Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 19, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
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 | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Fixed maturities, available for sale, at fair value (allowance for credit losses: 2021-$2,237; 2020-$2,339) (amortized cost: 2021–$10,135,396; 2020–$6,157,371) | $ 10,702,155 | $ 7,012,631 |
Fixed maturities, trading, at fair value (amortized cost: 2021–$3,929,972; 2020–$73,413) | 3,751,472 | 82,482 |
Equity securities, at fair value (cost: 2021– $49,875; 2020–$105,508) | 53,178 | 108,457 |
Policy loans | 1,324,335 | 1,323,681 |
Short-term investments | 84,240 | 49,997 |
Commercial mortgage and other loans (net of $4,254 and $4,552 allowance for credit losses at September 30, 2021 and December 31, 2020, respectively) | 2,042,654 | 1,288,846 |
Other invested assets (includes $302,389 and $94,939 of assets measured at fair value at September 30, 2021 and December 31, 2020, respectively) | 1,252,522 | 520,955 |
Total investments | 19,210,556 | 10,387,049 |
Cash and cash equivalents | 1,100,935 | 426,979 |
Deferred policy acquisition costs | 6,210,116 | 2,433,936 |
Accrued investment income | 139,355 | 93,613 |
Reinsurance recoverables | 30,904,877 | 48,367,096 |
Receivables from parent and affiliates | 361,494 | 266,473 |
Deferred sales inducements | 378,870 | 0 |
Income taxes receivable | 1,064,825 | 175,024 |
Other assets | 356,981 | 417,508 |
Separate account assets | 146,825,583 | 145,740,422 |
TOTAL ASSETS | 206,553,592 | 208,308,100 |
LIABILITIES | ||
Future policy benefits | 27,817,818 | 32,889,181 |
Policyholders’ account balances | 24,399,646 | 23,857,574 |
Cash collateral for loaned securities | 0 | 2,725 |
Long-term debt to affiliates | 322,631 | 0 |
Payables to parent and affiliates | 133,353 | 75,990 |
Other liabilities | 1,692,610 | 1,694,492 |
Separate account liabilities | 146,825,583 | 145,740,422 |
Total liabilities | 201,191,641 | 204,260,384 |
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 | 5,587,195 | 1,726,690 |
Retained earnings | (608,408) | 1,772,398 |
Accumulated other comprehensive income (loss) | 380,664 | 546,128 |
Total equity | 5,361,951 | 4,047,716 |
TOTAL LIABILITIES AND EQUITY | $ 206,553,592 | $ 208,308,100 |
Unaudited Interim Consolidate_2
Unaudited Interim Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Fixed Maturities, Available-for-sale, allowance for credit losses | $ 2,237 | $ 2,339 |
Fixed Maturities, Available-for-sale, amortized cost | 10,135,396 | 6,157,371 |
Fixed maturities, trading, amortized cost | 3,929,972 | 73,413 |
Equity securities, at fair value | 49,875 | 105,508 |
Commercial mortgage and other loans, allowance for credit losses | 4,254 | 4,552 |
Other invested assets, at fair value | $ 302,389 | $ 94,939 |
Common Stock, Par or Stated Value 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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
REVENUES | ||||
Premiums | $ 51,537 | $ 24,307 | $ 140,804 | $ 61,722 |
Policy charges and fee income | 610,101 | 151,080 | 942,166 | 452,084 |
Net investment income | 179,110 | 93,992 | 373,277 | 257,035 |
Asset administration fees | 91,938 | 4,964 | 104,425 | 13,654 |
Other income | 61,409 | 29,582 | 105,283 | 53,310 |
Realized investment gains (losses), net | (5,008,612) | (1,547) | (5,054,506) | 8,117 |
TOTAL REVENUES | (4,014,517) | 302,378 | (3,388,551) | 845,922 |
BENEFITS AND EXPENSES | ||||
Policyholders’ benefits | 386,003 | 55,828 | 557,992 | 228,004 |
Interest credited to policyholders’ account balances | (304,406) | 52,266 | (200,836) | 173,729 |
Amortization of deferred policy acquisition costs | 138,794 | 42,299 | 225,749 | 105,246 |
General, administrative and other expenses | (1,039,337) | 119,379 | (807,697) | 254,411 |
TOTAL BENEFITS AND EXPENSES | (818,946) | 269,772 | (224,792) | 761,390 |
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | (3,195,571) | 32,606 | (3,163,759) | 84,532 |
Income tax expense (benefit) | (744,016) | (117,796) | (782,332) | (174,314) |
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE | (2,451,555) | 150,402 | (2,381,427) | 258,846 |
Equity in earnings of operating joint venture, net of taxes | 466 | (324) | 621 | (1,624) |
NET INCOME (LOSS) | (2,451,089) | 150,078 | (2,380,806) | 257,222 |
Other comprehensive income (loss), before tax: | ||||
Foreign currency translation adjustments | 877 | (4,119) | (3,904) | (8,007) |
Net unrealized investment gains (losses) | (70,667) | 41,679 | (204,902) | 232,706 |
Total | (69,790) | 37,560 | (208,806) | 224,699 |
Less: Income tax expense (benefit) related to other comprehensive income (loss) | (15,007) | 10,954 | (43,342) | 51,058 |
Other comprehensive income (loss), net of taxes | (54,783) | 26,606 | (165,464) | 173,641 |
