — — Gross goodwill, before impairments 13,864 13,864 Accumulated impairment as of beginning of year — — Current year impairments — — Net goodwill as of end of period $ 13,864 13,864 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSSubsequent events have been evaluated through the date of filing and no reportable items were identified. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS Recent accounting pronouncements not yet adopted In August 2018, the FASB issued ASU 2018-12 Financial Services-Insurance (Topic 944) - Targeted Improvements to the Accounting for Long-Duration Contracts . This update is aimed at improving the Codification as it relates to long-duration contracts which will improve the timeliness of recognizing changes in the liability for future policy benefits, simplify accounting for certain market-based options, simplify the amortization of deferred acquisition costs, and improve the effectiveness of required disclosures. Amendments include the following: A. Require insurance entity to (1) review and update assumptions used to measure cash flows at least annually (with changes recognized in net income) and (2) update discount rate assumption at each reporting date (with changes recognized in other comprehensive income). B. Require insurance entity to measure all market risk benefits associated with deposit (i.e. account balance) contracts at fair value, with change in fair value attributable to change in instrument-specific credit risk recognized in other comprehensive income. C. Simplify amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins and require those balances be amortized on constant level basis over expected term of related contract. Deferred acquisition costs are required to be written off for unexpected contract terminations but are not subject to impairment test. D. Require insurance entity to add disclosures of disaggregated rollforwards of beginning to ending balances of the liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities, and deferred acquisition costs. Insurance entity must also disclose information about significant inputs, judgments, assumptions, and methods used in measurement, including changes in those inputs, judgments, and assumptions, and the effect of those changes on measurement. These updates are required to be applied retrospectively to the earliest period presented in the financial statements for fiscal periods beginning after December 15, 2022, with early adoption permitted. The Company has performed a preliminary gap analysis and created a roadmap for implementation of this standard by the effective date and is evaluating the impact of the new guidance on its Consolidated Financial Statements. Accounting pronouncements adopted In December 2019, the FASB issued ASU 2019-12 Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740) , which simplifies various aspects of the income tax accounting guidance and will be applied using different approaches depending on the specific amendment. The amendments are effective for fiscal periods beginning after December 15, 2020. Early adoption is permitted. The adoption of this ASU did not have a material effect on the results of operations or financial position of the Company. In June 2016, the FASB released ASU 2016-13, Financial Instruments - Credit Losses , which revises the credit loss recognition criteria for certain financial assets measured at amortized cost. The new guidance replaces the existing incurred loss recognition model with an expected loss recognition model ("CECL"). The objective of the CECL model is for the reporting entity to recognize its estimate of current expected credit losses for affected financial assets in a valuation allowance deducted from the amortized cost basis of the related financial assets that results in presenting the net carrying value of the financial assets at the amount expected to be collected. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. The amendments in this Update add clarification and correction to ASU 2016-13 around expected recoveries for purchased financial assets with credit deterioration, transition relief for troubled debt restructurings, disclosures related to accrued interest receivables, and financial assets secured by collateral maintenance provisions. The guidance for these pronouncements was effective for interim and annual periods beginning after December 15, 2019, and for most affected instruments must be adopted using a modified retrospective approach, with a cumulative effect adjustment recorded to beginning retained earnings. Effective January 1, 2020, the Company adopted the expected loss recognition model related to mortgage loans, debt securities held to maturity, and reinsurance recoverable using a modified retrospective approach. The change in accounting, net of tax, of $3.0 million was recorded as a charge to retained earnings in the first quarter of 2020 reflecting initial allowance for estimated credit losses balances of $1.2 million on mortgage loans and $3.3 million on debt securities held to maturity. The estimated credit losses for reinsurance recoverable were immaterial to the financial statements, but are monitored on a quarterly basis for any changes. Refer to Note (9) Investments for more information. Certain disclosures required by ASU 2016-13 are not included in the Consolidated Financial Statements as the impact of this standard was not material. Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the SEC did not, or are not believed by management to, have a material impact on the Company’s present or future Consolidated Financial Statements. |
Fair Value Measurements | FAIR VALUES OF FINANCIAL INSTRUMENTS For financial instruments, the FASB provides guidance which defines fair value, establishes a framework for measuring fair value under GAAP, and requires additional disclosures about fair value measurements. In compliance with this GAAP guidance, the Company has categorized its financial instruments, based on the priority of the inputs to the valuation technique, into a three level hierarchy. The fair value hierarchy 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"). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument. Financial assets and liabilities recorded at fair value on the Condensed Consolidated Balance Sheets are categorized as follows: Level 1: Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. These generally provide the most reliable evidence and are used to measure fair value whenever available. The Company's Level 1 assets are equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets. Level 2: Fair value is based upon significant inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable for substantially the full term of the asset or liability through corroboration with observable market data as of the reporting date. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, model-derived valuations whose inputs are observable or whose significant value drivers are observable and other observable inputs. The Company’s Level 2 assets include fixed maturity debt securities (corporate and private bonds, government or agency securities, asset-backed and mortgage-backed securities). The Company's Level 2 liabilities include the embedded derivative on reinsurance. Valuations are generally obtained from third party pricing services for identical or comparable assets or determined through use of valuation methodologies using observable market inputs. Level 3: Fair value is based on significant unobservable inputs which reflect the entity’s or third party pricing service’s assumptions about the assumptions market participants would use in pricing an asset or liability. The Company’s Level 3 assets are over-the-counter derivative contracts and mortgage loans. The Company’s Level 3 liabilities consist of share-based compensation obligations and certain equity-index product-related embedded derivatives. Valuations are estimated based on non-binding broker prices or internally developed valuation models or methodologies, discounted cash flow models and other similar techniques. |
Consolidation and Basis of Pr_2
Consolidation and Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of the unrealized gains and losses on available-for-sale securities that were reclassified out of accumulated other comprehensive income | The table below shows the net unrealized gains and losses on available-for-sale securities that were reclassified out of accumulated other comprehensive income for the three and six months ended June 30, 2021 and June 30, 2020. Affected Line Item in the Amount Reclassified From Accumulated Other Comprehensive Income Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Other net investment gains $ 4,823 1,729 6,239 2,491 Earnings before Federal income taxes 4,823 1,729 6,239 2,491 Federal income taxes 1,013 363 1,310 523 Net earnings $ 3,810 1,366 4,929 1,968 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Net earnings for the periods shown below are allocated between Class A shares and Class B shares based upon (1) the proportionate number of shares issued and outstanding as of the end of the period, and (2) the per share dividend rights of the two classes under the Company's Restated Certificate of Incorporation (the Class B dividend per share is equal to one-half the Class A dividend per share). Three Months Ended June 30, 2021 2020 Class A Class B Class A Class B (In thousands except per share amounts) Numerator for Basic and Diluted Earnings Per Share: Net earnings $ 49,899 48,413 Dividends - Class A shares — — Dividends - Class B shares — — Undistributed earnings $ 49,899 48,413 Allocation of net earnings: Dividends $ — — — — Allocation of undistributed earnings 48,488 1,411 47,044 1,369 Net earnings $ 48,488 1,411 47,044 1,369 Denominator: Basic earnings per share - weighted-average shares 3,436 200 3,436 200 Effect of dilutive stock options — — — — Diluted earnings per share - adjusted weighted-average shares for assumed conversions 3,436 200 3,436 200 Basic earnings per share $ 14.11 7.06 13.69 6.85 Diluted earnings per share $ 14.11 7.06 13.69 6.85 Six Months Ended June 30, 2021 2020 Class A Class B Class A Class B (In thousands except per share amounts) Numerator for Basic and Diluted Earnings Per Share: Net earnings $ 112,028 46,351 Dividends - Class A shares — — Dividends - Class B shares — — Undistributed earnings $ 112,028 46,351 Allocation of net earnings: Dividends $ — — — — Allocation of undistributed earnings 108,860 3,168 45,040 1,311 Net earnings $ 108,860 3,168 45,040 1,311 Denominator: Basic earnings per share - weighted-average shares 3,436 200 3,436 200 Effect of dilutive stock options — — — — Diluted earnings per share - adjusted weighted-average shares for assumed conversions 3,436 200 3,436 200 Basic earnings per share $ 31.68 15.84 13.11 6.55 Diluted earnings per share $ 31.68 15.84 13.11 6.55 |
Pension and Other Postretirem_2
Pension and Other Postretirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Defined Benefit Pension Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of net periodic benefit costs | The following table summarizes the components of net periodic benefit cost. Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (In thousands) Service cost $ 30 27 60 54 Interest cost 131 169 263 337 Expected return on plan assets (356) (316) (712) (631) Amortization of net loss 135 145 269 290 Net periodic benefit cost $ (60) 25 (120) 50 |
Chairman and President Non-Qualified Defined Benefit Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of net periodic benefit costs | The following table summarizes the components of net periodic benefit costs for the non-qualified defined benefit plans. Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (In thousands) Service cost $ 309 303 618 605 Interest cost 260 337 521 675 Amortization of prior service cost 15 15 30 30 Amortization of net loss 1,283 1,445 2,565 2,890 Net periodic benefit cost $ 1,867 2,100 3,734 4,200 |
Postretirement Employment Plans Other Than Pension | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of net periodic benefit costs | The following table summarizes the components of net periodic benefit costs. Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (In thousands) Interest cost $ 37 42 74 83 Amortization of net loss 73 39 146 79 Net periodic benefit cost $ 110 81 220 162 |
Segment and Other Operating I_2
