Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 333-236385 | |
Entity Registrant Name | American National Group Inc | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 30-1221711 | |
Entity Address, Address Line One | One Moody Plaza | |
Entity Address, City or Town | Galveston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77550-7999 | |
City Area Code | 409 | |
Local Phone Number | 763-4661 | |
Title of 12(b) Security | Common Stock, par value $0.01 | |
Trading Symbol | ANAT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 26,887,200 | |
Entity Central Index Key | 0001801075 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Position (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Fixed maturity, bonds held-to-maturity, at amortized cost, net of allowance for credit losses of $22,414 in 2020 (Fair value $8,713,716 in 2020 and $8,968,690 in 2019) | $ 8,238,405 | $ 8,631,261 |
Fixed maturity, bonds available-for-sale, at fair value (Allowance for credit losses of $4,115 in 2020) (Amortized cost $6,779,116 in 2020 and $6,435,670 in 2019) | 7,170,471 | 6,725,085 |
Equity securities, at fair value (Cost $733,628 in 2020 and $663,058 in 2019) | 1,714,264 | 1,700,960 |
Mortgage loans on real estate, net of allowance for credit losses of $111,480 in 2020 and allowance for loan loss of $19,160 in 2019 | 5,176,511 | 5,097,017 |
Policy loans | 377,826 | 379,657 |
Investment real estate, net of accumulated depreciation of $266,953 in 2020 and $256,757 in 2019 | 544,604 | 551,219 |
Short-term investments | 501,087 | 425,321 |
Other invested assets | 97,390 | 76,569 |
Total investments | 23,820,558 | 23,587,089 |
Cash and cash equivalents | 466,247 | 452,001 |
Investments in unconsolidated affiliates | 782,525 | 705,721 |
Accrued investment income | 211,268 | 200,856 |
Reinsurance recoverables, net of allowance for credit losses of $17,844 in 2020 and $8,220 in 2019 | 432,639 | 411,830 |
Prepaid reinsurance premiums | 38,638 | 44,669 |
Premiums due and other receivables | 393,556 | 341,924 |
Deferred policy acquisition costs | 1,408,142 | 1,423,007 |
Property and equipment, net of accumulated depreciation of $269,977 in 2020 and $257,907 in 2019 | 110,313 | 106,303 |
Prepaid pension | 84,935 | 78,990 |
Other assets | 213,186 | 171,285 |
Separate account assets | 1,032,956 | 1,073,891 |
Total assets | 28,994,963 | 28,597,566 |
LIABILITIES | ||
Life | 3,106,342 | 3,087,578 |
Annuity | 1,568,993 | 1,571,263 |
Health | 50,024 | 49,886 |
Policyholders’ account balances | 12,847,289 | 12,957,989 |
Policy and contract claims | 1,548,523 | 1,489,979 |
Unearned premium reserve | 976,667 | 933,559 |
Other policyholder funds | 362,389 | 361,059 |
Liability for retirement benefits | 63,184 | 67,435 |
Notes payable | 155,871 | 157,997 |
Deferred tax liabilities, net | 382,753 | 394,528 |
Current tax payable | 12,896 | 9,757 |
Federal home loan bank advance | 500,000 | 0 |
Other liabilities | 414,135 | 446,882 |
Separate account liabilities | 1,032,956 | 1,073,891 |
Total liabilities | 23,022,022 | 22,601,803 |
American National stockholders’ equity: | ||
Common stock, $1.00 par value, Authorized 50,000,000 in 2020 and 2019, Issued 30,832,449 in 2020 and 2019 Outstanding 26,887,200 shares in 2020 and 2019 | 30,832 | 30,832 |
Additional paid-in capital | 21,051 | 21,011 |
Accumulated other comprehensive income | 163,911 | 99,518 |
Retained earnings | 5,859,361 | 5,946,857 |
Treasury stock, at cost | (108,469) | (108,469) |
Total American National stockholders’ equity | 5,966,686 | 5,989,749 |
Noncontrolling interest | 6,255 | 6,014 |
Total stockholders' equity | 5,972,941 | 5,995,763 |
Total liabilities and stockholders' equity | $ 28,994,963 | $ 28,597,566 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Financial Position (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Fixed maturity, bonds held-to-maturity, at amortized cost | $ 22,414 | $ 21,664 |
Fair value of bonds held-to-maturity | 8,713,716 | 8,968,690 |
Bonds available-for-sale securities, allowance for credit losses | 4,115 | 0 |
Amortized cost of bonds available-for-sale | 6,779,116 | 6,435,670 |
Cost of equity securities | 733,628 | 663,058 |
Allowance for credit losses | 111,480 | 19,160 |
Accumulated depreciation of investment real estate | 266,953 | 256,757 |
Reinsurance recoverables | 17,844 | 8,220 |
Property and equipment, net of accumulated depreciation | $ 269,977 | $ 257,907 |
Common stock, par value (in usd per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 30,832,449 | 30,832,449 |
Common stock, shares outstanding (in shares) | 26,887,200 | 26,887,200 |
Fixed maturity, bonds held-to-maturity, at amortized cost, net of allowance for credit losses of $22,414 in 2020 (Fair value $8,713,716 in 2020 and $8,968,690 in 2019) | $ 8,238,405 | $ 8,631,261 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Premiums | ||||
Other policy revenues | $ 79,787 | $ 75,146 | $ 159,392 | $ 149,394 |
Net investment income | 287,348 | 257,730 | 402,632 | 550,076 |
Net realized investment gains (losses) | 3,939 | (2,937) | 8,087 | 10 |
Other-than-temporary impairments | 0 | (6,968) | 0 | (6,968) |
Change in investment credit loss | (52,310) | 0 | (96,988) | 0 |
Net gains (losses) on equity securities | 298,825 | 67,060 | (33,750) | 273,437 |
Other income | 10,336 | 10,374 | 21,469 | 21,912 |
Total premiums and other revenues | 1,161,188 | 956,677 | 1,530,873 | 2,080,370 |
Policyholder benefits | ||||
Life | 124,941 | 104,462 | 235,407 | 213,927 |
Annuity | 44,983 | 72,788 | 79,785 | 131,549 |
Claims incurred | ||||
Health | 26,726 | 26,708 | 61,611 | 52,475 |
Property and casualty | 280,561 | 271,608 | 510,270 | 509,752 |
Interest credited to policyholders’ account balances | 146,783 | 123,687 | 142,460 | 264,921 |
Commissions for acquiring and servicing policies | 140,490 | 141,295 | 270,925 | 279,940 |
Other operating expenses | 125,177 | 129,533 | 259,103 | 263,143 |
Change in deferred policy acquisition costs | (4,703) | (17,308) | (6,375) | (23,939) |
Total benefits, losses and expenses | 884,958 | 852,773 | 1,553,186 | 1,691,768 |
Income (loss) before federal income tax and other items | 276,230 | 103,904 | (22,313) | 388,602 |
Less: Provision (benefit) for federal income taxes | ||||
Current | (13,714) | 14,231 | 10,789 | 28,011 |
Deferred | 65,911 | 7,717 | (20,260) | 61,314 |
Total provision (benefit) for federal income taxes | 52,197 | 21,948 | (9,471) | 89,325 |
Income (loss) after federal income tax | 224,033 | 81,956 | (12,842) | 299,277 |
Equity in earnings (losses) of unconsolidated affiliates | (13,622) | 16,790 | 2,085 | 57,250 |
Other components of net periodic pension benefit (costs), net of tax | 357 | (871) | 928 | (1,785) |
Net income (loss) | 210,768 | 97,875 | (9,829) | 354,742 |
Less: Net income (loss) attributable to noncontrolling interest, net of tax | 223 | (965) | 70 | (2,315) |
Net income (loss) attributable to American National | $ 210,545 | $ 98,840 | $ (9,899) | $ 357,057 |
Earnings (loss) per share | ||||
Basic (in usd per share) | $ 7.83 | $ 3.68 | $ (0.37) | $ 13.28 |
Diluted (in usd per share) | $ 7.83 | $ 3.67 | $ (0.37) | $ 13.28 |
Weighted average common shares outstanding (in shares) | 26,878,684 | 26,881,700 | 26,880,183 | 26,883,699 |
Weighted average common shares outstanding and dilutive potential common shares (in shares) | 26,887,129 | 26,888,964 | 26,889,448 | 26,889,936 |
Life | ||||
Premiums | ||||
Revenue | $ 91,670 | $ 86,087 | $ 181,186 | $ 172,555 |
Annuity | ||||
Premiums | ||||
Revenue | 25,944 | 56,222 | 41,453 | 96,129 |
Health | ||||
Premiums | ||||
Revenue | 42,945 | 42,224 | 86,031 | 80,905 |
Property and casualty | ||||
Premiums | ||||
Revenue | $ 372,704 | $ 371,739 | $ 761,361 | $ 742,920 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 210,768 | $ 97,875 | $ (9,829) | $ 354,742 |
Other comprehensive income, net of tax | ||||
Change in net unrealized gains on securities | 173,776 | 98,360 | 61,373 | 183,874 |
Foreign currency transaction and translation adjustments | 339 | 746 | (585) | 590 |
Defined benefit pension plan adjustment | 1,849 | 1,495 | 3,605 | 2,911 |
Total other comprehensive income, net of tax | 175,964 | 100,601 | 64,393 | 187,375 |
Total comprehensive income | 386,732 | 198,476 | 54,564 | 542,117 |
Less: Comprehensive income (loss) attributable to noncontrolling interest | 223 | (965) | 70 | (2,315) |
Total comprehensive income attributable to American National | $ 386,509 | $ 199,441 | $ 54,494 | $ 544,432 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Treasury Stock | Noncontrolling Interest |
Balance at beginning of the period at Dec. 31, 2018 | $ 5,271,515 | $ 0 | $ 30,832 | $ 20,694 | $ (99,738) | $ (785) | $ 5,413,952 | $ 785 | $ (108,492) | $ 14,267 |
Stockholders' Equity [Roll Forward] | ||||||||||
Reissuance of treasury shares | 260 | 237 | 23 | |||||||
Amortization of restricted stock | 20 | 20 | ||||||||
Other comprehensive income (loss) | 86,774 | 86,774 | ||||||||
Net income (loss) attributable to American National | 258,217 | 258,217 | ||||||||
Cash dividends to common stockholders | (22,101) | (22,101) | ||||||||
Contributions | 3 | 3 | ||||||||
Distributions | (419) | (419) | ||||||||
Net income (loss) attributable to noncontrolling interest | (1,350) | (1,350) | ||||||||
Balance at end of the period at Mar. 31, 2019 | $ 5,592,919 | 30,832 | 20,951 | (13,749) | 5,650,853 | (108,469) | 12,501 | |||
Stockholders' Equity [Roll Forward] | ||||||||||
Cash dividends to common stockholders (in usd per share) | $ 0.82 | |||||||||
Balance at beginning of the period at Dec. 31, 2018 | $ 5,271,515 | 0 | 30,832 | 20,694 | (99,738) | $ (785) | 5,413,952 | 785 | (108,492) | 14,267 |
Stockholders' Equity [Roll Forward] | ||||||||||
Other comprehensive income (loss) | 187,375 | |||||||||
Net income (loss) attributable to American National | 357,057 | |||||||||
Balance at end of the period at Jun. 30, 2019 | $ 5,767,582 | 30,832 | 20,971 | 86,852 | 5,727,649 | (108,469) | 9,747 | |||
Stockholders' Equity [Roll Forward] | ||||||||||
Cash dividends to common stockholders (in usd per share) | $ 0.82 | |||||||||
Balance at beginning of the period at Mar. 31, 2019 | $ 5,592,919 | 30,832 | 20,951 | (13,749) | 5,650,853 | (108,469) | 12,501 | |||
Stockholders' Equity [Roll Forward] | ||||||||||
Amortization of restricted stock | 20 | 20 | ||||||||
Other comprehensive income (loss) | 100,601 | 100,601 | ||||||||
Net income (loss) attributable to American National | 98,840 | 98,840 | ||||||||
Cash dividends to common stockholders | (22,044) | (22,044) | ||||||||
Contributions | 168 | 168 | ||||||||
Distributions | (1,957) | (1,957) | ||||||||
Net income (loss) attributable to noncontrolling interest | (965) | (965) | ||||||||
Balance at end of the period at Jun. 30, 2019 | $ 5,767,582 | 30,832 | 20,971 | 86,852 | 5,727,649 | (108,469) | 9,747 | |||
Stockholders' Equity [Roll Forward] | ||||||||||
Cash dividends to common stockholders (in usd per share) | $ 0.82 | |||||||||
Balance at beginning of the period at Dec. 31, 2019 | $ 5,995,763 | (34,702) | 30,832 | 21,011 | 99,518 | 5,946,857 | (34,702) | (108,469) | 6,014 | |
Stockholders' Equity [Roll Forward] | ||||||||||
Amortization of restricted stock | 20 | 20 | ||||||||
Other comprehensive income (loss) | (111,571) | (111,571) | ||||||||
Net income (loss) attributable to American National | (220,444) | (220,444) | ||||||||
Cash dividends to common stockholders | (22,047) | (22,047) | ||||||||
Contributions | 546 | 546 | ||||||||
Distributions | (323) | (323) | ||||||||
Net income (loss) attributable to noncontrolling interest | (153) | (153) | ||||||||
Balance at end of the period at Mar. 31, 2020 | $ 5,607,089 | 1,199 | 30,832 | 21,031 | (12,053) | 5,669,664 | 1,199 | (108,469) | 6,084 | |
Stockholders' Equity [Roll Forward] | ||||||||||
Cash dividends to common stockholders (in usd per share) | $ 0.82 | |||||||||
Balance at beginning of the period at Dec. 31, 2019 | $ 5,995,763 | (34,702) | 30,832 | 21,011 | 99,518 | 5,946,857 | (34,702) | (108,469) | 6,014 | |
Stockholders' Equity [Roll Forward] | ||||||||||
Other comprehensive income (loss) | 64,393 | |||||||||
Net income (loss) attributable to American National | (9,899) | |||||||||
Balance at end of the period at Jun. 30, 2020 | $ 5,972,941 | 30,832 | 21,051 | 163,911 | 5,859,361 | (108,469) | 6,255 | |||
Stockholders' Equity [Roll Forward] | ||||||||||
Cash dividends to common stockholders (in usd per share) | $ 0.82 | |||||||||
Balance at beginning of the period at Mar. 31, 2020 | $ 5,607,089 | $ 1,199 | 30,832 | 21,031 | (12,053) | 5,669,664 | $ 1,199 | (108,469) | 6,084 | |
Stockholders' Equity [Roll Forward] | ||||||||||
Amortization of restricted stock | 20 | 20 | ||||||||
Other comprehensive income (loss) | 175,964 | 175,964 | ||||||||
Net income (loss) attributable to American National | 210,545 | 210,545 | ||||||||
Cash dividends to common stockholders | (22,047) | (22,047) | ||||||||
Contributions | 310 | 310 | ||||||||
Distributions | (362) | (362) | ||||||||
Net income (loss) attributable to noncontrolling interest | 223 | 223 | ||||||||
Balance at end of the period at Jun. 30, 2020 | $ 5,972,941 | $ 30,832 | $ 21,051 | $ 163,911 | $ 5,859,361 | $ (108,469) | $ 6,255 | |||
Stockholders' Equity [Roll Forward] | ||||||||||
Cash dividends to common stockholders (in usd per share) | $ 0.82 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Changes in Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Cash dividends to common stockholders (in usd per share) | $ 0.82 | $ 0.82 | $ 0.82 | $ 0.82 | $ 0.82 | $ 0.82 |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ (9,829) | $ 354,742 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Net realized investment gains | (8,087) | (10) |
Other-than-temporary impairments | 0 | 6,968 |
Change in investment credit loss | 96,988 | 0 |
Accretion of premiums, discounts and loan origination fees | 3,851 | (2,547) |
Net capitalized interest on policy loans and mortgage loans | (14,125) | (18,397) |
Depreciation | 26,241 | 30,621 |
Interest credited to policyholders’ account balances | 142,460 | 264,921 |
Charges to policyholders’ account balances | (159,392) | (149,394) |
Deferred federal income tax expense (benefit) | (20,260) | 61,314 |
Equity in earnings of unconsolidated affiliates | (2,085) | (57,250) |
Distributions from unconsolidated affiliates | 31,413 | 64,224 |
Changes in: | ||
Policyholder liabilities | 114,562 | 120,652 |
Deferred policy acquisition costs | (6,375) | (23,939) |
Reinsurance recoverables | (20,809) | (9,677) |
Premiums due and other receivables | (51,632) | (18,313) |
Prepaid reinsurance premiums | 6,031 | 2,627 |
Accrued investment income | (10,412) | (8,945) |
Current tax payable | 3,485 | 10,223 |
Liability for retirement benefits | (5,632) | (1,969) |
Fair value of option securities | 40,938 | (89,608) |
Fair value of equity securities | 33,750 | (273,437) |
Other, net | (74,733) | (31,034) |
Net cash provided by operating activities | 116,348 | 231,772 |
Proceeds from sale/maturity/prepayment of: | ||
Held-to-maturity securities | 689,573 | 299,968 |
Available-for-sale securities | 501,014 | 164,925 |
Equity securities | 31,750 | 149,397 |
Investment real estate | 2,395 | 6,713 |
Mortgage loans | 164,654 | 405,768 |
Policy loans | 25,956 | 22,873 |
Other invested assets | 55,008 | 41,262 |
Disposals of property and equipment | 16 | 69 |
Distributions from unconsolidated affiliates | 26,911 | 37,309 |
Payment for the purchase/origination of: | ||
Held-to-maturity securities | (336,138) | (647,367) |
Available-for-sale securities | (840,481) | (355,920) |
Equity securities | (78,634) | (18,280) |
Investment real estate | (7,040) | (19,520) |
Mortgage loans | (326,726) | (283,312) |
Policy loans | (12,813) | (12,033) |
Other invested assets | (46,373) | (38,768) |
Additions to property and equipment | (16,151) | (9,494) |
Contributions to unconsolidated affiliates | (143,838) | (111,620) |
Change in short-term investments | (75,766) | (390,423) |
Change in collateral held for derivatives | (70,424) | 83,169 |
Other, net | (4,322) | 1,397 |
Net cash used in investing activities | (461,429) | (673,887) |
FINANCING ACTIVITIES | ||
Policyholders’ account deposits | 562,041 | 1,288,581 |
Policyholders’ account withdrawals | (655,809) | (776,888) |
Proceeds from Federal Home Loan Bank borrowings | 500,000 | 0 |
Change in notes payable | (2,126) | 21,614 |
Dividends to stockholders | (44,094) | (44,145) |
Payments to noncontrolling interest | (685) | (2,376) |
Net cash provided by financing activities | 359,327 | 486,786 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 14,246 | 44,671 |
Cash and cash equivalents at beginning of the period | 452,001 | 268,164 |
Cash and cash equivalents at end of the period | 466,247 | 312,835 |
Supplemental Cash Flow Information | ||
Interest paid | 132 | 0 |
Income taxes paid, net | $ 3,800 | $ 40,440 |
Nature of Operations
Nature of Operations | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of OperationsOn July 1, 2020, American National Insurance Company, a Texas insurance company (“ANICO”), completed its previously announced holding company reorganization, which is described further in Note 18, Subsequent Events. As a result of such reorganization, ANICO became a wholly owned subsidiary of American National Group, Inc., a Delaware corporation (“ANAT”), and ANAT replaced ANICO as the publicly held company. Consequently, all filings with the Securities and Exchange Commission from July 2, 2020 forward will be filed by ANAT under CIK No. 0001801075. For purposes of filing this Form 10-Q for the three and six months ended June 30, 2020, the accompanying unaudited condensed consolidated financial statements and notes thereto have been titled “American National Group, Inc.” to reflect the current name of the public registrant, with the parenthetical notation “formerly American National Insurance Company” to reflect the reporting entity for the periods covered therein. ANAT, through its consolidated subsidiaries (collectively “American National” or the "Company”) offer a broad portfolio of insurance products, including individual and group life insurance, annuities, health insurance, and property and casualty insurance. Business is conducted in all 50 states, the District of Columbia and Puerto Rico. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Practices | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Practices | Summary of Significant Accounting Policies and Practices The condensed consolidated financial statements and notes thereto have been prepared in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) and are reported in U.S. currency. American National consolidates entities that are wholly-owned and those in which American National owns less than 100% but controls the voting rights, as well as variable interest entities in which American National is the primary beneficiary. Intercompany balances and transactions with consolidated entities have been eliminated. Investments in unconsolidated affiliates are accounted for using the equity method of accounting. Certain amounts in prior years have been reclassified to conform to current year presentation. The interim condensed consolidated financial statements and notes herein are unaudited and reflect all adjustments which management considers necessary for the fair presentation of the interim condensed consolidated statements of financial position, operations, comprehensive income, changes in equity, and cash flows. The interim condensed consolidated financial statements and notes should be read in conjunction with the annual consolidated financial statements and notes thereto included in American National’s Annual Report on Form 10-K as of and for the year ended December 31, 2019. The condensed consolidated results of operations for the interim periods should not be considered indicative of results to be expected for the full year. The preparation of the condensed consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the reported consolidated financial statement balances. Actual results could differ from those estimates. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Issued Accounting Pronouncements | Adoption of New Accounting Standards Standard Description Effective Date and Method of Adoption Impact on Financial Statements ASU 2016-13 The new standard significantly changes how entities measure credit losses for most financial assets, reinsurance recoverables and certain other instruments that are not measured at fair value through net income. The guidance replaces the current “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. The measurement of credit losses for available-for-sale debt securities measured at fair value is not affected except that credit losses recognized are limited to the amount by which the fair value is below amortized cost, and the credit loss is recognized through a valuation allowance. Previously, the credit loss adjustments for available-for-sale debt securities were recognized through a direct write down of the investment under the other-than-temporary impairment model. The standard also requires additional disclosures. The Company adopted this standard on its required effective date of January 1, 2020 using a modified retrospective transition. Adoption of this guidance resulted in an allowance for credit losses primarily on the commercial mortgage loans and related off-balance sheet unfunded loan commitments, held-to-maturity bonds and reinsurance recoverables. The Company recorded a cumulative effect adjustment to retained earnings of $33.5 million, net of tax, which reduced stockholders' equity. The impact is attributable to a $42.4 million allowance for credit losses on the aforementioned financial assets. See table below for additional detail. As of January 1, 2020, changes related to the adoption of ASU 2016-13 Pre-ASC 326 Adoption Adjustment to Adopt ASC 326 Balance as of January 1, 2020 Assets: Allowance for credit losses Fixed maturity, bonds held-to-maturity, at amortized cost $ — $ (21,664) $ (21,664) Mortgage loans on real estate (19,160) (11,224) (30,384) Reinsurance recoverables (8,220) (7,920) (16,140) Liabilities: Allowance for credit losses Other policyholder funds — 1,526 1,526 Other liabilities — (3,126) (3,126) Total $ (27,380) $ (42,408) $ (69,788) Future Adoption of New Accounting Standards — The FASB issued the following accounting guidance relevant to American National: Standard Description Effective Date and Method of Adoption Impact on Financial Statements ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts The guidance will improve the timeliness of recognizing changes in the liability for future policy benefits for traditional and limited payment long-duration contracts and will modify the rate used to discount future cash flows. The guidance will also simplify the accounting for certain market-based options or guarantees associated with deposit (or account balance) contracts (market risk benefits), simplify the amortization of deferred acquisition costs and add significant qualitative and quantitative disclosures. This standard will become effective for the Company for all annual and interim periods beginning January 1, 2022. The FASB met on June 10, 2020 and proposed delaying the effective date of ASU 2018-12 until January 1, 2023. This proposal is pending final adoption. The guidance allows for one of two adoption methods, a modified retrospective transition or a full retrospective transition except for the changes to accounting for market risk benefits which will require a retrospective transition. We are currently evaluating the impact of the standard to the Company. Based on the nature of the standard, we expect the impact to be material to our Condensed Consolidated Financial Statements and Notes to the Condensed Consolidated Financial Statements ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans The new standard modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The guidance removes certain defined benefit pension or other postretirement plan disclosures that are no longer cost beneficial, clarifies the specific requirements for each disclosure and adds disclosure requirements. This standard will become effective for the annual period ending December 31, 2020 using a retrospective transition. The Company does not expect the adoption of this standard to have a material impact on our Condensed Consolidated Financial Statements or Notes to the Condensed Consolidated Financial Statements. ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes The amendments simplify the accounting for income taxes by removing certain exceptions in the existing guidance including those related to intra-period tax allocation when there is a loss from continuing operations and income or a gain from other items. The amendments require that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax as well as other minor changes. This standard will become effective for the Company for all annual and interim periods beginning January 1, 2021. The new guidance specifies which amendments should be applied prospectively, retrospective to all periods presented or on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. The Company does not expect the adoption of this standard to have a material impact on our Condensed Consolidated Financial Statements or Notes to the Consolidated Financial Statements. ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in this update provide optional expedients and exceptions for applying Generally Accepted Accounting Principles ("GAAP") to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The guidance only applies to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this update are effective for all entities as of March 12, 2020 and will sunset through December 31, 2022, at which time the application of exceptions and optional expedients will no longer be permitted. We are evaluating our current exposure to LIBOR and the impact this standard would have on the Consolidated Financial Statements. We expect to have our evaluation of exposure completed by December 31, 2020. |
Investment in Securities
Investment in Securities | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment in Securities | The cost or amortized cost and fair value of investments in securities are shown below (in thousands): June 30, 2020 Cost or Gross Gross Allowance for Credit Losses Fair Value Fixed maturity, bonds held-to-maturity U.S. states and political subdivisions $ 127,591 $ 4,208 $ — $ — $ 131,799 Foreign governments 3,880 481 — — 4,361 Corporate debt securities 7,754,873 498,531 (33,883) (19,882) 8,199,639 Residential mortgage-backed securities 164,903 6,604 (1,181) — 170,326 Collateralized debt securities 209,572 1,236 (685) (2,532) 207,591 Total bonds held-to-maturity 8,260,819 511,060 (35,749) (22,414) 8,713,716 Fixed maturity, bonds available-for-sale U.S. treasury and government 29,132 676 — — 29,808 U.S. states and political subdivisions 1,025,297 67,074 — — 1,092,371 Foreign governments 14,988 1,782 — — 16,770 Corporate debt securities 5,653,025 362,094 (38,038) (3,824) 5,973,257 Residential mortgage-backed securities 29,460 1,231 (23) (211) 30,457 Collateralized debt securities 27,214 751 (77) (80) 27,808 Total bonds available-for-sale 6,779,116 433,608 (38,138) (4,115) 7,170,471 Total investments in fixed maturity $ 15,039,935 $ 944,668 $ (73,887) $ (26,529) $ 15,884,187 December 31, 2019 Cost or Gross Gross Allowance for Credit Losses Fair Value Fixed maturity, bonds held-to-maturity U.S. states and political subdivisions $ 165,109 $ 5,005 $ — $ — $ 170,114 Foreign governments 3,907 442 — — 4,349 Corporate debt securities 8,099,098 332,410 (6,539) — 8,424,969 Residential mortgage-backed securities 237,516 6,460 (1,148) — 242,828 Collateralized debt securities 125,631 1,146 (347) — 126,430 Total bonds held-to-maturity 8,631,261 345,463 (8,034) — 8,968,690 Fixed maturity, bonds available-for-sale U.S. treasury and government 29,505 441 (5) — 29,941 U.S. states and political subdivisions 1,030,309 47,865 (9) — 1,078,165 Foreign governments 5,000 1,287 — — 6,287 Corporate debt securities 5,338,007 251,408 (12,795) — 5,576,620 Residential mortgage-backed securities 23,405 739 (201) — 23,943 Collateralized debt securities 9,444 686 (1) — 10,129 Total bonds available-for-sale 6,435,670 302,426 (13,011) — 6,725,085 Total investments in fixed maturity $ 15,066,931 $ 647,889 $ (21,045) $ — $ 15,693,775 The amortized cost and fair value, by contractual maturity, of fixed maturity securities are shown below (in thousands): June 30, 2020 Bonds Held-to-Maturity Bonds Available-for-Sale Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 919,447 $ 932,495 $ 486,900 $ 493,348 Due after one year through five years 3,055,241 3,222,507 3,214,261 3,369,646 Due after five years through ten years 3,253,320 3,486,960 2,275,574 2,447,411 Due after ten years 1,032,811 1,071,754 802,381 860,066 Total $ 8,260,819 $ 8,713,716 $ 6,779,116 $ 7,170,471 Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Residential and commercial mortgage-backed securities, which are not due at a single maturity, have been presented based on the year of final contractual maturity. Proceeds from sales of bonds available-for-sale, with the related gross realized gains and losses, are shown below (in thousands): Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Proceeds from sales of fixed maturity, bonds available-for-sale $ 85,000 $ — $ 131,513 $ 285 Gross realized gains — — 412 — Gross realized losses — — (4,072) (23) Gains and losses are determined using specific identification of the securities sold. During the six months ended June 30, 2019, bonds below investment grade with a carrying value of $157,939,000 were transferred from held-to-maturity to available-for-sale after a deterioration in the issuers’ creditworthiness. There was no transfer of bonds from held-to-maturity to available-for-sale during the six months ended June 30, 2020. No realized losses were recorded at June 30, 2020 and 2019. The components of the change in net unrealized gains (losses) on debt securities are shown below (in thousands): Six months ended June 30, 2020 2019 Bonds available-for-sale: change in unrealized gains $ 106,055 $ 279,618 Adjustments for Deferred policy acquisition costs (21,240) (34,853) Participating policyholders’ interest (5,052) (12,811) Deferred federal income tax expense (18,390) (48,080) Change in net unrealized gains (losses) on debt securities, net of tax $ 61,373 $ 183,874 The components of the change in net gains (losses) on equity securities are shown below (in thousands): Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Unrealized gains (losses) on equity securities $ 298,793 $ 51,933 $ (34,808) $ 254,955 Net gains on equity securities sold 32 15,127 1,058 18,482 Net gains (losses) on equity securities $ 298,825 $ 67,060 $ (33,750) $ 273,437 The gross unrealized losses and fair value of bonds available-for-sale, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position due to noncredit related factors at June 30, 2020 are shown below (in thousands, except number of issues): June 30, 2020 Less than 12 months 12 months or more Total Number of issues Gross Fair Number of issues Gross Fair Number of issues Gross Fair Fixed maturity, bonds available-for-sale Corporate debt securities 75 $ (25,259) $ 479,455 11 $ (12,779) $ 53,086 84 $ (38,038) $ 532,541 Residential mortgage-backed securities — — — 3 (23) 11,169 3 (23) 11,169 Collateralized debt securities 2 (74) 9,411 1 (3) 156 3 (77) 9,567 Total 77 $ (25,333) $ 488,866 15 $ (12,805) $ 64,411 90 $ (38,138) $ 553,277 December 31, 2019 Less than 12 months 12 months or more Total Number of issues Gross Fair Number of issues Gross Fair Number of issues Gross Fair Fixed maturity, bonds available-for-sale U.S. treasury and government — $ — $ — 5 $ (5) $ 8,299 5 $ (5) $ 8,299 U.S. states and political subdivisions 2 (9) 1,733 — — — 2 (9) 1,733 Corporate debt securities 22 (5,257) 94,942 25 (7,538) 132,626 47 (12,795) 227,568 Residential mortgage-backed securities 1 (9) 10,169 3 (192) 722 4 (201) 10,891 Collateralized debt securities 1 (1) 159 — — — 1 (1) 159 Total 26 $ (5,276) $ 107,003 33 $ (7,735) $ 141,647 59 $ (13,011) $ 248,650 Unrealized losses on bonds available-for-sale where an allowance for credit loss was not recorded are due to noncredit related factors caused by market liquidity events related to COVID-19 and the related economic downturn. A number of assumptions and estimates are inherent in evaluating whether an allowance for credit loss is necessary, which include the financial condition, near term and long-term prospects of the issue or issuer, including relevant industry conditions and trends and implications of rating agency actions and offering prices. Equity securities by market sector distribution are shown below, based on fair value: June 30, 2020 December 31, 2019 Consumer goods 19.3 % 18.9 % Energy and utilities 5.7 8.0 Finance 21.4 18.0 Healthcare 15.7 13.0 Industrials 5.7 7.6 Information technology 27.7 25.0 Other 4.5 9.5 Total 100.0 % 100.0 % Allowance for Credit Losses Held-to-Maturity Securities— Management measures expected credit losses on bonds held-to-maturity on a collective (pool) basis by major security type: corporate bonds, structured products, municipals, specialty products and treasuries. Accrued interest receivable on held-to maturity debt securities are excluded from the estimate of credit losses. The estimate of expected credit losses considers historical credit loss information that is adjusted for current market conditions and reasonable and supportable economic forecasts based upon a third-party valuation model. Available-for-Sale Securities— For bonds available-for-sale in an unrealized loss position, the Company first assesses whether it intends to sell the security or will be required to sell the security before recovery of its amortized cost basis. If either of these criteria is met, the security’s amortized cost basis is written down to fair value through income. For bonds available-for-sale that do not meet either indicated criteria, the Company evaluates whether the decline in fair value has resulted from credit events or market factors. In making this assessment, management first calculates the extent to which value is less than amortized cost, and then may consider any changes to the rating of the security by a rating agency, and any specific conditions related to the security. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded, limited to the amount fair value is less than amortized cost. Any remaining unrealized loss is recognized in other comprehensive income. When the discounted cash flow method is used to determine the allowance for credit losses, management's estimates incorporate expected prepayments, if any. Model inputs are considered reasonable and supportable for three years. A mean reversion is applied in years four and five. Credit loss allowance is not measured on accrued interest receivable because the balance is written off to net investment income in a timely manner, within 90 days. Changes in the allowance for credit losses are recognized through the condensed consolidated statement of operations as changes in expected credit loss. No accrued interest receivables were written off as of June 30, 2020. The rollforward of the allowance for credit losses for bonds held-to-maturity is shown below (in thousands): Foreign governments Corporate debt securities Collateralized debt securities Residential mortgage backed securities Total Allowance for credit losses Cumulative adjustment at January 1, 2020 $ 4 $ (18,563) $ (2,968) $ (137) $ (21,664) Provision 1 162 (18) 134 279 Ending balance at March 31, 2020 5 (18,401) (2,986) (3) (21,385) Provision (5) (1,481) 454 3 (1,029) Ending balance at June 30, 2020 $ — $ (19,882) $ (2,532) $ — $ (22,414) The rollforward of the allowance for credit losses for available-for-sale debt securities is shown below (in thousands): Corporate debt securities Collateralized debt securities Residential mortgage backed securities Total Allowance for credit losses Beginning balance at January 1, 2020 $ — $ — $ — $ — Provision (12,499) (236) (130) (12,865) Ending balance at March 31, 2020 (12,499) (236) (130) (12,865) Provision 8,675 156 (81) 8,750 Ending balance at June 30, 2020 $ (3,824) $ (80) $ (211) $ (4,115) The change in allowance for the six months ended June 30, 2020 was impacted by economic changes due to the COVID-19 pandemic on the bond market. Bond prices improved during the second quarter as the government passed an economic stimulus package and restored some confidence to investors. Also, as businesses began to reopen, people started returning to work, which further assisted in bringing stability to bond markets. Credit Quality Indicators The Company monitors the credit quality of bonds held-to-maturity through the use of credit ratings, which are updated on a monthly basis. The two traditional metrics for assessing interest rate risks are interest-coverage ratios and capitalization ratios which can also be used in the assessment of credit risk. These risks are fairly mitigated through the diversification of all bond investments. Categories of diversification include credit ratings, geographic locations, maturities, and market sector. The credit quality indicators for the amortized cost of bonds held-to-maturity as of June 30, 2020 are shown below (in thousands): Amortized cost of bonds held-to-maturity by credit rating Fixed maturity, bonds held-to-maturity AAA AA A BBB BB and below Total U.S. state and political subdivisions $ 46,407 $ 64,577 $ 11,340 $ — $ 5,267 $ 127,591 Foreign governments — 2,842 1,038 — — 3,880 Corporate debt securities 1,947 283,746 3,272,723 4,015,284 181,173 7,754,873 Residential mortgage backed securities 73,981 — — — 90,922 164,903 Collateralized debt securities — — 166,682 15,743 27,147 209,572 Total $ 122,335 $ 351,165 $ 3,451,783 $ 4,031,027 $ 304,509 $ 8,260,819 At June 30, 2020, a bond classified as held-to-maturity with an amortized cost of $38,000 was past due on making an interest payment for over 90 days and is in nonaccrual status. |
Mortgage Loans
Mortgage Loans | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Mortgage Loans | Generally, commercial mortgage loans are secured by first liens on income-producing real estate. American National attempts to maintain a diversified portfolio by considering the location of the underlying collateral. The geographic categories come from the US Census Bureau's "Census Regions and Divisions of the United States." The distribution based on carrying amount of mortgage loans by location is as follows (in thousands, except percentages): June 30, 2020 December 31, 2019 East North Central $ 711,602 13.7 % $ 667,150 13.1 % East South Central 145,675 2.8 144,887 2.8 Mountain 1,227,945 23.7 1,200,434 23.6 Pacific 896,268 17.3 852,574 16.7 South Atlantic 618,061 11.9 621,875 12.2 West South Central 1,252,397 24.2 1,272,522 25.0 Other 324,563 6.4 337,575 6.6 Total $ 5,176,511 100.0 % $ 5,097,017 100.0 % During the six months ended June 30, 2020, American National foreclosed on one loan with a recorded investment of $4,511,000, and three loans with a recorded investment of $18,502,000 were in the process of foreclosure at June 30, 2020. For the year ended December 31, 2019, American National foreclosed on two loans with a total recorded investment of $16,008,000, and there were two loans with a total recorded investment of $13,345,000 in the process of foreclosure. American National did not sell any loans during the six months ended June 30, 2020 or the year ended December 31, 2019. The age analysis of past due loans is shown below (in thousands, except percentages): 30-59 Days Past Due 60-89 Days Past Due More Than 90 Days Past Due Total Current Total June 30, 2020 Amount Percent Apartment $ 40,095 $ — $ — $ 40,095 $ 408,752 $ 448,847 8.5 % Hotel 212,708 137,195 54,855 404,758 497,488 902,246 17.1 Industrial — — 9,259 9,259 718,521 727,780 13.7 Office 58,352 12,759 17,392 88,503 1,478,233 1,566,736 29.6 Retail 82,051 120,645 4,999 207,695 657,861 865,556 16.4 Other 10,489 214,865 29,257 254,611 522,215 776,826 14.7 Total $ 403,695 $ 485,464 $ 115,762 $ 1,004,921 $ 4,283,070 $ 5,287,991 100.0 % Allowance for credit losses (111,480) Total, net of allowance $ 5,176,511 December 31, 2019 Apartment $ — $ — $ — $ — $ 416,865 $ 416,865 8.1 % Hotel — — — — 901,044 901,044 17.6 Industrial — 13,076 4,091 17,167 589,721 606,888 11.9 Office 22,870 — — 22,870 1,587,591 1,610,461 31.5 Retail — — 4,122 4,122 843,467 847,589 16.6 Other 11,759 — — 11,759 721,571 733,330 14.3 Total $ 34,629 $ 13,076 $ 8,213 $ 55,918 $ 5,060,259 $ 5,116,177 100.0 % Allowance for loan losses (19,160) Total, net of allowance $ 5,097,017 As a result of the economic impact associated with COVID-19, as of June 30, 2020, 77 loans with a total balance of $1.2 billion primarily related to hotels, retail and parking operations (which are included in the other category in the table above) were in the course of modification. The terms of the modifications of these loans include forbearance of principal and interest payments for a period of up to six months, extensions of maturity dates, and/or provision for interest only payments. As of July 29, 2020, 49 of the 77 loans in the course of modification on June 30, 2020 with a total balance of $774 million have been modified leaving 28 loans with a total balance of $434 million in the course of modification. The Company expects the modification of these loans to be finalized shortly. The loans in the course of modification are included in the aging table based upon their original terms as follows (in thousands): 30-59 Days Past Due 60-89 Days Past Due More Than 90 Days Past Due Total Current Total Amount June 30, 2020 $ 343,000 $ 461,000 $ 99,000 $ 903,000 $ 305,000 $ 1,208,000 There were no unamortized purchase discounts as of June 30, 2020 and December 31, 2019. Total mortgage loans were net of unamortized origination fees of $28,860,000 and $29,294,000 at June 30, 2020 and December 31, 2019, respectively. No unearned income is included in these amounts. Troubled Debt Restructurings American National has granted concessions which are classified as troubled debt restructurings to certain mortgage loan borrowers. Concessions are generally one of, or a combination of, a delay in payment of principal or interest, a reduction of the contractual interest rate or an extension of the maturity date. American National considers the amount, timing and extent of concessions in determining credit loss allowances for loan losses recorded in connection with a troubled debt restructuring. The carrying value after specific allowance, before and after modification in a troubled debt restructuring, may not change significantly, or may increase if the expected recovery is higher than the pre-modification recovery assessment. Troubled debt restructuring mortgage loan information is as follows (in thousands, except number of loans): Six months ended June 30, 2020 2019 Number of Loans Recorded Investment Pre- Modification Recorded Investment Post Modification Number of Loans Recorded Investment Pre- Modification Recorded Investment Post Modification Office — $ — $ — 1 $ 9,331 $ 9,331 Retail 3 22,161 22,161 2 40,249 40,249 Industrial — — — 4 20,595 20,595 Hotel 11 341,556 341,556 — — — Other 2 5,776 5,776 — — — Total 16 $ 369,493 $ 369,493 7 $ 70,175 $ 70,175 Allowance for Credit Losses Mortgage loans on real estate are stated at unpaid principal balance, adjusted for any unamortized discount, deferred expenses and allowances. The allowance for current expected losses per ASC 326, at the effective date will be based upon the current expected credit loss model, refer to Note 3, "Recently Issued Accounting Pronouncements." The model considers past loss experience, current economic conditions, and reasonable and supportable forecasts of future conditions. Reversion for the allowance calculation is implicit in the models used to determine the allowance. The methodology uses a discounted cash flow approach based on expected cash flows. The rollforward of the allowance for credit losses for mortgage loans is shown below (in thousands): Commercial Mortgage Loans Beginning balance at January 1, 2020 $ (19,160) Cumulative adjustment at January 1, 2020 (11,216) Provision (29,069) Balance at March 31, 2020 $ (59,445) Provision (52,035) Balance at June 30, 2020 $ (111,480) The change in allowance for the six months ended June 30, 2020 was driven by the economic disruption and uncertainty caused by COVID-19, we have been working with many of our mortgage loan borrowers, primarily those related to hotels, retail and parking operations, on loan modifications as noted above. The asset and allowance balances for credit losses for mortgage loans by property-type are shown below (in thousands): June 30, 2020 Asset Balance Allowance Apartment $ 445,579 $ (3,268) Hotel 857,142 (45,104) Industrial 724,195 (3,586) Office 1,543,211 (23,525) Retail 852,869 (12,686) Other 753,515 (23,311) Total $ 5,176,511 $ (111,480) Credit Quality Indicators Mortgage loans are segregated by property-type and quantitative and qualitative allowance factors are applied. Qualitative factors are developed quarterly based on the pooling of assets with similar risk characteristics and historical loss experience adjusted for the expected trend in the current market environment. Credit losses are pooled by collateral type as it represents the most similar and reliable risk characteristics in our portfolio. The amortized cost of mortgage loans by year of origination by property-type are shown below (in thousands): Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Total Apartment $ — $ 108,698 $ 43,457 $ 190,907 $ 68,859 $ 37,469 $ 449,390 Hotel — 57,560 204,054 219,527 148,026 273,845 903,012 Industrial 123,102 174,401 130,090 52,007 124,923 123,257 727,780 Office — 56,068 193,000 347,383 314,239 656,046 1,566,736 Retail 42,784 41,190 103,201 80,943 223,764 373,674 865,556 Other 31,206 86,718 142,940 89,367 238,411 186,875 775,517 Total $ 197,092 $ 524,635 $ 816,742 $ 980,134 $ 1,118,222 $ 1,651,166 $ 5,287,991 Allowance for loan losses (111,480) Total, net of allowance $ 5,176,511 Generally, mortgage loans are secured by first liens on income-producing real estate with a loan-to-value ratio of up to 75%. It is the Company's policy to not accrue interest on loans that are 90 days delinquent and where amounts are determined to be uncollectible. At June 30, 2020, commercial loans of $115,762,000 were past due over 90 days and are in nonaccrual status. Off-Balance Sheet Credit Exposures The Company has off-balance sheet credit exposures related to non-cancellable unfunded commitment amounts on commercial mortgage loans. We estimate the allowance for these exposures by applying the allowance rate we computed for each property type to the related outstanding commitment amounts. As of June 30, 2020, we have included a $13,032,000 liability in other liabilities on the condensed consolidated statements of financial position based on unfunded loan commitments of $578,979,000. |
Real Estate and Other Investmen
Real Estate and Other Investments | 6 Months Ended |
Jun. 30, 2020 | |
Real Estate [Abstract] | |
Real Estate and Other Investments | Investment real estate by property-type and geographic distribution are as follows (in thousands, except percentages): June 30, 2020 December 31, 2019 Industrial $ 68,315 12.5 % $ 68,809 12.5 % Office 219,108 40.2 219,490 39.8 Retail 213,317 39.2 215,800 39.1 Other 43,864 8.1 47,120 8.6 Total $ 544,604 100.0 % $ 551,219 100.0 % June 30, 2020 December 31, 2019 East North Central $ 32,572 6.0 % $ 32,539 5.9 % East South Central 33,466 6.2 34,248 6.2 Mountain 66,942 12.3 68,498 12.4 Pacific 39,425 7.2 40,462 7.3 South Atlantic 82,682 15.2 83,552 15.2 West South Central 272,551 50.0 278,833 50.6 Other 16,966 3.1 13,087 2.4 Total $ 544,604 100.0 % $ 551,219 100.0 % American National regularly invests in real estate partnerships and joint ventures. American National frequently participates in the design of these entities with the sponsor, but in most cases, our involvement is limited to financing. Through analysis performed by American National, some of these partnerships and joint ventures have been determined to be variable interest entities (“VIEs”). In certain instances, in addition to an economic interest in the entity, American National holds the power to direct the most significant activities of the entity and is deemed the primary beneficiary or consolidator of the entity. The assets of the consolidated VIEs are restricted and must first be used to settle their liabilities. Creditors or beneficial interest holders of these VIEs have no recourse to the general credit of American National, as American National’s obligation is limited to the amount of its committed investment. American National has not provided financial or other support to the VIEs in the form of liquidity arrangements, guarantees, or other commitments to third parties that may affect the fair value or risk of its variable interest in the VIEs in 2020 or 2019. The assets and liabilities relating to the VIEs included in the condensed consolidated financial statements are as follows (in thousands): June 30, 2020 December 31, 2019 Investment real estate $ 133,548 $ 134,534 Short-term investments 501 500 Cash and cash equivalents 8,681 11,155 Other receivables 2,503 3,673 Other assets 11,383 15,355 Total assets of consolidated VIEs $ 156,616 $ 165,217 Notes payable $ 155,871 $ 157,997 Other liabilities 4,616 9,731 Total liabilities of consolidated VIEs $ 160,487 $ 167,728 The notes payable in the condensed consolidated statements of financial position pertain to the borrowings of the consolidated VIEs. The liability of American National relating to notes payable of the consolidated VIEs is limited to the amount of its direct or indirect investment in the respective ventures, which totaled $3,066,000 and $4,304,000 at June 30, 2020 and December 31, 2019, respectively. The total long-term notes payable of the consolidated VIEs consists of the following (in thousands): Interest rate Maturity June 30, 2020 December 31, 2019 LIBOR 2021 $ 10,828 $ 10,836 4% fixed 2022 80,152 81,709 4.18% fixed 2024 64,891 65,452 Total $ 155,871 $ 157,997 For other VIEs in which American National is a partner, it is not the primary beneficiary, and these entities are not consolidated, as the major decisions that most significantly impact the economic activities of the VIE require consent of all partners. The carrying amount and maximum exposure to loss relating to unconsolidated VIEs follows (in thousands): June 30, 2020 December 31, 2019 Carrying Maximum Carrying Maximum Investment in unconsolidated affiliates $ 342,967 $ 342,967 $ 332,742 $ 332,742 Mortgage loans 696,645 696,545 657,528 657,528 Accrued investment income 3,276 3,276 2,198 2,198 As of June 30, 2020, one real estate investment with a carrying value of $3,364,000 met the criteria as held-for-sale. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments American National purchases over-the-counter equity-indexed options as economic hedges against fluctuations in the equity markets to which equity-indexed products are exposed. These options are not designated as hedging instruments for accounting purposes under U.S. GAAP. Equity-indexed contracts include a fixed host universal-life insurance or annuity contract and an equity-indexed embedded derivative. The detail of derivative instruments is shown below (in thousands, except number of instruments): Derivatives Not Designated Location in the Condensed Consolidated Statements of Financial Position June 30, 2020 December 31, 2019 Number of Notional Estimated Number of Notional Estimated Equity-indexed options Other invested assets 459 $ 2,693,100 $ 191,486 473 $ 2,654,600 $ 256,005 Equity-indexed embedded derivative Policyholders’ account balances 105,964 2,561,102 675,970 101,950 2,527,205 731,552 Derivatives Not Designated Location in the Condensed Consolidated Statements of Operations Gains (Losses) Recognized in Income on Derivatives Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Equity-indexed options Net investment income $ 67,157 $ 23,125 $ (40,938) $ 89,610 Equity-indexed embedded derivative Interest credited to policyholders’ account balances (62,491) (36,255) 27,090 (94,411) The Company’s use of derivative instruments exposes it to credit risk in the event of non-performance by the counterparties. The Company has a policy of only dealing with counterparties it believes are creditworthy and obtaining collateral where appropriate, as a means of mitigating the financial loss from defaults. The Company holds collateral in cash and notes secured by U.S. government backed assets. The non-performance risk is the net counterparty exposure based on the fair value of the open contracts, less the fair value of collateral held. The Company maintains master netting agreements with its current active trading partners. As such, a right of offset has been applied to collateral that supports credit risk and has been recorded in the condensed consolidated statements of financial position as an offset to “Other invested assets” with an associated payable to “Other liabilities” for excess collateral. Information regarding the Company’s exposure to credit loss on the options it holds is presented below (in thousands): June 30, 2020 Counterparty Moody/S&P Options Fair Collateral Held in Cash Collateral Held in Invested Assets Total Collateral Amounts used to Offset Exposure Excess Collateral Exposure Barclays Baa2/BBB $ 36,375 $ 17,373 $ 18,100 $ 35,473 $ 35,473 $ — $ 902 Credit Suisse Baa2/BBB+ 4,946 4,470 — 4,470 4,470 — 476 Goldman-Sachs A3/BBB+ 990 910 — 910 910 — 80 ING Baa1/A- 24,305 14,040 10,300 24,340 24,305 35 — Morgan Stanley A3/BBB+ 16,967 8,256 5,700 13,956 13,956 — 3,011 NATIXIS* A1/A+ 26,834 26,570 — 26,570 26,570 — 264 SunTrust A3/A- 47,570 34,780 11,000 45,780 45,780 — 1,790 Wells Fargo A2/A- 33,499 22,210 9,900 32,110 32,110 — 1,389 Total $ 191,486 $ 128,609 $ 55,000 $ 183,609 $ 183,574 $ 35 $ 7,912 December 31, 2019 Counterparty Moody/S&P Options Fair Collateral Held in Cash Collateral Held in Invested Assets Total Collateral Amounts used to Offset Exposure Excess Collateral Exposure Barclays Baa3/BBB $ 54,583 $ 27,343 $ 28,000 $ 55,343 $ 54,583 $ 760 $ — Credit Suisse Baa2/BBB+ 7,117 7,390 — 7,390 7,009 381 108 Goldman-Sachs A3/BBB+ 1,053 930 — 930 930 — 123 ING Baa1/A- 30,330 14,940 16,000 30,940 30,330 610 — Morgan Stanley A3/BBB+ 34,988 25,926 9,000 34,926 34,926 — 62 NATIXIS* A1/A+ 29,918 30,200 — 30,200 29,918 282 — SunTrust A3/A- 60,360 41,720 17,000 58,720 58,645 75 1,715 Wells Fargo A2/A- 37,656 24,110 15,000 39,110 37,656 1,454 — Total $ 256,005 $ 172,559 $ 85,000 $ 257,559 $ 253,997 $ 3,562 $ 2,008 * Collateral is prohibited from being held in invested assets |
Net Investment Income and Reali
Net Investment Income and Realized Investment Gains (Losses) | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Net Investment Income and Realized Investment Gains (Losses) | Net investment income is shown below (in thousands): Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Bonds $ 141,762 $ 150,907 $ 287,881 $ 298,464 Equity securities 7,919 9,015 15,766 17,307 Mortgage loans 60,445 63,158 119,773 126,357 Real estate 1,734 4,508 3,447 6,363 Equity-indexed options 67,157 23,125 (40,938) 89,610 Other invested assets 8,331 7,017 16,703 11,975 Total $ 287,348 $ 257,730 $ 402,632 $ 550,076 Net realized investment gains (losses) are shown below (in thousands): Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Bonds $ 3,952 $ 2,611 $ 9,430 $ 5,213 Mortgage loans — (544) — (89) Real estate (7) (2,728) (1,314) (2,886) Other invested assets (6) (2,276) (29) (2,228) Total $ 3,939 $ (2,937) $ 8,087 $ 10 Net realized investment gain (losses) by transaction type are shown below (in thousands): Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Sales $ — $ (583) $ (3,618) $ (763) Calls 4,025 2,274 13,145 4,928 Paydowns (73) 319 (54) 288 Impairments — (4,700) (1,276) (4,700) Loss allowance — (257) — 260 Others (13) 10 (110) (3) Total $ 3,939 $ (2,937) $ 8,087 $ 10 Other-than-temporary impairment losses are shown below (in thousands): Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Bonds $ — $ (6,968) $ — $ (6,968) |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | The carrying amount and fair value of financial instruments are shown below (in thousands): June 30, 2020 December 31, 2019 Carrying Fair Value Carrying Fair Value Financial assets Fixed maturity, bonds held-to-maturity $ 8,238,405 $ 8,713,716 $ 8,631,261 $ 8,968,690 Fixed maturity, bonds available-for-sale 7,170,471 7,170,471 6,725,085 6,725,085 Equity securities 1,714,264 1,714,264 1,700,960 1,700,960 Equity-indexed options 191,486 191,486 256,005 256,005 Mortgage loans on real estate, net of allowance 5,176,511 5,438,373 5,097,017 5,309,005 Policy loans 377,826 377,826 379,657 379,657 Short-term investments 501,087 501,087 425,321 425,321 Separate account assets ($1,005,889 and $1,049,938 included in fair value hierarchy) 1,032,956 1,032,956 1,073,891 1,073,891 Separately managed accounts 51,537 51,537 50,503 50,503 Total financial assets $ 24,454,543 $ 25,191,716 $ 24,339,700 $ 24,889,117 Financial liabilities Investment contracts $ 10,185,122 $ 10,185,122 $ 10,254,959 $ 10,254,959 Embedded derivative liability for equity-indexed contracts 675,970 675,970 731,552 731,552 Notes payable 155,871 155,871 157,997 157,997 Federal Home Loan Bank advance 500,000 500,000 — — Separate account liabilities ($1,005,889 and $1,049,938 included in fair value hierarchy) 1,032,956 1,032,956 1,073,891 1,073,891 Total financial liabilities $ 12,549,919 $ 12,549,919 $ 12,218,399 $ 12,218,399 Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability. A fair value hierarchy is used to determine fair value based on a hypothetical transaction at the measurement date from the perspective of a market participant. American National has evaluated the types of securities in its investment portfolio to determine an appropriate hierarchy level based upon trading activity and the observability of market inputs. The classification of assets or liabilities within the fair value hierarchy is based on the lowest level of significant input to its valuation. The input levels are defined as follows: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 Quoted prices in markets that are not active or inputs that are observable directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities other than quoted prices in Level 1; quoted prices in markets that are not active; or other inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Unobservable inputs reflect American National’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models and third-party evaluation, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Valuation Techniques for Financial Instruments Recorded at Fair Value Fixed Maturity Securities and Equity Options— American National utilizes a pricing service to estimate fair value measurements. The estimates of fair value for most fixed maturity securities, including municipal bonds, provided by the pricing service are disclosed as Level 2 measurements as the estimates are based on observable market information rather than market quotes. The pricing service utilizes market quotations for fixed maturity securities that have quoted prices in active markets. Since fixed maturity securities generally do not trade on a daily basis, the pricing service prepares estimates of fair value measurements for these securities using its proprietary pricing applications, which include available relevant market information, benchmark curves, benchmarking of like securities, sector groupings and matrix pricing. Additionally, an option adjusted spread model is used to develop prepayment and interest rate scenarios. The pricing service evaluates each asset class based on relevant market information, credit information, perceived market movements and sector news. The market inputs utilized in the pricing evaluation, listed in the approximate order of priority, include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, and economic events. The extent of the use of each market input depends on the asset class and the market conditions. Depending on the security, the priority of the use of inputs may change or some market inputs may not be relevant. For some securities, additional inputs may be necessary. American National has reviewed the inputs and methodology used and the techniques applied by the pricing service to produce quotes that represent the fair value of a specific security. The review confirms that the pricing service is utilizing information from observable transactions or a technique that represents a market participant’s assumptions. American National does not adjust quotes received from the pricing service. The pricing service utilized by American National has indicated that they will only produce an estimate of fair value if there is objectively verifiable information available. American National holds a small amount of private placement debt and fixed maturity securities that have characteristics that make them unsuitable for matrix pricing. For these securities, a quote from an independent broker (typically a market maker) is obtained. Due to the disclaimers on the quotes that indicate the price is indicative only, American National includes these fair value estimates in Level 3. For securities priced using a quote from an independent broker, such as the equity-indexed options and certain fixed maturity securities, American National uses a market-based fair value analysis to validate the reasonableness of prices received. Price variances above a certain threshold are analyzed further to determine if any pricing issue exists. This analysis is performed quarterly. Equity Securities— For publicly-traded equity securities, prices are received from a nationally recognized pricing service that are based on observable market transactions, and these securities are classified as Level 1 measurements. For certain preferred stock, current market quotes in active markets are unavailable. In these instances, an estimated fair value is received from the pricing service. The service utilizes similar methodologies to price preferred stocks as it does for fixed maturity securities. If applicable, these estimates would be disclosed as Level 2 measurements. American National tests the accuracy of the information provided by reference to other services annually. Short-Term Investments —Short-term investments are primarily commercial paper rated A2 or P2 or better by Standard & Poor's and Moody's, respectively. Commercial paper is carried at amortized cost which approximates fair value. These investments are classified as Level 2 measurements. Separate Account Assets and Liabilities —Separate account assets and liabilities are funds that are held separate from the general assets and liabilities of American National and that represent the investments of variable insurance product contract holders, who bear the investment risk of such funds. Investment income and investment gains and losses from these separate