Comprehensive income (loss) | $ (2,505,872) | $ 176,684 | $ (2,546,270) | $ 430,863 |
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) | Cumulative effect of adoption of accounting changes | [1] | Cumulative effect of adoption of accounting changesRetained Earnings | [1] |
Beginning Balance at Dec. 31, 2019 | $ 3,015,027 | $ 2,500 | $ 1,153,632 | $ 1,577,453 | $ 281,442 | $ (1,752) | $ (1,752) | ||
Comprehensive income (loss): | |||||||||
NET INCOME (LOSS) | 97,612 | 97,612 | |||||||
Other comprehensive income (loss), net of tax | (126,381) | (126,381) | |||||||
Total comprehensive income (loss) | (28,769) | ||||||||
Ending Balance at Mar. 31, 2020 | 2,984,506 | 2,500 | 1,153,632 | 1,673,313 | 155,061 | ||||
Beginning Balance at Dec. 31, 2019 | 3,015,027 | 2,500 | 1,153,632 | 1,577,453 | 281,442 | $ (1,752) | $ (1,752) | ||
Comprehensive income (loss): | |||||||||
NET INCOME (LOSS) | 257,222 | ||||||||
Other comprehensive income (loss), net of tax | 173,641 | ||||||||
Ending Balance at Sep. 30, 2020 | 3,842,196 | 2,500 | 1,551,690 | 1,832,923 | 455,083 | ||||
Beginning Balance at Mar. 31, 2020 | 2,984,506 | 2,500 | 1,153,632 | 1,673,313 | 155,061 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Contributed capital | 325,000 | 325,000 | |||||||
Contributed (distributed) capital-parent/child asset transfers | (1,942) | (1,942) | |||||||
Comprehensive income (loss): | |||||||||
NET INCOME (LOSS) | 9,532 | 9,532 | |||||||
Other comprehensive income (loss), net of tax | 273,416 | 273,416 | |||||||
Total comprehensive income (loss) | 282,948 | ||||||||
Ending Balance at Jun. 30, 2020 | 3,590,512 | 2,500 | 1,476,690 | 1,682,845 | 428,477 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Contributed capital | 75,000 | 75,000 | |||||||
Comprehensive income (loss): | |||||||||
NET INCOME (LOSS) | 150,078 | 150,078 | |||||||
Other comprehensive income (loss), net of tax | 26,606 | 26,606 | |||||||
Total comprehensive income (loss) | 176,684 | ||||||||
Ending Balance at Sep. 30, 2020 | 3,842,196 | 2,500 | 1,551,690 | 1,832,923 | 455,083 | ||||
Beginning Balance at Dec. 31, 2020 | 4,047,716 | 2,500 | 1,726,690 | 1,772,398 | 546,128 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Contributed capital | 105,900 | 105,900 | |||||||
Comprehensive income (loss): | |||||||||
NET INCOME (LOSS) | 103,377 | 103,377 | |||||||
Other comprehensive income (loss), net of tax | (281,676) | (281,676) | |||||||
Total comprehensive income (loss) | (178,299) | ||||||||
Ending Balance at Mar. 31, 2021 | 3,975,317 | 2,500 | 1,832,590 | 1,875,775 | 264,452 | ||||
Beginning Balance at Dec. 31, 2020 | 4,047,716 | 2,500 | 1,726,690 | 1,772,398 | 546,128 | ||||
Comprehensive income (loss): | |||||||||
NET INCOME (LOSS) | (2,380,806) | ||||||||
Other comprehensive income (loss), net of tax | (165,464) | ||||||||
Ending Balance at Sep. 30, 2021 | 5,361,951 | 2,500 | 5,587,195 | (608,408) | 380,664 | ||||
Beginning Balance at Mar. 31, 2021 | 3,975,317 | 2,500 | 1,832,590 | 1,875,775 | 264,452 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Return of capital | (34,091) | (34,091) | |||||||
Comprehensive income (loss): | |||||||||
NET INCOME (LOSS) | (33,094) | (33,094) | |||||||
Other comprehensive income (loss), net of tax | 170,995 | 170,995 | |||||||
Total comprehensive income (loss) | 137,901 | ||||||||
Ending Balance at Jun. 30, 2021 | 4,079,127 | 2,500 | 1,798,499 | 1,842,681 | 435,447 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Contributed capital | 3,813,370 | 3,813,370 | |||||||
Contributed (distributed) capital-parent/child asset transfers | (24,674) | (24,674) | |||||||
Comprehensive income (loss): | |||||||||
NET INCOME (LOSS) | (2,451,089) | (2,451,089) | |||||||
Other comprehensive income (loss), net of tax | (54,783) | (54,783) | |||||||
Total comprehensive income (loss) | (2,505,872) | ||||||||
Ending Balance at Sep. 30, 2021 | $ 5,361,951 | $ 2,500 | $ 5,587,195 | $ (608,408) | $ 380,664 | ||||
[1] | Includes the impact from the adoption of ASU 2016-13. 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, 2020 for additional information. |
Unaudited Interim Consolidate_5
Unaudited Interim Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ (2,380,806) | $ 257,222 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Policy charges and fee income | (23,117) | (71,478) |
Interest credited to policyholders’ account balances | (200,836) | 173,729 |
Realized investment (gains) losses, net | 5,054,506 | (8,117) |
Amortization and other non-cash items | 2,194,580 | (51,884) |
Change in: | ||
Future policy benefits | 1,650,019 | 1,941,962 |
Reinsurance recoverables | (1,031,339) | (1,813,912) |
Accrued investment income | (45,742) | (1,003) |
Net payables to/receivables from parent and affiliates | 37,027 | (167,262) |
