Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 06, 2016 | Jun. 30, 2015 | |
Document and Entity Information | |||
Entity Registrant Name | PROTECTIVE LIFE CORP | ||
Entity Central Index Key | 355,429 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 1,000 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Successor | ||||
Revenues | ||||
Premiums and policy fees | $ 3,008,050 | |||
Reinsurance ceded | (1,154,978) | |||
Net of reinsurance ceded | 1,853,072 | |||
Net investment income | 1,632,948 | |||
Realized investment gains (losses): | ||||
Derivative financial instruments | 29,997 | |||
All other investments | (166,886) | |||
Other-than-temporary impairment losses | (28,659) | |||
Portion recognized in other comprehensive income (before taxes) | 1,666 | |||
Net impairment losses recognized in earnings | (26,993) | |||
Other income | 388,531 | |||
Total revenues | 3,710,669 | |||
Benefits and expenses | ||||
Benefits and settlement expenses, net of reinsurance ceded: (2015 Successor - $1,025,596); (Predecessor 2015 - $87,674; 2014 - $1,226,307; 2013 - $1,209,783) | 2,539,943 | |||
Amortization of deferred policy acquisition costs and value of business acquired | 94,056 | |||
Other operating expenses, net of reinsurance ceded: (2015 Successor - $191,346); (Predecessor 2015 - $35,036; 2014 - $196,923; 2013 - $196,311) | 676,828 | |||
Total benefits and expenses | 3,310,827 | |||
Income before income tax | 399,842 | |||
Income tax expense | ||||
Current | 1,471 | |||
Deferred | 130,072 | |||
Total income tax expense | 131,543 | |||
Net income | $ 268,299 | |||
Predecessor | ||||
Revenues | ||||
Premiums and policy fees | $ 261,866 | $ 3,297,768 | $ 2,981,651 | |
Reinsurance ceded | (89,956) | (1,373,597) | (1,377,195) | |
Net of reinsurance ceded | 171,910 | 1,924,171 | 1,604,456 | |
Net investment income | 175,180 | 2,197,724 | 1,918,081 | |
Realized investment gains (losses): | ||||
Derivative financial instruments | (123,274) | (346,878) | 188,131 | |
All other investments | 81,153 | 205,402 | (123,537) | |
Other-than-temporary impairment losses | (636) | (2,589) | (10,941) | |
Portion recognized in other comprehensive income (before taxes) | 155 | (4,686) | (11,506) | |
Net impairment losses recognized in earnings | (481) | (7,275) | (22,447) | |
Other income | 36,421 | 430,428 | 394,315 | |
Total revenues | 340,909 | 4,403,572 | 3,958,999 | |
Benefits and expenses | ||||
Benefits and settlement expenses, net of reinsurance ceded: (2015 Successor - $1,025,596); (Predecessor 2015 - $87,674; 2014 - $1,226,307; 2013 - $1,209,783) | 267,287 | 2,791,610 | 2,479,757 | |
Amortization of deferred policy acquisition costs and value of business acquired | 4,072 | 257,309 | 192,898 | |
Other operating expenses, net of reinsurance ceded: (2015 Successor - $191,346); (Predecessor 2015 - $35,036; 2014 - $196,923; 2013 - $196,311) | 68,368 | 771,364 | 695,971 | |
Total benefits and expenses | 339,727 | 3,820,283 | 3,368,626 | |
Income before income tax | 1,182 | 583,289 | 590,373 | |
Income tax expense | ||||
Current | (31,118) | 197,943 | 21,855 | |
Deferred | 30,791 | 471 | 175,054 | |
Total income tax expense | (327) | 198,414 | 196,909 | |
Net income | $ 1,509 | $ 384,875 | $ 393,464 | |
Net income - basic (in dollars per share) | $ 0.02 | $ 4.81 | $ 4.96 | |
Net income - diluted (in dollars per share) | 0.02 | 4.73 | 4.86 | |
Cash dividends paid per share (in dollars per share) | $ 0 | $ 0.92 | $ 0.78 | |
Average shares outstanding - basic (in shares) | 80,452,848 | 80,065,217 | 79,395,622 | |
Average shares outstanding - diluted (in shares) | 81,759,287 | 81,375,496 | 80,925,713 |
CONSOLIDATED STATEMENTS OF INC3
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Successor | ||||
Benefits and settlement expenses, reinsurance ceded | $ 1,025,596 | |||
Other operating expenses, reinsurance ceded | $ 191,346 | |||
Predecessor | ||||
Benefits and settlement expenses, reinsurance ceded | $ 87,674 | $ 1,226,307 | $ 1,209,783 | |
Other operating expenses, reinsurance ceded | $ 35,036 | $ 196,923 | $ 196,311 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Successor | ||||
Net income | $ 268,299 | |||
Other comprehensive income (loss): | ||||
Change in net unrealized gains (losses) on investments, net of income tax: (2015 Successor - $(680,634)); (Predecessor 2015 - $259,738; 2014 - $531,439; 2013 - $(673,345)) | (1,264,034) | |||
Reclassification adjustment for investment amounts included in net income, net of income tax: (2015 Successor - $9,349); (Predecessor 2015 - $(2,244); 2014 - $(24,387); 2013 - $(15,403)) | 17,362 | |||
Change in net unrealized gains (losses) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings, net of income tax: (2015 Successor - $(212)); (Predecessor 2015 - $(131); 2014 - $1,883; 2013 - $2,472) | (393) | |||
Change in accumulated (loss) gain—derivatives, net of income tax: (2015 Successor - $(45)); (Predecessor 2015 - $5; 2014 - $(1); 2013 - $395) | (86) | |||
Reclassification adjustment for derivative amounts included in net income, net of income tax: (2015 Successor - $45); (Predecessor 2015 - $13; 2014 - $622; 2013 - $822) | 86 | |||
Change in postretirement benefits liability adjustment, net of income tax: (2015 Successor - $3,194); (Predecessor 2015 - $(6,475); 2014 - $(12,013); 2013 - $15,936) | 5,931 | |||
Total other comprehensive income (loss) | (1,241,134) | |||
Total comprehensive income (loss) | $ (972,835) | |||
Predecessor | ||||
Net income | $ 1,509 | $ 384,875 | $ 393,464 | |
Other comprehensive income (loss): | ||||
Change in net unrealized gains (losses) on investments, net of income tax: (2015 Successor - $(680,634)); (Predecessor 2015 - $259,738; 2014 - $531,439; 2013 - $(673,345)) | 482,370 | 986,958 | (1,250,498) | |
Reclassification adjustment for investment amounts included in net income, net of income tax: (2015 Successor - $9,349); (Predecessor 2015 - $(2,244); 2014 - $(24,387); 2013 - $(15,403)) | (4,166) | (45,290) | (28,606) | |
Change in net unrealized gains (losses) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings, net of income tax: (2015 Successor - $(212)); (Predecessor 2015 - $(131); 2014 - $1,883; 2013 - $2,472) | (243) | 3,498 | 4,591 | |
Change in accumulated (loss) gain—derivatives, net of income tax: (2015 Successor - $(45)); (Predecessor 2015 - $5; 2014 - $(1); 2013 - $395) | 9 | (2) | 734 | |
Reclassification adjustment for derivative amounts included in net income, net of income tax: (2015 Successor - $45); (Predecessor 2015 - $13; 2014 - $622; 2013 - $822) | 23 | 1,155 | 1,527 | |
Change in postretirement benefits liability adjustment, net of income tax: (2015 Successor - $3,194); (Predecessor 2015 - $(6,475); 2014 - $(12,013); 2013 - $15,936) | (12,025) | (22,309) | 29,596 | |
Total other comprehensive income (loss) | 465,968 | 924,010 | (1,242,656) | |
Total comprehensive income (loss) | $ 467,477 | $ 1,308,885 | $ (849,192) |
CONSOLIDATED STATEMENTS OF COM5
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Successor | ||||
Change in net unrealized gains (losses) on investments, income tax | $ (680,634) | |||
Reclassification adjustment for investment amounts included in net income, income tax | 9,349 | |||
Change in net unrealized gains (losses) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings, income tax | (212) | |||
Change in accumulated (loss) gain - derivatives, income tax | (45) | |||
Reclassification adjustment for derivative amounts included in net income, income tax | 45 | |||
Change in postretirement benefits liability adjustment, income tax | $ 3,194 | |||
Predecessor | ||||
Change in net unrealized gains (losses) on investments, income tax | $ 259,738 | $ 531,439 | $ (673,345) | |
Reclassification adjustment for investment amounts included in net income, income tax | (2,244) | (24,387) | (15,403) | |
Change in net unrealized gains (losses) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings, income tax | (131) | 1,883 | 2,472 | |
Change in accumulated (loss) gain - derivatives, income tax | 5 | (1) | 395 | |
Reclassification adjustment for derivative amounts included in net income, income tax | 13 | 622 | 822 | |
Change in postretirement benefits liability adjustment, income tax | $ (6,475) | $ (12,013) | $ 15,936 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Goodwill | $ 732,400 | |
Successor | ||
Assets | ||
Fixed maturities, at fair value (amortized cost: 2015 Successor - $38,457,049; 2014 Predecessor - $33,738,242) | 35,573,250 | |
Fixed maturities, at amortized cost (fair value: 2015 Successor - $515,000; 2014 Predecessor - $485,422) | 593,314 | |
Equity securities, at fair value (cost: 2015 Successor - $732,485; 2014 Predecessor - $778,744) | 739,263 | |
Mortgage loans (related to securitizations: 2015 Successor - $359,181; 2014 Predecessor - $455,250) | 5,662,812 | |
Investment real estate, net of accumulated depreciation (2015 Successor - $133; 2014 Predecessor - $246) | 11,118 | |
Policy loans | 1,699,508 | |
Other long-term investments | 622,567 | |
Short-term investments | 268,718 | |
Total investments | 45,170,550 | |
Cash | 396,072 | |
Accrued investment income | 473,598 | |
Accounts and premiums receivable | 62,459 | |
Reinsurance receivables | 5,536,751 | |
Deferred policy acquisition costs and value of business acquired | 1,558,808 | |
Goodwill | 732,443 | |
Other intangibles, net of accumulated depreciation (2015 Successor - $37,869) | 645,131 | |
Property and equipment, net of accumulated depreciation (2015 Successor - $8,277; 2014 Predecessor - $118,487) | 102,865 | |
Other assets | 153,222 | |
Assets related to separate accounts | ||
Variable annuity | 12,829,188 | |
Variable universal life | 827,610 | |
Total assets | 68,488,697 | |
Liabilities | ||
Future policy benefits and claims | 29,703,897 | |
Unearned premiums | 723,536 | |
Total policy liabilities and accruals | 30,427,433 | |
Stable value product account balances | 2,131,822 | |
Annuity account balances | 10,719,862 | |
Other policyholders' funds | 1,069,572 | |
Other liabilities | 1,693,310 | |
Income tax payable | 49,957 | |
Deferred income taxes | 997,281 | |
Non-recourse funding obligations | 685,684 | |
Repurchase program borrowings | 438,185 | |
Debt | 1,588,806 | |
Subordinated debt securities | 448,763 | |
Liabilities related to separate accounts | ||
Variable annuity | 12,829,188 | |
Variable universal life | 827,610 | |
Total liabilities | $ 63,907,473 | |
Commitments and contingencies—Note 13 | ||
Shareowner's equity | ||
Preferred Stock; (Predecessor) $1 par value, shares authorized: 4,000,000; Issued: None | ||
Common Stock, 2015 (Successor) and 2014 (Predecessor) - $.01 par value and $.50 par value; shares authorized: 5,000 and 160,000,000; shares issued: 1,000 and 88,776,960, respectively | $ 0 | |
Additional paid-in-capital | 5,554,059 | |
Treasury stock, at cost (2014 Predecessor - 9,435,255 shares) | 0 | |
Retained earnings | 268,299 | |
Accumulated other comprehensive income (loss): | ||
Net unrealized gains (losses) on investments, net of income tax: (2015 Successor - $(671,285): 2014 Predecessor - $796,960) | (1,246,672) | |
Net unrealized (losses) gains relating to other-than-temporary impaired investments for which a portion has been recognized in earnings, net of income tax: (2015 Successor - $(212): 2014 Predecessor - $2,208) | (393) | |
Accumulated loss—derivatives, net of income tax: (2015 Successor - $0; 2014 Predecessor - $(45)) | 0 | |
Postretirement benefits liability adjustment, net of income tax: (2015 Successor - $3,194; 2014 Predecessor - $(35,545)) | 5,931 | |
Total shareowner's equity | 4,581,224 | |
Total liabilities and shareowner's equity | $ 68,488,697 | |
Predecessor | ||
Assets | ||
Fixed maturities, at fair value (amortized cost: 2015 Successor - $38,457,049; 2014 Predecessor - $33,738,242) | $ 36,775,989 | |
Fixed maturities, at amortized cost (fair value: 2015 Successor - $515,000; 2014 Predecessor - $485,422) | 435,000 | |
Equity securities, at fair value (cost: 2015 Successor - $732,485; 2014 Predecessor - $778,744) | 803,230 | |
Mortgage loans (related to securitizations: 2015 Successor - $359,181; 2014 Predecessor - $455,250) | 5,133,780 | |
Investment real estate, net of accumulated depreciation (2015 Successor - $133; 2014 Predecessor - $246) | 5,918 | |
Policy loans | 1,758,237 | |
Other long-term investments | 514,639 | |
Short-term investments | 250,645 | |
Total investments | 45,677,438 | |
Cash | 379,411 | |
Accrued investment income | 474,522 | |
Accounts and premiums receivable | 84,458 | |
Reinsurance receivables | 6,106,113 | |
Deferred policy acquisition costs and value of business acquired | 3,294,570 | |
Goodwill | 102,365 | |
Other intangibles, net of accumulated depreciation (2015 Successor - $37,869) | 0 | |
Property and equipment, net of accumulated depreciation (2015 Successor - $8,277; 2014 Predecessor - $118,487) | 52,853 | |
Other assets | 316,207 | |
Assets related to separate accounts | ||
Variable annuity | 13,157,429 | |
Variable universal life | 834,940 | |
Total assets | 70,480,306 | |
Liabilities | ||
Future policy benefits and claims | 29,944,890 | |
Unearned premiums | 1,574,077 | |
Total policy liabilities and accruals | 31,518,967 | |
Stable value product account balances | 1,959,488 | |
Annuity account balances | 10,950,729 | |
Other policyholders' funds | 1,430,325 | |
Other liabilities | 1,621,168 | |
Income tax payable | 23,901 | |
Deferred income taxes | 1,545,478 | |
Non-recourse funding obligations | 582,404 | |
Repurchase program borrowings | 50,000 | |
Debt | 1,300,000 | |
Subordinated debt securities | 540,593 | |
Liabilities related to separate accounts | ||
Variable annuity | 13,157,429 | |
Variable universal life | 834,940 | |
Total liabilities | $ 65,515,422 | |
Commitments and contingencies—Note 13 | ||
Shareowner's equity | ||
Preferred Stock; (Predecessor) $1 par value, shares authorized: 4,000,000; Issued: None | ||
Common Stock, 2015 (Successor) and 2014 (Predecessor) - $.01 par value and $.50 par value; shares authorized: 5,000 and 160,000,000; shares issued: 1,000 and 88,776,960, respectively | $ 44,388 | |
Additional paid-in-capital | 606,125 | |
Treasury stock, at cost (2014 Predecessor - 9,435,255 shares) | (185,705) | |
Retained earnings | 3,082,000 | |
Accumulated other comprehensive income (loss): | ||
Net unrealized gains (losses) on investments, net of income tax: (2015 Successor - $(671,285): 2014 Predecessor - $796,960) | 1,480,068 | |
Net unrealized (losses) gains relating to other-than-temporary impaired investments for which a portion has been recognized in earnings, net of income tax: (2015 Successor - $(212): 2014 Predecessor - $2,208) | 4,101 | |
Accumulated loss—derivatives, net of income tax: (2015 Successor - $0; 2014 Predecessor - $(45)) | (82) | |
Postretirement benefits liability adjustment, net of income tax: (2015 Successor - $3,194; 2014 Predecessor - $(35,545)) | (66,011) | |
Total shareowner's equity | 4,964,884 | |
Total liabilities and shareowner's equity | $ 70,480,306 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Common Stock, shares issued (in shares) | 88,776,960 | |
Treasury stock, shares (in shares) | 9,435,255 | |
Successor | ||
Fixed maturities, amortized cost | $ 38,457,049 | |
Fixed maturities at amortized cost, fair value | 515,000 | |
Equity securities, cost | 732,485 | |
Mortgage loans, related to securitizations | 359,181 | |
Investment real estate, accumulated depreciation | 133 | |
Other intangibles, accumulated depreciation | 37,869 | |
Property and equipment, accumulated depreciation | $ 8,277 | |
Preferred Stock, par value (in dollars per share) | $ 0 | |
Preferred Stock, shares authorized (in shares) | 0 | |
Preferred Stock, shares issued (in shares) | 0 | |
Common Stock, par value (in dollars per share) | $ 0.01 | |
Common Stock, shares authorized (in shares) | 5,000 | |
Common Stock, shares issued (in shares) | 1,000 | |
Treasury stock, shares (in shares) | 0 | |
Net unrealized gains (losses) on investments, income tax | $ (671,285) | |
Net unrealized (losses) gains relating to other-than-temporary impaired investments for which a portion has been recognized in earnings, income tax | (212) | |
Accumulated loss - derivatives, income tax | 0 | |
Postretirement benefits liability adjustment, income tax | $ 3,194 | |
Predecessor | ||
Fixed maturities, amortized cost | $ 33,738,242 | |
Fixed maturities at amortized cost, fair value | 485,422 | |
Equity securities, cost | 778,744 | |
Mortgage loans, related to securitizations | 455,250 | |
Investment real estate, accumulated depreciation | 246 | |
Property and equipment, accumulated depreciation | $ 118,487 | |
Preferred Stock, par value (in dollars per share) | $ 1 | |
Preferred Stock, shares authorized (in shares) | 4,000,000 | |
Preferred Stock, shares issued (in shares) | 0 | |
Common Stock, par value (in dollars per share) | $ 0.50 | |
Common Stock, shares authorized (in shares) | 160,000,000 | |
Common Stock, shares issued (in shares) | 88,776,960 | |
Treasury stock, shares (in shares) | 9,435,255 | |
Net unrealized gains (losses) on investments, income tax | $ 796,960 | |
Net unrealized (losses) gains relating to other-than-temporary impaired investments for which a portion has been recognized in earnings, income tax | 2,208 | |
Accumulated loss - derivatives, income tax | (45) | |
Postretirement benefits liability adjustment, income tax | $ (35,545) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREOWNER'S EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In- Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Protective Life Corporation's shareowners' equity | Non controlling Interest |
Balance (Predecessor) at Dec. 31, 2012 | $ 4,614,433 | $ 44,388 | $ 606,369 | $ (209,840) | $ 2,437,544 | $ 1,736,722 | $ 4,615,183 | $ (750) |
Increase (decrease) in shareowners' equity | ||||||||
Net income | Predecessor | 393,464 | 393,464 | 393,464 | |||||
Other comprehensive income (loss) | Predecessor | (1,242,656) | (1,242,656) | (1,242,656) | |||||
Total comprehensive income (loss) | Predecessor | (849,192) | (849,192) | ||||||
Cash dividends (2014 - $0.92 per share; 2013 - $0.78 per share) | Predecessor | (61,186) | (61,186) | (61,186) | |||||
Noncontrolling interests | Predecessor | (750) | (750) | 750 | |||||
Stock-based compensation | Predecessor | 10,739 | 1,315 | 9,424 | 10,739 | ||||
Balance (Predecessor) at Dec. 31, 2013 | 3,714,794 | 44,388 | 606,934 | (200,416) | 2,769,822 | 494,066 | 3,714,794 | $ 0 |
Increase (decrease) in shareowners' equity | ||||||||
Net income | Predecessor | 384,875 | 384,875 | 384,875 | |||||
Other comprehensive income (loss) | Predecessor | 924,010 | 924,010 | 924,010 | |||||
Total comprehensive income (loss) | Predecessor | 1,308,885 | 1,308,885 | ||||||
Cash dividends (2014 - $0.92 per share; 2013 - $0.78 per share) | Predecessor | (72,697) | (72,697) | (72,697) | |||||
Stock-based compensation | Predecessor | 13,902 | (809) | 14,711 | 13,902 | ||||
Balance (Predecessor) at Dec. 31, 2014 | 4,964,884 | 44,388 | 606,125 | (185,705) | 3,082,000 | 1,418,076 | 4,964,884 | |
Increase (decrease) in shareowners' equity | ||||||||
Net income | Predecessor | 1,509 | 1,509 | 1,509 | |||||
Other comprehensive income (loss) | Predecessor | 465,968 | 465,968 | 465,968 | |||||
Total comprehensive income (loss) | Predecessor | 467,477 | 467,477 | ||||||
Stock-based compensation | Predecessor | 1,550 | 1,550 | 0 | 1,550 | ||||
Balance (Predecessor) at Jan. 31, 2015 | 5,433,911 | 44,388 | 607,675 | (185,705) | 3,083,509 | 1,884,044 | $ 5,433,911 | |
Balance (Successor) at Jan. 31, 2015 | 5,554,059 | 0 | 5,554,059 | 0 | 0 | 0 | ||
Increase (decrease) in shareowners' equity | ||||||||
Net income | Successor | 268,299 | 268,299 | ||||||
Other comprehensive income (loss) | Successor | (1,241,134) | (1,241,134) | ||||||
Total comprehensive income (loss) | Successor | (972,835) | |||||||
Stock-based compensation | Successor | 0 | |||||||
Balance (Successor) at Dec. 31, 2015 | $ 4,581,224 | $ 0 | $ 5,554,059 | $ 0 | $ 268,299 | $ (1,241,134) |
CONSOLIDATED STATEMENTS OF SHA9
CONSOLIDATED STATEMENTS OF SHAREOWNER'S EQUITY (Parenthetical) - $ / shares | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Predecessor | |||
Cash dividends (in dollars per share) | $ 0 | $ 0.92 | $ 0.78 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Successor | ||||
Cash flows from operating activities | ||||
Net income | $ 268,299 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Realized investment (gains) losses | 163,882 | |||
Amortization of deferred policy acquisition costs and value of business acquired | 94,056 | |||
Capitalization of deferred policy acquisition costs | (296,795) | |||
Depreciation and amortization expense | 49,741 | |||
Deferred income tax | 130,072 | |||
Accrued income tax | 65,415 | |||
Interest credited to universal life and investment products | 682,836 | |||
Policy fees assessed on universal life and investment products | (1,056,092) | |||
Change in reinsurance receivables | 187,269 | |||
Change in accrued investment income and other receivables | 24,202 | |||
Change in policy liabilities and other policyholders' funds of traditional life and health products | (164,232) | |||
Trading securities: | ||||
Maturities and principal reductions of investments | 114,501 | |||
Sale of investments | 135,465 | |||
Cost of investments acquired | (220,094) | |||
Other net change in trading securities | 73,376 | |||
Amortization of premiums and accretion of discounts on investments and mortgage loans | 373,636 | |||
Change in other liabilities | (206,765) | |||
Other income—gains on repurchase of non-recourse funding obligations | 0 | |||
Other, net | (63,144) | |||
Net cash provided by operating activities | 355,628 | |||
Cash flows from investing activities | ||||
Maturities and principal reductions of investments, available-for-sale | 1,052,198 | |||
Sale of investments, available-for-sale | 1,336,350 | |||
Cost of investments acquired, available-for-sale | (3,546,474) | |||
Change in investments, held-to-maturity | (65,000) | |||
Mortgage loans: | ||||
New lendings | (1,466,020) | |||
Repayments | 1,306,034 | |||
Change in investment real estate, net | (3,662) | |||
Change in policy loans, net | 52,364 | |||
Change in other long-term investments, net | (73,907) | |||
Change in short-term investments, net | (11,221) | |||
Net unsettled security transactions | (64,615) | |||
Purchase of property and equipment | (8,862) | |||
Payments for business acquisitions, net of cash acquired | 0 | |||
Net cash (used in) provided by investing activities | (1,492,815) | |||
Cash flows from financing activities | ||||
Borrowings under line of credit arrangements and debt | 330,000 | |||
Principal payments on line of credit arrangement and debt | (338,093) | |||
Issuance (repayment) of non-recourse funding obligations | 65,000 | |||
Repurchase program borrowings | 388,185 | |||
Dividends to shareowners | 0 | |||
Withholdings of share-based payment arrangements settled in cash | 0 | |||
Excess tax benefits from share-based payment arrangements | 0 | |||
Investment product deposits and change in universal life deposits | 3,064,373 | |||
Investment product withdrawals | (2,438,916) | |||
Other financing activities, net | 0 | |||
Net cash provided by (used in) financing activities | 1,070,549 | |||
Change in cash | (66,638) | |||
Cash at beginning of period | 462,710 | |||
Cash at end of period | $ 462,710 | 396,072 | ||
Predecessor | ||||
Cash flows from operating activities | ||||
Net income | 1,509 | $ 384,875 | $ 393,464 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Realized investment (gains) losses | 42,602 | 148,751 | (42,147) | |
Amortization of deferred policy acquisition costs and value of business acquired | 4,072 | 257,309 | 192,898 | |
Capitalization of deferred policy acquisition costs | (22,489) | (288,532) | (341,121) | |
Depreciation and amortization expense | 820 | 7,701 | 6,769 | |
Deferred income tax | 30,791 | 471 | 175,054 | |
Accrued income tax | (32,803) | 11,140 | 70,635 | |
Interest credited to universal life and investment products | 79,088 | 824,418 | 875,180 | |
Policy fees assessed on universal life and investment products | (90,288) | (1,038,180) | (894,176) | |
Change in reinsurance receivables | (85,081) | 69,002 | 52,978 | |
Change in accrued investment income and other receivables | (5,789) | 13,794 | 2,448 | |
Change in policy liabilities and other policyholders' funds of traditional life and health products | 176,980 | 102,524 | 99,535 | |
Trading securities: | ||||
Maturities and principal reductions of investments | 17,946 | 114,793 | 179,180 | |
Sale of investments | 26,422 | 353,250 | 256,938 | |
Cost of investments acquired | (27,289) | (320,928) | (380,836) | |
Other net change in trading securities | (26,901) | (69,641) | 38,999 | |
Amortization of premiums and accretion of discounts on investments and mortgage loans | 12,930 | 56,574 | (462) | |
Change in other liabilities | 238,592 | 180,717 | (137,103) | |
Other income—gains on repurchase of non-recourse funding obligations | 0 | (10,480) | (20,047) | |
Other, net | (149,889) | (74,061) | (28,636) | |
Net cash provided by operating activities | 191,223 | 723,497 | 499,550 | |
Cash flows from investing activities | ||||
Maturities and principal reductions of investments, available-for-sale | 59,028 | 1,198,690 | 1,094,862 | |
Sale of investments, available-for-sale | 191,062 | 2,271,611 | 3,239,222 | |
Cost of investments acquired, available-for-sale | (149,887) | (3,603,567) | (5,082,264) | |
Change in investments, held-to-maturity | 0 | (70,000) | (65,000) | |
Mortgage loans: | ||||
New lendings | (100,530) | (925,910) | (583,822) | |
Repayments | 45,741 | 1,285,489 | 863,262 | |
Change in investment real estate, net | 7 | 15,344 | (2,576) | |
Change in policy loans, net | 6,365 | 57,507 | 17,181 | |
Change in other long-term investments, net | (25,339) | (87,580) | (197,742) | |
Change in short-term investments, net | (40,314) | (73,822) | 148,124 | |
Net unsettled security transactions | 37,510 | 30,212 | 7,373 | |
Purchase of property and equipment | (649) | (8,152) | (11,621) | |
Sales of property and equipment | 0 | 57 | ||
Payments for business acquisitions, net of cash acquired | 0 | (906) | (471,714) | |
Net cash (used in) provided by investing activities | 22,994 | 88,916 | (1,044,658) | |
Cash flows from financing activities | ||||
Borrowings under line of credit arrangements and debt | 0 | 500,000 | 605,000 | |
Principal payments on line of credit arrangement and debt | (60,000) | (785,000) | (420,000) | |
Issuance (repayment) of non-recourse funding obligations | 0 | 20,000 | (26,100) | |
Repurchase program borrowings | 0 | (300,000) | 200,000 | |
Dividends to shareowners | 0 | (72,697) | (61,186) | |
Withholdings of share-based payment arrangements settled in cash | 0 | (32,173) | ||
Excess tax benefits from share-based payment arrangements | 0 | 20,948 | ||
Investment product deposits and change in universal life deposits | 169,233 | 2,576,727 | 3,219,561 | |
Investment product withdrawals | (240,147) | (2,827,305) | (2,874,426) | |
Other financing activities, net | (4) | (44) | ||
Net cash provided by (used in) financing activities | (130,918) | (899,544) | 642,849 | |
Change in cash | 83,299 | (87,131) | 97,741 | |
Cash at beginning of period | 379,411 | $ 462,710 | 466,542 | 368,801 |
Cash at end of period | $ 462,710 | $ 379,411 | $ 466,542 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Basis of Presentation On February 1, 2015, Protective Life Corporation (the "Company") became a wholly owned subsidiary of The Dai-ichi Life Insurance Company, Limited, a kabushiki kaisha organized under the laws of Japan ("Dai-ichi Life"), when DL Investment (Delaware), Inc., a wholly owned subsidiary of Dai-ichi Life, merged with and into the Company. Prior to February 1, 2015, and for the periods reported as "predecessor", the Company's stock was publicly traded on the New York Stock Exchange. Subsequent to the Merger date, the Company remains an SEC registrant within the United States. The Company is a holding company with subsidiaries that provide financial services through the production, distribution, and administration of insurance and investment products. The Company markets individual life insurance, credit life and disability insurance, guaranteed investment contracts, guaranteed funding agreements, fixed and variable annuities, and extended service contracts throughout the United States. The Company also maintains a separate segment devoted to the acquisition of insurance policies from other companies. Founded in 1907, Protective Life Insurance Company ("PLICO") is the Company's largest operating subsidiary. The Merger was accounted for by the Company under the acquisition method of accounting under ASC Topic 805 Business Combinations . In accordance with ASC Topic 805-20-30, all identifiable assets acquired and liabilities assumed were measured at fair value as of the acquisition date. The Company elected to apply “pushdown” accounting by applying the guidance allowed by ASC Topic 805, Business Combinations , including the initial recognition of most of the Company’s assets and liabilities at fair value as of the acquisition date, and similarly recognizing goodwill calculated based on the terms of the transaction and the fair value of the new basis of net assets of the Company. The new basis of accounting will be the basis of the accounting records in the preparation of future financial statements and related disclosures after the Merger date. Goodwill of $735.7 million was recorded as of the acquisition date which represents the cost in excess of the fair value of net assets acquired (including identifiable intangibles) in the Merger, and reflects the Company’s assembled workforce, future growth potential and other sources of value not associated with identifiable assets. During the measurement period subsequent to February 1, 2015, the Company has made adjustments to provisional amounts related to certain tax balances that resulted in a decrease to goodwill of $3.3 million from the amount recorded at the Merger date. The balance of goodwill associated with the Merger as of December 31, 2015 (Successor Company) is $732.4 million . These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Such accounting principles differ from statutory reporting practices used by insurance companies in reporting to state regulatory authorities (see also Note 22, Statutory Reporting Practices and Other Regulatory Matters ). The operating results of companies in the insurance industry have historically been subject to significant fluctuations due to changing competition, economic conditions, interest rates, investment performance, insurance ratings, claims, persistency, and other factors. Entities Included The consolidated financial statements include the accounts of Protective Life Corporation and subsidiaries and its affiliate companies in which the Company holds a majority voting or economic interest. Intercompany balances and transactions have been eliminated. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining deferred policy acquisition costs ("DAC") and related amortization periods, goodwill recoverability, value of business acquired ("VOBA"), investment and certain derivatives fair values, other-than-temporary impairments, future policy benefits, pension and other postretirement benefits, provisions for income taxes, reserves for contingent liabilities, reinsurance risk transfer assessments, and reserves for losses in connection with unresolved legal matters. Significant Accounting Policies Valuation of Investment Securities The Company determines the appropriate classification of investment securities at the time of purchase and periodically re-evaluates such designations. Investment securities are classified as either trading, available-for-sale, or held-to-maturity securities. Investment securities classified as trading are recorded at fair value with changes in fair value recorded in realized gains (losses). Investment securities purchased for long term investment purposes are classified as available-for-sale and are recorded at fair value with changes in unrealized gains and losses, net of taxes, reported as a component of other comprehensive income (loss). Investment securities are classified as held-to-maturity when the Company has the intent and ability to hold the securities to maturity and are reported at amortized cost. Interest income on available-for-sale and held-to-maturity securities includes the amortization of premiums and accretion of discounts and are recorded in investment income. The fair value of fixed maturity, short-term, and equity securities is determined by management after considering one of three primary sources of information: third party pricing services, non-binding independent broker quotations, or pricing matrices. Security pricing is applied using a "waterfall" approach whereby publicly available prices are first sought from third party pricing services, the remaining unpriced securities are submitted to independent brokers for non-binding prices, or lastly, securities are priced using a pricing matrix. Typical inputs used by these three pricing methods include, but are not limited to: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. Based on the typical trading volumes and the lack of quoted market prices for available-for-sale and trading fixed maturities, third party pricing services derive the majority of security prices from observable market inputs such as recent reported trades for identical or similar securities making adjustments through the reporting date based upon available market observable information as outlined above. If there are no recent reported trades, the third party pricing services and brokers may use matrix or model processes to develop a security price where future cash flow expectations are developed based upon collateral performance and discounted at an estimated market rate. Certain securities are priced via independent non-binding broker quotations, which are considered to have no significant unobservable inputs. When using non-binding independent broker quotations, the Company obtains one quote per security, typically from the broker from which the Company purchased the security. A pricing matrix is used to price securities for which the Company is unable to obtain or effectively rely on either a price from a third party service or an independent broker quotation. Included in the pricing of other asset-backed securities, collateralized mortgage obligations ("CMOs"), and mortgage-backed securities ("MBS") are estimates of the rate of future prepayments of principal and underlying collateral support over the remaining life of the securities. Such estimates are derived based on the characteristics of the underlying structure and rates of prepayments previously experienced at the interest rate levels projected for the underlying collateral. The basis for the cost of securities sold was determined at the Committee on Uniform Securities Identification Procedures ("CUSIP") level. The committee supplies a unique nine-character identification, called a CUSIP number, for each class of security approved for trading in the U.S., to facilitate clearing and settlement. These numbers are used when any buy and sell orders are recorded. Each quarter the Company reviews investments with unrealized losses and tests for other-than-temporary impairments. The Company analyzes various factors to determine if any specific other-than-temporary asset impairments exist. These include, but are not limited to: 1) actions taken by rating agencies, 2) default by the issuer, 3) the significance of the decline, 4) an assessment of the Company's intent to sell the security (including a more likely than not assessment of whether the Company will be required to sell the security) before recovering the security's amortized cost, 5) the duration of the decline, 6) an economic analysis of the issuer's industry, and 7) the financial strength, liquidity, and recoverability of the issuer. Management performs a security by security review each quarter in evaluating the need for any other-than-temporary impairments. Although no set formula is used in this process, the investment performance, collateral position, and continued viability of the issuer are significant measures considered, and in some cases, an analysis regarding the Company's expectations for recovery of the security's entire amortized cost basis through the receipt of future cash flows is performed. Once a determination has been made that a specific other-than-temporary impairment exists, the security's basis is adjusted and an other-than-temporary impairment is recognized. Equity securities that are other-than-temporarily impaired are written down to fair value with a realized loss recognized in earnings. Other-than-temporary impairments to debt securities that the Company does not intend to sell and does not expect to be required to sell before recovering the security's amortized cost are written down to discounted expected future cash flows ("post impairment cost") and credit losses are recorded in earnings. The difference between the securities' discounted expected future cash flows and the fair value of the securities on the impairment date is recognized in other comprehensive income (loss) as a non-credit portion impairment. When calculating the post impairment cost for residential mortgage-backed securities ("RMBS"), commercial mortgage-backed securities ("CMBS"), and other asset-backed securities (collectively referred to as asset-backed securities or "ABS"), the Company considers all known market data related to cash flows to estimate future cash flows. When calculating the post impairment cost for corporate debt securities, the Company considers all contractual cash flows to estimate expected future cash flows. To calculate the post impairment cost, the expected future cash flows are discounted at the original purchase yield. Debt securities that the Company intends to sell or expects to be required to sell before recovery are written down to fair value with the change recognized in earnings. Cash Cash includes all demand deposits reduced by the amount of outstanding checks and drafts. As a result of the Company's cash management system, checks issued from a particular bank but not yet presented for payment may create negative book cash balances with the bank. Such negative balances are included in other liabilities and was $70.3 million as of December 31, 2015 (Successor Company) and was immaterial as of December 31, 2014 (Predecessor Company), respectively. The Company has deposits with certain financial institutions which exceed federally insured limits. The Company has reviewed the creditworthiness of these financial institutions and believes there is minimal risk of a material loss. Deferred Policy Acquisition Costs The incremental direct costs associated with successfully acquired insurance policies, are deferred to the extent such costs are deemed recoverable from future profits. Such costs include commissions and other costs of acquiring traditional life and health insurance, credit insurance, universal life insurance, and investment products. DAC are subject to recoverability testing at the end of each accounting period. Traditional life and health insurance acquisition costs are amortized over the premium-payment period of the related policies in proportion to the ratio of annual premium income to the present value of the total anticipated premium income. Credit insurance acquisition costs are being amortized in proportion to earned premium. Acquisition costs for universal life and investment products are amortized over the lives of the policies in relation to the present value of estimated gross profits before amortization. The Company makes certain assumptions regarding the mortality, persistency, expenses, and interest rates (equal to the rate used to compute liabilities for future policy benefits, currently 1.0% to 8% ) the Company expects to experience in future periods when determining the present value of estimated gross profits. These assumptions are best estimates and are periodically updated whenever actual experience and/or expectations for the future change from that assumed. Additionally, these costs have been adjusted by an amount equal to the amortization that would have been recorded if unrealized gains or losses on investments associated with our universal life and investment products had been realized. Acquisition costs for stable value contracts are amortized over the term of the contracts using the effective yield method. Value of Businesses Acquired In conjunction with the Merger, a portion of the purchase price was allocated to the right to receive future gross profits from cash flows and earnings of the Company's insurance policies and investment contracts as of the date of the Merger. This intangible asset, called VOBA, is based on the actuarially estimated present value of future cash flows from the Company's insurance policies and investment contracts in-force on the date of the Merger. The estimated present value of future cash flows used in the calculation of the VOBA is based on certain assumptions, including mortality, persistency, expenses, and interest rates that the Company expects to experience in future years. The Company amortizes VOBA in proportion to gross premiums for traditional life products, or estimated gross margins ("EGMs") for participating traditional life products within the MONY Life Insurance Company ("MONY") block. For interest sensitive products, the Company uses various amortization bases including expected gross profits ("EGPs"), revenues, or insurance in-force. VOBA is subject to annual recoverability testing. Intangible Assets Intangible assets with definite lives are amortized over the estimated useful life of the asset and reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Amortizable intangible assets primarily consist of distribution relationships, trade names, and technology. Intangible assets with indefinite lives, primarily insurance licenses, are not amortized, but are reviewed for impairment on an annual basis or whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Property and Equipment In conjunction with the Merger, property and equipment was recorded at fair value as of the Merger date and will be depreciated from this basis in future periods based on the respective estimated useful lives. Real estate assets were recorded at appraised values as of the acquisition date. The Company has estimated the remaining useful life of the home office building to be 25 years. Land is not depreciated. The Company depreciates its assets using the straight-line method over the estimated useful lives of the assets. The Company's furniture is depreciated over a ten year useful life, office equipment and machines are depreciated over a five year useful life, and software and computers are depreciated over a three year useful life. Major repairs or improvements are capitalized and depreciated over the estimated useful lives of the assets. Other repairs are expensed as incurred. The cost and related accumulated depreciation of property and equipment sold or retired are removed from the accounts, and resulting gains or losses are included in income. Property and equipment consisted of the following: Successor Company Predecessor Company As of December 31, 2015 As of December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Home office building $ 90,617 $ 75,109 Data processing equipment 14,607 40,919 Other, principally furniture and equipment 5,918 55,312 111,142 171,340 Accumulated depreciation (8,277 ) (118,487 ) Total property and equipment $ 102,865 $ 52,853 Separate Accounts The separate account assets represent funds for which the Company does not bear the investment risk. These assets are carried at fair value and are equal to the separate account liabilities, which represent the policyholder's equity in those assets. The investment income and investment gains and losses on the separate account assets accrue directly to the policyholder. These amounts are reported separately as assets and liabilities related to separate accounts in the accompanying consolidated financial statements. Amounts assessed against policy account balances for the costs of insurance, policy administration, and other services are included in premiums and policy fees in the accompanying consolidated statements of income. Stable Value Product Account Balances The Stable Value Products segment sells fixed and floating rate funding agreements directly to the trustees of municipal bond proceeds, money market funds, bank trust departments, and other institutional investors. The segment also issues funding agreements to the Federal Home Loan Bank ("FHLB"), and markets guaranteed investment contracts ("GICs") to 401(k) and other qualified retirement savings plans. GICs are contracts which specify a return on deposits for a specified period and often provide flexibility for withdrawals at book value in keeping with the benefits provided by the plan. During 2015, the Company terminated its funding agreement-backed notes program registered with the United States Securities and Exchange Commission (the “SEC”) and, on October 2, 2015, established an unregistered funding agreement-backed notes program. The segment's products complement the Company's overall asset/liability management in that the terms may be tailored to the needs of PLICO as the seller of the contracts. Stable value product account balances include GICs and funding agreements the Company has issued. As of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), the Company had $400.7 million and $39.8 million , respectively, of stable value product account balances marketed through structured programs. Most GICs and funding agreements the Company has written have maturities of one to ten years . As of December 31, 2015 (Successor Company), future maturities of stable value products were as follows: Year of Maturity Amount (Dollars In Millions) 2016 $ 534.7 2017 - 2018 1,068.1 2019 - 2020 451.2 Thereafter 62.3 Derivative Financial Instruments The Company records its derivative financial instruments in the consolidated balance sheet in "other long-term investments" and "other liabilities" in accordance with GAAP, which requires that all derivative instruments be recognized in the balance sheet at fair value. The change in the fair value of derivative financial instruments is reported either in the statement of income or in the other comprehensive income (loss), depending upon whether the derivative instrument qualified for and also has been properly identified as being part of a hedging relationship, and also on the type of hedging relationship that exists. For cash flow hedges, the effective portion of their gain or loss is reported as a component of other comprehensive income (loss) and reclassified into earnings in the period during which the hedged item impacts earnings. Any remaining gain or loss, the ineffective portion, is recognized in current earnings. For fair value hedge derivatives, their gain or loss as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings. Effectiveness of the Company's hedge relationships is assessed on a quarterly basis. The Company reports changes in fair values of derivatives that are not part of a qualifying hedge relationship in earnings. Changes in the fair value of derivatives that are recognized in current earnings are reported in "Realized investment gains (losses)—Derivative financial instruments". For additional information, see Note 24, Derivative Financial Instruments . Insurance Liabilities and Reserves Establishing an adequate liability for the Company's obligations to policyholders requires the use of certain assumptions. Estimating liabilities for future policy benefits on life and health insurance products requires the use of assumptions relative to future investment yields, mortality, morbidity, persistency, and other assumptions based on the Company's historical experience, modified as necessary to reflect anticipated trends and to include provisions for possible adverse deviation. Determining liabilities for the Company's property and casualty insurance products also requires the use of assumptions, including the projected levels of used vehicle prices, the frequency and severity of claims, and the effectiveness of internal processes designed to reduce the level of claims. The Company's results depend significantly upon the extent to which its actual claims experience is consistent with the assumptions the Company used in determining its reserves and pricing its products. The Company's reserve assumptions and estimates require significant judgment and, therefore, are inherently uncertain. The Company cannot determine with precision the ultimate amounts that it will pay for actual claims or the timing of those payments. Guaranteed Minimum Withdrawal Benefits The Company also establishes reserves for guaranteed minimum withdrawal benefits (“GMWB”) on its variable annuity (“VA”) products. The GMWB is valued in accordance with FASB guidance under the ASC Derivatives and Hedging Topic which utilizes the valuation technique prescribed by the ASC Fair Value Measurements and Disclosures Topic, which requires the embedded derivative to be recorded at fair value using current implied volatilities for the equity indices. The fair value of the GMWB is impacted by equity market conditions and can result in the GMWB embedded derivative being in an overall net asset or net liability position. In times of favorable equity market conditions the likelihood and severity of claims is reduced and expected fee income increases. Since claims are generally expected later than fees, these favorable equity market conditions can result in the present value of fees being greater than the present value of claims, which results in a net GMWB embedded derivative asset. In times of unfavorable equity market conditions the likelihood and severity of claims is increased and expected fee income decreases and can result in the present value of claims exceeding the present value of fees resulting in a net GMWB embedded derivative liability. The methods used to estimate the embedded derivatives employ assumptions about mortality, lapses, policyholder behavior, equity market returns, interest rates, and market volatility. The Company assumes age-based mortality from the National Association of Insurance Commissioners 1994 Variable Annuity MGDB Mortality Table for company experience. Differences between the actual experience and the assumptions used result in variances in profit and could result in losses. In conjunction with the Merger, the Company updated the fair value of the GMWB reserves to reflect current assumptions as of February 1, 2015 (Successor Company). As a result of the application of ASC Topic 805, the Company reset the hedge premium rates utilized in the valuation for all policies to be equal to the present value of future claims with the reset hedge premium rates being capped at the actual charges to the policyholder. This update resulted in a decrease in the net liability of approximately $266.1 million on the Merger date. As of December 31, 2015 (Successor Company), our net GMWB liability held was $181.6 million . Goodwill Accounting for goodwill requires an estimate of the future profitability of the associated lines of business to assess the recoverability of the capitalized acquisition goodwill. The Company evaluates the carrying value of goodwill at the segment (or reporting unit) level at least annually and between annual evaluations if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Such circumstances could include, but are not limited to: 1) a significant adverse change in legal factors or in business climate, 2) unanticipated competition, or 3) an adverse action or assessment by a regulator. When evaluating whether goodwill is impaired, the Company first determines through qualitative analysis whether relevant events and circumstances indicate that it is more likely than not that segment goodwill balances are impaired as of the testing date. If it is determined that it is more likely than not that impairment exists, the Company compares its estimate of the fair value of the reporting unit to which the goodwill is assigned to the reporting unit's carrying amount, including goodwill. The Company utilizes a fair value measurement (which includes a discounted cash flows analysis) to assess the carrying value of the reporting units in consideration of the recoverability of the goodwill balance assigned to each reporting unit as of the measurement date. The Company's material goodwill balances are attributable to certain of its operating segments (which are each considered to be reporting units). The cash flows used to determine the fair value of the Company's reporting units are dependent on a number of significant assumptions. The Company's estimates, which consider a market participant view of fair value, are subject to change given the inherent uncertainty in predicting future results and cash flows, which are impacted by such things as policyholder behavior, competitor pricing, capital limitations, new product introductions, and specific industry and market conditions. On the date of the Merger, goodwill of $735.7 million was recognized as the excess of the purchase considerations over the fair value of identifiable assets acquired and liabilities assumed. During the measurement period subsequent to February 1, 2015, the Company has made adjustments to provisional amounts related to certain tax balances that resulted in a decrease to goodwill of $3.3 million from the amount recorded at the Merger date. The balance of goodwill associated with the Merger as of December 31, 2015 (Successor Company) is $732.4 million . The balance recognized as goodwill is not amortized, but is reviewed for impairment on an annual basis, or more frequently as events or circumstances may warrant, including those circumstances which would more likely than not reduce the fair value of the Company’s reporting units below its carrying amount. During the fourth quarter of 2015 , the Company performed its annual evaluation of goodwill based on information as of September 30, 2015 (Successor Company) and determined that no adjustment to impair goodwill was necessary. The Company has assessed whether events have occurred subsequent to September 30, 2015 that would impact the Company's conclusion and no such events were identified. As of December 31, 2015 (Successor Company), we had goodwill of $732.4 million . Income Taxes The Company uses the asset and liability method of accounting for income taxes. In general, income tax provisions are based on the income reported for financial statement purposes. Deferred income taxes arise from the recognition of temporary differences between the basis of assets and liabilities determined for financial reporting purposes and the basis determined for income tax purposes. Such temporary differences are principally related to net unrealized gains (losses), deferred policy acquisition costs and value of business acquired, and future policy benefits and claims. The Company analyzes whether it needs to establish a valuation allowance on each of its deferred tax assets. In performing this analysis, the Company first considers the need for a valuation allowance on each separate deferred tax asset. Ultimately, it analyzes this need in the aggregate in order to prevent the double-counting of expected future taxable income in each of the foregoing separate analyses. Variable Interest Entities The Company holds certain investments in entities in which its ownership interests could possibly be considered variable interests under Topic 810 of the FASB ASC (excluding debt and equity securities held as trading, available for sale, or held to maturity). The Company reviews the characteristics of each of these applicable entities and compares those characteristics to applicable criteria to determine whether the entity is a Variable Interest Entity ("VIE"). If the entity is determined to be a VIE, the Company then performs a detailed review to determine whether the interest would be considered a variable interest under the guidance. The Company then performs a qualitative review of all variable interests with the entity and determines whether the Company is the primary beneficiary. ASC 810 provides that an entity is the primary beneficiary of a VIE if the entity has 1) the power to direct the activities of the VIE that most significantly impact the VIE's economic performance, and 2) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE. For more information on the Company's investment in a VIE refer to Note 6, Investment Operations, to the consolidated financial statements. Policyholder Liabilities, Revenues, and Benefits Expense Traditional Life, Health, and Credit Insurance Products Traditional life insurance products consist principally of those products with fixed and guaranteed premiums and benefits, and they include whole life insurance policies, term and term-like life insurance policies, limited payment life insurance policies, and certain annuities with life contingencies. In accordance with ASC 805, the liabilities for future policy benefits on traditional life insurance products, when combined with the associated VOBA, were recorded at fair value on the date of the Merger. These values were computed using assumptions that include interest rates, mortality, lapse rates, expense estimates, and other assumptions based on the Company's experience, modified as necessary to reflect anticipated trends and to include provisions for possible adverse deviation. Liabilities for future policy benefits on traditional life insurance products have been computed using a net level method including assumptions as to investment yields, mortality, persistency, and other assumptions based on the Company's experience, modified as necessary to reflect anticipated trends and to include provisions for possible adverse deviation. Reserve investment yield assumptions on December 31, 2015 (Successor Company), range from approximately 2.8% to 4.5% . The liability for future policy benefits and claims on traditional life, health, and credit insurance products includes estimated unpaid claims that have been reported to us and claims incurred but not yet reported. Policy claims are charged to expense in the period in which the claims are incurred. Traditional life insurance premiums are recognized as revenue when due. Health and credit insurance premiums are recognized as revenue over the terms of the policies. Benefits and expenses are associated with earned premiums so that profits are recognized over the life of the contracts. This is accomplished by means of the provision for liabilities for future policy benefits and the amortization of DAC and VOBA. Gross premiums in excess of net premiums related to immediate annuities are deferred and recognized over the life of the policy. Activity in the liability for unpaid claims for life and health insurance is summarized as follows: Successor Company Predecessor Company As of December 31, As of January 31, As of December 31, 2015 2015 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Balance beginning of year $ 403,009 $ 419,401 $ 334,450 $ 326,633 Less: reinsurance 149,618 163,671 117,502 155,341 Net balance beginning of year 253,391 255,730 216,948 171,292 Incurred related to: Current year 973,175 97,573 1,075,005 698,028 Prior year 95,977 9,360 102,936 68,396 Total incurred 1,069,152 106,933 1,177,941 766,424 Paid related to: Current year 939,824 98,281 1,017,193 682,877 Prior year 111,222 10,991 121,966 85,146 Total paid 1,051,046 109,272 1,139,159 768,023 Other changes: Acquisition and reserve transfers (1) — — — 47,255 Net balance end of year 271,497 253,391 255,730 216,948 Add: reinsurance 112,537 149,618 163,671 117,502 Balance end of year $ 384,034 $ 403,009 $ 419,401 $ 334,450 (1) This amount represents the net liability, before reinsurance, for unpaid claims as of December 31, 2013 (Predecessor Company) for MONY Life Insurance Company. The claims activity from the acquisition date of October 1, 2013 through December 31, 2013 (Predecessor Company) for MONY Life Insurance Company is not reflected in this chart. Universal Life and Investment Products Universal life and investment products include universal life insurance, guaranteed investment contracts, guaranteed funding agreements, deferred annuities, and annuities without life contingencies. Premiums and policy fees for universal life and investment products consist of fees that have been assessed against policy account balances for the costs of insurance, policy administration, and surrenders. Such fees are recognized when assessed and earned. Benefit reserves for universal life and investment products represent policy account balances before applicable surrender charges plus certain deferred policy initiation fees that are recognized in income over the term of the policies. Policy benefits and claims that are charged to expense include benefit claims incurred in the period in excess of related policy account balances and interest credited to policy account balances. Interest rates credited to universal life products ranged from 1.0% to 8.75% and investment products ranged from 0.2% to 9.8% in 2015 . The Company establishes liabilities for fixed indexed annuity ("FIA") products. These products are deferred fixed annuities with a guaranteed minimum interest rate plus a contingent return based on equity market performance. The FIA product is considered a hybrid financial instrument under the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC" or "Codification") Topic 815 - Derivatives and Hedging which allows the Company to make the election to value the liabilities of these FIA products at fair value. This election was made for the FIA products issued prior to 2010 as the policies were issued. These products are no longer being marketed. The future changes in the fair value of the liability for these FIA products are recorded in Benefit and settlement expenses with the liability being recorded in Annuity account balances . For more information regarding the determination of fair value of annuity account balances please refer to Note 23, Fair Value of Financial Instruments . Premiums and policy f |
RECENTLY ANNOUNCED REINSURANCE
RECENTLY ANNOUNCED REINSURANCE AND FINANCING TRANSACTIONS | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
RECENTLY ANNOUNCED REINSURANCE AND FINANCING TRANSACTIONS | RECENTLY ANNOUNCED REINSURANCE AND FINANCING TRANSACTIONS On January 15, 2016, PLICO completed the transaction contemplated by the Master Agreement, dated September 30, 2015 (the “Master Agreement”), with Genworth Life and Annuity Insurance Company (“GLAIC”). Pursuant to the Master Agreement, on January 15, 2016, PLICO entered into a reinsurance agreement (the “Reinsurance Agreement”) under the terms of which PLICO coinsures certain term life insurance business of GLAIC (the “GLAIC Block”). In connection with the reinsurance transaction, on January 15, 2016, Golden Gate Captive Insurance Company (“Golden Gate”), a wholly owned subsidiary of PLICO, and Steel City, LLC (“Steel City”), a newly formed wholly owned subsidiary of the Company, entered into an 18 -year transaction to finance $2.188 billion of “XXX” reserves related to the acquired GLAIC Block and the other term life insurance business reinsured to Golden Gate by PLICO and West Coast Life Insurance Company ("WCL"), a direct wholly owned subsidiary of PLICO. Steel City issued notes with an aggregate initial principal amount of $2.188 billion to Golden Gate in exchange for a surplus note issued by Golden Gate with an initial principal amount of $2.188 billion . Through the structure, Hannover Life Reassurance Company of America (Bermuda) Ltd., The Canada Life Assurance Company (Barbados Branch) and Nomura Americas Re Ltd. (collectively, the “Risk-Takers”) provide credit enhancement to the Steel City notes for the 18 -year term in exchange for credit enhancement fees. The transaction is “non-recourse” to PLICO, WCL and the Company, meaning that none of these companies are liable to reimburse the Risk-Takers for any credit enhancement payments required to be made. In connection with the transaction, the Company has entered into certain support agreements under which it guarantees or otherwise supports certain obligations of Golden Gate or Steel City, including a guarantee of the fees to the Risk-Takers. The estimated average annual expense of the credit enhancement under generally accepted accounting principles is approximately $3.1 million , after-tax. As a result of the financing transaction described above, the $800 million of Golden Gate Series A Surplus Notes held by the Company were contributed to PLICO and then subsequently contributed to Golden Gate, which resulted in the extinguishment of these notes. Also on January 15, 2016, Golden Gate paid an extraordinary dividend of $300 million to PLICO as approved by the Vermont Department of Financial Regulation. REINSURANCE The Company reinsures certain of its risks with (cedes), and assumes risks from, other insurers under yearly renewable term, coinsurance, and modified coinsurance agreements. Under yearly renewable term agreements, the Company reinsures only the mortality risk, while under coinsurance the Company reinsures a proportionate share of all risks arising under the reinsured policy. Under coinsurance, the reinsurer receives a proportionate share of the premiums less commissions and is liable for a corresponding share of all benefit payments. Modified coinsurance is accounted for in a manner similar to coinsurance except that the liability for future policy benefits is held by the ceding company, and settlements are made on a net basis between the companies. Reinsurance ceded arrangements do not discharge the Company as the primary insurer. Ceded balances would represent a liability of the Company in the event the reinsurers were unable to meet their obligations to us under the terms of the reinsurance agreements. The Company monitors the concentration of credit risk the Company has with any reinsurer, as well as the financial condition of its reinsurers. As of December 31, 2015 (Successor Company), the Company had reinsured approximately 48% of the face value of its life insurance in-force. The Company has reinsured approximately 20% of the face value of its life insurance in-force with the following three reinsurers: • Security Life of Denver Insurance Co. (currently administered by Hanover Re) • Swiss Re Life & Health America Inc. • The Lincoln National Life Insurance Co. (currently administered by Swiss Re Life & Health America Inc.) The Company has not experienced any credit losses for the years ended December 31, 2015 (Successor Company), December 31, 2014 (Predecessor Company), or December 31, 2013 (Predecessor Company) related to these reinsurers. The Company has set limits on the amount of insurance retained on the life of any one person. In 2005, the Company increased its retention for certain newly issued traditional life products from $500,000 to $1,000,000 on any one life. During 2008, the Company increased its retention limit to $2,000,000 on certain of its traditional and universal life products. Reinsurance premiums, commissions, expense reimbursements, benefits, and reserves related to reinsured long-duration contracts are accounted for over the life of the underlying reinsured contracts using assumptions consistent with those used to account for the underlying contracts. The cost of reinsurance related to short-duration contracts is accounted for over the reinsurance contract period. Amounts recoverable from reinsurers, for both short-and long-duration reinsurance arrangements, are estimated in a manner consistent with the claim liabilities and policy benefits associated with reinsured policies. The following table presents the net life insurance in-force: Successor Company Predecessor Company As of December 31, As of December 31, 2015 2014 2013 (Dollars In Millions) (Dollars In Millions) Direct life insurance in-force $ 727,705 $ 721,036 $ 726,697 Amounts assumed from other companies 39,547 43,237 46,752 Amounts ceded to other companies (368,142 ) (388,890 ) (416,809 ) Net life insurance in-force $ 399,110 $ 375,383 $ 356,640 Percentage of amount assumed to net 10 % 12 % 13 % The following table reflects the effect of reinsurance on life, accident/health, and property and liability insurance premiums written and earned: Gross Amount Ceded to Other Companies Assumed from Other Companies Net Amount Percentage of Amount Assumed to Net (Dollars In Thousands) Successor Company February 1, 2015 to December 31, 2015 Premiums and policy fees: Life insurance $ 2,360,643 $ (983,143 ) $ 308,280 $ 1,685,780 (1) 18.3 % Accident/health insurance 70,243 (36,871 ) 18,252 51,624 35.4 Property and liability insurance 243,728 (134,964 ) 6,904 115,668 6.0 Total $ 2,674,614 $ (1,154,978 ) $ 333,436 $ 1,853,072 Gross Amount Ceded to Assumed Net Percentage of (Dollars In Thousands) Predecessor Company January 1, 2015 to January 31, 2015 Premiums and policy fees: Life insurance $ 204,185 $ (74,539 ) $ 28,601 $ 158,247 (1) 18.1 % Accident/health insurance 6,846 (4,621 ) 1,809 4,034 44.8 Property and liability insurance 19,759 (10,796 ) 666 9,629 6.9 Total $ 230,790 $ (89,956 ) $ 31,076 $ 171,910 For The Year Ended December 31, 2014: Premiums and policy fees: Life insurance $ 2,603,956 $ (1,205,528 ) $ 349,934 $ 1,748,362 (1) 20.0 % Accident/health insurance 81,037 (42,741 ) 20,804 59,100 35.2 Property and liability insurance 233,362 (125,328 ) 8,675 116,709 7.4 Total $ 2,918,355 $ (1,373,597 ) $ 379,413 $ 1,924,171 For The Year Ended December 31, 2013: Premiums and policy fees: Life insurance $ 2,371,872 $ (1,247,657 ) $ 306,920 $ 1,431,135 (1) 21.5 % Accident/health insurance 45,263 (20,011 ) 24,291 49,543 49.0 Property and liability insurance 225,327 (109,527 ) 7,978 123,778 6.5 Total $ 2,642,462 $ (1,377,195 ) $ 339,189 $ 1,604,456 (1) Includes annuity policy fees of $152.8 million , $13.9 million , $167.1 million , and $140.7 million for the periods of February 1, 2015 to December 31, 2015 (Successor Company) and January 1, 2015 to January 31, 2015 (Predecessor Company) and for the years ended December 31, 2014 (Predecessor Company), and December 31, 2013 (Predecessor Company), respectively. As of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), policy and claim reserves relating to insurance ceded of $5.5 billion and $6.1 billion , respectively, are included in reinsurance receivables. Should any of the reinsurers be unable to meet its obligation at the time of the claim, the Company would be obligated to pay such claims. As of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), the Company had paid $77.9 million and $120.5 million , respectively, of ceded benefits which are recoverable from reinsurers. In addition, as of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), the Company had receivables of $64.9 million and $65.8 million , respectively, related to insurance assumed. The Company's third party reinsurance receivables amounted to $5.5 billion and $6.1 billion as of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), respectively. These amounts include ceded reserve balances and ceded benefit payments. The ceded benefit payments are recoverable from reinsurers. The following table sets forth the receivables attributable to our more significant reinsurance partners: Successor Company Predecessor Company As of As of December 31, 2015 December 31, 2014 Reinsurance Receivable A.M. Best Rating Reinsurance Receivable A.M. Best Rating (Dollars In Millions) (Dollars In Millions) Security Life of Denver Insurance Company $ 800.6 A $ 842.1 A Swiss Re Life & Health America, Inc. 719.2 A+ 820.9 A+ Lincoln National Life Insurance Co. 546.0 A+ 556.3 A+ Transamerica Life Insurance Co. 396.6 A+ 497.7 A+ RGA Reinsurance Company 303.5 A+ 412.4 A+ SCOR Global Life USA Reinsurance Company 320.4 A 411.8 A American United Life Insurance Company 314.2 A+ 336.1 A+ Scottish Re (U.S.) Inc. 268.6 NR 298.0 NR Centre Reinsurance (Bermuda) Ltd 247.6 NR 260.9 NR Employers Reassurance Corporation 224.4 A- 254.3 A– The Company's reinsurance contracts typically do not have a fixed term. In general, the reinsurers' ability to terminate coverage for existing cessions is limited to such circumstances as material breach of contract or non-payment of premiums by the ceding company. The reinsurance contracts generally contain provisions intended to provide the ceding company with the ability to cede future business on a basis consistent with historical terms. However, either party may terminate any of the contracts with respect to future business upon appropriate notice to the other party. Generally, the reinsurance contracts do not limit the overall amount of the loss that can be incurred by the reinsurer. The amount of liabilities ceded under contracts that provide for the payment of experience refunds is immaterial. |
DAI-ICHI MERGER
DAI-ICHI MERGER | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
DAI-ICHI MERGER | DAI-ICHI MERGER On February 1, 2015 the Company, subsequent to required approvals from the Company's shareholders and relevant regulatory authorities, became a wholly owned subsidiary as contemplated by the Agreement and Plan of Merger (the "Merger Agreement") with Dai-ichi Life and DL Investment (Delaware), Inc., a Delaware corporation and wholly owned subsidiary of Dai-ichi Life, which provided for the merger of DL Investment (Delaware), Inc. with and into the Company (the "Merger"), with the Company surviving the Merger as a wholly owned subsidiary of Dai-ichi Life. On February 1, 2015 each share of the Company's common stock outstanding was converted into the right to receive $70 per share, without interest (the "Per Share Merger Consideration"). The aggregate cash consideration paid in connection with the Merger for the outstanding shares of common stock was approximately $5.6 billion , such amounts paid directly to the shareowners of record by Dai-ichi Life. The Merger provided Dai-ichi Life with a platform for growth in the United States, where it did not previously have a significant presence. In connection with the completion of the Merger, the Company's previously publicly traded equity was delisted from the NYSE, although the Company remains an SEC registrant for financial reporting purposes in the United States. The Merger was accounted for under the acquisition method of accounting under ASC Topic 805. In accordance with ASC Topic 805-20-30, all identifiable assets acquired and liabilities assumed were measured at fair value as of the acquisition date. On the date of the Merger, goodwill of $735.7 million represented the cost in excess of the fair value of net assets acquired (including identifiable intangibles) in the Merger, and reflected the Company’s assembled workforce, future growth potential and other sources of value not associated with identifiable assets. During the measurement period subsequent to February 1, 2015, the Company has made adjustments to provisional amounts related to certain tax balances that resulted in a decrease to goodwill of $3.3 million from the amount recorded at the Merger date. The balance of goodwill associated with the Merger as of December 31, 2015 (Successor Company) is $732.4 million . None of the goodwill is tax deductible. The following table summarizes the consideration paid for the acquisition and the preliminary determination of the fair value of assets acquired and liabilities assumed at the acquisition date: Fair Value As of February 1, 2015 (Dollars In Thousands) Assets Fixed maturities $ 38,363,025 Equity securities 745,512 Mortgage loans 5,580,229 Investment real estate 7,456 Policy loans 1,751,872 Other long-term investments 686,507 Short-term investments 316,167 Total investments 47,450,768 Cash 462,710 Accrued investment income 484,021 Accounts and premiums receivable 112,182 Reinsurance receivables 5,724,020 Value of business acquired 1,276,886 Goodwill 735,712 Other intangibles 683,000 Property and equipment 104,364 Other assets 120,762 Income tax receivable 15,458 Assets related to separate accounts Variable annuity 12,970,587 Variable universal life 819,188 Total assets $ 70,959,658 Liabilities Future policy and benefit claims $ 30,195,841 Unearned premiums 682,183 Total policy liabilities and accruals 30,878,024 Stable value product account balances 1,932,277 Annuity account balances 10,941,661 Other policyholders' funds 1,388,083 Other liabilities 2,188,863 Deferred income taxes 1,535,556 Non-recourse funding obligations 621,798 Repurchase program borrowings 50,000 Debt 1,519,211 Subordinated debt securities 560,351 Liabilities related to separate accounts Variable annuity 12,970,587 Variable universal life 819,188 Total liabilities 65,405,599 Net assets acquired $ 5,554,059 As of the acquisition date, all contractual cash flows related to the Company's historical and acquired receivables (as presented within this consolidated balance sheet) are expected to be collected. Intangible assets recognized by the Company included the following (excluding goodwill): Estimated Fair Value on Estimated Acquisition Date Useful Life (Dollars In Thousands) (In Years) Distribution relationships $ 405,000 14-22 Trade names 103,000 13-17 Technology 143,000 7-14 Total intangible assets subject to amortization 651,000 Insurance licenses 32,000 Indefinite Total intangible assets $ 683,000 Identified intangible assets were valued using the excess earnings method, relief from royalty method or cost approach, as appropriate. Amortizable intangible assets will be amortized straight line over their assigned useful lives. The following is a schedule of future estimated aggregate amortization expense: Year Amount (Dollars In Thousands) 2016 $ 41,313 2017 41,313 2018 41,313 2019 41,313 2020 41,313 All tangible and intangible assets of the Company were allocated to applicable operating segments in connection with the recording of pushdown accounting. The purchase price was also allocated to each operating segment in accordance with the determined fair value of the operating segments, such that the total reconciled with the total consideration paid in the Merger. Subtraction of the fair value of the tangible and intangible assets for each operating segment from the allocated purchase price of that operating segment resulted in the goodwill allocated to each operating segment. The amount of goodwill allocated to each operating segment is reflected in Note 26, Operating Segments . Treatment of certain acquisition related costs The Company recorded costs related to the Merger in either the predecessor or successor periods based on the specific facts and circumstances underlying each individual transaction. Certain of these costs were fully contingent on the consummation of the Merger on February 1, 2015 (Successor Company). These costs are not expensed in either the Predecessor or Successor Company Statements of Comprehensive Income (Loss). Liabilities for payment of these contingent costs are included in the opening balance sheet as of February 1, 2015 (Successor Company), and the nature and amount of the costs are discussed below. Fees in the amount of $28.8 million which were paid to the Company’s financial advisor related to the Merger were recorded as liabilities as of the acquisition date. In accordance with the terms of the contract, payment of these fees was contingent on the successful closing of the Merger, and became payable on the date thereof. Certain of the Company’s stock-based compensation arrangements provided for acceleration of benefits on the completion of a change-in-control event. Upon the completion of the Merger, benefits in the amount of $138.2 million became payable to eligible employees under these arrangements. Such accounts were recorded as liabilities as of the acquisition closing date. The portion of this payable that represented expense accelerated on the Merger date was $25.4 million . Treatment of Benefit Plans At or immediately prior to the Merger, each stock appreciation right with respect to shares of Common Stock granted under any Stock Plan (each, a “SAR”) that were outstanding and unexercised immediately prior to the Merger and that had a base price per share of Common Stock underlying such SAR (the “Base Price”) that was less than the Per Share Merger Consideration (each such SAR, an “In-the-Money SAR”), whether or not exercisable or vested, was cancelled and converted into the right to receive an amount in cash less any applicable withholding taxes, determined by multiplying (i) the excess of the Per Share Merger Consideration over the Base Price of such In-the-Money SAR by (ii) the number of shares of Common Stock subject to such In-the-Money SAR (such amount, the “SAR Consideration”). At or immediately prior to the effective time of the Merger, each restricted stock unit with respect to a share of Common Stock granted under any Stock Plan (each, a “RSU”) that was outstanding immediately prior to the Merger, whether or not vested, was cancelled and converted into the right to receive an amount in cash, without interest, less any applicable withholding taxes, determined by multiplying (i) the Per Share Merger Consideration by (ii) the number of RSUs. The number of performance shares earned for each award of performance shares granted under any Stock Plan was calculated by determining the number of performance shares that would have been paid if the subject award period had ended on the December 31 immediately preceding the Merger (based on the conditions set for payment of performance share awards for the subject award period), provided that the number of performance shares earned for each award were not less than the aggregate number of performance shares at the target performance level. Each performance share earned that was outstanding immediately prior to the Merger, whether or not vested, was cancelled and converted into the right to receive an amount in cash, without interest, less any applicable withholding taxes, determined by multiplying (i) the Per Share Merger Consideration by (ii) the number of Performance Shares. |
MONY CLOSED BLOCK OF BUSINESS
MONY CLOSED BLOCK OF BUSINESS | 12 Months Ended |
Dec. 31, 2015 | |
Closed Block Disclosure [Abstract] | |
MONY CLOSED BLOCK OF BUSINESS | MONY CLOSED BLOCK OF BUSINESS In 1998, MONY Life Insurance Company (“MONY”) converted from a mutual insurance company to a stock corporation (“demutualization”). In connection with its demutualization, an accounting mechanism known as a closed block (the “Closed Block”) was established for certain individuals’ participating policies in force as of the date of demutualization. Assets, liabilities, and earnings of the Closed Block are specifically identified to support its participating policyholders. The Company acquired the Closed Block in conjunction with the acquisition of MONY in 2013. Assets allocated to the Closed Block inure solely to the benefit of each Closed Block’s policyholders and will not revert to the benefit of MONY or the Company. No reallocation, transfer, borrowing or lending of assets can be made between the Closed Block and other portions of MONY’s general account, any of MONY’s separate accounts or any affiliate of MONY without the approval of the Superintendent of The New York State Department of Financial Services (the “Superintendent”). Closed Block assets and liabilities are carried on the same basis as similar assets and liabilities held in the general account. The excess of Closed Block liabilities over Closed Block assets (adjusted to exclude the impact of related amounts in accumulated other comprehensive income (loss) (“AOCI”)) at the acquisition date of October 1, 2013, represented the estimated maximum future post-tax earnings from the Closed Block that would be recognized in income from continuing operations over the period the policies and contracts in the Closed Block remain in force. In connection with the acquisition of MONY, the Company developed an actuarial calculation of the expected timing of MONY’s Closed Block’s earnings as of October 1, 2013. Pursuant to the acquisition of the Company by Dai-ichi Life, this actuarial calculation of the expected timing of MONY’s Closed Block earnings was recalculated and reset as of February 1, 2015, along with the establishment of a policyholder dividend obligation as of such date. If the actual cumulative earnings from the Closed Block are greater than the expected cumulative earnings, only the expected earnings will be recognized in the Company's net income. Actual cumulative earnings in excess of expected cumulative earnings at any point in time are recorded as a policyholder dividend obligation because they will ultimately be paid to Closed Block policyholders as an additional policyholder dividend unless offset by future performance that is less favorable than originally expected. If a policyholder dividend obligation has been previously established and the actual Closed Block earnings in a subsequent period are less than the expected earnings for that period, the policyholder dividend obligation would be reduced (but not below zero ). If, over the period the policies and contracts in the Closed Block remain in force, the actual cumulative earnings of the Closed Block are less than the expected cumulative earnings, only actual earnings would be recognized in income from continuing operations. If the Closed Block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from assets outside the Closed Block. Many expenses related to Closed Block operations, including amortization of VOBA, are charged to operations outside of the Closed Block; accordingly, net revenues of the Closed Block do not represent the actual profitability of the Closed Block operations. Operating costs and expenses outside of the Closed Block are, therefore, disproportionate to the business outside of the Closed Block. Summarized financial information for the Closed Block as of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company) and is as follows: Successor Company Predecessor Company As of December 31, 2015 As of December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Closed block liabilities Future policy benefits, policyholders' account balances and other policyholder liabilities $ 6,010,520 $ 6,138,505 Policyholder dividend obligation — 366,745 Other liabilities 22,917 53,838 Total closed block liabilities 6,033,437 6,559,088 Closed block assets Fixed maturities, available-for-sale, at fair value 4,426,090 4,524,037 Equity securities, available-for-sale, at fair value — 5,387 Mortgage loans on real estate 247,162 448,855 Policy loans 746,102 771,120 Cash and other invested assets 34,420 30,984 Other assets 166,445 221,270 Total closed block assets 5,620,219 6,001,653 Excess of reported closed block liabilities over closed block assets 413,218 557,435 Portion of above representing accumulated other comprehensive income: Net unrealized investments gains (losses) net of policyholder dividend obligation of $(179,360) (Successor) and $106,886 (Predecessor) (18,597 ) — Future earnings to be recognized from closed block assets and closed block liabilities $ 394,621 $ 557,435 Reconciliation of the policyholder dividend obligation is as follows: Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, 2014 Policyholder dividend obligation, beginning balance $ 323,432 $ 366,745 $ 190,494 Applicable to net revenue (losses) (47,493 ) (1,369 ) (910 ) Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation; includes deferred tax benefits of $(96,579) (Successor); $47,277 (2015 - Predecessor); $58,571 (2014 - Predecessor) (275,939 ) 135,077 177,161 Policyholder dividend obligation, ending balance $ — $ 500,453 $ 366,745 Closed Block revenues and expenses were as follows: Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Revenues Premiums and other income $ 185,562 $ 15,065 $ 212,765 Net investment income 193,203 19,107 239,028 Net investment gains 3,333 568 10,528 Total revenues 382,098 34,740 462,321 Benefits and other deductions Benefits and settlement expenses 336,629 31,152 417,667 Other operating expenses 1,001 — 674 Total benefits and other deductions 337,630 31,152 418,341 Net revenues before income taxes 44,468 3,588 43,980 Income tax expense 14,920 1,256 20,377 Net revenues $ 29,548 $ 2,332 $ 23,603 |
INVESTMENT OPERATIONS
INVESTMENT OPERATIONS | 12 Months Ended |
Dec. 31, 2015 | |
INVESTMENT OPERATIONS | |
INVESTMENT OPERATIONS | INVESTMENT OPERATIONS Major categories of net investment income are summarized as follows: Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Fixed maturities $ 1,267,900 $ 140,104 $ 1,712,297 $ 1,509,544 Equity securities 40,907 2,572 41,740 26,923 Mortgage loans 252,577 24,977 360,778 333,145 Investment real estate 2,528 112 4,482 3,556 Short-term investments 93,982 9,713 112,292 75,984 1,657,894 177,478 2,231,589 1,949,152 Other investment expenses 24,946 2,298 33,865 31,071 Net investment income $ 1,632,948 $ 175,180 $ 2,197,724 $ 1,918,081 Net realized investment gains (losses) for all other investments are summarized as follows: Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Fixed maturities $ 1,282 $ 6,891 $ 75,159 $ 63,180 Equity securities (1,001 ) — 1,793 3,276 Impairments on fixed maturity securities (26,993 ) (481 ) (7,275 ) (19,100 ) Impairments on equity securities — — — (3,347 ) Modco trading portfolio (167,359 ) 73,062 142,016 (178,134 ) Other investments 192 1,200 (13,566 ) (11,859 ) Total realized gains (losses)—investments $ (193,879 ) $ 80,672 $ 198,127 $ (145,984 ) For the period of February 1, 2015 to December 31, 2015 (Successor Company), gross realized gains on investments available-for-sale (fixed maturities, equity securities, and short-term investments) were $8.7 million and gross realized losses were $35.5 million , including $27.0 million of impairment losses. For the period of January 1, 2015 to January 31, 2015 (Predecessor Company), gross realized gains on investments available-for-sale (fixed maturities, equity securities, and short-term investments) were $6.9 million and gross realized losses were $0.5 million , including $0.4 million of impairment losses. For the year ended December 31, 2014 (Predecessor Company), gross realized gains on investments available-for-sale (fixed maturities, equity securities, and short-term investments) were $78.1 million and gross realized losses were $8.1 million , including $6.9 million of impairment losses. For the year ended December 31, 2013 (Predecessor Company), gross realized gains on investments available-for-sale (fixed maturities, equity securities, and short-term investments) were $72.8 million and gross realized losses were $28.0 million , including $21.7 million of impairment losses. For the period of February 1, 2015 to December 31, 2015 (Successor Company), the Company sold securities in an unrealized gain position with a fair value (proceeds) of $950.9 million . The gain realized on the sale of these securities was $8.7 million . For the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the Company sold securities in an unrealized gain position with a fair value (proceeds) of $172.6 million . The gain realized on the sale of the securities was $6.9 million . For the year ended December 31, 2014 (Predecessor Company), the Company sold securities in an unrealized gain position with a fair value (proceeds) of $1.7 billion . The gain realized on the sale of these securities was $78.1 million . For the year ended December 31, 2013 (Predecessor Company), the Company sold securities in an unrealized gain position with a fair value (proceeds) of $2.3 billion . The gain realized on the sale of these securities was $72.8 million . For the period of February 1, 2015 to December 31, 2015 (Successor Company), the Company sold securities in an unrealized loss position with a fair value (proceeds) of $178.4 million . The loss realized on the sale of these securities was $8.5 million . The Company made the decision to exit these holdings in conjunction with our overall asset liability management process. For the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the Company sold securities in an unrealized loss position with a fair value (proceeds) of $0.4 million . The loss realized on the sale of these securities were immaterial to the Company. The Company made the decision to exit these holdings in conjunction with our overall asset liability management process. For the year ended December 31, 2014 (Predecessor Company), the Company sold securities in an unrealized loss position with a fair value (proceeds) of $22.9 million . The loss realized on the sale of these securities was $1.2 million . The Company made the decision to exit these holdings in conjunction with our overall asset liability management process. For the year ended December 31, 2013 (Predecessor Company), the Company sold securities in an unrealized loss position with a fair value (proceeds) of $398.2 million . The loss realized on the sale of these securities was $6.3 million . The Company made the decision to exit these holdings in conjunction with our overall asset liability management process. The amortized cost and fair value of the Company's investments classified as available-for-sale as of December 31, 2015 (Successor Company) and as of December 31, 2014 (Predecessor Company), are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Total OTTI Recognized in OCI (1) (Dollars In Thousands) Successor Company As of December 31, 2015 Fixed maturities: Residential mortgage-backed securities $ 1,773,099 $ 9,286 $ (17,112 ) $ 1,765,273 $ — Commercial mortgage-backed securities 1,328,317 428 (41,858 ) 1,286,887 — Other asset-backed securities 813,056 2,758 (18,763 ) 797,051 — U.S. government-related securities 1,566,260 449 (34,532 ) 1,532,177 — Other government-related securities 18,483 — (743 ) 17,740 — States, municipals, and political subdivisions 1,729,732 682 (126,814 ) 1,603,600 — Corporate securities 28,499,691 26,369 (2,682,274 ) 25,843,786 (605 ) Preferred stock 64,362 192 (1,867 ) 62,687 — 35,793,000 40,164 (2,923,963 ) 32,909,201 (605 ) Equity securities 724,226 13,255 (6,477 ) 731,004 — Short-term investments 206,991 — — 206,991 — $ 36,724,217 $ 53,419 $ (2,930,440 ) $ 33,847,196 $ (605 ) Amortized Cost Gross Unrealized Gains Gross Fair Total OTTI (1) (Dollars In Thousands) Predecessor Company As of December 31, 2014 Fixed maturities: Residential mortgage-backed securities $ 1,374,206 $ 56,330 $ (12,278 ) $ 1,418,258 $ 6,404 Commercial mortgage-backed securities 1,119,979 59,637 (2,364 ) 1,177,252 — Other asset-backed securities 857,441 17,885 (35,950 ) 839,376 (95 ) U.S. government-related securities 1,394,028 44,149 (9,282 ) 1,428,895 — Other government-related securities 16,939 3,233 — 20,172 — States, municipals, and political subdivisions 1,391,526 296,594 (431 ) 1,687,689 — Corporate securities 24,765,303 2,759,255 (139,031 ) 27,385,527 — 30,919,422 3,237,083 (199,336 ) 33,957,169 6,309 Equity securities 757,259 38,669 (14,182 ) 781,746 — Short-term investments 155,500 — — 155,500 — $ 31,832,181 $ 3,275,752 $ (213,518 ) $ 34,894,415 $ 6,309 (1) These amounts are included in the gross unrealized gains and gross unrealized losses columns above. The preferred stock shown above as of December 31, 2015 (Successor Company) is included in the equity securities total as of December 31, 2014 (Predecessor Company). The amortized cost and fair value of the Company's investments classified as held-to-maturity as of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Total OTTI Recognized in OCI (Dollars In Thousands) Successor Company As of December 31, 2015 Fixed maturities: Other $ 593,314 $ — $ (78,314 ) $ 515,000 $ — $ 593,314 $ — $ (78,314 ) $ 515,000 $ — Amortized Cost Gross Gross Fair Total OTTI (Dollars In Thousands) Predecessor Company As of December 31, 2014 Fixed maturities: Other $ 435,000 $ 50,422 $ — $ 485,422 $ — $ 435,000 $ 50,422 $ — $ 485,422 $ — During the period of February 1, 2015 to December 31, 2015 (Successor Company) and for the year ended December 31, 2014 (Predecessor Company), the Company did not record any other-than-temporary impairments on held-to-maturity securities. The Company's held-to-maturity securities had $78.3 million of gross unrecognized holding losses for the period of February 1, 2015 to December 31, 2015 (Successor Company). For the year ended December 31, 2014 (Predecessor Company), the Company did not have any gross unrecognized holding losses. The Company does not consider these unrecognized holding losses to be other-than-temporary based on certain positive factors associated with the securities which include credit ratings, financial health of the issuer, continued access of the issuer to capital markets and other pertinent information. As of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), the Company had an additional $2.7 billion and $2.8 billion of fixed maturities, $8.3 million and $21.5 million of equity securities, and $61.7 million and $95.1 million of short-term investments classified as trading securities, respectively. The amortized cost and fair value of available-for-sale and held-to-maturity fixed maturities as of December 31, 2015 (Successor Company), by expected maturity, are shown below. Expected maturities of securities without a single maturity date are allocated based on estimated rates of prepayment that may differ from actual rates of prepayment. Available-for-sale Held-to-maturity Amortized Cost Fair Value Amortized Cost Fair Value (Dollars In Thousands) (Dollars In Thousands) Due in one year or less $ 937,594 $ 935,860 $ — $ — Due after one year through five years 5,868,351 5,732,803 — — Due after five years through ten years 7,840,167 7,542,055 — — Due after ten years 21,146,888 18,698,483 593,314 515,000 $ 35,793,000 $ 32,909,201 $ 593,314 $ 515,000 During the period of February 1, 2015 to December 31, 2015 (Successor Company), the Company recorded pre-tax other-than-temporary impairments of investments of $28.7 million , all of which were related to fixed maturities. Credit impairments recorded in earnings during the period of February 1, 2015 to December 31, 2015 (Successor Company), were $27.0 million . During the period of February 1, 2015 to December 31, 2015 (Successor Company), $1.7 million of non-credit impairment losses were recorded in other comprehensive income. There were no other-than-temporary impairments related to fixed maturities or equity securities that the Company intended to sell or expected to be required to sell for the period of February 1, 2015 to December 31, 2015 (Successor Company). During the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the Company recorded pre-tax other-than-temporary impairments of investments of $0.6 million , all of which related to fixed maturities. Credit impairments recorded in earnings during the period were $0.5 million . During the period of January 1, 2015 to January 31, 2015 (Predecessor Company), $0.1 million of non-credit impairment losses recorded in other comprehensive income. There were no other-than-temporary impairments related to fixed maturities or equity securities that the Company intended to sell or expected to be required to sell for the period of January 1, 2015 to January 31, 2015 (Predecessor Company). During the year ended December 31, 2014 (Predecessor Company), the Company recorded pre-tax other-than-temporary impairments of investments of $2.6 million , all of which related to fixed maturities. Credit impairments recorded in earnings during the year ended December 31, 2014 (Predecessor Company), were $7.3 million . During the year ended December 31, 2014 (Predecessor Company), $4.7 million of non-credit losses previously recorded in other comprehensive income were recorded in earnings as credit losses. There were no other-than-temporary impairments related to fixed maturities or equity securities that the Company intended to sell or expected to be required to sell for the year ended December 31, 2014 (Predecessor Company). During the year ended December 31, 2013 (Predecessor Company), the Company recorded pre-tax other-than-temporary impairments of investments of $10.9 million , of which $7.6 million were related to fixed maturities and $3.3 million were related to equity securities. Credit impairments recorded in earnings during the year ended December 31, 2013 (Predecessor Company) were $22.4 million . Non-credit impairment losses of $11.5 million that were previously recorded in other comprehensive income (loss) were recorded in earnings as credit losses. There were no impairments related to equity securities. For the year ended December 31, 2013 (Predecessor Company), there were no other-than-temporary impairments related to fixed maturities or equity securities that the Company intended to sell or expected to be required to sell. The following chart is a rollforward of available-for-sale credit losses on fixed maturities held by the Company for which a portion of an other-than-temporary impairment was recognized in other comprehensive income (loss): Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Beginning balance $ — $ 15,478 $ 41,692 $ 122,121 Additions for newly impaired securities 22,761 — — 3,516 Additions for previously impaired securities — 221 2,263 12,066 Reductions for previously impaired securities due to a change in expected cash flows — — (28,477 ) (88,523 ) Reductions for previously impaired securities that were sold in the current period — — — (7,488 ) Other — — — — Ending balance $ 22,761 $ 15,699 $ 15,478 $ 41,692 The following table includes the gross unrealized losses and fair value of the Company's investments that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2015 (Successor Company): Less Than 12 Months 12 Months or More Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss (Dollars In Thousands) Residential mortgage-backed securities $ 977,433 $ (17,112 ) $ — $ — $ 977,433 $ (17,112 ) Commercial mortgage-backed securities 1,233,518 (41,858 ) — — 1,233,518 (41,858 ) Other asset-backed securities 633,274 (18,763 ) — — 633,274 (18,763 ) U.S. government-related securities 1,291,476 (34,532 ) — — 1,291,476 (34,532 ) Other government-related securities 17,740 (743 ) — — 17,740 (743 ) States, municipalities, and political subdivisions 1,566,752 (126,814 ) — — 1,566,752 (126,814 ) Corporate securities 24,283,448 (2,682,274 ) — — 24,283,448 (2,682,274 ) Preferred stock 34,685 (1,867 ) — — 34,685 (1,867 ) Equities 248,493 (6,477 ) — — 248,493 (6,477 ) $ 30,286,819 $ (2,930,440 ) $ — $ — $ 30,286,819 $ (2,930,440 ) The preferred stock shown above as of December 31, 2015 (Successor Company), is included in the equity securities total as of December 31, 2014 (Predecessor Company). The book value of the Company’s investment portfolio was marked to fair value as of February 1, 2015 (Successor Company), in conjunction with the Dai-ichi Merger which resulted in the elimination of previously unrealized gains and losses from accumulated other comprehensive income as of that date. The level of interest rates as of February 1, 2015 (Successor Company) resulted in an increase in the carrying value of the Company’s investments. Since February 1, 2015 (Successor Company), interest rates have increased resulting in net unrealized losses in the Company’s investment portfolio. As of December 31, 2015 (Successor Company), the Company had a total of 2,548 positions that were in an unrealized loss position, but the Company does not consider these unrealized loss positions to be other-than-temporary. This is based on the aggregate factors discussed previously and because the Company has the ability and intent to hold these investments until the fair values recover, and the Company does not intend to sell or expect to be required to sell the securities before recovering the Company’s amortized cost of the securities. The following table includes the gross unrealized losses and fair value of the Company's investments that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2014 (Predecessor Company): Less Than 12 Months 12 Months or More Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss (Dollars In Thousands) Residential mortgage-backed securities $ 166,271 $ (9,562 ) $ 67,280 $ (2,716 ) $ 233,551 $ (12,278 ) Commercial mortgage-backed securities 49,909 (334 ) 102,529 (2,030 ) 152,438 (2,364 ) Other asset-backed securities 108,666 (6,473 ) 537,486 (29,477 ) 646,152 (35,950 ) U.S. government-related securities 231,917 (3,868 ) 280,803 (5,414 ) 512,720 (9,282 ) Other government-related securities — — — — — — States, municipalities, and political subdivisions 1,904 (134 ) 10,482 (297 ) 12,386 (431 ) Corporate securities 1,659,287 (76,341 ) 776,864 (62,690 ) 2,436,151 (139,031 ) Equities 17,430 (217 ) 129,719 (13,965 ) 147,149 (14,182 ) $ 2,235,384 $ (96,929 ) $ 1,905,163 $ (116,589 ) $ 4,140,547 $ (213,518 ) RMBS have a gross unrealized loss greater than twelve months of $2.7 million as of December 31, 2014 (Predecessor Company). Factors such as the credit enhancement within the deal structure, the average life of the securities, and the performance of the underlying collateral support the recoverability of these investments. CMBS have a gross unrealized loss greater than twelve months of $2.0 million as of December 31, 2014 (Predecessor Company). Factors such as the credit enhancement within the deal structure, the average life of the securities, and the performance of the underlying collateral support the recoverability of these investments. The other asset-backed securities have a gross unrealized loss greater than twelve months of $29.5 million as of December 31, 2014 (Predecessor Company). This category predominately includes student-loan backed auction rate securities, the underlying collateral, of which is at least 97% guaranteed by the Federal Family Education Loan Program ("FFELP"). These unrealized losses have occurred within the Company's auction rate securities ("ARS") portfolio since the market collapse during 2008. At this time, the Company has no reason to believe that the U.S. Department of Education would not honor the FFELP guarantee, if it were necessary. The U.S. government-related category had gross unrealized losses greater than twelve months of $5.4 million as of December 31, 2014 (Predecessor Company). These declines were entirely related to changes in interest rates. The corporate securities category has gross unrealized losses greater than twelve months of $62.7 million as of December 31, 2014 (Predecessor Company). The aggregate decline in market value of these securities was deemed temporary due to positive factors supporting the recoverability of the respective investments. Positive factors considered include credit ratings, the financial health of the issuer, the continued access of the issuer to capital markets, and other pertinent information. The equities category has a gross unrealized loss greater than twelve months of $14.0 million as of December 31, 2014 (Predecessor Company). The aggregate decline in market value of these securities was deemed temporary due to factors supporting the recoverability of the respective investments. Positive factors include credit ratings, the financial health of the issuer, the continued access of the issuer to the capital markets, and other pertinent information. The Company does not consider these unrealized loss positions to be other-than-temporary, based on the aggregate factors discussed previously and because the Company has the ability and intent to hold these investments until the fair values recover, and does not intend to sell or expect to be required to sell the securities before recovering the Company's amortized cost of the securities. As of December 31, 2015 (Successor Company), the Company had securities in its available-for-sale portfolio which were rated below investment grade with a fair value of $1.5 billion and had an amortized cost of $1.7 billion . In addition, included in the Company's trading portfolio, the Company held $288.2 million of securities which were rated below investment grade. Approximately $929.6 million of the below investment grade securities held by the Company were not publicly traded. The change in unrealized gains (losses), net of income tax, on fixed maturity and equity securities, classified as available-for-sale is summarized as follows: Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Fixed maturities $ (1,874,469 ) $ 670,229 $ 1,224,672 $ (1,269,449 ) Equity securities 4,406 10,226 35,242 (20,892 ) The Company held $27.1 million of non-income producing securities for the period of February 1, 2015 to December 31, 2015 (Successor Company). Included in the Company's invested assets are $1.7 billion of policy loans as of December 31, 2015 (Successor Company). The interest rates on standard policy loans range from 3.0% to 8.0% . The collateral loans on life insurance policies have an interest rate of 13.64% . Variable Interest Entities The Company holds certain investments in entities in which its ownership interests could possibly be considered variable interests under Topic 810 of the FASB ASC (excluding debt and equity securities held as trading, available for sale, or held to maturity). The Company reviews the characteristics of each of these applicable entities and compares those characteristics to applicable criteria to determine whether the entity is a Variable Interest Entity ("VIE"). If the entity is determined to be a VIE, the Company then performs a detailed review to determine whether the interest would be considered a variable interest under the guidance. The Company then performs a qualitative review of all variable interests with the entity and determines whether the Company is the primary beneficiary. ASC 810 provides that an entity is the primary beneficiary of a VIE if the entity has 1) the power to direct the activities of the VIE that most significantly impact the VIE's economic performance, and 2) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE. Based on this analysis, the Company had an interest in one wholly owned subsidiary, Red Mountain, LLC ("Red Mountain"), that was determined to be a VIE as of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company). The activity most significant to Red Mountain is the issuance of a note in connection with a financing transaction involving Golden Gate V Vermont Captive Insurance Company ("Golden Gate V") and the Company in which Golden Gate V issued non-recourse funding obligations to Red Mountain and Red Mountain issued the note to Golden Gate V. Credit enhancement on the Red Mountain Note is provided by an unrelated third party. For details of this transaction, see Note 12, Debt and Other Obligations . The Company has the power, via its 100% ownership through an affiliate, to direct the activities of the VIE, but does not have the obligation to absorb losses related to the primary risks or sources of variability to the VIE. The variability of loss would be borne primarily by the third party in its function as provider of credit enhancement on the Red Mountain Note. Accordingly, it was determined that the Company is not the primary beneficiary of the VIE. The Company's risk of loss related to the VIE is limited to its investment of $10,000 . Additionally, the holding company ("PLC") has guaranteed the VIE's credit enhancement fee obligation to the unrelated third party provider. As of December 31, 2015 (Successor Company), no payments have been made or required related to this guarantee. |
