Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 07, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
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, $0.01 par value | |
Trading Symbol | NWLI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001635984 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Class A | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 3,436,020 | |
Class B | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 200,000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Investments: | ||
Debt securities available-for-sale, at fair value (cost: $8,576,423 and $8,604,250) | $ 7,650,578 | $ 9,068,946 |
Debt securities trading, at fair value (cost: $1,259,248 and $1,066,108) | 1,052,361 | 1,077,438 |
Mortgage loans, net of allowance for credit losses ($3,798 and $2,987), ($19,390 and $8,469 at fair value) | 507,242 | 487,304 |
Policy loans | 70,397 | 71,286 |
Derivatives, index options | 6,815 | 101,622 |
Equity securities, at fair value (cost: $16,294 and $16,549) | 21,698 | 28,217 |
Other long-term investments | 230,267 | 137,670 |
Total investments | 9,539,358 | 10,972,483 |
Cash and cash equivalents | 331,139 | 714,624 |
Deferred policy acquisition costs | 963,662 | 569,839 |
Deferred sales inducements | 122,967 | 78,136 |
Value of business acquired | 148,189 | 154,499 |
Cost of reinsurance | 81,494 | 89,686 |
Accrued investment income | 92,349 | 84,394 |
Federal income tax receivable | 14,416 | 0 |
Deferred federal income tax asset | 66,856 | 0 |
Amounts recoverable, allowance for credit losses | 1,763,500 | 1,539,919 |
Other assets | 114,295 | 126,609 |
Total assets | 13,238,225 | 14,330,189 |
Future policy benefits: | ||
Universal life and annuity contracts | 8,684,681 | 9,003,275 |
Traditional life reserves | 917,127 | 909,712 |
Other policyholder liabilities | 146,552 | 134,338 |
Funds withheld liability | 1,367,599 | 1,485,267 |
Deferred Federal income tax liability | 0 | 101,166 |
Federal income tax payable | 0 | 2,331 |
Other liabilities | 184,850 | 154,409 |
Total liabilities | 11,300,809 | 11,790,498 |
COMMITMENTS AND CONTINGENCIES | ||
Common stock: | ||
Additional paid-in capital | 41,716 | 41,716 |
Accumulated other comprehensive income (loss) | (475,032) | 215,953 |
Retained earnings | 2,370,696 | 2,281,986 |
Total stockholders’ equity | 1,937,416 | 2,539,691 |
Total liabilities and stockholders' equity | 13,238,225 | 14,330,189 |
Class A | ||
Common stock: | ||
Common stock value | 34 | 34 |
Class B | ||
Common stock: | ||
Common stock value | $ 2 | $ 2 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt securities available for sale | $ 8,576,423 | $ 8,604,250 |
Debt securities, trading | 1,259,248 | 1,066,108 |
Mortgage loans - allowance for credit losses | 3,798 | 2,987 |
Mortgage loans, at fair value | 19,390 | 8,469 |
Equity securities - cost | 16,294 | 16,549 |
Amounts recoverable, allowance for credit losses | $ 700 | $ 0 |
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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Premiums and other revenues: | ||||
Universal life and annuity contract charges | $ 36,063 | $ 32,850 | $ 101,406 | $ 101,799 |
Traditional life premiums | 21,639 | 22,244 | 65,619 | 66,940 |
Net investment income | 79,504 | 88,970 | 204,702 | 411,589 |
Other revenues | 5,922 | 5,806 | 17,297 | 17,254 |
Net realized investment gains: | ||||
Other net investment gains | 745 | 5,011 | 6,305 | 9,842 |
Total net realized investment gains | 745 | 5,011 | 6,305 | 9,842 |
Total revenues | 143,873 | 154,881 | 395,329 | 607,424 |
Benefits and expenses: | ||||
Life and other policy benefits | 37,356 | 70,633 | 114,432 | 144,426 |
Amortization of deferred transaction costs | 31,679 | (8,389) | 88,451 | 46,723 |
Universal life and annuity contract interest | 17,548 | 11,663 | (11,058) | 134,481 |
Other operating expenses | 29,387 | 30,793 | 92,290 | 90,596 |
Total benefits and expenses | 115,970 | 104,700 | 284,115 | 416,226 |
Earnings before Federal income taxes | 27,903 | 50,181 | 111,214 | 191,198 |
Federal income taxes | 6,142 | 10,341 | 22,504 | 39,329 |
Net earnings | 21,761 | 39,840 | 88,710 | 151,869 |
Class A | ||||
Benefits and expenses: | ||||
Net earnings | $ 21,146 | $ 38,713 | $ 86,201 | $ 147,574 |
Basic earnings per share: | ||||
Basic earnings per share (in dollars per share) | $ 6.15 | $ 11.27 | $ 25.09 | $ 42.95 |
Diluted earnings per share: | ||||
Diluted earnings per share (in dollars per share) | $ 6.15 | $ 11.27 | $ 25.09 | $ 42.95 |
Class B | ||||
Benefits and expenses: | ||||
Net earnings | $ 615 | $ 1,127 | $ 2,509 | $ 4,295 |
Basic earnings per share: | ||||
Basic earnings per share (in dollars per share) | $ 3.08 | $ 5.63 | $ 12.54 | $ 21.47 |
Diluted earnings per share: | ||||
Diluted earnings per share (in dollars per share) | $ 3.08 | $ 5.63 | $ 12.54 | $ 21.47 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 21,761 | $ 39,840 | $ 88,710 | $ 151,869 |
Unrealized gains (losses) on available-for-sale securities: | ||||
Net unrealized holding gains (losses) arising during period | (181,206) | (21,319) | (690,729) | (132,118) |
Reclassification adjustment for net amounts included in net earnings | 129 | (3,970) | (3,998) | (8,899) |
Net unrealized gains (losses) on securities | (181,077) | (25,289) | (694,727) | (141,017) |
Foreign currency translation adjustments | 48 | (96) | 339 | (172) |
Benefit plans: | ||||
Amortization of net prior service cost and net gain | 1,135 | 1,934 | 3,403 | 5,804 |
Other comprehensive income (loss) | (179,894) | (23,451) | (690,985) | (135,385) |
Comprehensive income (loss) | $ (158,133) | $ 16,389 | $ (602,275) | $ 16,484 |
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 (loss): | Unrealized gains (losses) on debt securities available-for-sale: | Foreign currency translation adjustments: | Benefit plan liability adjustment: | Retained earnings: |
Total stockholders’ equity, beginning of period at Dec. 31, 2020 | $ 36 | $ 41,716 | $ 418,741 | $ 5,116 | $ (28,436) | $ 2,102,577 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Change in unrealized gains (losses) during period, net of tax | $ (132,118) | (141,017) | ||||||
Change in translation adjustments during period | (172) | |||||||
Amortization of net prior service cost and net gain, net of tax | 5,804 | 5,804 | ||||||
Net earnings | 151,869 | 151,869 | ||||||
Total stockholders’ equity, end of period at Sep. 30, 2021 | 2,556,234 | 36 | 41,716 | $ 260,036 | 277,724 | 4,944 | (22,632) | 2,254,446 |
Total stockholders’ equity, beginning of period at Jun. 30, 2021 | 36 | 41,716 | 303,013 | 5,040 | (24,566) | 2,214,606 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Change in unrealized gains (losses) during period, net of tax | (21,319) | (25,289) | ||||||
Change in translation adjustments during period | (96) | |||||||
Amortization of net prior service cost and net gain, net of tax | 1,934 | 1,934 | ||||||
Net earnings | 39,840 | 39,840 | ||||||
Total stockholders’ equity, end of period at Sep. 30, 2021 | 2,556,234 | 36 | 41,716 | 260,036 | 277,724 | 4,944 | (22,632) | 2,254,446 |
Total stockholders’ equity, beginning of period at Dec. 31, 2021 | 2,539,691 | 36 | 41,716 | 226,220 | 5,100 | (15,367) | 2,281,986 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Change in unrealized gains (losses) during period, net of tax | (690,729) | (694,727) | ||||||
Change in translation adjustments during period | 339 | |||||||
Amortization of net prior service cost and net gain, net of tax | 3,403 | 3,403 | ||||||
Net earnings | 88,710 | 88,710 | ||||||
Total stockholders’ equity, end of period at Sep. 30, 2022 | 1,937,416 | 36 | 41,716 | (475,032) | (468,507) | 5,439 | (11,964) | 2,370,696 |
Total stockholders’ equity, beginning of period at Jun. 30, 2022 | 36 | 41,716 | (287,430) | 5,391 | (13,099) | 2,348,935 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Change in unrealized gains (losses) during period, net of tax | (181,206) | (181,077) | ||||||
Change in translation adjustments during period | 48 | |||||||
Amortization of net prior service cost and net gain, net of tax | 1,135 | 1,135 | ||||||
Net earnings | 21,761 | 21,761 | ||||||
Total stockholders’ equity, end of period at Sep. 30, 2022 | $ 1,937,416 | $ 36 | $ 41,716 | $ (475,032) | $ (468,507) | $ 5,439 | $ (11,964) | $ 2,370,696 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net earnings | $ 88,710 | $ 151,869 |
Adjustments to reconcile net earnings to net cash from operating activities: | ||
Universal life and annuity contract interest | (11,058) | 134,481 |
Surrender charges and other policy revenues | (14,338) | (19,900) |
Realized (gains) losses on investments | (6,305) | (9,842) |
Accretion/amortization of discounts and premiums, investments | (3,289) | 1,887 |
Depreciation and amortization | 10,598 | 9,803 |
Increase (decrease) in estimated credit losses on investments | 812 | 1,470 |
(Increase) decrease in value of debt securities trading | 218,218 | (9,556) |
(Increase) decrease in value of equity securities | 4,942 | (3,714) |
(Increase) decrease in value of derivative options | 89,173 | (70,474) |
(Increase) decrease in deferred policy acquisition and sales inducement costs, and value of business acquired | 47,694 | (28,871) |
(Increase) decrease in accrued investment income | (7,955) | (3,519) |
(Increase) decrease in reinsurance recoverable | 81,454 | 128,325 |
(Increase) decrease in cost of reinsurance | 8,192 | 10,262 |
(Increase) decrease in other assets | (333) | (5,563) |
Increase (decrease) in liabilities for future policy benefits | 93,088 | (103,396) |
Increase (decrease) in other policyholder liabilities | 12,214 | (6,451) |
Increase (decrease) in Federal income tax liability | (16,747) | 923 |
Increase (decrease) in deferred Federal income tax | 15,658 | 8,349 |
Increase (decrease) in funds withheld liability | (360,791) | (157,207) |
Increase (decrease) in other liabilities | (15,347) | (31,539) |
Net cash provided by operating activities | 234,590 | (2,663) |
Proceeds from sales of: | ||
Debt securities available-for-sale | 39,254 | 1,153,113 |
Debt securities trading | 17,183 | 3,232 |
Other investments | 4,053 | 22,934 |
Proceeds from maturities, redemptions, and prepayments of: | ||
Debt securities available-for-sale | 822,494 | 1,143,075 |
Debt securities trading | 82,445 | 18,958 |
Other investments | 23,748 | 20,195 |
Derivatives, index options | 46,561 | 155,142 |
Purchases of: | ||
Debt securities available-for-sale | (807,484) | (1,128,594) |
Debt securities trading | (290,799) | (1,092,445) |
Equity securities | (900) | (10,592) |
Derivatives, index options | (39,762) | (34,494) |
Other investments | (112,389) | (41,928) |
Property, equipment, and other productive assets | (1,348) | (8,143) |
Principal payments on mortgage loans | 23,076 | 19,927 |
Cost of mortgage loans acquired | (45,402) | (151,402) |
Decrease (increase) in policy loans | 263 | 2,415 |
Other (increases) decreases to funds withheld | (372) | (71,077) |
Net cash provided by (used in) investing activities | (239,379) | 316 |
Cash flows from financing activities: | ||
Deposits to account balances for universal life and annuity contracts | 258,248 | 479,063 |
Return of account balances on universal life and annuity contracts | (637,119) | (517,027) |
Principal payments under finance lease obligation | (254) | (303) |
Net cash provided by (used in) financing activities | (379,125) | (38,267) |
Effect of foreign exchange | 429 | (219) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (383,485) | (40,833) |
Cash, cash equivalents, and restricted cash at beginning of period | 714,624 | 581,059 |
Cash, cash equivalents and restricted cash at end of period | 331,139 | 540,226 |
Cash paid during the period for: | ||
Interest | 56 | 56 |
Income taxes | 23,643 | 30,042 |
Noncash operating activities: | ||
Net deferral and amortization of sales inducements | (5,649) | 4,576 |
Establishment of funds withheld liability | 243,123 | 0 |
Deferred gain on reinsurance | $ 30,811 | $ 0 |
Consolidation and Basis of Pres
Consolidation and Basis of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022, and for the three and nine months ended September 30, 2022 and September 30, 2021. Such adjustments are of a normal recurring nature. Certain reclasses of prior year balances have been made for comparison. The results of operations for the nine months ended September 30, 2022 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, 2021 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, 2021 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 a 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 in the Condensed Consolidated Statements of Earnings. On July 27, 2022, National Western entered into a Funds Withheld Coinsurance Agreement with Aspida Life Re Ltd. (“Aspida"), a reinsurer organized under the Laws of Bermuda. Pursuant to this agreement, the Company agreed to cede, on a coinsurance with funds withheld basis, a specified quota share of certain liabilities pertaining to an in-force block of annuity contracts issued by the Company before July 1, 2022. The amount of statutory reserve liabilities ceded by the Company to Aspida under the agreement approximates $250.0 million. In addition, pursuant to the agreement, the Company has agreed to cede, on a coinsurance with funds withheld basis, a specified quota share of certain annuity contracts issued or to be issued by the Company on or after July 1, 2022. As consideration for Aspida’s agreement to provide reinsurance pursuant to the agreement, the Company transferred into a funds withheld account permitted assets approximating the statutory reserve liabilities ceded to Aspida. In accordance with the agreement and in order to provide additional security for Aspida’s obligations under the agreement, the parties will establish a trust account for the benefit of the Company in which Aspida will maintain certain assets and grant the Company a first priority security interest in such assets. 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 nine months ended September 30, 2022 and September 30, 2021. Affected Line Item in the Condensed Consolidated Statements of Earnings Amount Reclassified From Accumulated Other Comprehensive Income Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) Other net investment gains $ (163) 5,025 5,061 11,265 Earnings before Federal income taxes (163) 5,025 5,061 11,265 Federal income taxes (34) 1,055 1,063 2,366 Net earnings $ (129) 3,970 3,998 8,899 |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS Recent accounting pronouncements not yet adopted In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-12 Financial Services-Insurance (Topic 944) - Targeted Improvements to the Accounting for Long-Duration Contracts ("LDTI"). This update pertains to long-duration contracts and improving the timeliness of recognizing changes in the liability for future policy benefits, simplifying accounting for certain market-based options, simplifying the amortization of deferred policy acquisition costs, and improving the effectiveness of required disclosures. Amendments include the following: A. Require an 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 assumptions at each quarterly reporting date with the impact recognized in other comprehensive income ("OCI"). B. Require an insurance entity to measure all market risk benefits, which are contracts or contract features that provide protection to the policyholder from capital market risk, associated with deposit (i.e. account balance) contracts at fair value. The periodic change in fair value attributable to change in instrument-specific credit risk is recognized in OCI. C. Simplify amortization of deferred policy acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins and require those balances be amortized on a constant basis over the expected term of the related contracts. Deferred policy acquisition costs are required to be written off for unexpected contract terminations but are not subject to impairment testing. D. Require an insurance entity to add disclosures of disaggregated rollforwards of significant insurance liabilities and other account balances (i.e. beginning to ending balances of the liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities, and deferred acquisition costs). The 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. In November 2020, the FASB released ASU 2020-11 Financial Services – Insurance (Topic 944) . The amendments in this update deferred the effective date of adoption of ASU 2018-12 for all entities by one year. In particular, for publicly traded business entities, adoption of LDTI was made effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Accordingly, the Company's required adoption date is January 1, 2023. To date, the Company has: (1) performed a preliminary gap analysis identifying contracts and contract features in scope of this guidance, (2) identified the actuarial models, systems and processes to be updated, (3) identified and gathered cash flow data to be extracted from the Company's policy administrative systems necessary for implementation of this standard, (4) developed valuation models specific to LDTI for valuation date calculations integrating historical cash flows, and (5) established work streams for evaluating and finalizing key accounting policies, determining the impact to financial reporting charts of account, and developing the format and content of the new required disclosures. Adoption of this standard will significantly change the accounting and reporting for the Company's insurance and annuity products. As the Company progresses through its implementation of the requirements of the standard, it will be better able to assess the impact to its Consolidated Financial Statements. In March 2022, the FASB released ASU 2022-02 Financial Instruments – Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures . The amendments in this Update eliminate the accounting guidance for troubled-debt restructurings (TDRs) by creditors in Subtopic 310-40, Receivables - Troubled Debt Restructurings by Creditors , but enhances disclosure requirements for certain loan modifications in which the debtor is experiencing financial difficulties. Additionally, the amendments in this Update require public business entities to disclose current-period gross write offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20, Financial Instruments - Credit Losses - Measured at Amortized Cost. The updates are required to be applied prospectively beginning in fiscal years after December 15, 2022, including interim periods within those fiscal years. The Company does not expect this guidance to have a material impact on the Consolidated Financial Statements and related disclosures upon adoption. Accounting pronouncements adopted In December 2019, the FASB issued ASU 2019-12 Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740) , which simplified various aspects of the income tax accounting guidance and is applied using different approaches depending on the specific amendment. The amendments were effective for fiscal periods beginning after December 15, 2020. Earlier adoption was permitted. The adoption of this ASU in 2021 did not have a material effect on the results of operations or financial position of the Company. 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 | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022. 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 limited to 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 2022 is $64.4 million. During the nine months ended September 30, 2022, National Western declared and paid a $2.0 million dividend to NWLGI. National Western did not declare or pay cash dividends to NWLGI during the nine months ended September 30, 2021. 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 2022 without prior approval is $18.6 million. All dividends declared by Ozark National are payable entirely to NWLIC as the sole owner and are eliminated in consolidation. Ozark National did not declare or pay cash dividends to NWLIC during the nine months ended September 30, 2022 and 2021. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022 2021 Class A Class B Class A Class B (In thousands except per share amounts) Numerator for Basic and Diluted Earnings Per Share: Net earnings $ 21,761 39,840 Dividends - Class A shares — — Dividends - Class B shares — — Undistributed earnings $ 21,761 39,840 Allocation of net earnings: Dividends $ — — — — Allocation of undistributed earnings 21,146 615 38,713 1,127 Net earnings $ 21,146 615 38,713 1,127 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 $ 6.15 3.08 11.27 5.63 Diluted earnings per share $ 6.15 3.08 11.27 5.63 Nine Months Ended September 30, 2022 2021 Class A Class B Class A Class B (In thousands except per share amounts) Numerator for Basic and Diluted Earnings Per Share: Net earnings $ 88,710 151,869 Dividends - Class A shares — — Dividends - Class B shares — — Undistributed earnings $ 88,710 151,869 Allocation of net earnings: Dividends $ — — — — Allocation of undistributed earnings 86,201 2,509 147,574 4,295 Net earnings $ 86,201 2,509 147,574 4,295 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 $ 25.09 12.54 42.95 21.47 Diluted earnings per share $ 25.09 12.54 42.95 21.47 |