Deferred policy acquisition costs | (3,757,575) | (416,334) |
Income taxes | (839,899) | (188,785) |
Derivatives, net | (481,898) | 46,727 |
Other, net | 143,809 | (5,744) |
Cash flows from (used in) operating activities | 318,729 | (304,879) |
Proceeds from the sale/maturity/prepayment of: | ||
Fixed maturities, available-for-sale | 932,746 | 254,708 |
Fixed maturities, trading | 5,567 | 0 |
Equity securities | 99,362 | 198 |
Policy loans | 128,140 | 127,219 |
Ceded policy loans | (9,616) | (9,783) |
Short-term investments | 79,584 | 174,584 |
Commercial mortgage and other loans | 198,654 | 97,201 |
Other invested assets | 122,821 | 7,299 |
Payments for the purchase/origination of: | ||
Fixed maturities, available-for-sale | (1,422,592) | (603,729) |
Fixed maturities, trading | (107,007) | (13,418) |
Equity securities | (41,092) | (6) |
Policy loans | (90,102) | (103,923) |
Ceded policy loans | 10,061 | 17,639 |
Short-term investments | (77,669) | (371,508) |
Commercial mortgage and other loans | (227,104) | (86,716) |
Other invested assets | (83,235) | (48,390) |
Notes receivable from parent and affiliates, net | (54,928) | (87) |
Derivatives, net | 4,459 | (928) |
Other, net | (5,775) | 1,673 |
Cash flows from (used in) investing activities | (537,726) | (557,967) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Policyholders’ account deposits | 3,677,850 | 3,611,907 |
Ceded policyholders’ account deposits | (842,153) | (2,642,461) |
Policyholders’ account withdrawals | (3,010,737) | (2,487,346) |
Ceded policyholders’ account withdrawals | 246,895 | 2,048,783 |
Net change in securities sold under agreement to repurchase and cash collateral for loaned securities | (2,717) | (4,798) |
Contributed capital | 493,756 | 400,000 |
Contributed (distributed) capital - parent/child asset transfers | (3,946) | (2,458) |
Net change in all other financing arrangements (maturities 90 days or less) | 0 | 1,452 |
Proceeds from the issuance of debt (maturities longer than 90 days) | 323,839 | 0 |
Drafts outstanding | 18,192 | 8,363 |
Other, net | (8,026) | (83) |
Cash flows from (used in) financing activities | 892,953 | 933,359 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 673,956 | 70,513 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 426,979 | 563,199 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 1,100,935 | $ 633,712 |
Business and Basis of Presentat
Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
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”). 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. 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. Effective July 1, 2021, the Company recaptured the risks related to its variable annuity base contracts, along with the living benefit guarantees, that had previously been reinsured to Prudential Annuities Life Assurance Corporation (“PALAC”) from April 1, 2016 through June 30, 2021. The recapture does not impact PLNJ, which will continue to reinsure its new and in force business to Prudential Insurance. The product risks related to the previously reinsured business that were being managed in PALAC, were transferred to the Company. In addition, the living benefit hedging program related to the previously reinsured living benefit riders will be managed within the Company. This transaction is referred to as the "2021 Variable Annuities Recapture". The financial statement impacts of this transaction are as follows: Unaudited Interim Consolidated Statement of Financial Position Balance as of June 30, 2021 Impacts of Recapture Total as of July 1, 2021 (in millions) ASSETS Total investments(1)(2) $ 10,705 $ 8,324 $ 19,029 Cash and cash equivalents 238 414 652 Deferred policy acquisition costs 2,790 3,286 6,076 Accrued investment income 97 42 139 Reinsurance recoverables 42,956 (12,307) 30,649 Deferred sales inducements 0 388 388 Receivable from parent and affiliates 280 0 280 Income taxes receivable 274 765 1,039 Other assets 403 (84) 319 Separate account assets 150,165 0 150,165 TOTAL ASSETS $ 207,908 $ 828 $ 208,736 LIABILITIES AND EQUITY LIABILITIES Future policy benefits $ 27,399 $ 0 $ 27,399 Policyholders’ account balances 24,326 0 24,326 Cash collateral for loaned securities 3 0 3 Payables to parent and affiliates 176 (106) 70 Other liabilities 1,760 0 1,760 Separate account liabilities 150,165 0 150,165 Total Liabilities 203,829 (106) 203,723 EQUITY Common stock 3 0 3 Additional paid-in capital(3) 1,798 3,786 5,584 Retained earnings 1,843 (2,797) (954) Accumulated other comprehensive income 435 (55) 380 Total equity 4,079 934 5,013 TOTAL LIABILITIES AND EQUITY $ 207,908 $ 828 $ 208,736 Significant non-cash transactions (1) The increase in total investments includes non-cash activities of $8.3 billion related to the recapture transaction. (2) The Company