MORTGAGE LOANS
MORTGAGE LOANS | 12 Months Ended |
Dec. 31, 2015 | |
MORTGAGE LOANS | |
MORTGAGE LOANS | MORTGAGE LOANS Mortgage Loans The Company invests a portion of its investment portfolio in commercial mortgage loans. As of December 31, 2015 (Successor Company), the Company's mortgage loan holdings were approximately $5.7 billion . The Company has specialized in making loans on either credit-oriented commercial properties or credit-anchored strip shopping centers and apartments. The Company’s underwriting procedures relative to its commercial loan portfolio are based, in the Company’s view, on a conservative and disciplined approach. The Company concentrates on a small number of commercial real estate asset types associated with the necessities of life (retail, multi-family, senior living, professional office buildings, and warehouses). The Company believes that these asset types tend to weather economic downturns better than other commercial asset classes in which it has chosen not to participate. The Company believes this disciplined approach has helped to maintain a relatively low delinquency and foreclosure rate throughout its history. The majority of the Company's mortgage loans portfolio was underwritten by the Company. From time to time, the Company may acquire loans in conjunction with an acquisition. The Company's commercial mortgage loans are stated at unpaid principal balance, adjusted for any unamortized premium or discount, and net of valuation allowances. Interest income is accrued on the principal amount of the loan based on the loan's contractual interest rate. Amortization of premiums and discounts is recorded using the effective yield method. Interest income, amortization of premiums and discounts and prepayment fees are reported in net investment income. As of February 1, 2015, all mortgage loans were measured at fair value. Each mortgage loan was individually analyzed to determine the fair value. Each loan was either analyzed and assigned a discount rate or given an impairment, based on whether facts and circumstances which, as of the acquisition date, indicated less than full projected collections of contractual principal and interest payments. Various market factors were considered in determining the net present value of the expected cash flow stream or underlying real estate collateral, including the characteristics of the borrower, the underlying collateral, underlying credit worthiness of the tenants, and tenant payment history. Known events and risks, such as refinancing risks, were also considered in the fair value determination. In certain cases, fair value was based on the NPV of the expected cash flow stream or the underlying value of the real estate collateral. The following table includes a breakdown of the Company's commercial mortgage loan portfolio by property type as of December 31, 2015 (Successor Company): Type Percentage of Mortgage Loans on Real Estate Retail 60.9 % Office Buildings 13.0 Apartments 7.4 Warehouses 8.6 Senior housing 6.4 Other 3.7 100.0 % The Company specializes in originating mortgage loans on either credit-oriented or credit-anchored commercial properties. No single tenant's exposure represents more than 2.0% of mortgage loans. Approximately 62.8% of the mortgage loans are on properties located in the following states: State Percentage of Mortgage Loans on Real Estate Alabama 10.6 % Texas 9.3 Georgia 7.4 Florida 6.5 Tennessee 6.4 Utah 5.3 North Carolina 4.7 South Carolina 4.5 Ohio 4.2 California 3.9 62.8 % During the period of February 1, 2015 to December 31, 2015 (Successor Company) and the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the Company funded approximately $1.4 billion and $ 97.4 million of new loans, with an average loan size of $6.0 million and $ 7.5 million , respectively. The average size mortgage loan in the portfolio as of December 31, 2015 (Successor Company), was $3.0 million , and the weighted-average interest rate was 5.30% . The largest single mortgage loan at December 31, 2015 (Successor Company) was $48.3 million . Certain of the mortgage loans have call options between 3 and 10 years . However, if interest rates were to significantly increase, we may be unable to exercise the call options on our existing mortgage loans commensurate with the significantly increased market rates. Assuming the loans are called at their next call dates, approximately $143.5 million would become due in 2016, $854.5 million in 2017 through 2021, $242.5 million in 2022 through 2026, and $11.3 million thereafter. The Company offers a type of commercial mortgage loan under which the Company will permit a loan-to-value ratio of up to 85% in exchange for a participating interest in the cash flows from the underlying real estate. As of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), approximately $449.2 million and $553.6 million , respectively, of the Company's mortgage loans have this participation feature. Cash flows received as a result of this participation feature are recorded as interest income. During the period of February 1, 2015 to December 31, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company), and for the year ended December 31, 2014 (Predecessor Company), the Company recognized $29.8 million , $0.1 million , and $16.7 million of participating mortgage loan income, respectively. As of December 31, 2015 (Successor Company), approximately $4.7 million of invested assets consisted of nonperforming, restructured, or mortgage loans that were foreclosed and were converted to real estate properties since February 1, 2015 (Successor Company). The Company does not expect these investments to adversely affect its liquidity or ability to maintain proper matching of assets and liabilities. During the period of February 1, 2015 to December 31, 2015 (Successor Company) and the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the Company entered into certain mortgage loan transactions that were accounted for as troubled debt restructurings under Topic 310 of the FASB ASC. For all mortgage loans, the impact of troubled debt restructurings is generally reflected in the Company's investment balance and in the allowance for mortgage loan credit losses. Transactions accounted for as troubled debt restructurings during the period of February 1, 2015 to December 31, 2015 (Successor Company) and the period of January 1, 2015 to January 31, 2015 (Predecessor Company) included either the acceptance of assets in satisfaction of principal during the respective periods or at a future date, and were the result of agreements between the creditor and the debtor. During the period of February 1, 2015 to December 31, 2015 (Successor Company), the Company accepted or agreed to accept assets of $15.8 million in satisfaction of $21.1 million of principal and for the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the Company accepted or agreed to accept assets of $11.3 million in satisfaction of $13.8 million of principal. Of the amounts accepted or agreed to accept in satisfaction of principal during the period of February 1, 2015 to December 31, 2015 (Successor Company) $3.7 million related to foreclosures. These transactions resulted in no material realized losses in the Company's investment in mortgage loans net of existing discounts for mortgage loans losses for the period of February 1, 2015 to December 31, 2015 (Successor Company). As of December 31, 2014 (Predecessor Company), approximately $24.5 million , or 0.05% , of invested assets consisted of nonperforming, restructured or mortgage loans that were foreclosed and were converted to real estate properties. The Company does not expect these investments to adversely affect its liquidity or ability to maintain proper matching of assets and liabilities. During the year ended December 31, 2014 (Predecessor Company), certain mortgage loan transactions occurred that were accounted for as troubled debt restructurings under Topic 310 of the FASB ASC. For all mortgage loans, the impact of troubled debt restructurings is generally reflected in our investment balance and in the allowance for mortgage loan credit losses. Transactions accounted for as troubled debt restructurings during the year ended December 31, 2014 (Predecessor Company) included either the acceptance of assets in satisfaction of principal at a future date or the recognition of permanent impairments to principal, and were the result of agreements between the creditor and the debtor. During the year ended December 31, 2014 (Predecessor Company), the Company accepted or agreed to accept assets of $33.0 million in satisfaction of $41.7 million of principal. The Company also identified one loan whose principal of $12.6 million was permanently impaired to a value of $7.3 million . These transactions resulted in realized losses of $10.3 million and a decrease in the Company’s investment in mortgage loans net of existing allowances for mortgage loans losses. As of December 31, 2013 (Predecessor Company), approximately $15.9 million , or 0.03% , of invested assets consisted of nonperforming, restructured or mortgage loans that were foreclosed and were converted to real estate properties. We do not expect these investments to adversely affect our liquidity or ability to maintain proper matching of assets and liabilities. During the year ended December 31, 2013 (Predecessor Company), certain mortgage loan transactions occurred that were accounted for as troubled debt restructurings under Topic 310 of the FASB ASC. For all mortgage loans, the impact of troubled debt restructurings is generally reflected in our investment balance and in the allowance for mortgage loan credit losses. Transactions accounted for as troubled debt restructurings during the year either involved the modification of payment terms pursuant to bankruptcy proceedings or included acceptance of assets in satisfaction of principal or foreclosure on collateral property, and were the result of agreements between the creditor and the debtor. With respect to the modified loans we expect to collect all amounts due related to these loans as well as expenses incurred as a result of the restructurings. Additionally, there were no material changes to the principal balance of these loans, as a result of restructuring or modifications, which was $3.2 million as of December 31, 2013 (Predecessor Company). During the year a mortgage loan was paid off at a discount, the impact of this transaction resulted in a reduction of $0.5 million in the Company’s investment in mortgage loans, net of existing allowances for mortgage loan losses as of December 31, 2013 (Predecessor Company). The Company's mortgage loan portfolio consists of two categories of loans: 1) those not subject to a pooling and servicing agreement and 2) those subject to a contractual pooling and servicing agreement. As of December 31, 2015 (Successor Company), $4.7 million of mortgage loans not subject to a pooling and servicing agreement were nonperforming, restructured, or mortgage loans that were foreclosed and were converted to real estate properties since February 1, 2015 (Successor Company). The Company foreclosed on $3.7 million nonperforming loans during the period of February 1, 2015 to December 31, 2015 (Successor Company). The Company did not foreclose on any nonperforming loans not subject to a pooling and servicing agreement during the period of January 1, 2015 to January 31, 2015 (Predecessor Company). As of December 31, 2015 (Successor Company), none of the loans subject to a pooling and servicing agreement were nonperforming or restructured. The Company did not foreclose on any nonperforming loans subject to a pooling and servicing agreement during the periods of February 1, 2015 to December 31, 2015 (Successor Company) and January 1, 2015 to January 31, 2015 (Predecessor Company). As of December 31, 2015 (Successor Company), there was no allowance for mortgage loan credit losses and as of December 31, 2014 (Predecessor Company), the Company had an allowance for mortgage loan credit losses of $5.7 million . Due to the Company’s loss experience and nature of the loan portfolio, the Company believes that a collectively evaluated allowance would be inappropriate. The Company believes an allowance calculated through an analysis of specific loans that are believed to have a higher risk of credit impairment provides a more accurate presentation of expected losses in the portfolio and is consistent with the applicable guidance for loan impairments in ASC Subtopic 310. Since the Company uses the specific identification method for calculating the allowance, it is necessary to review the economic situation of each borrower to determine those that have higher risk of credit impairment. The Company has a team of professionals that monitors borrower conditions such as payment practices, borrower credit, operating performance, and property conditions, as well as ensuring the timely payment of property taxes and insurance. Through this monitoring process, the Company assesses the risk of each loan. When issues are identified, the severity of the issues are assessed and reviewed for possible credit impairment. If a loss is probable, an expected loss calculation is performed and an allowance is established for that loan based on the expected loss. The expected loss is calculated as the excess carrying value of a loan over either the present value of expected future cash flows discounted at the loan’s original effective interest rate, or the current estimated fair value of the loan’s underlying collateral. A loan may be subsequently charged off at such point that the Company no longer expects to receive cash payments, the present value of future expected payments of the renegotiated loan is less than the current principal balance, or at such time that the Company is party to foreclosure or bankruptcy proceedings associated with the borrower and does not expect to recover the principal balance of the loan. A charge off is recorded by eliminating the allowance against the mortgage loan and recording the renegotiated loan or the collateral property related to the loan as investment real estate on the balance sheet, which is carried at the lower of the appraised fair value of the property or the unpaid principal balance of the loan, less estimated selling costs associated with the property: Successor Company Predecessor Company February 1, 2015 January 1, 2015 As of December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Beginning balance $ — $ 5,720 $ 3,130 Charge offs (2,561 ) (861 ) (675 ) Recoveries (638 ) (2,359 ) (2,600 ) Provision 3,199 — 5,865 Ending balance $ — $ 2,500 $ 5,720 It is the Company's policy to cease to carry accrued interest on loans that are over 90 days delinquent. For loans less than 90 days delinquent, interest is accrued unless it is determined that the accrued interest is not collectible. If a loan becomes over 90 days delinquent, it is the Company's general policy to initiate foreclosure proceedings unless a workout arrangement to bring the loan current is in place. For loans subject to a pooling and servicing agreement, there are certain additional restrictions and/or requirements related to workout proceedings, and as such, these loans may have different attributes and/or circumstances affecting the status of delinquency or categorization of those in nonperforming status. An analysis of the delinquent loans is shown in the following chart: 30 - 59 Days Delinquent 60 - 89 Days Delinquent Greater than 90 Days Delinquent Total Delinquent (Dollars In Thousands) Successor Company As of December 31, 2015 Commercial mortgage loans $ 6,002 $ 1,033 $ — $ 7,035 Number of delinquent commercial mortgage loans 6 1 — 7 30 - 59 Days Delinquent 60 - 89 Days Greater than 90 Days Total (Dollars In Thousands) Predecessor Company As of December 31, 2014 Commercial mortgage loans $ 8,972 $ — $ 1,484 $ 10,456 Number of delinquent commercial mortgage loans 4 — 1 5 The Company's commercial mortgage loan portfolio consists of mortgage loans that are collateralized by real estate. Due to the collateralized nature of the loans, any assessment of impairment and ultimate loss given a default on the loans is based upon a consideration of the estimated fair value of the real estate. The Company limits accrued interest income on impaired loans to ninety days of interest. Once accrued interest on the impaired loan is received, interest income is recognized on a cash basis. For information regarding impaired loans, please refer to the following chart: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Cash Basis Interest Income (Dollars In Thousands) Successor Company As of December 31, 2015 Commercial mortgage loans: With no related allowance recorded $ 1,694 $ 1,728 $ — $ 847 $ 104 $ 117 With an allowance recorded — — — — — — Recorded Investment Unpaid Related Average Interest Cash Basis (Dollars In Thousands) Predecessor Company As of December 31, 2014 Commercial mortgage loans: With no related allowance recorded $ — $ — $ — $ — $ — $ — With an allowance recorded 19,632 20,603 5,720 3,272 1,224 1,280 As of December 31, 2015 (Successor Company), the Company did not carry any mortgage loans that have been modified in a troubled debt restructuring. Mortgage loans that were modified in a troubled debt restructuring as of December 31, 2014 (Predecessor Company) were as follows: Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars In Thousands) Predecessor Company As of December 31, 2014 Troubled debt restructuring: Commercial mortgage loans 6 $ 28,648 $ 19,593 |
DEFERRED POLICY ACQUISITION COS
DEFERRED POLICY ACQUISITION COSTS AND VALUE OF BUSINESS ACQUIRED | 12 Months Ended |
Dec. 31, 2015 | |
DEFERRED POLICY ACQUISITION COSTS AND VALUE OF BUSINESS ACQUIRED | |
DEFERRED POLICY ACQUISITION COSTS AND VALUE OF BUSINESS ACQUIRED | DEFERRED POLICY ACQUISITION COSTS AND VALUE OF BUSINESS ACQUIRED Deferred Policy Acquisition Costs The balances and changes in DAC are as follows: Successor Company Predecessor Company February 1, 2015 January 1, 2015 As of December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Balance, beginning of period $ — $ 2,647,980 $ 2,721,687 Capitalization of commissions, sales, and issue expenses 302,839 22,513 288,592 Amortization (24,187 ) 1,117 (195,605 ) Change in unrealized investment gains and losses 9,959 (96,830 ) (166,694 ) Balance, end of period $ 288,611 $ 2,574,780 $ 2,647,980 Value of Business Acquired The balances and changes in VOBA are as follows: Successor Company Predecessor Company February 1, 2015 January 1, 2015 As of December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Balance, beginning of period $ 1,276,886 $ 646,590 $ 848,528 Amortization (69,869 ) (5,189 ) (61,704 ) Change in unrealized gains and losses 69,226 (79,418 ) (140,234 ) Other (6,046 ) — — Balance, end of period $ 1,270,197 $ 561,983 $ 646,590 As of February 1, 2015, the existing DAC and VOBA balance was written off in conjunction with the Merger previously disclosed in Note 4, Dai-ichi Merger and in accordance with ASC Topic 805—Business Combinations. Concurrently, a VOBA asset was created representing the actuarial estimated present value of future cash flows from the Company's insurance policies and investment contracts in-force on the date of the Merger. Based on the balance recorded as of December 31, 2015 (Successor Company), the expected amortization of VOBA for the next five years is as follows: Expected Years Amortization (Dollars In Thousands) 2016 $ 131,599 2017 122,011 2018 112,230 2019 96,878 2020 80,542 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL The changes in the carrying amount of goodwill by segment are as follows: Predecessor Company Life Marketing Acquisitions Asset Protection Corporate and Other Total Consolidated (Dollars In Thousands) Balance as of December 31, 2013 $ 10,192 $ 32,517 $ 62,671 $ 83 $ 105,463 Tax benefit of excess tax goodwill — (3,098 ) — — (3,098 ) Balance as of December 31, 2014 $ 10,192 $ 29,419 $ 62,671 $ 83 $ 102,365 During the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the Company decreased its goodwill balance by approximately $0.3 million . The decrease for the period of the Predecessor Company was due to an adjustment in the Acquisitions segment related to tax benefits realized during the period on the portion of tax goodwill in excess of GAAP basis goodwill. The goodwill balances associated with the Predecessor Company were replaced with newly established goodwill balances in conjunction with the Dai-ichi Merger, in accordance with ASC Topic 805, as described below. As permitted by ASC Topic 805, Business Combinations , the Company measured its assets and liabilities at fair value on the date of the Merger, February 1, 2015. The purchase price in excess of the fair value of assets and liabilities of the Company resulted in the establishment of goodwill as of the date of the Merger. As of February 1, 2015 (Successor Company), the Company established an aggregate goodwill balance of $735.7 million . During the measurement period subsequent to February 1, 2015, the Company has made adjustments to provisional amounts related to certain tax balances that resulted in a decrease to goodwill of $3.3 million from the amount recorded at the Merger date. This reduction in Goodwill was applied to the Life Marketing segment's goodwill. The balance of goodwill associated with the Merger as of December 31, 2015 (Successor Company) is $732.4 million . Refer to Note 4, Dai-ichi Merger , for more information related to the Successor Company goodwill. |
CERTAIN NONTRADITIONAL LONG-DUR
CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS | 12 Months Ended |
Dec. 31, 2015 | |
CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS | |
CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS | CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS The Company issues variable universal life and VA products through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder. The Company also offers, for our VA products, certain GMDB. The most significant of these guarantees involve 1) return of the highest anniversary date account value, or 2) return of the greater of the highest anniversary date account value or the last anniversary date account value compounded at 5% interest or 3) return of premium. The GMWB rider provides the contract holder with protection against certain adverse market impacts on the amount they can withdraw and is classified as an embedded derivative and is carried at fair value on the Company's balance sheet. The VA separate account balances subject to GMWB were $9.3 billion as of December 31, 2015 (Successor Company). For more information regarding the valuation of and income impact of GMWB, please refer to Note 2, Summary of Significant Accounting Policies , Note 23, Fair Value of Financial Instruments , and Note 24, Derivative Financial Instruments . The GMDB reserve is calculated by applying a benefit ratio, equal to the present value of total expected GMDB claims divided by the present value of total expected contract assessments, to cumulative contract assessments. This amount is then adjusted by the amount of cumulative GMDB claims paid and accrued interest. Assumptions used in the calculation of the GMDB reserve were as follows: mean investment performance of 5.87% , age-based mortality from the National Association of Insurance Commissioners 1994 Variable Annuity MGDB Mortality Table for company experience, lapse rates ranging from 2.2% - 33% (depending on product type and duration), and an average discount rate of 6.0% . Changes in the GMDB reserve are included in benefits and settlement expenses in the accompanying consolidated statements of income. The VA separate account balances subject to GMDB were $12.2 billion as of December 31, 2015 (Successor Company). The total GMDB amount payable based on VA account balances as of December 31, 2015 (Successor Company), was $283.5 million (including $266.9 million in the Annuities segment and $16.6 million in the Acquisitions segment) with a GMDB reserve of $33.1 million and $0.3 million in the Annuities and Acquisitions segment, respectively. The average attained age of contract holders as of December 31, 2015 (Successor Company) for the Company was 69 . These amounts exclude certain VA business which has been 100% reinsured to Commonwealth Annuity and Life Insurance Company (formerly known as Allmerica Financial Life Insurance and Annuity Company) ("CALIC"), under a Modco agreement. The guaranteed amount payable associated with the annuities reinsured to CALIC was $12.8 million and is included in the Acquisitions segment. The average attained age of contract holders as of December 31, 2015 , was 66 years . Activity relating to GMDB reserves (excluding those 100% reinsured under the Modco agreement) is as follows: Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Beginning balance $ 29,010 $ 26,251 $ 16,284 $ 19,606 Incurred guarantee benefits 10,175 3,073 12,091 (260 ) Less: Paid guarantee benefits 2,758 449 2,124 3,062 Ending balance $ 36,427 $ 28,875 $ 26,251 $ 16,284 Account balances of variable annuities with guarantees invested in VA separate accounts are as follows: Successor Company Predecessor Company As of As of December 31, 2015 December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Equity mutual funds $ 5,476,366 $ 7,834,480 Fixed income mutual funds 7,184,528 5,137,312 Total $ 12,660,894 $ 12,971,792 Certain of the Company's fixed annuities and universal life products have a sales inducement in the form of a retroactive interest credit ("RIC"). In addition, certain annuity contracts provide a sales inducement in the form of a bonus interest credit. The Company maintains a reserve for all interest credits earned to date. The Company defers the expense associated with the RIC and bonus interest credits each period and amortizes these costs in a manner similar to that used for DAC. Activity in the Company's deferred sales inducement asset was as follows: Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Deferred asset, beginning of period $ — $ 155,150 $ 146,651 $ 143,949 Amounts deferred 14,557 82 18,302 15,274 Amortization (2,801 ) (1,139 ) (9,803 ) (12,572 ) Deferred asset, end of period $ 11,756 $ 154,093 $ 155,150 $ 146,651 |
REINSURANCE
REINSURANCE | 12 Months Ended |
Dec. 31, 2015 | |
Reinsurance Disclosures [Abstract] | |
REINSURANCE | RECENTLY ANNOUNCED REINSURANCE AND FINANCING TRANSACTIONS On January 15, 2016, PLICO completed the transaction contemplated by the Master Agreement, dated September 30, 2015 (the “Master Agreement”), with Genworth Life and Annuity Insurance Company (“GLAIC”). Pursuant to the Master Agreement, on January 15, 2016, PLICO entered into a reinsurance agreement (the “Reinsurance Agreement”) under the terms of which PLICO coinsures certain term life insurance business of GLAIC (the “GLAIC Block”). In connection with the reinsurance transaction, on January 15, 2016, Golden Gate Captive Insurance Company (“Golden Gate”), a wholly owned subsidiary of PLICO, and Steel City, LLC (“Steel City”), a newly formed wholly owned subsidiary of the Company, entered into an 18 -year transaction to finance $2.188 billion of “XXX” reserves related to the acquired GLAIC Block and the other term life insurance business reinsured to Golden Gate by PLICO and West Coast Life Insurance Company ("WCL"), a direct wholly owned subsidiary of PLICO. Steel City issued notes with an aggregate initial principal amount of $2.188 billion to Golden Gate in exchange for a surplus note issued by Golden Gate with an initial principal amount of $2.188 billion . Through the structure, Hannover Life Reassurance Company of America (Bermuda) Ltd., The Canada Life Assurance Company (Barbados Branch) and Nomura Americas Re Ltd. (collectively, the “Risk-Takers”) provide credit enhancement to the Steel City notes for the 18 -year term in exchange for credit enhancement fees. The transaction is “non-recourse” to PLICO, WCL and the Company, meaning that none of these companies are liable to reimburse the Risk-Takers for any credit enhancement payments required to be made. In connection with the transaction, the Company has entered into certain support agreements under which it guarantees or otherwise supports certain obligations of Golden Gate or Steel City, including a guarantee of the fees to the Risk-Takers. The estimated average annual expense of the credit enhancement under generally accepted accounting principles is approximately $3.1 million , after-tax. As a result of the financing transaction described above, the $800 million of Golden Gate Series A Surplus Notes held by the Company were contributed to PLICO and then subsequently contributed to Golden Gate, which resulted in the extinguishment of these notes. Also on January 15, 2016, Golden Gate paid an extraordinary dividend of $300 million to PLICO as approved by the Vermont Department of Financial Regulation. REINSURANCE The Company reinsures certain of its risks with (cedes), and assumes risks from, other insurers under yearly renewable term, coinsurance, and modified coinsurance agreements. Under yearly renewable term agreements, the Company reinsures only the mortality risk, while under coinsurance the Company reinsures a proportionate share of all risks arising under the reinsured policy. Under coinsurance, the reinsurer receives a proportionate share of the premiums less commissions and is liable for a corresponding share of all benefit payments. Modified coinsurance is accounted for in a manner similar to coinsurance except that the liability for future policy benefits is held by the ceding company, and settlements are made on a net basis between the companies. Reinsurance ceded arrangements do not discharge the Company as the primary insurer. Ceded balances would represent a liability of the Company in the event the reinsurers were unable to meet their obligations to us under the terms of the reinsurance agreements. The Company monitors the concentration of credit risk the Company has with any reinsurer, as well as the financial condition of its reinsurers. As of December 31, 2015 (Successor Company), the Company had reinsured approximately 48% of the face value of its life insurance in-force. The Company has reinsured approximately 20% of the face value of its life insurance in-force with the following three reinsurers: • Security Life of Denver Insurance Co. (currently administered by Hanover Re) • Swiss Re Life & Health America Inc. • The Lincoln National Life Insurance Co. (currently administered by Swiss Re Life & Health America Inc.) The Company has not experienced any credit losses for the years ended December 31, 2015 (Successor Company), December 31, 2014 (Predecessor Company), or December 31, 2013 (Predecessor Company) related to these reinsurers. The Company has set limits on the amount of insurance retained on the life of any one person. In 2005, the Company increased its retention for certain newly issued traditional life products from $500,000 to $1,000,000 on any one life. During 2008, the Company increased its retention limit to $2,000,000 on certain of its traditional and universal life products. Reinsurance premiums, commissions, expense reimbursements, benefits, and reserves related to reinsured long-duration contracts are accounted for over the life of the underlying reinsured contracts using assumptions consistent with those used to account for the underlying contracts. The cost of reinsurance related to short-duration contracts is accounted for over the reinsurance contract period. Amounts recoverable from reinsurers, for both short-and long-duration reinsurance arrangements, are estimated in a manner consistent with the claim liabilities and policy benefits associated with reinsured policies. The following table presents the net life insurance in-force: Successor Company Predecessor Company As of December 31, As of December 31, 2015 2014 2013 (Dollars In Millions) (Dollars In Millions) Direct life insurance in-force $ 727,705 $ 721,036 $ 726,697 Amounts assumed from other companies 39,547 43,237 46,752 Amounts ceded to other companies (368,142 ) (388,890 ) (416,809 ) Net life insurance in-force $ 399,110 $ 375,383 $ 356,640 Percentage of amount assumed to net 10 % 12 % 13 % The following table reflects the effect of reinsurance on life, accident/health, and property and liability insurance premiums written and earned: Gross Amount Ceded to Other Companies Assumed from Other Companies Net Amount Percentage of Amount Assumed to Net (Dollars In Thousands) Successor Company February 1, 2015 to December 31, 2015 Premiums and policy fees: Life insurance $ 2,360,643 $ (983,143 ) $ 308,280 $ 1,685,780 (1) 18.3 % Accident/health insurance 70,243 (36,871 ) 18,252 51,624 35.4 Property and liability insurance 243,728 (134,964 ) 6,904 115,668 6.0 Total $ 2,674,614 $ (1,154,978 ) $ 333,436 $ 1,853,072 Gross Amount Ceded to Assumed Net Percentage of (Dollars In Thousands) Predecessor Company January 1, 2015 to January 31, 2015 Premiums and policy fees: Life insurance $ 204,185 $ (74,539 ) $ 28,601 $ 158,247 (1) 18.1 % Accident/health insurance 6,846 (4,621 ) 1,809 4,034 44.8 Property and liability insurance 19,759 (10,796 ) 666 9,629 6.9 Total $ 230,790 $ (89,956 ) $ 31,076 $ 171,910 For The Year Ended December 31, 2014: Premiums and policy fees: Life insurance $ 2,603,956 $ (1,205,528 ) $ 349,934 $ 1,748,362 (1) 20.0 % Accident/health insurance 81,037 (42,741 ) 20,804 59,100 35.2 Property and liability insurance 233,362 (125,328 ) 8,675 116,709 7.4 Total $ 2,918,355 $ (1,373,597 ) $ 379,413 $ 1,924,171 For The Year Ended December 31, 2013: Premiums and policy fees: Life insurance $ 2,371,872 $ (1,247,657 ) $ 306,920 $ 1,431,135 (1) 21.5 % Accident/health insurance 45,263 (20,011 ) 24,291 49,543 49.0 Property and liability insurance 225,327 (109,527 ) 7,978 123,778 6.5 Total $ 2,642,462 $ (1,377,195 ) $ 339,189 $ 1,604,456 (1) Includes annuity policy fees of $152.8 million , $13.9 million , $167.1 million , and $140.7 million for the periods of February 1, 2015 to December 31, 2015 (Successor Company) and January 1, 2015 to January 31, 2015 (Predecessor Company) and for the years ended December 31, 2014 (Predecessor Company), and December 31, 2013 (Predecessor Company), respectively. As of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), policy and claim reserves relating to insurance ceded of $5.5 billion and $6.1 billion , respectively, are included in reinsurance receivables. Should any of the reinsurers be unable to meet its obligation at the time of the claim, the Company would be obligated to pay such claims. As of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), the Company had paid $77.9 million and $120.5 million , respectively, of ceded benefits which are recoverable from reinsurers. In addition, as of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), the Company had receivables of $64.9 million and $65.8 million , respectively, related to insurance assumed. The Company's third party reinsurance receivables amounted to $5.5 billion and $6.1 billion as of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), respectively. These amounts include ceded reserve balances and ceded benefit payments. The ceded benefit payments are recoverable from reinsurers. The following table sets forth the receivables attributable to our more significant reinsurance partners: Successor Company Predecessor Company As of As of December 31, 2015 December 31, 2014 Reinsurance Receivable A.M. Best Rating Reinsurance Receivable A.M. Best Rating (Dollars In Millions) (Dollars In Millions) Security Life of Denver Insurance Company $ 800.6 A $ 842.1 A Swiss Re Life & Health America, Inc. 719.2 A+ 820.9 A+ Lincoln National Life Insurance Co. 546.0 A+ 556.3 A+ Transamerica Life Insurance Co. 396.6 A+ 497.7 A+ RGA Reinsurance Company 303.5 A+ 412.4 A+ SCOR Global Life USA Reinsurance Company 320.4 A 411.8 A American United Life Insurance Company 314.2 A+ 336.1 A+ Scottish Re (U.S.) Inc. 268.6 NR 298.0 NR Centre Reinsurance (Bermuda) Ltd 247.6 NR 260.9 NR Employers Reassurance Corporation 224.4 A- 254.3 A– The Company's reinsurance contracts typically do not have a fixed term. In general, the reinsurers' ability to terminate coverage for existing cessions is limited to such circumstances as material breach of contract or non-payment of premiums by the ceding company. The reinsurance contracts generally contain provisions intended to provide the ceding company with the ability to cede future business on a basis consistent with historical terms. However, either party may terminate any of the contracts with respect to future business upon appropriate notice to the other party. Generally, the reinsurance contracts do not limit the overall amount of the loss that can be incurred by the reinsurer. The amount of liabilities ceded under contracts that provide for the payment of experience refunds is immaterial. |
DEBT AND OTHER OBLIGATIONS
DEBT AND OTHER OBLIGATIONS | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
DEBT AND OTHER OBLIGATIONS | DEBT AND OTHER OBLIGATIONS Debt and Subordinated Debt Securities In conjunction with the Merger and in accordance with ASC Topic 805, the Company adjusted the carrying value of debt to fair value as of the date of the Merger, February 1, 2015. This resulted in the Company establishing premiums and discounts on its outstanding debt, subordinated debentures and non-recourse funding obligations. The carrying value of the Company’s revolving line of credit approximates fair value due to the nature of the borrowings and the fact the Company pays a variable rate of interest that reflects current market conditions. The fair value of the Company’s senior notes, subordinated debt, non-recourse funding obligations associated with Golden Gate II Captive Insurance Company and MONY Life Insurance Company, were determined using market prices as of February 1, 2015. The fair value of the Golden Gate V non-recourse funding obligation was determined using a discounted cash flow model with inputs derived from comparable financial instruments. The premiums and discounts established as of February 1, 2015 are amortized over the expected life of the instruments using the effective interest method. The amortization of premiums and discounts are recorded as a component of interest expense and are recorded in “Other operating expenses” on the Company’s Consolidated Statements of Income. Debt and subordinated debt securities are summarized as follows: Successor Company Predecessor Company As of As of December 31, 2015 December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Debt (year of issue): Revolving Line Of Credit $ 485,000 $ 450,000 6.40% Senior Notes (2007), due 2018 162,671 150,000 7.375% Senior Notes (2009), due 2019 473,127 400,000 8.45% Senior Notes (2009), due 2039 468,008 300,000 $ 1,588,806 $ 1,300,000 Subordinated debt securities (year of issue): 6.125% Subordinated Debentures (2004), due 2034, callable 2009 $ — $ 103,093 6.25% Subordinated Debentures (2012) due 2042, callable 2017 295,833 287,500 6.00% Subordinated Debentures (2012) due 2042, callable 2017 152,930 150,000 $ 448,763 $ 540,593 The Company's future maturities of debt, excluding notes payable to banks and subordinated debt securities, are $162.7 million in 2018, $473.1 million in 2019, and $468.0 million thereafter. During the period of February 1, 2015 to December 31, 2015 (Successor Company), the Company called and redeemed the entire $103.1 million of outstanding principal amount of the Company's 6.125% Subordinated Debentures due 2034. During 2014 (Predecessor Company), the Company announced that it had issued notice to redeem the entire $100.0 million outstanding principal amount of the Company's 8.00% Senior Notes issued on October 9, 2009. The payment in respect of the redemption of the Senior Notes was made on October 15, 2014. In conjunction with this redemption, the Company wrote off $2.4 million of deferred issue costs. During 2014 (Predecessor Company), $150.0 million of the Company's Senior Notes matured and were paid in full, along with applicable accrued interest. Under a revolving line of credit arrangement that was in effect until February 2, 2015 (the "Credit Facility"), the Company had the ability to borrow on an unsecured basis up to an aggregate principal amount of $750 million . The Company had the right in certain circumstances to request that the commitment under the Credit Facility be increased up to a maximum principal amount of $1.0 billion . Balances outstanding under the Credit Facility accrued interest at a rate equal to, at the option of the Borrowers, (i) LIBOR plus a spread based on the ratings of the Company's senior unsecured long-term debt ("Senior Debt"), or (ii) the sum of (A) a rate equal to the highest of (x) the Administrative Agent's prime rate , (y) 0.50% above the Federal Funds rate , or (z) the one-month LIBOR plus 1.00% and (B) a spread based on the ratings of our Senior Debt. The Credit Facility also provided for a facility fee at a rate, 0.175% , that could vary with the ratings of the Company's Senior Debt and that was calculated on the aggregate amount of commitments under the Credit Facility, whether used or unused. The Credit Facility provided that the Company was liable for the full amount of any obligations for borrowings or letters of credit, including those of PLICO, under the Credit Facility. The maturity date of the Credit Facility was July 17, 2017. The Company was not aware of any non-compliance with the financial debt covenants of the Credit Facility as of December 31, 2014 (Predecessor Company). There was an outstanding balance of $450.0 million bearing interest at a rate of LIBOR plus 1.20% under the Credit Facility as of December 31, 2014 (Predecessor Company). As of December 31, 2014 (Predecessor Company), PLICO had used $55.0 million of borrowing capacity by executing a Letter of Credit under the Credit Facility for the benefit of an affiliated captive reinsurance subsidiary of the Company. This Letter of Credit had not been drawn upon as of December 31, 2014 (Predecessor Company). On February 2, 2015, the Company amended and restated the Credit Facility (the "2015 Credit Facility"). Under the 2015 Credit Facility, the Company has the ability to borrow on an unsecured basis up to an aggregate principal amount of $1.0 billion . The Company has the right in certain circumstances to request that the commitment under the 2015 Credit Facility be increased up to a maximum principal amount of $1.25 billion . Balances outstanding under the 2015 Credit Facility accrue interest at a rate equal to, at the option of the Borrowers, (i) LIBOR plus a spread based on the ratings of the Company's Senior Debt, or (ii) the sum of (A) a rate equal to the highest of (x) the Administrative Agent's prime rate , (y) 0.50% above the Federal Funds rate, or (z) the one-month LIBOR plus 1.00% and (B) a spread based on the ratings of our Senior Debt. The 2015 Credit Facility also provided for a facility fee at a rate that varies with the ratings of the Company's Senior Debt and that is calculated on the aggregate amount of commitments under the 2015 Credit Facility, whether used or unused. The initial facility fee rate was 0.15% on February 2, 2015, and was adjusted to 0.125% upon our subsequent ratings upgrade on February 2, 2015. The 2015 Credit Facility provides that the Company is liable for the full amount of any obligations for borrowings or letters of credit, including those of PLICO, under the 2015 Credit Facility. The maturity date of the 2015 Credit Facility is February 2, 2020. The Company is not aware of any non-compliance with the financial debt covenants of the Credit Facility as of February 2, 2015 or the 2015 Credit Facility as of December 31, 2015 (Successor Company). There was an outstanding balance of $485.0 million bearing interest at a rate of LIBOR plus 1.00% as of December 31, 2015 (Successor Company). As of December 31, 2015 (Successor Company), the $55.0 million Letter of Credit executed by PLICO was no longer issued and outstanding. The following is a summary of the Company's estimated debt covenant calculations as of December 31, 2015 (Successor Company): Requirement Actual Results Consolidated net worth margin greater than or equal to 0 greater than $1 billion Debt to total capital ratio* less than 40% less than 21% Total adjusted capital margin greater than or equal to 0 greater than $2.5 billion Interest cash inflow available compared to adjusted consolidated interest expense greater than 2.0 to 1 greater than 22.5 to 1 * Excludes $700 million of outstanding senior notes issued in 2009 In December 2007, the Company issued a new series of debt securities of $150.0 million of 6.40% Senior Notes due 2018 (the "Senior Notes"), from which net proceeds of approximately $148.7 million were received. Under the terms of the Senior Notes, interest on the Senior Notes is payable semi-annually in arrears on January 15 and July 15. The maturity date is January 15, 2018. On October 9, 2009, the Company closed on offerings of $400 million of its 7.375% Senior Notes due in 2019, $100 million of its 8.00% Senior Notes due in 2024, and $300 million of its 8.45% Senior Notes due in 2039, for an aggregate principal amount of $800 million , of which $700 million were outstanding as of December 31, 2015 (Successor Company). These senior notes were offered and sold pursuant to the Company's shelf registration statement on Form S-3. During 2012, the Company issued $287.5 million of its 6.25% Subordinated Debentures due in 2042. These Subordinated Debentures were offered and sold pursuant to the Company's shelf registration statement on Form S-3. The Company used the net proceeds from the offering to call $103.1 million of Subordinated Debentures due 2031, $118.6 million of Subordinated Debentures due in 2032 and $75.0 million of Capital Securities due in 2066 at par value. During 2012, the Company issued $150.0 million of its Subordinated Debentures due in 2042. These Subordinated Debentures were offered and sold pursuant to the Company's shelf registration statement on Form S-3. The Company used the net proceeds from the offering to call $125.0 million of Capital Securities due in 2066 at par value and the remaining for general working capital purposes. Non-Recourse Funding Obligations Golden Gate Captive Insurance Company Golden Gate Captive Insurance Company ("Golden Gate"), a Vermont special purpose financial insurance company and wholly owned subsidiary of PLICO, had three series of non-recourse funding obligation with a total outstanding balance of $800 million as of December 31, 2015 (Successor Company). As of December 31, 2015 the Company held the entire outstanding balance of non-recourse funding obligations and were eliminated in consolidation. As of December 31, 2015 , the Series A1 non-recourse funding obligations had a balance of $400 million and accrued interest at 7.375% , the Series A2 non-recourse funding obligations had a balance of $100 million and accrued interest at 8% , and the Series A3 non-recourse funding obligations had a balance of $300 million and accrued interest at 8.45% . In connection with the reinsurance transaction pursuant to which PLICO reinsures the GLAIC Block, on January 15, 2016, Golden Gate Captive Insurance Company (“Golden Gate”), a wholly owned subsidiary of PLICO, and Steel City, LLC (“Steel City”), a newly formed wholly owned subsidiary of the Company, entered into an 18 -year transaction to finance $2.188 billion of “XXX” reserves related to the acquired GLAIC Block and the other term life insurance business reinsured to Golden Gate by PLICO and WCL, a direct wholly owned subsidiary of PLICO. Steel City issued notes with an aggregate initial principal amount of $2.188 billion to Golden Gate in exchange for a surplus note issued by Golden Gate with an initial principal amount of $2.188 billion . Through the structure, Hannover Life Reassurance Company of America (Bermuda) Ltd., The Canada Life Assurance Company (Barbados Branch) and Nomura Americas Re Ltd. (collectively, the “Risk-Takers”) provide credit enhancement to the Steel City notes for the 18 -year term in exchange for credit enhancement fees. The transaction is “non-recourse” to PLICO, WCL and the Company, meaning that none of these companies are liable to reimburse the Risk-Takers for any credit enhancement payments required to be made. In connection with the transaction, the Company has entered into certain support agreements under which it guarantees or otherwise supports certain obligations of Golden Gate or Steel City, including a guarantee of the fees to the Risk-Takers. As a result of the financing transaction described above, the $800 million of Golden Gate Series A Surplus Notes held by the Company were contributed to PLICO and then subsequently contributed to Golden Gate, which resulted in the extinguishment of these notes. Golden Gate II Captive Insurance Company Golden Gate II Captive Insurance Company ("Golden Gate II"), a South Carolina special purpose financial captive insurance company wholly owned by PLICO, had $575 million of outstanding non-recourse funding obligations as of December 31, 2015 (Successor Company). These outstanding non-recourse funding obligations were issued to special purpose trusts, which in turn issued securities to third parties. Certain of our affiliates own a portion of these securities. As of December 31, 2015 (Successor Company), securities related to $144.9 million of the outstanding balance of the non-recourse funding obligations were held by external parties and securities related to $430.1 million of the non-recourse funding obligations were held by the Company and its affiliates. The Company has entered into certain support agreements with Golden Gate II obligating the Company to make capital contributions or provide support related to certain of Golden Gate II's expenses and in certain circumstances, to collateralize certain of the Company's obligations to Golden Gate II. These support agreements provide that amounts would become payable by the Company to Golden Gate II if its annual general corporate expenses were higher than modeled amounts or if Golden Gate II's investment income on certain investments or premium income was below certain actuarially determined amounts. As of December 31, 2015 (Successor Company), no payments have been made under these agreements, however, certain support agreement obligations to Golden Gate II of approximately $1.9 million have been collateralized by the Company. Re-evaluation and, if necessary, adjustments of any support agreement collateralization amounts occur annually during the first quarter pursuant to the terms of the support agreements. Golden Gate V Vermont Captive Insurance Company On October 10, 2012, Golden Gate V, a Vermont special purpose financial insurance company, and Red Mountain, both wholly owned subsidiaries of PLICO, entered into a 20 -year transaction to finance up to $945 million of "AXXX" reserves related to a block of universal life insurance policies with secondary guarantees issued by our direct wholly owned subsidiary PLICO and indirect wholly owned subsidiary, West Coast Life Insurance Company ("WCL"). Golden Gate V issued non-recourse funding obligations to Red Mountain, and Red Mountain issued a note with an initial principal amount of $275 million , increasing to a maximum of $945 million in 2027, to Golden Gate V for deposit to a reinsurance trust supporting Golden Gate V's obligations under a reinsurance agreement with WCL, pursuant to which WCL cedes liabilities relating to the policies of WCL and retrocedes liabilities relating to the policies of PLICO. Through the structure, Hannover Life Reassurance Company of America ("Hannover Re"), the ultimate risk taker in the transaction, provides credit enhancement to the Red Mountain note for the 20 -year term in exchange for a fee. The transaction is "non-recourse" to Golden Gate V, Red Mountain, WCL, PLICO and the Company, meaning that none of these companies are liable for the reimbursement of any credit enhancement payments required to be made. As of December 31, 2015 (Successor Company), the principal balance of the Red Mountain note was $500 million . Future scheduled capital contributions to prefund credit enhancement fees amount to approximately $134.2 million and will be paid in annual installments through 2031. In connection with the transaction, the Company has entered into certain support agreements under which it guarantees or otherwise supports certain obligations of Golden Gate V or Red Mountain. The support agreements provide that amounts would become payable by the Company if Golden Gate V's annual general corporate expenses were higher than modeled amounts or in the event write-downs due to other-than-temporary impairments on assets held in certain accounts exceed defined threshold levels. Additionally, the Company has entered into separate agreements to indemnify Golden Gate V with respect to material adverse changes in non-guaranteed elements of insurance policies reinsured by Golden Gate V, and to guarantee payment of certain fee amounts in connection with the credit enhancement of the Red Mountain note. As of December 31, 2015 (Successor Company), no payments have been made under these agreements. In connection with the transaction outlined above, Golden Gate V had a $500 million outstanding non-recourse funding obligation as of December 31, 2015 (Successor Company). This non-recourse funding obligation matures in 2037, has scheduled increases in principal to a maximum of $945 million , and accrues interest at a fixed annual rate of 6.25% . Non-recourse funding obligations outstanding as of December 31, 2015 (Successor Company), on a consolidated basis, are shown in the following table: Issuer Carrying Value (1) Maturity Year Year-to-Date Weighted-Avg Interest Rate (Dollars In Thousands) Golden Gate II Captive Insurance Company $ 118,481 2052 1.32 % Golden Gate V Vermont Captive Insurance Company (2) 564,679 2037 5.12 % MONY Life Insurance Company (2) 2,524 2024 6.19 % Total $ 685,684 (1) Carrying values include premiums and discounts and do not represent unpaid principal balances. (2) Fixed rate obligations During the period of February 1, 2015 to December 31, 2015 (Successor Company) and the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the Company did not repurchase any of its outstanding non-recourse funding obligations. For the year ended December 31, 2014 (Predecessor Company), the Company and its affiliates repurchased $50.0 million of its outstanding non-recourse funding obligations, at a discount. These repurchases resulted in a $10.5 million pre-tax gain for the Company. For the year ended December 31, 2013 (Predecessor Company), the Company and its affiliates repurchased $91.1 million of its outstanding non-recourse funding obligations, at a discount. These repurchases resulted in a $20.0 million pre-tax gain for the Company. Letters of Credit Golden Gate III Vermont Captive Insurance Company Golden Gate III Vermont Captive Insurance Company ("Golden Gate III"), a Vermont special purpose financial insurance company and wholly owned subsidiary of PLICO, is party to a Reimbursement Agreement (the "Reimbursement Agreement") with UBS AG, Stamford Branch ("UBS"), as issuing lender. Under the original Reimbursement Agreement, dated April 23, 2010, UBS issued a letter of credit (the "LOC") in the initial amount of $505 million to a trust for the benefit of WCL. The Reimbursement Agreement was subsequently amended and restated effective November 21, 2011 (the "First Amended and Restated Reimbursement Agreement"), to replace the existing LOC with one or more letters of credit from UBS, and to extend the maturity date from April 1, 2018, to April 1, 2022. On August 7, 2013, Golden Gate III entered into a Second Amended and Restated Reimbursement Agreement with UBS (the "Second Amended and Restated Reimbursement Agreement"), which amended and restated the First Amended and Restated Reimbursement Agreement. Under the Second and Amended and Restated Reimbursement Agreement a new LOC in an initial amount of $710 million was issued by UBS in replacement of the existing LOC issued under the First Amended and Restated Reimbursement Agreement. The term of the LOC was extended from April 1, 2022 to October 1, 2023, subject to certain conditions being satisfied including scheduled capital contributions being made to Golden Gate III by one of its affiliates. The maximum stated amount of the LOC was increased from $610 million to $720 million in 2015 if certain conditions had been met. On June 25, 2014, Golden Gate III entered into a Third Amended and Restated Reimbursement Agreement with UBS (the "Third Amended and Restated Reimbursement Agreement"), which amended and restated the Second Amended and Restated Reimbursement Agreement. Under the Third Amended and Restated Reimbursement Agreement, a new LOC in an initial amount of $915 million was issued by UBS in replacement of the existing LOC issued under the Second Amended and Restated Reimbursement Agreement. The term of the LOC was extended from October 1, 2023 to April 1, 2025, subject to certain conditions being satisfied including scheduled capital contributions being made to Golden Gate III by one of its affiliates. The maximum stated amount of the LOC was increased from $720 million to $935 million in 2015 if certain conditions are met. The LOC is held in trust for the benefit of WCL, and supports certain obligations of Golden Gate III to WCL under an indemnity reinsurance agreement originally effective April 1, 2010, as amended and restated on November 21, 2011, and as further amended and restated on August 7, 2013 and on June 25, 2014 to include additional blocks of policies, and pursuant to which WCL cedes liabilities relating to the policies of WCL and retrocedes liabilities relating to the policies of PLICO. The LOC balance was $935 million as of December 31, 2015 (Successor Company). The term of the LOC is expected to be approximately 15 years from the original issuance date. This transaction is "non-recourse" to WCL, PLICO, and the Company, meaning that none of these companies other than Golden Gate III are liable for reimbursement on a draw of the LOC. The Company has entered into certain support agreements with Golden Gate III obligating the Company to make capital contributions or provide support related to certain of Golden Gate III's expenses and in certain circumstances, to collateralize certain of the Company's obligations to Golden Gate III. Future scheduled capital contributions amount to approximately $122.5 million and will be paid in three installments with the last payment occurring in 2021, and these contributions may be subject to potential offset against dividend payments as permitted under the terms of the Third Amended and Restated Reimbursement Agreement. The support agreements provide that amounts would become payable by the Company to Golden Gate III if its annual general corporate expenses were higher than modeled amounts or if specified catastrophic losses occur during defined time periods with respect to the policies reinsured by Golden Gate III. Pursuant to the terms of an amended and restated letter agreement with UBS, the Company has continued to guarantee the payment of fees to UBS as specified in the Third Amended and Restated Reimbursement Agreement. As of December 31, 2015 (Successor Company), no payments have been made under these agreements. Golden Gate IV Vermont Captive Insurance Company Golden Gate IV Vermont Captive Insurance Company ("Golden Gate IV"), a Vermont special purpose financial insurance company and wholly owned subsidiary of PLICO, is party to a Reimbursement Agreement with UBS AG, Stamford Branch, as issuing lender. Under the Reimbursement Agreement, dated December 10, 2010, UBS issued an LOC in the initial amount of $270 million to a trust for the benefit of WCL. The LOC balance has increased, in accordance with the terms of the Reimbursement Agreement, during 2015 and was $780 million as of December 31, 2015 (Successor Company). Subject to certain conditions, the amount of the LOC will be periodically increased up to a maximum of $790 million in 2016. The term of the LOC is expected to be 12 years from the original issuance date (stated maturity of December 30, 2022). The LOC was issued to support certain obligations of Golden Gate IV to WCL under an indemnity reinsurance agreement, pursuant to which WCL cedes liabilities relating to the policies of WCL and retrocedes liabilities relating to the policies of PLICO. This transaction is "non-recourse" to WCL, PLICO, and the Company, meaning that none of these companies other than Golden Gate IV are liable for reimbursement on a draw of the LOC. The Company has entered into certain support agreements with Golden Gate IV obligating the Company to make capital contributions or provide support related to certain of Golden Gate IV's expenses and in certain circumstances, to collateralize certain of the Company's obligations to Golden Gate IV. The support agreements provide that amounts would become payable by the Company to Golden Gate IV if its annual general corporate expenses were higher than modeled amounts or if specified catastrophic losses occur during defined time periods with respect to the policies reinsured by Golden Gate IV. The Company has also entered into a separate agreement to guarantee the payments of LOC fees under the terms of the Reimbursement Agreement. As of December 31, 2015 (Successor Company), no payments have been made under these agreements. Repurchase Program Borrowings While the Company anticipates that the cash flows of its operating subsidiaries will be sufficient to meet its investment commitments and operating cash needs in a normal credit market environment, the Company recognizes that investment commitments scheduled to be funded may, from time to time, exceed the funds then available. Therefore, the Company has established repurchase agreement programs for certain of its insurance subsidiaries to provide liquidity when needed. The Company expects that the rate received on its investments will equal or exceed its borrowing rate. Under this program, the Company may, from time to time, sell an investment security at a specific price and agree to repurchase that security at another specified price at a later date. These borrowings are for a term less than 90 days . The market value of securities to be repurchased is monitored and collateral levels are adjusted where appropriate to protect the counterparty against credit exposure. Cash received is invested in fixed maturity securities, and the agreements provided for net settlement in the event of default or on termination of the agreements. As of December 31, 2015 (Successor Company), the fair value of securities pledged under the repurchase program was $479.9 million and the repurchase obligation of $438.2 million was included in the Company's consolidated balance sheets (at an average borrowing rate of 36 basis points). During the period of February 1, 2015 to December 31, 2015 (Successor Company) and the period of January 1, 2015 to January 31, 2015 (Predecessor Company), the maximum balance outstanding at any one point in time related to these programs was $912.7 million and $175.0 million , respectively. The average daily balance was $540.3 million and $77.4 million (at an average borrowing rate of 20 and 16 basis points, respectively) during the period of February 1, 2015 to December 31, 2015 (Successor Company) and the period of January 1, 2015 to January 31, 2015 (Predecessor Company). As of December 31, 2014 (Predecessor Company), the Company had a $50.0 million outstanding balance related to such borrowings. During 2014 , the maximum balance outstanding at any one point in time related to these programs was $633.7 million . The average daily balance was $470.4 million (at an average borrowing rate of 11 basis points) during the year ended December 31, 2014 (Predecessor Company). The following table provides the fair value of collateral pledged for repurchase agreements, grouped by asset class, as of December 31, 2015 (Successor Company): Repurchase Agreements, Securities Lending Transactions, and Repurchase-to-Maturity Transactions Accounted for as Secured Borrowings Remaining Contractual Maturity of the Agreements As of December 31, 2015 (Successor Company) (Dollars In Thousands) Overnight and Greater Than Continuous Up to 30 days 30 - 90 days 90 days Total Repurchase agreements and repurchase-to-maturity transactions U.S. Treasury and agency securities $ 108,875 $ — $ — $ — $ 108,875 State and municipal securities — — — — — Other asset-backed securities — — — — — Corporate securities — — — — — Equity securities — — — — — Non-U.S. sovereign debt — — — — — Mortgage loans 371,002 — — — 371,002 Total borrowings $ 479,877 $ — $ — $ — $ 479,877 Interest Expense Interest expense on long-term debt and subordinated debt securities totaled $58.6 million , $8.9 million , $118.4 million , and $123.8 million for the periods of February 1, 2015 to December 31, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company), and for the years ended December 31, 2014 (Predecessor Company) and December 31, 2013 (Predecessor Company), respectively. The interest expense on non-recourse funding obligations and other obligations was $54.1 million , $4.9 million , $54.2 million , and $47.5 million in the period of February 1, 2015 to December 31, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company), and for the years ended December 31, 2014 (Predecessor Company) and December 31, 2013 (Predecessor Company), respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company has entered into indemnity agreements with each of its current directors other than those that are employees of Dai-ichi Life that provide, among other things and subject to certain limitations, a contractual right to indemnification to the fullest extent permissible under the law. The Company has agreements with certain of its officers providing up to $10 million in indemnification. These obligations are in addition to the customary obligation to indemnify officers and directors contained in the Company's governance documents. The Company leases administrative and marketing office space in approximately 17 cities including 24,090 square feet in Birmingham (excluding the home office building), with most leases being for periods of three to ten years . The Company had rental expense of $6.3 million , $0.6 million , $6.5 million , and $7.0 million for the period of February 1, 2015 to December 31, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company), and for the years ended December 31, 2014 and 2013 (Predecessor Company), respectively. The aggregate annualized rent was approximately $6.3 million for the period of February 1, 2015 to December 31, 2015 (Successor Company). The following is a schedule by year of future minimum rental payments required under these leases: Year Amount (Dollars In Thousands) 2016 $ 4,406 2017 4,042 2018 3,829 2019 3,644 2020 3,600 Thereafter 13,145 Additionally, the Company leases a building contiguous to its home office. The lease was renewed in December 2013 and was extended to December 2018. At the end of the lease term the Company may purchase the building for approximately $75 million . Monthly rental payments are based on the current LIBOR rate plus a spread. The following is a schedule by year of future minimum rental payments required under this lease: Year Amount (Dollars In Thousands) 2016 $ 1,385 2017 1,381 2018 76,356 As of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), the Company had outstanding mortgage loan commitments of $601.9 million at an average rate of 4.43% and $537.7 million at an average rate of 4.61% , respectively. Under insurance guaranty fund laws, in most states insurance companies doing business therein can be assessed up to prescribed limits for policyholder losses incurred by insolvent companies. In addition, from time to time, companies may be asked to contribute amounts beyond prescribed limits. Most insurance guaranty fund laws provide that an assessment may be excused or deferred if it would threaten an insurer’s own financial strength. The Company does not believe its insurance guaranty fund assessments will be materially different from amounts already provided for in the financial statements. A number of civil jury verdicts have been returned against insurers, broker dealers and other providers of financial services involving sales, refund or claims practices, alleged agent misconduct, failure to properly supervise representatives, relationships with agents or persons with whom the insurer does business, and other matters. Often these lawsuits have resulted in the award of substantial judgments that are disproportionate to the actual damages, including material amounts of punitive and non-economic compensatory damages. In some states, juries, judges, and arbitrators have substantial discretion in awarding punitive non-economic compensatory damages which creates the potential for unpredictable material adverse judgments or awards in any given lawsuit or arbitration. Arbitration awards are subject to very limited appellate review. In addition, in some class action and other lawsuits, companies have made material settlement payments. Publicly held companies in general and the financial services and insurance industries in particular are also sometimes the target of law enforcement and regulatory investigations relating to the numerous laws and regulations that govern such companies. Some companies have been the subject of law enforcement or regulatory actions or other actions resulting from such investigations. The Company, in the ordinary course of business, is involved in such matters. The Company establishes liabilities for litigation and regulatory actions when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. For matters where a loss is believed to be reasonably possible, but not probable, no liability is established. For such matters, the Company may provide an estimate of the possible loss or range of loss or a statement that such an estimate cannot be made. The Company reviews relevant information with respect to litigation and regulatory matters on a quarterly and annual basis and updates its established liabilities, disclosures and estimates of reasonably possible losses or range of loss based on such reviews. In 2012, the IRS proposed favorable and unfavorable adjustments to the Company’s 2003 through 2007 reported taxable income. The Company protested certain unfavorable adjustments and sought resolution at the IRS’ Appeals Division. In October 2015, the Appeals accepted the Company’s earlier proposed settlement offer. In September of 2015, the IRS proposed favorable and unfavorable adjustments to the Company’s 2008 through 2011 reported taxable income. The Company agreed to these adjustments. As a result, pending a routine review by Congress' Joint Committee on Taxation, the Company expected to receive an approximate $6.2 million net refund in a future period. This refund will not materially affect the Company’s effective tax rate. Through the acquisition of MONY by PLICO certain income tax credit carryforwards, which arose in MONY’s pre-acquisition tax years, transferred to the Company. This transfer was in accordance with the applicable rules of the Internal Revenue Code and the related Regulations. In spite of this transfer, AXA, the former parent of the consolidated income tax return group in which MONY was a member, retains the right to utilize these credits in the future to offset future increases in its 2010 through 2013 tax liabilities. The Company had determined that, based on all information known as of the acquisition date and through the March 31, 2014 reporting date, it was probable that a loss of the utilization of these carryforwards had been incurred. Due to indemnification received from AXA during the quarter ending June 30, 2014, the probability of loss of these carryforwards has been eliminated. Accordingly, in the table summarizing the fair value of net assets acquired from the Acquisition, the amount of the deferred tax asset from the credit carryforwards is no longer offset by a liability. Certain of the Company’s insurance subsidiaries, as well as certain other insurance companies for which the Company has coinsured blocks of life insurance and annuity policies, are under audit for compliance with the unclaimed property laws of a number of states. The audits are being conducted on behalf of the treasury departments or unclaimed property administrators in such states. The focus of the audits is on whether there have been unreported deaths, maturities, or policies that have exceeded limiting age with respect to which death benefits or other payments under life insurance or annuity policies should be treated as unclaimed property that should be escheated to the state. The Company is presently unable to estimate the reasonably possible loss or range of loss that may result from the audits due to a number of factors, including uncertainty as to the legal theory or theories that may give rise to liability, the early stages of the audits being conducted, and, with respect to one block of life insurance policies that is co-insured by a subsidiary of the Company, uncertainty as to whether the Company or other companies are responsible for the liabilities, if any, arising in connection with such policies. The Company will continue to monitor the matter for any developments that would make the loss contingency associated with the audits probable or reasonably estimable. Certain of the Company’s subsidiaries are under a targeted multi-state examination with respect to their claims paying practices and their use of the U.S. Social Security Administration’s Death Master File or similar databases (a “Death Database”) to identify unreported deaths in their life insurance policies, annuity contracts and retained asset accounts. There is no clear basis in previously existing law for requiring a life insurer to search for unreported deaths in order to determine whether a benefit is owed, and substantial legal authority exists to support the position that the prevailing industry practice was lawful. A number of life insurers, however, have entered into settlement or consent agreements with state insurance regulators under which the life insurers agreed to implement procedures for periodically comparing their life insurance and annuity contracts and retained asset accounts against a Death Database, treating confirmed deaths as giving rise to a death benefit under their policies, locating beneficiaries and paying them the benefits and interest, and escheating the benefits and interest as well as penalties to the state if the beneficiary could not be found. It has been publicly reported that the life insurers have paid administrative and/or examination fees to the insurance regulators in connection with the settlement or consent agreements. The Company believes it is reasonably possible that insurance regulators could demand from the Company administrative and/or examination fees relating to the targeted multi-state examination. Based on publicly reported payments by other life insurers, the Company estimates the range of such fees to be from $0 to $4.5 million . |
SHAREOWNERS' EQUITY
SHAREOWNERS' EQUITY | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
SHAREOWNERS' EQUITY | SHAREOWNER'S EQUITY Activity in the Company's issued and outstanding common stock is summarized as follows: Predecessor Company Issued Shares Treasury Shares Outstanding Shares Balance, December 31, 2012 88,776,960 10,639,467 78,137,493 (Reissuance of)/deposits to treasury stock — (439,953 ) 439,953 Balance, December 31, 2013 88,776,960 10,199,514 78,577,446 (Reissuance of)/deposits to treasury stock — (764,259 ) 764,259 Balance, December 31, 2014 88,776,960 9,435,255 79,341,705 On February 1, 2015, Dai-ichi Life acquired 100% of the Company's outstanding shares of common stock through the merger of DL Investment (Delaware), Inc., a wholly owned subsidiary of Dai-ichi Life, with and into the Company, with the Company continuing as the surviving entity. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION As a result of the Merger, the Company adopted a new long-term incentive program in 2015. The program was modified to reflect the fact that we no longer have a publicly traded class of stock to use in our compensation programs. Prior to that time, since 1973, the Company had stock-based incentive plans designed and established to motivate management to focus on its long-range performance through the awarding of stock-based compensation. Due to change in control provision, the awards outstanding immediately prior to the Merger were cancelled and converted into the right to receive an amount in cash. For more information refer to Note 4, Dai-ichi Merger . Performance Shares (Predecessor) The criteria for payment of the 2014 performance awards was based on the Company's average operating return on average equity ("ROE") over a three -year period. If the Company's ROE was below 10.5% , no award was earned. If the Company's ROE was at or above 12.0% , the award maximum was earned. The criteria for payment of the 2013 performance awards was based on the Company's average operating ROE over a three -year period. If the Company's ROE was below 10.0% , no award was earned. If the Company's ROE was at or above 11.5% , the award maximum was earned. Performance shares were equivalent in value to one share of our common stock times the award earned percentage payout. Performance share awards of 203,295 performance share awards were issued during the year ended December 31, 2014 (Predecessor Company). Performance share awards and the estimated fair value of the awards at grant date are as follows: Year Awarded Performance Shares Estimated Fair Value (Dollars In Thousands) 2014 203,295 $ 10,484 2013 298,500 9,328 2012 306,100 8,608 Stock Appreciation Rights (Predecessor) Stock Appreciation Rights ("SARs") were granted to certain officers of the Company to provide long-term incentive compensation based solely on the performance of the Company's common stock. The SARs were exercisable either 5 years after the date of grant or in three or four equal annual installments beginning one year after the date of grant (earlier upon the death, disability, or retirement of the officer, or in certain circumstances, of a change in control of the Company) and expire after ten years or upon termination of employment. The SARs activity as well as weighted-average base price was as follows: Weighted-Average Base Price per share No. of SARs Balance at December 31, 2012 $ 22.15 1,641,167 SARs exercised / forfeited 18.54 (336,066 ) Balance at December 31, 2013 $ 23.08 1,305,101 SARs exercised / forfeited 22.07 (1,147,473 ) Balance at December 31, 2014 $ 30.41 157,628 The outstanding SARs as of December 31, 2014 (Predecessor Company), were at the following base prices: Base Price SARs Outstanding Remaining Life in Years Currently Exercisable $41.05 10,000 1 10,000 $43.46 22,300 3 22,300 $38.59 52,000 4 52,000 $3.50 46,110 5 46,110 $18.36 27,218 6 27,218 There were no SARs issued for the years ended December 31, 2014 (Predecessor Company) and December 31, 2013 (Predecessor Company). These fair values were estimated using a Black-Scholes option pricing model. The assumptions used in this pricing model varied depending on the vesting period of awards. Assumptions used in the model for the 2010 SARs granted (the simplified method under the ASC Compensation-Stock Compensation Topic was used for the 2010 awards) were as follows: an expected volatility of 69.4% , a risk-free interest rate of 2.6% , a dividend rate of 2.4% , a zero percent forfeiture rate, and expected exercise date of 2016. Due to the change in control provision, all SARs outstanding immediately prior to the Merger were cancelled and converted into the right to receive an amount in cash. Restricted Stock Units (Predecessor) Restricted stock units were awarded to participants and include certain restrictions relating to vesting periods. The Company issued 98,700 restricted stock units for the year ended December 31, 2014 (Predecessor Company) and 166,850 restricted stock units for the year ended December 31, 2013 (Predecessor Company). These awards had a total fair value at grant date of $5.1 million and $5.5 million , respectively. Approximately half of these restricted stock units were to vest after three years from grant date and the remainder vest after four years. The Company recognizes all stock-based compensation expense over the related service period of the award, or earlier for retirement eligible employees. The expense recorded by the Company for its stock-based compensation plans was $25.9 million and $15.7 million in 2014 and 2013 , respectively. The Company's obligations of its stock-based compensation plans that are expected to be settled in shares of the Company's common stock are reported as a component of shareowner's equity, net of deferred taxes. As of December 31, 2014 (Predecessor Company), the total compensation cost related to non-vested stock-based compensation not yet recognized was $27.0 million . Due to the Merger, the unrecognized stock compensation expense was accelerated as of the date of the merger due to a change in control provision. The following table provides information as of December 31, 2014 (Predecessor Company), regarding equity compensation plans under which the Company's common stock was authorized for issuance: Securities Authorized for Issuance under Equity Compensation Plans Plan category Number of securities to be issued upon exercise of outstanding options, warrants and rights as of December 31, 2014 (a) Weighted-average exercise price of outstanding options, warrants and rights as of December 31, 2014 (b) Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) as of of December 31, 2014 (c) Equity compensation plans approved by shareowners 1,960,959 (1) $ 22.07 (3) 4,092,546 (4) Equity compensation plans not approved by shareowners 193,720 (2) Not applicable Not applicable (5) Total 2,154,679 $ 22.07 4,092,546 (1) Includes the following number of shares: (a) 102,458 shares issuable with respect to outstanding SARs (assuming for this purpose that one share of common stock will be payable with respect to each outstanding SAR); (b) 907,487 shares issuable with respect to outstanding performance share awards (assuming for this purpose that the awards are payable based on estimated performance under the awards as of September 30, 2014); (c) 313,199 shares issuable with respect to outstanding restricted stock units (assuming for this purpose that shares will be payable with respect to all outstanding restricted stock units); (d) 475,386 shares issuable with respect to stock equivalents representing previously earned awards under the LTIP that the recipient deferred under the Company's Deferred Compensation Plan for Officers; and (e) 162,429 shares issuable with respect to stock equivalents representing previous awards under the Company's Stock Plan for Non-Employee Directors that the recipient deferred under our Deferred Compensation Plan for Directors Who Are Not Employees of the Company. (2) Includes the following number of shares of common stock: (a) 152,709 shares issuable with respect to stock equivalents representing (i) stock awards to the Company's Directors before June 1, 2004 that the recipient deferred pursuant to the Company's Deferred Compensation Plan for Directors Who Are Not Employees of the Company and (ii) cash retainers and fees that the Company's Directors deferred under the Company's Deferred Compensation Plan for Directors Who Are Not Employees of the Company, and (b) 41,011 shares issuable with respect to stock equivalents pursuant to the Company's Deferred Compensation Plan for Officers. (3) Based on exercise prices of outstanding SARs. (4) Represents shares of common stock available for future issuance under the LTIP and the Company's Stock Plan for Non-Employee Directors. (5) The plans listed in Note (2) do not currently have limits on the number of shares of common stock issuable under such plans. The total number of shares of common stock that may be issuable under such plans will depend upon, among other factors, the deferral elections made by the plans' participants. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2015 | |
Pension and Other Postretirement Benefit Expense [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Due to the Dai-ichi acquisition, the Company remeasured all materially impacted benefit plans as of January 31, 2015. Financial remeasurement was performed for the defined benefit pension plan, the unfunded excess benefit plan, and the postretirement life insurance plan as of January 31, 2015. The January results for the retiree life plan were not material, and therefore, remeasurement was not deemed necessary for this plan. The Company has disclosed relevant financial information related to the January 31, 2015 remeasurement. Beginning with the December 31, 2015 measurement, the Company changed its method used to estimate the service and interest cost components of net periodic benefit cost for pension and other postretirement benefits by applying a spot rate approach. Historically, the Company utilized a single weighted average discount rate derived from a selected yield curve used to measure the benefit obligation as of the measurement date. Under the new spot rate approach, the actual calculation of service and interest cost will reflect an array of spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. The Company made this change to provide a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows to the corresponding spot rates from the selected yield curve. This new approach does not affect the measurement of the total benefit obligation. Defined Benefit Pension Plan and Unfunded Excess Benefit Plan The Company sponsors a defined benefit pension plan covering substantially all of its employees. Benefits are based on years of service and the employee's compensation. Effective January 1, 2008, the Company made the following changes to its defined benefit pension plan. These changes have been reflected in the computations within this note. • Employees hired after December 31, 2007, will receive benefits under a cash balance plan. • Employees active on December 31, 2007, with age plus vesting service less than 55 years will receive a final pay-based pension benefit for service through December 31, 2007, plus a cash balance benefit for service after December 31, 2007. • Employees active on December 31, 2007, with age plus vesting service equaling or exceeding 55 years , will receive a final pay-based pension benefit for service both before and after December 31, 2007, with a modest reduction in the formula for benefits earned after December 31, 2007. • All participants terminating employment on or after December of 2007 may elect to receive a lump sum benefit. The Company's funding policy is to contribute amounts to the plan sufficient to meet the minimum funding requirements of the Employee Retirement Income Security Act ("ERISA") plus such additional amounts as the Company may determine to be appropriate from time to time. Contributions are intended to provide not only for benefits attributed to service to date, but also for those expected to be earned in the future. Under the Pension Protection Act of 2006 ("PPA"), a plan could be subject to certain benefit restrictions if the plan's adjusted funding target attainment percentage ("AFTAP") drops below 80% . Therefore, the Company may make additional contributions in future periods to maintain an AFTAP of at least 80% . In general, the AFTAP is a measure of how well the plan is funded and is obtained by dividing the plan's assets by the plan's funding liabilities. AFTAP is based on participant data, plan provisions, plan methods and assumptions, funding credit balances, and plan assets as of the plan valuation date. Some of the assumptions and methods used to determine the plan's AFTAP may be different from the assumptions and methods used to measure the plan's funded status on a GAAP basis. In July of 2012, the Moving Ahead for Progress in the 21 st Century Act ("MAP-21"), which includes pension funding stabilization provisions, was signed into law. These provisions establish an interest rate corridor which is designed to stabilize the segment rates used to determine funding requirements from the effects of interest rate volatility. In August of 2014, the Highway and Transportation Funding Act of 2014 ("HATFA") was signed into law. HAFTA extends the funding relief provided by MAP-21 by delaying the interest rate corridor expansion. The funding stabilization provisions of MAP-21 and HATFA reduced the Company's minimum required defined benefit plan contributions for the 2013 and 2014 plan years. Since the funding stabilization provisions of MAP-21 and HATFA do not apply for Pension Benefit Guaranty Corporation ("PBGC") reporting purposes, the Company may also make additional contributions in future periods to avoid certain PBGC reporting triggers. During January of 2015 (Predecessor Company), the Company made a $2.2 million contribution to the defined benefit pension plan for the 2014 plan year. During the period of February 1, 2015 to December 31, 2015 (Successor Company), the Company contributed $1.4 million to its defined benefit pension plan for the 2014 plan year. The Company has not yet determined what amount it will fund for 2016, but estimates that the amount will be between $1 million and $10 million . The Company also sponsors an unfunded excess benefit plan, which is a nonqualified plan that provides defined pension benefits in excess of limits imposed on qualified plans by federal tax law. The following table presents the benefit obligation, fair value of plan assets, funded status, and amounts not yet recognized as components of net periodic pension costs for the Company's defined benefit pension plan and unfunded excess benefit plan as of December 31, 2015 (Successor Company), January 31, 2015 (Predecessor Company), and December 31, 2014 (Predecessor Company): Successor Company Predecessor Company December 31, 2015 January 31, 2015 December 31, 2014 Defined Benefit Pension Plan Unfunded Excess Benefit Plan Defined Benefit Pension Plan Unfunded Excess Benefit Plan Defined Benefit Pension Plan Unfunded Excess Benefit Plan (Dollars In Thousands) (Dollars In Thousands) Accumulated benefit obligation, end of year $ 250,133 $ 54,196 $ 262,290 $ 49,251 $ 249,453 $ 47,368 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 281,099 $ 51,243 $ 267,331 $ 49,575 $ 219,152 $ 39,679 Service cost 11,220 1,229 974 95 9,411 954 Interest cost 9,072 1,499 1,002 140 10,493 1,696 Amendments — — — — — — Actuarial loss/(gain) (19,235 ) 4,484 12,384 1,555 38,110 9,153 Benefits paid (13,935 ) (1,470 ) (592 ) (122 ) (9,835 ) (1,907 ) Projected benefit obligation at end of year 268,221 56,985 281,099 51,243 267,331 49,575 Change in plan assets: Fair value of plan assets at beginning of year 201,820 — 203,772 — 180,173 — Actual return on plan assets 6,751 — (3,525 ) — 17,921 — Employer contributions (1) 1,406 1,470 2,165 122 15,513 1,907 Benefits paid (13,935 ) (1,470 ) (592 ) (122 ) (9,835 ) (1,907 ) Fair value of plan assets at end of year 196,042 — 201,820 — 203,772 — After reflecting FASB guidance: Funded status (72,179 ) (56,985 ) (79,279 ) (51,243 ) (63,559 ) (49,575 ) Amounts recognized in the balance sheet: Other liabilities (72,179 ) (56,985 ) (79,279 ) (51,243 ) (63,559 ) (49,575 ) Amounts recognized in accumulated other comprehensive income: Net actuarial loss/(gain) (12,772 ) 4,484 96,965 22,401 80,430 20,983 Prior service cost/(credit) — — (1,001 ) 23 (1,033 ) 24 Total amounts recognized in AOCI $ (12,772 ) $ 4,484 $ 95,964 $ 22,424 $ 79,397 $ 21,007 (1) Employer contributions disclosed are based on the Company's fiscal filing year As a result of the Merger on February 1, 2015, all unrecognized prior service costs or credits, actuarial gains or losses, and any remaining transition assets or obligations were not carried forward. Therefore, the amounts presented in the "Amounts recognized in accumulated other comprehensive income" in the chart above were set to zero on the Merger date. Weighted-average assumptions used to determine benefit obligations as of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company) are as follows: Successor Company Predecessor Company As of December 31, 2015 As of December 31, 2014 Defined Benefit Unfunded Excess Defined Benefit Unfunded Excess Discount rate 4.29 % 3.63 % 3.95 % 3.65 % Rate of compensation increase 4.75% prior to age 40/ 3.75% for age 40 and above 4.75% prior to age 40/ 3.75 for age 40 and above 4.75% prior to age 40/ 3.75% for age 40 and above 4.75% prior to age 40/ 3.75% for age 40 and above The benefit obligations as of January 31 were determined based on the assumptions used in the 2014 year end disclosures with the following exception: Predecessor Company Defined Benefit Unfunded Excess Discount rate 3.55 % 3.26 % Weighted-average assumptions used to determine the net periodic benefit cost for the period of February 1, 2015 to December 31, 2015 (Successor Company) and for the years ended December 31, 2014 and 2013 (Predecessor Company) are as follows: Successor Company Predecessor Company For The Year Ended December 31, For The Year Ended December 31, 2015 2015 2014 2013 2014 2013 Defined Benefit Unfunded Excess Benefit Plan Defined Benefit Unfunded Excess Discount rate 3.95 % 3.65 % 4.86 % 4.07 % 4.30 % 3.37 % Rate of compensation increase 4.75% prior to age 40/ 3.75% for age 40 and above 4.75% prior to age 40/ 3.75% for age 40 and above 3.0 3.0 4.0 4.0 Expected long-term return on plan assets 7.5 N/A 7.5 7.5 N/A N/A The assumed discount rates used to determine the benefit obligations were based on an analysis of future benefits expected to be paid under the plans. The assumed discount rate reflects the interest rate at which an amount that is invested in a portfolio of high-quality debt instruments on the measurement date would provide the future cash flows necessary to pay benefits when they come due. To determine an appropriate long-term rate of return assumption, the Company obtained 25 year annualized returns for each of the represented asset classes. In addition, the Company received evaluations of market performance based on the Company's asset allocation as provided by external consultants. A combination of these statistical analytics provided results that the Company utilized to determine an appropriate long-term rate of return assumption. Components of the net periodic benefit cost for the period of February 1, 2015 to December 31, 2015 (Successor Company), for the period of January 1, 2015 to January 31, 2015 (Predecessor Company), and for the years ended December 31, 2014 and 2013 (Predecessor Company) are as follows: Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, 2014 2013 2014 2013 Defined Benefit Pension Plan Unfunded Excess Benefit Plan Defined Benefit Pension Plan Unfunded Excess Benefit Plan Defined Benefit Pension Plan Unfunded Excess Benefit Plan (Dollars In Thousands) (Dollars In Thousands) Service cost—benefits earned during the period $ 11,220 $ 1,229 $ 974 $ 95 $ 9,411 $ 9,345 $ 954 $ 1,037 Interest cost on projected benefit obligation 9,072 1,499 1,002 140 10,493 8,985 1,696 1,387 Expected return on plan assets (13,214 ) — (1,293 ) — (12,166 ) (11,013 ) — — Amortization of prior service cost/(credit) — — (33 ) 1 (392 ) (392 ) 12 12 Amortization of actuarial loss/(gain) (1) — — 668 138 6,821 9,631 1,516 1,792 Preliminary net periodic benefit cost 7,078 2,728 1,318 374 14,167 16,556 4,178 4,228 Settlement/curtailment expense (2) — — — — — — — 928 Total net periodic benefit cost $ 7,078 $ 2,728 $ 1,318 $ 374 $ 14,167 $ 16,556 $ 4,178 $ 5,156 (1) 2015 average remaining service period used is 9.38 years and 7.96 years for the defined benefit pension plan and unfunded excess benefit plan, respectively. (2) The unfunded excess benefit plan triggered settlement accounting for the year ended December 31, 2014 since the total lump sum payments exceeded the settlement threshold of service cost plus interest cost. The Company will not amortize any net actuarial loss/(gain) from other comprehensive income into net periodic benefit cost during 2016 since the net actuarial loss (gain) is less than 10% of the greater of the smooth value of assets or the projected benefit obligation. Allocation of plan assets of the defined benefit pension plan by category as of December 31 are as follows: Successor Company Predecessor Company Asset Category Target Allocation for 2016 2015 2014 Cash and cash equivalents 2 % 2 % 4 % Equity securities 60 61 62 Fixed income 38 37 34 Total 100 % 100 % 100 % The Company's target asset allocation is designed to provide an acceptable level of risk and balance between equity assets and fixed income assets. The weighting towards equity securities is designed to help provide for an increased level of asset growth potential and liquidity. Prior to July 1999, upon an employee's retirement, a distribution from pension plan assets was used to purchase a single premium annuity from PLICO in the retiree's name. Therefore, amounts shown above as plan assets exclude assets relating to such retirees. Since July 1999, retiree obligations have been fulfilled from pension plan assets. The defined benefit pension plan has a target asset allocation of 60% domestic equities, 38% fixed income, and 2% cash. When calculating asset allocation, the Company includes reserves for pre-July 1999 retirees. The Company's investment policy includes various guidelines and procedures designed to ensure assets are invested in a manner necessary to meet expected future benefits earned by participants. The investment guidelines consider a broad range of economic conditions. Central to the policy are target allocation ranges (shown above) by major asset categories. The objectives of the target allocations are to maintain investment portfolios that diversify risk through prudent asset allocation parameters, achieve asset returns that meet or exceed the plans' actuarial assumptions, and achieve asset returns that are competitive with like institutions employing similar investment strategies. The plan's equity assets are in a Russell 3000 index fund that invests in a domestic equity index collective trust managed by Northern Trust Corporation and in a Spartan 500 index fund managed by Fidelity. The plan's cash is invested in a collective trust managed by Northern Trust Corporation. The plan's fixed income assets are invested in a group deposit administration annuity contract with PLICO. Plan assets of the defined benefit pension plan by category as of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), are as follows: Successor Company Predecessor Company As of December 31, 2015 As of December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Asset Category Cash and cash equivalents $ 3,121 $ 7,968 Equity securities: Collective Russell 3000 equity index fund 72,663 79,660 Fidelity Spartan 500 index fund 52,551 51,848 Fixed income 67,707 64,296 Total investments 196,042 203,772 Employer contribution receivable — 2,165 Total $ 196,042 $ 205,937 The valuation methodologies used to determine the fair values reflect market participant assumptions and are based on the application of the fair value hierarchy that prioritizes observable market inputs over unobservable inputs. The following is a description of the valuation methodologies used for assets measured at fair value. The Plan's group deposit administration annuity contract with PLICO is recorded at contract value, which, by utilizing a long-term view, the Company believes approximates fair value. Contract value represents contributions made under the contract, plus interest at the contract rate, less funds used to purchase annuities. Units in collective short-term and collective investment funds are valued at the unit value, which approximates fair value, as reported by the trustee of the collective short-term and collective investment funds on each valuation date. These methods of valuation may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation method is appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine fair value could result in a different fair value measurement at the reporting date. The following table sets forth by level, within the fair value hierarchy, the Plan's assets at fair value as of December 31, 2015 (Successor Company): Level 1 Level 2 Level 3 Total (Dollars In Thousands) Collective short-term investment fund $ 3,121 $ — $ — $ 3,121 Collective investment funds: Equity index funds 52,551 72,663 — 125,214 Group deposit administration annuity contract — — 67,707 67,707 Total investments $ 55,672 $ 72,663 $ 67,707 $ 196,042 The following table sets forth by level, within the fair value hierarchy, the Plan's assets at fair value as of December 31, 2014 (Predecessor Company): Level 1 Level 2 Level 3 Total (Dollars In Thousands) Collective short-term investment fund $ 7,968 $ — $ — $ 7,968 Collective investment funds: Equity index funds 51,848 79,660 — 131,508 Group deposit administration annuity contract — — 64,296 64,296 Total investments $ 59,816 $ 79,660 $ 64,296 $ 203,772 For the period of February 1, 2015 to December 31, 2015 (Successor Company), there were no transfers between Level 2 and Level 3. For the year ended December 31, 2014 (Predecessor Company), $4.5 million was transferred into Level 3 from Level 2. This transfer was made to maintain an acceptable asset allocation as set by the Company's investment policy. For the period of February 1, 2015 to December 31, 2015 (Successor Company) and for the year ended December 31, 2014 (Predecessor Company), there were no transfers between Level 1 and Level 2. The following table summarizes the Plan investments measured at fair value based on NAV per share as of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), respectively: Name Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period (Dollars In Thousands) Successor Company As of December 31, 2015: Collective short-term investment fund $ 3,121 Not Applicable Daily 1 day Collective Russell 3000 index fund (1) 72,663 Not Applicable Daily 1 day Fidelity Spartan 500 index fund 52,551 Not Applicable Daily 1 day Predecessor Company As of December 31, 2014: Collective short-term investment fund $ 7,968 Not Applicable Daily 1 day Collective Russell 3000 index fund (1) 79,660 Not Applicable Daily 1 day Fidelity Spartan 500 index fund 51,848 Not Applicable Daily 1 day (1) Non-lending collective trust that does not publish a daily NAV but tracks the Russell 3000 index and provides a daily NAV to the Plan. The following table presents a reconciliation of the beginning and ending balances for the fair value measurements for the period of February 1, 2105 to December 31, 2015, for the period of January 1, 2015 to January 31, 2015, and for the year ended December 31, 2014, for which the Company has used significant unobservable inputs (Level 3): Successor Company Predecessor Company December 31, 2015 January 31, 2015 December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Balance, beginning of year $ 64,581 $ 64,296 $ 56,736 Interest income 3,126 285 3,060 Transfers from collective short-term investments fund — — 4,500 Transfers to collective short-term investments fund — — — Balance, end of year $ 67,707 $ 64,581 $ 64,296 The following table represents the Plan's Level 3 financial instrument, the valuation technique used, and the significant unobservable input and the ranges of values for that input as of December 31, 2015 (Successor Company): Instrument Fair Value Principal Valuation Technique Significant Unobservable Inputs Range of Significant Input Values (Dollars In Thousands) Group deposit administration annuity contract $ 67,707 Contract Value Contract Rate 5.22% - 5.41% Investment securities are exposed to various risks, such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is at least reasonably possible that changes in risks in the near term could materially affect the amounts reported. Estimated future benefit payments under the defined benefit pension plan and unfunded excess benefit plan are as follows: Years Defined Benefit Pension Plan Unfunded Excess Benefit Plan (Dollars In Thousands) 2016 $ 16,947 $ 5,470 2017 18,019 7,682 2018 17,723 5,070 2019 18,517 9,097 2020 19,532 4,962 2021 - 2025 102,176 18,888 Other Postretirement Benefits In addition to pension benefits, the Company provides limited healthcare benefits to eligible retired employees until age 65 . This postretirement benefit is provided by an unfunded plan. As of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), the accumulated postretirement benefit obligation associated with these benefits was $0.1 million and $0.2 million , respectively. The change in the benefit obligation for the retiree medical plan is as follows: Successor Company Predecessor Company As of December 31, 2015 As of December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Change in Benefit Obligation Benefit obligation, beginning of year $ 247 $ 447 Service cost 1 2 Interest cost 2 4 Actuarial (gain)/loss (113 ) 30 Plan participant contributions 141 254 Benefits paid (141 ) (490 ) Benefit obligation, end of year $ 137 $ 247 For the retiree medical plan, the Company's discount rate assumption used to determine benefit obligation and the net periodic benefit cost as of December 31, 2015 (Successor Company), is 1.54% and 1.27% , respectively. For a closed group of retirees over age 65 , the Company provides a prescription drug benefit. As of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), the Company's liability related to this benefit was less than $0.1 million . The Company's obligation is not materially affected by a 1% change in the healthcare cost trend assumptions used in the calculation of the obligation. The Company also offers life insurance benefits for retirees from $10,000 up to a maximum of $75,000 which are provided through the payment of premiums under a group life insurance policy. This plan is partially funded at a maximum of $50,000 face amount of insurance. The accumulated postretirement benefit obligation associated with these benefits is as follows: Successor Company Predecessor Company As of December 31, 2015 As of January 31, 2015 As of December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Change in Benefit Obligation Benefit obligation, beginning of year $ 9,781 $ 9,288 $ 8,653 Service cost 138 12 97 Interest cost 336 39 416 Actuarial (gain)/loss (894 ) 511 694 Benefits paid (298 ) (69 ) (572 ) Benefit obligation, end of year $ 9,063 $ 9,781 $ 9,288 For the postretirement life insurance plan, the Company's discount rate assumption used to determine benefit obligation and the net periodic benefit cost as of December 31, 2015 (Successor Company), is 4.6% and 4.21% , respectively. The Company's discount rate assumption used to determine benefit obligation as of January 1, 2015 (Predecessor Company) is 3.79% . The Company's expected long-term rate of return assumption used to determine benefit obligation and the net periodic benefit cost as of December 31, 2015 (Successor Company), is 2.75% and 3.14% , respectively. To determine an appropriate long-term rate of return assumption, the Company utilized 25 year average and annualized return results on the Barclay's short treasury index. Investments of the Company's group life insurance plan are held by Wells Fargo Bank, N.A. Plan assets held by the Custodian are invested in a money market fund. The fair value of each major category of plan assets for the Company's postretirement life insurance plan is as follows: Successor Company Predecessor Company As of As of December 31, 2015 December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Category of Investment Money market fund $ 5,653 $ 5,925 Investments are stated at fair value and are based on the application of the fair value hierarchy that prioritizes observable market inputs over unobservable inputs. The money market funds are valued based on historical cost, which represents fair value, at year end. This method of valuation may produce a fair value calculation that may not be reflective of future fair values. Furthermore, while the Company believes its valuation method is appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine fair value could result in a different fair value measurement at the reporting date. The following table sets forth by level, within the fair value hierarchy, the Plan's assets at fair value as of December 31, 2015 (Successor Company): Level 1 Level 2 Level 3 Total (Dollars In Thousands) Money market fund $ 5,653 $ — $ — $ 5,653 The following table sets forth by level, within the fair value hierarchy, the Plan's assets at fair value as of December 31, 2014 (Predecessor Company): Level 1 Level 2 Level 3 Total (Dollars In Thousands) Money market fund $ 5,925 $ — $ — $ 5,925 For the year ended December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), there were no transfers between levels. Investments are exposed to various risks, such as interest rate and credit risks. Due to the level of risk associated with investments and the level of uncertainty related to credit risks, it is at least reasonably possible that changes in risk in the near term could materially affect the amounts reported. 401(k) Plan The Company sponsors a 401(k) Plan which covers substantially all employees. Employee contributions are made on a before-tax basis as provided by Section 401(k) of the Internal Revenue Code or as after-tax "Roth" contributions. Employees may contribute up to 25% of their eligible annual compensation to the 401(k) Plan, limited to a maximum annual amount as set periodically by the Internal Revenue Service ( $18,000 for 2015 ). The Plan also provides a "catch-up" contribution provision which permits eligible participants (age 50 or over at the end of the calendar year), to make additional contributions that exceed the regular annual contribution limits up to a limit periodically set by the Internal Revenue Service ( $6,000 for 2015 ). The Company matches the sum of all employee contributions dollar for dollar up to a maximum of 4% of an employee's pay per year per person. All matching contributions vest immediately. Prior to 2009, employee contributions to the Company's 401(k) Plan were matched through use of an ESOP established by the Company. Beginning in 2009, the Company adopted a cash match for employee contributions to the 401(k) plan. For the period of February 1, 2015 to December 31, 2015 (Successor Company) and for the year ended December 31, 2014 (Predecessor Company), the Company recorded an expense of $6.3 million and $6.3 million , respectively. Effective as of January 1, 2005, the Company adopted a supplemental matching contribution program, which is a nonqualified plan that provides supplemental matching contributions in excess of the limits imposed on qualified defined contribution plans by federal tax law. The first allocations under this program were made in early 2006, with respect to the 2005 plan year. The expense recorded by the Company for this employee benefit was $0.5 million , $0.4 million , and $0.5 million , respectively, in 2015 , 2014 , and 2013 . Prior to the Merger date of February 1, 2015, the Company's outstanding and publicly traded common stock was a component of the investment options allowed to participants in the 401(k) Plan. Deferred Compensation Plan Prior to the Merger, the Company had established deferred compensation plans for directors, officers, and others. Compensation deferred was credited to the participants in cash, mutual funds, common stock equivalents, or a combination thereof. The Company, from time to time, reissued treasury shares or buy in the open market shares of common stock to fulfill its obligation under the plans. As of December 31, 2014 (Predecessor Company), the plans had 1,109,595 common stock equivalents credited to participants. The Company's obligations related to its deferred compensation plans are reported in other liabilities, unless they are to be settled in shares of its common stock, in which case they are reported as a component of shareowner's equity. On February 1, 2015, the Company became a wholly owned subsidiary of Dai-ichi Life and the Company stock ceased to be publicly traded. Thus, any common stock equivalents within the plans converted into rights to receive the merger consideration of $70.00 per common stock equivalent. As of February 1, 2015, the Company has continued the deferred compensation plans for officers and others. Compensation deferred was credited to the participants in cash, mutual funds, or a combination thereof. As of December 31, 2015 (Successor Company), the Company's obligations related to its deferred compensation plans are reported in other liabilities. |
