Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 13, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Transition Report | false | |
Entity File Number | 033-37587 | |
Entity Registrant Name | PRUCO LIFE INSURANCE CO | |
Entity Central Index Key | 0000777917 | |
Entity Incorporation, State or Country Code | AZ | |
Entity Tax Identification Number | 22-1944557 | |
Entity Address, Address Line One | 213 Washington Street | |
Entity Address, City or Town | Newark | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07102 | |
City Area Code | 973 | |
Local Phone Number | 802-6000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 250,000 |
Unaudited Interim Consolidated
Unaudited Interim Consolidated Statements of Financial Position - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Fixed maturities, available for sale, at fair value (amortized cost: 2019 – $5,623,693; 2018 – $5,244,903) | $ 5,956,391 | $ 5,199,595 |
Fixed maturities, trading, at fair value (amortized cost: 2019 – $50,775; 2018 – $44,759) | 49,417 | 41,627 |
Equity securities, at fair value (cost: 2019 – $12,454; 2018 – $31,824) | 17,774 | 36,922 |
Policy loans | 1,263,413 | 1,236,077 |
Short-term Investments | 94 | 0 |
Commercial mortgage and other loans | 1,225,668 | 1,209,150 |
Other invested assets (includes $87,580 and $120,717 measured at fair value at June 30, 2019 and December 31, 2018, respectively) | 394,951 | 377,429 |
Total investments | 8,907,708 | 8,100,800 |
Cash and cash equivalents | 415,497 | 416,840 |
Deferred policy acquisition costs | 1,720,404 | 1,613,922 |
Accrued investment income | 93,167 | 88,278 |
Reinsurance recoverables | 38,946,785 | 34,682,127 |
Receivables from parent and affiliates | 268,854 | 289,580 |
Income Taxes Receivable | 67,498 | 46,102 |
Other assets | 370,240 | 365,219 |
Separate account assets | 132,731,982 | 119,077,916 |
TOTAL ASSETS | 183,522,135 | 164,680,784 |
LIABILITIES | ||
Policyholders’ account balances | 22,058,265 | 22,059,692 |
Future policy benefits | 24,169,202 | 19,476,394 |
Cash collateral for loaned securities | 7,083 | 11,063 |
Payables to parent and affiliates | 146,207 | 229,345 |
Other liabilities | 1,262,599 | 1,093,143 |
Separate account liabilities | 132,731,982 | 119,077,916 |
Total liabilities | 180,375,338 | 161,947,553 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
EQUITY | ||
Common stock ($10 par value; 1,000,000 shares authorized; 250,000 shares issued and outstanding) | 2,500 | 2,500 |
Additional paid-in capital | 1,146,588 | 1,146,592 |
Retained earnings | 1,747,544 | 1,612,435 |
Accumulated other comprehensive income (loss) | 250,165 | (28,296) |
Total equity | 3,146,797 | 2,733,231 |
TOTAL LIABILITIES AND EQUITY | $ 183,522,135 | $ 164,680,784 |
Unaudited Interim Consolidate_2
Unaudited Interim Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, available for sale, amortized cost | $ 5,623,693 | $ 5,244,903 |
Fixed maturities, trading, amortized cost | 50,775 | 44,759 |
Equity securities, cost | 12,454 | 31,824 |
Other invested assets, at fair value | $ 87,580 | $ 120,717 |
Common stock, par value (in dollars per share) | $ 10 | $ 10 |
Common stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, shares issued | 250,000 | 250,000 |
Common stock, shares outstanding | 250,000 | 250,000 |
Unaudited Interim Consolidate_3
Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
REVENUES | ||||
Premiums | $ 12,417 | $ 14,903 | $ 26,411 | $ 22,818 |
Policy charges and fee income | 148,671 | 169,004 | 287,860 | 298,159 |
Net investment income | 105,562 | 81,649 | 198,812 | 159,564 |
Asset administration fees | 3,961 | 3,544 | 7,618 | 7,017 |
Other income | 14,998 | 16,078 | 35,955 | 35,374 |
Realized investment gains (losses), net: | ||||
Other-than-temporary impairments on fixed maturity securities | 0 | (57) | (2,784) | (651) |
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income | 0 | 0 | (379) | 0 |
Other realized investment gains (losses), net | (52,250) | (36,833) | (97,722) | (85,281) |
Total realized investment gains (losses), net | (52,250) | (36,890) | (100,885) | (85,932) |
TOTAL REVENUES | 233,359 | 248,288 | 455,771 | 437,000 |
BENEFITS AND EXPENSES | ||||
Policyholders’ benefits | 46,291 | 40,441 | 85,769 | 92,177 |
Interest credited to policyholders’ account balances | 50,710 | 42,555 | 94,907 | 83,353 |
Amortization of deferred policy acquisition costs | 41,672 | 62,316 | 60,851 | 88,461 |
General, administrative and other expenses | 80,564 | 79,669 | 128,508 | 140,459 |
TOTAL BENEFITS AND EXPENSES | 219,237 | 224,981 | 370,035 | 404,450 |
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURE | 14,122 | 23,307 | 85,736 | 32,550 |
Income tax expense (benefit) | (34,585) | (13,012) | (51,465) | (15,711) |
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE | 48,707 | 36,319 | 137,201 | 48,261 |
Equity in earnings of operating joint venture, net of taxes | (272) | (93) | (978) | (731) |
NET INCOME (LOSS) | 48,435 | 36,226 | 136,223 | 47,530 |
Other comprehensive income (loss), before tax: | ||||
Foreign currency translation adjustments | 958 | (5,667) | 7,007 | (6,590) |
Net unrealized investment gains (losses) | 183,514 | (82,003) | 343,599 | (227,054) |
Total | 184,472 | (87,670) | 350,606 | (233,644) |
Less: Income tax expense (benefit) related to other comprehensive income (loss) | 38,512 | (18,363) | 72,145 | (49,063) |
Other comprehensive income (loss), net of taxes | 145,960 | (69,307) | 278,461 | (184,581) |
Comprehensive income (loss) | $ 194,395 | $ (33,081) | $ 414,684 | $ (137,051) |
Unaudited Interim Consolidate_4
Unaudited Interim Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Equity |
Beginning Balance at Dec. 31, 2017 | $ 2,500 | $ 1,141,092 | $ 1,526,310 | $ 165,346 | $ 2,835,248 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Contributed capital | 5,500 | 5,500 | ||||
Contributed (distributed) capital-parent/child asset transfers | 0 | 0 | ||||
Comprehensive income (loss): | ||||||
Net income (loss) | 11,304 | 11,304 | ||||
Other comprehensive income (loss), net of tax | (115,274) | (115,274) | ||||
Total comprehensive income (loss) | (103,970) | |||||
Ending Balance at Mar. 31, 2018 | 2,500 | 1,146,592 | 1,515,151 | 78,932 | 2,743,175 | |
Beginning Balance at Dec. 31, 2017 | 2,500 | 1,141,092 | 1,526,310 | 165,346 | 2,835,248 | |
Comprehensive income (loss): | ||||||
Net income (loss) | $ 47,530 | |||||
Other comprehensive income (loss), net of tax | (184,581) | |||||
Ending Balance at Jun. 30, 2018 | 2,500 | 1,146,479 | 1,551,327 | 9,675 | 2,709,981 | |
Beginning Balance at Mar. 31, 2018 | 2,500 | 1,146,592 | 1,515,151 | 78,932 | 2,743,175 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Contributed capital | (113) | (113) | ||||
Contributed (distributed) capital-parent/child asset transfers | 0 | 0 | ||||
Comprehensive income (loss): | ||||||
Net income (loss) | 36,226 | 36,226 | 36,226 | |||
Other comprehensive income (loss), net of tax | (69,307) | (69,307) | (69,307) | |||
Total comprehensive income (loss) | (33,081) | |||||
Ending Balance at Jun. 30, 2018 | 2,500 | 1,146,479 | 1,551,327 | 9,675 | 2,709,981 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of adoption | ASU 2016-01 | (1,539) | |||||
Cumulative effect of adoption | ASU 2018-02 | 30,449 | |||||
Cumulative effect of adoption | (27) | |||||
Beginning Balance at Dec. 31, 2018 | 2,500 | 1,146,592 | 1,612,435 | (28,296) | 2,733,231 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Contributed capital | 0 | 0 | ||||
Contributed (distributed) capital-parent/child asset transfers | (4) | (4) | ||||
Comprehensive income (loss): | ||||||
Net income (loss) | 87,788 | 87,788 | ||||
Other comprehensive income (loss), net of tax | 132,501 | 132,501 | ||||
Total comprehensive income (loss) | 220,289 | |||||
Ending Balance at Mar. 31, 2019 | 2,500 | 1,146,588 | 1,699,109 | 104,205 | 2,952,402 | |
Beginning Balance at Dec. 31, 2018 | 2,500 | 1,146,592 | 1,612,435 | (28,296) | 2,733,231 | |
Comprehensive income (loss): | ||||||
Net income (loss) | 136,223 | |||||
Other comprehensive income (loss), net of tax | 278,461 | |||||
Ending Balance at Jun. 30, 2019 | 2,500 | 1,146,588 | 1,747,544 | 250,165 | 3,146,797 | |
Beginning Balance at Mar. 31, 2019 | 2,500 | 1,146,588 | 1,699,109 | 104,205 | 2,952,402 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Contributed capital | 0 | 0 | ||||
Contributed (distributed) capital-parent/child asset transfers | 0 | 0 | ||||
Comprehensive income (loss): | ||||||
Net income (loss) | 48,435 | 48,435 | 48,435 | |||
Other comprehensive income (loss), net of tax | $ 145,960 | 145,960 | 145,960 | |||
Total comprehensive income (loss) | 194,395 | |||||
Ending Balance at Jun. 30, 2019 | $ 2,500 | $ 1,146,588 | $ 1,747,544 | $ 250,165 | $ 3,146,797 |
Unaudited Interim Consolidate_5
Unaudited Interim Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 136,223 | $ 47,530 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Policy charges and fee income | (135,809) | (75,175) |
Interest credited to policyholders’ account balances | 94,907 | 83,353 |
Realized investment (gains) losses, net | 100,885 | 85,932 |
Amortization and other non-cash items | (52,217) | (20,135) |
Change in: | ||
Future policy benefits | 1,388,982 | 870,715 |
Reinsurance recoverables | (1,339,652) | (799,012) |
Accrued investment income | (4,889) | (3,172) |
Net payables to/receivables from parent and affiliates | (69,192) | (41,905) |
Deferred policy acquisition costs | (133,641) | (56,030) |
Income taxes | (93,244) | 22,585 |
Derivatives, net | 98,778 | (2,927) |
Other, net | (32,189) | (127,216) |
Cash flows from (used in) operating activities | (41,058) | (15,457) |
Proceeds from the sale/maturity/prepayment of: | ||
Fixed maturities, available-for-sale | 179,330 | 247,967 |
Fixed maturities, trading | 0 | 0 |
Equity securities | 21,656 | 90 |
Policy loans | 78,129 | 77,733 |
Ceded policy loans | (6,285) | (7,833) |
Short-term investments | 369 | 6,244 |
Commercial mortgage and other loans | 36,892 | 40,542 |
Other invested assets | 10,206 | 7,171 |
Payments for the purchase/origination of: | ||
Fixed maturities, available-for-sale | (566,299) | (524,177) |
Fixed maturities, trading | 6,015 | 0 |
Equity securities | (110) | (5,000) |
Policy loans | (81,818) | (81,882) |
Ceded policy loans | 8,112 | 8,198 |
Short-term investments | (463) | (5,270) |
Commercial mortgage and other loans | (53,190) | (82,690) |
Other invested assets | (34,855) | (44,314) |
Notes receivable from parent and affiliates, net | 9,995 | 4,084 |
Derivatives, net | 729 | (327) |
Other, net | (3,404) | (2,709) |
Cash flows from (used in) investing activities | (407,021) | (362,173) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Policyholders’ account deposits | 2,702,683 | 2,331,075 |
Ceded policyholders’ account deposits | (1,784,740) | (1,572,155) |
Policyholders’ account withdrawals | (1,712,728) | (1,462,569) |
Ceded policyholders’ account withdrawals | 1,241,925 | 956,062 |
Net change in securities sold under agreement to repurchase and cash collateral for loaned securities | (3,980) | (20,031) |
Contributed (distributed) capital - parent/child asset transfers | (5) | 0 |
Net change in financing arrangements (maturities 90 days or less) | 0 | 1,727 |
Drafts outstanding | 3,581 | 3,158 |
Cash flows from (used in) financing activities | 446,736 | 237,267 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (1,343) | (140,363) |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 416,840 | 212,569 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 415,497 | $ 72,206 |
Business and Basis of Presentat
Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | BUSINESS AND BASIS OF PRESENTATION Pruco Life Insurance Company (“Pruco Life”) is a wholly-owned subsidiary of The Prudential Insurance Company of America (“Prudential Insurance”), which in turn is a direct wholly-owned subsidiary of Prudential Financial, Inc. (“Prudential Financial”). Pruco Life is a stock life insurance company organized in 1971 under the laws of the State of Arizona. It is licensed to sell life insurance and annuities in the District of Columbia, Guam and in all states except New York, and sells such products primarily through affiliated and unaffiliated distributors. Pruco Life has one wholly-owned insurance subsidiary, Pruco Life Insurance Company of New Jersey (“PLNJ”) and had one indirect subsidiary formed in 2009 for the purpose of holding certain commercial mortgage loans and other investments, which ceased operations and was dissolved as of December 31, 2018. Pruco Life and its subsidiary are together referred to as the "Company", "we" or "our" and all financial information is shown on a consolidated basis. PLNJ is a stock life insurance company organized in 1982 under the laws of the state of New Jersey. It is licensed to sell life insurance and annuities in New Jersey and New York only. Basis of Presentation The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Intercompany balances and transactions have been eliminated. In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of 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; amortization of deferred sales inducements ("DSI"); valuation of investments including derivatives and the recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; reinsurance recoverables; provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal and regulatory matters. Out of Period Adjustment During the second quarter of 2019, the Company recorded an out of period adjustment resulting in a net increase of $11 million to "Income (loss) from operations before income taxes and equity in earnings of operating joint venture" for the three months ended June 30, 2019. This adjustment relates to investment income from equity method investments that should have been recorded during first quarter of 2019. Management has evaluated the impact of all out of period adjustments, both individually and in the aggregate, and concluded that they are not material to any current or previously reported quarterly or annual financial statements. Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
Significant Accounting Policies
Significant Accounting Policies and Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Pronouncements | SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of Accounting Standards Updates ("ASU") to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASU. ASU listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of the date of this filing. ASU not listed below were assessed and determined to be either not applicable or not material. ASU adopted during the six months ended June 30, 2019 . Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization on Purchased Callable Debt Securities This ASU requires certain premiums on callable debt securities to be amortized to the earliest call date. January 1, 2019 using the modified retrospective method which included cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. Adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. The impact of the cumulative-effect adjustment to retained earnings was immaterial. ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities This ASU makes targeted changes to the existing hedge accounting model to better portray the economics of an entity’s risk management activities and to simplify the use of hedge accounting. The ASU eliminates separate measurement and recording of hedge ineffectiveness. It requires entities to present the earnings effect of the hedging instrument in the same income statement line item in which the hedged item is reported and also requires expanded disclosures. January 1, 2019 using the modified retrospective method which included cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. Adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. The impact of the cumulative-effect adjustment to retained earnings and accumulated other comprehensive income (loss) ("AOCI") related to ineffectiveness of the hedge instruments outstanding at the date of the adoption was immaterial. See Note 4 for additional required disclosures. ASU issued but not yet adopted as of June 30, 2019 — ASU 2018-12 ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, was issued by the FASB on August 15, 2018 and is expected to have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. In July 2019, the FASB made a tentative decision to defer the effective date of this ASU to January 1, 2022 (with early adoption permitted), representing a one year extension from the original effective date of January 1, 2021. A final decision regarding the effective date is expected in the third quarter of 2019. This ASU will impact, at least to some extent, the accounting and disclosure requirements for all long-duration insurance and investment contracts issued by the Company. Outlined below are four key areas of change, although there are other changes not noted below. In addition to the impacts to the balance sheet upon adoption, the Company also expects an impact to how earnings emerge thereafter. ASU 2018-12 Amended Topic Description Method of adoption Effect on the financial statements or other significant matters Cash flow assumptions used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products Requires an entity to review, and if necessary, update the cash flow assumptions used to measure the liability for future policy benefits, for both changes in future assumptions and actual experience, at least annually using a retrospective update method with a cumulative catch-up adjustment recorded in a separate line item in the Consolidated Statements of Operations. An entity may choose one of two adoption methods for the liability for future policy benefits: (1) a modified retrospective transition method whereby the entity will apply the amendments to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or (2) a full retrospective transition method. The options for method of adoption and the impacts of such methods are under assessment. Discount rate assumption used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products Requires discount rate assumptions to be based on an upper-medium grade fixed income instrument yield and will be required to be updated each quarter with the impact recorded through Other Comprehensive Income ("OCI"). As noted above, an entity may choose either a modified retrospective transition method or full retrospective transition method for the liability for future policy benefits. Under either method, for balance sheet remeasurement purposes, the liability for future policy benefits will be remeasured using current discount rates as of the beginning of the earliest period presented with the impact recorded as a cumulative effect adjustment to AOCI. Upon adoption, under either transition method, there will be an adjustment to AOCI as a result of remeasuring in force contract liabilities using current upper-medium grade fixed income instrument yields. The adjustment upon adoption will largely reflect the difference between the discount rate locked-in at contract inception versus current discount rates at transition. The magnitude of such adjustment is currently being assessed. Amortization of DAC and other balances Requires DAC and other balances, such as unearned revenue reserves and DSI, to be amortized on a constant level basis over the expected term of the related contract, independent of expected profitability. An entity may apply one of two adoption methods: (1) a modified retrospective transition method whereby the entity will apply the amendments to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or (2) if an entity chooses a full retrospective transition method for its future policy benefits, as described above, it is required to also use a retrospective transition method for DAC and other balances. The options for method of adoption and the impacts of such methods are under assessment. Under the modified retrospective transition method, the Company would not expect a significant impact to the balance sheet, other than the impact of the removal of any related amounts in AOCI. Market Risk Benefits Requires an entity to measure all market risk benefits (e.g., living benefit and death benefit guarantees associated with variable annuities) at fair value with changes in value attributable to changes in an entity’s non-performance risk ("NPR") to be recognized in OCI. An entity will apply a retrospective transition method which will include a cumulative-effect adjustment on the balance sheet as of the earliest period presented. Upon adoption, the Company expects an impact to retained earnings for the difference between the fair value and carrying value of benefits not currently measured at fair value (e.g., guaranteed minimum death benefits on variable annuities) and an impact from reclassifying the cumulative effect of changes in NPR from retained earnings to AOCI. The magnitude of such adjustments is currently being assessed. Other ASU issued but not yet adopted as of June 30, 2019 Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2016-13 , Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments This ASU provides a new current expected credit loss model to account for credit losses on certain financial assets and off-balance sheet exposures (e.g., loans held for investment, debt securities held to maturity, reinsurance receivables, net investments in leases and loan commitments). The model requires an entity to estimate lifetime credit losses related to such financial assets and exposures based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The standard also modifies the current other-than-temporary impairment standard for available-for-sale debt securities to require the use of an allowance rather than a direct write down of the investment, and replaces existing standard for purchased credit deteriorated loans and debt securities. January 1, 2020 using the modified retrospective method which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. However, prospective application is required for purchased credit deteriorated assets previously accounted for under ASU 310-30 and for debt securities for which an other-than-temporary-impairment was recognized prior to the date of adoption. Early adoption is permitted beginning January 1, 2019. The Company is continuing to develop its expected credit loss models and related systems, processes and controls for assets held on the Consolidated Statement of Financial Position at amortized cost, the most significant of which are the commercial mortgage and other loans. The allowance for credit losses will likely increase when the ASU is adopted to cover expected credit losses over the lifetime of the commercial mortgage and other loans, incorporating reasonable and supportable forecasts and expected changes in future economic conditions. The extent of the impact of adoption of this ASU on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements will depend on various factors including the economic environment and the size and type of the commercial mortgage and other loans held on the date of adoption. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2019 | |
Investments [Abstract] | |
Investments | 3. INVESTMENTS Fixed Maturity Securities The following tables set forth the composition of fixed maturity securities (excluding investments classified as trading), as of the dates indicated: June 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI(3) (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 79,486 $ 3,116 $ 0 $ 82,602 $ 0 Obligations of U.S. states and their political subdivisions 607,413 46,606 0 654,019 0 Foreign government bonds 210,007 18,321 14 228,314 0 U.S. public corporate securities 2,046,091 188,116 5,626 2,228,581 0 U.S. private corporate securities 895,094 37,967 5,825 927,236 0 Foreign public corporate securities 290,982 20,330 1,955 309,357 0 Foreign private corporate securities 904,665 36,202 22,921 917,946 0 Asset-backed securities(1) 139,728 1,481 287 140,922 (79 ) Commercial mortgage-backed securities 366,856 14,736 10 381,582 0 Residential mortgage-backed securities(2) 83,371 2,531 70 85,832 (152 ) Total fixed maturities, available-for-sale $ 5,623,693 $ 369,406 $ 36,708 $ 5,956,391 $ (231 ) (1) Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, auto loans, education loans and other asset types. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (3) Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $0.7 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date. December 31, 2018 Amortized Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI(3) (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 75,049 $ 2,427 $ 6 $ 77,470 $ 0 Obligations of U.S. states and their political subdivisions 609,955 15,154 2,351 622,758 0 Foreign government bonds 208,009 2,137 8,199 201,947 0 U.S. public corporate securities 1,739,860 46,166 54,401 1,731,625 0 U.S. private corporate securities 890,748 11,181 18,591 883,338 0 Foreign public corporate securities 270,428 3,746 12,151 262,023 0 Foreign private corporate securities 857,604 9,797 40,022 827,379 0 Asset-backed securities(1) 156,818 1,528 750 157,596 (122 ) Commercial mortgage-backed securities 347,570 3,353 4,527 346,396 0 Residential mortgage-backed securities(2) 88,862 1,268 1,067 89,063 (177 ) Total fixed maturities, available-for-sale $ 5,244,903 $ 96,757 $ 142,065 $ 5,199,595 $ (299 ) (1) Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (3) Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $0.4 million of net unrealized losses on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date. The following tables set forth the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the dates indicated: June 30, 2019 Less Than Twelve Months Twelve Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Obligations of U.S. states and their political subdivisions 0 0 0 0 0 0 Foreign government bonds 0 0 8,511 14 8,511 14 U.S. public corporate securities 9,171 69 140,380 5,557 149,551 5,626 U.S. private corporate securities 24,292 3,547 54,624 2,278 78,916 5,825 Foreign public corporate securities 815 0 33,148 1,955 33,963 1,955 Foreign private corporate securities 80,817 1,041 184,542 21,880 265,359 22,921 Asset-backed securities 75,417 233 15,424 54 90,841 287 Commercial mortgage-backed securities 0 0 2,961 10 2,961 10 Residential mortgage-backed securities 0 0 7,947 70 7,947 70 Total fixed maturities, available-for-sale $ 190,512 $ 4,890 $ 447,537 $ 31,818 $ 638,049 $ 36,708 December 31, 2018 Less Than Twelve Months Twelve Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 0 $ 630 $ 6 $ 630 $ 6 Obligations of U.S. states and their political subdivisions 124,776 1,571 31,215 780 155,991 2,351 Foreign government bonds 77,055 3,184 59,700 5,015 136,755 8,199 U.S. public corporate securities 784,916 37,635 213,147 16,766 998,063 54,401 U.S. private corporate securities 263,934 9,159 287,031 9,432 550,965 18,591 Foreign public corporate securities 124,764 6,286 72,725 5,865 197,489 12,151 Foreign private corporate securities 424,921 22,605 127,201 17,417 552,122 40,022 Asset-backed securities 112,527 650 6,523 100 119,050 750 Commercial mortgage-backed securities 49,616 434 116,786 4,093 166,402 4,527 Residential mortgage-backed securities 34,249 240 32,432 827 66,681 1,067 Total fixed maturities, available-for-sale $ 1,996,758 $ 81,764 $ 947,390 $ 60,301 $ 2,944,148 $ 142,065 As of June 30, 2019 and December 31, 2018 , the gross unrealized losses on fixed maturity securities were composed of $23.9 million and $121.3 million , respectively, related to “1” highest quality or “2” high quality securities based on the National Association of Insurance Commissioners (“NAIC”) or equivalent rating and $12.8 million and $20.8 million , respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. As of June 30, 2019 , the $31.8 million of gross unrealized losses of twelve months or more were concentrated in the Company’s corporate securities within the finance , energy and consumer non-cyclical sectors. As of December 31, 2018 , the $60.3 million of gross unrealized losses of twelve months or more were concentrated in the Company's corporate securities within the finance , energy and consumer non-cyclical sectors. In accordance with its policy described in Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 , the Company concluded that an adjustment to earnings for OTTI for these fixed maturity securities was not warranted at either June 30, 2019 or December 31, 2018 . These conclusions were based on a detailed analysis of the underlying credit and cash flows on each security. Gross unrealized losses are primarily attributable to general credit spread widening, increases in interest rates and foreign currency exchange rate movements. As of June 30, 2019 , the Company did not intend to sell these securities, and it was not more likely than not that the Company would be required to sell these securities before the anticipated recovery of the remaining amortized cost basis. The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated: June 30, 2019 Amortized Cost Fair Value (in thousands) Fixed maturities, available-for-sale: Due in one year or less $ 162,744 $ 164,151 Due after one year through five years 701,515 707,518 Due after five years through ten years 1,005,349 1,046,082 Due after ten years 3,164,130 3,430,304 Asset-backed securities 139,728 140,922 Commercial mortgage-backed securities 366,856 381,582 Residential mortgage-backed securities 83,371 85,832 Total fixed maturities, available-for-sale $ 5,623,693 $ 5,956,391 Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Asset-backed, commercial mortgage-backed and residential mortgage-backed securities are shown separately in the table above, as they do not have a single maturity date. The following table sets forth the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on impairments of fixed maturities, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 28,231 $ 117,235 $ 53,018 $ 134,087 Proceeds from maturities/prepayments 75,554 85,808 128,429 140,118 Gross investment gains from sales and maturities (1,384 ) (30 ) (435 ) 114 Gross investment losses from sales and maturities (1,105 ) (3,231 ) (3,075 ) (3,590 ) OTTI recognized in earnings(2) 0 (57 ) (3,163 ) (651 ) (1) Includes $2.1 million and $26.2 million of non-cash related proceeds due to the timing of trade settlements for the six months ended June 30, 2019 and 2018 , respectively. (2) Excludes the portion of OTTI amounts remaining in OCI, representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of the impairment. The following table sets forth a rollforward of pre-tax amounts remaining in OCI related to fixed maturity securities with credit loss impairments recognized in earnings, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) Credit loss impairments: Balance, beginning of period $ 3,610 $ 4,344 $ 1,291 $ 4,374 New credit loss impairments 0 0 3,022 0 Increases due to the passage of time on previously recorded credit losses 20 10 30 47 Reductions for securities which matured, paid down, prepaid or were sold during the period (33 ) (1,918 ) (626 ) (1,960 ) Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected (11 ) (454 ) (131 ) (479 ) Balance, end of period $ 3,586 $ 1,982 $ 3,586 $ 1,982 Equity Securities The net change in unrealized gains (losses) from equity securities still held at period end, recorded within “Other income,” was $(0.5) million and $(0.7) million during the three months ended June 30, 2019 and 2018 , respectively, and $0.2 million and $(1.9) million during the six months ended June 30, 2019 and 2018 , respectively. Commercial Mortgage and Other Loans The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: June 30, 2019 December 31, 2018 Amount (in thousands) % of Total Amount (in thousands) % of Total Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 355,719 29.0 % $ 362,811 29.9 % Hospitality 15,853 1.3 16,083 1.3 Industrial 286,521 23.2 263,999 21.8 Office 197,159 16.1 187,450 15.5 Other 129,617 10.6 131,961 10.9 Retail 189,040 15.4 193,473 16.0 Total commercial mortgage loans 1,173,909 95.6 1,155,777 95.4 Agricultural property loans 53,718 4.4 55,438 4.6 Total commercial mortgage and agricultural property loans by property type 1,227,627 100.0 % 1,211,215 100.0 % Allowance for credit losses (1,959 ) (2,065 ) Total commercial mortgage and other loans $ 1,225,668 $ 1,209,150 As of June 30, 2019 , the commercial mortgage and agricultural property loans were secured by properties geographically dispersed throughout the United States (with the largest concentrations in California ( 21% ), Texas ( 14% ) and New York ( 7% )) and included loans secured by properties in Europe ( 6% ), Australia ( 4% ) and Mexico ( 2% ). The following table sets forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated: Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Balance at December 31, 2017 $ 1,728 $ 66 $ 1,794 Addition to (release of) allowance for credit losses 298 (27 ) 271 Charge-offs, net of recoveries 0 0 0 Balance at December 31, 2018 2,026 39 2,065 Addition to (release of) allowance for credit losses (107 ) 1 (106 ) Charge-offs, net of recoveries 0 0 0 Balance at June 30, 2019 $ 1,919 $ 40 $ 1,959 The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans, as of the dates indicated: June 30, 2019 Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance for credit losses: Individually