Pension and Other Postretiremen
Pension and Other Postretirement Plans | 9 Months Ended |
Sep. 30, 2022 | |
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 Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (In thousands) Service cost $ 32 29 98 89 Interest cost 145 133 435 396 Expected return on plan assets (394) (356) (1,181) (1,068) Amortization of net loss 34 135 101 404 Net periodic benefit cost $ (183) (59) (547) (179) 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 2022 plan year is $0.0 million. There were no planned contributions remaining for the 2021 plan year as of September 30, 2022. There were no planned contributions remaining for the 2022 plan year as of September 30, 2022. As of September 30, 2022, the Company has made $0.3 million in contributions to the plan for the 2021 plan year and $0.0 million in contributions to the plan for the 2022 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"), previously a related party. In the second quarter of 2022, American National was acquired by Brookfield Asset Management Reinsurance Partners Ltd. 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 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 Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (In thousands) Service cost $ 260 309 779 927 Interest cost 278 262 835 783 Amortization of prior service cost 14 14 44 44 Amortization of net loss 585 1,283 1,754 3,848 Net periodic benefit cost $ 1,137 1,868 3,412 5,602 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 2022. As of September 30, 2022, the Company had contributed $1.3 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 Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (In thousands) Interest cost $ 44 37 130 111 Amortization of net loss 52 73 156 219 Net periodic benefit cost $ 96 110 286 330 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 2022. 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 | 9 Months Ended |
Sep. 30, 2022 | |
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 & Affiliates. 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. In accordance with GAAP guidance for segment reporting, the Company excludes or segregates realized investment gains and losses. A summary of segment information as of September 30, 2022 and December 31, 2021 for the Condensed Consolidated Balance Sheet items and for the three and nine months ended September 30, 2022 and September 30, 2021 for the Condensed Consolidated Statements of Earnings is provided below. Condensed Consolidated Balance Sheet Items: September 30, 2022 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Deferred transaction costs $ 253,867 279,108 621,287 162,050 — 1,316,312 Total segment assets 1,726,670 973,438 8,612,842 992,402 336,601 12,641,953 Future policy benefits 1,536,411 697,903 6,574,271 793,223 — 9,601,808 Other policyholder liabilities 21,489 14,530 95,449 15,084 — 146,552 Funds withheld liability — — 1,367,599 — — 1,367,599 December 31, 2021 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Deferred transaction costs $ 150,688 152,340 423,318 165,814 — 892,160 Total segment assets 1,791,017 975,942 9,187,610 1,115,380 356,716 13,426,665 Future policy benefits 1,537,482 749,537 6,843,457 782,511 — 9,912,987 Other policyholder liabilities 20,950 14,268 82,650 16,470 — 134,338 Funds withheld liability — — 1,485,267 — — 1,485,267 Condensed Consolidated Statements of Earnings: Three Months Ended September 30, 2022 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Premiums and contract revenues $ 15,154 17,866 5,859 18,823 — 57,702 Net investment income 8,813 3,793 56,735 7,301 2,862 79,504 Other revenues 26 24 1,744 2,777 1,351 5,922 Total revenues 23,993 21,683 64,338 28,901 4,213 143,128 Life and other policy benefits 6,294 5,878 8,766 16,418 — 37,356 Amortization of deferred transaction costs 7,224 4,275 18,195 1,985 — 31,679 Universal life and annuity contract interest 1,588 2,502 13,458 — — 17,548 Other operating expenses 6,503 4,408 12,219 4,756 1,501 29,387 Federal income taxes 509 1,010 2,711 1,141 615 5,986 Total expenses 22,118 18,073 55,349 24,300 2,116 121,956 Segment earnings $ 1,875 3,610 8,989 4,601 2,097 21,172 Three Months Ended September 30, 2021 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Premiums and contract revenues $ 12,122 19,570 4,243 19,159 — 55,094 Net investment income 6,599 9,172 62,150 6,763 4,286 88,970 Other revenues 28 19 1,305 3,169 1,285 5,806 Total revenues 18,749 28,761 67,698 29,091 5,571 149,870 Life and other policy benefits 6,752 10,272 36,079 17,530 — 70,633 Amortization of deferred transaction costs 2,479 (27,896) 14,916 2,112 — (8,389) Universal life and annuity contract interest 3,015 (7,056) 15,704 — — 11,663 Other operating expenses 5,891 4,640 13,544 5,229 1,489 30,793 Federal income taxes 126 10,042 (2,560) 839 842 9,289 Total expenses 18,263 (9,998) 77,683 25,710 2,331 113,989 Segment earnings (loss) $ 486 38,759 (9,985) 3,381 3,240 35,881 Nine Months Ended September 30, 2022 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Premiums and contract revenues $ 43,261 54,106 12,509 57,149 — 167,025 Net investment income (loss) 581 (3,610) 174,101 21,438 12,192 204,702 Other revenues 77 63 4,342 8,865 3,950 17,297 Total revenues 43,919 50,559 190,952 87,452 16,142 389,024 Life and other policy benefits 17,458 16,065 31,805 49,104 — 114,432 Amortization of deferred transaction costs 13,388 14,269 53,832 6,962 — 88,451 Universal life and annuity contract interest (12,811) (7,841) 9,594 — — (11,058) Other operating expenses 20,013 13,621 39,091 14,827 4,738 92,290 Federal income taxes 1,187 2,921 11,452 3,313 2,307 21,180 Total expenses 39,235 39,035 145,774 74,206 7,045 305,295 Segment earnings $ 4,684 11,524 45,178 13,246 9,097 83,729 Nine Months Ended September 30, 2021 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Premiums and contract revenues $ 38,495 60,406 11,915 57,923 — 168,739 Net investment income 58,689 35,135 282,073 20,117 15,575 411,589 Other revenues 80 91 4,068 9,368 3,647 17,254 Total revenues 97,264 95,632 298,056 87,408 19,222 597,582 Life and other policy benefits 17,869 19,949 55,909 50,699 — 144,426 Amortization of deferred transaction costs 8,092 (16,341) 47,741 7,231 — 46,723 Universal life and annuity contract interest 50,102 15,969 68,410 — — 134,481 Other operating expenses 18,820 14,060 38,338 14,908 4,470 90,596 Federal income taxes 490 12,752 18,031 2,954 3,035 37,262 Total expenses 95,373 46,389 228,429 75,792 7,505 453,488 Segment earnings $ 1,891 49,243 69,627 11,616 11,717 144,094 Reconciliations of segment information to the Company's Condensed Consolidated Financial Statements are provided below. Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) Premiums and Other Revenues : Premiums and contract revenues $ 57,702 55,094 167,025 168,739 Net investment income 79,504 88,970 204,702 411,589 Other revenues 5,922 5,806 17,297 17,254 Realized gains on investments 745 5,011 6,305 9,842 Total condensed consolidated premiums and other revenues $ 143,873 154,881 395,329 607,424 Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) Federal Income Taxes : Total segment Federal income taxes $ 5,986 9,289 21,180 37,262 Taxes on realized gains on investments 156 1,052 1,324 2,067 Total condensed consolidated Federal income taxes $ 6,142 10,341 22,504 39,329 Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) Net Earnings : Total segment earnings $ 21,172 35,881 83,729 144,094 Realized gains on investments, net of taxes 589 3,959 4,981 7,775 Total condensed consolidated net earnings $ 21,761 39,840 88,710 151,869 September 30, December 31, 2022 2021 (In thousands) Assets : Total segment assets $ 12,641,953 13,426,665 Other unallocated assets 596,272 903,524 Total condensed consolidated assets $ 13,238,225 14,330,189 |
Share-Based Payments
Share-Based Payments | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED PAYMENTS | SHARE-BASED PAYMENTS The Company's shareholders approved an Incentive Plan in 2016 which provides 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 allowed to be issued under the Incentive Plan, or as to which SARs or other awards are allowed to be granted, cannot exceed 300,000. The Incentive Plan includes additional provisions, most notably regarding the definition of performance objectives which can be used in the issuance of the fourth type of award noted above (performance awards). The term of the Incentive Plan is for ten years from the date of stockholder approval. All of the employees of the Company and its subsidiaries are eligible to participate in the 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. 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. 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 were payable in cash at the vesting date equal to the closing price of the Company's Class A common share on the three year 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, 2021 were paid out in the first quarter of 2022. The performance factor during the measurement period used to determine compensation payouts was 110.19% 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 and 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. The following table shows all grants issued to officers and directors during the three and nine months ended September 30, 2022 and 2021. These grants were made based upon the 20-day moving average closing market price of the Company's Class A common share at the grant date. Three Months Ended September 30, 2022 September 30, 2021 Officers Directors Officers Directors SARs — — — — RSUs — — — — PSUs — — — — Nine Months Ended September 30, 2022 September 30, 2021 Officers Directors Officers Directors SARs — — — — RSUs — 3,710 — — PSUs — — — — The Company uses the current fair value method to measure compensation costs for awards granted under the share-based plans. As of September 30, 2022 and December 31, 2021, the liability balance was $8.2 million and $7.9 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, 2022 291,000 — $ — Exercised — — $ — Forfeited — — $ — Expired — — $ — Stock options granted — — $ — Balance at September 30, 2022 291,000 — $ — Liability Awards SAR RSU PSU Other Share/Unit Awards: Balance at January 1, 2022 186,994 18,955 24,485 Exercised (209) (353) (4,213) Forfeited (10,890) (817) (805) Granted — 3,710 — Balance at September 30, 2022 175,895 21,495 19,467 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 $1.1 million and $2.0 million for the nine months ended September 30, 2022 and 2021, respectively. The total fair value of SARs, RSUs, and PSUs vested during the nine months ended September 30, 2022 and 2021 was $0.1 million and $0.0 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 September 30, 2022. SARs Outstanding Number Outstanding Weighted- Number Exercise prices: $210.22 21,850 1.2 years 21,850 $216.48 10,342 3.4 years 10,342 $311.16 7,981 4.4 years 7,981 $310.55 203 4.6 years 203 $334.34 7,631 5.2 years 7,631 $303.77 9,574 6.2 years 9,574 $252.91 17,797 7.2 years 11,859 $192.10 38,008 8.2 years 12,659 $218.44 62,509 9.2 years — Totals 175,895 82,099 Aggregate intrinsic value (in thousands) $ — $ — The aggregate intrinsic value in the table above is based on the closing Class A stock price of $170.80 per share on September 30, 2022 which is less than all of the exercise prices shown above. In estimating the fair value of the SARs outstanding at September 30, 2022 and December 31, 2021, the Company employed the Black-Scholes option pricing model with assumptions detailed below. September 30, December 31, Expected term 1.2 to 9.2 years 1.9 to 10.0 years Expected volatility weighted-average 35.05 % 35.05 % Expected dividend yield 0.21 % 0.17 % Risk-free rate weighted-average 4.06 % 1.01 % 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 $(1.2) million and $1.4 million for the three and nine months ended September 30, 2022, and $0.3 million and $4.2 million for the three and nine months ended September 30, 2021, respectively. The related tax expense/(benefit) recognized was $0.2 million and $(0.3) million for the three and nine months ended September 30, 2022 and $(0.1) million and $(0.9) million for the three and nine months ended September 30, 2021, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
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. 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. On September 22, 2021, the California Supreme Court granted review and transferred the case back to the appellate court with instructions to vacate its decision and reconsider its finding that Mr. Pantaleoni did not have an agency relationship with NWLIC. On March 4, 2022, the appellate court filed an opinion completely striking the award of punitive damages that had been in the amount of $2.5 million, affirming economic damages of $14,949 and non-economic damages of $420,000, and awarding Plaintiff costs on appeal. The appellate court remanded the case to the trial court to reconsider the attorney fee award of $1.26 million in light of the reversal of punitive damages . Upon petitions for rehearing separately filed by both parties, the appellate court vacated its March 4th decision. On May 10, 2022, the appellate court filed its new opinion once again completely striking the award of punitive damages that had been in the amount of $2.5 million, affirming economic damages of $14,949 and non-economic damages of $420,000, and awarding Plaintiff costs on appeal. The appellate court again remanded the case to the trial court to reconsider the attorney fee award of $1.26 million in light of the reversal of punitive damages. The California Supreme Court denied National Western’s appeal while ordering the appellate decision depublished. This denial made the appellate court’s decision final, which was to strike the award of punitive damages, to affirm the award of economic damages of $14,949 and non-economic damages of $420,000, and to award Plaintiff costs on appeal. The trial court subsequently awarded Plaintiff appellate costs of $538,461, which is subject to appeal. The trial court has not issued an order on the reconsideration of the $1.26 million attorney trial fee award yet. The Company does not believe the total amounts involved are material to the organization. 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 at that time 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 subsequently 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. At a mediation held on October 12, 2021, the parties agreed on preliminary terms to settle the litigation. The parties filed a Joint Notice of Settlement and Motion to Stay Deadlines with the court on October 20, 2021. The Court issued an order granting final approval of the settlement on June 16, 2022. The Company previously accrued amounts sufficient to cover the ultimate payments due under the settlement terms. 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. (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 no commitments to fund new loans and $7.4 million commitments to extend credit relating to existing loans at September 30, 2022. The Company evaluates each customer's creditworthiness on a case-by-case basis. The Company had commitments to make capital contributions to alternative investment debt and equity funds of $241.7 million as of September 30, 2022. The Company had $0.3 million commitments to extend credit relating to revolving credit facilities at September 30, 2022. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) Available-for-sale debt securities: Realized gains on disposal $ 27 5,025 5,254 11,264 Realized losses on disposal (190) — (193) — Real estate gains (losses) 908 (14) 1,244 (1,421) Other — — — (1) Totals $ 745 5,011 6,305 9,842 For the three months ended September 30, 2022 and 2021, the percentage of total gains (losses) on bonds due to the call of securities was 100.0% and 100.0%, respectively. For the nine months ended September 30, 2022 and 2021, the percentage of total gains (losses) on bonds due to the call of securities was 92.2% and 100.0%, respectively. (B) Debt Securities The table below presents amortized costs and fair values of debt securities available-for-sale at September 30, 2022. Debt Securities Available-for-Sale Amortized Gross Gross Fair Allowance for Credit Losses (In thousands) U.S. agencies $ 31,142 — (398) 30,744 — U.S. Treasury 1,807 — (97) 1,710 — States and political subdivisions 484,901 611 (71,086) 414,426 — Foreign governments 62,969 — (19,635) 43,334 — Public utilities 722,050 — (72,135) 649,915 — Corporate 6,272,907 812 (657,134) 5,616,585 — Commercial mortgage-backed 21,985 — (1,534) 20,451 — Residential mortgage-backed 351,955 141 (14,343) 337,753 — Asset-backed 626,707 22 (91,069) 535,660 — Totals $ 8,576,423 1,586 (927,431) 7,650,578 — The table below presents amortized costs and fair values of debt securities available-for-sale at December 31, 2021. Debt Securities Available-for-Sale Amortized Gross Gross Fair Allowance for Credit Losses (In thousands) U.S. agencies $ 43,472 1,071 — 44,543 — U.S. Treasury 2,469 21 — 2,490 — States and political subdivisions 479,148 27,733 (921) 505,960 — Foreign governments 62,979 293 (881) 62,391 — Public utilities 745,359 39,919 (309) 784,969 — Corporate 6,322,471 391,287 (12,805) 6,700,953 — Commercial mortgage-backed 27,016 741 — 27,757 — Residential mortgage-backed 530,702 18,921 — 549,623 — Asset-backed 390,634 2,123 (2,497) 390,260 — Totals $ 8,604,250 482,109 (17,413) 9,068,946 — Unrealized losses for debt securities available-for-sale increased at September 30, 2022 from comparable balances at December 31, 2021 primarily due to increases in interest rate levels during the period. The ten-year U.S. Treasury bond increased 232 basis points during the nine months ended September 30, 2022. Debt securities balances at September 30, 2022 and December 31, 2021 include Ozark National holdings of $671.9 million and $823.0 million, respectively, 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 September 30, 2022. Debt Securities Available-for-Sale Less than 12 Months 12 Months or Greater Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) U.S. agencies $ 30,744 (398) — — 30,744 (398) U.S. Treasury 1,710 (97) — — 1,710 (97) States and political subdivisions 365,747 (66,560) 10,689 (4,526) 376,436 (71,086) Foreign governments 21,374 (8,873) 21,961 (10,762) 43,335 (19,635) Public utilities 643,609 (68,805) 6,306 (3,330) 649,915 (72,135) Corporate 5,135,018 (534,216) 319,676 (122,918) 5,454,694 (657,134) Commercial mortgage-backed 20,451 (1,534) — — 20,451 (1,534) Residential mortgage-backed 318,563 (14,343) — — 318,563 (14,343) Asset-backed 466,945 (76,484) 62,820 (14,585) 529,765 (91,069) Totals $ 7,004,161 (771,310) 421,452 (156,121) 7,425,613 (927,431) 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, 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 $ 38,853 (779) 1,790 (142) 40,643 (921) Foreign governments 31,862 (881) — — 31,862 (881) Public utilities 15,286 (309) — — 15,286 (309) Corporate 541,974 (11,378) 25,319 (1,427) 567,293 (12,805) Asset-backed 188,960 (2,497) — — 188,960 (2,497) Totals $ 816,935 (15,844) 27,109 (1,569) 844,044 (17,413) Debt securities. The gross unrealized losses for debt securities are made up of 1,127 individual issues, or 94.6% of the total debt securities held available-for-sale by the Company at September 30, 2022. The market value of these bonds as a percent of amortized cost approximates 88.9%. Of the 1,127 securities, 63, or 5.6%, fall in the 12 months or greater aging category and 1,112 were rated investment grade at September 30, 2022. The amortized cost and fair value of investments in debt securities available-for-sale at September 30, 2022, 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 after 1 year through 5 years $ 2,859,810 2,777,211 Due after 5 years through 10 years 2,279,924 2,041,245 Due after 10 years 2,436,042 1,938,258 7,575,776 6,756,714 Mortgage and asset-backed securities 1,000,647 893,864 Totals before allowance for credit losses 8,576,423 7,650,578 Allowance for credit losses — — Totals $ 8,576,423 7,650,578 The Company determines current expected credit losses for available-for-sale debt securities when fair value is less than amortized cost, interest payments are missed, and the security is experiencing credit issues. Provisions to and releases from the allowance for credit losses are recorded in net investment income in the Condensed Consolidated Statements of Earnings. Based on its review, the Company determined none of these investments required an allowance for credit loss at September 30, 2022 or 2021. 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 During the three and nine months ended September 30, 2022 and 2021, the Company made no transfers between debt securities available-for-sale and trading. The Company does not classify any debt securities as held-to-maturity. (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 supported by the lease payments. This approach has proven 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. Over the past several years, a low interest rate environment and a competitive marketplace have resulted in fewer loan opportunities being available that met the Company's required rate of return. Mortgage loan originations were further impeded by the COVID-19 pandemic and its effects upon the commercial real estate market. As stabilization returned to the commercial real estate market, the Company directed resources and effort towards expanding its mortgage loan investment portfolio. In the first nine months of 2022, the rapid rise in interest rate levels has caused potential mortgage loan opportunities to fall outside the Company's underwriting criteria resulting in a lower level of originations. Mortgage loans originated by the Company totaled $45.4 million in the nine months ended September 30, 2022 compared with $151.4 million in the nine months ended September 30, 2021 and $183.6 million in the year ended December 31, 2021. 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 September 30, 2022 or 2021 and as a result all interest income was recognized at September 30, 2022 and 2021. Included in the mortgage loan investment balance at September 30, 2022 and December 31, 2021 are mortgage loan investments made by reinsurers under funds withheld reinsurance agreements totaling $19.4 million and $8.5 million, respectively. Similar to trading debt securities, these loans are reported at fair market values in order to allow the market value fluctuation to be recorded directly in the Condensed Consolidated Statements of Earnings and to offset the embedded derivative liability change due to market value fluctuations. The following table represents the mortgage loan portfolio by loan-to-value ratio. September 30, 2022 December 31, 2021 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Loan-to-Value Ratio (1): Less than 50% $ 102,601 20.0 $ 100,806 20.6 50% to 60% 137,911 26.9 128,191 26.2 60% to 70% 224,352 43.8 202,670 41.3 70% to 80% 47,443 9.3 58,212 11.9 Gross balance 512,307 100.0 489,879 100.0 Market value adjustment (1,267) (0.2) 412 0.1 Allowance for credit losses (3,798) (0.7) (2,987) (0.6) Totals $ 507,242 99.1 $ 487,304 99.5 (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. 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. The Company employs a current expected credit loss recognition model (“CECL”) on its mortgage loans held at amortized cost for purposes of establishing a valuation allowance. 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. 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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) Balance, beginning of the period $ 2,573 3,238 2,987 2,486 Provision during the period 1,225 718 811 1,470 Total ending allowance for credit losses $ 3,798 3,956 3,798 3,956 The Company's direct investments in real estate are reported in Other long-term investments in the Consolidated Balance Sheets. These amounts are not a significant portion of the total investment portfolio and totaled approximately $27.9 million and $28.6 million at September 30, 2022 and December 31, 2021, respectively. This consists primarily of income-producing properties which are being operated by a wholly owned subsidiary of National Western. The Company recognized operating income on real estate properties of approximately $2.3 million and $2.2 million for the first nine months of 2022 and 2021, respectively. |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 9 Months Ended |
Sep. 30, 2022 | |
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 debt securities available-for-sale, trading securities, over-the-counter derivative contracts and mortgage loans. The Company’s Level 3 liabilities consist of share-based compensation obligations, certain equity-index product-related embedded derivatives, and an embedded derivative on reinsurance. 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: September 30, 2022 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale $ 7,650,578 — 7,240,031 410,547 Debt securities, trading 1,052,361 — 952,055 100,306 Equity securities 21,698 18,067 3,631 — Mortgage loans 19,390 — — 19,390 Derivatives, index options 6,815 — — 6,815 Total assets $ 8,750,842 18,067 8,195,717 537,058 Policyholder account balances (a) $ 45,796 — — 45,796 Other liabilities (b) (333,056) — (331,009) (2,047) Total liabilities $ (287,260) — (331,009) 43,749 During the three and nine months ended September 30, 2022, the Company made no transfers from Level 2 to Level 3 for debt securities available-for-sale. During the three months ended September 30, 2022, the Company made no transfers from Level 2 to Level 3 for liabilities. During the nine months ended September 30, 2022, a portion of the funds withheld embedded derivative liability was reclassified from Level 2 into Level 3 due to the presence of unobservable inputs in its valuation. December 31, 2021 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale $ 9,068,946 — 8,741,984 326,962 Debt security, trading 1,077,438 — 1,002,616 74,822 Equity securities 28,217 23,795 4,422 — Mortgage loans 8,469 — — 8,469 Derivatives, index options 101,622 — — 101,622 Total assets $ 10,284,692 23,795 9,749,022 511,875 Policyholder account balances (a) $ 142,761 — — 142,761 Other liabilities (b) (76,856) — (84,725) 7,869 Total liabilities $ 65,905 — (84,725) 150,630 (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. 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: September 30, 2022 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale: Priced by third-party vendors $ 7,586,834 — 7,240,031 346,803 Priced internally 63,744 — — 63,744 Subtotal 7,650,578 — 7,240,031 410,547 Debt securities, trading: Priced by third-party vendors 1,052,361 — 952,055 100,306 Priced internally — — — — Subtotal 1,052,361 — 952,055 100,306 Equity securities: Priced by third-party vendors 21,698 18,067 3,631 — Priced internally — — — — Subtotal 21,698 18,067 3,631 — Mortgage loans: Priced by third-party vendors — — — — Priced internally 19,390 — — 19,390 Subtotal 19,390 — — 19,390 Derivatives, index options: Priced by third-party vendors 6,815 — — 6,815 Priced internally — — — — Subtotal 6,815 — — 6,815 Total $ 8,750,842 18,067 8,195,717 537,058 Percent of total 100.0 % 0.2 % 93.7 % 6.1 % December 31, 2021 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale: Priced by third-party vendors $ 8,955,678 — 8,741,984 213,694 Priced internally 113,268 — — 113,268 Subtotal 9,068,946 — 8,741,984 326,962 Debt securities, trading: Priced by third-party vendors 1,077,438 — 1,002,616 74,822 Priced internally — — — — Subtotal 1,077,438 — 1,002,616 74,822 Equity securities: Priced by third-party vendors 28,217 23,795 4,422 — Priced internally — — — — Subtotal 28,217 23,795 4,422 — Mortgage loans: Priced by third-party vendors — — — — Priced internally 8,469 — — 8,469 Subtotal 8,469 — — 8,469 Derivatives, index options: Priced by third-party vendors 101,622 — — 101,622 Priced internally — — — — Subtotal 101,622 — — 101,622 Total $ 10,284,692 23,795 9,749,022 511,875 Percent of total 100.0 % 0.2 % 94.8 % 5.0 % The following tables provide additional information about fair value measurements for Level 3 for which significant unobservable inputs were utilized to determine fair value. Three Months Ended September 30, 2022 Assets Debt Securities, Available-for-Sale Trading Securities Derivatives, Index Options Mortgage Loans Total Assets (In thousands) Beginning balance, July 1, 2022 $ 373,957 99,769 6,071 18,738 498,535 Total realized and unrealized gains (losses): Included in net earnings — (3,102) (12,550) (551) (16,203) Included in other comprehensive income (loss) (12,642) — — — (12,642) Purchases, sales, issuances and settlements, net: Purchases 55,888 3,904 13,386 1,234 74,412 Sales — — — — — Issuances — — — — — Settlements (6,656) (265) (92) (31) (7,044) Transfers into (out of) Level 3 — — — — — Balance at end of period $ 410,547 100,306 6,815 19,390 537,058 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 $ — (3,102) 6,524 (551) 2,871 Benefits and expenses — — — — — Total $ — (3,102) 6,524 (551) 2,871 Three Months Ended September 30, 2022 Liabilities Embedded Derivative on Funds Withheld Liability Policyholder Account Balances Share-based Comp Total Liabilities (In thousands) Beginning balance, July 1, 2022 $ (6,534) 45,342 9,332 48,140 Total realized and unrealized gains (losses): Included in net earnings (3,681) (12,840) (1,319) (17,840) Included in other comprehensive income (loss) — — — — Purchases, sales, issuances and settlements, net: Purchases — 13,386 — 13,386 Sales — — — — Issuances — — 155 155 Settlements — (92) — (92) Transfers into (out of) Level 3 — — — — Balance at end of period $ (10,215) 45,796 8,168 43,749 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 $ (3,681) — — (3,681) Benefits and expenses — 6,524 (1,319) 5,205 Total $ (3,681) 6,524 (1,319) 1,524 Three Months Ended September 30, 2021 Assets Other Liabilities Derivatives, Index Options Mortgage Loans Total Assets Policyholder Account Balances Stock Options Total Other Liabilities (In thousands) Beginning balance, July 1, 2021 $ 114,840 2,729 117,569 155,265 8,144 163,409 Total realized and unrealized gains (losses): Included in net earnings 2,284 221 2,505 1,485 270 1,755 Included in other comprehensive income — — — — — — Purchases, sales, issuances and settlements, net: Purchases 12,011 3,500 15,511 12,011 — 12,011 Sales — — — — — — Issuances — — — — — — Settlements (46,745) (11) (46,756) (46,745) (7) (46,752) Transfers into (out of) Level 3 — — — — — — Balance at end of period $ 82,390 6,439 88,829 122,016 8,407 130,423 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 $ (21,202) 221 (20,981) — — — Benefits and expenses — — — (21,202) 270 (20,932) Total $ (21,202) 221 (20,981) (21,202) 270 (20,932) Nine Months Ended September 30, 2022 Assets Debt Securities, Available-for-Sale Trading Securities Derivatives, Index Options Mortgage Loans Total Assets (In thousands) Beginning balance, January 1, 2022 $ 326,962 74,822 101,622 8,469 511,875 Total realized and unrealized gains (losses): Included in net earnings — (9,705) (89,173) (1,679) (100,557) Included in other comprehensive income (loss) (43,335) — — — (43,335) Purchases, sales, issuances and settlements, net: Purchases 151,872 35,454 39,642 12,693 239,661 Sales — — — — — Issuances — — — — — Settlements (24,952) (265) (45,276) (93) (70,586) Transfers into (out of) Level 3 — — — — — Balance at end of period $ 410,547 100,306 6,815 19,390 537,058 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 $ — (9,705) (52,858) (1,679) (64,242) Benefits and expenses — — — — — Total $ — (9,705) (52,858) (1,679) (64,242) Nine Months Ended September 30, 2022 Liabilities Embedded Derivative on Funds Withheld Liability Policyholder Account Balances Share-based Comp Total Liabilities (In thousands) Beginning balance, January 1, 2022 $ — 142,761 7,869 150,630 Total realized and unrealized gains (losses): Included in net earnings (11,384) (91,331) 1,192 (101,523) Included in other comprehensive income (loss) — — — — Purchases, sales, issuances and settlements, net: Purchases — 39,642 — 39,642 Sales — — — — Issuances — — 184 184 Settlements — (45,276) (1,077) (46,353) Transfers into (out of) Level 3 1,169 — — 1,169 Balance at end of period $ (10,215) 45,796 8,168 43,749 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 $ (11,384) — — (11,384) Benefits and expenses — (52,858) 1,193 (51,665) Total $ (11,384) (52,858) 1,193 (63,049) For the Nine Months Ended September 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 70,474 256 70,730 81,570 4,187 85,757 Included in other comprehensive income — — — — — — Purchases, sales, issuances and settlements, net: Purchases 34,194 6,198 40,392 34,194 — 34,194 Sales — — — — — — Issuances — — — — — — Settlements (155,099) (15) (155,114) (155,099) (1,982) (157,081) Transfers into (out of) Level 3 — — — — — — Balance at end of period $ 82,390 6,439 88,829 122,016 8,407 130,423 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 $ 30,159 256 30,415 — — — Benefits and expenses — — — 30,159 4,187 34,346 Total $ 30,159 256 30,415 30,159 4,187 34,346 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: September 30, 2022 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands) Assets: Debt securities available-for-sale $ 63,744 Discounted cash flows Discount rate 2.76% - 6.14% (4.57%) Derivatives, index options 6,815 Broker prices Implied volatility 12.14% - 34.75% (17.51%) Mortgage loans 19,390 Discounted cash flows Spread 175 - 275 bps Total assets $ 89,949 Liabilities: Policyholder account balances $ 45,796 Deterministic cash flow model Projected option cost 0.00% - 7.29% (0.19%) Share-based compensation 8,168 Black-Scholes model Expected term 1.2 to 9.2 years Expected volatility 35.05% Total liabilities $ 53,964 December 31, 2021 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands) Assets: Debt securities available-for-sale $ 113,268 Discounted cash flows Discount rate 2.40% - 6.14% (4.06%) Derivatives, index options 101,622 Broker prices Implied volatility 11.76% - 16.54% (14.55%) Mortgage loans 8,469 Discounted cash flows Spread 100 - 250 bps Total assets $ 223,359 Liabilities: Policyholder account balances $ 142,761 Deterministic cash flow model Projected option cost 0.03% - 14.49% (2.65%) Share-based compensation 7,869 Black-Scholes model Expected term 1.9 to 10.0 years Expected volatility 35.05% Total liabilities $ 150,630 The tables above exclude certain securities for which fair values are obtained and unadjusted from third party vendors. Realized gains (losses) on debt securities are reported in the Condensed Consolidated Statements of Earnings as Net realized 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. Unrealized gains (losses) on trading debt securities are reported in the Condensed Consolidated Statements of Earnings as Net investment income. 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: September 30, 2022 Fair Value Hierarchy Level Carrying Fair Level 1 Level 2 Level 3 (In thousands) ASSETS Debt securities, available-for-sale $ 7,650,578 7,650,578 — 7,240,031 410,547 Debt securities, trading 1,052,361 1,052,361 — 952,055 100,306 Cash and cash equivalents 331,139 331,139 331,139 — — Mortgage loans 507,242 459,135 — — 459,135 Real estate 27,851 48,077 — — 48,077 Policy loans 70,397 86,086 — — 86,086 Other loans 25,562 26,812 — — 26,812 Derivatives, index options 6,815 6,815 — — 6,815 Equity securities 21,698 21,698 18,067 3,631 — Life interest in Libbie Shearn Moody Trust 8,254 12,775 — — 12,775 Other investments 4,513 26,203 — — 26,203 LIABILITIES Deferred annuity contracts $ 6,210,476 5,103,544 — — 5,103,544 Immediate annuity and supplemental contracts 402,903 384,498 — — 384,498 December 31, 2021 Fair Value Hierarchy Level Carrying Fair Level 1 Level 2 Level 3 (In thousands) ASSETS Debt securities, available-for-sale $ 9,068,946 9,068,946 — 8,741,984 326,962 Debt securities, trading 1,077,438 1,077,438 — 1,002,616 74,822 Cash and cash equivalents 714,624 714,624 702,632 11,992 — Mortgage loans 487,304 513,246 — — 513,246 Real estate 28,606 47,027 — — 47,027 Policy loans 71,286 110,492 — — 110,492 Other loans 24,266 25,085 — — 25,085 Derivatives, index options 101,622 101,622 — — 101,622 Equity securities 28,217 28,217 23,795 4,422 — Life interest in Libbie Shearn Moody Trust 8,254 12,775 — — 12,775 Other investments 4,537 24,876 — — 24,876 LIABILITIES Deferred annuity contracts $ 6,463,314 4,703,331 — — 4,703,331 Immediate annuity and supplemental contracts 422,209 457,787 — — 457,787 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 | 9 Months Ended |