Segment and Other Operating Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Summary of segment information, by quarter | A summary of segment information as of June 30, 2021 and December 31, 2020 for the Condensed Consolidated Balance Sheet items and for the three and six months ended June 30, 2021 and June 30, 2020 for the Condensed Consolidated Statements of Earnings is provided below. Condensed Consolidated Balance Sheet Items: June 30, 2021 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Deferred transaction costs $ 112,847 130,696 377,369 167,535 — 788,447 Total segment assets 1,716,487 1,021,962 9,626,473 1,108,040 381,901 13,854,863 Future policy benefits 1,443,093 783,053 6,929,958 773,170 — 9,929,274 Other policyholder liabilities 17,991 12,695 89,115 14,616 — 134,417 Funds withheld liability — — 1,594,020 — — 1,594,020 December 31, 2020 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Deferred transaction costs $ 94,100 124,480 302,397 170,756 — 691,733 Total segment assets 3,242,794 1,034,280 7,976,588 1,117,509 382,149 13,753,320 Future policy benefits 1,337,174 798,952 7,028,860 768,433 — 9,933,419 Other policyholder liabilities 16,378 11,086 94,049 16,967 — 138,480 Funds withheld liability — — 1,697,591 — — 1,697,591 Condensed Consolidated Statements of Earnings: Three Months Ended June 30, 2021 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Premiums and contract revenues $ 12,475 20,656 3,742 19,299 — 56,172 Net investment income 28,247 13,847 100,199 6,780 7,471 156,544 Other revenues 31 44 1,389 3,273 1,297 6,034 Total revenues 40,753 34,547 105,330 29,352 8,768 218,750 Life and other policy benefits 5,007 5,302 9,829 15,766 — 35,904 Amortization of deferred transaction costs 153 6,163 16,378 2,429 — 25,123 Universal life and annuity contract interest 25,466 12,226 32,281 — — 69,973 Other operating expenses 5,482 4,646 11,864 4,933 1,543 28,468 Federal income taxes 958 1,268 7,115 1,258 1,481 12,080 Total expenses 37,066 29,605 77,467 24,386 3,024 171,548 Segment earnings $ 3,687 4,942 27,863 4,966 5,744 47,202 Six Months Ended June 30, 2021 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Premiums and contract revenues $ 26,373 40,836 7,672 38,764 — 113,645 Net investment income 52,090 25,963 219,923 13,354 11,289 322,619 Other revenues 52 72 2,763 6,199 2,362 11,448 Total revenues 78,515 66,871 230,358 58,317 13,651 447,712 Life and other policy benefits 11,117 9,677 19,830 33,169 — 73,793 Amortization of deferred transaction costs 5,613 11,555 32,825 5,119 — 55,112 Universal life and annuity contract interest 47,087 23,025 52,706 — — 122,818 Other operating expenses 12,929 9,420 24,794 9,679 2,981 59,803 Federal income taxes 364 2,711 20,591 2,115 2,193 27,974 Total expenses 77,110 56,388 150,746 50,082 5,174 339,500 Segment earnings $ 1,405 10,483 79,612 8,235 8,477 108,212 Three Months Ended June 30, 2020 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Premiums and contract revenues $ 12,009 23,061 4,699 19,841 — 59,610 Net investment income 21,475 11,153 97,666 6,549 8,851 145,694 Other revenues 1 (6) (8) 2,319 5,280 7,586 Total revenues 33,485 34,208 102,357 28,709 14,131 212,890 Life and other policy benefits 4,169 3,684 8,880 16,698 — 33,431 Amortization of deferred transaction costs 3,209 6,844 19,344 1,703 — 31,100 Universal life and annuity contract interest 19,172 9,492 33,108 — — 61,772 Other operating expenses 5,643 4,517 12,715 4,794 1,485 29,154 Federal income taxes 172 934 6,173 1,918 2,292 11,489 Total expenses 32,365 25,471 80,220 25,113 3,777 166,946 Segment earnings $ 1,120 8,737 22,137 3,596 10,354 45,944 Six Months Ended June 30, 2020 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Premiums and contract revenues $ 23,237 45,928 9,349 39,924 — 118,438 Net investment income 2,092 2,153 108,297 12,850 6,823 132,215 Other revenues 30 48 (4) 4,741 6,425 11,240 Total revenues 25,359 48,129 117,642 57,515 13,248 261,893 Life and other policy benefits 10,046 7,015 17,069 32,935 — 67,065 Amortization of deferred transaction costs 5,782 12,896 38,365 4,094 — 61,137 Universal life and annuity contract interest (2,521) (1,345) 37,612 — — 33,746 Other operating expenses 9,938 7,613 19,582 8,863 2,980 48,976 Federal income taxes 360 3,738 854 3,140 1,748 9,840 Total expenses 23,605 29,917 113,482 49,032 4,728 220,764 Segment earnings $ 1,754 18,212 4,160 8,483 8,520 41,129 |
Reconciliation of segment premiums and other revenues to condensed consolidated financial statements | Reconciliations of segment information to the Company's Condensed Consolidated Financial Statements are provided below. Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Premiums and Other Revenues : Premiums and contract revenues $ 56,172 59,610 113,645 118,438 Net investment income 156,544 145,694 322,619 132,215 Other revenues 6,034 7,586 11,448 11,240 Realized gains on investments 3,415 3,125 4,831 6,610 Total condensed consolidated premiums and other revenues $ 222,165 216,015 452,543 268,503 |
Reconciliation of segment federal income taxes to condensed consolidated financial statements | Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Federal Income Taxes : Total segment Federal income taxes $ 12,080 11,489 27,974 9,840 Taxes on realized gains on investments 718 656 1,015 1,388 Total condensed consolidated Federal income taxes $ 12,798 12,145 28,989 11,228 |
Reconciliation of segment net earnings (loss) to condensed consolidated financial statements | Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Net Earnings : Total segment earnings $ 47,202 45,944 108,212 41,129 Realized gains on investments, net of taxes 2,697 2,469 3,816 5,222 Total condensed consolidated net earnings $ 49,899 48,413 112,028 46,351 |
Reconciliation of segment assets to condensed consolidated financial statements | June 30, December 31, 2021 2020 (In thousands) Assets : Total segment assets $ 13,854,863 13,753,320 Other unallocated assets 615,276 894,950 Total condensed consolidated assets $ 14,470,139 14,648,270 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of shares available for grant and stock option activity | A summary of awards by type and related activity is detailed below. Stock Options Outstanding Shares Shares Weighted- Stock Options: Balance at January 1, 2021 291,000 — $ — Exercised — — $ — Forfeited — — $ — Expired — — $ — Stock options granted — — $ — Balance at June 30, 2021 291,000 — $ — |
Schedule of activity | Liability Awards SAR RSU PSU Other Share/Unit Awards: Balance at January 1, 2021 144,248 16,449 24,282 Exercised (10,800) — (3,863) Forfeited (730) (157) — Granted — — — Balance at June 30, 2021 132,718 16,292 20,419 |
Summary of information about stock options and SARs outstanding | The following table summarizes information about SARs outstanding at June 30, 2021. There were no options outstanding as of June 30, 2021. SARs Outstanding Number Weighted- Number Exercise prices: $132.56 8,318 0.5 years 8,318 $210.22 23,450 2.4 years 23,450 $216.48 11,149 4.6 years 11,149 $311.16 9,531 5.6 years 9,531 $310.55 203 5.8 years 203 $334.34 9,018 6.4 years 9,018 $303.77 11,178 7.4 years 7,483 $252.91 19,323 8.4 years 6,509 $192.10 40,548 9.4 years — Totals 132,718 75,661 Aggregate intrinsic value (in thousands) $ 2,494 $ 1,184 |
Summary of assumptions employed using Black-Scholes option pricing model | In estimating the fair value of the SARs outstanding at June 30, 2021 and December 31, 2020, the Company employed the Black-Scholes option pricing model with assumptions detailed below. June 30, December 31, Expected term 0.5 to 9.4 years 1.0 to 9.9 years Expected volatility weighted-average 34.08 % 33.47 % Expected dividend yield 0.16 % 0.17 % Risk-free rate weighted-average 0.50 % 0.19 % |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Realized investment gains and losses | The table below presents realized gains and losses for the periods indicated. Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Available-for-sale debt securities: Realized gains on disposal $ 4,823 1,730 6,239 2,491 Realized losses on disposal — — — — Held-to-maturity debt securities: Realized gains on disposal — 1,395 — 4,119 Realized losses on disposal — — — — Real estate gains (losses) (1,407) — (1,407) — Other (1) — (1) — Totals $ 3,415 3,125 4,831 6,610 |
Schedule of debt securities, available-for-sale securities | The Company transferred all of its debt securities to the available-for-sale classification as of December 31, 2020. The table below presents amortized costs and fair values of debt securities available-for-sale at June 30, 2021. Debt Securities Available-for-Sale Amortized Gross Gross Fair Allowance for Credit Losses (In thousands) U.S. agencies $ 50,251 1,715 — 51,966 — U.S. Treasury 3,160 71 — 3,231 — States and political subdivisions 473,414 32,317 (378) 505,353 — Foreign governments 48,103 1,072 (435) 48,740 — Public utilities 792,134 58,495 (9) 850,620 — Corporate 6,569,365 518,303 (7,849) 7,079,819 — Commercial mortgage-backed 27,061 1,311 — 28,372 — Residential mortgage-backed 736,313 33,665 — 769,978 — Asset-backed 274,059 5,021 (132) 278,948 — Totals $ 8,973,860 651,970 (8,803) 9,617,027 — The table below presents amortized costs and fair values of debt securities available-for-sale at December 31, 2020. Debt Securities Available-for-Sale Amortized Gross Gross Fair Allowance for Credit Losses (In thousands) U.S. agencies $ 72,945 2,496 — 75,441 — U.S. Treasury 3,152 126 — 3,278 — States and political subdivisions 528,266 37,909 (86) 566,089 — Foreign governments 11,115 334 — 11,449 — Public utilities 831,990 77,920 — 909,910 — Corporate 7,376,104 727,470 (4,601) 8,098,973 — Commercial mortgage-backed 30,108 1,363 — 31,471 — Residential mortgage-backed 902,974 50,970 (156) 953,788 — Asset-backed 117,889 2,635 — 120,524 — Totals $ 9,874,543 901,223 (4,843) 10,770,923 — |
Schedule of gross unrealized losses and fair values of debt securities, available-for-sale investments, continuous unrealized loss position | The following table shows the gross unrealized losses and fair values of the Company's available-for-sale debt securities by investment category and length of time the individual securities have been in a continuous unrealized loss position at June 30, 2021. Debt Securities Available-for-Sale Less than 12 Months 12 Months or Greater Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) States and political subdivisions $ 14,124 (276) 1,788 (102) 15,912 (378) Foreign governments 7,436 (435) — — 7,436 (435) Public utilities 635 (9) — — 635 (9) Corporate 331,777 (7,264) 21,845 (585) 353,622 (7,849) Asset-backed 23,382 (132) — — 23,382 (132) Totals $ 377,354 (8,116) 23,633 (687) 400,987 (8,803) The following table shows the gross unrealized losses and fair values of the Company's available-for-sale debt securities by investment category and length of time that the individual securities have been in a continuous unrealized loss position at December 31, 2020. Debt Securities Available-for-Sale Less than 12 Months 12 Months or Greater Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) States and political subdivisions $ — — 1,762 (86) 1,762 (86) Public utilities — — — — — — Corporate 174,252 (3,836) 36,152 (765) 210,404 (4,601) Residential mortgage-backed — — 500 (156) 500 (156) Totals $ 174,252 (3,836) 38,414 (1,007) 212,666 (4,843) |
Investments classified by contractual maturity date | The amortized cost and fair value of investments in debt securities available-for-sale at June 30, 2021, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Debt Securities Available-for-Sale Amortized Cost Fair Value (In thousands) Due in 1 year or less $ 626,098 635,508 Due after 1 year through 5 years 3,370,526 3,610,011 Due after 5 years through 10 years 2,223,148 2,426,553 Due after 10 years 1,716,655 1,867,657 7,936,427 8,539,729 Mortgage and asset-backed securities 1,037,433 1,077,298 Totals before allowance for credit losses 8,973,860 9,617,027 Allowance for credit losses — — Totals $ 8,973,860 9,617,027 |
Allowance for debt securities held to maturity | The following table presents the allowance for debt securities credit losses for the three and six months ended June 30, 2021 and 2020. Three Months Ended June 30, 2021 2020 2021 2020 Debt Securities Debt Securities (In thousands) Balance, beginning of period $ — 6,039 — — Provision January 1, 2020 for adoption of new accounting guidance — — — — (Releases)/provision during period — (1,099) — — Balance, end of period $ — 4,940 — — Six Months Ended June 30, 2021 2020 2021 2020 Debt Securities Debt Securities (In thousands) Balance, beginning of period — — — — Provision January 1, 2020 for adoption of new accounting guidance — 3,334 — — (Releases)/provision during period — 1,606 — — Balance, end of period — 4,940 — — |