EARNINGS PER SHARE (PREDECESSOR
EARNINGS PER SHARE (PREDECESSOR COMPANY) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE (PREDECESSOR COMPANY) As of February 1, 2015, the Company became a wholly owned subsidiary of Dai-ichi Life, and for the period of February 1, 2015 to December 31, 2015 (Successor Company), there was no market for the Company’s common stock and therefore the Company will no longer disclose earnings per share information. For periods prior to February 1, 2015, basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period, including shares issuable under various deferred compensation plans. Diluted earnings per share is computed by dividing net income by the weighted-average number of common shares and dilutive potential common shares outstanding during the period, assuming the shares were not anti-dilutive, including shares issuable under various stock-based compensation plans and stock purchase contracts. A reconciliation of the numerators and denominators of the basic and diluted earnings per share is presented below for the period of January 1, 2015 to January 31, 2015 (Predecessor Company) and for the years ended December 31, 2014 and 2013 (Predecessor Company): Predecessor Company January 1, 2015 For The Year Ended December 31, 2014 2013 (Dollars In Thousands, Except Per Share Amounts) Calculation of basic earnings per share: Net income $ 1,509 $ 384,875 $ 393,464 Average shares issued and outstanding 79,343,253 78,970,229 78,439,987 Issuable under various deferred compensation plans 1,109,595 1,094,988 955,635 Weighted shares outstanding - basic 80,452,848 80,065,217 79,395,622 Per share: Net income - basic $ 0.02 $ 4.81 $ 4.96 Calculation of diluted earnings per share: Net income $ 1,509 $ 384,875 $ 393,464 Weighted shares outstanding - basic 80,452,848 80,065,217 79,395,622 Stock appreciation rights ("SARs") (1) 64,570 272,196 432,413 Issuable under various other stock-based compensation plans 935,382 768,656 745,607 Restricted stock units 306,487 269,427 352,071 Weighted shares outstanding - diluted 81,759,287 81,375,496 80,925,713 Per share: Net income - diluted $ 0.02 $ 4.73 $ 4.86 (1) Excludes 178,325 SARs as of December 31, 2013 , that are antidilutive. In the event the average market price exceeds the issue price of the SARs, such rights would be dilutive to the Company's earnings per share and will be included in the Company's calculation of the diluted average shares outstanding, for applicable periods. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2015 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables summarize the changes in the accumulated balances for each component of AOCI as of December 31, 2015 (Successor Company), January 31, 2015 (Predecessor Company), December 31, 2014 (Predecessor Company), and December 31, 2013 (Predecessor Company). Changes in Accumulated Other Comprehensive Income (Loss) by Component Successor Company Unrealized Gains and Losses on Investments (2) Accumulated Gain and Loss Derivatives Minimum Pension Benefits Liability Adjustment Total Accumulated Other Comprehensive Income (Loss) (Dollars In Thousands, Net of Tax) Beginning Balance, February 1, 2015 $ — $ — $ — $ — Other comprehensive income (loss) before reclassifications (1,264,034 ) (86 ) 5,931 (1,258,189 ) Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings (393 ) — — (393 ) Amounts reclassified from accumulated other comprehensive income (loss) (1) 17,362 86 — 17,448 Net current-period other comprehensive income (loss) (1,247,065 ) — 5,931 (1,241,134 ) Ending Balance, December 31, 2015 $ (1,247,065 ) $ — $ 5,931 $ (1,241,134 ) (1) See Reclassification table below for details. (2) As of December 31, 2015 (Successor Company), net unrealized losses reported in AOCI were offset by $623.0 million due to the impact those net unrealized losses would have had on certain of the Company's insurance assets and liabilities if the net unrealized losses had been recognized in net income. Changes in Accumulated Other Comprehensive Income (Loss) by Component Predecessor Company Unrealized Gains and Losses on Investments (2) Accumulated Gain and Loss Derivatives Minimum Pension Liability Adjustment Total Accumulated Other Comprehensive Income (Loss) (Dollars In Thousands, Net of Tax) Beginning Balance, December 31, 2014 $ 1,484,169 $ (82 ) $ (66,011 ) $ 1,418,076 Other comprehensive income (loss) before reclassifications 482,370 9 (12,527 ) 469,852 Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings (243 ) — — (243 ) Amounts reclassified from accumulated other comprehensive income (loss) (1) (4,166 ) 23 502 (3,641 ) Net current-period other comprehensive income (loss) 477,961 32 (12,025 ) 465,968 Ending Balance January 31, 2015 $ 1,962,130 $ (50 ) $ (78,036 ) $ 1,884,044 (1) See Reclassification table below for details. (2) As of January 31, 2015 and December 31, 2014, net unrealized losses reported in AOCI were offset by $(492.6) million and $(504.4) million , respectively, due to the impact those net unrealized losses would have had on certain of the Company's insurance assets and liabilities if the net unrealized losses had been recognized in net income. Changes in Accumulated Other Comprehensive Income (Loss) by Component Unrealized Gains and Losses on Investments (2) Accumulated Gain and Loss Derivatives Minimum Postretirement Benefits Liability Adjustment Total Accumulated Other Comprehensive Income (Loss) (Dollars In Thousands, Net of Tax) Beginning Balance, December 31, 2013 $ 539,003 $ (1,235 ) $ (43,702 ) $ 494,066 Other comprehensive income (loss) before reclassifications 986,958 (2 ) (27,395 ) 959,561 Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings 3,498 — — 3,498 Amounts reclassified from accumulated other comprehensive income (loss) (1) (45,290 ) 1,155 5,086 (39,049 ) Net current-period other comprehensive income (loss) 945,166 1,153 (22,309 ) 924,010 Ending Balance, December 31, 2014 $ 1,484,169 $ (82 ) $ (66,011 ) $ 1,418,076 (1) See Reclassification table below for details. (2) As of December 31, 2013 and 2014 , net unrealized losses reported in AOCI were offset by $(189.8) million and $(504.4) million , respectively, due to the impact those net unrealized losses would have had on certain of the Company's insurance assets and liabilities if the net unrealized losses had been recognized in net income. Changes in Accumulated Other Comprehensive Income (Loss) by Component Unrealized Gains and Losses on Investments (2) Accumulated Gain and Loss Derivatives Minimum Postretirement Benefits Liability Adjustment Total Accumulated Other Comprehensive Income (Loss) (Dollars In Thousands, Net of Tax) Beginning Balance, December 31, 2012 $ 1,813,516 $ (3,496 ) $ (73,298 ) $ 1,736,722 Other comprehensive income (loss) before reclassifications (1,250,498 ) 734 29,596 (1,220,168 ) Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings 4,591 — — 4,591 Amounts reclassified from accumulated other comprehensive income (loss) (1) (28,606 ) 1,527 — (27,079 ) Net current-period other comprehensive income (loss) (1,274,513 ) 2,261 29,596 (1,242,656 ) Ending Balance, December 31, 2013 $ 539,003 $ (1,235 ) $ (43,702 ) $ 494,066 (1) See Reclassification table below for details. (2) As of December 31, 2012 and December 31, 2013 , net unrealized losses reported in AOCI were offset by $(204.8) million and $(189.8) million , respectively, due to the impact those net unrealized losses would have had on certain of the Company's insurance assets and liabilities if the net unrealized losses had been recognized in net income. The following tables summarize the reclassifications amounts out of AOCI for the period of February 1, 2015 to December 31, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company) and for the year ended December 31, 2014 (Predecessor Company). Reclassifications Out of Accumulated Other Comprehensive Income (Loss) Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Income (Dollars In Thousands) Successor Company February 1, 2015 to December 31, 2015 Gains and losses on derivative instruments Net settlement (expense)/benefit (1) $ (131 ) Benefits and settlement expenses, net of reinsurance ceded (131 ) Total before tax 45 Tax (expense) or benefit $ (86 ) Net of tax Unrealized gains and losses on available-for-sale securities Net investment gains/losses $ 281 Realized investment gains (losses): All other investments Impairments recognized in earnings (26,992 ) Net impairment losses recognized in earnings (26,711 ) Total before tax 9,349 Tax (expense) or benefit $ (17,362 ) Net of tax Pension benefits liability adjustment Amortization of net actuarial gain/(loss) $ — Other operating expenses Amortization of prior service credit/(cost) — Other operating expenses Amortization of transition asset/(obligation) — Other operating expenses — Total before tax — Tax (expense) or benefit $ — Net of tax (1) See Note 24, Derivative Financial Instruments for additional information. Reclassifications Out of Accumulated Other Comprehensive Income (Loss) Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Income (Dollars In Thousands) Predecessor Company January 1, 2015 to January 31, 2015 Gains and losses on derivative instruments Net settlement (expense)/benefit (1) $ (36 ) Benefits and settlement expenses, net of reinsurance ceded (36 ) Total before tax 13 Tax (expense) or benefit $ (23 ) Net of tax Unrealized gains and losses on available-for-sale securities Net investment gains/losses $ 6,891 Realized investment gains (losses): All other investments Impairments recognized in earnings (481 ) Net impairment losses recognized in earnings 6,410 Total before tax (2,244 ) Tax (expense) or benefit $ 4,166 Net of tax Pension benefits liability adjustment Amortization of net actuarial gain/(loss) $ (808 ) Other operating expenses Amortization of prior service credit/(cost) 31 Other operating expenses Amortization of transition asset/(obligation) 5 Other operating expenses (772 ) Total before tax 270 Tax (expense) or benefit $ (502 ) Net of tax (1) See Note 24, Derivative Financial Instruments for additional information. Reclassifications Out of Accumulated Other Comprehensive Income (Loss) Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Income (Dollars In Thousands) Predecessor Company For The Year Ended December 31, 2014 Gains and losses on derivative instruments Net settlement (expense)/benefit (1) $ (1,777 ) Benefits and settlement expenses, net of reinsurance ceded (1,777 ) Total before tax 622 Tax (expense) or benefit $ (1,155 ) Net of tax Unrealized gains and losses on available-for-sale securities Net investment gains/losses $ 76,952 Realized investment gains (losses): All other investments Impairments recognized in earnings (7,275 ) Net impairment losses recognized in earnings 69,677 Total before tax (24,387 ) Tax (expense) or benefit $ 45,290 Net of tax Pension benefits liability adjustment Amortization of net actuarial gain/(loss) $ (8,264 ) Other operating expenses Amortization of prior service credit/(cost) 386 Other operating expenses Amortization of transition asset/(obligation) 53 Other operating expenses (7,825 ) Total before tax 2,739 Tax (expense) or benefit $ (5,086 ) Net of tax (1) See Note 24, Derivative Financial Instruments for additional information. Reclassifications Out of Accumulated Other Comprehensive Income (Loss) Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Income (Dollars In Thousands) Predecessor Company For The Year Ended December 31, 2013 Gains and losses on derivative instruments Net settlement (expense)/benefit (1) $ (2,349 ) Benefits and settlement expenses, net of reinsurance ceded (2,349 ) Total before tax 822 Tax (expense) or benefit $ (1,527 ) Net of tax Unrealized gains and losses on available-for-sale securities Net investment gains/losses $ 66,456 Realized investment gains (losses): All other investments Impairments recognized in earnings (22,447 ) Net impairment losses recognized in earnings 44,009 Total before tax (15,403 ) Tax (expense) or benefit $ 28,606 Net of tax (1) See Note 24, Derivative Financial Instruments for additional information. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company's effective income tax rate related to continuing operations varied from the maximum federal income tax rate as follows: Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, 2014 2013 Statutory federal income tax rate applied to pre-tax income 35.0 % 35.0 % 35.0 % 35.0 % State income taxes 2.0 0.8 0.8 0.6 Investment income not subject to tax (4.3 ) (3.2 ) (3.4 ) (3.1 ) Uncertain tax positions 0.2 (0.1 ) 1.3 0.4 Other — (0.1 ) 0.3 0.5 32.9 % 32.4 % 34.0 % 33.4 % The annual provision for federal income tax in these financial statements differs from the annual amounts of income tax expense reported in the Company's income tax returns. Certain significant revenues and expenses are appropriately reported in different years with respect to the financial statements and the tax returns. The components of the Company's income tax are as follows: Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Current income tax expense: Federal $ 5,715 $ (32,803 ) $ 189,105 $ 19,267 State (4,244 ) 1,685 8,838 2,588 Total current $ 1,471 $ (31,118 ) $ 197,943 $ 21,855 Deferred income tax expense: Federal $ 118,338 $ 30,858 $ 1,474 $ 174,888 State 11,734 (67 ) (1,003 ) 166 Total deferred $ 130,072 $ 30,791 $ 471 $ 175,054 The components of the Company's net deferred income tax liability are as follows: Successor Company Predecessor Company As of December 31, 2015 As of December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Deferred income tax assets: Premium receivables and policy liabilities $ — $ 95,298 Loss and credit carryforwards 34,340 516 Deferred compensation 241,156 194,223 Invested assets (other than unrealized gains) — 63,901 Deferred policy acquisition costs 274,366 — Premium on corporate debt 125,296 — Net unrealized loss on investments 671,540 — Other 81,032 — Valuation allowance (4,804 ) (2,206 ) 1,422,926 351,732 Deferred income tax liabilities: Premium receivables and policy liabilities 276,919 — VOBA and other intangibles 631,935 — DAC and VOBA — 1,078,533 Invested assets (other than unrealized gains (losses)) 1,511,353 — Net unrealized gains (losses) on investments — 799,123 Other — 19,554 2,420,207 1,897,210 Net deferred income tax liability $ (997,281 ) $ (1,545,478 ) The deferred tax assets reported above include certain deferred tax assets related to nonqualified deferred compensation and other employee benefit liabilities. These liabilities were assumed by AXA and they were not acquired by the Company in connection with the acquisition of MONY. The future tax deductions stemming from these liabilities will by claimed by the Company on MONY's tax returns in its post-acquisition periods. These deferred tax assets have been estimated as of the MONY Acquisition date (and through the December 31, 2015 reporting date) based on all available information. However, it is possible that these estimates may be adjusted in future reporting periods based on actuarial changes to the projected future payments associated with these liabilities. Any such adjustments will be recognized by the Company as an adjustment to income tax expense during the period in which they are realized. In management's judgment, the gross deferred income tax asset as of December 31, 2015 (Successor Company) will more likely than not be fully realized. The Company has recognized a valuation allowance of $7.4 million and $3.4 million as of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), respectively, related to state-based loss carryforwards that it has determined are more likely than not to expire unutilized. This resulting unfavorable change of $4.0 million , before federal income taxes, increased state income tax expense in 2015 by the same amount. At December 31, 2015 (Successor Company), the Company has a non-life net operating loss carryforward for federal income tax purposes of $65.6 million , which is available to offset future non-life federal taxable income (and life group taxable income with limitations) through 2035. In addition, included in the deferred income tax assets above is approximately $11.0 million in state net operating loss carryfowards attributable to certain jurisdictions, which are available to offset future taxable income in the respective state jurisdictions, expiring between 2015 and 2035. As of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), some of the Company's fixed maturities were reported at an unrealized loss. If the Company were to realize a tax-basis net capital loss for a year, then such loss could not be deducted against that year's other taxable income. However, such a loss could be carried back and forward against any prior year or future year tax-basis net capital gains. Therefore, the Company has relied upon a prudent and feasible tax-planning strategy regarding its fixed maturities that were reported at an unrealized loss. The Company has the ability and the intent to either hold such fixed maturities to maturity, thereby avoiding a realized loss, or to generate an offsetting realized gain from unrealized gain fixed maturities if such unrealized loss fixed maturities are sold at a loss prior to maturity. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Successor Company Predecessor Company February 1, 2015 January 1, 2015 to to As of December 31, December 31, 2015 January 31, 2015 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Balance, beginning of period $ 137,593 $ 193,244 $ 105,881 $ 75,292 Additions for tax positions of the current year 2,213 (5,010 ) 57,463 7,465 Additions for tax positions of prior years 1,811 7,724 39,433 26,386 Reductions of tax positions of prior years: Changes in judgment (16,416 ) (58,365 ) (9,533 ) (2,740 ) Settlements during the period (112,063 ) — — — Lapses of applicable statute of limitations — — — (522 ) Balance, end of period $ 13,138 $ 137,593 $ 193,244 $ 105,881 Included in the end of period balance above, for the period of February 1, 2015 to December 31, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company), and as of December 31, 2014 and 2013 (Predecessor Company), are approximately $5.6 million , $126.0 million , $181.9 million , and $98.0 million of unrecognized tax benefits, respectively, for which the ultimate deductibility is certain but for which there is uncertainty about the timing of such deductions. Other than interest and penalties, the disallowance of the shorter deductibility period would not affect the annual effective income tax rate but would accelerate to an earlier period the payment of cash to the taxing authority. The total amount of unrecognized tax benefits, if recognized, that would affect the effective income tax rate is approximately $7.5 million , $11.5 million , $11.3 million , and $7.9 million for the period of February 1, 2015 to December 31, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company), and as of December 31, 2014 and 2013 (Predecessor Company), respectively. Any accrued interest related to the unrecognized tax benefits and other accrued income taxes have been included in income tax expense. These amounts were a $1.6 million detriment, a $0.9 million benefit, a $3.9 million detriment, and a $2.3 million detriment for the period of February 1, 2015 to December 31, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company) and for the years ended December 31, 2014 , and 2013 (Predecessor Company), respectively. The Company has approximately $15.4 million , $12.7 million , $14.3 million , and $7.8 million of accrued interest associated with unrecognized tax benefits as of December 31, 2015 (Successor Company), as of January 31, 2015 (Predecessor Company), and as of December 31, 2014 and 2013 (Predecessor Company), respectively (before taking into consideration the related income tax benefit that is associated with such an expense). The Company believes that in the next 12 months none of these unrecognized tax benefits will be significantly increased or reduced. In June 2012, the IRS proposed favorable and unfavorable adjustments to the Company’s 2003 through 2007 reported taxable incomes. The Company protested certain unfavorable adjustments and sought resolution at the IRS’ Appeals Division. In October 2015, Appeals accepted the Company’s earlier proposed settlement offer. In September 2015, the IRS proposed favorable and unfavorable adjustments to the Company’s 2008 through 2011 reported taxable income. The Company agreed to these adjustments. The resulting net adjustment to the Company’s current income taxes for the years 2003 through 2011 will not materially affect the Company or its effective tax rate. The Company is currently under audit by the IRS for the years 2012 and 2013. As of December 31, 2015, no materially adverse adjustments to reported taxable income have been proposed. In general, the Company is no longer subject to income tax examinations by taxing authorities for tax years that began before 2012. Nevertheless, certain of these pre-2012 years have pending U.S. tax refunds. Due to their size, these refunds are being reviewed by Congress' Joint Committee on Taxation. Furthermore, due to the afore-mentioned IRS adjustments to the Company's pre-2012 taxable income, the Company is amending certain of its 2003 through 2011 state income tax returns. Such amendments will cause such years to remain open, pending the states' acceptances of the returns. At this time, the Company believes that the Joint Committee's review of its U.S. tax refunds and the states' acceptance of its amending returns will be completed this year. The underlying statutes of limitations are expected to close in due course on or before June 30, 2017. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION The following table sets forth supplemental cash flow information: Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Cash paid / (received) during the year: Interest on debt $ 124,829 $ 22,802 $ 174,644 $ 171,360 Income taxes (53,486 ) (1 ) 159,447 (27,211 ) Noncash investing and financing activities: Stock-based compensation — 1,550 13,902 10,739 Total cash interest paid on debt for the period of February 1, 2015 to December 31, 2015 (Successor Company), was $124.8 million . Of this amount, $51.1 million related to interest on long-term debt, $25.0 million related to interest on subordinated debt, and $48.7 million related to non-recourse funding obligations and other obligations. Total cash interest paid on debt for the period of January 1, 2015 to January 31, 2015 (Predecessor Company), was $22.8 million . Of this amount, $4.8 million related to interest on long-term debt and $18.0 million related to non-recourse funding obligations and other obligations. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 21. RELATED PARTY TRANSACTIONS Certain corporations with which the Company's directors were affiliated paid us premiums and policy fees or other amounts for various types of insurance and investment products, interest on bonds we own and commissions on securities underwritings in which our affiliates participated. Such amounts totaled $45.3 million , $2.6 million , $33.4 million , and $40 million , for the period of February 1, 2015 to December 31, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company) and for the years ended December 31, 2014 , and 2013 (Predecessor Company), respectively. The Company paid commissions, interest on debt and investment products, and fees to these same corporations totaling $10 million , $0.8 million , $16.5 million , and $16.4 million for the period of February 1, 2015 to December 31, 2015 (Successor Company), for the period of January 1, 2015 to January 31, 2015 (Predecessor Company) and for the years ended December 31, 2014 , and 2013 (Predecessor Company), respectively. Prior to the Merger, the Company had no related party transactions with Dai-ichi Life. The Company has guaranteed PLICO's obligations for borrowings or letters of credit under the revolving line of credit arrangement to which the Company is also a party. The Company has also issued guarantees, entered into support agreements and/or assumed a duty to indemnify its indirect wholly owned captive insurance companies in certain respects. In addition, as of December 31, 2015 (Successor Company), the Company was the sole holder of the $800 million balance of outstanding surplus notes issued by one such wholly owned captive insurance company, Golden Gate. The Company guarantees the obligations of PLICO under a synthetic lease entered into by PLICO, as lessee, with a non-affiliated third party, as lessor. Under the terms of the synthetic lease, financing of $75 million was available to PLICO for construction of an office building and parking deck which was completed on February 1, 2000. The synthetic lease was amended and restated as of December 19, 2013, wherein as of December 31, 2015 , the Company continues to guarantee the obligations of PLICO thereunder. The Company has agreements with certain of its subsidiaries under which it supplies investment, legal and data processing services on a fee basis and provides other managerial and administrative services on a shared cost basis. Such other managerial and administrative services include but are not limited to accounting, financial reporting, compliance services, reinsurance administration, tax reporting, reserve computation, and projections. The Company has an intercompany capital support agreement with Shades Creek Captive Insurance Company ("Shades Creek"), a direct wholly owned subsidiary. The agreement provides through a guarantee that the Company will contribute assets or purchase surplus notes (or cause an affiliate or third party to contribute assets or purchase surplus notes) in amounts necessary for Shades Creek's regulatory capital levels to equal or exceed minimum thresholds as defined by the agreement. Under this support agreement, PLICO issued a $55 million Letter of Credit during 2014 (Predecessor Company). As of December 31, 2015 (Successor Company), the $55 million Letter of Credit executed by PLICO was no longer issued and outstanding. Also in accordance with this agreement, $120 million of additional capital was provided to Shades Creek by the Company through cash capital contributions during the period February 1, 2015 to December 31, 2015 (Successor Company). As of December 31, 2015 (Successor Company), Shades Creek maintained capital levels in excess of the required minimum thresholds. The maximum potential future payment amount which could be required under the capital support agreement will be dependent on numerous factors, including the performance of equity markets, the level of interest rates, performance of associated hedges, and related policyholder behavior. |
STATUTORY REPORTING PRACTICES A
STATUTORY REPORTING PRACTICES AND OTHER REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2015 | |
STATUTORY REPORTING PRACTICES AND OTHER REGULATORY MATTERS | |
STATUTORY REPORTING PRACTICES AND OTHER REGULATORY MATTERS | STATUTORY REPORTING PRACTICES AND OTHER REGULATORY MATTERS The Company's insurance subsidiaries prepare statutory financial statements for regulatory purposes in accordance with accounting practices prescribed by the NAIC and the applicable state insurance department laws and regulations. These financial statements vary materially from GAAP. Statutory accounting practices include publications of the NAIC, state laws, regulations, general administrative rules as well as certain permitted accounting practices granted by the respective state insurance department. Generally, the most significant differences are that statutory financial statements do not reflect 1) deferred acquisition costs and VOBA, 2) benefit liabilities that are calculated using Company estimates of expected mortality, interest, and withdrawals, 3) deferred income taxes that are not subject to statutory limits, 4) recognition of realized gains and losses on the sale of securities in the period they are sold, and 5) fixed maturities recorded at fair values, but instead at amortized cost. Statutory net income for PLICO was $440.0 million , $554.2 million , and $165.5 million for the year ended December 31, 2015 , 2014 and 2013 , respectively. Statutory capital and surplus for PLICO was $3.8 billion and $3.5 billion as of December 31, 2015 and 2014 , respectively. The Company's insurance subsidiaries are subject to various state statutory and regulatory restrictions on the insurance subsidiaries' ability to pay dividends to Protective Life Corporation. In general, dividends up to specified levels are considered ordinary and may be paid thirty days after written notice to the insurance commissioner of the state of domicile unless such commissioner objects to the dividend prior to the expiration of such period. Dividends in larger amounts are considered extraordinary and are subject to affirmative prior approval by such commissioner. The maximum amount that would qualify as ordinary dividends to the Company from our insurance subsidiaries, and which would consequently be free from restriction and available for the payment of dividends to the Company's shareowners in 2016 is approximately to be $541.3 million . This results in approximately $4.0 billion of the Company's net assets being restricted from transfer to PLC without prior approval from the respective state insurance department. State insurance regulators and the National Association of Insurance Commissioners ("NAIC") have adopted risk-based capital ("RBC") requirements for life insurance companies to evaluate the adequacy of statutory capital and surplus in relation to investment and insurance risks. The requirements provide a means of measuring the minimum amount of statutory surplus appropriate for an insurance company to support its overall business operations based on its size and risk profile. A company's risk-based statutory surplus is calculated by applying factors and performing calculations relating to various asset, premium, claim, expense and reserve items. Regulators can then measure the adequacy of a company's statutory surplus by comparing it to the RBC. Under specific RBC requirements, regulatory compliance is determined by the ratio of a company's total adjusted capital, as defined by the insurance regulators, to its company action level of RBC (known as the RBC ratio), also as defined by insurance regulators. As of December 31, 2015 , the Company's total adjusted capital and company action level RBC were approximately $4.1 billion and $720.6 million , respectively, providing an RBC ratio of approximately 562% . Additionally, the Company has certain assets that are on deposit with state regulatory authorities and restricted from use. As of December 31, 2015 , the Company's insurance subsidiaries had on deposit with regulatory authorities, fixed maturity and short-term investments with a fair value of approximately $43.8 million . The states of domicile of the Company's insurance subsidiaries have adopted prescribed accounting practices that differ from the required accounting outlined in NAIC Statutory Accounting Principles ("SAP"). The insurance subsidiaries also have certain accounting practices permitted by the states of domicile that differ from those found in NAIC SAP. Certain prescribed and permitted practices impact the statutory surplus of PLICO, the Company's primary operating subsidiary. These practices include the non-admission of goodwill as an asset for statutory reporting and the reporting of Bank Owned Life Insurance ("BOLI") separate account amounts at book value rather than at fair value. The favorable (unfavorable) effects of PLICO's statutory surplus, compared to NAIC statutory surplus, from the use of these prescribed and permitted practices were as follows: As of December 31, 2015 2014 (Dollars In Millions) Non-admission of goodwill $ (295 ) $ (310 ) Total (net) $ (295 ) $ (310 ) The Company also has certain prescribed and permitted practices which are applied at the subsidiary level and do not have a direct impact on the statutory surplus of PLICO. These practices include permission to follow the actuarial guidelines of the domiciliary state of the ceding insurer for certain captive reinsurers, accounting for the face amount of all issued, and outstanding letters of credit and a note issued by an affiliate as assets in the statutory financial statements of certain wholly owned subsidiaries that are considered "Special Purpose Financial Captives", and a reserve difference related to a captive insurance company. The favorable (unfavorable) effects on the statutory surplus of the Company's insurance subsidiaries, compared to NAIC statutory surplus, from the use of these prescribed and permitted practices were as follows: As of December 31, 2015 2014 (Dollars In Millions) Accounting for Letters of Credit as admitted assets $ 1,715 $ 1,735 Accounting for Red Mountain Note as admitted asset $ 500 $ 435 Reserving based on state specific actuarial practices $ 117 $ 112 Reserving difference related to a captive insurance company $ (118 ) $ (87 ) |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS The Company determined the fair value of its financial instruments based on the fair value hierarchy established in FASB guidance referenced in the Fair Value Measurements and Disclosures Topic which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company has adopted the provisions from the FASB guidance that is referenced in the Fair Value Measurements and Disclosures Topic for non-financial assets and liabilities (such as property and equipment, goodwill, and other intangible assets) that are required to be measured at fair value on a periodic basis. The effect on the Company's periodic fair value measurements for non-financial assets and liabilities was not material. The Company has categorized its financial instruments, based on the priority of the inputs to the valuation technique, into a three level hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument. Financial assets and liabilities recorded at fair value on the consolidated balance sheets are categorized as follows: • Level 1: Unadjusted quoted prices for identical assets or liabilities in an active market. • Level 2: Quoted prices in markets that are not active or significant inputs that are observable either directly or indirectly. Level 2 inputs include the following: a) Quoted prices for similar assets or liabilities in active markets b) Quoted prices for identical or similar assets or liabilities in non-active markets c) Inputs other than quoted market prices that are observable d) Inputs that are derived principally from or corroborated by observable market data through correlation or other means. • Level 3: Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. They reflect management's own assumptions about the assumptions a market participant would use in pricing the asset or liability. The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 (Successor Company): Level 1 Level 2 Level 3 Total (Dollars In Thousands) Assets: Fixed maturity securities—available-for-sale Residential mortgage-backed securities $ — $ 1,765,270 $ 3 $ 1,765,273 Commercial mortgage-backed securities — 1,286,887 — 1,286,887 Other asset-backed securities — 210,020 587,031 797,051 U.S. government-related securities 1,054,353 477,824 — 1,532,177 State, municipalities, and political subdivisions — 1,603,600 — 1,603,600 Other government-related securities — 17,740 — 17,740 Corporate securities 83 24,941,584 902,119 25,843,786 Preferred stock 43,073 19,614 — 62,687 Total fixed maturity securities—available-for-sale 1,097,509 30,322,539 1,489,153 32,909,201 Fixed maturity securities—trading Residential mortgage-backed securities — 286,658 — 286,658 Commercial mortgage-backed securities — 146,743 — 146,743 Other asset-backed securities — 122,511 152,912 275,423 U.S. government-related securities 233,592 4,755 — 238,347 State, municipalities, and political subdivisions — 313,354 — 313,354 Other government-related securities — 58,827 — 58,827 Corporate securities — 1,322,276 18,225 1,340,501 Preferred stock 2,794 1,402 — 4,196 Total fixed maturity securities—trading 236,386 2,256,526 171,137 2,664,049 Total fixed maturity securities 1,333,895 32,579,065 1,660,290 35,573,250 Equity securities 656,437 13,063 69,763 739,263 Other long-term investments (1) 113,699 141,487 96,830 352,016 Short-term investments 261,947 6,771 — 268,718 Total investments 2,365,978 32,740,386 1,826,883 36,933,247 Cash 396,072 — — 396,072 Other assets 19,099 — — 19,099 Assets related to separate accounts Variable annuity 12,829,188 — — 12,829,188 Variable universal life 827,610 — — 827,610 Total assets measured at fair value on a recurring basis $ 16,437,947 $ 32,740,386 $ 1,826,883 $ 51,005,216 Liabilities: Annuity account balances (2) $ — $ — $ 92,512 $ 92,512 Other liabilities (1) 40,067 3,932 585,556 629,555 Total liabilities measured at fair value on a recurring basis $ 40,067 $ 3,932 $ 678,068 $ 722,067 (1) Includes certain freestanding and embedded derivatives. (2) Represents liabilities related to fixed indexed annuities. The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 (Predecessor Company): Level 1 Level 2 Level 3 Total (Dollars In Thousands) Assets: Fixed maturity securities—available-for-sale Residential mortgage-backed securities $ — $ 1,418,255 $ 3 $ 1,418,258 Commercial mortgage-backed securities — 1,177,252 — 1,177,252 Other asset-backed securities — 275,415 563,961 839,376 U.S. government-related securities 1,165,188 263,707 — 1,428,895 State, municipalities, and political subdivisions — 1,684,014 3,675 1,687,689 Other government-related securities — 20,172 — 20,172 Corporate securities 132 26,059,712 1,325,683 27,385,527 Total fixed maturity securities—available-for-sale 1,165,320 30,898,527 1,893,322 33,957,169 Fixed maturity securities—trading Residential mortgage-backed securities — 288,114 — 288,114 Commercial mortgage-backed securities — 151,111 — 151,111 Other asset-backed securities — 105,118 169,461 274,579 U.S. government-related securities 245,563 4,898 — 250,461 State, municipalities, and political subdivisions — 325,446 — 325,446 Other government-related securities — 57,032 — 57,032 Corporate securities — 1,447,333 24,744 1,472,077 Total fixed maturity securities—trading 245,563 2,379,052 194,205 2,818,820 Total fixed maturity securities 1,410,883 33,277,579 2,087,527 36,775,989 Equity securities 630,910 99,266 73,054 803,230 Other long-term investments (1) 119,997 106,079 67,894 293,970 Short-term investments 244,100 6,545 — 250,645 Total investments 2,405,890 33,489,469 2,228,475 38,123,834 Cash 379,411 — — 379,411 Other assets 11,669 — — 11,669 Assets related to separate accounts Variable annuity 13,157,429 — — 13,157,429 Variable universal life 834,940 — — 834,940 Total assets measured at fair value on a recurring basis $ 16,789,339 $ 33,489,469 $ 2,228,475 $ 52,507,283 Liabilities: Annuity account balances (2) $ — $ — $ 97,825 $ 97,825 Other liabilities (1) 62,146 3,741 754,852 820,739 Total liabilities measured at fair value on a recurring basis $ 62,146 $ 3,741 $ 852,677 $ 918,564 (1) Includes certain freestanding and embedded derivatives. (2) Represents liabilities related to fixed indexed annuities. Determination of Fair Values The valuation methodologies used to determine the fair values of assets and liabilities reflect market participant assumptions and are based on the application of the fair value hierarchy that prioritizes observable market inputs over unobservable inputs. The Company determines the fair values of certain financial assets and financial liabilities based on quoted market prices, where available. The Company also determines certain fair values based on future cash flows discounted at the appropriate current market rate. Fair values reflect adjustments for counterparty credit quality, the Company’s credit standing, liquidity, and where appropriate, risk margins on unobservable parameters. The following is a discussion of the methodologies used to determine fair values for the financial instruments as listed in the above table. The fair value of fixed maturity, short-term, and equity securities is determined by management after considering one of three primary sources of information: third party pricing services, non-binding independent broker quotations, or pricing matrices. Security pricing is applied using a "waterfall" approach whereby publicly available prices are first sought from third party pricing services, the remaining unpriced securities are submitted to independent brokers for non-binding prices, or lastly, securities are priced using a pricing matrix. Typical inputs used by these three pricing methods include, but are not limited to: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two -sided markets, benchmark securities, bids, offers, and reference data including market research publications. Third party pricing services price approximately 90% of the Company's available-for-sale and trading fixed maturity securities. Based on the typical trading volumes and the lack of quoted market prices for available-for-sale and trading fixed maturities, third party pricing services derive the majority of security prices from observable market inputs such as recent reported trades for identical or similar securities making adjustments through the reporting date based upon available market observable information outlined above. If there are no recent reported trades, the third party pricing services and brokers may use matrix or model processes to develop a security price where future cash flow expectations are developed based upon collateral performance and discounted at an estimated market rate. Certain securities are priced via independent non-binding broker quotations, which are considered to have no significant unobservable inputs. When using non-binding independent broker quotations, the Company obtains one quote per security, typically from the broker from which we purchased the security. A pricing matrix is used to price securities for which the Company is unable to obtain or effectively rely on either a price from a third party pricing service or an independent broker quotation. The pricing matrix used by the Company begins with current spread levels to determine the market price for the security. The credit spreads, assigned by brokers, incorporate the issuer’s credit rating, liquidity discounts, weighted- average of contracted cash flows, risk premium, if warranted, due to the issuer’s industry, and the security’s time to maturity. The Company uses credit ratings provided by nationally recognized rating agencies. For securities that are priced via non-binding independent broker quotations, the Company assesses whether prices received from independent brokers represent a reasonable estimate of fair value through an analysis using internal and external cash flow models developed based on spreads and, when available, market indices. The Company uses a market-based cash flow analysis to validate the reasonableness of prices received from independent brokers. These analytics, which are updated daily, incorporate various metrics (yield curves, credit spreads, prepayment rates, etc.) to determine the valuation of such holdings. As a result of this analysis, if the Company determines there is a more appropriate fair value based upon the analytics, the price received from the independent broker is adjusted accordingly. The Company did not adjust any quotes or prices received from brokers during the period of February 1, 2015 to December 31, 2015 (Successor Company) and the period of January 1, 2015 to January 31, 2015 (Predecessor Company). The Company has analyzed the third party pricing services’ valuation methodologies and related inputs and has also evaluated the various types of securities in its investment portfolio to determine an appropriate fair value hierarchy level based upon trading activity and the observability of market inputs that is in accordance with the Fair Value Measurements and Disclosures Topic of the ASC. Based on this evaluation and investment class analysis, each price was classified into Level 1, 2, or 3. Most prices provided by third party pricing services are classified into Level 2 because the significant inputs used in pricing the securities are market observable and the observable inputs are corroborated by the Company. Since the matrix pricing of certain debt securities includes significant non-observable inputs, they are classified as Level 3. Asset-Backed Securities This category mainly consists of residential mortgage-backed securities, commercial mortgage-backed securities, and other asset-backed securities (collectively referred to as asset-backed securities or "ABS"). As of December 31, 2015 (Successor Company), the Company held $3.8 billion of ABS classified as Level 2. These securities are priced from information provided by a third party pricing service and independent broker quotes. The third party pricing services and brokers mainly value securities using both a market and income approach to valuation. As part of this valuation process they consider the following characteristics of the item being measured to be relevant inputs: 1) weighted-average coupon rate, 2) weighted-average years to maturity, 3) types of underlying assets, 4) weighted-average coupon rate of the underlying assets, 5) weighted-average years to maturity of the underlying assets, 6) seniority level of the tranches owned, and 7) credit ratings of the securities. After reviewing these characteristics of the ABS, the third party pricing service and brokers use certain inputs to determine the value of the security. For ABS classified as Level 2, the valuation would consist of predominantly market observable inputs such as, but not limited to: 1) monthly principal and interest payments on the underlying assets, 2) average life of the security, 3) prepayment speeds, 4) credit spreads, 5) treasury and swap yield curves, and 6) discount margin. The Company reviews the methodologies and valuation techniques (including the ability to observe inputs) in assessing the information received from external pricing services and in consideration of the fair value presentation. As of December 31, 2015 (Successor Company), the Company held $739.9 million of Level 3 ABS, which included $587.0 million of other asset-backed securities classified as available-for-sale and $152.9 million of other asset-backed securities classified as trading. These securities are predominantly ARS whose underlying collateral is at least 97% guaranteed by the FFELP. As a result of the ARS market collapse during 2008, the Company prices its ARS using an income approach valuation model. As part of the valuation process the Company reviews the following characteristics of the ARS in determining the relevant inputs: 1) weighted-average coupon rate, 2) weighted-average years to maturity, 3) types of underlying assets, 4) weighted-average coupon rate of the underlying assets, 5) weighted-average years to maturity of the underlying assets, 6) seniority level of the tranches owned, 7) credit ratings of the securities, 8) liquidity premium, and 9) paydown rate. Corporate Securities, U.S. Government-Related Securities, States, Municipals, and Political Subdivisions, and Other Government Related Securities As of December 31, 2015 (Successor Company), the Company classified approximately $28.8 billion of corporate securities, U.S. government-related securities, states, municipals, and political subdivisions, and other government-related securities as Level 2. The fair value of the Level 2 securities is predominantly priced by broker quotes and a third party pricing service. The Company has reviewed the valuation techniques of the brokers and third party pricing service and has determined that such techniques used Level 2 market observable inputs. The following characteristics of the securities are considered to be the primary relevant inputs to the valuation: 1) weighted- average coupon rate, 2) weighted-average years to maturity, 3) seniority, and 4) credit ratings. The Company reviews the methodologies and valuation techniques (including the ability to observe inputs) in assessing the information received from external pricing services and in consideration of the fair value presentation. The brokers and third party pricing service utilize valuation models that consist of a hybrid income and market approach to valuation. The pricing models utilize the following inputs: 1) principal and interest payments, 2) treasury yield curve, 3) credit spreads from new issue and secondary trading markets, 4) dealer quotes with adjustments for issues with early redemption features, 5) liquidity premiums present on private placements, and 6) discount margins from dealers in the new issue market. As of December 31, 2015 (Successor Company), the Company classified approximately $920.3 million of securities as Level 3 valuations. Level 3 securities primarily represent investments in illiquid bonds for which no price is readily available. To determine a price, the Company uses a discounted cash flow model with both observable and unobservable inputs. These inputs are entered into an industry standard pricing model to determine the final price of the security. These inputs include: 1) principal and interest payments, 2) coupon rate, 3) sector and issuer level spread over treasury, 4) underlying collateral, 5) credit ratings, 6) maturity, 7) embedded options, 8) recent new issuance, 9) comparative bond analysis, and 10) an illiquidity premium. Equities As of December 31, 2015 (Successor Company), the Company held approximately $82.8 million of equity securities classified as Level 2 and Level 3. Of this total, $65.7 million represents FHLB stock. The Company believes that the cost of the FHLB stock approximates fair value. Other Long-Term Investments and Other Liabilities Other long-term investments and other liabilities consist entirely of free-standing and embedded derivative financial instruments. Refer to Note 24, Derivative Financial Instruments for additional information related to derivatives. Derivative financial instruments are valued using exchange prices, independent broker quotations, or pricing valuation models, which utilize market data inputs. Excluding embedded derivatives, as of December 31, 2015 (Successor Company), 100% of derivatives based upon notional values were priced using exchange prices or independent broker quotations. The remaining derivatives were priced by pricing valuation models, which predominantly utilize observable market data inputs. Inputs used to value derivatives include, but are not limited to, interest swap rates, credit spreads, interest rate and equity market volatility indices, equity index levels, and treasury rates. The Company performs monthly analysis on derivative valuations that includes both quantitative and qualitative analyses. Derivative instruments classified as Level 1 generally include futures and options, which are traded on active exchange markets. Derivative instruments classified as Level 2 primarily include interest rate and inflation swaps, options, and swaptions. These derivative valuations are determined using independent broker quotations, which are corroborated with observable market inputs. Derivative instruments classified as Level 3 were embedded derivatives and include at least one significant non-observable input. A derivative instrument containing Level 1 and Level 2 inputs will be classified as a Level 3 financial instrument in its entirety if it has at least one significant Level 3 input. The Company utilizes derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instruments may not be classified within the same fair value hierarchy level as the associated assets and liabilities. Therefore, the changes in fair value on derivatives reported in Level 3 may not reflect the offsetting impact of the changes in fair value of the associated assets and liabilities. The embedded derivatives are carried at fair value in "other long-term investments" and "other liabilities" on the Company's consolidated balance sheet. The changes in fair value are recorded in earnings as "Realized investment gains (losses)—Derivative financial instruments". Refer to Note 24, Derivative Financial Instruments for more information related to each embedded derivatives gains and losses. The fair value of the GMWB embedded derivative is derived through the income method of valuation using a valuation model that projects future cash flows using multiple risk neutral stochastic equity scenarios and policyholder behavior assumptions. The risk neutral scenarios are generated using the current swap curve and projected equity volatilities and correlations. The projected equity volatilities are based on a blend of historical volatility and near- term equity market implied volatilities. The equity correlations are based on historical price observations. For policyholder behavior assumptions, expected lapse and utilization assumptions are used and updated for actual experience, as necessary. The Company assumes age-based mortality from the National Association of Insurance Commissioners 1994 Variable Annuity MGDB Mortality Table with company experience, with attained age factors varying from 44.5% - 100% . The present value of the cash flows is determined using the discount rate curve, which is based upon LIBOR plus a credit spread (to represent the Company's non-performance risk). As a result of using significant unobservable inputs, the GMWB embedded derivative is categorized as Level 3. These assumptions are reviewed on a quarterly basis. The balance of the FIA embedded derivative is impacted by policyholder cash flows associated with the FIA product that are allocated to the embedded derivative in addition to changes in the fair value of the embedded derivative during the reporting period. The fair value of the FIA embedded derivative is derived through the income method of valuation using a valuation model that projects future cash flows using current index values and volatility, the hedge budget used to price the product, and policyholder assumptions (both elective and non-elective). For policyholder behavior assumptions, expected lapse and withdrawal assumptions are used and updated for actual experience, as necessary. The Company assumes age-based mortality from the 1994 Variable Annuity MGDB mortality table modified with company experience, with attained age factors varying from 49% - 80% . The present value of the cash flows is determined using the discount rate curve, which is based upon LIBOR up to one year and constant maturity treasury rates plus a credit spread (to represent the Company's non-performance risk) thereafter. Policyholder assumptions are reviewed on an annual basis. As a result of using significant unobservable inputs, the FIA embedded derivative is categorized as Level 3. The balance of the indexed universal life (“IUL”) embedded derivative is impacted by policyholder cash flows associated with the IUL product that are allocated to the embedded derivative in addition to changes in the fair value of the embedded derivative during the reporting period. The fair value of the IUL embedded derivative is derived through the income method of valuation using a valuation model that projects future cash flows using current index values and volatility, the hedge budget used to price the product, and policyholder assumptions (both elective and non-elective). For policyholder behavior assumptions, expected lapse and withdrawal assumptions are used and updated for actual experience, as necessary. The Company assumes age-based mortality from the SOA 2015 VBT Primary Tables modified with company experience, with attained age factors varying from 38% - 153% . The present value of the cash flows is determined using the discount rate curve, which is based upon LIBOR up to one year and constant maturity treasury rates plus a credit spread (to represent the Company's non-performance risk) thereafter. Policyholder assumptions are reviewed on an annual basis. As a result of using significant unobservable inputs, the IUL embedded derivative is categorized as Level 3. The Company has assumed and ceded certain blocks of policies under modified coinsurance agreements in which the investment results of the underlying portfolios inure directly to the reinsurers. As a result, these agreements contain embedded derivatives that are reported at fair value. Changes in their fair value are reported in earnings. The investments supporting these agreements are designated as "trading securities"; therefore changes in their fair value are also reported in earnings. As of December 31, 2015 (Successor Company), the fair value of the embedded derivative is based upon the relationship between the statutory policy liabilities (net of policy loans) of $2.5 billion and the statutory unrealized gain (loss) of the securities of $184.1 million . As a result, changes in the fair value of the embedded derivatives are largely offset by the changes in fair value of the related investments and each are reported in earnings. The fair value of the embedded derivative is considered a Level 3 valuation due to the unobservable nature of the policy liabilities. Annuity Account Balances The Company records certain of its FIA reserves at fair value. The fair value is considered a Level 3 valuation. The FIA valuation model calculates the present value of future benefit cash flows less the projected future profits to quantify the net liability that is held as a reserve. This calculation is done using multiple risk neutral stochastic equity scenarios. The cash flows are discounted using LIBOR plus a credit spread. Best estimate assumptions are used for partial withdrawals, lapses, expenses and asset earned rate with a risk margin applied to each. These assumptions are reviewed at least annually as a part of the formal unlocking process. If an event were to occur within a quarter that would make the assumptions unreasonable, the assumptions would be reviewed within the quarter. The discount rate for the fixed indexed annuities is based on an upward sloping rate curve which is updated each quarter. The discount rates for December 31, 2015 (Successor Company), ranged from a one month rate of 0.61% , a 5 year rate of 2.43% , and a 30 year rate of 3.66% . A credit spread component is also included in the calculation to accommodate non-performance risk. Separate Accounts Separate account assets are invested in open-ended mutual funds and are included in Level 1. Valuation of Level 3 Financial Instruments The following table presents the valuation method for material financial instruments included in Level 3, as well as the unobservable inputs used in the valuation of those financial instruments: Successor Company Fair Value As of December 31, 2015 Valuation Technique Unobservable Input Range (Weighted Average) (Dollars In Thousands) Assets: Other asset-backed securities $ 587,031 Discounted cash flow Liquidity premium 0.27% - 1.49% (0.42%) Paydown rate 10.20% - 14.72% (13.11%) Corporate securities 875,810 Discounted cash flow Spread over treasury 0.10% - 19.00% (2.61%) Liabilities: Embedded derivatives—GMWB (1) $ 181,612 Actuarial cash flow model Mortality 1994 MGDB table with company experience Lapse 0.3% - 15%, depending on product/duration/funded status of guarantee Utilization 99%. 10% of policies have a one-time over-utilization of 400% Nonperformance risk 0.18% - 1.04% Annuity account balances (2) 92,512 Actuarial cash flow model Asset earned rate 4.53% - 5.67% Expenses $81 per policy Withdrawal rate 2.20% Mortality 1994 MGDB table with company experience Lapse 2.2% - 33.0%, depending on duration/surrender charge period Return on assets 1.50% - 1.85% depending on surrender charge period Nonperformance risk 0.18% - 1.04% Embedded derivative—FIA 100,329 Actuarial cash flow model Expenses $81.50 per policy Withdrawal rate 1.1% - 4.5% depending on duration and tax qualification Mortality 1994 MGDB table with company experience Lapse 2.5% - 40.0%, depending on duration/surrender charge period Nonperformance risk 0.18% - 1.04% Embedded derivative—IUL 29,629 Actuarial cash flow model Mortality 38% - 153% of 2015 VBT Primary Tables Lapse 0.5% - 10.0%, depending on duration/distribution channel and smoking class Nonperformance risk 0.18% - 1.04% (1) The fair value for the GMWB embedded derivative is presented as a net liability. Excludes modified coinsurance arrangements. (2) Represents liabilities related to fixed indexed annuities. The chart above excludes Level 3 financial instruments that are valued using broker quotes and those which book value approximates fair value. The Company has considered all reasonably available quantitative inputs as of December 31, 2015 (Successor Company), but the valuation techniques and inputs used by some brokers in pricing certain financial instruments are not shared with the Company. This resulted in $200.5 million of financial instruments being classified as Level 3 as of December 31, 2015 (Successor Company). Of the $200.5 million , $152.9 million are other asset-backed securities, $44.5 million are corporate securities, and $3.1 million are equity securities. In certain cases the Company has determined that book value materially approximates fair value. As of December 31, 2015 (Successor Company), the Company held $66.7 million of financial instruments where book value approximates fair value which was predominantly FHLB stock. The following table presents the valuation method for material financial instruments included in Level 3, as well as the unobservable inputs used in the valuation of those financial instruments: Predecessor Company Fair Value As of December 31, 2014 Valuation Technique Unobservable Input Range (Weighted Average) (Dollars In Thousands) Assets: Other asset-backed securities $ 563,752 Discounted cash flow Liquidity premium 0.39% - 1.49% (0.69%) Paydown rate 9.70% - 15.80% (12.08%) Corporate securities 1,282,864 Discounted cash flow Spread over treasury 0.33% - 7.50% (2.19%) Liabilities: Embedded derivatives—GMWB (1) $ 245,090 Actuarial cash flow model Mortality 44.5% to 100% of 1994 MGDB table Lapse 0.25% - 17%, depending on product/duration/funded status of guarantee Utilization 97% - 101% Nonperformance risk 0.12% - 0.96% Annuity account balances (2) 97,825 Actuarial cash flow model Asset earned rate 3.86% - 5.92% Expenses $88 - $102 per policy Withdrawal rate 2.20% Mortality 49% to 80% of 1994 MGDB table Lapse 2.2% - 33.0%, depending on duration/surrender charge period Return on assets 1.50% - 1.85% depending on surrender charge period Nonperformance risk 0.12% - 0.96% Embedded derivative—FIA 124,465 Actuarial cash flow model Expenses $83 - $97 per policy Withdrawal rate 1.1% - 4.5% depending on duration and tax qualification Mortality 49% to 80% of 1994 MGDB table Lapse 2.2% - 40.0%, depending on duration/surrender charge period Nonperformance risk 0.12% - 0.96% Embedded derivative - IUL 6,691 Actuarial cash flow model Mortality 37% - 74% of 2008 VBT Primary Tables Lapse 0.5% - 10%, depending on duration/distribution channel and smoking class Nonperformance risk 0.12% - 0.96% (1) The fair value for the GMWB embedded derivative is presented as a net liability. Excludes modified coinsurance arrangements. (2) Represents liabilities related to fixed indexed annuities. The chart above excludes Level 3 financial instruments that are valued using broker quotes and those which book value approximates fair value. The Company has considered all reasonably available quantitative inputs as of December 31, 2014 (Predecessor Company), but the valuation techniques and inputs used by some brokers in pricing certain financial instruments are not shared with the Company. This resulted in $240.3 million of financial instruments being classified as Level 3 as of December 31, 2014 (Predecessor Company). Of the $240.3 million , $169.7 million are other asset-backed securities, $67.6 million are corporate securities, and $3.0 million are equity securities. In certain cases the Company determined that book value materially approximates fair value. As of December 31, 2014 (Predecessor Company), the Company held $73.7 million of financial instruments where book value approximates fair value. Of the $73.7 million , $70.0 million represents equity securities, which are predominantly FHLB stock, and $3.7 million of other fixed maturity securities. The asset-backed securities classified as Level 3 are predominantly ARS. A change in the paydown rate (the projected annual rate of principal reduction) of the ARS can significantly impact the fair value of these securities. A decrease in the paydown rate would increase the projected weighted average life of the ARS and incr |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS Types of Derivative Instruments and Derivative Strategies The Company utilizes a risk management strategy that incorporates the use of derivative financial instruments to reduce exposure to certain risks, including but not limited to, interest rate risk, inflation risk, currency exchange risk, volatility risk, and equity market risk. These strategies are developed through the Company's analysis of data from financial simulation models and other internal and industry sources, and are then incorporated into the Company's risk management program. Derivative instruments expose the Company to credit and market risk and could result in material changes from period to period. The Company attempts to minimize its credit risk by entering into transactions with highly rated counterparties. The Company manages the market risk by establishing and monitoring limits as to the types and degrees of risk that may be undertaken. The Company monitors its use of derivatives in connection with its overall asset/liability management programs and risk management strategies. In addition, all derivative programs are monitored by our risk management department. Derivatives Related to Interest Rate Risk Management Derivative instruments that are used as part of the Company's interest rate risk management strategy include interest rate swaps, interest rate futures, interest rate caps, and interest rate swaptions. The Company's inflation risk management strategy involves the use of swaps that requires the Company to pay a fixed rate and receive a floating rate that is based on changes in the Consumer Price Index ("CPI"). Derivatives Related to Risk Mitigation of Certain Annuity Contracts The Company may use the following types of derivative contracts to mitigate its exposure to certain guaranteed benefits related to VA contracts and fixed indexed annuities: • Foreign Currency Futures • Variance Swaps • Interest Rate Futures • Equity Options • Equity Futures • Credit Derivatives • Interest Rate Swaps • Interest Rate Swaptions • Volatility Futures • Volatility Options • Total Return Swaps Accounting for Derivative Instruments The Company records its derivative financial instruments in the consolidated balance sheet in "other long-term investments" and "other liabilities" in accordance with GAAP, which requires that all derivative instruments be recognized in the balance sheet at fair value. The change in the fair value of derivative financial instruments is reported either in the statement of income or in other comprehensive income (loss), depending upon whether it qualified for and also has been properly identified as being part of a hedging relationship, and also on the type of hedging relationship that exists. For a derivative financial instrument to be accounted for as an accounting hedge, it must be identified and documented as such on the date of designation. For cash flow hedges, the effective portion of their realized gain or loss is reported as a component of other comprehensive income and reclassified into earnings in the same period during which the hedged item impacts earnings. Any remaining gain or loss, the ineffective portion, is recognized in current earnings. For fair value hedge derivatives, their gain or loss as well as the offsetting loss or gain attributable to the hedged risk of the hedged item is recognized in current earnings. Effectiveness of the Company's hedge relationships is assessed on a quarterly basis. The Company reports changes in fair values of derivatives that are not part of a qualifying hedge relationship through earnings in the period of change. Changes in the fair value of derivatives that are recognized in current earnings are reported in "Realized investment gains (losses)—Derivative financial instruments". Derivative Instruments Designated and Qualifying as Hedging Instruments Cash-Flow Hedges • In connection with the issuance of inflation-adjusted funding agreements, the Company has entered into swaps to essentially convert the floating CPI-linked interest rate on these agreements to a fixed rate. The Company pays a fixed rate on the swap and receives a floating rate primarily determined by the period's change in the CPI. The amounts that are received on the swaps are almost equal to the amounts that are paid on the agreements. None of these positions were held as of December 31, 2015 (Successor Company), as these funding agreements and correlating swaps matured in June 2015. Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments The Company uses various other derivative instruments for risk management purposes that do not qualify for hedge accounting treatment. Changes in the fair value of these derivatives are recognized in earnings during the period of change. Derivatives Related to Variable Annuity Contracts • The Company uses equity, interest rate, currency, and volatility futures to mitigate the risk related to certain guaranteed minimum benefits, including GMWB, within its VA products. In general, the cost of such benefits varies with the level of equity and interest rate markets, foreign currency levels, and overall volatility. • The Company uses equity options, variance swaps, and volatility options to mitigate the risk related to certain guaranteed minimum benefits, including GMWB, within its VA products. In general, the cost of such benefits varies with the level of equity markets and overall volatility. • The Company uses interest rate swaps and interest rate swaptions to mitigate the risk related to certain guaranteed minimum benefits, including GMWB, within its VA products. • The Company markets certain VA products with a GMWB rider. The GMWB component is considered an embedded derivative, not considered to be clearly and closely related to the host contract. Derivatives Related to Fixed Annuity Contracts • The Company uses equity, futures, and options to mitigate the risk within its fixed indexed annuity products. In general, the cost of such benefits varies with the level of equity and overall volatility. • The Company uses equity options to mitigate the risk within its fixed indexed annuity products. In general, the cost of such benefits varies with the level of equity markets. • The Company markets certain fixed indexed annuity products. The FIA component is considered an embedded derivative, not considered to be clearly and closely related to the host contract. Derivatives Related to Indexed Universal Life Contracts • The Company uses equity, futures, and options to mitigate the risk within its indexed universal life products. In general, the cost of such benefits varies with the level of equity markets. • The Company markets certain IUL products. The IUL component is considered an embedded derivative, not considered to be clearly and closely related to the host contract. Other Derivatives • The Company uses certain interest rate swaps to mitigate the price volatility of fixed maturities. None of these positions were held as of December 31, 2015 (Successor Company). • The Company uses various swaps and other types of derivatives to manage risk related to other exposures. • The Company is involved in various modified coinsurance arrangements which contain embedded derivatives. Changes in their fair value are recorded in current period earnings. The investment portfolios that support the related modified coinsurance reserves had fair value changes which substantially offset the gains or losses on these embedded derivatives. The following table sets forth realized investment gains and losses for the periods shown: Realized investment gains (losses)—derivative financial instruments Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Derivatives related to variable annuity contracts: Interest rate futures - VA $ (14,818 ) $ 1,413 $ 27,801 $ (31,216 ) Equity futures - VA (5,033 ) 9,221 (26,104 ) (52,640 ) Currency futures - VA 7,169 7,778 14,433 (469 ) Variance swaps - VA — — (744 ) (11,310 ) Equity options - VA (27,733 ) 3,047 (41,216 ) (95,022 ) Volatility options - VA — — — (115 ) Interest rate swaptions - VA (13,354 ) 9,268 (22,280 ) 1,575 Interest rate swaps - VA (85,942 ) 122,710 214,164 (157,408 ) Embedded derivative - GMWB 4,412 (207,018 ) (401,354 ) 325,497 Total derivatives related to VA contracts (135,299 ) (53,581 ) (235,300 ) (21,108 ) Derivatives related to FIA contracts: Embedded derivative - FIA (738 ) 1,769 (16,932 ) (942 ) Equity futures - FIA (355 ) (184 ) 870 173 Volatility futures - FIA 5 — 20 (5 ) Equity options - FIA 1,211 (2,617 ) 9,906 1,866 Total derivatives related to FIA contracts 123 (1,032 ) (6,136 ) 1,092 Derivatives related to IUL contracts: Embedded derivative - IUL (614 ) (486 ) (8 ) — Equity futures - IUL 144 3 15 — Equity options - IUL (540 ) (115 ) 150 — Total derivatives related to IUL contracts (1,010 ) (598 ) 157 — Embedded derivative - Modco reinsurance treaties 166,092 (68,026 ) (105,276 ) 205,176 Interest rate swaps — — — 2,985 Other derivatives 91 (37 ) (323 ) (14 ) Total realized gains (losses)—derivatives $ 29,997 $ (123,274 ) $ (346,878 ) $ 188,131 The following table sets forth realized investment gains and losses for the Modco trading portfolio that is included in realized investment gains (losses)—all other investments: Realized investment gains (losses)—all other investments Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Modco trading portfolio (1) $ (167,359 ) $ 73,062 $ 142,016 $ (178,134 ) (1) The Company elected to include the use of alternate disclosures for trading activities. The following tables present the components of the gain or loss on derivatives that qualify as a cash flow hedging relationship: Gain (Loss) on Derivatives in Cash Flow Relationship Amount of Gains (Losses) Deferred in Accumulated Other Comprehensive Income (Loss) on Derivatives Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) Amount and Location of (Losses) Recognized in Income (Loss) on Derivatives (Effective Portion) (Effective Portion) (Ineffective Portion) Benefits and settlement expenses Realized investment gains (losses) (Dollars In Thousands) Successor Company February 1, 2015 to December 31, 2015 Inflation $ (131 ) $ (131 ) $ 73 Total $ (131 ) $ (131 ) $ 73 Predecessor Company January 1, 2015 to January 31, 2015 Inflation $ 13 $ (36 ) $ (7 ) Total $ 13 $ (36 ) $ (7 ) Predecessor Company For The Year Ended December 31, 2014 Inflation $ (4 ) $ (1,777 ) $ (223 ) Total $ (4 ) $ (1,777 ) $ (223 ) Predecessor Company For The Year Ended December 31, 2013 Inflation $ 1,130 $ (2,349 ) $ (190 ) Total $ 1,130 $ (2,349 ) $ (190 ) The tables below present information about the nature and accounting treatment of the Company's primary derivative financial instruments and the location in and effect on the consolidated financial statements for the periods presented below: Successor Company Predecessor Company As of December 31, 2015 As of December 31, 2014 Notional Amount Fair Value Notional Amount Fair Value (Dollars In Thousands) (Dollars In Thousands) Other long-term investments Derivatives not designated as hedging instruments: Interest rate swaps $ 1,435,000 $ 66,408 $ 1,550,000 $ 50,743 Embedded derivative - Modco reinsurance treaties 64,593 1,215 25,760 1,051 Embedded derivative - GMWB 3,769,601 95,614 2,804,629 66,843 Interest rate futures 282,373 1,537 27,977 938 Equity futures 262,485 1,275 26,483 427 Currency futures 226,936 2,499 197,648 2,384 Equity options 2,198,340 179,458 1,921,167 163,212 Interest rate swaptions 225,000 3,663 625,000 8,012 Other 242 347 242 360 $ 8,464,570 $ 352,016 $ 7,178,906 $ 293,970 Other liabilities Cash flow hedges: Inflation $ — $ — $ 40,469 $ 142 Derivatives not designated as hedging instruments: Interest rate swaps 475,000 16,579 275,000 3,599 Variance swaps — — — — Embedded derivative - Modco reinsurance treaties 2,473,427 178,362 2,562,848 311,727 Embedded derivative - GMWB 6,539,658 277,236 7,038,228 311,969 Embedded derivative - FIA 1,110,790 100,329 749,933 124,465 Embedded derivative - IUL 57,760 29,629 12,019 6,691 Interest rate futures 793,763 1,539 — — Equity futures 233,412 2,599 385,256 15,069 Currency futures 46,692 1,115 — — Equity options 1,205,204 22,167 699,295 47,077 $ 12,935,706 $ 629,555 $ 11,763,048 $ 820,739 The Company reclassified the remaining balance of its cash flow hedge derivative financial instruments out of accumulated other comprehensive income (loss) into earnings during the period of February 1, 2015 to December 31, 2015 (Successor Company) as these derivative financial instruments matured in June of 2015. |
OFFSETTING OF ASSETS AND LIABIL
OFFSETTING OF ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2015 | |
Offsetting [Abstract] | |
OFFSETTING OF ASSETS AND LIABILITIES | OFFSETTING OF ASSETS AND LIABILITIES Certain of the Company's derivative instruments are subject to enforceable master netting arrangements that provide for the net settlement of all derivative contracts between the Company and a counterparty in the event of default or upon the occurrence of certain termination events. Collateral support agreements associated with each master netting arrangement provide that the Company will receive or pledge financial collateral in the event either minimum thresholds, or in certain cases ratings levels, have been reached. Additionally, certain of the Company's repurchase agreements provide for net settlement on termination of the agreement. Refer to Note 12, Debt and Other Obligations for details of the Company's repurchase agreement programs. The tables below present the derivative instruments by assets and liabilities for the Company as of December 31, 2015 (Successor Company): Net Amounts of Assets Presented in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position Gross Amounts Offset in the Statement of Financial Position Gross Amounts of Recognized Assets Financial Instruments Cash Collateral Received Net Amount (Dollars In Thousands) Offsetting of Derivative Assets Derivatives: Free-Standing derivatives $ 254,840 $ — $ 254,840 $ 42,382 $ 105,842 $ 106,616 Total derivatives, subject to a master netting arrangement or similar arrangement 254,840 — 254,840 42,382 105,842 106,616 Derivatives not subject to a master netting arrangement or similar arrangement Embedded derivative - Modco reinsurance treaties 1,215 — 1,215 — — 1,215 Embedded derivative - GMWB 95,614 — 95,614 — — 95,614 Other 347 — 347 — — 347 Total derivatives, not subject to a master netting arrangement or similar arrangement 97,176 — 97,176 — — 97,176 Total derivatives 352,016 — 352,016 42,382 105,842 203,792 Total Assets $ 352,016 $ — $ 352,016 $ 42,382 $ 105,842 $ 203,792 Net Amounts of Liabilities Presented in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position Gross Amounts Offset in the Statement of Financial Position Gross Amounts of Recognized Liabilities Financial Instruments Cash Collateral Paid Net Amount (Dollars In Thousands) Offsetting of Derivative Liabilities Derivatives: Free-Standing derivatives $ 43,999 $ — $ 43,999 $ 42,382 $ 1,617 $ — Total derivatives, subject to a master netting arrangement or similar arrangement 43,999 — 43,999 42,382 1,617 — Derivatives not subject to a master netting arrangement or similar arrangement Embedded derivative - Modco reinsurance treaties 178,362 — 178,362 — — 178,362 Embedded derivative - GMWB 277,236 — 277,236 — — 277,236 Embedded derivative - FIA 100,329 — 100,329 — — 100,329 Embedded derivative - IUL 29,629 — 29,629 — — 29,629 Total derivatives, not subject to a master netting arrangement or similar arrangement 585,556 — 585,556 — — 585,556 Total derivatives 629,555 — 629,555 42,382 1,617 585,556 Repurchase agreements (1) 438,185 — 438,185 — — 438,185 Total Liabilities $ 1,067,740 $ — $ 1,067,740 $ 42,382 $ 1,617 $ 1,023,741 (1) Borrowings under repurchase agreements are for a term less than 90 days. The tables below present the derivative instruments by assets and liabilities for the Company as of December 31, 2014 (Predecessor Company): Net Amounts of Assets Presented in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position Gross Amounts Offset in the Statement of Financial Position Gross Amounts of Recognized Assets Financial Instruments Cash Collateral Received Net Amount (Dollars In Thousands) Offsetting of Derivative Assets Derivatives: Free-Standing derivatives $ 225,716 $ — $ 225,716 $ 53,612 $ 73,935 $ 98,169 Total derivatives, subject to a master netting arrangement or similar arrangement 225,716 — 225,716 53,612 73,935 98,169 Derivatives not subject to a master netting arrangement or similar arrangement Embedded derivative - Modco reinsurance treaties 1,051 — 1,051 — — 1,051 Embedded derivative - GMWB 66,843 — 66,843 — — 66,843 Other 360 — 360 — — 360 Total derivatives, not subject to a master netting arrangement or similar arrangement 68,254 — 68,254 — — 68,254 Total derivatives 293,970 — 293,970 53,612 73,935 166,423 Total Assets $ 293,970 $ — $ 293,970 $ 53,612 $ 73,935 $ 166,423 Net Amounts of Liabilities Presented in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position Gross Amounts Offset in the Statement of Financial Position Gross Amounts of Recognized Liabilities Financial Instruments Cash Collateral Paid Net Amount (Dollars In Thousands) Offsetting of Derivative Liabilities Derivatives: Free-Standing derivatives $ 65,887 $ — $ 65,887 $ 53,612 $ 12,258 $ 17 Total derivatives, subject to a master netting arrangement or similar arrangement 65,887 — 65,887 53,612 12,258 17 Derivatives not subject to a master netting arrangement or similar arrangement Embedded derivative - Modco reinsurance treaties 311,727 — 311,727 — — 311,727 Embedded derivative - GMWB 311,969 — 311,969 — — 311,969 Embedded derivative - FIA 124,465 — 124,465 — — 124,465 Embedded derivative - IUL 6,691 — 6,691 — — 6,691 Total derivatives, not subject to a master netting arrangement or similar arrangement 754,852 — 754,852 — — 754,852 Total derivatives 820,739 — 820,739 53,612 12,258 754,869 Repurchase agreements (1) 50,000 — 50,000 — — 50,000 Total Liabilities $ 870,739 $ — $ 870,739 $ 53,612 $ 12,258 $ 804,869 (1) Borrowings under repurchase agreements are for a term less than 90 days. |
OPERATING SEGMENTS
OPERATING SEGMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENTS | OPERATING SEGMENTS The Company has several operating segments each having a strategic focus. An operating segment is distinguished by products, channels of distribution, and/or other strategic distinctions. The Company periodically evaluates its operating segments, as prescribed in the ASC Segment Reporting Topic, and makes adjustments to its segment reporting as needed. There were no changes to the Company's operating segments made or required to be made as a result of the Merger on February 1, 2015. A brief description of each segment follows. • The Life Marketing segment markets fixed UL, IUL, VUL, BOLI, and level premium term insurance ("traditional") products on a national basis primarily through networks of independent insurance agents and brokers, broker-dealers, financial institutions, and independent marketing organizations. • The Acquisitions segment focuses on acquiring, converting, and servicing policies acquired from other companies. The segment's primary focus is on life insurance policies and annuity products that were sold to individuals. The level of the segment's acquisition activity is predicated upon many factors, including available capital, operating capacity, potential return on capital, and market dynamics. Policies acquired through the Acquisitions segment are typically blocks of business where no new policies are being marketed. Therefore earnings and account values are expected to decline as the result of lapses, deaths, and other terminations of coverage unless new acquisitions are made. • The Annuities segment markets fixed and variable annuity products. These products are primarily sold through broker-dealers, financial institutions, and independent agents and brokers. • The Stable Value Products segment sells fixed and floating rate funding agreements directly to the trustees of municipal bond proceeds, money market funds, bank trust departments, and other institutional investors. The segment also issues funding agreements to the FHLB, and markets GICs to 401(k) and other qualified retirement savings plans. The Company recently terminated its funding agreement-backed notes program registered with the SEC and, on October 2, 2015, established an unregistered funding agreement-backed notes program. • The Asset Protection segment markets extended service contracts and credit life and disability insurance to protect consumers' investments in automobiles, recreational vehicles, watercraft, and powersports. In addition, the segment markets a guaranteed asset protection ("GAP") product. GAP coverage covers the difference between the loan pay-off amount and an asset's actual cash value in the case of a total loss. • The Corporate and Other segment primarily consists of net investment income on assets supporting our equity capital, unallocated corporate overhead and expenses not attributable to the segments above (including interest on corporate debt). This segment includes earnings from several non-strategic or runoff lines of business, various investment-related transactions, the operations of several small subsidiaries, and the repurchase of obligations and debt on the open market. The Company uses the same accounting policies and procedures to measure segment operating income (loss) and assets as it uses to measure consolidated net income and assets. Segment operating income (loss) is income before income tax, excluding realized gains and losses on investments and derivatives net of the amortization related to DAC, VOBA, and benefits and settlement expenses. Operating earnings exclude changes in the GMWB embedded derivatives (excluding the portion attributed to economic cost), actual GMWB incurred claims and the related amortization of DAC/VOBA attributed to each of these items. Segment operating income (loss) represents the basis on which the performance of the Company's business is internally assessed by management. Premiums and policy fees, other income, benefits and settlement expenses, and amortization of DAC/VOBA are attributed directly to each operating segment. Net investment income is allocated based on directly related assets required for transacting the business of that segment. Realized investment gains (losses) and other operating expenses are allocated to the segments in a manner that most appropriately reflects the operations of that segment. Investments and other assets are allocated based on statutory policy liabilities net of associated statutory policy assets, while DAC/VOBA and goodwill are shown in the segments to which they are attributable. The goodwill as of December 31, 2015 (Successor Company), was the result of the Dai-ichi Merger. The purchase price was allocated to the segments in proportion to the segment's respective fair value. The allocated purchase price in excess of the fair value of assets and liabilities of each segment resulted in the establishment of that segment's goodwill as of the date of the Merger. There were no significant intersegment transactions during the period of February 1, 2015 to December 31, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company) and for the years ended December 31, 2014 , and 2013 (Predecessor Company). The following tables summarize financial information for the Company's segments (Predecessor and Successor period are not comparable): Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Revenues Life Marketing $ 1,426,090 $ 145,595 $ 1,549,351 $ 1,444,806 Acquisitions 1,333,430 139,761 1,720,179 1,186,579 Annuities 443,419 7,884 533,404 714,552 Stable Value Products 79,670 8,181 127,653 122,790 Asset Protection 261,693 21,953 276,011 278,317 Corporate and Other 166,367 17,535 196,974 211,955 Total revenues $ 3,710,669 $ 340,909 $ 4,403,572 $ 3,958,999 Segment Operating Income (Loss) Life Marketing $ 57,414 $ (1,618 ) $ 121,448 $ 110,298 Acquisitions 194,654 20,134 254,021 154,003 Annuities 180,231 13,164 227,611 184,130 Stable Value Products 56,581 4,529 73,354 80,561 Asset Protection 20,627 2,420 32,480 26,795 Corporate and Other (25,067 ) (10,144 ) (56,720 ) (40,562 ) Total segment operating income 484,440 28,485 652,194 515,225 Realized investment gains (losses)—investments (1)(3) (185,153 ) 89,815 207,307 (172,720 ) Realized investment gains (losses)—derivatives (2) 100,555 (117,118 ) (276,212 ) 247,868 Income tax (expense) benefit (131,543 ) 327 (198,414 ) (196,909 ) Net income $ 268,299 $ 1,509 $ 384,875 $ 393,464 (1) Investment (losses) gains $ (193,879 ) $ 80,672 $ 198,127 $ (145,984 ) Less: amortization related to DAC/VOBA and benefits and settlement expenses (8,726 ) (9,143 ) (9,180 ) 26,736 Realized investment gains (losses)—investments $ (185,153 ) $ 89,815 $ 207,307 $ (172,720 ) (2) Derivatives gains (losses) $ 29,997 $ (123,274 ) $ (346,878 ) $ 188,131 Less: VA GMWB economic cost (70,558 ) (6,156 ) (70,666 ) (59,737 ) Realized investment gains (losses)—derivatives $ 100,555 $ (117,118 ) $ (276,212 ) $ 247,868 Net investment income Life Marketing $ 446,439 $ 47,460 $ 554,004 $ 521,665 Acquisitions 639,422 71,088 874,653 617,298 Annuities 297,114 37,189 465,845 468,322 Stable Value Products 78,459 6,888 107,170 123,798 Asset Protection 17,459 1,878 22,703 23,179 Corporate and Other 154,055 10,677 173,349 163,819 Total net investment income $ 1,632,948 $ 175,180 $ 2,197,724 $ 1,918,081 Amortization of DAC and VOBA Life Marketing $ 107,811 $ 4,813 $ 175,807 $ 25,774 Acquisitions 2,035 5,033 60,031 72,762 Annuities (41,071 ) (7,706 ) (4,651 ) 62,834 Stable Value Products 43 25 380 398 Asset Protection 25,211 1,820 25,257 30,505 Corporate and Other 27 87 485 625 Total amortization of DAC and VOBA $ 94,056 $ 4,072 $ 257,309 $ 192,898 (3) Includes credit related other-than-temporary impairments of $27.0 million , $0.5 million , $7.3 million , and $22.4 million for the period of February 1, 2015 to December 31, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company) and for the years ended December 31, 2014 and 2013 (Predecessor Company), respectively. Successor Company Operating Segment Assets As of December 31, 2015 (Dollars In Thousands) Life Marketing Acquisitions Annuities Stable Value Products Investments and other assets $ 13,258,639 $ 19,879,988 $ 19,926,108 $ 2,006,263 Deferred policy acquisition costs and value of business acquired 1,119,515 (178,662 ) 578,742 2,357 Other intangibles 319,623 39,658 196,780 9,389 Goodwill 200,274 14,524 336,677 113,813 Total assets $ 14,898,051 $ 19,755,508 $ 21,038,307 $ 2,131,822 Asset Protection Corporate and Other Adjustments Total Consolidated Investments and other assets $ 897,326 $ 9,583,991 $ — $ 65,552,315 Deferred policy acquisition costs and value of business acquired 36,856 — — 1,558,808 Other intangibles 79,681 — — 645,131 Goodwill 67,155 — — 732,443 Total assets $ 1,081,018 $ 9,583,991 $ — $ 68,488,697 Predecessor Company Operating Segment Assets As of December 31, 2014 (Dollars In Thousands) Life Marketing Acquisitions Annuities Stable Value Products Investments and other assets $ 13,858,491 $ 19,858,284 $ 20,783,373 $ 1,958,867 Deferred policy acquisition costs and value of business acquired 1,973,156 600,482 684,574 621 Goodwill 10,192 29,419 — — Total assets $ 15,841,839 $ 20,488,185 $ 21,467,947 $ 1,959,488 Asset Protection Corporate and Other Adjustments Total Consolidated Investments and other assets $ 927,202 $ 9,697,154 $ — $ 67,083,371 Deferred policy acquisition costs and value of business acquired 35,418 319 — 3,294,570 Goodwill 62,671 83 — 102,365 Total assets $ 1,025,291 $ 9,697,556 $ — $ 70,480,306 |
CONSOLIDATED QUARTERLY RESULTS
CONSOLIDATED QUARTERLY RESULTS - UNAUDITED | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
CONSOLIDATED QUARTERLY RESULTS - UNAUDITED | CONSOLIDATED QUARTERLY RESULTS—UNAUDITED The Company's unaudited consolidated quarterly operating data for the period of February 1, 2015 to December 31, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company), and for the year ended December 31, 2014 (Predecessor Company) is presented below. In the opinion of management, all adjustments (consisting only of normal recurring items) necessary for a fair statement of quarterly results have been reflected in the following data. It is also management's opinion, however, that quarterly operating data for insurance enterprises are not necessarily indicative of results that may be expected in succeeding quarters or years. In order to obtain a more accurate indication of performance, there should be a review of operating results, changes in shareowner's equity, and cash flows for a period of several quarters. First Quarter (1) Second Quarter Third Quarter Fourth Quarter (Dollars In Thousands) Successor Company February 1, 2015 to December 31, 2015 Premiums and policy fees $ 509,008 $ 832,088 $ 797,741 $ 869,213 Reinsurance ceded (141,401 ) (345,244 ) (306,774 ) (361,559 ) Net of reinsurance ceded 367,607 486,844 490,967 507,654 Net investment income 288,872 436,291 440,620 467,165 Realized investment gains (losses) (1,415 ) (13,468 ) (79,306 ) (69,693 ) Other income 67,263 109,094 108,312 103,862 Total revenues 722,327 1,018,761 960,593 1,008,988 Total benefits and expenses 629,500 921,851 873,333 886,143 Income before income tax 92,827 96,910 87,260 122,845 Income tax expense 29,966 33,070 26,853 41,654 Net income $ 62,861 $ 63,840 $ 60,407 $ 81,191 (1) First quarter includes February 1, 2015 to March 31, 2015 First Second Quarter Third Quarter Fourth Quarter (Dollars In Thousands, Except Per Share Amounts) Predecessor Company For The Year Ended December 31, 2014 Premiums and policy fees $ 815,896 $ 851,802 $ 759,038 $ 871,032 Reinsurance ceded (327,713 ) (342,968 ) (277,136 ) (425,780 ) Net of reinsurance ceded 488,183 508,834 481,902 445,252 Net investment income 538,163 550,816 558,174 550,571 Realized investment gains (losses) (34,827 ) (11,238 ) 2,621 (105,307 ) Other income 99,039 106,931 105,389 119,069 Total revenues 1,090,558 1,155,343 1,148,086 1,009,585 Total benefits and expenses 965,353 993,133 963,203 898,594 Income before income tax 125,205 162,210 184,883 110,991 Income tax expense 41,566 54,233 65,974 36,641 Net income $ 83,639 $ 107,977 $ 118,909 $ 74,350 Net income—basic $ 1.05 $ 1.35 $ 1.48 $ 0.92 Average shares outstanding—basic 79,608,461 79,979,153 80,231,591 80,430,799 Net income—diluted $ 1.03 $ 1.33 $ 1.46 $ 0.91 Average shares outstanding—diluted 80,872,152 81,446,277 81,458,870 81,714,510 January 1, 2015 Predecessor Company (Dollars In Thousands, Except Per Share Amounts) Premiums and policy fees $ 261,866 Reinsurance ceded (89,956 ) Net of reinsurance ceded 171,910 Net investment income 175,180 Realized investment gains (losses) (42,602 ) Other income 36,421 Total revenues 340,909 Total benefits and expenses 339,727 Income before income tax 1,182 Income tax benefit (327 ) Net income $ 1,509 Net income - basic $ 0.02 Average shares outstanding - basic 80,452,848 Net income - diluted $ 0.02 Average shares outstanding - diluted 81,759,287 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On January 15, 2016, PLICO completed the transaction contemplated by the Master Agreement with GLAIC. Pursuant to the Master Agreement, on January 15, 2016, PLICO entered into a reinsurance agreement (the “Reinsurance Agreement”) under the terms of which PLICO coinsures certain term life insurance business of GLAIC (the “GLAIC Block”). In connection with the reinsurance transaction, on January 15, 2016, Golden Gate Captive Insurance Company (“Golden Gate”), a wholly owned subsidiary of PLICO, and Steel City, LLC (“Steel City”), a newly formed wholly owned subsidiary of the Company, entered into an 18 -year transaction to finance $2.188 billion of “XXX” reserves related to the acquired GLAIC Block and the other term life insurance business reinsured to Golden Gate by PLICO and West Coast Life Insurance Company ("WCL"), a direct wholly owned subsidiary of PLICO. Steel City issued notes with an aggregate initial principal amount of $2.188 billion to Golden Gate in exchange for a surplus note issued by Golden Gate with an initial principal amount of $2.188 billion . Through the structure, Hannover Life Reassurance Company of America (Bermuda) Ltd., The Canada Life Assurance Company (Barbados Branch) and Nomura Americas Re Ltd. (collectively, the “Risk-Takers”) provide credit enhancement to the Steel City notes for the 18 -year term in exchange for credit enhancement fees. The transaction is “non-recourse” to PLICO, WCL and the Company, meaning that none of these companies are liable to reimburse the Risk-Takers for any credit enhancement payments required to be made. In connection with the transaction, the Company has entered into certain support agreements under which it guarantees or otherwise supports certain obligations of Golden Gate or Steel City, including a guarantee of the fees to the Risk-Takers. The estimated average annual expense of the credit enhancement under generally accepted accounting principles is approximately $3.1 million , after-tax. As a result of the financing transaction described above, the $800 million of Golden Gate Series A Surplus Notes held by the Company were contributed to PLICO and then subsequently contributed to Golden Gate, which resulted in the extinguishment of these notes. Also on January 15, 2016, Golden Gate paid an extraordinary dividend of $300 million to PLICO as approved by the Vermont Department of Financial Regulation. The Company has evaluated the effects of events subsequent to December 31, 2015 (Successor Company), and through the date we filed our consolidated financial statements with the United States Securities and Exchange Commission. All accounting and disclosure requirements related to subsequent events are included in our consolidated financial statements. |
SCHEDULE II - CONDENSED FINANCI