evaluated for impairment $ 0 $ 0 $ 0 Collectively evaluated for impairment 1,919 40 1,959 Total ending balance(1) $ 1,919 $ 40 $ 1,959 Recorded investment(2): Individually evaluated for impairment $ 0 $ 0 $ 0 Collectively evaluated for impairment 1,173,909 53,718 1,227,627 Total ending balance(1) $ 1,173,909 $ 53,718 $ 1,227,627 (1) As of June 30, 2019 , there were no loans acquired with deteriorated credit quality. (2) Recorded investment reflects the carrying value gross of related allowance. December 31, 2018 Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance for credit losses: Individually evaluated for impairment $ 0 $ 0 $ 0 Collectively evaluated for impairment 2,026 39 2,065 Total ending balance(1) $ 2,026 $ 39 $ 2,065 Recorded investment(2): Individually evaluated for impairment $ 0 $ 816 $ 816 Collectively evaluated for impairment 1,155,777 54,622 1,210,399 Total ending balance(1) $ 1,155,777 $ 55,438 $ 1,211,215 (1) As of December 31, 2018 , there were no loans acquired with deteriorated credit quality. (2) Recorded investment reflects the carrying value gross of related allowance. The following tables set forth certain key credit quality indicators for commercial mortgage and agricultural property loans based upon the recorded investment gross of allowance for credit losses, as of the dates indicated: June 30, 2019 Debt Service Coverage Ratio ≥ 1.2X 1.0X to < 1.2X < 1.0X Total (in thousands) Loan-to-Value Ratio: 0%-59.99% $ 714,155 $ 13,715 $ 815 $ 728,685 60%-69.99% 324,198 17,070 0 341,268 70%-79.99% 134,531 22,916 0 157,447 80% or greater 0 0 227 227 Total commercial mortgage and agricultural property loans $ 1,172,884 $ 53,701 $ 1,042 $ 1,227,627 December 31, 2018 Debt Service Coverage Ratio ≥ 1.2X 1.0X to < 1.2X < 1.0X Total (in thousands) Loan-to-Value Ratio: 0%-59.99% $ 696,507 $ 12,771 $ 80 $ 709,358 60%-69.99% 321,586 18,525 0 340,111 70%-79.99% 105,727 27,790 0 133,517 80% or greater 28,000 229 0 28,229 Total commercial mortgage and agricultural property loans $ 1,151,820 $ 59,315 $ 80 $ 1,211,215 The following tables set forth an aging of past due commercial mortgage and other loans based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated: June 30, 2019 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status(2) (in thousands) Commercial mortgage loans $ 1,173,909 $ 0 $ 0 $ 0 $ 1,173,909 $ 0 Agricultural property loans 53,718 0 0 0 53,718 0 Total $ 1,227,627 $ 0 $ 0 $ 0 $ 1,227,627 $ 0 (1) As of June 30, 2019 , there were no loans in this category accruing interest. (2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . December 31, 2018 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status(2) (in thousands) Commercial mortgage loans $ 1,155,777 $ 0 $ 0 $ 0 $ 1,155,777 $ 0 Agricultural property loans 55,438 0 0 0 55,438 0 Total $ 1,211,215 $ 0 $ 0 $ 0 $ 1,211,215 $ 0 (1) As of December 31, 2018 , there were no loans in this category accruing interest. (2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . For the three and six months ended June 30, 2019 and 2018 , there were no commercial mortgage and other loans acquired, other than those through direct origination. For the three months ended June 30, 2019 , there were no commercial mortgage loans sold, and for the six months ended June 30, 2019 , there were $5 million of commercial mortgage and other loans sold. For the three and six months ended June 30, 2018 , there were no commercial mortgage and other loans sold. Other Invested Assets The following table sets forth the composition of “Other invested assets,” as of the dates indicated: June 30, 2019 December 31, 2018 (in thousands) Company’s investment in separate accounts $ 43,497 $ 40,126 LPs/LLCs: Equity method: Private equity 183,095 149,164 Hedge funds 61,090 57,171 Real estate-related 19,753 10,251 Subtotal equity method 263,938 216,586 Fair value: Private equity 57,156 60,118 Hedge funds 778 762 Real estate-related 11,290 9,024 Subtotal fair value 69,224 69,904 Total LPs/LLCs 333,162 286,490 Derivative instruments 18,292 50,813 Total other invested assets $ 394,951 $ 377,429 Net Investment Income The following table sets forth “Net investment income” by investment type, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) Fixed maturities, available-for-sale $ 59,370 $ 55,195 $ 115,636 $ 108,455 Fixed maturities, trading 326 272 634 538 Equity securities, at fair value 221 221 442 442 Commercial mortgage and other loans 13,435 12,303 25,926 24,708 Policy loans 16,766 16,329 32,965 32,233 Short-term investments and cash equivalents 1,839 114 4,150 437 Other invested assets 18,060 1,743 27,971 1,858 Gross investment income 110,017 86,177 207,724 168,671 Less: investment expenses (4,455 ) (4,528 ) (8,912 ) (9,107 ) Net investment income $ 105,562 $ 81,649 $ 198,812 $ 159,564 Realized Investment Gains (Losses), Net The following table sets forth “Realized investment gains (losses), net” by investment type, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) Fixed maturities(1) $ (2,489 ) $ (3,318 ) $ (6,673 ) $ (4,127 ) Commercial mortgage and other loans 99 (125 ) 106 6 LPs/LLCs 0 2 12 849 Derivatives (49,846 ) (33,448 ) (94,323 ) (82,641 ) Short-term investments and cash equivalents (14 ) (1 ) (7 ) (19 ) Realized investment gains (losses), net $ (52,250 ) $ (36,890 ) $ (100,885 ) $ (85,932 ) (1) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading. Net Unrealized Gains (Losses) on Investments within AOCI The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated: June 30, 2019 December 31, 2018 (in thousands) Fixed maturity securities, available-for-sale—with OTTI $ 535 $ (689 ) Fixed maturity securities, available-for-sale—all other 332,163 (44,619 ) Derivatives designated as cash flow hedges(1) 28,757 22,122 Affiliated notes 4,025 810 Other investments 5,067 5,055 Net unrealized gains (losses) on investments $ 370,547 $ (17,321 ) (1) For more information on cash flow hedges, see Note 4 . Repurchase Agreements and Securities Lending In the normal course of business, the Company sells securities under agreements to repurchase and enters into securities lending transactions. As of June 30, 2019 and December 31, 2018 , the Company had no repurchase agreements. The following table sets forth the composition of “Cash collateral for loaned securities,” which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated: June 30, 2019 December 31, 2018 Remaining Contractual Maturities of the Agreements Remaining Contractual Maturities of the Agreements Overnight & Continuous Up to 30 Days Total Overnight & Continuous Up to 30 Days Total (in thousands) U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 0 $ 0 $ 8,169 $ 0 $ 8,169 U.S. public corporate securities 4,636 0 4,636 628 0 628 Foreign public corporate securities 2,447 0 2,447 2,266 0 2,266 Total cash collateral for loaned securities(1) $ 7,083 $ 0 $ 7,083 $ 11,063 $ 0 $ 11,063 (1) The Company did not have any agreements with remaining contractual maturities of thirty days or greater, as of the dates indicated. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS Types of Derivative Instruments and Derivative Strategies The Company utilizes various derivative instruments and strategies to manage its risk. Commonly used derivative instruments include, but are not necessarily limited to: • Interest rate contracts: futures, swaps, options, swaptions, caps and floors • Equity contracts: futures, options and total return swaps • Foreign exchange contracts: futures, options, forwards and swaps • Credit contracts: single and index reference credit default swaps Other types of financial contracts that the Company accounts for as derivatives include: • Embedded derivatives For detailed information on these contracts and the related strategies, see Note 4 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . Primary Risks Managed by Derivatives The table below provides a summary of the gross notional amount and fair value of derivative contracts by the primary underlying risks, excluding embedded derivatives and associated reinsurance recoverables. Many derivative instruments contain multiple underlying risks. The fair value amounts below represent the value of derivative contracts prior to taking into account the netting effects of master netting agreements, cash collateral, and NPR. June 30, 2019 December 31, 2018 Primary Underlying Risk/Instrument Type Fair Value Fair Value Gross Notional Assets Liabilities Gross Notional Assets Liabilities (in thousands) Derivatives Designated as Hedge Accounting Instruments: Currency/Interest Rate Foreign Currency Swaps $ 751,074 $ 43,962 $ (15,484 ) $ 719,476 $ 38,333 $ (16,638 ) Total Derivatives Designated as Hedge Accounting Instruments $ 751,074 $ 43,962 $ (15,484 ) $ 719,476 $ 38,333 $ (16,638 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 596,925 $ 31,580 $ (4,511 ) $ 246,925 $ 15,665 $ (3,174 ) Foreign Currency Foreign Currency Forwards 27,935 262 (100 ) 23,043 277 (20 ) Credit Credit Default Swaps 0 0 0 756 0 (9 ) Currency/Interest Rate Foreign Currency Swaps 128,088 7,836 (1,244 ) 98,363 6,303 (2,109 ) Equity Equity Options 2,306,848 98,700 (32,489 ) 1,981,693 17,312 (4,912 ) Total Derivatives Not Qualifying as Hedge Accounting Instruments $ 3,059,796 $ 138,378 $ (38,344 ) $ 2,350,780 $ 39,557 $ (10,224 ) Total Derivatives(1)(2) $ 3,810,870 $ 182,340 $ (53,828 ) $ 3,070,256 $ 77,890 $ (26,862 ) (1) Excludes embedded derivatives and associated reinsurance recoverables which contain multiple underlying risks. (2) Recorded in “Other invested assets” and “Other liabilities” on the Unaudited Interim Consolidated Statements of Financial Position. The fair value of the embedded derivatives, included in "Future policy benefits," was a net liability of $8,477 million and $5,589 million as of June 30, 2019 and December 31, 2018 , respectively. The fair value of the related reinsurance recoverables, included in "Reinsurance recoverables" or "Other liabilities," was a net asset of $8,486 million and $5,600 million as of June 30, 2019 and December 31, 2018 , respectively. Of these reinsurance recoverables, the fair value related to the living benefits guarantee from Prudential Annuities Life Assurance Corporation ("PALAC") and Prudential Insurance was a net asset of $8,398 million and $5,585 million and the fair value related to the Prudential Premier® Retirement Variable Annuity with Highest Daily Lifetime Income ("HDI") v.3.0 from Union Hamilton Reinsurance, Ltd. ("Union Hamilton"), an external counterparty, was a net asset of $88 million and $15 million as of June 30, 2019 and December 31, 2018 , respectively. See Note 6 for additional information on these reinsurance agreements. The fair value of the embedded derivatives, included in "Policyholders' account balances," was a net liability of $787 million and $13 million as of June 30, 2019 and December 31, 2018 , respectively. There were no related reinsurance recoverables at each respective period. Offsetting Assets and Liabilities The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position. June 30, 2019 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Consolidated Statements of Financial Position Net Amounts Financial Instruments/ Collateral (1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives(1) $ 182,336 $ (163,984 ) $ 18,352 $ (18,352 ) $ 0 Securities purchased under agreements to resell 16,000 0 16,000 (16,000 ) 0 Total Assets $ 198,336 $ (163,984 ) $ 34,352 $ (34,352 ) $ 0 Offsetting of Financial Liabilities: Derivatives(1) $ 53,828 $ (53,828 ) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 53,828 $ (53,828 ) $ 0 $ 0 $ 0 December 31, 2018 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Consolidated Statements of Financial Position Net Amounts Presented in the Consolidated Statements of Financial Position Financial Net Amount (in thousands) Offsetting of Financial Assets: Derivatives(1) $ 77,887 $ (27,078 ) $ 50,809 $ (7,307 ) $ 43,502 Securities purchased under agreements to resell 143,000 0 143,000 (143,000 ) 0 Total Assets $ 220,887 $ (27,078 ) $ 193,809 $ (150,307 ) $ 43,502 Offsetting of Financial Liabilities: Derivatives(1) $ 26,862 $ (26,862 ) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 26,862 $ (26,862 ) $ 0 $ 0 $ 0 (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. For information regarding the rights of offset associated with the derivative assets and liabilities in the table above see “Credit Risk” below and Note 9 . For securities purchased under agreements to resell and securities sold under agreements to repurchase, the Company monitors the value of the securities and maintains collateral, as appropriate, to protect against credit exposure. Where the Company has entered into repurchase and resale agreements with the same counterparty, in the event of default, the Company would generally be permitted to exercise rights of offset. For additional information on the Company’s accounting policy for securities repurchase and resale agreements, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . Cash Flow Hedges The primary derivative instruments used by the Company in its cash flow hedge accounting relationships are currency swaps. These instruments are only designated for hedge accounting in instances where the appropriate criteria are met. The Company does not use futures, options, credit, equity or embedded derivatives in any of its cash flow hedge accounting relationships. The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship. Three Months Ended June 30, 2019 Realized Net Other AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ (88 ) $ 2,211 $ 1,482 $ 13,316 Total cash flow hedges (88 ) 2,211 1,482 13,316 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 7,682 0 0 0 Currency 343 0 0 0 Currency/Interest Rate 1,673 0 4 0 Credit 0 0 0 0 Equity 12,666 0 0 0 Embedded Derivatives (72,122 ) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (49,758 ) 0 4 0 Total $ (49,846 ) $ 2,211 $ 1,486 $ 13,316 Six Months Ended June 30, 2019 Realized Net Other AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ (248 ) $ 4,280 $ (34 ) $ 6,662 Total cash flow hedges (248 ) 4,280 (34 ) 6,662 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 15,297 0 0 0 Currency 323 0 0 0 Currency/Interest Rate 3,103 0 5 0 Credit (1 ) 0 0 0 Equity 41,529 0 0 0 Embedded Derivatives (154,326 ) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (94,075 ) 0 5 0 Total $ (94,323 ) $ 4,280 $ (29 ) $ 6,662 Three Months Ended June 30, 2018(2) Realized Investment Gains (Losses) Net Investment Income Other Income AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 83 $ 1,611 $ 5,710 $ 31,519 Total cash flow hedges 83 1,611 5,710 31,519 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (3,126 ) 0 0 0 Currency 1,221 0 0 0 Currency/Interest Rate 4,844 0 38 0 Credit 0 0 0 0 Equity 7,581 0 0 0 Embedded Derivatives (44,051 ) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (33,531 ) 0 38 0 Total $ (33,448 ) $ 1,611 $ 5,748 $ 31,519 Six Months Ended June 30, 2018(2) Realized Investment Gains (Losses) Net Investment Income Other Income AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ (433 ) $ 3,149 $ 5,046 $ 8,657 Total cash flow hedges (433 ) 3,149 5,046 8,657 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (12,526 ) 0 0 0 Currency 665 0 0 0 Currency/Interest Rate 1,509 0 15 0 Credit (2 ) 0 0 0 Equity 2,824 0 0 0 Embedded Derivatives (74,678 ) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (82,208 ) 0 15 0 Total $ (82,641 ) $ 3,149 $ 5,061 $ 8,657 (1) Net change in AOCI. (2) Prior period amounts have been updated to conform to current period presentation. Presented below is a rollforward of current period cash flow hedges in AOCI before taxes: (in thousands) Balance, December 31, 2018 $ 22,122 Cumulative-effect adjustment from the adoption of ASU 2017-12(1) (27 ) Amount recorded in AOCI Currency/Interest Rate 10,661 Total amount recorded in AOCI 10,661 Amount reclassified from AOCI to income Currency/Interest Rate (3,999 ) Total amount reclassified from AOCI to income (3,999 ) Balance, June 30, 2019 $ 28,757 (1) See Note 2 for details. The changes in fair value of cash flow hedges are deferred in AOCI and are included in "Net unrealized investment gains (losses)" in the Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss); these amounts are then reclassified to earnings when the hedged item affects earnings. Using June 30, 2019 values, it is estimated that a pre-tax gain of $8 million is expected to be reclassified from AOCI to earnings during the subsequent twelve months ending June 30, 2020 , offset by amounts pertaining to the hedged items. The exposures the Company is hedging with these qualifying cash flow hedges include the variability of the payment or receipt of interest or foreign currency amounts on existing financial instruments. There were no material amounts reclassified from AOCI into earnings relating to instances in which the Company discontinued cash flow hedge accounting because the forecasted transaction did not occur by the anticipated date or within the additional time period permitted by the authoritative guidance for the accounting for derivatives and hedging. Credit Derivatives The Company has no exposure from credit derivative positions where it has written credit protection as of June 30, 2019 and December 31, 2018 . The Company has purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio. The Company has outstanding notional amounts of $0.0 million and $1 million reported as of June 30, 2019 and December 31, 2018 , respectively with a fair value of $0.0 million for both periods. Credit Risk The Company is exposed to credit-related losses in the event of non-performance by counterparty to financial derivative transactions with a positive fair value. The Company manages credit risk by entering into derivative transactions with its affiliate, Prudential Global Funding LLC (“PGF”), related to its over-the-counter ("OTC") derivatives. PGF, in turn, manages its credit risk by: (i) entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties governed by master netting agreement, as applicable; (ii) trading through central clearing and OTC parties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single-party credit exposures which are subject to periodic management review. Substantially all of the Company’s derivative agreements have zero thresholds which require daily full collateralization by the party in a liability position. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | FAIR VALUE OF ASSETS AND LIABILITIES Fair Value Measurement - Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows: Level 1 – Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities. Level 2 – Fair value is based on significant inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, and other market observable inputs. Level 3 – Fair value is based on at least one significant unobservable input for the asset or liability. The assets and liabilities in this category may require significant judgment or estimation in determining the fair value. For a discussion of the Company's valuation methodologies for assets and liabilities measured at fair value and the fair value hierarchy, see Note 5 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 . Assets and Liabilities by Hierarchy Level – The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated. As of June 30, 2019 Level 1 Level 2 Level 3 Netting(1) Total (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 48,210 $ 34,392 $ 0 $ 82,602 Obligations of U.S. states and their political subdivisions 0 654,019 0 0 654,019 Foreign government bonds 0 228,149 165 0 228,314 U.S. corporate public securities 0 2,228,578 3 0 2,228,581 U.S. corporate private securities 0 885,288 41,948 0 927,236 Foreign corporate public securities 0 309,136 221 0 309,357 Foreign corporate private securities 0 906,104 11,842 0 917,946 Asset-backed securities(2) 0 138,297 2,625 0 140,922 Commercial mortgage-backed securities 0 381,582 0 0 381,582 Residential mortgage-backed securities 0 84,160 1,672 0 85,832 Subtotal 0 5,863,523 92,868 0 5,956,391 Fixed maturities, trading 0 48,812 605 0 49,417 Equity securities 116 553 17,105 0 17,774 Short-term investments 0 0 94 0 94 Cash equivalents 0 356,634 0 0 356,634 Other invested assets(3) 0 182,336 4 (163,984 ) 18,356 Reinsurance recoverables 0 0 8,485,905 0 8,485,905 Receivables from parent and affiliates 0 121,567 6,295 0 127,862 Subtotal excluding separate account assets 116 6,573,425 8,602,876 (163,984 ) 15,012,433 Separate account assets(4)(5) 0 128,180,358 0 0 128,180,358 Total assets $ 116 $ 134,753,783 $ 8,602,876 $ (163,984 ) $ 143,192,791 Future policy benefits(6) $ 0 $ 0 $ 8,476,541 $ 0 $ 8,476,541 Policyholders' account balances 0 0 786,969 0 786,969 Payables to parent and affiliates 0 53,828 0 (53,828 ) 0 Total liabilities $ 0 $ 53,828 $ 9,263,510 $ (53,828 ) $ 9,263,510 As of December 31, 2018 Level 1 Level 2 Level 3 Netting(1) Total (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 47,654 $ 29,816 $ 0 $ 77,470 Obligations of U.S. states and their political subdivisions 0 622,758 0 0 622,758 Foreign government bonds 0 201,947 0 0 201,947 U.S. corporate public securities 0 1,731,623 2 0 1,731,625 U.S. corporate private securities 0 838,497 44,841 0 883,338 Foreign corporate public securities 0 262,023 0 0 262,023 Foreign corporate private securities 0 815,634 11,745 0 827,379 Asset-backed securities(2) 0 151,040 6,556 0 157,596 Commercial mortgage-backed securities 0 346,396 0 0 346,396 Residential mortgage-backed securities 0 89,063 0 0 89,063 Subtotal 0 5,106,635 92,960 0 5,199,595 Fixed maturities, trading 0 41,627 0 0 41,627 Equity securities 131 20,794 15,997 0 36,922 Short-term investments 0 0 0 0 0 Cash equivalents 69,903 147,043 0 0 216,946 Other invested assets(3) 0 77,886 4 (27,078 ) 50,812 Reinsurance recoverables 0 0 5,600,008 0 5,600,008 Receivables from parent and affiliates 0 125,381 9,261 0 134,642 Subtotal excluding separate account assets 70,034 5,519,366 5,718,230 (27,078 ) 11,280,552 Separate account assets(4)(5) 0 114,947,872 0 0 114,947,872 Total assets $ 70,034 $ 120,467,238 $ 5,718,230 $ (27,078 ) $ 126,228,424 Future policy benefits(6) $ 0 $ 0 $ 5,588,840 $ 0 $ 5,588,840 Policyholders' account balances 0 0 13,015 0 13,015 Payables to parent and affiliates 0 26,862 0 (26,862 ) 0 Total liabilities $ 0 $ 26,862 $ 5,601,855 $ (26,862 ) $ 5,601,855 (1) “Netting” amounts represent cash collateral of $110.2 million and $0.2 million as of June 30, 2019 and December 31, 2018 , respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements. (2) Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (3) Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value ("NAV") per share (or its equivalent) as a practical expedient. As of June 30, 2019 and December 31, 2018 , the fair values of such investments were $69 million and $70 million , respectively. (4) Separate account assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate, hedge funds and a corporate owned life insurance fund, for which fair value is measured at NAV per share (or its equivalent). As of June 30, 2019 and December 31, 2018 , the fair value of such investments was $4,552 million and $4,130 million , respectively. (5) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company's Unaudited Interim Consolidated Statements of Financial Position. (6) As of June 30, 2019 , the net embedded derivative liability position of $8,477 million includes $519 million of embedded derivatives in an asset position and $8,996 million of embedded derivatives in a liability position. As of December 31, 2018 , the net embedded derivative liability position of $5,589 million includes $633 million of embedded derivatives in an asset position and $6,222 million of embedded derivatives in a liability position. Quantitative Information Regarding Internally Priced Level 3 Assets and Liabilities – The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities. As of June 30, 2019 Fair Value Valuation Techniques Unobservable Inputs Minimum Maximum Weighted Average Impact of Increase in Input on Fair Value(1) (in thousands) Assets: Corporate securities(2) $ 23,086 Discounted cash flow Discount rate 8.34 % 15.17 % 12.03 % Decrease Market Comparables EBITDA multiples(3) 5.7 X 5.7 X 5.7 X Increase Liquidation Liquidation value 3.98 % 3.98 % 3.98 % Increase Reinsurance recoverables $ 8,485,905 Fair values are determined using the same unobservable inputs as future policy benefits. Liabilities: Future policy benefits(4) $ 8,476,541 Discounted cash flow Lapse rate(6) 1 % 18 % Decrease Spread over LIBOR(7) 0.16 % 1.24 % Decrease Utilization rate(8) 43 % 97 % Increase Withdrawal rate See table footnote (9) below Mortality rate(10) 0 % 15 % Decrease Equity volatility curve 13 % 23 % Increase Policyholders' account balances(5) $ 786,969 Discounted cash flow Lapse rate(6) 1 % 6 % Decrease Spread over LIBOR(7) 0.16 % 1.24 % Decrease Mortality rate(10) 0 % 24 % Decrease Equity volatility curve 10 % 23 % Increase As of December 31, 2018 Fair Value Valuation Techniques Unobservable Inputs Minimum Maximum Weighted Average Impact of Increase in Input on Fair Value(1) (in thousands) Assets: Corporate securities(2) $ 31,503 Discounted cash flow Discount rate 7 % 20 % 10.21 % Decrease Liquidation Liquidation value 40.71 % 40.71 % 40.71 % Increase Reinsurance recoverables $ 5,600,008 Fair values are determined using the same unobservable inputs as future policy benefits. Liabilities: Future policy benefits(4) $ 5,588,840 Discounted cash flow Lapse rate(6) 1 % 13 % Decrease Spread over LIBOR(7) 0.36 % 1.60 % Decrease Utilization rate(8) 50 % 97 % Increase Withdrawal rate See table footnote (9) below Mortality rate(10) 0 % 15 % Decrease Equity volatility curve 18 % 22 % Increase (1) Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table. (2) Includes assets classified as fixed maturities, available-for-sale and fixed maturities trading. (3) Represents multiples of earnings before interest, taxes, depreciation and amortization ("EBITDA"), and are amounts used when the Company has determined that market participants would use such multiples when valuing the investments. (4) Future policy benefits primarily represent general account liabilities for the living benefit features of the Company’s variable annuity contracts which are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (5) Policyholders’ account balances primarily represent general account liabilities for the index-linked interest credited on certain of the Company’s life products that are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (6) Lapse rates for contracts with living benefit guarantees are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates for contracts with index-linked crediting guarantees may be adjusted at the contract level based on the applicability of any surrender charges, product type, and market related factors such as interest rates. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. For any given contract, lapse rates vary throughout the period over which cash flows are projected for the purposes of valuing these embedded derivatives. (7) The spread over the London Inter-Bank Offered Rate ("LIBOR") swap curve represents the premium added to the proxy for the risk-free rate (LIBOR) to reflect the Company's estimates of rates that a market participant would use to value the living benefits in both the accumulation and payout phases and index-linked interest crediting guarantees. This spread includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because funding agreements, living benefit guarantees, and index-linked interest crediting guarantees are insurance liabilities and are therefore senior to debt. (8) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits. (9) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of June 30, 2019 and December 31, 2018 , the minimum withdrawal rate assumption is 78% and the maximum withdrawal rate assumption may be greater than 100% . The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%. (10) The range reflects the mortality rates for the vast majority of business with living benefits and other contracts, with policyholders ranging from 45 to 90 years old. While the majority of living benefits have a minimum age requirement, certain other contracts do not have an age restriction. This results in contractholders with mortality rates approaching 0% for certain benefits. Mortality rates vary by product, age, and duration. A mortality improvement assumption is also incorporated into the overall mortality table. Interrelationships Between Unobservable Inputs – In addition to the sensitivities of fair value measurements to changes in each unobservable input in isolation, as reflected in the table above, interrelationships between these inputs may also exist, such that a change in one unobservable input may give rise to a change in another, or multiple, inputs. For the discussion of the relationships between unobservable inputs as well as market factors that may affect the range of inputs used in the valuation of Level 3 assets and liabilities, see Note 5 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 . Changes in Level 3 Assets and Liabilities – The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. All transfers are generally reported at the value as of the beginning of the quarter in which transfers occur for any such assets still held at the end of the quarter. Three Months Ended June 30, 2019 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thousands) Fixed maturities, available-for-sale: U.S. government $ 32,188 $ 0 $ 2,204 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 34,392 $ 0 Foreign government 164 1 0 0 0 0 0 0 0 165 0 Corporate securities(4) 54,960 234 791 (25 ) 0 (2,584 ) (1 ) 639 0 54,014 0 Structured securities(5) 79,804 42 0 (1 ) 0 (177 ) 0 1,700 (77,071 ) 4,297 0 Other assets: Fixed maturities, trading 0 (146 ) 0 0 0 0 0 751 0 605 (146 ) Equity securities 15,991 1,114 0 0 0 0 0 0 0 17,105 1,114 Other invested assets 4 0 0 0 0 0 0 0 0 4 0 Short-term investments 0 0 463 0 0 (369 ) 0 0 0 94 0 Reinsurance recoverables 6,468,704 1,773,188 244,013 0 0 0 0 0 0 8,485,905 1,833,209 Receivables from parent and affiliates 7,792 82 0 0 0 (1,579 ) 0 0 0 6,295 0 Liabilities: Future policy benefits (6,459,377 ) (1,775,097 ) 0 0 (242,067 ) 0 0 0 0 (8,476,541 ) (1,836,960 ) Policyholders' account balances(6) (53,136 ) (691,927 ) 0 0 (41,906 ) 0 0 0 0 (786,969 ) (691,376 ) Three Months Ended June 30, 2019 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) (in thousands) Fixed maturities, available-for-sale $ (665 ) $ 0 $ 678 $ 264 $ 0 $ 0 Other assets: Fixed maturities, trading 0 (146 ) 0 0 0 (146 ) Equity securities 0 1,114 0 0 0 1,114 Other invested assets 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 Reinsurance recoverables 1,773,188 0 0 0 1,833,209 0 Receivables from parent and affiliates 0 0 0 82 0 0 Liabilities: Future policy benefits (1,775,097 ) 0 0 0 (1,836,960 ) 0 Policyholders' account balances (691,927 ) 0 0 0 (691,376 ) 0 Six Months Ended June 30, 2019 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thousands) Fixed maturities, available-for-sale: U.S. government $ 29,816 $ 0 $ 4,576 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 34,392 $ 0 Foreign government 0 6 0 0 0 0 0 159 0 165 0 Corporate securities(4) 56,588 (3,178 ) 2,122 (53 ) 0 (9,681 ) 0 8,216 0 54,014 (3,163 ) Structured securities(5) 6,556 1,310 0 (2 ) 0 (4,156 ) 0 77,660 (77,071 ) 4,297 0 Other assets: Fixed maturities, trading 0 (146 ) 0 0 0 0 0 751 0 605 (146 ) Equity securities 15,997 1,108 0 0 0 0 0 0 0 17,105 1,108 Other invested assets 4 0 0 0 0 0 0 0 0 4 0 Short-term investments 0 0 463 0 0 (369 ) 0 0 0 94 0 Reinsurance recoverables 5,600,008 2,406,506 479,391 0 0 0 0 0 0 8,485,905 2,504,883 Receivables from parent and affiliates 9,261 193 0 0 0 (3,159 ) 0 0 0 6,295 0 Liabilities: Future policy benefits (5,588,840 ) (2,412,199 ) 0 0 (475,502 ) 0 0 0 0 (8,476,541 ) (2,510,576 ) Policyholders' account balances(6) (13,015 ) (725,541 ) 0 0 (48,413 ) 0 0 0 0 (786,969 ) (724,989 ) Six Months Ended June 30, 2019 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) (in thousands) Fixed maturities, available-for-sale $ (3,067 ) $ 0 $ 842 $ 363 $ (3,163 ) $ 0 Other assets: Fixed maturities, trading 0 (146 ) 0 0 0 (146 ) Equity securities 0 1,108 0 0 0 1,108 Other invested assets 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 Reinsurance recoverables 2,406,506 0 0 0 2,504,883 0 Receivables from parent and affiliates 0 0 0 193 0 0 Liabilities: Future policy benefits (2,412,199 ) 0 0 0 (2,510,576 ) 0 Policyholders' account balances (725,541 ) 0 0 0 (724,989 ) 0 Three Months Ended June 30, 2018(7) Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thousands) Fixed maturities, available-for-sale: U.S. government $ 21,569 $ 0 $ 2,842 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 24,411 $ 0 Foreign government 166 (6 ) 0 0 0 0 0 0 160 0 Corporate securities(4) 72,615 (1,647 ) 3,125 (201 ) 0 (15,501 ) (1 ) 4,028 0 62,418 (49 ) Structured securities(5) 94,873 (184 ) 10,648 (196 ) 0 (4,871 ) 0 0 (80,609 ) 19,661 0 Other assets: Equity securities 17,039 (414 ) 0 0 0 0 0 0 0 16,625 (414 ) Other invested assets 10 (5 ) 0 0 0 0 0 0 0 5 (5 ) Short-term investments 1,194 0 1,870 0 0 (2,731 ) 0 0 0 333 (1 ) Cash equivalents 0 0 2,550 0 0 (1,986 ) 0 0 0 564 0 Reinsurance recoverables 4,214,114 (491,557 ) 221,324 0 0 0 0 0 0 3,943,881 (441,257 ) Receivables from parent and affiliates 6,531 0 0 0 0 0 0 0 (6,531 ) 0 0 Liabilities: Future policy benefits (4,191,373 ) 502,643 0 0 (228,243 ) 0 0 0 0 (3,916,973 ) 459,185 Policyholders' account balances(6) (39,516 ) (7,859 ) 0 0 0 5,429 0 0 0 (41,946 ) (7,860 ) Other liabilities (15,955 ) (10,535 ) 8,880 0 0 0 0 0 0 (17,610 ) (10,590 ) Three Months Ended June 30, 2018(7) Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) (in thousands) Fixed maturities, available-for-sale $ (303 ) $ 0 $ (1,620 ) $ 86 $ (49 ) $ 0 Other assets: Equity securities 0 (414 ) 0 0 0 (414 ) Other invested assets (5 ) 0 0 0 (5 ) 0 Short-term investments 0 0 0 0 (1 ) 0 Reinsurance recoverables (491,557 ) 0 0 0 (441,257 ) 0 Receivables from parent and affiliates 0 0 0 0 0 0 Liabilities: Future policy benefits 502,643 0 0 0 459,185 0 Policyholders' account balances (7,859 ) 0 0 0 (7,860 ) 0 Other liabilities (10,535 ) 0 0 0 (10,590 ) 0 Six Months Ended June 30, 2018(7) Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thousands) Fixed maturities, available-for-sale: U.S. government $ 19,204 $ 0 $ 5,207 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 24,411 $ 0 Foreign government 0 (14 ) 0 0 0 0 174 0 0 160 0 Corporate securities(4) 75,421 (711 ) 4,147 (201 ) 0 (20,071 ) 14 4,028 (209 ) 62,418 (75 ) Structured securities(5) 111,028 (53 ) 10,838 (196 ) 0 (8,066 ) 0 13,513 (107,403 ) 19,661 0 Other assets: Equity securities 17,525 (900 ) 0 0 0 0 0 0 0 16,625 (900 ) Other invested assets 0 (4 ) 0 0 0 0 0 9 0 5 (4 ) Short-term investments 1,339 (18 ) 5,270 0 0 (6,244 ) (14 ) 0 0 333 (19 ) Cash equivalents 0 0 2,550 0 0 (1,986 ) 0 0 0 564 0 Reinsurance recoverables 5,457,649 (1,954,549 ) 440,781 0 0 0 0 0 0 3,943,881 (1,844,015 ) Receivables from parent and affiliates 0 (20 ) 0 0 0 0 0 6,551 (6,531 ) 0 0 Liabilities: Future policy benefits (5,452,583 ) 1,990,198 0 0 (454,588 ) 0 0 0 0 (3,916,973 ) 1,879,579 Policyholders' account balances(6) (46,651 ) (2,846 ) 0 0 0 7,551 0 0 0 (41,946 ) (2,847 ) Other liabilities 0 (35,315 ) 17,705 0 0 0 0 0 0 (17,610 ) (35,231 ) Six Months Ended June 30, 2018(7) Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) (in thousands) Fixed maturities, available-for-sale $ (235 ) $ 0 $ (706 ) $ 163 $ (75 ) $ 0 Other assets: Equity securities 0 (900 ) 0 0 0 (900 ) Other invested assets (4 ) 0 0 0 (4 ) 0 Short-term investments (18 ) 0 0 0 (19 ) 0 Reinsurance recoverables (1,954,549 ) 0 0 0 (1,844,015 ) 0 Receivables from parent and affiliates 0 (20 ) 0 0 0 0 Liabilities: Future policy benefits 1,990,198 0 0 0 1,879,579 0 Policyholders' account balances (2,846 ) 0 0 0 (2,847 ) 0 Other liabilities (35,315 ) 0 0 0 (35,231 ) 0 (1) Realized investment gains (losses) on future policy benefits and reinsurance recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts. (2) Other includes reclassifications of certain assets and liabilities between reporting categories. (3) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts. (4) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. (5) Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities. (6) Issuances and settlements for Policyholders' account balances are presented net in the rollforward. (7) Prior period amounts have been updated to conform to current period presentation. Fair Value of Financial Instruments The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Unaudited Interim Consolidated Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value. June 30, 2019 Fair Value Carrying Amount(1) Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 1,279,335 $ 1,279,335 $ 1,225,668 Policy loans 0 0 1,263,413 1,263,413 1,263,413 Cash and cash equivalents 42,863 16,000 0 58,863 58,863 Accrued investment income 0 93,167 0 93,167 93,167 Receivables from parent and affiliates 0 140,992 0 140,992 140,992 Other assets 0 29,764 0 29,764 29,764 Total assets $ 42,863 $ 279,923 $ 2,542,748 $ 2,865,534 $ 2,811,867 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 1,225,951 $ 278,802 $ 1,504,753 $ 1,505,223 Cash collateral for loaned securities 0 7,083 0 7,083 7,083 Payables to parent and affiliates 0 146,207 0 146,207 146,207 Other liabilities 0 341,498 0 341,498 341,498 Total liabilities $ 0 $ 1,720,739 $ 278,802 $ 1,999,541 $ 2,000,011 December 31, 2018 Fair Value Carrying Amount(1) Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 1,214,350 $ 1,214,350 $ 1,209,150 Policy loans 0 0 1,236,077 1,236,077 1,236,077 Cash and cash equivalents 56,894 143,000 0 199,894 199,894 Accrued investment income 0 88,278 0 88,278 88,278 Receivables from parent and affiliates 0 154,938 0 154,938 154,938 Other assets 0 28,950 0 28,950 28,950 Total assets $ 56,894 $ 415,166 $ 2,450,427 $ 2,922,487 $ 2,917,287 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 1,206,747 $ 272,322 $ 1,479,069 $ 1,486,929 Cash collateral for loaned securities 0 11,063 0 11,063 11,063 Payables to parent and affiliates 0 229,345 0 229,345 229,345 Other liabilities 0 372,997 0 372,997 372,997 Total liabilities $ 0 $ 1,820,152 $ 272,322 $ 2,092,474 $ 2,100,334 (1) Carrying values presented herein differ from those in the Company’s Unaudited Interim Consolidated Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or are out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company uses a full year projected effective tax rate approach to calculate year-to-date taxes. In addition, certain items impacting total income tax expense are recorded in the periods in which they occur. The projected effective tax rate is the ratio of projected "Income tax expense (benefit)" divided by projected "Income (loss) from operations before income taxes and equity in earnings of operating joint venture." Taxes attributable to the operating joint venture are recorded within "Equity in earnings of operating joint venture, net of taxes." The interim period tax expense (or benefit) is the difference between the year-to-date income tax provision and the amounts reported for the previous interim periods of the fiscal year. The Company's income tax provision, on a consolidated basis, amounted to an income tax benefit of $(51.5) million , or (60.03)% of income (loss) from operations before income taxes and equity in earnings of operating joint venture, in the first six months of 2019, compared to $(15.7) million , or (47.60)% , in the first six months of 2018. The Company's current and prior effective tax rates differed from the U.S. statutory tax rate of 21% primarily due to non-taxable investment income and tax credits. |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2019 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | REINSURANCE The Company participates in reinsurance with its affiliates Prudential Life Insurance Company of Taiwan Inc. (“Prudential of Taiwan”), Prudential Arizona Reinsurance Captive Company (“PARCC”), Prudential Arizona Reinsurance Term Company (“PAR Term”), Prudential Arizona Reinsurance Universal Company (“PAR U”), Prudential Universal Reinsurance Company ("PURC"), Prudential Term Reinsurance Company (“Term Re”), PALAC, Gibraltar Universal Life Reinsurance Company ("GUL Re") and Dryden Arizona Reinsurance Term Company (“DART”), its parent company Prudential Insurance, as well as third parties. The reinsurance agreements provide risk diversification and additional capacity for future growth, limit the maximum net loss potential, manage statutory capital, and facilitate the Company's capital market hedging program. Life reinsurance is accomplished through various plans of reinsurance, primarily yearly renewable term and coinsurance. 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 the Company under the terms of the reinsurance agreements. The Company believes a material reinsurance liability resulting from such inability of reinsurers to meet their obligations is unlikely. Reserves related to reinsured long-duration contracts are accounted for using assumptions consistent with those used to account for the underlying contracts. Amounts recoverable from reinsurers for long-duration reinsurance arrangements are estimated in a manner consistent with the claim liabilities and policy benefits associated with the reinsured policies. Reinsurance policy charges and fee income ceded for universal life and variable annuity products are accounted for as a reduction of policy charges and fee income. Reinsurance premiums ceded for term insurance products are accounted for as a reduction of premiums. Realized investment gains and losses include the impact of reinsurance agreements, particularly reinsurance agreements involving living benefit guarantees. The Company has entered into reinsurance agreements to transfer the risk related to the living benefit guarantees on variable annuities to PALAC excluding the PLNJ business which was reinsured to Prudential Insurance. These reinsurance agreements are derivatives and have been accounted for in the same manner as embedded derivatives and the changes in the fair value of these derivatives are recognized through “Realized investment gains (losses), net”. See Note 4 for additional information related to the accounting for embedded derivatives. Reinsurance amounts included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as of June 30, 2019 and December 31, 2018 were as follows: June 30, 2019 December 31, 2018 (in thousands) Reinsurance recoverables $ 38,946,785 $ 34,682,127 Policy loans (134,453 ) (130,502 ) Deferred policy acquisition costs (6,912,973 ) (7,267,847 ) Deferred sales inducements (557,073 ) (562,052 ) Other assets(1) 165,706 185,573 Policyholders’ account balances 4,959,484 5,004,112 Future policy benefits 3,914,630 3,376,048 Other liabilities(2) 787,950 621,856 (1) “Other assets” includes $0.1 million of unaffiliated activity as of both June 30, 2019 and December 31, 2018 . (2) “Other liabilities” includes $35 million and $27 million of unaffiliated activity as of June 30, 2019 and December 31, 2018 , respectively. The reinsurance recoverables by counterparty are broken out below: June 30, 2019 December 31, 2018 (in thousands) PAR U $ 11,963,017 $ 11,444,032 PALAC 11,483,993 8,828,190 PURC 4,371,948 4,127,455 PARCC 2,480,256 2,527,690 GUL Re 2,110,403 2,017,810 PAR Term 1,726,036 1,678,745 Prudential Insurance 1,624,532 1,226,917 Prudential of Taiwan 1,426,279 1,414,669 Term Re 1,417,733 1,259,141 DART 220,163 119,946 Unaffiliated 122,425 37,532 Total reinsurance recoverables $ 38,946,785 $ 34,682,127 Reinsurance amounts, included in the Company’s Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, were as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) Premiums: Direct $ 476,986 $ 449,613 $ 939,257 $ 891,568 Assumed(1) 52 58 106 118 Ceded(2) (464,621 ) (434,768 ) (912,952 ) (868,868 ) Net premiums 12,417 14,903 26,411 22,818 Policy charges and fee income: Direct 1,106,725 717,264 1,959,920 1,563,511 Assumed 128,748 122,695 255,707 244,404 Ceded(3) (1,086,802 ) (670,955 ) (1,927,767 ) (1,509,756 ) Net policy charges and fee income 148,671 169,004 287,860 298,159 Net investment income: Direct 106,949 82,957 201,507 162,106 Assumed 407 385 803 758 Ceded (1,794 ) (1,693 ) (3,498 ) (3,300 ) Net investment income 105,562 81,649 198,812 159,564 Asset administration fees: Direct 87,951 86,695 171,819 173,728 Assumed 0 0 0 0 Ceded (83,990 ) (83,151 ) (164,201 ) (166,711 ) Net asset administration fees 3,961 3,544 7,618 7,017 Other income: Direct 20,030 12,093 39,828 29,346 Assumed(4) (1,271 ) (100 ) (1,471 ) (190 ) Ceded (39 ) 226 (62 ) 173 Amortization of reinsurance income (3,722 ) 3,859 (2,340 ) 6,045 Net other income 14,998 16,078 35,955 35,374 Realized investment gains (losses), net: Direct (1,783,941 ) 503,522 (2,419,452 ) 1,978,284 Assumed 0 0 0 0 Ceded(5) 1,731,691 (540,412 ) 2,318,567 (2,064,216 ) Realized investment gains (losses), net (52,250 ) (36,890 ) (100,885 ) (85,932 ) Policyholders’ benefits (including change in reserves): Direct 1,150,985 644,501 1,797,296 1,296,173 Assumed(6) 282,961 146,405 494,711 259,207 Ceded(7) (1,387,655 ) (750,465 ) (2,206,238 ) (1,463,203 ) Net policyholders’ benefits (including change in reserves) 46,291 40,441 85,769 92,177 Interest credited to policyholders’ account balances: Direct 118,420 121,478 213,111 246,212 Assumed 34,512 34,849 65,169 71,366 Ceded (102,222 ) (113,772 ) (183,373 ) (234,225 ) Net interest credited to policyholders’ account balances 50,710 42,555 94,907 83,353 Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization (573,978 ) (345,280 ) (917,993 ) (779,192 ) (1) "Premiums assumed" includes $0 million of unaffiliated activity for both the three months ended June 30, 2019 and 2018 , respectively and $0.1 million for both the six months ended June 30, 2019 and 2018 , respectively. (2) "Premiums ceded" includes $(0.1) million and $0 million of unaffiliated activity for the three months ended June 30, 2019 , and 2018 respectively and $(0.2) million and $0 million for the six months ended June 30, 2019 and 2018 , respectively. (3) "Policy charges and fee income ceded" includes $(7) million and $(4) million of unaffiliated activity for the three months ended June 30, 2019 and 2018 , respectively, and $(12) million and $(6) million for the six months ended June 30, 2019 and 2018, respectively. (4) "Other income assumed" includes $(1) million and $(0.1) million of unaffiliated activity for the three months ended June 30, 2019 and 2018 , respectively, and $(2) million and $(0.2) million for the six months ended June 30, 2019 and 2018, respectively. (5) “Realized investment gains (losses), net ceded” includes $42 million and $(10) million of unaffiliated activity for the three months ended June 30, 2019 and 2018 , respectively, and $56 million and $(48) million for the six months ended June 30, 2019 and 2018, respectively. (6) "Policyholders' benefits (including change in reserves) assumed" includes $0 million of unaffiliated activity for both the three months ended June 30, 2019 and 2018 , respectively, and $(0.2) million and $(0.1) million for the six months ended June 30, 2019 , and 2018, respectively. (7) "Policyholders' benefits (including change in reserves) ceded" includes $(2) million of unaffiliated activity for both the three months ended June 30, 2019 and 2018 , and $(4) million for both the six months ended June 30, 2019 and 2018. The gross and net amounts of life insurance face amount in force as of June 30, 2019 and 2018 were as follows: 2019 2018 (in thousands) Direct gross life insurance face amount in force $ 966,542,451 $ 908,332,587 Assumed gross life insurance face amount in force 40,382,452 41,317,052 Reinsurance ceded (925,430,727 ) (876,823,569 ) Net life insurance face amount in force $ 81,494,176 $ 72,826,070 Information regarding significant affiliated reinsurance agreements is described below. PAR U Pruco Life reinsures an amount equal to 70% of all the risks associated with Universal Protector policies having no-lapse guarantees as well as certain of its universal policies, with effective dates prior to January 1, 2011 . Effective July 1, 2012 , PLNJ reinsures an amount equal to 95% of all the risks associated with Universal Protector policies having no-lapse guarantees as well as certain of its universal policies, excluding those policies that are subject to principles-based reserving. On January 2, 2013 , Pruco Life began to assume Guaranteed Universal Life ("GUL") business from Prudential Insurance in connection with the acquisition of The Hartford Life Business. The GUL business assumed from Prudential Insurance was subsequently retroceded to PAR U. PALAC Effective April 1, 2016 , the Company entered into a reinsurance agreement to reinsure its variable annuity base contracts, along with the living benefit guarantees to PALAC, excluding the PLNJ business, which was reinsured to Prudential Insurance. This reinsurance agreement covers new and in force business and excludes business reinsured externally. PURC Pruco Life reinsures an amount equal to 70% of all the risks associated with its Universal Protector policies having no-lapse guarantees as well as certain of its universal policies, with effective dates from January 1, 2011 through December 31, 2013 , with PURC and 95% of all the risks associated with Universal Protector policies having no-lapse guarantees, as well as certain of its universal policies, with effective dates from January 1, 2014 through December 31, 2016 . PARCC The Company reinsures 90% of the risks under its term life insurance policies, with effective dates prior to January 1, 2010 through an automatic coinsurance agreement with PARCC. GUL Re Effective January 1, 2017 , Pruco Life entered into an automatic coinsurance agreement with GUL Re to reinsure an amount equal to 95% of all the risks associated with Universal Protector policies having no-lapse guarantees, as well as certain of its universal policies, with effective dates on or after January 1, 2017 , excluding those policies that are subject to principles-based reserving. Effective July 1, 2017 , Pruco Life amended this agreement to include 30% of Universal Protector policies having no-lapse guarantees as well as certain of its universal policies with effective dates prior to January 1, 2014 . PAR Term The Company reinsures 95% of the risks under its term life insurance policies with effective dates January 1, 2010 through December 31, 2013 , through an automatic coinsurance agreement with PAR Term. Prudential of Taiwan On January 31, 2001 , Pruco Life transferred all of its assets and liabilities associated with its Taiwanese branch, including its Taiwanese insurance book of business, to Prudential of Taiwan, an affiliated company. The mechanism used to transfer this block of business in Taiwan is referred to as a “full acquisition and assumption” transaction. Under this mechanism, Pruco Life is jointly liable with Prudential of Taiwan for two years from the giving of notice to all obligees for all matured obligations and for two years after the maturity date of not-yet-matured obligations. Prudential of Taiwan is also contractually liable, under indemnification provisions of the transaction, for any liabilities that may be asserted against Pruco Life. The transfer of the insurance related assets and liabilities was accounted for as a long-duration coinsurance transaction under U.S. GAAP. Under this accounting treatment, the insurance related liabilities remain on the books of Pruco Life and an offsetting reinsurance recoverable is established. These assets and liabilities are denominated in U.S. dollars. Term Re The Company reinsures 95% of the risks under its term life insurance policies, with effective dates on or after January 1, 2014 through December 31, 2017 , through an automatic coinsurance agreement with Term Re. Prudential Insurance The Company has a yearly renewable term reinsurance agreement with Prudential Insurance and reinsures the majority of all mortality risks not otherwise reinsured. Effective July 1, 2017 , this agreement has been terminated for certain new business, primarily Universal Life insurance policies. Effective July 1, 2017 , the Company reinsures a portion of the mortality risk directly to third-party reinsurers and retains all of the non-reinsured portion of the mortality risk. On January 2, 2013 , Pruco Life began to assume GUL business from Prudential Insurance in connection with the acquisition of the Hartford Financial Services Group, Inc. ("Hartford Financial"). The GUL business assumed from Prudential Insurance was subsequently retroceded to PAR U. In May 2018, Hartford Financial sold a group of operating subsidiaries, which includes two of Prudential Insurance's counterparties to these reinsurance arrangements. There is no impact to the terms, rights or obligations of Prudential Insurance, or operation of these reinsurance arrangements, as a result of this change in control of such counterparties. Similarly, there is no impact to the Company's reinsurance arrangements with respect to such GUL business as a result of this change in control. The Company has reinsured a group annuity contract with Prudential Insurance, in consideration for a single premium payment by the Company, providing reinsurance equal to 100% of all payments due under the contract. Effective April 1, 2016, PLNJ entered into a reinsurance agreement to reinsure its variable annuity base contracts, along with the living benefit guarantees to Prudential Insurance. This reinsurance agreement covers new and in force business and excludes business reinsured externally. DART Effective January 1, 2018 , the Company entered into an automatic coinsurance agreement with DART to reinsure an amount equal to 95% of the risks associated with its term life insurance policies with effective dates on or after January 1, 2018 . Information regarding significant third-party reinsurance arrangements is described below. Union Hamilton Between April 1, 2015 and December 31, 2016 , the Company, excluding its subsidiaries, reinsured approximately 50% of the new business related to “highest daily” living benefits rider guarantees on HDI v.3.0 product, available with Prudential Premier ® Retirement Variable Annuity, to Union Hamilton. This reinsurance remains in force for the duration of the underlying annuity contracts. New sales of HDI v.3.0 subsequent to December 31, 2016 are not covered by this external reinsurance agreement. As of June 30, 2019 , $3.1 billion of HDI v.3.0 account values are reinsured to Union Hamilton. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Equity | Accumulated Other Comprehensive Income (Loss) AOCI represents the cumulative OCI items that are reported separate from net income and detailed on the Consolidated Statements of Comprehensive Income. The balance of and changes in each component of AOCI as of and for the six months ended June 30, 2019 and 2018 , are as follows: Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustment Net Unrealized Investment Gains (Losses)(1) Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, December 31, 2018 $ (17,448 ) $ (10,848 ) $ (28,296 ) Change in OCI before reclassifications 7,007 332,927 339,934 Amounts reclassified from AOCI 0 10,672 10,672 Income tax benefit (expense) 2 (72,147 ) (72,145 ) Balance, June 30, 2019 $ (10,439 ) $ 260,604 $ 250,165 Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustment Net Unrealized Investment Gains (Losses)(1) Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, December 31, 2017 $ (234 ) $ 165,580 $ 165,346 Change in OCI before reclassifications (6,590 ) (223,420 ) (230,010 ) Amounts reclassified from AOCI 0 (3,634 ) (3,634 ) Income tax benefit (expense) 1,384 47,679 49,063 Cumulative effect of adoption of ASU 2016-01 0 (1,539 ) (1,539 ) Cumulative effect of adoption of ASU 2018-02 (50 ) 30,499 30,449 Balance, June 30, 2018 $ (5,490 ) $ 15,165 $ 9,675 (1) Includes cash flow hedges of $29 million and $(18) million as of June 30, 2019 and December 31, 2018 , respectively, and $(9) million and $41 million as of June 30, 2018 and December 31, 2017 , respectively . Reclassifications out of Accumulated Other Comprehensive Income (Loss) Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) Amounts reclassified from AOCI (1)(2): Net unrealized investment gains (losses): Cash flow hedges - Currency/Interest rate(3) $ (4,393 ) $ 7,442 $ (3,999 ) $ 7,761 Net unrealized investment gains (losses) on available-for-sale securities (2,489 ) (3,318 ) (6,673 ) (4,127 ) Total net unrealized investment gains (losses)(4) (6,882 ) 4,124 (10,672 ) 3,634 Total reclassifications for the period $ (6,882 ) $ 4,124 $ (10,672 ) $ 3,634 (1) All amounts are shown before tax. (2) Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI. (3) See Note 4 for additional information on cash flow hedges. (4) See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition and other costs, future policy benefits, policyholders’ account balances and other liabilities. Net Unrealized Investment Gains (Losses) Net unrealized investment gains (losses) on securities classified as available-for-sale and certain other invested assets and other assets are included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as a component of AOCI. Changes in these amounts include reclassification adjustments to exclude from OCI those items that are included as part of “Net income” for a period that had been part of OCI in earlier periods. The amounts for the periods indicated below, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains (losses), are as follows: Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities on which an OTTI loss has been recognized Net Unrealized Gains (Losses) on Investments Deferred Policy Acquisition Costs and Other Costs(2) Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(3) Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) (in thousands) Balance, December 31, 2018 $ (689 ) $ (152 ) $ 37 $ (192 ) $ (996 ) Net investment gains (losses) on investments arising during the period 1,568 0 0 (329 ) 1,239 Reclassification adjustment for (gains) losses included in net income (137 ) 0 0 29 (108 ) Reclassification adjustment for OTTI (gains) losses excluded from net income(1) (207 ) 0 0 43 (164 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 105 0 (22 ) 83 Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities 0 0 (127 ) 27 (100 ) Balance, June 30, 2019 $ 535 $ (47 ) $ (90 ) $ (444 ) $ (46 ) (1) Represents "transfers in" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. (2) "Other costs" primarily includes reinsurance recoverables and deferred reinsurance losses. (3) "Other liabilities" primarily includes reinsurance payables. All Other Net Unrealized Investment Gains (Losses) in AOCI Net Unrealized Gains (Losses) on Investments(2) Deferred Policy Acquisition Costs and Other Costs(3) Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(4) Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) (in thousands) Balance, December 31, 2018 $ (16,632 ) $ (65,743 ) $ 68,005 $ 4,518 $ (9,852 ) Net investment gains (losses) on investments arising during the period 375,628 0 0 (78,873 ) 296,755 Reclassification adjustment for (gains) losses included in net income 10,809 0 0 (2,270 ) 8,539 Reclassification adjustment for OTTI (gains) losses excluded from net income(1) 207 0 0 (43 ) 164 Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 176,301 0 (37,019 ) 139,282 Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities 0 0 (220,548 ) 46,310 (174,238 ) Balance, June 30, 2019 $ 370,012 $ 110,558 $ (152,543 ) $ (67,377 ) $ 260,650 (1) Represents "transfers out" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. (2) Includes cash flow hedges. See Note 4 for information on cash flow hedges. (3) "Other costs" primarily includes reinsurance recoverables and deferred reinsurance losses. (4) "Other liabilities" primarily includes reinsurance payables. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS The Company has extensive transactions and relationships with Prudential Insurance and other affiliates. Although we seek to ensure that these transactions and relationships are fair and reasonable, it is possible that the terms of these transactions are not the same as those that would result from transactions among unrelated parties. Expense Charges and Allocations Many of the Company’s expenses are allocations or charges from Prudential Insurance or other affiliates. These expenses can be grouped into general and administrative expenses and agency distribution expenses. The Company’s general and administrative expenses are charged to the Company using allocation methodologies based on business production processes. Management believes that the methodology is reasonable and reflects costs incurred by Prudential Insurance to process transactions on behalf of the Company. The Company operates under service and lease agreements whereby services of officers and employees, supplies, use of equipment and office space are provided by Prudential Insurance. The Company reviews its allocation methodology periodically which it may adjust accordingly. General and administrative expenses include allocations of stock compensation expenses related to a stock-based awards program and a deferred compensation program issued by Prudential Financial. The expense charged to the Company for the stock-based awards program was $0.6 million and $0.5 million for the three months ended June 30, 2019 , and 2018 , respectively, and $0.7 million for both the six months ended June 30, 2019 and 2018 . The expense charged to the Company for the deferred compensation program was $1 million and $2 million for the three months ended June 30, 2019 and 2018 , respectively, and $4 million for both the six months ended June 30, 2019 and 2018 . The Company is charged for its share of employee benefit expenses. These expenses include costs for funded and non-funded contributory and non-contributory defined benefit pension plans. Some of these benefits are based on final earnings and length of service while others are based on an account balance, which takes into consideration age, service and earnings during a career. The Company’s share of net expense for the pension plans was $5 million and $6 million for the three months ended June 30, 2019 and 2018 , respectively, and $10 million and $12 million for the six months ended June 30, 2019 and 2018 , respectively. The Company is also charged for its share of the costs associated with welfare plans issued by Prudential Insurance. These expenses include costs related to medical, dental, life insurance and disability. The Company's share of net expense for the welfare plans was $6 million and $7 million for the three months ended June 30, 2019 and 2018 , respectively, and $12 million and $15 million for the six months ended June 30, 2019 and 2018 , respectively. Prudential Insurance sponsors voluntary savings plans for its employee 401(k) plans. The plans provide for salary reduction contributions by employees and matching contributions by the Company of up to 4% of annual salary. The Company’s expense for its share of the voluntary savings plan was $2 million and $3 million for the three months ended June 30, 2019 and 2018 , respectively, and $5 million for both the six months ended June 30, 2019 and 2018 . The Company is charged distribution expenses from Prudential Insurance’s agency network for both its domestic life and annuity products through a transfer pricing agreement, which is intended to reflect a market-based pricing arrangement. The Company pays commissions and certain other fees to Prudential Annuities Distributors, Inc. (“PAD”) in consideration for PAD’s marketing and underwriting of the Company’s annuity products. Commissions and fees are paid by PAD to broker-dealers who sell the Company’s annuity products. Commissions and fees paid by the Company to PAD were $197 million and $189 million for the three months ended June 30, 2019 and 2018 , respectively, and $376 million and $363 million for the six months ended June 30, 2019 and 2018 , respectively. The Company is charged for its share of corporate expenses incurred by Prudential Financial to benefit its businesses, such as advertising, executive oversight, external affairs and philanthropic activity. The Company’s share of corporate expenses was $20 million and $19 million for the three months ended June 30, 2019 and 2018 , respectively, and $37 million for both the six months ended June 30, 2019 and 2018 . Corporate-Owned Life Insurance The Company has sold five Corporate-Owned Life Insurance (“COLI”) policies to Prudential Insurance, and one to Prudential Financial. The cash surrender value included in separate accounts for these COLI policies was $4,142 million at June 30, 2019 and $3,631 million at December 31, 2018 . Fees related to these COLI policies were $11 million for both the three months ended June 30, 2019 and 2018 , and $24 million and $23 million for the six months ended June 30, 2019 and 2018 , respectively. The Company retains the majority of the mortality risk associated with these COLI policies up to $3.5 million per individual policy. Affiliated Investment Management Expenses In accordance with an agreement with PGIM, Inc. ("PGIM"), the Company pays investment management expenses to PGIM who acts as investment manager to certain Company general account and separate account assets. Investment management expenses paid to PGIM related to this agreement were $3 million and $4 million for the three months ended June 30, 2019 and 2018 , respectively, and $7 million for both the six months ended June 30, 2019 and 2018 . These expenses are recorded as “Net investment income” in the Company's Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss). Derivative Trades In its ordinary course of business, the Company enters into OTC derivative contracts with an affiliate, PGF. For these OTC derivative contracts, PGF has a substantially equal and offsetting position with an external counterparty. See Note 4 for additional information. Joint Ventures The Company has made investments in joint ventures with certain subsidiaries of Prudential Financial. "Other invested assets" includes $102 million and $88 million as of June 30, 2019 and December 31, 2018 , respectively. "Net investment income" related to these ventures includes a gain of $2 million for both the three months ended June 30, 2019 and 2018 , and $7 million and $2 million for the six months ended June 30, 2019 and 2018 , respectively. Affiliated Asset Administration Fee Income The Company has a revenue sharing agreement with AST Investment Services, Inc. ("ASTISI") and PGIM Investments LLC ("PGIM Investments") whereby the Company receives fee income based on policyholders' separate account balances invested in the Advanced Series Trust. Income received from ASTISI and PGIM Investments related to this agreement was $84 million and $83 million for the three months ended June 30, 2019 and 2018 , respectively, and $165 million and $167 million for the six months ended June 30, 2019 and 2018 , respectively. These revenues are recorded as “Asset administration fees” in the Company's Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss). The Company has a revenue sharing agreement with PGIM Investments, whereby the Company receives fee income based on policyholders' separate account balances invested in The Prudential Series Fund. Income received from PGIM Investments related to this agreement was $3 million for both the three months ended June 30, 2019 and 2018 , and $5 million for both the six months ended June 30, 2019 and 2018 . These revenues are recorded as “Asset administration fees” in the Company's Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss). Affiliated Notes Receivable Affiliated notes receivable included in “Receivables from parent and affiliates” at June 30, 2019 and December 31, 2018 were as follows: Maturity Dates Interest Rates June 30, 2019 December 31, 2018 (in thousands) U.S. dollar floating rate notes 2028 3.74% - 4.03 % $ 0 $ 6,502 U.S. dollar fixed rate notes 2020 - 2027 0.00% - 14.85 % 127,862 128,140 Total notes receivable - affiliated(1) $ 127,862 $ 134,642 (1) All notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances. The affiliated notes receivable shown above are classified as available-for-sale securities and other trading assets carried at fair value. The Company monitors the internal and external credit ratings of these loans and loan performance. The Company also considers any guarantees made by Prudential Insurance for loans due from affiliates. Accrued interest receivable related to these loans was $1 million at both June 30, 2019 and December 31, 2018 , and is included in “Other assets”. Revenues related to these assets were $1 million for both the three months ended June 30, 2019 and 2018 , and $2 million for both the six months ended June 30, 2019 and 2018 , and are included in “Other income”. Affiliated Asset Transfers The Company participates in affiliated asset trades with parent and sister companies. Book and market value differences for trades with a parent and sister are recognized within "Additional paid-in capital" (“APIC”) and "Realized investment gains (losses), net", respectively. The table below shows affiliated asset trades for the six months ended June 30, 2019 and for the year ended December 31, 2018 . Affiliate Date Transaction Security Type Fair Value Book Value APIC, Net of Tax Increase/(Decrease) Realized Investment Gain (Loss) (in thousands) DART January 2018 Purchase Other Invested Assets $ 21,457 $ 21,457 $ 0 $ 0 PALAC April 2018 Purchase Fixed Maturities $ 64,313 $ 64,313 $ 0 $ 0 GUL Re May 2018 Purchase Fixed Maturities $ 87,486 $ 87,486 $ 0 $ 0 GUL Re May 2018 Purchase Fixed Maturities $ 37,921 $ 37,921 $ 0 $ 0 Prudential Realty Securities, Inc. November 2018 Purchase Commercial Mortgages $ 3,259 $ 3,425 $ 0 $ (167 ) Prudential Insurance February 2019 Sale Commercial Mortgages $ 4,995 $ 5,000 $ (4 ) $ 0 PALAC April 2019 Sale Equity Securities $ 14,525 $ 13,466 $ 0 $ 1,059 Debt Agreements The Company is authorized to borrow funds up to $2.2 billion from affiliates to meet its capital and other funding needs. As of June 30, 2019 and December 31, 2018 , there was no debt outstanding. The total interest expense to the Company related to loans payable to affiliates was $0.6 million and $0.3 million for the three months ended June 30, 2019 and 2018 , respectively, and $0.8 million and $0.4 million for the six months ended June 30, 2019 and 2018 , respectively. Contributed Capital and Dividends Through June 2019, the Company did no t receive any capital contributions from Prudential Insurance. In March 2018, the Company received a capital contribution in the amount of $6 million from Prudential Insurance. Through June 2019, the Company did no t pay any dividends to Prudential Insurance. In 2018, the Company did no t pay any dividends. Reinsurance with Affiliates As discussed in Note 6 , the Company participates in reinsurance transactions with certain affiliates. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | COMMITMENTS AND CONTINGENT LIABILITIES Commitments The Company has made commitments to fund commercial mortgage loans. As of June 30, 2019 and December 31, 2018 , the outstanding balances on these commitments were $60 million and $14 million , respectively. The Company also made commitments to purchase or fund investments, mostly private fixed maturities. As of June 30, 2019 and December 31, 2018 , $265 million and $257 million , respectively, of these commitments were outstanding. Guarantees In July 2017, the Company formed a joint venture with CT Corp to provide life insurance solutions in Indonesia. The Company owns a 49% interest in the joint venture and has entered into a shareholders agreement with CT Corp that sets out their respective rights and obligations with respect to the joint venture. Among other things, the shareholders agreement obligates the Company and CT Corp to provide capital to the joint venture, as necessary to comply with applicable law or to maintain a specified minimum amount of capital in the joint venture. This obligation is not limited to a maximum amount. The Company does not expect to make any payments on this guarantee and is not carrying any liabilities associated with the guarantee. Contingent Liabilities On an ongoing basis, the Company and its regulators review its operations including, but not limited to, sales and other customer interface procedures and practices, and procedures for meeting obligations to our customers and other parties. These reviews may result in the modification or enhancement of processes or the imposition of other action plans, including concerning management oversight, sales and other customer interface procedures and practices, and the timing or computation of payments to customers and other parties. In certain cases, if appropriate, the Company may offer customers or other parties remediation and may incur charges, including the cost of such remediation, administrative costs and regulatory fines. The Company is subject to the laws and regulations of states and other jurisdictions concerning the identification, reporting and escheatment of unclaimed or abandoned funds, and is subject to audit and examination for compliance with these requirements. It is possible that the results of operations or the cash flows of the Company in a particular quarterly or annual period could be materially affected as a result of payments in connection with the matters discussed above or other matters depending, in part, upon the results of operations or cash flows for such period. Management believes, however, that ultimate payments in connection with these matters, after consideration of applicable reserves and rights to indemnification, should not have a material adverse effect on the Company’s financial position. Litigation and Regulatory Matters The Company is subject to legal and regulatory actions in the ordinary course of its business. Pending legal and regulatory actions include proceedings specific to the Company and proceedings generally applicable to business practices in the industry in which it operates. The Company is subject to class action lawsuits and other litigation involving a variety of issues and allegations involving sales practices, claims payments and procedures, premium charges, policy servicing and breach of fiduciary duty to customers. The Company is also subject to litigation arising out of its general business activities, such as its investments, contracts, leases and labor and employment relationships, including claims of discrimination and harassment, and could be exposed to claims or litigation concerning certain business or process patents. In addition, the Company, along with other participants in the businesses in which it engages, may be subject from time to time to investigations, examinations and inquiries, in some cases industry-wide, concerning issues or matters upon which such regulators have determined to focus. In some of the Company’s pending legal and regulatory actions, parties are seeking large and/or indeterminate amounts, including punitive or exemplary damages. The outcome of litigation or a regulatory matter, and the amount or range of potential loss at any particular time, is often inherently uncertain. The Company establishes accruals for litigation and regulatory matters when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. For litigation and regulatory matters where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimable, no accrual is established, but the matter, if material, is disclosed. The Company estimates that as of June 30, 2019 , the aggregate range of reasonably possible losses in excess of accruals established for those litigation and regulatory matters for which such an estimate currently can be made is less than $100 million . This estimate is not an indication of expected loss, if any, or the Company's maximum possible loss exposure on such matters. The Company reviews relevant information with respect to its litigation and regulatory matters on a quarterly and annual basis and updates its accruals, disclosures and estimates of reasonably possible loss based on such reviews. The following discussion of litigation and regulatory matters provides an update of those matters discussed in Note 14 to the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 , and should be read in conjunction with the complete descriptions provided in the Form 10-K. Securities Lending and Foreign Tax Reclaim Matter In 2016, Prudential Financial self-reported to the SEC and the U.S. Department of Labor ("DOL"), and notified other regulators, that in some cases it failed to maximize securities lending income for the benefit of certain separate account investments due to a long-standing restriction benefiting Prudential Financial that limited the availability of loanable securities. Prudential Financial has removed the restriction and implemented a remediation plan for the benefit of customers. As part of Prudential Financial’s review of this matter, in 2018 it further self-reported to the SEC, and notified other regulators, that in some cases it failed to timely process foreign tax reclaims for the separate account investments. Prudential Financial has corrected the foreign tax reclaim process and has implemented a remediation plan for the benefit of customers. The DOL’s review of the securities lending matter is closed. Prudential Financial is cooperating with the SEC in its review of the securities lending and foreign tax reclaim matters (which includes a review of the remediation plans) and has entered into discussions with the SEC staff regarding a possible settlement of both matters that would potentially involve charges under the Investment Advisers Act and financial remedies. Prudential Financial cannot predict the outcome of the discussions with the SEC regarding these matters. Summary The Company’s litigation and regulatory matters are subject to many uncertainties, and given their complexity and scope, their outcome cannot be predicted. It is possible that the Company’s results of operations or cash flows in a particular quarterly or annual period could be materially affected by an ultimate unfavorable resolution of pending litigation and regulatory matters depending, in part, upon the results of operations or cash flows for such period. In light of the unpredictability of the Company’s litigation and regulatory matters, it is also possible that in certain cases an ultimate unfavorable resolution of one or more pending litigation or regulatory matters could have a material adverse effect on the Company’s financial position. Management believes, however, that, based on information currently known to it, the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, is not likely to have a material adverse effect on the Company’s financial position. |
Significant Accounting Polici_2
Significant Accounting Policies and Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Intercompany balances and transactions have been eliminated. In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of 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; amortization of deferred sales inducements ("DSI"); valuation of investments including derivatives and the recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; reinsurance recoverables; provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal and regulatory matters. |
Reclassifications | Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
Adoption of New Accounting Pronouncements | Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board ("FASB") in the form of Accounting Standards Updates ("ASU") to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASU. ASU listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of the date of this filing. ASU not listed below were assessed and determined to be either not applicable or not material. ASU adopted during the six months ended June 30, 2019 . Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization on Purchased Callable Debt Securities This ASU requires certain premiums on callable debt securities to be amortized to the earliest call date. January 1, 2019 using the modified retrospective method which included cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. Adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. The impact of the cumulative-effect adjustment to retained earnings was immaterial. ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities This ASU makes targeted changes to the existing hedge accounting model to better portray the economics of an entity’s risk management activities and to simplify the use of hedge accounting. The ASU eliminates separate measurement and recording of hedge ineffectiveness. It requires entities to present the earnings effect of the hedging instrument in the same income statement line item in which the hedged item is reported and also requires expanded disclosures. January 1, 2019 using the modified retrospective method which included cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. Adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. The impact of the cumulative-effect adjustment to retained earnings and accumulated other comprehensive income (loss) ("AOCI") related to ineffectiveness of the hedge instruments outstanding at the date of the adoption was immaterial. See Note 4 for additional required disclosures. |
Future Adoption Of New Accounting Pronouncements | ASU issued but not yet adopted as of June 30, 2019 — ASU 2018-12 ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, was issued by the FASB on August 15, 2018 and is expected to have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. In July 2019, the FASB made a tentative decision to defer the effective date of this ASU to January 1, 2022 (with early adoption permitted), representing a one year extension from the original effective date of January 1, 2021. A final decision regarding the effective date is expected in the third quarter of 2019. This ASU will impact, at least to some extent, the accounting and disclosure requirements for all long-duration insurance and investment contracts issued by the Company. Outlined below are four key areas of change, although there are other changes not noted below. In addition to the impacts to the balance sheet upon adoption, the Company also expects an impact to how earnings emerge thereafter. ASU 2018-12 Amended Topic Description Method of adoption Effect on the financial statements or other significant matters Cash flow assumptions used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products Requires an entity to review, and if necessary, update the cash flow assumptions used to measure the liability for future policy benefits, for both changes in future assumptions and actual experience, at least annually using a retrospective update method with a cumulative catch-up adjustment recorded in a separate line item in the Consolidated Statements of Operations. An entity may choose one of two adoption methods for the liability for future policy benefits: (1) a modified retrospective transition method whereby the entity will apply the amendments to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or (2) a full retrospective transition method. The options for method of adoption and the impacts of such methods are under assessment. Discount rate assumption used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products Requires discount rate assumptions to be based on an upper-medium grade fixed income instrument yield and will be required to be updated each quarter with the impact recorded through Other Comprehensive Income ("OCI"). As noted above, an entity may choose either a modified retrospective transition method or full retrospective transition method for the liability for future policy benefits. Under either method, for balance sheet remeasurement purposes, the liability for future policy benefits will be remeasured using current discount rates as of the beginning of the earliest period presented with the impact recorded as a cumulative effect adjustment to AOCI. Upon adoption, under either transition method, there will be an adjustment to AOCI as a result of remeasuring in force contract liabilities using current upper-medium grade fixed income instrument yields. The adjustment upon adoption will largely reflect the difference between the discount rate locked-in at contract inception versus current discount rates at transition. The magnitude of such adjustment is currently being assessed. Amortization of DAC and other balances Requires DAC and other balances, such as unearned revenue reserves and DSI, to be amortized on a constant level basis over the expected term of the related contract, independent of expected profitability. An entity may apply one of two adoption methods: (1) a modified retrospective transition method whereby the entity will apply the amendments to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or (2) if an entity chooses a full retrospective transition method for its future policy benefits, as described above, it is required to also use a retrospective transition method for DAC and other balances. The options for method of adoption and the impacts of such methods are under assessment. Under the modified retrospective transition method, the Company would not expect a significant impact to the balance sheet, other than the impact of the removal of any related amounts in AOCI. Market Risk Benefits Requires an entity to measure all market risk benefits (e.g., living benefit and death benefit guarantees associated with variable annuities) at fair value with changes in value attributable to changes in an entity’s non-performance risk ("NPR") to be recognized in OCI. An entity will apply a retrospective transition method which will include a cumulative-effect adjustment on the balance sheet as of the earliest period presented. Upon adoption, the Company expects an impact to retained earnings for the difference between the fair value and carrying value of benefits not currently measured at fair value (e.g., guaranteed minimum death benefits on variable annuities) and an impact from reclassifying the cumulative effect of changes in NPR from retained earnings to AOCI. The magnitude of such adjustments is currently being assessed. Other ASU issued but not yet adopted as of June 30, 2019 Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2016-13 , Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments This ASU provides a new current expected credit loss model to account for credit losses on certain financial assets and off-balance sheet exposures (e.g., loans held for investment, debt securities held to maturity, reinsurance receivables, net investments in leases and loan commitments). The model requires an entity to estimate lifetime credit losses related to such financial assets and exposures based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The standard also modifies the current other-than-temporary impairment standard for available-for-sale debt securities to require the use of an allowance rather than a direct write down of the investment, and replaces existing standard for purchased credit deteriorated loans and debt securities. January 1, 2020 using the modified retrospective method which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. However, prospective application is required for purchased credit deteriorated assets previously accounted for under ASU 310-30 and for debt securities for which an other-than-temporary-impairment was recognized prior to the date of adoption. Early adoption is permitted beginning January 1, 2019. The Company is continuing to develop its expected credit loss models and related systems, processes and controls for assets held on the Consolidated Statement of Financial Position at amortized cost, the most significant of which are the commercial mortgage and other loans. The allowance for credit losses will likely increase when the ASU is adopted to cover expected credit losses over the lifetime of the commercial mortgage and other loans, incorporating reasonable and supportable forecasts and expected changes in future economic conditions. The extent of the impact of adoption of this ASU on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements will depend on various factors including the economic environment and the size and type of the commercial mortgage and other loans held on the date of adoption. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments [Abstract] | |
Fixed Maturities, Available-for-sale Securities | The following tables set forth the composition of fixed maturity securities (excluding investments classified as trading), as of the dates indicated: June 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI(3) (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 79,486 $ 3,116 $ 0 $ 82,602 $ 0 Obligations of U.S. states and their political subdivisions 607,413 46,606 0 654,019 0 Foreign government bonds 210,007 18,321 14 228,314 0 U.S. public corporate securities 2,046,091 188,116 5,626 2,228,581 0 U.S. private corporate securities 895,094 37,967 5,825 927,236 0 Foreign public corporate securities 290,982 20,330 1,955 309,357 0 Foreign private corporate securities 904,665 36,202 22,921 917,946 0 Asset-backed securities(1) 139,728 1,481 287 140,922 (79 ) Commercial mortgage-backed securities 366,856 14,736 10 381,582 0 Residential mortgage-backed securities(2) 83,371 2,531 70 85,832 (152 ) Total fixed maturities, available-for-sale $ 5,623,693 $ 369,406 $ 36,708 $ 5,956,391 $ (231 ) (1) Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, auto loans, education loans and other asset types. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (3) Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $0.7 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date. December 31, 2018 Amortized Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI(3) (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 75,049 $ 2,427 $ 6 $ 77,470 $ 0 Obligations of U.S. states and their political subdivisions 609,955 15,154 2,351 622,758 0 Foreign government bonds 208,009 2,137 8,199 201,947 0 U.S. public corporate securities 1,739,860 46,166 54,401 1,731,625 0 U.S. private corporate securities 890,748 11,181 18,591 883,338 0 Foreign public corporate securities 270,428 3,746 12,151 262,023 0 Foreign private corporate securities 857,604 9,797 40,022 827,379 0 Asset-backed securities(1) 156,818 1,528 750 157,596 (122 ) Commercial mortgage-backed securities 347,570 3,353 4,527 346,396 0 Residential mortgage-backed securities(2) 88,862 1,268 1,067 89,063 (177 ) Total fixed maturities, available-for-sale $ 5,244,903 $ 96,757 $ 142,065 $ 5,199,595 $ (299 ) (1) Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (3) Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $0.4 million of net unrealized losses on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date. |
Duration Of Gross Unrealized Losses On Fixed Maturity Securities | The following tables set forth the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the dates indicated: June 30, 2019 Less Than Twelve Months Twelve Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Obligations of U.S. states and their political subdivisions 0 0 0 0 0 0 Foreign government bonds 0 0 8,511 14 8,511 14 U.S. public corporate securities 9,171 69 140,380 5,557 149,551 5,626 U.S. private corporate securities 24,292 3,547 54,624 2,278 78,916 5,825 Foreign public corporate securities 815 0 33,148 1,955 33,963 1,955 Foreign private corporate securities 80,817 1,041 184,542 21,880 265,359 22,921 Asset-backed securities 75,417 233 15,424 54 90,841 287 Commercial mortgage-backed securities 0 0 2,961 10 2,961 10 Residential mortgage-backed securities 0 0 7,947 70 7,947 70 Total fixed maturities, available-for-sale $ 190,512 $ 4,890 $ 447,537 $ 31,818 $ 638,049 $ 36,708 December 31, 2018 Less Than Twelve Months Twelve Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 0 $ 630 $ 6 $ 630 $ 6 Obligations of U.S. states and their political subdivisions 124,776 1,571 31,215 780 155,991 2,351 Foreign government bonds 77,055 3,184 59,700 5,015 136,755 8,199 U.S. public corporate securities 784,916 37,635 213,147 16,766 998,063 54,401 U.S. private corporate securities 263,934 9,159 287,031 9,432 550,965 18,591 Foreign public corporate securities 124,764 6,286 72,725 5,865 197,489 12,151 Foreign private corporate securities 424,921 22,605 127,201 17,417 552,122 40,022 Asset-backed securities 112,527 650 6,523 100 119,050 750 Commercial mortgage-backed securities 49,616 434 116,786 4,093 166,402 4,527 Residential mortgage-backed securities 34,249 240 32,432 827 66,681 1,067 Total fixed maturities, available-for-sale $ 1,996,758 $ 81,764 $ 947,390 $ 60,301 $ 2,944,148 $ 142,065 |
Fixed Maturities Classified by Contractual Maturity Date | The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated: June 30, 2019 Amortized Cost Fair Value (in thousands) Fixed maturities, available-for-sale: Due in one year or less $ 162,744 $ 164,151 Due after one year through five years 701,515 707,518 Due after five years through ten years 1,005,349 1,046,082 Due after ten years 3,164,130 3,430,304 Asset-backed securities 139,728 140,922 Commercial mortgage-backed securities 366,856 381,582 Residential mortgage-backed securities 83,371 85,832 Total fixed maturities, available-for-sale $ 5,623,693 $ 5,956,391 |
Sources of Fixed Maturity Proceeds, Realized Investment Gains (Losses), and Losses on Impairments | The following table sets forth the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on impairments of fixed maturities, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 28,231 $ 117,235 $ 53,018 $ 134,087 Proceeds from maturities/prepayments 75,554 85,808 128,429 140,118 Gross investment gains from sales and maturities (1,384 ) (30 ) (435 ) 114 Gross investment losses from sales and maturities (1,105 ) (3,231 ) (3,075 ) (3,590 ) OTTI recognized in earnings(2) 0 (57 ) (3,163 ) (651 ) (1) Includes $2.1 million and $26.2 million of non-cash related proceeds due to the timing of trade settlements for the six months ended June 30, 2019 and 2018 , respectively. (2) Excludes the portion of OTTI amounts remaining in OCI, representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of the impairment. |
Credit Losses Recognized in Earnings on Fixed Maturity Securities Held by the Company for which a Portion of the OTTI Loss was Recognized in OCI | The following table sets forth a rollforward of pre-tax amounts remaining in OCI related to fixed maturity securities with credit loss impairments recognized in earnings, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) Credit loss impairments: Balance, beginning of period $ 3,610 $ 4,344 $ 1,291 $ 4,374 New credit loss impairments 0 0 3,022 0 Increases due to the passage of time on previously recorded credit losses 20 10 30 47 Reductions for securities which matured, paid down, prepaid or were sold during the period (33 ) (1,918 ) (626 ) (1,960 ) Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected (11 ) (454 ) (131 ) (479 ) Balance, end of period $ 3,586 $ 1,982 $ 3,586 $ 1,982 |
Commercial Mortgage and Other Loans | The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: June 30, 2019 December 31, 2018 Amount (in thousands) % of Total Amount (in thousands) % of Total Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 355,719 29.0 % $ 362,811 29.9 % Hospitality 15,853 1.3 16,083 1.3 Industrial 286,521 23.2 263,999 21.8 Office 197,159 16.1 187,450 15.5 Other 129,617 10.6 131,961 10.9 Retail 189,040 15.4 193,473 16.0 Total commercial mortgage loans 1,173,909 95.6 1,155,777 95.4 Agricultural property loans 53,718 4.4 55,438 4.6 Total commercial mortgage and agricultural property loans by property type 1,227,627 100.0 % 1,211,215 100.0 % Allowance for credit losses (1,959 ) (2,065 ) Total commercial mortgage and other loans $ 1,225,668 $ 1,209,150 |
Allowance for Credit Losses | The following table sets forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated: Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Balance at December 31, 2017 $ 1,728 $ 66 $ 1,794 Addition to (release of) allowance for credit losses 298 (27 ) 271 Charge-offs, net of recoveries 0 0 0 Balance at December 31, 2018 2,026 39 2,065 Addition to (release of) allowance for credit losses (107 ) 1 (106 ) Charge-offs, net of recoveries 0 0 0 Balance at June 30, 2019 $ 1,919 $ 40 $ 1,959 |
Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans | The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans, as of the dates indicated: June 30, 2019 Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance for credit losses: Individually evaluated for impairment $ 0 $ 0 $ 0 Collectively evaluated for impairment 1,919 40 1,959 Total ending balance(1) $ 1,919 $ 40 $ 1,959 Recorded investment(2): Individually evaluated for impairment $ 0 $ 0 $ 0 Collectively evaluated for impairment 1,173,909 53,718 1,227,627 Total ending balance(1) $ 1,173,909 $ 53,718 $ 1,227,627 (1) As of June 30, 2019 , there were no loans acquired with deteriorated credit quality. (2) Recorded investment reflects the carrying value gross of related allowance. December 31, 2018 Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance for credit losses: Individually evaluated for impairment $ 0 $ 0 $ 0 Collectively evaluated for impairment 2,026 39 2,065 Total ending balance(1) $ 2,026 $ 39 $ 2,065 Recorded investment(2): Individually evaluated for impairment $ 0 $ 816 $ 816 Collectively evaluated for impairment 1,155,777 54,622 1,210,399 Total ending balance(1) $ 1,155,777 $ 55,438 $ 1,211,215 (1) As of December 31, 2018 , there were no loans acquired with deteriorated credit quality. (2) Recorded investment reflects the carrying value gross of related allowance. |
Financing Receivable Credit Quality Indicators | The following tables set forth certain key credit quality indicators for commercial mortgage and agricultural property loans based upon the recorded investment gross of allowance for credit losses, as of the dates indicated: June 30, 2019 Debt Service Coverage Ratio ≥ 1.2X 1.0X to < 1.2X < 1.0X Total (in thousands) Loan-to-Value Ratio: 0%-59.99% $ 714,155 $ 13,715 $ 815 $ 728,685 60%-69.99% 324,198 17,070 0 341,268 70%-79.99% 134,531 22,916 0 157,447 80% or greater 0 0 227 227 Total commercial mortgage and agricultural property loans $ 1,172,884 $ 53,701 $ 1,042 $ 1,227,627 December 31, 2018 Debt Service Coverage Ratio ≥ 1.2X 1.0X to < 1.2X < 1.0X Total (in thousands) Loan-to-Value Ratio: 0%-59.99% $ 696,507 $ 12,771 $ 80 $ 709,358 60%-69.99% 321,586 18,525 0 340,111 70%-79.99% 105,727 27,790 0 133,517 80% or greater 28,000 229 0 28,229 Total commercial mortgage and agricultural property loans $ 1,151,820 $ 59,315 $ 80 $ 1,211,215 |
Aging of Past Due Commercial Mortgage and Other Loans and Nonaccrual Status | The following tables set forth an aging of past due commercial mortgage and other loans based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated: June 30, 2019 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status(2) (in thousands) Commercial mortgage loans $ 1,173,909 $ 0 $ 0 $ 0 $ 1,173,909 $ 0 Agricultural property loans 53,718 0 0 0 53,718 0 Total $ 1,227,627 $ 0 $ 0 $ 0 $ 1,227,627 $ 0 (1) As of June 30, 2019 , there were no loans in this category accruing interest. (2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . December 31, 2018 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Loans Non-Accrual Status(2) (in thousands) Commercial mortgage loans $ 1,155,777 $ 0 $ 0 $ 0 $ 1,155,777 $ 0 Agricultural property loans 55,438 0 0 0 55,438 0 Total $ 1,211,215 $ 0 $ 0 $ 0 $ 1,211,215 $ 0 (1) As of December 31, 2018 , there were no loans in this category accruing interest. (2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . |
Other Invested Assets | The following table sets forth the composition of “Other invested assets,” as of the dates indicated: June 30, 2019 December 31, 2018 (in thousands) Company’s investment in separate accounts $ 43,497 $ 40,126 LPs/LLCs: Equity method: Private equity 183,095 149,164 Hedge funds 61,090 57,171 Real estate-related 19,753 10,251 Subtotal equity method 263,938 216,586 Fair value: Private equity 57,156 60,118 Hedge funds 778 762 Real estate-related 11,290 9,024 Subtotal fair value 69,224 69,904 Total LPs/LLCs 333,162 286,490 Derivative instruments 18,292 50,813 Total other invested assets $ 394,951 $ 377,429 |
Net Investment Income | The following table sets forth “Net investment income” by investment type, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) Fixed maturities, available-for-sale $ 59,370 $ 55,195 $ 115,636 $ 108,455 Fixed maturities, trading 326 272 634 538 Equity securities, at fair value 221 221 442 442 Commercial mortgage and other loans 13,435 12,303 25,926 24,708 Policy loans 16,766 16,329 32,965 32,233 Short-term investments and cash equivalents 1,839 114 4,150 437 Other invested assets 18,060 1,743 27,971 1,858 Gross investment income 110,017 86,177 207,724 168,671 Less: investment expenses (4,455 ) (4,528 ) (8,912 ) (9,107 ) Net investment income $ 105,562 $ 81,649 $ 198,812 $ 159,564 |
Realized Investment Gains (Losses), Net | The following table sets forth “Realized investment gains (losses), net” by investment type, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) Fixed maturities(1) $ (2,489 ) $ (3,318 ) $ (6,673 ) $ (4,127 ) Commercial mortgage and other loans 99 (125 ) 106 6 LPs/LLCs 0 2 12 849 Derivatives (49,846 ) (33,448 ) (94,323 ) (82,641 ) Short-term investments and cash equivalents (14 ) (1 ) (7 ) (19 ) Realized investment gains (losses), net $ (52,250 ) $ (36,890 ) $ (100,885 ) $ (85,932 ) (1) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading. |
Unrealized Gains and (Losses) on Investments | The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated: June 30, 2019 December 31, 2018 (in thousands) Fixed maturity securities, available-for-sale—with OTTI $ 535 $ (689 ) Fixed maturity securities, available-for-sale—all other 332,163 (44,619 ) Derivatives designated as cash flow hedges(1) 28,757 22,122 Affiliated notes 4,025 810 Other investments 5,067 5,055 Net unrealized gains (losses) on investments $ 370,547 $ (17,321 ) (1) For more information on cash flow hedges, see Note 4 . |
Repurchase Agreements and Securities Lending | The following table sets forth the composition of “Cash collateral for loaned securities,” which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated: June 30, 2019 December 31, 2018 Remaining Contractual Maturities of the Agreements Remaining Contractual Maturities of the Agreements Overnight & Continuous Up to 30 Days Total Overnight & Continuous Up to 30 Days Total (in thousands) U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 0 $ 0 $ 8,169 $ 0 $ 8,169 U.S. public corporate securities 4,636 0 4,636 628 0 628 Foreign public corporate securities 2,447 0 2,447 2,266 0 2,266 Total cash collateral for loaned securities(1) $ 7,083 $ 0 $ 7,083 $ 11,063 $ 0 $ 11,063 (1) The Company did not have any agreements with remaining contractual maturities of thirty days or greater, as of the dates indicated. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The table below provides a summary of the gross notional amount and fair value of derivative contracts by the primary underlying risks, excluding embedded derivatives and associated reinsurance recoverables. Many derivative instruments contain multiple underlying risks. The fair value amounts below represent the value of derivative contracts prior to taking into account the netting effects of master netting agreements, cash collateral, and NPR. June 30, 2019 December 31, 2018 Primary Underlying Risk/Instrument Type Fair Value Fair Value Gross Notional Assets Liabilities Gross Notional Assets Liabilities (in thousands) Derivatives Designated as Hedge Accounting Instruments: Currency/Interest Rate Foreign Currency Swaps $ 751,074 $ 43,962 $ (15,484 ) $ 719,476 $ 38,333 $ (16,638 ) Total Derivatives Designated as Hedge Accounting Instruments $ 751,074 $ 43,962 $ (15,484 ) $ 719,476 $ 38,333 $ (16,638 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 596,925 $ 31,580 $ (4,511 ) $ 246,925 $ 15,665 $ (3,174 ) Foreign Currency Foreign Currency Forwards 27,935 262 (100 ) 23,043 277 (20 ) Credit Credit Default Swaps 0 0 0 756 0 (9 ) Currency/Interest Rate Foreign Currency Swaps 128,088 7,836 (1,244 ) 98,363 6,303 (2,109 ) Equity Equity Options 2,306,848 98,700 (32,489 ) 1,981,693 17,312 (4,912 ) Total Derivatives Not Qualifying as Hedge Accounting Instruments $ 3,059,796 $ 138,378 $ (38,344 ) $ 2,350,780 $ 39,557 $ (10,224 ) Total Derivatives(1)(2) $ 3,810,870 $ 182,340 $ (53,828 ) $ 3,070,256 $ 77,890 $ (26,862 ) (1) Excludes embedded derivatives and associated reinsurance recoverables which contain multiple underlying risks. (2) Recorded in “Other invested assets” and “Other liabilities” on the Unaudited Interim Consolidated Statements of Financial Position. |
Offsetting Of Financial Assets | The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position. June 30, 2019 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Consolidated Statements of Financial Position Net Amounts Financial Instruments/ Collateral (1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives(1) $ 182,336 $ (163,984 ) $ 18,352 $ (18,352 ) $ 0 Securities purchased under agreements to resell 16,000 0 16,000 (16,000 ) 0 Total Assets $ 198,336 $ (163,984 ) $ 34,352 $ (34,352 ) $ 0 Offsetting of Financial Liabilities: Derivatives(1) $ 53,828 $ (53,828 ) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 53,828 $ (53,828 ) $ 0 $ 0 $ 0 December 31, 2018 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Consolidated Statements of Financial Position Net Amounts Presented in the Consolidated Statements of Financial Position Financial Net Amount (in thousands) Offsetting of Financial Assets: Derivatives(1) $ 77,887 $ (27,078 ) $ 50,809 $ (7,307 ) $ 43,502 Securities purchased under agreements to resell 143,000 0 143,000 (143,000 ) 0 Total Assets $ 220,887 $ (27,078 ) $ 193,809 $ (150,307 ) $ 43,502 Offsetting of Financial Liabilities: Derivatives(1) $ 26,862 $ (26,862 ) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 26,862 $ (26,862 ) $ 0 $ 0 $ 0 (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. |
Offsetting Of Financial Liabilities | The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position. June 30, 2019 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Consolidated Statements of Financial Position Net Amounts Financial Instruments/ Collateral (1) Net Amount (in thousands) Offsetting of Financial Assets: Derivatives(1) $ 182,336 $ (163,984 ) $ 18,352 $ (18,352 ) $ 0 Securities purchased under agreements to resell 16,000 0 16,000 (16,000 ) 0 Total Assets $ 198,336 $ (163,984 ) $ 34,352 $ (34,352 ) $ 0 Offsetting of Financial Liabilities: Derivatives(1) $ 53,828 $ (53,828 ) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 53,828 $ (53,828 ) $ 0 $ 0 $ 0 December 31, 2018 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Consolidated Statements of Financial Position Net Amounts Presented in the Consolidated Statements of Financial Position Financial Net Amount (in thousands) Offsetting of Financial Assets: Derivatives(1) $ 77,887 $ (27,078 ) $ 50,809 $ (7,307 ) $ 43,502 Securities purchased under agreements to resell 143,000 0 143,000 (143,000 ) 0 Total Assets $ 220,887 $ (27,078 ) $ 193,809 $ (150,307 ) $ 43,502 Offsetting of Financial Liabilities: Derivatives(1) $ 26,862 $ (26,862 ) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 26,862 $ (26,862 ) $ 0 $ 0 $ 0 (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship. Three Months Ended June 30, 2019 Realized Net Other AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ (88 ) $ 2,211 $ 1,482 $ 13,316 Total cash flow hedges (88 ) 2,211 1,482 13,316 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 7,682 0 0 0 Currency 343 0 0 0 Currency/Interest Rate 1,673 0 4 0 Credit 0 0 0 0 Equity 12,666 0 0 0 Embedded Derivatives (72,122 ) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (49,758 ) 0 4 0 Total $ (49,846 ) $ 2,211 $ 1,486 $ 13,316 Six Months Ended June 30, 2019 Realized Net Other AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ (248 ) $ 4,280 $ (34 ) $ 6,662 Total cash flow hedges (248 ) 4,280 (34 ) 6,662 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 15,297 0 0 0 Currency 323 0 0 0 Currency/Interest Rate 3,103 0 5 0 Credit (1 ) 0 0 0 Equity 41,529 0 0 0 Embedded Derivatives (154,326 ) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (94,075 ) 0 5 0 Total $ (94,323 ) $ 4,280 $ (29 ) $ 6,662 Three Months Ended June 30, 2018(2) Realized Investment Gains (Losses) Net Investment Income Other Income AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ 83 $ 1,611 $ 5,710 $ 31,519 Total cash flow hedges 83 1,611 5,710 31,519 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (3,126 ) 0 0 0 Currency 1,221 0 0 0 Currency/Interest Rate 4,844 0 38 0 Credit 0 0 0 0 Equity 7,581 0 0 0 Embedded Derivatives (44,051 ) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (33,531 ) 0 38 0 Total $ (33,448 ) $ 1,611 $ 5,748 $ 31,519 Six Months Ended June 30, 2018(2) Realized Investment Gains (Losses) Net Investment Income Other Income AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Currency/Interest Rate $ (433 ) $ 3,149 $ 5,046 $ 8,657 Total cash flow hedges (433 ) 3,149 5,046 8,657 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (12,526 ) 0 0 0 Currency 665 0 0 0 Currency/Interest Rate 1,509 0 15 0 Credit (2 ) 0 0 0 Equity 2,824 0 0 0 Embedded Derivatives (74,678 ) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (82,208 ) 0 15 0 Total $ (82,641 ) $ 3,149 $ 5,061 $ 8,657 (1) Net change in AOCI. (2) Prior period amounts have been updated to conform to current period presentation. |
Schedule of Derivative Instruments Recognized in Accumulated Other Comprehensive Income (Loss) Before Taxes | Presented below is a rollforward of current period cash flow hedges in AOCI before taxes: (in thousands) Balance, December 31, 2018 $ 22,122 Cumulative-effect adjustment from the adoption of ASU 2017-12(1) (27 ) Amount recorded in AOCI Currency/Interest Rate 10,661 Total amount recorded in AOCI 10,661 Amount reclassified from AOCI to income Currency/Interest Rate (3,999 ) Total amount reclassified from AOCI to income (3,999 ) Balance, June 30, 2019 $ 28,757 (1) See Note 2 for details. |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis | The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated. As of June 30, 2019 Level 1 Level 2 Level 3 Netting(1) Total (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 48,210 $ 34,392 $ 0 $ 82,602 Obligations of U.S. states and their political subdivisions 0 654,019 0 0 654,019 Foreign government bonds 0 228,149 165 0 228,314 U.S. corporate public securities 0 2,228,578 3 0 2,228,581 U.S. corporate private securities 0 885,288 41,948 0 927,236 Foreign corporate public securities 0 309,136 221 0 309,357 Foreign corporate private securities 0 906,104 11,842 0 917,946 Asset-backed securities(2) 0 138,297 2,625 0 140,922 Commercial mortgage-backed securities 0 381,582 0 0 381,582 Residential mortgage-backed securities 0 84,160 1,672 0 85,832 Subtotal 0 5,863,523 92,868 0 5,956,391 Fixed maturities, trading 0 48,812 605 0 49,417 Equity securities 116 553 17,105 0 17,774 Short-term investments 0 0 94 0 94 Cash equivalents 0 356,634 0 0 356,634 Other invested assets(3) 0 182,336 4 (163,984 ) 18,356 Reinsurance recoverables 0 0 8,485,905 0 8,485,905 Receivables from parent and affiliates 0 121,567 6,295 0 127,862 Subtotal excluding separate account assets 116 6,573,425 8,602,876 (163,984 ) 15,012,433 Separate account assets(4)(5) 0 128,180,358 0 0 128,180,358 Total assets $ 116 $ 134,753,783 $ 8,602,876 $ (163,984 ) $ 143,192,791 Future policy benefits(6) $ 0 $ 0 $ 8,476,541 $ 0 $ 8,476,541 Policyholders' account balances 0 0 786,969 0 786,969 Payables to parent and affiliates 0 53,828 0 (53,828 ) 0 Total liabilities $ 0 $ 53,828 $ 9,263,510 $ (53,828 ) $ 9,263,510 As of December 31, 2018 Level 1 Level 2 Level 3 Netting(1) Total (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 47,654 $ 29,816 $ 0 $ 77,470 Obligations of U.S. states and their political subdivisions 0 622,758 0 0 622,758 Foreign government bonds 0 201,947 0 0 201,947 U.S. corporate public securities 0 1,731,623 2 0 1,731,625 U.S. corporate private securities 0 838,497 44,841 0 883,338 Foreign corporate public securities 0 262,023 0 0 262,023 Foreign corporate private securities 0 815,634 11,745 0 827,379 Asset-backed securities(2) 0 151,040 6,556 0 157,596 Commercial mortgage-backed securities 0 346,396 0 0 346,396 Residential mortgage-backed securities 0 89,063 0 0 89,063 Subtotal 0 5,106,635 92,960 0 5,199,595 Fixed maturities, trading 0 41,627 0 0 41,627 Equity securities 131 20,794 15,997 0 36,922 Short-term investments 0 0 0 0 0 Cash equivalents 69,903 147,043 0 0 216,946 Other invested assets(3) 0 77,886 4 (27,078 ) 50,812 Reinsurance recoverables 0 0 5,600,008 0 5,600,008 Receivables from parent and affiliates 0 125,381 9,261 0 134,642 Subtotal excluding separate account assets 70,034 5,519,366 5,718,230 (27,078 ) 11,280,552 Separate account assets(4)(5) 0 114,947,872 0 0 114,947,872 Total assets $ 70,034 $ 120,467,238 $ 5,718,230 $ (27,078 ) $ 126,228,424 Future policy benefits(6) $ 0 $ 0 $ 5,588,840 $ 0 $ 5,588,840 Policyholders' account balances 0 0 13,015 0 13,015 Payables to parent and affiliates 0 26,862 0 (26,862 ) 0 Total liabilities $ 0 $ 26,862 $ 5,601,855 $ (26,862 ) $ 5,601,855 (1) “Netting” amounts represent cash collateral of $110.2 million and $0.2 million as of June 30, 2019 and December 31, 2018 , respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements. (2) Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (3) Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value ("NAV") per share (or its equivalent) as a practical expedient. As of June 30, 2019 and December 31, 2018 , the fair values of such investments were $69 million and $70 million , respectively. (4) Separate account assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate, hedge funds and a corporate owned life insurance fund, for which fair value is measured at NAV per share (or its equivalent). As of June 30, 2019 and December 31, 2018 , the fair value of such investments was $4,552 million and $4,130 million , respectively. (5) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company's Unaudited Interim Consolidated Statements of Financial Position. (6) As of June 30, 2019 , the net embedded derivative liability position of $8,477 million includes $519 million of embedded derivatives in an asset position and $8,996 million of embedded derivatives in a liability position. As of December 31, 2018 , the net embedded derivative liability position of $5,589 million includes $633 million of embedded derivatives in an asset position and $6,222 million of embedded derivatives in a liability position. |
Fair Value Inputs, Assets and Liabilities, Quantitative Information | The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities. As of June 30, 2019 Fair Value Valuation Techniques Unobservable Inputs Minimum Maximum Weighted Average Impact of Increase in Input on Fair Value(1) (in thousands) Assets: Corporate securities(2) $ 23,086 Discounted cash flow Discount rate 8.34 % 15.17 % 12.03 % Decrease Market Comparables EBITDA multiples(3) 5.7 X 5.7 X 5.7 X Increase Liquidation Liquidation value 3.98 % 3.98 % 3.98 % Increase Reinsurance recoverables $ 8,485,905 Fair values are determined using the same unobservable inputs as future policy benefits. Liabilities: Future policy benefits(4) $ 8,476,541 Discounted cash flow Lapse rate(6) 1 % 18 % Decrease Spread over LIBOR(7) 0.16 % 1.24 % Decrease Utilization rate(8) 43 % 97 % Increase Withdrawal rate See table footnote (9) below Mortality rate(10) 0 % 15 % Decrease Equity volatility curve 13 % 23 % Increase Policyholders' account balances(5) $ 786,969 Discounted cash flow Lapse rate(6) 1 % 6 % Decrease Spread over LIBOR(7) 0.16 % 1.24 % Decrease Mortality rate(10) 0 % 24 % Decrease Equity volatility curve 10 % 23 % Increase As of December 31, 2018 Fair Value Valuation Techniques Unobservable Inputs Minimum Maximum Weighted Average Impact of Increase in Input on Fair Value(1) (in thousands) Assets: Corporate securities(2) $ 31,503 Discounted cash flow Discount rate 7 % 20 % 10.21 % Decrease Liquidation Liquidation value 40.71 % 40.71 % 40.71 % Increase Reinsurance recoverables $ 5,600,008 Fair values are determined using the same unobservable inputs as future policy benefits. Liabilities: Future policy benefits(4) $ 5,588,840 Discounted cash flow Lapse rate(6) 1 % 13 % Decrease Spread over LIBOR(7) 0.36 % 1.60 % Decrease Utilization rate(8) 50 % 97 % Increase Withdrawal rate See table footnote (9) below Mortality rate(10) 0 % 15 % Decrease Equity volatility curve 18 % 22 % Increase (1) Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table. (2) Includes assets classified as fixed maturities, available-for-sale and fixed maturities trading. (3) Represents multiples of earnings before interest, taxes, depreciation and amortization ("EBITDA"), and are amounts used when the Company has determined that market participants would use such multiples when valuing the investments. (4) Future policy benefits primarily represent general account liabilities for the living benefit features of the Company’s variable annuity contracts which are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (5) Policyholders’ account balances primarily represent general account liabilities for the index-linked interest credited on certain of the Company’s life products that are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (6) Lapse rates for contracts with living benefit guarantees are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates for contracts with index-linked crediting guarantees may be adjusted at the contract level based on the applicability of any surrender charges, product type, and market related factors such as interest rates. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. For any given contract, lapse rates vary throughout the period over which cash flows are projected for the purposes of valuing these embedded derivatives. (7) The spread over the London Inter-Bank Offered Rate ("LIBOR") swap curve represents the premium added to the proxy for the risk-free rate (LIBOR) to reflect the Company's estimates of rates that a market participant would use to value the living benefits in both the accumulation and payout phases and index-linked interest crediting guarantees. This spread includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because funding agreements, living benefit guarantees, and index-linked interest crediting guarantees are insurance liabilities and are therefore senior to debt. (8) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits. (9) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of June 30, 2019 and December 31, 2018 , the minimum withdrawal rate assumption is 78% and the maximum withdrawal rate assumption may be greater than 100% . The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%. (10) The range reflects the mortality rates for the vast majority of business with living benefits and other contracts, with policyholders ranging from 45 to 90 years old. While the majority of living benefits have a minimum age requirement, certain other contracts do not have an age restriction. This results in contractholders with mortality rates approaching 0% for certain benefits. Mortality rates vary by product, age, and duration. A mortality improvement assumption is also incorporated into the overall mortality table. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. All transfers are generally reported at the value as of the beginning of the quarter in which transfers occur for any such assets still held at the end of the quarter. Three Months Ended June 30, 2019 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thousands) Fixed maturities, available-for-sale: U.S. government $ 32,188 $ 0 $ 2,204 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 34,392 $ 0 Foreign government 164 1 0 0 0 0 0 0 0 165 0 Corporate securities(4) 54,960 234 791 (25 ) 0 (2,584 ) (1 ) 639 0 54,014 0 Structured securities(5) 79,804 42 0 (1 ) 0 (177 ) 0 1,700 (77,071 ) 4,297 0 Other assets: Fixed maturities, trading 0 (146 ) 0 0 0 0 0 751 0 605 (146 ) Equity securities 15,991 1,114 0 0 0 0 0 0 0 17,105 1,114 Other invested assets 4 0 0 0 0 0 0 0 0 4 0 Short-term investments 0 0 463 0 0 (369 ) 0 0 0 94 0 Reinsurance recoverables 6,468,704 1,773,188 244,013 0 0 0 0 0 0 8,485,905 1,833,209 Receivables from parent and affiliates 7,792 82 0 0 0 (1,579 ) 0 0 0 6,295 0 Liabilities: Future policy benefits (6,459,377 ) (1,775,097 ) 0 0 (242,067 ) 0 0 0 0 (8,476,541 ) (1,836,960 ) Policyholders' account balances(6) (53,136 ) (691,927 ) 0 0 (41,906 ) 0 0 0 0 (786,969 ) (691,376 ) Three Months Ended June 30, 2019 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) (in thousands) Fixed maturities, available-for-sale $ (665 ) $ 0 $ 678 $ 264 $ 0 $ 0 Other assets: Fixed maturities, trading 0 (146 ) 0 0 0 (146 ) Equity securities 0 1,114 0 0 0 1,114 Other invested assets 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 Reinsurance recoverables 1,773,188 0 0 0 1,833,209 0 Receivables from parent and affiliates 0 0 0 82 0 0 Liabilities: Future policy benefits (1,775,097 ) 0 0 0 (1,836,960 ) 0 Policyholders' account balances (691,927 ) 0 0 0 (691,376 ) 0 Six Months Ended June 30, 2019 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thousands) Fixed maturities, available-for-sale: U.S. government $ 29,816 $ 0 $ 4,576 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 34,392 $ 0 Foreign government 0 6 0 0 0 0 0 159 0 165 0 Corporate securities(4) 56,588 (3,178 ) 2,122 (53 ) 0 (9,681 ) 0 8,216 0 54,014 (3,163 ) Structured securities(5) 6,556 1,310 0 (2 ) 0 (4,156 ) 0 77,660 (77,071 ) 4,297 0 Other assets: Fixed maturities, trading 0 (146 ) 0 0 0 0 0 751 0 605 (146 ) Equity securities 15,997 1,108 0 0 0 0 0 0 0 17,105 1,108 Other invested assets 4 0 0 0 0 0 0 0 0 4 0 Short-term investments 0 0 463 0 0 (369 ) 0 0 0 94 0 Reinsurance recoverables 5,600,008 2,406,506 479,391 0 0 0 0 0 0 8,485,905 2,504,883 Receivables from parent and affiliates 9,261 193 0 0 0 (3,159 ) 0 0 0 6,295 0 Liabilities: Future policy benefits (5,588,840 ) (2,412,199 ) 0 0 (475,502 ) 0 0 0 0 (8,476,541 ) (2,510,576 ) Policyholders' account balances(6) (13,015 ) (725,541 ) 0 0 (48,413 ) 0 0 0 0 (786,969 ) (724,989 ) Six Months Ended June 30, 2019 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) (in thousands) Fixed maturities, available-for-sale $ (3,067 ) $ 0 $ 842 $ 363 $ (3,163 ) $ 0 Other assets: Fixed maturities, trading 0 (146 ) 0 0 0 (146 ) Equity securities 0 1,108 0 0 0 1,108 Other invested assets 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 Reinsurance recoverables 2,406,506 0 0 0 2,504,883 0 Receivables from parent and affiliates 0 0 0 193 0 0 Liabilities: Future policy benefits (2,412,199 ) 0 0 0 (2,510,576 ) 0 Policyholders' account balances (725,541 ) 0 0 0 (724,989 ) 0 Three Months Ended June 30, 2018(7) Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thousands) Fixed maturities, available-for-sale: U.S. government $ 21,569 $ 0 $ 2,842 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 24,411 $ 0 Foreign government 166 (6 ) 0 0 0 0 0 0 160 0 Corporate securities(4) 72,615 (1,647 ) 3,125 (201 ) 0 (15,501 ) (1 ) 4,028 0 62,418 (49 ) Structured securities(5) 94,873 (184 ) 10,648 (196 ) 0 (4,871 ) 0 0 (80,609 ) 19,661 0 Other assets: Equity securities 17,039 (414 ) 0 0 0 0 0 0 0 16,625 (414 ) Other invested assets 10 (5 ) 0 0 0 0 0 0 0 5 (5 ) Short-term investments 1,194 0 1,870 0 0 (2,731 ) 0 0 0 333 (1 ) Cash equivalents 0 0 2,550 0 0 (1,986 ) 0 0 0 564 0 Reinsurance recoverables 4,214,114 (491,557 ) 221,324 0 0 0 0 0 0 3,943,881 (441,257 ) Receivables from parent and affiliates 6,531 0 0 0 0 0 0 0 (6,531 ) 0 0 Liabilities: Future policy benefits (4,191,373 ) 502,643 0 0 (228,243 ) 0 0 0 0 (3,916,973 ) 459,185 Policyholders' account balances(6) (39,516 ) (7,859 ) 0 0 0 5,429 0 0 0 (41,946 ) (7,860 ) Other liabilities (15,955 ) (10,535 ) 8,880 0 0 0 0 0 0 (17,610 ) (10,590 ) Three Months Ended June 30, 2018(7) Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) (in thousands) Fixed maturities, available-for-sale $ (303 ) $ 0 $ (1,620 ) $ 86 $ (49 ) $ 0 Other assets: Equity securities 0 (414 ) 0 0 0 (414 ) Other invested assets (5 ) 0 0 0 (5 ) 0 Short-term investments 0 0 0 0 (1 ) 0 Reinsurance recoverables (491,557 ) 0 0 0 (441,257 ) 0 Receivables from parent and affiliates 0 0 0 0 0 0 Liabilities: Future policy benefits 502,643 0 0 0 459,185 0 Policyholders' account balances (7,859 ) 0 0 0 (7,860 ) 0 Other liabilities (10,535 ) 0 0 0 (10,590 ) 0 Six Months Ended June 30, 2018(7) Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thousands) Fixed maturities, available-for-sale: U.S. government $ 19,204 $ 0 $ 5,207 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 24,411 $ 0 Foreign government 0 (14 ) 0 0 0 0 174 0 0 160 0 Corporate securities(4) 75,421 (711 ) 4,147 (201 ) 0 (20,071 ) 14 4,028 (209 ) 62,418 (75 ) Structured securities(5) 111,028 (53 ) 10,838 (196 ) 0 (8,066 ) 0 13,513 (107,403 ) 19,661 0 Other assets: Equity securities 17,525 (900 ) 0 0 0 0 0 0 0 16,625 (900 ) Other invested assets 0 (4 ) 0 0 0 0 0 9 0 5 (4 ) Short-term investments 1,339 (18 ) 5,270 0 0 (6,244 ) (14 ) 0 0 333 (19 ) Cash equivalents 0 0 2,550 0 0 (1,986 ) 0 0 0 564 0 Reinsurance recoverables 5,457,649 (1,954,549 ) 440,781 0 0 0 0 0 0 3,943,881 (1,844,015 ) Receivables from parent and affiliates 0 (20 ) 0 0 0 0 0 6,551 (6,531 ) 0 0 Liabilities: Future policy benefits (5,452,583 ) 1,990,198 0 0 (454,588 ) 0 0 0 0 (3,916,973 ) 1,879,579 Policyholders' account balances(6) (46,651 ) (2,846 ) 0 0 0 7,551 0 0 0 (41,946 ) (2,847 ) Other liabilities 0 (35,315 ) 17,705 0 0 0 0 0 0 (17,610 ) (35,231 ) Six Months Ended June 30, 2018(7) Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) (in thousands) Fixed maturities, available-for-sale $ (235 ) $ 0 $ (706 ) $ 163 $ (75 ) $ 0 Other assets: Equity securities 0 (900 ) 0 0 0 (900 ) Other invested assets (4 ) 0 0 0 (4 ) 0 Short-term investments (18 ) 0 0 0 (19 ) 0 Reinsurance recoverables (1,954,549 ) 0 0 0 (1,844,015 ) 0 Receivables from parent and affiliates 0 (20 ) 0 0 0 0 Liabilities: Future policy benefits 1,990,198 0 0 0 1,879,579 0 Policyholders' account balances (2,846 ) 0 0 0 (2,847 ) 0 Other liabilities (35,315 ) 0 0 0 (35,231 ) 0 (1) Realized investment gains (losses) on future policy benefits and reinsurance recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts. (2) Other includes reclassifications of certain assets and liabilities between reporting categories. (3) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts. (4) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. (5) Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities. (6) Issuances and settlements for Policyholders' account balances are presented net in the rollforward. (7) Prior period amounts have been updated to conform to current period presentation. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. All transfers are generally reported at the value as of the beginning of the quarter in which transfers occur for any such assets still held at the end of the quarter. Three Months Ended June 30, 2019 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thousands) Fixed maturities, available-for-sale: U.S. government $ 32,188 $ 0 $ 2,204 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 34,392 $ 0 Foreign government 164 1 0 0 0 0 0 0 0 165 0 Corporate securities(4) 54,960 234 791 (25 ) 0 (2,584 ) (1 ) 639 0 54,014 0 Structured securities(5) 79,804 42 0 (1 ) 0 (177 ) 0 1,700 (77,071 ) 4,297 0 Other assets: Fixed maturities, trading 0 (146 ) 0 0 0 0 0 751 0 605 (146 ) Equity securities 15,991 1,114 0 0 0 0 0 0 0 17,105 1,114 Other invested assets 4 0 0 0 0 0 0 0 0 4 0 Short-term investments 0 0 463 0 0 (369 ) 0 0 0 94 0 Reinsurance recoverables 6,468,704 1,773,188 244,013 0 0 0 0 0 0 8,485,905 1,833,209 Receivables from parent and affiliates 7,792 82 0 0 0 (1,579 ) 0 0 0 6,295 0 Liabilities: Future policy benefits (6,459,377 ) (1,775,097 ) 0 0 (242,067 ) 0 0 0 0 (8,476,541 ) (1,836,960 ) Policyholders' account balances(6) (53,136 ) (691,927 ) 0 0 (41,906 ) 0 0 0 0 (786,969 ) (691,376 ) Three Months Ended June 30, 2019 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) (in thousands) Fixed maturities, available-for-sale $ (665 ) $ 0 $ 678 $ 264 $ 0 $ 0 Other assets: Fixed maturities, trading 0 (146 ) 0 0 0 (146 ) Equity securities 0 1,114 0 0 0 1,114 Other invested assets 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 Reinsurance recoverables 1,773,188 0 0 0 1,833,209 0 Receivables from parent and affiliates 0 0 0 82 0 0 Liabilities: Future policy benefits (1,775,097 ) 0 0 0 (1,836,960 ) 0 Policyholders' account balances (691,927 ) 0 0 0 (691,376 ) 0 Six Months Ended June 30, 2019 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thousands) Fixed maturities, available-for-sale: U.S. government $ 29,816 $ 0 $ 4,576 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 34,392 $ 0 Foreign government 0 6 0 0 0 0 0 159 0 165 0 Corporate securities(4) 56,588 (3,178 ) 2,122 (53 ) 0 (9,681 ) 0 8,216 0 54,014 (3,163 ) Structured securities(5) 6,556 1,310 0 (2 ) 0 (4,156 ) 0 77,660 (77,071 ) 4,297 0 Other assets: Fixed maturities, trading 0 (146 ) 0 0 0 0 0 751 0 605 (146 ) Equity securities 15,997 1,108 0 0 0 0 0 0 0 17,105 1,108 Other invested assets 4 0 0 0 0 0 0 0 0 4 0 Short-term investments 0 0 463 0 0 (369 ) 0 0 0 94 0 Reinsurance recoverables 5,600,008 2,406,506 479,391 0 0 0 0 0 0 8,485,905 2,504,883 Receivables from parent and affiliates 9,261 193 0 0 0 (3,159 ) 0 0 0 6,295 0 Liabilities: Future policy benefits (5,588,840 ) (2,412,199 ) 0 0 (475,502 ) 0 0 0 0 (8,476,541 ) (2,510,576 ) Policyholders' account balances(6) (13,015 ) (725,541 ) 0 0 (48,413 ) 0 0 0 0 (786,969 ) (724,989 ) Six Months Ended June 30, 2019 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) (in thousands) Fixed maturities, available-for-sale $ (3,067 ) $ 0 $ 842 $ 363 $ (3,163 ) $ 0 Other assets: Fixed maturities, trading 0 (146 ) 0 0 0 (146 ) Equity securities 0 1,108 0 0 0 1,108 Other invested assets 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 Reinsurance recoverables 2,406,506 0 0 0 2,504,883 0 Receivables from parent and affiliates 0 0 0 193 0 0 Liabilities: Future policy benefits (2,412,199 ) 0 0 0 (2,510,576 ) 0 Policyholders' account balances (725,541 ) 0 0 0 (724,989 ) 0 Three Months Ended June 30, 2018(7) Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thousands) Fixed maturities, available-for-sale: U.S. government $ 21,569 $ 0 $ 2,842 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 24,411 $ 0 Foreign government 166 (6 ) 0 0 0 0 0 0 160 0 Corporate securities(4) 72,615 (1,647 ) 3,125 (201 ) 0 (15,501 ) (1 ) 4,028 0 62,418 (49 ) Structured securities(5) 94,873 (184 ) 10,648 (196 ) 0 (4,871 ) 0 0 (80,609 ) 19,661 0 Other assets: Equity securities 17,039 (414 ) 0 0 0 0 0 0 0 16,625 (414 ) Other invested assets 10 (5 ) 0 0 0 0 0 0 0 5 (5 ) Short-term investments 1,194 0 1,870 0 0 (2,731 ) 0 0 0 333 (1 ) Cash equivalents 0 0 2,550 0 0 (1,986 ) 0 0 0 564 0 Reinsurance recoverables 4,214,114 (491,557 ) 221,324 0 0 0 0 0 0 3,943,881 (441,257 ) Receivables from parent and affiliates 6,531 0 0 0 0 0 0 0 (6,531 ) 0 0 Liabilities: Future policy benefits (4,191,373 ) 502,643 0 0 (228,243 ) 0 0 0 0 (3,916,973 ) 459,185 Policyholders' account balances(6) (39,516 ) (7,859 ) 0 0 0 5,429 0 0 0 (41,946 ) (7,860 ) Other liabilities (15,955 ) (10,535 ) 8,880 0 0 0 0 0 0 (17,610 ) (10,590 ) Three Months Ended June 30, 2018(7) Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) (in thousands) Fixed maturities, available-for-sale $ (303 ) $ 0 $ (1,620 ) $ 86 $ (49 ) $ 0 Other assets: Equity securities 0 (414 ) 0 0 0 (414 ) Other invested assets (5 ) 0 0 0 (5 ) 0 Short-term investments 0 0 0 0 (1 ) 0 Reinsurance recoverables (491,557 ) 0 0 0 (441,257 ) 0 Receivables from parent and affiliates 0 0 0 0 0 0 Liabilities: Future policy benefits 502,643 0 0 0 459,185 0 Policyholders' account balances (7,859 ) 0 0 0 (7,860 ) 0 Other liabilities (10,535 ) 0 0 0 (10,590 ) 0 Six Months Ended June 30, 2018(7) Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(2) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(3) (in thousands) Fixed maturities, available-for-sale: U.S. government $ 19,204 $ 0 $ 5,207 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 24,411 $ 0 Foreign government 0 (14 ) 0 0 0 0 174 0 0 160 0 Corporate securities(4) 75,421 (711 ) 4,147 (201 ) 0 (20,071 ) 14 4,028 (209 ) 62,418 (75 ) Structured securities(5) 111,028 (53 ) 10,838 (196 ) 0 (8,066 ) 0 13,513 (107,403 ) 19,661 0 Other assets: Equity securities 17,525 (900 ) 0 0 0 0 0 0 0 16,625 (900 ) Other invested assets 0 (4 ) 0 0 0 0 0 9 0 5 (4 ) Short-term investments 1,339 (18 ) 5,270 0 0 (6,244 ) (14 ) 0 0 333 (19 ) Cash equivalents 0 0 2,550 0 0 (1,986 ) 0 0 0 564 0 Reinsurance recoverables 5,457,649 (1,954,549 ) 440,781 0 0 0 0 0 0 3,943,881 (1,844,015 ) Receivables from parent and affiliates 0 (20 ) 0 0 0 0 0 6,551 (6,531 ) 0 0 Liabilities: Future policy benefits (5,452,583 ) 1,990,198 0 0 (454,588 ) 0 0 0 0 (3,916,973 ) 1,879,579 Policyholders' account balances(6) (46,651 ) (2,846 ) 0 0 0 7,551 0 0 0 (41,946 ) (2,847 ) Other liabilities 0 (35,315 ) 17,705 0 0 0 0 0 0 (17,610 ) (35,231 ) Six Months Ended June 30, 2018(7) Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(3) Realized investment gains (losses), net(1) Other income (loss) Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) (in thousands) Fixed maturities, available-for-sale $ (235 ) $ 0 $ (706 ) $ 163 $ (75 ) $ 0 Other assets: Equity securities 0 (900 ) 0 0 0 (900 ) Other invested assets (4 ) 0 0 0 (4 ) 0 Short-term investments (18 ) 0 0 0 (19 ) 0 Reinsurance recoverables (1,954,549 ) 0 0 0 (1,844,015 ) 0 Receivables from parent and affiliates 0 (20 ) 0 0 0 0 Liabilities: Future policy benefits 1,990,198 0 0 0 1,879,579 0 Policyholders' account balances (2,846 ) 0 0 0 (2,847 ) 0 Other liabilities (35,315 ) 0 0 0 (35,231 ) 0 (1) Realized investment gains (losses) on future policy benefits and reinsurance recoverables primarily represent the change in the fair value of the Company's living benefit guarantees on certain of its variable annuity contracts. (2) Other includes reclassifications of certain assets and liabilities between reporting categories. (3) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts. (4) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. (5) Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities. (6) Issuances and settlements for Policyholders' account balances are presented net in the rollforward. (7) Prior period amounts have been updated to conform to current period presentation. |