Allowance for debt securities available for sale | The following table presents the allowance for debt securities credit losses for the three and six months ended June 30, 2021 and 2020. Three Months Ended June 30, 2021 2020 2021 2020 Debt Securities Debt Securities (In thousands) Balance, beginning of period $ — 6,039 — — Provision January 1, 2020 for adoption of new accounting guidance — — — — (Releases)/provision during period — (1,099) — — Balance, end of period $ — 4,940 — — Six Months Ended June 30, 2021 2020 2021 2020 Debt Securities Debt Securities (In thousands) Balance, beginning of period — — — — Provision January 1, 2020 for adoption of new accounting guidance — 3,334 — — (Releases)/provision during period — 1,606 — — Balance, end of period — 4,940 — — |
Schedule of mortgage loans by loan-to-value ratio | The following table represents the mortgage loan portfolio by loan-to-value ratio. June 30, 2021 December 31, 2020 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Loan-to-Value Ratio (1): Less than 50% $ 100,376 25.3 $ 66,635 19.9 50% to 60% 111,867 28.2 64,536 19.3 60% to 70% 140,928 35.4 153,414 45.8 70% to 80% 44,143 11.1 50,422 15.0 Gross balance 397,314 100.0 335,007 100.0 Market value adjustment 36 — — — Allowance for credit losses (3,238) (0.8) (2,486) (0.7) Totals $ 394,112 99.2 $ 332,521 99.3 (1) Loan-to-Value Ratio is determined using the most recent appraised value. Appraisals are required at the time of funding and may be updated if a material change occurs from the original loan agreement. |
Schedule of allowance for mortgage loans | The following table represents the mortgage loan allowance for credit losses. Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Balance, beginning of the period $ 3,033 1,885 $ 2,486 675 Provision January 1, 2020 for adoption of new accounting guidance — — — 504 Provision during the period 205 342 752 1,048 Total ending allowance for credit losses $ 3,238 2,227 $ 3,238 2,227 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities that are measured at fair value on a recurring basis | The following tables set forth the Company’s assets and liabilities that are measured at fair value on a recurring basis as of the date indicated: June 30, 2021 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale $ 9,617,027 — 9,617,027 — Debt securities, trading 1,066,454 — 1,066,454 — Equity securities 21,132 21,132 — — Mortgage loans 2,729 — — 2,729 Derivatives, index options 114,840 — — 114,840 Total assets $ 10,822,182 21,132 10,683,481 117,569 Policyholder account balances (a) $ 155,265 — — 155,265 Other liabilities (b) (64,196) — (72,340) 8,144 Total liabilities $ 91,069 — (72,340) 163,409 December 31, 2020 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale $ 10,770,923 — 10,770,923 — Equity securities 17,744 17,744 — — Derivatives, index options 132,821 — — 132,821 Total assets $ 10,921,488 17,744 10,770,923 132,821 Policyholder account balances (a) $ 161,351 — — 161,351 Other liabilities (c) 6,202 — — 6,202 Total liabilities $ 167,553 — — 167,553 (a) Represents the fair value of certain product-related embedded derivatives that were recorded at fair value. (b) Represents the liability for share-based compensation and the embedded derivative for funds withheld. (c) Represents the liability for share-based compensation. |
Schedule of assets by pricing source and fair value hierarchy level | The following tables present, by pricing source and fair value hierarchy level, the Company's assets that are measured at fair value on a recurring basis: June 30, 2021 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale: Priced by third-party vendors $ 9,617,027 — 9,617,027 — Priced internally — — — — Subtotal 9,617,027 — 9,617,027 — Debt securities, trading: Priced by third-party vendors 1,066,454 — 1,066,454 — Priced internally — — — — Subtotal 1,066,454 — 1,066,454 — Equity securities: Priced by third-party vendors 21,132 21,132 — — Priced internally — — — — Subtotal 21,132 21,132 — — Mortgage loans: Priced by third-party vendors — — — — Priced internally 2,729 — — 2,729 Subtotal 2,729 — — 2,729 Derivatives, index options: Priced by third-party vendors 114,840 — — 114,840 Priced internally — — — — Subtotal 114,840 — — 114,840 Total $ 10,822,182 21,132 10,683,481 117,569 Percent of total 100.0 % 0.2 % 98.7 % 1.1 % December 31, 2020 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale: Priced by third-party vendors $ 10,770,923 — 10,770,923 — Priced internally — — — — Subtotal 10,770,923 — 10,770,923 — Equity securities: Priced by third-party vendors 17,744 17,744 — — Priced internally — — — — Subtotal 17,744 17,744 — — Derivatives, index options: Priced by third-party vendors 132,821 — — 132,821 Priced internally — — — — Subtotal 132,821 — — 132,821 Total $ 10,921,488 17,744 10,770,923 132,821 Percent of total 100.0 % 0.2 % 98.6 % 1.2 % |
Schedule of significant unobservable inputs for fair value measurements | The following tables provide additional information about fair value measurements for Level 3 for which significant unobservable inputs were utilized to determine fair value. For the Three Months Ended June 30, 2021 Assets Liabilities Derivatives, Index Options Mortgage Loans Total Assets Policyholder Account Balances Stock Options Total Liabilities (In thousands) Beginning balance, April 1, 2021 $ 137,130 — 137,130 168,902 9,899 178,801 Total realized and unrealized gains (losses): Included in net earnings 40,166 35 40,201 48,819 (461) 48,358 Included in other comprehensive income — — — — — — Purchases, sales, issuances and settlements, net: Purchases 10,974 2,694 13,668 10,974 — 10,974 Sales — — — — — — Issuances — — — — — — Settlements (73,430) — (73,430) (73,430) (1,294) (74,724) Transfers into (out of) Level 3 — — — — — — Balance at end of period $ 114,840 2,729 117,569 155,265 8,144 163,409 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: Net investment income 24,767 35 24,802 — — — Benefits and expenses — — — 24,767 (461) 24,306 Total $ 24,767 35 24,802 24,767 (461) 24,306 For the Three Months Ended June 30, 2020 Assets Liabilities Derivatives, Index Options Total Assets Policyholder Account Balances Stock Options Contingent Consideration Total Liabilities (In thousands) Beginning balance, April 1, 2020 $ 24,335 24,335 61,625 3,081 4,174 68,880 Total realized and unrealized gains (losses): Included in net earnings 40,243 40,243 23,790 2,444 (4,174) 22,060 Included in other comprehensive income — — — — — — Purchases, sales, issuances and settlements, net: Purchases 16,458 16,458 16,458 — — 16,458 Sales — — — — — — Issuances — — — — — — Settlements (14,298) (14,298) (14,300) (28) — (14,328) Transfers into (out of) Level 3 — — — — — — Balance at end of period $ 66,738 66,738 87,573 5,497 — 93,070 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: Net investment income $ 62,328 62,328 — — — — Benefits and expenses — — 62,328 2,444 (4,174) 60,598 Total $ 62,328 62,328 62,328 2,444 (4,174) 60,598 For the Six Months Ended June 30, 2021 Assets Other Liabilities Derivatives, Index Options Mortgage Loans Total Assets Policyholder Account Balances Stock Options Total Other Liabilities (In thousands) Beginning balance, January 1, 2021 $ 132,821 — 132,821 161,351 6,202 167,553 Total realized and unrealized gains (losses): Included in net earnings 68,190 35 68,225 80,085 3,918 84,003 Included in other comprehensive income — — — — — — Purchases, sales, issuances and settlements, net: Purchases 22,183 2,694 24,877 22,183 — 22,183 Sales — — — — — — Issuances — — — — — — Settlements (108,354) — (108,354) (108,354) (1,976) (110,330) Transfers into (out of) Level 3 — — — — — — Balance at end of period $ 114,840 2,729 117,569 155,265 8,144 163,409 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: Net investment income $ 51,361 35 51,396 — — — Benefits and expenses — — — 51,361 3,917 55,278 Total $ 51,361 $ 35 51,396 51,361 3,917 55,278 For the Six Months Ended June 30, 2020 Assets Other Liabilities Derivatives, Index Options Total Assets Policyholder Account Balances Stock Options Contingent Consideration Total Other Liabilities (In thousands) Beginning balance, January 1, 2020 $ 157,588 157,588 155,902 11,225 4,076 171,203 Total realized and unrealized gains (losses): Included in net earnings (66,386) (66,386) (43,865) (3,849) (4,076) (51,790) Included in other comprehensive income — — — — — — Purchases, sales, issuances and settlements, net: Purchases 38,861 38,861 38,861 — — 38,861 Sales — — — — — — Issuances — — — — — — Settlements (63,325) (63,325) (63,325) (1,879) — (65,204) Transfers into (out of) Level 3 — — — — — — Balance at end of period $ 66,738 66,738 87,573 5,497 — 93,070 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: Net investment income $ (43,670) (43,670) — — — — Benefits and expenses — — (43,670) (3,849) (4,076) (51,595) Total $ (43,670) (43,670) (43,670) (3,849) (4,076) (51,595) |
Schedule of quantitative information of Level 3 assets | The following table presents the valuation method for financial assets and liabilities categorized as level 3, as well as the unobservable inputs used in the valuation of those financial instruments: June 30, 2021 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands) Assets: Derivatives, index options $ 114,840 Broker prices Implied volatility 11.76% - 27.41% (17.04%) Mortgage loans 2,729 Discounted cash flow Spread 180 - 280 bps Total assets $ 117,569 Liabilities: Policyholder account balances $ 155,265 Deterministic cash flow model Projected option cost 0.0% - 19.67% (3.01%) Share-based compensation 8,144 Black-Scholes model Expected term 0.5 to 9.4 years Expected volatility 34.08% Total liabilities $ 163,409 December 31, 2020 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands) Assets: Derivatives, index options $ 132,821 Broker prices Implied volatility 12.96% - 53.69% (20.70%) Total assets $ 132,821 Liabilities: Policyholder account balances $ 161,351 Deterministic cash flow model Projected option cost 0.0% - 45.04% (3.27%) Share-based compensation 6,202 Black-Scholes model Expected term 1.0 to 9.9 years Expected volatility 33.47% Total liabilities $ 167,553 |
Schedule of carrying amounts and fair values of the company's financial instruments | The carrying amounts and fair values of the Company's financial instruments are as follows: June 30, 2021 Fair Value Hierarchy Level Carrying Fair Level 1 Level 2 Level 3 (In thousands) ASSETS Debt securities, available-for-sale $ 9,617,027 9,617,027 — 9,617,027 — Debt securities, trading 1,066,454 1,066,454 — 1,066,454 — Cash and cash equivalents 395,833 395,833 395,833 — — Mortgage loans 394,112 408,450 — — 408,450 Real estate 33,495 51,627 — 4,600 47,027 Policy loans 71,640 111,658 — — 111,658 Other loans 26,818 27,102 — — 27,102 Derivatives, index options 114,840 114,840 — — 114,840 Equity securities 21,132 21,132 21,132 — — Life interest in Libbie Shearn Moody Trust 9,083 12,775 — — 12,775 Other investments 4,513 24,852 — — 24,852 LIABILITIES Deferred annuity contracts $ 6,551,387 5,192,886 — — 5,192,886 Immediate annuity and supplemental contracts 421,952 461,871 — — 461,871 December 31, 2020 Fair Value Hierarchy Level Carrying Fair Level 1 Level 2 Level 3 (In thousands) ASSETS Debt securities, available-for-sale $ 10,770,923 10,770,923 — 10,770,923 — Cash and cash equivalents 581,059 581,059 581,059 — — Mortgage loans 332,521 348,175 — — 348,175 Real estate 33,783 48,577 — — 48,577 Policy loans 74,083 121,260 — — 121,260 Other loans 23,396 23,691 — — 23,691 Derivatives, index options 132,821 132,821 — — 132,821 Equity securities 17,744 17,744 17,744 — — Life interest in Libbie Shearn Moody Trust 9,083 12,775 — — 12,775 Other investments 4,513 22,580 — — 22,580 LIABILITIES Deferred annuity contracts $ 6,662,730 5,192,663 — — 5,192,663 Immediate annuity and supplemental contracts 412,526 467,538 — — 467,538 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair value of derivative instruments | The tables below present the fair value of derivative instruments as of June 30, 2021 and December 31, 2020, respectively. June 30, 2021 Asset Derivatives Liability Derivatives Balance Fair Balance Fair (In thousands) (In thousands) Derivatives not designated as hedging instruments Equity index options Derivatives, Index Options $ 114,840 Fixed-index products Universal Life and Annuity Contracts $ 155,265 Embedded derivative on reinsurance contract Funds Withheld Liability (72,340) Total $ 114,840 $ 82,925 December 31, 2020 Asset Derivatives Liability Derivatives Balance Fair Balance Fair (In thousands) (In thousands) Derivatives not designated as hedging instruments Equity index options Derivatives, Index Options $ 132,821 Fixed-index products Universal Life and Annuity Contracts $ 161,351 Total $ 132,821 $ 161,351 |