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | SCHEDULE II—CONDENSED FINANCIAL INFORMATION OF REGISTRANT STATEMENTS OF INCOME PROTECTIVE LIFE CORPORATION (Parent Company) Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended to to December 31, December 31, 2015 January 31, 2015 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Revenues Dividends from subsidiaries* $ 32,365 $ 16 $ 301,314 $ 86,420 Service fees from subsidiaries* 220,105 19,530 213,093 178,420 Net investment income 49,925 4,809 64,776 65,389 Realized investment gains (losses) 3,817 (15,863 ) (2,786 ) 15,040 Other income 44 — 6 194 Total revenues 306,256 8,492 576,403 345,463 Expenses Operating and administrative 121,433 8,549 116,517 99,400 Interest—subordinated debt 17,191 2,823 33,873 33,873 Interest—other 40,596 6,113 84,528 90,636 Total expenses 179,220 17,485 234,918 223,909 Income (loss) before income tax and other items below 127,036 (8,993 ) 341,485 121,554 Income tax (benefit) expense Current (58,547 ) 6,376 10,605 35,250 Deferred 99,146 (11,123 ) 8,798 (16,936 ) Total income tax expense (benefit) 40,599 (4,747 ) 19,403 18,314 Income (loss) before equity in undistributed income from subsidiaries* 86,437 (4,246 ) 322,082 103,240 Equity in undistributed income of subsidiaries 181,862 5,755 62,793 290,224 Net income $ 268,299 $ 1,509 $ 384,875 $ 393,464 See Notes to Consolidated Financial Statements * Eliminated in Consolidation SCHEDULE II—CONDENSED FINANCIAL INFORMATION OF REGISTRANT STATEMENTS OF COMPREHENSIVE INCOME (LOSS) PROTECTIVE LIFE CORPORATION (Parent Company) Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended to to December 31, December 31, 2015 January 31, 2015 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Net income $ 268,299 $ 1,509 $ 384,875 $ 393,464 Total other comprehensive income (loss) $ (1,241,134 ) $ 465,968 $ 924,010 $ (1,242,656 ) Total comprehensive income (loss) $ (972,835 ) $ 467,477 $ 1,308,885 $ (849,192 ) See Notes to Consolidated Financial Statements * Eliminated in Consolidation SCHEDULE II—CONDENSED FINANCIAL INFORMATION OF REGISTRANT BALANCE SHEETS PROTECTIVE LIFE CORPORATION (Parent Company) Successor Company Predecessor Company As of As of December 31, 2015 December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Assets Fixed maturities $ 54,637 $ 53,349 Equity securities 39,338 46,441 Surplus notes from affiliate 1,148,237 800,000 Investments in subsidiaries (equity method)* 5,403,025 5,993,218 Total investments 6,645,237 6,893,008 Cash 68,615 62,465 Receivables from subsidiaries* 24,781 6,940 Property and equipment, net 1,189 1,017 Goodwill — 10,275 Income tax receivable 13,170 — Deferred income tax 152,683 13,949 Other assets 21,395 32,649 Total assets $ 6,927,070 $ 7,020,303 Liabilities Accrued expenses and other liabilities $ 308,277 $ 190,900 Accrued income taxes — 23,926 Debt 1,588,806 1,300,000 Subordinated debt securities 448,763 540,593 Total liabilities 2,345,846 2,055,419 Commitments and contingencies—Note 3 Shareowner's equity Preferred stock Common stock — 44,388 Additional paid-in-capital 5,554,059 606,125 Treasury stock — (185,705 ) Retained earnings, including undistributed income of subsidiaries: (2015 Successor - $181,862; 2014 Predecessor - $3,267,715) 268,299 3,082,000 Accumulated other comprehensive income (loss): Net unrealized gains on investments, all from subsidiaries, net of income tax: (2015 Successor - $(671,285); 2014 Predecessor - $796,960) (1,246,672 ) 1,480,068 Net unrealized gains (losses) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings, net of income tax; (2015 Successor - $(212); 2014 Predecessor - $2,208) (393 ) 4,101 Accumulated gain (loss)—derivatives, net of income tax: (2015 Successor - $0; 2014 Predecessor - $(45)) — (82 ) Postretirement benefits liability adjustment, net of income tax: (2015 Successor - $3,194; 2014 Predecessor - $(35,545)) 5,931 (66,011 ) Total shareowner's equity 4,581,224 4,964,884 Total liabilities and shareowner's equity $ 6,927,070 $ 7,020,303 See Notes to Consolidated Financial Statements * Eliminated in Consolidation SCHEDULE II—CONDENSED FINANCIAL INFORMATION OF REGISTRANT STATEMENTS OF CASH FLOWS PROTECTIVE LIFE CORPORATION (Parent Company) Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended to to December 31, December 31, 2015 January 31, 2015 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Cash flows from operating activities Net income $ 268,299 $ 1,509 $ 384,875 $ 393,464 Adjustments to reconcile net income to net cash provided by operating activities: Realized investment (gains) losses (3,817 ) 15,863 2,786 (15,040 ) Equity in undistributed net income of subsidiaries* (181,862 ) (5,755 ) (62,793 ) (290,224 ) Depreciation expense 363 23 279 151 Receivables from subsidiaries* (13,759 ) (4,076 ) 17,990 (15,918 ) Income tax receivable (13,170 ) — — — Deferred income taxes 99,146 (11,123 ) 8,798 (16,936 ) Accrued income taxes (23,246 ) 5,875 196 231 Accrued expenses and other liabilities (192,234 ) 18,329 17,648 5,124 Other, net 5,419 (2,334 ) 14,192 12,948 Net cash (used in) provided by operating activities (54,861 ) 18,311 383,971 73,800 Cash flows from investing activities Maturities and principal reductions of investments, available-for-sale — — 1,298 — Sale of investments, available-for-sale — — — — Cost of investments acquired, available-for-sale — — (7,011 ) (47,477 ) Return of and/or (additional) capital investments in subsidiaries 110,793 — (3,654 ) (141,242 ) Purchase of property and equipment — — (62 ) (1,346 ) Net cash provided by (used in) investing activities 110,793 — (9,429 ) (190,065 ) Cash flows from financing activities Borrowings under line of credit arrangements and debt 330,000 — 500,000 605,000 Principal payments on line of credit arrangements and debt (338,093 ) (60,000 ) (785,000 ) (420,000 ) Payments to affiliates* — — — (14,500 ) Dividends to shareowners — — (72,697 ) (61,186 ) Withholdings of share-based payment arrangements settled in cash — — (32,173 ) — Excess tax benefits from share-based payment arrangements — — 20,948 — Other financing activities, net — — — — Net cash (used in) provided by financing activities (8,093 ) (60,000 ) (368,922 ) 109,314 Change in cash 47,839 (41,689 ) 5,620 (6,951 ) Cash at beginning of year 20,776 62,465 56,845 63,796 Cash at end of year $ 68,615 $ 20,776 $ 62,465 $ 56,845 See Notes to Consolidated Financial Statements *Eliminated in Consolidation SCHEDULE II—CONDENSED FINANCIAL INFORMATION OF REGISTRANT PROTECTIVE LIFE CORPORATION (Parent Company) NOTES TO CONDENSED FINANCIAL INFORMATION The Company publishes consolidated financial statements that are its primary financial statements. Therefore, this parent company condensed financial information is not intended to be the primary financial statements of the Company, and should be read in conjunction with the consolidated financial statements and notes, including the discussion of significant accounting policies, thereto of Protective Life Corporation and subsidiaries. BASIS OF PRESENTATION Nature of Operations On February 1, 2015, Protective Life Corporation (the "Company") became a wholly owned subsidiary of The Dai-ichi Life Insurance Company, Limited, a kabushiki kaisha organized under the laws of Japan ("Dai-ichi Life"), when Dai-ichi Life purchased all outstanding shares of the Company's stock. Prior to February 1, 2015, and for the periods this report presents, the Company's stock was publicly traded on the New York Stock Exchange. The Company is a holding company with subsidiaries that provide financial services through the production, distribution, and administration of insurance and investment products. The Company markets individual life insurance, credit life and disability insurance, guaranteed investment contracts, guaranteed funding agreements, fixed and variable annuities, and extended service contracts throughout the United States. The Company also maintains a separate segment devoted to the acquisition of insurance policies from other companies. Founded in 1907, Protective Life Insurance Company ("PLICO") is the Company's largest operating subsidiary. The Merger was accounted for by the Company under the acquisition method of accounting under Accounting Standards Codification ("ASC") Topic 805 Business Combinations . In accordance with ASC Topic 805-20-30, all identifiable assets acquired and liabilities assumed were measured at fair value as of the acquisition date. The Company elected to apply “pushdown” accounting by applying the guidance allowed by ASC Topic 805, Business Combinations , including the initial recognition of most of the Company’s assets and liabilities at fair value as of the acquisition date, and similarly recognizing goodwill calculated based on the terms of the transaction and the fair value of the new basis of net assets of the Company. The new basis of accounting will be the basis of the accounting records in the preparation of future financial statements and related disclosures after the Merger date. Goodwill of $735.7 million was recorded as of the acquisition date which represents the cost in excess of the fair value of net assets acquired (including identifiable intangibles) in the Merger, and reflects the Company’s assembled workforce, future growth potential and other sources of value not associated with identifiable assets. During the measurement period subsequent to February 1, 2015, the Company has made adjustments to provisional amounts related to certain tax balances that resulted in a decrease to goodwill of $3.3 million from the amount recorded at the Merger date. The balance of goodwill associated with the Merger as of December 31, 2015 (Successor Company) is $732.4 million . In conjunction with the Company’s election to apply “pushdown” accounting the entire amount of goodwill and other identifiable intangible assets were allocated to PLICO. This was supported by the fact that PLICO is the primary operating subsidiary of the Company and the workforce, distribution and sales organization, current and future policy and portfolio cash flows, and other items for which the transaction was primarily based are consistent between PLICO and Company. As such, the entire balance of goodwill as of December 31, 2015 (Successor Company) of $732.4 million is included in the new basis of net assets of PLICO. The new basis of accounting will be the basis of the accounting records in the preparation of future financial statements and related disclosures after the Merger date. The accompanying condensed financial statements of the Company should be read in conjunction with the consolidated financial statements and notes thereto of Protective Life Corporation and subsidiaries included in this Annual Report on Form 10-K filed with the United States Securities and Exchange Commission. For the year ended December 31, 2013 (Predecessor Company), the Company revised certain amounts in the accompanying Statements of Income (Parent Company) due to an error which resulted in an adjustment to income tax expense and an offsetting adjustment to equity in undistributed income from subsidiaries. Total income tax expense (benefit) decreased by $36.6 million for the year ended December 31, 2013 (Predecessor Company). Equity in undistributed income of subsidiaries decreased by $36.6 million for the year ended December 31, 2013 (Predecessor Company). Net income for the year ended December 31, 2013 was unaffected by the adjustment. In addition, a revision was made to the Statement of Cash Flows (Parent Company). Within the cash flows from operating activities for the year ended December 31, 2013 (Predecessor Company), Equity in undistributed net income of subsidiaries increased by $36.6 million , Deferred income taxes increased by $33.9 million , Accrued expenses and other liabilities decreased by $25.4 million , and Other, net decreased by $33.9 million . Within the cash flows from investing activities for the year ended December 31, 2013 , Purchase of and/or additional investments in subsidiaries decreased by $11.2 million . The net change in cash and the beginning of year and end of year cash balances were unchanged as of December 31, 2013 (Predecessor Company). The Company performed a qualitative and quantitative analysis and determined that these adjustments were immaterial to the previously issued financial statements. To ensure the periods presented were comparable the Company made the decision to revise prior period amounts, as presented within the current period financial statement presentation. The Company performed a qualitative and quantitative analysis and determined that these revisions did not have a material impact on these financial statements, however to ensure the prior years presented were comparable to the current year the adjustments described above were recorded in the financial statements included herein. DEBT AND OTHER OBLIGATIONS Debt and Subordinated Debt Securities Debt and subordinated debt securities are summarized as follows: Successor Company Predecessor Company As of December 31, 2015 As of December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Debt (year of issue): Revolving Line Of Credit $ 485,000 $ 450,000 6.40% Senior Notes (2007), due 2018 162,671 150,000 7.375% Senior Notes (2009), due 2019 473,127 400,000 8.45% Senior Notes (2009), due 2039 468,008 300,000 $ 1,588,806 $ 1,300,000 Subordinated debt securities (year of issue): 6.125% Subordinated Debentures (2004), due 2034, callable 2009 $ — $ 103,093 6.25% Subordinated Debentures (2012), due 2042, callable 2017 295,833 287,500 6.00% Subordinated Debentures (2012), due 2042, callable 2017 152,930 150,000 $ 448,763 $ 540,593 The Company's future maturities of debt, excluding notes payable to banks and subordinated debt securities, are $162.7 million in 2018, $473.1 million in 2019, and $468.0 million thereafter. During the period of February 1, 2015 to December 31, 2015 (Successor Company), the Company called and redeemed the entire $103.1 million of outstanding principal amount of the Company's 6.125% Subordinated Debentures due 2034. During 2014 (Predecessor Company), the Company announced that it had issued notice to redeem the entire $100.0 million outstanding principal amount of the Company's 8.00% Senior Notes issued on October 9, 2009. The payment in respect of the redemption of the Senior Notes was made on October 15, 2014. In conjunction with this redemption, the Company wrote off $2.4 million of deferred issue costs. During 2014 (Predecessor Company), $150.0 million of the Company's Senior Notes matured and were paid in full, along with applicable accrued interest. Under a revolving line of credit arrangement that was in effect until February 2, 2015 (the "Credit Facility"), the Company had the ability to borrow on an unsecured basis up to an aggregate principal amount of $750 million . The Company had the right in certain circumstances to request that the commitment under the Credit Facility be increased up to a maximum principal amount of $1.0 billion . Balances outstanding under the Credit Facility accrued interest at a rate equal to, at the option of the Borrowers, (i) LIBOR plus a spread based on the ratings of the Company's senior unsecured long-term debt ("Senior Debt"), or (ii) the sum of (A) a rate equal to the highest of (x) the Administrative Agent's prime rate, (y) 0.50% above the Federal Funds rate, or (z) the one-month LIBOR plus 1.00% and (B) a spread based on the ratings of our Senior Debt. The Credit Facility also provided for a facility fee at a rate, 0.175% , that could vary with the ratings of the Company's Senior Debt and that was calculated on the aggregate amount of commitments under the Credit Facility, whether used or unused. The Credit Facility provided that the Company was liable for the full amount of any obligations for borrowings or letters of credit, including those of PLICO, under the Credit Facility. The maturity date of the Credit Facility was July 17, 2017. The Company was not aware of any non-compliance with the financial debt covenants of the Credit Facility as of December 31, 2014 (Predecessor Company). There was an outstanding balance of $450.0 million bearing interest at a rate of LIBOR plus 1.20% under the Credit Facility as of December 31, 2014 (Predecessor Company). As of December 31, 2014 (Predecessor Company), PLICO had used $55.0 million of borrowing capacity by executing a Letter of Credit under the Credit Facility for the benefit of an affiliated captive reinsurance subsidiary of the Company. This Letter of Credit had not been drawn upon as of December 31, 2014 (Predecessor Company). On February 2, 2015, the Company amended and restated the Credit Facility (the "2015 Credit Facility"). Under the 2015 Credit Facility, the Company has the ability to borrow on an unsecured basis up to an aggregate principal amount of $1.0 billion . The Company has the right in certain circumstances to request that the commitment under the 2015 Credit Facility be increased up to a maximum principal amount of $1.25 billion . Balances outstanding under the 2015 Credit Facility accrue interest at a rate equal to, at the option of the Borrowers, (i) LIBOR plus a spread based on the ratings of the Company's Senior Debt, or (ii) the sum of (A) a rate equal to the highest of (x) the Administrative Agent's prime rate , (y) 0.50% above the Federal Funds rate , or (z) the one-month LIBOR plus 1.00% and (B) a spread based on the ratings of our Senior Debt. The 2015 Credit Facility also provided for a facility fee at a rate that varies with the ratings of the Company's Senior Debt and that is calculated on the aggregate amount of commitments under the 2015 Credit Facility, whether used or unused. The initial facility fee rate was 0.15% on February 2, 2015, and was adjusted to 0.125% upon our subsequent ratings upgrade on February 2, 2015. The 2015 Credit Facility provides that the Company is liable for the full amount of any obligations for borrowings or letters of credit, including those of PLICO, under the 2015 Credit Facility. The maturity date of the 2015 Credit Facility is February 2, 2020. The Company is not aware of any non-compliance with the financial debt covenants of the Credit Facility as of February 2, 2015 or the 2015 Credit Facility as of December 31, 2015 (Successor Company). There was an outstanding balance of $485.0 million bearing interest at a rate of LIBOR plus 1.00% when the Credit Facility was amended and restated by the 2015 Credit Facility on February 2, 2015. As of December 31, 2015 (Successor Company), the $55.0 million Letter of Credit by PLICO was no longer issued and outstanding. In December 2007, the Company issued a new series of debt securities of $150.0 million of 6.40% Senior Notes due 2018 (the "Senior Notes"), from which net proceeds of approximately $148.7 million were received. Under the terms of the Senior Notes, interest on the Senior Notes is payable semi-annually in arrears on January 15 and July 15. The maturity date is January 15, 2018. On October 9, 2009, the Company closed on offerings of $400 million of its 7.375% Senior Notes due in 2019, $100 million of its 8.00% Senior Notes due in 2024, and $300 million of its 8.45% Senior Notes due in 2039, for an aggregate principal amount of $800 million . These senior notes were offered and sold pursuant to the Company's shelf registration statement on Form S-3. The Company used the net proceeds from the offering of the Notes to purchase $800 million in aggregate principal amount of newly-issued surplus notes of Golden Gate. Golden Gate used a portion of the proceeds from the sale of the surplus notes to the Company to repurchase, at a discount, $800 million in aggregate principal amount of its outstanding Series A floating rate surplus notes that were held by third parties. As a result of these transactions, the Company is the sole holder of the total $800.0 million of outstanding Golden Gate surplus notes, which is eliminated at the consolidated level. During 2012, the Company issued $287.5 million of its 6.25% Subordinated Debentures due in 2042. These Subordinated Debentures were offered and sold pursuant to the Company's shelf registration statement on Form S-3. The Company used the net proceeds from the offering to call $103.1 million of Subordinated Debentures due 2031, $118.6 million of Subordinated Debentures due in 2032 and $75.0 million of Capital Securities due in 2066 at par value. The transaction resulted in an expense of $7.2 million , for the year ended December 31, 2012, related the write off of deferred issue costs associated with the called Debentures. During 2012, the Company issued $150.0 million of its 6.00% Subordinated Debentures due in 2042. These Subordinated Debentures were offered and sold pursuant to the Company's shelf registration statement on Form S-3. The Company used the net proceeds from the offering to call $125.0 million of Capital Securities due in 2066 at par value and the remaining for general working capital purposes. The transaction resulted in an expense of $4.0 million related to the write off of deferred issue costs associated with the called Debentures. During 2013, the Company's 4.30% Senior Notes issued in 2003 matured. The maturity resulted in the payment of $250.0 million of principal to the holders of the senior notes on June 2, 2013. The Company borrowed an additional from its Credit Facility to finance the final principal payment. Interest Expense Interest expense on long-term debt and subordinated debt securities totaled $57.8 million , $8.9 million , $118.4 million , and $124.5 million for the periods of February 1, 2015 to December 31, 2015 (Successor Company), January 1, 2015 to January 31, 2015 (Predecessor Company) and for the years ended December 31 2014 , and 2013 (Predecessor Company), respectively. COMMITMENTS AND CONTINGENCIES The Company has entered into indemnity agreements with each of its current directors that provide, among other things and subject to certain limitations, a contractual right to indemnification to the fullest extent permissible under the law. The Company has agreements with certain of its officers providing up to $10 million in indemnification. These obligations are in addition to the customary obligation to indemnify officers and directors contained in the Company's governance documents. The Company leases a building contiguous to its home office. The lease was renewed in December 2013 and was extended to December 2018. At the end of the lease term, the Company may purchase the building for approximately $75 million . Monthly rental payments are based on the current LIBOR rate plus a spread. The following is a schedule by year of future minimum rental payments required under this lease: Year Amount (Dollars In Thousands) 2016 $ 1,385 2017 1,381 2018 76,356 In connection with the issuance of non-recourse funding obligations by Golden Gate Captive Insurance Company ("Golden Gate"), a wholly owned subsidiary of Protective Life Insurance Company ("PLICO"), PLC's largest subsidiary, the Company has agreed to indemnify Golden Gate for certain costs and obligations (which obligations do not include payment of principal and interest on the notes). In addition, the Company has entered into certain support agreements with Golden Gate obligating the Company to make capital contributions to Golden Gate or provide support related to certain of Golden Gate's expenses and in certain circumstances, to collateralize certain of the Company's obligations to Golden Gate. Golden Gate II Captive Insurance Company Golden Gate II Captive Insurance Company ("Golden Gate II"), a South Carolina special purpose financial captive insurance company wholly owned by PLICO, had $575 million of outstanding non-recourse funding obligations as of December 31, 2015 (Successor Company). These outstanding non-recourse funding obligations were issued to special purpose trusts, which in turn issued securities to third parties. Certain of our affiliates own a portion of these securities. As of December 31, 2015 (Successor Company), securities related to $144.9 million of the outstanding balance of the non-recourse funding obligations were held by external parties and securities related to $430.1 million of the non-recourse funding obligations were held by the Company and our affiliates. The Company has entered into certain support agreements with Golden Gate II obligating the Company to make capital contributions or provide support related to certain of Golden Gate II's expenses and in certain circumstances, to collateralize certain of the Company's obligations to Golden Gate II. These support agreements provide that amounts would become payable by the Company to Golden Gate II if its annual general corporate expenses were higher than modeled amounts or if Golden Gate II's investment income on certain investments or premium income was below certain actuarially determined amounts. In addition, at the time Golden Gate II sold surplus notes for deposits into certain Delaware Trusts (the "Trusts") which in turn issued securities (the "Securities"), the Company agreed, under certain circumstances, to make certain liquidity advances to the Trusts not in excess of specified amounts of assets held in a reinsurance trust of which PLICO is the beneficiary and Golden Gate II is the grantor in the event that the Trusts do not have sufficient funds available to fully redeem the Securities at the stated maturity date. The obligation to make any such liquidity advance is subject to it having a first priority security interest in the residual interest in such reinsurance trust and in the surplus notes. As of December 31, 2015 (Successor Company), no payments have been made under these agreements. Golden Gate III Vermont Captive Insurance Company Golden Gate III Vermont Captive Insurance Company ("Golden Gate III"), a Vermont special purpose financial insurance company and wholly owned subsidiary of PLICO, is party to a Reimbursement Agreement (the "Reimbursement Agreement") with UBS AG, Stamford Branch ("UBS"), as issuing lender. Under the original Reimbursement Agreement, dated April 23, 2010, UBS issued a letter of credit (the "LOC") in the initial amount of $505 million to a trust for the benefit of WCL. The Reimbursement Agreement was subsequently amended and restated effective November 21, 2011 (the "First Amended and Restated Reimbursement Agreement"), to replace the existing LOC with one or more letters of credit from UBS, and to extend the maturity date from April 1, 2018, to April 1, 2022. On August 7, 2013, Golden Gate III entered into a Second Amended and Restated Reimbursement Agreement with UBS (the "Second Amended and Restated Reimbursement Agreement"), which amended and restated the First Amended and Restated Reimbursement Agreement. Under the Second and Amended and Restated Reimbursement Agreement a new LOC in an initial amount of $710 million was issued by UBS in replacement of the existing LOC issued under the First Amended and Restated Reimbursement Agreement. The term of the LOC was extended from April 1, 2022 to October 1, 2023, subject to certain conditions being satisfied including scheduled capital contributions being made to Golden Gate III by one of its affiliates. The maximum stated amount of the LOC was increased from $610 million to $720 million in 2015 if certain conditions had been met. On June 25, 2014, Golden Gate III entered into a Third Amended and Restated Reimbursement Agreement with UBS (the "Third Amended and Restated Reimbursement Agreement"), which amended and restated the Second Amended and Restated Reimbursement Agreement. Under the Third Amended and Restated Reimbursement Agreement, a new LOC in an initial amount of $915 million was issued by UBS in replacement of the existing LOC issued under the Second Amended and Restated Reimbursement Agreement. The term of the LOC was extended from October 1, 2023 to April 1, 2025, subject to certain conditions being satisfied including scheduled capital contributions being made to Golden Gate III by one of its affiliates. The maximum stated amount of the LOC was increased from $720 million to $935 million in 2015. The LOC is held in trust for the benefit of WCL, and supports certain obligations of Golden Gate III to WCL under an indemnity reinsurance agreement originally effective April 1, 2010, as amended and restated on November 21, 2011, and as further amended and restated on August 7, 2013 and on June 25, 2014 to include additional blocks of policies, and pursuant to which WCL cedes liabilities relating to the policies of WCL and retrocedes liabilities relating to the policies of PLICO. The LOC balance was $935 million as of December 31, 2015 (Successor Company). The amount of the LOC was periodically increased up to a maximum of $935 million in 2015. The term of the LOC is expected to be approximately 15 years from the original issuance date. This transaction is "non-recourse" to WCL, PLICO, and the Company, meaning that none of these companies other than Golden Gate III are liable for reimbursement on a draw of the LOC. The Company has entered into certain support agreements with Golden Gate III obligating the Company to make capital contributions or provide support related to certain of Golden Gate III's expenses and in certain circumstances, to collateralize certain of the Company's obligations to Golden Gate III. Future scheduled capital contributions amount to approximately $122.5 million and will be paid in three installments with the last payment occurring in 2021, and these contributions may be subject to potential offset against dividend payments as permitted under the terms of the Third Amended and Restated Reimbursement Agreement. The support agreements provide that amounts would become payable by the Company to Golden Gate III if its annual general corporate expenses were higher than modeled amounts or if specified catastrophic losses occur during defined time periods with respect to the policies reinsured by Golden Gate III. Pursuant to the terms of an amended and restated letter agreement with UBS, the Company has continued to guarantee the payment of fees to UBS as specified in the Third Amended and Restated Reimbursement Agreement. As of December 31, 2015 (Successor Company), no payments have been made under these agreements. Golden Gate IV Vermont Captive Insurance Company Golden Gate IV Vermont Captive Insurance Company ("Golden Gate IV"), a Vermont special purpose financial insurance company and wholly owned subsidiary of PLICO, is party to a Reimbursement Agreement with UBS AG, Stamford Branch, as issuing lender. Under the Reimbursement Agreement, dated December 10, 2010, UBS issued an LOC in the initial amount of $270 million to a trust for the benefit of WCL. The LOC balance increased, in accordance with the terms of the Reimbursement Agreement, during 2015 and was $780 million as of December 31, 2015 (Successor Company). Subject to certain conditions, the amount of the LOC will be periodically increased up to a maximum of $790 million in 2016. The term of the LOC is expected to be 12 years from the original issuance date (stated maturity of December 30, 2022). The LOC was issued to support certain obligations of Golden Gate IV to WCL under an indemnity reinsurance agreement, pursuant to which WCL cedes liabilities relating to the policies of WCL and retrocedes liabilities relating to the policies of PLICO. This transaction is "non-recourse" to WCL, PLICO, and the Company, meaning that none of these companies other than Golden Gate IV are liable for reimbursement on a draw of the LOC. The Company has entered into certain support agreements with Golden Gate IV obligating the Company to make capital contributions or provide support related to certain of Golden Gate IV's expenses and in certain circumstances, to collateralize certain of the Company's obligations to Golden Gate IV. The support agreements provide that amounts would become payable by the Company to Golden Gate IV if its annual general corporate expenses were higher than modeled amounts or if specified catastrophic losses occur during defined time periods with respect to the policies reinsured by Golden Gate IV. The Company has also entered into a separate agreement to guarantee the payments of LOC fees under the terms of the Reimbursement Agreement. As of December 31, 2015 (Successor Company), no payments have been made under these agreements. On October 10, 2012, |
SCHEDULE III - SUPPLEMENTARY IN
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION | 12 Months Ended |
Dec. 31, 2015 | |
Supplementary Insurance Information [Abstract] | |
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION | SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION PROTECTIVE LIFE CORPORATION AND SUBSIDIARIES Segment Deferred Policy Acquisition Costs and Value of Businesses Acquired Future Policy Benefits and Claims Unearned Premiums Stable Value Products, Annuity Contracts and Other Policyholders' Funds Net Premiums and Policy Fees Net Investment Income(1) Benefits and Settlement Expenses Amortization of Deferred Policy Acquisitions Costs and Value of Businesses Acquired Other Operating Expenses (1) Premiums Written (2) (Dollars In Thousands) Successor Company February 1, 2015 to December 31, 2015 Life Marketing $ 1,119,515 $ 13,869,102 $ 135 $ 371,618 $ 882,171 $ 446,439 $ 1,109,840 $ 107,811 $ 165,317 $ 148 Acquisitions (178,662 ) 14,508,877 3,082 4,254,579 690,741 639,422 1,067,482 2,035 89,960 32,134 Annuities 578,742 1,196,131 — 7,090,171 138,146 297,114 226,824 (41,071 ) 125,946 — Stable Value Products 2,357 — — 2,131,822 — 78,459 19,348 43 2,620 — Asset Protection 36,856 61,291 719,516 — 128,338 17,459 101,881 25,211 113,974 121,427 Corporate and Other — 68,496 803 73,066 13,676 154,055 14,568 27 179,011 13,583 Total $ 1,558,808 $ 29,703,897 $ 723,536 $ 13,921,256 $ 1,853,072 $ 1,632,948 $ 2,539,943 $ 94,056 $ 676,828 $ 167,292 Predecessor Company For The Year Ended December 31, 2014: Life Marketing $ 1,973,156 $ 14,077,360 $ 722,880 $ 349,698 $ 854,186 $ 554,004 $ 1,075,386 $ 175,807 $ 169,373 $ 151 Acquisitions 600,482 14,740,562 3,473 4,770,181 772,020 874,653 1,247,836 60,031 122,349 35,857 Annuities 684,574 1,015,928 120,850 7,190,908 149,825 465,845 316,449 (4,651 ) 118,632 — Stable Value Products 621 — — 1,959,488 — 107,170 35,559 380 1,413 — Asset Protection 35,418 47,376 675,984 — 131,678 22,703 96,379 25,257 121,895 123,413 Corporate and Other 319 63,664 890 70,267 16,462 173,349 20,001 485 237,702 16,389 Total $ 3,294,570 $ 29,944,890 $ 1,524,077 $ 14,340,542 $ 1,924,171 $ 2,197,724 $ 2,791,610 $ 257,309 $ 771,364 $ 175,810 For The Year Ended December 31, 2013: Life Marketing $ 2,071,470 $ 13,504,869 $ 812,929 $ 311,290 $ 796,109 $ 521,665 $ 1,143,132 $ 25,774 $ 163,174 $ 173 Acquisitions 799,255 15,112,574 4,680 4,734,487 519,477 617,298 851,386 72,762 78,244 24,781 Annuities 647,485 1,037,348 102,734 7,228,119 132,317 468,322 319,420 62,834 112,620 — Stable Value Products 1,001 — — 2,559,552 — 123,798 41,793 398 1,805 — Asset Protection 50,358 49,729 628,176 1,556 138,404 23,179 101,696 30,505 119,321 130,225 Corporate and Other 646 67,805 1,296 64,181 18,149 163,819 22,330 625 220,807 18,141 Total $ 3,570,215 $ 29,772,325 $ 1,549,815 $ 14,899,185 $ 1,604,456 $ 1,918,081 $ 2,479,757 $ 192,898 $ 695,971 $ 173,320 (1) Allocations of Net Investment Income and Other Operating Expenses are based on a number of assumptions and estimates and results would change if different methods were applied. (2) Excludes Life Insurance SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION PROTECTIVE LIFE CORPORATION AND SUBSIDIARIES (continued) Segment Net Premiums and Policy Fees Net Investment Income (1) Benefits and Settlement Expenses Amortization of Deferred Policy Acquisitions Costs and Value of Businesses Acquired Other Operating Expenses (1) Premiums Written (2) (Dollars In Thousands) Predecessor Company January 1, 2015 to January 31, 2015 Life Marketing $ 84,926 $ 47,460 $ 123,179 $ 4,813 $ 18,705 $ 12 Acquisitions 62,343 71,088 101,926 5,033 9,041 2,133 Annuities 12,473 37,189 30,613 (7,706 ) 9,926 — Stable Value Products — 6,888 2,255 25 79 — Asset Protection 10,825 1,878 7,592 1,820 10,121 10,172 Corporate and Other 1,343 10,677 1,722 87 20,496 1,346 Total $ 171,910 $ 175,180 $ 267,287 $ 4,072 $ 68,368 $ 13,663 (1) Allocations of Net Investment Income and Other Operating Expenses are based on a number of assumptions and estimates and results would change if different methods were applied. (2) Excludes Life Insurance |
SCHEDULE IV - REINSURANCE
SCHEDULE IV - REINSURANCE | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |
SCHEDULE IV - REINSURANCE | SCHEDULE IV—REINSURANCE PROTECTIVE LIFE CORPORATION AND SUBSIDIARIES Successor Company Gross Amount Ceded to Other Companies Assumed from Other Companies Net Amount Percentage of Amount Assumed to Net (Dollars In Thousands) February 1, 2015 to December 31, 2015 Life insurance in-force $ 727,705,256 $ (368,142,294 ) $ 39,546,742 $ 399,109,704 9.9 % Premiums and policy fees: Life insurance 2,360,643 (983,143 ) 308,280 1,685,780 (1) 18.3 % Accident/health insurance 70,243 (36,871 ) 18,252 51,624 35.4 Property and liability insurance 243,728 (134,964 ) 6,904 115,668 6.0 Total $ 2,674,614 $ (1,154,978 ) $ 333,436 $ 1,853,072 Predecessor Company Gross Amount Ceded to Other Companies Assumed from Other Companies Net Amount Percentage of Amount Assumed to Net (Dollars In Thousands) January 1, 2015 to January 31, 2015 (2) Premiums and policy fees: Life insurance 204,185 (74,539 ) 28,601 158,247 (1) 18.1 % Accident/health insurance 6,846 (4,621 ) 1,809 4,034 44.8 Property and liability insurance 19,759 (10,796 ) 666 9,629 6.9 Total $ 230,790 $ (89,956 ) $ 31,076 $ 171,910 For The Year Ended December 31, 2014: Life insurance in-force $ 721,036,332 $ (388,890,060 ) $ 43,237,358 $ 375,383,630 11.5 % Premiums and policy fees: Life insurance 2,603,956 (1,205,528 ) 349,934 1,748,362 (1) 20.0 % Accident/health insurance 81,037 (42,741 ) 20,804 59,100 35.2 Property and liability insurance 233,362 (125,328 ) 8,675 116,709 7.4 Total $ 2,918,355 $ (1,373,597 ) $ 379,413 $ 1,924,171 For The Year Ended December 31, 2013: Life insurance in-force $ 726,697,151 $ (416,809,287 ) $ 46,752,176 $ 356,640,040 13.1 % Premiums and policy fees: Life insurance 2,371,872 (1,247,657 ) 306,920 1,431,135 (1) 21.5 % Accident/health insurance 45,263 (20,011 ) 24,291 49,543 49.0 Property and liability insurance 225,327 (109,527 ) 7,978 123,778 6.5 Total $ 2,642,462 $ (1,377,195 ) $ 339,189 $ 1,604,456 (1) Includes annuity policy fees of $152.8 million , $13.9 million $167.1 million , and $140.7 million for the period of February 1, 2015 to December 31, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company) and for the years ended December 31, 2014 , and 2013 (Predecessor Company), respectively. (2) January 31, 2015 (Predecessor Company) balance sheet information is not presented in our consolidated financial statements, therefore January 31, 2015 Life Insurance In-Force has been omitted from this schedule. |
SCHEDULE V - VALUATION AND QUAL
SCHEDULE V - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE V - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE V—VALUATION AND QUALIFYING ACCOUNTS PROTECTIVE LIFE CORPORATION AND SUBSIDIARIES Successor Company Additions Description Balance at beginning of period Charged to costs and expenses Charges to other accounts Deductions Balance at end of period (Dollars In Thousands) As of December 31, 2015 Allowance for losses on commercial mortgage loans $ — $ 2,561 $ — $ (2,561 ) $ — Predecessor Company Additions Description Balance at beginning of period Charged to Charges Deductions Balance (Dollars In Thousands) As of January 31, 2015 Allowance for losses on commercial mortgage loans $ 5,720 $ (2,359 ) $ — $ (861 ) $ 2,500 As of December 31, 2014 Allowance for losses on commercial mortgage loans $ 3,130 $ 3,265 $ — $ (675 ) $ 5,720 |
SUMMARY OF SIGNIFICANT ACCOUN43
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation On February 1, 2015, Protective Life Corporation (the "Company") became a wholly owned subsidiary of The Dai-ichi Life Insurance Company, Limited, a kabushiki kaisha organized under the laws of Japan ("Dai-ichi Life"), when DL Investment (Delaware), Inc., a wholly owned subsidiary of Dai-ichi Life, merged with and into the Company. Prior to February 1, 2015, and for the periods reported as "predecessor", the Company's stock was publicly traded on the New York Stock Exchange. Subsequent to the Merger date, the Company remains an SEC registrant within the United States. The Company is a holding company with subsidiaries that provide financial services through the production, distribution, and administration of insurance and investment products. The Company markets individual life insurance, credit life and disability insurance, guaranteed investment contracts, guaranteed funding agreements, fixed and variable annuities, and extended service contracts throughout the United States. The Company also maintains a separate segment devoted to the acquisition of insurance policies from other companies. Founded in 1907, Protective Life Insurance Company ("PLICO") is the Company's largest operating subsidiary. The Merger was accounted for by the Company under the acquisition method of accounting under ASC Topic 805 Business Combinations . In accordance with ASC Topic 805-20-30, all identifiable assets acquired and liabilities assumed were measured at fair value as of the acquisition date. The Company elected to apply “pushdown” accounting by applying the guidance allowed by ASC Topic 805, Business Combinations , including the initial recognition of most of the Company’s assets and liabilities at fair value as of the acquisition date, and similarly recognizing goodwill calculated based on the terms of the transaction and the fair value of the new basis of net assets of the Company. The new basis of accounting will be the basis of the accounting records in the preparation of future financial statements and related disclosures after the Merger date. Goodwill of $735.7 million was recorded as of the acquisition date which represents the cost in excess of the fair value of net assets acquired (including identifiable intangibles) in the Merger, and reflects the Company’s assembled workforce, future growth potential and other sources of value not associated with identifiable assets. During the measurement period subsequent to February 1, 2015, the Company has made adjustments to provisional amounts related to certain tax balances that resulted in a decrease to goodwill of $3.3 million from the amount recorded at the Merger date. The balance of goodwill associated with the Merger as of December 31, 2015 (Successor Company) is $732.4 million . These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Such accounting principles differ from statutory reporting practices used by insurance companies in reporting to state regulatory authorities (see also Note 22, Statutory Reporting Practices and Other Regulatory Matters ). The operating results of companies in the insurance industry have historically been subject to significant fluctuations due to changing competition, economic conditions, interest rates, investment performance, insurance ratings, claims, persistency, and other factors. |
Entities Included | Entities Included The consolidated financial statements include the accounts of Protective Life Corporation and subsidiaries and its affiliate companies in which the Company holds a majority voting or economic interest. Intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining deferred policy acquisition costs ("DAC") and related amortization periods, goodwill recoverability, value of business acquired ("VOBA"), investment and certain derivatives fair values, other-than-temporary impairments, future policy benefits, pension and other postretirement benefits, provisions for income taxes, reserves for contingent liabilities, reinsurance risk transfer assessments, and reserves for losses in connection with unresolved legal matters. |
Valuation of Investment Securities | Valuation of Investment Securities The Company determines the appropriate classification of investment securities at the time of purchase and periodically re-evaluates such designations. Investment securities are classified as either trading, available-for-sale, or held-to-maturity securities. Investment securities classified as trading are recorded at fair value with changes in fair value recorded in realized gains (losses). Investment securities purchased for long term investment purposes are classified as available-for-sale and are recorded at fair value with changes in unrealized gains and losses, net of taxes, reported as a component of other comprehensive income (loss). Investment securities are classified as held-to-maturity when the Company has the intent and ability to hold the securities to maturity and are reported at amortized cost. Interest income on available-for-sale and held-to-maturity securities includes the amortization of premiums and accretion of discounts and are recorded in investment income. The fair value of fixed maturity, short-term, and equity securities is determined by management after considering one of three primary sources of information: third party pricing services, non-binding independent broker quotations, or pricing matrices. Security pricing is applied using a "waterfall" approach whereby publicly available prices are first sought from third party pricing services, the remaining unpriced securities are submitted to independent brokers for non-binding prices, or lastly, securities are priced using a pricing matrix. Typical inputs used by these three pricing methods include, but are not limited to: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. Based on the typical trading volumes and the lack of quoted market prices for available-for-sale and trading fixed maturities, third party pricing services derive the majority of security prices from observable market inputs such as recent reported trades for identical or similar securities making adjustments through the reporting date based upon available market observable information as outlined above. If there are no recent reported trades, the third party pricing services and brokers may use matrix or model processes to develop a security price where future cash flow expectations are developed based upon collateral performance and discounted at an estimated market rate. Certain securities are priced via independent non-binding broker quotations, which are considered to have no significant unobservable inputs. When using non-binding independent broker quotations, the Company obtains one quote per security, typically from the broker from which the Company purchased the security. A pricing matrix is used to price securities for which the Company is unable to obtain or effectively rely on either a price from a third party service or an independent broker quotation. Included in the pricing of other asset-backed securities, collateralized mortgage obligations ("CMOs"), and mortgage-backed securities ("MBS") are estimates of the rate of future prepayments of principal and underlying collateral support over the remaining life of the securities. Such estimates are derived based on the characteristics of the underlying structure and rates of prepayments previously experienced at the interest rate levels projected for the underlying collateral. The basis for the cost of securities sold was determined at the Committee on Uniform Securities Identification Procedures ("CUSIP") level. The committee supplies a unique nine-character identification, called a CUSIP number, for each class of security approved for trading in the U.S., to facilitate clearing and settlement. These numbers are used when any buy and sell orders are recorded. Each quarter the Company reviews investments with unrealized losses and tests for other-than-temporary impairments. The Company analyzes various factors to determine if any specific other-than-temporary asset impairments exist. These include, but are not limited to: 1) actions taken by rating agencies, 2) default by the issuer, 3) the significance of the decline, 4) an assessment of the Company's intent to sell the security (including a more likely than not assessment of whether the Company will be required to sell the security) before recovering the security's amortized cost, 5) the duration of the decline, 6) an economic analysis of the issuer's industry, and 7) the financial strength, liquidity, and recoverability of the issuer. Management performs a security by security review each quarter in evaluating the need for any other-than-temporary impairments. Although no set formula is used in this process, the investment performance, collateral position, and continued viability of the issuer are significant measures considered, and in some cases, an analysis regarding the Company's expectations for recovery of the security's entire amortized cost basis through the receipt of future cash flows is performed. Once a determination has been made that a specific other-than-temporary impairment exists, the security's basis is adjusted and an other-than-temporary impairment is recognized. Equity securities that are other-than-temporarily impaired are written down to fair value with a realized loss recognized in earnings. Other-than-temporary impairments to debt securities that the Company does not intend to sell and does not expect to be required to sell before recovering the security's amortized cost are written down to discounted expected future cash flows ("post impairment cost") and credit losses are recorded in earnings. The difference between the securities' discounted expected future cash flows and the fair value of the securities on the impairment date is recognized in other comprehensive income (loss) as a non-credit portion impairment. When calculating the post impairment cost for residential mortgage-backed securities ("RMBS"), commercial mortgage-backed securities ("CMBS"), and other asset-backed securities (collectively referred to as asset-backed securities or "ABS"), the Company considers all known market data related to cash flows to estimate future cash flows. When calculating the post impairment cost for corporate debt securities, the Company considers all contractual cash flows to estimate expected future cash flows. To calculate the post impairment cost, the expected future cash flows are discounted at the original purchase yield. Debt securities that the Company intends to sell or expects to be required to sell before recovery are written down to fair value with the change recognized in earnings. |
Cash | Cash Cash includes all demand deposits reduced by the amount of outstanding checks and drafts. As a result of the Company's cash management system, checks issued from a particular bank but not yet presented for payment may create negative book cash balances with the bank. Such negative balances are included in other liabilities and was $70.3 million as of December 31, 2015 (Successor Company) and was immaterial as of December 31, 2014 (Predecessor Company), respectively. The Company has deposits with certain financial institutions which exceed federally insured limits. The Company has reviewed the creditworthiness of these financial institutions and believes there is minimal risk of a material loss. |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs The incremental direct costs associated with successfully acquired insurance policies, are deferred to the extent such costs are deemed recoverable from future profits. Such costs include commissions and other costs of acquiring traditional life and health insurance, credit insurance, universal life insurance, and investment products. DAC are subject to recoverability testing at the end of each accounting period. Traditional life and health insurance acquisition costs are amortized over the premium-payment period of the related policies in proportion to the ratio of annual premium income to the present value of the total anticipated premium income. Credit insurance acquisition costs are being amortized in proportion to earned premium. Acquisition costs for universal life and investment products are amortized over the lives of the policies in relation to the present value of estimated gross profits before amortization. The Company makes certain assumptions regarding the mortality, persistency, expenses, and interest rates (equal to the rate used to compute liabilities for future policy benefits, currently 1.0% to 8% ) the Company expects to experience in future periods when determining the present value of estimated gross profits. These assumptions are best estimates and are periodically updated whenever actual experience and/or expectations for the future change from that assumed. Additionally, these costs have been adjusted by an amount equal to the amortization that would have been recorded if unrealized gains or losses on investments associated with our universal life and investment products had been realized. Acquisition costs for stable value contracts are amortized over the term of the contracts using the effective yield method. |
Value of Businesses Acquired | Value of Businesses Acquired In conjunction with the Merger, a portion of the purchase price was allocated to the right to receive future gross profits from cash flows and earnings of the Company's insurance policies and investment contracts as of the date of the Merger. This intangible asset, called VOBA, is based on the actuarially estimated present value of future cash flows from the Company's insurance policies and investment contracts in-force on the date of the Merger. The estimated present value of future cash flows used in the calculation of the VOBA is based on certain assumptions, including mortality, persistency, expenses, and interest rates that the Company expects to experience in future years. The Company amortizes VOBA in proportion to gross premiums for traditional life products, or estimated gross margins ("EGMs") for participating traditional life products within the MONY Life Insurance Company ("MONY") block. For interest sensitive products, the Company uses various amortization bases including expected gross profits ("EGPs"), revenues, or insurance in-force. VOBA is subject to annual recoverability testing. |
Intangible Assets | Intangible Assets Intangible assets with definite lives are amortized over the estimated useful life of the asset and reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Amortizable intangible assets primarily consist of distribution relationships, trade names, and technology. Intangible assets with indefinite lives, primarily insurance licenses, are not amortized, but are reviewed for impairment on an annual basis or whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. |
Property and Equipment | Property and Equipment In conjunction with the Merger, property and equipment was recorded at fair value as of the Merger date and will be depreciated from this basis in future periods based on the respective estimated useful lives. Real estate assets were recorded at appraised values as of the acquisition date. The Company has estimated the remaining useful life of the home office building to be 25 years. Land is not depreciated. The Company depreciates its assets using the straight-line method over the estimated useful lives of the assets. The Company's furniture is depreciated over a ten year useful life, office equipment and machines are depreciated over a five year useful life, and software and computers are depreciated over a three year useful life. Major repairs or improvements are capitalized and depreciated over the estimated useful lives of the assets. Other repairs are expensed as incurred. The cost and related accumulated depreciation of property and equipment sold or retired are removed from the accounts, and resulting gains or losses are included in income. |
Separate Accounts | Separate Accounts The separate account assets represent funds for which the Company does not bear the investment risk. These assets are carried at fair value and are equal to the separate account liabilities, which represent the policyholder's equity in those assets. The investment income and investment gains and losses on the separate account assets accrue directly to the policyholder. These amounts are reported separately as assets and liabilities related to separate accounts in the accompanying consolidated financial statements. Amounts assessed against policy account balances for the costs of insurance, policy administration, and other services are included in premiums and policy fees in the accompanying consolidated statements of income. |
Stable Value Product Account Balances | Stable Value Product Account Balances The Stable Value Products segment sells fixed and floating rate funding agreements directly to the trustees of municipal bond proceeds, money market funds, bank trust departments, and other institutional investors. The segment also issues funding agreements to the Federal Home Loan Bank ("FHLB"), and markets guaranteed investment contracts ("GICs") to 401(k) and other qualified retirement savings plans. GICs are contracts which specify a return on deposits for a specified period and often provide flexibility for withdrawals at book value in keeping with the benefits provided by the plan. During 2015, the Company terminated its funding agreement-backed notes program registered with the United States Securities and Exchange Commission (the “SEC”) and, on October 2, 2015, established an unregistered funding agreement-backed notes program. The segment's products complement the Company's overall asset/liability management in that the terms may be tailored to the needs of PLICO as the seller of the contracts. Stable value product account balances include GICs and funding agreements the Company has issued. As of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), the Company had $400.7 million and $39.8 million , respectively, of stable value product account balances marketed through structured programs. Most GICs and funding agreements the Company has written have maturities of one to ten years . |
Derivative Financial Instruments | Derivative Financial Instruments The Company records its derivative financial instruments in the consolidated balance sheet in "other long-term investments" and "other liabilities" in accordance with GAAP, which requires that all derivative instruments be recognized in the balance sheet at fair value. The change in the fair value of derivative financial instruments is reported either in the statement of income or in the other comprehensive income (loss), depending upon whether the derivative instrument qualified for and also has been properly identified as being part of a hedging relationship, and also on the type of hedging relationship that exists. For cash flow hedges, the effective portion of their gain or loss is reported as a component of other comprehensive income (loss) and reclassified into earnings in the period during which the hedged item impacts earnings. Any remaining gain or loss, the ineffective portion, is recognized in current earnings. For fair value hedge derivatives, their gain or loss as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings. Effectiveness of the Company's hedge relationships is assessed on a quarterly basis. The Company reports changes in fair values of derivatives that are not part of a qualifying hedge relationship in earnings. Changes in the fair value of derivatives that are recognized in current earnings are reported in "Realized investment gains (losses)—Derivative financial instruments". For additional information, see Note 24, Derivative Financial Instruments . |
Insurance Liabilities and Reserves | Insurance Liabilities and Reserves Establishing an adequate liability for the Company's obligations to policyholders requires the use of certain assumptions. Estimating liabilities for future policy benefits on life and health insurance products requires the use of assumptions relative to future investment yields, mortality, morbidity, persistency, and other assumptions based on the Company's historical experience, modified as necessary to reflect anticipated trends and to include provisions for possible adverse deviation. Determining liabilities for the Company's property and casualty insurance products also requires the use of assumptions, including the projected levels of used vehicle prices, the frequency and severity of claims, and the effectiveness of internal processes designed to reduce the level of claims. The Company's results depend significantly upon the extent to which its actual claims experience is consistent with the assumptions the Company used in determining its reserves and pricing its products. The Company's reserve assumptions and estimates require significant judgment and, therefore, are inherently uncertain. The Company cannot determine with precision the ultimate amounts that it will pay for actual claims or the timing of those payments. |
Guaranteed Minimum Withdrawal Benefits | Guaranteed Minimum Withdrawal Benefits The Company also establishes reserves for guaranteed minimum withdrawal benefits (“GMWB”) on its variable annuity (“VA”) products. The GMWB is valued in accordance with FASB guidance under the ASC Derivatives and Hedging Topic which utilizes the valuation technique prescribed by the ASC Fair Value Measurements and Disclosures Topic, which requires the embedded derivative to be recorded at fair value using current implied volatilities for the equity indices. The fair value of the GMWB is impacted by equity market conditions and can result in the GMWB embedded derivative being in an overall net asset or net liability position. In times of favorable equity market conditions the likelihood and severity of claims is reduced and expected fee income increases. Since claims are generally expected later than fees, these favorable equity market conditions can result in the present value of fees being greater than the present value of claims, which results in a net GMWB embedded derivative asset. In times of unfavorable equity market conditions the likelihood and severity of claims is increased and expected fee income decreases and can result in the present value of claims exceeding the present value of fees resulting in a net GMWB embedded derivative liability. The methods used to estimate the embedded derivatives employ assumptions about mortality, lapses, policyholder behavior, equity market returns, interest rates, and market volatility. The Company assumes age-based mortality from the National Association of Insurance Commissioners 1994 Variable Annuity MGDB Mortality Table for company experience. Differences between the actual experience and the assumptions used result in variances in profit and could result in losses. In conjunction with the Merger, the Company updated the fair value of the GMWB reserves to reflect current assumptions as of February 1, 2015 (Successor Company). As a result of the application of ASC Topic 805, the Company reset the hedge premium rates utilized in the valuation for all policies to be equal to the present value of future claims with the reset hedge premium rates being capped at the actual charges to the policyholder. This update resulted in a decrease in the net liability of approximately $266.1 million on the Merger date. As of December 31, 2015 (Successor Company), our net GMWB liability held was $181.6 million . |
Goodwill | Goodwill Accounting for goodwill requires an estimate of the future profitability of the associated lines of business to assess the recoverability of the capitalized acquisition goodwill. The Company evaluates the carrying value of goodwill at the segment (or reporting unit) level at least annually and between annual evaluations if events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. Such circumstances could include, but are not limited to: 1) a significant adverse change in legal factors or in business climate, 2) unanticipated competition, or 3) an adverse action or assessment by a regulator. When evaluating whether goodwill is impaired, the Company first determines through qualitative analysis whether relevant events and circumstances indicate that it is more likely than not that segment goodwill balances are impaired as of the testing date. If it is determined that it is more likely than not that impairment exists, the Company compares its estimate of the fair value of the reporting unit to which the goodwill is assigned to the reporting unit's carrying amount, including goodwill. The Company utilizes a fair value measurement (which includes a discounted cash flows analysis) to assess the carrying value of the reporting units in consideration of the recoverability of the goodwill balance assigned to each reporting unit as of the measurement date. The Company's material goodwill balances are attributable to certain of its operating segments (which are each considered to be reporting units). The cash flows used to determine the fair value of the Company's reporting units are dependent on a number of significant assumptions. The Company's estimates, which consider a market participant view of fair value, are subject to change given the inherent uncertainty in predicting future results and cash flows, which are impacted by such things as policyholder behavior, competitor pricing, capital limitations, new product introductions, and specific industry and market conditions. On the date of the Merger, goodwill of $735.7 million was recognized as the excess of the purchase considerations over the fair value of identifiable assets acquired and liabilities assumed. During the measurement period subsequent to February 1, 2015, the Company has made adjustments to provisional amounts related to certain tax balances that resulted in a decrease to goodwill of $3.3 million from the amount recorded at the Merger date. The balance of goodwill associated with the Merger as of December 31, 2015 (Successor Company) is $732.4 million . The balance recognized as goodwill is not amortized, but is reviewed for impairment on an annual basis, or more frequently as events or circumstances may warrant, including those circumstances which would more likely than not reduce the fair value of the Company’s reporting units below its carrying amount. During the fourth quarter of 2015 , the Company performed its annual evaluation of goodwill based on information as of September 30, 2015 (Successor Company) and determined that no adjustment to impair goodwill was necessary. The Company has assessed whether events have occurred subsequent to September 30, 2015 that would impact the Company's conclusion and no such events were identified. As of December 31, 2015 (Successor Company), we had goodwill of $732.4 million . |
Income Taxes | Income Taxes The Company uses the asset and liability method of accounting for income taxes. In general, income tax provisions are based on the income reported for financial statement purposes. Deferred income taxes arise from the recognition of temporary differences between the basis of assets and liabilities determined for financial reporting purposes and the basis determined for income tax purposes. Such temporary differences are principally related to net unrealized gains (losses), deferred policy acquisition costs and value of business acquired, and future policy benefits and claims. The Company analyzes whether it needs to establish a valuation allowance on each of its deferred tax assets. In performing this analysis, the Company first considers the need for a valuation allowance on each separate deferred tax asset. Ultimately, it analyzes this need in the aggregate in order to prevent the double-counting of expected future taxable income in each of the foregoing separate analyses. |
Variable Interest Entities | Variable Interest Entities The Company holds certain investments in entities in which its ownership interests could possibly be considered variable interests under Topic 810 of the FASB ASC (excluding debt and equity securities held as trading, available for sale, or held to maturity). The Company reviews the characteristics of each of these applicable entities and compares those characteristics to applicable criteria to determine whether the entity is a Variable Interest Entity ("VIE"). If the entity is determined to be a VIE, the Company then performs a detailed review to determine whether the interest would be considered a variable interest under the guidance. The Company then performs a qualitative review of all variable interests with the entity and determines whether the Company is the primary beneficiary. ASC 810 provides that an entity is the primary beneficiary of a VIE if the entity has 1) the power to direct the activities of the VIE that most significantly impact the VIE's economic performance, and 2) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE. For more information on the Company's investment in a VIE refer to Note 6, Investment Operations, to the consolidated financial statements. |
Policyholder Liabilities, Revenues and Benefits Expense | Universal Life and Investment Products Universal life and investment products include universal life insurance, guaranteed investment contracts, guaranteed funding agreements, deferred annuities, and annuities without life contingencies. Premiums and policy fees for universal life and investment products consist of fees that have been assessed against policy account balances for the costs of insurance, policy administration, and surrenders. Such fees are recognized when assessed and earned. Benefit reserves for universal life and investment products represent policy account balances before applicable surrender charges plus certain deferred policy initiation fees that are recognized in income over the term of the policies. Policy benefits and claims that are charged to expense include benefit claims incurred in the period in excess of related policy account balances and interest credited to policy account balances. Interest rates credited to universal life products ranged from 1.0% to 8.75% and investment products ranged from 0.2% to 9.8% in 2015 . The Company establishes liabilities for fixed indexed annuity ("FIA") products. These products are deferred fixed annuities with a guaranteed minimum interest rate plus a contingent return based on equity market performance. The FIA product is considered a hybrid financial instrument under the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC" or "Codification") Topic 815 - Derivatives and Hedging which allows the Company to make the election to value the liabilities of these FIA products at fair value. This election was made for the FIA products issued prior to 2010 as the policies were issued. These products are no longer being marketed. The future changes in the fair value of the liability for these FIA products are recorded in Benefit and settlement expenses with the liability being recorded in Annuity account balances . For more information regarding the determination of fair value of annuity account balances please refer to Note 23, Fair Value of Financial Instruments . Premiums and policy fees for these FIA products consist of fees that have been assessed against the policy account balances for surrenders. Such fees are recognized when assessed and earned. The Company currently markets a deferred fixed annuity with a guaranteed minimum interest rate plus a contingent return based on equity market performance and the products are considered hybrid financial instruments under the FASB's ASC Topic 815 - Derivatives and Hedging . The Company did not elect to value these FIA products at fair value prior to the Merger date. As a result, the Company accounts for the provision that provides for a contingent return based on equity market performance as an embedded derivative. The embedded derivative is bifurcated from the host contract and recorded at fair value in Other liabilities . Changes in the fair value of the embedded derivative are recorded in Realized investment gains (losses) - Derivative financial instruments . For more information regarding the determination of fair value of the FIA embedded derivative refer to Note 23, Fair Value of Financial Instruments . The host contract is accounted for as a debt instrument in accordance with ASC Topic 944 - Financial Services—Insurance and is recorded in Annuity account balances with any discount to the minimum account value being accreted using the effective yield method. Benefits and settlement expenses include accreted interest and benefit claims incurred during the period. The Company markets universal life products with a guaranteed minimum interest rate plus a contingent return based on equity market performance and are considered hybrid financial instruments under the FASB's ASC Topic 815 - Derivatives and Hedging . The Company did not elect to value these IUL products at fair value prior to the Merger date. As a result, the Company accounts for the provision that provides for a contingent return based on equity market performance as an embedded derivative. The embedded derivative is bifurcated from the host contract and recorded at fair value in Other liabilities . Changes in the fair value of the embedded derivative are recorded in Realized investment gains (losses) - Derivative financial instruments . For more information regarding the determination of fair value of the IUL embedded derivative refer to Note 23, Fair Value of Financial Instruments . The host contract is accounted for as a debt instrument in accordance with ASC Topic 944 - Financial Services - Insurance and is recorded in Future policy benefits and claims with any discount to the minimum account value being accreted using the effective yield method. Benefits and settlement expenses include accreted interest and benefit claims incurred during the period. The Company's accounting policies with respect to variable universal life ("VUL") and VA are identical except that policy account balances (excluding account balances that earn a fixed rate) are valued at fair value and reported as components of assets and liabilities related to separate accounts. The Company establishes liabilities for guaranteed minimum death benefits ("GMDB") on its VA products. The methods used to estimate the liabilities employ assumptions about mortality and the performance of equity markets. The Company assumes age-based mortality from the National Association of Insurance Commissioners 1994 Variable Annuity MGDB Mortality Table for company experience. Future declines in the equity market would increase the Company's GMDB liability. Differences between the actual experience and the assumptions used result in variances in profit and could result in losses. Our GMDB, as of December 31, 2015 (Successor Company), are subject to a dollar-for-dollar reduction upon withdrawal of related annuity deposits on contracts issued prior to January 1, 2003. As of December 31, 2015 (Successor Company), the GMDB reserve was $36.4 million . Property and Casualty Insurance Products Property and casualty insurance products include service contract business, surety bonds, and guaranteed asset protection ("GAP"). Premiums for service contracts and GAP products are recognized based on expected claim patterns. For all other products, premiums are generally recognized over the terms of the contract on a pro-rata basis. Fee income from providing administrative services is recognized as earned when the related services are performed. Unearned premium reserves are maintained for the portion of the premiums that is related to the unexpired period of the policy. Benefit reserves are recorded when insured events occur. Benefit reserves include case basis reserves for known but unpaid claims as of the balance sheet date as well as incurred but not reported ("IBNR") reserves for claims where the insured event has occurred but has not been reported to the Company as of the balance sheet date. The case basis reserves and IBNR are calculated based on historical experience and on assumptions relating to claim severity and frequency, the level of used vehicle prices, and other factors. These assumptions are modified as necessary to reflect anticipated trends. Policyholder Liabilities, Revenues, and Benefits Expense Traditional Life, Health, and Credit Insurance Products Traditional life insurance products consist principally of those products with fixed and guaranteed premiums and benefits, and they include whole life insurance policies, term and term-like life insurance policies, limited payment life insurance policies, and certain annuities with life contingencies. In accordance with ASC 805, the liabilities for future policy benefits on traditional life insurance products, when combined with the associated VOBA, were recorded at fair value on the date of the Merger. These values were computed using assumptions that include interest rates, mortality, lapse rates, expense estimates, and other assumptions based on the Company's experience, modified as necessary to reflect anticipated trends and to include provisions for possible adverse deviation. Liabilities for future policy benefits on traditional life insurance products have been computed using a net level method including assumptions as to investment yields, mortality, persistency, and other assumptions based on the Company's experience, modified as necessary to reflect anticipated trends and to include provisions for possible adverse deviation. Reserve investment yield assumptions on December 31, 2015 (Successor Company), range from approximately 2.8% to 4.5% . The liability for future policy benefits and claims on traditional life, health, and credit insurance products includes estimated unpaid claims that have been reported to us and claims incurred but not yet reported. Policy claims are charged to expense in the period in which the claims are incurred. Traditional life insurance premiums are recognized as revenue when due. Health and credit insurance premiums are recognized as revenue over the terms of the policies. Benefits and expenses are associated with earned premiums so that profits are recognized over the life of the contracts. This is accomplished by means of the provision for liabilities for future policy benefits and the amortization of DAC and VOBA. Gross premiums in excess of net premiums related to immediate annuities are deferred and recognized over the life of the policy. |
Reinsurance | Reinsurance The Company uses reinsurance extensively in certain of its segments and accounts for reinsurance and the recognition of the impact of reinsurance costs in accordance with the ASC Financial Services - Insurance Topic. The following summarizes some of the key aspects of the Company's accounting policies for reinsurance. Reinsurance Accounting Methodology —Ceded premiums of the Company's traditional life insurance products are treated as an offset to direct premium and policy fee revenue and are recognized when due to the assuming company. Ceded claims are treated as an offset to direct benefits and settlement expenses and are recognized when the claim is incurred on a direct basis. Ceded policy reserve changes are also treated as an offset to benefits and settlement expenses and are recognized during the applicable financial reporting period. Expense allowances paid by the assuming companies which are allocable to the current period are treated as an offset to other operating expenses. Since reinsurance treaties typically provide for allowance percentages that decrease over the lifetime of a policy, allowances in excess of the "ultimate" or final level allowance are capitalized. Amortization of capitalized reinsurance expense allowances representing recovery of acquisition costs is treated as an offset to direct amortization of DAC or VOBA. Amortization of deferred expense allowances is calculated as a level percentage of expected premiums in all durations given expected future lapses and mortality and accretion due to interest. The Company utilizes reinsurance on certain short duration insurance contracts (primarily issued through the Asset Protection segment). As part of these reinsurance transactions the Company receives reinsurance allowances which reimburse the Company for acquisition costs such as commissions and premium taxes. A ceding fee is also collected to cover other administrative costs and profits for the Company. As a component of reinsurance costs, reinsurance allowances are accounted for in accordance with the relevant provisions of ASC Financial Services—Insurance Topic, which state that reinsurance costs should be amortized over the contract period of the reinsurance if the contract is short-duration. Accordingly, reinsurance allowances received related to short-duration contracts are capitalized and charged to expense in proportion to premiums earned. Ceded unamortized acquisition costs are netted with direct unamortized acquisition costs in the balance sheet. Ceded premiums and policy fees on the Company's fixed universal life ("UL"), VUL, bank-owned life insurance ("BOLI"), and annuity products reduce premiums and policy fees recognized by the Company. Ceded claims are treated as an offset to direct benefits and settlement expenses and are recognized when the claim is incurred on a direct basis. Ceded policy reserve changes are also treated as an offset to benefits and settlement expenses and are recognized during the applicable valuation period. Since reinsurance treaties typically provide for allowance percentages that decrease over the lifetime of a policy, allowances in excess of the "ultimate" or final level allowance are capitalized. Amortization of capitalized reinsurance expense allowances are amortized based on future expected gross profits. Assumptions regarding mortality, lapses, and interest rates are continuously reviewed and may be periodically changed. These changes will result in "unlocking" that changes the balance in the ceded deferred acquisition cost and can affect the amortization of DAC and VOBA. Ceded unearned revenue liabilities are also amortized based on expected gross profits. Assumptions are based on the best current estimate of expected mortality, lapses and interest spread. The Company has also assumed certain policy risks written by other insurance companies through reinsurance agreements. Premiums and policy fees as well as Benefits and settlement expenses include amounts assumed under reinsurance agreements and are net of reinsurance ceded. Assumed reinsurance is accounted for in accordance with ASC Financial Services—Insurance Topic. Reinsurance Allowances—Long-Duration Contracts —Reinsurance allowances are intended to reimburse the ceding company for some portion of the ceding company's commissions, expenses, and taxes. The amount and timing of reinsurance allowances (both first year and renewal allowances) are contractually determined by the applicable reinsurance contract and do not necessarily bear a relationship to the amount and incidence of expenses actually paid by the ceding company in any given year. Ultimate reinsurance allowances are defined as the lowest allowance percentage paid by the reinsurer in any policy duration over the lifetime of a universal life policy (or through the end of the level term period for a traditional life policy). Ultimate reinsurance allowances are determined during the negotiation of each reinsurance agreement and will differ between agreements. The Company determines its "cost of reinsurance" to include amounts paid to the reinsurer (ceded premiums) net of amounts reimbursed by the reinsurer (in the form of allowances). As noted within ASC Financial Services—Insurance Topic, "The difference, if any, between amounts paid for a reinsurance contract and the amount of the liabilities for policy benefits relating to the underlying reinsured contracts is part of the estimated cost to be amortized." The Company's policy is to amortize the cost of reinsurance over the life of the underlying reinsured contracts (for long-duration policies) in a manner consistent with the way in which benefits and expenses on the underlying contracts are recognized. For the Company's long-duration contracts, it is the Company's practice to defer reinsurance allowances as a component of the cost of reinsurance and recognize the portion related to the recovery of acquisition costs as a reduction of applicable unamortized acquisition costs in such a manner that net acquisition costs are capitalized and charged to expense in proportion to net revenue recognized. The remaining balance of reinsurance allowances are included as a component of the cost of reinsurance and those allowances which are allocable to the current period are recorded as an offset to operating expenses in the current period consistent with the recognition of benefits and expenses on the underlying reinsured contracts. This practice is consistent with the Company's practice of capitalizing direct expenses (e.g. commissions), and results in the recognition of reinsurance allowances on a systematic basis over the life of the reinsured policies on a basis consistent with the way in which acquisition costs on the underlying reinsured contracts would be recognized. In some cases reinsurance allowances allocable to the current period may exceed non-deferred direct costs, which may cause net other operating expenses (related to specific contracts) to be negative. Amortization of Reinsurance Allowances —Reinsurance allowances do not affect the methodology used to amortize DAC and VOBA, or the period over which such DAC and VOBA are amortized. Reinsurance allowances offset the direct expenses capitalized, reducing the net amount that is capitalized. DAC and VOBA on traditional life policies are amortized based on the pattern of estimated gross premiums of the policies in force. Reinsurance allowances do not affect the gross premiums, so therefore they do not impact traditional life amortization patterns. DAC and VOBA on universal life products are amortized based on the pattern of estimated gross profits of the policies in force. Reinsurance allowances are considered in the determination of estimated gross profits, and therefore do impact amortization patterns. Reinsurance Assets and Liabilities —Claim liabilities and policy benefits are calculated consistently for all policies, regardless of whether or not the policy is reinsured. Once the claim liabilities and policy benefits for the underlying policies are estimated, the amounts recoverable from the reinsurers are estimated based on a number of factors including the terms of the reinsurance contracts, historical payment patterns of reinsurance partners, and the financial strength and credit worthiness of reinsurance partners and recorded as Reinsurance receivables on the balance sheet. The reinsurance receivables were recorded in the balance sheet using current accounting policies and the most current assumptions as of the Merger date. As of the Merger date, the Company also calculated the ceded VOBA associated with the reinsured policies. The reinsurance receivables combined with the associated ceded VOBA represent the fair value of the reinsurance assets. Liabilities for unpaid reinsurance claims are produced from claims and reinsurance system records, which contain the relevant terms of the individual reinsurance contracts. The Company monitors claims due from reinsurers to ensure that balances are settled on a timely basis. Incurred but not reported claims are reviewed by the Company's actuarial staff to ensure that appropriate amounts are ceded. The Company analyzes and monitors the credit worthiness of each of its reinsurance partners to minimize collection issues. For newly executed reinsurance contracts with reinsurance companies that do not meet predetermined standards, the Company requires collateral such as assets held in trusts or letters of credit. Components of Reinsurance Cost —The following income statement lines are affected by reinsurance cost: Premiums and policy fees ("reinsurance ceded" on the Company's financial statements) represent consideration paid to the assuming company for accepting the ceding company's risks. Ceded premiums and policy fees increase reinsurance cost. Benefits and settlement expenses include incurred claim amounts ceded and changes in ceded policy reserves. Ceded benefits and settlement expenses decrease reinsurance cost. Amortization of deferred policy acquisition cost and VOBA reflects the amortization of capitalized reinsurance allowances representing recovery of acquisition costs. Ceded amortization decreases reinsurance cost. Other expenses include reinsurance allowances paid by assuming companies to the Company less amounts representing recovery of acquisition costs. Reinsurance allowances decrease reinsurance cost. The Company's reinsurance programs do not materially impact the other income line of the Company's income statement. In addition, net investment income generally has no direct impact on the Company's reinsurance cost. However, it should be noted that by ceding business to the assuming companies, the Company forgoes investment income on the reserves ceded to the assuming companies. Conversely, the assuming companies will receive investment income on the reserves assumed which will increase the assuming companies' profitability on business assumed from the Company. |
Accounting Pronouncements Recently and Not Yet Adopted | Accounting Pronouncements Recently Adopted Accounting Standards Update ("ASU") No. 2014-08—Reporting Discontinued Operations and Disclosure of Disposals of Components of an Entity. This Update changes the requirements for reporting discontinued operations and related disclosures. The Update limits the definition of a discontinued operation to disposals that represent "strategic shifts" that will have a major effect on an entity's operation and financial results. Additionally, the Update requires enhanced disclosures about the components of discontinued operations and the financial effects of the disposal. The amendments in this Update are effective for annual and interim periods beginning after December 15, 2014. The Company has reviewed the additional disclosures required by the Update, and will apply the revised guidance to any disposals occurring after the effective date. ASU No. 2014-11-Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. This Update changes the requirements for classification of certain repurchase agreements, and will expand the use of secured borrowing accounting for repurchase-to-maturity transactions. In addition, the Update requires additional disclosures for repurchase agreements accounted for both as sales and as secured borrowings. The amendments in this Update are effective for annual and interim periods beginning after December 15, 2014. The Update did not impact the Company’s financial position or results of operations. The Company has updated its policies and processes to ensure compliance with the additional disclosure requirements in this Update. ASU No. 2014-17-Business Combinations (Topic 805). This Update relates to “pushdown accounting”, which refers to pushing down the acquirer’s accounting and reporting basis (which is recognized in conjunction with its accounting for a business combination) to the acquiree’s standalone financial statements. The new guidance makes pushdown accounting optional for an acquiree that is a business or nonprofit activity when there is a change-in- control event (e.g., the acquirer in a business combination obtains control over the acquiree). In addition, the staff of the SEC released Staff Accounting Bulletin (“SAB”) No. 115, which rescinds SAB Topic 5J, “New Basis of Accounting Required in Certain Circumstances” (the SEC staff’s pre-existing guidance on pushdown accounting) and conforms SEC guidance on pushdown accounting to the FASB’s new guidance. Revised SEC guidance was codified in ASU No. 2015-08, issued in May 2015. The new pushdown accounting guidance became effective upon its issuance on November 18, 2014. Although now optional, the Company has applied pushdown accounting to its standalone financial statements effective with the Company becoming a wholly owned subsidiary of Dai-ichi Life on February 1, 2015. The presentation within this report for predecessor and successor periods is consistent with this Update. ASU No. 2015-16 - Business Combinations (Topic 805) - Simplifying the Accounting for Measurement-Period Adjustments. This Update provides that an acquirer must recognize adjustments to provisional amounts that are identified during the measurement period following a business combination in the reporting period in which the adjustment amounts are determined. This Update is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in the Update are to be applied prospectively for adjustments that occur after the effective date, with early adoption permitted for financial statements that have not been issued. The Company elected early adoption of the revised guidance in this Update by way of a change in accounting principle in the fourth quarter of 2015. The Company made adjustments to provisional amounts recorded as part of the Dai-ichi Merger which resulted in a decrease to goodwill of $3.3 million . See Note 9, Goodwill for more details on the measurement period adjustment. Accounting Pronouncements Not Yet Adopted ASU No. 2014-09-Revenue from Contracts with Customers (Topic 606). This Update provides for significant revisions to the recognition of revenue from contracts with customers across various industries. Under the new guidance, entities are required to apply a prescribed 5-step process to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The accounting for revenues associated with insurance products is not within the scope of this Update. The Update was originally effective for annual and interim periods beginning after December 15, 2016. However, in August 2015, the FASB issued ASU No. 2015-14 - Revenues from Contracts with Customers: Deferral of the Effective Date , to defer the effective date of ASU No. 2014-09 by one year to annual and interim periods beginning after December 15, 2017. Early adoption will be allowed, but not before the original effective date. The Company is reviewing its policies and processes to ensure compliance with the requirements in this Update, upon adoption. The Company is currently assessing the impact this standard will have on its non-insurance operations. ASU No. 2014-15-Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This Update will require management to assess an entity’s ability to continue as a going concern, and will require footnote disclosures in certain circumstances. Under the updated guidance, management should consider relevant conditions and evaluate whether it is probable that the entity will be unable to meet its obligations within one year after the issuance date of the financial statements. The Update is effective for annual periods ending December 31, 2016 and for annual and interim periods thereafter, with early adoption permitted. The amendments in this Update will not impact the Company’s financial position or results of operations. However, the new guidance will require a formal assessment of going concern by management based on criteria prescribed in the new guidance. The Company is reviewing its policies and processes to ensure compliance with the new guidance. ASU No. 2015-02-Consolidation-Amendments to the Consolidation Analysis. This Update makes several targeted changes to generally accepted accounting principles, including a) eliminating the presumption that a general partner should consolidate a limited partnership and b) eliminating the consolidation model specific to limited partnerships. The amendments also clarify when fees and related party relationships should be considered in the consolidation of variable interest entities. The amendments in this Update are effective for annual and interim periods beginning after December 15, 2015. The Company is prepared to comply with the revised guidance and does not expect a material financial or operational impact upon adoption. ASU No. 2015-03-Interest-Imputation of Interest. The objective of this Update is to eliminate diversity in practice related to the presentation of debt issuance costs. The amendments in this Update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this Update. The Update is effective for fiscal years beginning after December 15, 2015, and requires revised presentation of debt issuance costs in all periods presented in the financial statements. The Company is prepared to comply with the revised guidance and does not believe it will materially impact the presentation of the Company’s financial position. ASU No. 2015-05 - Intangibles - Goodwill and Other - Internal-Use Software. The amendments in this Update provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance will not change GAAP for a customer’s accounting for service contracts. The Update is effective for annual and interim periods beginning after December 15, 2015. The Company is prepared to comply with the revised guidance and does not believe it will materially impact the presentation of the Company’s financial position. ASU No. 2015-09 - Financial Services-Insurance (Topic 944): Disclosures about Short-Duration Contracts. The amendments in this Update require additional disclosures for short-duration contracts issued by insurance entities. The additional disclosures focus on the liability for unpaid claims and claim adjustment expenses and include incurred and paid claims development information by accident year in tabular form, along with a reconciliation of this information to the statement of financial position. For accident years included in the development tables, the amendments also require disclosure of the total incurred-but-not-reported liabilities and expected development on reported claims, along with claims frequency information unless impracticable. Finally, the amendments require disclosure of the historical average annual percentage payout of incurred claims. With the exception of the current reporting period, claims development information may be presented as supplementary information. The Update is effective for annual periods beginning after December 15, 2015 and interim periods beginning after December 15, 2016. The Company is reviewing its products to determine the applicability and potential impact of the new disclosures. ASU No. 2015-12 - Plan Accounting - (Topics 960, 962 and 965). This Update is a three-part standard that provides guidance on certain aspects of the accounting related to employee benefit plans. Part I requires an employee benefit plan to use contract value as the only measurement amount for fully-benefit responsive investment contracts. Part II simplifies and increases the effectiveness of plan investment disclosure requirements for employee benefit plans by eliminating certain disclosures related to individual investments over 5 percent and by eliminating the need to disaggregate investments in multiple ways. Part III provides a measurement-date practical expedient for plan investments when the fiscal year-end of a plan does not coincide with a month-end. The guidance is effective for fiscal years beginning after December 15, 2015 for all three parts and early adoption is permitted. For parts I and II, amendments should be applied retrospectively to all financial statements presented, while part III should be applied prospectively. The Company is reviewing its policies and procedures to ensure compliance with the revised guidance. ASU No. 2015-15 - Interest - Imputation of Interest - Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. The objective of this Update is to clarify the SEC Staff’s position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements given the lack of guidance on the topic in ASU No. 2015-03. This Update reflects the SEC Staff’s decision to not object when an entity defers and presents debt issuance costs as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement. The Company is prepared to comply with the revised guidance. ASU No. 2016-01 - Financial Instruments - Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this Update address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Most notably, the Update requires that equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) be measured at fair value with changes in fair value recognized in net income. The amendments in this Update are effective for annual and interim periods beginning after December 15, 2017. The Company is reviewing its policies and processes to ensure compliance with the revised guidance. |
SUMMARY OF SIGNIFICANT ACCOUN44
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of property and equipment | Property and equipment consisted of the following: Successor Company Predecessor Company As of December 31, 2015 As of December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Home office building $ 90,617 $ 75,109 Data processing equipment 14,607 40,919 Other, principally furniture and equipment 5,918 55,312 111,142 171,340 Accumulated depreciation (8,277 ) (118,487 ) Total property and equipment $ 102,865 $ 52,853 |
Schedule of future maturities of stable value products | As of December 31, 2015 (Successor Company), future maturities of stable value products were as follows: Year of Maturity Amount (Dollars In Millions) 2016 $ 534.7 2017 - 2018 1,068.1 2019 - 2020 451.2 Thereafter 62.3 |
Summary of activity in the liability for unpaid claims for life and health insurance | Activity in the liability for unpaid claims for life and health insurance is summarized as follows: Successor Company Predecessor Company As of December 31, As of January 31, As of December 31, 2015 2015 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Balance beginning of year $ 403,009 $ 419,401 $ 334,450 $ 326,633 Less: reinsurance 149,618 163,671 117,502 155,341 Net balance beginning of year 253,391 255,730 216,948 171,292 Incurred related to: Current year 973,175 97,573 1,075,005 698,028 Prior year 95,977 9,360 102,936 68,396 Total incurred 1,069,152 106,933 1,177,941 766,424 Paid related to: Current year 939,824 98,281 1,017,193 682,877 Prior year 111,222 10,991 121,966 85,146 Total paid 1,051,046 109,272 1,139,159 768,023 Other changes: Acquisition and reserve transfers (1) — — — 47,255 Net balance end of year 271,497 253,391 255,730 216,948 Add: reinsurance 112,537 149,618 163,671 117,502 Balance end of year $ 384,034 $ 403,009 $ 419,401 $ 334,450 (1) This amount represents the net liability, before reinsurance, for unpaid claims as of December 31, 2013 (Predecessor Company) for MONY Life Insurance Company. The claims activity from the acquisition date of October 1, 2013 through December 31, 2013 (Predecessor Company) for MONY Life Insurance Company is not reflected in this chart. |
DAI-ICHI MERGER DAI-ICHI MERGER
DAI-ICHI MERGER DAI-ICHI MERGER (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Summary of Consideration Paid and Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the consideration paid for the acquisition and the preliminary determination of the fair value of assets acquired and liabilities assumed at the acquisition date: Fair Value As of February 1, 2015 (Dollars In Thousands) Assets Fixed maturities $ 38,363,025 Equity securities 745,512 Mortgage loans 5,580,229 Investment real estate 7,456 Policy loans 1,751,872 Other long-term investments 686,507 Short-term investments 316,167 Total investments 47,450,768 Cash 462,710 Accrued investment income 484,021 Accounts and premiums receivable 112,182 Reinsurance receivables 5,724,020 Value of business acquired 1,276,886 Goodwill 735,712 Other intangibles 683,000 Property and equipment 104,364 Other assets 120,762 Income tax receivable 15,458 Assets related to separate accounts Variable annuity 12,970,587 Variable universal life 819,188 Total assets $ 70,959,658 Liabilities Future policy and benefit claims $ 30,195,841 Unearned premiums 682,183 Total policy liabilities and accruals 30,878,024 Stable value product account balances 1,932,277 Annuity account balances 10,941,661 Other policyholders' funds 1,388,083 Other liabilities 2,188,863 Deferred income taxes 1,535,556 Non-recourse funding obligations 621,798 Repurchase program borrowings 50,000 Debt 1,519,211 Subordinated debt securities 560,351 Liabilities related to separate accounts Variable annuity 12,970,587 Variable universal life 819,188 Total liabilities 65,405,599 Net assets acquired $ 5,554,059 |
Intangible Assets Recognized | Intangible assets recognized by the Company included the following (excluding goodwill): Estimated Fair Value on Estimated Acquisition Date Useful Life (Dollars In Thousands) (In Years) Distribution relationships $ 405,000 14-22 Trade names 103,000 13-17 Technology 143,000 7-14 Total intangible assets subject to amortization 651,000 Insurance licenses 32,000 Indefinite Total intangible assets $ 683,000 |
Schedule of Future Estimated Aggregated Amortization Expense | Amortizable intangible assets will be amortized straight line over their assigned useful lives. The following is a schedule of future estimated aggregate amortization expense: Year Amount (Dollars In Thousands) 2016 $ 41,313 2017 41,313 2018 41,313 2019 41,313 2020 41,313 |
MONY CLOSED BLOCK OF BUSINESS (
MONY CLOSED BLOCK OF BUSINESS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Closed Block Disclosure [Abstract] | |
Summary of financial information for the Closed Block | Summarized financial information for the Closed Block as of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company) and is as follows: Successor Company Predecessor Company As of December 31, 2015 As of December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Closed block liabilities Future policy benefits, policyholders' account balances and other policyholder liabilities $ 6,010,520 $ 6,138,505 Policyholder dividend obligation — 366,745 Other liabilities 22,917 53,838 Total closed block liabilities 6,033,437 6,559,088 Closed block assets Fixed maturities, available-for-sale, at fair value 4,426,090 4,524,037 Equity securities, available-for-sale, at fair value — 5,387 Mortgage loans on real estate 247,162 448,855 Policy loans 746,102 771,120 Cash and other invested assets 34,420 30,984 Other assets 166,445 221,270 Total closed block assets 5,620,219 6,001,653 Excess of reported closed block liabilities over closed block assets 413,218 557,435 Portion of above representing accumulated other comprehensive income: Net unrealized investments gains (losses) net of policyholder dividend obligation of $(179,360) (Successor) and $106,886 (Predecessor) (18,597 ) — Future earnings to be recognized from closed block assets and closed block liabilities $ 394,621 $ 557,435 |
Schedule of reconciliation of the policyholder dividend obligation | Reconciliation of the policyholder dividend obligation is as follows: Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, 2014 Policyholder dividend obligation, beginning balance $ 323,432 $ 366,745 $ 190,494 Applicable to net revenue (losses) (47,493 ) (1,369 ) (910 ) Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation; includes deferred tax benefits of $(96,579) (Successor); $47,277 (2015 - Predecessor); $58,571 (2014 - Predecessor) (275,939 ) 135,077 177,161 Policyholder dividend obligation, ending balance $ — $ 500,453 $ 366,745 |
Schedule of Closed Block revenues and expenses | Closed Block revenues and expenses were as follows: Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Revenues Premiums and other income $ 185,562 $ 15,065 $ 212,765 Net investment income 193,203 19,107 239,028 Net investment gains 3,333 568 10,528 Total revenues 382,098 34,740 462,321 Benefits and other deductions Benefits and settlement expenses 336,629 31,152 417,667 Other operating expenses 1,001 — 674 Total benefits and other deductions 337,630 31,152 418,341 Net revenues before income taxes 44,468 3,588 43,980 Income tax expense 14,920 1,256 20,377 Net revenues $ 29,548 $ 2,332 $ 23,603 |
INVESTMENT OPERATIONS (Tables)
INVESTMENT OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
INVESTMENT OPERATIONS | |
Summary of major categories of net investment income | Major categories of net investment income are summarized as follows: Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Fixed maturities $ 1,267,900 $ 140,104 $ 1,712,297 $ 1,509,544 Equity securities 40,907 2,572 41,740 26,923 Mortgage loans 252,577 24,977 360,778 333,145 Investment real estate 2,528 112 4,482 3,556 Short-term investments 93,982 9,713 112,292 75,984 1,657,894 177,478 2,231,589 1,949,152 Other investment expenses 24,946 2,298 33,865 31,071 Net investment income $ 1,632,948 $ 175,180 $ 2,197,724 $ 1,918,081 |
Summary of net realized investment gains (losses) for all other investments | Net realized investment gains (losses) for all other investments are summarized as follows: Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Fixed maturities $ 1,282 $ 6,891 $ 75,159 $ 63,180 Equity securities (1,001 ) — 1,793 3,276 Impairments on fixed maturity securities (26,993 ) (481 ) (7,275 ) (19,100 ) Impairments on equity securities — — — (3,347 ) Modco trading portfolio (167,359 ) 73,062 142,016 (178,134 ) Other investments 192 1,200 (13,566 ) (11,859 ) Total realized gains (losses)—investments $ (193,879 ) $ 80,672 $ 198,127 $ (145,984 ) |
Schedule of amortized cost and fair value of the Company's investments classified as available-for-sale | The amortized cost and fair value of the Company's investments classified as available-for-sale as of December 31, 2015 (Successor Company) and as of December 31, 2014 (Predecessor Company), are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Total OTTI Recognized in OCI (1) (Dollars In Thousands) Successor Company As of December 31, 2015 Fixed maturities: Residential mortgage-backed securities $ 1,773,099 $ 9,286 $ (17,112 ) $ 1,765,273 $ — Commercial mortgage-backed securities 1,328,317 428 (41,858 ) 1,286,887 — Other asset-backed securities 813,056 2,758 (18,763 ) 797,051 — U.S. government-related securities 1,566,260 449 (34,532 ) 1,532,177 — Other government-related securities 18,483 — (743 ) 17,740 — States, municipals, and political subdivisions 1,729,732 682 (126,814 ) 1,603,600 — Corporate securities 28,499,691 26,369 (2,682,274 ) 25,843,786 (605 ) Preferred stock 64,362 192 (1,867 ) 62,687 — 35,793,000 40,164 (2,923,963 ) 32,909,201 (605 ) Equity securities 724,226 13,255 (6,477 ) 731,004 — Short-term investments 206,991 — — 206,991 — $ 36,724,217 $ 53,419 $ (2,930,440 ) $ 33,847,196 $ (605 ) Amortized Cost Gross Unrealized Gains Gross Fair Total OTTI (1) (Dollars In Thousands) Predecessor Company As of December 31, 2014 Fixed maturities: Residential mortgage-backed securities $ 1,374,206 $ 56,330 $ (12,278 ) $ 1,418,258 $ 6,404 Commercial mortgage-backed securities 1,119,979 59,637 (2,364 ) 1,177,252 — Other asset-backed securities 857,441 17,885 (35,950 ) 839,376 (95 ) U.S. government-related securities 1,394,028 44,149 (9,282 ) 1,428,895 — Other government-related securities 16,939 3,233 — 20,172 — States, municipals, and political subdivisions 1,391,526 296,594 (431 ) 1,687,689 — Corporate securities 24,765,303 2,759,255 (139,031 ) 27,385,527 — 30,919,422 3,237,083 (199,336 ) 33,957,169 6,309 Equity securities 757,259 38,669 (14,182 ) 781,746 — Short-term investments 155,500 — — 155,500 — $ 31,832,181 $ 3,275,752 $ (213,518 ) $ 34,894,415 $ 6,309 (1) These amounts are included in the gross unrealized gains and gross unrealized losses columns above. |
Schedule of amortized cost and fair value of the Company's investments classified as held-to-maturity | The amortized cost and fair value of the Company's investments classified as held-to-maturity as of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Total OTTI Recognized in OCI (Dollars In Thousands) Successor Company As of December 31, 2015 Fixed maturities: Other $ 593,314 $ — $ (78,314 ) $ 515,000 $ — $ 593,314 $ — $ (78,314 ) $ 515,000 $ — Amortized Cost Gross Gross Fair Total OTTI (Dollars In Thousands) Predecessor Company As of December 31, 2014 Fixed maturities: Other $ 435,000 $ 50,422 $ — $ 485,422 $ — $ 435,000 $ 50,422 $ — $ 485,422 $ — |
Schedule of amortized cost and fair value of available-for-sale and held-to-maturity fixed maturities, by expected maturity | The amortized cost and fair value of available-for-sale and held-to-maturity fixed maturities as of December 31, 2015 (Successor Company), by expected maturity, are shown below. Expected maturities of securities without a single maturity date are allocated based on estimated rates of prepayment that may differ from actual rates of prepayment. Available-for-sale Held-to-maturity Amortized Cost Fair Value Amortized Cost Fair Value (Dollars In Thousands) (Dollars In Thousands) Due in one year or less $ 937,594 $ 935,860 $ — $ — Due after one year through five years 5,868,351 5,732,803 — — Due after five years through ten years 7,840,167 7,542,055 — — Due after ten years 21,146,888 18,698,483 593,314 515,000 $ 35,793,000 $ 32,909,201 $ 593,314 $ 515,000 |