incurred a loss related to ceding commissions of $2 billion. (3) The increase in Additional paid-in capital includes non-cash activities of $3.4 billion in invested assets related to capital contributions from Prudential Insurance. Unaudited Interim Consolidated Statement of Operations and Comprehensive Income (Loss) For the three and nine months ended September 30, 2021 Impacts of Recapture (in millions) REVENUES Other income (loss) $ (1) Realized investment gains (losses), net (4,953) TOTAL REVENUES (4,954) BENEFITS AND EXPENSES Policyholders’ benefits 257 Interest credited to policyholders’ account balances (399) General, administrative and other expenses (1,272) TOTAL BENEFITS AND EXPENSES (1,414) INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES (3,540) Income tax expense (benefit) (743) NET INCOME (LOSS) $ (2,797) Affiliated Asset Transfers Affiliate Period Transaction Security Type Fair Value Book Value APIC/ Retained Earnings Increase/(Decrease) Realized Investment Gain/(Loss), Net Derivative Gain/(Loss) (in millions) PALAC July 1, 2021 Purchase Derivatives, Fixed Maturities, Equity Securities, Commercial Mortgages and JV/LP Investments $ 4,908 $ 4,908 $ 0 $ 0 $ 0 Prudential Insurance July 1, 2021 Contributed Capital Fixed Maturities $ 3,420 $ 3,420 $ 3,420 $ 0 $ 0 As part of the recapture transaction, the Company received invested assets of $6.8 billion, net of $2.0 billion ceding commissions as consideration from PALAC, which is equivalent to the amount of statutory reserve credit taken as of June 30, 2021. The Company released a reinsurance recoverable of $12.3 billion. The Company derecognized its ceded Deferred Acquisition Costs ("DAC") and Deferred Sales Inducements ("DSI") balances as of June 30, 2021. The company also recognized a net deferred reinsurance loss from the original transaction of $0.1 billion. As a result of the recapture transaction, the Company recognized a pre-tax loss of $3.5 billion immediately. There was a $3.8 billion capital contribution from Prudential Insurance, which includes $3.4 billion in invested assets and $0.4 billion in cash. Basis of Presentation The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles 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, 2020. 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 DAC and related amortization; policyholders' account balances related to the fair value of embedded derivative instruments associated with the index-linked features of certain universal life products; valuation of investments including derivatives, measurement of allowance for credit losses, and the recognition of other-than-temporary impairments; 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. COVID-19 Since the first quarter of 2020, the novel coronavirus (“COVID-19”) has resulted in extreme stress and disruption in the global economy and financial markets. While markets have rebounded, the pandemic has adversely impacted, and may continue to adversely impact, the Company's results of operations, financial condition and cash flows. Due to the highly uncertain nature of these conditions, it is not possible to estimate the ultimate impacts at this time. The risks may have manifested, and may continue to manifest, in the Company's financial statements in the areas of, among others, i) investments: increased risk of loss on our investments due to default or deterioration in credit quality or value; and ii) insurance liabilities and related balances: potential changes to assumptions regarding investment returns, mortality and policyholder behavior which are reflected in our insurance liabilities and certain related balances (e.g., DAC, etc.). The Company cannot predict what impact the COVID-19 pandemic will ultimately have on its businesses. Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
Significant Accounting Policies
Significant Accounting Policies and Pronouncements | 9 Months Ended |
Sep. 30, 2021 | |
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 ("ASUs") to the FASB Accounting Standards Codification ("ASC"). The Company considers the applicability and impact of all ASUs. ASUs 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 September 30, 2021, and as of the date of this filing. ASUs not listed below were assessed and determined to be either not applicable or not material. ASU issued but not yet adopted as of September 30, 2021 — 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. In October 2019, the FASB issued ASU 2019-09, Financial Services - Insurance (Topic 944): Effective Date to affirm its decision to defer the effective date of ASU 2018-12 to January 1, 2022 (with early adoption permitted), representing a one year extension from the original effective date of January 1, 2021. As a result of the COVID-19 pandemic, in November 