funds accrue to the benefit of the contract holders. Separate accounts are established in conformity with insurance laws and are not chargeable with liabilities that arise from any other business of American National. American National reports separately, as assets and liabilities, investments held in separate accounts and liabilities of the separate accounts if (i) such separate accounts are legally recognized; (ii) assets supporting the contract liabilities are legally insulated from American National’s general account liabilities; (iii) investments are directed by the contract holder; and (iv) all investment performance, net of contract fees and assessments, is passed through to the contract holder. The assets of these accounts are carried at fair value. Deposits, net investment income and realized investment gains and losses for these accounts are excluded from revenues, and related liability increases are excluded from benefits and expenses in the condensed consolidated statements of operations. The separate account assets included on the quantitative disclosures fair value hierarchy table are comprised of short-term investments, equity securities, and fixed maturity bonds available-for-sale. Equity securities are classified as Level 1 measurements. Short-term investments and fixed maturity securities are classified as Level 2 measurements. These classifications for separate account assets reflect the same fair value level methodologies as listed above as they are derived from the same vendors and follow the same process. The separate account assets also include cash and cash equivalents, investments in unconsolidated affiliates, accrued investment income, and receivables for securities. These are not financial instruments and are not included in the quantitative disclosures of fair value hierarchy table. Embedded Derivative— The amounts reported within policyholder contract deposits include equity linked interest crediting rates based on the S&P 500 index within index annuities and indexed life. The following unobservable inputs are used for measuring the fair value of the embedded derivatives associated with the policyholder contract liabilities: • Lapse rate assumptions are determined by company experience. Lapse rates are generally assumed to be lower during a contract’s surrender charge period and then higher once the surrender charge period has ended. Decreases to the assumed lapse rates generally increase the fair value of the liability as more policyholders persist to collect the crediting interest pertaining to the indexed product. Increases to the lapse rate assumption decrease the fair value. • Mortality rate assumptions vary by age and gender based on company and industry experience. Decreases to the assumed mortality rates increase the fair value of the liabilities as more policyholders earn crediting interest. Increases to the assumed mortality rates decrease the fair value as higher decrements reduce the potential for future interest credits. • Equity volatility assumptions begin with current market volatilities and grow to long-term values. Increases to the assumed volatility will increase the fair value of liabilities, as future projections will produce higher increases in the linked index. At June 30, 2020 and December 31, 2019, the one year implied volatility used to estimate embedded derivative value was 24.4% and 11.3%, respectively. Fair values of indexed life and annuity liabilities are calculated using the discounted cash flow technique. Shown below are the significant unobservable inputs used to calculate the Level 3 fair value of the embedded derivatives within policyholder contract deposits (in millions, except range percentages): Fair Value Range June 30, 2020 December 31, 2019 Unobservable Input June 30, 2020 December 31, 2019 Indexed Annuities $ 659.2 $ 706.5 Lapse Rate 1-70% 1-70% Mortality Multiplier 90-100% 90-100% Equity Volatility 16-65% 11-46% Indexed Life 16.7 25.1 Equity Volatility 16-65% 11-46% Quantitative Disclosures The fair value hierarchy measurements of the financial instruments are shown below (in thousands): Assets and Liabilities Carried at Fair Value by Hierarchy Level as of June 30, 2020 Total Level 1 Level 2 Level 3 Financial assets Fixed maturity, bonds available-for-sale U.S. treasury and government $ 29,808 $ — $ 29,808 $ — U.S. states and political subdivisions 1,092,371 — 1,092,371 — Foreign governments 16,770 — 16,770 — Corporate debt securities 5,973,257 — 5,869,579 103,678 Residential mortgage-backed securities 30,457 — 30,457 — Collateralized debt securities 27,808 — 27,808 — Total bonds available-for-sale 7,170,471 — 7,066,793 103,678 Equity securities Common stock 1,696,311 1,696,159 — 152 Preferred stock 17,953 17,492 — 461 Total equity securities 1,714,264 1,713,651 — 613 Options 191,486 — — 191,486 Short-term investments 501,087 — 501,087 — Separate account assets 1,005,889 154,144 851,745 — Separately managed accounts 51,537 — — 51,537 Total financial assets $ 10,634,734 $ 1,867,795 $ 8,419,625 $ 347,314 Financial liabilities Embedded derivative for equity-indexed contracts $ 675,970 $ — $ — $ 675,970 Separate account liabilities 1,005,889 154,144 851,745 — Total financial liabilities $ 1,681,859 $ 154,144 $ 851,745 $ 675,970 Assets and Liabilities Carried at Fair Value by Hierarchy Level as of December 31, 2019 Total Level 1 Level 2 Level 3 Financial assets Fixed maturity, bonds available-for-sale U.S. treasury and government $ 29,941 $ — $ 29,941 $ — U.S. states and political subdivisions 1,078,165 — 1,078,165 — Foreign governments 6,287 — 6,287 — Corporate debt securities 5,576,620 — 5,531,776 44,844 Residential mortgage-backed securities 23,943 — 23,943 — Collateralized debt securities 10,129 — 10,129 — Total bonds available-for-sale 6,725,085 — 6,680,241 44,844 Equity securities Common stock 1,682,149 1,681,686 — 463 Preferred stock 18,811 18,811 — — Total equity securities 1,700,960 1,700,497 — 463 Options 256,005 — — 256,005 Short-term investments 425,321 — 425,321 — Separate account assets 1,049,938 271,575 778,363 — Separately managed accounts 50,503 — — 50,503 Total financial assets $ 10,207,812 $ 1,972,072 $ 7,883,925 $ 351,815 Financial liabilities Embedded derivative for equity-indexed contracts $ 731,552 $ — $ — $ 731,552 Separate account liabilities 1,049,938 271,575 778,363 — Total financial liabilities $ 1,781,490 $ 271,575 $ 778,363 $ 731,552 For financial instruments measured at fair value on a recurring basis using Level 3 inputs during the period, a reconciliation of the beginning and ending balances is shown below (in thousands): Level 3 Three months ended June 30, 2020 Six months ended June 30, 2020 Assets Liability Assets Liability Investment Equity-Indexed Separately Managed Accounts Embedded Investment Equity-Indexed Separately Managed Accounts Embedded Beginning balance $ 53,853 $ 125,988 $ 50,489 $ 630,952 $ 45,307 $ 256,005 $ 50,503 $ 731,552 Net gain (loss) for derivatives included in net investment income — 67,157 — — — (40,938) — — Net change included in interest credited — — — 62,491 — — — (27,090) Net fair value change included in other comprehensive income — — (4,046) — — — (4,060) — Purchases, sales and settlements or maturities Purchases 86,467 24,273 9,042 — 109,169 38,438 9,042 — Sales (36,642) — (3,948) — (50,798) — (3,948) — Settlements or maturities — (25,932) — — — (62,019) — — Premiums less benefits — — — (17,473) — — — (28,492) Ending balance at June 30, 2020 $ 103,678 $ 191,486 $ 51,537 $ 675,970 $ 103,678 $ 191,486 $ 51,537 $ 675,970 Level 3 Three months ended June 30, 2019 Six months ended June 30, 2019 Assets Liability Assets Liability Investment Equity-Indexed Separately Managed Accounts* Embedded Investment Equity-Indexed Separately Managed Accounts* Embedded Beginning balance $ 4,346 $ 216,156 $ 23,254 $ 668,485 $ 4,346 $ 148,006 $ 16,532 $ 596,075 Net gain for derivatives included in net investment income — 23,125 — — — 89,610 — — Net change included in interest credited — — — 36,255 — — — 94,411 Net fair value change included in other comprehensive income — — (11) — — — (2) — Purchases, sales and settlements or maturities Purchases — 21,412 7,412 — — 38,768 14,125 — Settlements or maturities — (29,649) — — — (45,340) — — Premiums less benefits — — — (9,064) — — — 5,190 Ending balance at June 30, 2019 $ 4,346 $ 231,044 $ 30,655 $ 695,676 $ 4,346 $ 231,044 $ 30,655 $ 695,676 * Subsequent to the issuance of the Company's interim condensed consolidated financial statements as of and for the three and six months ended June 30, 2019, the Company's management determined Separately Managed Accounts were omitted from this disclosure. The amounts included in the disclosure tables above now include disclosures for Separately Managed Accounts for all periods presented. Within the net gain for derivatives included in net investment income were unrealized gains of $59,948,000 and $84,756,000, relating to assets still held at June 30, 2020 and 2019, respectively. Fair Value Information About Financial Instruments Not Recorded at Fair Value Information about fair value estimates for financial instruments not measured at fair values is discussed below: Fixed Maturity Securities —The fair value of bonds held-to-maturity is determined consistent with the disclosure under Valuation Techniques for the Financial Instrument Recorded at Fair Value section. Mortgage Loans —The fair value of mortgage loans is estimated using discounted cash flow analyses on a loan by loan basis by applying a discount rate to expected cash flows from future installment and balloon payments. The discount rate takes into account general market trends and specific credit risk trends for the individual loan. Factors used to arrive at the discount rate include inputs from spreads based on U.S. Treasury notes and the loan’s credit quality, region, property type, lien priority, payment type and current status. Policy Loans —The carrying value of policy loans is the outstanding balance plus any accrued interest. Due to the collateralized nature of policy loans such that they cannot be separated from the policy contracts, the unpredictable timing of repayments and the fact that settlement is at outstanding value, American National believes the carrying value of policy loans approximates fair value. Separately Managed Accounts —The amounts reported in separately managed accounts consist primarily of notes and private equity. These investments are private placements and do not have a readily determinable fair value. The carrying value of the separately managed accounts is cost or market value if available from the separately managed account manager. Market value is provided by the separately managed account manager in subsequent quarters. American National believes that cost approximates fair value at initial recognition during the quarter of investment. Investment Contracts —The carrying value of investment contracts is equivalent to the accrued account balance. The accrued account balance consists of deposits, net of withdrawals, plus or minus interest credited, fees and charges assessed and other adjustments. American National believes that the carrying value of investment contracts approximates fair value because the majority of these contracts’ interest rates reset at anniversary. Notes Payable —Notes payable are carried at outstanding principal balance. The carrying value of the notes payable approximates fair value because the underlying interest rates approximate market rates at the balance sheet date. Federal Home Loan Bank advance —The Federal Home Loan Bank advance is carried at outstanding principal balance. The carrying value of the advance approximates fair value because the underlying interest rates approximate market rates at the balance sheet date. The carrying value and estimated fair value of financial instruments not recorded at fair value on a recurring basis are shown below (in thousands): June 30, 2020 FV Hierarchy Level Carrying Fair Value Financial assets Fixed maturity, bonds held-to-maturity U.S. states and political subdivisions Level 2 $ 127,592 $ 131,799 Foreign governments Level 2 3,880 4,361 Corporate debt securities Level 2 7,734,990 8,199,640 Residential mortgage-backed securities Level 2 207,039 170,326 Collateralized debt securities Level 2 164,904 207,590 Total fixed maturity, bonds held-to-maturity 8,238,405 8,713,716 Mortgage loans on real estate, net of allowance Level 3 5,176,511 5,438,373 Policy loans Level 3 377,826 377,826 Total financial assets $ 13,792,742 $ 14,529,915 Financial liabilities Investment contracts Level 3 $ 10,185,122 $ 10,185,122 Notes payable Level 3 155,871 155,871 Federal Home Loan Bank advance Level 3 500,000 500,000 Total financial liabilities $ 10,840,993 $ 10,840,993 December 31, 2019 FV Hierarchy Level Carrying Fair Value Financial assets Fixed maturity, bonds held-to-maturity U.S. states and political subdivisions Level 2 $ 165,109 $ 170,114 Foreign governments Level 2 3,907 4,349 Corporate debt securities Level 2 8,099,098 8,424,969 Residential mortgage-backed securities Level 2 237,516 242,828 Collateralized debt securities Level 2 125,631 126,430 Total fixed maturity, bonds held-to-maturity 8,631,261 8,968,690 Mortgage loans on real estate, net allowance Level 3 5,097,017 5,309,005 Policy loans Level 3 379,657 379,657 Total financial assets $ 14,107,935 $ 14,657,352 Financial liabilities Investment contracts Level 3 $ 10,254,959 $ 10,254,959 Notes payable Level 3 157,997 157,997 Total financial liabilities $ 10,412,956 $ 10,412,956 |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 6 Months Ended |
Jun. 30, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Policy Acquisition Costs | Deferred policy acquisition costs are shown below (in thousands): Life Annuity Health Property Total Beginning balance at January 1, 2020 $ 852,900 $ 415,380 $ 32,578 $ 122,149 $ 1,423,007 Additions 65,712 22,318 7,583 175,769 271,382 Amortization (46,339) (41,910) (7,543) (169,215) (265,007) Effect of change in unrealized gains on bonds available-for-sale debt (3,918) (17,322) — — (21,240) Net change 15,455 (36,914) 40 6,554 (14,865) Ending balance at June 30, 2020 $ 868,355 $ 378,466 $ 32,618 $ 128,703 $ 1,408,142 Commissions comprise the majority of the additions to deferred policy acquisition costs. |
Liability for Unpaid Claims and
Liability for Unpaid Claims and Claim Adjustment Expenses | 6 Months Ended |
Jun. 30, 2020 | |
Insurance [Abstract] | |
Liability for Unpaid Claims and Claim Adjustment Expenses | The liability for unpaid claims and claim adjustment expenses (“claims”) for health and property and casualty insurance is included in “Policy and contract claims” in the condensed consolidated statements of financial position and is the amount estimated for incurred but not reported (“IBNR”) claims and claims that have been reported but not settled. The liability for unpaid claims is estimated based upon American National’s historical experience and actuarial assumptions that consider the effects of current developments, anticipated trends and risk management programs, less anticipated salvage and subrogation. The effects of the changes are included in the condensed consolidated results of operations in the period in which the changes occur. The time value of money is not taken into account for the purposes of calculating the liability for unpaid claims. There have been no significant changes in methodologies or assumptions used to calculate the liability for unpaid claims and claim adjustment expenses. Information regarding the liability for unpaid claims is shown below (in thousands): Six months ended June 30, 2020 2019 Unpaid claims balance, beginning $ 1,322,837 $ 1,305,225 Less: Reinsurance recoverables 246,447 254,466 Net beginning balance 1,076,390 1,050,759 Incurred related to Current 601,691 591,073 Prior years (33,256) (30,691) Total incurred claims 568,435 560,382 Paid claims related to Current 268,203 272,650 Prior years 267,282 276,738 Total paid claims 535,485 549,388 Net balance 1,109,340 1,061,753 Plus: Reinsurance recoverables 250,378 249,245 Unpaid claims balance, ending $ 1,359,718 $ 1,310,998 The net and gross reserve calculations have shown favorable development in 2020 as a result of favorable loss emergence compared to what was implied by the loss development patterns used in the original estimation of losses in prior years. Estimates for ultimate incurred claims attributable to insured events of prior years decreased by approximately $33,256,000 during the first six months of 2020 and decreased by $30,691,000 during the same period in 2019. The favorable development in 2020 was a reflection of lower-than-anticipated losses in the private passenger automobile, agribusiness, and workers compensation. The favorable development for the first six months in 2019 reflects lower-than-anticipated losses in the workers compensation and agribusiness lines of business. |
Federal Income Taxes
Federal Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Federal Income Taxes | A reconciliation of the effective tax rate to the statutory federal tax rate is shown below (in thousands, except percentages): Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Amount Rate Amount Rate Amount Rate Amount Rate Income tax expense (benefit) before tax on equity in earnings of unconsolidated affiliates $ 58,008 22.1 % $ 21,819 18.1 % $ (4,686) 23.2 % $ 81,606 18.3 % Tax on equity in earnings of unconsolidated affiliates (2,860) (1.1) 3,526 2.9 438 (2.2) 12,023 2.7 Total expected income tax expense (benefit) at the statutory rate 55,148 21.0 25,345 21.0 (4,248) 21.0 93,629 21.0 Tax-exempt investment income (1,061) (0.4) (1,109) (0.9) (2,088) 10.3 (1,918) (0.4) Dividend exclusion (1,443) (0.5) (860) (0.7) (2,305) 11.4 (1,781) (0.4) Miscellaneous tax credits, net (1,534) (0.6) (3,299) (2.7) (3,929) 19.4 (4,991) (1.1) Low income housing tax credit expense 982 0.4 1,783 1.5 2,756 (13.6) 2,941 0.6 Change in valuation allowance 12 — 165 0.1 124 (0.6) 165 — Other items, net 93 — (77) (0.1) 219 (1.1) 1,280 0.3 Provision (benefit) for federal income taxes $ 52,197 19.9 % $ 21,948 18.2 % $ (9,471) 46.8 % $ 89,325 20.0 % As of June 30, 2020 and December 31, 2019, American National had no material net operating loss or tax credit carryforwards. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The components of and changes in the accumulated other comprehensive income (“AOCI”), and the related tax effects, are shown below (in thousands): Net Unrealized Defined Foreign Accumulated Beginning balance at January 1, 2020 $ 157,851 $ (55,232) $ (3,101) $ 99,518 Amounts reclassified from AOCI (net of tax benefit $448 and expense $959) (1,687) 3,605 — 1,918 Unrealized holding gains arising during the period (net of tax expense $22,284) 83,831 — — 83,831 Unrealized adjustment to DAC (net of tax benefit $4,460) (16,780) — — (16,780) Unrealized gains on investments attributable to participating policyholders’ interest (net of tax benefit $1,061) (3,991) — — (3,991) Foreign currency adjustm ent (net of tax benefit $156) — — (585) (585) Ending balance at June 30, 2020 $ 219,224 $ (51,627) $ (3,686) $ 163,911 Beginning balance at January 1, 2019 $ (42,469) $ (54,236) $ (3,033) $ (99,738) Amounts reclassified from AOCI (net of tax expense $565 and $774) 2,126 2,911 — 5,037 Unrealized holding gains arising during the period (net of tax expense $58,322) 219,402 — — 219,402 Unrealized adjustment to DAC (net of tax benefit $7,320) (27,533) — — (27,533) Unrealized gains on investments attributable to participating policyholders’ interest (net of tax benefit $2,690) (10,121) — — (10,121) Foreign currency adjustment (net of tax benefit $157) — — 590 590 Cumulative effect of changes in accounting 16,166 (16,493) (458) (785) Ending balance at June 30, 2019 $ 157,571 $ (67,818) $ (2,901) $ 86,852 |
Stockholders' Equity and Noncon
Stockholders' Equity and Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity and Noncontrolling Interests | American National has one class of common stock with a par value of $1.00 per share and 50,000,000 authorized shares. The amounts outstanding at the dates indicated are shown below: June 30, 2020 December 31, 2019 Common stock Shares issued 30,832,449 30,832,449 Treasury shares (3,945,249) (3,945,249) Outstanding shares 26,887,200 26,887,200 Restricted shares (10,000) (10,000) Unrestricted outstanding shares 26,877,200 26,877,200 Stock-based Compensation American National has made grants of Stock Appreciation Rights (“SAR”), Restricted Stock (“RS”) Awards, and Restricted Stock Units (“RSU”), pursuant to a stock-based compensation plan. The term for granting additional awards under such plan expired in 2019. Pursuant to the plan, grants were made to certain officers meeting established performance objectives, and grants were made to directors as compensation and to align their interests with those of other shareholders. In addition, American National has made grants to directors and advisory directors of RSUs that are cash-settled only, with no provision for conversion to stock. Such cash-settled RSUs vested during the three months ended June 30, 2020 and no additional RSU's remain outstanding which is shown in the table below. SAR, RS and RSU information for the periods indicated are shown below: SAR RS Shares RSUs Shares Weighted-Average Shares Weighted-Average Units Weighted-Average Outstanding at December 31, 2019 66 $ 110.83 10,000 $ 80.05 8,250 $ 113.19 Granted — — — — — — Exercised — — — — (8,250) 113.19 Forfeited — — — — — — Expired (66) 110.83 — — — — Outstanding at June 30, 2020 — $ — 10,000 $ 80.05 — $ — SAR RS Shares RSUs Weighted-average contractual remaining life (in years) 0 2.67 0 Exercisable shares — N/A N/A Weighted-average exercise price $ — $ 80.05 $ 113.19 Weighted-average exercise price exercisable shares — N/A N/A Compensation expense (credit) Three months ended June 30, 2020 $ — $ 20,000 $ (14,000) Three months ended June 30, 2019 (12,000) 20,000 578,000 Six months ended June 30, 2020 $ (1,000) $ 40,000 $ (184,000) Six months ended June 30, 2019 (15,000) 40,000 941,000 Fair value of liability award June 30, 2020 $ — N/A $ — December 31, 2019 1,000 N/A 971,000 The SARs give the holder the right to cash compensation based on the difference between the stock price on the grant date and the stock price on the exercise date. The SARs vest at a rate of 20% per year for five years and expire five years after vesting. All remaining SAR's expired on May 1, 2020. RS awards entitle the participant to full dividend and voting rights. Each RS share awarded has the value of one share of restricted stock and vests 10 years from the grant date. Unvested shares are restricted as to disposition, and are subject to forfeiture under certain circumstances. Compensation expense is recognized over the vesting period. The restrictions on these awards lapse after 10 years and feature a graded vesting schedule in the case of the retirement, death or disability of an award holder. Restricted stock awards for 350,334 shares have been granted at an exercise price of zero, of which 10,000 shares are unvested. RSU awards to our directors and advisory directors are settled in cash based upon the market price of our common stock after one Earnings per Share Basic earnings per share were calculated using a weighted average number of shares outstanding. Diluted earnings per share include RS and RSU award shares. Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Weighted average shares outstanding 26,878,684 26,881,700 26,880,183 26,883,699 Incremental shares from RS awards and RSUs 8,445 7,264 9,265 6,237 Total shares for diluted calculations 26,887,129 26,888,964 26,889,448 26,889,936 Net income (loss) attributable to American National (in thousands) $ 210,545 $ 98,840 $ (9,899) $ 357,057 Basic earnings per share $ 7.83 $ 3.68 $ (0.37) $ 13.28 Diluted earnings per share $ 7.83 $ 3.67 $ (0.37) $ 13.28 Statutory Capital and Surplus Risk Based Capital (“RBC”) is a measure insurance regulators use to evaluate the capital adequacy of American National's insurance subsidiaries. RBC is calculated using formulas applied to certain financial balances and activities that consider, among other things, investment risks related to the type and quality of investments, insurance risks associated with products and liabilities, interest rate risks and general business risks. Insurance companies that do not maintain capital and surplus at a level at least 200% of the authorized control level RBC are required to take certain actions. At June 30, 2020 and December 31, 2019, American National Insurance Company’s statutory capital and surplus was $3,419,135,000 and $3,477,727,000, respectively. American National Insurance Company and each of its insurance subsidiaries had statutory capital and surplus at June 30, 2020 and December 31, 2019, substantially above 200% of the authorized control level. American National and its insurance subsidiaries prepare statutory-basis financial statements in accordance with statutory accounting practices prescribed or permitted by the insurance department of the state of domicile, which include certain components of the National Association of Insurance Commissioners’ Codification of Statutory Accounting Principles (“NAIC Codification”). NAIC Codification is intended to standardize regulatory accounting and reporting to state insurance departments. However, statutory accounting practices continue to be established by individual state laws and permitted practices. Modifications by the various state insurance departments may impact the statutory capital and surplus of American National Insurance Company and its insurance subsidiaries. Statutory accounting differs from GAAP primarily by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions, and valuing securities on a different basis. In addition, certain assets are not admitted under statutory accounting principles and are charged directly to surplus. One of American National’s insurance subsidiaries has been granted a permitted practice from the Missouri Department of Insurance to record as the valuation of its investment in a wholly-owned subsidiary that is the attorney-in-fact for a Texas domiciled insurer, the statutory capital and surplus of the Texas domiciled insurer. This permitted practice increases the statutory capital and surplus of both American National Insurance Company and the Missouri domiciled insurance subsidiary by $70,542,000 a nd $70,339,000 at June 30, 2020 and December 31, 2019, respectively. The statutory capital and surplus of both American National Insurance Company and the Missouri domiciled insurance subsidiary would have remained substantially above the Company action level RBC had it not used the permitted practice. The statutory capital and surplus and net income of our life and property and casualty insurance entities in accordance with statutory accounting practices are shown below (in thousands): June 30, 2020 December 31, 2019 Statutory capital and surplus Life insurance entities $ 2,086,978 $ 2,159,770 Property and casualty insurance entities 1,343,222 1,329,782 Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Statutory net income (loss) Life insurance entities $ (28,301) $ 12,782 $ 26,674 $ 5,698 Property and casualty insurance entities (12,975) 12,344 35,278 50,464 Dividends Dividends are paid on a quarterly basis. We paid a dividend of $0.82 per quarter for the three and six months ended June 30, 2020 and June 30, 2019, respectively. We expect to continue to pay regular cash dividends, although there is no assurance as to future dividends because they depend on future earnings, capital requirements and financial conditions. American National Insurance Company’s payment of dividends to its stockholder, American National Group, Inc. is restricted by insurance law. The restrictions require life insurance companies to maintain minimum amounts of capital and surplus, and in the absence of special approval, limit the payment of dividends to the greater of the prior year’s statutory net income from operations, or 10% of prior year statutory surplus. American National Insurance Company is permitted without prior approval of the Texas Department of Insurance to pay total dividends of $347,773,000 during 2020. Similar restrictions on amounts that can transfer in the form of dividends, loans, or advances to American National Insurance Company apply to its insurance subsidiaries. Noncontrolling Interests American National County Mutual Insurance Company (“County Mutual”) is a mutual insurance company owned by its policyholders. American National Insurance Company has a management agreement that effectively gives it control of County Mutual. As a result, County Mutual is included in the condensed consolidated financial statements of American National. Policyholder interests in the financial position of County Mutual are reflected as noncontrolling interest of $6,750,000 at June 30, 2020 and December 31, 2019. American National Insurance Company and its subsidiaries exercise control or ownership of various joint ventures, resulting in their consolidation into American National’s condensed consolidated financial statements. The interests of the other partners in the consolidated joint ventures are shown as a noncontrolling deficit o f $495,000 and $736,000 at June 30, 2020 and December 31, 2019, respectively. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Management organizes the business into five operating segments: • Life—consists of whole, term, universal, indexed and variable life insurance. Products are primarily sold through career, multiple-line, and independent agents as well as direct marketing channels. • Annuity—consists of fixed, indexed, and variable annuity products. Products are primarily sold through independent agents, brokers, and financial institutions, along with multiple-line and career agents. • Health—consists of Medicare Supplement, stop-loss, other supplemental health products and credit disability insurance. Products are typically distributed through independent agents and managing general underwriters. • Property and Casualty—consists of personal, agricultural and targeted commercial coverages and credit-related property insurance. Products are primarily sold through multiple-line and independent agents or managing general agents. • Corporate and Other—consists of net investment income from investments and certain expenses not allocated to the insurance segments and revenues and related expenses from non-insurance operations. The accounting policies of the segments are the same as those described in Note 2 of American National’s 2019 annual report on Form 10-K. All revenues and expenses specifically attributable to policy transactions are recorded directly to the appropriate operating segment. Revenues and expenses not specifically attributable to policy transactions are allocated to each segment as follows: • Recurring income from bonds and mortgage loans is allocated based on the assets allocated to each line of business at the average yield available from these assets. • Net investment income from all other assets is allocated to the insurance segments in accordance with the amount of capital allocated to each segment, with the remainder recorded in the Corporate and Other segment. • Expenses are charged to segments through direct identification and allocations based upon various factors. The results of operations measured as the income (loss) before federal income tax and other items by operating segments are summarized below (in thousands): Three months ended June 30, 2020 Property Corporate Life Annuity Health & Casualty & Other Total PREMIUMS AND OTHER REVENUES Premiums $ 91,670 $ 25,944 $ 42,945 $ 372,704 $ — $ 533,263 Other policy revenues 76,226 3,561 — — — 79,787 Net investment income 73,645 189,842 2,214 16,037 5,610 287,348 Net realized investment gains — — — — 3,939 3,939 Change in investment credit loss — — — — (52,310) (52,310) Net gains on equity securities — — — — 298,825 298,825 Other income 440 795 5,503 2,844 754 10,336 Total premiums and other revenues 241,981 220,142 50,662 391,585 256,818 1,161,188 BENEFITS, LOSSES AND EXPENSES Policyholder benefits 124,941 44,983 — — — 169,924 Claims incurred — — 26,726 280,561 — 307,287 Interest credited to policyholders’ account balances 25,201 121,582 — — — 146,783 Commissions for acquiring and servicing policies 41,287 11,657 7,160 80,386 — 140,490 Other operating expenses 44,505 11,746 9,476 50,080 9,370 125,177 Change in deferred policy acquisition costs (11,535) 12,306 (17) (5,457) — (4,703) Total benefits, losses and expenses 224,399 202,274 43,345 405,570 9,370 884,958 Income (loss) before federal income tax and other items $ 17,582 $ 17,868 $ 7,317 $ (13,985) $ 247,448 $ 276,230 Three months ended June 30, 2019 Property Corporate Life Annuity Health & Casualty & Other Total PREMIUMS AND OTHER REVENUES Premiums $ 86,087 $ 56,222 $ 42,224 $ 371,739 $ — $ 556,272 Other policy revenues 70,610 4,536 — — — 75,146 Net investment income 63,916 155,355 2,376 16,706 19,377 257,730 Net realized investment losses — — — — (9,905) (9,905) Net gains on equity securities — — — — 67,060 67,060 Other income 469 574 5,534 2,830 967 10,374 Total premiums and other revenues 221,082 216,687 50,134 391,275 77,499 956,677 BENEFITS, LOSSES AND EXPENSES Policyholder benefits 104,462 72,788 — — — 177,250 Claims incurred — — 26,708 271,608 — 298,316 Interest credited to policyholders’ account balances 15,197 108,490 — — — 123,687 Commissions for acquiring and servicing policies 40,881 23,139 8,692 68,583 — 141,295 Other operating expenses 46,669 13,349 10,707 49,681 9,127 129,533 Change in deferred policy acquisition costs (9,205) (4,369) (146) (3,588) — (17,308) Total benefits, losses and expenses 198,004 213,397 45,961 386,284 9,127 852,773 Income before federal income tax and other items $ 23,078 $ 3,290 $ 4,173 $ 4,991 $ 68,372 $ 103,904 Six months ended June 30, 2020 Property Corporate Life Annuity Health & Casualty & Other Total PREMIUMS AND OTHER REVENUES Premiums $ 181,186 $ 41,453 $ 86,031 $ 761,361 $ — $ 1,070,031 Other policy revenues 151,766 7,626 — — — 159,392 Net investment income 119,220 231,383 4,447 32,122 15,460 402,632 Net realized investment gains — — — — 8,087 8,087 Change in investment credit loss — — — — (96,988) (96,988) Net losses on equity securities — — — — (33,750) (33,750) Other income 1,176 1,433 10,030 6,577 2,253 21,469 Total premiums and other revenues 453,348 281,895 100,508 800,060 (104,938) 1,530,873 BENEFITS, LOSSES AND EXPENSES Policyholder benefits 235,407 79,785 — — — 315,192 Claims incurred — — 61,611 510,270 — 571,881 Interest credited to policyholders’ account balances 23,298 119,162 — — — 142,460 Commissions for acquiring and servicing policies 80,754 21,905 15,184 153,082 — 270,925 Other operating expenses 91,985 23,622 20,105 103,084 20,307 259,103 Change in deferred policy acquisition costs (19,373) 19,592 (40) (6,554) — (6,375) Total benefits, losses and expenses 412,071 264,066 96,860 759,882 20,307 1,553,186 Income (loss) before federal income tax and other items $ 41,277 $ 17,829 $ 3,648 $ 40,178 $ (125,245) $ (22,313) Six months ended June 30, 2019 Property Corporate Life Annuity Health & Casualty & Other Total PREMIUMS AND OTHER REVENUES Premiums $ 172,555 $ 96,129 $ 80,905 $ 742,920 $ — $ 1,092,509 Other policy revenues 140,854 8,540 — — — 149,394 Net investment income 132,672 346,066 4,796 31,728 34,814 550,076 Net realized investment losses — — — — (6,958) (6,958) Net gains on equity securities — — — — 273,437 273,437 Other income 1,145 1,263 10,919 5,552 3,033 21,912 Total premiums and other revenues 447,226 451,998 96,620 780,200 304,326 2,080,370 BENEFITS, LOSSES AND EXPENSES Policyholder benefits 213,927 131,549 — — — 345,476 Claims incurred — — 52,475 509,752 — 562,227 Interest credited to policyholders’ account balances 35,516 229,405 — — — 264,921 Commissions for acquiring and servicing policies 78,623 50,005 15,570 135,742 — 279,940 Other operating expenses 95,647 25,823 21,699 101,566 18,408 263,143 Change in deferred policy acquisition costs (14,040) (7,389) 661 (3,171) — (23,939) Total benefits, losses and expenses 409,673 429,393 90,405 743,889 18,408 1,691,768 Income before federal income tax and other items $ 37,553 $ 22,605 $ 6,215 $ 36,311 $ 285,918 $ 388,602 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments American National and its subsidiaries lease insurance sales office space, technological equipment, and automobiles. The remaining long-term lease commitments at June 30, 2020 were approximately $12,287,000. American National had aggregate commitments at June 30, 2020, to purchase, expand or improve real estate, to fund fixed interest rate mortgage loans, and to purchase other invested assets of $1,333,284,000 of which $357,404,000 is expected to be funded in 2020 with the remainder funded in 2021 and beyond. American National has a $100,000,000 short-term variable rate borrowing facility containing a $55,000,000 sub-feature for the issuance of letters of credit. Borrowings under the facility are at the discretion of the lender and would be used only for funding working capital requirements. The combination of borrowings and outstanding letters of credit cannot exceed $100,000,000 at any time. As of June 30, 2020 and December 31, 2019, the outstanding letters of credit were $3,484,000, and there were no borrowings on this facility. This facility expires on October 31, 2020. Federal Home Loan Bank (FHLB) Agreements In May 2018, the Company became a member of the Federal Home Loan Bank of Dallas (“FHLB”) to augment its liquidity resources. The Company initially purchased $7.0 million of stock to meet the FHLB’s membership requirement. The FHLB member stock is recorded in other invested assets on the Company’s condensed consolidated statements of financial position. Through its membership, the Company has access to the FHLB’s financial services including advances that provide an attractive funding source for short-term borrowing and for access to other funding agreements. As of June 30, 2020, certain municipal bonds and collateralized mortgage obligations (CMO’s) with a fair value of approximately $103.4 million and commercial mortgage loans of approximately $1.5 billion were on deposit with the FHLB as collateral for borrowing. As of June 30, 2020 the collateral provided borrowing capacity for the $500 million in outstanding advances as well as approximately $454 million in additional borrowing capacity. The deposited securities and commercial mortgage loans are included in the Company’s condensed consolidated statements of financial position within fixed maturity securities and mortgage loans on real estate, net of allowance, respectively. FHLB outstanding advances as of June 30, 2020 are shown below (in thousands, except percentages): Principal Amount Interest Rate Maturity Date At June 30, 2020 FHLB advance, fixed rate $ 250,000 0.25 % 10/13/2020 FHLB advance, fixed rate 250,000 0.38 % 4/28/2021 Guarantees American National has guaranteed bank loans for customers of a third-party marketing operation. The bank loans are used to fund premium payments on life insurance policies issued by American National. The loans are secured by the cash values of the life insurance policies. If the customer were to default on a bank loan, American National would be obligated to pay off the loan. As the cash values of the life insurance policies always equal or exceed the balance of the loans, management does not foresee any loss on these guarantees. The total amount of the guarantees outstanding as of June 30, 2020, was approximately $121,379,000, while the total cash value of the related life insurance policies was approximately $141,054,000. Litigation American National and certain subsidiaries are defendants in various lawsuits concerning alleged breaches of contracts, various employment matters, allegedly deceptive insurance sales and marketing practices, and miscellaneous other causes of action arising in the ordinary course of operations. Certain of these lawsuits include claims for compensatory and punitive damages. We provide accruals for these items to the extent we deem the losses probable and reasonably estimable. After reviewing these matters with legal counsel, based upon information presently available, management is of the opinion that the ultimate resultant liability, if any, would not have a material adverse effect on American National’s condensed consolidated financial position, liquidity or results of operations; however, assessing the eventual outcome of litigation necessarily involves forward-looking speculation as to judgments to be made by judges, juries and appellate courts in the future. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | American National has entered into recurring transactions and agreements with certain related parties. These include mortgage loans, management contracts, agency commission contracts, marketing agreements, health insurance contracts, and legal services. The impact on the condensed consolidated financial statements of significant related party transactions is shown below (in thousands): Dollar Amount of Transactions Financial Statement Line Impacted Three months ended June 30, Six months ended June 30, Amount due to (from) American National Related Party 2020 2019 2020 2019 June 30, 2020 December 31, 2019 Gal-Tex Hotel Corporation Mortgage loan on real estate $ — $ 145 $ — $ 576 $ — $ — Gal-Tex Hotel Corporation Net investment income — 1 — 9 — — Greer, Herz & Adams, LLP Other operating expenses 3,251 3,007 7,094 5,896 (497) (519) Mortgage Loans to Gal-Tex Hotel Corporation (“Gal-Tex”) : American National held a first mortgage loan which originated in 1999, with an interest rate of 7.25% and final maturity date of April 1, 2019 issued to a subsidiary of Gal-Tex, which was collateralized by a hotel property in San Antonio, Texas. This loan has been paid in full. As of June 30, 2020, the Moody Foundation owns 34.0% of Gal-Tex and 22.75% of American National, and the Libbie Shearn Moody Trust owns 50.2% of Gal-Tex and 37.0% of American National. On July 1, 2020, the Company completed a holding company reorganization, at that time, American National became a wholly owned subsidiary of American National Group, Inc. For additional details see Note 18, Subsequent Events, of the Notes to the Unaudited Condensed Consolidated Financial Statements. Transactions with Greer, Herz & Adams, LLP : Irwin M. Herz, Jr. is a member of the Board of Directors of American National Group, Inc. and certain of its subsidiaries, and a Partner with Greer, Herz & Adams, LLP, which serves as American National’s General Counsel. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 1, 2020, American National Insurance Company, a Texas insurance company (“ANICO”), completed its previously announced holding company reorganization pursuant to the Agreement and Plan of Merger dated February 11, 2020 (the “Reorganization Agreement”), among ANICO, American National Group, Inc., a Delaware corporation (“ANAT”), and AN MergerCo, Inc., a Texas corporation (“MergerCo”). The Reorganization Agreement provided for the merger of ANICO with and into MergerCo (the “Merger”), with ANICO surviving the Merger as a wholly owned subsidiary of ANAT, and the automatic conversion of each share of the common stock, par value $1.00 per share, of ANICO issued and outstanding immediately prior to the effective time of the Merger (“ANICO Stock”), into one duly issued, fully paid and non-assessable share of the common stock, par value $0.01 per share, of ANAT (“ANAT Stock”) (collectively with the other transactions contemplated by the Reorganization Agreement, the “Reorganization”). As a result of the Reorganization, ANAT replaced ANICO as the publicly held company and is now listed on the NASDAQ exchange under the symbol “ANAT,” the same ticker symbol previously used by American National Insurance Company. The directors and officers of ANICO just prior to the reorganization are now serving as directors and officers of ANAT. There is no change in the ultimate ownership of the organization and business operations will continue from our current office locations and companies. This reorganization will have no effect on our agents or policyholders. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Practices (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The condensed consolidated financial statements and notes thereto have been prepared in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) and are reported in U.S. currency. |
Consolidation | American National consolidates entities that are wholly-owned and those in which American National owns less than 100% but controls the voting rights, as well as variable interest entities in which American National is the primary beneficiary. Intercompany balances and transactions with consolidated entities have been eliminated. Investments in unconsolidated affiliates are accounted for using the equity method of accounting. |
Reclassification | Certain amounts in prior years have been reclassified to conform to current year presentation. |
Use of Estimates | The preparation of the condensed consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the reported consolidated financial statement balances. Actual results could differ from those estimates. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards Standard Description Effective Date and Method of Adoption Impact on Financial Statements ASU 2016-13 The new standard significantly changes how entities measure credit losses for most financial assets, reinsurance recoverables and certain other instruments that are not measured at fair value through net income. The guidance replaces the current “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. The measurement of credit losses for available-for-sale debt securities measured at fair value is not affected except that credit losses recognized are limited to the amount by which the fair value is below amortized cost, and the credit loss is recognized through a valuation allowance. Previously, the credit loss adjustments for available-for-sale debt securities were recognized through a direct write down of the investment under the other-than-temporary impairment model. The standard also requires additional disclosures. The Company adopted this standard on its required effective date of January 1, 2020 using a modified retrospective transition. Adoption of this guidance resulted in an allowance for credit losses primarily on the commercial mortgage loans and related off-balance sheet unfunded loan commitments, held-to-maturity bonds and reinsurance recoverables. The Company recorded a cumulative effect adjustment to retained earnings of $33.5 million, net of tax, which reduced stockholders' equity. The impact is attributable to a $42.4 million allowance for credit losses on the aforementioned financial assets. See table below for additional detail. As of January 1, 2020, changes related to the adoption of ASU 2016-13 Pre-ASC 326 Adoption Adjustment to Adopt ASC 326 Balance as of January 1, 2020 Assets: Allowance for credit losses Fixed maturity, bonds held-to-maturity, at amortized cost $ — $ (21,664) $ (21,664) Mortgage loans on real estate (19,160) (11,224) (30,384) Reinsurance recoverables (8,220) (7,920) (16,140) Liabilities: Allowance for credit losses Other policyholder funds — 1,526 1,526 Other liabilities — (3,126) (3,126) Total $ (27,380) $ (42,408) $ (69,788) Future Adoption of New Accounting Standards — The FASB issued the following accounting guidance relevant to American National: Standard Description Effective Date and Method of Adoption Impact on Financial Statements ASU 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts The guidance will improve the timeliness of recognizing changes in the liability for future policy benefits for traditional and limited payment long-duration contracts and will modify the rate used to discount future cash flows. The guidance will also simplify the accounting for certain market-based options or guarantees associated with deposit (or account balance) contracts (market risk benefits), simplify the amortization of deferred acquisition costs and add significant qualitative and quantitative disclosures. This standard will become effective for the Company for all annual and interim periods beginning January 1, 2022. The FASB met on June 10, 2020 and proposed delaying the effective date of ASU 2018-12 until January 1, 2023. This proposal is pending final adoption. The guidance allows for one of two adoption methods, a modified retrospective transition or a full retrospective transition except for the changes to accounting for market risk benefits which will require a retrospective transition. We are currently evaluating the impact of the standard to the Company. Based on the nature of the standard, we expect the impact to be material to our Condensed Consolidated Financial Statements and Notes to the Condensed Consolidated Financial Statements ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans The new standard modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The guidance removes certain defined benefit pension or other postretirement plan disclosures that are no longer cost beneficial, clarifies the specific requirements for each disclosure and adds disclosure requirements. This standard will become effective for the annual period ending December 31, 2020 using a retrospective transition. The Company does not expect the adoption of this standard to have a material impact on our Condensed Consolidated Financial Statements or Notes to the Condensed Consolidated Financial Statements. ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes The amendments simplify the accounting for income taxes by removing certain exceptions in the existing guidance including those related to intra-period tax allocation when there is a loss from continuing operations and income or a gain from other items. The amendments require that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax as well as other minor changes. This standard will become effective for the Company for all annual and interim periods beginning January 1, 2021. The new guidance specifies which amendments should be applied prospectively, retrospective to all periods presented or on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. The Company does not expect the adoption of this standard to have a material impact on our Condensed Consolidated Financial Statements or Notes to the Consolidated Financial Statements. ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in this update provide optional expedients and exceptions for applying Generally Accepted Accounting Principles ("GAAP") to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The guidance only applies to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this update are effective for all entities as of March 12, 2020 and will sunset through December 31, 2022, at which time the application of exceptions and optional expedients will no longer be permitted. We are evaluating our current exposure to LIBOR and the impact this standard would have on the Consolidated Financial Statements. We expect to have our evaluation of exposure completed by December 31, 2020. |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Adoption of ASU 2016-13 | As of January 1, 2020, changes related to the adoption of ASU 2016-13 Pre-ASC 326 Adoption Adjustment to Adopt ASC 326 Balance as of January 1, 2020 Assets: Allowance for credit losses Fixed maturity, bonds held-to-maturity, at amortized cost $ — $ (21,664) $ (21,664) Mortgage loans on real estate (19,160) (11,224) (30,384) Reinsurance recoverables (8,220) (7,920) (16,140) Liabilities: Allowance for credit losses Other policyholder funds — 1,526 1,526 Other liabilities — (3,126) (3,126) Total $ (27,380) $ (42,408) $ (69,788) |
Investment in Securities (Table
Investment in Securities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Securities | The cost or amortized cost and fair value of investments in securities are shown below (in thousands): June 30, 2020 Cost or Gross Gross Allowance for Credit Losses Fair Value Fixed maturity, bonds held-to-maturity U.S. states and political subdivisions $ 127,591 $ 4,208 $ — $ — $ 131,799 Foreign governments 3,880 481 — — 4,361 Corporate debt securities 7,754,873 498,531 (33,883) (19,882) 8,199,639 Residential mortgage-backed securities 164,903 6,604 (1,181) — 170,326 Collateralized debt securities 209,572 1,236 (685) (2,532) 207,591 Total bonds held-to-maturity 8,260,819 511,060 (35,749) (22,414) 8,713,716 Fixed maturity, bonds available-for-sale U.S. treasury and government 29,132 676 — — 29,808 U.S. states and political subdivisions 1,025,297 67,074 — — 1,092,371 Foreign governments 14,988 1,782 — — 16,770 Corporate debt securities 5,653,025 362,094 (38,038) (3,824) 5,973,257 Residential mortgage-backed securities 29,460 1,231 (23) (211) 30,457 Collateralized debt securities 27,214 751 (77) (80) 27,808 Total bonds available-for-sale 6,779,116 433,608 (38,138) (4,115) 7,170,471 Total investments in fixed maturity $ 15,039,935 $ 944,668 $ (73,887) $ (26,529) $ 15,884,187 December 31, 2019 Cost or Gross Gross Allowance for Credit Losses Fair Value Fixed maturity, bonds held-to-maturity U.S. states and political subdivisions $ 165,109 $ 5,005 $ — $ — $ 170,114 Foreign governments 3,907 442 — — 4,349 Corporate debt securities 8,099,098 332,410 (6,539) — 8,424,969 Residential mortgage-backed securities 237,516 6,460 (1,148) — 242,828 Collateralized debt securities 125,631 1,146 (347) — 126,430 Total bonds held-to-maturity 8,631,261 345,463 (8,034) — 8,968,690 Fixed maturity, bonds available-for-sale U.S. treasury and government 29,505 441 (5) — 29,941 U.S. states and political subdivisions 1,030,309 47,865 (9) — 1,078,165 Foreign governments 5,000 1,287 — — 6,287 Corporate debt securities 5,338,007 251,408 (12,795) — 5,576,620 Residential mortgage-backed securities 23,405 739 (201) — 23,943 Collateralized debt securities 9,444 686 (1) — 10,129 Total bonds available-for-sale 6,435,670 302,426 (13,011) — 6,725,085 Total investments in fixed maturity $ 15,066,931 $ 647,889 $ (21,045) $ — $ 15,693,775 |
Maturities of Investments | The amortized cost and fair value, by contractual maturity, of fixed maturity securities are shown below (in thousands): June 30, 2020 Bonds Held-to-Maturity Bonds Available-for-Sale Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 919,447 $ 932,495 $ 486,900 $ 493,348 Due after one year through five years 3,055,241 3,222,507 3,214,261 3,369,646 Due after five years through ten years 3,253,320 3,486,960 2,275,574 2,447,411 Due after ten years 1,032,811 1,071,754 802,381 860,066 Total $ 8,260,819 $ 8,713,716 $ 6,779,116 $ 7,170,471 |
Proceeds from Available for Sale Securities and Realized Gain Loss | Proceeds from sales of bonds available-for-sale, with the related gross realized gains and losses, are shown below (in thousands): Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Proceeds from sales of fixed maturity, bonds available-for-sale $ 85,000 $ — $ 131,513 $ 285 Gross realized gains — — 412 — Gross realized losses — — (4,072) (23) |
Change in Net Unrealized Gains (Losses) on Securities | The components of the change in net unrealized gains (losses) on debt securities are shown below (in thousands): Six months ended June 30, 2020 2019 Bonds available-for-sale: change in unrealized gains $ 106,055 $ 279,618 Adjustments for Deferred policy acquisition costs (21,240) (34,853) Participating policyholders’ interest (5,052) (12,811) Deferred federal income tax expense (18,390) (48,080) Change in net unrealized gains (losses) on debt securities, net of tax $ 61,373 $ 183,874 The components of the change in net gains (losses) on equity securities are shown below (in thousands): Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Unrealized gains (losses) on equity securities $ 298,793 $ 51,933 $ (34,808) $ 254,955 Net gains on equity securities sold 32 15,127 1,058 18,482 Net gains (losses) on equity securities $ 298,825 $ 67,060 $ (33,750) $ 273,437 |
Gross Unrealized Losses and Fair Value of Investment Securities | The gross unrealized losses and fair value of bonds available-for-sale, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position due to noncredit related factors at June 30, 2020 are shown below (in thousands, except number of issues): June 30, 2020 Less than 12 months 12 months or more Total Number of issues Gross Fair Number of issues Gross Fair Number of issues Gross Fair Fixed maturity, bonds available-for-sale Corporate debt securities 75 $ (25,259) $ 479,455 11 $ (12,779) $ 53,086 84 $ (38,038) $ 532,541 Residential mortgage-backed securities — — — 3 (23) 11,169 3 (23) 11,169 Collateralized debt securities 2 (74) 9,411 1 (3) 156 3 (77) 9,567 Total 77 $ (25,333) $ 488,866 15 $ (12,805) $ 64,411 90 $ (38,138) $ 553,277 December 31, 2019 Less than 12 months 12 months or more Total Number of issues Gross Fair Number of issues Gross Fair Number of issues Gross Fair Fixed maturity, bonds available-for-sale U.S. treasury and government — $ — $ — 5 $ (5) $ 8,299 5 $ (5) $ 8,299 U.S. states and political subdivisions 2 (9) 1,733 — — — 2 (9) 1,733 Corporate debt securities 22 (5,257) 94,942 25 (7,538) 132,626 47 (12,795) 227,568 Residential mortgage-backed securities 1 (9) 10,169 3 (192) 722 4 (201) 10,891 Collateralized debt securities 1 (1) 159 — — — 1 (1) 159 Total 26 $ (5,276) $ 107,003 33 $ (7,735) $ 141,647 59 $ (13,011) $ 248,650 |
Equity Securities by Market Sector Distribution | Equity securities by market sector distribution are shown below, based on fair value: June 30, 2020 December 31, 2019 Consumer goods 19.3 % 18.9 % Energy and utilities 5.7 8.0 Finance 21.4 18.0 Healthcare 15.7 13.0 Industrials 5.7 7.6 Information technology 27.7 25.0 Other 4.5 9.5 Total 100.0 % 100.0 % |
Rollforward of the Allowance for Credit Losses for Held-to-maturity Securities | The rollforward of the allowance for credit losses for bonds held-to-maturity is shown below (in thousands): Foreign governments Corporate debt securities Collateralized debt securities Residential mortgage backed securities Total Allowance for credit losses Cumulative adjustment at January 1, 2020 $ 4 $ (18,563) $ (2,968) $ (137) $ (21,664) Provision 1 162 (18) 134 279 Ending balance at March 31, 2020 5 (18,401) (2,986) (3) (21,385) Provision (5) (1,481) 454 3 (1,029) Ending balance at June 30, 2020 $ — $ (19,882) $ (2,532) $ — $ (22,414) |
Rollforward of the Allowance for Credit Losses for Available-for-sale Securities | The rollforward of the allowance for credit losses for available-for-sale debt securities is shown below (in thousands): Corporate debt securities Collateralized debt securities Residential mortgage backed securities Total Allowance for credit losses Beginning balance at January 1, 2020 $ — $ — $ — $ — Provision (12,499) (236) (130) (12,865) Ending balance at March 31, 2020 (12,499) (236) (130) (12,865) Provision 8,675 156 (81) 8,750 Ending balance at June 30, 2020 $ (3,824) $ (80) $ (211) $ (4,115) |
Credit Quality Indicators of Held-to-maturity Debt Securities | The credit quality indicators for the amortized cost of bonds held-to-maturity as of June 30, 2020 are shown below (in thousands): Amortized cost of bonds held-to-maturity by credit rating Fixed maturity, bonds held-to-maturity AAA AA A BBB BB and below Total U.S. state and political subdivisions $ 46,407 $ 64,577 $ 11,340 $ — $ 5,267 $ 127,591 Foreign governments — 2,842 1,038 — — 3,880 Corporate debt securities 1,947 283,746 3,272,723 4,015,284 181,173 7,754,873 Residential mortgage backed securities 73,981 — — — 90,922 164,903 Collateralized debt securities — — 166,682 15,743 27,147 209,572 Total $ 122,335 $ 351,165 $ 3,451,783 $ 4,031,027 $ 304,509 $ 8,260,819 |
Mortgage Loans (Tables)
Mortgage Loans (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Distribution Based on Carrying Amount of Mortgage Loans by Location | The distribution based on carrying amount of mortgage loans by location is as follows (in thousands, except percentages): June 30, 2020 December 31, 2019 East North Central $ 711,602 13.7 % $ 667,150 13.1 % East South Central 145,675 2.8 144,887 2.8 Mountain 1,227,945 23.7 1,200,434 23.6 Pacific 896,268 17.3 852,574 16.7 South Atlantic 618,061 11.9 621,875 12.2 West South Central 1,252,397 24.2 1,272,522 25.0 Other 324,563 6.4 337,575 6.6 Total $ 5,176,511 100.0 % $ 5,097,017 100.0 % |
Age Analysis of Past Due Loans | The age analysis of past due loans is shown below (in thousands, except percentages): 30-59 Days Past Due 60-89 Days Past Due More Than 90 Days Past Due Total Current Total June 30, 2020 Amount Percent Apartment $ 40,095 $ — $ — $ 40,095 $ 408,752 $ 448,847 8.5 % Hotel 212,708 137,195 54,855 404,758 497,488 902,246 17.1 Industrial — — 9,259 9,259 718,521 727,780 13.7 Office 58,352 12,759 17,392 88,503 1,478,233 1,566,736 29.6 Retail 82,051 120,645 4,999 207,695 657,861 865,556 16.4 Other 10,489 214,865 29,257 254,611 522,215 776,826 14.7 Total $ 403,695 $ 485,464 $ 115,762 $ 1,004,921 $ 4,283,070 $ 5,287,991 100.0 % Allowance for credit losses (111,480) Total, net of allowance $ 5,176,511 December 31, 2019 Apartment $ — $ — $ — $ — $ 416,865 $ 416,865 8.1 % Hotel — — — — 901,044 901,044 17.6 Industrial — 13,076 4,091 17,167 589,721 606,888 11.9 Office 22,870 — — 22,870 1,587,591 1,610,461 31.5 Retail — — 4,122 4,122 843,467 847,589 16.6 Other 11,759 — — 11,759 721,571 733,330 14.3 Total $ 34,629 $ 13,076 $ 8,213 $ 55,918 $ 5,060,259 $ 5,116,177 100.0 % Allowance for loan losses (19,160) Total, net of allowance $ 5,097,017 The loans in the course of modification are included in the aging table based upon their original terms as follows (in thousands): 30-59 Days Past Due 60-89 Days Past Due More Than 90 Days Past Due Total Current Total Amount June 30, 2020 $ 343,000 $ 461,000 $ 99,000 $ 903,000 $ 305,000 $ 1,208,000 |
Schedule of Troubled Debt Restructuring Mortgage Loan Information | Troubled debt restructuring mortgage loan information is as follows (in thousands, except number of loans): Six months ended June 30, 2020 2019 Number of Loans Recorded Investment Pre- Modification Recorded Investment Post Modification Number of Loans Recorded Investment Pre- Modification Recorded Investment Post Modification Office — $ — $ — 1 $ 9,331 $ 9,331 Retail 3 22,161 22,161 2 40,249 40,249 Industrial — — — 4 20,595 20,595 Hotel 11 341,556 341,556 — — — Other 2 5,776 5,776 — — — Total 16 $ 369,493 $ 369,493 7 $ 70,175 $ 70,175 |
Change in Allowance for Credit Losses in Mortgage Loans | The rollforward of the allowance for credit losses for mortgage loans is shown below (in thousands): Commercial Mortgage Loans Beginning balance at January 1, 2020 $ (19,160) Cumulative adjustment at January 1, 2020 (11,216) Provision (29,069) Balance at March 31, 2020 $ (59,445) Provision (52,035) Balance at June 30, 2020 $ (111,480) The asset and allowance balances for credit losses for mortgage loans by property-type are shown below (in thousands): June 30, 2020 Asset Balance Allowance Apartment $ 445,579 $ (3,268) Hotel 857,142 (45,104) Industrial 724,195 (3,586) Office 1,543,211 (23,525) Retail 852,869 (12,686) Other 753,515 (23,311) Total $ 5,176,511 $ (111,480) |