Schedule of available-for-sale credit losses on fixed maturities held by the Company for which a portion of other-than-temporary impairments were recognized in other comprehensive income (loss) | The following chart is a rollforward of available-for-sale credit losses on fixed maturities held by the Company for which a portion of an other-than-temporary impairment was recognized in other comprehensive income (loss): Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Beginning balance $ — $ 15,478 $ 41,692 $ 122,121 Additions for newly impaired securities 22,761 — — 3,516 Additions for previously impaired securities — 221 2,263 12,066 Reductions for previously impaired securities due to a change in expected cash flows — — (28,477 ) (88,523 ) Reductions for previously impaired securities that were sold in the current period — — — (7,488 ) Other — — — — Ending balance $ 22,761 $ 15,699 $ 15,478 $ 41,692 |
Schedule of investments' gross unrealized losses and fair value of the Company's investments that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | The following table includes the gross unrealized losses and fair value of the Company's investments that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2014 (Predecessor Company): Less Than 12 Months 12 Months or More Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss (Dollars In Thousands) Residential mortgage-backed securities $ 166,271 $ (9,562 ) $ 67,280 $ (2,716 ) $ 233,551 $ (12,278 ) Commercial mortgage-backed securities 49,909 (334 ) 102,529 (2,030 ) 152,438 (2,364 ) Other asset-backed securities 108,666 (6,473 ) 537,486 (29,477 ) 646,152 (35,950 ) U.S. government-related securities 231,917 (3,868 ) 280,803 (5,414 ) 512,720 (9,282 ) Other government-related securities — — — — — — States, municipalities, and political subdivisions 1,904 (134 ) 10,482 (297 ) 12,386 (431 ) Corporate securities 1,659,287 (76,341 ) 776,864 (62,690 ) 2,436,151 (139,031 ) Equities 17,430 (217 ) 129,719 (13,965 ) 147,149 (14,182 ) $ 2,235,384 $ (96,929 ) $ 1,905,163 $ (116,589 ) $ 4,140,547 $ (213,518 ) The following table includes the gross unrealized losses and fair value of the Company's investments that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2015 (Successor Company): Less Than 12 Months 12 Months or More Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss (Dollars In Thousands) Residential mortgage-backed securities $ 977,433 $ (17,112 ) $ — $ — $ 977,433 $ (17,112 ) Commercial mortgage-backed securities 1,233,518 (41,858 ) — — 1,233,518 (41,858 ) Other asset-backed securities 633,274 (18,763 ) — — 633,274 (18,763 ) U.S. government-related securities 1,291,476 (34,532 ) — — 1,291,476 (34,532 ) Other government-related securities 17,740 (743 ) — — 17,740 (743 ) States, municipalities, and political subdivisions 1,566,752 (126,814 ) — — 1,566,752 (126,814 ) Corporate securities 24,283,448 (2,682,274 ) — — 24,283,448 (2,682,274 ) Preferred stock 34,685 (1,867 ) — — 34,685 (1,867 ) Equities 248,493 (6,477 ) — — 248,493 (6,477 ) $ 30,286,819 $ (2,930,440 ) $ — $ — $ 30,286,819 $ (2,930,440 ) |
Summary of change in unrealized gains (losses), net of income tax, on fixed maturity and equity securities, classified as available-for-sale | The change in unrealized gains (losses), net of income tax, on fixed maturity and equity securities, classified as available-for-sale is summarized as follows: Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Fixed maturities $ (1,874,469 ) $ 670,229 $ 1,224,672 $ (1,269,449 ) Equity securities 4,406 10,226 35,242 (20,892 ) |
MORTGAGE LOANS (Tables)
MORTGAGE LOANS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
MORTGAGE LOANS | |
Schedule of the breakdown of the commercial mortgage loan portfolio by property type | The following table includes a breakdown of the Company's commercial mortgage loan portfolio by property type as of December 31, 2015 (Successor Company): Type Percentage of Mortgage Loans on Real Estate Retail 60.9 % Office Buildings 13.0 Apartments 7.4 Warehouses 8.6 Senior housing 6.4 Other 3.7 100.0 % |
Schedule of mortgage loans by location of properties | Approximately 62.8% of the mortgage loans are on properties located in the following states: State Percentage of Mortgage Loans on Real Estate Alabama 10.6 % Texas 9.3 Georgia 7.4 Florida 6.5 Tennessee 6.4 Utah 5.3 North Carolina 4.7 South Carolina 4.5 Ohio 4.2 California 3.9 62.8 % |
Schedule of changes in the allowance for mortgage loan credit losses | A charge off is recorded by eliminating the allowance against the mortgage loan and recording the renegotiated loan or the collateral property related to the loan as investment real estate on the balance sheet, which is carried at the lower of the appraised fair value of the property or the unpaid principal balance of the loan, less estimated selling costs associated with the property: Successor Company Predecessor Company February 1, 2015 January 1, 2015 As of December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Beginning balance $ — $ 5,720 $ 3,130 Charge offs (2,561 ) (861 ) (675 ) Recoveries (638 ) (2,359 ) (2,600 ) Provision 3,199 — 5,865 Ending balance $ — $ 2,500 $ 5,720 |
Schedule of an analysis of the delinquent loans | An analysis of the delinquent loans is shown in the following chart: 30 - 59 Days Delinquent 60 - 89 Days Delinquent Greater than 90 Days Delinquent Total Delinquent (Dollars In Thousands) Successor Company As of December 31, 2015 Commercial mortgage loans $ 6,002 $ 1,033 $ — $ 7,035 Number of delinquent commercial mortgage loans 6 1 — 7 30 - 59 Days Delinquent 60 - 89 Days Greater than 90 Days Total (Dollars In Thousands) Predecessor Company As of December 31, 2014 Commercial mortgage loans $ 8,972 $ — $ 1,484 $ 10,456 Number of delinquent commercial mortgage loans 4 — 1 5 |
Schedule of information regarding impaired loans | For information regarding impaired loans, please refer to the following chart: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Cash Basis Interest Income (Dollars In Thousands) Successor Company As of December 31, 2015 Commercial mortgage loans: With no related allowance recorded $ 1,694 $ 1,728 $ — $ 847 $ 104 $ 117 With an allowance recorded — — — — — — Recorded Investment Unpaid Related Average Interest Cash Basis (Dollars In Thousands) Predecessor Company As of December 31, 2014 Commercial mortgage loans: With no related allowance recorded $ — $ — $ — $ — $ — $ — With an allowance recorded 19,632 20,603 5,720 3,272 1,224 1,280 |
Schedule of mortgage loans that were modified in a troubled debt restructuring | Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars In Thousands) Predecessor Company As of December 31, 2014 Troubled debt restructuring: Commercial mortgage loans 6 $ 28,648 $ 19,593 |
DEFERRED POLICY ACQUISITION C49
DEFERRED POLICY ACQUISITION COSTS AND VALUE OF BUSINESS ACQUIRED (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
DEFERRED POLICY ACQUISITION COSTS AND VALUE OF BUSINESS ACQUIRED | |
Schedule of balances and changes in DAC | The balances and changes in DAC are as follows: Successor Company Predecessor Company February 1, 2015 January 1, 2015 As of December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Balance, beginning of period $ — $ 2,647,980 $ 2,721,687 Capitalization of commissions, sales, and issue expenses 302,839 22,513 288,592 Amortization (24,187 ) 1,117 (195,605 ) Change in unrealized investment gains and losses 9,959 (96,830 ) (166,694 ) Balance, end of period $ 288,611 $ 2,574,780 $ 2,647,980 |
Schedule of balances and changes in VOBA | The balances and changes in VOBA are as follows: Successor Company Predecessor Company February 1, 2015 January 1, 2015 As of December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Balance, beginning of period $ 1,276,886 $ 646,590 $ 848,528 Amortization (69,869 ) (5,189 ) (61,704 ) Change in unrealized gains and losses 69,226 (79,418 ) (140,234 ) Other (6,046 ) — — Balance, end of period $ 1,270,197 $ 561,983 $ 646,590 |
Schedule of expected amortization of VOBA for the next five years | Based on the balance recorded as of December 31, 2015 (Successor Company), the expected amortization of VOBA for the next five years is as follows: Expected Years Amortization (Dollars In Thousands) 2016 $ 131,599 2017 122,011 2018 112,230 2019 96,878 2020 80,542 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in the carrying amount of goodwill by segment | The changes in the carrying amount of goodwill by segment are as follows: Predecessor Company Life Marketing Acquisitions Asset Protection Corporate and Other Total Consolidated (Dollars In Thousands) Balance as of December 31, 2013 $ 10,192 $ 32,517 $ 62,671 $ 83 $ 105,463 Tax benefit of excess tax goodwill — (3,098 ) — — (3,098 ) Balance as of December 31, 2014 $ 10,192 $ 29,419 $ 62,671 $ 83 $ 102,365 |
CERTAIN NONTRADITIONAL LONG-D51
CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS | |
Schedule of activity relating to GMDB reserves (excluding those 100% reinsured under the Modco agreement) | Activity relating to GMDB reserves (excluding those 100% reinsured under the Modco agreement) is as follows: Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Beginning balance $ 29,010 $ 26,251 $ 16,284 $ 19,606 Incurred guarantee benefits 10,175 3,073 12,091 (260 ) Less: Paid guarantee benefits 2,758 449 2,124 3,062 Ending balance $ 36,427 $ 28,875 $ 26,251 $ 16,284 |
Schedule of account balances of variable annuities with guarantees invested in VA separate accounts | Account balances of variable annuities with guarantees invested in VA separate accounts are as follows: Successor Company Predecessor Company As of As of December 31, 2015 December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Equity mutual funds $ 5,476,366 $ 7,834,480 Fixed income mutual funds 7,184,528 5,137,312 Total $ 12,660,894 $ 12,971,792 |
Schedule of activity in the Company's deferred sales inducement asset | Activity in the Company's deferred sales inducement asset was as follows: Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Deferred asset, beginning of period $ — $ 155,150 $ 146,651 $ 143,949 Amounts deferred 14,557 82 18,302 15,274 Amortization (2,801 ) (1,139 ) (9,803 ) (12,572 ) Deferred asset, end of period $ 11,756 $ 154,093 $ 155,150 $ 146,651 |
REINSURANCE (Tables)
REINSURANCE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Reinsurance Disclosures [Abstract] | |
Schedule of net life insurance in-force | The following table presents the net life insurance in-force: Successor Company Predecessor Company As of December 31, As of December 31, 2015 2014 2013 (Dollars In Millions) (Dollars In Millions) Direct life insurance in-force $ 727,705 $ 721,036 $ 726,697 Amounts assumed from other companies 39,547 43,237 46,752 Amounts ceded to other companies (368,142 ) (388,890 ) (416,809 ) Net life insurance in-force $ 399,110 $ 375,383 $ 356,640 Percentage of amount assumed to net 10 % 12 % 13 % |
Schedule of effect of reinsurance on life insurance premiums written and earned | The following table reflects the effect of reinsurance on life, accident/health, and property and liability insurance premiums written and earned: Gross Amount Ceded to Other Companies Assumed from Other Companies Net Amount Percentage of Amount Assumed to Net (Dollars In Thousands) Successor Company February 1, 2015 to December 31, 2015 Premiums and policy fees: Life insurance $ 2,360,643 $ (983,143 ) $ 308,280 $ 1,685,780 (1) 18.3 % Accident/health insurance 70,243 (36,871 ) 18,252 51,624 35.4 Property and liability insurance 243,728 (134,964 ) 6,904 115,668 6.0 Total $ 2,674,614 $ (1,154,978 ) $ 333,436 $ 1,853,072 Gross Amount Ceded to Assumed Net Percentage of (Dollars In Thousands) Predecessor Company January 1, 2015 to January 31, 2015 Premiums and policy fees: Life insurance $ 204,185 $ (74,539 ) $ 28,601 $ 158,247 (1) 18.1 % Accident/health insurance 6,846 (4,621 ) 1,809 4,034 44.8 Property and liability insurance 19,759 (10,796 ) 666 9,629 6.9 Total $ 230,790 $ (89,956 ) $ 31,076 $ 171,910 For The Year Ended December 31, 2014: Premiums and policy fees: Life insurance $ 2,603,956 $ (1,205,528 ) $ 349,934 $ 1,748,362 (1) 20.0 % Accident/health insurance 81,037 (42,741 ) 20,804 59,100 35.2 Property and liability insurance 233,362 (125,328 ) 8,675 116,709 7.4 Total $ 2,918,355 $ (1,373,597 ) $ 379,413 $ 1,924,171 For The Year Ended December 31, 2013: Premiums and policy fees: Life insurance $ 2,371,872 $ (1,247,657 ) $ 306,920 $ 1,431,135 (1) 21.5 % Accident/health insurance 45,263 (20,011 ) 24,291 49,543 49.0 Property and liability insurance 225,327 (109,527 ) 7,978 123,778 6.5 Total $ 2,642,462 $ (1,377,195 ) $ 339,189 $ 1,604,456 (1) Includes annuity policy fees of $152.8 million , $13.9 million , $167.1 million , and $140.7 million for the periods of February 1, 2015 to December 31, 2015 (Successor Company) and January 1, 2015 to January 31, 2015 (Predecessor Company) and for the years ended December 31, 2014 (Predecessor Company), and December 31, 2013 (Predecessor Company), respectively. |
Schedule of receivables attributable to more significant reinsurance partners | The following table sets forth the receivables attributable to our more significant reinsurance partners: Successor Company Predecessor Company As of As of December 31, 2015 December 31, 2014 Reinsurance Receivable A.M. Best Rating Reinsurance Receivable A.M. Best Rating (Dollars In Millions) (Dollars In Millions) Security Life of Denver Insurance Company $ 800.6 A $ 842.1 A Swiss Re Life & Health America, Inc. 719.2 A+ 820.9 A+ Lincoln National Life Insurance Co. 546.0 A+ 556.3 A+ Transamerica Life Insurance Co. 396.6 A+ 497.7 A+ RGA Reinsurance Company 303.5 A+ 412.4 A+ SCOR Global Life USA Reinsurance Company 320.4 A 411.8 A American United Life Insurance Company 314.2 A+ 336.1 A+ Scottish Re (U.S.) Inc. 268.6 NR 298.0 NR Centre Reinsurance (Bermuda) Ltd 247.6 NR 260.9 NR Employers Reassurance Corporation 224.4 A- 254.3 A– |
DEBT AND OTHER OBLIGATIONS (Tab
DEBT AND OTHER OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Summary of debt and subordinated debt securities | Debt and subordinated debt securities are summarized as follows: Successor Company Predecessor Company As of As of December 31, 2015 December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Debt (year of issue): Revolving Line Of Credit $ 485,000 $ 450,000 6.40% Senior Notes (2007), due 2018 162,671 150,000 7.375% Senior Notes (2009), due 2019 473,127 400,000 8.45% Senior Notes (2009), due 2039 468,008 300,000 $ 1,588,806 $ 1,300,000 Subordinated debt securities (year of issue): 6.125% Subordinated Debentures (2004), due 2034, callable 2009 $ — $ 103,093 6.25% Subordinated Debentures (2012) due 2042, callable 2017 295,833 287,500 6.00% Subordinated Debentures (2012) due 2042, callable 2017 152,930 150,000 $ 448,763 $ 540,593 |
Summary of estimated debt covenant calculations | The following is a summary of the Company's estimated debt covenant calculations as of December 31, 2015 (Successor Company): Requirement Actual Results Consolidated net worth margin greater than or equal to 0 greater than $1 billion Debt to total capital ratio* less than 40% less than 21% Total adjusted capital margin greater than or equal to 0 greater than $2.5 billion Interest cash inflow available compared to adjusted consolidated interest expense greater than 2.0 to 1 greater than 22.5 to 1 * Excludes $700 million of outstanding senior notes issued in 2009 |
Non-recourse funding obligations outstanding | Issuer Carrying Value (1) Maturity Year Year-to-Date Weighted-Avg Interest Rate (Dollars In Thousands) Golden Gate II Captive Insurance Company $ 118,481 2052 1.32 % Golden Gate V Vermont Captive Insurance Company (2) 564,679 2037 5.12 % MONY Life Insurance Company (2) 2,524 2024 6.19 % Total $ 685,684 (1) Carrying values include premiums and discounts and do not represent unpaid principal balances. (2) Fixed rate obligations |
Schedule of collateral pledged for repurchase agreements | The following table provides the fair value of collateral pledged for repurchase agreements, grouped by asset class, as of December 31, 2015 (Successor Company): Repurchase Agreements, Securities Lending Transactions, and Repurchase-to-Maturity Transactions Accounted for as Secured Borrowings Remaining Contractual Maturity of the Agreements As of December 31, 2015 (Successor Company) (Dollars In Thousands) Overnight and Greater Than Continuous Up to 30 days 30 - 90 days 90 days Total Repurchase agreements and repurchase-to-maturity transactions U.S. Treasury and agency securities $ 108,875 $ — $ — $ — $ 108,875 State and municipal securities — — — — — Other asset-backed securities — — — — — Corporate securities — — — — — Equity securities — — — — — Non-U.S. sovereign debt — — — — — Mortgage loans 371,002 — — — 371,002 Total borrowings $ 479,877 $ — $ — $ — $ 479,877 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Administrative and marketing office space | |
Operating leased assets | |
Schedule of future minimum rental payments required under operating leases | The following is a schedule by year of future minimum rental payments required under these leases: Year Amount (Dollars In Thousands) 2016 $ 4,406 2017 4,042 2018 3,829 2019 3,644 2020 3,600 Thereafter 13,145 |
Building contiguous to home office | |
Operating leased assets | |
Schedule of future minimum rental payments required under operating leases | The following is a schedule by year of future minimum rental payments required under this lease: Year Amount (Dollars In Thousands) 2016 $ 1,385 2017 1,381 2018 76,356 |
SHAREOWNERS' EQUITY (Tables)
SHAREOWNERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Summary of activity in issued and outstanding common stock | Activity in the Company's issued and outstanding common stock is summarized as follows: Predecessor Company Issued Shares Treasury Shares Outstanding Shares Balance, December 31, 2012 88,776,960 10,639,467 78,137,493 (Reissuance of)/deposits to treasury stock — (439,953 ) 439,953 Balance, December 31, 2013 88,776,960 10,199,514 78,577,446 (Reissuance of)/deposits to treasury stock — (764,259 ) 764,259 Balance, December 31, 2014 88,776,960 9,435,255 79,341,705 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of performance shares awarded and estimated fair value of the awards at grant date | Performance share awards and the estimated fair value of the awards at grant date are as follows: Year Awarded Performance Shares Estimated Fair Value (Dollars In Thousands) 2014 203,295 $ 10,484 2013 298,500 9,328 2012 306,100 8,608 |
Schedule of the SARs activity as well as weighted-average base price | The SARs activity as well as weighted-average base price was as follows: Weighted-Average Base Price per share No. of SARs Balance at December 31, 2012 $ 22.15 1,641,167 SARs exercised / forfeited 18.54 (336,066 ) Balance at December 31, 2013 $ 23.08 1,305,101 SARs exercised / forfeited 22.07 (1,147,473 ) Balance at December 31, 2014 $ 30.41 157,628 |
Schedule of outstanding SARs by base prices | The outstanding SARs as of December 31, 2014 (Predecessor Company), were at the following base prices: Base Price SARs Outstanding Remaining Life in Years Currently Exercisable $41.05 10,000 1 10,000 $43.46 22,300 3 22,300 $38.59 52,000 4 52,000 $3.50 46,110 5 46,110 $18.36 27,218 6 27,218 |
Schedule of equity compensation plans | The following table provides information as of December 31, 2014 (Predecessor Company), regarding equity compensation plans under which the Company's common stock was authorized for issuance: Securities Authorized for Issuance under Equity Compensation Plans Plan category Number of securities to be issued upon exercise of outstanding options, warrants and rights as of December 31, 2014 (a) Weighted-average exercise price of outstanding options, warrants and rights as of December 31, 2014 (b) Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) as of of December 31, 2014 (c) Equity compensation plans approved by shareowners 1,960,959 (1) $ 22.07 (3) 4,092,546 (4) Equity compensation plans not approved by shareowners 193,720 (2) Not applicable Not applicable (5) Total 2,154,679 $ 22.07 4,092,546 (1) Includes the following number of shares: (a) 102,458 shares issuable with respect to outstanding SARs (assuming for this purpose that one share of common stock will be payable with respect to each outstanding SAR); (b) 907,487 shares issuable with respect to outstanding performance share awards (assuming for this purpose that the awards are payable based on estimated performance under the awards as of September 30, 2014); (c) 313,199 shares issuable with respect to outstanding restricted stock units (assuming for this purpose that shares will be payable with respect to all outstanding restricted stock units); (d) 475,386 shares issuable with respect to stock equivalents representing previously earned awards under the LTIP that the recipient deferred under the Company's Deferred Compensation Plan for Officers; and (e) 162,429 shares issuable with respect to stock equivalents representing previous awards under the Company's Stock Plan for Non-Employee Directors that the recipient deferred under our Deferred Compensation Plan for Directors Who Are Not Employees of the Company. (2) Includes the following number of shares of common stock: (a) 152,709 shares issuable with respect to stock equivalents representing (i) stock awards to the Company's Directors before June 1, 2004 that the recipient deferred pursuant to the Company's Deferred Compensation Plan for Directors Who Are Not Employees of the Company and (ii) cash retainers and fees that the Company's Directors deferred under the Company's Deferred Compensation Plan for Directors Who Are Not Employees of the Company, and (b) 41,011 shares issuable with respect to stock equivalents pursuant to the Company's Deferred Compensation Plan for Officers. (3) Based on exercise prices of outstanding SARs. (4) Represents shares of common stock available for future issuance under the LTIP and the Company's Stock Plan for Non-Employee Directors. (5) The plans listed in Note (2) do not currently have limits on the number of shares of common stock issuable under such plans. The total number of shares of common stock that may be issuable under such plans will depend upon, among other factors, the deferral elections made by the plans' participants. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Defined Benefit Pension Plan | |
EMPLOYEE BENEFIT PLANS | |
Schedule of benefit obligation, fair value of plan assets and the funded status of the Company's defined benefit pension plan and unfunded excess benefit plan | The following table presents the benefit obligation, fair value of plan assets, funded status, and amounts not yet recognized as components of net periodic pension costs for the Company's defined benefit pension plan and unfunded excess benefit plan as of December 31, 2015 (Successor Company), January 31, 2015 (Predecessor Company), and December 31, 2014 (Predecessor Company): Successor Company Predecessor Company December 31, 2015 January 31, 2015 December 31, 2014 Defined Benefit Pension Plan Unfunded Excess Benefit Plan Defined Benefit Pension Plan Unfunded Excess Benefit Plan Defined Benefit Pension Plan Unfunded Excess Benefit Plan (Dollars In Thousands) (Dollars In Thousands) Accumulated benefit obligation, end of year $ 250,133 $ 54,196 $ 262,290 $ 49,251 $ 249,453 $ 47,368 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 281,099 $ 51,243 $ 267,331 $ 49,575 $ 219,152 $ 39,679 Service cost 11,220 1,229 974 95 9,411 954 Interest cost 9,072 1,499 1,002 140 10,493 1,696 Amendments — — — — — — Actuarial loss/(gain) (19,235 ) 4,484 12,384 1,555 38,110 9,153 Benefits paid (13,935 ) (1,470 ) (592 ) (122 ) (9,835 ) (1,907 ) Projected benefit obligation at end of year 268,221 56,985 281,099 51,243 267,331 49,575 Change in plan assets: Fair value of plan assets at beginning of year 201,820 — 203,772 — 180,173 — Actual return on plan assets 6,751 — (3,525 ) — 17,921 — Employer contributions (1) 1,406 1,470 2,165 122 15,513 1,907 Benefits paid (13,935 ) (1,470 ) (592 ) (122 ) (9,835 ) (1,907 ) Fair value of plan assets at end of year 196,042 — 201,820 — 203,772 — After reflecting FASB guidance: Funded status (72,179 ) (56,985 ) (79,279 ) (51,243 ) (63,559 ) (49,575 ) Amounts recognized in the balance sheet: Other liabilities (72,179 ) (56,985 ) (79,279 ) (51,243 ) (63,559 ) (49,575 ) Amounts recognized in accumulated other comprehensive income: Net actuarial loss/(gain) (12,772 ) 4,484 96,965 22,401 80,430 20,983 Prior service cost/(credit) — — (1,001 ) 23 (1,033 ) 24 Total amounts recognized in AOCI $ (12,772 ) $ 4,484 $ 95,964 $ 22,424 $ 79,397 $ 21,007 (1) Employer contributions disclosed are based on the Company's fiscal filing year |
Schedule of weighted-average assumptions used to determine benefit obligations | Weighted-average assumptions used to determine benefit obligations as of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company) are as follows: Successor Company Predecessor Company As of December 31, 2015 As of December 31, 2014 Defined Benefit Unfunded Excess Defined Benefit Unfunded Excess Discount rate 4.29 % 3.63 % 3.95 % 3.65 % Rate of compensation increase 4.75% prior to age 40/ 3.75% for age 40 and above 4.75% prior to age 40/ 3.75 for age 40 and above 4.75% prior to age 40/ 3.75% for age 40 and above 4.75% prior to age 40/ 3.75% for age 40 and above The benefit obligations as of January 31 were determined based on the assumptions used in the 2014 year end disclosures with the following exception: Predecessor Company Defined Benefit Unfunded Excess Discount rate 3.55 % 3.26 % |
Schedule of weighted-average assumptions used to determine the net periodic benefit cost | Weighted-average assumptions used to determine the net periodic benefit cost for the period of February 1, 2015 to December 31, 2015 (Successor Company) and for the years ended December 31, 2014 and 2013 (Predecessor Company) are as follows: Successor Company Predecessor Company For The Year Ended December 31, For The Year Ended December 31, 2015 2015 2014 2013 2014 2013 Defined Benefit Unfunded Excess Benefit Plan Defined Benefit Unfunded Excess Discount rate 3.95 % 3.65 % 4.86 % 4.07 % 4.30 % 3.37 % Rate of compensation increase 4.75% prior to age 40/ 3.75% for age 40 and above 4.75% prior to age 40/ 3.75% for age 40 and above 3.0 3.0 4.0 4.0 Expected long-term return on plan assets 7.5 N/A 7.5 7.5 N/A N/A |
Components of the net periodic benefit cost of the Company's defined benefit pension plan and unfunded excess benefit plan | Components of the net periodic benefit cost for the period of February 1, 2015 to December 31, 2015 (Successor Company), for the period of January 1, 2015 to January 31, 2015 (Predecessor Company), and for the years ended December 31, 2014 and 2013 (Predecessor Company) are as follows: Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, 2014 2013 2014 2013 Defined Benefit Pension Plan Unfunded Excess Benefit Plan Defined Benefit Pension Plan Unfunded Excess Benefit Plan Defined Benefit Pension Plan Unfunded Excess Benefit Plan (Dollars In Thousands) (Dollars In Thousands) Service cost—benefits earned during the period $ 11,220 $ 1,229 $ 974 $ 95 $ 9,411 $ 9,345 $ 954 $ 1,037 Interest cost on projected benefit obligation 9,072 1,499 1,002 140 10,493 8,985 1,696 1,387 Expected return on plan assets (13,214 ) — (1,293 ) — (12,166 ) (11,013 ) — — Amortization of prior service cost/(credit) — — (33 ) 1 (392 ) (392 ) 12 12 Amortization of actuarial loss/(gain) (1) — — 668 138 6,821 9,631 1,516 1,792 Preliminary net periodic benefit cost 7,078 2,728 1,318 374 14,167 16,556 4,178 4,228 Settlement/curtailment expense (2) — — — — — — — 928 Total net periodic benefit cost $ 7,078 $ 2,728 $ 1,318 $ 374 $ 14,167 $ 16,556 $ 4,178 $ 5,156 (1) 2015 average remaining service period used is 9.38 years and 7.96 years for the defined benefit pension plan and unfunded excess benefit plan, respectively. (2) The unfunded excess benefit plan triggered settlement accounting for the year ended December 31, 2014 since the total lump sum payments exceeded the settlement threshold of service cost plus interest cost. |
Schedule of allocation of plan assets by category | Allocation of plan assets of the defined benefit pension plan by category as of December 31 are as follows: Successor Company Predecessor Company Asset Category Target Allocation for 2016 2015 2014 Cash and cash equivalents 2 % 2 % 4 % Equity securities 60 61 62 Fixed income 38 37 34 Total 100 % 100 % 100 % |
Schedule of fair value of plan assets by category | Plan assets of the defined benefit pension plan by category as of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), are as follows: Successor Company Predecessor Company As of December 31, 2015 As of December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Asset Category Cash and cash equivalents $ 3,121 $ 7,968 Equity securities: Collective Russell 3000 equity index fund 72,663 79,660 Fidelity Spartan 500 index fund 52,551 51,848 Fixed income 67,707 64,296 Total investments 196,042 203,772 Employer contribution receivable — 2,165 Total $ 196,042 $ 205,937 |
Schedule of fair value of plan assets, set forth by level, within the fair value hierarchy | The following table sets forth by level, within the fair value hierarchy, the Plan's assets at fair value as of December 31, 2015 (Successor Company): Level 1 Level 2 Level 3 Total (Dollars In Thousands) Collective short-term investment fund $ 3,121 $ — $ — $ 3,121 Collective investment funds: Equity index funds 52,551 72,663 — 125,214 Group deposit administration annuity contract — — 67,707 67,707 Total investments $ 55,672 $ 72,663 $ 67,707 $ 196,042 The following table sets forth by level, within the fair value hierarchy, the Plan's assets at fair value as of December 31, 2014 (Predecessor Company): Level 1 Level 2 Level 3 Total (Dollars In Thousands) Collective short-term investment fund $ 7,968 $ — $ — $ 7,968 Collective investment funds: Equity index funds 51,848 79,660 — 131,508 Group deposit administration annuity contract — — 64,296 64,296 Total investments $ 59,816 $ 79,660 $ 64,296 $ 203,772 |
Summary of plan investments measured at a fair value based on NAV per share | The following table summarizes the Plan investments measured at fair value based on NAV per share as of December 31, 2015 (Successor Company) and December 31, 2014 (Predecessor Company), respectively: Name Fair Value Unfunded Commitments Redemption Frequency Redemption Notice Period (Dollars In Thousands) Successor Company As of December 31, 2015: Collective short-term investment fund $ 3,121 Not Applicable Daily 1 day Collective Russell 3000 index fund (1) 72,663 Not Applicable Daily 1 day Fidelity Spartan 500 index fund 52,551 Not Applicable Daily 1 day Predecessor Company As of December 31, 2014: Collective short-term investment fund $ 7,968 Not Applicable Daily 1 day Collective Russell 3000 index fund (1) 79,660 Not Applicable Daily 1 day Fidelity Spartan 500 index fund 51,848 Not Applicable Daily 1 day (1) Non-lending collective trust that does not publish a daily NAV but tracks the Russell 3000 index and provides a daily NAV to the Plan. |
Reconciliation of the beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) have been used | The following table presents a reconciliation of the beginning and ending balances for the fair value measurements for the period of February 1, 2105 to December 31, 2015, for the period of January 1, 2015 to January 31, 2015, and for the year ended December 31, 2014, for which the Company has used significant unobservable inputs (Level 3): Successor Company Predecessor Company December 31, 2015 January 31, 2015 December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Balance, beginning of year $ 64,581 $ 64,296 $ 56,736 Interest income 3,126 285 3,060 Transfers from collective short-term investments fund — — 4,500 Transfers to collective short-term investments fund — — — Balance, end of year $ 67,707 $ 64,581 $ 64,296 |
Schedule of Plan's Level 3 financial instrument, the valuation technique used, and the significant unobservable input and the ranges of values for that input | The following table represents the Plan's Level 3 financial instrument, the valuation technique used, and the significant unobservable input and the ranges of values for that input as of December 31, 2015 (Successor Company): Instrument Fair Value Principal Valuation Technique Significant Unobservable Inputs Range of Significant Input Values (Dollars In Thousands) Group deposit administration annuity contract $ 67,707 Contract Value Contract Rate 5.22% - 5.41% |
Schedule of estimated future benefit payments under defined benefit pension plan | Estimated future benefit payments under the defined benefit pension plan and unfunded excess benefit plan are as follows: Years Defined Benefit Pension Plan Unfunded Excess Benefit Plan (Dollars In Thousands) 2016 $ 16,947 $ 5,470 2017 18,019 7,682 2018 17,723 5,070 2019 18,517 9,097 2020 19,532 4,962 2021 - 2025 102,176 18,888 |
Retiree medical plan | |
EMPLOYEE BENEFIT PLANS | |
Schedule of accumulated postretirement benefit obligation | The change in the benefit obligation for the retiree medical plan is as follows: Successor Company Predecessor Company As of December 31, 2015 As of December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Change in Benefit Obligation Benefit obligation, beginning of year $ 247 $ 447 Service cost 1 2 Interest cost 2 4 Actuarial (gain)/loss (113 ) 30 Plan participant contributions 141 254 Benefits paid (141 ) (490 ) Benefit obligation, end of year $ 137 $ 247 |
Group life insurance plan | |
EMPLOYEE BENEFIT PLANS | |
Schedule of fair value of plan assets by category | The fair value of each major category of plan assets for the Company's postretirement life insurance plan is as follows: Successor Company Predecessor Company As of As of December 31, 2015 December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Category of Investment Money market fund $ 5,653 $ 5,925 |
Schedule of fair value of plan assets, set forth by level, within the fair value hierarchy | The following table sets forth by level, within the fair value hierarchy, the Plan's assets at fair value as of December 31, 2015 (Successor Company): Level 1 Level 2 Level 3 Total (Dollars In Thousands) Money market fund $ 5,653 $ — $ — $ 5,653 The following table sets forth by level, within the fair value hierarchy, the Plan's assets at fair value as of December 31, 2014 (Predecessor Company): Level 1 Level 2 Level 3 Total (Dollars In Thousands) Money market fund $ 5,925 $ — $ — $ 5,925 |
Schedule of accumulated postretirement benefit obligation | The accumulated postretirement benefit obligation associated with these benefits is as follows: Successor Company Predecessor Company As of December 31, 2015 As of January 31, 2015 As of December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Change in Benefit Obligation Benefit obligation, beginning of year $ 9,781 $ 9,288 $ 8,653 Service cost 138 12 97 Interest cost 336 39 416 Actuarial (gain)/loss (894 ) 511 694 Benefits paid (298 ) (69 ) (572 ) Benefit obligation, end of year $ 9,063 $ 9,781 $ 9,288 |
EARNINGS PER SHARE (PREDECESS58
EARNINGS PER SHARE (PREDECESSOR COMPANY) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of the numerators and denominators of the basic and diluted earnings per share | A reconciliation of the numerators and denominators of the basic and diluted earnings per share is presented below for the period of January 1, 2015 to January 31, 2015 (Predecessor Company) and for the years ended December 31, 2014 and 2013 (Predecessor Company): Predecessor Company January 1, 2015 For The Year Ended December 31, 2014 2013 (Dollars In Thousands, Except Per Share Amounts) Calculation of basic earnings per share: Net income $ 1,509 $ 384,875 $ 393,464 Average shares issued and outstanding 79,343,253 78,970,229 78,439,987 Issuable under various deferred compensation plans 1,109,595 1,094,988 955,635 Weighted shares outstanding - basic 80,452,848 80,065,217 79,395,622 Per share: Net income - basic $ 0.02 $ 4.81 $ 4.96 Calculation of diluted earnings per share: Net income $ 1,509 $ 384,875 $ 393,464 Weighted shares outstanding - basic 80,452,848 80,065,217 79,395,622 Stock appreciation rights ("SARs") (1) 64,570 272,196 432,413 Issuable under various other stock-based compensation plans 935,382 768,656 745,607 Restricted stock units 306,487 269,427 352,071 Weighted shares outstanding - diluted 81,759,287 81,375,496 80,925,713 Per share: Net income - diluted $ 0.02 $ 4.73 $ 4.86 (1) Excludes 178,325 SARs as of December 31, 2013 , that are antidilutive. In the event the average market price exceeds the issue price of the SARs, such rights would be dilutive to the Company's earnings per share and will be included in the Company's calculation of the diluted average shares outstanding, for applicable periods. |
ACCUMULATED OTHER COMPREHENSI59
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Summary of the changes in the accumulated balances for each component of AOCI | The following tables summarize the changes in the accumulated balances for each component of AOCI as of December 31, 2015 (Successor Company), January 31, 2015 (Predecessor Company), December 31, 2014 (Predecessor Company), and December 31, 2013 (Predecessor Company). Changes in Accumulated Other Comprehensive Income (Loss) by Component Successor Company Unrealized Gains and Losses on Investments (2) Accumulated Gain and Loss Derivatives Minimum Pension Benefits Liability Adjustment Total Accumulated Other Comprehensive Income (Loss) (Dollars In Thousands, Net of Tax) Beginning Balance, February 1, 2015 $ — $ — $ — $ — Other comprehensive income (loss) before reclassifications (1,264,034 ) (86 ) 5,931 (1,258,189 ) Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings (393 ) — — (393 ) Amounts reclassified from accumulated other comprehensive income (loss) (1) 17,362 86 — 17,448 Net current-period other comprehensive income (loss) (1,247,065 ) — 5,931 (1,241,134 ) Ending Balance, December 31, 2015 $ (1,247,065 ) $ — $ 5,931 $ (1,241,134 ) (1) See Reclassification table below for details. (2) As of December 31, 2015 (Successor Company), net unrealized losses reported in AOCI were offset by $623.0 million due to the impact those net unrealized losses would have had on certain of the Company's insurance assets and liabilities if the net unrealized losses had been recognized in net income. Changes in Accumulated Other Comprehensive Income (Loss) by Component Predecessor Company Unrealized Gains and Losses on Investments (2) Accumulated Gain and Loss Derivatives Minimum Pension Liability Adjustment Total Accumulated Other Comprehensive Income (Loss) (Dollars In Thousands, Net of Tax) Beginning Balance, December 31, 2014 $ 1,484,169 $ (82 ) $ (66,011 ) $ 1,418,076 Other comprehensive income (loss) before reclassifications 482,370 9 (12,527 ) 469,852 Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings (243 ) — — (243 ) Amounts reclassified from accumulated other comprehensive income (loss) (1) (4,166 ) 23 502 (3,641 ) Net current-period other comprehensive income (loss) 477,961 32 (12,025 ) 465,968 Ending Balance January 31, 2015 $ 1,962,130 $ (50 ) $ (78,036 ) $ 1,884,044 (1) See Reclassification table below for details. (2) As of January 31, 2015 and December 31, 2014, net unrealized losses reported in AOCI were offset by $(492.6) million and $(504.4) million , respectively, due to the impact those net unrealized losses would have had on certain of the Company's insurance assets and liabilities if the net unrealized losses had been recognized in net income. Changes in Accumulated Other Comprehensive Income (Loss) by Component Unrealized Gains and Losses on Investments (2) Accumulated Gain and Loss Derivatives Minimum Postretirement Benefits Liability Adjustment Total Accumulated Other Comprehensive Income (Loss) (Dollars In Thousands, Net of Tax) Beginning Balance, December 31, 2013 $ 539,003 $ (1,235 ) $ (43,702 ) $ 494,066 Other comprehensive income (loss) before reclassifications 986,958 (2 ) (27,395 ) 959,561 Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings 3,498 — — 3,498 Amounts reclassified from accumulated other comprehensive income (loss) (1) (45,290 ) 1,155 5,086 (39,049 ) Net current-period other comprehensive income (loss) 945,166 1,153 (22,309 ) 924,010 Ending Balance, December 31, 2014 $ 1,484,169 $ (82 ) $ (66,011 ) $ 1,418,076 (1) See Reclassification table below for details. (2) As of December 31, 2013 and 2014 , net unrealized losses reported in AOCI were offset by $(189.8) million and $(504.4) million , respectively, due to the impact those net unrealized losses would have had on certain of the Company's insurance assets and liabilities if the net unrealized losses had been recognized in net income. Changes in Accumulated Other Comprehensive Income (Loss) by Component Unrealized Gains and Losses on Investments (2) Accumulated Gain and Loss Derivatives Minimum Postretirement Benefits Liability Adjustment Total Accumulated Other Comprehensive Income (Loss) (Dollars In Thousands, Net of Tax) Beginning Balance, December 31, 2012 $ 1,813,516 $ (3,496 ) $ (73,298 ) $ 1,736,722 Other comprehensive income (loss) before reclassifications (1,250,498 ) 734 29,596 (1,220,168 ) Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings 4,591 — — 4,591 Amounts reclassified from accumulated other comprehensive income (loss) (1) (28,606 ) 1,527 — (27,079 ) Net current-period other comprehensive income (loss) (1,274,513 ) 2,261 29,596 (1,242,656 ) Ending Balance, December 31, 2013 $ 539,003 $ (1,235 ) $ (43,702 ) $ 494,066 (1) See Reclassification table below for details. (2) As of December 31, 2012 and December 31, 2013 , net unrealized losses reported in AOCI were offset by $(204.8) million and $(189.8) million , respectively, due to the impact those net unrealized losses would have had on certain of the Company's insurance assets and liabilities if the net unrealized losses had been recognized in net income. |
Summary of the reclassifications amounts out of AOCI | The following tables summarize the reclassifications amounts out of AOCI for the period of February 1, 2015 to December 31, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company) and for the year ended December 31, 2014 (Predecessor Company). Reclassifications Out of Accumulated Other Comprehensive Income (Loss) Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Income (Dollars In Thousands) Successor Company February 1, 2015 to December 31, 2015 Gains and losses on derivative instruments Net settlement (expense)/benefit (1) $ (131 ) Benefits and settlement expenses, net of reinsurance ceded (131 ) Total before tax 45 Tax (expense) or benefit $ (86 ) Net of tax Unrealized gains and losses on available-for-sale securities Net investment gains/losses $ 281 Realized investment gains (losses): All other investments Impairments recognized in earnings (26,992 ) Net impairment losses recognized in earnings (26,711 ) Total before tax 9,349 Tax (expense) or benefit $ (17,362 ) Net of tax Pension benefits liability adjustment Amortization of net actuarial gain/(loss) $ — Other operating expenses Amortization of prior service credit/(cost) — Other operating expenses Amortization of transition asset/(obligation) — Other operating expenses — Total before tax — Tax (expense) or benefit $ — Net of tax (1) See Note 24, Derivative Financial Instruments for additional information. Reclassifications Out of Accumulated Other Comprehensive Income (Loss) Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Income (Dollars In Thousands) Predecessor Company January 1, 2015 to January 31, 2015 Gains and losses on derivative instruments Net settlement (expense)/benefit (1) $ (36 ) Benefits and settlement expenses, net of reinsurance ceded (36 ) Total before tax 13 Tax (expense) or benefit $ (23 ) Net of tax Unrealized gains and losses on available-for-sale securities Net investment gains/losses $ 6,891 Realized investment gains (losses): All other investments Impairments recognized in earnings (481 ) Net impairment losses recognized in earnings 6,410 Total before tax (2,244 ) Tax (expense) or benefit $ 4,166 Net of tax Pension benefits liability adjustment Amortization of net actuarial gain/(loss) $ (808 ) Other operating expenses Amortization of prior service credit/(cost) 31 Other operating expenses Amortization of transition asset/(obligation) 5 Other operating expenses (772 ) Total before tax 270 Tax (expense) or benefit $ (502 ) Net of tax (1) See Note 24, Derivative Financial Instruments for additional information. Reclassifications Out of Accumulated Other Comprehensive Income (Loss) Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Income (Dollars In Thousands) Predecessor Company For The Year Ended December 31, 2014 Gains and losses on derivative instruments Net settlement (expense)/benefit (1) $ (1,777 ) Benefits and settlement expenses, net of reinsurance ceded (1,777 ) Total before tax 622 Tax (expense) or benefit $ (1,155 ) Net of tax Unrealized gains and losses on available-for-sale securities Net investment gains/losses $ 76,952 Realized investment gains (losses): All other investments Impairments recognized in earnings (7,275 ) Net impairment losses recognized in earnings 69,677 Total before tax (24,387 ) Tax (expense) or benefit $ 45,290 Net of tax Pension benefits liability adjustment Amortization of net actuarial gain/(loss) $ (8,264 ) Other operating expenses Amortization of prior service credit/(cost) 386 Other operating expenses Amortization of transition asset/(obligation) 53 Other operating expenses (7,825 ) Total before tax 2,739 Tax (expense) or benefit $ (5,086 ) Net of tax (1) See Note 24, Derivative Financial Instruments for additional information. Reclassifications Out of Accumulated Other Comprehensive Income (Loss) Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Income (Dollars In Thousands) Predecessor Company For The Year Ended December 31, 2013 Gains and losses on derivative instruments Net settlement (expense)/benefit (1) $ (2,349 ) Benefits and settlement expenses, net of reinsurance ceded (2,349 ) Total before tax 822 Tax (expense) or benefit $ (1,527 ) Net of tax Unrealized gains and losses on available-for-sale securities Net investment gains/losses $ 66,456 Realized investment gains (losses): All other investments Impairments recognized in earnings (22,447 ) Net impairment losses recognized in earnings 44,009 Total before tax (15,403 ) Tax (expense) or benefit $ 28,606 Net of tax (1) See Note 24, Derivative Financial Instruments for additional information. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of reconciliation of effective income tax rate related to continuing operations | The Company's effective income tax rate related to continuing operations varied from the maximum federal income tax rate as follows: Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, 2014 2013 Statutory federal income tax rate applied to pre-tax income 35.0 % 35.0 % 35.0 % 35.0 % State income taxes 2.0 0.8 0.8 0.6 Investment income not subject to tax (4.3 ) (3.2 ) (3.4 ) (3.1 ) Uncertain tax positions 0.2 (0.1 ) 1.3 0.4 Other — (0.1 ) 0.3 0.5 32.9 % 32.4 % 34.0 % 33.4 % |
Schedule of components of income tax | The components of the Company's income tax are as follows: Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Current income tax expense: Federal $ 5,715 $ (32,803 ) $ 189,105 $ 19,267 State (4,244 ) 1,685 8,838 2,588 Total current $ 1,471 $ (31,118 ) $ 197,943 $ 21,855 Deferred income tax expense: Federal $ 118,338 $ 30,858 $ 1,474 $ 174,888 State 11,734 (67 ) (1,003 ) 166 Total deferred $ 130,072 $ 30,791 $ 471 $ 175,054 |
Schedule of components of the Company's net deferred income tax liability | The components of the Company's net deferred income tax liability are as follows: Successor Company Predecessor Company As of December 31, 2015 As of December 31, 2014 (Dollars In Thousands) (Dollars In Thousands) Deferred income tax assets: Premium receivables and policy liabilities $ — $ 95,298 Loss and credit carryforwards 34,340 516 Deferred compensation 241,156 194,223 Invested assets (other than unrealized gains) — 63,901 Deferred policy acquisition costs 274,366 — Premium on corporate debt 125,296 — Net unrealized loss on investments 671,540 — Other 81,032 — Valuation allowance (4,804 ) (2,206 ) 1,422,926 351,732 Deferred income tax liabilities: Premium receivables and policy liabilities 276,919 — VOBA and other intangibles 631,935 — DAC and VOBA — 1,078,533 Invested assets (other than unrealized gains (losses)) 1,511,353 — Net unrealized gains (losses) on investments — 799,123 Other — 19,554 2,420,207 1,897,210 Net deferred income tax liability $ (997,281 ) $ (1,545,478 ) |
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Successor Company Predecessor Company February 1, 2015 January 1, 2015 to to As of December 31, December 31, 2015 January 31, 2015 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Balance, beginning of period $ 137,593 $ 193,244 $ 105,881 $ 75,292 Additions for tax positions of the current year 2,213 (5,010 ) 57,463 7,465 Additions for tax positions of prior years 1,811 7,724 39,433 26,386 Reductions of tax positions of prior years: Changes in judgment (16,416 ) (58,365 ) (9,533 ) (2,740 ) Settlements during the period (112,063 ) — — — Lapses of applicable statute of limitations — — — (522 ) Balance, end of period $ 13,138 $ 137,593 $ 193,244 $ 105,881 |
SUPPLEMENTAL CASH FLOW INFORM61
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of supplemental cash flow information | The following table sets forth supplemental cash flow information: Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Cash paid / (received) during the year: Interest on debt $ 124,829 $ 22,802 $ 174,644 $ 171,360 Income taxes (53,486 ) (1 ) 159,447 (27,211 ) Noncash investing and financing activities: Stock-based compensation — 1,550 13,902 10,739 |
STATUTORY REPORTING PRACTICES62
STATUTORY REPORTING PRACTICES AND OTHER REGULATORY MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
STATUTORY REPORTING PRACTICES AND OTHER REGULATORY MATTERS | |
Schedule of favorable (unfavorable) effects of PLICO's statutory surplus, compared to NAIC statutory surplus, from the use of prescribed and permitted practices | The favorable (unfavorable) effects of PLICO's statutory surplus, compared to NAIC statutory surplus, from the use of these prescribed and permitted practices were as follows: As of December 31, 2015 2014 (Dollars In Millions) Non-admission of goodwill $ (295 ) $ (310 ) Total (net) $ (295 ) $ (310 ) |
Schedule of favorable (unfavorable) effects on the statutory surplus of the Company's insurance subsidiaries, compared to NAIC statutory surplus, from the use of prescribed and permitted practices | The favorable (unfavorable) effects on the statutory surplus of the Company's insurance subsidiaries, compared to NAIC statutory surplus, from the use of these prescribed and permitted practices were as follows: As of December 31, 2015 2014 (Dollars In Millions) Accounting for Letters of Credit as admitted assets $ 1,715 $ 1,735 Accounting for Red Mountain Note as admitted asset $ 500 $ 435 Reserving based on state specific actuarial practices $ 117 $ 112 Reserving difference related to a captive insurance company $ (118 ) $ (87 ) |
FAIR VALUE OF FINANCIAL INSTR63
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value on a recurring basis | The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 (Successor Company): Level 1 Level 2 Level 3 Total (Dollars In Thousands) Assets: Fixed maturity securities—available-for-sale Residential mortgage-backed securities $ — $ 1,765,270 $ 3 $ 1,765,273 Commercial mortgage-backed securities — 1,286,887 — 1,286,887 Other asset-backed securities — 210,020 587,031 797,051 U.S. government-related securities 1,054,353 477,824 — 1,532,177 State, municipalities, and political subdivisions — 1,603,600 — 1,603,600 Other government-related securities — 17,740 — 17,740 Corporate securities 83 24,941,584 902,119 25,843,786 Preferred stock 43,073 19,614 — 62,687 Total fixed maturity securities—available-for-sale 1,097,509 30,322,539 1,489,153 32,909,201 Fixed maturity securities—trading Residential mortgage-backed securities — 286,658 — 286,658 Commercial mortgage-backed securities — 146,743 — 146,743 Other asset-backed securities — 122,511 152,912 275,423 U.S. government-related securities 233,592 4,755 — 238,347 State, municipalities, and political subdivisions — 313,354 — 313,354 Other government-related securities — 58,827 — 58,827 Corporate securities — 1,322,276 18,225 1,340,501 Preferred stock 2,794 1,402 — 4,196 Total fixed maturity securities—trading 236,386 2,256,526 171,137 2,664,049 Total fixed maturity securities 1,333,895 32,579,065 1,660,290 35,573,250 Equity securities 656,437 13,063 69,763 739,263 Other long-term investments (1) 113,699 141,487 96,830 352,016 Short-term investments 261,947 6,771 — 268,718 Total investments 2,365,978 32,740,386 1,826,883 36,933,247 Cash 396,072 — — 396,072 Other assets 19,099 — — 19,099 Assets related to separate accounts Variable annuity 12,829,188 — — 12,829,188 Variable universal life 827,610 — — 827,610 Total assets measured at fair value on a recurring basis $ 16,437,947 $ 32,740,386 $ 1,826,883 $ 51,005,216 Liabilities: Annuity account balances (2) $ — $ — $ 92,512 $ 92,512 Other liabilities (1) 40,067 3,932 585,556 629,555 Total liabilities measured at fair value on a recurring basis $ 40,067 $ 3,932 $ 678,068 $ 722,067 (1) Includes certain freestanding and embedded derivatives. (2) Represents liabilities related to fixed indexed annuities. The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 (Predecessor Company): Level 1 Level 2 Level 3 Total (Dollars In Thousands) Assets: Fixed maturity securities—available-for-sale Residential mortgage-backed securities $ — $ 1,418,255 $ 3 $ 1,418,258 Commercial mortgage-backed securities — 1,177,252 — 1,177,252 Other asset-backed securities — 275,415 563,961 839,376 U.S. government-related securities 1,165,188 263,707 — 1,428,895 State, municipalities, and political subdivisions — 1,684,014 3,675 1,687,689 Other government-related securities — 20,172 — 20,172 Corporate securities 132 26,059,712 1,325,683 27,385,527 Total fixed maturity securities—available-for-sale 1,165,320 30,898,527 1,893,322 33,957,169 Fixed maturity securities—trading Residential mortgage-backed securities — 288,114 — 288,114 Commercial mortgage-backed securities — 151,111 — 151,111 Other asset-backed securities — 105,118 169,461 274,579 U.S. government-related securities 245,563 4,898 — 250,461 State, municipalities, and political subdivisions — 325,446 — 325,446 Other government-related securities — 57,032 — 57,032 Corporate securities — 1,447,333 24,744 1,472,077 Total fixed maturity securities—trading 245,563 2,379,052 194,205 2,818,820 Total fixed maturity securities 1,410,883 33,277,579 2,087,527 36,775,989 Equity securities 630,910 99,266 73,054 803,230 Other long-term investments (1) 119,997 106,079 67,894 293,970 Short-term investments 244,100 6,545 — 250,645 Total investments 2,405,890 33,489,469 2,228,475 38,123,834 Cash 379,411 — — 379,411 Other assets 11,669 — — 11,669 Assets related to separate accounts Variable annuity 13,157,429 — — 13,157,429 Variable universal life 834,940 — — 834,940 Total assets measured at fair value on a recurring basis $ 16,789,339 $ 33,489,469 $ 2,228,475 $ 52,507,283 Liabilities: Annuity account balances (2) $ — $ — $ 97,825 $ 97,825 Other liabilities (1) 62,146 3,741 754,852 820,739 Total liabilities measured at fair value on a recurring basis $ 62,146 $ 3,741 $ 852,677 $ 918,564 (1) Includes certain freestanding and embedded derivatives. (2) Represents liabilities related to fixed indexed annuities. |
Schedule of the valuation method for material financial instruments included in Level 3, as well as the unobservable inputs used in the valuation of the financial instruments | The following table presents the valuation method for material financial instruments included in Level 3, as well as the unobservable inputs used in the valuation of those financial instruments: Successor Company Fair Value As of December 31, 2015 Valuation Technique Unobservable Input Range (Weighted Average) (Dollars In Thousands) Assets: Other asset-backed securities $ 587,031 Discounted cash flow Liquidity premium 0.27% - 1.49% (0.42%) Paydown rate 10.20% - 14.72% (13.11%) Corporate securities 875,810 Discounted cash flow Spread over treasury 0.10% - 19.00% (2.61%) Liabilities: Embedded derivatives—GMWB (1) $ 181,612 Actuarial cash flow model Mortality 1994 MGDB table with company experience Lapse 0.3% - 15%, depending on product/duration/funded status of guarantee Utilization 99%. 10% of policies have a one-time over-utilization of 400% Nonperformance risk 0.18% - 1.04% Annuity account balances (2) 92,512 Actuarial cash flow model Asset earned rate 4.53% - 5.67% Expenses $81 per policy Withdrawal rate 2.20% Mortality 1994 MGDB table with company experience Lapse 2.2% - 33.0%, depending on duration/surrender charge period Return on assets 1.50% - 1.85% depending on surrender charge period Nonperformance risk 0.18% - 1.04% Embedded derivative—FIA 100,329 Actuarial cash flow model Expenses $81.50 per policy Withdrawal rate 1.1% - 4.5% depending on duration and tax qualification Mortality 1994 MGDB table with company experience Lapse 2.5% - 40.0%, depending on duration/surrender charge period Nonperformance risk 0.18% - 1.04% Embedded derivative—IUL 29,629 Actuarial cash flow model Mortality 38% - 153% of 2015 VBT Primary Tables Lapse 0.5% - 10.0%, depending on duration/distribution channel and smoking class Nonperformance risk 0.18% - 1.04% (1) The fair value for the GMWB embedded derivative is presented as a net liability. Excludes modified coinsurance arrangements. (2) Represents liabilities related to fixed indexed annuities. The following table presents the valuation method for material financial instruments included in Level 3, as well as the unobservable inputs used in the valuation of those financial instruments: Predecessor Company Fair Value As of December 31, 2014 Valuation Technique Unobservable Input Range (Weighted Average) (Dollars In Thousands) Assets: Other asset-backed securities $ 563,752 Discounted cash flow Liquidity premium 0.39% - 1.49% (0.69%) Paydown rate 9.70% - 15.80% (12.08%) Corporate securities 1,282,864 Discounted cash flow Spread over treasury 0.33% - 7.50% (2.19%) Liabilities: Embedded derivatives—GMWB (1) $ 245,090 Actuarial cash flow model Mortality 44.5% to 100% of 1994 MGDB table Lapse 0.25% - 17%, depending on product/duration/funded status of guarantee Utilization 97% - 101% Nonperformance risk 0.12% - 0.96% Annuity account balances (2) 97,825 Actuarial cash flow model Asset earned rate 3.86% - 5.92% Expenses $88 - $102 per policy Withdrawal rate 2.20% Mortality 49% to 80% of 1994 MGDB table Lapse 2.2% - 33.0%, depending on duration/surrender charge period Return on assets 1.50% - 1.85% depending on surrender charge period Nonperformance risk 0.12% - 0.96% Embedded derivative—FIA 124,465 Actuarial cash flow model Expenses $83 - $97 per policy Withdrawal rate 1.1% - 4.5% depending on duration and tax qualification Mortality 49% to 80% of 1994 MGDB table Lapse 2.2% - 40.0%, depending on duration/surrender charge period Nonperformance risk 0.12% - 0.96% Embedded derivative - IUL 6,691 Actuarial cash flow model Mortality 37% - 74% of 2008 VBT Primary Tables Lapse 0.5% - 10%, depending on duration/distribution channel and smoking class Nonperformance risk 0.12% - 0.96% (1) The fair value for the GMWB embedded derivative is presented as a net liability. Excludes modified coinsurance arrangements. (2) Represents liabilities related to fixed indexed annuities. |
Schedule of reconciliation of the beginning and ending balances for fair value measurements, for which the Company has used significant unobservable inputs (Level 3) | The following table presents a reconciliation of the beginning and ending balances for fair value measurements for period of February 1, 2015 to December 31, 2015 (Successor Company), for which the Company has used significant unobservable inputs (Level 3): Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date Total Realized and Unrealized Gains Total Realized and Unrealized Losses Beginning Balance Included in Earnings Included in Other Comprehensive Income Included in Earnings Included in Other Comprehensive Income Purchases Sales Issuances Settlements Transfers in/out of Level 3 Other Ending Balance (Dollars In Thousands) Assets: Fixed maturity securities available-for-sale Residential mortgage-backed securities $ 3 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ 3 $ — Commercial mortgage-backed securities — — — — — — — — — — — — — Other asset-backed securities 603,646 — 11,040 (92 ) (17,076 ) — (9,677 ) — — — (810 ) 587,031 — U.S. government-related securities — — — — — — — — — — — — — States, municipals, and political subdivisions 3,675 — — — — — (3,675 ) — — — — — — Other government-related securities — — — — — — — — — — — — — Corporate securities 1,307,259 4,367 24,490 (963 ) (52,898 ) 199,924 (407,052 ) — — (164,588 ) (8,420 ) 902,119 — Total fixed maturity securities— available-for-sale 1,914,583 4,367 35,530 (1,055 ) (69,974 ) 199,924 (420,404 ) — — (164,588 ) (9,230 ) 1,489,153 — Fixed maturity securities—trading Residential mortgage-backed securities — — — — — — — — — — — — — Commercial mortgage-backed securities — — — — — — — — — — — — — Other asset-backed securities 169,473 6,260 — (7,967 ) — 2,000 (15,154 ) — — (1,982 ) 282 152,912 (5,804 ) U.S. government-related securities — — — — — — — — — — — — — States, municipals and political subdivisions — — — — — — — — — — — — — Other government-related securities — — — — — — — — — — — — — Corporate securities 25,130 501 — (1,407 ) — — (5,805 ) — — — (194 ) 18,225 (1,430 ) Total fixed maturity securities—trading 194,603 6,761 — (9,374 ) — 2,000 (20,959 ) — — (1,982 ) 88 171,137 (7,234 ) Total fixed maturity securities 2,109,186 11,128 35,530 (10,429 ) (69,974 ) 201,924 (441,363 ) — — (166,570 ) (9,142 ) 1,660,290 (7,234 ) Equity securities 73,044 — 44 — — — (231 ) — — — (3,094 ) 69,763 — Other long-term investments (1) 93,274 78,095 — (74,539 ) — — — — — — — 96,830 3,556 Short-term investments — — — — — — — — — — — — — Total investments 2,275,504 89,223 35,574 (84,968 ) (69,974 ) 201,924 (441,594 ) — — (166,570 ) (12,236 ) 1,826,883 (3,678 ) Total assets measured at fair value on a recurring basis $ 2,275,504 $ 89,223 $ 35,574 $ (84,968 ) $ (69,974 ) $ 201,924 $ (441,594 ) $ — $ — $ (166,570 ) $ (12,236 ) $ 1,826,883 $ (3,678 ) Liabilities: Annuity account balances (2) $ 98,279 $ — $ — $ (6,156 ) $ — $ — $ — $ 368 $ 12,291 $ — $ — $ 92,512 $ — Other liabilities (1) 742,130 450,253 — (293,679 ) — — — — — — — 585,556 156,574 Total liabilities measured at fair value on a recurring basis $ 840,409 $ 450,253 $ — $ (299,835 ) $ — $ — $ — $ 368 $ 12,291 $ — $ — $ 678,068 $ 156,574 (1) Represents certain freestanding and embedded derivatives. (2) Represents liabilities related to fixed indexed annuities. The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the period of January 1, 2015 to January 31, 2015 (Predecessor Company), for which the Company has used significant unobservable inputs (Level 3): Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date Total Realized and Unrealized Gains Total Realized and Unrealized Losses Beginning Balance Included in Earnings Included in Other Comprehensive Income Included in Earnings Included in Other Comprehensive Income Purchases Sales Issuances Settlements Transfers in/out of Level 3 Other Ending Balance (Dollars In Thousands) Assets: Fixed maturity securities available-for-sale Residential mortgage-backed securities $ 3 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — $ 3 $ — Commercial mortgage-backed securities — — — — — — — — — — — — — Other asset-backed securities 563,961 — — — (3,867 ) — (32 ) — — 43,205 379 603,646 — U.S. government-related securities — — — — — — — — — — — — — States, municipals, and political subdivisions 3,675 — — — — — — — — — — 3,675 — Other government-related securities — — — — — — — — — — — — — Corporate securities 1,325,683 — 12,282 — (23,029 ) — (7,062 ) — — — (615 ) 1,307,259 — Total fixed maturity securities— available-for-sale 1,893,322 — 12,282 — (26,896 ) — (7,094 ) — — 43,205 (236 ) 1,914,583 — Fixed maturity securities—trading Residential mortgage-backed securities — — — — — — — — — — — — — Commercial mortgage-backed securities — — — — — — — — — — — — — Other asset-backed securities 169,461 586 — (139 ) — — (472 ) — — — 37 169,473 447 U.S. government-related securities — — — — — — — — — — — — — States, municipals and political subdivisions — — — — — — — — — — — — — Other government-related securities — — — — — — — — — — — — — Corporate securities 24,744 602 — (196 ) — — (20 ) — — — — 25,130 406 Total fixed maturity securities—trading 194,205 1,188 — (335 ) — — (492 ) — — — 37 194,603 853 Total fixed maturity securities 2,087,527 1,188 12,282 (335 ) (26,896 ) — (7,586 ) — — 43,205 (199 ) 2,109,186 853 Equity securities 73,054 — — — (10 ) — — — — — — 73,044 — Other long-term investments (1) 67,894 753 — (25,902 ) — — — — — — — 42,745 (25,149 ) Short-term investments — — — — — — — — — — — — — Total investments 2,228,475 1,941 12,282 (26,237 ) (26,906 ) — (7,586 ) — — 43,205 (199 ) 2,224,975 (24,296 ) Total assets measured at fair value on a recurring basis $ 2,228,475 $ 1,941 $ 12,282 $ (26,237 ) $ (26,906 ) $ — $ (7,586 ) $ — $ — $ 43,205 $ (199 ) $ 2,224,975 $ (24,296 ) Liabilities: Annuity account balances (2) $ 97,825 $ — $ — $ (536 ) $ — $ — $ — $ 7 $ 419 $ — $ — $ 97,949 $ — Other liabilities (1) 754,852 61 — (253,773 ) — — — — — — — 1,008,564 (253,712 ) Total liabilities measured at fair value on a recurring basis $ 852,677 $ 61 $ — $ (254,309 ) $ — $ — $ — $ 7 $ 419 $ — $ — $ 1,106,513 $ (253,712 ) (1) Represents certain freestanding and embedded derivatives. (2) Represents liabilities related to fixed indexed annuities. The following table presents a reconciliation of the beginning and ending balances for fair value measurements for the year ended December 31, 2014 (Predecessor Company), for which the Company has used significant unobservable inputs (Level 3): Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date Total Realized and Unrealized Gains Total Realized and Unrealized Losses Beginning Balance Included in Earnings Included in Other Comprehensive Income Included in Earnings Included in Other Comprehensive Income Purchases Sales Issuances Settlements Transfers in/out of Level 3 Other Ending Balance (Dollars In Thousands) Assets: Fixed maturity securities available-for-sale Residential mortgage-backed securities $ 28 $ — $ — $ — $ (1 ) $ — $ (24 ) $ — $ — $ — $ — $ 3 $ — Commercial mortgage-backed securities — — — — — — — — — — — — — Other asset-backed securities 545,808 — 36,395 (248 ) (8,033 ) — (10,064 ) — — — 103 563,961 — U.S. government-related securities — — — — — — — — — — — — — States, municipals, and political subdivisions 3,675 — — — — — — — — — — 3,675 — Other government-related securities — — — — — — — — — — — — — Corporate securities 1,549,940 1,183 67,955 (2 ) (33,553 ) 139,029 (226,073 ) — — (162,236 ) (10,560 ) 1,325,683 — Total fixed maturity securities—available-for-sale 2,099,451 1,183 104,350 (250 ) (41,587 ) 139,029 (236,161 ) — — (162,236 ) (10,457 ) 1,893,322 — Fixed maturity securities—trading Residential mortgage-backed securities — 11 — — — 842 — — — (853 ) — — — Commercial mortgage-backed securities — — — — — — — — — — — — — Other asset-backed securities 194,977 9,507 — (5,508 ) — — (30,462 ) — — — 947 169,461 1,083 U.S. government-related securities — — — — — — — — — — — — — States, municipals and political subdivisions — — — — — — — — — — — — — Other government-related securities — — — — — — — — — — — — — Corporate securities 29,199 1,294 — (1,098 ) — 5,839 (10,770 ) — — 4 276 24,744 (121 ) Total fixed maturity securities—trading 224,176 10,812 — (6,606 ) — 6,681 (41,232 ) — — (849 ) 1,223 194,205 962 Total fixed maturity securities 2,323,627 11,995 104,350 (6,856 ) (41,587 ) 145,710 (277,393 ) — — (163,085 ) (9,234 ) 2,087,527 962 Equity securities 71,881 1,298 3,653 — (261 ) 9,551 (2,416 ) — — (10,651 ) (1 ) 73,054 — Other long-term investments (1) 196,133 478 — (128,717 ) — — — — — — — 67,894 (128,239 ) Short-term investments — — — — — — — — — — — — — Total investments 2,591,641 13,771 108,003 (135,573 ) (41,848 ) 155,261 (279,809 ) — — (173,736 ) (9,235 ) 2,228,475 (127,277 ) Total assets measured at fair value on a recurring basis $ 2,591,641 $ 13,771 $ 108,003 $ (135,573 ) $ (41,848 ) $ 155,261 $ (279,809 ) $ — $ — $ (173,736 ) $ (9,235 ) $ 2,228,475 $ (127,277 ) Liabilities: Annuity account balances (2) $ 107,000 $ — $ — $ (4,307 ) $ — $ — $ — $ 685 $ 14,167 $ — $ — $ 97,825 $ — Other liabilities (1) 270,630 22,547 — (506,769 ) — — — — — — — 754,852 (484,222 ) Total liabilities measured at fair value on a recurring basis $ 377,630 $ 22,547 $ — $ (511,076 ) $ — $ — $ — $ 685 $ 14,167 $ — $ — $ 852,677 $ (484,222 ) (1) Represents certain freestanding and embedded derivatives. (2) Represents liabilities related to fixed indexed annuities. |
Schedule of the carrying amounts and estimated fair value of the Company's financial instruments | The carrying amounts and estimated fair values of the Company's financial instruments as of the periods shown below are as follows: Successor Company Predecessor Company As of As of December 31, 2015 December 31, 2014 Fair Value Level Carrying Amounts Fair Values Carrying Amounts Fair Values (Dollars In Thousands) (Dollars In Thousands) Assets: Mortgage loans on real estate 3 $ 5,662,812 $ 5,529,803 $ 5,133,780 $ 5,524,059 Policy loans 3 1,699,508 1,699,508 1,758,237 1,758,237 Fixed maturities, held-to-maturity (1) 3 593,314 515,000 435,000 485,422 Liabilities: Stable value product account balances 3 $ 2,131,822 $ 2,124,712 $ 1,959,488 $ 1,973,624 Annuity account balances 3 10,719,862 10,274,571 10,950,729 10,491,775 Debt: Bank borrowings 3 $ 485,000 $ 485,000 $ 450,000 $ 450,000 Senior Notes 2 1,103,806 1,020,025 850,000 1,100,380 Subordinated debt securities 2 448,763 457,275 540,593 552,098 Non-recourse funding obligations (2) 3 685,684 614,380 582,404 578,212 Except as noted below, fair values were estimated using quoted market prices. (1) Security purchased from unconsolidated subsidiary, Red Mountain LLC. (2) Of this carrying amount $500.0 million , fair value of $495.5 million , as of December 31, 2015 (Successor Company), and $435.0 million , fair value of $461.4 million , as of December 31, 2014 (Predecessor Company), relates to non-recourse funding obligations issued by Golden Gate V. |
DERIVATIVE FINANCIAL INSTRUME64
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of realized investments gains and losses | The following table sets forth realized investment gains and losses for the periods shown: Realized investment gains (losses)—derivative financial instruments Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Derivatives related to variable annuity contracts: Interest rate futures - VA $ (14,818 ) $ 1,413 $ 27,801 $ (31,216 ) Equity futures - VA (5,033 ) 9,221 (26,104 ) (52,640 ) Currency futures - VA 7,169 7,778 14,433 (469 ) Variance swaps - VA — — (744 ) (11,310 ) Equity options - VA (27,733 ) 3,047 (41,216 ) (95,022 ) Volatility options - VA — — — (115 ) Interest rate swaptions - VA (13,354 ) 9,268 (22,280 ) 1,575 Interest rate swaps - VA (85,942 ) 122,710 214,164 (157,408 ) Embedded derivative - GMWB 4,412 (207,018 ) (401,354 ) 325,497 Total derivatives related to VA contracts (135,299 ) (53,581 ) (235,300 ) (21,108 ) Derivatives related to FIA contracts: Embedded derivative - FIA (738 ) 1,769 (16,932 ) (942 ) Equity futures - FIA (355 ) (184 ) 870 173 Volatility futures - FIA 5 — 20 (5 ) Equity options - FIA 1,211 (2,617 ) 9,906 1,866 Total derivatives related to FIA contracts 123 (1,032 ) (6,136 ) 1,092 Derivatives related to IUL contracts: Embedded derivative - IUL (614 ) (486 ) (8 ) — Equity futures - IUL 144 3 15 — Equity options - IUL (540 ) (115 ) 150 — Total derivatives related to IUL contracts (1,010 ) (598 ) 157 — Embedded derivative - Modco reinsurance treaties 166,092 (68,026 ) (105,276 ) 205,176 Interest rate swaps — — — 2,985 Other derivatives 91 (37 ) (323 ) (14 ) Total realized gains (losses)—derivatives $ 29,997 $ (123,274 ) $ (346,878 ) $ 188,131 |
Schedule of realized investments gains and losses for Modco trading portfolio that is included in realized investment gains (losses) - all other investments | The following table sets forth realized investment gains and losses for the Modco trading portfolio that is included in realized investment gains (losses)—all other investments: Realized investment gains (losses)—all other investments Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Modco trading portfolio (1) $ (167,359 ) $ 73,062 $ 142,016 $ (178,134 ) (1) The Company elected to include the use of alternate disclosures for trading activities. |
Schedule of components of the gain or loss on derivatives that qualify as a cash flow hedging relationship | The following tables present the components of the gain or loss on derivatives that qualify as a cash flow hedging relationship: Gain (Loss) on Derivatives in Cash Flow Relationship Amount of Gains (Losses) Deferred in Accumulated Other Comprehensive Income (Loss) on Derivatives Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) Amount and Location of (Losses) Recognized in Income (Loss) on Derivatives (Effective Portion) (Effective Portion) (Ineffective Portion) Benefits and settlement expenses Realized investment gains (losses) (Dollars In Thousands) Successor Company February 1, 2015 to December 31, 2015 Inflation $ (131 ) $ (131 ) $ 73 Total $ (131 ) $ (131 ) $ 73 Predecessor Company January 1, 2015 to January 31, 2015 Inflation $ 13 $ (36 ) $ (7 ) Total $ 13 $ (36 ) $ (7 ) Predecessor Company For The Year Ended December 31, 2014 Inflation $ (4 ) $ (1,777 ) $ (223 ) Total $ (4 ) $ (1,777 ) $ (223 ) Predecessor Company For The Year Ended December 31, 2013 Inflation $ 1,130 $ (2,349 ) $ (190 ) Total $ 1,130 $ (2,349 ) $ (190 ) |
Schedule of information about the nature and accounting treatment of the Company's primary derivative financial instruments and the location in and effect on the consolidated financial statements | The tables below present information about the nature and accounting treatment of the Company's primary derivative financial instruments and the location in and effect on the consolidated financial statements for the periods presented below: Successor Company Predecessor Company As of December 31, 2015 As of December 31, 2014 Notional Amount Fair Value Notional Amount Fair Value (Dollars In Thousands) (Dollars In Thousands) Other long-term investments Derivatives not designated as hedging instruments: Interest rate swaps $ 1,435,000 $ 66,408 $ 1,550,000 $ 50,743 Embedded derivative - Modco reinsurance treaties 64,593 1,215 25,760 1,051 Embedded derivative - GMWB 3,769,601 95,614 2,804,629 66,843 Interest rate futures 282,373 1,537 27,977 938 Equity futures 262,485 1,275 26,483 427 Currency futures 226,936 2,499 197,648 2,384 Equity options 2,198,340 179,458 1,921,167 163,212 Interest rate swaptions 225,000 3,663 625,000 8,012 Other 242 347 242 360 $ 8,464,570 $ 352,016 $ 7,178,906 $ 293,970 Other liabilities Cash flow hedges: Inflation $ — $ — $ 40,469 $ 142 Derivatives not designated as hedging instruments: Interest rate swaps 475,000 16,579 275,000 3,599 Variance swaps — — — — Embedded derivative - Modco reinsurance treaties 2,473,427 178,362 2,562,848 311,727 Embedded derivative - GMWB 6,539,658 277,236 7,038,228 311,969 Embedded derivative - FIA 1,110,790 100,329 749,933 124,465 Embedded derivative - IUL 57,760 29,629 12,019 6,691 Interest rate futures 793,763 1,539 — — Equity futures 233,412 2,599 385,256 15,069 Currency futures 46,692 1,115 — — Equity options 1,205,204 22,167 699,295 47,077 $ 12,935,706 $ 629,555 $ 11,763,048 $ 820,739 |
OFFSETTING OF ASSETS AND LIAB65
OFFSETTING OF ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Offsetting [Abstract] | |
Schedule of derivative instruments by assets | The tables below present the derivative instruments by assets and liabilities for the Company as of December 31, 2014 (Predecessor Company): Net Amounts of Assets Presented in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position Gross Amounts Offset in the Statement of Financial Position Gross Amounts of Recognized Assets Financial Instruments Cash Collateral Received Net Amount (Dollars In Thousands) Offsetting of Derivative Assets Derivatives: Free-Standing derivatives $ 225,716 $ — $ 225,716 $ 53,612 $ 73,935 $ 98,169 Total derivatives, subject to a master netting arrangement or similar arrangement 225,716 — 225,716 53,612 73,935 98,169 Derivatives not subject to a master netting arrangement or similar arrangement Embedded derivative - Modco reinsurance treaties 1,051 — 1,051 — — 1,051 Embedded derivative - GMWB 66,843 — 66,843 — — 66,843 Other 360 — 360 — — 360 Total derivatives, not subject to a master netting arrangement or similar arrangement 68,254 — 68,254 — — 68,254 Total derivatives 293,970 — 293,970 53,612 73,935 166,423 Total Assets $ 293,970 $ — $ 293,970 $ 53,612 $ 73,935 $ 166,423 The tables below present the derivative instruments by assets and liabilities for the Company as of December 31, 2015 (Successor Company): Net Amounts of Assets Presented in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position Gross Amounts Offset in the Statement of Financial Position Gross Amounts of Recognized Assets Financial Instruments Cash Collateral Received Net Amount (Dollars In Thousands) Offsetting of Derivative Assets Derivatives: Free-Standing derivatives $ 254,840 $ — $ 254,840 $ 42,382 $ 105,842 $ 106,616 Total derivatives, subject to a master netting arrangement or similar arrangement 254,840 — 254,840 42,382 105,842 106,616 Derivatives not subject to a master netting arrangement or similar arrangement Embedded derivative - Modco reinsurance treaties 1,215 — 1,215 — — 1,215 Embedded derivative - GMWB 95,614 — 95,614 — — 95,614 Other 347 — 347 — — 347 Total derivatives, not subject to a master netting arrangement or similar arrangement 97,176 — 97,176 — — 97,176 Total derivatives 352,016 — 352,016 42,382 105,842 203,792 Total Assets $ 352,016 $ — $ 352,016 $ 42,382 $ 105,842 $ 203,792 |
Schedule of derivative instruments by liabilities | Net Amounts of Liabilities Presented in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position Gross Amounts Offset in the Statement of Financial Position Gross Amounts of Recognized Liabilities Financial Instruments Cash Collateral Paid Net Amount (Dollars In Thousands) Offsetting of Derivative Liabilities Derivatives: Free-Standing derivatives $ 43,999 $ — $ 43,999 $ 42,382 $ 1,617 $ — Total derivatives, subject to a master netting arrangement or similar arrangement 43,999 — 43,999 42,382 1,617 — Derivatives not subject to a master netting arrangement or similar arrangement Embedded derivative - Modco reinsurance treaties 178,362 — 178,362 — — 178,362 Embedded derivative - GMWB 277,236 — 277,236 — — 277,236 Embedded derivative - FIA 100,329 — 100,329 — — 100,329 Embedded derivative - IUL 29,629 — 29,629 — — 29,629 Total derivatives, not subject to a master netting arrangement or similar arrangement 585,556 — 585,556 — — 585,556 Total derivatives 629,555 — 629,555 42,382 1,617 585,556 Repurchase agreements (1) 438,185 — 438,185 — — 438,185 Total Liabilities $ 1,067,740 $ — $ 1,067,740 $ 42,382 $ 1,617 $ 1,023,741 (1) Borrowings under repurchase agreements are for a term less than 90 days. Net Amounts of Liabilities Presented in the Statement of Financial Position Gross Amounts Not Offset in the Statement of Financial Position Gross Amounts Offset in the Statement of Financial Position Gross Amounts of Recognized Liabilities Financial Instruments Cash Collateral Paid Net Amount (Dollars In Thousands) Offsetting of Derivative Liabilities Derivatives: Free-Standing derivatives $ 65,887 $ — $ 65,887 $ 53,612 $ 12,258 $ 17 Total derivatives, subject to a master netting arrangement or similar arrangement 65,887 — 65,887 53,612 12,258 17 Derivatives not subject to a master netting arrangement or similar arrangement Embedded derivative - Modco reinsurance treaties 311,727 — 311,727 — — 311,727 Embedded derivative - GMWB 311,969 — 311,969 — — 311,969 Embedded derivative - FIA 124,465 — 124,465 — — 124,465 Embedded derivative - IUL 6,691 — 6,691 — — 6,691 Total derivatives, not subject to a master netting arrangement or similar arrangement 754,852 — 754,852 — — 754,852 Total derivatives 820,739 — 820,739 53,612 12,258 754,869 Repurchase agreements (1) 50,000 — 50,000 — — 50,000 Total Liabilities $ 870,739 $ — $ 870,739 $ 53,612 $ 12,258 $ 804,869 (1) Borrowings under repurchase agreements are for a term less than 90 days. |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Summary of financial information for the Company's segments | The following tables summarize financial information for the Company's segments (Predecessor and Successor period are not comparable): Successor Company Predecessor Company February 1, 2015 January 1, 2015 For The Year Ended December 31, 2014 2013 (Dollars In Thousands) (Dollars In Thousands) Revenues Life Marketing $ 1,426,090 $ 145,595 $ 1,549,351 $ 1,444,806 Acquisitions 1,333,430 139,761 1,720,179 1,186,579 Annuities 443,419 7,884 533,404 714,552 Stable Value Products 79,670 8,181 127,653 122,790 Asset Protection 261,693 21,953 276,011 278,317 Corporate and Other 166,367 17,535 196,974 211,955 Total revenues $ 3,710,669 $ 340,909 $ 4,403,572 $ 3,958,999 Segment Operating Income (Loss) Life Marketing $ 57,414 $ (1,618 ) $ 121,448 $ 110,298 Acquisitions 194,654 20,134 254,021 154,003 Annuities 180,231 13,164 227,611 184,130 Stable Value Products 56,581 4,529 73,354 80,561 Asset Protection 20,627 2,420 32,480 26,795 Corporate and Other (25,067 ) (10,144 ) (56,720 ) (40,562 ) Total segment operating income 484,440 28,485 652,194 515,225 Realized investment gains (losses)—investments (1)(3) (185,153 ) 89,815 207,307 (172,720 ) Realized investment gains (losses)—derivatives (2) 100,555 (117,118 ) (276,212 ) 247,868 Income tax (expense) benefit (131,543 ) 327 (198,414 ) (196,909 ) Net income $ 268,299 $ 1,509 $ 384,875 $ 393,464 (1) Investment (losses) gains $ (193,879 ) $ 80,672 $ 198,127 $ (145,984 ) Less: amortization related to DAC/VOBA and benefits and settlement expenses (8,726 ) (9,143 ) (9,180 ) 26,736 Realized investment gains (losses)—investments $ (185,153 ) $ 89,815 $ 207,307 $ (172,720 ) (2) Derivatives gains (losses) $ 29,997 $ (123,274 ) $ (346,878 ) $ 188,131 Less: VA GMWB economic cost (70,558 ) (6,156 ) (70,666 ) (59,737 ) Realized investment gains (losses)—derivatives $ 100,555 $ (117,118 ) $ (276,212 ) $ 247,868 Net investment income Life Marketing $ 446,439 $ 47,460 $ 554,004 $ 521,665 Acquisitions 639,422 71,088 874,653 617,298 Annuities 297,114 37,189 465,845 468,322 Stable Value Products 78,459 6,888 107,170 123,798 Asset Protection 17,459 1,878 22,703 23,179 Corporate and Other 154,055 10,677 173,349 163,819 Total net investment income $ 1,632,948 $ 175,180 $ 2,197,724 $ 1,918,081 Amortization of DAC and VOBA Life Marketing $ 107,811 $ 4,813 $ 175,807 $ 25,774 Acquisitions 2,035 5,033 60,031 72,762 Annuities (41,071 ) (7,706 ) (4,651 ) 62,834 Stable Value Products 43 25 380 398 Asset Protection 25,211 1,820 25,257 30,505 Corporate and Other 27 87 485 625 Total amortization of DAC and VOBA $ 94,056 $ 4,072 $ 257,309 $ 192,898 (3) Includes credit related other-than-temporary impairments of $27.0 million , $0.5 million , $7.3 million , and $22.4 million for the period of February 1, 2015 to December 31, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company) and for the years ended December 31, 2014 and 2013 (Predecessor Company), respectively. Successor Company Operating Segment Assets As of December 31, 2015 (Dollars In Thousands) Life Marketing Acquisitions Annuities Stable Value Products Investments and other assets $ 13,258,639 $ 19,879,988 $ 19,926,108 $ 2,006,263 Deferred policy acquisition costs and value of business acquired 1,119,515 (178,662 ) 578,742 2,357 Other intangibles 319,623 39,658 196,780 9,389 Goodwill 200,274 14,524 336,677 113,813 Total assets $ 14,898,051 $ 19,755,508 $ 21,038,307 $ 2,131,822 Asset Protection Corporate and Other Adjustments Total Consolidated Investments and other assets $ 897,326 $ 9,583,991 $ — $ 65,552,315 Deferred policy acquisition costs and value of business acquired 36,856 — — 1,558,808 Other intangibles 79,681 — — 645,131 Goodwill 67,155 — — 732,443 Total assets $ 1,081,018 $ 9,583,991 $ — $ 68,488,697 Predecessor Company Operating Segment Assets As of December 31, 2014 (Dollars In Thousands) Life Marketing Acquisitions Annuities Stable Value Products Investments and other assets $ 13,858,491 $ 19,858,284 $ 20,783,373 $ 1,958,867 Deferred policy acquisition costs and value of business acquired 1,973,156 600,482 684,574 621 Goodwill 10,192 29,419 — — Total assets $ 15,841,839 $ 20,488,185 $ 21,467,947 $ 1,959,488 Asset Protection Corporate and Other Adjustments Total Consolidated Investments and other assets $ 927,202 $ 9,697,154 $ — $ 67,083,371 Deferred policy acquisition costs and value of business acquired 35,418 319 — 3,294,570 Goodwill 62,671 83 — 102,365 Total assets $ 1,025,291 $ 9,697,556 $ — $ 70,480,306 |
CONSOLIDATED QUARTERLY RESULT67
CONSOLIDATED QUARTERLY RESULTS - UNAUDITED (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of unaudited consolidated quarterly operating data | The Company's unaudited consolidated quarterly operating data for the period of February 1, 2015 to December 31, 2015 (Successor Company), the period of January 1, 2015 to January 31, 2015 (Predecessor Company), and for the year ended December 31, 2014 (Predecessor Company) is presented below. In the opinion of management, all adjustments (consisting only of normal recurring items) necessary for a fair statement of quarterly results have been reflected in the following data. It is also management's opinion, however, that quarterly operating data for insurance enterprises are not necessarily indicative of results that may be expected in succeeding quarters or years. In order to obtain a more accurate indication of performance, there should be a review of operating results, changes in shareowner's equity, and cash flows for a period of several quarters. First Quarter (1) Second Quarter Third Quarter Fourth Quarter (Dollars In Thousands) Successor Company February 1, 2015 to December 31, 2015 Premiums and policy fees $ 509,008 $ 832,088 $ 797,741 $ 869,213 Reinsurance ceded (141,401 ) (345,244 ) (306,774 ) (361,559 ) Net of reinsurance ceded 367,607 486,844 490,967 507,654 Net investment income 288,872 436,291 440,620 467,165 Realized investment gains (losses) (1,415 ) (13,468 ) (79,306 ) (69,693 ) Other income 67,263 109,094 108,312 103,862 Total revenues 722,327 1,018,761 960,593 1,008,988 Total benefits and expenses 629,500 921,851 873,333 886,143 Income before income tax 92,827 96,910 87,260 122,845 Income tax expense 29,966 33,070 26,853 41,654 Net income $ 62,861 $ 63,840 $ 60,407 $ 81,191 (1) First quarter includes February 1, 2015 to March 31, 2015 First Second Quarter Third Quarter Fourth Quarter (Dollars In Thousands, Except Per Share Amounts) Predecessor Company For The Year Ended December 31, 2014 Premiums and policy fees $ 815,896 $ 851,802 $ 759,038 $ 871,032 Reinsurance ceded (327,713 ) (342,968 ) (277,136 ) (425,780 ) Net of reinsurance ceded 488,183 508,834 481,902 445,252 Net investment income 538,163 550,816 558,174 550,571 Realized investment gains (losses) (34,827 ) (11,238 ) 2,621 (105,307 ) Other income 99,039 106,931 105,389 119,069 Total revenues 1,090,558 1,155,343 1,148,086 1,009,585 Total benefits and expenses 965,353 993,133 963,203 898,594 Income before income tax 125,205 162,210 184,883 110,991 Income tax expense 41,566 54,233 65,974 36,641 Net income $ 83,639 $ 107,977 $ 118,909 $ 74,350 Net income—basic $ 1.05 $ 1.35 $ 1.48 $ 0.92 Average shares outstanding—basic 79,608,461 79,979,153 80,231,591 80,430,799 Net income—diluted $ 1.03 $ 1.33 $ 1.46 $ 0.91 Average shares outstanding—diluted 80,872,152 81,446,277 81,458,870 81,714,510 January 1, 2015 Predecessor Company (Dollars In Thousands, Except Per Share Amounts) Premiums and policy fees $ 261,866 Reinsurance ceded (89,956 ) Net of reinsurance ceded 171,910 Net investment income 175,180 Realized investment gains (losses) (42,602 ) Other income 36,421 Total revenues 340,909 Total benefits and expenses 339,727 Income before income tax 1,182 Income tax benefit (327 ) Net income $ 1,509 Net income - basic $ 0.02 Average shares outstanding - basic 80,452,848 Net income - diluted $ 0.02 Average shares outstanding - diluted 81,759,287 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) $ in Millions | 11 Months Ended | |
Dec. 31, 2015 | Feb. 01, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Goodwill | $ 732.4 | $ 735.7 |
Decrease in goodwill | $ 3.3 |
SUMMARY OF SIGNIFICANT ACCOUN69
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)primary_source | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($)input_method | |
Valuation of investment securities | |||
Number of primary sources of information used for determining fair value | primary_source | 1 | ||
Total number of primary sources of information available for determining fair value | 3 | 3 | |
Cash | |||
Negative balances due to outstanding checks and drafts | $ | $ 70.3 | $ 70.3 | $ 70.3 |
Deferred policy acquisition costs | |||
Interest rate assumptions to compute liabilities for future policy benefits, low end of the range (as a percent) | 1.00% | ||
Interest rate assumptions to compute liabilities for future policy benefits, high end of the range (as a percent) | 8.00% |
SUMMARY OF SIGNIFICANT ACCOUN70
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Predecessor | ||
Property and equipment | ||
Total property and equipment, gross | $ 171,340 | |
Accumulated depreciation | (118,487) | |
Total property and equipment | 52,853 | |
Successor | ||
Property and equipment | ||
Total property and equipment, gross | $ 111,142 | |
Accumulated depreciation | (8,277) | |
Total property and equipment | $ 102,865 | |
Home office building | ||
Property and equipment | ||
Useful life | 25 years | |
Home office building | Predecessor | ||
Property and equipment | ||
Total property and equipment, gross | 75,109 | |
Home office building | Successor | ||
Property and equipment | ||
Total property and equipment, gross | $ 90,617 | |
Furniture | ||
Property and equipment | ||
Useful life | 10 years | |
Office equipment and machines | ||
Property and equipment | ||
Useful life | 5 years | |
Software and computers | ||
Property and equipment | ||
Useful life | 3 years | |
Data processing equipment | Predecessor | ||
Property and equipment | ||
Total property and equipment, gross | 40,919 | |
Data processing equipment | Successor | ||
Property and equipment | ||
Total property and equipment, gross | $ 14,607 | |
Other, principally furniture and equipment | Predecessor | ||
Property and equipment | ||
Total property and equipment, gross | $ 55,312 | |
Other, principally furniture and equipment | Successor | ||
Property and equipment | ||
Total property and equipment, gross | $ 5,918 |
SUMMARY OF SIGNIFICANT ACCOUN71
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Future maturities of stable value products | ||
2,016 | $ 534.7 | |
2017-2018 | 1,068.1 | |
2019-2020 | 451.2 | |
Thereafter | $ 62.3 | |
Minimum | ||
Summarized financial information for the company's segments | ||
Maturities of GICs and funding agreements | 1 year | |
Maximum | ||
Summarized financial information for the company's segments | ||
Maturities of GICs and funding agreements | 10 years | |
Predecessor | ||
Summarized financial information for the company's segments | ||
Stable value product account balances marketed through structured programs | $ 39.8 | |
Successor | ||
Summarized financial information for the company's segments | ||
Stable value product account balances marketed through structured programs | $ 400.7 |
SUMMARY OF SIGNIFICANT ACCOUN72
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) - USD ($) | 3 Months Ended | 11 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2015 | Feb. 01, 2015 | |
Goodwill | |||
Goodwill | $ 732,400,000 | $ 732,400,000 | $ 735,700,000 |
Decrease in goodwill | 3,300,000 | ||
Guaranteed minimum withdrawal benefits (GMWB) | Annuity account | |||
Guaranteed Minimum Withdrawal Benefits | |||
Decrease in net GMWB liability | 266,100,000 | ||
Successor | |||
Goodwill | |||
Goodwill | 732,443,000 | 732,443,000 | $ 735,700,000 |
Goodwill impairment | 0 | ||
Successor | Guaranteed minimum withdrawal benefits (GMWB) | Annuity account | |||
Guaranteed Minimum Withdrawal Benefits | |||
Net GMWB liability | $ 181,600,000 | $ 181,600,000 |
SUMMARY OF SIGNIFICANT ACCOUN73
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Successor | |||||
Liability for unpaid claims and claims adjustment expense | |||||
Reserve investment yield assumptions, low end of the range (as a percent) | 2.80% | ||||
Reserve investment yield assumptions, high end of the range (as a percent) | 4.50% | ||||
Other changes: | |||||
Add: reinsurance | $ 5,536,751 | $ 5,536,751 | |||
Successor | Life and health insurance | |||||
Activity in the liability for unpaid claims for life and health insurance | |||||
Balance beginning of year | 403,009 | ||||
Less: reinsurance | 149,618 | ||||
Net balance beginning of year | 253,391 | ||||
Incurred related to: | |||||
Current year | 973,175 | ||||
Prior year | 95,977 | ||||
Total incurred | 1,069,152 | ||||
Paid related to: | |||||
Current year | 939,824 | ||||
Prior year | 111,222 | ||||
Total paid | 1,051,046 | ||||
Other changes: | |||||
Net balance end of year | $ 253,391 | 271,497 | 271,497 | ||
Add: reinsurance | 149,618 | 112,537 | 112,537 | ||
Balance end of year | 403,009 | 384,034 | 384,034 | ||
Predecessor | |||||
Activity in the liability for unpaid claims for life and health insurance | |||||
Less: reinsurance | 6,106,113 | 6,106,113 | |||
Other changes: | |||||
Add: reinsurance | $ 6,106,113 | ||||
Predecessor | Life and health insurance | |||||
Activity in the liability for unpaid claims for life and health insurance | |||||
Balance beginning of year | 419,401 | 403,009 | 419,401 | 334,450 | $ 326,633 |
Less: reinsurance | 163,671 | 149,618 | 163,671 | 117,502 | 155,341 |
Net balance beginning of year | 255,730 | $ 253,391 | $ 255,730 | 216,948 | 171,292 |
Incurred related to: | |||||
Current year | 97,573 | 1,075,005 | 698,028 | ||
Prior year | 9,360 | 102,936 | 68,396 | ||
Total incurred | 106,933 | 1,177,941 | 766,424 | ||
Paid related to: | |||||
Current year | 98,281 | 1,017,193 | 682,877 | ||
Prior year | 10,991 | 121,966 | 85,146 | ||
Total paid | 109,272 | 1,139,159 | 768,023 | ||
Other changes: | |||||
Acquisition and reserve transfers | 0 | 0 | 47,255 | ||
Net balance end of year | 253,391 | 255,730 | 216,948 | ||
Add: reinsurance | 149,618 | 163,671 | 117,502 | ||
Balance end of year | $ 403,009 | $ 419,401 | $ 334,450 |
SUMMARY OF SIGNIFICANT ACCOUN74
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 6) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Jan. 31, 2015 | |
CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS | ||
Interest rate credited to policy account balances for universal life, low end of range (as a percent) | 1.00% | |
Interest rate credited to policy account balances for universal life, high end of range (as a percent) | 8.75% | |
Minimum | ||
CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS | ||
Interest rate credited to policy account balances for investment products (as a percent) | 0.20% | |
Maximum | ||
CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS | ||
Interest rate credited to policy account balances for investment products (as a percent) | 9.80% | |
Successor | Annuity account | Guaranteed minimum death benefits (GMDB) | ||
CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS | ||
Guaranteed benefit liability | $ 36,427 | $ 29,010 |
SUMMARY OF SIGNIFICANT ACCOUN75
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 7) - USD ($) $ in Millions | 3 Months Ended | 11 Months Ended |
Dec. 31, 2015 | Dec. 31, 2015 | |
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Decrease in goodwill | $ 3.3 | |
New Accounting Pronouncement, Early Adoption, Effect | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Decrease in goodwill | $ 3.3 |
RECENTLY ANNOUNCED REINSURANC76
RECENTLY ANNOUNCED REINSURANCE AND FINANCING TRANSACTIONS (Details) - Subsequent Event | Jan. 15, 2016USD ($) |
Debt Instrument [Line Items] | |
Estimated average annual expense of credit enhancement | $ 3,100,000 |
Financing Agreement With Golden Gate And Syndicate ff Risk Takers | |
Debt Instrument [Line Items] | |
Term of financing agreement | 18 years |
Financing capacity under the agreement | $ 2,188,000,000 |
Golden Gate | |
Debt Instrument [Line Items] | |
Extraordinary dividend | 300,000,000 |
Golden Gate | Non-recourse Funding Obligations Series | |
Debt Instrument [Line Items] | |
Outstanding non-recourse funding obligations | 800,000,000 |
Golden Gate | Surplus Notes | Steel City Notes | |
Debt Instrument [Line Items] | |
Amount of debt issued | 2,188,000,000 |
Steel City | Surplus Notes | Golden Gate Surplus Notes | |
Debt Instrument [Line Items] | |
Amount of debt issued | $ 2,188,000,000 |
DAI-ICHI MERGER (Details)
DAI-ICHI MERGER (Details) - USD ($) | Feb. 01, 2015 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||
Per share merger consideration (in dollars per share) | $ 70 | |
Goodwill | $ 735,700,000 | $ 732,400,000 |
Decrease in goodwill | 3,300,000 | |
Dai-ichi Life | Protective Life Corporation | ||
Business Acquisition [Line Items] | ||
Per share merger consideration (in dollars per share) | $ 70 | |
Aggregate cash consideration | $ 5,600,000,000 | |
Goodwill | 735,712,000 | |
Decrease in goodwill | 3,300,000 | |
Successor | ||
Business Acquisition [Line Items] | ||
Goodwill | $ 735,700,000 | 732,443,000 |
Successor | Dai-ichi Life | Protective Life Corporation | ||
Business Acquisition [Line Items] | ||
Goodwill | 732,400,000 | |
Tax deductible goodwill | $ 0 |
DAI-CHI MERGER (Details 2)
DAI-CHI MERGER (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Feb. 01, 2015 |
Assets | ||
Goodwill | $ 732,400 | $ 735,700 |
Dai-ichi Life | Protective Life Corporation | ||
Assets | ||
Fixed maturities | 38,363,025 | |
Equity securities | 745,512 | |
Mortgage loans | 5,580,229 | |
Investment real estate | 7,456 | |
Policy loans | 1,751,872 | |
Other long-term investments | 686,507 | |
Short-term investments | 316,167 | |
Total investments | 47,450,768 | |
Cash | 462,710 | |
Accrued investment income | 484,021 | |
Accounts and premiums receivable | 112,182 | |
Reinsurance receivables | 5,724,020 | |
Value of business acquired | 1,276,886 | |
Goodwill | 735,712 | |
Other intangibles | 683,000 | |
Property and equipment | 104,364 | |
Other assets | 120,762 | |
Income tax receivable | 15,458 | |
Variable annuity | 12,970,587 | |
Variable universal life | 819,188 | |
Liabilities | 70,959,658 | |
Liabilities | ||
Future policy and benefit claims | 30,195,841 | |
Unearned premiums | 682,183 | |
Total policy liabilities and accruals | 30,878,024 | |
Stable value product account balances | 1,932,277 | |
Annuity account balances | 10,941,661 | |
Other policyholders' funds | 1,388,083 | |
Other liabilities | 2,188,863 | |
Deferred income taxes | 1,535,556 | |
Non-recourse funding obligations | 621,798 | |
Repurchase program borrowings | 50,000 | |
Debt | 1,519,211 | |
Subordinated debt securities | 560,351 | |
Variable annuity | 12,970,587 | |
Variable universal life | 819,188 | |
Total liabilities | 65,405,599 | |
Net assets acquired | $ 5,554,059 |
DAI-ICHI MERGER (Details 3)
DAI-ICHI MERGER (Details 3) - Dai-ichi Life - Protective Life Corporation $ in Thousands | Feb. 01, 2015USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets subject to amortization | $ 651,000 |
Total intangible assets | 683,000 |
Distribution relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets subject to amortization | 405,000 |
Distribution relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets subject to amortization | 103,000 |
Technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets subject to amortization | 143,000 |
Insurance licenses | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets not subject to amortization | $ 32,000 |
Minimum | Distribution relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful life of intangible assets acquired | 14 years |
Minimum | Distribution relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful life of intangible assets acquired | 13 years |
Minimum | Technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful life of intangible assets acquired | 7 years |
Maximum | Distribution relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful life of intangible assets acquired | 22 years |
Maximum | Distribution relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful life of intangible assets acquired | 17 years |
Maximum | Technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted-average useful life of intangible assets acquired | 14 years |
DAI-ICHI MERGER (Details 4)
DAI-ICHI MERGER (Details 4) - Dai-ichi Life - Protective Life Corporation $ in Thousands | Feb. 01, 2015USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
2,016 | $ 41,313 |
2,017 | 41,313 |
2,018 | 41,313 |
2,019 | 41,313 |
2,020 | $ 41,313 |
DAI-ICHI MERGER (Details 5)
DAI-ICHI MERGER (Details 5) - Dai-ichi Life - Protective Life Corporation $ in Millions | Feb. 01, 2015USD ($) |
Transaction Fees | |
Business Acquisition [Line Items] | |
Liabilities for contingent costs | $ 28.8 |
Stock-Based Compensation Arrangements | |
Business Acquisition [Line Items] | |
Liabilities for contingent costs | 138.2 |
Stock-Based Compensation Arrangements, Accelerated Expense | |
Business Acquisition [Line Items] | |
Liabilities for contingent costs | $ 25.4 |
MONY CLOSED BLOCK OF BUSINESS82
MONY CLOSED BLOCK OF BUSINESS (Details) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |||
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Jan. 31, 2015 | Dec. 31, 2014 | |
Successor | ||||||
Closed block liabilities | ||||||
Future policy benefits, policyholders' account balances and other policyholder liabilities | $ 6,010,520 | |||||
Policyholder dividend obligation | $ 323,432 | $ 0 | 0 | $ 323,432 | ||
Other liabilities | 22,917 | |||||
Total closed block liabilities | 6,033,437 | |||||
Closed block assets | ||||||
Fixed maturities, available-for-sale, at fair value | 4,426,090 | |||||
Equity securities, available-for-sale, at fair value | 0 | |||||
Mortgage loans on real estate | 247,162 | |||||
Policy loans | 746,102 | |||||
Cash and other invested assets | 34,420 | |||||
Other assets | 166,445 | |||||
Total closed block assets | 5,620,219 | |||||
Excess of reported closed block liabilities over closed block assets | 413,218 | |||||
Portion of above representing accumulated other comprehensive income: | ||||||
Net unrealized investments gains (losses) net of policyholder dividend obligation of $(179,360) (Successor) and $106,886 (Predecessor) | (18,597) | |||||
Future earnings to be recognized from closed block assets and closed block liabilities | 394,621 | |||||
Policyholder dividend obligation | (179,360) | |||||
Reconciliation of the policyholder dividend obligation | ||||||
Policyholder dividend obligation, beginning balance | 323,432 | |||||
Applicable to net revenue (losses) | (47,493) | |||||
Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation; includes deferred tax benefits of $(96,579) (Successor); $47,277 (2015 - Predecessor); $58,571 (2014 - Predecessor) | (275,939) | |||||
Policyholder dividend obligation, ending balance | 323,432 | 0 | ||||
Deferred tax benefit | $ (96,579) | |||||
Revenues | ||||||
Premiums and other income | 185,562 | |||||
Net investment income | 193,203 | |||||
Net investment gains | 3,333 | |||||
Total revenues | 382,098 | |||||
Benefits and other deductions | ||||||
Benefits and settlement expenses | 336,629 | |||||
Other operating expenses | 1,001 | |||||
Total benefits and other deductions | 337,630 | |||||
Net revenues before income taxes | 44,468 | |||||
Income tax expense | 14,920 | |||||
Net revenues | 29,548 | |||||
Predecessor | ||||||
Closed block liabilities | ||||||
Future policy benefits, policyholders' account balances and other policyholder liabilities | $ 6,138,505 | |||||
Policyholder dividend obligation | 366,745 | 500,453 | $ 190,494 | 500,453 | 366,745 | |
Other liabilities | 53,838 | |||||
Total closed block liabilities | 6,559,088 | |||||
Closed block assets | ||||||
Fixed maturities, available-for-sale, at fair value | 4,524,037 | |||||
Equity securities, available-for-sale, at fair value | 5,387 | |||||
Mortgage loans on real estate | 448,855 | |||||
Policy loans | 771,120 | |||||
Cash and other invested assets | 30,984 | |||||
Other assets | 221,270 | |||||
Total closed block assets | 6,001,653 | |||||
Excess of reported closed block liabilities over closed block assets | 557,435 | |||||
Portion of above representing accumulated other comprehensive income: | ||||||
Net unrealized investments gains (losses) net of policyholder dividend obligation of $(179,360) (Successor) and $106,886 (Predecessor) | 0 | |||||
Future earnings to be recognized from closed block assets and closed block liabilities | 557,435 | |||||
Policyholder dividend obligation | 106,886 | |||||
Reconciliation of the policyholder dividend obligation | ||||||
Policyholder dividend obligation, beginning balance | 366,745 | $ 500,453 | 190,494 | |||
Applicable to net revenue (losses) | (1,369) | (910) | ||||
Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation; includes deferred tax benefits of $(96,579) (Successor); $47,277 (2015 - Predecessor); $58,571 (2014 - Predecessor) | 135,077 | 177,161 | ||||
Policyholder dividend obligation, ending balance | 500,453 | 366,745 | ||||
Deferred tax benefit | $ 47,277 | $ 58,571 | ||||
Revenues | ||||||
Premiums and other income | 15,065 | 212,765 | ||||
Net investment income | 19,107 | 239,028 | ||||
Net investment gains | 568 | 10,528 | ||||
Total revenues | 34,740 | 462,321 | ||||
Benefits and other deductions | ||||||
Benefits and settlement expenses | 31,152 | 417,667 | ||||
Other operating expenses | 0 | 674 | ||||
Total benefits and other deductions | 31,152 | 418,341 | ||||
Net revenues before income taxes | 3,588 | 43,980 | ||||
Income tax expense | 1,256 | 20,377 | ||||
Net revenues | $ 2,332 | $ 23,603 |
INVESTMENT OPERATIONS (Details)
INVESTMENT OPERATIONS (Details) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | |||||||
Jan. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Successor | ||||||||||||
Investment operations | ||||||||||||
Investment income before other investment expenses | $ 1,657,894 | |||||||||||
Other investment expenses | 24,946 | |||||||||||
Net investment income | $ 288,872 | $ 467,165 | $ 440,620 | $ 436,291 | 1,632,948 | |||||||
Net realized investment gains (losses) for all other investments | ||||||||||||
Fixed maturities | 1,282 | |||||||||||
Equity securities | (1,001) | |||||||||||
Impairments on fixed maturity securities | (26,993) | |||||||||||
Impairments on equity securities | 0 | |||||||||||
Modco trading portfolio | (167,359) | |||||||||||
Other investments | 192 | |||||||||||
Total realized gains (losses)—investments | (193,879) | |||||||||||
Gross realized gains on investments available-for-sale (fixed maturities, equity securities, and short-term investments) | 8,700 | |||||||||||
Gross realized losses | 35,500 | |||||||||||
Impairment losses on investments available-for-sale | 27,000 | |||||||||||
Fair value (proceeds) of securities in an unrealized gain position sold | 950,900 | |||||||||||
Gain realized on the sale of securities in an unrealized gain position | 8,700 | |||||||||||
Fair value (proceeds) of securities in an unrealized loss position sold | 178,400 | |||||||||||
Loss realized on the sale of securities in an unrealized loss position | 8,500 | |||||||||||
Successor | Fixed maturities | ||||||||||||
Investment operations | ||||||||||||
Investment income before other investment expenses | 1,267,900 | |||||||||||
Successor | Equity securities | ||||||||||||
Investment operations | ||||||||||||
Investment income before other investment expenses | 40,907 | |||||||||||
Successor | Mortgage loans | ||||||||||||
Investment operations | ||||||||||||
Investment income before other investment expenses | 252,577 | |||||||||||
Successor | Investment real estate | ||||||||||||
Investment operations | ||||||||||||
Investment income before other investment expenses | 2,528 | |||||||||||
Successor | Short-term investments | ||||||||||||
Investment operations | ||||||||||||
Investment income before other investment expenses | $ 93,982 | |||||||||||
Predecessor | ||||||||||||
Investment operations | ||||||||||||