Schedule of derivative instruments in the condensed consolidated statements of earnings | The table below presents the effect of derivative instruments in the Condensed Consolidated Statements of Earnings for the three months ended June 30, 2021 and 2020. June 30, June 30, Derivatives Not Designated Location of Gain Amount of Gain or (In thousands) Equity index options Net investment income $ 40,166 40,243 Fixed-index products Universal life and annuity contract interest (48,819) (23,790) Embedded derivative on reinsurance contract Net investment income 1,970 — $ (6,683) 16,453 The table below presents the effect of derivative instruments in the Condensed Consolidated Statements of Earnings for the six months ended June 30, 2021 and 2020. June 30, June 30, Derivatives Not Designated Location of Gain Amount of Gain or (In thousands) Equity index options Net investment income $ 68,190 (66,386) Fixed-index products Universal life and annuity contract interest (80,085) 43,865 Embedded derivative on reinsurance contract Net investment income 72,340 — $ 60,445 (22,521) |
Intangibles, Value of Busines_2
Intangibles, Value of Business Acquired, and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of fair value of identifiable intangible assets acquired | The gross carrying amounts and accumulated amortization for intangible assets are as follows for the dates shown. June 30, 2021 December 31, 2020 Weighted-Average Amortization Period Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Trademarks/trade names 15 $ 2,800 (451) 2,800 (358) Internally developed software 7 3,800 (1,312) 3,800 (1,040) Insurance licenses N/A 3,000 — 3,000 — $ 9,600 (1,763) 9,600 (1,398) |
Schedule of finite-lived intangible assets, future amortization expense | As of June 30, 2021, expected amortization expense relating to purchased intangible assets for each of the next 5 years and thereafter is as follows: Expected (In thousands) Remainder of 2021 $ 365 2022 730 2023 730 2024 730 2025 730 Thereafter 1,552 |
Schedule of changes in VOBA | Changes in VOBA were as follows for the periods shown: June 30, December 31, 2021 2020 (In thousands) Balance, beginning of year $ 162,968 138,071 Other increase — 35,125 Amortization: Amortization, excluding unlocking (4,801) (10,228) Balance as of end of period $ 158,167 162,968 |
Schedule of expected amortization of VOBA | Estimated future amortization of VOBA, net of interest (in thousands), as of June 30, 2021, is as follows: Expected Amortization (In thousands) Remainder of 2021 $ 5,114 2022 9,753 2023 9,368 2024 9,015 2025 8,804 |
Schedule of changes in carrying amount of goodwill | The changes in the carrying amount of goodwill (in thousands) were as follows: June 30, December 31, 2021 2020 (In thousands) Gross goodwill as of beginning of year $ 13,864 13,864 Goodwill resulting from business acquisition — — Gross goodwill, before impairments 13,864 13,864 Accumulated impairment as of beginning of year — — Current year impairments — — Net goodwill as of end of period $ 13,864 13,864 |
Consolidation and Basis of Pr_3
Consolidation and Basis of Presentation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other net investment gains | $ 3,415 | $ 3,125 | $ 4,831 | $ 6,610 |
Earnings before Federal income taxes | 62,697 | 60,558 | 141,017 | 57,579 |
Federal income taxes | 12,798 | 12,145 | 28,989 | 11,228 |
Net earnings | 49,899 | 48,413 | 112,028 | 46,351 |
Unrealized Gains and Losses on Available-for-sale Securities | Amount Reclassified From Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other net investment gains | 4,823 | 1,729 | 6,239 | 2,491 |
Earnings before Federal income taxes | 4,823 | 1,729 | 6,239 | 2,491 |
Federal income taxes | 1,013 | 363 | 1,310 | 523 |
Net earnings | $ 3,810 | $ 1,366 | $ 4,929 | $ 1,968 |
New Accounting Pronouncements_2
New Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Retained earnings | $ 2,214,605 | $ 2,102,577 | ||||
Valuation allowance for mortgage loans | 3,238 | 2,486 | ||||
Debt securities held to maturity, allowance for expected credit losses | $ 0 | $ 0 | 0 | $ 4,940 | $ 6,039 | $ 0 |
Cumulative Effect, Period Of Adoption, Adjustment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Retained earnings | 3,000 | |||||
Valuation allowance for mortgage loans | 1,200 | |||||
Debt securities held to maturity, allowance for expected credit losses | $ 0 | $ 0 | $ 0 | $ 3,334 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
NWLIC | ||||
Dividends Payable [Line Items] | ||||
Maximum dividend payment which may be paid without prior approval | $ 10,000,000 | $ 10,000,000 | ||
Dividends | 0 | $ 0 | ||
Ozark National Life Insurance Company | ||||
Dividends Payable [Line Items] | ||||
Maximum dividend payment which may be paid without prior approval | 20,000,000 | 20,000,000 | ||
National Western Life Group Inc | ||||
Dividends Payable [Line Items] | ||||
Dividends | $ 0 | 0 | ||
Class B | ||||
Dividends Payable [Line Items] | ||||
Dividends in kind paid to common stockholders compare to other classes | 50.00% | |||
Dividends | 0 | $ 0 | $ 0 | 0 |
Class A | ||||
Dividends Payable [Line Items] | ||||
Percent of board of directors elected | 33.33% | |||
Dividends | $ 0 | $ 0 | $ 0 | $ 0 |
Board of Directors Chairman | Class B | ||||
Dividends Payable [Line Items] | ||||
Common stock, percentage ownership | 99.00% | 99.00% |
Earnings Per Share - EPS Calcul
Earnings Per Share - EPS Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Numerator for Basic and Diluted Earnings Per Share: | ||||
Net earnings | $ 49,899 | $ 48,413 | $ 112,028 | $ 46,351 |
Undistributed earnings | 49,899 | 48,413 | 112,028 | 46,351 |
Allocation of net earnings: | ||||
Undistributed earnings | 49,899 | 48,413 | 112,028 | 46,351 |
Net earnings | 49,899 | 48,413 | 112,028 | 46,351 |
Class A | ||||
Numerator for Basic and Diluted Earnings Per Share: | ||||
Net earnings | 48,488 | 47,044 | 108,860 | 45,040 |
Dividends | 0 | 0 | 0 | 0 |
Undistributed earnings | 48,488 | 47,044 | 108,860 | 45,040 |
Allocation of net earnings: | ||||
Dividends | 0 | 0 | 0 | 0 |
Undistributed earnings | 48,488 | 47,044 | 108,860 | 45,040 |
Net earnings | $ 48,488 | $ 47,044 | $ 108,860 | $ 45,040 |
Denominator: | ||||
Basic earnings (loss) per share - weighted-average shares (in shares) | 3,436 | 3,436 | 3,436 | 3,436 |
Effect of dilutive stock options (in shares) | 0 | 0 | 0 | 0 |
Diluted earnings (loss) per share - adjusted weighted-average shares for assumed conversions (in shares) | 3,436 | 3,436 | 3,436 | 3,436 |
Basic earnings per share (in dollars per share) | $ 14.11 | $ 13.69 | $ 31.68 | $ 13.11 |
Diluted earnings per share (in dollars per share) | $ 14.11 | $ 13.69 | $ 31.68 | $ 13.11 |
Class B | ||||
Numerator for Basic and Diluted Earnings Per Share: | ||||
Net earnings | $ 1,411 | $ 1,369 | $ 3,168 | $ 1,311 |
Dividends | 0 | 0 | 0 | 0 |
Undistributed earnings | 1,411 | 1,369 | 3,168 | 1,311 |
Allocation of net earnings: | ||||
Dividends | 0 | 0 | 0 | 0 |
Undistributed earnings | 1,411 | 1,369 | 3,168 | 1,311 |
Net earnings | $ 1,411 | $ 1,369 | $ 3,168 | $ 1,311 |
Denominator: | ||||
Basic earnings (loss) per share - weighted-average shares (in shares) | 200 | 200 | 200 | 200 |
Effect of dilutive stock options (in shares) | 0 | 0 | 0 | 0 |
Diluted earnings (loss) per share - adjusted weighted-average shares for assumed conversions (in shares) | 200 | 200 | 200 | 200 |
Basic earnings per share (in dollars per share) | $ 7.06 | $ 6.85 | $ 15.84 | $ 6.55 |
Diluted earnings per share (in dollars per share) | $ 7.06 | $ 6.85 | $ 15.84 | $ 6.55 |
Pension and Other Postretirem_3
Pension and Other Postretirement Plans - Narrative (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2021USD ($)benefit_plan | Dec. 31, 2007 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Number of non-qualified defined benefit pension plans | benefit_plan | 3 | |
Number of healthcare plans | benefit_plan | 2 | |
Defined Benefit Pension Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Vesting percentage in accrued benefits from plan freeze | 100.00% | |
Minimum required contribution | $ 0 | |
Planned contributions remaining | 0.7 | |
Company contributions to 2020 year plan | 0.2 | |
Company contributions to plan | 0 | |
Chairman and President Non-Qualified Defined Benefit Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Company contributions to plan | 0.9 | |
Company expected contributions to plans in fiscal year | $ 2 | |
Minimum | Chairman and President Non-Qualified Defined Benefit Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Aggregate average annual participant salary increase | 10.00% |
Pension and Other Postretirem_4
Pension and Other Postretirement Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Defined Benefit Pension Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 30 | $ 27 | $ 60 | $ 54 |
Interest cost | 131 | 169 | 263 | 337 |
Expected return on plan assets | (356) | (316) | (712) | (631) |
Amortization of net loss | 135 | 145 | 269 | 290 |
Net periodic benefit cost | (60) | 25 | (120) | 50 |
Chairman and President Non-Qualified Defined Benefit Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 309 | 303 | 618 | 605 |
Interest cost | 260 | 337 | 521 | 675 |
Amortization of prior service cost | 15 | 15 | 30 | 30 |
Amortization of net loss | 1,283 | 1,445 | 2,565 | 2,890 |
Net periodic benefit cost | 1,867 | 2,100 | 3,734 | 4,200 |
Postretirement Employment Plans Other Than Pension | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Interest cost | 37 | 42 | 74 | 83 |
Amortization of net loss | 73 | 39 | 146 | 79 |
Net periodic benefit cost | $ 110 | $ 81 | $ 220 | $ 162 |
Segment and Other Operating I_3
Segment and Other Operating Information - Balance Sheet Items (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Total segment assets | $ 14,470,139 | $ 14,648,270 |
Other policyholder liabilities | 134,417 | 138,480 |
Funds withheld liability | 1,594,020 | 1,697,591 |
Segments | ||
Segment Reporting Information [Line Items] | ||
Deferred transaction costs | 788,447 | 691,733 |
Total segment assets | 13,854,863 | 13,753,320 |
Future policy benefits | 9,929,274 | 9,933,419 |
Other policyholder liabilities | 134,417 | 138,480 |
Funds withheld liability | 1,594,020 | 1,697,591 |
Segments | Domestic Life Insurance | ||
Segment Reporting Information [Line Items] | ||
Deferred transaction costs | 112,847 | 94,100 |
Total segment assets | 1,716,487 | 3,242,794 |
Future policy benefits | 1,443,093 | 1,337,174 |
Other policyholder liabilities | 17,991 | 16,378 |
Funds withheld liability | 0 | 0 |
Segments | International Life Insurance | ||
Segment Reporting Information [Line Items] | ||
Deferred transaction costs | 130,696 | 124,480 |
Total segment assets | 1,021,962 | 1,034,280 |
Future policy benefits | 783,053 | 798,952 |
Other policyholder liabilities | 12,695 | 11,086 |
Funds withheld liability | 0 | 0 |
Segments | Annuities | ||
Segment Reporting Information [Line Items] | ||
Deferred transaction costs | 377,369 | 302,397 |
Total segment assets | 9,626,473 | 7,976,588 |
Future policy benefits | 6,929,958 | 7,028,860 |
Other policyholder liabilities | 89,115 | 94,049 |
Funds withheld liability | 1,594,020 | 1,697,591 |
Segments | ONL & Affiliates | ||
Segment Reporting Information [Line Items] | ||
Deferred transaction costs | 167,535 | 170,756 |
Total segment assets | 1,108,040 | 1,117,509 |
Future policy benefits | 773,170 | 768,433 |
Other policyholder liabilities | 14,616 | 16,967 |
Funds withheld liability | 0 | 0 |
Segments | All Others | ||
Segment Reporting Information [Line Items] | ||
Deferred transaction costs | 0 | 0 |
Total segment assets | 381,901 | 382,149 |
Future policy benefits | 0 | 0 |
Other policyholder liabilities | 0 | 0 |
Funds withheld liability | $ 0 | $ 0 |
Segment and Other Operating I_4
Segment and Other Operating Information - Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Condensed Consolidated Income Statements: | ||||
Premiums and contract revenues | $ 56,172 | $ 59,610 | $ 113,645 | $ 118,438 |
Net investment income | 156,544 | 145,694 | 322,619 | 132,215 |
Other revenues | 6,034 | 7,586 | 11,448 | 11,240 |
Total revenues | 222,165 | 216,015 | 452,543 | 268,503 |
Life and other policy benefits | 35,904 | 33,431 | 73,793 | 67,065 |
Amortization of deferred transaction costs | 25,123 | 31,100 | 55,112 | 61,137 |
Universal life and annuity contract interest | 69,973 | 61,772 | 122,818 | 33,746 |
Other operating expenses | 28,468 | 29,154 | 59,803 | 48,976 |
Federal income taxes | 12,798 | 12,145 | 28,989 | 11,228 |
Net earnings | 49,899 | 48,413 | 112,028 | 46,351 |
Segments | ||||
Condensed Consolidated Income Statements: | ||||
Premiums and contract revenues | 56,172 | 59,610 | 113,645 | 118,438 |
Net investment income | 156,544 | 145,694 | 322,619 | 132,215 |
Other revenues | 6,034 | 7,586 | 11,448 | 11,240 |
Total revenues | 218,750 | 212,890 | 447,712 | 261,893 |
Life and other policy benefits | 35,904 | 33,431 | 73,793 | 67,065 |
Amortization of deferred transaction costs | 25,123 | 31,100 | 55,112 | 61,137 |