Fair Value Disclosure Financial Instruments Not Carried at Fair Value | The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Unaudited Interim Consolidated Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value. June 30, 2019 Fair Value Carrying Amount(1) Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 1,279,335 $ 1,279,335 $ 1,225,668 Policy loans 0 0 1,263,413 1,263,413 1,263,413 Cash and cash equivalents 42,863 16,000 0 58,863 58,863 Accrued investment income 0 93,167 0 93,167 93,167 Receivables from parent and affiliates 0 140,992 0 140,992 140,992 Other assets 0 29,764 0 29,764 29,764 Total assets $ 42,863 $ 279,923 $ 2,542,748 $ 2,865,534 $ 2,811,867 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 1,225,951 $ 278,802 $ 1,504,753 $ 1,505,223 Cash collateral for loaned securities 0 7,083 0 7,083 7,083 Payables to parent and affiliates 0 146,207 0 146,207 146,207 Other liabilities 0 341,498 0 341,498 341,498 Total liabilities $ 0 $ 1,720,739 $ 278,802 $ 1,999,541 $ 2,000,011 December 31, 2018 Fair Value Carrying Amount(1) Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 1,214,350 $ 1,214,350 $ 1,209,150 Policy loans 0 0 1,236,077 1,236,077 1,236,077 Cash and cash equivalents 56,894 143,000 0 199,894 199,894 Accrued investment income 0 88,278 0 88,278 88,278 Receivables from parent and affiliates 0 154,938 0 154,938 154,938 Other assets 0 28,950 0 28,950 28,950 Total assets $ 56,894 $ 415,166 $ 2,450,427 $ 2,922,487 $ 2,917,287 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 1,206,747 $ 272,322 $ 1,479,069 $ 1,486,929 Cash collateral for loaned securities 0 11,063 0 11,063 11,063 Payables to parent and affiliates 0 229,345 0 229,345 229,345 Other liabilities 0 372,997 0 372,997 372,997 Total liabilities $ 0 $ 1,820,152 $ 272,322 $ 2,092,474 $ 2,100,334 (1) Carrying values presented herein differ from those in the Company’s Unaudited Interim Consolidated Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or are out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments. |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Impact on Statements of Financial Position | Reinsurance amounts included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as of June 30, 2019 and December 31, 2018 were as follows: June 30, 2019 December 31, 2018 (in thousands) Reinsurance recoverables $ 38,946,785 $ 34,682,127 Policy loans (134,453 ) (130,502 ) Deferred policy acquisition costs (6,912,973 ) (7,267,847 ) Deferred sales inducements (557,073 ) (562,052 ) Other assets(1) 165,706 185,573 Policyholders’ account balances 4,959,484 5,004,112 Future policy benefits 3,914,630 3,376,048 Other liabilities(2) 787,950 621,856 (1) “Other assets” includes $0.1 million of unaffiliated activity as of both June 30, 2019 and December 31, 2018 . (2) “Other liabilities” includes $35 million and $27 million of unaffiliated activity as of June 30, 2019 and December 31, 2018 , respectively. |
Reinsurance Recoverable by Counterparty | The reinsurance recoverables by counterparty are broken out below: June 30, 2019 December 31, 2018 (in thousands) PAR U $ 11,963,017 $ 11,444,032 PALAC 11,483,993 8,828,190 PURC 4,371,948 4,127,455 PARCC 2,480,256 2,527,690 GUL Re 2,110,403 2,017,810 PAR Term 1,726,036 1,678,745 Prudential Insurance 1,624,532 1,226,917 Prudential of Taiwan 1,426,279 1,414,669 Term Re 1,417,733 1,259,141 DART 220,163 119,946 Unaffiliated 122,425 37,532 Total reinsurance recoverables $ 38,946,785 $ 34,682,127 |
Reinsurance Impact on Statements of Operations and Comprehensive Income (Loss) | Reinsurance amounts, included in the Company’s Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, were as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) Premiums: Direct $ 476,986 $ 449,613 $ 939,257 $ 891,568 Assumed(1) 52 58 106 118 Ceded(2) (464,621 ) (434,768 ) (912,952 ) (868,868 ) Net premiums 12,417 14,903 26,411 22,818 Policy charges and fee income: Direct 1,106,725 717,264 1,959,920 1,563,511 Assumed 128,748 122,695 255,707 244,404 Ceded(3) (1,086,802 ) (670,955 ) (1,927,767 ) (1,509,756 ) Net policy charges and fee income 148,671 169,004 287,860 298,159 Net investment income: Direct 106,949 82,957 201,507 162,106 Assumed 407 385 803 758 Ceded (1,794 ) (1,693 ) (3,498 ) (3,300 ) Net investment income 105,562 81,649 198,812 159,564 Asset administration fees: Direct 87,951 86,695 171,819 173,728 Assumed 0 0 0 0 Ceded (83,990 ) (83,151 ) (164,201 ) (166,711 ) Net asset administration fees 3,961 3,544 7,618 7,017 Other income: Direct 20,030 12,093 39,828 29,346 Assumed(4) (1,271 ) (100 ) (1,471 ) (190 ) Ceded (39 ) 226 (62 ) 173 Amortization of reinsurance income (3,722 ) 3,859 (2,340 ) 6,045 Net other income 14,998 16,078 35,955 35,374 Realized investment gains (losses), net: Direct (1,783,941 ) 503,522 (2,419,452 ) 1,978,284 Assumed 0 0 0 0 Ceded(5) 1,731,691 (540,412 ) 2,318,567 (2,064,216 ) Realized investment gains (losses), net (52,250 ) (36,890 ) (100,885 ) (85,932 ) Policyholders’ benefits (including change in reserves): Direct 1,150,985 644,501 1,797,296 1,296,173 Assumed(6) 282,961 146,405 494,711 259,207 Ceded(7) (1,387,655 ) (750,465 ) (2,206,238 ) (1,463,203 ) Net policyholders’ benefits (including change in reserves) 46,291 40,441 85,769 92,177 Interest credited to policyholders’ account balances: Direct 118,420 121,478 213,111 246,212 Assumed 34,512 34,849 65,169 71,366 Ceded (102,222 ) (113,772 ) (183,373 ) (234,225 ) Net interest credited to policyholders’ account balances 50,710 42,555 94,907 83,353 Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization (573,978 ) (345,280 ) (917,993 ) (779,192 ) (1) "Premiums assumed" includes $0 million of unaffiliated activity for both the three months ended June 30, 2019 and 2018 , respectively and $0.1 million for both the six months ended June 30, 2019 and 2018 , respectively. (2) "Premiums ceded" includes $(0.1) million and $0 million of unaffiliated activity for the three months ended June 30, 2019 , and 2018 respectively and $(0.2) million and $0 million for the six months ended June 30, 2019 and 2018 , respectively. (3) "Policy charges and fee income ceded" includes $(7) million and $(4) million of unaffiliated activity for the three months ended June 30, 2019 and 2018 , respectively, and $(12) million and $(6) million for the six months ended June 30, 2019 and 2018, respectively. (4) "Other income assumed" includes $(1) million and $(0.1) million of unaffiliated activity for the three months ended June 30, 2019 and 2018 , respectively, and $(2) million and $(0.2) million for the six months ended June 30, 2019 and 2018, respectively. (5) “Realized investment gains (losses), net ceded” includes $42 million and $(10) million of unaffiliated activity for the three months ended June 30, 2019 and 2018 , respectively, and $56 million and $(48) million for the six months ended June 30, 2019 and 2018, respectively. (6) "Policyholders' benefits (including change in reserves) assumed" includes $0 million of unaffiliated activity for both the three months ended June 30, 2019 and 2018 , respectively, and $(0.2) million and $(0.1) million for the six months ended June 30, 2019 , and 2018, respectively. (7) "Policyholders' benefits (including change in reserves) ceded" includes $(2) million of unaffiliated activity for both the three months ended June 30, 2019 and 2018 , and $(4) million for both the six months ended June 30, 2019 and 2018. |
Gross and Net Life Insurance in Force | The gross and net amounts of life insurance face amount in force as of June 30, 2019 and 2018 were as follows: 2019 2018 (in thousands) Direct gross life insurance face amount in force $ 966,542,451 $ 908,332,587 Assumed gross life insurance face amount in force 40,382,452 41,317,052 Reinsurance ceded (925,430,727 ) (876,823,569 ) Net life insurance face amount in force $ 81,494,176 $ 72,826,070 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | The balance of and changes in each component of AOCI as of and for the six months ended June 30, 2019 and 2018 , are as follows: Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustment Net Unrealized Investment Gains (Losses)(1) Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, December 31, 2018 $ (17,448 ) $ (10,848 ) $ (28,296 ) Change in OCI before reclassifications 7,007 332,927 339,934 Amounts reclassified from AOCI 0 10,672 10,672 Income tax benefit (expense) 2 (72,147 ) (72,145 ) Balance, June 30, 2019 $ (10,439 ) $ 260,604 $ 250,165 Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustment Net Unrealized Investment Gains (Losses)(1) Total Accumulated Other Comprehensive Income (Loss) (in thousands) Balance, December 31, 2017 $ (234 ) $ 165,580 $ 165,346 Change in OCI before reclassifications (6,590 ) (223,420 ) (230,010 ) Amounts reclassified from AOCI 0 (3,634 ) (3,634 ) Income tax benefit (expense) 1,384 47,679 49,063 Cumulative effect of adoption of ASU 2016-01 0 (1,539 ) (1,539 ) Cumulative effect of adoption of ASU 2018-02 (50 ) 30,499 30,449 Balance, June 30, 2018 $ (5,490 ) $ 15,165 $ 9,675 (1) Includes cash flow hedges of $29 million and $(18) million as of June 30, 2019 and December 31, 2018 , respectively, and $(9) million and $41 million as of June 30, 2018 and December 31, 2017 , respectively . |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of Accumulated Other Comprehensive Income (Loss) Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) Amounts reclassified from AOCI (1)(2): Net unrealized investment gains (losses): Cash flow hedges - Currency/Interest rate(3) $ (4,393 ) $ 7,442 $ (3,999 ) $ 7,761 Net unrealized investment gains (losses) on available-for-sale securities (2,489 ) (3,318 ) (6,673 ) (4,127 ) Total net unrealized investment gains (losses)(4) (6,882 ) 4,124 (10,672 ) 3,634 Total reclassifications for the period $ (6,882 ) $ 4,124 $ (10,672 ) $ 3,634 (1) All amounts are shown before tax. (2) Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI. (3) See Note 4 for additional information on cash flow hedges. (4) See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition and other costs, future policy benefits, policyholders’ account balances and other liabilities. |
OTTI Net Unrealized Investment Gains (Losses) AOCI Rollforward | The amounts for the periods indicated below, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains (losses), are as follows: Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities on which an OTTI loss has been recognized Net Unrealized Gains (Losses) on Investments Deferred Policy Acquisition Costs and Other Costs(2) Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(3) Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) (in thousands) Balance, December 31, 2018 $ (689 ) $ (152 ) $ 37 $ (192 ) $ (996 ) Net investment gains (losses) on investments arising during the period 1,568 0 0 (329 ) 1,239 Reclassification adjustment for (gains) losses included in net income (137 ) 0 0 29 (108 ) Reclassification adjustment for OTTI (gains) losses excluded from net income(1) (207 ) 0 0 43 (164 ) Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 105 0 (22 ) 83 Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities 0 0 (127 ) 27 (100 ) Balance, June 30, 2019 $ 535 $ (47 ) $ (90 ) $ (444 ) $ (46 ) (1) Represents "transfers in" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. (2) "Other costs" primarily includes reinsurance recoverables and deferred reinsurance losses. (3) "Other liabilities" primarily includes reinsurance payables. |
All Other Net Unrealized Investment Gains (Losses) in AOCI Rollforward | All Other Net Unrealized Investment Gains (Losses) in AOCI Net Unrealized Gains (Losses) on Investments(2) Deferred Policy Acquisition Costs and Other Costs(3) Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(4) Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) (in thousands) Balance, December 31, 2018 $ (16,632 ) $ (65,743 ) $ 68,005 $ 4,518 $ (9,852 ) Net investment gains (losses) on investments arising during the period 375,628 0 0 (78,873 ) 296,755 Reclassification adjustment for (gains) losses included in net income 10,809 0 0 (2,270 ) 8,539 Reclassification adjustment for OTTI (gains) losses excluded from net income(1) 207 0 0 (43 ) 164 Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs 0 176,301 0 (37,019 ) 139,282 Impact of net unrealized investment (gains) losses on future policy benefits, policyholders' account balances and other liabilities 0 0 (220,548 ) 46,310 (174,238 ) Balance, June 30, 2019 $ 370,012 $ 110,558 $ (152,543 ) $ (67,377 ) $ 260,650 (1) Represents "transfers out" related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. (2) Includes cash flow hedges. See Note 4 for information on cash flow hedges. (3) "Other costs" primarily includes reinsurance recoverables and deferred reinsurance losses. (4) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Affiliated Notes Receivable | Affiliated notes receivable included in “Receivables from parent and affiliates” at June 30, 2019 and December 31, 2018 were as follows: Maturity Dates Interest Rates June 30, 2019 December 31, 2018 (in thousands) U.S. dollar floating rate notes 2028 3.74% - 4.03 % $ 0 $ 6,502 U.S. dollar fixed rate notes 2020 - 2027 0.00% - 14.85 % 127,862 128,140 Total notes receivable - affiliated(1) $ 127,862 $ 134,642 (1) All notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances. |
Affiliated Asset Transfers | The table below shows affiliated asset trades for the six months ended June 30, 2019 and for the year ended December 31, 2018 . Affiliate Date Transaction Security Type Fair Value Book Value APIC, Net of Tax Increase/(Decrease) Realized Investment Gain (Loss) (in thousands) DART January 2018 Purchase Other Invested Assets $ 21,457 $ 21,457 $ 0 $ 0 PALAC April 2018 Purchase Fixed Maturities $ 64,313 $ 64,313 $ 0 $ 0 GUL Re May 2018 Purchase Fixed Maturities $ 87,486 $ 87,486 $ 0 $ 0 GUL Re May 2018 Purchase Fixed Maturities $ 37,921 $ 37,921 $ 0 $ 0 Prudential Realty Securities, Inc. November 2018 Purchase Commercial Mortgages $ 3,259 $ 3,425 $ 0 $ (167 ) Prudential Insurance February 2019 Sale Commercial Mortgages $ 4,995 $ 5,000 $ (4 ) $ 0 PALAC April 2019 Sale Equity Securities $ 14,525 $ 13,466 $ 0 $ 1,059 |
Business and Basis of Present_2
Business and Basis of Presentation (Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019subsidiary | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Number Of Subsidiaries | 1 | |
Indirect subsidiary dissolved in December 31, 2018 | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Number Of Subsidiaries | 1 | |
Income (loss) from operations before income taxes and equity in earnings of operating joint venture | ||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||
Out of Period Adjustment | $ | $ 11 |
Investments (Fixed Maturities S
Investments (Fixed Maturities Securities Excluding Investments Classified as Trading) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 5,623,693 | $ 5,244,903 |
Fair Value | 5,956,391 | 5,199,595 |
Fixed maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5,623,693 | 5,244,903 |
Gross Unrealized Gains | 369,406 | 96,757 |
Gross Unrealized Losses | 36,708 | 142,065 |
Fair Value | 5,956,391 | 5,199,595 |
Fixed maturities | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 79,486 | 75,049 |
Gross Unrealized Gains | 3,116 | 2,427 |
Gross Unrealized Losses | 0 | 6 |
Fair Value | 82,602 | 77,470 |
Fixed maturities | Obligations of U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 607,413 | 609,955 |
Gross Unrealized Gains | 46,606 | 15,154 |
Gross Unrealized Losses | 0 | 2,351 |
Fair Value | 654,019 | 622,758 |
Fixed maturities | Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 210,007 | 208,009 |
Gross Unrealized Gains | 18,321 | 2,137 |
Gross Unrealized Losses | 14 | 8,199 |
Fair Value | 228,314 | 201,947 |
Fixed maturities | U.S. public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,046,091 | 1,739,860 |
Gross Unrealized Gains | 188,116 | 46,166 |
Gross Unrealized Losses | 5,626 | 54,401 |
Fair Value | 2,228,581 | 1,731,625 |
Fixed maturities | U.S. private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 895,094 | 890,748 |
Gross Unrealized Gains | 37,967 | 11,181 |
Gross Unrealized Losses | 5,825 | 18,591 |
Fair Value | 927,236 | 883,338 |
Fixed maturities | Foreign public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 290,982 | 270,428 |
Gross Unrealized Gains | 20,330 | 3,746 |
Gross Unrealized Losses | 1,955 | 12,151 |
Fair Value | 309,357 | 262,023 |
Fixed maturities | Foreign private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 904,665 | 857,604 |
Gross Unrealized Gains | 36,202 | 9,797 |
Gross Unrealized Losses | 22,921 | 40,022 |
Fair Value | 917,946 | 827,379 |
Fixed maturities | Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 139,728 | 156,818 |
Gross Unrealized Gains | 1,481 | 1,528 |
Gross Unrealized Losses | 287 | 750 |
Fair Value | 140,922 | 157,596 |
Fixed maturities | Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 366,856 | 347,570 |
Gross Unrealized Gains | 14,736 | 3,353 |
Gross Unrealized Losses | 10 | 4,527 |
Fair Value | 381,582 | 346,396 |
Fixed maturities | Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 83,371 | 88,862 |
Gross Unrealized Gains | 2,531 | 1,268 |
Gross Unrealized Losses | 70 | 1,067 |
Fair Value | 85,832 | 89,063 |
OTTI | Fixed maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | (231) | (299) |
Net Unrealized Gains (Losses) | 700 | 400 |
OTTI | Fixed maturities | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | Obligations of U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | U.S. public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | U.S. private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | Foreign public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | Foreign private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | (79) | (122) |
OTTI | Fixed maturities | Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | 0 | 0 |
OTTI | Fixed maturities | Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
OTTI in AOCI | $ (152) | $ (177) |
Investments (Fair Value and Los
Investments (Fair Value and Losses by Investment Category and Length of Time in a Loss Position) (Details) - Fixed maturities - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | $ 190,512 | $ 1,996,758 |
Less than Twelve Months, Gross Unrealized Losses | 4,890 | 81,764 |
Twelve Months or More, Fair Value | 447,537 | 947,390 |
Twelve Months or More, Gross Unrealized Losses | 31,818 | 60,301 |
Total, Fair Value | 638,049 | 2,944,148 |
Total, Gross Unrealized Losses | 36,708 | 142,065 |
US Treasury securities and obligations of U.S. government authorities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 0 | 0 |
Less than Twelve Months, Gross Unrealized Losses | 0 | 0 |
Twelve Months or More, Fair Value | 0 | 630 |
Twelve Months or More, Gross Unrealized Losses | 0 | 6 |
Total, Fair Value | 0 | 630 |
Total, Gross Unrealized Losses | 0 | 6 |
Obligations of U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 0 | 124,776 |
Less than Twelve Months, Gross Unrealized Losses | 0 | 1,571 |
Twelve Months or More, Fair Value | 0 | 31,215 |
Twelve Months or More, Gross Unrealized Losses | 0 | 780 |
Total, Fair Value | 0 | 155,991 |
Total, Gross Unrealized Losses | 0 | 2,351 |
Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 0 | 77,055 |
Less than Twelve Months, Gross Unrealized Losses | 0 | 3,184 |
Twelve Months or More, Fair Value | 8,511 | 59,700 |
Twelve Months or More, Gross Unrealized Losses | 14 | 5,015 |
Total, Fair Value | 8,511 | 136,755 |
Total, Gross Unrealized Losses | 14 | 8,199 |
U.S. public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 9,171 | 784,916 |
Less than Twelve Months, Gross Unrealized Losses | 69 | 37,635 |
Twelve Months or More, Fair Value | 140,380 | 213,147 |
Twelve Months or More, Gross Unrealized Losses | 5,557 | 16,766 |
Total, Fair Value | 149,551 | 998,063 |
Total, Gross Unrealized Losses | 5,626 | 54,401 |
U.S. private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 24,292 | 263,934 |
Less than Twelve Months, Gross Unrealized Losses | 3,547 | 9,159 |
Twelve Months or More, Fair Value | 54,624 | 287,031 |
Twelve Months or More, Gross Unrealized Losses | 2,278 | 9,432 |
Total, Fair Value | 78,916 | 550,965 |
Total, Gross Unrealized Losses | 5,825 | 18,591 |
Foreign public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 815 | 124,764 |
Less than Twelve Months, Gross Unrealized Losses | 0 | 6,286 |
Twelve Months or More, Fair Value | 33,148 | 72,725 |
Twelve Months or More, Gross Unrealized Losses | 1,955 | 5,865 |
Total, Fair Value | 33,963 | 197,489 |
Total, Gross Unrealized Losses | 1,955 | 12,151 |
Foreign private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 80,817 | 424,921 |
Less than Twelve Months, Gross Unrealized Losses | 1,041 | 22,605 |
Twelve Months or More, Fair Value | 184,542 | 127,201 |
Twelve Months or More, Gross Unrealized Losses | 21,880 | 17,417 |
Total, Fair Value | 265,359 | 552,122 |
Total, Gross Unrealized Losses | 22,921 | 40,022 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 75,417 | 112,527 |
Less than Twelve Months, Gross Unrealized Losses | 233 | 650 |
Twelve Months or More, Fair Value | 15,424 | 6,523 |
Twelve Months or More, Gross Unrealized Losses | 54 | 100 |
Total, Fair Value | 90,841 | 119,050 |
Total, Gross Unrealized Losses | 287 | 750 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 0 | 49,616 |
Less than Twelve Months, Gross Unrealized Losses | 0 | 434 |
Twelve Months or More, Fair Value | 2,961 | 116,786 |
Twelve Months or More, Gross Unrealized Losses | 10 | 4,093 |
Total, Fair Value | 2,961 | 166,402 |
Total, Gross Unrealized Losses | 10 | 4,527 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 0 | 34,249 |
Less than Twelve Months, Gross Unrealized Losses | 0 | 240 |
Twelve Months or More, Fair Value | 7,947 | 32,432 |
Twelve Months or More, Gross Unrealized Losses | 70 | 827 |
Total, Fair Value | 7,947 | 66,681 |
Total, Gross Unrealized Losses | $ 70 | $ 1,067 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Investment [Line Items] | |||||
Securities sold under agreements to repurchase | $ 0 | $ 0 | $ 0 | ||
Commercial mortgage loans, Percentage | 100.00% | 100.00% | 100.00% | ||
Commercial mortgage and other loans, Acquired | $ 0 | $ 0 | $ 0 | $ 0 | |
Commercial mortgage and other loans, Sold | 0 | 0 | 5,000,000 | 0 | |
Fixed maturities | |||||
Investment [Line Items] | |||||
Gross unrealized losses | 36,708,000 | 36,708,000 | $ 142,065,000 | ||
Gross unrealized losses of twelve months or more concentrated in various sectors | 31,818,000 | 31,818,000 | 60,301,000 | ||
NAIC high or highest quality rating | Fixed maturities | |||||
Investment [Line Items] | |||||
Gross unrealized losses | 23,900,000 | 23,900,000 | 121,300,000 | ||
NAIC other than high or highest quality rating | Fixed maturities | |||||
Investment [Line Items] | |||||
Gross unrealized losses | $ 12,800,000 | $ 12,800,000 | 20,800,000 | ||
California | |||||
Investment [Line Items] | |||||
Commercial mortgage loans, Percentage | 21.00% | 21.00% | |||
Texas | |||||
Investment [Line Items] | |||||
Commercial mortgage loans, Percentage | 14.00% | 14.00% | |||
New York | |||||
Investment [Line Items] | |||||
Commercial mortgage loans, Percentage | 7.00% | 7.00% | |||
Europe | |||||
Investment [Line Items] | |||||
Commercial mortgage loans, Percentage | 6.00% | 6.00% | |||
Australia | |||||
Investment [Line Items] | |||||
Commercial mortgage loans, Percentage | 4.00% | 4.00% | |||
Mexico | |||||
Investment [Line Items] | |||||
Commercial mortgage loans, Percentage | 2.00% | 2.00% | |||
Other Income | Equity securities | |||||
Investment [Line Items] | |||||
Unrealized Gain (Loss) on Investments | $ (500,000) | $ (700,000) | $ 200,000 | $ (1,900,000) | |
Fixed maturities | |||||
Investment [Line Items] | |||||
Gross unrealized losses of twelve months or more concentrated in various sectors | $ 31,800,000 | $ 31,800,000 | $ 60,300,000 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Due in one year or less | $ 162,744 | |
Due after one year through five years | 701,515 | |
Due after five years through ten years | 1,005,349 | |
Due after ten years | 3,164,130 | |
Amortized Cost | 5,623,693 | $ 5,244,903 |
Fair Value | ||
Due in one year or less | 164,151 | |
Due after one year through five years | 707,518 | |
Due after five years through ten years | 1,046,082 | |
Due after ten years | 3,430,304 | |
Fair Value | 5,956,391 | $ 5,199,595 |
Asset-backed securities | ||
Amortized Cost | ||
Debt Maturities, without single maturity date | 139,728 | |
Fair Value | ||
Debt Maturities, without Single Maturity Date | 140,922 | |
Commercial mortgage-backed securities | ||
Amortized Cost | ||
Debt Maturities, without single maturity date | 366,856 | |
Fair Value | ||
Debt Maturities, without Single Maturity Date | 381,582 | |
Residential mortgage-backed securities | ||
Amortized Cost | ||
Debt Maturities, without single maturity date | 83,371 | |
Fair Value | ||
Debt Maturities, without Single Maturity Date | $ 85,832 |
Investments (Fixed Maturities_2
Investments (Fixed Maturities Securities Proceeds) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from maturities/prepayments | $ 179,330 | $ 247,967 | ||
Fixed maturities | Available-for-sale | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from sales | $ 28,231 | $ 117,235 | 53,018 | 134,087 |
Proceeds from maturities/prepayments | 75,554 | 85,808 | 128,429 | 140,118 |
Gross investment gains from sales and maturities | (1,384) | (30) | (435) | 114 |
Gross investment losses from sales and maturities | (1,105) | (3,231) | (3,075) | (3,590) |
OTTI recognized in earnings | $ 0 | $ (57) | (3,163) | (651) |
Non-cash related proceeds | $ 2,100 | $ 26,200 |
Investments (Credit Losses Reco
Investments (Credit Losses Recognized In Earnings on Fixed Maturity Securities Held by the Company) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Investments [Abstract] | ||||
Balance, beginning of period | $ 3,610 | $ 4,344 | $ 1,291 | $ 4,374 |
New credit loss impairments | 0 | 0 | 3,022 | 0 |
Increases due to the passage of time on previously recorded credit losses | 20 | 10 | 30 | 47 |
Reductions for securities which matured, paid down, prepaid or were sold during the period | (33) | (1,918) | (626) | (1,960) |
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected | (11) | (454) | (131) | (479) |
Balance, end of period | $ 3,586 | $ 1,982 | $ 3,586 | $ 1,982 |
Investments (Commercial Mortgag
Investments (Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 1,227,627 | $ 1,211,215 |
Commercial mortgage loans, Percentage | 100.00% | 100.00% |
Allowance for Credit Losses | $ (1,959) | $ (2,065) |
Total commercial mortgage and other loans | 1,225,668 | 1,209,150 |
Apartments and multi-family | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 355,719 | $ 362,811 |
Commercial mortgage loans, Percentage | 29.00% | 29.90% |
Hospitality | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 15,853 | $ 16,083 |
Commercial mortgage loans, Percentage | 1.30% | 1.30% |
Industrial | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 286,521 | $ 263,999 |
Commercial mortgage loans, Percentage | 23.20% | 21.80% |
Office | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 197,159 | $ 187,450 |
Commercial mortgage loans, Percentage | 16.10% | 15.50% |
Other | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 129,617 | $ 131,961 |
Commercial mortgage loans, Percentage | 10.60% | 10.90% |
Retail | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 189,040 | $ 193,473 |
Commercial mortgage loans, Percentage | 15.40% | 16.00% |
Commercial mortgage loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 1,173,909 | $ 1,155,777 |
Commercial mortgage loans, Percentage | 95.60% | 95.40% |
Agricultural property loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 53,718 | $ 55,438 |
Commercial mortgage loans, Percentage | 4.40% | 4.60% |
Investments (Allowance for Cred
Investments (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | $ 2,065 | $ 1,794 |
Addition to (release of) allowance for credit losses | (106) | 271 |
Charge-offs, net of recoveries | 0 | 0 |
Total ending balance | 1,959 | 2,065 |
Commercial Mortgage Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | 2,026 | 1,728 |
Addition to (release of) allowance for credit losses | (107) | 298 |
Charge-offs, net of recoveries | 0 | 0 |
Total ending balance | 1,919 | 2,026 |
Agricultural Property Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | 39 | 66 |
Addition to (release of) allowance for credit losses | 1 | (27) |
Charge-offs, net of recoveries | 0 | 0 |
Total ending balance | $ 40 | $ 39 |
Investments (Allowance for Cr_2
Investments (Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Allowance for credit losses: | |||
Individually evaluated for impairment | $ 0 | $ 0 | |
Collectively evaluated for impairment | 1,959 | 2,065 | |
Total ending balance | 1,959 | 2,065 | $ 1,794 |
Recorded investment: | |||
Individually evaluated for impairment | 0 | 816 | |
Collectively evaluated for impairment | 1,227,627 | 1,210,399 | |
Total ending balance | 1,227,627 | 1,211,215 | |
Receivables Acquired with Deteriorated Credit Quality | |||
Recorded investment: | |||
Financing Receivable Total | 0 | 0 | |
Commercial Mortgage Loans | |||
Allowance for credit losses: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 1,919 | 2,026 | |
Total ending balance | 1,919 | 2,026 | 1,728 |
Recorded investment: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 1,173,909 | 1,155,777 | |
Total ending balance | 1,173,909 | 1,155,777 | |
Agricultural Property Loans | |||
Allowance for credit losses: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 40 | 39 | |
Total ending balance | 40 | 39 | $ 66 |
Recorded investment: | |||
Individually evaluated for impairment | 0 | 816 | |
Collectively evaluated for impairment | 53,718 | 54,622 | |
Total ending balance | $ 53,718 | $ 55,438 |
Investments (Credit Quality Ind
Investments (Credit Quality Indicators) (Details) - Commercial Mortgage and Agricultural Loans - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 1,227,627 | $ 1,211,215 |
0%-59.99% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 728,685 | 709,358 |
60%-69.99% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 341,268 | 340,111 |
70%-79.99% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 157,447 | 133,517 |
80% and greater | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 227 | 28,229 |
≥ 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 1,172,884 | 1,151,820 |
≥ 1.2X | 0%-59.99% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 714,155 | 696,507 |
≥ 1.2X | 60%-69.99% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 324,198 | 321,586 |
≥ 1.2X | 70%-79.99% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 134,531 | 105,727 |
≥ 1.2X | 80% and greater | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 28,000 |
1.0X to 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 53,701 | 59,315 |
1.0X to 1.2X | 0%-59.99% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 13,715 | 12,771 |
1.0X to 1.2X | 60%-69.99% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 17,070 | 18,525 |
1.0X to 1.2X | 70%-79.99% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 22,916 | 27,790 |
1.0X to 1.2X | 80% and greater | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 229 |
Less than 1.0X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 1,042 | 80 |
Less than 1.0X | 0%-59.99% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 815 | 80 |