Sep. 30, 2022 | |
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. The Company maintains two coinsurance funds withheld reinsurance agreements under which identified assets with underlying unrealized gains (losses) are maintained in a funds withheld account. 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 GAAP. The fair value of the embedded derivative on reinsurance is computed as the unrealized gain (loss) on the underlying funds withheld assets. This amount is included as a component of the funds withheld liability balance on the Condensed Consolidated Balance Sheets with changes in the embedded derivative on reinsurance 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 September 30, 2022 and December 31, 2021, respectively. September 30, 2022 Asset Derivatives Liability Derivatives Balance Fair Balance Fair (In thousands) (In thousands) Derivatives not designated as hedging instruments Equity index options Derivatives, Index Options $ 6,815 Fixed-index products Universal life and annuity contracts $ 45,796 Embedded derivative on reinsurance contract Funds withheld liability (341,224) Total $ 6,815 $ (295,428) December 31, 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 $ 101,622 Fixed-index products Universal life and annuity contracts $ 142,761 Embedded derivative on reinsurance contract Funds withheld liability (84,725) Total $ 101,622 $ 58,036 The table below presents the effect of derivative instruments in the Condensed Consolidated Statements of Earnings for the three months ended September 30, 2022 and 2021. September 30, September 30, Derivatives Not Designated Location of Gain Amount of Gain or (In thousands) Equity index options Net investment income $ (12,550) 2,284 Fixed-index products Universal life and annuity contract interest 12,840 (1,484) Embedded derivative on reinsurance contract Net investment income 70,610 4,147 $ 70,900 4,947 The table below presents the effect of derivative instruments in the Condensed Consolidated Statements of Earnings for the nine months ended September 30, 2022 and 2021. September 30, September 30, Derivatives Not Designated Location of Gain Amount of Gain or (In thousands) Equity index options Net investment income $ (89,173) 70,474 Fixed-index products Universal life and annuity contract interest 91,331 (81,570) Embedded derivative on reinsurance contract Net investment income 256,499 76,486 $ 258,657 65,390 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 September 30, 2022 and 2021, the change in the embedded derivative liability due to the expected collectability of asset management fees increased contract interest expense by $0.0 million and $0.0 million, respectively. For the nine months ended September 30, 2022 and 2021, the change in the embedded derivative liability due to the expected collectability of asset management fees increased/(decreased) contract interest expense by $0.0 million and $6.5 million, respectively. |
Intangibles, Value of Business
Intangibles, Value of Business Acquired, and Goodwill | 9 Months Ended |
Sep. 30, 2022 | |
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. September 30, 2022 December 31, 2021 Weighted-Average Amortization Period Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Trademarks/trade names 15 $ 2,800 (684) 2,800 (545) Internally developed software 7 3,800 (1,990) 3,800 (1,583) Insurance licenses N/A 3,000 — 3,000 — $ 9,600 (2,674) 9,600 (2,128) 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 September 30, 2022, 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 2022 $ 182 2023 730 2024 730 2025 730 2026 232 Thereafter 1,322 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: September 30, December 31, 2022 2021 (In thousands) Balance, beginning of year $ 154,499 162,968 Amortization: Amortization, excluding unlocking (6,310) (8,469) Balance as of end of period $ 148,189 154,499 Estimated future amortization of VOBA, net of interest, as of September 30, 2022, is as follows: Expected Amortization (In thousands) Remainder of 2022 $ 2,117 2023 8,117 2024 7,789 2025 7,587 2026 7,436 Goodwill The changes in the carrying amount of goodwill were as follows: September 30, December 31, 2022 2021 (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 | 9 Months Ended |
Sep. 30, 2022 | |
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) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS Recent accounting pronouncements not yet adopted In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-12 Financial Services-Insurance (Topic 944) - Targeted Improvements to the Accounting for Long-Duration Contracts ("LDTI"). This update pertains to long-duration contracts and improving the timeliness of recognizing changes in the liability for future policy benefits, simplifying accounting for certain market-based options, simplifying the amortization of deferred policy acquisition costs, and improving the effectiveness of required disclosures. Amendments include the following: A. Require an 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 assumptions at each quarterly reporting date with the impact recognized in other comprehensive income ("OCI"). B. Require an insurance entity to measure all market risk benefits, which are contracts or contract features that provide protection to the policyholder from capital market risk, associated with deposit (i.e. account balance) contracts at fair value. The periodic change in fair value attributable to change in instrument-specific credit risk is recognized in OCI. C. Simplify amortization of deferred policy acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins and require those balances be amortized on a constant basis over the expected term of the related contracts. Deferred policy acquisition costs are required to be written off for unexpected contract terminations but are not subject to impairment testing. D. Require an insurance entity to add disclosures of disaggregated rollforwards of significant insurance liabilities and other account balances (i.e. beginning to ending balances of the liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities, and deferred acquisition costs). The 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. In November 2020, the FASB released ASU 2020-11 Financial Services – Insurance (Topic 944) . The amendments in this update deferred the effective date of adoption of ASU 2018-12 for all entities by one year. In particular, for publicly traded business entities, adoption of LDTI was made effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Accordingly, the Company's required adoption date is January 1, 2023. To date, the Company has: (1) performed a preliminary gap analysis identifying contracts and contract features in scope of this guidance, (2) identified the actuarial models, systems and processes to be updated, (3) identified and gathered cash flow data to be extracted from the Company's policy administrative systems necessary for implementation of this standard, (4) developed valuation models specific to LDTI for valuation date calculations integrating historical cash flows, and (5) established work streams for evaluating and finalizing key accounting policies, determining the impact to financial reporting charts of account, and developing the format and content of the new required disclosures. Adoption of this standard will significantly change the accounting and reporting for the Company's insurance and annuity products. As the Company progresses through its implementation of the requirements of the standard, it will be better able to assess the impact to its Consolidated Financial Statements. In March 2022, the FASB released ASU 2022-02 Financial Instruments – Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures . The amendments in this Update eliminate the accounting guidance for troubled-debt restructurings (TDRs) by creditors in Subtopic 310-40, Receivables - Troubled Debt Restructurings by Creditors , but enhances disclosure requirements for certain loan modifications in which the debtor is experiencing financial difficulties. Additionally, the amendments in this Update require public business entities to disclose current-period gross write offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20, Financial Instruments - Credit Losses - Measured at Amortized Cost. The updates are required to be applied prospectively beginning in fiscal years after December 15, 2022, including interim periods within those fiscal years. The Company does not expect this guidance to have a material impact on the Consolidated Financial Statements and related disclosures upon adoption. Accounting pronouncements adopted In December 2019, the FASB issued ASU 2019-12 Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740) , which simplified various aspects of the income tax accounting guidance and is applied using different approaches depending on the specific amendment. The amendments were effective for fiscal periods beginning after December 15, 2020. Earlier adoption was permitted. The adoption of this ASU in 2021 did not have a material effect on the results of operations or financial position of the Company. 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 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 debt securities available-for-sale, trading securities, over-the-counter derivative contracts and mortgage loans. The Company’s Level 3 liabilities consist of share-based compensation obligations, certain equity-index product-related embedded derivatives, and an embedded derivative on reinsurance. 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) | 9 Months Ended |
Sep. 30, 2022 | |
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 nine months ended September 30, 2022 and September 30, 2021. Affected Line Item in the Condensed Consolidated Statements of Earnings Amount Reclassified From Accumulated Other Comprehensive Income Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) Other net investment gains $ (163) 5,025 5,061 11,265 Earnings before Federal income taxes (163) 5,025 5,061 11,265 Federal income taxes (34) 1,055 1,063 2,366 Net earnings $ (129) 3,970 3,998 8,899 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022 2021 Class A Class B Class A Class B (In thousands except per share amounts) Numerator for Basic and Diluted Earnings Per Share: Net earnings $ 21,761 39,840 Dividends - Class A shares — — Dividends - Class B shares — — Undistributed earnings $ 21,761 39,840 Allocation of net earnings: Dividends $ — — — — Allocation of undistributed earnings 21,146 615 38,713 1,127 Net earnings $ 21,146 615 38,713 1,127 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 $ 6.15 3.08 11.27 5.63 Diluted earnings per share $ 6.15 3.08 11.27 5.63 Nine Months Ended September 30, 2022 2021 Class A Class B Class A Class B (In thousands except per share amounts) Numerator for Basic and Diluted Earnings Per Share: Net earnings $ 88,710 151,869 Dividends - Class A shares — — Dividends - Class B shares — — Undistributed earnings $ 88,710 151,869 Allocation of net earnings: Dividends $ — — — — Allocation of undistributed earnings 86,201 2,509 147,574 4,295 Net earnings $ 86,201 2,509 147,574 4,295 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 $ 25.09 12.54 42.95 21.47 Diluted earnings per share $ 25.09 12.54 42.95 21.47 |
Pension and Other Postretirem_2
Pension and Other Postretirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (In thousands) Service cost $ 32 29 98 89 Interest cost 145 133 435 396 Expected return on plan assets (394) (356) (1,181) (1,068) Amortization of net loss 34 135 101 404 Net periodic benefit cost $ (183) (59) (547) (179) |
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 Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (In thousands) Service cost $ 260 309 779 927 Interest cost 278 262 835 783 Amortization of prior service cost 14 14 44 44 Amortization of net loss 585 1,283 1,754 3,848 Net periodic benefit cost $ 1,137 1,868 3,412 5,602 |
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 Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (In thousands) Interest cost $ 44 37 130 111 Amortization of net loss 52 73 156 219 Net periodic benefit cost $ 96 110 286 330 |
Segment and Other Operating I_2
Segment and Other Operating Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information, by Quarter | A summary of segment information as of September 30, 2022 and December 31, 2021 for the Condensed Consolidated Balance Sheet items and for the three and nine months ended September 30, 2022 and September 30, 2021 for the Condensed Consolidated Statements of Earnings is provided below. Condensed Consolidated Balance Sheet Items: September 30, 2022 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Deferred transaction costs $ 253,867 279,108 621,287 162,050 — 1,316,312 Total segment assets 1,726,670 973,438 8,612,842 992,402 336,601 12,641,953 Future policy benefits 1,536,411 697,903 6,574,271 793,223 — 9,601,808 Other policyholder liabilities 21,489 14,530 95,449 15,084 — 146,552 Funds withheld liability — — 1,367,599 — — 1,367,599 December 31, 2021 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Deferred transaction costs $ 150,688 152,340 423,318 165,814 — 892,160 Total segment assets 1,791,017 975,942 9,187,610 1,115,380 356,716 13,426,665 Future policy benefits 1,537,482 749,537 6,843,457 782,511 — 9,912,987 Other policyholder liabilities 20,950 14,268 82,650 16,470 — 134,338 Funds withheld liability — — 1,485,267 — — 1,485,267 Condensed Consolidated Statements of Earnings: Three Months Ended September 30, 2022 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Premiums and contract revenues $ 15,154 17,866 5,859 18,823 — 57,702 Net investment income 8,813 3,793 56,735 7,301 2,862 79,504 Other revenues 26 24 1,744 2,777 1,351 5,922 Total revenues 23,993 21,683 64,338 28,901 4,213 143,128 Life and other policy benefits 6,294 5,878 8,766 16,418 — 37,356 Amortization of deferred transaction costs 7,224 4,275 18,195 1,985 — 31,679 Universal life and annuity contract interest 1,588 2,502 13,458 — — 17,548 Other operating expenses 6,503 4,408 12,219 4,756 1,501 29,387 Federal income taxes 509 1,010 2,711 1,141 615 5,986 Total expenses 22,118 18,073 55,349 24,300 2,116 121,956 Segment earnings $ 1,875 3,610 8,989 4,601 2,097 21,172 Three Months Ended September 30, 2021 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Premiums and contract revenues $ 12,122 19,570 4,243 19,159 — 55,094 Net investment income 6,599 9,172 62,150 6,763 4,286 88,970 Other revenues 28 19 1,305 3,169 1,285 5,806 Total revenues 18,749 28,761 67,698 29,091 5,571 149,870 Life and other policy benefits 6,752 10,272 36,079 17,530 — 70,633 Amortization of deferred transaction costs 2,479 (27,896) 14,916 2,112 — (8,389) Universal life and annuity contract interest 3,015 (7,056) 15,704 — — 11,663 Other operating expenses 5,891 4,640 13,544 5,229 1,489 30,793 Federal income taxes 126 10,042 (2,560) 839 842 9,289 Total expenses 18,263 (9,998) 77,683 25,710 2,331 113,989 Segment earnings (loss) $ 486 38,759 (9,985) 3,381 3,240 35,881 Nine Months Ended September 30, 2022 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Premiums and contract revenues $ 43,261 54,106 12,509 57,149 — 167,025 Net investment income (loss) 581 (3,610) 174,101 21,438 12,192 204,702 Other revenues 77 63 4,342 8,865 3,950 17,297 Total revenues 43,919 50,559 190,952 87,452 16,142 389,024 Life and other policy benefits 17,458 16,065 31,805 49,104 — 114,432 Amortization of deferred transaction costs 13,388 14,269 53,832 6,962 — 88,451 Universal life and annuity contract interest (12,811) (7,841) 9,594 — — (11,058) Other operating expenses 20,013 13,621 39,091 14,827 4,738 92,290 Federal income taxes 1,187 2,921 11,452 3,313 2,307 21,180 Total expenses 39,235 39,035 145,774 74,206 7,045 305,295 Segment earnings $ 4,684 11,524 45,178 13,246 9,097 83,729 Nine Months Ended September 30, 2021 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Premiums and contract revenues $ 38,495 60,406 11,915 57,923 — 168,739 Net investment income 58,689 35,135 282,073 20,117 15,575 411,589 Other revenues 80 91 4,068 9,368 3,647 17,254 Total revenues 97,264 95,632 298,056 87,408 19,222 597,582 Life and other policy benefits 17,869 19,949 55,909 50,699 — 144,426 Amortization of deferred transaction costs 8,092 (16,341) 47,741 7,231 — 46,723 Universal life and annuity contract interest 50,102 15,969 68,410 — — 134,481 Other operating expenses 18,820 14,060 38,338 14,908 4,470 90,596 Federal income taxes 490 12,752 18,031 2,954 3,035 37,262 Total expenses 95,373 46,389 228,429 75,792 7,505 453,488 Segment earnings $ 1,891 49,243 69,627 11,616 11,717 144,094 |
Schedule of 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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) Premiums and Other Revenues : Premiums and contract revenues $ 57,702 55,094 167,025 168,739 Net investment income 79,504 88,970 204,702 411,589 Other revenues 5,922 5,806 17,297 17,254 Realized gains on investments 745 5,011 6,305 9,842 Total condensed consolidated premiums and other revenues $ 143,873 154,881 395,329 607,424 |
Schedule of Reconciliation of Segment Federal Income Taxes to Condensed Consolidated Financial Statements | Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) Federal Income Taxes : Total segment Federal income taxes $ 5,986 9,289 21,180 37,262 Taxes on realized gains on investments 156 1,052 1,324 2,067 Total condensed consolidated Federal income taxes $ 6,142 10,341 22,504 39,329 |
Schedule of Reconciliation of Segment Net Earnings (Loss) to Condensed Consolidated Financial Statements | Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) Net Earnings : Total segment earnings $ 21,172 35,881 83,729 144,094 Realized gains on investments, net of taxes 589 3,959 4,981 7,775 Total condensed consolidated net earnings $ 21,761 39,840 88,710 151,869 |
Schedule of Reconciliation of Segment Assets to Condensed Consolidated Financial Statements | September 30, December 31, 2022 2021 (In thousands) Assets : Total segment assets $ 12,641,953 13,426,665 Other unallocated assets 596,272 903,524 Total condensed consolidated assets $ 13,238,225 14,330,189 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Shares Available for Grant and Stock Option Activity | Three Months Ended September 30, 2022 September 30, 2021 Officers Directors Officers Directors SARs — — — — RSUs — — — — PSUs — — — — Nine Months Ended September 30, 2022 September 30, 2021 Officers Directors Officers Directors SARs — — — — RSUs — 3,710 — — PSUs — — — — Stock Options Outstanding Shares Shares Weighted- Stock Options: Balance at January 1, 2022 291,000 — $ — Exercised — — $ — Forfeited — — $ — Expired — — $ — Stock options granted — — $ — Balance at September 30, 2022 291,000 — $ — |