Investment income before other investment expenses | $ 177,478 | $ 2,231,589 | $ 1,949,152 | |||||||||
Other investment expenses | 2,298 | 33,865 | 31,071 | |||||||||
Net investment income | 175,180 | $ 550,571 | $ 558,174 | $ 550,816 | $ 538,163 | 2,197,724 | 1,918,081 | |||||
Net realized investment gains (losses) for all other investments | ||||||||||||
Fixed maturities | 6,891 | 75,159 | 63,180 | |||||||||
Equity securities | 0 | 1,793 | 3,276 | |||||||||
Impairments on fixed maturity securities | (481) | (7,275) | (19,100) | |||||||||
Impairments on equity securities | 0 | 0 | (3,347) | |||||||||
Modco trading portfolio | 73,062 | 142,016 | (178,134) | |||||||||
Other investments | 1,200 | (13,566) | (11,859) | |||||||||
Total realized gains (losses)—investments | 80,672 | 198,127 | (145,984) | |||||||||
Gross realized gains on investments available-for-sale (fixed maturities, equity securities, and short-term investments) | 6,900 | 78,100 | 72,800 | |||||||||
Gross realized losses | 500 | 8,100 | 28,000 | |||||||||
Impairment losses on investments available-for-sale | 400 | 6,900 | 21,700 | |||||||||
Fair value (proceeds) of securities in an unrealized gain position sold | 172,600 | 1,700,000 | 2,300,000 | |||||||||
Gain realized on the sale of securities in an unrealized gain position | 6,900 | 78,100 | 72,800 | |||||||||
Fair value (proceeds) of securities in an unrealized loss position sold | 400 | 22,900 | 398,200 | |||||||||
Loss realized on the sale of securities in an unrealized loss position | 1,200 | 6,300 | ||||||||||
Predecessor | Fixed maturities | ||||||||||||
Investment operations | ||||||||||||
Investment income before other investment expenses | 140,104 | 1,712,297 | 1,509,544 | |||||||||
Predecessor | Equity securities | ||||||||||||
Investment operations | ||||||||||||
Investment income before other investment expenses | 2,572 | 41,740 | 26,923 | |||||||||
Predecessor | Mortgage loans | ||||||||||||
Investment operations | ||||||||||||
Investment income before other investment expenses | 24,977 | 360,778 | 333,145 | |||||||||
Predecessor | Investment real estate | ||||||||||||
Investment operations | ||||||||||||
Investment income before other investment expenses | 112 | 4,482 | 3,556 | |||||||||
Predecessor | Short-term investments | ||||||||||||
Investment operations | ||||||||||||
Investment income before other investment expenses | $ 9,713 | $ 112,292 | $ 75,984 |
INVESTMENT OPERATIONS (Details
INVESTMENT OPERATIONS (Details 2) - USD ($) | 11 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Dec. 31, 2014 | |
Successor | ||
Investments classified as available-for-sale | ||
Amortized Cost | $ 36,724,217,000 | |
Gross Unrealized Gains | 53,419,000 | |
Gross Unrealized Losses | (2,930,440,000) | |
Fair Value | 33,847,196,000 | |
Total OTTI Recognized in OCI | (605,000) | |
Investments classified as held-to-maturity | ||
Fair Value | 515,000,000 | |
Other-than-temporary impairments on held-to-maturity securities | 0 | |
Gross unrecognized holding losses | 78,300,000 | |
Fair Value | ||
Fair Value | 515,000,000 | |
Successor | Fixed maturities | ||
Investments classified as available-for-sale | ||
Amortized Cost | 35,793,000,000 | |
Gross Unrealized Gains | 40,164,000 | |
Gross Unrealized Losses | (2,923,963,000) | |
Fair Value | 32,909,201,000 | |
Total OTTI Recognized in OCI | (605,000) | |
Investments classified as held-to-maturity | ||
Amortized Cost | 593,314,000 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (78,314,000) | |
Fair Value | 515,000,000 | |
Trading securities | 2,700,000,000 | |
Amortized Cost | ||
Due in one year or less | 937,594,000 | |
Due after one year through five years | 5,868,351,000 | |
Due after five years through ten years | 7,840,167,000 | |
Due after ten years | 21,146,888,000 | |
Total | 35,793,000,000 | |
Fair Value | ||
Due in one year or less | 935,860,000 | |
Due after one year through five years | 5,732,803,000 | |
Due after five years through ten years | 7,542,055,000 | |
Due after ten years | 18,698,483,000 | |
Total | 32,909,201,000 | |
Amortized Cost | ||
Due after ten years | 593,314,000 | |
Amortized Cost | 593,314,000 | |
Fair Value | ||
Due after ten years | 515,000,000 | |
Fair Value | 515,000,000 | |
Successor | Residential mortgage-backed securities | ||
Investments classified as available-for-sale | ||
Amortized Cost | 1,773,099,000 | |
Gross Unrealized Gains | 9,286,000 | |
Gross Unrealized Losses | (17,112,000) | |
Fair Value | 1,765,273,000 | |
Total OTTI Recognized in OCI | 0 | |
Successor | Commercial mortgage-backed securities | ||
Investments classified as available-for-sale | ||
Amortized Cost | 1,328,317,000 | |
Gross Unrealized Gains | 428,000 | |
Gross Unrealized Losses | (41,858,000) | |
Fair Value | 1,286,887,000 | |
Successor | Other asset-backed securities | ||
Investments classified as available-for-sale | ||
Amortized Cost | 813,056,000 | |
Gross Unrealized Gains | 2,758,000 | |
Gross Unrealized Losses | (18,763,000) | |
Fair Value | 797,051,000 | |
Total OTTI Recognized in OCI | 0 | |
Successor | U.S. government-related securities | ||
Investments classified as available-for-sale | ||
Amortized Cost | 1,566,260,000 | |
Gross Unrealized Gains | 449,000 | |
Gross Unrealized Losses | (34,532,000) | |
Fair Value | 1,532,177,000 | |
Successor | Other government-related securities | ||
Investments classified as available-for-sale | ||
Amortized Cost | 18,483,000 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (743,000) | |
Fair Value | 17,740,000 | |
Successor | States, municipals, and political subdivisions | ||
Investments classified as available-for-sale | ||
Amortized Cost | 1,729,732,000 | |
Gross Unrealized Gains | 682,000 | |
Gross Unrealized Losses | (126,814,000) | |
Fair Value | 1,603,600,000 | |
Successor | Corporate securities | ||
Investments classified as available-for-sale | ||
Amortized Cost | 28,499,691,000 | |
Gross Unrealized Gains | 26,369,000 | |
Gross Unrealized Losses | (2,682,274,000) | |
Fair Value | 25,843,786,000 | |
Total OTTI Recognized in OCI | (605,000) | |
Successor | Preferred stock | ||
Investments classified as available-for-sale | ||
Amortized Cost | 64,362,000 | |
Gross Unrealized Gains | 192,000 | |
Gross Unrealized Losses | (1,867,000) | |
Fair Value | 62,687,000 | |
Successor | Other | ||
Investments classified as held-to-maturity | ||
Amortized Cost | 593,314,000 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (78,314,000) | |
Fair Value | 515,000,000 | |
Amortized Cost | ||
Amortized Cost | 593,314,000 | |
Fair Value | ||
Fair Value | 515,000,000 | |
Successor | Equity securities | ||
Investments classified as available-for-sale | ||
Amortized Cost | 724,226,000 | |
Gross Unrealized Gains | 13,255,000 | |
Gross Unrealized Losses | (6,477,000) | |
Fair Value | 731,004,000 | |
Investments classified as held-to-maturity | ||
Trading securities | 8,300,000 | |
Successor | Short-term investments | ||
Investments classified as available-for-sale | ||
Amortized Cost | 206,991,000 | |
Fair Value | 206,991,000 | |
Investments classified as held-to-maturity | ||
Trading securities | $ 61,700,000 | |
Predecessor | ||
Investments classified as available-for-sale | ||
Amortized Cost | $ 31,832,181,000 | |
Gross Unrealized Gains | 3,275,752,000 | |
Gross Unrealized Losses | (213,518,000) | |
Fair Value | 34,894,415,000 | |
Total OTTI Recognized in OCI | 6,309,000 | |
Investments classified as held-to-maturity | ||
Fair Value | 485,422,000 | |
Gross unrecognized holding losses | 0 | |
Fair Value | ||
Fair Value | 485,422,000 | |
Predecessor | Fixed maturities | ||
Investments classified as available-for-sale | ||
Amortized Cost | 30,919,422,000 | |
Gross Unrealized Gains | 3,237,083,000 | |
Gross Unrealized Losses | (199,336,000) | |
Fair Value | 33,957,169,000 | |
Total OTTI Recognized in OCI | 6,309,000 | |
Investments classified as held-to-maturity | ||
Amortized Cost | 435,000,000 | |
Gross Unrealized Gains | 50,422,000 | |
Gross Unrealized Losses | 0 | |
Fair Value | 485,422,000 | |
Trading securities | 2,800,000,000 | |
Amortized Cost | ||
Amortized Cost | 435,000,000 | |
Fair Value | ||
Fair Value | 485,422,000 | |
Predecessor | Residential mortgage-backed securities | ||
Investments classified as available-for-sale | ||
Amortized Cost | 1,374,206,000 | |
Gross Unrealized Gains | 56,330,000 | |
Gross Unrealized Losses | (12,278,000) | |
Fair Value | 1,418,258,000 | |
Total OTTI Recognized in OCI | 6,404,000 | |
Predecessor | Commercial mortgage-backed securities | ||
Investments classified as available-for-sale | ||
Amortized Cost | 1,119,979,000 | |
Gross Unrealized Gains | 59,637,000 | |
Gross Unrealized Losses | (2,364,000) | |
Fair Value | 1,177,252,000 | |
Predecessor | Other asset-backed securities | ||
Investments classified as available-for-sale | ||
Amortized Cost | 857,441,000 | |
Gross Unrealized Gains | 17,885,000 | |
Gross Unrealized Losses | (35,950,000) | |
Fair Value | 839,376,000 | |
Total OTTI Recognized in OCI | (95,000) | |
Predecessor | U.S. government-related securities | ||
Investments classified as available-for-sale | ||
Amortized Cost | 1,394,028,000 | |
Gross Unrealized Gains | 44,149,000 | |
Gross Unrealized Losses | (9,282,000) | |
Fair Value | 1,428,895,000 | |
Predecessor | Other government-related securities | ||
Investments classified as available-for-sale | ||
Amortized Cost | 16,939,000 | |
Gross Unrealized Gains | 3,233,000 | |
Gross Unrealized Losses | 0 | |
Fair Value | 20,172,000 | |
Predecessor | States, municipals, and political subdivisions | ||
Investments classified as available-for-sale | ||
Amortized Cost | 1,391,526,000 | |
Gross Unrealized Gains | 296,594,000 | |
Gross Unrealized Losses | (431,000) | |
Fair Value | 1,687,689,000 | |
Predecessor | Corporate securities | ||
Investments classified as available-for-sale | ||
Amortized Cost | 24,765,303,000 | |
Gross Unrealized Gains | 2,759,255,000 | |
Gross Unrealized Losses | (139,031,000) | |
Fair Value | 27,385,527,000 | |
Predecessor | Other | ||
Investments classified as held-to-maturity | ||
Amortized Cost | 435,000,000 | |
Gross Unrealized Gains | 50,422,000 | |
Gross Unrealized Losses | 0 | |
Fair Value | 485,422,000 | |
Amortized Cost | ||
Amortized Cost | 435,000,000 | |
Fair Value | ||
Fair Value | 485,422,000 | |
Predecessor | Equity securities | ||
Investments classified as available-for-sale | ||
Amortized Cost | 757,259,000 | |
Gross Unrealized Gains | 38,669,000 | |
Gross Unrealized Losses | (14,182,000) | |
Fair Value | 781,746,000 | |
Investments classified as held-to-maturity | ||
Trading securities | 21,500,000 | |
Predecessor | Short-term investments | ||
Investments classified as available-for-sale | ||
Amortized Cost | 155,500,000 | |
Fair Value | 155,500,000 | |
Investments classified as held-to-maturity | ||
Trading securities | $ 95,100,000 |
INVESTMENT OPERATIONS (Detail85
INVESTMENT OPERATIONS (Details 3) - USD ($) | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Successor | ||||
Investment operations | ||||
Other-than-temporary impairments of investments recorded | $ 28,659,000 | |||
Other-than-temporary impairments of investments recorded in earnings | 26,993,000 | |||
Portion recognized in other comprehensive income (before taxes) | 1,666,000 | |||
Successor | Fixed maturities | ||||
Investment operations | ||||
Other-than-temporary impairments of investments recorded | 28,700,000 | |||
Other-than-temporary impairments related to fixed maturities or equity securities that the Company intended to sell or expected to be required to sell | 0 | |||
Credit losses on fixed maturities | ||||
Beginning balance | 0 | |||
Additions for newly impaired securities | 22,761,000 | |||
Additions for previously impaired securities | 0 | |||
Reductions for previously impaired securities due to a change in expected cash flows | 0 | |||
Reductions for previously impaired securities that were sold in the current period | 0 | |||
Ending balance | $ 0 | 22,761,000 | ||
Successor | Equity securities | ||||
Investment operations | ||||
Other-than-temporary impairments related to fixed maturities or equity securities that the Company intended to sell or expected to be required to sell | 0 | |||
Predecessor | ||||
Investment operations | ||||
Other-than-temporary impairments of investments recorded | 636,000 | $ 2,589,000 | $ 10,941,000 | |
Other-than-temporary impairments of investments recorded in earnings | 481,000 | 7,275,000 | 22,447,000 | |
Portion recognized in other comprehensive income (before taxes) | 155,000 | (4,686,000) | (11,506,000) | |
Predecessor | Fixed maturities | ||||
Investment operations | ||||
Other-than-temporary impairments of investments recorded | 600,000 | 7,600,000 | ||
Other-than-temporary impairments related to fixed maturities or equity securities that the Company intended to sell or expected to be required to sell | 0 | 0 | 0 | |
Credit losses on fixed maturities | ||||
Beginning balance | 15,478,000 | $ 15,699,000 | 41,692,000 | 122,121,000 |
Additions for newly impaired securities | 0 | 3,516,000 | ||
Additions for previously impaired securities | 221,000 | 2,263,000 | 12,066,000 | |
Reductions for previously impaired securities due to a change in expected cash flows | 0 | (28,477,000) | (88,523,000) | |
Reductions for previously impaired securities that were sold in the current period | 0 | (7,488,000) | ||
Ending balance | 15,699,000 | 15,478,000 | 41,692,000 | |
Predecessor | Equity securities | ||||
Investment operations | ||||
Other-than-temporary impairments of investments recorded | 3,300,000 | |||
Other-than-temporary impairments related to fixed maturities or equity securities that the Company intended to sell or expected to be required to sell | $ 0 | $ 0 | $ 0 |
INVESTMENT OPERATIONS (Detail86
INVESTMENT OPERATIONS (Details 4) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2015USD ($) | Dec. 31, 2015USD ($)position | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Successor | ||||
Fair Value | ||||
Less Than 12 Months | $ 30,286,819 | |||
12 Months or More | 0 | |||
Total | 30,286,819 | |||
Unrealized Loss | ||||
Less Than 12 Months | (2,930,440) | |||
12 Months or More | 0 | |||
Total | $ (2,930,440) | |||
Number of positions in unrealized loss position | position | 2,548 | |||
Available-for-sale securities, fair value | $ 33,847,196 | |||
Available-for-sale securities, amortized cost | 36,724,217 | |||
Non-income producing securities | 27,100 | |||
Policy loans | $ 1,699,508 | |||
Interest rate on collateral loans on life insurance policies (as a percent) | 13.64% | |||
Successor | Minimum | ||||
Unrealized Loss | ||||
Interest rate on standard policy loans (as a percent) | 3.00% | |||
Successor | Maximum | ||||
Unrealized Loss | ||||
Interest rate on standard policy loans (as a percent) | 8.00% | |||
Successor | Below investment grade | ||||
Unrealized Loss | ||||
Available-for-sale securities, fair value | $ 1,500,000 | |||
Available-for-sale securities, amortized cost | 1,700,000 | |||
Securities in trading portfolio | 288,200 | |||
Securities Not publicly traded | 929,600 | |||
Successor | Fixed maturities | ||||
Unrealized Loss | ||||
Available-for-sale securities, fair value | 32,909,201 | |||
Available-for-sale securities, amortized cost | 35,793,000 | |||
Securities in trading portfolio | 2,700,000 | |||
Change in unrealized gains (losses), net of income tax | (1,874,469) | |||
Successor | Residential mortgage-backed securities | ||||
Fair Value | ||||
Less Than 12 Months | 977,433 | |||
12 Months or More | 0 | |||
Total | 977,433 | |||
Unrealized Loss | ||||
Less Than 12 Months | (17,112) | |||
12 Months or More | 0 | |||
Total | (17,112) | |||
Available-for-sale securities, fair value | 1,765,273 | |||
Available-for-sale securities, amortized cost | 1,773,099 | |||
Successor | Commercial mortgage-backed securities | ||||
Fair Value | ||||
Less Than 12 Months | 1,233,518 | |||
12 Months or More | 0 | |||
Total | 1,233,518 | |||
Unrealized Loss | ||||
Less Than 12 Months | (41,858) | |||
12 Months or More | 0 | |||
Total | (41,858) | |||
Available-for-sale securities, fair value | 1,286,887 | |||
Available-for-sale securities, amortized cost | 1,328,317 | |||
Successor | Other asset-backed securities | ||||
Fair Value | ||||
Less Than 12 Months | 633,274 | |||
12 Months or More | 0 | |||
Total | 633,274 | |||
Unrealized Loss | ||||
Less Than 12 Months | (18,763) | |||
12 Months or More | 0 | |||
Total | (18,763) | |||
Available-for-sale securities, fair value | 797,051 | |||
Available-for-sale securities, amortized cost | 813,056 | |||
Successor | U.S. government-related securities | ||||
Fair Value | ||||
Less Than 12 Months | 1,291,476 | |||
12 Months or More | 0 | |||
Total | 1,291,476 | |||
Unrealized Loss | ||||
Less Than 12 Months | (34,532) | |||
12 Months or More | 0 | |||
Total | (34,532) | |||
Available-for-sale securities, fair value | 1,532,177 | |||
Available-for-sale securities, amortized cost | 1,566,260 | |||
Successor | Other government-related securities | ||||
Fair Value | ||||
Less Than 12 Months | 17,740 | |||
Total | 17,740 | |||
Unrealized Loss | ||||
Less Than 12 Months | (743) | |||
Total | (743) | |||
Available-for-sale securities, fair value | 17,740 | |||
Available-for-sale securities, amortized cost | 18,483 | |||
Successor | States, municipals, and political subdivisions | ||||
Fair Value | ||||
Less Than 12 Months | 1,566,752 | |||
12 Months or More | 0 | |||
Total | 1,566,752 | |||
Unrealized Loss | ||||
Less Than 12 Months | (126,814) | |||
12 Months or More | 0 | |||
Total | (126,814) | |||
Available-for-sale securities, fair value | 1,603,600 | |||
Available-for-sale securities, amortized cost | 1,729,732 | |||
Successor | Corporate securities | ||||
Fair Value | ||||
Less Than 12 Months | 24,283,448 | |||
12 Months or More | 0 | |||
Total | 24,283,448 | |||
Unrealized Loss | ||||
Less Than 12 Months | (2,682,274) | |||
12 Months or More | 0 | |||
Total | (2,682,274) | |||
Available-for-sale securities, fair value | 25,843,786 | |||
Available-for-sale securities, amortized cost | 28,499,691 | |||
Successor | Preferred stock | ||||
Fair Value | ||||
Less Than 12 Months | 34,685 | |||
12 Months or More | 0 | |||
Total | 34,685 | |||
Unrealized Loss | ||||
Less Than 12 Months | (1,867) | |||
12 Months or More | 0 | |||
Total | (1,867) | |||
Available-for-sale securities, fair value | 62,687 | |||
Available-for-sale securities, amortized cost | 64,362 | |||
Successor | Equity securities | ||||
Fair Value | ||||
Less Than 12 Months | 248,493 | |||
12 Months or More | 0 | |||
Total | 248,493 | |||
Unrealized Loss | ||||
Less Than 12 Months | (6,477) | |||
12 Months or More | 0 | |||
Total | (6,477) | |||
Available-for-sale securities, fair value | 731,004 | |||
Available-for-sale securities, amortized cost | 724,226 | |||
Securities in trading portfolio | 8,300 | |||
Change in unrealized gains (losses), net of income tax | $ 4,406 | |||
Predecessor | ||||
Fair Value | ||||
Less Than 12 Months | $ 2,235,384 | |||
12 Months or More | 1,905,163 | |||
Total | 4,140,547 | |||
Unrealized Loss | ||||
Less Than 12 Months | (96,929) | |||
12 Months or More | (116,589) | |||
Total | (213,518) | |||
Available-for-sale securities, fair value | 34,894,415 | |||
Available-for-sale securities, amortized cost | 31,832,181 | |||
Policy loans | 1,758,237 | |||
Predecessor | Fixed maturities | ||||
Unrealized Loss | ||||
Available-for-sale securities, fair value | 33,957,169 | |||
Available-for-sale securities, amortized cost | 30,919,422 | |||
Securities in trading portfolio | 2,800,000 | |||
Change in unrealized gains (losses), net of income tax | $ 670,229 | 1,224,672 | $ (1,269,449) | |
Predecessor | Residential mortgage-backed securities | ||||
Fair Value | ||||
Less Than 12 Months | 166,271 | |||
12 Months or More | 67,280 | |||
Total | 233,551 | |||
Unrealized Loss | ||||
Less Than 12 Months | (9,562) | |||
12 Months or More | (2,716) | |||
Total | (12,278) | |||
Available-for-sale securities, fair value | 1,418,258 | |||
Available-for-sale securities, amortized cost | 1,374,206 | |||
Predecessor | Commercial mortgage-backed securities | ||||
Fair Value | ||||
Less Than 12 Months | 49,909 | |||
12 Months or More | 102,529 | |||
Total | 152,438 | |||
Unrealized Loss | ||||
Less Than 12 Months | (334) | |||
12 Months or More | (2,030) | |||
Total | (2,364) | |||
Available-for-sale securities, fair value | 1,177,252 | |||
Available-for-sale securities, amortized cost | 1,119,979 | |||
Predecessor | Other asset-backed securities | ||||
Fair Value | ||||
Less Than 12 Months | 108,666 | |||
12 Months or More | 537,486 | |||
Total | 646,152 | |||
Unrealized Loss | ||||
Less Than 12 Months | (6,473) | |||
12 Months or More | (29,477) | |||
Total | $ (35,950) | |||
Percentage of underlying collateral of student-loan backed auction rate securities guaranteed by the Federal Family Education Loan Program (at least) | 97.00% | |||
Available-for-sale securities, fair value | $ 839,376 | |||
Available-for-sale securities, amortized cost | 857,441 | |||
Predecessor | U.S. government-related securities | ||||
Fair Value | ||||
Less Than 12 Months | 231,917 | |||
12 Months or More | 280,803 | |||
Total | 512,720 | |||
Unrealized Loss | ||||
Less Than 12 Months | (3,868) | |||
12 Months or More | (5,414) | |||
Total | (9,282) | |||
Available-for-sale securities, fair value | 1,428,895 | |||
Available-for-sale securities, amortized cost | 1,394,028 | |||
Predecessor | Other government-related securities | ||||
Fair Value | ||||
Less Than 12 Months | 0 | |||
Total | 0 | |||
Unrealized Loss | ||||
Less Than 12 Months | 0 | |||
Total | 0 | |||
Available-for-sale securities, fair value | 20,172 | |||
Available-for-sale securities, amortized cost | 16,939 | |||
Predecessor | States, municipals, and political subdivisions | ||||
Fair Value | ||||
Less Than 12 Months | 1,904 | |||
12 Months or More | 10,482 | |||
Total | 12,386 | |||
Unrealized Loss | ||||
Less Than 12 Months | (134) | |||
12 Months or More | (297) | |||
Total | (431) | |||
Available-for-sale securities, fair value | 1,687,689 | |||
Available-for-sale securities, amortized cost | 1,391,526 | |||
Predecessor | Corporate securities | ||||
Fair Value | ||||
Less Than 12 Months | 1,659,287 | |||
12 Months or More | 776,864 | |||
Total | 2,436,151 | |||
Unrealized Loss | ||||
Less Than 12 Months | (76,341) | |||
12 Months or More | (62,690) | |||
Total | (139,031) | |||
Available-for-sale securities, fair value | 27,385,527 | |||
Available-for-sale securities, amortized cost | 24,765,303 | |||
Predecessor | Equity securities | ||||
Fair Value | ||||
Less Than 12 Months | 17,430 | |||
12 Months or More | 129,719 | |||
Total | 147,149 | |||
Unrealized Loss | ||||
Less Than 12 Months | (217) | |||
12 Months or More | (13,965) | |||
Total | (14,182) | |||
Available-for-sale securities, fair value | 781,746 | |||
Available-for-sale securities, amortized cost | 757,259 | |||
Securities in trading portfolio | 21,500 | |||
Change in unrealized gains (losses), net of income tax | $ 10,226 | $ 35,242 | $ (20,892) |
INVESTMENT OPERATIONS (Detail87
INVESTMENT OPERATIONS (Details 5) - Red Mountain | 12 Months Ended | |
Dec. 31, 2015USD ($)subsidiary | Dec. 31, 2014subsidiary | |
Variable Interest Entities | ||
Ownership through an affiliate (as a percent) | 100.00% | |
Risk of loss related to the VIE limited to the entity's investment | $ | $ 10,000 | |
Successor | ||
Variable Interest Entities | ||
Number of wholly owned subsidiaries that were determined to be VIEs | subsidiary | 1 | |
Payments made | $ | $ 0 | |
Predecessor | ||
Variable Interest Entities | ||
Number of wholly owned subsidiaries that were determined to be VIEs | subsidiary | 1 |
MORTGAGE LOANS (Details)
MORTGAGE LOANS (Details) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Mortgage loans | ||||
Amount that would become due in 2016, if loans are called at their next call dates | $ 143,500 | $ 143,500 | ||
Amount that would become due in 2017 through 2021, if loans are called at their next call dates | 854,500 | 854,500 | ||
Amount that would become due in 2022 through 2026, if loans are called at their next call dates | 242,500 | 242,500 | ||
Amount that would become due after 2026, if loans are called at their next call dates | $ 11,300 | $ 11,300 | ||
All identified states | ||||
Mortgage loans | ||||
Percentage of Mortgage Loans on Real Estate | 62.80% | 62.80% | ||
Minimum | ||||
Mortgage loans | ||||
Period for exercise of call options or interest rate reset options | 3 years | |||
Maximum | ||||
Mortgage loans | ||||
Single tenant's exposure as a percentage of mortgage loans (more than) | 2.00% | 2.00% | ||
Period for exercise of call options or interest rate reset options | 10 years | |||
Successor | ||||
Mortgage loans | ||||
Mortgage loans holdings | $ 5,662,812 | $ 5,662,812 | ||
Percentage of Mortgage Loans on Real Estate | 100.00% | 100.00% | ||
Amount of new loans funded | $ 1,400,000 | |||
Average loan size of new loans funded | 6,000 | |||
Average loan size of portfolio | $ 3,000 | $ 3,000 | ||
Weighted-average interest rate on mortgage loans (as a percent) | 5.30% | |||
Largest single mortgage loan | $ 48,300 | $ 48,300 | ||
Successor | Alabama | ||||
Mortgage loans | ||||
Percentage of Mortgage Loans on Real Estate | 10.60% | 10.60% | ||
Successor | Texas | ||||
Mortgage loans | ||||
Percentage of Mortgage Loans on Real Estate | 9.30% | 9.30% | ||
Successor | Georgia | ||||
Mortgage loans | ||||
Percentage of Mortgage Loans on Real Estate | 7.40% | 7.40% | ||
Successor | Florida | ||||
Mortgage loans | ||||
Percentage of Mortgage Loans on Real Estate | 6.50% | 6.50% | ||
Successor | Tennessee | ||||
Mortgage loans | ||||
Percentage of Mortgage Loans on Real Estate | 6.40% | 6.40% | ||
Successor | Utah | ||||
Mortgage loans | ||||
Percentage of Mortgage Loans on Real Estate | 5.30% | 5.30% | ||
Successor | North Carolina | ||||
Mortgage loans | ||||
Percentage of Mortgage Loans on Real Estate | 4.70% | 4.70% | ||
Successor | South Carolina | ||||
Mortgage loans | ||||
Percentage of Mortgage Loans on Real Estate | 4.50% | 4.50% | ||
Successor | Ohio | ||||
Mortgage loans | ||||
Percentage of Mortgage Loans on Real Estate | 4.20% | 4.20% | ||
Successor | California | ||||
Mortgage loans | ||||
Percentage of Mortgage Loans on Real Estate | 3.90% | 3.90% | ||
Successor | All identified states | ||||
Mortgage loans | ||||
Percentage of Mortgage Loans on Real Estate | 62.80% | 62.80% | ||
Successor | Retail | ||||
Mortgage loans | ||||
Percentage of Mortgage Loans on Real Estate | 60.90% | 60.90% | ||
Successor | Office Buildings | ||||
Mortgage loans | ||||
Percentage of Mortgage Loans on Real Estate | 13.00% | 13.00% | ||
Successor | Apartments | ||||
Mortgage loans | ||||
Percentage of Mortgage Loans on Real Estate | 7.40% | 7.40% | ||
Successor | Warehouses | ||||
Mortgage loans | ||||
Percentage of Mortgage Loans on Real Estate | 8.60% | 8.60% | ||
Successor | Senior housing | ||||
Mortgage loans | ||||
Percentage of Mortgage Loans on Real Estate | 6.40% | 6.40% | ||
Successor | Other | ||||
Mortgage loans | ||||
Percentage of Mortgage Loans on Real Estate | 3.70% | 3.70% | ||
Predecessor | ||||
Mortgage loans | ||||
Mortgage loans holdings | $ 5,133,780 | |||
Amount of new loans funded | $ 97,400 | |||
Average loan size of new loans funded | $ 7,500 |
MORTGAGE LOANS (Details 2)
MORTGAGE LOANS (Details 2) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |||||
Jan. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($)loan_category | Dec. 31, 2014USD ($)loan | Dec. 31, 2013USD ($) | Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Maximum | ||||||||
Mortgage loans | ||||||||
Loan-to-value ratio with participating interest (as a percent) (up to) | 85.00% | |||||||
Commercial mortgage loans | ||||||||
Mortgage loans | ||||||||
Number of loan categories | loan_category | 2 | |||||||
Successor | ||||||||
Mortgage loans | ||||||||
Nonperforming loans which have been foreclosed | $ 3,700 | |||||||
Successor | Commercial mortgage loans | ||||||||
Mortgage loans | ||||||||
Mortgage loans having participation feature | 449,200 | |||||||
Income recognized on participating mortgage loans | $ 29,800 | |||||||
Nonperforming mortgage loans, foreclosed properties and restructured loans pursuant to pooling and servicing agreements | 4,700 | |||||||
Assets accepted or agreed to be accepted on mortgage loans accounted for as troubled debt restructurings | 15,800 | |||||||
Principal amount of loans accounted for as troubled debt restructurings satisfied by acceptance of assets | 21,100 | |||||||
Assets accepted or agreed to be accepted on mortgage loans accounted for as troubled debt restructurings, amount related foreclosures | 3,700 | |||||||
Loans not subject to a pooling and servicing agreement which are either nonperforming or restructured | $ 4,700 | |||||||
Loans subject to a pooling and servicing agreement which are either nonperforming or restructured | loan | 0 | |||||||
Allowance for credit losses | $ 0 | 0 | $ 0 | $ 0 | ||||
Change in the allowance for credit losses | ||||||||
Beginning balance | 0 | |||||||
Charge offs | (2,561) | |||||||
Recoveries | (638) | |||||||
Provision | 3,199 | |||||||
Ending balance | 0 | 0 | 0 | |||||
Predecessor | ||||||||
Mortgage loans | ||||||||
Reduction in investment in mortgage loans | $ 500 | |||||||
Predecessor | Commercial mortgage loans | ||||||||
Mortgage loans | ||||||||
Mortgage loans having participation feature | $ 553,600 | |||||||
Income recognized on participating mortgage loans | 100 | $ 16,700 | ||||||
Nonperforming mortgage loans, foreclosed properties and restructured loans pursuant to pooling and servicing agreements | $ 24,500 | $ 15,900 | ||||||
Nonperforming mortgage loans, foreclosed properties and restructured loans to invested assets (as a percent) | 0.05% | 0.03% | ||||||
Loan restructuring or modifications | $ 3,200 | |||||||
Assets accepted or agreed to be accepted on mortgage loans accounted for as troubled debt restructurings | 11,300 | 33,000 | ||||||
Principal amount of loans accounted for as troubled debt restructurings satisfied by acceptance of assets | 13,800 | $ 41,700 | ||||||
Number of mortgage loans permanently impaired | loan | 1 | |||||||
Principal amount of impaired loans accounted for as troubled debt restructurings | $ 12,600 | |||||||
Impaired mortgage loans accounted for as troubled debt restructurings | $ 7,300 | |||||||
Reduction in the entity's investment in mortgage loans, net of existing allowances for mortgage loan losses | 10,300 | |||||||
Remaining mortgage loan transactions accounted for as troubled debt restructurings | 28,648 | |||||||
Allowance for credit losses | 5,720 | 2,500 | 5,720 | 3,130 | 3,130 | $ 5,720 | $ 3,130 | |
Change in the allowance for credit losses | ||||||||
Beginning balance | 5,720 | $ 2,500 | $ 5,720 | 3,130 | ||||
Charge offs | (861) | (675) | ||||||
Recoveries | (2,359) | (2,600) | ||||||
Provision | 0 | 5,865 | ||||||
Ending balance | $ 2,500 | $ 5,720 | $ 3,130 |
MORTGAGE LOANS (Details 3)
MORTGAGE LOANS (Details 3) - Commercial mortgage loans $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($)loan | |
Delinquent loans | ||
Past due period at which to cease carrying accrued interest on delinquent loans | 90 days | |
Number of days accrued interest on impaired loans (less than) | 90 days | |
Past due period at which to initiate foreclosure proceedings (more than) | 90 days | |
Successor | ||
Delinquent loans | ||
Delinquent | $ | $ 7,035 | |
Number of loans, total delinquent | loan | 7 | |
Successor | 30 - 59 Days Delinquent | ||
Delinquent loans | ||
Delinquent | $ | $ 6,002 | |
Number of loans, 30 to 59 days delinquent | loan | 6 | |
Successor | 60 - 89 Days Delinquent | ||
Delinquent loans | ||
Delinquent | $ | $ 1,033 | |
Number of loans, 60 to 89 days delinquent | loan | 1 | |
Successor | Greater than 90 Days Delinquent | ||
Delinquent loans | ||
Delinquent | $ | $ 0 | |
Number of loans, greater than 90 days delinquent | loan | 0 | |
Predecessor | ||
Delinquent loans | ||
Delinquent | $ | $ 10,456 | |
Number of loans, total delinquent | loan | 5 | |
Predecessor | 30 - 59 Days Delinquent | ||
Delinquent loans | ||
Delinquent | $ | $ 8,972 | |
Number of loans, 30 to 59 days delinquent | loan | 4 | |
Predecessor | 60 - 89 Days Delinquent | ||
Delinquent loans | ||
Delinquent | $ | $ 0 | |
Number of loans, 60 to 89 days delinquent | loan | 0 | |
Predecessor | Greater than 90 Days Delinquent | ||
Delinquent loans | ||
Delinquent | $ | $ 1,484 | |
Number of loans, greater than 90 days delinquent | loan | 1 |
MORTGAGE LOANS (Details 4)
MORTGAGE LOANS (Details 4) - Commercial mortgage loans - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Successor | ||
Recorded Investment | ||
With no related allowance recorded, recorded investment | $ 1,694 | |
With an allowance recorded, recorded investment | 0 | |
Unpaid Principal Balance | ||
With no related allowance recorded, unpaid principal balance | 1,728 | |
With an allowance recorded, unpaid principal balance | 0 | |
Related Allowance | ||
With an allowance recorded, related allowance | 0 | |
Average Recorded Investment | ||
With no related allowance recorded, average recorded investment | 847 | |
With an allowance recorded, average recorded investment | 0 | |
Interest Income Recognized | ||
With no related allowance recorded, interest income recognized | 104 | |
With an allowance recorded, interest income recognized | 0 | |
Cash Basis Interest Income | ||
With no related allowance recorded, cash basis interest income | 117 | |
With an allowance recorded, cash basis interest income | $ 0 | |
Predecessor | ||
Recorded Investment | ||
With no related allowance recorded, recorded investment | $ 0 | |
With an allowance recorded, recorded investment | 19,632 | |
Unpaid Principal Balance | ||
With no related allowance recorded, unpaid principal balance | 0 | |
With an allowance recorded, unpaid principal balance | 20,603 | |
Related Allowance | ||
With an allowance recorded, related allowance | 5,720 | |
Average Recorded Investment | ||
With no related allowance recorded, average recorded investment | 0 | |
With an allowance recorded, average recorded investment | 3,272 | |
Interest Income Recognized | ||
With no related allowance recorded, interest income recognized | 0 | |
With an allowance recorded, interest income recognized | 1,224 | |
Cash Basis Interest Income | ||
With no related allowance recorded, cash basis interest income | 0 | |
With an allowance recorded, cash basis interest income | $ 1,280 |
MORTGAGE LOANS (Details 5)
MORTGAGE LOANS (Details 5) - Commercial mortgage loans - Predecessor $ in Thousands | 12 Months Ended |
Dec. 31, 2014USD ($)loan | |
Troubled debt restructuring: | |
Number of Contracts | loan | 6 |
Pre-Modification Outstanding Recorded Investment | $ 28,648 |
Post-Modification Outstanding Recorded Investment | $ 19,593 |
DEFERRED POLICY ACQUISITION C93
DEFERRED POLICY ACQUISITION COSTS AND VALUE OF BUSINESS ACQUIRED (Details) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Successor | ||||
Balances and changes in DAC | ||||
Balance, beginning of period | $ 0 | |||
Capitalization of commissions, sales, and issue expenses | 302,839 | |||
Amortization | (24,187) | |||
Change in unrealized investment gains and losses | 9,959 | |||
Balance, end of period | $ 0 | 288,611 | $ 288,611 | |
Balances and changes in VOBA | ||||
Balance, beginning of period | 1,276,886 | |||
Amortization | (69,869) | |||
Change in unrealized gains and losses | 69,226 | |||
Other | (6,046) | |||
Balance, end of period | 1,276,886 | 1,270,197 | 1,270,197 | |
Expected amortization of VOBA for the next five years | ||||
2,016 | 131,599 | |||
2,017 | 122,011 | |||
2,018 | 112,230 | |||
2,019 | 96,878 | |||
2,020 | 80,542 | |||
Predecessor | ||||
Balances and changes in DAC | ||||
Balance, beginning of period | 2,647,980 | 2,574,780 | 2,647,980 | $ 2,721,687 |
Capitalization of commissions, sales, and issue expenses | 22,513 | 288,592 | ||
Amortization | 1,117 | (195,605) | ||
Change in unrealized investment gains and losses | (96,830) | (166,694) | ||
Balance, end of period | 2,574,780 | 2,647,980 | ||
Balances and changes in VOBA | ||||
Balance, beginning of period | 646,590 | $ 561,983 | $ 646,590 | 848,528 |
Amortization | (5,189) | (61,704) | ||
Change in unrealized gains and losses | (79,418) | (140,234) | ||
Other | 0 | 0 | ||
Balance, end of period | $ 561,983 | $ 646,590 |
GOODWILL (Details)
GOODWILL (Details) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 01, 2015 | |
Changes in the carrying amount of goodwill | ||||
Balance at the end of the period | $ 732,400 | |||
Decrease in goodwill | 3,300 | |||
Goodwill | 732,400 | $ 735,700 | ||
Predecessor | ||||
Changes in the carrying amount of goodwill | ||||
Balance at the beginning of the period | $ 102,365 | $ 105,463 | ||
Tax benefit of excess tax goodwill | (3,098) | |||
Balance at the end of the period | 102,365 | |||
Decrease in goodwill | 300 | |||
Goodwill | 102,365 | 105,463 | ||
Successor | ||||
Changes in the carrying amount of goodwill | ||||
Balance at the end of the period | 732,443 | |||
Goodwill | 732,443 | $ 735,700 | ||
Life Marketing | Predecessor | ||||
Changes in the carrying amount of goodwill | ||||
Balance at the beginning of the period | 10,192 | 10,192 | ||
Tax benefit of excess tax goodwill | 0 | |||
Balance at the end of the period | 10,192 | |||
Goodwill | 10,192 | 10,192 | ||
Life Marketing | Successor | ||||
Changes in the carrying amount of goodwill | ||||
Decrease in goodwill | $ (3,300) | |||
Acquisitions | Predecessor | ||||
Changes in the carrying amount of goodwill | ||||
Balance at the beginning of the period | 29,419 | 32,517 | ||
Tax benefit of excess tax goodwill | (3,098) | |||
Balance at the end of the period | 29,419 | |||
Goodwill | 29,419 | 32,517 | ||
Asset Protection | Predecessor | ||||
Changes in the carrying amount of goodwill | ||||
Balance at the beginning of the period | 62,671 | 62,671 | ||
Tax benefit of excess tax goodwill | 0 | |||
Balance at the end of the period | 62,671 | |||
Goodwill | 62,671 | 62,671 | ||
Corporate and Other | Predecessor | ||||
Changes in the carrying amount of goodwill | ||||
Balance at the beginning of the period | 83 | 83 | ||
Tax benefit of excess tax goodwill | 0 | |||
Balance at the end of the period | 83 | |||
Goodwill | $ 83 | $ 83 |
CERTAIN NONTRADITIONAL LONG-D95
CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS (Details) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||||
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | |
Annuity account | CALIC | |||||||
CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS | |||||||
Average attained age of contract holders | 66 years | ||||||
Percentage of variable annuity business reinsured | 100.00% | ||||||
Annuity account | Acquisitions | CALIC | |||||||
CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS | |||||||
Guaranteed amount payable | $ 12,800 | ||||||
Guaranteed minimum death benefits (GMDB) | Annuity account | |||||||
CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS | |||||||
Interest rate at which last anniversary date account value is compounded (as a percent) | 5.00% | ||||||
Mean investment performance (as a percent) | 5.87% | ||||||
Average discount rate (as a percent) | 6.00% | ||||||
Guaranteed minimum death benefits (GMDB) | Annuity account | Minimum | |||||||
CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS | |||||||
Lapse rate (as a percent) | 2.20% | ||||||
Guaranteed minimum death benefits (GMDB) | Annuity account | Maximum | |||||||
CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS | |||||||
Lapse rate (as a percent) | 33.00% | ||||||
Successor | |||||||
CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS | |||||||
Separate account balances | $ 12,829,188 | ||||||
Successor | Guaranteed minimum death benefits (GMDB) | Annuity account | |||||||
CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS | |||||||
Separate account balances | 12,200,000 | ||||||
Guaranteed amount payable | 283,500 | ||||||
Guaranteed amount payable with GMDB reserve | $ 29,010 | $ 36,427 | $ 36,427 | 36,427 | |||
Average attained age of contract holders | 69 years | ||||||
Activity relating to GMDB reserves (excluding those 100% reinsured under the Modco agreement) | |||||||
Balance at the beginning of the period | 29,010 | ||||||
Incurred guarantee benefits | 10,175 | ||||||
Less: Paid guarantee benefits | 2,758 | ||||||
Balance at the end of the period | 29,010 | 36,427 | $ 36,427 | ||||
Successor | Guaranteed minimum death benefits (GMDB) | Annuity account | Annuities | |||||||
CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS | |||||||
Guaranteed amount payable | 266,900 | ||||||
Guaranteed amount payable with GMDB reserve | 33,100 | 33,100 | 33,100 | ||||
Activity relating to GMDB reserves (excluding those 100% reinsured under the Modco agreement) | |||||||
Balance at the end of the period | 33,100 | 33,100 | |||||
Successor | Guaranteed minimum death benefits (GMDB) | Annuity account | Acquisitions | |||||||
CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS | |||||||
Guaranteed amount payable | 16,600 | ||||||
Guaranteed amount payable with GMDB reserve | 300 | 300 | 300 | ||||
Activity relating to GMDB reserves (excluding those 100% reinsured under the Modco agreement) | |||||||
Balance at the end of the period | 300 | 300 | |||||
Successor | Guaranteed minimum withdrawal benefits (GMWB) | |||||||
CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS | |||||||
Separate account balances | $ 9,300,000 | ||||||
Predecessor | |||||||
CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS | |||||||
Separate account balances | $ 13,157,429 | ||||||
Predecessor | Guaranteed minimum death benefits (GMDB) | Annuity account | |||||||
CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS | |||||||
Guaranteed amount payable with GMDB reserve | 26,251 | 28,875 | 26,251 | $ 16,284 | $ 19,606 | $ 26,251 | |
Activity relating to GMDB reserves (excluding those 100% reinsured under the Modco agreement) | |||||||
Balance at the beginning of the period | 26,251 | $ 28,875 | $ 26,251 | 16,284 | 19,606 | ||
Incurred guarantee benefits | 3,073 | 12,091 | (260) | ||||
Less: Paid guarantee benefits | 449 | 2,124 | 3,062 | ||||
Balance at the end of the period | $ 28,875 | $ 26,251 | $ 16,284 |
CERTAIN NONTRADITIONAL LONG-D96
CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS (Details 2) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Successor | ||||
Activity in the Company's deferred sales inducement asset | ||||
Deferred asset, beginning of period | $ 0 | |||
Amounts deferred | 14,557 | |||
Amortization | (2,801) | |||
Deferred asset, end of period | $ 0 | 11,756 | ||
Successor | Annuity account | ||||
Certain Nontraditional Long-duration Contracts | ||||
Account balances of variable annuities with guarantees invested in variable annuity separate accounts | 12,660,894 | |||
Successor | Equity mutual funds | Annuity account | ||||
Certain Nontraditional Long-duration Contracts | ||||
Account balances of variable annuities with guarantees invested in variable annuity separate accounts | 5,476,366 | |||
Successor | Fixed income mutual funds | Annuity account | ||||
Certain Nontraditional Long-duration Contracts | ||||
Account balances of variable annuities with guarantees invested in variable annuity separate accounts | 7,184,528 | |||
Predecessor | ||||
Activity in the Company's deferred sales inducement asset | ||||
Deferred asset, beginning of period | 155,150 | $ 154,093 | $ 146,651 | $ 143,949 |
Amounts deferred | 82 | 18,302 | 15,274 | |
Amortization | (1,139) | (9,803) | (12,572) | |
Deferred asset, end of period | $ 154,093 | 155,150 | $ 146,651 | |
Predecessor | Annuity account | ||||
Certain Nontraditional Long-duration Contracts | ||||
Account balances of variable annuities with guarantees invested in variable annuity separate accounts | 12,971,792 | |||
Predecessor | Equity mutual funds | Annuity account | ||||
Certain Nontraditional Long-duration Contracts | ||||
Account balances of variable annuities with guarantees invested in variable annuity separate accounts | 7,834,480 | |||
Predecessor | Fixed income mutual funds | Annuity account | ||||
Certain Nontraditional Long-duration Contracts | ||||
Account balances of variable annuities with guarantees invested in variable annuity separate accounts | $ 5,137,312 |
REINSURANCE (Details)
REINSURANCE (Details) | 12 Months Ended | ||
Dec. 31, 2015insurer | Dec. 31, 2008USD ($) | Dec. 31, 2005USD ($) | |
Single insured life | |||
REINSURANCE | |||
Amount of insurance retained before revision - certain newly issued traditional life products | $ 500,000 | ||
Amount of insurance retained - certain newly issued traditional life products | $ 1,000,000 | ||
Amount of insurance retained - certain traditional and universal life products | $ 2,000,000 | ||
Successor | |||
REINSURANCE | |||
Percentage of the face value of life insurance in-force reinsured | 48.00% | ||
Successor | Reinsurer Concentration Risk | |||
REINSURANCE | |||
Percentage of the face value of life insurance in-force reinsured | 20.00% | ||
Life insurance in-force reinsured, concentrated number of reinsurers | insurer | 3 |
REINSURANCE (Details 2)
REINSURANCE (Details 2) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Successor | ||||
Life insurance in-force | ||||
Direct life insurance in-force | $ 727,705,256 | |||
Amounts assumed from other companies | 39,546,742 | |||
Amounts ceded to other companies | (368,142,294) | |||
Net life insurance in-force | $ 399,109,704 | |||
Percentage of amount assumed to net | 9.90% | |||
Effect of reinsurance on premiums written and earned | ||||
Gross Amount | $ 2,674,614 | |||
Ceded to Other Companies | (1,154,978) | |||
Assumed from Other Companies | 333,436 | |||
Net Amount | 1,853,072 | |||
Reinsurance receivables | 5,500,000 | |||
Ceded benefits which are recoverable from reinsurers | 77,900 | |||
Receivables related to insurance assumed | 64,900 | |||
Successor | Life insurance | ||||
Effect of reinsurance on premiums written and earned | ||||
Gross Amount | 2,360,643 | |||
Ceded to Other Companies | (983,143) | |||
Assumed from Other Companies | 308,280 | |||
Net Amount | $ 1,685,780 | |||
Percentage of Amount Assumed to Net | 18.30% | |||
Annuity policy fees | $ 152,800 | |||
Successor | Accident/health insurance | ||||
Effect of reinsurance on premiums written and earned | ||||
Gross Amount | 70,243 | |||
Ceded to Other Companies | (36,871) | |||
Assumed from Other Companies | 18,252 | |||
Net Amount | $ 51,624 | |||
Percentage of Amount Assumed to Net | 35.40% | |||
Successor | Property and liability insurance | ||||
Effect of reinsurance on premiums written and earned | ||||
Gross Amount | $ 243,728 | |||
Ceded to Other Companies | (134,964) | |||
Assumed from Other Companies | 6,904 | |||
Net Amount | $ 115,668 | |||
Percentage of Amount Assumed to Net | 6.00% | |||
Predecessor | ||||
Life insurance in-force | ||||
Direct life insurance in-force | $ 721,036,332 | $ 726,697,151 | ||
Amounts assumed from other companies | 43,237,358 | 46,752,176 | ||
Amounts ceded to other companies | (388,890,060) | (416,809,287) | ||
Net life insurance in-force | $ 375,383,630 | $ 356,640,040 | ||
Percentage of amount assumed to net | 11.50% | 13.10% | ||
Effect of reinsurance on premiums written and earned | ||||
Gross Amount | $ 230,790 | $ 2,918,355 | $ 2,642,462 | |
Ceded to Other Companies | (89,956) | (1,373,597) | (1,377,195) | |
Assumed from Other Companies | 31,076 | 379,413 | 339,189 | |
Net Amount | 171,910 | 1,924,171 | 1,604,456 | |
Reinsurance receivables | 6,100,000 | |||
Ceded benefits which are recoverable from reinsurers | 120,500 | |||
Receivables related to insurance assumed | 65,800 | |||
Predecessor | Life insurance | ||||
Effect of reinsurance on premiums written and earned | ||||
Gross Amount | 204,185 | 2,603,956 | 2,371,872 | |
Ceded to Other Companies | (74,539) | (1,205,528) | (1,247,657) | |
Assumed from Other Companies | 28,601 | 349,934 | 306,920 | |
Net Amount | $ 158,247 | $ 1,748,362 | $ 1,431,135 | |
Percentage of Amount Assumed to Net | 18.10% | 20.00% | 21.50% | |
Annuity policy fees | $ 13,900 | $ 167,100 | $ 140,700 | |
Predecessor | Accident/health insurance | ||||
Effect of reinsurance on premiums written and earned | ||||
Gross Amount | 6,846 | 81,037 | 45,263 | |
Ceded to Other Companies | (4,621) | (42,741) | (20,011) | |
Assumed from Other Companies | 1,809 | 20,804 | 24,291 | |
Net Amount | $ 4,034 | $ 59,100 | $ 49,543 | |
Percentage of Amount Assumed to Net | 44.80% | 35.20% | 49.00% | |
Predecessor | Property and liability insurance | ||||
Effect of reinsurance on premiums written and earned | ||||
Gross Amount | $ 19,759 | $ 233,362 | $ 225,327 | |
Ceded to Other Companies | (10,796) | (125,328) | (109,527) | |
Assumed from Other Companies | 666 | 8,675 | 7,978 | |
Net Amount | $ 9,629 | $ 116,709 | $ 123,778 | |
Percentage of Amount Assumed to Net | 6.90% | 7.40% | 6.50% |
REINSURANCE (Details 3)
REINSURANCE (Details 3) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Successor | ||
Reinsurance | ||
Reinsurance Recoverables | $ 5,536,751 | |
Successor | Reinsurer Concentration Risk | Security Life of Denver Insurance Company | A | ||
Reinsurance | ||
Reinsurance Recoverables | 800,600 | |
Successor | Reinsurer Concentration Risk | Swiss Re Life & Health America, Inc. | A plus | ||
Reinsurance | ||
Reinsurance Recoverables | 719,200 | |
Successor | Reinsurer Concentration Risk | Lincoln National Life Insurance Co. | A plus | ||
Reinsurance | ||
Reinsurance Recoverables | 546,000 | |
Successor | Reinsurer Concentration Risk | Transamerica Life Insurance Co. | A plus | ||
Reinsurance | ||
Reinsurance Recoverables | 396,600 | |
Successor | Reinsurer Concentration Risk | RGA Reinsurance Company | A plus | ||
Reinsurance | ||
Reinsurance Recoverables | 303,500 | |
Successor | Reinsurer Concentration Risk | SCOR Global Life USA Reinsurance Company | A | ||
Reinsurance | ||
Reinsurance Recoverables | 320,400 | |
Successor | Reinsurer Concentration Risk | American United Life Insurance Company | A plus | ||
Reinsurance | ||
Reinsurance Recoverables | 314,200 | |
Successor | Reinsurer Concentration Risk | Scottish Re (U.S.) Inc. | ||
Reinsurance | ||
Reinsurance Recoverables | 268,600 | |
Successor | Reinsurer Concentration Risk | Centre Reinsurance (Bermuda) Ltd | ||
Reinsurance | ||
Reinsurance Recoverables | 247,600 | |
Successor | Reinsurer Concentration Risk | Employers Reassurance Corporation | A- | ||
Reinsurance | ||
Reinsurance Recoverables | $ 224,400 | |
Predecessor | ||
Reinsurance | ||
Reinsurance Recoverables | $ 6,106,113 | |
Predecessor | Reinsurer Concentration Risk | Security Life of Denver Insurance Company | A | ||
Reinsurance | ||
Reinsurance Recoverables | 842,100 | |
Predecessor | Reinsurer Concentration Risk | Swiss Re Life & Health America, Inc. | A plus | ||
Reinsurance | ||
Reinsurance Recoverables | 820,900 | |
Predecessor | Reinsurer Concentration Risk | Lincoln National Life Insurance Co. | A plus | ||
Reinsurance | ||
Reinsurance Recoverables | 556,300 | |
Predecessor | Reinsurer Concentration Risk | Transamerica Life Insurance Co. | A plus | ||
Reinsurance | ||
Reinsurance Recoverables | 497,700 | |
Predecessor | Reinsurer Concentration Risk | RGA Reinsurance Company | A plus | ||
Reinsurance | ||
Reinsurance Recoverables | 412,400 | |
Predecessor | Reinsurer Concentration Risk | SCOR Global Life USA Reinsurance Company | A | ||
Reinsurance | ||
Reinsurance Recoverables | 411,800 | |
Predecessor | Reinsurer Concentration Risk | American United Life Insurance Company | A plus | ||
Reinsurance | ||
Reinsurance Recoverables | 336,100 | |
Predecessor | Reinsurer Concentration Risk | Scottish Re (U.S.) Inc. | ||
Reinsurance | ||
Reinsurance Recoverables | 298,000 | |
Predecessor | Reinsurer Concentration Risk | Centre Reinsurance (Bermuda) Ltd | ||
Reinsurance | ||
Reinsurance Recoverables | 260,900 | |
Predecessor | Reinsurer Concentration Risk | Employers Reassurance Corporation | A- | ||
Reinsurance | ||
Reinsurance Recoverables | $ 254,300 |
DEBT AND OTHER OBLIGATIONS (Det
DEBT AND OTHER OBLIGATIONS (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | Oct. 09, 2009 | Dec. 31, 2007 |
6.40% Senior Notes (2007), due 2018 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 6.40% | ||||
7.375% Senior Notes (2009), due 2019 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 7.375% | ||||
8.45% Senior Notes (2009), due 2039 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 8.45% | ||||
Total debt | $ 300,000,000 | ||||
6.25% Subordinated Debentures (2012) due 2042, callable 2017 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 6.25% | ||||
6.00% Subordinated Debentures (2012) due 2042, callable 2017 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 6.00% | ||||
Successor | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 1,588,806,000 | ||||
Total subordinated debt securities | $ 448,763,000 | ||||
Successor | 6.40% Senior Notes (2007), due 2018 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 6.40% | ||||
Total debt | $ 162,671,000 | ||||
Successor | 7.375% Senior Notes (2009), due 2019 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 7.375% | ||||
Total debt | $ 473,127,000 | ||||
Successor | 8.45% Senior Notes (2009), due 2039 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 8.45% | ||||
Total debt | $ 468,008,000 | ||||
Successor | 6.125% Subordinated Debentures (2004), due 2034, callable 2009 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 6.125% | ||||
Total subordinated debt securities | $ 0 | ||||
Successor | 6.25% Subordinated Debentures (2012) due 2042, callable 2017 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 6.25% | ||||
Total subordinated debt securities | $ 295,833,000 | ||||
Successor | 6.00% Subordinated Debentures (2012) due 2042, callable 2017 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 6.00% | ||||
Total subordinated debt securities | $ 152,930,000 | ||||
Successor | Revolving Line Of Credit | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 485,000,000 | ||||
Predecessor | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 8.00% | ||||
Total debt | $ 1,300,000,000 | ||||
Total subordinated debt securities | $ 540,593,000 | ||||
Predecessor | 6.40% Senior Notes (2007), due 2018 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 6.40% | 6.40% | |||
Total debt | $ 150,000,000 | ||||
Predecessor | 7.375% Senior Notes (2009), due 2019 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 7.375% | 7.375% | |||
Total debt | $ 400,000,000 | ||||
Predecessor | 8.45% Senior Notes (2009), due 2039 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 8.45% | 8.45% | |||
Total debt | $ 300,000,000 | ||||
Predecessor | 6.125% Subordinated Debentures (2004), due 2034, callable 2009 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 6.125% | 6.125% | |||
Total subordinated debt securities | $ 103,093,000 | ||||
Predecessor | 6.25% Subordinated Debentures (2012) due 2042, callable 2017 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 6.25% | 6.25% | |||
Total subordinated debt securities | $ 287,500,000 | ||||
Predecessor | 6.00% Subordinated Debentures (2012) due 2042, callable 2017 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 6.00% | 6.00% | |||
Total subordinated debt securities | $ 150,000,000 | ||||
Predecessor | Revolving Line Of Credit | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 450,000,000 |
DEBT AND OTHER OBLIGATIONS (101
DEBT AND OTHER OBLIGATIONS (Details 2) - USD ($) | Feb. 03, 2015 | Feb. 02, 2015 | Feb. 01, 2015 | Dec. 31, 2007 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | Oct. 09, 2009 |
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Debt maturities due in 2018 | $ 162,700,000 | $ 162,700,000 | |||||||
Debt maturities due in 2019 | 473,100,000 | 473,100,000 | |||||||
Debt maturities due thereafter | $ 468,000,000 | $ 468,000,000 | |||||||
Base of floating rate interest rate payments | LIBOR | ||||||||
Golden Gate | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Aggregate principal amount of debt repurchased by Golden Gate from third parties | $ 800,000,000 | ||||||||
Predecessor | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Stated interest rate (as a percent) | 8.00% | 8.00% | |||||||
Total debt | $ 1,300,000,000 | ||||||||
Successor | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Total debt | $ 1,588,806,000 | $ 1,588,806,000 | |||||||
Revolving Line Of Credit | Predecessor | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Total debt | 450,000,000 | ||||||||
Revolving Line Of Credit | Successor | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Total debt | 485,000,000 | 485,000,000 | |||||||
Senior notes | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Amount of debt issued | $ 700,000,000 | ||||||||
Repayment of debt | 150,000,000 | ||||||||
Senior notes | Predecessor | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Repayment of debt | $ 150,000,000 | ||||||||
Senior notes | Successor | Golden Gate | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Outstanding amount of debt | $ 700,000,000 | $ 700,000,000 | |||||||
6.40% Senior Notes (2007), due 2018 | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Stated interest rate (as a percent) | 6.40% | ||||||||
Amount of debt issued | $ 150,000,000 | ||||||||
Net proceeds from issuance of debt | $ 148,700,000 | ||||||||
6.40% Senior Notes (2007), due 2018 | Predecessor | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Stated interest rate (as a percent) | 6.40% | 6.40% | 6.40% | ||||||
Total debt | $ 150,000,000 | ||||||||
6.40% Senior Notes (2007), due 2018 | Successor | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Stated interest rate (as a percent) | 6.40% | 6.40% | |||||||
Total debt | $ 162,671,000 | $ 162,671,000 | |||||||
7.375% Senior Notes (2009), due 2019 | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Stated interest rate (as a percent) | 7.375% | ||||||||
Amount of debt issued | $ 400,000,000 | ||||||||
7.375% Senior Notes (2009), due 2019 | Predecessor | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Stated interest rate (as a percent) | 7.375% | 7.375% | 7.375% | ||||||
Total debt | $ 400,000,000 | ||||||||
7.375% Senior Notes (2009), due 2019 | Successor | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Stated interest rate (as a percent) | 7.375% | 7.375% | |||||||
Total debt | $ 473,127,000 | $ 473,127,000 | |||||||
8.00% Senior Notes (2009), due 2024, callable 2014 | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Stated interest rate (as a percent) | 8.00% | 8.00% | 8.00% | ||||||
Amount of debt issued | $ 100,000,000 | ||||||||
8.00% Senior Notes (2009), due 2024, callable 2014 | Predecessor | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Stated interest rate (as a percent) | 8.00% | ||||||||
Amount of debt issued | $ 100,000,000 | ||||||||
Write off of deferred issue costs | $ 2,400,000 | ||||||||
8.00% Senior Notes (2009), due 2024, callable 2014 | Successor | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Stated interest rate (as a percent) | 8.00% | 8.00% | |||||||
8.45% Senior Notes (2009), due 2039 | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Stated interest rate (as a percent) | 8.45% | ||||||||
Total debt | $ 300,000,000 | ||||||||
8.45% Senior Notes (2009), due 2039 | Predecessor | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Stated interest rate (as a percent) | 8.45% | 8.45% | 8.45% | ||||||
Total debt | $ 300,000,000 | ||||||||
8.45% Senior Notes (2009), due 2039 | Successor | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Stated interest rate (as a percent) | 8.45% | 8.45% | |||||||
Total debt | $ 468,008,000 | $ 468,008,000 | |||||||
Subordinated debentures | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Write off of deferred issue costs | $ 7,200,000 | ||||||||
6.125% Subordinated Debentures (2004), due 2034, callable 2009 | Predecessor | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Stated interest rate (as a percent) | 6.125% | 6.125% | 6.125% | ||||||
6.125% Subordinated Debentures (2004), due 2034, callable 2009 | Successor | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Redemption of subordinated debt | $ 103,100,000 | ||||||||
Stated interest rate (as a percent) | 6.125% | 6.125% | |||||||
6.25% Subordinated Debentures (2012) due 2042, callable 2017 | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Stated interest rate (as a percent) | 6.25% | ||||||||
Amount of debt issued | $ 287,500,000 | ||||||||
6.25% Subordinated Debentures (2012) due 2042, callable 2017 | Predecessor | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Stated interest rate (as a percent) | 6.25% | 6.25% | 6.25% | ||||||
6.25% Subordinated Debentures (2012) due 2042, callable 2017 | Successor | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Stated interest rate (as a percent) | 6.25% | 6.25% | |||||||
6.00% Subordinated Debentures (2012) due 2042, callable 2017 | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Stated interest rate (as a percent) | 6.00% | ||||||||
Amount of debt issued | $ 150,000,000 | ||||||||
6.00% Subordinated Debentures (2012) due 2042, callable 2017 | Predecessor | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Stated interest rate (as a percent) | 6.00% | 6.00% | 6.00% | ||||||
6.00% Subordinated Debentures (2012) due 2042, callable 2017 | Successor | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Stated interest rate (as a percent) | 6.00% | 6.00% | |||||||
7.50% Subordinated Debentures (2001), due 2031, callable 2006 | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Repayment of debt | 103,100,000 | ||||||||
7.25% Subordinated Debentures (2002), due 2032, callable 2007 | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Repayment of debt | 118,600,000 | ||||||||
7.25% Capital Securities (2006), due 2066, callable 2011 | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Repayment of debt | 75,000,000 | ||||||||
7.25% Capital Securities (2006), due 2066, callable 2011,One | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Repayment of debt | 75,000,000 | ||||||||
7.25% Capital Securities (2006), due 2066, callable 2011,Two | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Write off of deferred issue costs | 4,000,000 | ||||||||
Repayment of debt | $ 125,000,000 | ||||||||
Credit Facility | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Line of credit, maximum borrowing capacity | $ 750,000,000 | ||||||||
Line of credit, maximum borrowing capacity to be granted upon entity's request | $ 1,000,000,000 | ||||||||
Facility fee percentage | 0.175% | ||||||||
Credit Facility | Federal Funds Rate | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Interest rate added to the base rate (as a percent) | 0.50% | 0.50% | |||||||
Credit Facility | LIBOR One-Month Rate | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Interest rate added to the base rate (as a percent) | 1.00% | ||||||||
Credit Facility | Predecessor | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Interest rate added to the base rate (as a percent) | 1.20% | ||||||||
Line of credit, amount outstanding | $ 450,000,000 | ||||||||
Credit Facility | Successor | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Line of credit, amount outstanding | $ 485,000,000 | ||||||||
Credit Facility | Successor | LIBOR One-Month Rate | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Interest rate added to the base rate (as a percent) | 1.00% | ||||||||
Letter of Credit | Predecessor | PLICO | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Outstanding letters of credit (LOC) | $ 55,000,000 | ||||||||
Letter of Credit | Successor | PLICO | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Outstanding letters of credit (LOC) | 55,000,000 | $ 0 | $ 0 | ||||||
2015 Credit Facility | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Line of credit, maximum borrowing capacity | 1,000,000,000 | ||||||||
Line of credit, maximum borrowing capacity to be granted upon entity's request | $ 1,250,000,000 | ||||||||
Base of floating rate interest rate payments | LIBOR | ||||||||
Facility fee percentage | 0.125% | 0.15% | |||||||
2015 Credit Facility | Federal Funds Rate | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Base of floating rate interest rate payments | Federal Funds rate | Federal Funds rate | |||||||
Interest rate added to the base rate (as a percent) | 0.50% | ||||||||
2015 Credit Facility | Prime Rate | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Base of floating rate interest rate payments | prime rate | prime rate | |||||||
2015 Credit Facility | LIBOR One-Month Rate | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Base of floating rate interest rate payments | one-month LIBOR | one-month LIBOR | |||||||
Interest rate added to the base rate (as a percent) | 1.00% | ||||||||
2015 Credit Facility | Successor | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||
Interest rate added to the base rate (as a percent) | 1.00% |
DEBT AND OTHER OBLIGATIONS (102
DEBT AND OTHER OBLIGATIONS (Details 3) | Dec. 31, 2015USD ($) |
Minimum | Requirement | |
Debt Instrument [Line Items] | |
Consolidated net worth margin | $ 0 |
Total adjusted capital margin | $ 0 |
Interest cash inflow available compared to adjusted consolidated interest expense | 2 |
Minimum | Actual Results | |
Debt Instrument [Line Items] | |
Consolidated net worth margin | $ 1,000,000,000 |
Total adjusted capital margin | $ 2,500,000,000 |
Interest cash inflow available compared to adjusted consolidated interest expense | 22.5 |
Maximum | Requirement | |
Debt Instrument [Line Items] | |
Debt to total capital ratio | 0.40 |
Maximum | Actual Results | |
Debt Instrument [Line Items] | |
Debt to total capital ratio | 0.21 |
DEBT AND OTHER OBLIGATIONS (103
DEBT AND OTHER OBLIGATIONS (Details 4) | Jan. 15, 2016USD ($) | Oct. 10, 2012USD ($) | Dec. 10, 2010 | Jan. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($)series | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Golden Gate V and Red Mountain | ||||||||
Debt Instrument [Line Items] | ||||||||
Term of transaction | 20 years | 20 years | ||||||
Maximum financing capacity under transaction | $ 945,000,000 | |||||||
Successor | ||||||||
Debt Instrument [Line Items] | ||||||||
Non-recourse funding obligations held by affiliates | $ 430,100,000 | $ 430,100,000 | ||||||
Repayment of non-recourse funding obligations | $ (65,000,000) | |||||||
Outstanding nonrecourse funding obligations repurchased at discount | $ 0 | |||||||
Predecessor | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate (as a percent) | 8.00% | 8.00% | ||||||
Repayment of non-recourse funding obligations | $ 0 | $ (20,000,000) | $ 26,100,000 | |||||
Outstanding nonrecourse funding obligations repurchased at discount | 50,000,000 | 91,100,000 | ||||||
Gain from repurchase of outstanding nonrecourse funding obligations | $ 10,500,000 | $ 20,000,000 | ||||||
Golden Gate | Successor | Non-recourse Funding Obligations Series | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of series of non-recourse funding obligations | series | 3 | |||||||
Outstanding non-recourse funding obligations | $ 800,000,000 | $ 800,000,000 | ||||||
Golden Gate | Successor | Series A1 Non-recourse Funding Obligation | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding non-recourse funding obligations | $ 400,000,000 | $ 400,000,000 | ||||||
Stated interest rate (as a percent) | 7.375% | 7.375% | ||||||
Golden Gate | Successor | Series A2 Non-recourse Funding Obligation | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding non-recourse funding obligations | $ 100,000,000 | $ 100,000,000 | ||||||
Stated interest rate (as a percent) | 8.00% | 8.00% | ||||||
Golden Gate | Successor | Series A3 Non-recourse Funding Obligation | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding non-recourse funding obligations | $ 300,000,000 | $ 300,000,000 | ||||||
Stated interest rate (as a percent) | 8.45% | 8.45% | ||||||
Golden Gate II | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding non-recourse funding obligations | $ 575,000,000 | $ 575,000,000 | ||||||
Golden Gate II | Successor | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding non-recourse funding obligations | 575,000,000 | 575,000,000 | ||||||
Non-recourse funding obligations held by external parties | 144,900,000 | 144,900,000 | ||||||
Repayment of non-recourse funding obligations | 0 | |||||||
Amount collateralized | 1,900,000 | $ 1,900,000 | ||||||
Year-to-Date Weighted-Avg Interest Rate | 1.32% | |||||||
Red Mountain | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum financing capacity under transaction | 945,000,000 | |||||||
Principal amount of note issued | $ 275,000,000 | |||||||
Red Mountain | Successor | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayment of non-recourse funding obligations | $ 0 | |||||||
Principal amount of note issued | $ 500,000,000 | 500,000,000 | ||||||
Golden Gate V | ||||||||
Debt Instrument [Line Items] | ||||||||
Future scheduled capital contributions | $ 134,200,000 | |||||||
Golden Gate V | Successor | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate (as a percent) | 6.25% | 6.25% | ||||||
Maximum financing capacity under transaction | $ 945,000,000 | $ 945,000,000 | ||||||
Principal amount of note issued | $ 500,000,000 | $ 500,000,000 | ||||||
Year-to-Date Weighted-Avg Interest Rate | 5.12% | |||||||
Subsequent Event | Financing Agreement With Golden Gate And Syndicate ff Risk Takers | ||||||||
Debt Instrument [Line Items] | ||||||||
Term of financing agreement | 18 years | |||||||
Financing capacity under the agreement | $ 2,188,000,000 | |||||||
Subsequent Event | Golden Gate | Non-recourse Funding Obligations Series | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding non-recourse funding obligations | 800,000,000 | |||||||
Surplus Notes | Subsequent Event | Golden Gate | Steel City Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Amount of debt issued | 2,188,000,000 | |||||||
Surplus Notes | Subsequent Event | Steel City | Golden Gate Surplus Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Amount of debt issued | $ 2,188,000,000 |
DEBT AND OTHER OBLIGATIONS (104
DEBT AND OTHER OBLIGATIONS (Details 5) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Successor | |
Debt Instrument [Line Items] | |
Carrying Value | $ 685,684 |
Golden Gate II | |
Debt Instrument [Line Items] | |
Carrying Value | 144,900 |
Golden Gate II | Successor | |
Debt Instrument [Line Items] | |
Carrying Value | $ 118,481 |
Year-to-Date Weighted-Avg Interest Rate | 1.32% |
Golden Gate V | Successor | |
Debt Instrument [Line Items] | |
Carrying Value | $ 564,679 |
Year-to-Date Weighted-Avg Interest Rate | 5.12% |
MONY | Successor | |
Debt Instrument [Line Items] | |
Carrying Value | $ 2,524 |
Year-to-Date Weighted-Avg Interest Rate | 6.19% |
DEBT AND OTHER OBLIGATIONS (105
DEBT AND OTHER OBLIGATIONS (Details 6) | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||||||
Jan. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($)installment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Jun. 25, 2014USD ($) | Aug. 07, 2013USD ($) | Dec. 10, 2010USD ($) | Apr. 23, 2010USD ($) | |
Repurchase Program Borrowings | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum balance outstanding | $ 633,700,000 | ||||||||
Predecessor | |||||||||
Debt Instrument [Line Items] | |||||||||
Repurchase program borrowings | $ 50,000,000 | ||||||||
Average borrowing rate (as a percent) | 0.20% | 0.11% | |||||||
Reverse Repurchase Liability Average Interest Rate | 0.16% | ||||||||
Predecessor | Long-term debt and subordinated debt securities | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest expense | $ 8,900,000 | $ 118,400,000 | $ 123,800,000 | ||||||
Predecessor | Other obligations, non-recourse funding obligations and other temporary borrowings | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest expense | 4,900,000 | 54,200,000 | $ 47,500,000 | ||||||
Predecessor | Repurchase Program Borrowings | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum balance outstanding | 175,000,000 | ||||||||
Average daily balance | $ 77,400,000 | 470,400,000 | |||||||
Outstanding balance | 50,000,000 | ||||||||
Successor | |||||||||
Debt Instrument [Line Items] | |||||||||
Repurchase program borrowings | $ 438,185,000 | $ 438,185,000 | |||||||
Average borrowing rate (as a percent) | 0.36% | ||||||||
Successor | Long-term debt and subordinated debt securities | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest expense | $ 58,600,000 | ||||||||
Successor | Other obligations, non-recourse funding obligations and other temporary borrowings | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest expense | 54,100,000 | ||||||||
Successor | Repurchase Program Borrowings | |||||||||
Debt Instrument [Line Items] | |||||||||
Fair value of securities pledged under the repurchase program | 479,900,000 | 479,900,000 | |||||||
Repurchase program borrowings | 438,200,000 | 438,200,000 | |||||||
Maximum balance outstanding | 912,700,000 | 912,700,000 | |||||||
Average daily balance | 540,300,000 | 540,300,000 | |||||||
Golden Gate III | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity under letter of credit | $ 915,000,000 | $ 710,000,000 | $ 505,000,000 | ||||||
Maximum amount up to which LOC will be periodically increased | 935,000,000 | $ 935,000,000 | $ 935,000,000 | $ 720,000,000 | $ 610,000,000 | ||||
Letter of credit term | 15 years | ||||||||
Future scheduled capital contributions | $ 122,500,000 | ||||||||
Number of installments in which future scheduled capital contributions payable | installment | 3 | ||||||||
Golden Gate III | Successor | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding letters of credit (LOC) | 935,000,000 | $ 935,000,000 | |||||||
Golden Gate III | Successor | Letter of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding letters of credit (LOC) | 935,000,000 | 935,000,000 | |||||||
Repayment of debt | 0 | ||||||||
Golden Gate IV | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity under letter of credit | $ 270,000,000 | ||||||||
Maximum amount up to which LOC will be periodically increased | 790,000,000 | $ 790,000,000 | |||||||
Letter of credit term | 12 years | ||||||||
Golden Gate IV | Successor | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity under letter of credit | 780,000,000 | $ 780,000,000 | $ 780,000,000 | $ 270,000,000 | |||||
Maximum amount up to which LOC will be periodically increased | $ 790,000,000 | $ 790,000,000 | |||||||
Letter of credit term | 12 years | ||||||||
Golden Gate IV | Successor | Letter of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayment of debt | $ 0 | ||||||||
Maximum | Repurchase Program Borrowings | |||||||||
Debt Instrument [Line Items] | |||||||||
Term of debt | 90 days |
DEBT AND OTHER OBLIGATIONS (106
DEBT AND OTHER OBLIGATIONS (Details 7) - Successor $ in Thousands | Dec. 31, 2015USD ($) |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | $ 479,877 |
U.S. Treasury and agency securities | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 108,875 |
State and municipal securities | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
Other asset-backed securities | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
Corporate securities | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
Equity securities | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
Non-U.S. sovereign debt | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
Mortgage loans | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 371,002 |
Overnight and Contiguous | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 479,877 |
Overnight and Contiguous | U.S. Treasury and agency securities | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 108,875 |
Overnight and Contiguous | State and municipal securities | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
Overnight and Contiguous | Other asset-backed securities | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
Overnight and Contiguous | Corporate securities | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
Overnight and Contiguous | Equity securities | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
Overnight and Contiguous | Non-U.S. sovereign debt | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
Overnight and Contiguous | Mortgage loans | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 371,002 |
Up to 30 days | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
Up to 30 days | U.S. Treasury and agency securities | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
Up to 30 days | State and municipal securities | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
Up to 30 days | Other asset-backed securities | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
Up to 30 days | Corporate securities | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
Up to 30 days | Equity securities | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
Up to 30 days | Non-U.S. sovereign debt | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
Up to 30 days | Mortgage loans | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
30 - 90 days | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
30 - 90 days | U.S. Treasury and agency securities | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
30 - 90 days | State and municipal securities | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
30 - 90 days | Other asset-backed securities | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
30 - 90 days | Corporate securities | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
30 - 90 days | Equity securities | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
30 - 90 days | Non-U.S. sovereign debt | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
30 - 90 days | Mortgage loans | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
Greater than 90 Days | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
Greater than 90 Days | U.S. Treasury and agency securities | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
Greater than 90 Days | State and municipal securities | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
Greater than 90 Days | Other asset-backed securities | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
Greater than 90 Days | Corporate securities | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
Greater than 90 Days | Equity securities | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
Greater than 90 Days | Non-U.S. sovereign debt | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | 0 |
Greater than 90 Days | Mortgage loans | |
Debt Instrument [Line Items] | |
Collateral pledged for repurchase agreements | $ 0 |
COMMITMENTS AND CONTINGENCIE107
COMMITMENTS AND CONTINGENCIES (Details) | Dec. 31, 2015USD ($) |
Indemnification Agreement | |
Commitments and contingencies | |
Indemnification agreement with certain officers, maximum (up to) | $ 10,000,000 |
COMMITMENTS AND CONTINGENCIE108
COMMITMENTS AND CONTINGENCIES (Details 2) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |||
Jan. 31, 2015USD ($) | Dec. 31, 2015USD ($)ft²city | Dec. 31, 2015USD ($)ft²city | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Sep. 30, 2015USD ($) | |
Future minimum rental payments required under operating leases | ||||||
Estimated net refund in future period | $ 6,200 | |||||
Successor | ||||||
Future minimum rental payments required under operating leases | ||||||
Outstanding mortgage loan commitments | $ 601,900 | $ 601,900 | ||||
Average rate (as a percent) | 4.43% | 4.43% | ||||
Predecessor | ||||||
Future minimum rental payments required under operating leases | ||||||
Outstanding mortgage loan commitments | $ 537,700 | |||||
Average rate (as a percent) | 4.61% | |||||
Administrative and marketing office space | ||||||
Operating leased assets | ||||||
Number of cities in which the company leases properties | city | 17 | 17 | ||||
Future minimum rental payments required under operating leases | ||||||
2,016 | $ 4,406 | $ 4,406 | ||||
2,017 | 4,042 | 4,042 | ||||
2,018 | 3,829 | 3,829 | ||||
2,019 | 3,644 | 3,644 | ||||
2,020 | 3,600 | 3,600 | ||||
Thereafter | 13,145 | $ 13,145 | ||||
Administrative and marketing office space | Successor | ||||||
Operating leased assets | ||||||
Rental expense | 6,300 | |||||
Aggregate annualized rent | $ 6,300 | |||||
Administrative and marketing office space | Predecessor | ||||||
Operating leased assets | ||||||
Rental expense | $ 600 | $ 6,500 | $ 7,000 | |||
Administrative and marketing office space | Minimum | ||||||
Operating leased assets | ||||||
Lease period (in years) | 3 years | |||||
Administrative and marketing office space | Maximum | ||||||
Operating leased assets | ||||||
Lease period (in years) | 10 years | |||||
Administrative and Marketing Office Space Birmingham excluding Home Office | ||||||
Operating leased assets | ||||||
Area leased in Birmingham (in square feet) | ft² | 24,090 | 24,090 | ||||
Building contiguous to home office | ||||||
Future minimum rental payments required under operating leases | ||||||
2,016 | $ 1,385 | $ 1,385 | ||||
2,017 | 1,381 | 1,381 | ||||
2,018 | 76,356 | 76,356 | ||||
Approximate price for which the company may purchase building at the end of lease term | $ 75,000 | $ 75,000 | ||||
Base rate | LIBOR |
COMMITMENTS AND CONTINGENCIE109
COMMITMENTS AND CONTINGENCIES (Details 3) - Targeted multi-state examination with respect to claims paying practices | Dec. 31, 2015USD ($) |
Commitments and contingencies | |
Administrative and/or examination fees which the insurance regulators could demand, minimum | $ 0 |
Administrative and/or examination fees which the insurance regulators could demand, maximum | $ 4,500,000 |
SHAREOWNERS' EQUITY (Details)
SHAREOWNERS' EQUITY (Details) - shares | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Feb. 01, 2015 | Dec. 31, 2012 | |
Issued Shares | 88,776,960 | 88,776,960 | 88,776,960 | |
Treasury Shares | 9,435,255 | 10,199,514 | 10,639,467 | |
Outstanding Shares | 79,341,705 | 78,577,446 | 78,137,493 | |
(Reissuance of) treasury stock | (764,259) | (439,953) | ||
Deposits to treasury stock | 764,259 | 439,953 | ||
Dai-ichi Life | Protective Life Corporation | ||||
Company stock acquired in merger | ||||
Percent of outstanding shares acquired | 100.00% |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - Predecessor $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015installment$ / sharesshares | Dec. 31, 2014USD ($)award$ / sharesshares | Dec. 31, 2013USD ($)award$ / sharesshares | Dec. 31, 2011USD ($)shares | |
Stock-based compensation | ||||
Awards issued (in shares) | 203,295 | |||
Assumptions used in the model for SARs granted | ||||
Awards issued (in shares) | 203,295 | |||
Performance Shares | ||||
Stock-based compensation | ||||
Period over which average return on average equity is calculated (in years) | 3 years | 3 years | ||
Minimum percentage of Company's ROE to earn awards under performance awards | 10.50% | 10.00% | ||
Number of awards earned when ROE is below specified criteria | award | 0 | 0 | ||
Minimum percentage of Company's ROE to earn maximum awards under performance awards | 12.00% | 11.50% | ||
Number of shares of common stock assumed to be payable with respect to each outstanding award | 1 | |||
Awards issued (in shares) | 203,295 | 298,500 | 306,100 | |
Estimated fair value of performance shares awarded | $ | $ 10,484 | $ 9,328 | $ 8,608 | |
Assumptions used in the model for SARs granted | ||||
Awards issued (in shares) | 203,295 | 298,500 | 306,100 | |
Stock Appreciation Rights | ||||
Stock-based compensation | ||||
Awards issued (in shares) | 0 | 0 | ||
Exercisable period of grants from grant date | 5 years | |||
Beginning of annual installments from date of grant | 1 year | |||
Expiration period from date of grant | 10 years | |||
Weighted-Average Base Price per share | ||||
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 30.41 | $ 23.08 | $ 22.15 | |
SARs exercised / forfeited (in dollars per share) | $ / shares | 22.07 | 18.54 | ||
Balance at the end of the period (in dollars per share) | $ / shares | $ 30.41 | $ 23.08 | ||
No. of SARs | ||||
Balance at the beginning of the period (in shares) | 157,628 | 1,305,101 | 1,641,167 | |
SARs exercised / forfeited (in shares) | (1,147,473) | (336,066) | ||
Balance at the end of the period (in shares) | 157,628 | 1,305,101 | ||
Assumptions used in the model for SARs granted | ||||
Awards issued (in shares) | 0 | 0 | ||
Expected volatility rate (as a percent) | 69.40% | |||
Expected risk-free interest rate (as a percent) | 2.60% | |||
Expected dividend rate (as a percent) | 2.40% | |||
Expected forfeiture rate (as a percent) | 0.00% | |||
Stock Appreciation Rights | Minimum | ||||
Stock-based compensation | ||||
Number of annual installments to exercise stock appreciation rights | installment | 3 | |||
Stock Appreciation Rights | Maximum | ||||
Stock-based compensation | ||||
Number of annual installments to exercise stock appreciation rights | installment | 4 |
STOCK-BASED COMPENSATION (De112
STOCK-BASED COMPENSATION (Details 2) - Predecessor - $ / shares | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
41.05 | ||||
Stock-based compensation | ||||
Base Price (in dollars per share) | $ 41.05 | |||
SARs Outstanding (in shares) | 10,000 | |||
Remaining Life | 1 year | |||
Currently Exercisable (in shares) | 10,000 | |||
43.46 | ||||
Stock-based compensation | ||||
Base Price (in dollars per share) | $ 43.46 | |||
SARs Outstanding (in shares) | 22,300 | |||
Remaining Life | 3 years | |||
Currently Exercisable (in shares) | 22,300 | |||
38.59 | ||||
Stock-based compensation | ||||
Base Price (in dollars per share) | $ 38.59 | |||
SARs Outstanding (in shares) | 52,000 | |||
Remaining Life | 4 years | |||
Currently Exercisable (in shares) | 52,000 | |||
$ 3.50 | ||||
Stock-based compensation | ||||
Base Price (in dollars per share) | $ 3.50 | |||
SARs Outstanding (in shares) | 46,110 | |||
Remaining Life | 5 years | |||
Currently Exercisable (in shares) | 46,110 | |||
18.36 | ||||
Stock-based compensation | ||||
Base Price (in dollars per share) | $ 18.36 | |||
SARs Outstanding (in shares) | 27,218 | |||
Remaining Life | 6 years | |||
Currently Exercisable (in shares) | 27,218 | |||
Stock Appreciation Rights | ||||
Stock-based compensation | ||||
SARs Outstanding (in shares) | 157,628 | 1,305,101 | 1,641,167 |
STOCK-BASED COMPENSATION (De113
STOCK-BASED COMPENSATION (Details 3) - Predecessor - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | |
Grant date fair values | ||||
Awards issued (in shares) | 203,295 | |||
Expenses recorded for stock-based compensation plans | $ 25,900 | $ 15,700 | ||
Total compensation cost related to non-vested stock-based compensation not yet recognized | $ 27,000 | |||
Additional equity compensation plan information | ||||
Number of securities to be issued upon exercise of outstanding options, warrants and rights (in shares) | 2,154,679 | |||
Weighted-average exercise price of outstanding options, warrants and rights (in dollars per share) | $ 22.07 | |||
Number of remaining securities available for future issuance under equity compensation plans, excluding securities to be issued upon exercise of outstanding options, warrants and rights (in shares) | 4,092,546 | |||
Equity compensation plans approved by shareowners | ||||
Additional equity compensation plan information | ||||
Number of securities to be issued upon exercise of outstanding options, warrants and rights (in shares) | 1,960,959 | |||
Weighted-average exercise price of outstanding options, warrants and rights (in dollars per share) | $ 22.07 | |||
Number of remaining securities available for future issuance under equity compensation plans, excluding securities to be issued upon exercise of outstanding options, warrants and rights (in shares) | 4,092,546 | |||
Equity compensation plans not approved by shareowners | ||||
Additional equity compensation plan information | ||||
Number of securities to be issued upon exercise of outstanding options, warrants and rights (in shares) | 193,720 | |||
Deferred compensation plan for officers | Equity compensation plans approved by shareowners | ||||
Additional equity compensation plan information | ||||
Number of securities to be issued upon exercise of outstanding options, warrants and rights (in shares) | 475,386 | |||
Deferred compensation plan for officers | Equity compensation plans not approved by shareowners | ||||
Additional equity compensation plan information | ||||
Number of securities to be issued upon exercise of outstanding options, warrants and rights (in shares) | 41,011 | |||
Deferred compensation plan for directors who are not employees | Equity compensation plans approved by shareowners | ||||
Additional equity compensation plan information | ||||
Number of securities to be issued upon exercise of outstanding options, warrants and rights (in shares) | 162,429 | |||
Deferred compensation plan for directors who are not employees | Equity compensation plans not approved by shareowners | ||||
Additional equity compensation plan information | ||||
Number of securities to be issued upon exercise of outstanding options, warrants and rights (in shares) | 152,709 | |||
Performance Shares | ||||
Grant date fair values | ||||
Awards issued (in shares) | 203,295 | 298,500 | 306,100 | |
Fair values of awards at grant date | $ 10,484 | $ 9,328 | $ 8,608 | |
Additional equity compensation plan information | ||||
Number of shares of common stock assumed to be payable with respect to each outstanding award | 1 | |||
Performance Shares | Equity compensation plans approved by shareowners | ||||
Additional equity compensation plan information | ||||
Number of securities to be issued upon exercise of outstanding options, warrants and rights (in shares) | 907,487 | |||
Stock Appreciation Rights | ||||
Grant date fair values | ||||
Awards issued (in shares) | 0 | 0 | ||
Vesting period | 5 years | |||
Stock Appreciation Rights | Equity compensation plans approved by shareowners | ||||
Additional equity compensation plan information | ||||
Number of securities to be issued upon exercise of outstanding options, warrants and rights (in shares) | 102,458 | |||
Number of shares of common stock assumed to be payable with respect to each outstanding award | 1 | |||
Restricted Stock Units | ||||
Grant date fair values | ||||
Awards issued (in shares) | 98,700 | 166,850 | ||
Fair values of awards at grant date | $ 5,100 | $ 5,500 | ||
Restricted Stock Units | Equity compensation plans approved by shareowners | ||||
Additional equity compensation plan information | ||||
Number of securities to be issued upon exercise of outstanding options, warrants and rights (in shares) | 313,199 | |||
Restricted Stock Units | Vesting after three years from grant date | ||||
Grant date fair values | ||||
Vesting percentage | 50.00% | |||
Vesting period | 3 years | |||
Restricted Stock Units | Vesting after four years from grant date | ||||
Grant date fair values | ||||
Vesting percentage | 50.00% | |||
Vesting period | 4 years |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended |
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | |
Minimum | |||
EMPLOYEE BENEFIT PLANS | |||
Estimated contribution by employer | $ 1 | ||
Maximum | |||
EMPLOYEE BENEFIT PLANS | |||
Estimated contribution by employer | $ 10 | ||
Defined Benefit Pension Plan | |||
EMPLOYEE BENEFIT PLANS | |||
Threshold age plus vesting period of active employees to determine type of benefit eligibility | 55 years | ||
Adjusted funding target percentage subject to benefit restrictions, maximum | 80.00% | ||
Defined Benefit Pension Plan | Minimum | |||
EMPLOYEE BENEFIT PLANS | |||
Adjusted funding target percentage to be maintained (at least) | 80.00% | ||
Predecessor | Defined Benefit Pension Plan | |||
EMPLOYEE BENEFIT PLANS | |||
Contribution made by the company to its defined benefit pension plan for the plan year 2014 | $ 2.2 | ||
Successor | Defined Benefit Pension Plan | |||
EMPLOYEE BENEFIT PLANS | |||
Contribution made by the company to its defined benefit pension plan for the plan year 2014 | $ 1.4 |
EMPLOYEE BENEFIT PLANS (Deta115
EMPLOYEE BENEFIT PLANS (Details 2) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Successor | Defined Benefit Pension Plan | |||||
EMPLOYEE BENEFIT PLANS | |||||
Accumulated benefit obligation, end of year | $ 250,133 | $ 250,133 | |||
Change in projected benefit obligation: | |||||
Projected benefit obligation at beginning of year | 281,099 | ||||
Service cost | 11,220 | ||||
Interest cost | 9,072 | ||||
Amendments | 0 | ||||
Actuarial loss/(gain) | (19,235) | ||||
Benefits paid | (13,935) | ||||
Projected benefit obligation at end of year | $ 281,099 | 268,221 | 268,221 | ||
Change in plan assets: | |||||
Fair value of plan assets at beginning of year | 201,820 | ||||
Actual return on plan assets | 6,751 | ||||
Employer contributions | 1,406 | ||||
Benefits paid | (13,935) | ||||
Fair value of plan assets at end of year | 201,820 | 196,042 | 196,042 | ||
After reflecting FASB guidance: | |||||
Funded status | (72,179) | (72,179) | |||
Amounts recognized in the balance sheet: | |||||
Other liabilities | (72,179) | (72,179) | |||
Amounts recognized in accumulated other comprehensive income: | |||||
Net actuarial loss/(gain) | (12,772) | (12,772) | |||
Prior service cost/(credit) | 0 | 0 | |||
Total amounts recognized in AOCI | (12,772) | (12,772) | |||
Successor | Unfunded Excess Benefits Plan | |||||
EMPLOYEE BENEFIT PLANS | |||||
Accumulated benefit obligation, end of year | 54,196 | 54,196 | |||
Change in projected benefit obligation: | |||||
Projected benefit obligation at beginning of year | 51,243 | ||||
Service cost | 1,229 | ||||
Interest cost | 1,499 | ||||
Amendments | 0 | ||||
Actuarial loss/(gain) | 4,484 | ||||
Benefits paid | (1,470) | ||||
Projected benefit obligation at end of year | 51,243 | 56,985 | 56,985 | ||
Change in plan assets: | |||||
Fair value of plan assets at beginning of year | 0 | ||||
Actual return on plan assets | 0 | ||||
Employer contributions | 1,470 | ||||
Benefits paid | (1,470) | ||||
Fair value of plan assets at end of year | 0 | 0 | 0 | ||
After reflecting FASB guidance: | |||||
Funded status | (56,985) | (56,985) | |||
Amounts recognized in the balance sheet: | |||||
Other liabilities | (56,985) | (56,985) | |||
Amounts recognized in accumulated other comprehensive income: | |||||
Net actuarial loss/(gain) | 4,484 | 4,484 | |||
Prior service cost/(credit) | 0 | 0 | |||
Total amounts recognized in AOCI | 4,484 | 4,484 | |||
Successor | Other Postretirement Benefits | |||||
EMPLOYEE BENEFIT PLANS | |||||
Accumulated benefit obligation, end of year | 100 | 100 | |||
Successor | Retiree medical plan | |||||
Change in projected benefit obligation: | |||||
Projected benefit obligation at beginning of year | 247 | 247 | |||
Service cost | 1 | ||||
Interest cost | 2 | ||||
Actuarial loss/(gain) | (113) | ||||
Plan participant contributions | 141 | ||||
Benefits paid | (141) | ||||
Projected benefit obligation at end of year | 137 | 137 | $ 247 | ||
Change in plan assets: | |||||
Benefits paid | (141) | ||||
Successor | Group life insurance plan | |||||
Change in projected benefit obligation: | |||||
Projected benefit obligation at beginning of year | 9,781 | ||||
Service cost | 138 | ||||
Interest cost | 336 | ||||
Actuarial loss/(gain) | (894) | ||||
Benefits paid | (298) | ||||
Projected benefit obligation at end of year | 9,781 | 9,063 | 9,063 | ||
Change in plan assets: | |||||
Benefits paid | (298) | ||||
Predecessor | Defined Benefit Pension Plan | |||||
EMPLOYEE BENEFIT PLANS | |||||
Accumulated benefit obligation, end of year | 262,290 | 249,453 | |||
Change in projected benefit obligation: | |||||
Projected benefit obligation at beginning of year | 267,331 | 281,099 | 267,331 | 219,152 | |
Service cost | 974 | 9,411 | $ 9,345 | ||
Interest cost | 1,002 | 10,493 | 8,985 | ||
Amendments | 0 | 0 | |||
Actuarial loss/(gain) | 12,384 | 38,110 | |||
Benefits paid | (592) | (9,835) | |||
Projected benefit obligation at end of year | 281,099 | 267,331 | 219,152 | ||
Change in plan assets: | |||||
Fair value of plan assets at beginning of year | 203,772 | 201,820 | 203,772 | 180,173 | |
Actual return on plan assets | (3,525) | 17,921 | |||
Employer contributions | 2,165 | 15,513 | |||
Benefits paid | (592) | (9,835) | |||
Fair value of plan assets at end of year | 201,820 | 203,772 | 180,173 | ||
After reflecting FASB guidance: | |||||
Funded status | (79,279) | (63,559) | |||
Amounts recognized in the balance sheet: | |||||
Other liabilities | (79,279) | (63,559) | |||
Amounts recognized in accumulated other comprehensive income: | |||||
Net actuarial loss/(gain) | 96,965 | 80,430 | |||
Prior service cost/(credit) | (1,001) | (1,033) | |||
Total amounts recognized in AOCI | 95,964 | 79,397 | |||
Predecessor | Unfunded Excess Benefits Plan | |||||
EMPLOYEE BENEFIT PLANS | |||||
Accumulated benefit obligation, end of year | 49,251 | 47,368 | |||
Change in projected benefit obligation: | |||||
Projected benefit obligation at beginning of year | 49,575 | 51,243 | 49,575 | 39,679 | |
Service cost | 95 | 954 | 1,037 | ||
Interest cost | 140 | 1,696 | 1,387 | ||
Amendments | 0 | 0 | |||
Actuarial loss/(gain) | 1,555 | 9,153 | |||
Benefits paid | (122) | (1,907) | |||
Projected benefit obligation at end of year | 51,243 | 49,575 | 39,679 | ||
Change in plan assets: | |||||
Fair value of plan assets at beginning of year | 0 | 0 | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |||
Employer contributions | 122 | 1,907 | |||
Benefits paid | (122) | (1,907) | |||
Fair value of plan assets at end of year | 0 | 0 | 0 | ||
After reflecting FASB guidance: | |||||
Funded status | (51,243) | (49,575) | |||
Amounts recognized in the balance sheet: | |||||
Other liabilities | (51,243) | (49,575) | |||
Amounts recognized in accumulated other comprehensive income: | |||||
Net actuarial loss/(gain) | 22,401 | 20,983 | |||
Prior service cost/(credit) | 23 | 24 | |||
Total amounts recognized in AOCI | 22,424 | 21,007 | |||
Predecessor | Other Postretirement Benefits | |||||
EMPLOYEE BENEFIT PLANS | |||||
Accumulated benefit obligation, end of year | 200 | ||||
Predecessor | Retiree medical plan | |||||
Change in projected benefit obligation: | |||||
Projected benefit obligation at beginning of year | 247 | 247 | 447 | ||
Service cost | 2 | ||||
Interest cost | 4 | ||||
Actuarial loss/(gain) | 30 | ||||
Plan participant contributions | 254 | ||||
Benefits paid | (490) | ||||
Projected benefit obligation at end of year | 247 | 447 | |||
Change in plan assets: | |||||
Benefits paid | (490) | ||||
Predecessor | Group life insurance plan | |||||
Change in projected benefit obligation: | |||||
Projected benefit obligation at beginning of year | 9,288 | $ 9,781 | $ 9,288 | 8,653 | |
Service cost | 12 | 97 | |||
Interest cost | 39 | 416 | |||
Actuarial loss/(gain) | 511 | 694 | |||
Benefits paid | (69) | (572) | |||
Projected benefit obligation at end of year | 9,781 | 9,288 | $ 8,653 | ||
Change in plan assets: | |||||
Benefits paid | $ (69) | $ (572) |
EMPLOYEE BENEFIT PLANS (Deta116
EMPLOYEE BENEFIT PLANS (Details 3) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2015 | |
Defined Benefit Pension Plan | ||||
Weighted-average assumptions used to determine benefit obligations | ||||
Period for which annualized returns are obtained for each asset class | 25 years | |||
Defined Benefit Pension Plan | Minimum | ||||
Weighted-average assumptions used to determine net periodic benefit cost | ||||
Rate of compensation increase (as a percent) | 2.50% | |||
Defined Benefit Pension Plan | Maximum | ||||
Weighted-average assumptions used to determine net periodic benefit cost | ||||
Rate of compensation increase (as a percent) | 3.00% | |||
Unfunded Excess Benefits Plan | Minimum | ||||
Weighted-average assumptions used to determine net periodic benefit cost | ||||
Rate of compensation increase (as a percent) | 3.50% | |||
Unfunded Excess Benefits Plan | Maximum | ||||
Weighted-average assumptions used to determine net periodic benefit cost | ||||
Rate of compensation increase (as a percent) | 4.00% | |||
Successor | Defined Benefit Pension Plan | ||||
Weighted-average assumptions used to determine benefit obligations | ||||
Discount rate (as a percent) | 4.29% | |||
Weighted-average assumptions used to determine net periodic benefit cost | ||||
Discount rate (as a percent) | 3.95% | |||
Expected long-term return on plan assets (as a percent) | 7.50% | |||
Successor | Defined Benefit Pension Plan | Prior to Age 40 | ||||
Weighted-average assumptions used to determine benefit obligations | ||||
Rate of compensation increase (as a percent) | 4.75% | |||
Weighted-average assumptions used to determine net periodic benefit cost | ||||
Rate of compensation increase (as a percent) | 475.00% | |||
Successor | Defined Benefit Pension Plan | Age 40 and Above | ||||
Weighted-average assumptions used to determine benefit obligations | ||||
Rate of compensation increase (as a percent) | 3.75% | |||
Weighted-average assumptions used to determine net periodic benefit cost | ||||
Rate of compensation increase (as a percent) | 375.00% | |||
Successor | Unfunded Excess Benefits Plan | ||||
Weighted-average assumptions used to determine benefit obligations | ||||
Discount rate (as a percent) | 3.63% | |||
Weighted-average assumptions used to determine net periodic benefit cost | ||||
Discount rate (as a percent) | 3.65% | |||
Successor | Unfunded Excess Benefits Plan | Prior to Age 40 | ||||
Weighted-average assumptions used to determine benefit obligations | ||||
Rate of compensation increase (as a percent) | 4.75% | |||
Weighted-average assumptions used to determine net periodic benefit cost | ||||
Rate of compensation increase (as a percent) | 475.00% | |||
Successor | Unfunded Excess Benefits Plan | Age 40 and Above | ||||
Weighted-average assumptions used to determine benefit obligations | ||||
Rate of compensation increase (as a percent) | 3.75% | |||
Weighted-average assumptions used to determine net periodic benefit cost | ||||
Rate of compensation increase (as a percent) | 375.00% | |||
Successor | Retiree medical plan | ||||
Weighted-average assumptions used to determine benefit obligations | ||||
Discount rate (as a percent) | 1.54% | |||
Weighted-average assumptions used to determine net periodic benefit cost | ||||
Discount rate (as a percent) | 1.27% | |||
Successor | Group life insurance plan | ||||
Weighted-average assumptions used to determine benefit obligations | ||||
Discount rate (as a percent) | 4.60% | |||
Expected long-term return on plan assets (as a percent) | 2.75% | |||
Weighted-average assumptions used to determine net periodic benefit cost | ||||
Discount rate (as a percent) | 4.21% | |||
Expected long-term return on plan assets (as a percent) | 3.14% | |||
Predecessor | Defined Benefit Pension Plan | ||||
Weighted-average assumptions used to determine benefit obligations | ||||
Discount rate (as a percent) | 3.95% | 3.55% | ||
Weighted-average assumptions used to determine net periodic benefit cost | ||||
Discount rate (as a percent) | 4.86% | 4.07% | ||
Rate of compensation increase (as a percent) | 3.00% | 3.00% | ||
Expected long-term return on plan assets (as a percent) | 7.50% | 7.50% | ||
Predecessor | Defined Benefit Pension Plan | Prior to Age 40 | ||||
Weighted-average assumptions used to determine benefit obligations | ||||
Rate of compensation increase (as a percent) | 4.75% | |||
Predecessor | Defined Benefit Pension Plan | Age 40 and Above | ||||
Weighted-average assumptions used to determine benefit obligations | ||||
Rate of compensation increase (as a percent) | 3.75% | |||
Predecessor | Unfunded Excess Benefits Plan | ||||
Weighted-average assumptions used to determine benefit obligations | ||||
Discount rate (as a percent) | 3.65% | 3.26% | ||
Weighted-average assumptions used to determine net periodic benefit cost | ||||
Discount rate (as a percent) | 4.30% | 3.37% | ||
Rate of compensation increase (as a percent) | 4.00% | 4.00% | ||
Predecessor | Unfunded Excess Benefits Plan | Prior to Age 40 | ||||
Weighted-average assumptions used to determine benefit obligations | ||||
Rate of compensation increase (as a percent) | 4.75% | |||
Predecessor | Unfunded Excess Benefits Plan | Age 40 and Above | ||||
Weighted-average assumptions used to determine benefit obligations | ||||
Rate of compensation increase (as a percent) | 3.75% | |||
Predecessor | Group life insurance plan | ||||
Weighted-average assumptions used to determine benefit obligations | ||||
Discount rate (as a percent) | 3.79% |
EMPLOYEE BENEFIT PLANS (Deta117
EMPLOYEE BENEFIT PLANS (Details 4) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Pension Plan | |||||
EMPLOYEE BENEFIT PLANS | |||||
Average remaining service period used | 9 years 4 months 17 days | ||||
Unfunded Excess Benefits Plan | |||||
EMPLOYEE BENEFIT PLANS | |||||
Average remaining service period used | 7 years 11 months 16 days | ||||
Predecessor | Defined Benefit Pension Plan | |||||
EMPLOYEE BENEFIT PLANS | |||||
Service cost—benefits earned during the period | $ 974 | $ 9,411 | $ 9,345 | ||
Interest cost on projected benefit obligation | 1,002 | 10,493 | 8,985 | ||
Expected return on plan assets | (1,293) | (12,166) | (11,013) | ||
Amortization of prior service cost/(credit) | (33) | (392) | (392) | ||
Amortization of actuarial loss/(gain) | 668 | 6,821 | 9,631 | ||
Preliminary net periodic benefit cost | 1,318 | 14,167 | 16,556 | ||
Settlement/curtailment expense | 0 | 0 | 0 | ||
Total net periodic benefit cost | 1,318 | 14,167 | 16,556 | ||
Predecessor | Unfunded Excess Benefits Plan | |||||
EMPLOYEE BENEFIT PLANS | |||||
Service cost—benefits earned during the period | 95 | 954 | 1,037 | ||
Interest cost on projected benefit obligation | 140 | 1,696 | 1,387 | ||
Expected return on plan assets | 0 | 0 | 0 | ||
Amortization of prior service cost/(credit) | 1 | 12 | 12 | ||
Amortization of actuarial loss/(gain) | 138 | 1,516 | 1,792 | ||
Preliminary net periodic benefit cost | 374 | 4,178 | 4,228 | ||
Settlement/curtailment expense | 0 | 0 | 928 | ||
Total net periodic benefit cost | $ 374 | $ 4,178 | $ 5,156 | ||
Successor | Defined Benefit Pension Plan | |||||
EMPLOYEE BENEFIT PLANS | |||||
Service cost—benefits earned during the period | $ 11,220 | ||||
Interest cost on projected benefit obligation | 9,072 | ||||
Expected return on plan assets | (13,214) | ||||
Amortization of prior service cost/(credit) | 0 | ||||
Amortization of actuarial loss/(gain) | 0 | ||||
Preliminary net periodic benefit cost | 7,078 | ||||
Settlement/curtailment expense | 0 | ||||
Total net periodic benefit cost | 7,078 | ||||
Successor | Unfunded Excess Benefits Plan | |||||
EMPLOYEE BENEFIT PLANS | |||||
Service cost—benefits earned during the period | 1,229 | ||||
Interest cost on projected benefit obligation | 1,499 | ||||
Expected return on plan assets | 0 | ||||
Amortization of prior service cost/(credit) | 0 | ||||
Amortization of actuarial loss/(gain) | 0 | ||||
Preliminary net periodic benefit cost | 2,728 | ||||
Settlement/curtailment expense | 0 | ||||
Total net periodic benefit cost | $ 2,728 |
EMPLOYEE BENEFIT PLANS (Deta118
EMPLOYEE BENEFIT PLANS (Details 5) - Defined Benefit Pension Plan | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash and cash equivalents | ||
Target Allocation for 2016 | ||
Total (as a percent) | 2.00% | |
Equity securities | ||
Target Allocation for 2016 | ||
Total (as a percent) | 60.00% | |
Fixed income | ||
Target Allocation for 2016 | ||
Total (as a percent) | 38.00% | |
Predecessor | ||
Allocation of plan assets of defined benefit pension plan by category | ||
Total (as a percent) | 100.00% | |
Predecessor | Cash and cash equivalents | ||
Allocation of plan assets of defined benefit pension plan by category | ||
Total (as a percent) | 4.00% | |
Predecessor | Equity securities | ||
Allocation of plan assets of defined benefit pension plan by category | ||
Total (as a percent) | 62.00% | |
Predecessor | Fixed income | ||
Allocation of plan assets of defined benefit pension plan by category | ||
Total (as a percent) | 34.00% | |
Successor | ||
Target Allocation for 2016 | ||
Total (as a percent) | 100.00% | |
Allocation of plan assets of defined benefit pension plan by category | ||
Total (as a percent) | 100.00% | |
Successor | Cash and cash equivalents | ||
Target Allocation for 2016 | ||
Total (as a percent) | 2.00% | |
Allocation of plan assets of defined benefit pension plan by category | ||
Total (as a percent) | 2.00% | |
Successor | Equity securities | ||
Target Allocation for 2016 | ||
Total (as a percent) | 60.00% | |
Allocation of plan assets of defined benefit pension plan by category | ||
Total (as a percent) | 61.00% | |
Successor | Fixed income | ||
Target Allocation for 2016 | ||
Total (as a percent) | 38.00% | |
Allocation of plan assets of defined benefit pension plan by category | ||
Total (as a percent) | 37.00% |
EMPLOYEE BENEFIT PLANS (Deta119
EMPLOYEE BENEFIT PLANS (Details 6) - Defined Benefit Pension Plan - USD ($) $ in Thousands | Dec. 31, 2015 | Jan. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Successor | ||||