Universal life and annuity contract interest | 69,973 | 61,772 | 122,818 | 33,746 |
Other operating expenses | 28,468 | 29,154 | 59,803 | 48,976 |
Federal income taxes | 12,080 | 11,489 | 27,974 | 9,840 |
Total expenses | 171,548 | 166,946 | 339,500 | 220,764 |
Net earnings | 47,202 | 45,944 | 108,212 | 41,129 |
Segments | Domestic Life Insurance | ||||
Condensed Consolidated Income Statements: | ||||
Premiums and contract revenues | 12,475 | 12,009 | 26,373 | 23,237 |
Net investment income | 28,247 | 21,475 | 52,090 | 2,092 |
Other revenues | 31 | 1 | 52 | 30 |
Total revenues | 40,753 | 33,485 | 78,515 | 25,359 |
Life and other policy benefits | 5,007 | 4,169 | 11,117 | 10,046 |
Amortization of deferred transaction costs | 153 | 3,209 | 5,613 | 5,782 |
Universal life and annuity contract interest | 25,466 | 19,172 | 47,087 | (2,521) |
Other operating expenses | 5,482 | 5,643 | 12,929 | 9,938 |
Federal income taxes | 958 | 172 | 364 | 360 |
Total expenses | 37,066 | 32,365 | 77,110 | 23,605 |
Net earnings | 3,687 | 1,120 | 1,405 | 1,754 |
Segments | International Life Insurance | ||||
Condensed Consolidated Income Statements: | ||||
Premiums and contract revenues | 20,656 | 23,061 | 40,836 | 45,928 |
Net investment income | 13,847 | 11,153 | 25,963 | 2,153 |
Other revenues | 44 | (6) | 72 | 48 |
Total revenues | 34,547 | 34,208 | 66,871 | 48,129 |
Life and other policy benefits | 5,302 | 3,684 | 9,677 | 7,015 |
Amortization of deferred transaction costs | 6,163 | 6,844 | 11,555 | 12,896 |
Universal life and annuity contract interest | 12,226 | 9,492 | 23,025 | (1,345) |
Other operating expenses | 4,646 | 4,517 | 9,420 | 7,613 |
Federal income taxes | 1,268 | 934 | 2,711 | 3,738 |
Total expenses | 29,605 | 25,471 | 56,388 | 29,917 |
Net earnings | 4,942 | 8,737 | 10,483 | 18,212 |
Segments | Annuities | ||||
Condensed Consolidated Income Statements: | ||||
Premiums and contract revenues | 3,742 | 4,699 | 7,672 | 9,349 |
Net investment income | 100,199 | 97,666 | 219,923 | 108,297 |
Other revenues | 1,389 | (8) | 2,763 | (4) |
Total revenues | 105,330 | 102,357 | 230,358 | 117,642 |
Life and other policy benefits | 9,829 | 8,880 | 19,830 | 17,069 |
Amortization of deferred transaction costs | 16,378 | 19,344 | 32,825 | 38,365 |
Universal life and annuity contract interest | 32,281 | 33,108 | 52,706 | 37,612 |
Other operating expenses | 11,864 | 12,715 | 24,794 | 19,582 |
Federal income taxes | 7,115 | 6,173 | 20,591 | 854 |
Total expenses | 77,467 | 80,220 | 150,746 | 113,482 |
Net earnings | 27,863 | 22,137 | 79,612 | 4,160 |
Segments | ONL & Affiliates | ||||
Condensed Consolidated Income Statements: | ||||
Premiums and contract revenues | 19,299 | 19,841 | 38,764 | 39,924 |
Net investment income | 6,780 | 6,549 | 13,354 | 12,850 |
Other revenues | 3,273 | 2,319 | 6,199 | 4,741 |
Total revenues | 29,352 | 28,709 | 58,317 | 57,515 |
Life and other policy benefits | 15,766 | 16,698 | 33,169 | 32,935 |
Amortization of deferred transaction costs | 2,429 | 1,703 | 5,119 | 4,094 |
Universal life and annuity contract interest | 0 | 0 | 0 | 0 |
Other operating expenses | 4,933 | 4,794 | 9,679 | 8,863 |
Federal income taxes | 1,258 | 1,918 | 2,115 | 3,140 |
Total expenses | 24,386 | 25,113 | 50,082 | 49,032 |
Net earnings | 4,966 | 3,596 | 8,235 | 8,483 |
Segments | All Others | ||||
Condensed Consolidated Income Statements: | ||||
Premiums and contract revenues | 0 | 0 | 0 | 0 |
Net investment income | 7,471 | 8,851 | 11,289 | 6,823 |
Other revenues | 1,297 | 5,280 | 2,362 | 6,425 |
Total revenues | 8,768 | 14,131 | 13,651 | 13,248 |
Life and other policy benefits | 0 | 0 | 0 | 0 |
Amortization of deferred transaction costs | 0 | 0 | 0 | 0 |
Universal life and annuity contract interest | 0 | 0 | 0 | 0 |
Other operating expenses | 1,543 | 1,485 | 2,981 | 2,980 |
Federal income taxes | 1,481 | 2,292 | 2,193 | 1,748 |
Total expenses | 3,024 | 3,777 | 5,174 | 4,728 |
Net earnings | $ 5,744 | $ 10,354 | $ 8,477 | $ 8,520 |
Segment and Other Operating I_5
Segment and Other Operating Information - Premiums and Other Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting [Abstract] | ||||
Premiums and contract revenues | $ 56,172 | $ 59,610 | $ 113,645 | $ 118,438 |
Net investment income | 156,544 | 145,694 | 322,619 | 132,215 |
Other revenues | 6,034 | 7,586 | 11,448 | 11,240 |
Realized gains on investments | 3,415 | 3,125 | 4,831 | 6,610 |
Total revenues | $ 222,165 | $ 216,015 | $ 452,543 | $ 268,503 |
Segment and Other Operating I_6
Segment and Other Operating Information - Federal Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Federal income taxes | $ 12,798 | $ 12,145 | $ 28,989 | $ 11,228 |
Segments | ||||
Segment Reporting Information [Line Items] | ||||
Federal income taxes | 12,080 | 11,489 | 27,974 | 9,840 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Taxes on realized gains on investments | $ 718 | $ 656 | $ 1,015 | $ 1,388 |
Segment and Other Operating I_7
Segment and Other Operating Information - Net Earnings (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Net earnings | $ 49,899 | $ 48,413 | $ 112,028 | $ 46,351 |
Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net earnings | 47,202 | 45,944 | 108,212 | 41,129 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Realized gains on investments, net of taxes | $ 2,697 | $ 2,469 | $ 3,816 | $ 5,222 |
Segment and Other Operating I_8
Segment and Other Operating Information - Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Total condensed consolidated assets | $ 14,470,139 | $ 14,648,270 |
Segments | ||
Segment Reporting Information [Line Items] | ||
Total condensed consolidated assets | 13,854,863 | 13,753,320 |
Other unallocated | ||
Segment Reporting Information [Line Items] | ||
Total condensed consolidated assets | $ 615,276 | $ 894,950 |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) - USD ($) | Jun. 15, 2016 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 20, 2008 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Period in force, from which option holders may elect to sell back acquired shares | 90 days | ||||||||
Compensation cost not yet recognized | $ 8,100,000 | $ 8,100,000 | $ 6,200,000 | ||||||
Total intrinsic value of options exercised | 2,000,000 | $ 1,900,000 | |||||||
Fair value of vested awards | 0 | 1,800,000 | |||||||
Cash received from exercise of stock options | $ 0 | 0 | |||||||
Shares outstanding (in shares) | 0 | 0 | 0 | ||||||
Closing stock price (in dollars per share) | $ 224.39 | $ 224.39 | |||||||
Pre-tax compensation cost (benefit) recognized | $ (500,000) | $ 2,400,000 | $ 3,900,000 | (3,800,000) | |||||
Compensation cost (benefit), tax expense (benefit) | 100,000 | $ (500,000) | (800,000) | $ 800,000 | |||||
Compensation cost related to nonvested options not yet recognized | $ 7,400,000 | $ 7,400,000 | |||||||
Weighted average period over which the compensation is expected to be recognized | 1 year 3 months 18 days | ||||||||
Officers and Directors | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares granted (in shares) | 0 | 0 | |||||||
Employee SARs granted before 2016 | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Requisite service period of awards | 3 years | ||||||||
Employee SARs | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Requisite service period of awards | 1 year | ||||||||
Employee Stock Options and SARs | Director | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Requisite service period of awards | 1 year | ||||||||
RSU | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 100.00% | ||||||||
Requisite service period of awards | 3 years | 3 years | |||||||
Vesting period | 3 years | ||||||||
RSU | Director | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Requisite service period of awards | 1 year | ||||||||
PSU | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 3 years | ||||||||
Performance period | 3 years | ||||||||
Performance outcome period | 3 years | ||||||||
Award measurement period | 3 years | 3 years | |||||||
Performance factor used to determine compensation payout percentage | 85.16% | 101.19% | |||||||
SAR | 132.56 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Exercise price (in dollars per share) | $ 132.56 | ||||||||
Weighted average remaining contractual life | 6 months | ||||||||
SAR | 132.56 | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Weighted average remaining contractual life | 1 year | ||||||||
Vesting Service Period, Trench One | Employee SARs granted before 2016 | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 20.00% | ||||||||
Vesting Service Period, Trench One | Employee SARs | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 33.30% | ||||||||
Vesting Service Period, Trench One | Employee Stock Options and SARs | Director | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 20.00% | ||||||||
Vesting Service Period, Trench Two | Employee SARs granted before 2016 | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 20.00% | ||||||||
Vesting Service Period, Trench Two | Employee SARs | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 33.30% | ||||||||
Vesting Service Period, Trench Two | Employee Stock Options and SARs | Director | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 20.00% | ||||||||
Vesting Service Period, Trench Three | Employee SARs granted before 2016 | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 20.00% | ||||||||
Vesting Service Period, Trench Three | Employee SARs | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 33.30% | ||||||||
Vesting Service Period, Trench Three | Employee Stock Options and SARs | Director | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 20.00% | ||||||||
Vesting Service Period, Trench Four | Employee SARs granted before 2016 | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 20.00% | ||||||||
Vesting Service Period, Trench Four | Employee Stock Options and SARs | Director | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 20.00% | ||||||||
Vesting Service Period, Trench Five | Employee SARs granted before 2016 | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 20.00% | ||||||||
Vesting Service Period, Trench Five | Employee Stock Options and SARs | Director | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 20.00% | ||||||||
2008 Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Term of extension | 10 years | ||||||||
Class A | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||||||
Class A | RSU | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting price determining period | 20 days | ||||||||
Class A | RSU | Director | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting price determining period | 20 days | ||||||||
Class A | PSU | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting price determining period | 20 days | ||||||||
Class A | 2008 Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common stock, par value (in dollars per share) | $ 1 | ||||||||
Share-based payments, number of shares authorized under plans (in shares) | 300,000 |
Share-Based Payments - Options
Share-Based Payments - Options and Stock Appreciation Rights Outstanding (Details) | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Shares Available For Grant | |
Beginning balance (in shares) | 291,000 |
Exercised (in shares) | 0 |
Forfeited (in shares) | 0 |
Expired (in shares) | 0 |
Stock options granted (in shares) | 0 |
Ending balance (in shares) | 291,000 |
Stock Option Outstanding, Shares | |
Beginning balance (in shares) | 0 |
Exercised (in shares) | 0 |
Forfeited (in shares) | 0 |
Expired (in shares) | 0 |
Stock option granted (in shares) | 0 |
Ending balance (in shares) | 0 |
Stock Option Outstanding, Weighted-Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 0 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Expired (in dollars per share) | $ / shares | 0 |
Stock option granted (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | $ 0 |
SAR | |
Liability Awards | |
Beginning balance (in shares) | 144,248 |
Exercised (in shares) | (10,800) |
Forfeited (in shares) | (730) |
Granted (in shares) | 0 |
Ending balance (in shares) | 132,718 |
RSU | |
Liability Awards | |
Beginning balance (in shares) | 16,449 |
Exercised (in shares) | 0 |
Forfeited (in shares) | (157) |
Granted (in shares) | 0 |
Ending balance (in shares) | 16,292 |
PSU | |
Liability Awards | |
Beginning balance (in shares) | 24,282 |
Exercised (in shares) | (3,863) |
Forfeited (in shares) | 0 |
Granted (in shares) | 0 |
Ending balance (in shares) | 20,419 |
Share-Based Payments - Exercise
Share-Based Payments - Exercise Range (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($)$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number Outstanding (in shares) | 132,718 |