Credit Quality Indicators for Amortized Cost of Mortgage Loans by Year | The amortized cost of mortgage loans by year of origination by property-type are shown below (in thousands): Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Total Apartment $ — $ 108,698 $ 43,457 $ 190,907 $ 68,859 $ 37,469 $ 449,390 Hotel — 57,560 204,054 219,527 148,026 273,845 903,012 Industrial 123,102 174,401 130,090 52,007 124,923 123,257 727,780 Office — 56,068 193,000 347,383 314,239 656,046 1,566,736 Retail 42,784 41,190 103,201 80,943 223,764 373,674 865,556 Other 31,206 86,718 142,940 89,367 238,411 186,875 775,517 Total $ 197,092 $ 524,635 $ 816,742 $ 980,134 $ 1,118,222 $ 1,651,166 $ 5,287,991 Allowance for loan losses (111,480) Total, net of allowance $ 5,176,511 |
Real Estate and Other Investm_2
Real Estate and Other Investments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Real Estate [Abstract] | |
Investment Real Estate by Property-Type and Geographic Distribution | Investment real estate by property-type and geographic distribution are as follows (in thousands, except percentages): June 30, 2020 December 31, 2019 Industrial $ 68,315 12.5 % $ 68,809 12.5 % Office 219,108 40.2 219,490 39.8 Retail 213,317 39.2 215,800 39.1 Other 43,864 8.1 47,120 8.6 Total $ 544,604 100.0 % $ 551,219 100.0 % June 30, 2020 December 31, 2019 East North Central $ 32,572 6.0 % $ 32,539 5.9 % East South Central 33,466 6.2 34,248 6.2 Mountain 66,942 12.3 68,498 12.4 Pacific 39,425 7.2 40,462 7.3 South Atlantic 82,682 15.2 83,552 15.2 West South Central 272,551 50.0 278,833 50.6 Other 16,966 3.1 13,087 2.4 Total $ 544,604 100.0 % $ 551,219 100.0 % |
Assets and Liabilities Related to VIEs | The assets and liabilities relating to the VIEs included in the condensed consolidated financial statements are as follows (in thousands): June 30, 2020 December 31, 2019 Investment real estate $ 133,548 $ 134,534 Short-term investments 501 500 Cash and cash equivalents 8,681 11,155 Other receivables 2,503 3,673 Other assets 11,383 15,355 Total assets of consolidated VIEs $ 156,616 $ 165,217 Notes payable $ 155,871 $ 157,997 Other liabilities 4,616 9,731 Total liabilities of consolidated VIEs $ 160,487 $ 167,728 |
Schedule of Long-term Notes Payable of Consolidated VIEs | The total long-term notes payable of the consolidated VIEs consists of the following (in thousands): Interest rate Maturity June 30, 2020 December 31, 2019 LIBOR 2021 $ 10,828 $ 10,836 4% fixed 2022 80,152 81,709 4.18% fixed 2024 64,891 65,452 Total $ 155,871 $ 157,997 |
Carrying Amount and Maximum Exposure to Loss Related to VIEs | The carrying amount and maximum exposure to loss relating to unconsolidated VIEs follows (in thousands): June 30, 2020 December 31, 2019 Carrying Maximum Carrying Maximum Investment in unconsolidated affiliates $ 342,967 $ 342,967 $ 332,742 $ 332,742 Mortgage loans 696,645 696,545 657,528 657,528 Accrued investment income 3,276 3,276 2,198 2,198 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments Reported in Financial Position | The detail of derivative instruments is shown below (in thousands, except number of instruments): Derivatives Not Designated Location in the Condensed Consolidated Statements of Financial Position June 30, 2020 December 31, 2019 Number of Notional Estimated Number of Notional Estimated Equity-indexed options Other invested assets 459 $ 2,693,100 $ 191,486 473 $ 2,654,600 $ 256,005 Equity-indexed embedded derivative Policyholders’ account balances 105,964 2,561,102 675,970 101,950 2,527,205 731,552 |
Schedule of Derivative Instruments Reported in Statements of Operations | Derivatives Not Designated Location in the Condensed Consolidated Statements of Operations Gains (Losses) Recognized in Income on Derivatives Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Equity-indexed options Net investment income $ 67,157 $ 23,125 $ (40,938) $ 89,610 Equity-indexed embedded derivative Interest credited to policyholders’ account balances (62,491) (36,255) 27,090 (94,411) |
Schedule of Information Regarding Company's Exposure to Credit Loss on the Options Holds | Information regarding the Company’s exposure to credit loss on the options it holds is presented below (in thousands): June 30, 2020 Counterparty Moody/S&P Options Fair Collateral Held in Cash Collateral Held in Invested Assets Total Collateral Amounts used to Offset Exposure Excess Collateral Exposure Barclays Baa2/BBB $ 36,375 $ 17,373 $ 18,100 $ 35,473 $ 35,473 $ — $ 902 Credit Suisse Baa2/BBB+ 4,946 4,470 — 4,470 4,470 — 476 Goldman-Sachs A3/BBB+ 990 910 — 910 910 — 80 ING Baa1/A- 24,305 14,040 10,300 24,340 24,305 35 — Morgan Stanley A3/BBB+ 16,967 8,256 5,700 13,956 13,956 — 3,011 NATIXIS* A1/A+ 26,834 26,570 — 26,570 26,570 — 264 SunTrust A3/A- 47,570 34,780 11,000 45,780 45,780 — 1,790 Wells Fargo A2/A- 33,499 22,210 9,900 32,110 32,110 — 1,389 Total $ 191,486 $ 128,609 $ 55,000 $ 183,609 $ 183,574 $ 35 $ 7,912 December 31, 2019 Counterparty Moody/S&P Options Fair Collateral Held in Cash Collateral Held in Invested Assets Total Collateral Amounts used to Offset Exposure Excess Collateral Exposure Barclays Baa3/BBB $ 54,583 $ 27,343 $ 28,000 $ 55,343 $ 54,583 $ 760 $ — Credit Suisse Baa2/BBB+ 7,117 7,390 — 7,390 7,009 381 108 Goldman-Sachs A3/BBB+ 1,053 930 — 930 930 — 123 ING Baa1/A- 30,330 14,940 16,000 30,940 30,330 610 — Morgan Stanley A3/BBB+ 34,988 25,926 9,000 34,926 34,926 — 62 NATIXIS* A1/A+ 29,918 30,200 — 30,200 29,918 282 — SunTrust A3/A- 60,360 41,720 17,000 58,720 58,645 75 1,715 Wells Fargo A2/A- 37,656 24,110 15,000 39,110 37,656 1,454 — Total $ 256,005 $ 172,559 $ 85,000 $ 257,559 $ 253,997 $ 3,562 $ 2,008 * Collateral is prohibited from being held in invested assets |
Net Investment Income and Rea_2
Net Investment Income and Realized Investment Gains (Losses) (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Net Investment Income | Net investment income is shown below (in thousands): Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Bonds $ 141,762 $ 150,907 $ 287,881 $ 298,464 Equity securities 7,919 9,015 15,766 17,307 Mortgage loans 60,445 63,158 119,773 126,357 Real estate 1,734 4,508 3,447 6,363 Equity-indexed options 67,157 23,125 (40,938) 89,610 Other invested assets 8,331 7,017 16,703 11,975 Total $ 287,348 $ 257,730 $ 402,632 $ 550,076 |
Summary of Realized Investment Gains (Losses) | Net realized investment gains (losses) are shown below (in thousands): Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Bonds $ 3,952 $ 2,611 $ 9,430 $ 5,213 Mortgage loans — (544) — (89) Real estate (7) (2,728) (1,314) (2,886) Other invested assets (6) (2,276) (29) (2,228) Total $ 3,939 $ (2,937) $ 8,087 $ 10 Net realized investment gain (losses) by transaction type are shown below (in thousands): Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Sales $ — $ (583) $ (3,618) $ (763) Calls 4,025 2,274 13,145 4,928 Paydowns (73) 319 (54) 288 Impairments — (4,700) (1,276) (4,700) Loss allowance — (257) — 260 Others (13) 10 (110) (3) Total $ 3,939 $ (2,937) $ 8,087 $ 10 Other-than-temporary impairment losses are shown below (in thousands): Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Bonds $ — $ (6,968) $ — $ (6,968) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Carrying Amount and Fair Value of Financial Instruments | The carrying amount and fair value of financial instruments are shown below (in thousands): June 30, 2020 December 31, 2019 Carrying Fair Value Carrying Fair Value Financial assets Fixed maturity, bonds held-to-maturity $ 8,238,405 $ 8,713,716 $ 8,631,261 $ 8,968,690 Fixed maturity, bonds available-for-sale 7,170,471 7,170,471 6,725,085 6,725,085 Equity securities 1,714,264 1,714,264 1,700,960 1,700,960 Equity-indexed options 191,486 191,486 256,005 256,005 Mortgage loans on real estate, net of allowance 5,176,511 5,438,373 5,097,017 5,309,005 Policy loans 377,826 377,826 379,657 379,657 Short-term investments 501,087 501,087 425,321 425,321 Separate account assets ($1,005,889 and $1,049,938 included in fair value hierarchy) 1,032,956 1,032,956 1,073,891 1,073,891 Separately managed accounts 51,537 51,537 50,503 50,503 Total financial assets $ 24,454,543 $ 25,191,716 $ 24,339,700 $ 24,889,117 Financial liabilities Investment contracts $ 10,185,122 $ 10,185,122 $ 10,254,959 $ 10,254,959 Embedded derivative liability for equity-indexed contracts 675,970 675,970 731,552 731,552 Notes payable 155,871 155,871 157,997 157,997 Federal Home Loan Bank advance 500,000 500,000 — — Separate account liabilities ($1,005,889 and $1,049,938 included in fair value hierarchy) 1,032,956 1,032,956 1,073,891 1,073,891 Total financial liabilities $ 12,549,919 $ 12,549,919 $ 12,218,399 $ 12,218,399 |
Schedule of Significant Unobservable Inputs Used to Calculate Level 3 Fair Value of Embedded Derivatives within Policyholder Contract Deposits | Shown below are the significant unobservable inputs used to calculate the Level 3 fair value of the embedded derivatives within policyholder contract deposits (in millions, except range percentages): Fair Value Range June 30, 2020 December 31, 2019 Unobservable Input June 30, 2020 December 31, 2019 Indexed Annuities $ 659.2 $ 706.5 Lapse Rate 1-70% 1-70% Mortality Multiplier 90-100% 90-100% Equity Volatility 16-65% 11-46% Indexed Life 16.7 25.1 Equity Volatility 16-65% 11-46% |
Quantitative Disclosures Regarding Fair Value Hierarchy Measurements | The fair value hierarchy measurements of the financial instruments are shown below (in thousands): Assets and Liabilities Carried at Fair Value by Hierarchy Level as of June 30, 2020 Total Level 1 Level 2 Level 3 Financial assets Fixed maturity, bonds available-for-sale U.S. treasury and government $ 29,808 $ — $ 29,808 $ — U.S. states and political subdivisions 1,092,371 — 1,092,371 — Foreign governments 16,770 — 16,770 — Corporate debt securities 5,973,257 — 5,869,579 103,678 Residential mortgage-backed securities 30,457 — 30,457 — Collateralized debt securities 27,808 — 27,808 — Total bonds available-for-sale 7,170,471 — 7,066,793 103,678 Equity securities Common stock 1,696,311 1,696,159 — 152 Preferred stock 17,953 17,492 — 461 Total equity securities 1,714,264 1,713,651 — 613 Options 191,486 — — 191,486 Short-term investments 501,087 — 501,087 — Separate account assets 1,005,889 154,144 851,745 — Separately managed accounts 51,537 — — 51,537 Total financial assets $ 10,634,734 $ 1,867,795 $ 8,419,625 $ 347,314 Financial liabilities Embedded derivative for equity-indexed contracts $ 675,970 $ — $ — $ 675,970 Separate account liabilities 1,005,889 154,144 851,745 — Total financial liabilities $ 1,681,859 $ 154,144 $ 851,745 $ 675,970 Assets and Liabilities Carried at Fair Value by Hierarchy Level as of December 31, 2019 Total Level 1 Level 2 Level 3 Financial assets Fixed maturity, bonds available-for-sale U.S. treasury and government $ 29,941 $ — $ 29,941 $ — U.S. states and political subdivisions 1,078,165 — 1,078,165 — Foreign governments 6,287 — 6,287 — Corporate debt securities 5,576,620 — 5,531,776 44,844 Residential mortgage-backed securities 23,943 — 23,943 — Collateralized debt securities 10,129 — 10,129 — Total bonds available-for-sale 6,725,085 — 6,680,241 44,844 Equity securities Common stock 1,682,149 1,681,686 — 463 Preferred stock 18,811 18,811 — — Total equity securities 1,700,960 1,700,497 — 463 Options 256,005 — — 256,005 Short-term investments 425,321 — 425,321 — Separate account assets 1,049,938 271,575 778,363 — Separately managed accounts 50,503 — — 50,503 Total financial assets $ 10,207,812 $ 1,972,072 $ 7,883,925 $ 351,815 Financial liabilities Embedded derivative for equity-indexed contracts $ 731,552 $ — $ — $ 731,552 Separate account liabilities 1,049,938 271,575 778,363 — Total financial liabilities $ 1,781,490 $ 271,575 $ 778,363 $ 731,552 The carrying value and estimated fair value of financial instruments not recorded at fair value on a recurring basis are shown below (in thousands): June 30, 2020 FV Hierarchy Level Carrying Fair Value Financial assets Fixed maturity, bonds held-to-maturity U.S. states and political subdivisions Level 2 $ 127,592 $ 131,799 Foreign governments Level 2 3,880 4,361 Corporate debt securities Level 2 7,734,990 8,199,640 Residential mortgage-backed securities Level 2 207,039 170,326 Collateralized debt securities Level 2 164,904 207,590 Total fixed maturity, bonds held-to-maturity 8,238,405 8,713,716 Mortgage loans on real estate, net of allowance Level 3 5,176,511 5,438,373 Policy loans Level 3 377,826 377,826 Total financial assets $ 13,792,742 $ 14,529,915 Financial liabilities Investment contracts Level 3 $ 10,185,122 $ 10,185,122 Notes payable Level 3 155,871 155,871 Federal Home Loan Bank advance Level 3 500,000 500,000 Total financial liabilities $ 10,840,993 $ 10,840,993 December 31, 2019 FV Hierarchy Level Carrying Fair Value Financial assets Fixed maturity, bonds held-to-maturity U.S. states and political subdivisions Level 2 $ 165,109 $ 170,114 Foreign governments Level 2 3,907 4,349 Corporate debt securities Level 2 8,099,098 8,424,969 Residential mortgage-backed securities Level 2 237,516 242,828 Collateralized debt securities Level 2 125,631 126,430 Total fixed maturity, bonds held-to-maturity 8,631,261 8,968,690 Mortgage loans on real estate, net allowance Level 3 5,097,017 5,309,005 Policy loans Level 3 379,657 379,657 Total financial assets $ 14,107,935 $ 14,657,352 Financial liabilities Investment contracts Level 3 $ 10,254,959 $ 10,254,959 Notes payable Level 3 157,997 157,997 Total financial liabilities $ 10,412,956 $ 10,412,956 |
Financial Instruments Measured at Fair Value on Recurring Basis Using (Level 3) Inputs | For financial instruments measured at fair value on a recurring basis using Level 3 inputs during the period, a reconciliation of the beginning and ending balances is shown below (in thousands): Level 3 Three months ended June 30, 2020 Six months ended June 30, 2020 Assets Liability Assets Liability Investment Equity-Indexed Separately Managed Accounts Embedded Investment Equity-Indexed Separately Managed Accounts Embedded Beginning balance $ 53,853 $ 125,988 $ 50,489 $ 630,952 $ 45,307 $ 256,005 $ 50,503 $ 731,552 Net gain (loss) for derivatives included in net investment income — 67,157 — — — (40,938) — — Net change included in interest credited — — — 62,491 — — — (27,090) Net fair value change included in other comprehensive income — — (4,046) — — — (4,060) — Purchases, sales and settlements or maturities Purchases 86,467 24,273 9,042 — 109,169 38,438 9,042 — Sales (36,642) — (3,948) — (50,798) — (3,948) — Settlements or maturities — (25,932) — — — (62,019) — — Premiums less benefits — — — (17,473) — — — (28,492) Ending balance at June 30, 2020 $ 103,678 $ 191,486 $ 51,537 $ 675,970 $ 103,678 $ 191,486 $ 51,537 $ 675,970 Level 3 Three months ended June 30, 2019 Six months ended June 30, 2019 Assets Liability Assets Liability Investment Equity-Indexed Separately Managed Accounts* Embedded Investment Equity-Indexed Separately Managed Accounts* Embedded Beginning balance $ 4,346 $ 216,156 $ 23,254 $ 668,485 $ 4,346 $ 148,006 $ 16,532 $ 596,075 Net gain for derivatives included in net investment income — 23,125 — — — 89,610 — — Net change included in interest credited — — — 36,255 — — — 94,411 Net fair value change included in other comprehensive income — — (11) — — — (2) — Purchases, sales and settlements or maturities Purchases — 21,412 7,412 — — 38,768 14,125 — Settlements or maturities — (29,649) — — — (45,340) — — Premiums less benefits — — — (9,064) — — — 5,190 Ending balance at June 30, 2019 $ 4,346 $ 231,044 $ 30,655 $ 695,676 $ 4,346 $ 231,044 $ 30,655 $ 695,676 * Subsequent to the issuance of the Company's interim condensed consolidated financial statements as of and for the three and six months ended June 30, 2019, the Company's management determined Separately Managed Accounts were omitted from this disclosure. The amounts included in the disclosure tables above now include disclosures for Separately Managed Accounts for all periods presented. |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Policy Acquisition Costs | Deferred policy acquisition costs are shown below (in thousands): Life Annuity Health Property Total Beginning balance at January 1, 2020 $ 852,900 $ 415,380 $ 32,578 $ 122,149 $ 1,423,007 Additions 65,712 22,318 7,583 175,769 271,382 Amortization (46,339) (41,910) (7,543) (169,215) (265,007) Effect of change in unrealized gains on bonds available-for-sale debt (3,918) (17,322) — — (21,240) Net change 15,455 (36,914) 40 6,554 (14,865) Ending balance at June 30, 2020 $ 868,355 $ 378,466 $ 32,618 $ 128,703 $ 1,408,142 |
Liability for Unpaid Claims a_2
Liability for Unpaid Claims and Claim Adjustment Expenses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Insurance [Abstract] | |
Liability for Unpaid Claims and Claim Adjustment Expenses | Information regarding the liability for unpaid claims is shown below (in thousands): Six months ended June 30, 2020 2019 Unpaid claims balance, beginning $ 1,322,837 $ 1,305,225 Less: Reinsurance recoverables 246,447 254,466 Net beginning balance 1,076,390 1,050,759 Incurred related to Current 601,691 591,073 Prior years (33,256) (30,691) Total incurred claims 568,435 560,382 Paid claims related to Current 268,203 272,650 Prior years 267,282 276,738 Total paid claims 535,485 549,388 Net balance 1,109,340 1,061,753 Plus: Reinsurance recoverables 250,378 249,245 Unpaid claims balance, ending $ 1,359,718 $ 1,310,998 |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Effective Income Tax Reconciliation | A reconciliation of the effective tax rate to the statutory federal tax rate is shown below (in thousands, except percentages): Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Amount Rate Amount Rate Amount Rate Amount Rate Income tax expense (benefit) before tax on equity in earnings of unconsolidated affiliates $ 58,008 22.1 % $ 21,819 18.1 % $ (4,686) 23.2 % $ 81,606 18.3 % Tax on equity in earnings of unconsolidated affiliates (2,860) (1.1) 3,526 2.9 438 (2.2) 12,023 2.7 Total expected income tax expense (benefit) at the statutory rate 55,148 21.0 25,345 21.0 (4,248) 21.0 93,629 21.0 Tax-exempt investment income (1,061) (0.4) (1,109) (0.9) (2,088) 10.3 (1,918) (0.4) Dividend exclusion (1,443) (0.5) (860) (0.7) (2,305) 11.4 (1,781) (0.4) Miscellaneous tax credits, net (1,534) (0.6) (3,299) (2.7) (3,929) 19.4 (4,991) (1.1) Low income housing tax credit expense 982 0.4 1,783 1.5 2,756 (13.6) 2,941 0.6 Change in valuation allowance 12 — 165 0.1 124 (0.6) 165 — Other items, net 93 — (77) (0.1) 219 (1.1) 1,280 0.3 Provision (benefit) for federal income taxes $ 52,197 19.9 % $ 21,948 18.2 % $ (9,471) 46.8 % $ 89,325 20.0 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Components of Other Comprehensive Income | The components of and changes in the accumulated other comprehensive income (“AOCI”), and the related tax effects, are shown below (in thousands): Net Unrealized Defined Foreign Accumulated Beginning balance at January 1, 2020 $ 157,851 $ (55,232) $ (3,101) $ 99,518 Amounts reclassified from AOCI (net of tax benefit $448 and expense $959) (1,687) 3,605 — 1,918 Unrealized holding gains arising during the period (net of tax expense $22,284) 83,831 — — 83,831 Unrealized adjustment to DAC (net of tax benefit $4,460) (16,780) — — (16,780) Unrealized gains on investments attributable to participating policyholders’ interest (net of tax benefit $1,061) (3,991) — — (3,991) Foreign currency adjustm ent (net of tax benefit $156) — — (585) (585) Ending balance at June 30, 2020 $ 219,224 $ (51,627) $ (3,686) $ 163,911 Beginning balance at January 1, 2019 $ (42,469) $ (54,236) $ (3,033) $ (99,738) Amounts reclassified from AOCI (net of tax expense $565 and $774) 2,126 2,911 — 5,037 Unrealized holding gains arising during the period (net of tax expense $58,322) 219,402 — — 219,402 Unrealized adjustment to DAC (net of tax benefit $7,320) (27,533) — — (27,533) Unrealized gains on investments attributable to participating policyholders’ interest (net of tax benefit $2,690) (10,121) — — (10,121) Foreign currency adjustment (net of tax benefit $157) — — 590 590 Cumulative effect of changes in accounting 16,166 (16,493) (458) (785) Ending balance at June 30, 2019 $ 157,571 $ (67,818) $ (2,901) $ 86,852 |
Stockholders' Equity and Nonc_2
Stockholders' Equity and Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Common Stock, Amounts Outstanding | The amounts outstanding at the dates indicated are shown below: June 30, 2020 December 31, 2019 Common stock Shares issued 30,832,449 30,832,449 Treasury shares (3,945,249) (3,945,249) Outstanding shares 26,887,200 26,887,200 Restricted shares (10,000) (10,000) Unrestricted outstanding shares 26,877,200 26,877,200 |
Stock-Based Compensation Information | SAR, RS and RSU information for the periods indicated are shown below: SAR RS Shares RSUs Shares Weighted-Average Shares Weighted-Average Units Weighted-Average Outstanding at December 31, 2019 66 $ 110.83 10,000 $ 80.05 8,250 $ 113.19 Granted — — — — — — Exercised — — — — (8,250) 113.19 Forfeited — — — — — — Expired (66) 110.83 — — — — Outstanding at June 30, 2020 — $ — 10,000 $ 80.05 — $ — SAR RS Shares RSUs Weighted-average contractual remaining life (in years) 0 2.67 0 Exercisable shares — N/A N/A Weighted-average exercise price $ — $ 80.05 $ 113.19 Weighted-average exercise price exercisable shares — N/A N/A Compensation expense (credit) Three months ended June 30, 2020 $ — $ 20,000 $ (14,000) Three months ended June 30, 2019 (12,000) 20,000 578,000 Six months ended June 30, 2020 $ (1,000) $ 40,000 $ (184,000) Six months ended June 30, 2019 (15,000) 40,000 941,000 Fair value of liability award June 30, 2020 $ — N/A $ — December 31, 2019 1,000 N/A 971,000 |
Summary of Basic and Diluted Earnings Per Share | Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Weighted average shares outstanding 26,878,684 26,881,700 26,880,183 26,883,699 Incremental shares from RS awards and RSUs 8,445 7,264 9,265 6,237 Total shares for diluted calculations 26,887,129 26,888,964 26,889,448 26,889,936 Net income (loss) attributable to American National (in thousands) $ 210,545 $ 98,840 $ (9,899) $ 357,057 Basic earnings per share $ 7.83 $ 3.68 $ (0.37) $ 13.28 Diluted earnings per share $ 7.83 $ 3.67 $ (0.37) $ 13.28 |
Statutory Capital and Surplus and Net Income of Insurance Entities in Accordance with Statutory Accounting Practices | The statutory capital and surplus and net income of our life and property and casualty insurance entities in accordance with statutory accounting practices are shown below (in thousands): June 30, 2020 December 31, 2019 Statutory capital and surplus Life insurance entities $ 2,086,978 $ 2,159,770 Property and casualty insurance entities 1,343,222 1,329,782 Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Statutory net income (loss) Life insurance entities $ (28,301) $ 12,782 $ 26,674 $ 5,698 Property and casualty insurance entities (12,975) 12,344 35,278 50,464 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Summary of Results of Operations Measured as Income Before Federal Income Taxes and Other Items by Operating Segments | The results of operations measured as the income (loss) before federal income tax and other items by operating segments are summarized below (in thousands): Three months ended June 30, 2020 Property Corporate Life Annuity Health & Casualty & Other Total PREMIUMS AND OTHER REVENUES Premiums $ 91,670 $ 25,944 $ 42,945 $ 372,704 $ — $ 533,263 Other policy revenues 76,226 3,561 — — — 79,787 Net investment income 73,645 189,842 2,214 16,037 5,610 287,348 Net realized investment gains — — — — 3,939 3,939 Change in investment credit loss — — — — (52,310) (52,310) Net gains on equity securities — — — — 298,825 298,825 Other income 440 795 5,503 2,844 754 10,336 Total premiums and other revenues 241,981 220,142 50,662 391,585 256,818 1,161,188 BENEFITS, LOSSES AND EXPENSES Policyholder benefits 124,941 44,983 — — — 169,924 Claims incurred — — 26,726 280,561 — 307,287 Interest credited to policyholders’ account balances 25,201 121,582 — — — 146,783 Commissions for acquiring and servicing policies 41,287 11,657 7,160 80,386 — 140,490 Other operating expenses 44,505 11,746 9,476 50,080 9,370 125,177 Change in deferred policy acquisition costs (11,535) 12,306 (17) (5,457) — (4,703) Total benefits, losses and expenses 224,399 202,274 43,345 405,570 9,370 884,958 Income (loss) before federal income tax and other items $ 17,582 $ 17,868 $ 7,317 $ (13,985) $ 247,448 $ 276,230 Three months ended June 30, 2019 Property Corporate Life Annuity Health & Casualty & Other Total PREMIUMS AND OTHER REVENUES Premiums $ 86,087 $ 56,222 $ 42,224 $ 371,739 $ — $ 556,272 Other policy revenues 70,610 4,536 — — — 75,146 Net investment income 63,916 155,355 2,376 16,706 19,377 257,730 Net realized investment losses — — — — (9,905) (9,905) Net gains on equity securities — — — — 67,060 67,060 Other income 469 574 5,534 2,830 967 10,374 Total premiums and other revenues 221,082 216,687 50,134 391,275 77,499 956,677 BENEFITS, LOSSES AND EXPENSES Policyholder benefits 104,462 72,788 — — — 177,250 Claims incurred — — 26,708 271,608 — 298,316 Interest credited to policyholders’ account balances 15,197 108,490 — — — 123,687 Commissions for acquiring and servicing policies 40,881 23,139 8,692 68,583 — 141,295 Other operating expenses 46,669 13,349 10,707 49,681 9,127 129,533 Change in deferred policy acquisition costs (9,205) (4,369) (146) (3,588) — (17,308) Total benefits, losses and expenses 198,004 213,397 45,961 386,284 9,127 852,773 Income before federal income tax and other items $ 23,078 $ 3,290 $ 4,173 $ 4,991 $ 68,372 $ 103,904 Six months ended June 30, 2020 Property Corporate Life Annuity Health & Casualty & Other Total PREMIUMS AND OTHER REVENUES Premiums $ 181,186 $ 41,453 $ 86,031 $ 761,361 $ — $ 1,070,031 Other policy revenues 151,766 7,626 — — — 159,392 Net investment income 119,220 231,383 4,447 32,122 15,460 402,632 Net realized investment gains — — — — 8,087 8,087 Change in investment credit loss — — — — (96,988) (96,988) Net losses on equity securities — — — — (33,750) (33,750) Other income 1,176 1,433 10,030 6,577 2,253 21,469 Total premiums and other revenues 453,348 281,895 100,508 800,060 (104,938) 1,530,873 BENEFITS, LOSSES AND EXPENSES Policyholder benefits 235,407 79,785 — — — 315,192 Claims incurred — — 61,611 510,270 — 571,881 Interest credited to policyholders’ account balances 23,298 119,162 — — — 142,460 Commissions for acquiring and servicing policies 80,754 21,905 15,184 153,082 — 270,925 Other operating expenses 91,985 23,622 20,105 103,084 20,307 259,103 Change in deferred policy acquisition costs (19,373) 19,592 (40) (6,554) — (6,375) Total benefits, losses and expenses 412,071 264,066 96,860 759,882 20,307 1,553,186 Income (loss) before federal income tax and other items $ 41,277 $ 17,829 $ 3,648 $ 40,178 $ (125,245) $ (22,313) Six months ended June 30, 2019 Property Corporate Life Annuity Health & Casualty & Other Total PREMIUMS AND OTHER REVENUES Premiums $ 172,555 $ 96,129 $ 80,905 $ 742,920 $ — $ 1,092,509 Other policy revenues 140,854 8,540 — — — 149,394 Net investment income 132,672 346,066 4,796 31,728 34,814 550,076 Net realized investment losses — — — — (6,958) (6,958) Net gains on equity securities — — — — 273,437 273,437 Other income 1,145 1,263 10,919 5,552 3,033 21,912 Total premiums and other revenues 447,226 451,998 96,620 780,200 304,326 2,080,370 BENEFITS, LOSSES AND EXPENSES Policyholder benefits 213,927 131,549 — — — 345,476 Claims incurred — — 52,475 509,752 — 562,227 Interest credited to policyholders’ account balances 35,516 229,405 — — — 264,921 Commissions for acquiring and servicing policies 78,623 50,005 15,570 135,742 — 279,940 Other operating expenses 95,647 25,823 21,699 101,566 18,408 263,143 Change in deferred policy acquisition costs (14,040) (7,389) 661 (3,171) — (23,939) Total benefits, losses and expenses 409,673 429,393 90,405 743,889 18,408 1,691,768 Income before federal income tax and other items $ 37,553 $ 22,605 $ 6,215 $ 36,311 $ 285,918 $ 388,602 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Federal Home Loan Bank, Advances | FHLB outstanding advances as of June 30, 2020 are shown below (in thousands, except percentages): Principal Amount Interest Rate Maturity Date At June 30, 2020 FHLB advance, fixed rate $ 250,000 0.25 % 10/13/2020 FHLB advance, fixed rate 250,000 0.38 % 4/28/2021 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The impact on the condensed consolidated financial statements of significant related party transactions is shown below (in thousands): Dollar Amount of Transactions Financial Statement Line Impacted Three months ended June 30, Six months ended June 30, Amount due to (from) American National Related Party 2020 2019 2020 2019 June 30, 2020 December 31, 2019 Gal-Tex Hotel Corporation Mortgage loan on real estate $ — $ 145 $ — $ 576 $ — $ — Gal-Tex Hotel Corporation Net investment income — 1 — 9 — — Greer, Herz & Adams, LLP Other operating expenses 3,251 3,007 7,094 5,896 (497) (519) |
Nature of Operations - Addition
Nature of Operations - Additional Information (Detail) | Jun. 30, 2020state |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of states | 50 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Practices - Additional Information (Detail) | Jun. 30, 2020 |
Maximum | American National | |
Schedule Of Significant Accounting Policies [Line Items] | |
Entity ownership percentage | 100.00% |
Recently Issued Accounting Pr_3
Recently Issued Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2019 | Jun. 30, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||||
Stockholders' equity | $ 5,995,763 | $ 5,972,941 | $ 5,607,089 | $ 5,767,582 | $ 5,592,919 | $ 5,271,515 | |
Cumulative Effect, Period of Adoption, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stockholders' equity | (34,702) | 1,199 | 0 | ||||
Allowance for credit loss | 42,408 | $ 42,400 | |||||
Retained Earnings | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stockholders' equity | 5,946,857 | $ 5,859,361 | 5,669,664 | $ 5,727,649 | $ 5,650,853 | 5,413,952 | |
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stockholders' equity | $ (34,702) | $ 1,199 | $ 33,500 | $ 785 |
Recently Issued Accounting Pr_4
Recently Issued Accounting Pronouncements - Adoption of ASU 2016-13 (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Jun. 30, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||
Fixed maturity, bonds held-to-maturity, at amortized cost | $ (21,664) | $ (22,414) | $ (21,385) | |
Allowance for loan losses | (19,160) | (111,480) | ||
Reinsurance recoverables | (8,220) | (17,844) | ||
Other policyholder funds | 361,059 | 362,389 | ||
Other liabilities | (446,882) | $ (414,135) | ||
Cumulative Effect, Period of Adoption, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Fixed maturity, bonds held-to-maturity, at amortized cost | (21,664) | |||
Reinsurance recoverables | (7,920) | |||
Other policyholder funds | 1,526 | |||
Other liabilities | (3,126) | |||
Total | (42,408) | $ (42,400) | ||
Cumulative Effect, Period of Adoption, Adjustment | Commercial Mortgage Loans | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for loan losses | (11,224) | |||
Cumulative Effect, Period of Adoption, Adjusted Balance | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Fixed maturity, bonds held-to-maturity, at amortized cost | (21,664) | |||
Reinsurance recoverables | (16,140) | |||
Other policyholder funds | 1,526 | |||
Other liabilities | (3,126) | |||
Total | (69,788) | |||
Cumulative Effect, Period of Adoption, Adjusted Balance | Commercial Mortgage Loans | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for loan losses | (30,384) | |||
Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Fixed maturity, bonds held-to-maturity, at amortized cost | 0 | |||
Reinsurance recoverables | (8,220) | |||
Other policyholder funds | 0 | |||
Other liabilities | 0 | |||
Total | (27,380) | |||
Previously Reported | Commercial Mortgage Loans | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for loan losses | $ (19,160) |
Investment in Securities - Inve
Investment in Securities - Investments in Securities (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Held-to-maturity Securities [Line Items] | |||
Bonds held-to-maturity securities, amortized cost | $ 8,260,819 | $ 8,631,261 | |
Bonds held-to-maturity securities, gross unrealized gains | 511,060 | 345,463 | |
Bonds held-to-maturity securities, gross unrealized (losses) | (35,749) | (8,034) | |
Bonds held-to-maturity securities, allowance for credit losses | (22,414) | $ (21,385) | (21,664) |
Fair value of bonds held-to-maturity | 8,713,716 | 8,968,690 | |
Bonds available-for-sale securities, amortized cost | 6,779,116 | 6,435,670 | |
Bonds available-for-sale securities, gross unrealized gains | 433,608 | 302,426 | |
Bonds available-for-sale securities, gross unrealized (losses) | (38,138) | (13,011) | |
Bonds available-for-sale securities, allowance for credit losses | (4,115) | (12,865) | 0 |
Fixed maturity, bonds available-for-sale | 7,170,471 | 6,725,085 | |
Bonds investments in securities, cost or amortized cost | 15,039,935 | 15,066,931 | |
Bonds investments in securities, gross unrealized gains | 944,668 | 647,889 | |
Bonds investments in securities, gross unrealized (losses) | (73,887) | (21,045) | |
Bonds investments in securities, allowance for credit losses | (26,529) | ||
Bonds investments in securities, fair value | 15,884,187 | 15,693,775 | |
U.S. states and political subdivisions | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Bonds held-to-maturity securities, amortized cost | 127,591 | 165,109 | |
Bonds held-to-maturity securities, gross unrealized gains | 4,208 | 5,005 | |
Bonds held-to-maturity securities, gross unrealized (losses) | 0 | 0 | |
Bonds held-to-maturity securities, allowance for credit losses | 0 | ||
Fair value of bonds held-to-maturity | 131,799 | 170,114 | |
Bonds available-for-sale securities, amortized cost | 1,025,297 | 1,030,309 | |
Bonds available-for-sale securities, gross unrealized gains | 67,074 | 47,865 | |
Bonds available-for-sale securities, gross unrealized (losses) | 0 | (9) | |
Bonds available-for-sale securities, allowance for credit losses | 0 | ||
Fixed maturity, bonds available-for-sale | 1,092,371 | 1,078,165 | |
U.S. treasury and government | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Bonds available-for-sale securities, amortized cost | 29,132 | 29,505 | |
Bonds available-for-sale securities, gross unrealized gains | 676 | 441 | |
Bonds available-for-sale securities, gross unrealized (losses) | 0 | (5) | |
Bonds available-for-sale securities, allowance for credit losses | 0 | ||
Fixed maturity, bonds available-for-sale | 29,808 | 29,941 | |
Foreign governments | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Bonds held-to-maturity securities, amortized cost | 3,880 | 3,907 | |
Bonds held-to-maturity securities, gross unrealized gains | 481 | 442 | |
Bonds held-to-maturity securities, gross unrealized (losses) | 0 | 0 | |
Bonds held-to-maturity securities, allowance for credit losses | 0 | 5 | 4 |
Fair value of bonds held-to-maturity | 4,361 | 4,349 | |
Bonds available-for-sale securities, amortized cost | 14,988 | 5,000 | |
Bonds available-for-sale securities, gross unrealized gains | 1,782 | 1,287 | |
Bonds available-for-sale securities, gross unrealized (losses) | 0 | 0 | |
Bonds available-for-sale securities, allowance for credit losses | 0 | ||
Fixed maturity, bonds available-for-sale | 16,770 | 6,287 | |
Corporate debt securities | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Bonds held-to-maturity securities, amortized cost | 7,754,873 | 8,099,098 | |
Bonds held-to-maturity securities, gross unrealized gains | 498,531 | 332,410 | |
Bonds held-to-maturity securities, gross unrealized (losses) | (33,883) | (6,539) | |
Bonds held-to-maturity securities, allowance for credit losses | (19,882) | (18,401) | (18,563) |
Fair value of bonds held-to-maturity | 8,199,639 | 8,424,969 | |
Bonds available-for-sale securities, amortized cost | 5,653,025 | 5,338,007 | |
Bonds available-for-sale securities, gross unrealized gains | 362,094 | 251,408 | |
Bonds available-for-sale securities, gross unrealized (losses) | (38,038) | (12,795) | |
Bonds available-for-sale securities, allowance for credit losses | (3,824) | (12,499) | 0 |
Fixed maturity, bonds available-for-sale | 5,973,257 | 5,576,620 | |
Residential mortgage-backed securities | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Bonds held-to-maturity securities, amortized cost | 164,903 | 237,516 | |
Bonds held-to-maturity securities, gross unrealized gains | 6,604 | 6,460 | |
Bonds held-to-maturity securities, gross unrealized (losses) | (1,181) | (1,148) | |
Bonds held-to-maturity securities, allowance for credit losses | 0 | (3) | (137) |
Fair value of bonds held-to-maturity | 170,326 | 242,828 | |
Bonds available-for-sale securities, amortized cost | 29,460 | 23,405 | |
Bonds available-for-sale securities, gross unrealized gains | 1,231 | 739 | |
Bonds available-for-sale securities, gross unrealized (losses) | (23) | (201) | |
Bonds available-for-sale securities, allowance for credit losses | (211) | (130) | 0 |
Fixed maturity, bonds available-for-sale | 30,457 | 23,943 | |
Collateralized debt securities | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Bonds held-to-maturity securities, amortized cost | 209,572 | 125,631 | |
Bonds held-to-maturity securities, gross unrealized gains | 1,236 | 1,146 | |
Bonds held-to-maturity securities, gross unrealized (losses) | (685) | (347) | |
Bonds held-to-maturity securities, allowance for credit losses | (2,532) | (2,986) | (2,968) |
Fair value of bonds held-to-maturity | 207,591 | 126,430 | |
Bonds available-for-sale securities, amortized cost | 27,214 | 9,444 | |
Bonds available-for-sale securities, gross unrealized gains | 751 | 686 | |
Bonds available-for-sale securities, gross unrealized (losses) | (77) | (1) | |
Bonds available-for-sale securities, allowance for credit losses | (80) | $ (236) | 0 |
Fixed maturity, bonds available-for-sale | $ 27,808 | $ 10,129 |
Investment in Securities - Matu
Investment in Securities - Maturities of Investments (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Bonds held-to-maturity securities, amortized cost, due in one year or less | $ 919,447 | |
Bonds held-to-maturity securities, amortized cost, due after one year through five years | 3,055,241 | |
Bonds held-to-maturity securities, amortized cost, due after five years through ten years | 3,253,320 | |
Bonds held-to-maturity securities, amortized cost, due after ten years | 1,032,811 | |
Bonds held-to-maturity securities, amortized cost | 8,260,819 | $ 8,631,261 |
Bonds held-to-maturity securities, fair value, due in one year or less | 932,495 | |
Bonds held-to-maturity securities, fair value, due after one year through five years | 3,222,507 | |
Bonds held-to-maturity securities, fair value, due after five years through ten years | 3,486,960 | |
Bonds held-to-maturity securities, fair value, due after ten years | 1,071,754 | |
Bonds held-to-maturity securities, fair value | 8,713,716 | 8,968,690 |
Bonds available-for-sale securities, amortized cost, due in one year or less | 486,900 | |
Bonds available-for-sale securities, amortized cost, due after one year through five years | 3,214,261 | |
Bonds available-for-sale securities, amortized cost, due after five years through ten years | 2,275,574 | |
Bonds available-for-sale securities, amortized cost, due after ten years | 802,381 | |
Bonds available-for-sale securities, amortized cost | 6,779,116 | 6,435,670 |
Bonds available-for-sale securities, fair value, due in one year or less | 493,348 | |
Bonds available-for-sale securities, fair value, due after one year through five years | 3,369,646 | |
Bonds available-for-sale securities, fair value, due after five years through ten years | 2,447,411 | |
Bonds available-for-sale securities, fair value, due after ten years | 860,066 | |
Bonds available-for-sale securities, fair value | $ 7,170,471 | $ 6,725,085 |
Investment in Securities - Proc
Investment in Securities - Proceeds from Available for Sale Securities and Realized Gain Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales of fixed maturity, bonds available-for-sale | $ 85,000 | $ 0 | $ 131,513 | $ 285 |
Gross realized gains | 0 | 0 | 412 | 0 |
Gross realized losses | $ 0 | $ 0 | $ (4,072) | $ (23) |
Investment in Securities - Addi
Investment in Securities - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities transferred from held-to-maturity to available-for-sale | $ 157,939,000 | |
Realized loss, transferred securities | $ 0 | $ 0 |
Greater than 90 days past due | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fixed maturity securities, bonds held-to-maturity, past due | $ 38,000 |
Investment in Securities - Chan
Investment in Securities - Change in Net Unrealized Gains (Losses) on Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Adjustments for | ||||
Deferred policy acquisition costs | $ 21,240 | |||
Change in net unrealized gains (losses) on debt securities, net of tax | $ 173,776 | $ 98,360 | 61,373 | $ 183,874 |
Unrealized gains (losses) on equity securities | ||||
Net gains (losses) on equity securities | 298,825 | 67,060 | (33,750) | 273,437 |
Bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Bonds available-for-sale: change in unrealized gains | 106,055 | 279,618 | ||
Adjustments for | ||||
Deferred policy acquisition costs | (21,240) | (34,853) | ||
Participating policyholders’ interest | (5,052) | (12,811) | ||
Deferred federal income tax expense | (18,390) | (48,080) | ||
Change in net unrealized gains (losses) on debt securities, net of tax | 61,373 | 183,874 | ||
Equity Securities | ||||
Unrealized gains (losses) on equity securities | ||||
Unrealized gains (losses) on equity securities | 298,793 | 51,933 | (34,808) | 254,955 |
Net gains on equity securities sold | 32 | 15,127 | 1,058 | 18,482 |
Net gains (losses) on equity securities | $ 298,825 | $ 67,060 | $ (33,750) | $ 273,437 |
Investment in Securities - Gros
Investment in Securities - Gross Unrealized Losses and Fair Value of Investment Securities (Detail) $ in Thousands | Jun. 30, 2020USD ($)investment | Dec. 31, 2019USD ($)investment |
Schedule of Available-for-sale Securities [Line Items] | ||
Bonds available-for-sale securities, less than 12 months, number of issues | investment | 77,000 | 26,000 |
Bonds available-for-sale securities, less than 12 months, unrealized (losses) | $ (25,333) | $ (5,276) |
Bonds available-for-sale securities, less than 12 months, fair value | $ 488,866 | $ 107,003 |
Bonds available-for-sale securities, 12 months or more, number of issues | investment | 15,000 | 33,000 |
Bonds available-for-sale securities, 12 months or more, unrealized (losses) | $ (12,805) | $ (7,735) |
Bonds available-for-sale securities, 12 months or more, fair value | $ 64,411 | $ 141,647 |
Bonds available-for-sale securities, total, number of issues | investment | 90,000 | 59,000 |
Bonds available-for-sale securities, total, unrealized (losses) | $ (38,138) | $ (13,011) |
Bonds available-for-sale securities, total, fair value | $ 553,277 | $ 248,650 |
U.S. treasury and government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Bonds available-for-sale securities, less than 12 months, number of issues | investment | 0 | |
Bonds available-for-sale securities, less than 12 months, unrealized (losses) | $ 0 | |
Bonds available-for-sale securities, less than 12 months, fair value | $ 0 | |
Bonds available-for-sale securities, 12 months or more, number of issues | investment | 5,000 | |
Bonds available-for-sale securities, 12 months or more, unrealized (losses) | $ (5) | |
Bonds available-for-sale securities, 12 months or more, fair value | $ 8,299 | |
Bonds available-for-sale securities, total, number of issues | investment | 5,000 | |
Bonds available-for-sale securities, total, unrealized (losses) | $ (5) | |
Bonds available-for-sale securities, total, fair value | $ 8,299 | |
U.S. states and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Bonds available-for-sale securities, less than 12 months, number of issues | investment | 2,000 | |
Bonds available-for-sale securities, less than 12 months, unrealized (losses) | $ (9) | |
Bonds available-for-sale securities, less than 12 months, fair value | $ 1,733 | |
Bonds available-for-sale securities, 12 months or more, number of issues | investment | 0 | |
Bonds available-for-sale securities, 12 months or more, unrealized (losses) | $ 0 | |
Bonds available-for-sale securities, 12 months or more, fair value | $ 0 | |
Bonds available-for-sale securities, total, number of issues | investment | 2,000 | |
Bonds available-for-sale securities, total, unrealized (losses) | $ (9) | |
Bonds available-for-sale securities, total, fair value | $ 1,733 | |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Bonds available-for-sale securities, less than 12 months, number of issues | investment | 75,000 | 22,000 |
Bonds available-for-sale securities, less than 12 months, unrealized (losses) | $ (25,259) | $ (5,257) |
Bonds available-for-sale securities, less than 12 months, fair value | $ 479,455 | $ 94,942 |
Bonds available-for-sale securities, 12 months or more, number of issues | investment | 11,000 | 25,000 |
Bonds available-for-sale securities, 12 months or more, unrealized (losses) | $ (12,779) | $ (7,538) |
Bonds available-for-sale securities, 12 months or more, fair value | $ 53,086 | $ 132,626 |
Bonds available-for-sale securities, total, number of issues | investment | 84,000 | 47,000 |
Bonds available-for-sale securities, total, unrealized (losses) | $ (38,038) | $ (12,795) |
Bonds available-for-sale securities, total, fair value | $ 532,541 | $ 227,568 |
Residential mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Bonds available-for-sale securities, less than 12 months, number of issues | investment | 0 | 1,000 |
Bonds available-for-sale securities, less than 12 months, unrealized (losses) | $ 0 | $ (9) |
Bonds available-for-sale securities, less than 12 months, fair value | $ 0 | $ 10,169 |
Bonds available-for-sale securities, 12 months or more, number of issues | investment | 3,000 | 3,000 |
Bonds available-for-sale securities, 12 months or more, unrealized (losses) | $ (23) | $ (192) |
Bonds available-for-sale securities, 12 months or more, fair value | $ 11,169 | $ 722 |
Bonds available-for-sale securities, total, number of issues | investment | 3,000 | 4,000 |
Bonds available-for-sale securities, total, unrealized (losses) | $ (23) | $ (201) |
Bonds available-for-sale securities, total, fair value | $ 11,169 | $ 10,891 |
Collateralized debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Bonds available-for-sale securities, less than 12 months, number of issues | investment | 2,000 | 1,000 |
Bonds available-for-sale securities, less than 12 months, unrealized (losses) | $ (74) | $ (1) |
Bonds available-for-sale securities, less than 12 months, fair value | $ 9,411 | $ 159 |
Bonds available-for-sale securities, 12 months or more, number of issues | investment | 1,000 | 0 |
Bonds available-for-sale securities, 12 months or more, unrealized (losses) | $ (3) | $ 0 |
Bonds available-for-sale securities, 12 months or more, fair value | $ 156 | $ 0 |
Bonds available-for-sale securities, total, number of issues | investment | 3,000 | 1,000 |
Bonds available-for-sale securities, total, unrealized (losses) | $ (77) | $ (1) |
Bonds available-for-sale securities, total, fair value | $ 9,567 | $ 159 |
Investment in Securities - Equi
Investment in Securities - Equity Securities by Market Sector Distribution (Detail) - Credit Concentration Risk - Equity Securities | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Concentration Risk [Line Items] | ||
Distribution, percentage | 100.00% | 100.00% |
Consumer goods | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 19.30% | 18.90% |
Energy and utilities | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 5.70% | 8.00% |
Finance | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 21.40% | 18.00% |
Healthcare | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 15.70% | 13.00% |
Industrials | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 5.70% | 7.60% |
Information technology | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 27.70% | 25.00% |
Other | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 4.50% | 9.50% |
Investment in Securities - Allo
Investment in Securities - Allowance for Credit Losses for Held-to-maturity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Mar. 31, 2020 | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||
Allowance for credit losses, beginning balance | $ (21,385) | $ (21,664) |
Provision | (1,029) | 279 |
Allowance for credit losses, ending balance | (22,414) | (21,385) |
Foreign governments | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||
Allowance for credit losses, beginning balance | 5 | 4 |
Provision | (5) | 1 |
Allowance for credit losses, ending balance | 0 | 5 |
Corporate debt securities | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||
Allowance for credit losses, beginning balance | (18,401) | (18,563) |
Provision | (1,481) | 162 |
Allowance for credit losses, ending balance | (19,882) | (18,401) |
Collateralized debt securities | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||
Allowance for credit losses, beginning balance | (2,986) | (2,968) |
Provision | 454 | (18) |
Allowance for credit losses, ending balance | (2,532) | (2,986) |
Residential mortgage-backed securities | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||
Allowance for credit losses, beginning balance | (3) | (137) |
Provision | 3 | 134 |
Allowance for credit losses, ending balance | $ 0 | $ (3) |
Investment in Securities - Al_2
Investment in Securities - Allowance for Credit Losses for Available-for-Sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Mar. 31, 2020 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Allowance for credit losses, beginning balance | $ (12,865) | $ 0 |
Provision | 8,750 | (12,865) |
Allowance for credit losses, ending balance | (4,115) | (12,865) |
Corporate debt securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Allowance for credit losses, beginning balance | (12,499) | 0 |
Provision | 8,675 | (12,499) |
Allowance for credit losses, ending balance | (3,824) | (12,499) |
Collateralized debt securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Allowance for credit losses, beginning balance | (236) | 0 |
Provision | 156 | (236) |
Allowance for credit losses, ending balance | (80) | (236) |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Allowance for credit losses, beginning balance | (130) | 0 |
Provision | (81) | (130) |
Allowance for credit losses, ending balance | $ (211) | $ (130) |
Investment in Securities - Cred
Investment in Securities - Credit Quality Indicators for Amortized Cost of Held-to-maturity Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | $ 8,260,819 | $ 8,631,261 |
AAA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 122,335 | |
AA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 351,165 | |
A | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 3,451,783 | |
BBB | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 4,031,027 | |
BB and below | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 304,509 | |
U.S. states and political subdivisions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 127,591 | 165,109 |
U.S. states and political subdivisions | AAA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 46,407 | |
U.S. states and political subdivisions | AA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 64,577 | |
U.S. states and political subdivisions | A | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 11,340 | |
U.S. states and political subdivisions | BBB | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 0 | |
U.S. states and political subdivisions | BB and below | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 5,267 | |
Foreign governments | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 3,880 | 3,907 |
Foreign governments | AAA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 0 | |
Foreign governments | AA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 2,842 | |
Foreign governments | A | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 1,038 | |
Foreign governments | BBB | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 0 | |
Foreign governments | BB and below | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 0 | |
Corporate debt securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 7,754,873 | 8,099,098 |
Corporate debt securities | AAA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 1,947 | |
Corporate debt securities | AA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 283,746 | |
Corporate debt securities | A | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 3,272,723 | |
Corporate debt securities | BBB | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 4,015,284 | |
Corporate debt securities | BB and below | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 181,173 | |
Residential mortgage-backed securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 164,903 | 237,516 |
Residential mortgage-backed securities | AAA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 73,981 | |
Residential mortgage-backed securities | AA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 0 | |
Residential mortgage-backed securities | A | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 0 | |
Residential mortgage-backed securities | BBB | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 0 | |
Residential mortgage-backed securities | BB and below | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 90,922 | |
Collateralized debt securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 209,572 | $ 125,631 |
Collateralized debt securities | AAA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 0 | |
Collateralized debt securities | AA | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 0 | |
Collateralized debt securities | A | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 166,682 | |
Collateralized debt securities | BBB | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | 15,743 | |
Collateralized debt securities | BB and below | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Carrying value of bonds held-to-maturity | $ 27,147 |
Mortgage Loans - Distribution B
Mortgage Loans - Distribution Based on Carrying Amount of Mortgage Loans by Location (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Concentration Risk [Line Items] | ||
Mortgage loans, carrying amount | $ 5,176,511 | $ 5,097,017 |
East North Central | ||
Concentration Risk [Line Items] | ||
Mortgage loans, carrying amount | 711,602 | 667,150 |
East South Central | ||
Concentration Risk [Line Items] | ||
Mortgage loans, carrying amount | 145,675 | 144,887 |
Mountain | ||
Concentration Risk [Line Items] | ||
Mortgage loans, carrying amount | 1,227,945 | 1,200,434 |
Pacific | ||
Concentration Risk [Line Items] | ||
Mortgage loans, carrying amount | 896,268 | 852,574 |
South Atlantic | ||
Concentration Risk [Line Items] | ||
Mortgage loans, carrying amount | 618,061 | 621,875 |
West South Central | ||
Concentration Risk [Line Items] | ||
Mortgage loans, carrying amount | 1,252,397 | 1,272,522 |
Other | ||
Concentration Risk [Line Items] | ||
Mortgage loans, carrying amount | $ 324,563 | $ 337,575 |
Mortgage Loans On Real Estate Concentration Risk | Geographic Concentration Risk | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 100.00% | 100.00% |
Mortgage Loans On Real Estate Concentration Risk | Geographic Concentration Risk | East North Central | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 13.70% | 13.10% |
Mortgage Loans On Real Estate Concentration Risk | Geographic Concentration Risk | East South Central | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 2.80% | 2.80% |
Mortgage Loans On Real Estate Concentration Risk | Geographic Concentration Risk | Mountain | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 23.70% | 23.60% |
Mortgage Loans On Real Estate Concentration Risk | Geographic Concentration Risk | Pacific | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 17.30% | 16.70% |
Mortgage Loans On Real Estate Concentration Risk | Geographic Concentration Risk | South Atlantic | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 11.90% | 12.20% |
Mortgage Loans On Real Estate Concentration Risk | Geographic Concentration Risk | West South Central | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 24.20% | 25.00% |
Mortgage Loans On Real Estate Concentration Risk | Geographic Concentration Risk | Other | ||
Concentration Risk [Line Items] | ||
Distribution, percentage | 6.40% | 6.60% |
Mortgage Loans - Additional Inf
Mortgage Loans - Additional Information (Detail) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | Jul. 29, 2020USD ($)loan | |
Financing Receivable, Modifications [Line Items] | |||
Number of mortgage loan foreclosed | loan | 1 | 2 | |
Mortgage loans foreclosed | $ 4,511,000 | $ 16,008,000 | |
Number of loans in foreclosure process | loan | 3 | 2 | |
Mortgage loans foreclosure process | $ 18,502,000 | $ 13,345,000 | |
Number of mortgage loans sold | loan | 0 | 0 | |
Number of loans, under modifications | loan | 77 | ||
Loan balances, under modifications | $ 1,200,000,000 | ||
Unamortized discounts | 0 | $ 0 | |
Unamortized origination fees, mortgage loans | 28,860,000 | $ 29,294,000 | |
Subsequent Event | |||
Financing Receivable, Modifications [Line Items] | |||
Number of loans, under modifications | loan | 28 | ||
Loan balances, under modifications | $ 434,000,000 | ||
Number of loans, modified | loan | 49 | ||
Loan balances, modified | $ 774,000,000 | ||
Commercial loans | |||
Financing Receivable, Modifications [Line Items] | |||
Nonaccrual commercial loans | 115,762,000 | ||
Cumulative Effect, Period of Adoption, Adjusted Balance | Commercial loans | |||
Financing Receivable, Modifications [Line Items] | |||
Off balance sheet liability | 13,032,000 | ||
Cumulative Effect, Period of Adoption, Adjustment | Commercial loans | |||
Financing Receivable, Modifications [Line Items] | |||
Off balance sheet liability | $ 578,979,000 |
Mortgage Loans - Age Analysis o
Mortgage Loans - Age Analysis of Past Due Loans (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | $ 1,004,921 | $ 55,918 |
Current | 4,283,070 | 5,060,259 |
Mortgage loans on real estate | $ 5,287,991 | $ 5,116,177 |
Total loans percent | 100.00% | 100.00% |
Allowance for credit losses | $ (111,480) | $ (19,160) |
Total, net of allowance | 5,176,511 | 5,097,017 |
Financing Receivable, Recorded Investment, Aging, Under Modification [Abstract] | ||
Past due | 903,000 | |
Current | 305,000 | |
Total Amount | 1,208,000 | |
Apartment | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 40,095 | 0 |
Current | 408,752 | 416,865 |
Mortgage loans on real estate | $ 448,847 | $ 416,865 |
Total loans percent | 8.50% | 8.10% |
Allowance for credit losses | $ (3,268) | |
Hotel | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 404,758 | $ 0 |
Current | 497,488 | 901,044 |
Mortgage loans on real estate | $ 902,246 | $ 901,044 |
Total loans percent | 17.10% | 17.60% |
Allowance for credit losses | $ (45,104) | |
Industrial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 9,259 | $ 17,167 |
Current | 718,521 | 589,721 |
Mortgage loans on real estate | $ 727,780 | $ 606,888 |
Total loans percent | 13.70% | 11.90% |
Allowance for credit losses | $ (3,586) | |
Office | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 88,503 | $ 22,870 |
Current | 1,478,233 | 1,587,591 |
Mortgage loans on real estate | $ 1,566,736 | $ 1,610,461 |
Total loans percent | 29.60% | 31.50% |
Allowance for credit losses | $ (23,525) | |
Retail | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 207,695 | $ 4,122 |
Current | 657,861 | 843,467 |
Mortgage loans on real estate | $ 865,556 | $ 847,589 |
Total loans percent | 16.40% | 16.60% |
Allowance for credit losses | $ (12,686) | |
Other | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 254,611 | $ 11,759 |
Current | 522,215 | 721,571 |
Mortgage loans on real estate | $ 776,826 | $ 733,330 |
Total loans percent | 14.70% | 14.30% |
Allowance for credit losses | $ (23,311) | |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 403,695 | $ 34,629 |
Financing Receivable, Recorded Investment, Aging, Under Modification [Abstract] | ||
Past due | 343,000 | |
30-59 Days Past Due | Apartment | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 40,095 | 0 |
30-59 Days Past Due | Hotel | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 212,708 | 0 |
30-59 Days Past Due | Industrial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 0 | 0 |
30-59 Days Past Due | Office | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 58,352 | 22,870 |
30-59 Days Past Due | Retail | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 82,051 | 0 |
30-59 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 10,489 | 11,759 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 485,464 | 13,076 |
Financing Receivable, Recorded Investment, Aging, Under Modification [Abstract] | ||
Past due | 461,000 | |
60-89 Days Past Due | Apartment | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 0 | 0 |
60-89 Days Past Due | Hotel | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 137,195 | 0 |
60-89 Days Past Due | Industrial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 0 | 13,076 |
60-89 Days Past Due | Office | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 12,759 | 0 |
60-89 Days Past Due | Retail | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 120,645 | 0 |
60-89 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 214,865 | 0 |
More Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 115,762 | 8,213 |
Financing Receivable, Recorded Investment, Aging, Under Modification [Abstract] | ||
Past due | 99,000 | |
More Than 90 Days Past Due | Apartment | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 0 | 0 |
More Than 90 Days Past Due | Hotel | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 54,855 | 0 |
More Than 90 Days Past Due | Industrial | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 9,259 | 4,091 |
More Than 90 Days Past Due | Office | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 17,392 | 0 |
More Than 90 Days Past Due | Retail | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 4,999 | 4,122 |
More Than 90 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | $ 29,257 | $ 0 |
Mortgage Loans - Troubled Debt
Mortgage Loans - Troubled Debt Restructurings (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020USD ($)loan | Jun. 30, 2019USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 16 | 7 |
Recorded Investment Pre- Modification | $ 369,493 | $ 70,175 |
Recorded Investment Post Modification | $ 369,493 | $ 70,175 |
Office | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 0 | 1 |
Recorded Investment Pre- Modification | $ 0 | $ 9,331 |
Recorded Investment Post Modification | $ 0 | $ 9,331 |
Retail | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 3 | 2 |