Less than 1.0X | 60%-69.99% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Less than 1.0X | 70%-79.99% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Less than 1.0X | 80% and greater | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 227 | $ 0 |
Investments (Analysis of Past D
Investments (Analysis of Past Due Commercial Mortgage, Agricultural and Other Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Current | $ 1,227,627 | $ 1,211,215 |
Total Loans | 1,227,627 | 1,211,215 |
Non-Accrual Status | 0 | 0 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 1,173,909 | 1,155,777 |
Total Loans | 1,173,909 | 1,155,777 |
Non-Accrual Status | 0 | 0 |
Commercial mortgage loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial mortgage loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial mortgage loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Agricultural property loans | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 53,718 | 55,438 |
Total Loans | 53,718 | 55,438 |
Non-Accrual Status | 0 | 0 |
Agricultural property loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Agricultural property loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Agricultural property loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Interest | $ 0 | $ 0 |
Investments (Other Invested Ass
Investments (Other Invested Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Other Invested Assets [Line Items] | ||
Other invested assets | $ 394,951 | $ 377,429 |
Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 333,162 | 286,490 |
Company’s investment in separate accounts | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 43,497 | 40,126 |
Derivative Instruments | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 18,292 | 50,813 |
Equity Method | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 263,938 | 216,586 |
Equity Method | Private equity | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 183,095 | 149,164 |
Equity Method | Hedge funds | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 61,090 | 57,171 |
Equity Method | Real estate-related | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 19,753 | 10,251 |
Fair Value | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 69,224 | 69,904 |
Fair Value | Private equity | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 57,156 | 60,118 |
Fair Value | Hedge funds | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 778 | 762 |
Fair Value | Real estate-related | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | $ 11,290 | $ 9,024 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | $ 110,017 | $ 86,177 | $ 207,724 | $ 168,671 |
Less: investment expenses | (4,455) | (4,528) | (8,912) | (9,107) |
Net investment income | 105,562 | 81,649 | 198,812 | 159,564 |
Equity securities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 221 | 221 | 442 | 442 |
Commercial mortgage and other loans | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 13,435 | 12,303 | 25,926 | 24,708 |
Policy loans | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 16,766 | 16,329 | 32,965 | 32,233 |
Short-term investments and cash equivalents | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 1,839 | 114 | 4,150 | 437 |
Other invested assets | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 18,060 | 1,743 | 27,971 | 1,858 |
Available-for-sale | Fixed maturities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 59,370 | 55,195 | 115,636 | 108,455 |
Trading | Fixed maturities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | $ 326 | $ 272 | $ 634 | $ 538 |
Investments (Realized Investmen
Investments (Realized Investment Gains Losses, Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | $ (52,250) | $ (36,890) | $ (100,885) | $ (85,932) |
Fixed maturities | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | (2,489) | (3,318) | (6,673) | (4,127) |
Commercial mortgage and other loans | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | 99 | (125) | 106 | 6 |
LPs/LLCs | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | 0 | 2 | 12 | 849 |
Derivatives | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | (49,846) | (33,448) | (94,323) | (82,641) |
Short-term investments and cash equivalents | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | $ (14) | $ (1) | $ (7) | $ (19) |
Investments (Net Unrealized Gai
Investments (Net Unrealized Gains Losses on Investments by Asset Class) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Gain (Loss) on Securities [Line Items] | ||
Net Unrealized Gains (Losses) on Investments | $ 370,547 | $ (17,321) |
Fixed maturities | Available-for-sale | OTTI | ||
Gain (Loss) on Securities [Line Items] | ||
Net Unrealized Gains (Losses) on Investments | 535 | (689) |
Fixed maturities | Available-for-sale | All other | ||
Gain (Loss) on Securities [Line Items] | ||
Net Unrealized Gains (Losses) on Investments | 332,163 | (44,619) |
Derivatives designated as cash flow hedges | ||
Gain (Loss) on Securities [Line Items] | ||
Net Unrealized Gains (Losses) on Investments | 28,757 | 22,122 |
Affiliated notes | ||
Gain (Loss) on Securities [Line Items] | ||
Net Unrealized Gains (Losses) on Investments | 4,025 | 810 |
Other investments | ||
Gain (Loss) on Securities [Line Items] | ||
Net Unrealized Gains (Losses) on Investments | $ 5,067 | $ 5,055 |
Investments (Repurchase Agreeme
Investments (Repurchase Agreement and Securities Lending) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | $ 7,083 | $ 11,063 |
Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 7,083 | 11,063 |
Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 0 |
30 days or greater | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 0 |
US Treasury securities and obligations of U.S. government authorities and agencies | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 8,169 |
US Treasury securities and obligations of U.S. government authorities and agencies | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 8,169 |
US Treasury securities and obligations of U.S. government authorities and agencies | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 0 |
U.S. public corporate securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 4,636 | 628 |
U.S. public corporate securities | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 4,636 | 628 |
U.S. public corporate securities | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 0 |
Foreign public corporate securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 2,447 | 2,266 |
Foreign public corporate securities | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 2,447 | 2,266 |
Foreign public corporate securities | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | $ 0 | $ 0 |
Derivative Instruments (Gross N
Derivative Instruments (Gross Notional Amount and Fair Value of Derivatives Contracts) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Notional | $ 3,810,870 | $ 3,070,256 |
Assets | 182,340 | 77,890 |
Liabilities | (53,828) | (26,862) |
Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 751,074 | 719,476 |
Assets | 43,962 | 38,333 |
Liabilities | (15,484) | (16,638) |
Derivatives Designated as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Notional | 751,074 | 719,476 |
Assets | 43,962 | 38,333 |
Liabilities | (15,484) | (16,638) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 3,059,796 | 2,350,780 |
Assets | 138,378 | 39,557 |
Liabilities | (38,344) | (10,224) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional | 596,925 | 246,925 |
Assets | 31,580 | 15,665 |
Liabilities | (4,511) | (3,174) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Forwards | ||
Derivative [Line Items] | ||
Notional | 27,935 | 23,043 |
Assets | 262 | 277 |
Liabilities | (100) | (20) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Default Swaps | ||
Derivative [Line Items] | ||
Notional | 0 | 756 |
Assets | 0 | 0 |
Liabilities | 0 | (9) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Notional | 128,088 | 98,363 |
Assets | 7,836 | 6,303 |
Liabilities | (1,244) | (2,109) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Options | ||
Derivative [Line Items] | ||
Notional | 2,306,848 | 1,981,693 |
Assets | 98,700 | 17,312 |
Liabilities | $ (32,489) | $ (4,912) |
Derivative Instruments (Offsett
Derivative Instruments (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Derivatives Assets | ||
Gross Amounts of Recognized Financial Instruments | $ 182,336 | $ 77,887 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (163,984) | (27,078) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 18,352 | 50,809 |
Financial Instruments/Collateral | (18,352) | (7,307) |
Net Amount | 0 | 43,502 |
Securities Purchased under Agreements to Resell | ||
Gross Amounts of Recognized Financial Instruments | 16,000 | 143,000 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Consolidated Statement of Financial Position | 16,000 | 143,000 |
Financial Instruments/Collateral | (16,000) | (143,000) |
Net Amount | 0 | 0 |
Total Assets | ||
Gross Amounts of Recognized Financial Instruments | 198,336 | 220,887 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (163,984) | (27,078) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 34,352 | 193,809 |
Financial Instruments/Collateral | (34,352) | (150,307) |
Net Amount | 0 | 43,502 |
Derivatives Liabilities | ||
Gross Amounts of Recognized Financial Instruments | 53,828 | 26,862 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (53,828) | (26,862) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 0 | 0 |
Financial Instruments/Collateral | 0 | 0 |
Net Amount | 0 | 0 |
Securities Sold under Agreements to Repurchase | ||
Gross Amounts of Recognized Financial Instruments | 0 | 0 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Consolidated Statement of Financial Position | 0 | 0 |
Financial Instruments/Collateral | 0 | 0 |
Net Amount | 0 | 0 |
Total Liabilities | ||
Gross Amounts of Recognized Financial Instruments | 53,828 | 26,862 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (53,828) | (26,862) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 0 | 0 |
Financial Instruments/Collateral | 0 | 0 |
Net Amount | $ 0 | $ 0 |
Derivative Instruments (Financi
Derivative Instruments (Financial Statement Classification and Impact of Derivatives Used in Qualifying and Non-qualifying Hedge Relationships) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | $ (49,846) | $ (33,448) | $ (94,323) | $ (82,641) |
Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 2,211 | 1,611 | 4,280 | 3,149 |
Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 1,486 | 5,748 | (29) | 5,061 |
AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 13,316 | 31,519 | 6,662 | 8,657 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | (88) | 83 | (248) | (433) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 2,211 | 1,611 | 4,280 | 3,149 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 1,482 | 5,710 | (34) | 5,046 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 13,316 | 31,519 | 6,662 | 8,657 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | (88) | 83 | (248) | (433) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 2,211 | 1,611 | 4,280 | 3,149 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 1,482 | 5,710 | (34) | 5,046 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 13,316 | 31,519 | 6,662 | 8,657 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | (49,758) | (33,531) | (94,075) | (82,208) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 4 | 38 | 5 | 15 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 7,682 | (3,126) | 15,297 | (12,526) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 343 | 1,221 | 323 | 665 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 1,673 | 4,844 | 3,103 | 1,509 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 4 | 38 | 5 | 15 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | (1) | (2) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 12,666 | 7,581 | 41,529 | 2,824 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | (72,122) | (44,051) | (154,326) | (74,678) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Instruments (Current
Derivative Instruments (Current Period Cash Flow Hedges in AOCI (loss) before Taxes) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Cumulative effect of adoption | $ (27) | |
Cash flow hedgers in AOCI | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Balance, beginning | $ 22,122 | |
Amount Recorded in AOCI | 10,661 | |
Amounts reclassified into current period earnings | (3,999) | |
Balance, ending | 28,757 | |
Currency/Interest Rate | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Amount Recorded in AOCI | 10,661 | |
Amounts reclassified into current period earnings | $ (3,999) |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 8 | |
Credit Protection Purchased Notional Amounts | 0 | $ 1 |
Credit Derivative Protection Purchased Fair Value Asset (Liability) | 0 | 0 |
Future Policy Benefits | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net | (8,477) | (5,589) |
Reinsurance Recoverables | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net | 8,486 | 5,600 |
Reinsurance Recoverables | PALAC and Prudential Insurance | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net | 8,398 | 5,585 |
Reinsurance Recoverables | Union Hamilton Reinsurance, Ltd. | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net | 88 | 15 |
Policyholders' account balances | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net | $ (787) | $ (13) |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities (Balances of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | $ 5,956,391 | $ 5,199,595 |
Fixed maturities, trading | 49,417 | 41,627 |
Equity securities | 17,774 | 36,922 |
Short-term Investments | 94 | 0 |
Other invested assets | 394,951 | 377,429 |
Reinsurance recoverables | 38,946,785 | 34,682,127 |
Receivables from parent and affiliates | 268,854 | 289,580 |
Separate account assets | 132,731,982 | 119,077,916 |
TOTAL ASSETS | 183,522,135 | 164,680,784 |
Future policy benefits | 24,169,202 | 19,476,394 |
Payables to parent and affiliates | 146,207 | 229,345 |
Total liabilities | 180,375,338 | 161,947,553 |
Future policy benefits | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net Liability | 8,477,000 | 5,589,000 |
Embedded Derivative, Fair Value of Embedded Derivative Gross Asset | 519,000 | 633,000 |
Embedded Derivative, Fair Value of Embedded Derivative Gross Liability | 8,996,000 | 6,222,000 |
Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 5,956,391 | 5,199,595 |
Fixed maturities, trading | 49,417 | 41,627 |
Equity securities | 17,774 | 36,922 |
Short-term Investments | 94 | 0 |
Cash equivalents | 356,634 | 216,946 |
Other invested assets | 18,356 | 50,812 |
Reinsurance recoverables | 8,485,905 | 5,600,008 |
Receivables from parent and affiliates | 127,862 | 134,642 |
Subtotal excluding separate account assets | 15,012,433 | 11,280,552 |
Separate account assets | 128,180,358 | 114,947,872 |
TOTAL ASSETS | 143,192,791 | 126,228,424 |
Future policy benefits | 8,476,541 | 5,588,840 |
Policyholders’ account balances | 786,969 | 13,015 |
Payables to parent and affiliates | 0 | 0 |
Total liabilities | 9,263,510 | 5,601,855 |
Asset Netting | (163,984) | (27,078) |
Liability Netting | (53,828) | (26,862) |
Netting | 110,200 | 200 |
Fair Value, Measurements, Recurring | Other invested assets | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Asset Netting | (163,984) | (27,078) |
Fair Value, Measurements, Recurring | Payables to parent and affiliates | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liability Netting | (53,828) | (26,862) |
Fair Value, Measurements, Recurring | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 82,602 | 77,470 |
Fair Value, Measurements, Recurring | Obligations of U.S. states and their political subdivisions | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 654,019 | 622,758 |
Fair Value, Measurements, Recurring | Foreign government bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 228,314 | 201,947 |
Fair Value, Measurements, Recurring | U.S. corporate public securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 2,228,581 | 1,731,625 |
Fair Value, Measurements, Recurring | U.S. corporate private securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 927,236 | 883,338 |
Fair Value, Measurements, Recurring | Foreign corporate public securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 309,357 | 262,023 |
Fair Value, Measurements, Recurring | Foreign corporate private securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 917,946 | 827,379 |
Fair Value, Measurements, Recurring | Asset-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 140,922 | 157,596 |
Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 381,582 | 346,396 |
Fair Value, Measurements, Recurring | Residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 85,832 | 89,063 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fixed maturities, trading | 0 | 0 |
Equity securities | 116 | 131 |
Short-term Investments | 0 | 0 |
Cash equivalents | 0 | 69,903 |
Other invested assets | 0 | 0 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 0 | 0 |
Subtotal excluding separate account assets | 116 | 70,034 |
Separate account assets | 0 | 0 |
TOTAL ASSETS | 116 | 70,034 |
Future policy benefits | 0 | 0 |
Policyholders’ account balances | 0 | 0 |
Payables to parent and affiliates | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Obligations of U.S. states and their political subdivisions | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign government bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. corporate public securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. corporate private securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign corporate public securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign corporate private securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Asset-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Commercial mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 5,863,523 | 5,106,635 |
Fixed maturities, trading | 48,812 | 41,627 |
Equity securities | 553 | 20,794 |
Short-term Investments | 0 | 0 |
Cash equivalents | 356,634 | 147,043 |
Other invested assets | 182,336 | 77,886 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 121,567 | 125,381 |
Subtotal excluding separate account assets | 6,573,425 | 5,519,366 |
Separate account assets | 128,180,358 | 114,947,872 |
TOTAL ASSETS | 134,753,783 | 120,467,238 |
Future policy benefits | 0 | 0 |
Policyholders’ account balances | 0 | 0 |
Payables to parent and affiliates | 53,828 | 26,862 |
Total liabilities | 53,828 | 26,862 |
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 48,210 | 47,654 |
Fair Value, Measurements, Recurring | Level 2 | Obligations of U.S. states and their political subdivisions | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 654,019 | 622,758 |
Fair Value, Measurements, Recurring | Level 2 | Foreign government bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 228,149 | 201,947 |
Fair Value, Measurements, Recurring | Level 2 | U.S. corporate public securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 2,228,578 | 1,731,623 |
Fair Value, Measurements, Recurring | Level 2 | U.S. corporate private securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 885,288 | 838,497 |
Fair Value, Measurements, Recurring | Level 2 | Foreign corporate public securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 309,136 | 262,023 |
Fair Value, Measurements, Recurring | Level 2 | Foreign corporate private securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 906,104 | 815,634 |
Fair Value, Measurements, Recurring | Level 2 | Asset-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 138,297 | 151,040 |
Fair Value, Measurements, Recurring | Level 2 | Commercial mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 381,582 | 346,396 |
Fair Value, Measurements, Recurring | Level 2 | Residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 84,160 | 89,063 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 92,868 | 92,960 |
Fixed maturities, trading | 605 | 0 |
Equity securities | 17,105 | 15,997 |
Short-term Investments | 94 | 0 |
Cash equivalents | 0 | 0 |
Other invested assets | 4 | 4 |
Reinsurance recoverables | 8,485,905 | 5,600,008 |
Receivables from parent and affiliates | 6,295 | 9,261 |
Subtotal excluding separate account assets | 8,602,876 | 5,718,230 |
Separate account assets | 0 | 0 |
TOTAL ASSETS | 8,602,876 | 5,718,230 |
Future policy benefits | 8,476,541 | 5,588,840 |
Policyholders’ account balances | 786,969 | 13,015 |
Payables to parent and affiliates | 0 | 0 |
Total liabilities | 9,263,510 | 5,601,855 |
Fair Value, Measurements, Recurring | Level 3 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 34,392 | 29,816 |
Fair Value, Measurements, Recurring | Level 3 | Obligations of U.S. states and their political subdivisions | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Foreign government bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 165 | 0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. corporate public securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 3 | 2 |
Fair Value, Measurements, Recurring | Level 3 | U.S. corporate private securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 41,948 | 44,841 |
Fair Value, Measurements, Recurring | Level 3 | Foreign corporate public securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 221 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Foreign corporate private securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 11,842 | 11,745 |
Fair Value, Measurements, Recurring | Level 3 | Asset-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 2,625 | 6,556 |
Fair Value, Measurements, Recurring | Level 3 | Commercial mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Residential mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 1,672 | 0 |
Other invested assets | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value investment measured at NAV per share | 69,000 | 70,000 |
Separate Account Assets | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value investment measured at NAV per share | $ 4,552,000 | $ 4,130,000 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities (Quantitative Info for Level 3 Inputs) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Corporate securities | $ 12,454 | $ 31,824 |
Future policy benefits | 24,169,202 | 19,476,394 |
Fair Value, Measurements, Recurring | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Future policy benefits | 8,476,541 | 5,588,840 |
Policyholders’ account balances | $ 786,969 | 13,015 |
Level 3 | Minimum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Fair Value Inputs, Policyholder Age | 45 years | |
Level 3 | Minimum | Future policy benefits | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Mortality rate | 0.00% | |
Level 3 | Maximum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Fair Value Inputs, Policyholder Age | 90 years | |
Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Future policy benefits | $ 8,476,541 | 5,588,840 |
Policyholders’ account balances | $ 786,969 | $ 13,015 |
Level 3 | Internal | Minimum | Discounted cash flow | Future policy benefits | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 1.00% | 1.00% |
Spread over LIBOR | 0.16% | 0.36% |
Utilization rate | 43.00% | 50.00% |
Withdrawal rate (greater than maximum range) | 78.00% | 78.00% |
Mortality rate | 0.00% | 0.00% |
Equity volatility curve | 13.00% | 18.00% |
Level 3 | Internal | Minimum | Discounted cash flow | Policyholders' account balances | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 1.00% | |
Spread over LIBOR | 0.16% | |
Mortality rate | 0.00% | |
Equity volatility curve | 10.00% | |
Level 3 | Internal | Minimum | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount Rate | 8.34% | 7.00% |
Level 3 | Internal | Minimum | Market comparables | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA | 5.7 | |
Level 3 | Internal | Minimum | Liquidation | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Liquidation value | 3.98% | 40.71% |
Level 3 | Internal | Maximum | Discounted cash flow | Future policy benefits | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 18.00% | 13.00% |
Spread over LIBOR | 1.24% | 1.60% |
Utilization rate | 97.00% | 97.00% |
Withdrawal rate (greater than maximum range) | 100.00% | 100.00% |
Mortality rate | 15.00% | 15.00% |
Equity volatility curve | 23.00% | 22.00% |
Level 3 | Internal | Maximum | Discounted cash flow | Policyholders' account balances | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 6.00% | |
Spread over LIBOR | 1.24% | |
Mortality rate | 24.00% | |
Equity volatility curve | 23.00% | |
Level 3 | Internal | Maximum | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount Rate | 15.17% | 20.00% |
Level 3 | Internal | Maximum | Market comparables | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA | 5.7 | |
Level 3 | Internal | Maximum | Liquidation | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Liquidation value | 3.98% | 40.71% |
Level 3 | Internal | Weighted Average | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount Rate | 12.03% | 10.21% |
Level 3 | Internal | Weighted Average | Market comparables | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA | 5.7 | |
Level 3 | Internal | Weighted Average | Liquidation | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Liquidation value | 3.98% | 40.71% |
Level 3 | Internal | Fair Value, Measurements, Recurring | Future policy benefits | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Future policy benefits | $ 8,476,541 | $ 5,588,840 |
Level 3 | Internal | Fair Value, Measurements, Recurring | Policyholders' account balances | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Policyholders’ account balances | 786,969 | |
Level 3 | Internal | Fair Value, Measurements, Recurring | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Corporate securities | 23,086 | 31,503 |
Level 3 | Internal | Fair Value, Measurements, Recurring | Reinsurance recoverables | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Reinsurance recoverables | $ 8,485,905 | $ 5,600,008 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities (Changes in Level 3 Assets and Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Equity securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | $ 15,991 | $ 17,039 | $ 15,997 | $ 17,525 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 17,105 | 16,625 | 17,105 | 16,625 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 1,114 | (414) | 1,108 | (900) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 1,114 | (414) | 1,108 | (900) |
Equity securities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Equity securities | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 1,114 | (414) | 1,108 | (900) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 1,114 | (414) | 1,108 | (900) |
Equity securities | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Equity securities | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other invested assets | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 4 | 10 | 4 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 9 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 4 | 5 | 4 | 5 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | (5) | 0 | (4) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | (5) | 0 | (4) |
Other invested assets | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | (5) | 0 | (4) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | (5) | 0 | (4) |
Other invested assets | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other invested assets | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other invested assets | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Short-term Investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 0 | 1,194 | 0 | 1,339 |
Purchases | 463 | 1,870 | 463 | 5,270 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (369) | (2,731) | (369) | (6,244) |
Other | 0 | 0 | 0 | (14) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 94 | 333 | 94 | 333 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | (18) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | (1) | 0 | (19) |
Short-term Investments | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | (18) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | (1) | 0 | (19) |
Short-term Investments | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Short-term Investments | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Short-term Investments | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Cash equivalents | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 0 | 0 | ||
Purchases | 2,550 | 2,550 | ||
Sales | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | (1,986) | (1,986) | ||
Other | 0 | 0 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Fair Value, end of period | 564 | 564 | ||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | ||
Reinsurance recoverables | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 6,468,704 | 4,214,114 | 5,600,008 | 5,457,649 |
Purchases | 244,013 | 221,324 | 479,391 | 440,781 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 8,485,905 | 3,943,881 | 8,485,905 | 3,943,881 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 1,773,188 | (491,557) | 2,406,506 | (1,954,549) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 1,833,209 | (441,257) | 2,504,883 | (1,844,015) |
Reinsurance recoverables | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 1,773,188 | (491,557) | 2,406,506 | (1,954,549) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 1,833,209 | (441,257) | 2,504,883 | (1,844,015) |
Reinsurance recoverables | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Reinsurance recoverables | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Reinsurance recoverables | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Receivables from parents and affiliates | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 7,792 | 6,531 | 9,261 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (1,579) | 0 | (3,159) | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 6,551 |
Transfers out of Level 3 | 0 | (6,531) | 0 | (6,531) |
Fair Value, end of period | 6,295 | 0 | 6,295 | 0 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 82 | 0 | 193 | (20) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Receivables from parents and affiliates | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Receivables from parents and affiliates | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | (20) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Receivables from parents and affiliates | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Receivables from parents and affiliates | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 82 | 0 | 193 | 0 |
Future policy benefits | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | (6,459,377) | (4,191,373) | (5,588,840) | (5,452,583) |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | (242,067) | (228,243) | (475,502) | (454,588) |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers Into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | (8,476,541) | (3,916,973) | (8,476,541) | (3,916,973) |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (1,775,097) | 502,643 | (2,412,199) | 1,990,198 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (1,836,960) | 459,185 | (2,510,576) | 1,879,579 |
Future policy benefits | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (1,775,097) | 502,643 | (2,412,199) | 1,990,198 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (1,836,960) | 459,185 | (2,510,576) | 1,879,579 |
Future policy benefits | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Future policy benefits | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Future policy benefits | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Policyholders' account balances | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | (53,136) | (39,516) | (13,015) | (46,651) |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | (41,906) | 0 | (48,413) | 0 |
Settlements | 0 | 5,429 | 0 | 7,551 |
Other | 0 | 0 | 0 | 0 |
Transfers Into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | (786,969) | (41,946) | (786,969) | (41,946) |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (691,927) | (7,859) | (725,541) | (2,846) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (691,376) | (7,860) | (724,989) | (2,847) |
Policyholders' account balances | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (691,927) | (7,859) | (725,541) | (2,846) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (691,376) | (7,860) | (724,989) | (2,847) |
Policyholders' account balances | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Policyholders' account balances | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Policyholders' account balances | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other liabilities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | (15,955) | 0 | ||
Purchases | 8,880 | 17,705 | ||
Sales | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | 0 | 0 | ||
Other | 0 | 0 | ||