Number Exercisable (in shares) | 75,661 |
SAR | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number Outstanding, Aggregate intrinsic value | $ | $ 2,494 |
Options Exercisable, Aggregate intrinsic value | $ | $ 1,184 |
SAR | 132.56 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 132.56 |
Number Outstanding (in shares) | 8,318 |
Weighted- Average Remaining Contractual Life | 6 months |
Number Exercisable (in shares) | 8,318 |
SAR | 210.22 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 210.22 |
Number Outstanding (in shares) | 23,450 |
Weighted- Average Remaining Contractual Life | 2 years 4 months 24 days |
Number Exercisable (in shares) | 23,450 |
SAR | 216.48 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 216.48 |
Number Outstanding (in shares) | 11,149 |
Weighted- Average Remaining Contractual Life | 4 years 7 months 6 days |
Number Exercisable (in shares) | 11,149 |
SAR | 311.16 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 311.16 |
Number Outstanding (in shares) | 9,531 |
Weighted- Average Remaining Contractual Life | 5 years 7 months 6 days |
Number Exercisable (in shares) | 9,531 |
SAR | 310.55 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 310.55 |
Number Outstanding (in shares) | 203 |
Weighted- Average Remaining Contractual Life | 5 years 9 months 18 days |
Number Exercisable (in shares) | 203 |
SAR | 334.34 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 334.34 |
Number Outstanding (in shares) | 9,018 |
Weighted- Average Remaining Contractual Life | 6 years 4 months 24 days |
Number Exercisable (in shares) | 9,018 |
SAR | 303.77 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 303.77 |
Number Outstanding (in shares) | 11,178 |
Weighted- Average Remaining Contractual Life | 7 years 4 months 24 days |
Number Exercisable (in shares) | 7,483 |
SAR | 252.91 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 252.91 |
Number Outstanding (in shares) | 19,323 |
Weighted- Average Remaining Contractual Life | 8 years 4 months 24 days |
Number Exercisable (in shares) | 6,509 |
SAR | 192.1 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 192.10 |
Number Outstanding (in shares) | 40,548 |
Weighted- Average Remaining Contractual Life | 9 years 4 months 24 days |
Number Exercisable (in shares) | 0 |
Share-Based Payments - Black Sc
Share-Based Payments - Black Scholes Option Pricing Model Assumptions (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield | 0.16% | 0.17% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 6 months | 1 year |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 9 years 4 months 24 days | 9 years 10 months 24 days |
Weighted-Average | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility weighted-average | 34.08% | 33.47% |
Risk-free rate weighted-average | 0.50% | 0.19% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Nov. 11, 2019 | Jul. 27, 2019 | Nov. 11, 2018 | Jun. 30, 2021 | Apr. 30, 2019 |
New Loans | |||||
Loss Contingencies [Line Items] | |||||
Other commitment | $ 26,000,000 | ||||
Existing Loans | |||||
Loss Contingencies [Line Items] | |||||
Other commitment | 0 | ||||
Capital Contributions to Investment Funds | |||||
Loss Contingencies [Line Items] | |||||
Other commitment | $ 210,200,000 | ||||
Williams v Pantaleoni et al | |||||
Loss Contingencies [Line Items] | |||||
Equity indexed annuity | $ 100,000 | ||||
Judicial Ruling | National Western Life Insurance Company and National Western Life Group, Inc. v. Ross Rankin Moody et. al | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, damages awarded | $ 1,314,054 | ||||
Judicial Ruling | Williams v Pantaleoni et al | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, damages awarded | $ 1,260,000 | ||||
Loss contingency, compensatory damages awarded | $ 14,949 | ||||
Loss contingency, punitive damages awarded | $ 2,900,000 |
Investments - Investment Gains
Investments - Investment Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Available-for-sale debt securities: | ||||
Realized gains on disposal | $ 4,823 | $ 1,730 | $ 6,239 | $ 2,491 |
Realized losses on disposal | 0 | 0 | 0 | 0 |
Held-to-maturity debt securities: | ||||
Realized gains on disposal | 0 | 1,395 | 0 | 4,119 |
Realized losses on disposal | 0 | 0 | 0 | 0 |
Real estate gains (losses) | (1,407) | 0 | (1,407) | 0 |
Other | (1) | 0 | (1) | 0 |
Totals | $ 3,415 | $ 3,125 | $ 4,831 | $ 6,610 |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2021USD ($) | Jun. 30, 2020 | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)loan | Jun. 30, 2021 | Jun. 30, 2021issue | Jun. 30, 2021security | Dec. 31, 2019USD ($) | |
Schedule of Investments [Line Items] | |||||||||
Percentage of gains on bonds due to calls of securities | 100.00% | 99.90% | 100.00% | 99.80% | |||||
Debt securities, available-for-sale | $ 9,617,027 | $ 9,617,027 | $ 10,770,923 | ||||||
Loans originated during the year | 70,300 | 80,200 | |||||||
Valuation allowance for mortgage loans | 3,238 | 3,238 | 2,486 | ||||||
Retained earnings | 2,214,605 | 2,214,605 | 2,102,577 | ||||||
Other long-term investments | 126,604 | 126,604 | 104,113 | ||||||
Other-than-temporary impairment losses | 1,400 | ||||||||
Fair value investment, net of cost to sell asset | 12,200 | ||||||||
Real Estate | |||||||||
Schedule of Investments [Line Items] | |||||||||
Other long-term investments | 33,500 | 33,500 | $ 33,800 | ||||||
Operating income from real estate | 1,400 | $ 1,500 | |||||||
Cumulative Effect, Period of Adoption, Adjusted Balance | |||||||||
Schedule of Investments [Line Items] | |||||||||
Valuation allowance for mortgage loans | $ 1,200 | ||||||||
Cumulative Effect, Period Of Adoption, Adjustment | |||||||||
Schedule of Investments [Line Items] | |||||||||
Valuation allowance for mortgage loans | 1,200 | ||||||||
Retained earnings | 3,000 | ||||||||
Cumulative Effect, Period Of Adoption, Adjustment | Accounting Standards Update 2016-13 | |||||||||
Schedule of Investments [Line Items] | |||||||||
Retained earnings | $ 400 | ||||||||
Loans In Forbearance | |||||||||
Schedule of Investments [Line Items] | |||||||||
Number of loans | loan | 8 | ||||||||
Loans receivable | $ 29,200 | ||||||||
Debt Securities | |||||||||
Schedule of Investments [Line Items] | |||||||||
Gross unrealized losses, number of issues | 47 | 47 | |||||||
Gross unrealized losses, percentage of total debt | 3.70% | ||||||||
Gross unrealized losses, market value as a percent of amortized cost | 97.90% | ||||||||
Gross unrealized losses, number of securities with maturities of 12 months or greater | security | 6 | ||||||||
Gross unrealized losses, number of securities with maturities of 12 months or greater percentage | 12.80% | ||||||||
Debt Securities | External Credit Rating, Investment Grade | |||||||||
Schedule of Investments [Line Items] | |||||||||
Gross unrealized losses, number of securities rated investment grade | security | 43 | ||||||||
Ozark National Life Insurance Company | |||||||||
Schedule of Investments [Line Items] | |||||||||
Debt securities, available-for-sale | $ 810,300 | $ 810,300 | $ 811,600 |
Investments - Securities Availa
Investments - Securities Available for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Debt securities: | ||||||
Amortized Cost | $ 8,973,860 | $ 9,874,543 | ||||
Gross Unrealized Gains | 651,970 | 901,223 | ||||
Gross Unrealized Losses | (8,803) | (4,843) | ||||
Fair Value | 9,617,027 | 10,770,923 | ||||
Allowance for Credit Losses | 0 | $ 0 | 0 | $ 0 | $ 0 | $ 0 |
Fair Value | ||||||
Less than 12 Months | 377,354 | 174,252 | ||||
12 Months or Greater | 23,633 | 38,414 | ||||
Total | 400,987 | 212,666 | ||||
Unrealized Losses | ||||||
Less than 12 Months | (8,116) | (3,836) | ||||
12 Months or Greater | (687) | (1,007) | ||||
Total | (8,803) | (4,843) | ||||
U.S. agencies | ||||||
Debt securities: | ||||||
Amortized Cost | 50,251 | 72,945 | ||||
Gross Unrealized Gains | 1,715 | 2,496 | ||||
Gross Unrealized Losses | 0 | 0 | ||||
Fair Value | 51,966 | 75,441 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
U.S. Treasury | ||||||
Debt securities: | ||||||
Amortized Cost | 3,160 | 3,152 | ||||
Gross Unrealized Gains | 71 | 126 | ||||
Gross Unrealized Losses | 0 | 0 | ||||
Fair Value | 3,231 | 3,278 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
States and political subdivisions | ||||||
Debt securities: | ||||||
Amortized Cost | 473,414 | 528,266 | ||||
Gross Unrealized Gains | 32,317 | 37,909 | ||||
Gross Unrealized Losses | (378) | (86) | ||||
Fair Value | 505,353 | 566,089 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | ||||||
Less than 12 Months | 14,124 | 0 | ||||
12 Months or Greater | 1,788 | 1,762 | ||||
Total | 15,912 | 1,762 | ||||
Unrealized Losses | ||||||
Less than 12 Months | (276) | 0 | ||||
12 Months or Greater | (102) | (86) | ||||
Total | (378) | (86) | ||||
Foreign governments | ||||||
Debt securities: | ||||||
Amortized Cost | 48,103 | 11,115 | ||||
Gross Unrealized Gains | 1,072 | 334 | ||||
Gross Unrealized Losses | (435) | 0 | ||||
Fair Value | 48,740 | 11,449 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | ||||||
Less than 12 Months | 7,436 | |||||
12 Months or Greater | 0 | |||||
Total | 7,436 | |||||
Unrealized Losses | ||||||
Less than 12 Months | (435) | |||||
12 Months or Greater | 0 | |||||
Total | (435) | |||||
Public utilities | ||||||
Debt securities: | ||||||
Amortized Cost | 792,134 | 831,990 | ||||
Gross Unrealized Gains | 58,495 | 77,920 | ||||
Gross Unrealized Losses | (9) | 0 | ||||
Fair Value | 850,620 | 909,910 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | ||||||
Less than 12 Months | 635 | 0 | ||||
12 Months or Greater | 0 | 0 | ||||
Total | 635 | 0 | ||||
Unrealized Losses | ||||||
Less than 12 Months | (9) | 0 | ||||
12 Months or Greater | 0 | 0 | ||||
Total | (9) | 0 | ||||
Corporate | ||||||
Debt securities: | ||||||
Amortized Cost | 6,569,365 | 7,376,104 | ||||
Gross Unrealized Gains | 518,303 | 727,470 | ||||
Gross Unrealized Losses | (7,849) | (4,601) | ||||
Fair Value | 7,079,819 | 8,098,973 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | ||||||
Less than 12 Months | 331,777 | 174,252 | ||||
12 Months or Greater | 21,845 | 36,152 | ||||
Total | 353,622 | 210,404 | ||||
Unrealized Losses | ||||||
Less than 12 Months | (7,264) | (3,836) | ||||
12 Months or Greater | (585) | (765) | ||||
Total | (7,849) | (4,601) | ||||
Commercial mortgage-backed | ||||||
Debt securities: | ||||||
Amortized Cost | 27,061 | 30,108 | ||||
Gross Unrealized Gains | 1,311 | 1,363 | ||||
Gross Unrealized Losses | 0 | 0 | ||||
Fair Value | 28,372 | 31,471 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Residential mortgage-backed | ||||||
Debt securities: | ||||||
Amortized Cost | 736,313 | 902,974 | ||||
Gross Unrealized Gains | 33,665 | 50,970 | ||||
Gross Unrealized Losses | 0 | (156) | ||||
Fair Value | 769,978 | 953,788 | ||||
Allowance for Credit Losses | 0 | 0 | ||||
Fair Value | ||||||
Less than 12 Months | 0 | |||||
12 Months or Greater | 500 | |||||
Total | 500 | |||||
Unrealized Losses | ||||||
Less than 12 Months | 0 | |||||
12 Months or Greater | (156) | |||||
Total | (156) | |||||
Asset-backed | ||||||
Debt securities: | ||||||
Amortized Cost | 274,059 | 117,889 | ||||
Gross Unrealized Gains | 5,021 | 2,635 | ||||
Gross Unrealized Losses | (132) | 0 | ||||
Fair Value | 278,948 | 120,524 | ||||
Allowance for Credit Losses | 0 | $ 0 | ||||
Fair Value | ||||||
Less than 12 Months | 23,382 | |||||
12 Months or Greater | 0 | |||||
Total | 23,382 | |||||
Unrealized Losses | ||||||
Less than 12 Months | (132) | |||||
12 Months or Greater | 0 | |||||
Total | $ (132) |
Investments - Contractual Matur
Investments - Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities Available for Sale - Amortized Cost | ||||||
Due in 1 year or less | $ 626,098 | |||||
Due after 1 year through 5 years | 3,370,526 | |||||
Due after 5 years through 10 years | 2,223,148 | |||||
Due after 10 years | 1,716,655 | |||||
Amortized Cost | 7,936,427 | |||||
Mortgage and asset-backed securities | 1,037,433 | |||||
Totals before allowance for credit losses | 8,973,860 | $ 9,874,543 | ||||
Allowance for Credit Losses | 0 | $ 0 | 0 | $ 0 | $ 0 | $ 0 |
Totals | 8,973,860 | |||||
Debt Securities Available for Sale - Fair Value | ||||||
Due in 1 year or less | 635,508 | |||||
Due after 1 year through 5 years | 3,610,011 | |||||
Due after 5 years through 10 years | 2,426,553 | |||||
Due after 10 years | 1,867,657 | |||||
Fair Value | 8,539,729 | |||||
Mortgage and asset-backed securities | 1,077,298 | |||||
Total | $ 9,617,027 | $ 10,770,923 |
Investments - Debt Securities A
Investments - Debt Securities Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Debt Securities Held-to-Maturity | ||||
Beginning balance | $ 0 | $ 6,039 | $ 0 | $ 0 |