Recorded Investment Pre- Modification | $ 22,161 | $ 40,249 |
Recorded Investment Post Modification | $ 22,161 | $ 40,249 |
Industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 0 | 4 |
Recorded Investment Pre- Modification | $ 0 | $ 20,595 |
Recorded Investment Post Modification | $ 0 | $ 20,595 |
Hotel | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 11 | 0 |
Recorded Investment Pre- Modification | $ 341,556 | $ 0 |
Recorded Investment Post Modification | $ 341,556 | $ 0 |
Other | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 2 | 0 |
Recorded Investment Pre- Modification | $ 5,776 | $ 0 |
Recorded Investment Post Modification | $ 5,776 | $ 0 |
Mortgage Loans - Allowance for
Mortgage Loans - Allowance for Credit Losses for Mortgage Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Mar. 31, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ (19,160) | |
Ending balance | $ (111,480) | |
Commercial loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | (59,445) | (19,160) |
Provision | (52,035) | (29,069) |
Ending balance | $ (111,480) | (59,445) |
Commercial loans | Cumulative Effect, Period of Adoption, Adjustment | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ (11,216) |
Mortgage Loans - Allowance fo_2
Mortgage Loans - Allowance for Credit Losses For Mortgage Loans by Property Type (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Mortgage loans, carrying amount | $ 5,176,511 | $ 5,097,017 |
Allowance for loan losses | (111,480) | $ (19,160) |
Apartment | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Mortgage loans, carrying amount | 445,579 | |
Allowance for loan losses | (3,268) | |
Hotel | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Mortgage loans, carrying amount | 857,142 | |
Allowance for loan losses | (45,104) | |
Industrial | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Mortgage loans, carrying amount | 724,195 | |
Allowance for loan losses | (3,586) | |
Office | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Mortgage loans, carrying amount | 1,543,211 | |
Allowance for loan losses | (23,525) | |
Retail | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Mortgage loans, carrying amount | 852,869 | |
Allowance for loan losses | (12,686) | |
Other | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Mortgage loans, carrying amount | 753,515 | |
Allowance for loan losses | $ (23,311) |
Mortgage Loans - Credit Quality
Mortgage Loans - Credit Quality Indicators for Amortized Cost of Mortgage Loans by Year (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | $ 197,092 | |
2019 | 524,635 | |
2018 | 816,742 | |
2017 | 980,134 | |
2016 | 1,118,222 | |
Prior | 1,651,166 | |
Total | 5,287,991 | |
Allowance for loan losses | (111,480) | $ (19,160) |
Total, net of allowance | 5,176,511 | |
Apartment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 108,698 | |
2018 | 43,457 | |
2017 | 190,907 | |
2016 | 68,859 | |
Prior | 37,469 | |
Total | 449,390 | |
Allowance for loan losses | (3,268) | |
Hotel | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 57,560 | |
2018 | 204,054 | |
2017 | 219,527 | |
2016 | 148,026 | |
Prior | 273,845 | |
Total | 903,012 | |
Allowance for loan losses | (45,104) | |
Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 123,102 | |
2019 | 174,401 | |
2018 | 130,090 | |
2017 | 52,007 | |
2016 | 124,923 | |
Prior | 123,257 | |
Total | 727,780 | |
Allowance for loan losses | (3,586) | |
Office | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 56,068 | |
2018 | 193,000 | |
2017 | 347,383 | |
2016 | 314,239 | |
Prior | 656,046 | |
Total | 1,566,736 | |
Allowance for loan losses | (23,525) | |
Retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 42,784 | |
2019 | 41,190 | |
2018 | 103,201 | |
2017 | 80,943 | |
2016 | 223,764 | |
Prior | 373,674 | |
Total | 865,556 | |
Allowance for loan losses | (12,686) | |
Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 31,206 | |
2019 | 86,718 | |
2018 | 142,940 | |
2017 | 89,367 | |
2016 | 238,411 | |
Prior | 186,875 | |
Total | 775,517 | |
Allowance for loan losses | $ (23,311) |
Real Estate and Other Investm_3
Real Estate and Other Investments - Investment Real Estate by Property-Type and Geographic Distribution (Detail) - Real estate - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Property Type Concentration Risk | ||
Concentration Risk [Line Items] | ||
Real estate investments | $ 544,604 | $ 551,219 |
Distribution, percentage | 100.00% | 100.00% |
Property Type Concentration Risk | Industrial | ||
Concentration Risk [Line Items] | ||
Real estate investments | $ 68,315 | $ 68,809 |
Distribution, percentage | 12.50% | 12.50% |
Property Type Concentration Risk | Office | ||
Concentration Risk [Line Items] | ||
Real estate investments | $ 219,108 | $ 219,490 |
Distribution, percentage | 40.20% | 39.80% |
Property Type Concentration Risk | Retail | ||
Concentration Risk [Line Items] | ||
Real estate investments | $ 213,317 | $ 215,800 |
Distribution, percentage | 39.20% | 39.10% |
Property Type Concentration Risk | Other | ||
Concentration Risk [Line Items] | ||
Real estate investments | $ 43,864 | $ 47,120 |
Distribution, percentage | 8.10% | 8.60% |
Geographic Distribution | ||
Concentration Risk [Line Items] | ||
Real estate investments | $ 544,604 | $ 551,219 |
Distribution, percentage | 100.00% | 100.00% |
Geographic Distribution | East North Central | ||
Concentration Risk [Line Items] | ||
Real estate investments | $ 32,572 | $ 32,539 |
Distribution, percentage | 6.00% | 5.90% |
Geographic Distribution | East South Central | ||
Concentration Risk [Line Items] | ||
Real estate investments | $ 33,466 | $ 34,248 |
Distribution, percentage | 6.20% | 6.20% |
Geographic Distribution | Mountain | ||
Concentration Risk [Line Items] | ||
Real estate investments | $ 66,942 | $ 68,498 |
Distribution, percentage | 12.30% | 12.40% |
Geographic Distribution | Pacific | ||
Concentration Risk [Line Items] | ||
Real estate investments | $ 39,425 | $ 40,462 |
Distribution, percentage | 7.20% | 7.30% |
Geographic Distribution | South Atlantic | ||
Concentration Risk [Line Items] | ||
Real estate investments | $ 82,682 | $ 83,552 |
Distribution, percentage | 15.20% | 15.20% |
Geographic Distribution | West South Central | ||
Concentration Risk [Line Items] | ||
Real estate investments | $ 272,551 | $ 278,833 |
Distribution, percentage | 50.00% | 50.60% |
Geographic Distribution | Other | ||
Concentration Risk [Line Items] | ||
Real estate investments | $ 16,966 | $ 13,087 |
Distribution, percentage | 3.10% | 2.40% |
Real Estate and Other Investm_4
Real Estate and Other Investments - Assets and Liabilities Related to VIEs (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Investment real estate | $ 544,604 | $ 551,219 |
Cash and cash equivalents | 466,247 | 452,001 |
Other assets | 213,186 | 171,285 |
Total assets | 28,994,963 | 28,597,566 |
Notes payable | 155,871 | 157,997 |
Other liabilities | 414,135 | 446,882 |
Total liabilities | 23,022,022 | 22,601,803 |
VIE, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Investment real estate | 133,548 | 134,534 |
Short-term investments | 501 | 500 |
Cash and cash equivalents | 8,681 | 11,155 |
Other receivables | 2,503 | 3,673 |
Other assets | 11,383 | 15,355 |
Total assets | 156,616 | 165,217 |
Notes payable | 155,871 | 157,997 |
Other liabilities | 4,616 | 9,731 |
Total liabilities | $ 160,487 | $ 167,728 |
Real Estate and Other Investm_5
Real Estate and Other Investments - Additional Information (Detail) | Jun. 30, 2020USD ($)investment | Dec. 31, 2019USD ($) |
Real Estate [Abstract] | ||
Maximum amount of investment in long-term notes payable | $ 3,066,000 | $ 4,304,000 |
Number of real estate investment held for sale | investment | 1 | |
Real estate investments held-for-sale | $ 3,364,000 |
Real Estate and Other Investm_6
Real Estate and Other Investments - Schedule of Long-term Notes Payable of Consolidated VIEs (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Notes payable | $ 155,871 | $ 157,997 |
VIE, Primary Beneficiary | ||
Debt Instrument [Line Items] | ||
Notes payable | 155,871 | 157,997 |
Long Term Notes Payable Due 2022 | VIE, Primary Beneficiary | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 80,152 | 81,709 |
Interest rate on long-term notes | 4.00% | |
Long Term Notes Payable Due 2024 | VIE, Primary Beneficiary | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 64,891 | 65,452 |
Interest rate on long-term notes | 4.18% | |
LIBOR | Long Term Notes Payable Due 2021 | VIE, Primary Beneficiary | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 10,828 | $ 10,836 |
Basis spread on variable rate | LIBOR |
Real Estate and Other Investm_7
Real Estate and Other Investments - Carrying Amount and Maximum Exposure to Loss Related to VIEs (Detail) - VIE, Not Primary Beneficiary - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Mortgage loans | ||
Variable Interest Entity [Line Items] | ||
Carrying amount | $ 696,645 | $ 657,528 |
Maximum exposure to loss | 696,545 | 657,528 |
Investment in unconsolidated affiliates | ||
Variable Interest Entity [Line Items] | ||
Carrying amount | 342,967 | 332,742 |
Maximum exposure to loss | 342,967 | 332,742 |
Accrued investment income | ||
Variable Interest Entity [Line Items] | ||
Carrying amount | 3,276 | 2,198 |
Maximum exposure to loss | $ 3,276 | $ 2,198 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Derivative Instruments Reported in Financial Position (Detail) - Derivatives Not Designated as Hedging Instruments $ in Thousands | Jun. 30, 2020USD ($)derivative | Dec. 31, 2019USD ($)derivative |
Equity-indexed options | Other invested assets | ||
Derivatives, Fair Value [Line Items] | ||
Number of Instruments | derivative | 459 | 473 |
Notional Amount, assets | $ 2,693,100 | $ 2,654,600 |
Estimated Fair Value, assets | $ 191,486 | $ 256,005 |
Equity-indexed embedded derivative | Policyholders’ account balances | ||
Derivatives, Fair Value [Line Items] | ||
Number of Instruments | derivative | 105,964 | 101,950 |
Notional Amount, liabilities | $ 2,561,102 | $ 2,527,205 |
Estimated Fair Value, liabilities | $ 675,970 | $ 731,552 |
Derivative Instruments - Sche_2
Derivative Instruments - Schedule of Derivative Instruments Reported in Statements of Operations (Detail) - Derivatives Not Designated as Hedging Instruments - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net investment income | Equity-indexed options | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) Recognized in Income on Derivatives | $ 67,157 | $ 23,125 | $ (40,938) | $ 89,610 |
Interest credited to policyholders’ account balances | Equity-indexed embedded derivative | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (Losses) Recognized in Income on Derivatives | $ (62,491) | $ (36,255) | $ 27,090 | $ (94,411) |
Derivative Instruments - Sche_3
Derivative Instruments - Schedule of Information Regarding Company's Exposure to Credit Loss on the Options Holds (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Credit Derivatives [Line Items] | ||
Options Fair Value | $ 191,486 | $ 256,005 |
Collateral Held | 183,609 | 257,559 |
Collateral Amounts used to Offset Exposure | 183,574 | 253,997 |
Excess Collateral | 35 | 3,562 |
Exposure Net of Collateral | 7,912 | 2,008 |
Barclays | Moody's, Baa3 Rating | S&P BBB Rating | ||
Credit Derivatives [Line Items] | ||
Options Fair Value | 54,583 | |
Collateral Held | 55,343 | |
Collateral Amounts used to Offset Exposure | 54,583 | |
Excess Collateral | 760 | |
Exposure Net of Collateral | 0 | |
Barclays | Moody's, Baa2 Rating | S&P BBB Rating | ||
Credit Derivatives [Line Items] | ||
Options Fair Value | 36,375 | |
Collateral Held | 35,473 | |
Collateral Amounts used to Offset Exposure | 35,473 | |
Excess Collateral | 0 | |
Exposure Net of Collateral | 902 | |
Credit Suisse | Moody's, Baa2 Rating | S&P BBB Plus Rating | ||
Credit Derivatives [Line Items] | ||
Options Fair Value | 4,946 | 7,117 |
Collateral Held | 4,470 | 7,390 |
Collateral Amounts used to Offset Exposure | 4,470 | 7,009 |
Excess Collateral | 0 | 381 |
Exposure Net of Collateral | 476 | 108 |
Goldman-Sachs | Moody A3 Rating | S&P BBB Plus Rating | ||
Credit Derivatives [Line Items] | ||
Options Fair Value | 990 | 1,053 |
Collateral Held | 910 | 930 |
Collateral Amounts used to Offset Exposure | 910 | 930 |
Excess Collateral | 0 | 0 |
Exposure Net of Collateral | 80 | 123 |
ING | Moody Baa1 Rating | S&P A Minus Rating | ||
Credit Derivatives [Line Items] | ||
Options Fair Value | 24,305 | 30,330 |
Collateral Held | 24,340 | 30,940 |
Collateral Amounts used to Offset Exposure | 24,305 | 30,330 |
Excess Collateral | 35 | 610 |
Exposure Net of Collateral | 0 | 0 |
Morgan Stanley | Moody A3 Rating | S&P BBB Plus Rating | ||
Credit Derivatives [Line Items] | ||
Options Fair Value | 16,967 | 34,988 |
Collateral Held | 13,956 | 34,926 |
Collateral Amounts used to Offset Exposure | 13,956 | 34,926 |
Excess Collateral | 0 | 0 |
Exposure Net of Collateral | 3,011 | 62 |
NATIXIS | Moody's, A1 Rating | S&P A Plus Rating | ||
Credit Derivatives [Line Items] | ||
Options Fair Value | 26,834 | 29,918 |
Collateral Held | 26,570 | 30,200 |
Collateral Amounts used to Offset Exposure | 26,570 | 29,918 |
Excess Collateral | 0 | 282 |
Exposure Net of Collateral | 264 | 0 |
SunTrust | Moody A3 Rating | S&P A Minus Rating | ||
Credit Derivatives [Line Items] | ||
Options Fair Value | 47,570 | 60,360 |
Collateral Held | 45,780 | 58,720 |
Collateral Amounts used to Offset Exposure | 45,780 | 58,645 |
Excess Collateral | 0 | 75 |
Exposure Net of Collateral | 1,790 | 1,715 |
Wells Fargo | Moody A2 Rating | S&P A Minus Rating | ||
Credit Derivatives [Line Items] | ||
Options Fair Value | 33,499 | 37,656 |
Collateral Held | 32,110 | 39,110 |
Collateral Amounts used to Offset Exposure | 32,110 | 37,656 |
Excess Collateral | 0 | 1,454 |
Exposure Net of Collateral | 1,389 | 0 |
Collateral Held in Cash | ||
Credit Derivatives [Line Items] | ||
Collateral Held | 128,609 | 172,559 |
Collateral Held in Cash | Barclays | Moody's, Baa3 Rating | S&P BBB Rating | ||
Credit Derivatives [Line Items] | ||
Collateral Held | 27,343 | |
Collateral Held in Cash | Barclays | Moody's, Baa2 Rating | S&P BBB Rating | ||
Credit Derivatives [Line Items] | ||
Collateral Held | 17,373 | |
Collateral Held in Cash | Credit Suisse | Moody's, Baa2 Rating | S&P BBB Plus Rating | ||
Credit Derivatives [Line Items] | ||
Collateral Held | 4,470 | 7,390 |
Collateral Held in Cash | Goldman-Sachs | Moody A3 Rating | S&P BBB Plus Rating | ||
Credit Derivatives [Line Items] | ||
Collateral Held | 910 | 930 |
Collateral Held in Cash | ING | Moody Baa1 Rating | S&P A Minus Rating | ||
Credit Derivatives [Line Items] | ||
Collateral Held | 14,040 | 14,940 |
Collateral Held in Cash | Morgan Stanley | Moody A3 Rating | S&P BBB Plus Rating | ||
Credit Derivatives [Line Items] | ||
Collateral Held | 8,256 | 25,926 |
Collateral Held in Cash | NATIXIS | Moody's, A1 Rating | S&P A Plus Rating | ||
Credit Derivatives [Line Items] | ||
Collateral Held | 26,570 | 30,200 |
Collateral Held in Cash | SunTrust | Moody A3 Rating | S&P A Minus Rating | ||
Credit Derivatives [Line Items] | ||
Collateral Held | 34,780 | 41,720 |
Collateral Held in Cash | Wells Fargo | Moody A2 Rating | S&P A Minus Rating | ||
Credit Derivatives [Line Items] | ||
Collateral Held | 22,210 | 24,110 |
Collateral Held in Invested Assets | ||
Credit Derivatives [Line Items] | ||
Collateral Held | 55,000 | 85,000 |
Collateral Held in Invested Assets | Barclays | Moody's, Baa3 Rating | S&P BBB Rating | ||
Credit Derivatives [Line Items] | ||
Collateral Held | 28,000 | |
Collateral Held in Invested Assets | Barclays | Moody's, Baa2 Rating | S&P BBB Rating | ||
Credit Derivatives [Line Items] | ||
Collateral Held | 18,100 | |
Collateral Held in Invested Assets | Credit Suisse | Moody's, Baa2 Rating | S&P BBB Plus Rating | ||
Credit Derivatives [Line Items] | ||
Collateral Held | 0 | 0 |
Collateral Held in Invested Assets | Goldman-Sachs | Moody A3 Rating | S&P BBB Plus Rating | ||
Credit Derivatives [Line Items] | ||
Collateral Held | 0 | 0 |
Collateral Held in Invested Assets | ING | Moody Baa1 Rating | S&P A Minus Rating | ||
Credit Derivatives [Line Items] | ||
Collateral Held | 10,300 | 16,000 |
Collateral Held in Invested Assets | Morgan Stanley | Moody A3 Rating | S&P BBB Plus Rating | ||
Credit Derivatives [Line Items] | ||
Collateral Held | 5,700 | 9,000 |
Collateral Held in Invested Assets | NATIXIS | Moody's, A1 Rating | S&P A Plus Rating | ||
Credit Derivatives [Line Items] | ||
Collateral Held | 0 | 0 |
Collateral Held in Invested Assets | SunTrust | Moody A3 Rating | S&P A Minus Rating | ||
Credit Derivatives [Line Items] | ||
Collateral Held | 11,000 | 17,000 |
Collateral Held in Invested Assets | Wells Fargo | Moody A2 Rating | S&P A Minus Rating | ||
Credit Derivatives [Line Items] | ||
Collateral Held | $ 9,900 | $ 15,000 |
Net Investment Income and Rea_3
Net Investment Income and Realized Investment Gains (Losses) - Summary of Net Investment Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net Investment Income [Line Items] | ||||
Net Investment Income, Total | $ 287,348 | $ 257,730 | $ 402,632 | $ 550,076 |
Bonds | ||||
Net Investment Income [Line Items] | ||||
Net Investment Income, Total | 141,762 | 150,907 | 287,881 | 298,464 |
Equity securities | ||||
Net Investment Income [Line Items] | ||||
Net Investment Income, Total | 7,919 | 9,015 | 15,766 | 17,307 |
Mortgage loans | ||||
Net Investment Income [Line Items] | ||||
Net Investment Income, Total | 60,445 | 63,158 | 119,773 | 126,357 |
Real estate | ||||
Net Investment Income [Line Items] | ||||
Net Investment Income, Total | 1,734 | 4,508 | 3,447 | 6,363 |
Other invested assets | ||||
Net Investment Income [Line Items] | ||||
Net Investment Income, Total | 8,331 | 7,017 | 16,703 | 11,975 |
Equity-indexed options | ||||
Net Investment Income [Line Items] | ||||
Net Investment Income, Total | $ 67,157 | $ 23,125 | $ (40,938) | $ 89,610 |
Net Investment Income and Rea_4
Net Investment Income and Realized Investment Gains (Losses) - Summary of Realized Investment Gains (Losses) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses) | $ 3,939 | $ (2,937) | $ 8,087 | $ 10 |
Sales | ||||
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses) | 0 | (583) | (3,618) | (763) |
Calls | ||||
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses) | 4,025 | 2,274 | 13,145 | 4,928 |
Paydowns | ||||
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses) | (73) | 319 | (54) | 288 |
Impairments | ||||
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses) | 0 | (4,700) | (1,276) | (4,700) |
Loss allowance | ||||
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses) | 0 | (257) | 0 | 260 |
Others | ||||
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses) | (13) | 10 | (110) | (3) |
Bonds | ||||
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses) | 3,952 | 2,611 | 9,430 | 5,213 |
Mortgage loans | ||||
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses) | 0 | (544) | 0 | (89) |
Real estate | ||||
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses) | (7) | (2,728) | (1,314) | (2,886) |
Other invested assets | ||||
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses) | $ (6) | $ (2,276) | $ (29) | $ (2,228) |
Net Investment Income and Rea_5
Net Investment Income and Realized Investment Gains (Losses) - Summary of Other Than Temporary Impairment Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Gain (Loss) on Securities [Line Items] | ||||
Other-than-temporary impairments | $ 0 | $ (6,968) | $ 0 | $ (6,968) |
Bonds | ||||
Gain (Loss) on Securities [Line Items] | ||||
Other-than-temporary impairments | $ 0 | $ (6,968) | $ 0 | $ (6,968) |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Carrying Amount and Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financial assets | ||
Fair value of bonds held-to-maturity | $ 8,713,716 | $ 8,968,690 |
Fixed maturity, bonds available-for-sale | 7,170,471 | 6,725,085 |
Equity securities | 1,714,264 | 1,700,960 |
Policy loans | 377,826 | 379,657 |
Separate account assets | 1,032,956 | 1,073,891 |
Financial liabilities | ||
Federal home loan bank advance | 500,000 | 0 |
Separate account liabilities | 1,032,956 | 1,073,891 |
Fair Value, Inputs, Level 1, 2 and 3 | ||
Financial assets | ||
Separate account assets | 1,005,889 | 1,049,938 |
Financial liabilities | ||
Separate account liabilities | 1,005,889 | 1,049,938 |
Carrying Amount | ||
Financial assets | ||
Fair value of bonds held-to-maturity | 8,238,405 | 8,631,261 |
Fixed maturity, bonds available-for-sale | 7,170,471 | 6,725,085 |
Equity securities | 1,714,264 | 1,700,960 |
Options | 191,486 | 256,005 |
Mortgage loans on real estate, net of allowance | 5,176,511 | 5,097,017 |
Policy loans | 377,826 | 379,657 |
Short-term investments | 501,087 | 425,321 |
Separate account assets | 1,032,956 | 1,073,891 |
Separately managed accounts | 51,537 | 50,503 |
Total financial assets | 24,454,543 | 24,339,700 |
Financial liabilities | ||
Investment contracts | 10,185,122 | 10,254,959 |
Embedded derivative liability for equity-indexed contracts | 675,970 | 731,552 |
Notes payable | 155,871 | 157,997 |
Federal home loan bank advance | 500,000 | 0 |
Separate account liabilities | 1,032,956 | 1,073,891 |
Total financial liabilities | 12,549,919 | 12,218,399 |
Fair Value | ||
Financial assets | ||
Fair value of bonds held-to-maturity | 8,713,716 | 8,968,690 |
Fixed maturity, bonds available-for-sale | 7,170,471 | 6,725,085 |
Equity securities | 1,714,264 | 1,700,960 |
Options | 191,486 | 256,005 |
Mortgage loans on real estate, net of allowance | 5,438,373 | 5,309,005 |
Policy loans | 377,826 | 379,657 |
Short-term investments | 501,087 | 425,321 |
Separate account assets | 1,032,956 | 1,073,891 |
Separately managed accounts | 51,537 | 50,503 |
Total financial assets | 25,191,716 | 24,889,117 |
Financial liabilities | ||
Investment contracts | 10,185,122 | 10,254,959 |
Embedded derivative liability for equity-indexed contracts | 675,970 | 731,552 |
Notes payable | 155,871 | 157,997 |
Federal home loan bank advance | 500,000 | 0 |
Separate account liabilities | 1,032,956 | 1,073,891 |
Total financial liabilities | $ 12,549,919 | $ 12,218,399 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Additional Information (Detail) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Unrealized gain (losses) relating to assets still held and included in net investment income | $ 59,948 | $ 84,756 | |
Price Volatility | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Equity volatility (as percent) | 0.244 | 0.113 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Schedule of Significant Unobservable Inputs Used to Calculate Level 3 Fair Value of Embedded Derivatives within Policyholder Contract Deposits (Detail) - Level 3 - Policyholder Contract Deposits - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Indexed Annuities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative financial liabilities | $ 659,200,000 | $ 706,500,000 |
Indexed Life | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative financial liabilities | $ 16,700,000 | $ 25,100,000 |
Minimum | Indexed Annuities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable input, lapse rate | 1.00% | 1.00% |
Unobservable input, mortality multiplier | 90.00% | 90.00% |
Unobservable input, equity volatility | 16.00% | 11.00% |
Minimum | Indexed Life | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable input, equity volatility | 16.00% | 11.00% |
Maximum | Indexed Annuities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable input, lapse rate | 70.00% | 70.00% |
Unobservable input, mortality multiplier | 100.00% | 100.00% |
Unobservable input, equity volatility | 65.00% | 46.00% |
Maximum | Indexed Life | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable input, equity volatility | 65.00% | 46.00% |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Quantitative Disclosures Regarding Fair Value Hierarchy Measurements (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financial assets | ||
Fixed maturity, bonds available-for-sale | $ 7,170,471 | $ 6,725,085 |
Equity securities | 1,714,264 | 1,700,960 |
Separate account assets | 1,032,956 | 1,073,891 |
Carrying value of bonds held-to-maturity | 8,260,819 | 8,631,261 |
Fair value of bonds held-to-maturity | 8,713,716 | 8,968,690 |
Policy loans | 377,826 | 379,657 |
Total financial assets | 28,994,963 | 28,597,566 |
Financial liabilities | ||
Separate account liabilities | 1,032,956 | 1,073,891 |
Notes payable | 155,871 | 157,997 |
Federal home loan bank advance | 500,000 | 0 |
Total financial liabilities | 23,022,022 | 22,601,803 |
U.S. treasury and government | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 29,808 | 29,941 |
U.S. states and political subdivisions | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 1,092,371 | 1,078,165 |
Carrying value of bonds held-to-maturity | 127,591 | 165,109 |
Fair value of bonds held-to-maturity | 131,799 | 170,114 |
Foreign governments | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 16,770 | 6,287 |
Carrying value of bonds held-to-maturity | 3,880 | 3,907 |
Fair value of bonds held-to-maturity | 4,361 | 4,349 |
Corporate debt securities | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 5,973,257 | 5,576,620 |
Carrying value of bonds held-to-maturity | 7,754,873 | 8,099,098 |
Fair value of bonds held-to-maturity | 8,199,639 | 8,424,969 |
Residential mortgage-backed securities | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 30,457 | 23,943 |
Carrying value of bonds held-to-maturity | 164,903 | 237,516 |
Fair value of bonds held-to-maturity | 170,326 | 242,828 |
Collateralized debt securities | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 27,808 | 10,129 |
Carrying value of bonds held-to-maturity | 209,572 | 125,631 |
Fair value of bonds held-to-maturity | 207,591 | 126,430 |
Recurring | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 7,170,471 | 6,725,085 |
Equity securities | 1,714,264 | 1,700,960 |
Options | 191,486 | 256,005 |
Short-term investments | 501,087 | 425,321 |
Separate account assets | 1,005,889 | 1,049,938 |
Separately managed accounts | 51,537 | 50,503 |
Total financial assets | 10,634,734 | 10,207,812 |
Financial liabilities | ||
Embedded derivative for equity-indexed contracts | 675,970 | 731,552 |
Separate account liabilities | 1,005,889 | 1,049,938 |
Total financial liabilities | 1,681,859 | 1,781,490 |
Recurring | Common stock | ||
Financial assets | ||
Equity securities | 1,696,311 | 1,682,149 |
Recurring | Preferred stock | ||
Financial assets | ||
Equity securities | 17,953 | 18,811 |
Recurring | U.S. treasury and government | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 29,808 | 29,941 |
Recurring | U.S. states and political subdivisions | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 1,092,371 | 1,078,165 |
Recurring | Foreign governments | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 16,770 | 6,287 |
Recurring | Corporate debt securities | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 5,973,257 | 5,576,620 |
Recurring | Residential mortgage-backed securities | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 30,457 | 23,943 |
Recurring | Collateralized debt securities | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 27,808 | 10,129 |
Recurring | Level 1 | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 0 | 0 |
Equity securities | 1,713,651 | 1,700,497 |
Options | 0 | 0 |
Short-term investments | 0 | 0 |
Separate account assets | 154,144 | 271,575 |
Separately managed accounts | 0 | 0 |
Total financial assets | 1,867,795 | 1,972,072 |
Financial liabilities | ||
Embedded derivative for equity-indexed contracts | 0 | 0 |
Separate account liabilities | 154,144 | 271,575 |
Total financial liabilities | 154,144 | 271,575 |
Recurring | Level 1 | Common stock | ||
Financial assets | ||
Equity securities | 1,696,159 | 1,681,686 |
Recurring | Level 1 | Preferred stock | ||
Financial assets | ||
Equity securities | 17,492 | 18,811 |
Recurring | Level 1 | U.S. treasury and government | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 0 | 0 |
Recurring | Level 1 | U.S. states and political subdivisions | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 0 | 0 |
Recurring | Level 1 | Foreign governments | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 0 | 0 |
Recurring | Level 1 | Corporate debt securities | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 0 | 0 |
Recurring | Level 1 | Residential mortgage-backed securities | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 0 | 0 |
Recurring | Level 1 | Collateralized debt securities | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 0 | 0 |
Recurring | Level 2 | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 7,066,793 | 6,680,241 |
Equity securities | 0 | 0 |
Options | 0 | 0 |
Short-term investments | 501,087 | 425,321 |
Separate account assets | 851,745 | 778,363 |
Separately managed accounts | 0 | 0 |
Total financial assets | 8,419,625 | 7,883,925 |
Financial liabilities | ||
Embedded derivative for equity-indexed contracts | 0 | 0 |
Separate account liabilities | 851,745 | 778,363 |
Total financial liabilities | 851,745 | 778,363 |
Recurring | Level 2 | Common stock | ||
Financial assets | ||
Equity securities | 0 | 0 |
Recurring | Level 2 | Preferred stock | ||
Financial assets | ||
Equity securities | 0 | 0 |
Recurring | Level 2 | U.S. treasury and government | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 29,808 | 29,941 |
Recurring | Level 2 | U.S. states and political subdivisions | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 1,092,371 | 1,078,165 |
Recurring | Level 2 | Foreign governments | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 16,770 | 6,287 |
Recurring | Level 2 | Corporate debt securities | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 5,869,579 | 5,531,776 |
Recurring | Level 2 | Residential mortgage-backed securities | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 30,457 | 23,943 |
Recurring | Level 2 | Collateralized debt securities | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 27,808 | 10,129 |
Recurring | Level 3 | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 103,678 | 44,844 |
Equity securities | 613 | 463 |
Options | 191,486 | 256,005 |
Short-term investments | 0 | 0 |
Separate account assets | 0 | 0 |
Separately managed accounts | 51,537 | 50,503 |
Total financial assets | 347,314 | 351,815 |
Financial liabilities | ||
Embedded derivative for equity-indexed contracts | 675,970 | 731,552 |
Separate account liabilities | 0 | 0 |
Total financial liabilities | 675,970 | 731,552 |
Recurring | Level 3 | Common stock | ||
Financial assets | ||
Equity securities | 152 | 463 |
Recurring | Level 3 | Preferred stock | ||
Financial assets | ||
Equity securities | 461 | 0 |
Recurring | Level 3 | U.S. treasury and government | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 0 | 0 |
Recurring | Level 3 | U.S. states and political subdivisions | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 0 | 0 |
Recurring | Level 3 | Foreign governments | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 0 | 0 |
Recurring | Level 3 | Corporate debt securities | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 103,678 | 44,844 |
Recurring | Level 3 | Residential mortgage-backed securities | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 0 | 0 |
Recurring | Level 3 | Collateralized debt securities | ||
Financial assets | ||
Fixed maturity, bonds available-for-sale | 0 | 0 |
Nonrecurring | ||
Financial assets | ||
Carrying value of bonds held-to-maturity | 8,238,405 | 8,631,261 |