Transfers Into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Fair Value, end of period | (17,610) | (17,610) | ||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (10,535) | (35,315) | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (10,590) | (35,231) | ||
Other liabilities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (10,535) | (35,315) | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (10,590) | (35,231) | ||
Other liabilities | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | ||
Other liabilities | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | ||
Other liabilities | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | ||
Available-for-sale | Fixed maturities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (665) | (303) | (3,067) | (235) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | (49) | (3,163) | (75) |
Available-for-sale | Fixed maturities | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Available-for-sale | Fixed maturities | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 678 | (1,620) | 842 | (706) |
Available-for-sale | Fixed maturities | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 264 | 86 | 363 | 163 |
Available-for-sale | Fixed maturities | US government | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 32,188 | 21,569 | 29,816 | 19,204 |
Purchases | 2,204 | 2,842 | 4,576 | 5,207 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 34,392 | 24,411 | 34,392 | 24,411 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Available-for-sale | Fixed maturities | Foreign government bonds | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 164 | 166 | 0 | 0 |
Purchases | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 174 |
Transfers into Level 3 | 0 | 0 | 159 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 165 | 160 | 165 | 160 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 1 | (6) | 6 | (14) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Available-for-sale | Fixed maturities | Corporate securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 54,960 | 72,615 | 56,588 | 75,421 |
Purchases | 791 | 3,125 | 2,122 | 4,147 |
Sales | (25) | (201) | (53) | (201) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (2,584) | (15,501) | (9,681) | (20,071) |
Other | (1) | (1) | 0 | 14 |
Transfers into Level 3 | 639 | 4,028 | 8,216 | 4,028 |
Transfers out of Level 3 | 0 | 0 | 0 | (209) |
Fair Value, end of period | 54,014 | 62,418 | 54,014 | 62,418 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 234 | (1,647) | (3,178) | (711) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | (49) | (3,163) | (75) |
Available-for-sale | Fixed maturities | Structured securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 79,804 | 94,873 | 6,556 | 111,028 |
Purchases | 0 | 10,648 | 0 | 10,838 |
Sales | (1) | (196) | (2) | (196) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (177) | (4,871) | (4,156) | (8,066) |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 1,700 | 0 | 77,660 | 13,513 |
Transfers out of Level 3 | (77,071) | (80,609) | (77,071) | (107,403) |
Fair Value, end of period | 4,297 | 19,661 | 4,297 | 19,661 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 42 | (184) | 1,310 | (53) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | $ 0 | 0 | $ 0 |
Trading | Fixed maturities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 0 | 0 | ||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | 0 | 0 | ||
Other | 0 | 0 | ||
Transfers into Level 3 | 751 | 751 | ||
Transfers out of Level 3 | 0 | 0 | ||
Fair Value, end of period | 605 | 605 | ||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (146) | (146) | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (146) | (146) | ||
Trading | Fixed maturities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | ||
Trading | Fixed maturities | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (146) | (146) | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (146) | (146) | ||
Trading | Fixed maturities | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | ||
Trading | Fixed maturities | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | $ 0 | $ 0 |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities (Financial Instruments where Carrying Amounts and Fair Values May Differ) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Assets: | ||||
Policy loans | $ 1,263,413 | $ 1,236,077 | ||
Cash and cash equivalents | 415,497 | 416,840 | $ 72,206 | $ 212,569 |
Accrued investment income | 93,167 | 88,278 | ||
Receivables from parent and affiliates | 268,854 | 289,580 | ||
Liabilities: | ||||
Cash collateral for loaned securities | 7,083 | 11,063 | ||
Fair Value | ||||
Assets: | ||||
Commercial mortgage and other loans | 1,279,335 | 1,214,350 | ||
Policy loans | 1,263,413 | 1,236,077 | ||
Cash and cash equivalents | 58,863 | 199,894 | ||
Accrued investment income | 93,167 | 88,278 | ||
Receivables from parent and affiliates | 140,992 | 154,938 | ||
Other assets | 29,764 | 28,950 | ||
Total assets | 2,865,534 | 2,922,487 | ||
Liabilities: | ||||
Policyholders’ account balances - investment contracts | 1,504,753 | 1,479,069 | ||
Cash collateral for loaned securities | 7,083 | 11,063 | ||
Payables to parent and affiliates | 146,207 | 229,345 | ||
Other liabilities | 341,498 | 372,997 | ||
Total liabilities | 1,999,541 | 2,092,474 | ||
Carrying Amount | ||||
Assets: | ||||
Commercial mortgage and other loans | 1,225,668 | 1,209,150 | ||
Policy loans | 1,263,413 | 1,236,077 | ||
Cash and cash equivalents | 58,863 | 199,894 | ||
Accrued investment income | 93,167 | 88,278 | ||
Receivables from parent and affiliates | 140,992 | 154,938 | ||
Other assets | 29,764 | 28,950 | ||
Total assets | 2,811,867 | 2,917,287 | ||
Liabilities: | ||||
Policyholders’ account balances - investment contracts | 1,505,223 | 1,486,929 | ||
Cash collateral for loaned securities | 7,083 | 11,063 | ||
Payables to parent and affiliates | 146,207 | 229,345 | ||
Other liabilities | 341,498 | 372,997 | ||
Total liabilities | 2,000,011 | 2,100,334 | ||
Level 1 | Fair Value | ||||
Assets: | ||||
Commercial mortgage and other loans | 0 | 0 | ||
Policy loans | 0 | 0 | ||
Cash and cash equivalents | 42,863 | 56,894 | ||
Accrued investment income | 0 | 0 | ||
Receivables from parent and affiliates | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets | 42,863 | 56,894 | ||
Liabilities: | ||||
Policyholders’ account balances - investment contracts | 0 | 0 | ||
Cash collateral for loaned securities | 0 | 0 | ||
Payables to parent and affiliates | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Level 2 | Fair Value | ||||
Assets: | ||||
Commercial mortgage and other loans | 0 | 0 | ||
Policy loans | 0 | 0 | ||
Cash and cash equivalents | 16,000 | 143,000 | ||
Accrued investment income | 93,167 | 88,278 | ||
Receivables from parent and affiliates | 140,992 | 154,938 | ||
Other assets | 29,764 | 28,950 | ||
Total assets | 279,923 | 415,166 | ||
Liabilities: | ||||
Policyholders’ account balances - investment contracts | 1,225,951 | 1,206,747 | ||
Cash collateral for loaned securities | 7,083 | 11,063 | ||
Payables to parent and affiliates | 146,207 | 229,345 | ||
Other liabilities | 341,498 | 372,997 | ||
Total liabilities | 1,720,739 | 1,820,152 | ||
Level 3 | Fair Value | ||||
Assets: | ||||
Commercial mortgage and other loans | 1,279,335 | 1,214,350 | ||
Policy loans | 1,263,413 | 1,236,077 | ||
Cash and cash equivalents | 0 | 0 | ||
Accrued investment income | 0 | 0 | ||
Receivables from parent and affiliates | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets | 2,542,748 | 2,450,427 | ||
Liabilities: | ||||
Policyholders’ account balances - investment contracts | 278,802 | 272,322 | ||
Cash collateral for loaned securities | 0 | 0 | ||
Payables to parent and affiliates | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | $ 278,802 | $ 272,322 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ (34,585) | $ (13,012) | $ (51,465) | $ (15,711) |
Effective income tax rate, percent | (60.03%) | (47.60%) | ||
Federal Statutory income tax rate, percent | 21.00% |
Reinsurance (Reinsurance amount
Reinsurance (Reinsurance amounts included in the Statements of Financial Position) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Effects of Reinsurance [Line Items] | ||
Reinsurance recoverables | $ 38,946,785 | $ 34,682,127 |
Policy loans | 1,263,413 | 1,236,077 |
Deferred policy acquisition costs | 1,720,404 | 1,613,922 |
Other assets | 370,240 | 365,219 |
Future policy benefits | 24,169,202 | 19,476,394 |
Other liabilities | 1,262,599 | 1,093,143 |
Impacts of Reinsurance | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance recoverables | 38,946,785 | 34,682,127 |
Policy loans | (134,453) | (130,502) |
Deferred policy acquisition costs | (6,912,973) | (7,267,847) |
Deferred sales inducements | (557,073) | (562,052) |
Other assets | 165,706 | 185,573 |
Policyholders’ account balances | 4,959,484 | 5,004,112 |
Future policy benefits | 3,914,630 | 3,376,048 |
Other liabilities | 787,950 | 621,856 |
Unaffiliated activity | ||
Effects of Reinsurance [Line Items] | ||
Other assets | 100 | 100 |
Other liabilities | $ 35,000 | $ 27,000 |
Reinsurance (Reinsurance Recove
Reinsurance (Reinsurance Recoverable by Counterparty) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | $ 38,946,785 | $ 34,682,127 |
PAR U | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 11,963,017 | 11,444,032 |
PALAC | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 11,483,993 | 8,828,190 |
PURC | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 4,371,948 | 4,127,455 |
PARCC | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 2,480,256 | 2,527,690 |
GUL Re | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 2,110,403 | 2,017,810 |
PAR Term | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 1,726,036 | 1,678,745 |
Prudential Insurance | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 1,624,532 | 1,226,917 |
Prudential of Taiwan | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 1,426,279 | 1,414,669 |
Term Re | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 1,417,733 | 1,259,141 |
DART | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 220,163 | 119,946 |
Unaffiliated | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | $ 122,425 | $ 37,532 |
Reinsurance (Reinsurance amou_2
Reinsurance (Reinsurance amounts included in the Statement of Operations and Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Premiums: | ||||
Direct | $ 476,986 | $ 449,613 | $ 939,257 | $ 891,568 |
Assumed | 52 | 58 | 106 | 118 |
Ceded | (464,621) | (434,768) | (912,952) | (868,868) |
Net premiums | 12,417 | 14,903 | 26,411 | 22,818 |
Policy charges and fee income: | ||||
Direct | 1,106,725 | 717,264 | 1,959,920 | 1,563,511 |
Assumed | 128,748 | 122,695 | 255,707 | 244,404 |
Ceded | (1,086,802) | (670,955) | (1,927,767) | (1,509,756) |
Net policy charges and fee income | 148,671 | 169,004 | 287,860 | 298,159 |
Net investment income: | ||||
Direct | 106,949 | 82,957 | 201,507 | 162,106 |
Assumed | 407 | 385 | 803 | 758 |
Ceded | (1,794) | (1,693) | (3,498) | (3,300) |
Net investment income | 105,562 | 81,649 | 198,812 | 159,564 |
Asset administration fees: | ||||
Direct | 87,951 | 86,695 | 171,819 | 173,728 |
Assumed | 0 | 0 | 0 | 0 |
Ceded | (83,990) | (83,151) | (164,201) | (166,711) |
Net asset administration fees | 3,961 | 3,544 | 7,618 | 7,017 |
Other income: | ||||
Direct | 20,030 | 12,093 | 39,828 | 29,346 |
Assumed | (1,271) | (100) | (1,471) | (190) |
Ceded | (39) | 226 | (62) | 173 |
Amortization of reinsurance income | (3,722) | 3,859 | (2,340) | 6,045 |
Net other income | 14,998 | 16,078 | 35,955 | 35,374 |
Realized investment gains (losses), net: | ||||
Direct | (1,783,941) | 503,522 | (2,419,452) | 1,978,284 |
Assumed | 0 | 0 | 0 | 0 |
Ceded | 1,731,691 | (540,412) | 2,318,567 | (2,064,216) |
Realized investment gains (losses), net | (52,250) | (36,890) | (100,885) | (85,932) |
Policyholders’ benefits (including change in reserves): | ||||
Direct | 1,150,985 | 644,501 | 1,797,296 | 1,296,173 |
Assumed | 282,961 | 146,405 | 494,711 | 259,207 |
Ceded | (1,387,655) | (750,465) | (2,206,238) | (1,463,203) |
Net policyholders’ benefits (including change in reserves) | 46,291 | 40,441 | 85,769 | 92,177 |
Interest credited to policyholders’ account balances: | ||||
Direct | 118,420 | 121,478 | 213,111 | 246,212 |
Assumed | 34,512 | 34,849 | 65,169 | 71,366 |
Ceded | (102,222) | (113,772) | (183,373) | (234,225) |
Net interest credited to policyholders’ account balances | 50,710 | 42,555 | 94,907 | 83,353 |
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization | (573,978) | (345,280) | (917,993) | (779,192) |
Unaffiliated activity | ||||
Premiums: | ||||
Assumed | 0 | 0 | 100 | 100 |
Ceded | (100) | 0 | (200) | 0 |
Policy charges and fee income: | ||||
Ceded | (7,000) | (4,000) | (12,000) | (6,000) |
Other income: | ||||
Assumed | (1,000) | (100) | (2,000) | (200) |
Realized investment gains (losses), net: | ||||
Ceded | 42,000 | (10,000) | 56,000 | (48,000) |
Policyholders’ benefits (including change in reserves): | ||||
Assumed | 0 | 0 | (200) | (100) |
Ceded | $ (2,000) | $ (2,000) | $ (4,000) | $ (4,000) |
Reinsurance (Life Insurance In
Reinsurance (Life Insurance In Force) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Reinsurance Disclosures [Abstract] | ||
Direct gross life insurance face amount in force | $ 966,542,451 | $ 908,332,587 |
Assumed gross life insurance face amount in force | 40,382,452 | 41,317,052 |
Reinsurance ceded | (925,430,727) | (876,823,569) |
Net life insurance face amount in force | $ 81,494,176 | $ 72,826,070 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Jan. 01, 2017 | Dec. 31, 2013 | Jul. 01, 2012 | Dec. 31, 2010 | Dec. 31, 2009 | Jan. 31, 2001 | Jun. 30, 2019 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2013 | Dec. 31, 2017 | Dec. 31, 2013 | Dec. 31, 2018 |
Effects of Reinsurance [Line Items] | ||||||||||||||
Reinsurance recoverables | $ 38,946,785 | $ 34,682,127 | ||||||||||||
PAR U | ||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||
Reinsurance recoverables | 11,963,017 | 11,444,032 | ||||||||||||
PURC | ||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||
Reinsurance recoverables | 4,371,948 | 4,127,455 | ||||||||||||
PARCC | ||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||
Reinsurance recoverables | 2,480,256 | 2,527,690 | ||||||||||||
GUL Re | ||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||
Reinsurance recoverables | 2,110,403 | 2,017,810 | ||||||||||||
PAR Term | ||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||
Reinsurance recoverables | 1,726,036 | 1,678,745 | ||||||||||||
Prudential of Taiwan | ||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||
Reinsurance recoverables | 1,426,279 | 1,414,669 | ||||||||||||
Term Re | ||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||
Reinsurance recoverables | 1,417,733 | 1,259,141 | ||||||||||||
Prudential Insurance | ||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||
Reinsurance recoverables | 1,624,532 | 1,226,917 | ||||||||||||
DART | ||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||
Reinsurance recoverables | 220,163 | $ 119,946 | ||||||||||||
Union Hamilton Reinsurance, Ltd. | ||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||
Reinsurance recoverables | $ 3,100,000 | |||||||||||||
Union Hamilton Reinsurance, Ltd. | Quote Share Reinsurance | ||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 50.00% | |||||||||||||
Affiliated Entity | PAR U | ||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95.00% | 70.00% | ||||||||||||
Affiliated Entity | PURC | ||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95.00% | 70.00% | ||||||||||||
Affiliated Entity | PARCC | ||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 90.00% | |||||||||||||
Affiliated Entity | GUL Re | ||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95.00% | 30.00% | ||||||||||||
Affiliated Entity | PAR Term | ||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95.00% | |||||||||||||
Affiliated Entity | Prudential of Taiwan | ||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||
Related Party Transaction, Term | 2 years | |||||||||||||
Affiliated Entity | Term Re | ||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95.00% | |||||||||||||
Affiliated Entity | Prudential Insurance | ||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 100.00% | |||||||||||||
Affiliated Entity | DART | ||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95.00% |
Equity (Accumulated Other Compr
Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | Apr. 01, 2018 | Jan. 01, 2018 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Beginning Balance | $ (28,296) | ||||||||
Income tax benefit (expense) | $ (38,512) | $ 18,363 | (72,145) | $ 49,063 | |||||
Cumulative effect of adoption | $ (27) | ||||||||
Ending Balance | 250,165 | 250,165 | |||||||
Foreign Currency Translation Adjustments | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Beginning Balance | (17,448) | (234) | |||||||
Change in OCI before reclassifications | 7,007 | (6,590) | |||||||
Amounts reclassified from AOCI | 0 | 0 | |||||||
Income tax benefit (expense) | 2 | 1,384 | |||||||
Ending Balance | (10,439) | (5,490) | (10,439) | (5,490) | |||||
Net unrealized investment gains (losses) | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Beginning Balance | (10,848) | 165,580 | |||||||
Change in OCI before reclassifications | 332,927 | (223,420) | |||||||
Amounts reclassified from AOCI | 10,672 | (3,634) | |||||||
Income tax benefit (expense) | (72,147) | 47,679 | |||||||
Ending Balance | 260,604 | 15,165 | 260,604 | 15,165 | |||||
Accumulated Other Comprehensive Income (Loss) | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Beginning Balance | (28,296) | 165,346 | |||||||
Change in OCI before reclassifications | 339,934 | (230,010) | |||||||
Amounts reclassified from AOCI | 10,672 | (3,634) | |||||||
Income tax benefit (expense) | (72,145) | 49,063 | |||||||
Cumulative effect of adoption | [1] | $ 0 | |||||||
Ending Balance | 250,165 | 9,675 | 250,165 | 9,675 | |||||
ASU 2016-01 | Foreign Currency Translation Adjustments | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Cumulative effect of adoption | 0 | 0 | |||||||
ASU 2016-01 | Net unrealized investment gains (losses) | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Cumulative effect of adoption | (1,539) | (1,539) | |||||||
ASU 2016-01 | Accumulated Other Comprehensive Income (Loss) | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Cumulative effect of adoption | (1,539) | (1,539) | $ 0 | $ (1,539) | |||||
ASU 2018-02 | Foreign Currency Translation Adjustments | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Cumulative effect of adoption | (50) | (50) | |||||||
ASU 2018-02 | Net unrealized investment gains (losses) | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Cumulative effect of adoption | 30,499 | 30,499 | |||||||
ASU 2018-02 | Accumulated Other Comprehensive Income (Loss) | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Cumulative effect of adoption | 30,449 | 30,449 | $ 50 | $ 30,399 | |||||
Cash flow hedges | Net unrealized investment gains (losses) | |||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||
Beginning Balance | (18,000) | 41,000 | |||||||
Ending Balance | $ 29,000 | $ (9,000) | $ 29,000 | $ (9,000) | |||||
[1] | Includes the impact from the adoption of ASUs 2017-08 and 2017-12. See Note 2. |
Equity (Reclassification out of
Equity (Reclassification out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net unrealized investment gains (losses) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | $ 10,672 | $ (3,634) | ||
Total reclassifications for the period | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | 10,672 | (3,634) | ||
Amounts reclassified from AOCI | Net unrealized investment gains (losses) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | $ (6,882) | $ 4,124 | (10,672) | 3,634 |
Amounts reclassified from AOCI | Total reclassifications for the period | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | (6,882) | 4,124 | (10,672) | 3,634 |
Amounts reclassified from AOCI | Net unrealized investment gains (losses) on available-for-sale securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net unrealized investment gains (losses) | (2,489) | (3,318) | (6,673) | (4,127) |
Amounts reclassified from AOCI | Currency/Interest rate | Cash flow hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net unrealized investment gains (losses) | $ (4,393) | $ 7,442 | $ (3,999) | $ 7,761 |
Equity (OTTI Net Unrealized Inv
Equity (OTTI Net Unrealized Investment Gains (Losses) in AOCI) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | $ (28,296) |
Ending Balance | 250,165 |
Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (10,848) |
Ending Balance | 260,604 |
OTTI | Net Unrealized Gains (Losses) on Investments | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (689) |
Net investment gains (losses) on investments arising during the period | 1,568 |
Reclassification adjustment for (gains) losses included in net income | (137) |
Reclassification adjustment for OTTI (gains) losses excluded from net income | (207) |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances | 0 |
Ending Balance | 535 |
OTTI | Deferred Policy Acquisition Costs and Other Costs | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (152) |
Net investment gains (losses) on investments arising during the period | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 |
Reclassification adjustment for OTTI (gains) losses excluded from net income | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 105 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances | 0 |
Ending Balance | (47) |
OTTI | Future Policy Benefits and Policyholders’ Account Balances | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | 37 |
Net investment gains (losses) on investments arising during the period | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 |
Reclassification adjustment for OTTI (gains) losses excluded from net income | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances | (127) |
Ending Balance | (90) |
OTTI | Deferred Income Tax (Liability) Benefit | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (192) |
Net investment gains (losses) on investments arising during the period | (329) |
Reclassification adjustment for (gains) losses included in net income | 29 |
Reclassification adjustment for OTTI (gains) losses excluded from net income | 43 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | (22) |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances | 27 |
Ending Balance | (444) |
OTTI | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (996) |
Net investment gains (losses) on investments arising during the period | 1,239 |
Reclassification adjustment for (gains) losses included in net income | (108) |
Reclassification adjustment for OTTI (gains) losses excluded from net income | (164) |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 83 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances | (100) |
Ending Balance | $ (46) |
Equity (All Other Net Unrealize
Equity (All Other Net Unrealized Investment Gains (Losses) in AOCI) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | $ (28,296) |
Ending Balance | 250,165 |
Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (10,848) |
Ending Balance | 260,604 |
All Other | Net Unrealized Gains (Losses) on Investments | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (16,632) |
Net investment gains (losses) on investments arising during the period | 375,628 |
Reclassification adjustment for (gains) losses included in net income | 10,809 |
Reclassification adjustment for OTTI (gains) losses excluded from net income | 207 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances | 0 |
Ending Balance | 370,012 |
All Other | Deferred Policy Acquisition Costs and Other Costs | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (65,743) |
Net investment gains (losses) on investments arising during the period | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 |
Reclassification adjustment for OTTI (gains) losses excluded from net income | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 176,301 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances | 0 |
Ending Balance | 110,558 |
All Other | Future Policy Benefits and Policyholders’ Account Balances | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | 68,005 |
Net investment gains (losses) on investments arising during the period | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 |
Reclassification adjustment for OTTI (gains) losses excluded from net income | 0 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances | (220,548) |
Ending Balance | (152,543) |
All Other | Deferred Income Tax (Liability) Benefit | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | 4,518 |
Net investment gains (losses) on investments arising during the period | (78,873) |
Reclassification adjustment for (gains) losses included in net income | (2,270) |
Reclassification adjustment for OTTI (gains) losses excluded from net income | (43) |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | (37,019) |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances | 46,310 |
Ending Balance | (67,377) |
All Other | Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (9,852) |
Net investment gains (losses) on investments arising during the period | 296,755 |
Reclassification adjustment for (gains) losses included in net income | 8,539 |
Reclassification adjustment for OTTI (gains) losses excluded from net income | 164 |
Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and other costs | 139,282 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders' account balances | (174,238) |
Ending Balance | $ 260,650 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2019USD ($)policy | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Related Party Transaction [Line Items] | ||||||
Commissions and fees | $ 148,671,000 | $ 169,004,000 | $ 287,860,000 | $ 298,159,000 | ||
Other invested assets | 394,951,000 | 394,951,000 | $ 377,429,000 | |||
Net investment income | 105,562,000 | 81,649,000 | 198,812,000 | 159,564,000 | ||
Fee income from revenue sharing agreement | 3,961,000 | 3,544,000 | 7,618,000 | 7,017,000 | ||
Debt Outstanding | 0 | 0 | 0 | |||
Contributed Capital | 0 | |||||
Dividends | 0 | 0 | ||||
Prudential Insurance | ||||||
Related Party Transaction [Line Items] | ||||||
Contributed Capital | $ 6,000,000 | |||||
Prudential Insurance | ||||||
Related Party Transaction [Line Items] | ||||||
Stock option program plan expense | 600,000 | 500,000 | 700,000 | 700,000 | ||
Deferred compensation program expense | 1,000,000 | 2,000,000 | 4,000,000 | 4,000,000 | ||
Pension plan expense | 5,000,000 | 6,000,000 | 10,000,000 | 12,000,000 | ||
Welfare plan expense | 6,000,000 | 7,000,000 | $ 12,000,000 | 15,000,000 | ||
Defined contribution plan, employer matching contribution, percent (up to) | 4.00% | |||||
Defined contribution plan, cost recognized | 2,000,000 | 3,000,000 | $ 5,000,000 | 5,000,000 | ||
Number of Corporate Owned Life Insurance policies sold | policy | 5 | |||||
Prudential Insurance and Prudential Financial | ||||||
Related Party Transaction [Line Items] | ||||||
Life Insurance, Corporate or Bank Owned, amount | 4,142,000,000 | $ 4,142,000,000 | 3,631,000,000 | |||
Fees related to Life Insurance, Corporate or Bank Owned, amount | 11,000,000 | 11,000,000 | 24,000,000 | 23,000,000 | ||
Maximum amount of mortality risk | 3,500,000 | 3,500,000 | ||||
Prudential Financial | ||||||
Related Party Transaction [Line Items] | ||||||
Company's share of corporate expenses | 20,000,000 | 19,000,000 | $ 37,000,000 | 37,000,000 | ||
Number of Corporate Owned Life Insurance policies sold | policy | 1 | |||||
Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Accrued interest receivable related to long-tern notes receivable | 1,000,000 | $ 1,000,000 | 1,000,000 | |||
Revenues related to long-term notes receivable | 1,000,000 | 1,000,000 | 2,000,000 | 2,000,000 | ||
Line of credit facility, maximum borrowing capacity | 2,200,000,000 | 2,200,000,000 | ||||
Interest expense related to loans payable | 600,000 | 300,000 | 800,000 | 400,000 | ||
Affiliated Entity | PAD | ||||||
Related Party Transaction [Line Items] | ||||||
Commissions and fees | 197,000,000 | 189,000,000 | 376,000,000 | 363,000,000 | ||
Affiliated Entity | ASTISI and PGIM Investments | ||||||
Related Party Transaction [Line Items] | ||||||
Fee income from revenue sharing agreement | 84,000,000 | 83,000,000 | 165,000,000 | 167,000,000 | ||
Affiliated Entity | PGIM Investments | ||||||
Related Party Transaction [Line Items] | ||||||
Fee income from revenue sharing agreement | 3,000,000 | 3,000,000 | 5,000,000 | 5,000,000 | ||
Affiliated Entity | PGIM | ||||||
Related Party Transaction [Line Items] | ||||||
Net investment income | 3,000,000 | 4,000,000 | 7,000,000 | 7,000,000 | ||
Prudential Financial Joint Ventures | ||||||
Related Party Transaction [Line Items] | ||||||
Other invested assets | 102,000,000 | 102,000,000 | $ 88,000,000 | |||
Net investment income | $ 2,000,000 | $ 2,000,000 | $ 7,000,000 | $ 2,000,000 |
Related Party Transactions (Aff
Related Party Transactions (Affiliated Notes Receivable) (Details) - Affiliated Entity - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Total notes receivable - affiliated | $ 127,862 | $ 134,642 |
U.S. dollar floating rate notes | ||
Related Party Transaction [Line Items] | ||
Total notes receivable - affiliated | $ 0 | 6,502 |
U.S. dollar floating rate notes | Minimum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 3.74% | |
U.S. dollar floating rate notes | Maximum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 4.03% | |
U.S. Dollar fixed rate notes | ||
Related Party Transaction [Line Items] | ||
Total notes receivable - affiliated | $ 127,862 | $ 128,140 |
U.S. Dollar fixed rate notes | Minimum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 0.00% | |
U.S. Dollar fixed rate notes | Maximum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 14.85% |
Related Party Transactions (A_2
Related Party Transactions (Affiliated Asset Transfers) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Related Party Transaction [Line Items] | ||||
Realized investment gains (losses) | $ (52,250) | $ (36,890) | $ (100,885) | $ (85,932) |
Affiliated Entity | DART January 2018 Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 21,457 | 21,457 | ||
Book Value | 21,457 | 21,457 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | PALAC2 April 2018 Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 64,313 | 64,313 | ||
Book Value | 64,313 | 64,313 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | GULRe4 May 2018 Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 87,486 | 87,486 | ||
Book Value | 87,486 | 87,486 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | GULRe5 May 2018 Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 37,921 | 37,921 | ||
Book Value | 37,921 | 37,921 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | PruRealtySecurities Nov 2018 Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 3,259 | 3,259 | ||
Book Value | 3,425 | 3,425 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | (167) | |||
Affiliated Entity | PrudentialInsuranceFeb2019 Sale | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 4,995 | 4,995 | ||
Book Value | 5,000 | 5,000 | ||
APIC, Net of Tax Increase/(Decrease) | (4) | (4) | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | PALAC3 April 2019 Sale | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 14,525 | 14,525 | ||
Book Value | 13,466 | 13,466 | ||
APIC, Net of Tax Increase/(Decrease) | $ 0 | 0 | ||
Realized investment gains (losses) | $ 1,059 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | Jul. 31, 2017 |
Commitments and Contingent Liabilities [Line Items] | |||
Litigation and regulatory matters loss contingency, range of possible loss, maximum (less than) | $ 100 | ||
Indonesia | |||
Commitments and Contingent Liabilities [Line Items] | |||
Joint Venture with CT Corp, Ownership Percentage | 49.00% | ||
Commitments | Commercial Mortgage Loans | |||
Commitments and Contingent Liabilities [Line Items] | |||
Total outstanding mortgage loan commitments | 60 | $ 14 | |
Commitments | Investments | |||
Commitments and Contingent Liabilities [Line Items] | |||
Commitments to Purchase Investment (excluding Commercial Mortgage Loans) | $ 265 | $ 257 |
Uncategorized Items - prucoform
Label | Element | Value | |
Parent [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (1,114,000) | [1] |
Retained Earnings [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (1,114,000) | [1] |
Accounting Standards Update 2016-01 [Member] | Parent [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 6,397,000 | |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 7,936,000 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 | |
Accounting Standard Update 2018-02 [Member] | Parent [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 | |
Accounting Standard Update 2018-02 [Member] | Retained Earnings [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (30,399,000) | |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (50,000) | |
[1] | Includes the impact from the adoption of ASUs 2017-08 and 2017-12. See Note 2. |