(Releases)/provision during period | 0 | (1,099) | 0 | 1,606 |
Ending balance | 0 | 4,940 | 0 | 4,940 |
Debt Securities Available-for-Sale | ||||
Beginning balance | 0 | 0 | 0 | 0 |
(Releases)/provision during period | 0 | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 | 0 |
Cumulative Effect, Period Of Adoption, Adjustment | ||||
Debt Securities Held-to-Maturity | ||||
Beginning balance | 0 | 0 | 0 | 3,334 |
Debt Securities Available-for-Sale | ||||
Beginning balance | $ 0 | $ 0 | $ 0 | $ 0 |
Investments - Mortgage Loans an
Investments - Mortgage Loans and Real Estate (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Allowance for credit losses | $ (3,238) | $ (3,238) | $ (2,486) | ||
Totals | 394,112 | 394,112 | 332,521 | ||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Balance, beginning of the period | 2,486 | ||||
Total ending allowance for credit losses | 3,238 | 3,238 | |||
Provision January 1, 2020 for adoption of new accounting guidance | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Allowance for credit losses | |||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Balance, beginning of the period | $ 1,200 | ||||
Commercial Real Estate | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Mortgage loan, amount | 397,314 | 397,314 | 335,007 | ||
Market value adjustment | 36 | 36 | 0 | ||
Allowance for credit losses | (3,238) | $ (2,227) | (3,238) | (2,227) | (2,486) |
Totals | $ 394,112 | $ 394,112 | $ 332,521 | ||
Mortgage loans, percentage | 100.00% | 100.00% | 100.00% | ||
Market value adjustment percentage | 0.00% | 0.00% | 0.00% | ||
Allowance for credit losses | (0.80%) | (0.80%) | (0.70%) | ||
Totals, percentage | 99.20% | 99.20% | 99.30% | ||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Balance, beginning of the period | $ 3,033 | 1,885 | $ 2,486 | 675 | |
Provision during the period | 205 | 342 | 752 | 1,048 | |
Total ending allowance for credit losses | 3,238 | 2,227 | 3,238 | 2,227 | |
Commercial Real Estate | Provision January 1, 2020 for adoption of new accounting guidance | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Allowance for credit losses | $ 0 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Balance, beginning of the period | 0 | $ 0 | 0 | $ 504 | |
Commercial Real Estate | Less than 50% | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Mortgage loan, amount | $ 100,376 | $ 100,376 | $ 66,635 | ||
Mortgage loans, percentage | 25.30% | 25.30% | 19.90% | ||
Commercial Real Estate | 50% to 60% | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Mortgage loan, amount | $ 111,867 | $ 111,867 | $ 64,536 | ||
Mortgage loans, percentage | 28.20% | 28.20% | 19.30% | ||
Commercial Real Estate | 60% to 70% | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Mortgage loan, amount | $ 140,928 | $ 140,928 | $ 153,414 | ||
Mortgage loans, percentage | 35.40% | 35.40% | 45.80% | ||
Commercial Real Estate | 70% to 80% | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Mortgage loan, amount | $ 44,143 | $ 44,143 | $ 50,422 | ||
Mortgage loans, percentage | 11.10% | 11.10% | 15.00% |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | $ 9,617,027,000 | $ 9,617,027,000 | $ 10,770,923,000 |
Debt securities, trading | 1,066,454,000 | 1,066,454,000 | 0 |
Equity securities | 21,132,000 | 21,132,000 | 17,744,000 |
Mortgage loans | 2,729,000 | 2,729,000 | 0 |
Derivatives, index options | 114,840,000 | 114,840,000 | 132,821,000 |
Transfer from Level 2 to Level 3 for debt securities available for sale | 0 | 0 | |
Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 9,617,027,000 | 9,617,027,000 | 10,770,923,000 |
Debt securities, trading | 1,066,454,000 | 1,066,454,000 | |
Equity securities | 21,132,000 | 21,132,000 | 17,744,000 |
Mortgage loans | 2,729,000 | 2,729,000 | |
Derivatives, index options | 114,840,000 | 114,840,000 | 132,821,000 |
Total assets | 10,822,182,000 | 10,822,182,000 | 10,921,488,000 |
Policyholder account balances | 155,265,000 | 155,265,000 | 161,351,000 |
Other liabilities | (64,196,000) | (64,196,000) | 6,202,000 |
Total liabilities | $ 91,069,000 | $ 91,069,000 | $ 167,553,000 |
Percent of total | 100.00% | 100.00% | 100.00% |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | $ 0 | $ 0 | $ 0 |
Debt securities, trading | 0 | 0 | |
Equity securities | 21,132,000 | 21,132,000 | 17,744,000 |
Derivatives, index options | 0 | 0 | 0 |
Level 1 | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 0 | 0 | 0 |
Debt securities, trading | 0 | 0 | |
Equity securities | 21,132,000 | 21,132,000 | 17,744,000 |
Mortgage loans | 0 | 0 | |
Derivatives, index options | 0 | 0 | 0 |
Total assets | 21,132,000 | 21,132,000 | 17,744,000 |
Policyholder account balances | 0 | 0 | 0 |
Other liabilities | 0 | 0 | 0 |
Total liabilities | $ 0 | $ 0 | $ 0 |
Percent of total | 0.20% | 0.20% | 0.20% |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | $ 9,617,027,000 | $ 9,617,027,000 | $ 10,770,923,000 |
Debt securities, trading | 1,066,454,000 | 1,066,454,000 | |
Equity securities | 0 | 0 | 0 |
Derivatives, index options | 0 | 0 | 0 |
Level 2 | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 9,617,027,000 | 9,617,027,000 | 10,770,923,000 |
Debt securities, trading | 1,066,454,000 | 1,066,454,000 | |
Equity securities | 0 | 0 | 0 |
Mortgage loans | 0 | 0 | |
Derivatives, index options | 0 | 0 | 0 |
Total assets | 10,683,481,000 | 10,683,481,000 | 10,770,923,000 |
Policyholder account balances | 0 | 0 | 0 |
Other liabilities | (72,340,000) | (72,340,000) | 0 |
Total liabilities | $ (72,340,000) | $ (72,340,000) | $ 0 |
Percent of total | 98.70% | 98.70% | 98.60% |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | $ 0 | $ 0 | $ 0 |
Debt securities, trading | 0 | 0 | |
Equity securities | 0 | 0 | 0 |
Derivatives, index options | 114,840,000 | 114,840,000 | 132,821,000 |
Total assets | 117,569,000 | 117,569,000 | 132,821,000 |
Total liabilities | 163,409,000 | 163,409,000 | 167,553,000 |
Level 3 | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 0 | 0 | 0 |
Debt securities, trading | 0 | 0 | |
Equity securities | 0 | 0 | 0 |
Mortgage loans | 2,729,000 | 2,729,000 | |
Derivatives, index options | 114,840,000 | 114,840,000 | 132,821,000 |
Total assets | 117,569,000 | 117,569,000 | 132,821,000 |
Policyholder account balances | 155,265,000 | 155,265,000 | 161,351,000 |
Other liabilities | 8,144,000 | 8,144,000 | 6,202,000 |
Total liabilities | $ 163,409,000 | $ 163,409,000 | $ 167,553,000 |
Percent of total | 1.10% | 1.10% | 1.20% |
Priced by third-party vendors | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | $ 9,617,027,000 | $ 9,617,027,000 | $ 10,770,923,000 |
Debt securities, trading | 1,066,454,000 | 1,066,454,000 | |
Equity securities | 21,132,000 | 21,132,000 | 17,744,000 |
Mortgage loans | 0 | 0 | |
Derivatives, index options | 114,840,000 | 114,840,000 | 132,821,000 |
Priced by third-party vendors | Level 1 | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 0 | 0 | 0 |
Debt securities, trading | 0 | 0 | |
Equity securities | 21,132,000 | 21,132,000 | 17,744,000 |
Mortgage loans | 0 | 0 | |
Derivatives, index options | 0 | 0 | 0 |
Priced by third-party vendors | Level 2 | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 9,617,027,000 | 9,617,027,000 | 10,770,923,000 |
Debt securities, trading | 1,066,454,000 | 1,066,454,000 | |
Equity securities | 0 | 0 | 0 |
Mortgage loans | 0 | 0 | |
Derivatives, index options | 0 | 0 | 0 |
Priced by third-party vendors | Level 3 | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 0 | 0 | 0 |
Debt securities, trading | 0 | 0 | |
Equity securities | 0 | 0 | 0 |
Mortgage loans | 0 | 0 | |
Derivatives, index options | 114,840,000 | 114,840,000 | 132,821,000 |
Priced internally | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 0 | 0 | 0 |
Debt securities, trading | 0 | 0 | |
Equity securities | 0 | 0 | 0 |
Mortgage loans | 2,729,000 | 2,729,000 | |
Derivatives, index options | 0 | 0 | 0 |
Priced internally | Level 1 | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 0 | 0 | 0 |
Debt securities, trading | 0 | 0 | |
Equity securities | 0 | 0 | 0 |
Mortgage loans | 0 | 0 | |
Derivatives, index options | 0 | 0 | 0 |
Priced internally | Level 2 | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 0 | 0 | 0 |
Debt securities, trading | 0 | 0 | |
Equity securities | 0 | 0 | 0 |
Mortgage loans | 0 | 0 | |
Derivatives, index options | 0 | 0 | 0 |
Priced internally | Level 3 | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 0 | 0 | 0 |
Debt securities, trading | 0 | 0 | |
Equity securities | 0 | 0 | 0 |
Mortgage loans | 2,729,000 | 2,729,000 | |
Derivatives, index options | $ 0 | $ 0 | $ 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair Value Measurements for Level 3 Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | $ 137,130 | $ 24,335 | $ 132,821 | $ 157,588 |
Total realized and unrealized gains (losses): | ||||
Included in net earnings | 40,201 | 40,243 | 68,225 | (66,386) |
Included in other comprehensive income | 0 | 0 | 0 | 0 |
Purchases, sales, issuances and settlements, net: | ||||
Purchases | 13,668 | 16,458 | 24,877 | 38,861 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (73,430) | (14,298) | (108,354) | (63,325) |
Transfers into (out of) Level 3 | 0 | 0 | 0 | 0 |
Balance at end of period | 117,569 | 66,738 | 117,569 | 66,738 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 24,802 | 62,328 | 51,396 | (43,670) |
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | 178,801 | 68,880 | 167,553 | 171,203 |
Total realized and unrealized gains (losses): | ||||
Included in net earnings | 48,358 | 22,060 | 84,003 | (51,790) |
Included in other comprehensive income | 0 | 0 | 0 | 0 |
Purchases, sales, issuances and settlements, net: | ||||
Purchases | 10,974 | 16,458 | 22,183 | 38,861 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (74,724) | (14,328) | (110,330) | (65,204) |
Transfers into (out of) Level 3 | 0 | 0 | 0 | 0 |
Balance at end of period | 163,409 | 93,070 | 163,409 | 93,070 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 24,306 | 60,598 | 55,278 | (51,595) |
Net investment income | ||||
Purchases, sales, issuances and settlements, net: | ||||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 24,802 | 62,328 | 51,396 | (43,670) |
Purchases, sales, issuances and settlements, net: | ||||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | 0 | 0 | 0 |
Benefits and expenses | ||||
Purchases, sales, issuances and settlements, net: | ||||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | 0 | 0 | 0 |
Purchases, sales, issuances and settlements, net: | ||||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 24,306 | 60,598 | 55,278 | (51,595) |
Policyholder Account Balances | ||||
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | 168,902 | 61,625 | 161,351 | 155,902 |
Total realized and unrealized gains (losses): | ||||
Included in net earnings | 48,819 | 23,790 | 80,085 | (43,865) |
Included in other comprehensive income | 0 | 0 | 0 | 0 |
Purchases, sales, issuances and settlements, net: | ||||
Purchases | 10,974 | 16,458 | 22,183 | 38,861 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (73,430) | (14,300) | (108,354) | (63,325) |
Transfers into (out of) Level 3 | 0 | 0 | 0 | 0 |
Balance at end of period | 155,265 | 87,573 | 155,265 | 87,573 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 24,767 | 62,328 | 51,361 | (43,670) |
Policyholder Account Balances | Net investment income | ||||
Purchases, sales, issuances and settlements, net: | ||||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | 0 | 0 | 0 |
Policyholder Account Balances | Benefits and expenses | ||||
Purchases, sales, issuances and settlements, net: | ||||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 24,767 | 62,328 | 51,361 | (43,670) |
Stock Options | ||||
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | 9,899 | 3,081 | 6,202 | 11,225 |
Total realized and unrealized gains (losses): | ||||
Included in net earnings | (461) | 2,444 | 3,918 | (3,849) |
Included in other comprehensive income | 0 | 0 | 0 | 0 |
Purchases, sales, issuances and settlements, net: | ||||
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (1,294) | (28) | (1,976) | (1,879) |
Transfers into (out of) Level 3 | 0 | 0 | 0 | 0 |
Balance at end of period | 8,144 | 5,497 | 8,144 | 5,497 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | (461) | 2,444 | 3,917 | (3,849) |
Stock Options | Net investment income | ||||
Purchases, sales, issuances and settlements, net: | ||||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | 0 | 0 | 0 |
Stock Options | Benefits and expenses | ||||
Purchases, sales, issuances and settlements, net: | ||||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | (461) | 2,444 | 3,917 | (3,849) |