EMPLOYEE BENEFIT PLANS | ||||
Total investments | $ 196,042 | $ 201,820 | ||
Employer contribution receivable | 0 | |||
Total | 196,042 | |||
Successor | Cash and cash equivalents | ||||
EMPLOYEE BENEFIT PLANS | ||||
Total investments | 3,121 | |||
Successor | Equity securities: Collective Russell 3000 index fund | ||||
EMPLOYEE BENEFIT PLANS | ||||
Total investments | 72,663 | |||
Successor | Equity securities: Fidelity Spartan 500 index fund | ||||
EMPLOYEE BENEFIT PLANS | ||||
Total investments | 52,551 | |||
Successor | Fixed income | ||||
EMPLOYEE BENEFIT PLANS | ||||
Total investments | $ 67,707 | |||
Predecessor | ||||
EMPLOYEE BENEFIT PLANS | ||||
Total investments | $ 201,820 | $ 203,772 | $ 180,173 | |
Employer contribution receivable | 2,165 | |||
Total | 205,937 | |||
Predecessor | Cash and cash equivalents | ||||
EMPLOYEE BENEFIT PLANS | ||||
Total investments | 7,968 | |||
Predecessor | Equity securities: Collective Russell 3000 index fund | ||||
EMPLOYEE BENEFIT PLANS | ||||
Total investments | 79,660 | |||
Predecessor | Equity securities: Fidelity Spartan 500 index fund | ||||
EMPLOYEE BENEFIT PLANS | ||||
Total investments | 51,848 | |||
Predecessor | Fixed income | ||||
EMPLOYEE BENEFIT PLANS | ||||
Total investments | $ 64,296 |
EMPLOYEE BENEFIT PLANS (Deta120
EMPLOYEE BENEFIT PLANS (Details 7) - USD ($) | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Successor | Defined Benefit Pension Plan | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | $ 201,820,000 | $ 196,042,000 | $ 196,042,000 | |
Amount transferred from level 2 to level 3 | 0 | |||
Amount transferred from level 1 to level 2 | 0 | |||
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at beginning of year | 201,820,000 | |||
Fair value of plan assets at end of year | 201,820,000 | 196,042,000 | 196,042,000 | |
Successor | Defined Benefit Pension Plan | Collective short-term investment fund | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 3,121,000 | $ 3,121,000 | ||
Redemption Notice Period | 1 day | |||
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at end of year | 3,121,000 | $ 3,121,000 | ||
Successor | Defined Benefit Pension Plan | Equity securities: Collective Russell 3000 index fund | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 72,663,000 | $ 72,663,000 | ||
Redemption Notice Period | 1 day | |||
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at end of year | 72,663,000 | $ 72,663,000 | ||
Successor | Defined Benefit Pension Plan | Equity securities: Fidelity Spartan 500 index fund | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 52,551,000 | $ 52,551,000 | ||
Redemption Notice Period | 1 day | |||
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at end of year | 52,551,000 | $ 52,551,000 | ||
Successor | Defined Benefit Pension Plan | Equity index funds | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 125,214,000 | 125,214,000 | ||
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at end of year | 125,214,000 | 125,214,000 | ||
Successor | Defined Benefit Pension Plan | Group deposit administration annuity contract | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 67,707,000 | 67,707,000 | ||
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at end of year | 67,707,000 | 67,707,000 | ||
Successor | Defined Benefit Pension Plan | Level 1 | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 55,672,000 | 55,672,000 | ||
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at end of year | 55,672,000 | 55,672,000 | ||
Successor | Defined Benefit Pension Plan | Level 1 | Collective short-term investment fund | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 3,121,000 | 3,121,000 | ||
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at end of year | 3,121,000 | 3,121,000 | ||
Successor | Defined Benefit Pension Plan | Level 1 | Equity index funds | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 52,551,000 | 52,551,000 | ||
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at end of year | 52,551,000 | 52,551,000 | ||
Successor | Defined Benefit Pension Plan | Level 1 | Group deposit administration annuity contract | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 0 | 0 | ||
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at end of year | 0 | 0 | ||
Successor | Defined Benefit Pension Plan | Level 2 | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 72,663,000 | 72,663,000 | ||
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at end of year | 72,663,000 | 72,663,000 | ||
Successor | Defined Benefit Pension Plan | Level 2 | Collective short-term investment fund | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 0 | 0 | ||
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at end of year | 0 | 0 | ||
Successor | Defined Benefit Pension Plan | Level 2 | Equity index funds | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 72,663,000 | 72,663,000 | ||
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at end of year | 72,663,000 | 72,663,000 | ||
Successor | Defined Benefit Pension Plan | Level 2 | Group deposit administration annuity contract | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 0 | 0 | ||
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at end of year | 0 | 0 | ||
Successor | Defined Benefit Pension Plan | Level 3 | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 64,581,000 | 67,707,000 | 67,707,000 | |
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at beginning of year | 64,581,000 | |||
Interest income | 3,126,000 | |||
Transfers from collective short-term investments fund | 0 | |||
Transfers to collective short-term investments fund | 0 | |||
Fair value of plan assets at end of year | 64,581,000 | 67,707,000 | 67,707,000 | |
Successor | Defined Benefit Pension Plan | Level 3 | Collective short-term investment fund | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 0 | 0 | ||
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at end of year | 0 | 0 | ||
Successor | Defined Benefit Pension Plan | Level 3 | Equity index funds | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 0 | 0 | ||
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at end of year | 0 | 0 | ||
Successor | Defined Benefit Pension Plan | Level 3 | Group deposit administration annuity contract | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 67,707,000 | 67,707,000 | ||
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at end of year | 67,707,000 | 67,707,000 | ||
Successor | Group life insurance plan | Money market fund | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 5,653,000 | 5,653,000 | ||
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Transfers to collective short-term investments fund | 0 | |||
Fair value of plan assets at end of year | 5,653,000 | 5,653,000 | ||
Successor | Group life insurance plan | Level 1 | Money market fund | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 5,653,000 | 5,653,000 | ||
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at end of year | 5,653,000 | 5,653,000 | ||
Successor | Group life insurance plan | Level 2 | Money market fund | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 0 | 0 | ||
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at end of year | 0 | 0 | ||
Successor | Group life insurance plan | Level 3 | Money market fund | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 0 | 0 | ||
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at end of year | 0 | 0 | ||
Predecessor | Defined Benefit Pension Plan | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 203,772,000 | 201,820,000 | 203,772,000 | $ 180,173,000 |
Amount transferred from level 2 to level 3 | 4,500,000 | |||
Amount transferred from level 1 to level 2 | 0 | |||
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at beginning of year | 203,772,000 | 201,820,000 | 203,772,000 | 180,173,000 |
Fair value of plan assets at end of year | 201,820,000 | 203,772,000 | ||
Predecessor | Defined Benefit Pension Plan | Collective short-term investment fund | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 7,968,000 | 7,968,000 | $ 7,968,000 | |
Redemption Notice Period | 1 day | |||
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at beginning of year | 7,968,000 | 7,968,000 | ||
Fair value of plan assets at end of year | $ 7,968,000 | |||
Predecessor | Defined Benefit Pension Plan | Equity securities: Collective Russell 3000 index fund | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 79,660,000 | 79,660,000 | $ 79,660,000 | |
Redemption Notice Period | 1 day | |||
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at beginning of year | 79,660,000 | 79,660,000 | ||
Fair value of plan assets at end of year | $ 79,660,000 | |||
Predecessor | Defined Benefit Pension Plan | Equity securities: Fidelity Spartan 500 index fund | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 51,848,000 | 51,848,000 | $ 51,848,000 | |
Redemption Notice Period | 1 day | |||
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at beginning of year | 51,848,000 | 51,848,000 | ||
Fair value of plan assets at end of year | $ 51,848,000 | |||
Predecessor | Defined Benefit Pension Plan | Equity index funds | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 131,508,000 | 131,508,000 | 131,508,000 | |
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at beginning of year | 131,508,000 | 131,508,000 | ||
Fair value of plan assets at end of year | 131,508,000 | |||
Predecessor | Defined Benefit Pension Plan | Group deposit administration annuity contract | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 64,296,000 | 64,296,000 | 64,296,000 | |
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at beginning of year | 64,296,000 | 64,296,000 | ||
Fair value of plan assets at end of year | 64,296,000 | |||
Predecessor | Defined Benefit Pension Plan | Level 1 | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 59,816,000 | 59,816,000 | 59,816,000 | |
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at beginning of year | 59,816,000 | 59,816,000 | ||
Fair value of plan assets at end of year | 59,816,000 | |||
Predecessor | Defined Benefit Pension Plan | Level 1 | Collective short-term investment fund | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 7,968,000 | 7,968,000 | 7,968,000 | |
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at beginning of year | 7,968,000 | 7,968,000 | ||
Fair value of plan assets at end of year | 7,968,000 | |||
Predecessor | Defined Benefit Pension Plan | Level 1 | Equity index funds | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 51,848,000 | 51,848,000 | 51,848,000 | |
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at beginning of year | 51,848,000 | 51,848,000 | ||
Fair value of plan assets at end of year | 51,848,000 | |||
Predecessor | Defined Benefit Pension Plan | Level 1 | Group deposit administration annuity contract | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 0 | 0 | 0 | |
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at beginning of year | 0 | 0 | ||
Fair value of plan assets at end of year | 0 | |||
Predecessor | Defined Benefit Pension Plan | Level 2 | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 79,660,000 | 79,660,000 | 79,660,000 | |
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at beginning of year | 79,660,000 | 79,660,000 | ||
Fair value of plan assets at end of year | 79,660,000 | |||
Predecessor | Defined Benefit Pension Plan | Level 2 | Collective short-term investment fund | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 0 | 0 | 0 | |
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at beginning of year | 0 | 0 | ||
Fair value of plan assets at end of year | 0 | |||
Predecessor | Defined Benefit Pension Plan | Level 2 | Equity index funds | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 79,660,000 | 79,660,000 | 79,660,000 | |
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at beginning of year | 79,660,000 | 79,660,000 | ||
Fair value of plan assets at end of year | 79,660,000 | |||
Predecessor | Defined Benefit Pension Plan | Level 2 | Group deposit administration annuity contract | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 0 | 0 | 0 | |
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at beginning of year | 0 | 0 | ||
Fair value of plan assets at end of year | 0 | |||
Predecessor | Defined Benefit Pension Plan | Level 3 | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 64,296,000 | 64,581,000 | 64,296,000 | 56,736,000 |
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at beginning of year | 64,296,000 | $ 64,581,000 | 64,296,000 | 56,736,000 |
Interest income | 285,000 | 3,060,000 | ||
Transfers from collective short-term investments fund | 0 | 4,500,000 | ||
Transfers to collective short-term investments fund | 0 | 0 | ||
Fair value of plan assets at end of year | 64,581,000 | 64,296,000 | ||
Predecessor | Defined Benefit Pension Plan | Level 3 | Collective short-term investment fund | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 0 | 0 | 0 | |
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at beginning of year | 0 | 0 | ||
Fair value of plan assets at end of year | 0 | |||
Predecessor | Defined Benefit Pension Plan | Level 3 | Equity index funds | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 0 | 0 | 0 | |
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at beginning of year | 0 | 0 | ||
Fair value of plan assets at end of year | 0 | |||
Predecessor | Defined Benefit Pension Plan | Level 3 | Group deposit administration annuity contract | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 64,296,000 | 64,296,000 | 64,296,000 | |
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at beginning of year | 64,296,000 | 64,296,000 | ||
Fair value of plan assets at end of year | 64,296,000 | |||
Predecessor | Group life insurance plan | Money market fund | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 5,925,000 | 5,925,000 | 5,925,000 | |
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at beginning of year | 5,925,000 | 5,925,000 | ||
Transfers to collective short-term investments fund | 0 | |||
Fair value of plan assets at end of year | 5,925,000 | |||
Predecessor | Group life insurance plan | Level 1 | Money market fund | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 5,925,000 | 5,925,000 | 5,925,000 | |
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at beginning of year | 5,925,000 | 5,925,000 | ||
Fair value of plan assets at end of year | 5,925,000 | |||
Predecessor | Group life insurance plan | Level 2 | Money market fund | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 0 | 0 | 0 | |
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at beginning of year | 0 | 0 | ||
Fair value of plan assets at end of year | 0 | |||
Predecessor | Group life insurance plan | Level 3 | Money market fund | ||||
Fair value hierarchy of Plan's assets | ||||
Total investments | 0 | 0 | 0 | |
Reconciliation of beginning and ending balances for fair value measurements for which significant unobservable inputs (level 3) are used | ||||
Fair value of plan assets at beginning of year | $ 0 | $ 0 | ||
Fair value of plan assets at end of year | $ 0 |
EMPLOYEE BENEFIT PLANS (Deta121
EMPLOYEE BENEFIT PLANS (Details 8) - Successor - Level 3 - Group deposit administration annuity contract - Contract Value $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Employee benefit plans | |
Fair Value | $ 67,707 |
Minimum | |
Employee benefit plans | |
Contract rate (as a percent) | 5.22% |
Maximum | |
Employee benefit plans | |
Contract rate (as a percent) | 5.41% |
EMPLOYEE BENEFIT PLANS (Deta122
EMPLOYEE BENEFIT PLANS (Details 9) $ in Thousands | Dec. 31, 2015USD ($) |
Defined Benefit Pension Plan | |
Estimated future benefit payments under defined benefit pension plan | |
2,016 | $ 16,947 |
2,017 | 18,019 |
2,018 | 17,723 |
2,019 | 18,517 |
2,020 | 19,532 |
2021 - 2025 | 102,176 |
Unfunded Excess Benefits Plan | |
Estimated future benefit payments under defined benefit pension plan | |
2,016 | 5,470 |
2,017 | 7,682 |
2,018 | 5,070 |
2,019 | 9,097 |
2,020 | 4,962 |
2021 - 2025 | $ 18,888 |
EMPLOYEE BENEFIT PLANS (Deta123
EMPLOYEE BENEFIT PLANS (Details 10) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Jan. 31, 2015 | |
EMPLOYEE BENEFIT PLANS | ||
Percentage change in healthcare cost trend assumptions which has no material effect on liability related to prescription drug benefit provided to employees | 1.00% | |
Period for which the average and annualized return on Barclay's short treasury index is considered for assessment of reasonableness of long term rate of return assumption | 25 years | |
Other Postretirement Benefits | Maximum | ||
EMPLOYEE BENEFIT PLANS | ||
Age of eligibility for limited healthcare benefits | 65 years | |
Retiree medical plan | Minimum | ||
EMPLOYEE BENEFIT PLANS | ||
Age of eligibility for prescription drug benefit | 65 years | |
Life insurance benefits | $ 10,000 | |
Retiree medical plan | Maximum | ||
EMPLOYEE BENEFIT PLANS | ||
Life insurance benefits | 75,000 | |
Group life insurance plan | ||
EMPLOYEE BENEFIT PLANS | ||
Face amount of life insurance benefits funded | 50,000 | |
Predecessor | Retiree medical plan | ||
EMPLOYEE BENEFIT PLANS | ||
Liability related to prescription drug benefit provided to employees | $ 100,000 | |
Predecessor | Group life insurance plan | ||
EMPLOYEE BENEFIT PLANS | ||
Discount rate (as a percent) | 3.79% | |
Successor | Retiree medical plan | ||
EMPLOYEE BENEFIT PLANS | ||
Discount rate (as a percent) | 1.54% | |
Discount rate (as a percent) | 1.27% | |
Successor | Group life insurance plan | ||
EMPLOYEE BENEFIT PLANS | ||
Discount rate (as a percent) | 4.60% | |
Discount rate (as a percent) | 4.21% | |
Expected long-term return on plan assets (as a percent) | 2.75% | |
Expected long-term return on plan assets (as a percent) | 3.14% |
EMPLOYEE BENEFIT PLANS (Deta124
EMPLOYEE BENEFIT PLANS (Details 11) - USD ($) | 11 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 01, 2015 | |
401 (k) Plan | |||||
Employee contribution, maximum percentage of eligible annual compensation (up to) | 25.00% | ||||
Maximum annual contribution by employee | $ 18,000 | ||||
Minimum age required to be eligible to make catch-up contribution | 50 years | ||||
Maximum additional contribution over and above regular annual contribution limits | $ 6,000 | ||||
Maximum employer matching contribution (as a percent) | 4.00% | ||||
Amount of expenses recorded under a plan that provides supplemental matching contributions in excess of limits imposed | $ 500,000 | $ 400,000 | $ 500,000 | ||
Deferred Compensation Plan | |||||
Per share merger consideration (in dollars per share) | $ 70 | ||||
Successor | |||||
401 (k) Plan | |||||
Expenses recorded due to adopting a cash match for employee contributions to the 401(k) plan | $ 6,300,000 | ||||
Predecessor | |||||
401 (k) Plan | |||||
Expenses recorded due to adopting a cash match for employee contributions to the 401(k) plan | $ 6,300,000 | ||||
Deferred Compensation Plan | |||||
Common stock equivalents credited to participants (in shares) | 1,109,595 |
EARNINGS PER SHARE (PREDECES125
EARNINGS PER SHARE (PREDECESSOR COMPANY) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Jan. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Per share: | |||||||
Antidilutive securities (in shares) | 178,325 | ||||||
Predecessor | |||||||
Calculation of basic earnings per share: | |||||||
Net income | $ 1,509 | $ 74,350 | $ 118,909 | $ 107,977 | $ 83,639 | $ 384,875 | $ 393,464 |
Average shares issued and outstanding (in shares) | 79,343,253 | 78,970,229 | 78,439,987 | ||||
Issuable under various deferred compensation plans (in shares) | 1,109,595 | 1,094,988 | 955,635 | ||||
Weighted shares outstanding - basic (in shares) | 80,452,848 | 80,430,799 | 80,231,591 | 79,979,153 | 79,608,461 | 80,065,217 | 79,395,622 |
Per share: | |||||||
Net income - basic (in dollars per share) | $ 0.02 | $ 0.92 | $ 1.48 | $ 1.35 | $ 1.05 | $ 4.81 | $ 4.96 |
Calculation of diluted earnings per share: | |||||||
Net income | $ 1,509 | $ 74,350 | $ 118,909 | $ 107,977 | $ 83,639 | $ 384,875 | $ 393,464 |
Weighted shares outstanding - basic (in shares) | 80,452,848 | 80,430,799 | 80,231,591 | 79,979,153 | 79,608,461 | 80,065,217 | 79,395,622 |
Stock appreciation rights ("SARs") (in shares) | 64,570 | 272,196 | 432,413 | ||||
Issuable under various other stock-based compensation plans (in shares) | 935,382 | 768,656 | 745,607 | ||||
Restricted stock units (in shares) | 306,487 | 269,427 | 352,071 | ||||
Weighted shares outstanding - diluted (in shares) | 81,759,287 | 81,714,510 | 81,458,870 | 81,446,277 | 80,872,152 | 81,375,496 | 80,925,713 |
Per share: | |||||||
Net income - diluted (in dollars per share) | $ 0.02 | $ 0.91 | $ 1.46 | $ 1.33 | $ 1.03 | $ 4.73 | $ 4.86 |
ACCUMULATED OTHER COMPREHENS126
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |||
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Successor | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning Balance | $ 0 | |||||
Other comprehensive income (loss) before reclassifications | (1,258,189) | |||||
Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings | (393) | |||||
Amounts reclassified from accumulated other comprehensive income (loss) | 17,448 | |||||
Total other comprehensive income (loss) | (1,241,134) | |||||
Ending Balance | $ 0 | (1,241,134) | $ (1,241,134) | |||
Predecessor | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning Balance | 1,418,076 | 1,884,044 | 1,418,076 | $ 494,066 | $ 1,736,722 | |
Other comprehensive income (loss) before reclassifications | 469,852 | 959,561 | (1,220,168) | |||
Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings | (243) | 3,498 | 4,591 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | (3,641) | (39,049) | (27,079) | |||
Total other comprehensive income (loss) | 465,968 | 924,010 | (1,242,656) | |||
Ending Balance | 1,884,044 | 1,418,076 | 494,066 | $ 1,736,722 | ||
Unrealized gains and losses on available-for-sale securities | Successor | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning Balance | 0 | |||||
Other comprehensive income (loss) before reclassifications | (1,264,034) | |||||
Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings | (393) | |||||
Amounts reclassified from accumulated other comprehensive income (loss) | 17,362 | |||||
Total other comprehensive income (loss) | (1,247,065) | |||||
Ending Balance | 0 | (1,247,065) | (1,247,065) | |||
Offset of net unrealized losses in AOCI due to impact those net unrealized losses would have on certain of the Company's insurance assets and liabilities had the net unrealized losses been recognized in net income | (623,000) | |||||
Unrealized gains and losses on available-for-sale securities | Predecessor | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning Balance | 1,484,169 | 1,962,130 | 1,484,169 | 539,003 | 1,813,516 | |
Other comprehensive income (loss) before reclassifications | 482,370 | 986,958 | (1,250,498) | |||
Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings | (243) | 3,498 | 4,591 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | (4,166) | (45,290) | (28,606) | |||
Total other comprehensive income (loss) | 477,961 | 945,166 | (1,274,513) | |||
Ending Balance | 1,962,130 | 1,484,169 | 539,003 | 1,813,516 | ||
Offset of net unrealized losses in AOCI due to impact those net unrealized losses would have on certain of the Company's insurance assets and liabilities had the net unrealized losses been recognized in net income | (492,600) | (504,400) | (189,800) | (204,800) | ||
Accumulated Gain and Loss Derivatives | Successor | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning Balance | 0 | |||||
Other comprehensive income (loss) before reclassifications | (86) | |||||
Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings | 0 | |||||
Amounts reclassified from accumulated other comprehensive income (loss) | 86 | |||||
Total other comprehensive income (loss) | 0 | |||||
Ending Balance | 0 | 0 | 0 | |||
Accumulated Gain and Loss Derivatives | Predecessor | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning Balance | (82) | (50) | (82) | (1,235) | (3,496) | |
Other comprehensive income (loss) before reclassifications | 9 | (2) | 734 | |||
Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings | 0 | 0 | 0 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 23 | 1,155 | 1,527 | |||
Total other comprehensive income (loss) | 32 | 1,153 | 2,261 | |||
Ending Balance | (50) | (82) | (1,235) | (3,496) | ||
Minimum Pension Benefits Liability Adjustment | Successor | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning Balance | 0 | |||||
Other comprehensive income (loss) before reclassifications | 5,931 | |||||
Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings | 0 | |||||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | |||||
Total other comprehensive income (loss) | 5,931 | |||||
Ending Balance | 0 | 5,931 | 5,931 | |||
Minimum Pension Benefits Liability Adjustment | Predecessor | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning Balance | (66,011) | $ (78,036) | $ (66,011) | (43,702) | (73,298) | |
Other comprehensive income (loss) before reclassifications | (12,527) | (27,395) | 29,596 | |||
Other comprehensive income (loss) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings | 0 | 0 | 0 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 502 | 5,086 | 0 | |||
Total other comprehensive income (loss) | (12,025) | (22,309) | 29,596 | |||
Ending Balance | $ (78,036) | $ (66,011) | $ (43,702) | $ (73,298) |
ACCUMULATED OTHER COMPREHENS127
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details 2) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | |||||||
Jan. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Successor | ||||||||||||
Reclassifications out of accumulated other comprehensive income (loss) | ||||||||||||
Benefits and settlement expenses, net of reinsurance ceded | $ (2,539,943) | |||||||||||
Realized investment gains (losses): All other investments | (166,886) | |||||||||||
Net impairment losses recognized in earnings | (26,993) | |||||||||||
Income before income tax | $ 92,827 | $ 122,845 | $ 87,260 | $ 96,910 | 399,842 | |||||||
Tax (expense) or benefit | (29,966) | (41,654) | (26,853) | (33,070) | (131,543) | |||||||
Net income | $ 62,861 | $ 81,191 | $ 60,407 | $ 63,840 | 268,299 | |||||||
Successor | Accumulated Gain and Loss Derivatives | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Reclassifications out of accumulated other comprehensive income (loss) | ||||||||||||
Benefits and settlement expenses, net of reinsurance ceded | (131) | |||||||||||
Income before income tax | (131) | |||||||||||
Tax (expense) or benefit | 45 | |||||||||||
Net income | (86) | |||||||||||
Successor | Unrealized gains and losses on available-for-sale securities | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Reclassifications out of accumulated other comprehensive income (loss) | ||||||||||||
Realized investment gains (losses): All other investments | 281 | |||||||||||
Net impairment losses recognized in earnings | (26,992) | |||||||||||
Income before income tax | (26,711) | |||||||||||
Tax (expense) or benefit | 9,349 | |||||||||||
Net income | (17,362) | |||||||||||
Successor | Pension benefits liability adjustment | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Reclassifications out of accumulated other comprehensive income (loss) | ||||||||||||
Amortization of net actuarial gain/(loss) | 0 | |||||||||||
Amortization of prior service credit/(cost) | 0 | |||||||||||
Amortization of transition asset/(obligation) | 0 | |||||||||||
Income before income tax | 0 | |||||||||||
Tax (expense) or benefit | 0 | |||||||||||
Net income | $ 0 | |||||||||||
Predecessor | ||||||||||||
Reclassifications out of accumulated other comprehensive income (loss) | ||||||||||||
Benefits and settlement expenses, net of reinsurance ceded | $ (267,287) | $ (2,791,610) | $ (2,479,757) | |||||||||
Realized investment gains (losses): All other investments | 81,153 | 205,402 | (123,537) | |||||||||
Net impairment losses recognized in earnings | (481) | (7,275) | (22,447) | |||||||||
Income before income tax | 1,182 | $ 110,991 | $ 184,883 | $ 162,210 | $ 125,205 | 583,289 | 590,373 | |||||
Tax (expense) or benefit | 327 | (36,641) | (65,974) | (54,233) | (41,566) | (198,414) | (196,909) | |||||
Net income | 1,509 | $ 74,350 | $ 118,909 | $ 107,977 | $ 83,639 | 384,875 | 393,464 | |||||
Predecessor | Accumulated Gain and Loss Derivatives | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Reclassifications out of accumulated other comprehensive income (loss) | ||||||||||||
Benefits and settlement expenses, net of reinsurance ceded | (36) | (1,777) | (2,349) | |||||||||
Income before income tax | (36) | (1,777) | (2,349) | |||||||||
Tax (expense) or benefit | 13 | 622 | 822 | |||||||||
Net income | (23) | (1,155) | (1,527) | |||||||||
Predecessor | Unrealized gains and losses on available-for-sale securities | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Reclassifications out of accumulated other comprehensive income (loss) | ||||||||||||
Realized investment gains (losses): All other investments | 6,891 | 76,952 | 66,456 | |||||||||
Net impairment losses recognized in earnings | (481) | (7,275) | (22,447) | |||||||||
Income before income tax | 6,410 | 69,677 | 44,009 | |||||||||
Tax (expense) or benefit | (2,244) | (24,387) | (15,403) | |||||||||
Net income | 4,166 | 45,290 | $ 28,606 | |||||||||
Predecessor | Pension benefits liability adjustment | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Reclassifications out of accumulated other comprehensive income (loss) | ||||||||||||
Amortization of net actuarial gain/(loss) | (808) | (8,264) | ||||||||||
Amortization of prior service credit/(cost) | 31 | 386 | ||||||||||
Amortization of transition asset/(obligation) | 5 | 53 | ||||||||||
Income before income tax | (772) | (7,825) | ||||||||||
Tax (expense) or benefit | 270 | 2,739 | ||||||||||
Net income | $ (502) | $ (5,086) |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred income tax liabilities: | |||||
Change in valuation allowance, before federal income taxes | $ 4,000 | ||||
Successor | |||||
Effective income tax rate related to continuing operations | |||||
Statutory federal income tax rate applied to pre-tax income | 35.00% | ||||
State income taxes | 2.00% | ||||
Investment income not subject to tax | (4.30%) | ||||
Uncertain tax positions | 0.20% | ||||
Other | 0.00% | ||||
Effective tax rate (as a percent) | 32.90% | ||||
Current income tax expense: | |||||
Federal | $ 5,715 | ||||
State | (4,244) | ||||
Total current | 1,471 | ||||
Deferred income tax expense: | |||||
Federal | 118,338 | ||||
State | 11,734 | ||||
Total deferred | 130,072 | ||||
Deferred income tax assets: | |||||
Premium receivables and policy liabilities | 0 | 0 | |||
Loss and credit carryforwards | 34,340 | 34,340 | |||
Deferred compensation | 241,156 | 241,156 | |||
Invested assets (other than unrealized gains) | 0 | 0 | |||
Deferred policy acquisition costs | 274,366 | 274,366 | |||
Premium on corporate debt | 125,296 | 125,296 | |||
Net unrealized loss on investments | 671,540 | 671,540 | |||
Other | 81,032 | 81,032 | |||
Valuation allowance | (4,804) | (4,804) | |||
Deferred income tax assets | 1,422,926 | 1,422,926 | |||
Deferred income tax liabilities: | |||||
Premium receivables and policy liabilities | 276,919 | 276,919 | |||
VOBA and other intangibles | 631,935 | 631,935 | |||
DAC and VOBA | 0 | 0 | |||
Invested assets (other than unrealized gains (losses)) | 1,511,353 | 1,511,353 | |||
Net unrealized gains (losses) on investments | 0 | 0 | |||
Other | 0 | 0 | |||
Deferred income tax liabilities | 2,420,207 | 2,420,207 | |||
Net deferred income tax liability | (997,281) | (997,281) | |||
State based operating loss carryforwards, valuation allowance | 7,400 | 7,400 | |||
Net operating loss carryforwards | 65,600 | 65,600 | |||
State net operating loss carryforwards | $ 11,000 | $ 11,000 | |||
Predecessor | |||||
Effective income tax rate related to continuing operations | |||||
Statutory federal income tax rate applied to pre-tax income | 35.00% | 35.00% | 35.00% | ||
State income taxes | 0.80% | 0.80% | 0.60% | ||
Investment income not subject to tax | (3.20%) | (3.40%) | (3.10%) | ||
Uncertain tax positions | (0.10%) | 1.30% | 0.40% | ||
Other | (0.10%) | 0.30% | 0.50% | ||
Effective tax rate (as a percent) | 32.40% | 34.00% | 33.40% | ||
Current income tax expense: | |||||
Federal | $ (32,803) | $ 189,105 | $ 19,267 | ||
State | 1,685 | 8,838 | 2,588 | ||
Total current | (31,118) | 197,943 | 21,855 | ||
Deferred income tax expense: | |||||
Federal | 30,858 | 1,474 | 174,888 | ||
State | (67) | (1,003) | 166 | ||
Total deferred | $ 30,791 | 471 | $ 175,054 | ||
Deferred income tax assets: | |||||
Premium receivables and policy liabilities | 95,298 | ||||
Loss and credit carryforwards | 516 | ||||
Deferred compensation | 194,223 | ||||
Invested assets (other than unrealized gains) | 63,901 | ||||
Deferred policy acquisition costs | 0 | ||||
Premium on corporate debt | 0 | ||||
Net unrealized loss on investments | 0 | ||||
Other | 0 | ||||
Valuation allowance | (2,206) | ||||
Deferred income tax assets | 351,732 | ||||
Deferred income tax liabilities: | |||||
Premium receivables and policy liabilities | 0 | ||||
VOBA and other intangibles | 0 | ||||
DAC and VOBA | 1,078,533 | ||||
Invested assets (other than unrealized gains (losses)) | 0 | ||||
Net unrealized gains (losses) on investments | 799,123 | ||||
Other | 19,554 | ||||
Deferred income tax liabilities | 1,897,210 | ||||
Net deferred income tax liability | (1,545,478) | ||||
State based operating loss carryforwards, valuation allowance | $ 3,400 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reductions of tax positions of prior years: | ||||
Unrecognized tax benefits expected to increase or decrease in the next twelve months | $ 0 | |||
Predecessor | ||||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | ||||
Balance, beginning of period | $ 193,244,000 | 137,593,000 | $ 105,881,000 | $ 75,292,000 |
Additions for tax positions of the current year | (5,010,000) | 57,463,000 | 7,465,000 | |
Additions for tax positions of prior years | 7,724,000 | 39,433,000 | 26,386,000 | |
Reductions of tax positions of prior years: | ||||
Changes in judgment | (58,365,000) | (9,533,000) | (2,740,000) | |
Settlements during the period | 0 | 0 | 0 | |
Lapses of applicable statute of limitations | 0 | 0 | (522,000) | |
Balance, end of period | 137,593,000 | 193,244,000 | 105,881,000 | |
Unrecognized tax benefits with certainty of deductibility but with uncertainty about the timing of deductions | 126,000,000 | 181,900,000 | 98,000,000 | |
Amount of unrecognized tax benefits that would affect the effective income tax rate if recognized | 11,500,000 | 11,300,000 | 7,900,000 | |
Accrued interest related to the unrecognized tax benefits included in income tax expense (benefit) | (900,000) | 3,900,000 | 2,300,000 | |
Accrued interest associated with unrecognized tax benefits | 12,700,000 | $ 14,300,000 | $ 7,800,000 | |
Successor | ||||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | ||||
Balance, beginning of period | 137,593,000 | |||
Additions for tax positions of the current year | 2,213,000 | |||
Additions for tax positions of prior years | 1,811,000 | |||
Reductions of tax positions of prior years: | ||||
Changes in judgment | (16,416,000) | |||
Settlements during the period | (112,063,000) | |||
Lapses of applicable statute of limitations | 0 | |||
Balance, end of period | $ 137,593,000 | 13,138,000 | ||
Unrecognized tax benefits with certainty of deductibility but with uncertainty about the timing of deductions | 5,600,000 | |||
Amount of unrecognized tax benefits that would affect the effective income tax rate if recognized | 7,500,000 | |||
Accrued interest related to the unrecognized tax benefits included in income tax expense (benefit) | 1,600,000 | |||
Accrued interest associated with unrecognized tax benefits | $ 15,400,000 |
SUPPLEMENTAL CASH FLOW INFOR130
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Successor | ||||
Cash paid / (received) during the year: | ||||
Interest on debt | $ 124,829 | |||
Income taxes | (53,486) | |||
Noncash investing and financing activities: | ||||
Stock-based compensation | 0 | |||
Interest on long-term debt | 51,100 | |||
Interest on subordinated debt | 25,000 | |||
Interest on other and non-recourse funding obligations | $ 48,700 | |||
Predecessor | ||||
Cash paid / (received) during the year: | ||||
Interest on debt | $ 22,802 | $ 174,644 | $ 171,360 | |
Income taxes | (1) | 159,447 | (27,211) | |
Noncash investing and financing activities: | ||||
Stock-based compensation | 1,550 | $ 13,902 | $ 10,739 | |
Interest on long-term debt | 4,800 | |||
Interest on other and non-recourse funding obligations | $ 18,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 02, 2015 | |
PLICO | |||||
Related party transactions | |||||
Guarantee of synthetic lease financing | $ 75,000,000 | ||||
Successor | Certain corporations with which the Company's directors were affiliated | |||||
Related party transactions | |||||
Premiums and policy fees or other amounts for insurance and investment products, interest on bonds and commissions on securities underwriting | 45,300,000 | ||||
Commission, interest on debt and investment products and fees | 10,000,000 | ||||
Successor | Golden Gate | |||||
Related party transactions | |||||
Outstanding surplus notes | 800,000,000 | ||||
Successor | PLICO | Letter of Credit | |||||
Related party transactions | |||||
Outstanding letters of credit (LOC) | 0 | $ 55,000,000 | |||
Successor | Shades Creek Captive Insurance Company | |||||
Related party transactions | |||||
Additional capital provided to affiliate | $ 120,000,000 | ||||
Predecessor | Certain corporations with which the Company's directors were affiliated | |||||
Related party transactions | |||||
Premiums and policy fees or other amounts for insurance and investment products, interest on bonds and commissions on securities underwriting | $ 2,600,000 | $ 33,400,000 | $ 40,000,000 | ||
Commission, interest on debt and investment products and fees | $ 800,000 | 16,500,000 | $ 16,400,000 | ||
Predecessor | PLICO | Letter of Credit | |||||
Related party transactions | |||||
Outstanding letters of credit (LOC) | $ 55,000,000 |
STATUTORY REPORTING PRACTICE132
STATUTORY REPORTING PRACTICES AND OTHER REGULATORY MATTERS (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2016 | |
STATUTORY REPORTING PRACTICES AND OTHER REGULATORY MATTERS | ||||
Number of days after written notice within which dividends may be paid | 30 days | |||
Net assets of the company's insurance subsidiaries that are restricted from transfer (in dollars) | $ 4,000 | |||
Total adjusted capital | 4,100 | |||
Action level RBC | $ 720.6 | |||
RBC ratio (as a percent) | 562.00% | |||
Fair value of fixed maturity and short-term investments of the company's subsidiaries deposited with regulatory authorities | $ 43.8 | |||
Favorable (unfavorable) effects on the statutory surplus of the Company's insurance subsidiaries, compared to NAIC statutory surplus, from the use of prescribed and permitted practices | ||||
Accounting for Letters of Credit as admitted assets | 1,715 | $ 1,735 | ||
Accounting for Red Mountain Note as admitted asset | 500 | 435 | ||
Reserving based on state specific actuarial practices | 117 | 112 | ||
Reserving difference related to a captive insurance company | (118) | (87) | ||
PLICO | ||||
STATUTORY REPORTING PRACTICES AND OTHER REGULATORY MATTERS | ||||
Statutory net income | 440 | 554.2 | $ 165.5 | |
Statutory capital and surplus | 3,800 | 3,500 | ||
Favorable (unfavorable) effects of PLICO's statutory surplus, compared to NAIC statutory surplus, from the use of prescribed and permitted practices | ||||
Non-admission of goodwill | (295) | (310) | ||
Total (net) | $ (295) | $ (310) | ||
Scenario, Forecast | ||||
STATUTORY REPORTING PRACTICES AND OTHER REGULATORY MATTERS | ||||
Estimated maximum amount that would qualify as ordinary dividends from insurance subsidiaries in 2014 (in dollars) | $ 541.3 |
FAIR VALUE OF FINANCIAL INST133
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Predecessor | ||
Assets: | ||
Available-for-sale securities, fair value | $ 34,894,415 | |
Total fixed maturity securities | 36,775,989 | |
Equity securities | 803,230 | |
Other long-term investments | 293,970 | |
Short-term investments | 250,645 | |
Assets related to separate accounts | ||
Variable annuity | 13,157,429 | |
Variable universal life | 834,940 | |
Predecessor | Fixed maturities | ||
Assets: | ||
Available-for-sale securities, fair value | 33,957,169 | |
Trading securities | 2,800,000 | |
Predecessor | Residential mortgage-backed securities | ||
Assets: | ||
Available-for-sale securities, fair value | 1,418,258 | |
Predecessor | Commercial mortgage-backed securities | ||
Assets: | ||
Available-for-sale securities, fair value | 1,177,252 | |
Predecessor | Other asset-backed securities | ||
Assets: | ||
Available-for-sale securities, fair value | 839,376 | |
Predecessor | States, municipals, and political subdivisions | ||
Assets: | ||
Available-for-sale securities, fair value | 1,687,689 | |
Predecessor | Other government-related securities | ||
Assets: | ||
Available-for-sale securities, fair value | 20,172 | |
Predecessor | Corporate securities | ||
Assets: | ||
Available-for-sale securities, fair value | 27,385,527 | |
Predecessor | Level 3 | Other asset-backed securities | ||
Assets: | ||
Total investments | 563,752 | |
Predecessor | Level 3 | Corporate securities | ||
Assets: | ||
Total investments | 1,282,864 | |
Predecessor | Measured at fair value on a recurring basis | Level 1 | ||
Assets: | ||
Total fixed maturity securities | 1,410,883 | |
Equity securities | 630,910 | |
Other long-term investments | 119,997 | |
Short-term investments | 244,100 | |
Total investments | 2,405,890 | |
Cash | 379,411 | |
Other assets | 11,669 | |
Assets related to separate accounts | ||
Variable annuity | 13,157,429 | |
Variable universal life | 834,940 | |
Total assets measured at fair value on a recurring basis | 16,789,339 | |
Liabilities: | ||
Other liabilities | 62,146 | |
Total liabilities measured at fair value on a recurring basis | 62,146 | |
Predecessor | Measured at fair value on a recurring basis | Level 1 | Fixed maturities | ||
Assets: | ||
Available-for-sale securities, fair value | 1,165,320 | |
Trading securities | 245,563 | |
Predecessor | Measured at fair value on a recurring basis | Level 1 | U.S. government-related securities | ||
Assets: | ||
Available-for-sale securities, fair value | 1,165,188 | |
Trading securities | 245,563 | |
Predecessor | Measured at fair value on a recurring basis | Level 1 | Corporate securities | ||
Assets: | ||
Available-for-sale securities, fair value | 132 | |
Predecessor | Measured at fair value on a recurring basis | Level 2 | ||
Assets: | ||
Total fixed maturity securities | 33,277,579 | |
Equity securities | 99,266 | |
Other long-term investments | 106,079 | |
Short-term investments | 6,545 | |
Total investments | 33,489,469 | |
Assets related to separate accounts | ||
Total assets measured at fair value on a recurring basis | 33,489,469 | |
Liabilities: | ||
Other liabilities | 3,741 | |
Total liabilities measured at fair value on a recurring basis | 3,741 | |
Predecessor | Measured at fair value on a recurring basis | Level 2 | Fixed maturities | ||
Assets: | ||
Available-for-sale securities, fair value | 30,898,527 | |
Trading securities | 2,379,052 | |
Predecessor | Measured at fair value on a recurring basis | Level 2 | Residential mortgage-backed securities | ||
Assets: | ||
Available-for-sale securities, fair value | 1,418,255 | |
Trading securities | 288,114 | |
Predecessor | Measured at fair value on a recurring basis | Level 2 | Commercial mortgage-backed securities | ||
Assets: | ||
Available-for-sale securities, fair value | 1,177,252 | |
Trading securities | 151,111 | |
Predecessor | Measured at fair value on a recurring basis | Level 2 | Other asset-backed securities | ||
Assets: | ||
Available-for-sale securities, fair value | 275,415 | |
Trading securities | 105,118 | |
Predecessor | Measured at fair value on a recurring basis | Level 2 | U.S. government-related securities | ||
Assets: | ||
Available-for-sale securities, fair value | 263,707 | |
Trading securities | 4,898 | |
Predecessor | Measured at fair value on a recurring basis | Level 2 | States, municipals, and political subdivisions | ||
Assets: | ||
Available-for-sale securities, fair value | 1,684,014 | |
Trading securities | 325,446 | |
Predecessor | Measured at fair value on a recurring basis | Level 2 | Other government-related securities | ||
Assets: | ||
Available-for-sale securities, fair value | 20,172 | |
Trading securities | 57,032 | |
Predecessor | Measured at fair value on a recurring basis | Level 2 | Corporate securities | ||
Assets: | ||
Available-for-sale securities, fair value | 26,059,712 | |
Trading securities | 1,447,333 | |
Predecessor | Measured at fair value on a recurring basis | Level 3 | ||
Assets: | ||
Total fixed maturity securities | 2,087,527 | |
Equity securities | 73,054 | |
Other long-term investments | 67,894 | |
Total investments | 2,228,475 | |
Assets related to separate accounts | ||
Total assets measured at fair value on a recurring basis | 2,228,475 | |
Liabilities: | ||
Annuity account balances | 97,825 | |
Other liabilities | 754,852 | |
Total liabilities measured at fair value on a recurring basis | 852,677 | |
Predecessor | Measured at fair value on a recurring basis | Level 3 | Fixed maturities | ||
Assets: | ||
Available-for-sale securities, fair value | 1,893,322 | |
Trading securities | 194,205 | |
Predecessor | Measured at fair value on a recurring basis | Level 3 | Residential mortgage-backed securities | ||
Assets: | ||
Available-for-sale securities, fair value | 3 | |
Predecessor | Measured at fair value on a recurring basis | Level 3 | Other asset-backed securities | ||
Assets: | ||
Available-for-sale securities, fair value | 563,961 | |
Trading securities | 169,461 | |
Predecessor | Measured at fair value on a recurring basis | Level 3 | States, municipals, and political subdivisions | ||
Assets: | ||
Available-for-sale securities, fair value | 3,675 | |
Predecessor | Measured at fair value on a recurring basis | Level 3 | Corporate securities | ||
Assets: | ||
Available-for-sale securities, fair value | 1,325,683 | |
Trading securities | 24,744 | |
Successor | ||
Assets: | ||
Available-for-sale securities, fair value | $ 33,847,196 | |
Total fixed maturity securities | 35,573,250 | |
Equity securities | 739,263 | |
Other long-term investments | 352,016 | |
Short-term investments | 268,718 | |
Assets related to separate accounts | ||
Variable annuity | 12,829,188 | |
Variable universal life | 827,610 | |
Successor | Fixed maturities | ||
Assets: | ||
Available-for-sale securities, fair value | 32,909,201 | |
Trading securities | 2,700,000 | |
Successor | Residential mortgage-backed securities | ||
Assets: | ||
Available-for-sale securities, fair value | 1,765,273 | |
Successor | Commercial mortgage-backed securities | ||
Assets: | ||
Available-for-sale securities, fair value | 1,286,887 | |
Successor | Other asset-backed securities | ||
Assets: | ||
Available-for-sale securities, fair value | 797,051 | |
Successor | States, municipals, and political subdivisions | ||
Assets: | ||
Available-for-sale securities, fair value | 1,603,600 | |
Successor | Other government-related securities | ||
Assets: | ||
Available-for-sale securities, fair value | 17,740 | |
Successor | Corporate securities | ||
Assets: | ||
Available-for-sale securities, fair value | 25,843,786 | |
Successor | Preferred stock | ||
Assets: | ||
Available-for-sale securities, fair value | 62,687 | |
Successor | Level 3 | Other asset-backed securities | ||
Assets: | ||
Total investments | 587,031 | |
Successor | Level 3 | Corporate securities | ||
Assets: | ||
Total investments | 875,810 | |
Successor | Measured at fair value on a recurring basis | Level 1 | ||
Assets: | ||
Total fixed maturity securities | 1,333,895 | |
Equity securities | 656,437 | |
Other long-term investments | 113,699 | |
Short-term investments | 261,947 | |
Total investments | 2,365,978 | |
Cash | 396,072 | |
Other assets | 19,099 | |
Assets related to separate accounts | ||
Variable annuity | 12,829,188 | |
Variable universal life | 827,610 | |
Total assets measured at fair value on a recurring basis | 16,437,947 | |
Liabilities: | ||
Other liabilities | 40,067 | |
Total liabilities measured at fair value on a recurring basis | 40,067 | |
Successor | Measured at fair value on a recurring basis | Level 1 | Fixed maturities | ||
Assets: | ||
Available-for-sale securities, fair value | 1,097,509 | |
Trading securities | 236,386 | |
Successor | Measured at fair value on a recurring basis | Level 1 | U.S. government-related securities | ||
Assets: | ||
Available-for-sale securities, fair value | 1,054,353 | |
Trading securities | 233,592 | |
Successor | Measured at fair value on a recurring basis | Level 1 | Corporate securities | ||
Assets: | ||
Available-for-sale securities, fair value | 83 | |
Successor | Measured at fair value on a recurring basis | Level 1 | Preferred stock | ||
Assets: | ||
Available-for-sale securities, fair value | 43,073 | |
Trading securities | 2,794 | |
Successor | Measured at fair value on a recurring basis | Level 2 | ||
Assets: | ||
Total fixed maturity securities | 32,579,065 | |
Equity securities | 13,063 | |
Other long-term investments | 141,487 | |
Short-term investments | 6,771 | |
Total investments | 32,740,386 | |
Assets related to separate accounts | ||
Total assets measured at fair value on a recurring basis | 32,740,386 | |
Liabilities: | ||
Other liabilities | 3,932 | |
Total liabilities measured at fair value on a recurring basis | 3,932 | |
Successor | Measured at fair value on a recurring basis | Level 2 | Fixed maturities | ||
Assets: | ||
Available-for-sale securities, fair value | 30,322,539 | |
Trading securities | 2,256,526 | |
Successor | Measured at fair value on a recurring basis | Level 2 | Residential mortgage-backed securities | ||
Assets: | ||
Available-for-sale securities, fair value | 1,765,270 | |
Trading securities | 286,658 | |
Successor | Measured at fair value on a recurring basis | Level 2 | Commercial mortgage-backed securities | ||
Assets: | ||
Available-for-sale securities, fair value | 1,286,887 | |
Trading securities | 146,743 | |
Successor | Measured at fair value on a recurring basis | Level 2 | Other asset-backed securities | ||
Assets: | ||
Available-for-sale securities, fair value | 210,020 | |
Trading securities | 122,511 | |
Successor | Measured at fair value on a recurring basis | Level 2 | U.S. government-related securities | ||
Assets: | ||
Available-for-sale securities, fair value | 477,824 | |
Trading securities | 4,755 | |
Successor | Measured at fair value on a recurring basis | Level 2 | States, municipals, and political subdivisions | ||
Assets: | ||
Available-for-sale securities, fair value | 1,603,600 | |
Trading securities | 313,354 | |
Successor | Measured at fair value on a recurring basis | Level 2 | Other government-related securities | ||
Assets: | ||
Available-for-sale securities, fair value | 17,740 | |
Trading securities | 58,827 | |
Successor | Measured at fair value on a recurring basis | Level 2 | Corporate securities | ||
Assets: | ||
Available-for-sale securities, fair value | 24,941,584 | |
Trading securities | 1,322,276 | |
Successor | Measured at fair value on a recurring basis | Level 2 | Preferred stock | ||
Assets: | ||
Available-for-sale securities, fair value | 19,614 | |
Trading securities | 1,402 | |
Successor | Measured at fair value on a recurring basis | Level 3 | ||
Assets: | ||
Total fixed maturity securities | 1,660,290 | |
Equity securities | 69,763 | |
Other long-term investments | 96,830 | |
Total investments | 1,826,883 | |
Assets related to separate accounts | ||
Total assets measured at fair value on a recurring basis | 1,826,883 | |
Liabilities: | ||
Annuity account balances | 92,512 | |
Other liabilities | 585,556 | |
Total liabilities measured at fair value on a recurring basis | 678,068 | |
Successor | Measured at fair value on a recurring basis | Level 3 | Fixed maturities | ||
Assets: | ||
Available-for-sale securities, fair value | 1,489,153 | |
Trading securities | 171,137 | |
Successor | Measured at fair value on a recurring basis | Level 3 | Residential mortgage-backed securities | ||
Assets: | ||
Available-for-sale securities, fair value | 3 | |
Successor | Measured at fair value on a recurring basis | Level 3 | Other asset-backed securities | ||
Assets: | ||
Available-for-sale securities, fair value | 587,031 | |
Trading securities | 152,912 | |
Successor | Measured at fair value on a recurring basis | Level 3 | States, municipals, and political subdivisions | ||
Assets: | ||
Available-for-sale securities, fair value | 0 | |
Successor | Measured at fair value on a recurring basis | Level 3 | Corporate securities | ||
Assets: | ||
Available-for-sale securities, fair value | 902,119 | |
Trading securities | 18,225 | |
Fair Values | Predecessor | Measured at fair value on a recurring basis | ||
Assets: | ||
Total fixed maturity securities | 36,775,989 | |
Equity securities | 803,230 | |
Other long-term investments | 293,970 | |
Short-term investments | 250,645 | |
Total investments | 38,123,834 | |
Cash | 379,411 | |
Other assets | 11,669 | |
Assets related to separate accounts | ||
Variable annuity | 13,157,429 | |
Variable universal life | 834,940 | |
Total assets measured at fair value on a recurring basis | 52,507,283 | |
Liabilities: | ||
Annuity account balances | 97,825 | |
Other liabilities | 820,739 | |
Total liabilities measured at fair value on a recurring basis | 918,564 | |
Fair Values | Predecessor | Measured at fair value on a recurring basis | Fixed maturities | ||
Assets: | ||
Available-for-sale securities, fair value | 33,957,169 | |
Trading securities | 2,818,820 | |
Fair Values | Predecessor | Measured at fair value on a recurring basis | Residential mortgage-backed securities | ||
Assets: | ||
Available-for-sale securities, fair value | 1,418,258 | |
Trading securities | 288,114 | |
Fair Values | Predecessor | Measured at fair value on a recurring basis | Commercial mortgage-backed securities | ||
Assets: | ||
Available-for-sale securities, fair value | 1,177,252 | |
Trading securities | 151,111 | |
Fair Values | Predecessor | Measured at fair value on a recurring basis | Other asset-backed securities | ||
Assets: | ||
Available-for-sale securities, fair value | 839,376 | |
Trading securities | 274,579 | |
Fair Values | Predecessor | Measured at fair value on a recurring basis | U.S. government-related securities | ||
Assets: | ||
Available-for-sale securities, fair value | 1,428,895 | |
Trading securities | 250,461 | |
Fair Values | Predecessor | Measured at fair value on a recurring basis | States, municipals, and political subdivisions | ||
Assets: | ||
Available-for-sale securities, fair value | 1,687,689 | |
Trading securities | 325,446 | |
Fair Values | Predecessor | Measured at fair value on a recurring basis | Other government-related securities | ||
Assets: | ||
Available-for-sale securities, fair value | 20,172 | |
Trading securities | 57,032 | |
Fair Values | Predecessor | Measured at fair value on a recurring basis | Corporate securities | ||
Assets: | ||
Available-for-sale securities, fair value | 27,385,527 | |
Trading securities | $ 1,472,077 | |
Fair Values | Successor | Measured at fair value on a recurring basis | ||
Assets: | ||
Total fixed maturity securities | 35,573,250 | |
Equity securities | 739,263 | |
Other long-term investments | 352,016 | |
Short-term investments | 268,718 | |
Total investments | 36,933,247 | |
Cash | 396,072 | |
Other assets | 19,099 | |
Assets related to separate accounts | ||
Variable annuity | 12,829,188 | |
Variable universal life | 827,610 | |
Total assets measured at fair value on a recurring basis | 51,005,216 | |
Liabilities: | ||
Annuity account balances | 92,512 | |
Other liabilities | 629,555 | |
Total liabilities measured at fair value on a recurring basis | 722,067 | |
Fair Values | Successor | Measured at fair value on a recurring basis | Fixed maturities | ||
Assets: | ||
Available-for-sale securities, fair value | 32,909,201 | |
Trading securities | 2,664,049 | |
Fair Values | Successor | Measured at fair value on a recurring basis | Residential mortgage-backed securities | ||
Assets: | ||
Available-for-sale securities, fair value | 1,765,273 | |
Trading securities | 286,658 | |
Fair Values | Successor | Measured at fair value on a recurring basis | Commercial mortgage-backed securities | ||
Assets: | ||
Available-for-sale securities, fair value | 1,286,887 | |
Trading securities | 146,743 | |
Fair Values | Successor | Measured at fair value on a recurring basis | Other asset-backed securities | ||
Assets: | ||
Available-for-sale securities, fair value | 797,051 | |
Trading securities | 275,423 | |
Fair Values | Successor | Measured at fair value on a recurring basis | U.S. government-related securities | ||
Assets: | ||
Available-for-sale securities, fair value | 1,532,177 | |
Trading securities | 238,347 | |
Fair Values | Successor | Measured at fair value on a recurring basis | States, municipals, and political subdivisions | ||
Assets: | ||
Available-for-sale securities, fair value | 1,603,600 | |
Trading securities | 313,354 | |
Fair Values | Successor | Measured at fair value on a recurring basis | Other government-related securities | ||
Assets: | ||
Available-for-sale securities, fair value | 17,740 | |
Trading securities | 58,827 | |
Fair Values | Successor | Measured at fair value on a recurring basis | Corporate securities | ||
Assets: | ||
Available-for-sale securities, fair value | 25,843,786 | |
Trading securities | 1,340,501 | |
Fair Values | Successor | Measured at fair value on a recurring basis | Preferred stock | ||
Assets: | ||
Available-for-sale securities, fair value | 62,687 | |
Trading securities | $ 4,196 |
FAIR VALUE OF FINANCIAL INST134
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 2) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($)primary_source | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($)quote | Dec. 31, 2015USD ($)input_method | Dec. 31, 2014USD ($) | |
Determination of fair values | |||||||
Number of primary sources of information used for determining fair value | primary_source | 1 | ||||||
Total number of primary sources of information available for determining fair value | 3 | 3 | |||||
Minimum percentage of the Company's fixed maturity securities priced by third party pricing services | 90.00% | ||||||
Number of independent non-binding broker quotes obtained per security | quote | 1 | ||||||
Level 3 | Annuity account | Actuarial cash flow model | Minimum | |||||||
Determination of fair values | |||||||
Mortality (as a percent) | 49.00% | ||||||
Level 3 | Annuity account | Actuarial cash flow model | Maximum | |||||||
Determination of fair values | |||||||
Mortality (as a percent) | 80.00% | ||||||
Other asset-backed securities | Level 3 | |||||||
Determination of fair values | |||||||
Financial instruments that are valued using broker quotes | $ 152,900 | $ 152,900 | $ 152,900 | $ 152,900 | $ 152,900 | $ 152,900 | |
Embedded derivative - GMWB | |||||||
Determination of fair values | |||||||
Discount rate curve, base rate | LIBOR | ||||||
Embedded derivative - GMWB | Level 2 and Level 3 | Actuarial cash flow model | Minimum | |||||||
Determination of fair values | |||||||
Mortality (as a percent) | 44.50% | ||||||
Embedded derivative - GMWB | Level 2 and Level 3 | Actuarial cash flow model | Maximum | |||||||
Determination of fair values | |||||||
Mortality (as a percent) | 100.00% | ||||||
Embedded derivative—IUL | |||||||
Determination of fair values | |||||||
Discount rate curve, base rate | LIBOR | ||||||
Embedded derivative—IUL | Annuity account | |||||||
Determination of fair values | |||||||
Discount rate curve, base rate | LIBOR | ||||||
Embedded derivative—IUL | Level 3 | Actuarial cash flow model | Minimum | |||||||
Determination of fair values | |||||||
Mortality (as a percent) | 38.00% | ||||||
Embedded derivative—IUL | Level 3 | Actuarial cash flow model | Maximum | |||||||
Determination of fair values | |||||||
Mortality (as a percent) | 153.00% | ||||||
Predecessor | |||||||
Determination of fair values | |||||||
Fair value, liabilities | $ 820,739 | ||||||
Predecessor | Level 3 | |||||||
Determination of fair values | |||||||
Financial instruments that are valued using broker quotes | 240,300 | ||||||
Financial instruments with book value approximating fair value | 73,700 | ||||||
Predecessor | Level 3 | Annuity account | |||||||
Determination of fair values | |||||||
Fair value, liabilities | $ 97,825 | ||||||
Predecessor | Level 3 | Annuity account | Actuarial cash flow model | Minimum | |||||||
Determination of fair values | |||||||
Mortality (as a percent) | 49.00% | ||||||
Predecessor | Level 3 | Annuity account | Actuarial cash flow model | Maximum | |||||||
Determination of fair values | |||||||
Mortality (as a percent) | 80.00% | ||||||
Predecessor | Other asset-backed securities | |||||||
Determination of fair values | |||||||
Percentage of underlying collateral of student-loan backed auction rate securities guaranteed by the Federal Family Education Loan Program (at least) | 97.00% | ||||||
Predecessor | Other asset-backed securities | Level 3 | |||||||
Determination of fair values | |||||||
Fair value, assets | $ 563,752 | ||||||
Financial instruments that are valued using broker quotes | 169,700 | ||||||
Predecessor | Embedded derivative - GMWB | Level 3 | |||||||
Determination of fair values | |||||||
Fair value, assets | $ 245,090 | ||||||
Predecessor | Embedded derivative - GMWB | Level 3 | Actuarial cash flow model | Minimum | |||||||
Determination of fair values | |||||||
Mortality (as a percent) | 44.50% | ||||||
Predecessor | Embedded derivative - GMWB | Level 3 | Actuarial cash flow model | Maximum | |||||||
Determination of fair values | |||||||
Mortality (as a percent) | 100.00% | ||||||
Predecessor | Equity securities | Level 3 | |||||||
Determination of fair values | |||||||
Financial instruments that are valued using broker quotes | $ 3,000 | ||||||
Financial instruments with book value approximating fair value | 70,000 | ||||||
Predecessor | Corporate securities | Level 3 | |||||||
Determination of fair values | |||||||
Fair value, assets | 1,282,864 | ||||||
Financial instruments that are valued using broker quotes | 67,600 | ||||||
Predecessor | Fixed maturities | Level 3 | |||||||
Determination of fair values | |||||||
Financial instruments with book value approximating fair value | 3,700 | ||||||
Predecessor | Embedded derivative—FIA | Level 3 | |||||||
Determination of fair values | |||||||
Fair value, liabilities | $ 124,465 | ||||||
Predecessor | Embedded derivative—FIA | Level 3 | Actuarial cash flow model | Minimum | |||||||
Determination of fair values | |||||||
Mortality (as a percent) | 49.00% | ||||||
Predecessor | Embedded derivative—FIA | Level 3 | Actuarial cash flow model | Maximum | |||||||
Determination of fair values | |||||||
Mortality (as a percent) | 80.00% | ||||||
Predecessor | Embedded derivative—IUL | Level 3 | |||||||
Determination of fair values | |||||||
Fair value, liabilities | $ 6,691 | ||||||
Predecessor | Embedded derivative—IUL | Level 3 | Actuarial cash flow model | Minimum | |||||||
Determination of fair values | |||||||
Mortality (as a percent) | 37.00% | ||||||
Predecessor | Embedded derivative—IUL | Level 3 | Actuarial cash flow model | Maximum | |||||||
Determination of fair values | |||||||
Mortality (as a percent) | 74.00% | ||||||
Successor | |||||||
Determination of fair values | |||||||
Percentage of derivatives excluding embedded derivatives that were priced using exchange prices or independent broker quotations | 100.00% | ||||||
Fair value, liabilities | $ 629,555 | 629,555 | 629,555 | $ 629,555 | 629,555 | 629,555 | |
Successor | Annuity account | |||||||
Determination of fair values | |||||||
Equity indexed annuities, discount rate for one month (as a percent) | 0.61% | ||||||
Equity indexed annuities, discount rate for five years (as a percent) | 2.43% | ||||||
Equity indexed annuities, discount rate for thirty years (as a percent) | 3.66% | ||||||
Successor | Level 3 | |||||||
Determination of fair values | |||||||
Financial instruments that are valued using broker quotes | 200,500 | 200,500 | 200,500 | $ 200,500 | 200,500 | 200,500 | |
Financial instruments with book value approximating fair value | 66,700 | 66,700 | 66,700 | 66,700 | 66,700 | 66,700 | |
Successor | Level 3 | Annuity account | |||||||
Determination of fair values | |||||||
Fair value, liabilities | 92,512 | 92,512 | 92,512 | 92,512 | 92,512 | 92,512 | |
Successor | Other asset-backed securities | Level 2 | |||||||
Determination of fair values | |||||||
Fair value, assets | 3,800,000 | 3,800,000 | 3,800,000 | 3,800,000 | 3,800,000 | 3,800,000 | |
Successor | Other asset-backed securities | Level 3 | |||||||
Determination of fair values | |||||||
Fair value, assets | 739,900 | 739,900 | 739,900 | 739,900 | 739,900 | 739,900 | |
Successor | Other asset-backed securities | Level 3 | |||||||
Determination of fair values | |||||||
Fair value, assets | 587,031 | 587,031 | 587,031 | 587,031 | 587,031 | 587,031 | |
Successor | Other asset-backed securities | Level 3 | Available-for-sale securities | |||||||
Determination of fair values | |||||||
Fair value, assets | 587,000 | 587,000 | 587,000 | $ 587,000 | 587,000 | 587,000 | |
Percentage of underlying collateral of student-loan backed auction rate securities guaranteed by the Federal Family Education Loan Program (at least) | 97.00% | ||||||
Successor | Other asset-backed securities | Level 3 | Trading securities | |||||||
Determination of fair values | |||||||
Fair value, assets | 152,900 | 152,900 | 152,900 | $ 152,900 | 152,900 | 152,900 | |
Successor | Corporate Bonds, U.S. Government-Related Securities, and Other Government Related Securities | Level 2 | |||||||
Determination of fair values | |||||||
Fair value, assets | 28,800,000 | 28,800,000 | 28,800,000 | 28,800,000 | 28,800,000 | 28,800,000 | |
Successor | Corporate Bonds, U.S. Government-Related Securities, and Other Government Related Securities | Level 3 | |||||||
Determination of fair values | |||||||
Fair value, assets | 920,300 | 920,300 | 920,300 | 920,300 | 920,300 | 920,300 | |
Successor | Embedded derivative - GMWB | |||||||
Determination of fair values | |||||||
Fair value, liabilities | 2,500,000 | 2,500,000 | 2,500,000 | 2,500,000 | 2,500,000 | 2,500,000 | |
Unrealized gain (loss) of securities | 184,100 | ||||||
Successor | Embedded derivative - GMWB | Level 3 | |||||||
Determination of fair values | |||||||
Fair value, liabilities | 181,612 | 181,612 | 181,612 | 181,612 | 181,612 | 181,612 | |
Successor | Equity securities | Level 2 and Level 3 | |||||||
Determination of fair values | |||||||
Fair value, assets | 82,800 | 82,800 | 82,800 | 82,800 | 82,800 | 82,800 | |
Federal home loan bank stock | 65,700 | 65,700 | 65,700 | 65,700 | 65,700 | 65,700 | |
Successor | Equity securities | Level 3 | |||||||
Determination of fair values | |||||||
Financial instruments that are valued using broker quotes | 3,100 | 3,100 | 3,100 | 3,100 | 3,100 | 3,100 | |
Successor | Corporate securities | Level 3 | |||||||
Determination of fair values | |||||||
Fair value, assets | 875,810 | 875,810 | 875,810 | 875,810 | 875,810 | 875,810 | |
Financial instruments that are valued using broker quotes | 44,500 | 44,500 | 44,500 | 44,500 | 44,500 | 44,500 | |
Successor | Embedded derivative—FIA | Level 3 | |||||||
Determination of fair values | |||||||
Fair value, liabilities | 100,329 | 100,329 | 100,329 | 100,329 | 100,329 | 100,329 | |
Successor | Embedded derivative—IUL | Level 3 | |||||||
Determination of fair values | |||||||
Fair value, liabilities | $ 29,629 | $ 29,629 | $ 29,629 | $ 29,629 | $ 29,629 | $ 29,629 | |
Successor | Embedded derivative—IUL | Level 3 | Actuarial cash flow model | Minimum | |||||||
Determination of fair values | |||||||
Mortality (as a percent) | 38.00% | ||||||
Successor | Embedded derivative—IUL | Level 3 | Actuarial cash flow model | Maximum | |||||||
Determination of fair values | |||||||
Mortality (as a percent) | 153.00% |
FAIR VALUE OF FINANCIAL INST135
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 3) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Successor | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value, liabilities | $ 629,555,000 | |
Successor | Other asset-backed securities | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value, assets | 587,031,000 | |
Successor | Corporate securities | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value, assets | 875,810,000 | |
Successor | Embedded derivative - GMWB | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value, liabilities | 2,500,000,000 | |
Successor | Embedded derivative - GMWB | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value, liabilities | 181,612,000 | |
Successor | Embedded derivative—FIA | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value, liabilities | 100,329,000 | |
Successor | Embedded derivative—IUL | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value, liabilities | 29,629,000 | |
Predecessor | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value, liabilities | $ 820,739,000 | |
Predecessor | Other asset-backed securities | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value, assets | 563,752,000 | |
Predecessor | Corporate securities | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value, assets | 1,282,864,000 | |
Predecessor | Embedded derivative - GMWB | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value, assets | 245,090,000 | |
Predecessor | Embedded derivative—FIA | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value, liabilities | 124,465,000 | |
Predecessor | Embedded derivative—IUL | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value, liabilities | 6,691,000 | |
Annuity account | Successor | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value, liabilities | 92,512,000 | |
Annuity account | Predecessor | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value, liabilities | $ 97,825,000 | |
Actuarial cash flow model | Successor | Embedded derivative—FIA | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Expenses per policy | 81.50 | |
Actuarial cash flow model | Annuity account | Successor | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Expenses per policy | $ 81 | |
Withdrawal rate (as a percent) | 2.20% | |
Actuarial cash flow model | Annuity account | Predecessor | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Withdrawal rate (as a percent) | 2.20% | |
Minimum | Discounted cash flow | Successor | Other asset-backed securities | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Liquidity premium (as a percent) | 0.27% | |
Paydown rate (as a percent) | 10.20% | |
Minimum | Discounted cash flow | Successor | Corporate securities | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Spread over treasury (as a percent) | 0.10% | |
Minimum | Discounted cash flow | Predecessor | Other asset-backed securities | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Liquidity premium (as a percent) | 0.39% | |
Paydown rate (as a percent) | 9.70% | |
Minimum | Discounted cash flow | Predecessor | Corporate securities | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Spread over treasury (as a percent) | 0.33% | |
Minimum | Actuarial cash flow model | Embedded derivative—IUL | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Mortality (as a percent) | 38.00% | |
Minimum | Actuarial cash flow model | Successor | Embedded derivative - GMWB | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value inputs, lapse rate | 0.30% | |
Utilization (as a percent) | 99.00% | |
Nonperformance risk (as a percent) | 0.18% | |
Minimum | Actuarial cash flow model | Successor | Embedded derivative—FIA | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value inputs, lapse rate | 2.50% | |
Nonperformance risk (as a percent) | 0.18% | |
Withdrawal rate (as a percent) | 1.10% | |
Minimum | Actuarial cash flow model | Successor | Embedded derivative—IUL | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value inputs, lapse rate | 0.50% | |
Nonperformance risk (as a percent) | 0.18% | |
Mortality (as a percent) | 38.00% | |
Minimum | Actuarial cash flow model | Predecessor | Embedded derivative - GMWB | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value inputs, lapse rate | 0.25% | |
Utilization (as a percent) | 97.00% | |
Nonperformance risk (as a percent) | 0.12% | |
Mortality (as a percent) | 44.50% | |
Minimum | Actuarial cash flow model | Predecessor | Embedded derivative—FIA | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value inputs, lapse rate | 2.20% | |
Nonperformance risk (as a percent) | 0.12% | |
Mortality (as a percent) | 49.00% | |
Expenses per policy | $ 83 | |
Withdrawal rate (as a percent) | 1.10% | |
Minimum | Actuarial cash flow model | Predecessor | Embedded derivative—IUL | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value inputs, lapse rate | 0.50% | |
Nonperformance risk (as a percent) | 0.12% | |
Mortality (as a percent) | 37.00% | |
Minimum | Actuarial cash flow model | Annuity account | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Mortality (as a percent) | 49.00% | |
Minimum | Actuarial cash flow model | Annuity account | Successor | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value inputs, lapse rate | 2.20% | |
Return on assets (as a percent) | 1.50% | |
Asset earned rate (as a percent) | 4.53% | |
Nonperformance risk (as a percent) | 0.18% | |
Minimum | Actuarial cash flow model | Annuity account | Predecessor | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value inputs, lapse rate | 2.20% | |
Return on assets (as a percent) | 1.50% | |
Asset earned rate (as a percent) | 3.86% | |
Nonperformance risk (as a percent) | 0.12% | |
Mortality (as a percent) | 49.00% | |
Expenses per policy | $ 88 | |
Maximum | Discounted cash flow | Successor | Other asset-backed securities | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Liquidity premium (as a percent) | 1.49% | |
Paydown rate (as a percent) | 14.72% | |
Maximum | Discounted cash flow | Successor | Corporate securities | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Spread over treasury (as a percent) | 19.00% | |
Maximum | Discounted cash flow | Predecessor | Other asset-backed securities | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Liquidity premium (as a percent) | 1.49% | |
Paydown rate (as a percent) | 15.80% | |
Maximum | Discounted cash flow | Predecessor | Corporate securities | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Spread over treasury (as a percent) | 7.50% | |
Maximum | Actuarial cash flow model | Embedded derivative—IUL | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Mortality (as a percent) | 153.00% | |
Maximum | Actuarial cash flow model | Successor | Embedded derivative - GMWB | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value inputs, lapse rate | 15.00% | |
Utilization (as a percent) | 10.00% | |
Nonperformance risk (as a percent) | 1.04% | |
Maximum | Actuarial cash flow model | Successor | Embedded derivative—FIA | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value inputs, lapse rate | 40.00% | |
Nonperformance risk (as a percent) | 1.04% | |
Withdrawal rate (as a percent) | 4.50% | |
Maximum | Actuarial cash flow model | Successor | Embedded derivative—IUL | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value inputs, lapse rate | 10.00% | |
Nonperformance risk (as a percent) | 1.04% | |
Mortality (as a percent) | 153.00% | |
Maximum | Actuarial cash flow model | Predecessor | Embedded derivative - GMWB | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value inputs, lapse rate | 17.00% | |
Utilization (as a percent) | 101.00% | |
Nonperformance risk (as a percent) | 0.96% | |
Mortality (as a percent) | 100.00% | |
Maximum | Actuarial cash flow model | Predecessor | Embedded derivative—FIA | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value inputs, lapse rate | 40.00% | |
Nonperformance risk (as a percent) | 0.96% | |
Mortality (as a percent) | 80.00% | |
Expenses per policy | $ 97 | |
Withdrawal rate (as a percent) | 4.50% | |
Maximum | Actuarial cash flow model | Predecessor | Embedded derivative—IUL | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value inputs, lapse rate | 10.00% | |
Nonperformance risk (as a percent) | 0.96% | |
Mortality (as a percent) | 74.00% | |
Maximum | Actuarial cash flow model | Annuity account | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Mortality (as a percent) | 80.00% | |
Maximum | Actuarial cash flow model | Annuity account | Successor | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value inputs, lapse rate | 33.00% | |
Return on assets (as a percent) | 1.85% | |
Asset earned rate (as a percent) | 5.67% | |
Nonperformance risk (as a percent) | 1.04% | |
Maximum | Actuarial cash flow model | Annuity account | Predecessor | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Fair value inputs, lapse rate | 33.00% | |
Return on assets (as a percent) | 1.85% | |
Asset earned rate (as a percent) | 5.92% | |
Nonperformance risk (as a percent) | 0.96% | |
Mortality (as a percent) | 80.00% | |
Expenses per policy | $ 102 | |
Weighted average | Discounted cash flow | Successor | Other asset-backed securities | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Liquidity premium (as a percent) | 0.42% | |
Paydown rate (as a percent) | 13.11% | |
Weighted average | Discounted cash flow | Successor | Corporate securities | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Spread over treasury (as a percent) | 2.61% | |
Weighted average | Discounted cash flow | Predecessor | Other asset-backed securities | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Liquidity premium (as a percent) | 0.69% | |
Paydown rate (as a percent) | 12.08% | |
Weighted average | Discounted cash flow | Predecessor | Corporate securities | Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Spread over treasury (as a percent) | 2.19% |
FAIR VALUE OF FINANCIAL INST136
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 4) - USD ($) | 1 Months Ended | 11 Months Ended | 12 Months Ended |
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Successor | |||
Assets: | |||
Ending Balance | $ 1,826,883,000 | ||
Liabilities: | |||
Beginning Balance | 840,409,000 | ||
Total Realized and Unrealized Gains Included in Earnings | 450,253,000 | ||
Total Realized and Unrealized Losses Included in Earnings | (299,835,000) | ||
Issuances | 368,000 | ||
Settlements | 12,291,000 | ||
Ending Balance | $ 840,409,000 | 678,068,000 | |
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date | 156,574,000 | ||
Transfers | |||
Securities transferred into Level 3 | 0 | ||
Transferred out of Level 3 | 166,600,000 | ||
Transfers from Level 2 to Level 1 | 90,400,000 | ||
Transfers from Level 1 | 21,000,000 | ||
Successor | Annuity account | |||
Liabilities: | |||
Beginning Balance | 98,279,000 | ||
Total Realized and Unrealized Losses Included in Earnings | (6,156,000) | ||
Issuances | 368,000 | ||
Settlements | 12,291,000 | ||
Ending Balance | 98,279,000 | 92,512,000 | |
Successor | Other liabilities | |||
Liabilities: | |||
Beginning Balance | 742,130,000 | ||
Total Realized and Unrealized Gains Included in Earnings | 450,253,000 | ||
Total Realized and Unrealized Losses Included in Earnings | (293,679,000) | ||
Ending Balance | 742,130,000 | 585,556,000 | |
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date | 156,574,000 | ||
Predecessor | |||
Liabilities: | |||
Beginning Balance | 852,677,000 | 1,106,513,000 | $ 377,630,000 |
Total Realized and Unrealized Gains Included in Earnings | 61,000 | 22,547,000 | |
Total Realized and Unrealized Losses Included in Earnings | (254,309,000) | (511,076,000) | |
Issuances | 7,000 | 685,000 | |
Settlements | 419,000 | 14,167,000 | |
Ending Balance | 1,106,513,000 | 852,677,000 | |
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date | (253,712,000) | (484,222,000) | |
Transfers | |||
Securities transferred into Level 3 | 43,200,000 | 31,000,000 | |
Transferred out of Level 3 | 0 | 204,700,000 | |
Transfers from Level 2 to Level 1 | 0 | 0 | |
Transfers from Level 1 | 0 | 0 | |
Predecessor | Annuity account | |||
Liabilities: | |||
Beginning Balance | 97,825,000 | 97,949,000 | 107,000,000 |
Total Realized and Unrealized Losses Included in Earnings | (536,000) | (4,307,000) | |
Issuances | 7,000 | 685,000 | |
Settlements | 419,000 | 14,167,000 | |
Ending Balance | 97,949,000 | 97,825,000 | |
Predecessor | Other liabilities | |||
Liabilities: | |||
Beginning Balance | 754,852,000 | 1,008,564,000 | 270,630,000 |
Total Realized and Unrealized Gains Included in Earnings | 61,000 | 22,547,000 | |
Total Realized and Unrealized Losses Included in Earnings | (253,773,000) | (506,769,000) | |
Ending Balance | 1,008,564,000 | 754,852,000 | |
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date | (253,712,000) | (484,222,000) | |
Total investments | Successor | |||
Assets: | |||
Beginning Balance | 2,275,504,000 | ||
Total Realized and Unrealized Gains Included in Earnings | 89,223,000 | ||
Total Realized and Unrealized Gains Included in Other Comprehensive Income | 35,574,000 | ||
Total Realized and Unrealized Losses Included in Earnings | (84,968,000) | ||
Total Realized and Unrealized Losses Included in Other Comprehensive Income | (69,974,000) | ||
Purchases | 201,924,000 | ||
Sales | (441,594,000) | ||
Transfers in/out of Level 3 | (166,570,000) | ||
Other | (12,236,000) | ||
Ending Balance | 2,275,504,000 | 1,826,883,000 | |
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date | (3,678,000) | ||
Total investments | Predecessor | |||
Assets: | |||
Beginning Balance | 2,228,475,000 | 2,224,975,000 | 2,591,641,000 |
Total Realized and Unrealized Gains Included in Earnings | 1,941,000 | 13,771,000 | |
Total Realized and Unrealized Gains Included in Other Comprehensive Income | 12,282,000 | 108,003,000 | |
Total Realized and Unrealized Losses Included in Earnings | (26,237,000) | (135,573,000) | |
Total Realized and Unrealized Losses Included in Other Comprehensive Income | (26,906,000) | (41,848,000) | |
Purchases | 155,261,000 | ||
Sales | (7,586,000) | (279,809,000) | |
Transfers in/out of Level 3 | 43,205,000 | (173,736,000) | |
Other | (199,000) | (9,235,000) | |
Ending Balance | 2,224,975,000 | 2,228,475,000 | |
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date | (24,296,000) | (127,277,000) | |
Other asset-backed securities | Successor | Available-for-sale securities | |||
Assets: | |||
Beginning Balance | 603,646,000 | ||
Total Realized and Unrealized Gains Included in Other Comprehensive Income | 11,040,000 | ||
Total Realized and Unrealized Losses Included in Earnings | (92,000) | ||
Total Realized and Unrealized Losses Included in Other Comprehensive Income | (17,076,000) | ||
Sales | (9,677,000) | ||
Other | (810,000) | ||
Ending Balance | 603,646,000 | 587,031,000 | |
Other asset-backed securities | Successor | Trading securities | |||
Assets: | |||
Beginning Balance | 169,473,000 | ||
Total Realized and Unrealized Gains Included in Earnings | 6,260,000 | ||
Total Realized and Unrealized Losses Included in Earnings | (7,967,000) | ||
Purchases | 2,000,000 | ||
Sales | (15,154,000) | ||
Transfers in/out of Level 3 | (1,982,000) | ||
Other | 282,000 | ||
Ending Balance | 169,473,000 | 152,912,000 | |
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date | (5,804,000) | ||
Other asset-backed securities | Predecessor | Available-for-sale securities | |||
Assets: | |||
Beginning Balance | 563,961,000 | 603,646,000 | 545,808,000 |
Total Realized and Unrealized Gains Included in Other Comprehensive Income | 36,395,000 | ||
Total Realized and Unrealized Losses Included in Earnings | (248,000) | ||
Total Realized and Unrealized Losses Included in Other Comprehensive Income | (3,867,000) | (8,033,000) | |
Purchases | 0 | ||
Sales | (32,000) | (10,064,000) | |
Transfers in/out of Level 3 | 43,205,000 | 0 | |
Other | 379,000 | 103,000 | |
Ending Balance | 603,646,000 | 563,961,000 | |
Other asset-backed securities | Predecessor | Trading securities | |||
Assets: | |||
Beginning Balance | 169,461,000 | 169,473,000 | 194,977,000 |
Total Realized and Unrealized Gains Included in Earnings | 586,000 | 9,507,000 | |
Total Realized and Unrealized Losses Included in Earnings | (139,000) | (5,508,000) | |
Purchases | 0 | ||
Sales | (472,000) | (30,462,000) | |
Transfers in/out of Level 3 | 0 | ||
Other | 37,000 | 947,000 | |
Ending Balance | 169,473,000 | 169,461,000 | |
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date | 447,000 | 1,083,000 | |
States, municipals, and political subdivisions | Successor | Available-for-sale securities | |||
Assets: | |||
Beginning Balance | 3,675,000 | ||
Sales | (3,675,000) | ||
Ending Balance | 3,675,000 | 0 | |
States, municipals, and political subdivisions | Predecessor | Available-for-sale securities | |||
Assets: | |||
Beginning Balance | 3,675,000 | 3,675,000 | 3,675,000 |
Total Realized and Unrealized Losses Included in Other Comprehensive Income | 0 | ||
Sales | 0 | ||
Other | 0 | ||
Ending Balance | 3,675,000 | 3,675,000 | |
States, municipals, and political subdivisions | Predecessor | Trading securities | |||
Assets: | |||
Total Realized and Unrealized Losses Included in Earnings | 0 | ||
Purchases | 0 | ||
Transfers in/out of Level 3 | 0 | ||
Other government-related securities | Predecessor | Available-for-sale securities | |||
Assets: | |||
Beginning Balance | 0 | ||
Total Realized and Unrealized Gains Included in Other Comprehensive Income | 0 | ||
Total Realized and Unrealized Losses Included in Other Comprehensive Income | 0 | ||
Sales | 0 | ||
Other | 0 | ||
Corporate securities | Successor | Available-for-sale securities | |||
Assets: | |||
Beginning Balance | 1,307,259,000 | ||
Total Realized and Unrealized Gains Included in Earnings | 4,367,000 | ||
Total Realized and Unrealized Gains Included in Other Comprehensive Income | 24,490,000 | ||
Total Realized and Unrealized Losses Included in Earnings | (963,000) | ||
Total Realized and Unrealized Losses Included in Other Comprehensive Income | (52,898,000) | ||
Purchases | 199,924,000 | ||
Sales | (407,052,000) | ||
Transfers in/out of Level 3 | (164,588,000) | ||
Other | (8,420,000) | ||
Ending Balance | 1,307,259,000 | 902,119,000 | |
Corporate securities | Successor | Trading securities | |||
Assets: | |||
Beginning Balance | 25,130,000 | ||
Total Realized and Unrealized Gains Included in Earnings | 501,000 | ||
Total Realized and Unrealized Losses Included in Earnings | (1,407,000) | ||
Purchases | 0 | ||
Sales | (5,805,000) | ||
Transfers in/out of Level 3 | 0 | ||
Other | (194,000) | ||
Ending Balance | 25,130,000 | 18,225,000 | |
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date | (1,430,000) | ||
Corporate securities | Predecessor | Available-for-sale securities | |||
Assets: | |||
Beginning Balance | 1,325,683,000 | 1,307,259,000 | 1,549,940,000 |
Total Realized and Unrealized Gains Included in Earnings | 1,183,000 | ||
Total Realized and Unrealized Gains Included in Other Comprehensive Income | 12,282,000 | 67,955,000 | |
Total Realized and Unrealized Losses Included in Earnings | (2,000) | ||
Total Realized and Unrealized Losses Included in Other Comprehensive Income | (23,029,000) | (33,553,000) | |
Purchases | 139,029,000 | ||
Sales | (7,062,000) | (226,073,000) | |
Transfers in/out of Level 3 | (162,236,000) | ||
Other | (615,000) | (10,560,000) | |
Ending Balance | 1,307,259,000 | 1,325,683,000 | |
Corporate securities | Predecessor | Trading securities | |||
Assets: | |||
Beginning Balance | 24,744,000 | 25,130,000 | 29,199,000 |
Total Realized and Unrealized Gains Included in Earnings | 602,000 | 1,294,000 | |
Total Realized and Unrealized Losses Included in Earnings | (196,000) | (1,098,000) | |
Purchases | 5,839,000 | ||
Sales | (20,000) | (10,770,000) | |
Transfers in/out of Level 3 | 4,000 | ||
Other | 276,000 | ||
Ending Balance | 25,130,000 | 24,744,000 | |
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date | 406,000 | (121,000) | |
Fixed maturities | Successor | |||
Assets: | |||
Beginning Balance | 2,109,186,000 | ||
Total Realized and Unrealized Gains Included in Earnings | 11,128,000 | ||
Total Realized and Unrealized Gains Included in Other Comprehensive Income | 35,530,000 | ||
Total Realized and Unrealized Losses Included in Earnings | (10,429,000) | ||
Total Realized and Unrealized Losses Included in Other Comprehensive Income | (69,974,000) | ||
Purchases | 201,924,000 | ||
Sales | (441,363,000) | ||
Transfers in/out of Level 3 | (166,570,000) | ||
Other | (9,142,000) | ||
Ending Balance | 2,109,186,000 | 1,660,290,000 | |
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date | (7,234,000) | ||
Fixed maturities | Successor | Available-for-sale securities | |||
Assets: | |||
Beginning Balance | 1,914,583,000 | ||
Total Realized and Unrealized Gains Included in Earnings | 4,367,000 | ||
Total Realized and Unrealized Gains Included in Other Comprehensive Income | 35,530,000 | ||
Total Realized and Unrealized Losses Included in Earnings | (1,055,000) | ||
Total Realized and Unrealized Losses Included in Other Comprehensive Income | (69,974,000) | ||
Purchases | 199,924,000 | ||
Sales | (420,404,000) | ||
Transfers in/out of Level 3 | (164,588,000) | ||
Other | (9,230,000) | ||
Ending Balance | 1,914,583,000 | 1,489,153,000 | |
Fixed maturities | Successor | Trading securities | |||
Assets: | |||
Beginning Balance | 194,603,000 | ||
Total Realized and Unrealized Gains Included in Earnings | 6,761,000 | ||
Total Realized and Unrealized Losses Included in Earnings | (9,374,000) | ||
Purchases | 2,000,000 | ||
Sales | (20,959,000) | ||
Transfers in/out of Level 3 | (1,982,000) | ||
Other | 88,000 | ||
Ending Balance | 194,603,000 | 171,137,000 | |
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date | (7,234,000) | ||
Fixed maturities | Predecessor | |||
Assets: | |||
Beginning Balance | 2,087,527,000 | 2,109,186,000 | 2,323,627,000 |
Total Realized and Unrealized Gains Included in Earnings | 1,188,000 | 11,995,000 | |
Total Realized and Unrealized Gains Included in Other Comprehensive Income | 12,282,000 | 104,350,000 | |
Total Realized and Unrealized Losses Included in Earnings | (335,000) | (6,856,000) | |
Total Realized and Unrealized Losses Included in Other Comprehensive Income | (26,896,000) | (41,587,000) | |
Purchases | 145,710,000 | ||
Sales | (7,586,000) | (277,393,000) | |
Transfers in/out of Level 3 | 43,205,000 | (163,085,000) | |
Other | (199,000) | (9,234,000) | |
Ending Balance | 2,109,186,000 | 2,087,527,000 | |
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date | 853,000 | 962,000 | |
Fixed maturities | Predecessor | Available-for-sale securities | |||
Assets: | |||
Beginning Balance | 1,893,322,000 | 1,914,583,000 | 2,099,451,000 |
Total Realized and Unrealized Gains Included in Earnings | 1,183,000 | ||
Total Realized and Unrealized Gains Included in Other Comprehensive Income | 12,282,000 | 104,350,000 | |
Total Realized and Unrealized Losses Included in Earnings | (250,000) | ||
Total Realized and Unrealized Losses Included in Other Comprehensive Income | (26,896,000) | (41,587,000) | |
Purchases | 139,029,000 | ||
Sales | (7,094,000) | (236,161,000) | |
Transfers in/out of Level 3 | 43,205,000 | (162,236,000) | |
Other | (236,000) | (10,457,000) | |
Ending Balance | 1,914,583,000 | 1,893,322,000 | |
Fixed maturities | Predecessor | Trading securities | |||
Assets: | |||
Beginning Balance | 194,205,000 | 194,603,000 | 224,176,000 |
Total Realized and Unrealized Gains Included in Earnings | 1,188,000 | 10,812,000 | |
Total Realized and Unrealized Losses Included in Earnings | (335,000) | (6,606,000) | |
Purchases | 6,681,000 | ||
Sales | (492,000) | (41,232,000) | |
Transfers in/out of Level 3 | (849,000) | ||
Other | 37,000 | 1,223,000 | |
Ending Balance | 194,603,000 | 194,205,000 | |
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date | 853,000 | 962,000 | |
Residential mortgage-backed securities | Successor | Available-for-sale securities | |||
Assets: | |||
Beginning Balance | 3,000 | ||
Total Realized and Unrealized Losses Included in Other Comprehensive Income | 0 | ||
Sales | 0 | ||
Ending Balance | 3,000 | 3,000 | |
Residential mortgage-backed securities | Successor | Trading securities | |||
Assets: | |||
Total Realized and Unrealized Gains Included in Earnings | 0 | ||
Purchases | 0 | ||
Transfers in/out of Level 3 | 0 | ||
Residential mortgage-backed securities | Predecessor | Available-for-sale securities | |||
Assets: | |||
Beginning Balance | 3,000 | 3,000 | 28,000 |
Total Realized and Unrealized Gains Included in Other Comprehensive Income | 0 | ||
Total Realized and Unrealized Losses Included in Other Comprehensive Income | (1,000) | ||
Purchases | 0 | ||
Sales | (24,000) | ||
Transfers in/out of Level 3 | 0 | ||
Other | 0 | ||
Ending Balance | 3,000 | 3,000 | |
Residential mortgage-backed securities | Predecessor | Trading securities | |||
Assets: | |||
Total Realized and Unrealized Gains Included in Earnings | 11,000 | ||
Total Realized and Unrealized Losses Included in Earnings | 0 | ||
Purchases | 842,000 | ||
Sales | 0 | ||
Transfers in/out of Level 3 | (853,000) | ||
Other | 0 | ||
Equity securities | Successor | |||
Assets: | |||
Beginning Balance | 73,044,000 | ||
Total Realized and Unrealized Gains Included in Earnings | 0 | ||
Total Realized and Unrealized Gains Included in Other Comprehensive Income | 44,000 | ||
Total Realized and Unrealized Losses Included in Other Comprehensive Income | 0 | ||
Purchases | 0 | ||
Sales | (231,000) | ||
Transfers in/out of Level 3 | 0 | ||
Other | (3,094,000) | ||
Ending Balance | 73,044,000 | 69,763,000 | |
Equity securities | Predecessor | |||
Assets: | |||
Beginning Balance | 73,054,000 | 73,044,000 | 71,881,000 |
Total Realized and Unrealized Gains Included in Earnings | 1,298,000 | ||
Total Realized and Unrealized Gains Included in Other Comprehensive Income | 3,653,000 | ||
Total Realized and Unrealized Losses Included in Other Comprehensive Income | (10,000) | (261,000) | |
Purchases | 9,551,000 | ||
Sales | (2,416,000) | ||
Transfers in/out of Level 3 | (10,651,000) | ||
Other | (1,000) | ||
Ending Balance | 73,044,000 | 73,054,000 | |
Other long-term investments(1) | Successor | |||
Assets: | |||
Beginning Balance | 93,274,000 | ||
Total Realized and Unrealized Gains Included in Earnings | 78,095,000 | ||
Total Realized and Unrealized Losses Included in Earnings | (74,539,000) | ||
Ending Balance | 93,274,000 | 96,830,000 | |
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date | 3,556,000 | ||
Other long-term investments(1) | Predecessor | |||
Assets: | |||
Beginning Balance | 67,894,000 | $ 42,745,000 | 196,133,000 |
Total Realized and Unrealized Gains Included in Earnings | 753,000 | 478,000 | |
Total Realized and Unrealized Losses Included in Earnings | (25,902,000) | (128,717,000) | |
Ending Balance | 42,745,000 | 67,894,000 | |
Total Gains (losses) included in Earnings related to Instruments still held at the Reporting Date | $ (25,149,000) | $ (128,239,000) |
FAIR VALUE OF FINANCIAL INST137
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 5) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Successor | ||
Assets: | ||
Mortgage loans on real estate | $ 5,662,812 | |
Policy loans | 1,699,508 | |
Fixed maturities, held-to-maturity | 593,314 | |
Liabilities: | ||
Stable value product account balances | 2,131,822 | |
Annuity account balances | 10,719,862 | |
Debt: | ||
Subordinated debt securities | 448,763 | |
Non-recourse funding obligations | 685,684 | |
Successor | Golden Gate V | ||
Debt: | ||
Non-recourse funding obligations | 564,679 | |
Successor | Carrying Amounts | ||
Assets: | ||
Mortgage loans on real estate | 5,662,812 | |
Policy loans | 1,699,508 | |
Fixed maturities, held-to-maturity | 593,314 | |
Liabilities: | ||
Stable value product account balances | 2,131,822 | |
Annuity account balances | 10,719,862 | |
Debt: | ||
Bank borrowings | 485,000 | |
Senior Notes | 1,103,806 | |
Subordinated debt securities | 448,763 | |
Non-recourse funding obligations | 685,684 | |
Successor | Carrying Amounts | Golden Gate V | ||
Debt: | ||
Non-recourse funding obligations | 500,000 | |
Successor | Fair Values | Golden Gate V | ||
Debt: | ||
Non-recourse funding obligations | 495,500 | |
Successor | Fair Values | Level 3 | ||
Assets: | ||
Mortgage loans on real estate | 5,529,803 | |
Policy loans | 1,699,508 | |
Fixed maturities, held-to-maturity | 515,000 | |
Liabilities: | ||
Stable value product account balances | 2,124,712 | |
Annuity account balances | 10,274,571 | |
Debt: | ||
Bank borrowings | 485,000 | |
Non-recourse funding obligations | 614,380 | |
Successor | Fair Values | Level 2 | ||
Debt: | ||
Senior Notes | 1,020,025 | |
Subordinated debt securities | $ 457,275 | |
Predecessor | ||
Assets: | ||
Mortgage loans on real estate | $ 5,133,780 | |
Policy loans | 1,758,237 | |
Fixed maturities, held-to-maturity | 435,000 | |
Liabilities: | ||
Stable value product account balances | 1,959,488 | |
Annuity account balances | 10,950,729 | |
Debt: | ||
Subordinated debt securities | 540,593 | |
Non-recourse funding obligations | 582,404 | |
Predecessor | Carrying Amounts | ||
Assets: | ||
Mortgage loans on real estate | 5,133,780 | |
Policy loans | 1,758,237 | |
Fixed maturities, held-to-maturity | 435,000 | |
Liabilities: | ||
Stable value product account balances | 1,959,488 | |
Annuity account balances | 10,950,729 | |
Debt: | ||
Bank borrowings | 450,000 | |
Senior Notes | 850,000 | |
Subordinated debt securities | 540,593 | |
Non-recourse funding obligations | 582,404 | |
Predecessor | Carrying Amounts | Golden Gate V | ||
Debt: | ||
Non-recourse funding obligations | 435,000 | |
Predecessor | Fair Values | Golden Gate V | ||
Debt: | ||
Non-recourse funding obligations | 461,400 | |
Predecessor | Fair Values | Level 3 | ||
Assets: | ||
Mortgage loans on real estate | 5,524,059 | |
Policy loans | 1,758,237 | |
Fixed maturities, held-to-maturity | 485,422 | |
Liabilities: | ||
Stable value product account balances | 1,973,624 | |
Annuity account balances | 10,491,775 | |
Debt: | ||
Bank borrowings | 450,000 | |
Non-recourse funding obligations | 578,212 | |
Predecessor | Fair Values | Level 2 | ||
Debt: | ||
Senior Notes | 1,100,380 | |
Subordinated debt securities | $ 552,098 |
DERIVATIVE FINANCIAL INSTRUM138
DERIVATIVE FINANCIAL INSTRUMENTS (Details) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2015USD ($) | Dec. 31, 2015USD ($)position | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Successor | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | $ 29,997 | |||
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other long-term investments | 8,464,570 | |||
Fair Value, Other long-term investments | 352,016 | |||
Notional Amount, Other liabilities | 12,935,706 | |||
Gross Amounts of Recognized Liabilities | 629,555 | |||
Successor | Embedded derivative - GMWB | ||||
Notional amount and fair value of derivative financial instruments | ||||
Fair Value, Other long-term investments | 95,614 | |||
Gross Amounts of Recognized Liabilities | 277,236 | |||
Successor | Embedded derivative—FIA | ||||
Notional amount and fair value of derivative financial instruments | ||||
Gross Amounts of Recognized Liabilities | 100,329 | |||
Successor | Embedded derivative—IUL | ||||
Notional amount and fair value of derivative financial instruments | ||||
Gross Amounts of Recognized Liabilities | 29,629 | |||
Successor | Embedded derivative - Modco reinsurance treaties | ||||
Notional amount and fair value of derivative financial instruments | ||||
Fair Value, Other long-term investments | 1,215 | |||
Gross Amounts of Recognized Liabilities | $ 178,362 | |||
Successor | Cash flow hedges | Interest rate swaps | ||||
Notional amount and fair value of the entity's derivative financial instruments | ||||
Positions held | position | 0 | |||
Successor | Cash flow hedges | Inflation | ||||
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other liabilities | $ 0 | |||
Gross Amounts of Recognized Liabilities | 0 | |||
Successor | Derivatives not designated as hedging instruments | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | 29,997 | |||
Successor | Derivatives not designated as hedging instruments | Annuity account | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | (135,299) | |||
Successor | Derivatives not designated as hedging instruments | FIA | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | 123 | |||
Successor | Derivatives not designated as hedging instruments | IUL | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | (1,010) | |||
Successor | Derivatives not designated as hedging instruments | Interest rate futures | ||||
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other long-term investments | 282,373 | |||
Fair Value, Other long-term investments | 1,537 | |||
Successor | Derivatives not designated as hedging instruments | Interest rate futures | Annuity account | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | (14,818) | |||
Successor | Derivatives not designated as hedging instruments | Equity futures | ||||
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other long-term investments | 262,485 | |||
Fair Value, Other long-term investments | 1,275 | |||
Notional Amount, Other liabilities | 233,412 | |||
Gross Amounts of Recognized Liabilities | 2,599 | |||
Successor | Derivatives not designated as hedging instruments | Equity futures | Annuity account | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | (5,033) | |||
Successor | Derivatives not designated as hedging instruments | Equity futures | FIA | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | (355) | |||
Successor | Derivatives not designated as hedging instruments | Equity futures | IUL | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | 144 | |||
Successor | Derivatives not designated as hedging instruments | Currency futures | ||||
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other long-term investments | 226,936 | |||
Fair Value, Other long-term investments | 2,499 | |||
Notional Amount, Other liabilities | 46,692 | |||
Gross Amounts of Recognized Liabilities | 1,115 | |||
Successor | Derivatives not designated as hedging instruments | Currency futures | Annuity account | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | 7,169 | |||
Successor | Derivatives not designated as hedging instruments | Volatility futures | FIA | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | 5 | |||
Successor | Derivatives not designated as hedging instruments | Variance swaps | ||||
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other liabilities | 0 | |||
Gross Amounts of Recognized Liabilities | 0 | |||
Successor | Derivatives not designated as hedging instruments | Variance swaps | Annuity account | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | 0 | |||
Successor | Derivatives not designated as hedging instruments | Equity options | ||||
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other long-term investments | 2,198,340 | |||
Fair Value, Other long-term investments | 179,458 | |||
Notional Amount, Other liabilities | 1,205,204 | |||
Gross Amounts of Recognized Liabilities | 22,167 | |||
Successor | Derivatives not designated as hedging instruments | Equity options | Annuity account | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | (27,733) | |||
Successor | Derivatives not designated as hedging instruments | Equity options | FIA | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | 1,211 | |||
Successor | Derivatives not designated as hedging instruments | Equity options | IUL | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | (540) | |||
Successor | Derivatives not designated as hedging instruments | Volatility options | Annuity account | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | 0 | |||
Successor | Derivatives not designated as hedging instruments | Interest rate swaptions | ||||
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other long-term investments | 225,000 | |||
Fair Value, Other long-term investments | 3,663 | |||
Successor | Derivatives not designated as hedging instruments | Interest rate swaptions | Annuity account | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | $ (13,354) | |||
Successor | Derivatives not designated as hedging instruments | Interest rate swaps | ||||
Notional amount and fair value of the entity's derivative financial instruments | ||||
Positions held | position | 0 | |||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | $ 0 | |||
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other long-term investments | 1,435,000 | |||
Fair Value, Other long-term investments | 66,408 | |||
Notional Amount, Other liabilities | 475,000 | |||
Gross Amounts of Recognized Liabilities | 16,579 | |||
Successor | Derivatives not designated as hedging instruments | Interest rate swaps | Annuity account | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | (85,942) | |||
Successor | Derivatives not designated as hedging instruments | Embedded derivative - GMWB | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | 4,412 | |||
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other long-term investments | 3,769,601 | |||
Fair Value, Other long-term investments | 95,614 | |||
Notional Amount, Other liabilities | 6,539,658 | |||
Gross Amounts of Recognized Liabilities | 277,236 | |||
Successor | Derivatives not designated as hedging instruments | Embedded derivative—FIA | ||||
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other liabilities | 1,110,790 | |||
Gross Amounts of Recognized Liabilities | 100,329 | |||
Successor | Derivatives not designated as hedging instruments | Embedded derivative—FIA | FIA | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | (738) | |||
Successor | Derivatives not designated as hedging instruments | Embedded derivative—IUL | ||||
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other liabilities | 57,760 | |||
Gross Amounts of Recognized Liabilities | 29,629 | |||
Successor | Derivatives not designated as hedging instruments | Embedded derivative—IUL | IUL | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | (614) | |||
Successor | Derivatives not designated as hedging instruments | Embedded derivative - Modco reinsurance treaties | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | 166,092 | |||
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other long-term investments | 64,593 | |||
Fair Value, Other long-term investments | 1,215 | |||
Notional Amount, Other liabilities | 2,473,427 | |||
Gross Amounts of Recognized Liabilities | 178,362 | |||
Successor | Derivatives not designated as hedging instruments | Other derivatives | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | 91 | |||
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other long-term investments | 242 | |||
Fair Value, Other long-term investments | 347 | |||
Successor | Derivatives not designated as hedging instruments | Interest rate futures | ||||
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other liabilities | 793,763 | |||
Gross Amounts of Recognized Liabilities | $ 1,539 | |||
Predecessor | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | $ (123,274) | $ (346,878) | $ 188,131 | |
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other long-term investments | 7,178,906 | |||
Fair Value, Other long-term investments | 293,970 | |||
Notional Amount, Other liabilities | 11,763,048 | |||
Gross Amounts of Recognized Liabilities | 820,739 | |||
Predecessor | Embedded derivative - GMWB | ||||
Notional amount and fair value of derivative financial instruments | ||||
Fair Value, Other long-term investments | 66,843 | |||
Gross Amounts of Recognized Liabilities | 311,969 | |||
Predecessor | Embedded derivative—FIA | ||||
Notional amount and fair value of derivative financial instruments | ||||
Gross Amounts of Recognized Liabilities | 124,465 | |||
Predecessor | Embedded derivative—IUL | ||||
Notional amount and fair value of derivative financial instruments | ||||
Gross Amounts of Recognized Liabilities | 6,691 | |||
Predecessor | Embedded derivative - Modco reinsurance treaties | ||||
Notional amount and fair value of derivative financial instruments | ||||
Fair Value, Other long-term investments | 1,051 | |||
Gross Amounts of Recognized Liabilities | 311,727 | |||
Predecessor | Cash flow hedges | Inflation | ||||
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other liabilities | 40,469 | |||
Gross Amounts of Recognized Liabilities | 142 | |||
Predecessor | Derivatives not designated as hedging instruments | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | (123,274) | (346,878) | 188,131 | |