2020, the FASB issued ASU 2020-11, Financial Services-Insurance (Topic 944): Effective Date and Early Application to defer for an additional one year the effective date of ASU 2018-12 from January 1, 2022 to January 1, 2023, and to provide transition relief to facilitate the early adoption of the ASU. The transition relief would allow large calendar-year public companies that early adopt ASU 2018-12 to apply the guidance either as of January 1, 2020 or January 1, 2021 (and record transition adjustments as of January 1, 2020 or January 1, 2021, respectively) in the 2022 financial statements. Companies that do not early adopt ASU 2018-12 would apply the guidance as of January 1, 2021 (and record transition adjustments as of January 1, 2021) in the 2023 financial statements. The Company currently intends to adopt ASU 2018-12 effective January 1, 2023 using the modified retrospective transition method where permitted. ASU 2018-12 will impact, at least to some extent, the accounting and disclosure requirements for all long-duration insurance and investment contracts issued by the Company. The Company expects the standard to have a significant financial impact on the Consolidated Financial Statements and will significantly enhance disclosures. In addition to the significant impacts to the balance sheet upon adoption, the Company also expects an impact to the pattern of earnings emergence following the transition date. Outlined below are four key areas of change, although there are other less significant changes not noted below. 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 may choose to apply the amendments to contracts in force as of the beginning of the prior year (if early adoption is elected) or 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 Accumulated other comprehensive income (loss) ("AOCI") or (2) a full retrospective transition method. The Company currently intends to adopt this guidance effective January 1, 2023 using the modified retrospective transition method. The impacts of electing such method are currently 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, which will be updated each quarter with the impact recorded through OCI. An entity shall maximize the use of relevant observable information and minimize the use of unobservable information in determining the discount rate assumptions. 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 either the beginning of the prior year (if early adoption is elected) or the beginning of the earliest period presented with the impact recorded as a cumulative effect adjustment to AOCI. As noted above, the Company currently intends to adopt the guidance for the liability for future policy benefits effective January 1, 2023 using the modified retrospective transition method. Upon adoption, 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 discount rates 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 may choose to apply the amendments to contracts in force as of the beginning of the prior year (if early adoption is elected) or 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 liability for future policy benefits, as described above, it is required to also use a full retrospective transition method for DAC and other balances. The Company currently intends to adopt this guidance effective January 1, 2023 using the modified retrospective transition method. 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 ("MRB") Requires an entity to measure all market risk benefits (e.g., living benefit and death benefit guarantees associated with variable annuities) at fair value, and record MRB assets and liabilities separately on the Statements of Financial Position. Changes in fair value of market risk benefits are recorded in net income, except for the portion of the change in MRB liabilities attributable to changes in an entity’s non-performance risk ("NPR"), which is recognized in OCI. An entity shall adopt the guidance for market risk benefits using the retrospective transition method, which includes a cumulative-effect adjustment on the balance sheet as of either the beginning of prior year (if early adoption is elected) or the beginning of the earliest period presented. An entity shall maximize the use of relevant observable information and minimize the use of unobservable information in determining the balance of the market risk benefits upon adoption. The Company currently intends to adopt this guidance effective January 1, 2023 using the retrospective transition method. 