Schedule of Activity | Liability Awards SAR RSU PSU Other Share/Unit Awards: Balance at January 1, 2022 186,994 18,955 24,485 Exercised (209) (353) (4,213) Forfeited (10,890) (817) (805) Granted — 3,710 — Balance at September 30, 2022 175,895 21,495 19,467 |
Schedule of Information About Stock Options and SARs Outstanding | The following table summarizes information about SARs outstanding at September 30, 2022. SARs Outstanding Number Outstanding Weighted- Number Exercise prices: $210.22 21,850 1.2 years 21,850 $216.48 10,342 3.4 years 10,342 $311.16 7,981 4.4 years 7,981 $310.55 203 4.6 years 203 $334.34 7,631 5.2 years 7,631 $303.77 9,574 6.2 years 9,574 $252.91 17,797 7.2 years 11,859 $192.10 38,008 8.2 years 12,659 $218.44 62,509 9.2 years — Totals 175,895 82,099 Aggregate intrinsic value (in thousands) $ — $ — |
Schedule of Assumptions Employed Using Black-Scholes Option Pricing Model | In estimating the fair value of the SARs outstanding at September 30, 2022 and December 31, 2021, the Company employed the Black-Scholes option pricing model with assumptions detailed below. September 30, December 31, Expected term 1.2 to 9.2 years 1.9 to 10.0 years Expected volatility weighted-average 35.05 % 35.05 % Expected dividend yield 0.21 % 0.17 % Risk-free rate weighted-average 4.06 % 1.01 % |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Realized Investment Gains and Losses | The table below presents realized gains and losses for the periods indicated. Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) Available-for-sale debt securities: Realized gains on disposal $ 27 5,025 5,254 11,264 Realized losses on disposal (190) — (193) — Real estate gains (losses) 908 (14) 1,244 (1,421) Other — — — (1) Totals $ 745 5,011 6,305 9,842 |
Schedule of Debt Securities, Available-for-Sale Securities | The table below presents amortized costs and fair values of debt securities available-for-sale at September 30, 2022. Debt Securities Available-for-Sale Amortized Gross Gross Fair Allowance for Credit Losses (In thousands) U.S. agencies $ 31,142 — (398) 30,744 — U.S. Treasury 1,807 — (97) 1,710 — States and political subdivisions 484,901 611 (71,086) 414,426 — Foreign governments 62,969 — (19,635) 43,334 — Public utilities 722,050 — (72,135) 649,915 — Corporate 6,272,907 812 (657,134) 5,616,585 — Commercial mortgage-backed 21,985 — (1,534) 20,451 — Residential mortgage-backed 351,955 141 (14,343) 337,753 — Asset-backed 626,707 22 (91,069) 535,660 — Totals $ 8,576,423 1,586 (927,431) 7,650,578 — The table below presents amortized costs and fair values of debt securities available-for-sale at December 31, 2021. Debt Securities Available-for-Sale Amortized Gross Gross Fair Allowance for Credit Losses (In thousands) U.S. agencies $ 43,472 1,071 — 44,543 — U.S. Treasury 2,469 21 — 2,490 — States and political subdivisions 479,148 27,733 (921) 505,960 — Foreign governments 62,979 293 (881) 62,391 — Public utilities 745,359 39,919 (309) 784,969 — Corporate 6,322,471 391,287 (12,805) 6,700,953 — Commercial mortgage-backed 27,016 741 — 27,757 — Residential mortgage-backed 530,702 18,921 — 549,623 — Asset-backed 390,634 2,123 (2,497) 390,260 — Totals $ 8,604,250 482,109 (17,413) 9,068,946 — |
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 September 30, 2022. Debt Securities Available-for-Sale Less than 12 Months 12 Months or Greater Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) U.S. agencies $ 30,744 (398) — — 30,744 (398) U.S. Treasury 1,710 (97) — — 1,710 (97) States and political subdivisions 365,747 (66,560) 10,689 (4,526) 376,436 (71,086) Foreign governments 21,374 (8,873) 21,961 (10,762) 43,335 (19,635) Public utilities 643,609 (68,805) 6,306 (3,330) 649,915 (72,135) Corporate 5,135,018 (534,216) 319,676 (122,918) 5,454,694 (657,134) Commercial mortgage-backed 20,451 (1,534) — — 20,451 (1,534) Residential mortgage-backed 318,563 (14,343) — — 318,563 (14,343) Asset-backed 466,945 (76,484) 62,820 (14,585) 529,765 (91,069) Totals $ 7,004,161 (771,310) 421,452 (156,121) 7,425,613 (927,431) 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, 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 $ 38,853 (779) 1,790 (142) 40,643 (921) Foreign governments 31,862 (881) — — 31,862 (881) Public utilities 15,286 (309) — — 15,286 (309) Corporate 541,974 (11,378) 25,319 (1,427) 567,293 (12,805) Asset-backed 188,960 (2,497) — — 188,960 (2,497) Totals $ 816,935 (15,844) 27,109 (1,569) 844,044 (17,413) |
Schedule of Investments Classified by Contractual Maturity Date | The amortized cost and fair value of investments in debt securities available-for-sale at September 30, 2022, 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 after 1 year through 5 years $ 2,859,810 2,777,211 Due after 5 years through 10 years 2,279,924 2,041,245 Due after 10 years 2,436,042 1,938,258 7,575,776 6,756,714 Mortgage and asset-backed securities 1,000,647 893,864 Totals before allowance for credit losses 8,576,423 7,650,578 Allowance for credit losses — — Totals $ 8,576,423 7,650,578 |
Schedule of Mortgage Loans by Loan-to-Value Ratio | The following table represents the mortgage loan portfolio by loan-to-value ratio. September 30, 2022 December 31, 2021 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Loan-to-Value Ratio (1): Less than 50% $ 102,601 20.0 $ 100,806 20.6 50% to 60% 137,911 26.9 128,191 26.2 60% to 70% 224,352 43.8 202,670 41.3 70% to 80% 47,443 9.3 58,212 11.9 Gross balance 512,307 100.0 489,879 100.0 Market value adjustment (1,267) (0.2) 412 0.1 Allowance for credit losses (3,798) (0.7) (2,987) (0.6) Totals $ 507,242 99.1 $ 487,304 99.5 (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 September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (In thousands) Balance, beginning of the period $ 2,573 3,238 2,987 2,486 Provision during the period 1,225 718 811 1,470 Total ending allowance for credit losses $ 3,798 3,956 3,798 3,956 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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: September 30, 2022 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale $ 7,650,578 — 7,240,031 410,547 Debt securities, trading 1,052,361 — 952,055 100,306 Equity securities 21,698 18,067 3,631 — Mortgage loans 19,390 — — 19,390 Derivatives, index options 6,815 — — 6,815 Total assets $ 8,750,842 18,067 8,195,717 537,058 Policyholder account balances (a) $ 45,796 — — 45,796 Other liabilities (b) (333,056) — (331,009) (2,047) Total liabilities $ (287,260) — (331,009) 43,749 December 31, 2021 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale $ 9,068,946 — 8,741,984 326,962 Debt security, trading 1,077,438 — 1,002,616 74,822 Equity securities 28,217 23,795 4,422 — Mortgage loans 8,469 — — 8,469 Derivatives, index options 101,622 — — 101,622 Total assets $ 10,284,692 23,795 9,749,022 511,875 Policyholder account balances (a) $ 142,761 — — 142,761 Other liabilities (b) (76,856) — (84,725) 7,869 Total liabilities $ 65,905 — (84,725) 150,630 (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. |
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: September 30, 2022 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale: Priced by third-party vendors $ 7,586,834 — 7,240,031 346,803 Priced internally 63,744 — — 63,744 Subtotal 7,650,578 — 7,240,031 410,547 Debt securities, trading: Priced by third-party vendors 1,052,361 — 952,055 100,306 Priced internally — — — — Subtotal 1,052,361 — 952,055 100,306 Equity securities: Priced by third-party vendors 21,698 18,067 3,631 — Priced internally — — — — Subtotal 21,698 18,067 3,631 — Mortgage loans: Priced by third-party vendors — — — — Priced internally 19,390 — — 19,390 Subtotal 19,390 — — 19,390 Derivatives, index options: Priced by third-party vendors 6,815 — — 6,815 Priced internally — — — — Subtotal 6,815 — — 6,815 Total $ 8,750,842 18,067 8,195,717 537,058 Percent of total 100.0 % 0.2 % 93.7 % 6.1 % December 31, 2021 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale: Priced by third-party vendors $ 8,955,678 — 8,741,984 213,694 Priced internally 113,268 — — 113,268 Subtotal 9,068,946 — 8,741,984 326,962 Debt securities, trading: Priced by third-party vendors 1,077,438 — 1,002,616 74,822 Priced internally — — — — Subtotal 1,077,438 — 1,002,616 74,822 Equity securities: Priced by third-party vendors 28,217 23,795 4,422 — Priced internally — — — — Subtotal 28,217 23,795 4,422 — Mortgage loans: Priced by third-party vendors — — — — Priced internally 8,469 — — 8,469 Subtotal 8,469 — — 8,469 Derivatives, index options: Priced by third-party vendors 101,622 — — 101,622 Priced internally — — — — Subtotal 101,622 — — 101,622 Total $ 10,284,692 23,795 9,749,022 511,875 Percent of total 100.0 % 0.2 % 94.8 % 5.0 % |
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. Three Months Ended September 30, 2022 Assets Debt Securities, Available-for-Sale Trading Securities Derivatives, Index Options Mortgage Loans Total Assets (In thousands) Beginning balance, July 1, 2022 $ 373,957 99,769 6,071 18,738 498,535 Total realized and unrealized gains (losses): Included in net earnings — (3,102) (12,550) (551) (16,203) Included in other comprehensive income (loss) (12,642) — — — (12,642) Purchases, sales, issuances and settlements, net: Purchases 55,888 3,904 13,386 1,234 74,412 Sales — — — — — Issuances — — — — — Settlements (6,656) (265) (92) (31) (7,044) Transfers into (out of) Level 3 — — — — — Balance at end of period $ 410,547 100,306 6,815 19,390 537,058 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 $ — (3,102) 6,524 (551) 2,871 Benefits and expenses — — — — — Total $ — (3,102) 6,524 (551) 2,871 Three Months Ended September 30, 2022 Liabilities Embedded Derivative on Funds Withheld Liability Policyholder Account Balances Share-based Comp Total Liabilities (In thousands) Beginning balance, July 1, 2022 $ (6,534) 45,342 9,332 48,140 Total realized and unrealized gains (losses): Included in net earnings (3,681) (12,840) (1,319) (17,840) Included in other comprehensive income (loss) — — — — Purchases, sales, issuances and settlements, net: Purchases — 13,386 — 13,386 Sales — — — — Issuances — — 155 155 Settlements — (92) — (92) Transfers into (out of) Level 3 — — — — Balance at end of period $ (10,215) 45,796 8,168 43,749 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 $ (3,681) — — (3,681) Benefits and expenses — 6,524 (1,319) 5,205 Total $ (3,681) 6,524 (1,319) 1,524 Three Months Ended September 30, 2021 Assets Other Liabilities Derivatives, Index Options Mortgage Loans Total Assets Policyholder Account Balances Stock Options Total Other Liabilities (In thousands) Beginning balance, July 1, 2021 $ 114,840 2,729 117,569 155,265 8,144 163,409 Total realized and unrealized gains (losses): Included in net earnings 2,284 221 2,505 1,485 270 1,755 Included in other comprehensive income — — — — — — Purchases, sales, issuances and settlements, net: Purchases 12,011 3,500 15,511 12,011 — 12,011 Sales — — — — — — Issuances — — — — — — Settlements (46,745) (11) (46,756) (46,745) (7) (46,752) Transfers into (out of) Level 3 — — — — — — Balance at end of period $ 82,390 6,439 88,829 122,016 8,407 130,423 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 $ (21,202) 221 (20,981) — — — Benefits and expenses — — — (21,202) 270 (20,932) Total $ (21,202) 221 (20,981) (21,202) 270 (20,932) Nine Months Ended September 30, 2022 Assets Debt Securities, Available-for-Sale Trading Securities Derivatives, Index Options Mortgage Loans Total Assets (In thousands) Beginning balance, January 1, 2022 $ 326,962 74,822 101,622 8,469 511,875 Total realized and unrealized gains (losses): Included in net earnings — (9,705) (89,173) (1,679) (100,557) Included in other comprehensive income (loss) (43,335) — — — (43,335) Purchases, sales, issuances and settlements, net: Purchases 151,872 35,454 39,642 12,693 239,661 Sales — — — — — Issuances — — — — — Settlements (24,952) (265) (45,276) (93) (70,586) Transfers into (out of) Level 3 — — — — — Balance at end of period $ 410,547 100,306 6,815 19,390 537,058 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 $ — (9,705) (52,858) (1,679) (64,242) Benefits and expenses — — — — — Total $ — (9,705) (52,858) (1,679) (64,242) Nine Months Ended September 30, 2022 Liabilities Embedded Derivative on Funds Withheld Liability Policyholder Account Balances Share-based Comp Total Liabilities (In thousands) Beginning balance, January 1, 2022 $ — 142,761 7,869 150,630 Total realized and unrealized gains (losses): Included in net earnings (11,384) (91,331) 1,192 (101,523) Included in other comprehensive income (loss) — — — — Purchases, sales, issuances and settlements, net: Purchases — 39,642 — 39,642 Sales — — — — Issuances — — 184 184 Settlements — (45,276) (1,077) (46,353) Transfers into (out of) Level 3 1,169 — — 1,169 Balance at end of period $ (10,215) 45,796 8,168 43,749 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 $ (11,384) — — (11,384) Benefits and expenses — (52,858) 1,193 (51,665) Total $ (11,384) (52,858) 1,193 (63,049) For the Nine Months Ended September 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 70,474 256 70,730 81,570 4,187 85,757 Included in other comprehensive income — — — — — — Purchases, sales, issuances and settlements, net: Purchases 34,194 6,198 40,392 34,194 — 34,194 Sales — — — — — — Issuances — — — — — — Settlements (155,099) (15) (155,114) (155,099) (1,982) (157,081) Transfers into (out of) Level 3 — — — — — — Balance at end of period $ 82,390 6,439 88,829 122,016 8,407 130,423 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 $ 30,159 256 30,415 — — — Benefits and expenses — — — 30,159 4,187 34,346 Total $ 30,159 256 30,415 30,159 4,187 34,346 |
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: September 30, 2022 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands) Assets: Debt securities available-for-sale $ 63,744 Discounted cash flows Discount rate 2.76% - 6.14% (4.57%) Derivatives, index options 6,815 Broker prices Implied volatility 12.14% - 34.75% (17.51%) Mortgage loans 19,390 Discounted cash flows Spread 175 - 275 bps Total assets $ 89,949 Liabilities: Policyholder account balances $ 45,796 Deterministic cash flow model Projected option cost 0.00% - 7.29% (0.19%) Share-based compensation 8,168 Black-Scholes model Expected term 1.2 to 9.2 years Expected volatility 35.05% Total liabilities $ 53,964 December 31, 2021 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands) Assets: Debt securities available-for-sale $ 113,268 Discounted cash flows Discount rate 2.40% - 6.14% (4.06%) Derivatives, index options 101,622 Broker prices Implied volatility 11.76% - 16.54% (14.55%) Mortgage loans 8,469 Discounted cash flows Spread 100 - 250 bps Total assets $ 223,359 Liabilities: Policyholder account balances $ 142,761 Deterministic cash flow model Projected option cost 0.03% - 14.49% (2.65%) Share-based compensation 7,869 Black-Scholes model Expected term 1.9 to 10.0 years Expected volatility 35.05% Total liabilities $ 150,630 |
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: September 30, 2022 Fair Value Hierarchy Level Carrying Fair Level 1 Level 2 Level 3 (In thousands) ASSETS Debt securities, available-for-sale $ 7,650,578 7,650,578 — 7,240,031 410,547 Debt securities, trading 1,052,361 1,052,361 — 952,055 100,306 Cash and cash equivalents 331,139 331,139 331,139 — — Mortgage loans 507,242 459,135 — — 459,135 Real estate 27,851 48,077 — — 48,077 Policy loans 70,397 86,086 — — 86,086 Other loans 25,562 26,812 — — 26,812 Derivatives, index options 6,815 6,815 — — 6,815 Equity securities 21,698 21,698 18,067 3,631 — Life interest in Libbie Shearn Moody Trust 8,254 12,775 — — 12,775 Other investments 4,513 26,203 — — 26,203 LIABILITIES Deferred annuity contracts $ 6,210,476 5,103,544 — — 5,103,544 Immediate annuity and supplemental contracts 402,903 384,498 — — 384,498 December 31, 2021 Fair Value Hierarchy Level Carrying Fair Level 1 Level 2 Level 3 (In thousands) ASSETS Debt securities, available-for-sale $ 9,068,946 9,068,946 — 8,741,984 326,962 Debt securities, trading 1,077,438 1,077,438 — 1,002,616 74,822 Cash and cash equivalents 714,624 714,624 702,632 11,992 — Mortgage loans 487,304 513,246 — — 513,246 Real estate 28,606 47,027 — — 47,027 Policy loans 71,286 110,492 — — 110,492 Other loans 24,266 25,085 — — 25,085 Derivatives, index options 101,622 101,622 — — 101,622 Equity securities 28,217 28,217 23,795 4,422 — Life interest in Libbie Shearn Moody Trust 8,254 12,775 — — 12,775 Other investments 4,537 24,876 — — 24,876 LIABILITIES Deferred annuity contracts $ 6,463,314 4,703,331 — — 4,703,331 Immediate annuity and supplemental contracts 422,209 457,787 — — 457,787 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022 and December 31, 2021, respectively. September 30, 2022 Asset Derivatives Liability Derivatives Balance Fair Balance Fair (In thousands) (In thousands) Derivatives not designated as hedging instruments Equity index options Derivatives, Index Options $ 6,815 Fixed-index products Universal life and annuity contracts $ 45,796 Embedded derivative on reinsurance contract Funds withheld liability (341,224) Total $ 6,815 $ (295,428) December 31, 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 $ 101,622 Fixed-index products Universal life and annuity contracts $ 142,761 Embedded derivative on reinsurance contract Funds withheld liability (84,725) Total $ 101,622 $ 58,036 |
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 September 30, 2022 and 2021. September 30, September 30, Derivatives Not Designated Location of Gain Amount of Gain or (In thousands) Equity index options Net investment income $ (12,550) 2,284 Fixed-index products Universal life and annuity contract interest 12,840 (1,484) Embedded derivative on reinsurance contract Net investment income 70,610 4,147 $ 70,900 4,947 The table below presents the effect of derivative instruments in the Condensed Consolidated Statements of Earnings for the nine months ended September 30, 2022 and 2021. September 30, September 30, Derivatives Not Designated Location of Gain Amount of Gain or (In thousands) Equity index options Net investment income $ (89,173) 70,474 Fixed-index products Universal life and annuity contract interest 91,331 (81,570) Embedded derivative on reinsurance contract Net investment income 256,499 76,486 $ 258,657 65,390 |
Intangibles, Value of Busines_2
Intangibles, Value of Business Acquired, and Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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. September 30, 2022 December 31, 2021 Weighted-Average Amortization Period Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Trademarks/trade names 15 $ 2,800 (684) 2,800 (545) Internally developed software 7 3,800 (1,990) 3,800 (1,583) Insurance licenses N/A 3,000 — 3,000 — $ 9,600 (2,674) 9,600 (2,128) |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of September 30, 2022, 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 2022 $ 182 2023 730 2024 730 2025 730 2026 232 Thereafter 1,322 |
Schedule of Changes in VOBA | Changes in VOBA were as follows for the periods shown: September 30, December 31, 2022 2021 (In thousands) Balance, beginning of year $ 154,499 162,968 Amortization: Amortization, excluding unlocking (6,310) (8,469) Balance as of end of period $ 148,189 154,499 |