Predecessor | Derivatives not designated as hedging instruments | Annuity account | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | (53,581) | (235,300) | (21,108) | |
Predecessor | Derivatives not designated as hedging instruments | FIA | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | (1,032) | (6,136) | 1,092 | |
Predecessor | Derivatives not designated as hedging instruments | IUL | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | (598) | 157 | 0 | |
Predecessor | Derivatives not designated as hedging instruments | Interest rate futures | ||||
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other long-term investments | 27,977 | |||
Fair Value, Other long-term investments | 938 | |||
Predecessor | Derivatives not designated as hedging instruments | Interest rate futures | Annuity account | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | 1,413 | 27,801 | (31,216) | |
Predecessor | Derivatives not designated as hedging instruments | Equity futures | ||||
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other long-term investments | 26,483 | |||
Fair Value, Other long-term investments | 427 | |||
Notional Amount, Other liabilities | 385,256 | |||
Gross Amounts of Recognized Liabilities | 15,069 | |||
Predecessor | Derivatives not designated as hedging instruments | Equity futures | Annuity account | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | 9,221 | (26,104) | (52,640) | |
Predecessor | Derivatives not designated as hedging instruments | Equity futures | FIA | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | (184) | 870 | 173 | |
Predecessor | Derivatives not designated as hedging instruments | Equity futures | IUL | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | 3 | 15 | 0 | |
Predecessor | Derivatives not designated as hedging instruments | Currency futures | ||||
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other long-term investments | 197,648 | |||
Fair Value, Other long-term investments | 2,384 | |||
Notional Amount, Other liabilities | 0 | |||
Gross Amounts of Recognized Liabilities | 0 | |||
Predecessor | Derivatives not designated as hedging instruments | Currency futures | Annuity account | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | 7,778 | 14,433 | (469) | |
Predecessor | Derivatives not designated as hedging instruments | Volatility futures | FIA | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | 0 | 20 | (5) | |
Predecessor | Derivatives not designated as hedging instruments | Variance swaps | ||||
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other liabilities | 0 | |||
Gross Amounts of Recognized Liabilities | 0 | |||
Predecessor | Derivatives not designated as hedging instruments | Variance swaps | Annuity account | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | 0 | (744) | (11,310) | |
Predecessor | Derivatives not designated as hedging instruments | Equity options | ||||
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other long-term investments | 1,921,167 | |||
Fair Value, Other long-term investments | 163,212 | |||
Notional Amount, Other liabilities | 699,295 | |||
Gross Amounts of Recognized Liabilities | 47,077 | |||
Predecessor | Derivatives not designated as hedging instruments | Equity options | Annuity account | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | 3,047 | (41,216) | (95,022) | |
Predecessor | Derivatives not designated as hedging instruments | Equity options | FIA | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | (2,617) | 9,906 | 1,866 | |
Predecessor | Derivatives not designated as hedging instruments | Equity options | IUL | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | (115) | 150 | 0 | |
Predecessor | Derivatives not designated as hedging instruments | Volatility options | Annuity account | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | 0 | 0 | (115) | |
Predecessor | Derivatives not designated as hedging instruments | Interest rate swaptions | ||||
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other long-term investments | 625,000 | |||
Fair Value, Other long-term investments | 8,012 | |||
Predecessor | Derivatives not designated as hedging instruments | Interest rate swaptions | Annuity account | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | 9,268 | (22,280) | 1,575 | |
Predecessor | Derivatives not designated as hedging instruments | Interest rate swaps | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | 0 | 0 | 2,985 | |
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other long-term investments | 1,550,000 | |||
Fair Value, Other long-term investments | 50,743 | |||
Notional Amount, Other liabilities | 275,000 | |||
Gross Amounts of Recognized Liabilities | 3,599 | |||
Predecessor | Derivatives not designated as hedging instruments | Interest rate swaps | Annuity account | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | 122,710 | 214,164 | (157,408) | |
Predecessor | Derivatives not designated as hedging instruments | Embedded derivative - GMWB | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | (207,018) | (401,354) | 325,497 | |
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other long-term investments | 2,804,629 | |||
Fair Value, Other long-term investments | 66,843 | |||
Notional Amount, Other liabilities | 7,038,228 | |||
Gross Amounts of Recognized Liabilities | 311,969 | |||
Predecessor | Derivatives not designated as hedging instruments | Embedded derivative—FIA | ||||
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other liabilities | 749,933 | |||
Gross Amounts of Recognized Liabilities | 124,465 | |||
Predecessor | Derivatives not designated as hedging instruments | Embedded derivative—FIA | FIA | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | 1,769 | (16,932) | (942) | |
Predecessor | Derivatives not designated as hedging instruments | Embedded derivative—IUL | ||||
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other liabilities | 12,019 | |||
Gross Amounts of Recognized Liabilities | 6,691 | |||
Predecessor | Derivatives not designated as hedging instruments | Embedded derivative—IUL | IUL | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | (486) | (8) | 0 | |
Predecessor | Derivatives not designated as hedging instruments | Embedded derivative - Modco reinsurance treaties | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | (68,026) | (105,276) | 205,176 | |
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other long-term investments | 25,760 | |||
Fair Value, Other long-term investments | 1,051 | |||
Notional Amount, Other liabilities | 2,562,848 | |||
Gross Amounts of Recognized Liabilities | 311,727 | |||
Predecessor | Derivatives not designated as hedging instruments | Other derivatives | ||||
Realized investment gains (losses) - derivative instruments | ||||
Realized investment gains (losses) - derivatives, gross | $ (37) | (323) | $ (14) | |
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other long-term investments | 242 | |||
Fair Value, Other long-term investments | 360 | |||
Predecessor | Derivatives not designated as hedging instruments | Interest rate futures | ||||
Notional amount and fair value of derivative financial instruments | ||||
Notional Amount, Other liabilities | 0 | |||
Gross Amounts of Recognized Liabilities | $ 0 |
DERIVATIVE FINANCIAL INSTRUM139
DERIVATIVE FINANCIAL INSTRUMENTS (Details 2) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Successor | ||||
Realized investment gains (losses) - all other investments | ||||
Realized investment gains (losses) | $ (167,359) | |||
Predecessor | ||||
Realized investment gains (losses) - all other investments | ||||
Realized investment gains (losses) | $ 73,062 | $ 142,016 | $ (178,134) | |
Modco Trading Portfolio | Successor | ||||
Realized investment gains (losses) - all other investments | ||||
Realized investment gains (losses) | $ (167,359) | |||
Modco Trading Portfolio | Predecessor | ||||
Realized investment gains (losses) - all other investments | ||||
Realized investment gains (losses) | $ 73,062 | $ 142,016 | $ (178,134) |
DERIVATIVE FINANCIAL INSTRUM140
DERIVATIVE FINANCIAL INSTRUMENTS (Details 3) - Cash flow hedges - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Successor | ||||
Gain (Loss) on Derivatives in Cash Flow Hedging Relationship | ||||
Amount of Gains (Losses) Deferred in Accumulated Other Comprehensive Income (Loss) on Derivatives, Effective Portion | $ (131) | |||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss), Effective Portion | (131) | |||
Amount and Location of (Losses) Recognized in Income (Loss) on Derivatives, Effective Portion | 73 | |||
Successor | Inflation | ||||
Gain (Loss) on Derivatives in Cash Flow Hedging Relationship | ||||
Amount of Gains (Losses) Deferred in Accumulated Other Comprehensive Income (Loss) on Derivatives, Effective Portion | (131) | |||
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss), Effective Portion | (131) | |||
Amount and Location of (Losses) Recognized in Income (Loss) on Derivatives, Effective Portion | $ 73 | |||
Predecessor | ||||
Gain (Loss) on Derivatives in Cash Flow Hedging Relationship | ||||
Amount of Gains (Losses) Deferred in Accumulated Other Comprehensive Income (Loss) on Derivatives, Effective Portion | $ 13 | $ (4) | $ 1,130 | |
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss), Effective Portion | (36) | (1,777) | (2,349) | |
Amount and Location of (Losses) Recognized in Income (Loss) on Derivatives, Effective Portion | (7) | (223) | (190) | |
Predecessor | Inflation | ||||
Gain (Loss) on Derivatives in Cash Flow Hedging Relationship | ||||
Amount of Gains (Losses) Deferred in Accumulated Other Comprehensive Income (Loss) on Derivatives, Effective Portion | 13 | (4) | 1,130 | |
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss), Effective Portion | (36) | (1,777) | (2,349) | |
Amount and Location of (Losses) Recognized in Income (Loss) on Derivatives, Effective Portion | $ (7) | $ (223) | $ (190) |
OFFSETTING OF ASSETS AND LIA141
OFFSETTING OF ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Predecessor | ||
Offsetting of Derivative Assets | ||
Gross Amounts of Recognized Assets | $ 293,970 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Assets Presented in the Statement of Financial Position | 293,970 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 53,612 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received | 73,935 | |
Net Amount | 166,423 | |
Predecessor | Derivatives not subject to a master netting arrangement or similar arrangement | ||
Offsetting of Derivative Assets | ||
Gross Amounts of Recognized Assets | 225,716 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Assets Presented in the Statement of Financial Position | 225,716 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 53,612 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received | 73,935 | |
Net Amount | 98,169 | |
Predecessor | Free-Standing derivatives | ||
Offsetting of Derivative Assets | ||
Gross Amounts of Recognized Assets | 225,716 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Assets Presented in the Statement of Financial Position | 225,716 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 53,612 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received | 73,935 | |
Net Amount | 98,169 | |
Predecessor | Total derivatives, not subject to a master netting arrangement or similar arrangement | ||
Offsetting of Derivative Assets | ||
Gross Amounts of Recognized Assets | 68,254 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Assets Presented in the Statement of Financial Position | 68,254 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received | 0 | |
Net Amount | 68,254 | |
Predecessor | Embedded derivative - Modco reinsurance treaties | ||
Offsetting of Derivative Assets | ||
Gross Amounts of Recognized Assets | 1,051 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Assets Presented in the Statement of Financial Position | 1,051 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received | 0 | |
Net Amount | 1,051 | |
Predecessor | Embedded derivative - GMWB | ||
Offsetting of Derivative Assets | ||
Gross Amounts of Recognized Assets | 66,843 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Assets Presented in the Statement of Financial Position | 66,843 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received | 0 | |
Net Amount | 66,843 | |
Predecessor | Other | ||
Offsetting of Derivative Assets | ||
Gross Amounts of Recognized Assets | 360 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Assets Presented in the Statement of Financial Position | 360 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received | 0 | |
Net Amount | $ 360 | |
Successor | ||
Offsetting of Derivative Assets | ||
Gross Amounts of Recognized Assets | $ 352,016 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Assets Presented in the Statement of Financial Position | 352,016 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 42,382 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received | 105,842 | |
Net Amount | 203,792 | |
Successor | Derivatives not subject to a master netting arrangement or similar arrangement | ||
Offsetting of Derivative Assets | ||
Gross Amounts of Recognized Assets | 254,840 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Assets Presented in the Statement of Financial Position | 254,840 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 42,382 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received | 105,842 | |
Net Amount | 106,616 | |
Successor | Free-Standing derivatives | ||
Offsetting of Derivative Assets | ||
Gross Amounts of Recognized Assets | 254,840 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Assets Presented in the Statement of Financial Position | 254,840 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 42,382 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received | 105,842 | |
Net Amount | 106,616 | |
Successor | Total derivatives, not subject to a master netting arrangement or similar arrangement | ||
Offsetting of Derivative Assets | ||
Gross Amounts of Recognized Assets | 97,176 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Assets Presented in the Statement of Financial Position | 97,176 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received | 0 | |
Net Amount | 97,176 | |
Successor | Embedded derivative - Modco reinsurance treaties | ||
Offsetting of Derivative Assets | ||
Gross Amounts of Recognized Assets | 1,215 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Assets Presented in the Statement of Financial Position | 1,215 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received | 0 | |
Net Amount | 1,215 | |
Successor | Embedded derivative - GMWB | ||
Offsetting of Derivative Assets | ||
Gross Amounts of Recognized Assets | 95,614 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Assets Presented in the Statement of Financial Position | 95,614 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received | 0 | |
Net Amount | 95,614 | |
Successor | Other | ||
Offsetting of Derivative Assets | ||
Gross Amounts of Recognized Assets | 347 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Assets Presented in the Statement of Financial Position | 347 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Received | 0 | |
Net Amount | $ 347 |
OFFSETTING OF ASSETS AND LIA142
OFFSETTING OF ASSETS AND LIABILITIES (Details 2) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Predecessor | ||
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Liabilities | $ 820,739 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 820,739 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 53,612 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Paid | 12,258 | |
Net Amount | 754,869 | |
Repurchase agreements | ||
Gross Amounts of Recognized Liabilities | 50,000 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 50,000 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Paid | 0 | |
Net Amount | 50,000 | |
Total Liabilities | ||
Gross Amounts of Recognized Liabilities | 870,739 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 870,739 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 53,612 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Paid | 12,258 | |
Net Amount | 804,869 | |
Predecessor | Derivatives not subject to a master netting arrangement or similar arrangement | ||
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Liabilities | 65,887 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 65,887 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 53,612 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Paid | 12,258 | |
Net Amount | 17 | |
Predecessor | Free-Standing derivatives | ||
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Liabilities | 65,887 | |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 65,887 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 53,612 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Paid | 12,258 | |
Net Amount | 17 | |
Predecessor | Total derivatives, not subject to a master netting arrangement or similar arrangement | ||
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Liabilities | 754,852 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 754,852 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Paid | 0 | |
Net Amount | 754,852 | |
Predecessor | Embedded derivative - Modco reinsurance treaties | ||
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Liabilities | 311,727 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 311,727 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Paid | 0 | |
Net Amount | 311,727 | |
Predecessor | Embedded derivative - GMWB | ||
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Liabilities | 311,969 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 311,969 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Paid | 0 | |
Net Amount | 311,969 | |
Predecessor | Embedded derivative—FIA | ||
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Liabilities | 124,465 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 124,465 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Paid | 0 | |
Net Amount | 124,465 | |
Predecessor | Embedded derivative—IUL | ||
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Liabilities | 6,691 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 6,691 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Paid | 0 | |
Net Amount | 6,691 | |
Successor | ||
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Liabilities | $ 629,555 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 629,555 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 42,382 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Paid | 1,617 | |
Net Amount | 585,556 | |
Repurchase agreements | ||
Gross Amounts of Recognized Liabilities | 438,185 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 438,185 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Paid | 0 | |
Net Amount | 438,185 | |
Total Liabilities | ||
Gross Amounts of Recognized Liabilities | 1,067,740 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 1,067,740 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 42,382 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Paid | 1,617 | |
Net Amount | 1,023,741 | |
Successor | Derivatives not subject to a master netting arrangement or similar arrangement | ||
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Liabilities | 43,999 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 43,999 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 42,382 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Paid | 1,617 | |
Net Amount | 0 | |
Successor | Free-Standing derivatives | ||
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Liabilities | 43,999 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | $ 0 |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 43,999 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 42,382 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Paid | 1,617 | |
Net Amount | 0 | |
Successor | Total derivatives, not subject to a master netting arrangement or similar arrangement | ||
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Liabilities | 585,556 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 585,556 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Paid | 0 | |
Net Amount | 585,556 | |
Successor | Embedded derivative - Modco reinsurance treaties | ||
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Liabilities | 178,362 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 178,362 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Paid | 0 | |
Net Amount | 178,362 | |
Successor | Embedded derivative - GMWB | ||
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Liabilities | 277,236 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 277,236 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Paid | 0 | |
Net Amount | 277,236 | |
Successor | Embedded derivative—FIA | ||
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Liabilities | 100,329 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 100,329 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Paid | 0 | |
Net Amount | 100,329 | |
Successor | Embedded derivative—IUL | ||
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Liabilities | 29,629 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts of Liabilities Presented in the Statement of Financial Position | 29,629 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | |
Gross Amounts Not Offset in the Statement of Financial Position, Cash Collateral Paid | 0 | |
Net Amount | $ 29,629 |
OPERATING SEGMENTS (Details)
OPERATING SEGMENTS (Details) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | ||||||||
Jan. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 01, 2015 | |
Operating Segment Assets | |||||||||||||
Goodwill | $ 732,400 | $ 732,400 | $ 735,700 | ||||||||||
Successor | |||||||||||||
Summarized financial information for the company's segments | |||||||||||||
Revenues | $ 722,327 | 1,008,988 | $ 960,593 | $ 1,018,761 | 3,710,669 | ||||||||
Segment Operating Income (Loss) | 484,440 | ||||||||||||
Realized investment gains (losses)—investments | (185,153) | ||||||||||||
Realized investment gains (losses) - derivatives | 100,555 | ||||||||||||
Income tax expense | (29,966) | (41,654) | (26,853) | (33,070) | (131,543) | ||||||||
Net income | 62,861 | 81,191 | 60,407 | 63,840 | 268,299 | ||||||||
Realized gain (losses) on investments | |||||||||||||
Investment (losses) gains | (193,879) | ||||||||||||
Less: amortization related to DAC/VOBA and benefits and settlement expenses | (8,726) | ||||||||||||
Realized investment gains (losses)—investments | (185,153) | ||||||||||||
Realized gain (losses) on derivatives | |||||||||||||
Derivatives gains (losses) | 29,997 | ||||||||||||
Less: VA GMWB economic cost | (70,558) | ||||||||||||
Realized investment gains (losses) - derivatives | 100,555 | ||||||||||||
Net investment income | $ 288,872 | 467,165 | $ 440,620 | $ 436,291 | 1,632,948 | ||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 94,056 | ||||||||||||
Other-than-temporary impairments | 26,993 | ||||||||||||
Operating Segment Assets | |||||||||||||
Investments and other assets | 65,552,315 | 65,552,315 | |||||||||||
Deferred policy acquisition costs and value of business acquired | 1,558,808 | 1,558,808 | |||||||||||
Other intangibles | 645,131 | 645,131 | |||||||||||
Goodwill | 732,443 | 732,443 | $ 735,700 | ||||||||||
Total assets | 68,488,697 | 68,488,697 | |||||||||||
Successor | Life Marketing | |||||||||||||
Realized gain (losses) on derivatives | |||||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 107,811 | ||||||||||||
Operating Segment Assets | |||||||||||||
Deferred policy acquisition costs and value of business acquired | 1,119,515 | 1,119,515 | |||||||||||
Successor | Acquisitions | |||||||||||||
Realized gain (losses) on derivatives | |||||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 2,035 | ||||||||||||
Operating Segment Assets | |||||||||||||
Deferred policy acquisition costs and value of business acquired | (178,662) | (178,662) | |||||||||||
Successor | Annuities | |||||||||||||
Realized gain (losses) on derivatives | |||||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | (41,071) | ||||||||||||
Operating Segment Assets | |||||||||||||
Deferred policy acquisition costs and value of business acquired | 578,742 | 578,742 | |||||||||||
Successor | Stable Value Products | |||||||||||||
Realized gain (losses) on derivatives | |||||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 43 | ||||||||||||
Operating Segment Assets | |||||||||||||
Deferred policy acquisition costs and value of business acquired | 2,357 | 2,357 | |||||||||||
Successor | Asset Protection | |||||||||||||
Realized gain (losses) on derivatives | |||||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 25,211 | ||||||||||||
Operating Segment Assets | |||||||||||||
Deferred policy acquisition costs and value of business acquired | 36,856 | 36,856 | |||||||||||
Successor | Corporate and Other | |||||||||||||
Realized gain (losses) on derivatives | |||||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 27 | ||||||||||||
Successor | Operating | Life Marketing | |||||||||||||
Summarized financial information for the company's segments | |||||||||||||
Revenues | 1,426,090 | ||||||||||||
Segment Operating Income (Loss) | 57,414 | ||||||||||||
Realized gain (losses) on derivatives | |||||||||||||
Net investment income | 446,439 | ||||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 107,811 | ||||||||||||
Operating Segment Assets | |||||||||||||
Investments and other assets | 13,258,639 | 13,258,639 | |||||||||||
Deferred policy acquisition costs and value of business acquired | 1,119,515 | 1,119,515 | |||||||||||
Other intangibles | 319,623 | 319,623 | |||||||||||
Goodwill | 200,274 | 200,274 | |||||||||||
Total assets | 14,898,051 | 14,898,051 | |||||||||||
Successor | Operating | Acquisitions | |||||||||||||
Summarized financial information for the company's segments | |||||||||||||
Revenues | 1,333,430 | ||||||||||||
Segment Operating Income (Loss) | 194,654 | ||||||||||||
Realized gain (losses) on derivatives | |||||||||||||
Net investment income | 639,422 | ||||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 2,035 | ||||||||||||
Operating Segment Assets | |||||||||||||
Investments and other assets | 19,879,988 | 19,879,988 | |||||||||||
Deferred policy acquisition costs and value of business acquired | (178,662) | (178,662) | |||||||||||
Other intangibles | 39,658 | 39,658 | |||||||||||
Goodwill | 14,524 | 14,524 | |||||||||||
Total assets | 19,755,508 | 19,755,508 | |||||||||||
Successor | Operating | Annuities | |||||||||||||
Summarized financial information for the company's segments | |||||||||||||
Revenues | 443,419 | ||||||||||||
Segment Operating Income (Loss) | 180,231 | ||||||||||||
Realized gain (losses) on derivatives | |||||||||||||
Net investment income | 297,114 | ||||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | (41,071) | ||||||||||||
Operating Segment Assets | |||||||||||||
Investments and other assets | 19,926,108 | 19,926,108 | |||||||||||
Deferred policy acquisition costs and value of business acquired | 578,742 | 578,742 | |||||||||||
Other intangibles | 196,780 | 196,780 | |||||||||||
Goodwill | 336,677 | 336,677 | |||||||||||
Total assets | 21,038,307 | 21,038,307 | |||||||||||
Successor | Operating | Stable Value Products | |||||||||||||
Summarized financial information for the company's segments | |||||||||||||
Revenues | 79,670 | ||||||||||||
Segment Operating Income (Loss) | 56,581 | ||||||||||||
Realized gain (losses) on derivatives | |||||||||||||
Net investment income | 78,459 | ||||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 43 | ||||||||||||
Operating Segment Assets | |||||||||||||
Investments and other assets | 2,006,263 | 2,006,263 | |||||||||||
Deferred policy acquisition costs and value of business acquired | 2,357 | 2,357 | |||||||||||
Other intangibles | 9,389 | 9,389 | |||||||||||
Goodwill | 113,813 | 113,813 | |||||||||||
Total assets | 2,131,822 | 2,131,822 | |||||||||||
Successor | Operating | Asset Protection | |||||||||||||
Summarized financial information for the company's segments | |||||||||||||
Revenues | 261,693 | ||||||||||||
Segment Operating Income (Loss) | 20,627 | ||||||||||||
Realized gain (losses) on derivatives | |||||||||||||
Net investment income | 17,459 | ||||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 25,211 | ||||||||||||
Operating Segment Assets | |||||||||||||
Investments and other assets | 897,326 | 897,326 | |||||||||||
Deferred policy acquisition costs and value of business acquired | 36,856 | 36,856 | |||||||||||
Other intangibles | 79,681 | 79,681 | |||||||||||
Goodwill | 67,155 | 67,155 | |||||||||||
Total assets | 1,081,018 | 1,081,018 | |||||||||||
Successor | Operating | Corporate and Other | |||||||||||||
Summarized financial information for the company's segments | |||||||||||||
Revenues | 166,367 | ||||||||||||
Segment Operating Income (Loss) | (25,067) | ||||||||||||
Realized gain (losses) on derivatives | |||||||||||||
Net investment income | 154,055 | ||||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 27 | ||||||||||||
Operating Segment Assets | |||||||||||||
Investments and other assets | 9,583,991 | 9,583,991 | |||||||||||
Deferred policy acquisition costs and value of business acquired | 0 | 0 | |||||||||||
Other intangibles | 0 | 0 | |||||||||||
Goodwill | 0 | 0 | |||||||||||
Total assets | 9,583,991 | 9,583,991 | |||||||||||
Successor | Adjustments | |||||||||||||
Operating Segment Assets | |||||||||||||
Investments and other assets | 0 | 0 | |||||||||||
Deferred policy acquisition costs and value of business acquired | 0 | 0 | |||||||||||
Other intangibles | 0 | 0 | |||||||||||
Goodwill | 0 | 0 | |||||||||||
Total assets | $ 0 | $ 0 | |||||||||||
Predecessor | |||||||||||||
Summarized financial information for the company's segments | |||||||||||||
Revenues | $ 340,909 | $ 1,009,585 | $ 1,148,086 | $ 1,155,343 | $ 1,090,558 | $ 4,403,572 | $ 3,958,999 | ||||||
Segment Operating Income (Loss) | 28,485 | 652,194 | 515,225 | ||||||||||
Realized investment gains (losses)—investments | 89,815 | 207,307 | (172,720) | ||||||||||
Realized investment gains (losses) - derivatives | (117,118) | (276,212) | 247,868 | ||||||||||
Income tax expense | 327 | (36,641) | (65,974) | (54,233) | (41,566) | (198,414) | (196,909) | ||||||
Net income | 1,509 | 74,350 | 118,909 | 107,977 | 83,639 | 384,875 | 393,464 | ||||||
Realized gain (losses) on investments | |||||||||||||
Investment (losses) gains | 80,672 | 198,127 | (145,984) | ||||||||||
Less: amortization related to DAC/VOBA and benefits and settlement expenses | (9,143) | (9,180) | 26,736 | ||||||||||
Realized investment gains (losses)—investments | 89,815 | 207,307 | (172,720) | ||||||||||
Realized gain (losses) on derivatives | |||||||||||||
Derivatives gains (losses) | (123,274) | (346,878) | 188,131 | ||||||||||
Less: VA GMWB economic cost | (6,156) | (70,666) | (59,737) | ||||||||||
Realized investment gains (losses) - derivatives | (117,118) | (276,212) | 247,868 | ||||||||||
Net investment income | 175,180 | 550,571 | $ 558,174 | $ 550,816 | $ 538,163 | 2,197,724 | 1,918,081 | ||||||
Amortization of deferred policy acquisition costs and value of business acquired | 4,072 | 257,309 | 192,898 | ||||||||||
Other-than-temporary impairments | 481 | 7,275 | 22,447 | ||||||||||
Operating Segment Assets | |||||||||||||
Investments and other assets | 67,083,371 | 67,083,371 | |||||||||||
Deferred policy acquisition costs and value of business acquired | 3,294,570 | 3,294,570 | 3,570,215 | ||||||||||
Other intangibles | 0 | 0 | |||||||||||
Goodwill | 102,365 | 102,365 | 105,463 | ||||||||||
Total assets | 70,480,306 | 70,480,306 | |||||||||||
Predecessor | Life Marketing | |||||||||||||
Realized gain (losses) on derivatives | |||||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 4,813 | 175,807 | 25,774 | ||||||||||
Operating Segment Assets | |||||||||||||
Deferred policy acquisition costs and value of business acquired | 1,973,156 | 1,973,156 | 2,071,470 | ||||||||||
Goodwill | 10,192 | 10,192 | 10,192 | ||||||||||
Predecessor | Acquisitions | |||||||||||||
Realized gain (losses) on derivatives | |||||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 5,033 | 60,031 | 72,762 | ||||||||||
Operating Segment Assets | |||||||||||||
Deferred policy acquisition costs and value of business acquired | 600,482 | 600,482 | 799,255 | ||||||||||
Goodwill | 29,419 | 29,419 | 32,517 | ||||||||||
Predecessor | Annuities | |||||||||||||
Realized gain (losses) on derivatives | |||||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | (7,706) | (4,651) | 62,834 | ||||||||||
Operating Segment Assets | |||||||||||||
Deferred policy acquisition costs and value of business acquired | 684,574 | 684,574 | 647,485 | ||||||||||
Predecessor | Stable Value Products | |||||||||||||
Realized gain (losses) on derivatives | |||||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 25 | 380 | 398 | ||||||||||
Operating Segment Assets | |||||||||||||
Deferred policy acquisition costs and value of business acquired | 621 | 621 | 1,001 | ||||||||||
Predecessor | Asset Protection | |||||||||||||
Realized gain (losses) on derivatives | |||||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 1,820 | 25,257 | 30,505 | ||||||||||
Operating Segment Assets | |||||||||||||
Deferred policy acquisition costs and value of business acquired | 35,418 | 35,418 | 50,358 | ||||||||||
Goodwill | 62,671 | 62,671 | 62,671 | ||||||||||
Predecessor | Corporate and Other | |||||||||||||
Realized gain (losses) on derivatives | |||||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 87 | 485 | 625 | ||||||||||
Operating Segment Assets | |||||||||||||
Deferred policy acquisition costs and value of business acquired | 319 | 319 | 646 | ||||||||||
Goodwill | 83 | 83 | 83 | ||||||||||
Predecessor | Operating | Life Marketing | |||||||||||||
Summarized financial information for the company's segments | |||||||||||||
Revenues | 145,595 | 1,549,351 | 1,444,806 | ||||||||||
Segment Operating Income (Loss) | (1,618) | 121,448 | 110,298 | ||||||||||
Realized gain (losses) on derivatives | |||||||||||||
Net investment income | 47,460 | 554,004 | 521,665 | ||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 4,813 | 175,807 | 25,774 | ||||||||||
Operating Segment Assets | |||||||||||||
Investments and other assets | 13,858,491 | 13,858,491 | |||||||||||
Deferred policy acquisition costs and value of business acquired | 1,973,156 | 1,973,156 | |||||||||||
Goodwill | 10,192 | 10,192 | |||||||||||
Total assets | 15,841,839 | 15,841,839 | |||||||||||
Predecessor | Operating | Acquisitions | |||||||||||||
Summarized financial information for the company's segments | |||||||||||||
Revenues | 139,761 | 1,720,179 | 1,186,579 | ||||||||||
Segment Operating Income (Loss) | 20,134 | 254,021 | 154,003 | ||||||||||
Realized gain (losses) on derivatives | |||||||||||||
Net investment income | 71,088 | 874,653 | 617,298 | ||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 5,033 | 60,031 | 72,762 | ||||||||||
Operating Segment Assets | |||||||||||||
Investments and other assets | 19,858,284 | 19,858,284 | |||||||||||
Deferred policy acquisition costs and value of business acquired | 600,482 | 600,482 | |||||||||||
Goodwill | 29,419 | 29,419 | |||||||||||
Total assets | 20,488,185 | 20,488,185 | |||||||||||
Predecessor | Operating | Annuities | |||||||||||||
Summarized financial information for the company's segments | |||||||||||||
Revenues | 7,884 | 533,404 | 714,552 | ||||||||||
Segment Operating Income (Loss) | 13,164 | 227,611 | 184,130 | ||||||||||
Realized gain (losses) on derivatives | |||||||||||||
Net investment income | 37,189 | 465,845 | 468,322 | ||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | (7,706) | (4,651) | 62,834 | ||||||||||
Operating Segment Assets | |||||||||||||
Investments and other assets | 20,783,373 | 20,783,373 | |||||||||||
Deferred policy acquisition costs and value of business acquired | 684,574 | 684,574 | |||||||||||
Goodwill | 0 | 0 | |||||||||||
Total assets | 21,467,947 | 21,467,947 | |||||||||||
Predecessor | Operating | Stable Value Products | |||||||||||||
Summarized financial information for the company's segments | |||||||||||||
Revenues | 8,181 | 127,653 | 122,790 | ||||||||||
Segment Operating Income (Loss) | 4,529 | 73,354 | 80,561 | ||||||||||
Realized gain (losses) on derivatives | |||||||||||||
Net investment income | 6,888 | 107,170 | 123,798 | ||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 25 | 380 | 398 | ||||||||||
Operating Segment Assets | |||||||||||||
Investments and other assets | 1,958,867 | 1,958,867 | |||||||||||
Deferred policy acquisition costs and value of business acquired | 621 | 621 | |||||||||||
Goodwill | 0 | 0 | |||||||||||
Total assets | 1,959,488 | 1,959,488 | |||||||||||
Predecessor | Operating | Asset Protection | |||||||||||||
Summarized financial information for the company's segments | |||||||||||||
Revenues | 21,953 | 276,011 | 278,317 | ||||||||||
Segment Operating Income (Loss) | 2,420 | 32,480 | 26,795 | ||||||||||
Realized gain (losses) on derivatives | |||||||||||||
Net investment income | 1,878 | 22,703 | 23,179 | ||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 1,820 | 25,257 | 30,505 | ||||||||||
Operating Segment Assets | |||||||||||||
Investments and other assets | 927,202 | 927,202 | |||||||||||
Deferred policy acquisition costs and value of business acquired | 35,418 | 35,418 | |||||||||||
Goodwill | 62,671 | 62,671 | |||||||||||
Total assets | 1,025,291 | 1,025,291 | |||||||||||
Predecessor | Operating | Corporate and Other | |||||||||||||
Summarized financial information for the company's segments | |||||||||||||
Revenues | 17,535 | 196,974 | 211,955 | ||||||||||
Segment Operating Income (Loss) | (10,144) | (56,720) | (40,562) | ||||||||||
Realized gain (losses) on derivatives | |||||||||||||
Net investment income | 10,677 | 173,349 | 163,819 | ||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | $ 87 | 485 | $ 625 | ||||||||||
Operating Segment Assets | |||||||||||||
Investments and other assets | 9,697,154 | 9,697,154 | |||||||||||
Deferred policy acquisition costs and value of business acquired | 319 | 319 | |||||||||||
Goodwill | 83 | 83 | |||||||||||
Total assets | 9,697,556 | 9,697,556 | |||||||||||
Predecessor | Adjustments | |||||||||||||
Operating Segment Assets | |||||||||||||
Investments and other assets | 0 | 0 | |||||||||||
Deferred policy acquisition costs and value of business acquired | 0 | 0 | |||||||||||
Goodwill | 0 | 0 | |||||||||||
Total assets | $ 0 | $ 0 |
CONSOLIDATED QUARTERLY RESUL144
CONSOLIDATED QUARTERLY RESULTS - UNAUDITED (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | |||||||
Jan. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Successor | ||||||||||||
Entity Information [Line Items] | ||||||||||||
Premiums and policy fees | $ 509,008 | $ 869,213 | $ 797,741 | $ 832,088 | $ 3,008,050 | |||||||
Reinsurance ceded | (141,401) | (361,559) | (306,774) | (345,244) | (1,154,978) | |||||||
Net of reinsurance ceded | 367,607 | 507,654 | 490,967 | 486,844 | 1,853,072 | |||||||
Net investment income | 288,872 | 467,165 | 440,620 | 436,291 | 1,632,948 | |||||||
Realized investment gains (losses) | (1,415) | (69,693) | (79,306) | (13,468) | (163,882) | |||||||
Other income | 67,263 | 103,862 | 108,312 | 109,094 | 388,531 | |||||||
Total revenues | 722,327 | 1,008,988 | 960,593 | 1,018,761 | 3,710,669 | |||||||
Total benefits and expenses | 629,500 | 886,143 | 873,333 | 921,851 | 3,310,827 | |||||||
Income before income tax | 92,827 | 122,845 | 87,260 | 96,910 | 399,842 | |||||||
Income tax expense (benefit) | 29,966 | 41,654 | 26,853 | 33,070 | 131,543 | |||||||
Net income | $ 62,861 | $ 81,191 | $ 60,407 | $ 63,840 | $ 268,299 | |||||||
Predecessor | ||||||||||||
Entity Information [Line Items] | ||||||||||||
Premiums and policy fees | $ 261,866 | $ 871,032 | $ 759,038 | $ 851,802 | $ 815,896 | $ 3,297,768 | $ 2,981,651 | |||||
Reinsurance ceded | (89,956) | (425,780) | (277,136) | (342,968) | (327,713) | (1,373,597) | (1,377,195) | |||||
Net of reinsurance ceded | 171,910 | 445,252 | 481,902 | 508,834 | 488,183 | 1,924,171 | 1,604,456 | |||||
Net investment income | 175,180 | 550,571 | 558,174 | 550,816 | 538,163 | 2,197,724 | 1,918,081 | |||||
Realized investment gains (losses) | (42,602) | (105,307) | 2,621 | (11,238) | (34,827) | (148,751) | 42,147 | |||||
Other income | 36,421 | 119,069 | 105,389 | 106,931 | 99,039 | 430,428 | 394,315 | |||||
Total revenues | 340,909 | 1,009,585 | 1,148,086 | 1,155,343 | 1,090,558 | 4,403,572 | 3,958,999 | |||||
Total benefits and expenses | 339,727 | 898,594 | 963,203 | 993,133 | 965,353 | 3,820,283 | 3,368,626 | |||||
Income before income tax | 1,182 | 110,991 | 184,883 | 162,210 | 125,205 | 583,289 | 590,373 | |||||
Income tax expense (benefit) | (327) | 36,641 | 65,974 | 54,233 | 41,566 | 198,414 | 196,909 | |||||
Net income | $ 1,509 | $ 74,350 | $ 118,909 | $ 107,977 | $ 83,639 | $ 384,875 | $ 393,464 | |||||
Net income - basic (in dollars per share) | $ 0.02 | $ 0.92 | $ 1.48 | $ 1.35 | $ 1.05 | $ 4.81 | $ 4.96 | |||||
Average shares outstanding - basic (in shares) | 80,452,848 | 80,430,799 | 80,231,591 | 79,979,153 | 79,608,461 | 80,065,217 | 79,395,622 | |||||
Net income - diluted (in dollars per share) | $ 0.02 | $ 0.91 | $ 1.46 | $ 1.33 | $ 1.03 | $ 4.73 | $ 4.86 | |||||
Average shares outstanding - diluted (in shares) | 81,759,287 | 81,714,510 | 81,458,870 | 81,446,277 | 80,872,152 | 81,375,496 | 80,925,713 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent event | Jan. 15, 2016USD ($) |
Subsequent Event [Line Items] | |
Estimated average annual expense of credit enhancement | $ 3,100,000 |
Financing Agreement With Golden Gate And Syndicate ff Risk Takers | |
Subsequent Event [Line Items] | |
Term of financing agreement | 18 years |
Financing capacity under the agreement | $ 2,188,000,000 |
Golden Gate | |
Subsequent Event [Line Items] | |
Extraordinary dividend | 300,000,000 |
Golden Gate | Non-recourse Funding Obligations Series | |
Subsequent Event [Line Items] | |
Outstanding non-recourse funding obligations | 800,000,000 |
Surplus Notes | Golden Gate | Steel City Notes | |
Subsequent Event [Line Items] | |
Amount of debt issued | 2,188,000,000 |
Surplus Notes | Steel City | Golden Gate Surplus Notes | |
Subsequent Event [Line Items] | |
Amount of debt issued | $ 2,188,000,000 |
SCHEDULE II - CONDENSED FINA146
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | |||||||
Jan. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Successor | ||||||||||||
Revenues: | ||||||||||||
Net investment income | $ 288,872 | $ 467,165 | $ 440,620 | $ 436,291 | $ 1,632,948 | |||||||
Realized investment gains (losses) | (1,415) | (69,693) | (79,306) | (13,468) | (163,882) | |||||||
Other income | 67,263 | 103,862 | 108,312 | 109,094 | 388,531 | |||||||
Total revenues | 722,327 | 1,008,988 | 960,593 | 1,018,761 | 3,710,669 | |||||||
Expenses: | ||||||||||||
Interest—subordinated debt | 25,000 | |||||||||||
Interest—other | 48,700 | |||||||||||
Total benefits and expenses | 629,500 | 886,143 | 873,333 | 921,851 | 3,310,827 | |||||||
Income before income tax | 92,827 | 122,845 | 87,260 | 96,910 | 399,842 | |||||||
Income tax expense | ||||||||||||
Current | 1,471 | |||||||||||
Deferred | 130,072 | |||||||||||
Total income tax expense | 29,966 | 41,654 | 26,853 | 33,070 | 131,543 | |||||||
Net income | $ 62,861 | $ 81,191 | $ 60,407 | $ 63,840 | 268,299 | |||||||
Successor | PROTECTIVE LIFE CORPORATION | ||||||||||||
Revenues: | ||||||||||||
Dividends from subsidiaries | 32,365 | |||||||||||
Service fees from subsidiaries | 220,105 | |||||||||||
Net investment income | 49,925 | |||||||||||
Realized investment gains (losses) | 3,817 | |||||||||||
Other income | 44 | |||||||||||
Total revenues | 306,256 | |||||||||||
Expenses: | ||||||||||||
Operating and administrative | 121,433 | |||||||||||
Interest—subordinated debt | 17,191 | |||||||||||
Interest—other | 40,596 | |||||||||||
Total benefits and expenses | 179,220 | |||||||||||
Income before income tax | 127,036 | |||||||||||
Income tax expense | ||||||||||||
Current | (58,547) | |||||||||||
Deferred | 99,146 | |||||||||||
Total income tax expense | 40,599 | |||||||||||
Income before equity in undistributed income from subsidiaries | 86,437 | |||||||||||
Equity in undistributed income of subsidiaries | 181,862 | |||||||||||
Net income | $ 268,299 | |||||||||||
Predecessor | ||||||||||||
Revenues: | ||||||||||||
Net investment income | $ 175,180 | $ 550,571 | $ 558,174 | $ 550,816 | $ 538,163 | $ 2,197,724 | $ 1,918,081 | |||||
Realized investment gains (losses) | (42,602) | (105,307) | 2,621 | (11,238) | (34,827) | (148,751) | 42,147 | |||||
Other income | 36,421 | 119,069 | 105,389 | 106,931 | 99,039 | 430,428 | 394,315 | |||||
Total revenues | 340,909 | 1,009,585 | 1,148,086 | 1,155,343 | 1,090,558 | 4,403,572 | 3,958,999 | |||||
Expenses: | ||||||||||||
Interest—other | 18,000 | |||||||||||
Total benefits and expenses | 339,727 | 898,594 | 963,203 | 993,133 | 965,353 | 3,820,283 | 3,368,626 | |||||
Income before income tax | 1,182 | 110,991 | 184,883 | 162,210 | 125,205 | 583,289 | 590,373 | |||||
Income tax expense | ||||||||||||
Current | (31,118) | 197,943 | 21,855 | |||||||||
Deferred | 30,791 | 471 | 175,054 | |||||||||
Total income tax expense | (327) | 36,641 | 65,974 | 54,233 | 41,566 | 198,414 | 196,909 | |||||
Net income | 1,509 | $ 74,350 | $ 118,909 | $ 107,977 | $ 83,639 | 384,875 | 393,464 | |||||
Predecessor | PROTECTIVE LIFE CORPORATION | ||||||||||||
Revenues: | ||||||||||||
Dividends from subsidiaries | 16 | 301,314 | 86,420 | |||||||||
Service fees from subsidiaries | 19,530 | 213,093 | 178,420 | |||||||||
Net investment income | 4,809 | 64,776 | 65,389 | |||||||||
Realized investment gains (losses) | (15,863) | (2,786) | 15,040 | |||||||||
Other income | 0 | 6 | 194 | |||||||||
Total revenues | 8,492 | 576,403 | 345,463 | |||||||||
Expenses: | ||||||||||||
Operating and administrative | 8,549 | 116,517 | 99,400 | |||||||||
Interest—subordinated debt | 2,823 | 33,873 | 33,873 | |||||||||
Interest—other | 6,113 | 84,528 | 90,636 | |||||||||
Total benefits and expenses | 17,485 | 234,918 | 223,909 | |||||||||
Income before income tax | (8,993) | 341,485 | 121,554 | |||||||||
Income tax expense | ||||||||||||
Current | 6,376 | 10,605 | 35,250 | |||||||||
Deferred | (11,123) | 8,798 | (16,936) | |||||||||
Total income tax expense | (4,747) | 19,403 | 18,314 | |||||||||
Income before equity in undistributed income from subsidiaries | (4,246) | 322,082 | 103,240 | |||||||||
Equity in undistributed income of subsidiaries | 5,755 | 62,793 | 290,224 | |||||||||
Net income | $ 1,509 | $ 384,875 | $ 393,464 |
SCHEDULE II - CONDENSED FINA147
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details 2) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | |||||||
Jan. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Successor | ||||||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||||||
Net income | $ 62,861 | $ 81,191 | $ 60,407 | $ 63,840 | $ 268,299 | |||||||
Total other comprehensive income (loss) | (1,241,134) | |||||||||||
Total comprehensive income (loss) | (972,835) | |||||||||||
Successor | PROTECTIVE LIFE CORPORATION | ||||||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||||||
Net income | 268,299 | |||||||||||
Total other comprehensive income (loss) | (1,241,134) | |||||||||||
Total comprehensive income (loss) | $ (972,835) | |||||||||||
Predecessor | ||||||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||||||
Net income | $ 1,509 | $ 74,350 | $ 118,909 | $ 107,977 | $ 83,639 | $ 384,875 | $ 393,464 | |||||
Total other comprehensive income (loss) | 465,968 | 924,010 | (1,242,656) | |||||||||
Total comprehensive income (loss) | 467,477 | 1,308,885 | (849,192) | |||||||||
Predecessor | PROTECTIVE LIFE CORPORATION | ||||||||||||
Condensed Statement of Income Captions [Line Items] | ||||||||||||
Net income | 1,509 | 384,875 | 393,464 | |||||||||
Total other comprehensive income (loss) | 465,968 | 924,010 | (1,242,656) | |||||||||
Total comprehensive income (loss) | $ 467,477 | $ 1,308,885 | $ (849,192) |
SCHEDULE II - CONDENSED FINA148
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details 3) - USD ($) $ in Thousands | Dec. 31, 2015 | Feb. 01, 2015 | Jan. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets | ||||||
Goodwill | $ 732,400 | $ 735,700 | ||||
PROTECTIVE LIFE CORPORATION | ||||||
Assets | ||||||
Goodwill | 735,700 | |||||
Successor | ||||||
Assets | ||||||
Fixed maturities | 35,573,250 | |||||
Equity securities | 739,263 | |||||
Total investments | 45,170,550 | |||||
Cash | 396,072 | $ 462,710 | ||||
Property and equipment, net | 102,865 | |||||
Goodwill | 732,443 | $ 735,700 | ||||
Deferred income tax | 1,422,926 | |||||
Other assets | 153,222 | |||||
Total assets | 68,488,697 | |||||
Liabilities | ||||||
Debt | 1,588,806 | |||||
Subordinated debt securities | 448,763 | |||||
Total liabilities | $ 63,907,473 | |||||
Commitments and contingencies—Note 3 | ||||||
Shareowners' equity | ||||||
Preferred stock | ||||||
Common stock | $ 0 | |||||
Additional paid-in-capital | 5,554,059 | |||||
Treasury stock | 0 | |||||
Retained earnings, including undistributed income of subsidiaries: (2015 Successor - $181,862; 2014 Predecessor - $3,267,715) | 268,299 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||
Net unrealized gains on investments, all from subsidiaries, net of income tax: (2015 Successor - $(671,285); 2014 Predecessor - $796,960) | (1,246,672) | |||||
Net unrealized gains (losses) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings, net of income tax; (2015 Successor - $(212); 2014 Predecessor - $2,208) | (393) | |||||
Accumulated gain (loss)—derivatives, net of income tax: (2015 Successor - $0; 2014 Predecessor - $(45)) | 0 | |||||
Postretirement benefits liability adjustment, net of income tax: (2015 Successor - $3,194; 2014 Predecessor - $(35,545)) | 5,931 | |||||
Total shareowner's equity | 4,581,224 | 5,554,059 | ||||
Total liabilities and shareowner's equity | 68,488,697 | |||||
Successor | PROTECTIVE LIFE CORPORATION | ||||||
Assets | ||||||
Fixed maturities | 54,637 | |||||
Equity securities | 39,338 | |||||
Surplus notes from affiliate | 1,148,237 | |||||
Investments in subsidiaries (equity method) | 5,403,025 | |||||
Total investments | 6,645,237 | |||||
Cash | 68,615 | 20,776 | ||||
Receivables from subsidiaries | 24,781 | |||||
Property and equipment, net | 1,189 | |||||
Goodwill | 0 | |||||
Income tax receivable | 13,170 | |||||
Deferred income tax | 152,683 | |||||
Other assets | 21,395 | |||||
Total assets | 6,927,070 | |||||
Liabilities | ||||||
Accrued expenses and other liabilities | 308,277 | |||||
Accrued income taxes | 0 | |||||
Debt | 1,588,806 | |||||
Subordinated debt securities | 448,763 | |||||
Total liabilities | $ 2,345,846 | |||||
Commitments and contingencies—Note 3 | ||||||
Shareowners' equity | ||||||
Preferred stock | ||||||
Common stock | $ 0 | |||||
Additional paid-in-capital | 5,554,059 | |||||
Treasury stock | 0 | |||||
Retained earnings, including undistributed income of subsidiaries: (2015 Successor - $181,862; 2014 Predecessor - $3,267,715) | 268,299 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||
Net unrealized gains on investments, all from subsidiaries, net of income tax: (2015 Successor - $(671,285); 2014 Predecessor - $796,960) | (1,246,672) | |||||
Net unrealized gains (losses) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings, net of income tax; (2015 Successor - $(212); 2014 Predecessor - $2,208) | (393) | |||||
Accumulated gain (loss)—derivatives, net of income tax: (2015 Successor - $0; 2014 Predecessor - $(45)) | 0 | |||||
Postretirement benefits liability adjustment, net of income tax: (2015 Successor - $3,194; 2014 Predecessor - $(35,545)) | 5,931 | |||||
Total shareowner's equity | 4,581,224 | |||||
Total liabilities and shareowner's equity | $ 6,927,070 | |||||
Predecessor | ||||||
Assets | ||||||
Fixed maturities | $ 36,775,989 | |||||
Equity securities | 803,230 | |||||
Total investments | 45,677,438 | |||||
Cash | 462,710 | 379,411 | $ 466,542 | $ 368,801 | ||
Property and equipment, net | 52,853 | |||||
Goodwill | 102,365 | 105,463 | ||||
Deferred income tax | 351,732 | |||||
Other assets | 316,207 | |||||
Total assets | 70,480,306 | |||||
Liabilities | ||||||
Debt | 1,300,000 | |||||
Subordinated debt securities | 540,593 | |||||
Total liabilities | $ 65,515,422 | |||||
Commitments and contingencies—Note 3 | ||||||
Shareowners' equity | ||||||
Preferred stock | ||||||
Common stock | $ 44,388 | |||||
Additional paid-in-capital | 606,125 | |||||
Treasury stock | (185,705) | |||||
Retained earnings, including undistributed income of subsidiaries: (2015 Successor - $181,862; 2014 Predecessor - $3,267,715) | 3,082,000 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||
Net unrealized gains on investments, all from subsidiaries, net of income tax: (2015 Successor - $(671,285); 2014 Predecessor - $796,960) | 1,480,068 | |||||
Net unrealized gains (losses) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings, net of income tax; (2015 Successor - $(212); 2014 Predecessor - $2,208) | 4,101 | |||||
Accumulated gain (loss)—derivatives, net of income tax: (2015 Successor - $0; 2014 Predecessor - $(45)) | (82) | |||||
Postretirement benefits liability adjustment, net of income tax: (2015 Successor - $3,194; 2014 Predecessor - $(35,545)) | (66,011) | |||||
Total shareowner's equity | 5,433,911 | 4,964,884 | 3,714,794 | 4,614,433 | ||
Total liabilities and shareowner's equity | 70,480,306 | |||||
Predecessor | PROTECTIVE LIFE CORPORATION | ||||||
Assets | ||||||
Fixed maturities | 53,349 | |||||
Equity securities | 46,441 | |||||
Surplus notes from affiliate | 800,000 | |||||
Investments in subsidiaries (equity method) | 5,993,218 | |||||
Total investments | 6,893,008 | |||||
Cash | $ 20,776 | 62,465 | $ 56,845 | $ 63,796 | ||
Receivables from subsidiaries | 6,940 | |||||
Property and equipment, net | 1,017 | |||||
Goodwill | 10,275 | |||||
Income tax receivable | 0 | |||||
Deferred income tax | 13,949 | |||||
Other assets | 32,649 | |||||
Total assets | 7,020,303 | |||||
Liabilities | ||||||
Accrued expenses and other liabilities | 190,900 | |||||
Accrued income taxes | 23,926 | |||||
Debt | 1,300,000 | |||||
Subordinated debt securities | 540,593 | |||||
Total liabilities | $ 2,055,419 | |||||
Commitments and contingencies—Note 3 | ||||||
Shareowners' equity | ||||||
Preferred stock | ||||||
Common stock | $ 44,388 | |||||
Additional paid-in-capital | 606,125 | |||||
Treasury stock | (185,705) | |||||
Retained earnings, including undistributed income of subsidiaries: (2015 Successor - $181,862; 2014 Predecessor - $3,267,715) | 3,082,000 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||
Net unrealized gains on investments, all from subsidiaries, net of income tax: (2015 Successor - $(671,285); 2014 Predecessor - $796,960) | 1,480,068 | |||||
Net unrealized gains (losses) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings, net of income tax; (2015 Successor - $(212); 2014 Predecessor - $2,208) | 4,101 | |||||
Accumulated gain (loss)—derivatives, net of income tax: (2015 Successor - $0; 2014 Predecessor - $(45)) | (82) | |||||
Postretirement benefits liability adjustment, net of income tax: (2015 Successor - $3,194; 2014 Predecessor - $(35,545)) | (66,011) | |||||
Total shareowner's equity | 4,964,884 | |||||
Total liabilities and shareowner's equity | $ 7,020,303 |
SCHEDULE II - CONDENSED FINA149
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details 3) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Successor | ||
Condensed Financial Information of Registrant | ||
Net unrealized gains (losses) on investments, income tax | $ (671,285) | |
Net unrealized gains (losses) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings, income tax | (212) | |
Accumulated gain (loss) - derivatives, income tax | 0 | |
Postretirement benefits liability adjustment, income tax | 3,194 | |
Successor | PROTECTIVE LIFE CORPORATION | ||
Condensed Financial Information of Registrant | ||
Undistributed income of subsidiaries | 181,862 | |
Net unrealized gains (losses) on investments, income tax | (671,285) | |
Net unrealized gains (losses) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings, income tax | (212) | |
Accumulated gain (loss) - derivatives, income tax | 0 | |
Postretirement benefits liability adjustment, income tax | $ 3,194 | |
Predecessor | ||
Condensed Financial Information of Registrant | ||
Net unrealized gains (losses) on investments, income tax | $ 796,960 | |
Net unrealized gains (losses) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings, income tax | 2,208 | |
Accumulated gain (loss) - derivatives, income tax | (45) | |
Postretirement benefits liability adjustment, income tax | (35,545) | |
Predecessor | PROTECTIVE LIFE CORPORATION | ||
Condensed Financial Information of Registrant | ||
Undistributed income of subsidiaries | 3,267,715 | |
Net unrealized gains (losses) on investments, income tax | 796,960 | |
Net unrealized gains (losses) relating to other-than-temporary impaired investments for which a portion has been recognized in earnings, income tax | 2,208 | |
Accumulated gain (loss) - derivatives, income tax | (45) | |
Postretirement benefits liability adjustment, income tax | $ (35,545) |
SCHEDULE II - CONDENSED FINA150
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details 4) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | |||||||
Jan. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Successor | ||||||||||||
Cash flows from operating activities | ||||||||||||
Net income | $ 62,861 | $ 81,191 | $ 60,407 | $ 63,840 | $ 268,299 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Realized investment (gains) losses | 1,415 | 69,693 | $ 79,306 | $ 13,468 | 163,882 | |||||||
Deferred income tax | 130,072 | |||||||||||
Accrued income tax | 65,415 | |||||||||||
Other, net | (63,144) | |||||||||||
Net cash provided by operating activities | 355,628 | |||||||||||
Cash flows from investing activities | ||||||||||||
Maturities and principal reductions of investments, available-for-sale | 1,052,198 | |||||||||||
Sale of investments, available-for-sale | 1,336,350 | |||||||||||
Cost of investments acquired, available-for-sale | (3,546,474) | |||||||||||
Purchase of property and equipment | (8,862) | |||||||||||
Net cash (used in) provided by investing activities | (1,492,815) | |||||||||||
Cash flows from financing activities | ||||||||||||
Principal payments on line of credit arrangement and debt | (338,093) | |||||||||||
Dividends to shareowners | 0 | |||||||||||
Withholdings of share-based payment arrangements settled in cash | 0 | |||||||||||
Excess tax benefits from share-based payment arrangements | 0 | |||||||||||
Other financing activities, net | 0 | |||||||||||
Net cash provided by (used in) financing activities | 1,070,549 | |||||||||||
Change in cash | (66,638) | |||||||||||
Cash at beginning of period | 462,710 | 462,710 | ||||||||||
Cash at end of period | $ 462,710 | 396,072 | 396,072 | |||||||||
Successor | PROTECTIVE LIFE CORPORATION | ||||||||||||
Cash flows from operating activities | ||||||||||||
Net income | 268,299 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Realized investment (gains) losses | (3,817) | |||||||||||
Equity in undistributed net income of subsidiaries | (181,862) | |||||||||||
Depreciation expense | 363 | |||||||||||
Receivables from subsidiaries | (13,759) | |||||||||||
Income tax receivable | (13,170) | |||||||||||
Deferred income tax | 99,146 | |||||||||||
Accrued income tax | (23,246) | |||||||||||
Accrued expenses and other liabilities | (192,234) | |||||||||||
Other, net | 5,419 | |||||||||||
Net cash provided by operating activities | (54,861) | |||||||||||
Cash flows from investing activities | ||||||||||||
Maturities and principal reductions of investments, available-for-sale | 0 | |||||||||||
Cost of investments acquired, available-for-sale | 0 | |||||||||||
Return of and/or (additional) capital investments in subsidiaries | 110,793 | |||||||||||
Purchase of property and equipment | 0 | |||||||||||
Net cash (used in) provided by investing activities | 110,793 | |||||||||||
Cash flows from financing activities | ||||||||||||
Principal payments on line of credit arrangements and debt | 330,000 | |||||||||||
Principal payments on line of credit arrangement and debt | (338,093) | |||||||||||
Payments to affiliates | 0 | |||||||||||
Dividends to shareowners | 0 | |||||||||||
Withholdings of share-based payment arrangements settled in cash | 0 | |||||||||||
Excess tax benefits from share-based payment arrangements | 0 | |||||||||||
Other financing activities, net | 0 | |||||||||||
Net cash provided by (used in) financing activities | (8,093) | |||||||||||
Change in cash | 47,839 | |||||||||||
Cash at beginning of period | 20,776 | 20,776 | ||||||||||
Cash at end of period | 20,776 | $ 68,615 | 68,615 | |||||||||
Predecessor | ||||||||||||
Cash flows from operating activities | ||||||||||||
Net income | 1,509 | $ 74,350 | $ 118,909 | $ 107,977 | $ 83,639 | $ 384,875 | $ 393,464 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Realized investment (gains) losses | 42,602 | 105,307 | $ (2,621) | $ 11,238 | 34,827 | 148,751 | (42,147) | |||||
Deferred income tax | 30,791 | 471 | 175,054 | |||||||||
Accrued income tax | (32,803) | 11,140 | 70,635 | |||||||||
Other, net | (149,889) | (74,061) | (28,636) | |||||||||
Net cash provided by operating activities | 191,223 | 723,497 | 499,550 | |||||||||
Cash flows from investing activities | ||||||||||||
Maturities and principal reductions of investments, available-for-sale | 59,028 | 1,198,690 | 1,094,862 | |||||||||
Sale of investments, available-for-sale | 191,062 | 2,271,611 | 3,239,222 | |||||||||
Cost of investments acquired, available-for-sale | (149,887) | (3,603,567) | (5,082,264) | |||||||||
Purchase of property and equipment | (649) | (8,152) | (11,621) | |||||||||
Net cash (used in) provided by investing activities | 22,994 | 88,916 | (1,044,658) | |||||||||
Cash flows from financing activities | ||||||||||||
Principal payments on line of credit arrangement and debt | (60,000) | (785,000) | (420,000) | |||||||||
Dividends to shareowners | 0 | (72,697) | (61,186) | |||||||||
Withholdings of share-based payment arrangements settled in cash | 0 | (32,173) | ||||||||||
Excess tax benefits from share-based payment arrangements | 0 | 20,948 | ||||||||||
Other financing activities, net | (4) | (44) | ||||||||||
Net cash provided by (used in) financing activities | (130,918) | (899,544) | 642,849 | |||||||||
Change in cash | 83,299 | (87,131) | 97,741 | |||||||||
Cash at beginning of period | 379,411 | 462,710 | 466,542 | 462,710 | 466,542 | 368,801 | ||||||
Cash at end of period | 462,710 | 379,411 | 379,411 | 466,542 | ||||||||
Predecessor | PROTECTIVE LIFE CORPORATION | ||||||||||||
Cash flows from operating activities | ||||||||||||
Net income | 1,509 | 384,875 | 393,464 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Realized investment (gains) losses | 15,863 | 2,786 | (15,040) | |||||||||
Equity in undistributed net income of subsidiaries | (5,755) | (62,793) | (290,224) | |||||||||
Depreciation expense | 23 | 279 | 151 | |||||||||
Receivables from subsidiaries | (4,076) | 17,990 | (15,918) | |||||||||
Income tax receivable | 0 | 0 | 0 | |||||||||
Deferred income tax | (11,123) | 8,798 | (16,936) | |||||||||
Accrued income tax | 5,875 | 196 | 231 | |||||||||
Accrued expenses and other liabilities | 18,329 | 17,648 | 5,124 | |||||||||
Other, net | (2,334) | 14,192 | 12,948 | |||||||||
Net cash provided by operating activities | 18,311 | 383,971 | 73,800 | |||||||||
Cash flows from investing activities | ||||||||||||
Maturities and principal reductions of investments, available-for-sale | 0 | 1,298 | 0 | |||||||||
Sale of investments, available-for-sale | 0 | 0 | 0 | |||||||||
Cost of investments acquired, available-for-sale | 0 | (7,011) | (47,477) | |||||||||
Return of and/or (additional) capital investments in subsidiaries | 0 | (3,654) | (141,242) | |||||||||
Purchase of property and equipment | 0 | (62) | (1,346) | |||||||||
Net cash (used in) provided by investing activities | 0 | (9,429) | (190,065) | |||||||||
Cash flows from financing activities | ||||||||||||
Principal payments on line of credit arrangements and debt | 0 | 500,000 | 605,000 | |||||||||
Principal payments on line of credit arrangement and debt | (60,000) | (785,000) | (420,000) | |||||||||
Payments to affiliates | 0 | 0 | (14,500) | |||||||||
Dividends to shareowners | 0 | (72,697) | (61,186) | |||||||||
Withholdings of share-based payment arrangements settled in cash | 0 | (32,173) | 0 | |||||||||
Excess tax benefits from share-based payment arrangements | 0 | 20,948 | 0 | |||||||||
Other financing activities, net | 0 | 0 | 0 | |||||||||
Net cash provided by (used in) financing activities | (60,000) | (368,922) | 109,314 | |||||||||
Change in cash | (41,689) | 5,620 | (6,951) | |||||||||
Cash at beginning of period | 62,465 | $ 20,776 | $ 56,845 | $ 20,776 | 56,845 | 63,796 | ||||||
Cash at end of period | $ 20,776 | $ 62,465 | $ 62,465 | $ 56,845 |
SCHEDULE II - CONDENSED FINA151
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details 5) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | ||||||||
Jan. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 01, 2015 | |
Adjustments to prior period values | |||||||||||||
Goodwill | $ 732,400 | $ 732,400 | $ 735,700 | ||||||||||
Decrease in goodwill | 3,300 | ||||||||||||
PROTECTIVE LIFE CORPORATION | |||||||||||||
Adjustments to prior period values | |||||||||||||
Goodwill | 735,700 | ||||||||||||
Decrease in goodwill | 3,300 | ||||||||||||
Successor | |||||||||||||
Adjustments to prior period values | |||||||||||||
Goodwill | 732,443 | 732,443 | $ 735,700 | ||||||||||
Statements of Income | |||||||||||||
Income tax expense (benefit) | $ 29,966 | 41,654 | $ 26,853 | $ 33,070 | 131,543 | ||||||||
Cash flows from operating activities | |||||||||||||
Deferred income taxes | (130,072) | ||||||||||||
Other, net | (63,144) | ||||||||||||
Successor | PROTECTIVE LIFE CORPORATION | |||||||||||||
Adjustments to prior period values | |||||||||||||
Goodwill | $ 0 | 0 | |||||||||||
Statements of Income | |||||||||||||
Income tax expense (benefit) | 40,599 | ||||||||||||
Equity in undistributed income of subsidiaries | 181,862 | ||||||||||||
Cash flows from operating activities | |||||||||||||
Deferred income taxes | (99,146) | ||||||||||||
Accrued expenses and other liabilities | 192,234 | ||||||||||||
Other, net | 5,419 | ||||||||||||
Cash flows from investing activities | |||||||||||||
Decrease in purchase of and/or additional capital investments in subsidiaries | $ (110,793) | ||||||||||||
Predecessor | |||||||||||||
Adjustments to prior period values | |||||||||||||
Goodwill | $ 102,365 | $ 102,365 | $ 105,463 | ||||||||||
Decrease in goodwill | $ 300 | ||||||||||||
Statements of Income | |||||||||||||
Income tax expense (benefit) | (327) | 36,641 | $ 65,974 | $ 54,233 | $ 41,566 | 198,414 | 196,909 | ||||||
Cash flows from operating activities | |||||||||||||
Deferred income taxes | (30,791) | (471) | (175,054) | ||||||||||
Other, net | (149,889) | (74,061) | (28,636) | ||||||||||
Predecessor | PROTECTIVE LIFE CORPORATION | |||||||||||||
Adjustments to prior period values | |||||||||||||
Goodwill | $ 10,275 | 10,275 | |||||||||||
Statements of Income | |||||||||||||
Income tax expense (benefit) | (4,747) | 19,403 | 18,314 | ||||||||||
Equity in undistributed income of subsidiaries | 5,755 | 62,793 | 290,224 | ||||||||||
Cash flows from operating activities | |||||||||||||
Deferred income taxes | 11,123 | (8,798) | 16,936 | ||||||||||
Accrued expenses and other liabilities | (18,329) | (17,648) | (5,124) | ||||||||||
Other, net | (2,334) | 14,192 | 12,948 | ||||||||||
Cash flows from investing activities | |||||||||||||
Decrease in purchase of and/or additional capital investments in subsidiaries | $ 0 | $ 3,654 | 141,242 | ||||||||||
Predecessor | Effect of change | PROTECTIVE LIFE CORPORATION | |||||||||||||
Statements of Income | |||||||||||||
Income tax expense (benefit) | 36,600 | ||||||||||||
Equity in undistributed income of subsidiaries | 36,600 | ||||||||||||
Cash flows from operating activities | |||||||||||||
Equity in undistributed net income of subsidiaries | 36,600 | ||||||||||||
Deferred income taxes | 33,900 | ||||||||||||
Accrued expenses and other liabilities | 25,400 | ||||||||||||
Other, net | 33,900 | ||||||||||||
Cash flows from investing activities | |||||||||||||
Decrease in purchase of and/or additional capital investments in subsidiaries | $ 11,200 |
SCHEDULE II - CONDENSED FINA152
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details 6) - USD ($) | Feb. 03, 2015 | Feb. 02, 2015 | Feb. 01, 2015 | Jan. 31, 2015 | Dec. 31, 2007 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 09, 2009 |
Condensed Financial Information of Registrant | |||||||||||
Base of floating rate interest rate payments | LIBOR | ||||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||||
Debt maturities due in 2018 | $ 162,700,000 | $ 162,700,000 | |||||||||
Debt maturities due in 2019 | 473,100,000 | 473,100,000 | |||||||||
Debt maturities due thereafter | $ 468,000,000 | $ 468,000,000 | |||||||||
2015 Credit Facility | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Line of credit, maximum borrowing capacity | $ 1,000,000,000 | ||||||||||
Line of credit, maximum borrowing capacity to be granted upon entity's request | $ 1,250,000,000 | ||||||||||
Base of floating rate interest rate payments | LIBOR | ||||||||||
Facility fee percentage | 0.125% | 0.15% | |||||||||
2015 Credit Facility | Prime Rate | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Base of floating rate interest rate payments | prime rate | prime rate | |||||||||
2015 Credit Facility | Federal Funds Rate | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Base of floating rate interest rate payments | Federal Funds rate | Federal Funds rate | |||||||||
Interest rate added to the base rate (as a percent) | 0.50% | ||||||||||
2015 Credit Facility | LIBOR One-Month Rate | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Base of floating rate interest rate payments | one-month LIBOR | one-month LIBOR | |||||||||
Interest rate added to the base rate (as a percent) | 1.00% | ||||||||||
Credit Facility | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Line of credit, maximum borrowing capacity | $ 750,000,000 | ||||||||||
Line of credit, maximum borrowing capacity to be granted upon entity's request | $ 1,000,000,000 | ||||||||||
Facility fee percentage | 0.175% | ||||||||||
Credit Facility | Federal Funds Rate | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Interest rate added to the base rate (as a percent) | 0.50% | 0.50% | |||||||||
Credit Facility | LIBOR One-Month Rate | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Interest rate added to the base rate (as a percent) | 1.00% | ||||||||||
Senior notes | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Repayment of debt | $ 150,000,000 | ||||||||||
Amount of debt issued | $ 700,000,000 | ||||||||||
4.30% Senior Notes (2003), due 2013 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Stated interest rate (as a percent) | 4.30% | ||||||||||
Repayment of debt | $ 250,000,000 | ||||||||||
6.40% Senior Notes (2007), due 2018 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Stated interest rate (as a percent) | 6.40% | ||||||||||
Amount of debt issued | $ 150,000,000 | ||||||||||
Principal payments on line of credit arrangements and debt | $ 148,700,000 | ||||||||||
7.375% Senior Notes (2009), due 2019 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Stated interest rate (as a percent) | 7.375% | ||||||||||
Amount of debt issued | $ 400,000,000 | ||||||||||
8.00% Senior Notes (2009), due 2024, callable 2014 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Stated interest rate (as a percent) | 8.00% | 8.00% | 8.00% | ||||||||
Amount of debt issued | $ 100,000,000 | ||||||||||
8.45% Senior Notes (2009), due 2039 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Stated interest rate (as a percent) | 8.45% | ||||||||||
Total debt | $ 300,000,000 | ||||||||||
Subordinated debentures | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Write off of deferred issue costs | $ 7,200,000 | ||||||||||
6.25% Subordinated Debentures (2012) due 2042, callable 2017 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Stated interest rate (as a percent) | 6.25% | ||||||||||
Amount of debt issued | $ 287,500,000 | ||||||||||
6.00% Subordinated Debentures (2012) due 2042, callable 2017 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Stated interest rate (as a percent) | 6.00% | ||||||||||
Amount of debt issued | $ 150,000,000 | ||||||||||
7.50% Subordinated Debentures (2001), due 2031, callable 2006 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Repayment of debt | 103,100,000 | ||||||||||
7.25% Subordinated Debentures (2002), due 2032, callable 2007 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Repayment of debt | 118,600,000 | ||||||||||
7.25% Capital Securities (2006), due 2066, callable 2011 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Repayment of debt | 75,000,000 | ||||||||||
7.25% Capital Securities (2006), due 2066, callable 2011,Two | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Repayment of debt | 125,000,000 | ||||||||||
Write off of deferred issue costs | $ 4,000,000 | ||||||||||
PROTECTIVE LIFE CORPORATION | 2015 Credit Facility | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Facility fee percentage | 0.15% | ||||||||||
PROTECTIVE LIFE CORPORATION | Senior notes | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Amount of debt issued | 800,000,000 | ||||||||||
PROTECTIVE LIFE CORPORATION | 7.375% Senior Notes (2009), due 2019 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Amount of debt issued | 400,000,000 | ||||||||||
PROTECTIVE LIFE CORPORATION | 8.00% Senior Notes (2009), due 2024, callable 2014 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Amount of debt issued | 100,000,000 | ||||||||||
PROTECTIVE LIFE CORPORATION | 8.45% Senior Notes (2009), due 2039 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Amount of debt issued | 300,000,000 | ||||||||||
PROTECTIVE LIFE CORPORATION | Surplus notes | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Aggregate principal amount of debt repurchased by Golden Gate from third parties | 800,000,000 | ||||||||||
Outstanding surplus notes | 800,000,000 | ||||||||||
Golden Gate | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Aggregate principal amount of debt repurchased by Golden Gate from third parties | 800,000,000 | ||||||||||
Successor | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Total debt | $ 1,588,806,000 | $ 1,588,806,000 | |||||||||
Total subordinated debt securities | $ 448,763,000 | $ 448,763,000 | |||||||||
Successor | 2015 Credit Facility | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Interest rate added to the base rate (as a percent) | 1.00% | ||||||||||
Successor | Credit Facility | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Line of credit, amount outstanding | $ 485,000,000 | ||||||||||
Successor | Credit Facility | LIBOR One-Month Rate | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Interest rate added to the base rate (as a percent) | 1.00% | ||||||||||
Successor | 6.40% Senior Notes (2007), due 2018 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Stated interest rate (as a percent) | 6.40% | 6.40% | |||||||||
Total debt | $ 162,671,000 | $ 162,671,000 | |||||||||
Successor | 7.375% Senior Notes (2009), due 2019 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Stated interest rate (as a percent) | 7.375% | 7.375% | |||||||||
Total debt | $ 473,127,000 | $ 473,127,000 | |||||||||
Successor | 8.00% Senior Notes (2009), due 2024, callable 2014 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Stated interest rate (as a percent) | 8.00% | 8.00% | |||||||||
Successor | 8.45% Senior Notes (2009), due 2039 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Stated interest rate (as a percent) | 8.45% | 8.45% | |||||||||
Total debt | $ 468,008,000 | $ 468,008,000 | |||||||||
Successor | 6.125% Subordinated Debentures (2004), due 2034, callable 2009 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Stated interest rate (as a percent) | 6.125% | 6.125% | |||||||||
Total subordinated debt securities | $ 0 | $ 0 | |||||||||
Future maturities of debt, excluding notes payable to banks, and subordinated debt securities, for the next five years | |||||||||||
Early Repayment of Subordinated Debt | $ 103,100,000 | ||||||||||
Successor | 6.25% Subordinated Debentures (2012) due 2042, callable 2017 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Stated interest rate (as a percent) | 6.25% | 6.25% | |||||||||
Total subordinated debt securities | $ 295,833,000 | $ 295,833,000 | |||||||||
Successor | 6.00% Subordinated Debentures (2012) due 2042, callable 2017 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Stated interest rate (as a percent) | 6.00% | 6.00% | |||||||||
Total subordinated debt securities | $ 152,930,000 | $ 152,930,000 | |||||||||
Successor | Long-term debt and subordinated debt securities | |||||||||||
Interest Expense | |||||||||||
Interest expense | 58,600,000 | ||||||||||
Successor | PROTECTIVE LIFE CORPORATION | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Total debt | 1,588,806,000 | 1,588,806,000 | |||||||||
Total subordinated debt securities | 448,763,000 | 448,763,000 | |||||||||
Principal payments on line of credit arrangements and debt | 330,000,000 | ||||||||||
Outstanding surplus notes | 1,148,237,000 | 1,148,237,000 | |||||||||
Successor | PROTECTIVE LIFE CORPORATION | Credit Facility | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Total debt | 485,000,000 | 485,000,000 | |||||||||
Successor | PROTECTIVE LIFE CORPORATION | 6.40% Senior Notes (2007), due 2018 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Total debt | 162,671,000 | 162,671,000 | |||||||||
Successor | PROTECTIVE LIFE CORPORATION | 7.375% Senior Notes (2009), due 2019 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Total debt | 473,127,000 | 473,127,000 | |||||||||
Successor | PROTECTIVE LIFE CORPORATION | 8.45% Senior Notes (2009), due 2039 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Total debt | 468,008,000 | 468,008,000 | |||||||||
Successor | PROTECTIVE LIFE CORPORATION | 6.125% Subordinated Debentures (2004), due 2034, callable 2009 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Total subordinated debt securities | 0 | 0 | |||||||||
Successor | PROTECTIVE LIFE CORPORATION | 6.25% Subordinated Debentures (2012) due 2042, callable 2017 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Total subordinated debt securities | 295,833,000 | 295,833,000 | |||||||||
Successor | PROTECTIVE LIFE CORPORATION | 6.00% Subordinated Debentures (2012) due 2042, callable 2017 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Total subordinated debt securities | 152,930,000 | 152,930,000 | |||||||||
Successor | PROTECTIVE LIFE CORPORATION | Long-term debt and subordinated debt securities | |||||||||||
Interest Expense | |||||||||||
Interest expense | 57,800,000 | ||||||||||
Successor | PLICO | Letter of Credit | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Outstanding letters of credit (LOC) | $ 55,000,000 | 0 | 0 | ||||||||
Successor | Golden Gate | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Outstanding surplus notes | $ 800,000,000 | $ 800,000,000 | |||||||||
Predecessor | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Stated interest rate (as a percent) | 8.00% | 8.00% | |||||||||
Total debt | 1,300,000,000 | ||||||||||
Total subordinated debt securities | 540,593,000 | ||||||||||
Predecessor | Credit Facility | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Line of credit, amount outstanding | $ 450,000,000 | ||||||||||
Interest rate added to the base rate (as a percent) | 1.20% | ||||||||||
Predecessor | Senior notes | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Repayment of debt | $ 150,000,000 | ||||||||||
Predecessor | 6.40% Senior Notes (2007), due 2018 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Stated interest rate (as a percent) | 6.40% | 6.40% | 6.40% | ||||||||
Total debt | $ 150,000,000 | ||||||||||
Predecessor | 7.375% Senior Notes (2009), due 2019 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Stated interest rate (as a percent) | 7.375% | 7.375% | 7.375% | ||||||||
Total debt | $ 400,000,000 | ||||||||||
Predecessor | 8.00% Senior Notes (2009), due 2024, callable 2014 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Stated interest rate (as a percent) | 8.00% | ||||||||||
Amount of debt issued | $ 100,000,000 | ||||||||||
Write off of deferred issue costs | $ 2,400,000 | ||||||||||
Predecessor | 8.45% Senior Notes (2009), due 2039 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Stated interest rate (as a percent) | 8.45% | 8.45% | 8.45% | ||||||||
Total debt | $ 300,000,000 | ||||||||||
Predecessor | 6.125% Subordinated Debentures (2004), due 2034, callable 2009 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Stated interest rate (as a percent) | 6.125% | 6.125% | 6.125% | ||||||||
Total subordinated debt securities | $ 103,093,000 | ||||||||||
Predecessor | 6.25% Subordinated Debentures (2012) due 2042, callable 2017 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Stated interest rate (as a percent) | 6.25% | 6.25% | 6.25% | ||||||||
Total subordinated debt securities | $ 287,500,000 | ||||||||||
Predecessor | 6.00% Subordinated Debentures (2012) due 2042, callable 2017 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Stated interest rate (as a percent) | 6.00% | 6.00% | 6.00% | ||||||||
Total subordinated debt securities | $ 150,000,000 | ||||||||||
Predecessor | Long-term debt and subordinated debt securities | |||||||||||
Interest Expense | |||||||||||
Interest expense | $ 8,900,000 | 118,400,000 | 123,800,000 | ||||||||
Predecessor | PROTECTIVE LIFE CORPORATION | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Total debt | 1,300,000,000 | ||||||||||
Total subordinated debt securities | 540,593,000 | ||||||||||
Principal payments on line of credit arrangements and debt | 0 | 500,000,000 | 605,000,000 | ||||||||
Outstanding surplus notes | 800,000,000 | ||||||||||
Predecessor | PROTECTIVE LIFE CORPORATION | Credit Facility | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Total debt | 450,000,000 | ||||||||||
Predecessor | PROTECTIVE LIFE CORPORATION | 6.40% Senior Notes (2007), due 2018 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Total debt | 150,000,000 | ||||||||||
Predecessor | PROTECTIVE LIFE CORPORATION | 7.375% Senior Notes (2009), due 2019 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Total debt | 400,000,000 | ||||||||||
Predecessor | PROTECTIVE LIFE CORPORATION | 8.45% Senior Notes (2009), due 2039 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Total debt | 300,000,000 | ||||||||||
Predecessor | PROTECTIVE LIFE CORPORATION | 6.125% Subordinated Debentures (2004), due 2034, callable 2009 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Total subordinated debt securities | 103,093,000 | ||||||||||
Predecessor | PROTECTIVE LIFE CORPORATION | 6.25% Subordinated Debentures (2012) due 2042, callable 2017 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Total subordinated debt securities | 287,500,000 | ||||||||||
Predecessor | PROTECTIVE LIFE CORPORATION | 6.00% Subordinated Debentures (2012) due 2042, callable 2017 | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Total subordinated debt securities | 150,000,000 | ||||||||||
Predecessor | PROTECTIVE LIFE CORPORATION | Long-term debt and subordinated debt securities | |||||||||||
Interest Expense | |||||||||||
Interest expense | $ 8,900,000 | 118,400,000 | $ 124,500,000 | ||||||||
Predecessor | PLICO | Letter of Credit | |||||||||||
Condensed Financial Information of Registrant | |||||||||||
Outstanding letters of credit (LOC) | $ 55,000,000 |
SCHEDULE II - CONDENSED FINA153
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details 7) | Oct. 10, 2012USD ($) | Dec. 31, 2015USD ($)installmentshares | Dec. 31, 2015USD ($)installmentshares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013shares | Feb. 02, 2015USD ($) | Feb. 01, 2015 | Jun. 25, 2014USD ($) | Aug. 07, 2013USD ($) | Dec. 31, 2012shares | Dec. 10, 2010USD ($) | Apr. 23, 2010USD ($) |
Shareowners' equity | ||||||||||||
Issued Shares | shares | 88,776,960 | 88,776,960 | 88,776,960 | |||||||||
Treasury Shares | shares | 9,435,255 | 10,199,514 | 10,639,467 | |||||||||
Outstanding Shares | shares | 79,341,705 | 78,577,446 | 78,137,493 | |||||||||
Reissuance of treasury stock (in shares) | shares | (764,259) | (439,953) | ||||||||||
Deposits to treasury stock (in shares) | shares | 764,259 | 439,953 | ||||||||||
Building contiguous to home office | ||||||||||||
Commitments and contingencies | ||||||||||||
Approximate price for which the company may purchase building at the end of lease term | $ 75,000,000 | $ 75,000,000 | ||||||||||
Future minimum rental payments required under capital lease | ||||||||||||
2,016 | 1,385,000 | 1,385,000 | ||||||||||
2,017 | 1,381,000 | 1,381,000 | ||||||||||
2,018 | 76,356,000 | 76,356,000 | ||||||||||
Indemnification Agreement | ||||||||||||
Commitments and contingencies | ||||||||||||
Indemnification agreement with certain officers, maximum (up to) | 10,000,000 | 10,000,000 | ||||||||||
Predecessor | ||||||||||||
Future minimum rental payments required under capital lease | ||||||||||||
Non-recourse funding obligations | $ 582,404,000 | |||||||||||
Shareowners' equity | ||||||||||||
Issued Shares | shares | 88,776,960 | |||||||||||
Treasury Shares | shares | 9,435,255 | |||||||||||
Successor | ||||||||||||
Future minimum rental payments required under capital lease | ||||||||||||
Non-recourse funding obligations | 685,684,000 | 685,684,000 | ||||||||||
Non-recourse funding obligations held by affiliates | $ 430,100,000 | $ 430,100,000 | ||||||||||
Shareowners' equity | ||||||||||||
Issued Shares | shares | 1,000 | 1,000 | ||||||||||
Treasury Shares | shares | 0 | 0 | ||||||||||
PROTECTIVE LIFE CORPORATION | ||||||||||||
Future minimum rental payments required under capital lease | ||||||||||||
Non-recourse funding obligations held by affiliates | $ 430,100,000 | $ 430,100,000 | ||||||||||
PROTECTIVE LIFE CORPORATION | Building contiguous to home office | ||||||||||||
Commitments and contingencies | ||||||||||||
Approximate price for which the company may purchase building at the end of lease term | 75,000,000 | 75,000,000 | ||||||||||
Future minimum rental payments required under capital lease | ||||||||||||
2,016 | 1,385,000 | 1,385,000 | ||||||||||
2,017 | 1,381,000 | 1,381,000 | ||||||||||
2,018 | 76,356,000 | 76,356,000 | ||||||||||
PROTECTIVE LIFE CORPORATION | Indemnification Agreement | ||||||||||||
Commitments and contingencies | ||||||||||||
Indemnification agreement with certain officers, maximum (up to) | 10,000,000 | 10,000,000 | ||||||||||
PROTECTIVE LIFE CORPORATION | Predecessor | ||||||||||||
Shareowners' equity | ||||||||||||
Issued Shares | shares | 88,776,960 | 88,776,960 | 88,776,960 | |||||||||
Treasury Shares | shares | 9,435,255 | 10,199,514 | 10,639,467 | |||||||||
Outstanding Shares | shares | 79,341,705 | 78,577,446 | 78,137,493 | |||||||||
Reissuance of treasury stock (in shares) | shares | (764,259) | (439,953) | ||||||||||
Deposits to treasury stock (in shares) | shares | 764,259 | 439,953 | ||||||||||
Golden Gate II | ||||||||||||
Future minimum rental payments required under capital lease | ||||||||||||
Outstanding non-recourse funding obligations | 575,000,000 | 575,000,000 | ||||||||||
Non-recourse funding obligations | 144,900,000 | 144,900,000 | ||||||||||
Expected payments under support agreement obligation | 0 | 0 | ||||||||||
Golden Gate II | Successor | ||||||||||||
Future minimum rental payments required under capital lease | ||||||||||||
Outstanding non-recourse funding obligations | 575,000,000 | 575,000,000 | ||||||||||
Non-recourse funding obligations | 118,481,000 | $ 118,481,000 | ||||||||||
Golden Gate III | ||||||||||||
Future minimum rental payments required under capital lease | ||||||||||||
Letter of credit term | 15 years | |||||||||||
Maximum borrowing capacity | $ 915,000,000 | $ 710,000,000 | $ 505,000,000 | |||||||||
Maximum amount up to which LOC will be periodically increased | $ 935,000,000 | $ 935,000,000 | $ 935,000,000 | $ 720,000,000 | $ 610,000,000 | |||||||
Number of installments for future scheduled capital contributions | installment | 3 | 3 | ||||||||||
Future scheduled capital contributions | $ 122,500,000 | |||||||||||
Golden Gate III | Successor | ||||||||||||
Future minimum rental payments required under capital lease | ||||||||||||
Expected payments under support agreement obligation | $ 0 | 0 | ||||||||||
Outstanding letters of credit (LOC) | 935,000,000 | 935,000,000 | ||||||||||
Golden Gate III | Successor | Letter of Credit | ||||||||||||
Future minimum rental payments required under capital lease | ||||||||||||
Outstanding letters of credit (LOC) | 935,000,000 | $ 935,000,000 | ||||||||||
Golden Gate IV | ||||||||||||
Future minimum rental payments required under capital lease | ||||||||||||
Letter of credit term | 12 years | |||||||||||
Maximum borrowing capacity | $ 270,000,000 | |||||||||||
Maximum amount up to which LOC will be periodically increased | 790,000,000 | $ 790,000,000 | ||||||||||
Golden Gate IV | Successor | ||||||||||||
Future minimum rental payments required under capital lease | ||||||||||||
Expected payments under support agreement obligation | 0 | $ 0 | ||||||||||
Letter of credit term | 12 years | |||||||||||
Maximum borrowing capacity | 780,000,000 | $ 780,000,000 | $ 780,000,000 | $ 270,000,000 | ||||||||
Maximum amount up to which LOC will be periodically increased | 790,000,000 | 790,000,000 | ||||||||||
Golden Gate V and Red Mountain | ||||||||||||
Future minimum rental payments required under capital lease | ||||||||||||
Term of transaction | 20 years | |||||||||||
Maximum financing capacity under transaction | $ 945,000,000 | |||||||||||
Red Mountain | ||||||||||||
Future minimum rental payments required under capital lease | ||||||||||||
Maximum financing capacity under transaction | 945,000,000 | |||||||||||
Principal amount of note issued | $ 275,000,000 | |||||||||||
Red Mountain | Successor | ||||||||||||
Future minimum rental payments required under capital lease | ||||||||||||
Principal amount of note issued | 500,000,000 | 500,000,000 | ||||||||||
Golden Gate V | ||||||||||||
Future minimum rental payments required under capital lease | ||||||||||||
Future scheduled capital contributions | 134,200,000 | |||||||||||
Golden Gate V | Successor | ||||||||||||
Future minimum rental payments required under capital lease | ||||||||||||
Non-recourse funding obligations | 564,679,000 | 564,679,000 | ||||||||||
Expected payments under support agreement obligation | 0 | 0 | ||||||||||
Maximum financing capacity under transaction | 945,000,000 | 945,000,000 | ||||||||||
Principal amount of note issued | 500,000,000 | 500,000,000 | ||||||||||
PLICO | Predecessor | Letter of Credit | ||||||||||||
Future minimum rental payments required under capital lease | ||||||||||||
Outstanding letters of credit (LOC) | $ 55,000,000 | |||||||||||
PLICO | Successor | Letter of Credit | ||||||||||||
Future minimum rental payments required under capital lease | ||||||||||||
Outstanding letters of credit (LOC) | 0 | $ 0 | $ 55,000,000 | |||||||||
Dai-ichi Life | Protective Life Corporation | ||||||||||||
Company stock acquired in merger | ||||||||||||
Percent of outstanding shares acquired | 100.00% | |||||||||||
Shades Creek Captive Insurance Company | Successor | ||||||||||||
Future minimum rental payments required under capital lease | ||||||||||||
Additional capital provided to affiliate | $ 120,000,000 |
SCHEDULE II - CONDENSED FINA154
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details 8) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Successor | ||||
Cash paid during the year for: | ||||
Interest paid on debt | $ 124,829 | |||
Income taxes (reduced by amounts received from affiliates under a tax sharing agreement) | (53,486) | |||
Noncash investing and financing activities: | ||||
Stock-based compensation | 0 | |||
Successor | PROTECTIVE LIFE CORPORATION | ||||
Cash paid during the year for: | ||||
Interest paid on debt | 75,322 | |||
Income taxes (reduced by amounts received from affiliates under a tax sharing agreement) | (15,669) | |||
Noncash investing and financing activities: | ||||
Stock-based compensation | $ 0 | |||
Predecessor | ||||
Cash paid during the year for: | ||||
Interest paid on debt | $ 22,802 | $ 174,644 | $ 171,360 | |
Income taxes (reduced by amounts received from affiliates under a tax sharing agreement) | (1) | 159,447 | (27,211) | |
Noncash investing and financing activities: | ||||
Stock-based compensation | 1,550 | 13,902 | 10,739 | |
Predecessor | PROTECTIVE LIFE CORPORATION | ||||
Cash paid during the year for: | ||||
Interest paid on debt | 5,411 | 121,327 | 125,685 | |
Income taxes (reduced by amounts received from affiliates under a tax sharing agreement) | (10) | (6,106) | 33,623 | |
Noncash investing and financing activities: | ||||
Stock-based compensation | $ 1,550 | $ 13,902 | $ 10,739 |
SCHEDULE II - CONDENSED FINA155
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details 9) - USD ($) $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Successor | ||||
Interest rate floor and reinsurance rate cap agreements | ||||
Combined liability for interest rate floor and reinsurance rate cap agreements | $ 18.2 | |||
Unrealized gains (losses) on interest rate floor and reinsurance rate cap agreements | $ 3.8 | |||
Predecessor | ||||
Interest rate floor and reinsurance rate cap agreements | ||||
Combined liability for interest rate floor and reinsurance rate cap agreements | $ 6.1 | |||
Unrealized gains (losses) on interest rate floor and reinsurance rate cap agreements | $ (15.9) | $ (4.1) | $ (15.1) |
SCHEDULE III - SUPPLEMENTARY156
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION (Details) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | |||||||
Jan. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Successor | ||||||||||||
Supplementary insurance information | ||||||||||||
Deferred Policy Acquisition Costs and Value of Businesses Acquired | $ 1,558,808 | $ 1,558,808 | ||||||||||
Future Policy Benefits and Claims | 29,703,897 | 29,703,897 | ||||||||||
Unearned Premiums | 723,536 | 723,536 | ||||||||||
Stable Value Products, Annuity Contracts and Other Policyholders' Funds | 13,921,256 | 13,921,256 | ||||||||||
Net Premiums and Policy Fees | $ 367,607 | 507,654 | $ 490,967 | $ 486,844 | 1,853,072 | |||||||
Net Investment Income | 1,632,948 | |||||||||||
Benefits and Settlement Expenses | 2,539,943 | |||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 94,056 | |||||||||||
Other Operating Expenses | 676,828 | |||||||||||
Premiums Written | 167,292 | |||||||||||
Successor | Life Marketing | ||||||||||||
Supplementary insurance information | ||||||||||||
Deferred Policy Acquisition Costs and Value of Businesses Acquired | 1,119,515 | 1,119,515 | ||||||||||
Future Policy Benefits and Claims | 13,869,102 | 13,869,102 | ||||||||||
Unearned Premiums | 135 | 135 | ||||||||||
Stable Value Products, Annuity Contracts and Other Policyholders' Funds | 371,618 | 371,618 | ||||||||||
Net Premiums and Policy Fees | 882,171 | |||||||||||
Net Investment Income | 446,439 | |||||||||||
Benefits and Settlement Expenses | 1,109,840 | |||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 107,811 | |||||||||||
Other Operating Expenses | 165,317 | |||||||||||
Premiums Written | 148 | |||||||||||
Successor | Acquisitions | ||||||||||||
Supplementary insurance information | ||||||||||||
Deferred Policy Acquisition Costs and Value of Businesses Acquired | (178,662) | (178,662) | ||||||||||
Future Policy Benefits and Claims | 14,508,877 | 14,508,877 | ||||||||||
Unearned Premiums | 3,082 | 3,082 | ||||||||||
Stable Value Products, Annuity Contracts and Other Policyholders' Funds | 4,254,579 | 4,254,579 | ||||||||||
Net Premiums and Policy Fees | 690,741 | |||||||||||
Net Investment Income | 639,422 | |||||||||||
Benefits and Settlement Expenses | 1,067,482 | |||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 2,035 | |||||||||||
Other Operating Expenses | 89,960 | |||||||||||
Premiums Written | 32,134 | |||||||||||
Successor | Annuities | ||||||||||||
Supplementary insurance information | ||||||||||||
Deferred Policy Acquisition Costs and Value of Businesses Acquired | 578,742 | 578,742 | ||||||||||
Future Policy Benefits and Claims | 1,196,131 | 1,196,131 | ||||||||||
Unearned Premiums | 0 | 0 | ||||||||||
Stable Value Products, Annuity Contracts and Other Policyholders' Funds | 7,090,171 | 7,090,171 | ||||||||||
Net Premiums and Policy Fees | 138,146 | |||||||||||
Net Investment Income | 297,114 | |||||||||||
Benefits and Settlement Expenses | 226,824 | |||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | (41,071) | |||||||||||
Other Operating Expenses | 125,946 | |||||||||||
Successor | Stable Value Products | ||||||||||||
Supplementary insurance information | ||||||||||||
Deferred Policy Acquisition Costs and Value of Businesses Acquired | 2,357 | 2,357 | ||||||||||
Stable Value Products, Annuity Contracts and Other Policyholders' Funds | 2,131,822 | 2,131,822 | ||||||||||
Net Investment Income | 78,459 | |||||||||||
Benefits and Settlement Expenses | 19,348 | |||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 43 | |||||||||||
Other Operating Expenses | 2,620 | |||||||||||
Successor | Asset Protection | ||||||||||||
Supplementary insurance information | ||||||||||||
Deferred Policy Acquisition Costs and Value of Businesses Acquired | 36,856 | 36,856 | ||||||||||
Future Policy Benefits and Claims | 61,291 | 61,291 | ||||||||||
Unearned Premiums | 719,516 | 719,516 | ||||||||||
Net Premiums and Policy Fees | 128,338 | |||||||||||
Net Investment Income | 17,459 | |||||||||||
Benefits and Settlement Expenses | 101,881 | |||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 25,211 | |||||||||||
Other Operating Expenses | 113,974 | |||||||||||
Premiums Written | 121,427 | |||||||||||
Successor | Corporate and Other | ||||||||||||
Supplementary insurance information | ||||||||||||
Future Policy Benefits and Claims | 68,496 | 68,496 | ||||||||||
Unearned Premiums | 803 | 803 | ||||||||||
Stable Value Products, Annuity Contracts and Other Policyholders' Funds | $ 73,066 | 73,066 | ||||||||||
Net Premiums and Policy Fees | 13,676 | |||||||||||
Net Investment Income | 154,055 | |||||||||||
Benefits and Settlement Expenses | 14,568 | |||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 27 | |||||||||||
Other Operating Expenses | 179,011 | |||||||||||
Premiums Written | $ 13,583 | |||||||||||
Predecessor | ||||||||||||
Supplementary insurance information | ||||||||||||
Deferred Policy Acquisition Costs and Value of Businesses Acquired | $ 3,294,570 | $ 3,294,570 | $ 3,570,215 | |||||||||
Future Policy Benefits and Claims | 29,944,890 | 29,944,890 | 29,772,325 | |||||||||
Unearned Premiums | 1,524,077 | 1,524,077 | 1,549,815 | |||||||||
Stable Value Products, Annuity Contracts and Other Policyholders' Funds | 14,340,542 | 14,340,542 | 14,899,185 | |||||||||
Net Premiums and Policy Fees | $ 171,910 | 445,252 | $ 481,902 | $ 508,834 | $ 488,183 | 1,924,171 | 1,604,456 | |||||
Net Investment Income | 175,180 | 2,197,724 | 1,918,081 | |||||||||
Benefits and Settlement Expenses | 267,287 | 2,791,610 | 2,479,757 | |||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 4,072 | 257,309 | 192,898 | |||||||||
Other Operating Expenses | 68,368 | 771,364 | 695,971 | |||||||||
Premiums Written | 13,663 | 175,810 | 173,320 | |||||||||
Predecessor | Life Marketing | ||||||||||||
Supplementary insurance information | ||||||||||||
Deferred Policy Acquisition Costs and Value of Businesses Acquired | 1,973,156 | 1,973,156 | 2,071,470 | |||||||||
Future Policy Benefits and Claims | 14,077,360 | 14,077,360 | 13,504,869 | |||||||||
Unearned Premiums | 722,880 | 722,880 | 812,929 | |||||||||
Stable Value Products, Annuity Contracts and Other Policyholders' Funds | 349,698 | 349,698 | 311,290 | |||||||||
Net Premiums and Policy Fees | 84,926 | 854,186 | 796,109 | |||||||||
Net Investment Income | 47,460 | 554,004 | 521,665 | |||||||||
Benefits and Settlement Expenses | 123,179 | 1,075,386 | 1,143,132 | |||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 4,813 | 175,807 | 25,774 | |||||||||
Other Operating Expenses | 18,705 | 169,373 | 163,174 | |||||||||
Premiums Written | 12 | 151 | 173 | |||||||||
Predecessor | Acquisitions | ||||||||||||
Supplementary insurance information | ||||||||||||
Deferred Policy Acquisition Costs and Value of Businesses Acquired | 600,482 | 600,482 | 799,255 | |||||||||
Future Policy Benefits and Claims | 14,740,562 | 14,740,562 | 15,112,574 | |||||||||
Unearned Premiums | 3,473 | 3,473 | 4,680 | |||||||||
Stable Value Products, Annuity Contracts and Other Policyholders' Funds | 4,770,181 | 4,770,181 | 4,734,487 | |||||||||
Net Premiums and Policy Fees | 62,343 | 772,020 | 519,477 | |||||||||
Net Investment Income | 71,088 | 874,653 | 617,298 | |||||||||
Benefits and Settlement Expenses | 101,926 | 1,247,836 | 851,386 | |||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 5,033 | 60,031 | 72,762 | |||||||||
Other Operating Expenses | 9,041 | 122,349 | 78,244 | |||||||||
Premiums Written | 2,133 | 35,857 | 24,781 | |||||||||
Predecessor | Annuities | ||||||||||||
Supplementary insurance information | ||||||||||||
Deferred Policy Acquisition Costs and Value of Businesses Acquired | 684,574 | 684,574 | 647,485 | |||||||||
Future Policy Benefits and Claims | 1,015,928 | 1,015,928 | 1,037,348 | |||||||||
Unearned Premiums | 120,850 | 120,850 | 102,734 | |||||||||
Stable Value Products, Annuity Contracts and Other Policyholders' Funds | 7,190,908 | 7,190,908 | 7,228,119 | |||||||||
Net Premiums and Policy Fees | 12,473 | 149,825 | 132,317 | |||||||||
Net Investment Income | 37,189 | 465,845 | 468,322 | |||||||||
Benefits and Settlement Expenses | 30,613 | 316,449 | 319,420 | |||||||||
Amortization of deferred policy acquisition costs and value of business acquired | (7,706) | (4,651) | 62,834 | |||||||||
Other Operating Expenses | 9,926 | 118,632 | 112,620 | |||||||||
Premiums Written | 0 | |||||||||||
Predecessor | Stable Value Products | ||||||||||||
Supplementary insurance information | ||||||||||||
Deferred Policy Acquisition Costs and Value of Businesses Acquired | 621 | 621 | 1,001 | |||||||||
Stable Value Products, Annuity Contracts and Other Policyholders' Funds | 1,959,488 | 1,959,488 | 2,559,552 | |||||||||
Net Premiums and Policy Fees | 0 | |||||||||||
Net Investment Income | 6,888 | 107,170 | 123,798 | |||||||||
Benefits and Settlement Expenses | 2,255 | 35,559 | 41,793 | |||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 25 | 380 | 398 | |||||||||
Other Operating Expenses | 79 | 1,413 | 1,805 | |||||||||
Premiums Written | 0 | |||||||||||
Predecessor | Asset Protection | ||||||||||||
Supplementary insurance information | ||||||||||||
Deferred Policy Acquisition Costs and Value of Businesses Acquired | 35,418 | 35,418 | 50,358 | |||||||||
Future Policy Benefits and Claims | 47,376 | 47,376 | 49,729 | |||||||||
Unearned Premiums | 675,984 | 675,984 | 628,176 | |||||||||
Stable Value Products, Annuity Contracts and Other Policyholders' Funds | 1,556 | |||||||||||
Net Premiums and Policy Fees | 10,825 | 131,678 | 138,404 | |||||||||
Net Investment Income | 1,878 | 22,703 | 23,179 | |||||||||
Benefits and Settlement Expenses | 7,592 | 96,379 | 101,696 | |||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 1,820 | 25,257 | 30,505 | |||||||||
Other Operating Expenses | 10,121 | 121,895 | 119,321 | |||||||||
Premiums Written | 10,172 | 123,413 | 130,225 | |||||||||
Predecessor | Corporate and Other | ||||||||||||
Supplementary insurance information | ||||||||||||
Deferred Policy Acquisition Costs and Value of Businesses Acquired | 319 | 319 | 646 | |||||||||
Future Policy Benefits and Claims | 63,664 | 63,664 | 67,805 | |||||||||
Unearned Premiums | 890 | 890 | 1,296 | |||||||||
Stable Value Products, Annuity Contracts and Other Policyholders' Funds | $ 70,267 | 70,267 | 64,181 | |||||||||
Net Premiums and Policy Fees | 1,343 | 16,462 | 18,149 | |||||||||
Net Investment Income | 10,677 | 173,349 | 163,819 | |||||||||
Benefits and Settlement Expenses | 1,722 | 20,001 | 22,330 | |||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 87 | 485 | 625 | |||||||||
Other Operating Expenses | 20,496 | 237,702 | 220,807 | |||||||||
Premiums Written | $ 1,346 | $ 16,389 | $ 18,141 |
SCHEDULE IV - REINSURANCE (Deta
SCHEDULE IV - REINSURANCE (Details) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Successor | ||||
Life insurance in-force | ||||
Gross Amount | $ 727,705,256 | |||
Amounts ceded to other companies | (368,142,294) | |||
Assumed from Other Companies | 39,546,742 | |||
Net life insurance in-force | $ 399,109,704 | |||
Percentage of Amount Assumed to Net | 9.90% | |||
Premiums and policy fees: | ||||
Gross Amount | $ 2,674,614 | |||
Ceded to Other Companies | (1,154,978) | |||
Assumed from Other Companies | 333,436 | |||
Net Amount | 1,853,072 | |||
Successor | Life insurance | ||||
Premiums and policy fees: | ||||
Gross Amount | 2,360,643 | |||
Ceded to Other Companies | (983,143) | |||
Assumed from Other Companies | 308,280 | |||
Net Amount | $ 1,685,780 | |||
Percentage of Amount Assumed to Net | 18.30% | |||
Annuity policy fees | $ 152,800 | |||
Successor | Accident/health insurance | ||||
Premiums and policy fees: | ||||
Gross Amount | 70,243 | |||
Ceded to Other Companies | (36,871) | |||
Assumed from Other Companies | 18,252 | |||
Net Amount | $ 51,624 | |||
Percentage of Amount Assumed to Net | 35.40% | |||
Successor | Property and liability insurance | ||||
Premiums and policy fees: | ||||
Gross Amount | $ 243,728 | |||
Ceded to Other Companies | (134,964) | |||
Assumed from Other Companies | 6,904 | |||
Net Amount | $ 115,668 | |||
Percentage of Amount Assumed to Net | 6.00% | |||
Predecessor | ||||
Life insurance in-force | ||||
Gross Amount | $ 721,036,332 | $ 726,697,151 | ||
Amounts ceded to other companies | (388,890,060) | (416,809,287) | ||
Assumed from Other Companies | 43,237,358 | 46,752,176 | ||
Net life insurance in-force | $ 375,383,630 | $ 356,640,040 | ||
Percentage of Amount Assumed to Net | 11.50% | 13.10% | ||
Premiums and policy fees: | ||||
Gross Amount | $ 230,790 | $ 2,918,355 | $ 2,642,462 | |
Ceded to Other Companies | (89,956) | (1,373,597) | (1,377,195) | |
Assumed from Other Companies | 31,076 | 379,413 | 339,189 | |
Net Amount | 171,910 | 1,924,171 | 1,604,456 | |
Predecessor | Life insurance | ||||
Premiums and policy fees: | ||||
Gross Amount | 204,185 | 2,603,956 | 2,371,872 | |
Ceded to Other Companies | (74,539) | (1,205,528) | (1,247,657) | |
Assumed from Other Companies | 28,601 | 349,934 | 306,920 | |
Net Amount | $ 158,247 | $ 1,748,362 | $ 1,431,135 | |
Percentage of Amount Assumed to Net | 18.10% | 20.00% | 21.50% | |
Annuity policy fees | $ 13,900 | $ 167,100 | $ 140,700 | |
Predecessor | Accident/health insurance | ||||
Premiums and policy fees: | ||||
Gross Amount | 6,846 | 81,037 | 45,263 | |
Ceded to Other Companies | (4,621) | (42,741) | (20,011) | |
Assumed from Other Companies | 1,809 | 20,804 | 24,291 | |
Net Amount | $ 4,034 | $ 59,100 | $ 49,543 | |
Percentage of Amount Assumed to Net | 44.80% | 35.20% | 49.00% | |
Predecessor | Property and liability insurance | ||||
Premiums and policy fees: | ||||
Gross Amount | $ 19,759 | $ 233,362 | $ 225,327 | |
Ceded to Other Companies | (10,796) | (125,328) | (109,527) | |
Assumed from Other Companies | 666 | 8,675 | 7,978 | |
Net Amount | $ 9,629 | $ 116,709 | $ 123,778 | |
Percentage of Amount Assumed to Net | 6.90% | 7.40% | 6.50% |
SCHEDULE V - VALUATION AND Q158
SCHEDULE V - VALUATION AND QUALIFYING ACCOUNTS (Details) - Allowance for losses on commercial mortgage loans - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended |
Jan. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Successor | |||
Changes in valuation and qualifying accounts | |||
Balance at beginning of period | $ 0 | ||
Additions, Charged to costs and expenses | 2,561 | ||
Additions, Charged to other accounts | 0 | ||
Deductions | (2,561) | ||
Balance at end of period | $ 0 | 0 | |
Predecessor | |||
Changes in valuation and qualifying accounts | |||
Balance at beginning of period | 5,720 | $ 2,500 | $ 3,130 |
Additions, Charged to costs and expenses | (2,359) | 3,265 | |
Additions, Charged to other accounts | 0 | 0 | |
Deductions | (861) | (675) | |
Balance at end of period | $ 2,500 | $ 5,720 |