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. Modifications related to COVID-19 We assess modifications to certain fixed income instruments on a case-by-case basis to evaluate whether a troubled debt restructuring ("TDR") has occurred. In response to the COVID-19 pandemic, the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") provides a temporary suspension of TDR accounting for certain COVID-19 related modifications where the investment was not more than 30 days past due as of December 31, 2019 (“TDR Relief”). The TDR Relief was set to expire on December 31, 2020, but was extended through December 31, 2021 by the Consolidated Appropriations Act of 2021. The Company elected to apply the TDR Relief beginning in the first quarter of 2021. The TDR Relief does not apply to modifications completed 60 days after the national emergency related to COVID-19 ends, or December 31, 2021, whichever comes earlier. As of September 30, 2021, any such modifications did not have a material impact on the Company's results of operations. For additional information regarding the Company’s policies for troubled debt restructurings, 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, 2020. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2021 | |
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: September 30, 2021 Amortized Gross Gross Allowance for Credit Losses Fair (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 358,184 $ 22,847 $ 101 $ 0 $ 380,930 Obligations of U.S. states and their political subdivisions 481,474 48,044 128 0 529,390 Foreign government bonds 275,756 25,679 3,125 0 298,310 U.S. public corporate securities 4,086,880 358,688 25,239 0 4,420,329 U.S. private corporate securities 1,445,143 65,984 8,522 1,558 1,501,047 Foreign public corporate securities 767,349 33,121 6,134 0 794,336 Foreign private corporate securities 1,909,870 63,187 30,695 679 1,941,683 Asset-backed securities(1) 338,088 974 581 0 338,481 Commercial mortgage-backed securities 453,399 25,153 1,992 0 476,560 Residential mortgage-backed securities(2) 19,253 1,836 0 0 21,089 Total fixed maturities, available-for-sale $ 10,135,396 $ 645,513 $ 76,517 $ 2,237 $ 10,702,155 (1) Includes credit-tranched securities collateralized by loan obligations, education loans, auto loans and other asset types. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. December 31, 2020 Amortized Gross Gross Allowance for Credit Losses Fair (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 74,946 $ 2,931 $ 22 $ 0 $ 77,855 Obligations of U.S. states and their political subdivisions 460,003 57,948 0 0 517,951 Foreign government bonds 206,633 44,254 32 0 250,855 U.S. public corporate securities 2,473,440 456,581 587 0 2,929,434 U.S. private corporate securities 919,316 95,793 2,198 855 1,012,056 Foreign public corporate securities 278,717 42,899 886 0 320,730 Foreign private corporate securities 977,539 123,006 7,131 1,484 1,091,930 Asset-backed securities(1) 236,909 1,115 386 0 237,638 Commercial mortgage-backed securities 480,412 40,660 125 0 520,947 Residential mortgage-backed securities(2) 49,456 3,779 0 0 53,235 Total fixed maturities, available-for-sale $ 6,157,371 $ 868,966 $ 11,367 $ 2,339 $ 7,012,631 (1) Includes credit-tranched securities collateralized by loan obligations, credit cards, auto loans, education loans and sub-prime mortgages. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. The following tables set forth the fair value and gross unrealized losses on available-for-sale fixed maturity securities without an allowance for credit 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: September 30, 2021 Less Than Twelve Months Twelve Months or More Total Fair Value Gross Fair Value Gross Fair Value Gross (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 0 $ 2,141 $ 101 $ 2,141 $ 101 Obligations of U.S. states and their political subdivisions 17,997 128 0 0 17,997 128 Foreign government bonds 86,349 3,123 81 2 86,430 3,125 U.S. public corporate securities 1,497,660 24,875 7,527 364 1,505,187 25,239 U.S. private corporate securities 483,604 5,782 16,458 2,740 500,062 8,522 Foreign public corporate securities 406,354 4,734 7,510 1,400 413,864 6,134 Foreign private corporate securities 953,235 23,099 62,258 7,116 1,015,493 30,215 Asset-backed securities 110,654 581 0 0 110,654 581 Commercial mortgage-backed securities 73,101 1,285 16,846 707 89,947 1,992 Residential mortgage-backed securities 0 0 0 0 0 0 Total fixed maturities, available-for-sale $ 3,628,954 $ 63,607 $ 112,821 $ 12,430 $ 3,741,775 $ 76,037 December 31, 2020 Less Than Twelve Months Twelve Months or More Total Fair Value Gross Fair Value Gross Fair Value Gross (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of $ 2,255 $ 22 $ 0 $ 0 $ 2,255 $ 22 Foreign government bonds 2,270 32 0 0 2,270 32 U.S. public corporate securities 33,295 341 2,754 246 36,049 587 U.S. private corporate securities 33,806 771 6,659 1,427 40,465 2,198 Foreign public corporate securities 6,432 97 6,464 789 12,896 886 Foreign private corporate securities 2,931 131 85,340 6,657 