Schedule of Expected Amortization of VOBA | Estimated future amortization of VOBA, net of interest, as of September 30, 2022, is as follows: Expected Amortization (In thousands) Remainder of 2022 $ 2,117 2023 8,117 2024 7,789 2025 7,587 2026 7,436 |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill were as follows: September 30, December 31, 2022 2021 (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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other net investment gains | $ 745 | $ 5,011 | $ 6,305 | $ 9,842 |
Earnings before Federal income taxes | 27,903 | 50,181 | 111,214 | 191,198 |
Federal income taxes | 6,142 | 10,341 | 22,504 | 39,329 |
Net earnings | 21,761 | 39,840 | 88,710 | 151,869 |
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 | (163) | 5,025 | 5,061 | 11,265 |
Earnings before Federal income taxes | (163) | 5,025 | 5,061 | 11,265 |
Federal income taxes | (34) | 1,055 | 1,063 | 2,366 |
Net earnings | $ (129) | $ 3,970 | $ 3,998 | $ 8,899 |
Consolidation and Basis of Pr_4
Consolidation and Basis of Presentation - Narrative (Details) $ in Millions | Jul. 27, 2022 USD ($) |
Aspida Life Re Ltd. | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Statutory reserve liabilities ceded to Aspida | $ 250 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
NWLIC | ||||
Dividends Payable [Line Items] | ||||
Percentage of statutory surplus (percent) | 10% | 10% | ||
Maximum dividend payment which may be paid without prior approval | $ 64,400,000 | $ 64,400,000 | ||
NWLIC | Dividend Paid | ||||
Dividends Payable [Line Items] | ||||
Dividends | 2,000,000 | $ 0 | ||
NWLIC | Dividend Declared | ||||
Dividends Payable [Line Items] | ||||
Dividends | $ 2,000,000 | 0 | ||
Ozark National Life Insurance Company | ||||
Dividends Payable [Line Items] | ||||
Percentage of statutory surplus (percent) | 10% | 10% | ||
Maximum dividend payment which may be paid without prior approval | $ 18,600,000 | $ 18,600,000 | ||
Ozark National Life Insurance Company | Dividend Paid | ||||
Dividends Payable [Line Items] | ||||
Dividends | 0 | 0 | ||
Ozark National Life Insurance Company | Dividend Declared | ||||
Dividends Payable [Line Items] | ||||
Dividends | 0 | 0 | ||
National Western Life Group Inc | Dividend Paid | ||||
Dividends Payable [Line Items] | ||||
Dividends | 0 | 0 | ||
National Western Life Group Inc | Dividend Declared | ||||
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% | |||
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% | 99% |
Earnings Per Share - EPS Calcul
Earnings Per Share - EPS Calculation (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) class_of_stock $ / shares shares | Sep. 30, 2021 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) class_of_stock $ / shares shares | Sep. 30, 2021 USD ($) $ / shares shares | |
Earnings Per Share [Abstract] | ||||
Number of classes of common stock | class_of_stock | 2 | 2 | ||
Share-based compensation awards outstanding that could be redeemed for shares of common stock (shares) | shares | 0 | |||
Numerator for Basic and Diluted Earnings Per Share: | ||||
Net earnings | $ 21,761 | $ 39,840 | $ 88,710 | $ 151,869 |
Undistributed earnings | 21,761 | 39,840 | 88,710 | 151,869 |
Allocation of net earnings: | ||||
Undistributed earnings | 21,761 | 39,840 | 88,710 | 151,869 |
Net earnings | 21,761 | 39,840 | 88,710 | 151,869 |
Class A | ||||
Numerator for Basic and Diluted Earnings Per Share: | ||||
Net earnings | 21,146 | 38,713 | 86,201 | 147,574 |
Dividends | 0 | 0 | 0 | 0 |
Undistributed earnings | 21,146 | 38,713 | 86,201 | 147,574 |
Allocation of net earnings: | ||||
Dividends | 0 | 0 | 0 | 0 |
Undistributed earnings | 21,146 | 38,713 | 86,201 | 147,574 |
Net earnings | $ 21,146 | $ 38,713 | $ 86,201 | $ 147,574 |
Denominator: | ||||
Basic earnings per share - weighted-average shares (in shares) | shares | 3,436,000 | 3,436,000 | 3,436,000 | 3,436,000 |
Effect of dilutive stock options (in shares) | shares | 0 | 0 | 0 | 0 |
Diluted earnings per share - adjusted weighted-average shares for assumed conversions (in shares) | shares | 3,436,000 | 3,436,000 | 3,436,000 | 3,436,000 |
Basic earnings per share (in dollars per share) | $ / shares | $ 6.15 | $ 11.27 | $ 25.09 | $ 42.95 |
Diluted earnings per share (in dollars per share) | $ / shares | $ 6.15 | $ 11.27 | $ 25.09 | $ 42.95 |
Class B | ||||
Numerator for Basic and Diluted Earnings Per Share: | ||||
Net earnings | $ 615 | $ 1,127 | $ 2,509 | $ 4,295 |
Dividends | 0 | 0 | 0 | 0 |
Undistributed earnings | 615 | 1,127 | 2,509 | 4,295 |
Allocation of net earnings: | ||||
Dividends | 0 | 0 | 0 | 0 |
Undistributed earnings | 615 | 1,127 | 2,509 | 4,295 |
Net earnings | $ 615 | $ 1,127 | $ 2,509 | $ 4,295 |
Denominator: | ||||
Basic earnings per share - weighted-average shares (in shares) | shares | 200,000 | 200,000 | 200,000 | 200,000 |
Effect of dilutive stock options (in shares) | shares | 0 | 0 | 0 | 0 |
Diluted earnings per share - adjusted weighted-average shares for assumed conversions (in shares) | shares | 200,000 | 200,000 | 200,000 | 200,000 |
Basic earnings per share (in dollars per share) | $ / shares | $ 3.08 | $ 5.63 | $ 12.54 | $ 21.47 |
Diluted earnings per share (in dollars per share) | $ / shares | $ 3.08 | $ 5.63 | $ 12.54 | $ 21.47 |
Pension and Other Postretirem_3
Pension and Other Postretirement Plans - Narrative (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 USD ($) 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% | |
Minimum required contribution | $ 0 | |
Planned contributions remaining | 0 | |
Maximum contributions payable | 0 | |
Company contributions to 2021 year plan | 0.3 | |
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 | $ 1.3 | |
Plan participant's age threshold for Company's contingent liability with respect to the Plan | 70 years | |
Aggregate average annual participant salary increase | 10% | |
Company expected contributions to plans in fiscal year | $ 2 |
Pension and Other Postretirem_4
Pension and Other Postretirement Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Defined Benefit Pension Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 32 | $ 29 | $ 98 | $ 89 |
Interest cost | 145 | 133 | 435 | 396 |
Expected return on plan assets | (394) | (356) | (1,181) | (1,068) |
Amortization of net loss | 34 | 135 | 101 | 404 |
Net periodic benefit cost | (183) | (59) | (547) | (179) |
Chairman and President Non-Qualified Defined Benefit Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 260 | 309 | 779 | 927 |
Interest cost | 278 | 262 | 835 | 783 |
Amortization of prior service cost | 14 | 14 | 44 | 44 |
Amortization of net loss | 585 | 1,283 | 1,754 | 3,848 |
Net periodic benefit cost | 1,137 | 1,868 | 3,412 | 5,602 |
Postretirement Employment Plans Other Than Pension | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Interest cost | 44 | 37 | 130 | 111 |
Amortization of net loss | 52 | 73 | 156 | 219 |
Net periodic benefit cost | $ 96 | $ 110 | $ 286 | $ 330 |
Segment and Other Operating I_3
Segment and Other Operating Information - Balance Sheet Items (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Total segment assets | $ 13,238,225 | $ 14,330,189 |
Other policyholder liabilities | 146,552 | 134,338 |
Funds withheld liability | 1,367,599 | 1,485,267 |
Segments | ||
Segment Reporting Information [Line Items] | ||
Deferred transaction costs | 1,316,312 | 892,160 |
Total segment assets | 12,641,953 | 13,426,665 |
Future policy benefits | 9,601,808 | 9,912,987 |
Other policyholder liabilities | 146,552 | 134,338 |
Funds withheld liability | 1,367,599 | 1,485,267 |
Segments | Domestic Life Insurance | ||
Segment Reporting Information [Line Items] | ||
Deferred transaction costs | 253,867 | 150,688 |
Total segment assets | 1,726,670 | 1,791,017 |
Future policy benefits | 1,536,411 | 1,537,482 |
Other policyholder liabilities | 21,489 | 20,950 |
Funds withheld liability | 0 | 0 |
Segments | International Life Insurance | ||
Segment Reporting Information [Line Items] | ||
Deferred transaction costs | 279,108 | 152,340 |
Total segment assets | 973,438 | 975,942 |
Future policy benefits | 697,903 | 749,537 |
Other policyholder liabilities | 14,530 | 14,268 |
Funds withheld liability | 0 | 0 |
Segments | Annuities | ||
Segment Reporting Information [Line Items] | ||
Deferred transaction costs | 621,287 | 423,318 |
Total segment assets | 8,612,842 | 9,187,610 |
Future policy benefits | 6,574,271 | 6,843,457 |
Other policyholder liabilities | 95,449 | 82,650 |
Funds withheld liability | 1,367,599 | 1,485,267 |
Segments | ONL & Affiliates | ||
Segment Reporting Information [Line Items] | ||
Deferred transaction costs | 162,050 | 165,814 |
Total segment assets | 992,402 | 1,115,380 |
Future policy benefits | 793,223 | 782,511 |
Other policyholder liabilities | 15,084 | 16,470 |
Funds withheld liability | 0 | 0 |
Segments | All Others | ||
Segment Reporting Information [Line Items] | ||
Deferred transaction costs | 0 | 0 |
Total segment assets | 336,601 | 356,716 |
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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Condensed Consolidated Income Statements: | ||||
Premiums and contract revenues | $ 57,702 | $ 55,094 | $ 167,025 | $ 168,739 |
Net investment income | 79,504 | 88,970 | 204,702 | 411,589 |
Other revenues | 5,922 | 5,806 | 17,297 | 17,254 |
Total revenues | 143,873 | 154,881 | 395,329 | 607,424 |
Life and other policy benefits | 37,356 | 70,633 | 114,432 | 144,426 |
Amortization of deferred transaction costs | 31,679 | (8,389) | 88,451 | 46,723 |
Universal life and annuity contract interest | 17,548 | 11,663 | (11,058) | 134,481 |
Other operating expenses | 29,387 | 30,793 | 92,290 | 90,596 |
Federal income taxes | 6,142 | 10,341 | 22,504 | 39,329 |
Net earnings | 21,761 | 39,840 | 88,710 | 151,869 |
Segments | ||||
Condensed Consolidated Income Statements: | ||||
Premiums and contract revenues | 57,702 | 55,094 | 167,025 | 168,739 |
Net investment income | 79,504 | 88,970 | 204,702 | 411,589 |
Other revenues | 5,922 | 5,806 | 17,297 | 17,254 |
Total revenues | 143,128 | 149,870 | 389,024 | 597,582 |
Life and other policy benefits | 37,356 | 70,633 | 114,432 | 144,426 |
Amortization of deferred transaction costs | 31,679 | (8,389) | 88,451 | 46,723 |
Universal life and annuity contract interest | 17,548 | 11,663 | (11,058) | 134,481 |
Other operating expenses | 29,387 | 30,793 | 92,290 | 90,596 |
Federal income taxes | 5,986 | 9,289 | 21,180 | 37,262 |
Total expenses | 121,956 | 113,989 | 305,295 | 453,488 |
Net earnings | 21,172 | 35,881 | 83,729 | 144,094 |
Segments | Domestic Life Insurance | ||||
Condensed Consolidated Income Statements: | ||||
Premiums and contract revenues | 15,154 | 12,122 | 43,261 | 38,495 |
Net investment income | 8,813 | 6,599 | 581 | 58,689 |
Other revenues | 26 | 28 | 77 | 80 |
Total revenues | 23,993 | 18,749 | 43,919 | 97,264 |
Life and other policy benefits | 6,294 | 6,752 | 17,458 | 17,869 |
Amortization of deferred transaction costs | 7,224 | 2,479 | 13,388 | 8,092 |
Universal life and annuity contract interest | 1,588 | 3,015 | (12,811) | 50,102 |
Other operating expenses | 6,503 | 5,891 | 20,013 | 18,820 |
Federal income taxes | 509 | 126 | 1,187 | 490 |
Total expenses | 22,118 | 18,263 | 39,235 | 95,373 |
Net earnings | 1,875 | 486 | 4,684 | 1,891 |
Segments | International Life Insurance | ||||
Condensed Consolidated Income Statements: | ||||
Premiums and contract revenues | 17,866 | 19,570 | 54,106 | 60,406 |
Net investment income | 3,793 | 9,172 | (3,610) | 35,135 |
Other revenues | 24 | 19 | 63 | 91 |
Total revenues | 21,683 | 28,761 | 50,559 | 95,632 |
Life and other policy benefits | 5,878 | 10,272 | 16,065 | 19,949 |
Amortization of deferred transaction costs | 4,275 | (27,896) | 14,269 | (16,341) |
Universal life and annuity contract interest | 2,502 | (7,056) | (7,841) | 15,969 |
Other operating expenses | 4,408 | 4,640 | 13,621 | 14,060 |
Federal income taxes | 1,010 | 10,042 | 2,921 | 12,752 |
Total expenses | 18,073 | (9,998) | 39,035 | 46,389 |
Net earnings | 3,610 | 38,759 | 11,524 | 49,243 |
Segments | Annuities | ||||
Condensed Consolidated Income Statements: | ||||
Premiums and contract revenues | 5,859 | 4,243 | 12,509 | 11,915 |
Net investment income | 56,735 | 62,150 | 174,101 | 282,073 |
Other revenues | 1,744 | 1,305 | 4,342 | 4,068 |
Total revenues | 64,338 | 67,698 | 190,952 | 298,056 |
Life and other policy benefits | 8,766 | 36,079 | 31,805 | 55,909 |
Amortization of deferred transaction costs | 18,195 | 14,916 | 53,832 | 47,741 |
Universal life and annuity contract interest | 13,458 | 15,704 | 9,594 | 68,410 |
Other operating expenses | 12,219 | 13,544 | 39,091 | 38,338 |
Federal income taxes | 2,711 | (2,560) | 11,452 | 18,031 |
Total expenses | 55,349 | 77,683 | 145,774 | 228,429 |
Net earnings | 8,989 | (9,985) | 45,178 | 69,627 |
Segments | ONL & Affiliates | ||||
Condensed Consolidated Income Statements: | ||||
Premiums and contract revenues | 18,823 | 19,159 | 57,149 | 57,923 |
Net investment income | 7,301 | 6,763 | 21,438 | 20,117 |
Other revenues | 2,777 | 3,169 | 8,865 | 9,368 |
Total revenues | 28,901 | 29,091 | 87,452 | 87,408 |
Life and other policy benefits | 16,418 | 17,530 | 49,104 | 50,699 |
Amortization of deferred transaction costs | 1,985 | 2,112 | 6,962 | 7,231 |
Universal life and annuity contract interest | 0 | 0 | 0 | 0 |
Other operating expenses | 4,756 | 5,229 | 14,827 | 14,908 |
Federal income taxes | 1,141 | 839 | 3,313 | 2,954 |
Total expenses | 24,300 | 25,710 | 74,206 | 75,792 |
Net earnings | 4,601 | 3,381 | 13,246 | 11,616 |
Segments | All Others | ||||
Condensed Consolidated Income Statements: | ||||
Premiums and contract revenues | 0 | 0 | 0 | 0 |
Net investment income | 2,862 | 4,286 | 12,192 | 15,575 |
Other revenues | 1,351 | 1,285 | 3,950 | 3,647 |
Total revenues | 4,213 | 5,571 | 16,142 | 19,222 |
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 | 1,501 | 1,489 | 4,738 | 4,470 |
Federal income taxes | 615 | 842 | 2,307 | 3,035 |
Total expenses | 2,116 | 2,331 | 7,045 | 7,505 |
Net earnings | $ 2,097 | $ 3,240 | $ 9,097 | $ 11,717 |
Segment and Other Operating I_5
Segment and Other Operating Information - Premiums and Other Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting [Abstract] | ||||
Premiums and contract revenues | $ 57,702 | $ 55,094 | $ 167,025 | $ 168,739 |
Net investment income | 79,504 | 88,970 | 204,702 | 411,589 |
Other revenues | 5,922 | 5,806 | 17,297 | 17,254 |
Realized gains on investments | 745 | 5,011 | 6,305 | 9,842 |
Total revenues | $ 143,873 | $ 154,881 | $ 395,329 | $ 607,424 |
Segment and Other Operating I_6
Segment and Other Operating Information - Federal Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Federal income taxes | $ 6,142 | $ 10,341 | $ 22,504 | $ 39,329 |
Segments | ||||
Segment Reporting Information [Line Items] | ||||
Federal income taxes | 5,986 | 9,289 | 21,180 | 37,262 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Taxes on realized gains on investments | $ 156 | $ 1,052 | $ 1,324 | $ 2,067 |
Segment and Other Operating I_7
Segment and Other Operating Information - Net Earnings (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Net earnings | $ 21,761 | $ 39,840 | $ 88,710 | $ 151,869 |
Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net earnings | 21,172 | 35,881 | 83,729 | 144,094 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Realized gains on investments, net of taxes | $ 589 | $ 3,959 | $ 4,981 | $ 7,775 |
Segment and Other Operating I_8
Segment and Other Operating Information - Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Total condensed consolidated assets | $ 13,238,225 | $ 14,330,189 |
Segments | ||
Segment Reporting Information [Line Items] | ||
Total condensed consolidated assets | 12,641,953 | 13,426,665 |
Other unallocated | ||
Segment Reporting Information [Line Items] | ||
Total condensed consolidated assets | $ 596,272 | $ 903,524 |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Term of extension | 10 years | ||||||
Liability balance of accrued costs | $ 8,200,000 | $ 8,200,000 | $ 7,900,000 | ||||
Total intrinsic value of options exercised | 1,100,000 | $ 2,000,000 | |||||
Fair value of vested awards | 100,000 | 0 | |||||
Cash received from exercise of stock options | $ 0 | 0 | |||||
Closing stock price (in dollars per share) | $ 170.80 | $ 170.80 | |||||
Pre-tax compensation cost (benefit) recognized | $ (1,200,000) | $ 300,000 | $ 1,400,000 | 4,200,000 | |||
Compensation cost (benefit), tax expense (benefit) | 200,000 | $ (100,000) | (300,000) | $ (900,000) | |||
Compensation cost related to nonvested options not yet recognized | $ 5,200,000 | $ 5,200,000 | |||||
Weighted average period over which the compensation is expected to be recognized | 1 year 2 months 12 days | ||||||
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 | Directors | |||||||
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% | ||||||
Vesting period | 3 years | ||||||
RSU | Directors | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 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 | 110.19% | 85.16% | |||||
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% | ||||||
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 | Directors | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 20% | ||||||
Vesting Service Period, Trench One | RSU | Employees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Requisite service period of awards | 3 years | ||||||
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% | ||||||
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 | Directors | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 20% | ||||||
Vesting Service Period, Trench Two | RSU | Employees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Requisite service period of awards | 3 years | ||||||
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% | ||||||
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 | Directors | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 20% | ||||||
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% | ||||||
Vesting Service Period, Trench Four | Employee Stock Options and SARs | Directors | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 20% | ||||||
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% | ||||||
Vesting Service Period, Trench Five | Employee Stock Options and SARs | Directors | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 20% | ||||||
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 | ||||
Award vesting price determining period | 20 days | ||||||
Class A | RSU | Directors | |||||||
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 | Vesting Service Period, Trench Two | RSU | Employees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting price determining period | 20 days | ||||||
Class A | Incentive 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 - Granted
Share-Based Payments - Granted Issued to Officers and Directors (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Class A | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting price determining period | 20 days | |||