Contingent Consideration | ||||
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | 4,174 | 4,076 | ||
Total realized and unrealized gains (losses): | ||||
Included in net earnings | (4,174) | (4,076) | ||
Included in other comprehensive income | 0 | 0 | ||
Purchases, sales, issuances and settlements, net: | ||||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | 0 | 0 | ||
Transfers into (out of) Level 3 | 0 | 0 | ||
Balance at end of period | 0 | 0 | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | (4,174) | (4,076) | ||
Contingent Consideration | Net investment income | ||||
Purchases, sales, issuances and settlements, net: | ||||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | 0 | ||
Contingent Consideration | Benefits and expenses | ||||
Purchases, sales, issuances and settlements, net: | ||||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | (4,174) | (4,076) | ||
Derivatives, Index Options | ||||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | 137,130 | 24,335 | 132,821 | 157,588 |
Total realized and unrealized gains (losses): | ||||
Included in net earnings | 40,166 | 40,243 | 68,190 | (66,386) |
Included in other comprehensive income | 0 | 0 | 0 | 0 |
Purchases, sales, issuances and settlements, net: | ||||
Purchases | 10,974 | 16,458 | 22,183 | 38,861 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (73,430) | (14,298) | (108,354) | (63,325) |
Transfers into (out of) Level 3 | 0 | 0 | 0 | 0 |
Balance at end of period | 114,840 | 66,738 | 114,840 | 66,738 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 24,767 | 62,328 | 51,361 | (43,670) |
Derivatives, Index Options | Net investment income | ||||
Purchases, sales, issuances and settlements, net: | ||||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 24,767 | 62,328 | 51,361 | (43,670) |
Derivatives, Index Options | Benefits and expenses | ||||
Purchases, sales, issuances and settlements, net: | ||||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | $ 0 | 0 | $ 0 |
Mortgage Loans | ||||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | 0 | 0 | ||
Total realized and unrealized gains (losses): | ||||
Included in net earnings | 35 | 35 | ||
Included in other comprehensive income | 0 | 0 | ||
Purchases, sales, issuances and settlements, net: | ||||
Purchases | 2,694 | 2,694 | ||
Sales | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | 0 | 0 | ||
Transfers into (out of) Level 3 | 0 | 0 | ||
Balance at end of period | 2,729 | 2,729 | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 35 | 35 | ||
Mortgage Loans | Net investment income | ||||
Purchases, sales, issuances and settlements, net: | ||||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 35 | 35 | ||
Mortgage Loans | Benefits and expenses | ||||
Purchases, sales, issuances and settlements, net: | ||||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | $ 0 | $ 0 |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments - Quantitative Information (Details) $ in Thousands | Jun. 30, 2021USD ($)year | Dec. 31, 2020USD ($)year |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, index options | $ 114,840 | $ 132,821 |
Mortgage loans | 2,729 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, index options | 114,840 | 132,821 |
Total assets | 117,569 | 132,821 |
Total liabilities | 163,409 | 167,553 |
Broker prices | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, index options | 114,840 | 132,821 |
Discounted cash flow | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans | 2,729 | |
Deterministic cash flow model | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Policyholder account balances | 155,265 | 161,351 |
Black-Scholes model | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Share-based compensation | $ 8,144 | $ 6,202 |
Expected volatility | Black-Scholes model | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Share based compensation, measurement input | 0.3408 | 0.3347 |
Minimum | Implied volatility | Broker prices | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, index options, measurement input | 0.1176 | 0.1296 |
Minimum | Spread | Discounted cash flow | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans, measurement input | 0.0180 | |
Minimum | Projected option cost | Deterministic cash flow model | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Policyholder account balances, measurement input | 0 | 0 |
Minimum | Expected term | Black-Scholes model | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Share based compensation, measurement input | year | 0.5 | 1 |
Maximum | Implied volatility | Broker prices | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, index options, measurement input | 0.2741 | 0.5369 |
Maximum | Spread | Discounted cash flow | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans, measurement input | 0.0280 | |
Maximum | Projected option cost | Deterministic cash flow model | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Policyholder account balances, measurement input | 0.1967 | 0.4504 |
Maximum | Expected term | Black-Scholes model | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Share based compensation, measurement input | year | 9.4 | 9.9 |
Weighted-Average | Implied volatility | Broker prices | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, index options, measurement input | 0.1704 | 0.2070 |
Weighted-Average | Projected option cost | Deterministic cash flow model | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Policyholder account balances, measurement input | 0.0301 | 0.0327 |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments - Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Debt securities, available-for-sale | $ 9,617,027 | $ 10,770,923 |
Debt securities, trading | 1,066,454 | 0 |
Derivatives, index options | 114,840 | 132,821 |
Equity securities | 21,132 | 17,744 |
Carrying Values | ||
ASSETS | ||
Debt securities, available-for-sale | 9,617,027 | 10,770,923 |
Debt securities, trading | 1,066,454 | |
Cash and cash equivalents | 395,833 | 581,059 |
Mortgage loans | 394,112 | 332,521 |
Real estate | 33,495 | 33,783 |
Policy loans | 71,640 | 74,083 |
Other loans | 26,818 | 23,396 |
Derivatives, index options | 114,840 | 132,821 |
Equity securities | 21,132 | 17,744 |
Life interest in Libbie Shearn Moody Trust | 9,083 | 9,083 |
Other investments | 4,513 | 4,513 |
LIABILITIES | ||
Deferred annuity contracts | 6,551,387 | 6,662,730 |
Immediate annuity and supplemental contracts | 421,952 | 412,526 |
Fair Values | ||
ASSETS | ||
Debt securities, available-for-sale | 9,617,027 | 10,770,923 |
Debt securities, trading | 1,066,454 | |
Cash and cash equivalents | 395,833 | 581,059 |
Mortgage loans | 408,450 | 348,175 |
Real estate | 51,627 | 48,577 |
Policy loans | 111,658 | 121,260 |
Other loans | 27,102 | 23,691 |
Derivatives, index options | 114,840 | 132,821 |
Equity securities | 21,132 | 17,744 |
Life interest in Libbie Shearn Moody Trust | 12,775 | 12,775 |
Other investments | 24,852 | 22,580 |
LIABILITIES | ||
Deferred annuity contracts | 5,192,886 | 5,192,663 |
Immediate annuity and supplemental contracts | 461,871 | 467,538 |
Level 1 | ||
ASSETS | ||
Debt securities, available-for-sale | 0 | 0 |
Debt securities, trading | 0 | |
Cash and cash equivalents | 395,833 | 581,059 |
Mortgage loans | 0 | 0 |
Real estate | 0 | 0 |
Policy loans | 0 | 0 |
Other loans | 0 | 0 |
Derivatives, index options | 0 | 0 |
Equity securities | 21,132 | 17,744 |
Life interest in Libbie Shearn Moody Trust | 0 | 0 |
Other investments | 0 | 0 |
LIABILITIES | ||
Deferred annuity contracts | 0 | 0 |
Immediate annuity and supplemental contracts | 0 | 0 |
Level 2 | ||
ASSETS | ||
Debt securities, available-for-sale | 9,617,027 | 10,770,923 |
Debt securities, trading | 1,066,454 | |
Cash and cash equivalents | 0 | 0 |
Mortgage loans | 0 | 0 |
Real estate | 4,600 | 0 |
Policy loans | 0 | 0 |
Other loans | 0 | 0 |
Derivatives, index options | 0 | 0 |
Equity securities | 0 | 0 |
Life interest in Libbie Shearn Moody Trust | 0 | 0 |
Other investments | 0 | 0 |
LIABILITIES | ||
Deferred annuity contracts | 0 | 0 |
Immediate annuity and supplemental contracts | 0 | 0 |
Level 3 | ||
ASSETS | ||
Debt securities, available-for-sale | 0 | 0 |
Debt securities, trading | 0 | |
Cash and cash equivalents | 0 | 0 |
Mortgage loans | 408,450 | 348,175 |
Real estate | 47,027 | 48,577 |
Policy loans | 111,658 | 121,260 |
Other loans | 27,102 | 23,691 |
Derivatives, index options | 114,840 | 132,821 |
Equity securities | 0 | 0 |
Life interest in Libbie Shearn Moody Trust | 12,775 | 12,775 |
Other investments | 24,852 | 22,580 |
LIABILITIES | ||
Deferred annuity contracts | 5,192,886 | 5,192,663 |
Immediate annuity and supplemental contracts | $ 461,871 | $ 467,538 |
Derivatives - Balance Sheet (De
Derivatives - Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 114,840 | $ 132,821 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 114,840 | 132,821 |
Liability Derivatives | 82,925 | 161,351 |
Derivatives not designated as hedging instruments | Equity index options | Derivatives, Index Options | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 114,840 | 132,821 |
Derivatives not designated as hedging instruments | Fixed-index products | Universal Life and Annuity Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 155,265 | $ 161,351 |
Derivatives not designated as hedging instruments | Embedded derivative on reinsurance contract | Funds Withheld Liability | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ (72,340) |
Derivatives - Statements of Ear
Derivatives - Statements of Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Increase (decrease) in contract interest expense | $ 2,100 | $ (3,700) | $ 6,500 | $ 25,600 |
Derivatives not designated as hedging instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivatives | (6,683) | 16,453 | 60,445 | (22,521) |
Derivatives not designated as hedging instruments | Equity index options | Net investment income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivatives | 40,166 | 40,243 | 68,190 | (66,386) |
Derivatives not designated as hedging instruments | Fixed-index products | Universal life and annuity contract interest | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivatives | (48,819) | (23,790) | (80,085) | 43,865 |
Derivatives not designated as hedging instruments | Embedded derivative on reinsurance contract | Net investment income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivatives | $ 1,970 | $ 0 | $ 72,340 | $ 0 |
Intangibles, Value of Busines_3
Intangibles, Value of Business Acquired, and Goodwill - Gross Carrying Amounts and Accumulated Amortization (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||
Gross Carrying Amount | $ 9,600 | $ 9,600 |
Accumulated Amortization | $ (1,763) | (1,398) |
Trademarks/trade names | ||
Business Acquisition [Line Items] | ||
Weighted-Average Amortization Period | 15 years | |
Gross Carrying Amount | $ 2,800 | 2,800 |
Accumulated Amortization | $ (451) | (358) |
Internally developed software | ||
Business Acquisition [Line Items] | ||
Weighted-Average Amortization Period | 7 years | |
Gross Carrying Amount | $ 3,800 | 3,800 |
Accumulated Amortization | (1,312) | (1,040) |
Insurance licenses | ||
Business Acquisition [Line Items] | ||
Gross Carrying Amount | 3,000 | 3,000 |
Accumulated Amortization | $ 0 | $ 0 |
Intangibles, Value of Busines_4
Intangibles, Value of Business Acquired, and Goodwill - Expected Amortization (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2021 | $ 365 |
2022 | 730 |
2023 | 730 |
2024 | 730 |
2025 | 730 |
Thereafter | $ 1,552 |
Intangibles, Value of Busines_5
Intangibles, Value of Business Acquired, and Goodwill - VOBA (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Movement in Present Value of Future Insurance Profits [Roll Forward] | ||
Balance, beginning of year | $ 162,968 | $ 138,071 |
Other increase | 0 | 35,125 |
Amortization, excluding unlocking | (4,801) | (10,228) |
Balance as of end of period | $ 158,167 | $ 162,968 |
Intangibles, Value of Busines_6
Intangibles, Value of Business Acquired, and Goodwill - Schedule of expected amortization of VOBA (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2021 | $ 5,114 |
2022 | 9,753 |
2023 | 9,368 |
2024 | 9,015 |
2025 | $ 8,804 |
Intangibles, Value of Busines_7
Intangibles, Value of Business Acquired, and Goodwill - Changes in Goodwill (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | |||
Gross goodwill as of beginning of year | $ 13,864 | $ 13,864 | |
Goodwill resulting from business acquisition | 0 | 0 | |
Gross goodwill, before impairments | 13,864 | 13,864 | |
Accumulated impairment as of beginning of year | 0 | $ 0 | |
Current year impairments | 0 | 0 | |
Net goodwill as of end of period | $ 13,864 | $ 13,864 |