88,271 6,788 Asset-backed securities 51,914 183 70,503 203 122,417 386 Commercial mortgage-backed securities 17,443 125 0 0 17,443 125 Residential mortgage-backed securities 0 0 0 0 0 0 Total fixed maturities, available-for-sale $ 150,346 $ 1,702 $ 171,720 $ 9,322 $ 322,066 $ 11,024 As of September 30, 2021 and December 31, 2020, the gross unrealized losses on fixed maturity available-for-sale securities without an allowance were composed of $62.8 million and $5.0 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 $13.2 million and $6.0 million, respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. As of September 30, 2021, the $12.4 million of gross unrealized losses of twelve months or more were concentrated in the Company’s corporate securities within the energy, utility and finance sectors. As of December 31, 2020, the $9.3 million of gross unrealized losses of twelve months or more were concentrated in the Company's corporate securities within the finance, energy and utility 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, 2020, the Company concluded that an adjustment to earnings for credit losses related to these fixed maturity securities was not warranted at September 30, 2021. This conclusion was based on a detailed analysis of the underlying credit and cash flows on each security. Gross unrealized losses are primarily attributable to increases in interest rates, general credit spread widening, foreign currency exchange rate movements and the financial condition or near-term prospects of the issuer. As of September 30, 2021, 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: September 30, 2021 Amortized Cost Fair Value (in thousands) Fixed maturities, available-for-sale: Due in one year or less $ 138,773 $ 138,226 Due after one year through five years 1,825,519 1,858,235 Due after five years through ten years 2,355,010 2,396,158 Due after ten years 5,005,354 5,473,406 Asset-backed securities 338,088 338,481 Commercial mortgage-backed securities 453,399 476,560 Residential mortgage-backed securities 19,253 21,089 Total fixed maturities, available-for-sale $ 10,135,396 $ 10,702,155 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 write-downs and the allowance for credit losses of fixed maturities, for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 268,215 $ 55,657 $ 585,205 $ 68,598 Proceeds from maturities/prepayments 180,569 51,892 351,027 189,646 Gross investment gains from sales and maturities 7,853 1,245 16,361 1,837 Gross investment losses from sales and maturities (2,991) (82) (14,647) (1,818) Write-downs recognized in earnings(2) (1) (3,290) (3) (4,312) (Addition to) release of allowance for credit losses (1,678) 2,039 103 (2,533) (1) Includes $3.5 million of non-cash related proceeds due to the timing of trade settlements for both the nine months ended September 30, 2021 and 2020. (2) Amounts represent write-downs on securities actively marketed for sale and write-downs on securities approaching maturity related to foreign exchange movements. The following tables set forth the activity in the allowance for credit losses for fixed maturity securities, as of the dates indicated: Three Months Ended September 30, 2021 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of period $ 0 $ 0 $ 558 $ 0 $ 0 $ 0 $ 558 Additions to allowance for credit losses not previously recorded 0 0 1,558 0 0 0 1,558 Reductions for securities sold during the period 0 0 (3) 0 0 0 (3) Addition (reductions) on securities with previous allowance 0 0 124 0 0 0 124 Balance, end of period $ 0 $ 0 $ 2,237 $ 0 $ 0 $ 0 $ 2,237 Three Months Ended September 30, 2020 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of period $ 0 $ 0 $ 4,572 $ 0 $ 0 $ 0 $ 4,572 Additions to allowance for credit losses not previously recorded 0 0 781 0 0 0 781 Reductions for securities sold during the period 0 0 (2,701) 0 0 0 (2,701) Addition (reductions) on securities with previous allowance 0 0 (119) 0 0 0 (119) Balance, end of period $ 0 $ 0 $ 2,533 $ 0 $ 0 $ 0 $ 2,533 Nine Months Ended September 30, 2021 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of period $ 0 $ 0 $ 2,339 $ 0 $ 0 $ 0 $ 2,339 Additions to allowance for credit losses not previously recorded 0 0 1,558 0 0 0 1,558 Reductions for securities sold during the period 0 0 (28) 0 0 0 (28) Addition (reductions) on securities with previous allowance 0 0 (1,632) 0 0 0 (1,632) Balance, end of period $ 0 $ 0 $ 2,237 $ 0 $ 0 $ 0 $ 2,237 Nine Months Ended September 30, 2020 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of period $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Additions to allowance for credit losses not previously recorded 0 0 5,672 0 0 0 5,672 Reductions for securities sold during the period 0 0 (2,710) 0 0 0 (2,710) Addition (reductions) on securities