PSU | Class A | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting price determining period | 20 days | |||
Officer | SAR | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in the period (in shares) | 0 | 0 | 0 | 0 |
Officer | RSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in the period (in shares) | 0 | 0 | 0 | 0 |
Officer | PSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in the period (in shares) | 0 | 0 | 0 | 0 |
Directors | SAR | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in the period (in shares) | 0 | 0 | 0 | 0 |
Directors | RSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in the period (in shares) | 0 | 0 | 3,710 | 0 |
Directors | RSU | Class A | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting price determining period | 20 days | |||
Directors | PSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in the period (in shares) | 0 | 0 | 0 | 0 |
Share-Based Payments - Options
Share-Based Payments - Options and Stock Appreciation Rights Outstanding (Details) | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
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 |
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 |
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) | 186,994 |
Exercised (in shares) | (209) |
Forfeited (in shares) | (10,890) |
Granted (in shares) | 0 |
Ending balance (in shares) | 175,895 |
RSU | |
Liability Awards | |
Beginning balance (in shares) | 18,955 |
Exercised (in shares) | (353) |
Forfeited (in shares) | (817) |
Granted (in shares) | 3,710 |
Ending balance (in shares) | 21,495 |
PSU | |
Liability Awards | |
Beginning balance (in shares) | 24,485 |
Exercised (in shares) | (4,213) |
Forfeited (in shares) | (805) |
Granted (in shares) | 0 |
Ending balance (in shares) | 19,467 |
Share-Based Payments - Exercise
Share-Based Payments - Exercise Range (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number Outstanding (in shares) | 175,895 |
Number Exercisable (in shares) | 82,099 |
SAR | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number Outstanding, Aggregate intrinsic value | $ | $ 0 |
Number Exercisable, Aggregate intrinsic value | $ | $ 0 |
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) | 21,850 |
Weighted- Average Remaining Contractual Life | 1 year 2 months 12 days |
Number Exercisable (in shares) | 21,850 |
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) | 10,342 |
Weighted- Average Remaining Contractual Life | 3 years 4 months 24 days |
Number Exercisable (in shares) | 10,342 |
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) | 7,981 |
Weighted- Average Remaining Contractual Life | 4 years 4 months 24 days |
Number Exercisable (in shares) | 7,981 |
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 | 4 years 7 months 6 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) | 7,631 |
Weighted- Average Remaining Contractual Life | 5 years 2 months 12 days |
Number Exercisable (in shares) | 7,631 |
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) | 9,574 |
Weighted- Average Remaining Contractual Life | 6 years 2 months 12 days |
Number Exercisable (in shares) | 9,574 |
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) | 17,797 |
Weighted- Average Remaining Contractual Life | 7 years 2 months 12 days |
Number Exercisable (in shares) | 11,859 |
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) | 38,008 |
Weighted- Average Remaining Contractual Life | 8 years 2 months 12 days |
Number Exercisable (in shares) | 12,659 |
SAR | 218.44 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 218.44 |
Number Outstanding (in shares) | 62,509 |
Weighted- Average Remaining Contractual Life | 9 years 2 months 12 days |
Number Exercisable (in shares) | 0 |
Share-Based Payments - Black Sc
Share-Based Payments - Black Scholes Option Pricing Model Assumptions (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield | 0.21% | 0.17% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 1 year 2 months 12 days | 1 year 10 months 24 days |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 9 years 2 months 12 days | 10 years |
Weighted-Average | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility weighted-average | 35.05% | 35.05% |
Risk-free rate weighted-average | 4.06% | 1.01% |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 12 Months Ended | ||||||
May 10, 2022 USD ($) | Mar. 04, 2022 USD ($) | Nov. 11, 2019 USD ($) | Jul. 27, 2019 USD ($) | Dec. 31, 2020 class_action_suit | Sep. 30, 2022 USD ($) | Apr. 30, 2019 USD ($) | |
Revolving Credit Facility | |||||||
Loss Contingencies [Line Items] | |||||||
Other commitment | $ 300,000 | ||||||
New Loans | |||||||
Loss Contingencies [Line Items] | |||||||
Other commitment | 0 | ||||||
Existing Loans | |||||||
Loss Contingencies [Line Items] | |||||||
Other commitment | 7,400,000 | ||||||
Capital Contributions to Investment Funds | |||||||
Loss Contingencies [Line Items] | |||||||
Other commitment | $ 241,700,000 | ||||||
Williams v Pantaleoni et al | |||||||
Loss Contingencies [Line Items] | |||||||
Equity indexed annuity | $ 100,000 | ||||||
Punitive damages reversed | $ 2,500,000 | $ 2,500,000 | |||||
Williams v Pantaleoni et al | Economic Damages | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, damages awarded | 14,949 | 14,949 | |||||
Williams v Pantaleoni et al | Non-Economic Damages | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, damages awarded | 420,000 | 420,000 | |||||
Williams v Pantaleoni et al | Plaintiff Attorney's Fees | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, damages awarded | $ 1,260,000 | 1,260,000 | |||||
Williams v Pantaleoni et al | Appellate Costs | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, damages awarded | $ 538,461 | ||||||
Mildred Baldwin, on behalf of herself and others similarly situated vs. National Western Life Insurance Company | |||||||
Loss Contingencies [Line Items] | |||||||
Number of proposed claims | class_action_suit | 2 | ||||||
Judicial Ruling | Williams v Pantaleoni et al | Economic Damages | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, damages awarded | $ 14,949 | ||||||
Judicial Ruling | Williams v Pantaleoni et al | Non-Economic Damages | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, damages awarded | $ 2,900,000 | ||||||
Judicial Ruling | Williams v Pantaleoni et al | Plaintiff Attorney's Fees | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, damages awarded | $ 1,260,000 |
Investments - Investment Gains
Investments - Investment Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Available-for-sale debt securities: | ||||
Realized gains on disposal | $ 27 | $ 5,025 | $ 5,254 | $ 11,264 |
Realized losses on disposal | (190) | 0 | (193) | 0 |
Real estate gains (losses) | 908 | (14) | 1,244 | (1,421) |
Other | 0 | 0 | 0 | (1) |
Totals | $ 745 | $ 5,011 | $ 6,305 | $ 9,842 |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2022 | Sep. 30, 2022 issue | Sep. 30, 2022 security | |
Schedule of Investments [Line Items] | ||||||||
Percentage of gain (loss) on bonds due to calls of securities | 100% | 100% | 92.20% | 100% | ||||
Debt securities, available-for-sale | $ 7,650,578 | $ 7,650,578 | $ 9,068,946 | |||||
Loans originated during the year | 45,400 | $ 151,400 | 183,600 | |||||
Other long-term investments | 230,267 | 230,267 | 137,670 | |||||
Ozark National Holdings | ||||||||
Schedule of Investments [Line Items] | ||||||||
Debt securities, available-for-sale | 671,900 | 671,900 | 823,000 | |||||
Mortgage Loan Investment | ||||||||
Schedule of Investments [Line Items] | ||||||||
Loan investments made by reinsurer | 19,400 | 19,400 | 8,500 | |||||
Real Estate | ||||||||
Schedule of Investments [Line Items] | ||||||||
Other long-term investments | $ 27,900 | 27,900 | $ 28,600 | |||||
Operating income from real estate | 2,300 | $ 2,200 | ||||||
Total net gain | $ 1,200 | |||||||
Debt Securities | ||||||||
Schedule of Investments [Line Items] | ||||||||
Gross unrealized losses, number of issues | 1,127 | 1,127 | ||||||
Gross unrealized losses, percentage of total debt | 94.60% | |||||||
Gross unrealized losses, market value as a percent of amortized cost | 88.90% | |||||||
Gross unrealized losses, number of securities with maturities of 12 months or greater | security | 63 | |||||||
Gross unrealized losses, number of securities with maturities of 12 months or greater percentage | 5.60% | |||||||
Debt Securities | External Credit Rating, Investment Grade | ||||||||
Schedule of Investments [Line Items] | ||||||||
Gross unrealized losses, number of issues | security | 1,112 | |||||||
US Treasury Bond Securities | ||||||||
Schedule of Investments [Line Items] | ||||||||
Increase in 10-year U.S. Treasury bond rate | 2.32% |
Investments - Securities Availa
Investments - Securities Available for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt securities: | ||
Totals before allowance for credit losses | $ 8,576,423 | $ 8,604,250 |
Gross Unrealized Gains | 1,586 | 482,109 |
Gross Unrealized Losses | (927,431) | (17,413) |
Fair Value | 7,650,578 | 9,068,946 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | ||
Less than 12 Months | 7,004,161 | 816,935 |
12 Months or Greater | 421,452 | 27,109 |
Total | 7,425,613 | 844,044 |
Unrealized Losses | ||
Less than 12 Months | (771,310) | (15,844) |
12 Months or Greater | (156,121) | (1,569) |
Total | (927,431) | (17,413) |
U.S. agencies | ||
Debt securities: | ||
Totals before allowance for credit losses | 31,142 | 43,472 |
Gross Unrealized Gains | 0 | 1,071 |
Gross Unrealized Losses | (398) | 0 |
Fair Value | 30,744 | 44,543 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | ||
Less than 12 Months | 30,744 | |
12 Months or Greater | 0 | |
Total | 30,744 | |
Unrealized Losses | ||
Less than 12 Months | (398) | |
12 Months or Greater | 0 | |
Total | (398) | |
U.S. Treasury | ||
Debt securities: | ||
Totals before allowance for credit losses | 1,807 | 2,469 |
Gross Unrealized Gains | 0 | 21 |
Gross Unrealized Losses | (97) | 0 |
Fair Value | 1,710 | 2,490 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | ||
Less than 12 Months | 1,710 | |
12 Months or Greater | 0 | |
Total | 1,710 | |
Unrealized Losses | ||
Less than 12 Months | (97) | |
12 Months or Greater | 0 | |
Total | (97) | |
States and political subdivisions | ||
Debt securities: | ||
Totals before allowance for credit losses | 484,901 | 479,148 |
Gross Unrealized Gains | 611 | 27,733 |
Gross Unrealized Losses | (71,086) | (921) |
Fair Value | 414,426 | 505,960 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | ||
Less than 12 Months | 365,747 | 38,853 |
12 Months or Greater | 10,689 | 1,790 |
Total | 376,436 | 40,643 |
Unrealized Losses | ||
Less than 12 Months | (66,560) | (779) |
12 Months or Greater | (4,526) | (142) |
Total | (71,086) | (921) |
Foreign governments | ||
Debt securities: | ||
Totals before allowance for credit losses | 62,969 | 62,979 |
Gross Unrealized Gains | 0 | 293 |
Gross Unrealized Losses | (19,635) | (881) |
Fair Value | 43,334 | 62,391 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | ||
Less than 12 Months | 21,374 | 31,862 |
12 Months or Greater | 21,961 | 0 |
Total | 43,335 | 31,862 |
Unrealized Losses | ||
Less than 12 Months | (8,873) | (881) |
12 Months or Greater | (10,762) | 0 |
Total | (19,635) | (881) |
Public utilities | ||
Debt securities: | ||
Totals before allowance for credit losses | 722,050 | 745,359 |
Gross Unrealized Gains | 0 | 39,919 |
Gross Unrealized Losses | (72,135) | (309) |
Fair Value | 649,915 | 784,969 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | ||
Less than 12 Months | 643,609 | 15,286 |
12 Months or Greater | 6,306 | 0 |
Total | 649,915 | 15,286 |
Unrealized Losses | ||
Less than 12 Months | (68,805) | (309) |
12 Months or Greater | (3,330) | 0 |
Total | (72,135) | (309) |
Corporate | ||
Debt securities: | ||
Totals before allowance for credit losses | 6,272,907 | 6,322,471 |
Gross Unrealized Gains | 812 | 391,287 |
Gross Unrealized Losses | (657,134) | (12,805) |
Fair Value | 5,616,585 | 6,700,953 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | ||
Less than 12 Months | 5,135,018 | 541,974 |
12 Months or Greater | 319,676 | 25,319 |
Total | 5,454,694 | 567,293 |
Unrealized Losses | ||
Less than 12 Months | (534,216) | (11,378) |
12 Months or Greater | (122,918) | (1,427) |
Total | (657,134) | (12,805) |
Commercial mortgage-backed | ||
Debt securities: | ||
Totals before allowance for credit losses | 21,985 | 27,016 |
Gross Unrealized Gains | 0 | 741 |
Gross Unrealized Losses | (1,534) | 0 |
Fair Value | 20,451 | 27,757 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | ||
Less than 12 Months | 20,451 | |
12 Months or Greater | 0 | |
Total | 20,451 | |
Unrealized Losses | ||
Less than 12 Months | (1,534) | |
12 Months or Greater | 0 | |
Total | (1,534) | |
Residential mortgage-backed | ||
Debt securities: | ||
Totals before allowance for credit losses | 351,955 | 530,702 |
Gross Unrealized Gains | 141 | 18,921 |
Gross Unrealized Losses | (14,343) | 0 |
Fair Value | 337,753 | 549,623 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | ||
Less than 12 Months | 318,563 | |
12 Months or Greater | 0 | |
Total | 318,563 | |
Unrealized Losses | ||
Less than 12 Months | (14,343) | |
12 Months or Greater | 0 | |
Total | (14,343) | |
Asset-backed | ||
Debt securities: | ||
Totals before allowance for credit losses | 626,707 | 390,634 |
Gross Unrealized Gains | 22 | 2,123 |
Gross Unrealized Losses | (91,069) | (2,497) |
Fair Value | 535,660 | 390,260 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | ||
Less than 12 Months | 466,945 | 188,960 |
12 Months or Greater | 62,820 | 0 |
Total | 529,765 | 188,960 |
Unrealized Losses | ||
Less than 12 Months | (76,484) | (2,497) |
12 Months or Greater | (14,585) | 0 |
Total | $ (91,069) | $ (2,497) |
Investments - Contractual Matur
Investments - Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Securities Available for Sale - Amortized Cost | ||
Due after 1 year through 5 years | $ 2,859,810 | |
Due after 5 years through 10 years | 2,279,924 | |
Due after 10 years | 2,436,042 | |
Amortized Cost | 7,575,776 | |
Mortgage and asset-backed securities | 1,000,647 | |
Totals before allowance for credit losses | 8,576,423 | $ 8,604,250 |
Allowance for Credit Losses | 0 | 0 |
Totals | 8,576,423 | |
Debt Securities Available for Sale - Fair Value | ||
Due after 1 year through 5 years | 2,777,211 | |
Due after 5 years through 10 years | 2,041,245 | |
Due after 10 years | 1,938,258 | |
Fair Value | 6,756,714 | |
Mortgage and asset-backed securities | 893,864 | |
Allowance for credit losses | 0 | |
Total | $ 7,650,578 | $ 9,068,946 |
Investments - Mortgage Loans an
Investments - Mortgage Loans and Real Estate (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Totals | $ 507,242 | $ 507,242 | $ 487,304 | ||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Balance, beginning of the period | 2,987 | ||||
Total ending allowance for credit losses | 3,798 | 3,798 | |||
Real Estate | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Mortgage loan, amount | 512,307 | 512,307 | 489,879 | ||
Market value adjustment | (1,267) | (1,267) | 412 | ||
Allowance for credit losses | (3,798) | (3,798) | (2,987) | ||
Totals | $ 507,242 | $ 507,242 | $ 487,304 | ||
Mortgage loans, percentage | 100% | 100% | 100% | ||
Market value adjustment percentage | (0.20%) | (0.20%) | 0.10% | ||
Allowance for credit losses | (0.70%) | (0.70%) | (0.60%) | ||
Totals, percentage | 99.10% | 99.10% | 99.50% | ||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Balance, beginning of the period | $ 2,573 | $ 3,238 | $ 2,987 | $ 2,486 | |
Provision during the period | 1,225 | 718 | 811 | 1,470 | |
Total ending allowance for credit losses | 3,798 | $ 3,956 | 3,798 | $ 3,956 | |
Real Estate | Less than 50% | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Mortgage loan, amount | $ 102,601 | $ 102,601 | $ 100,806 | ||
Mortgage loans, percentage | 20% | 20% | 20.60% | ||
Real Estate | 50% to 60% | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Mortgage loan, amount | $ 137,911 | $ 137,911 | $ 128,191 | ||
Mortgage loans, percentage | 26.90% | 26.90% | 26.20% | ||
Real Estate | 60% to 70% | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Mortgage loan, amount | $ 224,352 | $ 224,352 | $ 202,670 | ||
Mortgage loans, percentage | 43.80% | 43.80% | 41.30% | ||
Real Estate | 70% to 80% | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Mortgage loan, amount | $ 47,443 | $ 47,443 | $ 58,212 | ||
Mortgage loans, percentage | 9.30% | 9.30% | 11.90% |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | $ 7,650,578,000 | $ 7,650,578,000 | $ 9,068,946,000 |
Debt securities, trading | 1,052,361,000 | 1,052,361,000 | 1,077,438,000 |
Equity securities | 21,698,000 | 21,698,000 | 28,217,000 |
Mortgage loans | 19,390,000 | 19,390,000 | 8,469,000 |
Derivatives, index options | 6,815,000 | 6,815,000 | 101,622,000 |
Transfer from Level 2 to Level 3 for debt securities available for sale | 0 | 0 | |
Transfer from level 2 to level 3 for liabilities | 0 | ||
Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 7,650,578,000 | 7,650,578,000 | 9,068,946,000 |
Debt securities, trading | 1,052,361,000 | 1,052,361,000 | 1,077,438,000 |
Equity securities | 21,698,000 | 21,698,000 | 28,217,000 |
Mortgage loans | 19,390,000 | 19,390,000 | 8,469,000 |
Derivatives, index options | 6,815,000 | 6,815,000 | 101,622,000 |
Total assets | 8,750,842,000 | 8,750,842,000 | 10,284,692,000 |
Policyholder account balances | 45,796,000 | 45,796,000 | 142,761,000 |
Other liabilities | (333,056,000) | (333,056,000) | (76,856,000) |
Total liabilities | $ (287,260,000) | $ (287,260,000) | $ 65,905,000 |
Percent of total | 100% | 100% | 100% |
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 | 0 |
Equity securities | 18,067,000 | 18,067,000 | 23,795,000 |
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 | 0 |
Equity securities | 18,067,000 | 18,067,000 | 23,795,000 |
Mortgage loans | 0 | 0 | 0 |
Derivatives, index options | 0 | 0 | 0 |
Total assets | 18,067,000 | 18,067,000 | 23,795,000 |
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 | $ 7,240,031,000 | $ 7,240,031,000 | $ 8,741,984,000 |
Debt securities, trading | 952,055,000 | 952,055,000 | 1,002,616,000 |
Equity securities | 3,631,000 | 3,631,000 | 4,422,000 |
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 | 7,240,031,000 | 7,240,031,000 | 8,741,984,000 |
Debt securities, trading | 952,055,000 | 952,055,000 | 1,002,616,000 |
Equity securities | 3,631,000 | 3,631,000 | 4,422,000 |
Mortgage loans | 0 | 0 | 0 |
Derivatives, index options | 0 | 0 | 0 |
Total assets | 8,195,717,000 | 8,195,717,000 | 9,749,022,000 |
Policyholder account balances | 0 | 0 | 0 |
Other liabilities | (331,009,000) | (331,009,000) | (84,725,000) |
Total liabilities | $ (331,009,000) | $ (331,009,000) | $ (84,725,000) |
Percent of total | 93.70% | 93.70% | 94.80% |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | $ 410,547,000 | $ 410,547,000 | $ 326,962,000 |
Debt securities, trading | 100,306,000 | 100,306,000 | 74,822,000 |
Equity securities | 0 | 0 | 0 |
Derivatives, index options | 6,815,000 | 6,815,000 | 101,622,000 |
Total assets | 89,949,000 | 89,949,000 | 223,359,000 |