Fair value of bonds held-to-maturity | 8,713,716 | 8,968,690 |
Total financial assets | 13,792,742 | 14,107,935 |
Total financial assets | 14,529,915 | 14,657,352 |
Financial liabilities | ||
Total financial liabilities | 10,840,993 | 10,412,956 |
Total financial liabilities | 10,840,993 | 10,412,956 |
Nonrecurring | Level 2 | U.S. states and political subdivisions | ||
Financial assets | ||
Carrying value of bonds held-to-maturity | 127,592 | 165,109 |
Fair value of bonds held-to-maturity | 131,799 | 170,114 |
Nonrecurring | Level 2 | Foreign governments | ||
Financial assets | ||
Carrying value of bonds held-to-maturity | 3,880 | 3,907 |
Fair value of bonds held-to-maturity | 4,361 | 4,349 |
Nonrecurring | Level 2 | Corporate debt securities | ||
Financial assets | ||
Carrying value of bonds held-to-maturity | 7,734,990 | 8,099,098 |
Fair value of bonds held-to-maturity | 8,199,640 | 8,424,969 |
Nonrecurring | Level 2 | Residential mortgage-backed securities | ||
Financial assets | ||
Carrying value of bonds held-to-maturity | 207,039 | 237,516 |
Fair value of bonds held-to-maturity | 170,326 | 242,828 |
Nonrecurring | Level 2 | Collateralized debt securities | ||
Financial assets | ||
Carrying value of bonds held-to-maturity | 164,904 | 125,631 |
Fair value of bonds held-to-maturity | 207,590 | 126,430 |
Nonrecurring | Level 3 | ||
Financial assets | ||
Mortgage loans on real estate, net of allowance | 5,176,511 | 5,097,017 |
Mortgage loans on real estate, net of allowance | 5,438,373 | 5,309,005 |
Policy loans | 377,826 | 379,657 |
Policy loans | 377,826 | 379,657 |
Financial liabilities | ||
Investment contracts | 10,185,122 | 10,254,959 |
Investment contracts | 10,185,122 | 10,254,959 |
Notes payable | 155,871 | 157,997 |
Notes payable | 155,871 | $ 157,997 |
Federal home loan bank advance | $ 500,000 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Financial Instruments Measured at Fair Value on Recurring Basis Using (Level 3) Inputs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Embedded Derivative | ||||
Fair Value, Liabilities Measured on Recurring Basis [Roll Forward] | ||||
Beginning balance | $ 630,952 | $ 668,485 | $ 731,552 | $ 596,075 |
Net gain (loss) for derivatives included in net investment income | 0 | 0 | 0 | 0 |
Net change included in interest credited | 62,491 | 36,255 | (27,090) | 94,411 |
Net fair value change included in other comprehensive income | 0 | 0 | 0 | 0 |
Purchases, sales and settlements or maturities | ||||
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | ||
Settlements or maturities | 0 | 0 | 0 | 0 |
Premiums less benefits | (17,473) | (9,064) | (28,492) | 5,190 |
Ending balance | 675,970 | 695,676 | 675,970 | 695,676 |
Investment Securities | ||||
Fair Value, Assets Measured on Recurring Basis [Roll Forward] | ||||
Beginning balance | 53,853 | 4,346 | 45,307 | 4,346 |
Net gain (loss) for derivatives included in net investment income | 0 | 0 | 0 | 0 |
Net change included in interest credited | 0 | 0 | 0 | 0 |
Net fair value change included in other comprehensive income | 0 | 0 | 0 | 0 |
Purchases, sales and settlements or maturities | ||||
Purchases | 86,467 | 0 | 109,169 | 0 |
Sales | (36,642) | (50,798) | ||
Settlements or maturities | 0 | 0 | 0 | 0 |
Premiums less benefits | 0 | 0 | 0 | 0 |
Ending balance | 103,678 | 4,346 | 103,678 | 4,346 |
Equity-Indexed Options | ||||
Fair Value, Assets Measured on Recurring Basis [Roll Forward] | ||||
Beginning balance | 125,988 | 216,156 | 256,005 | 148,006 |
Net gain (loss) for derivatives included in net investment income | 67,157 | 23,125 | (40,938) | 89,610 |
Net change included in interest credited | 0 | 0 | 0 | 0 |
Net fair value change included in other comprehensive income | 0 | 0 | 0 | 0 |
Purchases, sales and settlements or maturities | ||||
Purchases | 24,273 | 21,412 | 38,438 | 38,768 |
Sales | 0 | 0 | ||
Settlements or maturities | (25,932) | (29,649) | (62,019) | (45,340) |
Premiums less benefits | 0 | 0 | 0 | 0 |
Ending balance | 191,486 | 231,044 | 191,486 | 231,044 |
Separately Managed Accounts | ||||
Fair Value, Assets Measured on Recurring Basis [Roll Forward] | ||||
Beginning balance | 50,489 | 23,254 | 50,503 | 16,532 |
Net gain (loss) for derivatives included in net investment income | 0 | 0 | 0 | 0 |
Net change included in interest credited | 0 | 0 | 0 | 0 |
Net fair value change included in other comprehensive income | (4,046) | (11) | (4,060) | (2) |
Purchases, sales and settlements or maturities | ||||
Purchases | 9,042 | 7,412 | 9,042 | 14,125 |
Sales | (3,948) | (3,948) | ||
Settlements or maturities | 0 | 0 | 0 | 0 |
Premiums less benefits | 0 | 0 | 0 | 0 |
Ending balance | $ 51,537 | $ 30,655 | $ 51,537 | $ 30,655 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs - Deferred Policy Acquisition Costs (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Deferred Policy Acquisition Costs [Roll Forward] | |
Beginning balance | $ 1,423,007 |
Additions | 271,382 |
Amortization | (265,007) |
Effect of change in unrealized gains on bonds available-for-sale debt | (21,240) |
Net change | (14,865) |
Ending balance | 1,408,142 |
Life | |
Deferred Policy Acquisition Costs [Roll Forward] | |
Beginning balance | 852,900 |
Additions | 65,712 |
Amortization | (46,339) |
Effect of change in unrealized gains on bonds available-for-sale debt | (3,918) |
Net change | 15,455 |
Ending balance | 868,355 |
Annuity | |
Deferred Policy Acquisition Costs [Roll Forward] | |
Beginning balance | 415,380 |
Additions | 22,318 |
Amortization | (41,910) |
Effect of change in unrealized gains on bonds available-for-sale debt | (17,322) |
Net change | (36,914) |
Ending balance | 378,466 |
Health | |
Deferred Policy Acquisition Costs [Roll Forward] | |
Beginning balance | 32,578 |
Additions | 7,583 |
Amortization | (7,543) |
Effect of change in unrealized gains on bonds available-for-sale debt | 0 |
Net change | 40 |
Ending balance | 32,618 |
Property & Casualty | |
Deferred Policy Acquisition Costs [Roll Forward] | |
Beginning balance | 122,149 |
Additions | 175,769 |
Amortization | (169,215) |
Effect of change in unrealized gains on bonds available-for-sale debt | 0 |
Net change | 6,554 |
Ending balance | $ 128,703 |
Liability for Unpaid Claims a_3
Liability for Unpaid Claims and Claim Adjustment Expenses - Liability for Unpaid Claims and Claim Adjustment Expenses (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Liability For Unpaid Claims And Claims Adjustment Expense Net | ||
Unpaid claims balance, beginning | $ 1,489,979 | |
Paid claims related to | ||
Unpaid claims balance, ending | 1,548,523 | |
Property and Casualty Accident and Health | ||
Liability For Unpaid Claims And Claims Adjustment Expense Net | ||
Unpaid claims balance, beginning | 1,322,837 | $ 1,305,225 |
Less: Reinsurance recoverables | 246,447 | 254,466 |
Net beginning balance | 1,076,390 | 1,050,759 |
Incurred related to | ||
Current | 601,691 | 591,073 |
Prior years | (33,256) | (30,691) |
Total incurred claims | 568,435 | 560,382 |
Paid claims related to | ||
Current | 268,203 | 272,650 |
Prior years | 267,282 | 276,738 |
Total paid claims | 535,485 | 549,388 |
Net balance | 1,109,340 | 1,061,753 |
Plus: Reinsurance recoverables | 250,378 | 249,245 |
Unpaid claims balance, ending | $ 1,359,718 | $ 1,310,998 |
Liability for Unpaid Claims a_4
Liability for Unpaid Claims and Claim Adjustment Expenses - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | |
Insurance [Abstract] | |||
Description of increase (decrease) in claims and claim adjustment expenses | The net and gross reserve calculations have shown favorable development in 2020 as a result of favorable loss emergence compared to what was implied by the loss development patterns used in the original estimation of losses in prior years. | ||
Decrease in claims and claim adjustments expenses amount | $ 33,256 | $ 30,691 | |
Short-duration health insurance claims | $ 26,249 | $ 21,379 |
Federal Income Taxes - Effectiv
Federal Income Taxes - Effective Income Tax Reconciliation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) before tax on equity in earnings of unconsolidated affiliates | $ 58,008 | $ 21,819 | $ (4,686) | $ 81,606 |
Tax on equity in earnings of unconsolidated affiliates | (2,860) | 3,526 | 438 | 12,023 |
Total expected income tax expense (benefit) at the statutory rate | 55,148 | 25,345 | (4,248) | 93,629 |
Tax-exempt investment income | (1,061) | (1,109) | (2,088) | (1,918) |
Dividend exclusion | (1,443) | (860) | (2,305) | (1,781) |
Miscellaneous tax credits, net | (1,534) | (3,299) | (3,929) | (4,991) |
Low income housing tax credit expense | 982 | 1,783 | 2,756 | 2,941 |
Change in valuation allowance | 12 | 165 | 124 | 165 |
Other items, net | 93 | (77) | 219 | 1,280 |
Provision (benefit) for federal income taxes | $ 52,197 | $ 21,948 | $ (9,471) | $ 89,325 |
Income tax expense before tax on equity in earnings of unconsolidated affiliates, percentage | 22.10% | 18.10% | 23.20% | 18.30% |
Tax on equity in earnings of unconsolidated affiliates, percentage | (1.10%) | 2.90% | (2.20%) | 2.70% |
Total expected income tax expense at the statutory rate, percentage | 21.00% | 21.00% | 21.00% | 21.00% |
Tax-exempt investment income, percentage | (0.40%) | (0.90%) | 10.30% | (0.40%) |
Dividend exclusion, percentage | (0.50%) | (0.70%) | 11.40% | (0.40%) |
Miscellaneous tax credits, net, percentage | (0.60%) | (2.70%) | 19.40% | (1.10%) |
Low income housing tax credit expense, percentage | 0.40% | 1.50% | (13.60%) | 0.60% |
Change in valuation allowance, percentage | 0.00% | 0.10% | (0.60%) | 0.00% |
Other items, net, percentage | 0.00% | (0.10%) | (1.10%) | 0.30% |
Provision for federal income tax before interest expense, percentage | 19.90% | 18.20% | 46.80% | 20.00% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of the period | $ 5,607,089 | $ 5,592,919 | $ 5,995,763 | $ 5,271,515 |
Foreign currency adjustment, net of tax benefit | 339 | 746 | (585) | 590 |
Balance at end of the period | 5,972,941 | 5,767,582 | 5,972,941 | 5,767,582 |
Cumulative Effect, Period of Adoption, Adjustment | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of the period | 1,199 | (34,702) | 0 | |
Net Unrealized Gains (Losses) on Securities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of the period | 157,851 | (42,469) | ||
Amounts reclassified from AOCI, net of tax expense (benefit) | (1,687) | 2,126 | ||
Unrealized holding gains (losses) arising during the period, net of tax expense (benefit) | 83,831 | 219,402 | ||
Unrealized adjustment to DAC, net of tax expense (benefit) | (16,780) | (27,533) | ||
Unrealized gains (losses) on investments attributable to participating policyholders' interest, net of tax expense (benefit) | (3,991) | (10,121) | ||
Balance at end of the period | 219,224 | 157,571 | 219,224 | 157,571 |
Net Unrealized Gains (Losses) on Securities | Cumulative Effect, Period of Adoption, Adjustment | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of the period | 16,166 | |||
Defined Benefit Pension Plan Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of the period | (55,232) | (54,236) | ||
Amounts reclassified from AOCI, net of tax expense (benefit) | 3,605 | 2,911 | ||
Balance at end of the period | (51,627) | (67,818) | (51,627) | (67,818) |
Defined Benefit Pension Plan Adjustments | Cumulative Effect, Period of Adoption, Adjustment | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of the period | (16,493) | |||
Foreign Currency Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of the period | (3,101) | (3,033) | ||
Foreign currency adjustment, net of tax benefit | (585) | 590 | ||
Balance at end of the period | (3,686) | (2,901) | (3,686) | (2,901) |
Foreign Currency Adjustments | Cumulative Effect, Period of Adoption, Adjustment | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of the period | (458) | |||
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of the period | (12,053) | (13,749) | 99,518 | (99,738) |
Amounts reclassified from AOCI, net of tax expense (benefit) | 1,918 | 5,037 | ||
Unrealized holding gains (losses) arising during the period, net of tax expense (benefit) | 83,831 | 219,402 | ||
Unrealized adjustment to DAC, net of tax expense (benefit) | (16,780) | (27,533) | ||
Unrealized gains (losses) on investments attributable to participating policyholders' interest, net of tax expense (benefit) | (3,991) | (10,121) | ||
Foreign currency adjustment, net of tax benefit | (585) | 590 | ||
Balance at end of the period | $ 163,911 | $ 86,852 | 163,911 | 86,852 |
Amounts reclassified from AOCI, sale of securities tax expense (benefit) | (448) | 565 | ||
Amounts reclassified from AOCI, pension tax expense (benefit) | 959 | 774 | ||
Unrealized holding gains (losses) arising during the period, tax expense | 22,284 | 58,322 | ||
Unrealized adjustment to deferred policy acquisition costs, tax expense (benefit) | 4,460 | 7,320 | ||
Unrealized gains (losses) on investments attributable to participating policyholders' interest, tax expense (benefit) | 1,061 | 2,690 | ||
Foreign currency adjustment, tax expense (benefit) | $ 156 | 157 | ||
Accumulated Other Comprehensive Income (Loss) | Cumulative Effect, Period of Adoption, Adjustment | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of the period | $ (785) |
Stockholders' Equity and Nonc_3
Stockholders' Equity and Noncontrolling Interests - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock, par value (in usd per share) | $ 1 | $ 1 | $ 1 | |||||
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | 50,000,000 | |||||
Risk based capital action level percentage | 200.00% | |||||||
Cash dividends to common stockholders (in usd per share) | $ 0.82 | $ 0.82 | $ 0.82 | $ 0.82 | $ 0.82 | $ 0.82 | ||
Description of regulatory capital requirement | American National Insurance Company’s payment of dividends to its stockholder, American National Group, Inc. is restricted by insurance law. The restrictions require life insurance companies to maintain minimum amounts of capital and surplus, and in the absence of special approval, limit the payment of dividends to the greater of the prior year’s statutory net income from operations, or 10% of prior year statutory surplus. | |||||||
Noncontrolling interest | $ (6,255) | $ (6,255) | $ (6,014) | |||||
Scenario, Forecast | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Statutory amount available for dividend payments without regulatory approval | $ 347,773 | |||||||
Parent Company | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Statutory capital and surplus | 3,419,135 | 3,419,135 | 3,477,727 | |||||
Subsidiaries | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Noncontrolling equity | $ 736 | |||||||
Noncontrolling interest | 495 | $ 495 | ||||||
Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Risk based capital action level percentage | 200.00% | 200.00% | ||||||
Insurance Subsidiary | Missouri | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Statutory accounting practices permitted practice amount | $ 70,542 | $ 70,339 | ||||||
County Mutual | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Noncontrolling equity | $ 6,750 | $ 6,750 | $ 6,750 | |||||
Stock Appreciation Rights | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 5 years | |||||||
Expiration of vesting period | 5 years | |||||||
Stock Appreciation Rights | Share-based Compensation Award, Tranche One | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting rate per year | 20.00% | |||||||
Restricted Stock Awards | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 10 years | |||||||
Lapse restrictions on restricted stock awards | 10 years | |||||||
Shares granted (in shares) | 350,334 | 350,334 | ||||||
Exercise price of Restricted shares granted | $ 0 | |||||||
Number of shares unvested (in shares) | 10,000 | 10,000 | ||||||
Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period description | RSU awards to our directors and advisory directors are settled in cash based upon the market price of our common stock after one-year or earlier upon death, disability or retirement from service after age 65. | |||||||
Restricted Stock Units | Graded Vesting | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 1 year |
Stockholders' Equity and Nonc_4
Stockholders' Equity and Noncontrolling Interests - Common Stock, Amounts Outstanding (Detail) - shares | Jun. 30, 2020 | Dec. 31, 2019 |
Common Stock | ||
Shares issued (in shares) | 30,832,449 | 30,832,449 |
Treasury shares (in shares) | (3,945,249) | (3,945,249) |
Outstanding shares (in shares) | 26,887,200 | 26,887,200 |
Restricted shares (in shares) | (10,000) | (10,000) |
Unrestricted outstanding shares (in shares) | 26,877,200 | 26,877,200 |
Stockholders' Equity and Nonc_5
Stockholders' Equity and Noncontrolling Interests - Stock-Based Compensation Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Stock Appreciation Rights | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||||
Beginning balance (in shares) | 66 | ||||
Weighted-Average Grant Date Fair Value, Beginning balance (in dollars per share) | $ 110.83 | ||||
Expired (in shares) | (66) | ||||
Weighted-Average Grant Date Fair Value, Expired (in dollars per share) | $ 110.83 | ||||
Ending balance (in shares) | 0 | 0 | |||
Weighted-Average Grant Date Fair Value, Ending balance (in dollars per share) | $ 0 | $ 0 | |||
Weighted-average contractual remaining life (in years) | 0 years | ||||
Exercisable shares (in shares) | 0 | 0 | |||
Weighted-average exercise price (in dollars per share) | $ 0 | ||||
Weighted-average exercise price exercisable shares (in dollars per share) | $ 0 | $ 0 | |||
Compensation expense (credit) | $ 0 | $ (12,000) | $ (1,000) | $ (15,000) | |
Fair value of liability award | $ 0 | $ 0 | $ 1,000 | ||
Restricted Stock Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||||
Beginning balance (in shares) | 10,000 | ||||
Weighted-Average Grant Date Fair Value, Beginning balance (in dollars per share) | $ 80.05 | ||||
Ending balance (in shares) | 10,000 | 10,000 | |||
Weighted-Average Grant Date Fair Value, Ending balance (in dollars per share) | $ 80.05 | $ 80.05 | |||
Weighted-average contractual remaining life (in years) | 2 years 8 months 1 day | ||||
Weighted-average exercise price (in dollars per share) | $ 80.05 | ||||
Compensation expense (credit) | $ 20,000 | 20,000 | $ 40,000 | 40,000 | |
Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||||
Beginning balance (in shares) | 8,250 | ||||
Weighted-Average Grant Date Fair Value, Beginning balance (in dollars per share) | $ 113.19 | ||||
Granted (in shares) | 0 | ||||
Weighted-Average Grant Date Fair Value, Granted (in dollars per share) | $ 0 | ||||
Exercised (in shares) | (8,250) | ||||
Weighted-Average Grant Date Fair Value, Exercised (in dollars per share) | $ 113.19 | ||||
Ending balance (in shares) | 0 | 0 | |||
Weighted-Average Grant Date Fair Value, Ending balance (in dollars per share) | $ 0 | $ 0 | |||
Weighted-average contractual remaining life (in years) | 0 years | ||||
Weighted-average exercise price (in dollars per share) | $ 113.19 | ||||
Compensation expense (credit) | $ (14,000) | $ 578,000 | $ (184,000) | $ 941,000 | |
Fair value of liability award | $ 0 | $ 0 | $ 971,000 |
Stockholders' Equity and Nonc_6
Stockholders' Equity and Noncontrolling Interests - Summary of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Equity [Abstract] | ||||||
Weighted average shares outstanding (in shares) | 26,878,684 | 26,881,700 | 26,880,183 | 26,883,699 | ||
Incremental shares form RS award and RSUs (in shares) | 8,445 | 7,264 | 9,265 | 6,237 | ||
Total shares for diluted calculations (in shares) | 26,887,129 | 26,888,964 | 26,889,448 | 26,889,936 | ||
Net income (loss) attributable to American National (in thousands) | $ 210,545 | $ (220,444) | $ 98,840 | $ 258,217 | $ (9,899) | $ 357,057 |
Basic earnings per share (in usd per share) | $ 7.83 | $ 3.68 | $ (0.37) | $ 13.28 | ||
Diluted earnings per share (in usd per share) | $ 7.83 | $ 3.67 | $ (0.37) | $ 13.28 |
Stockholders' Equity and Nonc_7
Stockholders' Equity and Noncontrolling Interests - Statutory Capital and Surplus and Net Income of Insurance Entities in Accordance with Statutory Accounting Practices (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Life insurance entities | |||||
Statutory Accounting Practices [Line Items] | |||||
Statutory capital and surplus | $ 2,086,978 | $ 2,086,978 | $ 2,159,770 | ||
Statutory net income (loss) | (28,301) | $ 12,782 | 26,674 | $ 5,698 | |
Property and casualty insurance entities | |||||
Statutory Accounting Practices [Line Items] | |||||
Statutory capital and surplus | 1,343,222 | 1,343,222 | $ 1,329,782 | ||
Statutory net income (loss) | $ (12,975) | $ 12,344 | $ 35,278 | $ 50,464 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2020segment | |
Segment Reporting [Abstract] | |
Segment information, number of operating segments | 5 |
Segment Information - Summary o
Segment Information - Summary of Results of Operations Measured as Income Before Federal Income Taxes and Other Items by Operating Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Premiums | $ 533,263 | $ 556,272 | $ 1,070,031 | $ 1,092,509 |
Other policy revenues | 79,787 | 75,146 | 159,392 | 149,394 |
Net investment income | 287,348 | 257,730 | 402,632 | 550,076 |
Net realized investment gains (losses) | 3,939 | (9,905) | 8,087 | (6,958) |
Change in investment credit loss | (52,310) | 0 | (96,988) | 0 |
Net gains on equity securities | 298,825 | 67,060 | (33,750) | 273,437 |
Other income | 10,336 | 10,374 | 21,469 | 21,912 |
Total premiums and other revenues | 1,161,188 | 956,677 | 1,530,873 | 2,080,370 |
Policyholder benefits | 169,924 | 177,250 | 315,192 | 345,476 |
Claims incurred | 307,287 | 298,316 | 571,881 | 562,227 |
Interest credited to policyholders’ account balances | 146,783 | 123,687 | 142,460 | 264,921 |
Commissions for acquiring and servicing policies | 140,490 | 141,295 | 270,925 | 279,940 |
Other operating expenses | 125,177 | 129,533 | 259,103 | 263,143 |
Change in deferred policy acquisition costs | (4,703) | (17,308) | (6,375) | (23,939) |
Total benefits, losses and expenses | 884,958 | 852,773 | 1,553,186 | 1,691,768 |
Income (loss) before federal income tax and other items | 276,230 | 103,904 | (22,313) | 388,602 |
Life | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 91,670 | 86,087 | 181,186 | 172,555 |
Other policy revenues | 76,226 | 70,610 | 151,766 | 140,854 |
Net investment income | 73,645 | 63,916 | 119,220 | 132,672 |
Net realized investment gains (losses) | 0 | 0 | 0 | 0 |
Change in investment credit loss | 0 | 0 | ||
Net gains on equity securities | 0 | 0 | 0 | 0 |
Other income | 440 | 469 | 1,176 | 1,145 |
Total premiums and other revenues | 241,981 | 221,082 | 453,348 | 447,226 |
Policyholder benefits | 124,941 | 104,462 | 235,407 | 213,927 |
Claims incurred | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 25,201 | 15,197 | 23,298 | 35,516 |
Commissions for acquiring and servicing policies | 41,287 | 40,881 | 80,754 | 78,623 |
Other operating expenses | 44,505 | 46,669 | 91,985 | 95,647 |
Change in deferred policy acquisition costs | (11,535) | (9,205) | (19,373) | (14,040) |
Total benefits, losses and expenses | 224,399 | 198,004 | 412,071 | 409,673 |
Income (loss) before federal income tax and other items | 17,582 | 23,078 | 41,277 | 37,553 |
Annuity | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 25,944 | 56,222 | 41,453 | 96,129 |
Other policy revenues | 3,561 | 4,536 | 7,626 | 8,540 |
Net investment income | 189,842 | 155,355 | 231,383 | 346,066 |
Net realized investment gains (losses) | 0 | 0 | 0 | 0 |
Change in investment credit loss | 0 | 0 | ||
Net gains on equity securities | 0 | 0 | 0 | 0 |
Other income | 795 | 574 | 1,433 | 1,263 |
Total premiums and other revenues | 220,142 | 216,687 | 281,895 | 451,998 |
Policyholder benefits | 44,983 | 72,788 | 79,785 | 131,549 |
Claims incurred | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 121,582 | 108,490 | 119,162 | 229,405 |
Commissions for acquiring and servicing policies | 11,657 | 23,139 | 21,905 | 50,005 |
Other operating expenses | 11,746 | 13,349 | 23,622 | 25,823 |
Change in deferred policy acquisition costs | 12,306 | (4,369) | 19,592 | (7,389) |
Total benefits, losses and expenses | 202,274 | 213,397 | 264,066 | 429,393 |
Income (loss) before federal income tax and other items | 17,868 | 3,290 | 17,829 | 22,605 |
Health | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 42,945 | 42,224 | 86,031 | 80,905 |
Other policy revenues | 0 | 0 | 0 | 0 |
Net investment income | 2,214 | 2,376 | 4,447 | 4,796 |
Net realized investment gains (losses) | 0 | 0 | 0 | 0 |
Change in investment credit loss | 0 | 0 | ||
Net gains on equity securities | 0 | 0 | 0 | 0 |
Other income | 5,503 | 5,534 | 10,030 | 10,919 |
Total premiums and other revenues | 50,662 | 50,134 | 100,508 | 96,620 |
Policyholder benefits | 0 | 0 | 0 | 0 |
Claims incurred | 26,726 | 26,708 | 61,611 | 52,475 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
Commissions for acquiring and servicing policies | 7,160 | 8,692 | 15,184 | 15,570 |
Other operating expenses | 9,476 | 10,707 | 20,105 | 21,699 |
Change in deferred policy acquisition costs | (17) | (146) | (40) | 661 |
Total benefits, losses and expenses | 43,345 | 45,961 | 96,860 | 90,405 |
Income (loss) before federal income tax and other items | 7,317 | 4,173 | 3,648 | 6,215 |
Property & Casualty | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 372,704 | 371,739 | 761,361 | 742,920 |
Other policy revenues | 0 | 0 | 0 | 0 |
Net investment income | 16,037 | 16,706 | 32,122 | 31,728 |
Net realized investment gains (losses) | 0 | 0 | 0 | 0 |
Change in investment credit loss | 0 | 0 | ||
Net gains on equity securities | 0 | 0 | 0 | 0 |
Other income | 2,844 | 2,830 | 6,577 | 5,552 |
Total premiums and other revenues | 391,585 | 391,275 | 800,060 | 780,200 |
Policyholder benefits | 0 | 0 | 0 | 0 |
Claims incurred | 280,561 | 271,608 | 510,270 | 509,752 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
Commissions for acquiring and servicing policies | 80,386 | 68,583 | 153,082 | 135,742 |
Other operating expenses | 50,080 | 49,681 | 103,084 | 101,566 |
Change in deferred policy acquisition costs | (5,457) | (3,588) | (6,554) | (3,171) |
Total benefits, losses and expenses | 405,570 | 386,284 | 759,882 | 743,889 |
Income (loss) before federal income tax and other items | (13,985) | 4,991 | 40,178 | 36,311 |
Corporate & Other | ||||
Segment Reporting Information [Line Items] | ||||
Premiums | 0 | 0 | 0 | 0 |
Other policy revenues | 0 | 0 | 0 | 0 |
Net investment income | 5,610 | 19,377 | 15,460 | 34,814 |
Net realized investment gains (losses) | 3,939 | (9,905) | 8,087 | (6,958) |
Change in investment credit loss | (52,310) | (96,988) | ||
Net gains on equity securities | 298,825 | 67,060 | (33,750) | 273,437 |
Other income | 754 | 967 | 2,253 | 3,033 |
Total premiums and other revenues | 256,818 | 77,499 | (104,938) | 304,326 |
Policyholder benefits | 0 | 0 | 0 | 0 |
Claims incurred | 0 | 0 | 0 | 0 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 | 0 |
Commissions for acquiring and servicing policies | 0 | 0 | 0 | 0 |
Other operating expenses | 9,370 | 9,127 | 20,307 | 18,408 |
Change in deferred policy acquisition costs | 0 | 0 | 0 | 0 |
Total benefits, losses and expenses | 9,370 | 9,127 | 20,307 | 18,408 |
Income (loss) before federal income tax and other items | $ 247,448 | $ 68,372 | $ (125,245) | $ 285,918 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 1 Months Ended | 6 Months Ended | |
May 31, 2018 | Jun. 30, 2020 | Dec. 31, 2019 | |
Financing Receivable, Impaired [Line Items] | |||
Remaining long-term lease commitments | $ 12,287,000 | ||
Commitments outstanding, aggregate amount | 1,333,284,000 | ||
Commitments expected to be funded in 2019 | 357,404,000 | ||
Short-term borrowing facility, maximum capacity | 100,000,000 | ||
Short-term borrowing facility, letters of credit | 55,000,000 | ||
Letters of credit outstanding, amount | $ 3,484,000 | $ 3,484,000 | |
Short-term borrowing facility, expiration date | Oct. 31, 2020 | ||
FHLB stock purchased | $ 7,000,000 | ||
Federal home loan bank advance | $ 500,000,000 | $ 0 | |
Federal home bank advance, additional borrowing capacity | 454,000,000 | ||
Total amount of guarantees outstanding | 121,379,000 | ||
Life insurance policies with guarantees, cash value | 141,054,000 | ||
Collateralized Mortgage Obligations | |||
Financing Receivable, Impaired [Line Items] | |||
Fair value of collateral held at FHLB | 103,400,000 | ||
Commercial Mortgage Loans | |||
Financing Receivable, Impaired [Line Items] | |||
Fair value of collateral held at FHLB | $ 1,500,000,000 |
Commitment and Contingencies -
Commitment and Contingencies - FHLB Outstanding Advances (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Federal Home Loan Bank, Advances [Line Items] | ||
Federal home loan bank advance | $ 500,000 | $ 0 |
FHLB Advance, Maturity Date October 13, 2020 | Federal Home Loan Bank Advances | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal home loan bank advance | $ 250,000 | |
Interest Rate | 0.25% | |
FHLB Advance, Maturity Date April 28, 2021 | Federal Home Loan Bank Advances | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal home loan bank advance | $ 250,000 | |
Interest Rate | 0.38% |
Related Party Transactions - Re
Related Party Transactions - Related Party Transactions (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Gal-Tex Hotel Corporation | Mortgage loan on real estate | |||||
Related Party Transaction [Line Items] | |||||
Amount due to (from) American National | $ 0 | $ 0 | $ 0 | ||
Gal-Tex Hotel Corporation | Net investment income | |||||
Related Party Transaction [Line Items] | |||||
Amount due to (from) American National | 0 | 0 | 0 | ||
Gal-Tex Hotel Corporation | Mortgage loan on real estate | |||||
Related Party Transaction [Line Items] | |||||
Dollar amount of transactions | 0 | $ 145 | 0 | $ 576 | |
Gal-Tex Hotel Corporation | Net investment income | |||||
Related Party Transaction [Line Items] | |||||
Dollar amount of transactions | 0 | 1 | 0 | 9 | |
Greer, Herz & Adams, LLP | Other operating expenses | |||||
Related Party Transaction [Line Items] | |||||
Amount due to (from) American National | (497) | (497) | $ (519) | ||
Greer, Herz & Adams, LLP | Other operating expenses | |||||
Related Party Transaction [Line Items] | |||||
Dollar amount of transactions | $ 3,251 | $ 3,007 | $ 7,094 | $ 5,896 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Affiliate | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transaction [Line Items] | |
Interest rate on mortgage loans | 7.25% |
Due date of mortgage loans receivable | Apr. 1, 2019 |
Moody Foundation | Gal-Tex | |
Related Party Transaction [Line Items] | |
Noncontrolling owners, ownership percentage | 34.00% |
Moody Foundation | American National | |
Related Party Transaction [Line Items] | |
Noncontrolling owners, ownership percentage | 22.75% |
Libbie Shearn Moody Trust | Gal-Tex | |
Related Party Transaction [Line Items] | |
Noncontrolling owners, ownership percentage | 50.20% |
Libbie Shearn Moody Trust | American National | |
Related Party Transaction [Line Items] | |
Noncontrolling owners, ownership percentage | 37.00% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | Jul. 01, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | |||
Common stock, par value (in usd per share) | $ 1 | $ 1 | |
Subsequent Event | ANICO Stock | |||
Subsequent Event [Line Items] | |||
Common stock, par value (in usd per share) | $ 1 | ||
Subsequent Event | ANG Stock | |||
Subsequent Event [Line Items] | |||
Common stock, par value (in usd per share) | $ 0.01 |