Total liabilities | 53,964,000 | 53,964,000 | 150,630,000 |
Level 3 | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 410,547,000 | 410,547,000 | 326,962,000 |
Debt securities, trading | 100,306,000 | 100,306,000 | 74,822,000 |
Equity securities | 0 | 0 | 0 |
Mortgage loans | 19,390,000 | 19,390,000 | 8,469,000 |
Derivatives, index options | 6,815,000 | 6,815,000 | 101,622,000 |
Total assets | 537,058,000 | 537,058,000 | 511,875,000 |
Policyholder account balances | 45,796,000 | 45,796,000 | 142,761,000 |
Other liabilities | (2,047,000) | (2,047,000) | 7,869,000 |
Total liabilities | $ 43,749,000 | $ 43,749,000 | $ 150,630,000 |
Percent of total | 6.10% | 6.10% | 5% |
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 | $ 7,586,834,000 | $ 7,586,834,000 | $ 8,955,678,000 |
Debt securities, trading | 1,052,361,000 | 1,052,361,000 | 1,077,438,000 |
Equity securities | 21,698,000 | 21,698,000 | 28,217,000 |
Mortgage loans | 0 | 0 | 0 |
Derivatives, index options | 6,815,000 | 6,815,000 | 101,622,000 |
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 | 0 |
Equity securities | 18,067,000 | 18,067,000 | 23,795,000 |
Mortgage loans | 0 | 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 | 7,240,031,000 | 7,240,031,000 | 8,741,984,000 |
Debt securities, trading | 952,055,000 | 952,055,000 | 1,002,616,000 |
Equity securities | 3,631,000 | 3,631,000 | 4,422,000 |
Mortgage loans | 0 | 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 | 346,803,000 | 346,803,000 | 213,694,000 |
Debt securities, trading | 100,306,000 | 100,306,000 | 74,822,000 |
Equity securities | 0 | 0 | 0 |
Mortgage loans | 0 | 0 | 0 |
Derivatives, index options | 6,815,000 | 6,815,000 | 101,622,000 |
Priced internally | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 63,744,000 | 63,744,000 | 113,268,000 |
Debt securities, trading | 0 | 0 | 0 |
Equity securities | 0 | 0 | 0 |
Mortgage loans | 19,390,000 | 19,390,000 | 8,469,000 |
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 | 0 |
Equity securities | 0 | 0 | 0 |
Mortgage loans | 0 | 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 | 0 |
Equity securities | 0 | 0 | 0 |
Mortgage loans | 0 | 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 | 63,744,000 | 63,744,000 | 113,268,000 |
Debt securities, trading | 0 | 0 | 0 |
Equity securities | 0 | 0 | 0 |
Mortgage loans | 19,390,000 | 19,390,000 | 8,469,000 |
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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | $ 498,535 | $ 117,569 | $ 511,875 | $ 132,821 |
Total realized and unrealized gains (losses): | ||||
Included in net earnings | (16,203) | 2,505 | (100,557) | 70,730 |
Included in other comprehensive income (loss) | (12,642) | 0 | (43,335) | 0 |
Purchases, sales, issuances and settlements, net: | ||||
Purchases | 74,412 | 15,511 | 239,661 | 40,392 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (7,044) | (46,756) | (70,586) | (155,114) |
Transfers into (out of) Level 3 | 0 | 0 | 0 | 0 |
Balance at end of period | 537,058 | 88,829 | 537,058 | 88,829 |
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: | 2,871 | (20,981) | (64,242) | 30,415 |
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | 48,140 | 163,409 | 150,630 | 167,553 |
Total realized and unrealized gains (losses): | ||||
Included in net earnings | (17,840) | 1,755 | (101,523) | 85,757 |
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases, sales, issuances and settlements, net: | ||||
Purchases | 13,386 | 12,011 | 39,642 | 34,194 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 155 | 0 | 184 | 0 |
Settlements | (92) | (46,752) | (46,353) | (157,081) |
Transfers into (out of) Level 3 | 0 | 0 | 1,169 | 0 |
Balance at end of period | 43,749 | 130,423 | 43,749 | 130,423 |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | 1,524 | (20,932) | (63,049) | 34,346 |
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: | 2,871 | (20,981) | (64,242) | 30,415 |
Purchases, sales, issuances and settlements, net: | ||||
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | (3,681) | 0 | (11,384) | 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: | ||||
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | 5,205 | (20,932) | (51,665) | 34,346 |
Embedded Derivative Financial Instruments | ||||
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | (6,534) | 0 | ||
Total realized and unrealized gains (losses): | ||||
Included in net earnings | (3,681) | (11,384) | ||
Included in other comprehensive income (loss) | 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 | 1,169 | ||
Balance at end of period | (10,215) | (10,215) | ||
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | (3,681) | (11,384) | ||
Embedded Derivative Financial Instruments | Net investment income | ||||
Purchases, sales, issuances and settlements, net: | ||||
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | (3,681) | (11,384) | ||
Embedded Derivative Financial Instruments | Benefits and expenses | ||||
Purchases, sales, issuances and settlements, net: | ||||
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | 0 | 0 | ||
Policyholder Account Balances | ||||
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | 45,342 | 155,265 | 142,761 | 161,351 |
Total realized and unrealized gains (losses): | ||||
Included in net earnings | (12,840) | 1,485 | (91,331) | 81,570 |
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases, sales, issuances and settlements, net: | ||||
Purchases | 13,386 | 12,011 | 39,642 | 34,194 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (92) | (46,745) | (45,276) | (155,099) |
Transfers into (out of) Level 3 | 0 | 0 | 0 | 0 |
Balance at end of period | 45,796 | 122,016 | 45,796 | 122,016 |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | 6,524 | (21,202) | (52,858) | 30,159 |
Policyholder Account Balances | Net investment income | ||||
Purchases, sales, issuances and settlements, net: | ||||
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | 0 | 0 | 0 | 0 |
Policyholder Account Balances | Benefits and expenses | ||||
Purchases, sales, issuances and settlements, net: | ||||
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | 6,524 | (21,202) | (52,858) | 30,159 |
Share-based Comp | ||||
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | 9,332 | 8,144 | 7,869 | 6,202 |
Total realized and unrealized gains (losses): | ||||
Included in net earnings | (1,319) | 270 | 1,192 | 4,187 |
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases, sales, issuances and settlements, net: | ||||
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 155 | 0 | 184 | 0 |
Settlements | 0 | (7) | (1,077) | (1,982) |
Transfers into (out of) Level 3 | 0 | 0 | 0 | 0 |
Balance at end of period | 8,168 | 8,407 | 8,168 | 8,407 |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | (1,319) | 270 | 1,193 | 4,187 |
Share-based Comp | Net investment income | ||||
Purchases, sales, issuances and settlements, net: | ||||
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | 0 | 0 | 0 | 0 |
Share-based Comp | Benefits and expenses | ||||
Purchases, sales, issuances and settlements, net: | ||||
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss) | (1,319) | 270 | 1,193 | 4,187 |
Debt Securities, Available-for-Sale | ||||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | 373,957 | 326,962 | ||
Total realized and unrealized gains (losses): | ||||
Included in net earnings | 0 | 0 | ||
Included in other comprehensive income (loss) | (12,642) | (43,335) | ||
Purchases, sales, issuances and settlements, net: | ||||
Purchases | 55,888 | 151,872 | ||
Sales | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | (6,656) | (24,952) | ||
Transfers into (out of) Level 3 | 0 | 0 | ||
Balance at end of period | 410,547 | 410,547 | ||
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 | ||
Debt Securities, Available-for-Sale | 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 | ||
Debt Securities, Available-for-Sale | 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 | ||
Trading Securities | ||||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | 99,769 | 74,822 | ||
Total realized and unrealized gains (losses): | ||||
Included in net earnings | (3,102) | (9,705) | ||
Included in other comprehensive income (loss) | 0 | 0 | ||
Purchases, sales, issuances and settlements, net: | ||||
Purchases | 3,904 | 35,454 | ||
Sales | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | (265) | (265) | ||
Transfers into (out of) Level 3 | 0 | 0 | ||
Balance at end of period | 100,306 | 100,306 | ||
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: | (3,102) | (9,705) | ||
Trading Securities | 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: | (3,102) | (9,705) | ||
Trading Securities | 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 | ||
Derivatives, Index Options | ||||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | 6,071 | 114,840 | 101,622 | 132,821 |
Total realized and unrealized gains (losses): | ||||
Included in net earnings | (12,550) | 2,284 | (89,173) | 70,474 |
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases, sales, issuances and settlements, net: | ||||
Purchases | 13,386 | 12,011 | 39,642 | 34,194 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (92) | (46,745) | (45,276) | (155,099) |
Transfers into (out of) Level 3 | 0 | 0 | 0 | 0 |
Balance at end of period | 6,815 | 82,390 | 6,815 | 82,390 |
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: | 6,524 | (21,202) | (52,858) | 30,159 |
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: | 6,524 | (21,202) | (52,858) | 30,159 |
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 | 18,738 | 2,729 | 8,469 | 0 |
Total realized and unrealized gains (losses): | ||||
Included in net earnings | (551) | 221 | (1,679) | 256 |
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases, sales, issuances and settlements, net: | ||||
Purchases | 1,234 | 3,500 | 12,693 | 6,198 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (31) | (11) | (93) | (15) |
Transfers into (out of) Level 3 | 0 | 0 | 0 | 0 |
Balance at end of period | 19,390 | 6,439 | 19,390 | 6,439 |
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: | (551) | 221 | (1,679) | 256 |
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: | (551) | 221 | (1,679) | 256 |
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 | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Quantitative Information (Details) $ in Thousands | Sep. 30, 2022 USD ($) year | Dec. 31, 2021 USD ($) year |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | $ 7,650,578 | $ 9,068,946 |
Derivatives, index options | 6,815 | 101,622 |
Mortgage loans, at fair value | 19,390 | 8,469 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 410,547 | 326,962 |
Derivatives, index options | 6,815 | 101,622 |
Total assets | 89,949 | 223,359 |
Total liabilities | 53,964 | 150,630 |
Discounted cash flows | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 63,744 | 113,268 |
Mortgage loans, at fair value | 19,390 | 8,469 |
Broker prices | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, index options | 6,815 | 101,622 |
Deterministic cash flow model | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Policyholder account balances | 45,796 | 142,761 |
Black-Scholes model | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Share-based compensation | $ 8,168 | $ 7,869 |
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 | 0.3505 | 0.3505 |
Minimum | Discount rate | Discounted cash flows | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, available-for-sale, measurement input | 0.0276 | 0.0240 |
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 | 0.1214 | 0.1176 |
Minimum | Spread | Discounted cash flows | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans, measurement input | 0.0175 | 0.0100 |
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 | 0.0003 |
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 | 1.2 | 1.9 |
Maximum | Discount rate | Discounted cash flows | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, available-for-sale, measurement input | 0.0614 | 0.0614 |
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 | 0.3475 | 0.1654 |
Maximum | Spread | Discounted cash flows | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans, measurement input | 0.0275 | 0.0250 |
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 | 0.0729 | 0.1449 |
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 | 9.2 | 10 |
Weighted-Average | Discount rate | Discounted cash flows | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, available-for-sale, measurement input | 0.0457 | 0.0406 |
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 | 0.1751 | 0.1455 |
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 | 0.0019 | 0.0265 |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments - Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Debt securities, available-for-sale | $ 7,650,578 | $ 9,068,946 |
Debt securities, trading | 1,052,361 | 1,077,438 |
Derivatives, index options | 6,815 | 101,622 |
Equity securities | 21,698 | 28,217 |
Carrying Values | ||
ASSETS | ||
Debt securities, available-for-sale | 7,650,578 | 9,068,946 |
Debt securities, trading | 1,052,361 | 1,077,438 |
Cash and cash equivalents | 331,139 | 714,624 |
Mortgage loans | 507,242 | 487,304 |
Real estate | 27,851 | 28,606 |
Policy loans | 70,397 | 71,286 |
Other loans | 25,562 | 24,266 |
Derivatives, index options | 6,815 | 101,622 |
Equity securities | 21,698 | 28,217 |
Life interest in Libbie Shearn Moody Trust | 8,254 | 8,254 |
Other investments | 4,513 | 4,537 |
LIABILITIES | ||
Deferred annuity contracts | 6,210,476 | 6,463,314 |
Immediate annuity and supplemental contracts | 402,903 | 422,209 |
Fair Values | ||
ASSETS | ||
Debt securities, available-for-sale | 7,650,578 | 9,068,946 |
Debt securities, trading | 1,052,361 | 1,077,438 |
Cash and cash equivalents | 331,139 | 714,624 |
Mortgage loans | 459,135 | 513,246 |
Real estate | 48,077 | 47,027 |
Policy loans | 86,086 | 110,492 |
Other loans | 26,812 | 25,085 |
Derivatives, index options | 6,815 | 101,622 |
Equity securities | 21,698 | 28,217 |
Life interest in Libbie Shearn Moody Trust | 12,775 | 12,775 |
Other investments | 26,203 | 24,876 |
LIABILITIES | ||
Deferred annuity contracts | 5,103,544 | 4,703,331 |
Immediate annuity and supplemental contracts | 384,498 | 457,787 |
Level 1 | ||
ASSETS | ||
Debt securities, available-for-sale | 0 | 0 |
Debt securities, trading | 0 | 0 |
Cash and cash equivalents | 331,139 | 702,632 |
Mortgage loans | 0 | 0 |
Real estate | 0 | 0 |
Policy loans | 0 | 0 |
Other loans | 0 | 0 |
Derivatives, index options | 0 | 0 |
Equity securities | 18,067 | 23,795 |
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 | 7,240,031 | 8,741,984 |
Debt securities, trading | 952,055 | 1,002,616 |
Cash and cash equivalents | 0 | 11,992 |
Mortgage loans | 0 | 0 |
Real estate | 0 | 0 |
Policy loans | 0 | 0 |
Other loans | 0 | 0 |
Derivatives, index options | 0 | 0 |
Equity securities | 3,631 | 4,422 |
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 | 410,547 | 326,962 |
Debt securities, trading | 100,306 | 74,822 |
Cash and cash equivalents | 0 | 0 |
Mortgage loans | 459,135 | 513,246 |
Real estate | 48,077 | 47,027 |
Policy loans | 86,086 | 110,492 |
Other loans | 26,812 | 25,085 |
Derivatives, index options | 6,815 | 101,622 |
Equity securities | 0 | 0 |
Life interest in Libbie Shearn Moody Trust | 12,775 | 12,775 |
Other investments | 26,203 | 24,876 |
LIABILITIES | ||
Deferred annuity contracts | 5,103,544 | 4,703,331 |
Immediate annuity and supplemental contracts | $ 384,498 | $ 457,787 |
Derivatives - Balance Sheet (De
Derivatives - Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 6,815 | $ 101,622 |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 6,815 | 101,622 |
Liability Derivatives | (295,428) | 58,036 |
Derivatives not designated as hedging instruments | Equity index options | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 6,815 | 101,622 |
Derivatives not designated as hedging instruments | Fixed-index products | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 45,796 | 142,761 |
Derivatives not designated as hedging instruments | Embedded derivative on reinsurance contract | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ (341,224) | $ (84,725) |
Derivatives - Statements of Ear
Derivatives - Statements of Earnings (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) agreement | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) agreement | Sep. 30, 2021 USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Number of coinsurance funds withheld reinsurance agreements | agreement | 2 | 2 | ||
Increase (decrease) in contract interest expense | $ 0 | $ 0 | $ 0 | $ 6,500 |
Derivatives not designated as hedging instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivatives | 70,900 | 4,947 | 258,657 | 65,390 |
Derivatives not designated as hedging instruments | Equity index options | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivatives | (12,550) | 2,284 | (89,173) | 70,474 |
Derivatives not designated as hedging instruments | Fixed-index products | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivatives | 12,840 | (1,484) | 91,331 | (81,570) |
Derivatives not designated as hedging instruments | Embedded derivative on reinsurance contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivatives | $ 70,610 | $ 4,147 | $ 256,499 | $ 76,486 |
Intangibles, Value of Busines_3
Intangibles, Value of Business Acquired, and Goodwill - Gross Carrying Amounts and Accumulated Amortization (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||
Gross Carrying Amount | $ 9,600 | $ 9,600 |
Accumulated Amortization | $ (2,674) | (2,128) |
Trademarks/trade names | ||
Business Acquisition [Line Items] | ||
Weighted-Average Amortization Period | 15 years | |
Gross Carrying Amount | $ 2,800 | 2,800 |
Accumulated Amortization | $ (684) | (545) |
Internally developed software | ||
Business Acquisition [Line Items] | ||
Weighted-Average Amortization Period | 7 years | |
Gross Carrying Amount | $ 3,800 | 3,800 |
Accumulated Amortization | (1,990) | (1,583) |
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 | Sep. 30, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2022 | $ 182 |
2023 | 730 |
2024 | 730 |
2025 | 730 |
2026 | 232 |
Thereafter | $ 1,322 |
Intangibles, Value of Busines_5
Intangibles, Value of Business Acquired, and Goodwill - VOBA (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Movement in Present Value of Future Insurance Profits [Roll Forward] | ||
Balance, beginning of year | $ 154,499 | $ 162,968 |
Amortization, excluding unlocking | (6,310) | (8,469) |
Balance as of end of period | $ 148,189 | $ 154,499 |
Intangibles, Value of Busines_6
Intangibles, Value of Business Acquired, and Goodwill - Schedule of Expected Amortization of VOBA (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2022 | $ 2,117 |
2023 | 8,117 |
2024 | 7,789 |
2025 | 7,587 |
2026 | $ 7,436 |
Intangibles, Value of Busines_7
Intangibles, Value of Business Acquired, and Goodwill - Changes in Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
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 |