with previous allowance 0 0 (429) 0 0 0 (429) Write-downs charged against the allowance 0 0 0 0 0 0 0 Balance, end of period $ 0 $ 0 $ 2,533 $ 0 $ 0 $ 0 $ 2,533 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, 2020 for additional information about the Company’s methodology for developing our allowance for credit losses. For the three months ended September 30, 2021, the net increase in the allowance for credit losses on available-for-sale securities was primarily related to adverse projected cash flows in the transportation and communication sectors within private corporate securities. For the three months ended September 30, 2020, the net decrease in the allowance for credit losses on available-for-sale securities was primarily related to restructurings in the energy sector within corporate securities. For the nine months ended September 30, 2021, the net decrease in the allowance for credit losses on available-for-sale securities was primarily related to net recoveries in the communication and utility sectors, partially offset by adverse projected cash flows in the transportation sector within private corporate securities. For the nine months ended September 30, 2020, the net increase in the allowance for credit losses on available-for-sale securities was primarily related to adverse projected cash flows in the communication and utility sectors within private corporate securities. The Company did not have any fixed maturity securities purchased with credit deterioration, as of both September 30, 2021 and December 31, 2020. Fixed Maturities, Trading The net change in unrealized gains (losses) from fixed maturities, trading still held at period end, recorded within “Other income (loss),” was $(2.6) million and $5.8 million during the three months ended September 30, 2021 and 2020, respectively, and $(5.1) million and $2.6 million during the nine months ended September 30, 2021 and 2020, respectively. Equity Securities The net change in unrealized gains (losses) from equity securities still held at period end, recorded within “Other income,” was $0.4 million and $1.8 million during the three months ended September 30, 2021 and 2020, respectively, and $0.4 million and $1.0 million during the nine months ended September 30, 2021 and 2020, respectively. Commercial Mortgage and Other Loans The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: September 30, 2021 December 31, 2020 Amount % of Amount % of Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 546,483 26.7 % $ 364,549 28.2 % Hospitality 37,345 1.8 34,069 2.6 Industrial 693,418 33.9 399,017 30.9 Office 320,973 15.6 195,443 15.1 Other 195,986 9.6 138,477 10.7 Retail 192,186 9.4 142,266 11.0 Total commercial mortgage loans 1,986,391 97.0 1,273,821 98.5 Agricultural property loans 60,517 3.0 19,577 1.5 Total commercial mortgage and agricultural property loans 2,046,908 100.0 % 1,293,398 100.0 % Allowance for credit losses (4,254) (4,552) Total net commercial mortgage and agricultural property loans $ 2,042,654 $ 1,288,846 As of September 30, 2021, the commercial mortgage and agricultural property loans were secured by properties geographically dispersed throughout the United States (with the largest concentrations in California (28%), Texas (9%) and New York (8%)) and included loans secured by properties in Europe (14%), Mexico (4%) and Australia (4%). The following tables set forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated: Three Months Ended September 30, 2021 2020 Commercial Mortgage Loans Agricultural Property Loans Total Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance, beginning of period $ 3,380 $ 24 $ 3,404 $ 4,549 $ 10 $ 4,559 Addition to (release of) allowance for expected losses 850 0 850 84 (2) 82 Allowance, end of period $ 4,230 $ 24 $ 4,254 $ 4,633 $ 8 $ 4,641 Nine Months Ended September 30, 2021 2020 Commercial Mortgage Loans Agricultural Property Loans Total Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance, beginning of period $ 4,546 $ 6 $ 4,552 $ 1,743 $ 25 $ 1,768 Cumulative effect of adoption of ASU 2016-13 0 0 0 2,495 (8) 2,487 Addition to (release of) allowance for expected losses (316) 18 (298) 395 (9) 386 Allowance, end of period $ 4,230 $ 24 $ 4,254 $ 4,633 $ 8 $ 4,641 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, 2020 for additional information about the Company's methodology for developing our allowance and expected losses. For the three months ended September 30, 2021, the net increase in the allowance for credit losses on commercial mortgage and other loans was primarily related to the acquisition of loans, partially offset by the improving credit environment. For the three months ended September 30, 2020, the net increase in the allowance for credit losses on commercial mortgage and other loans was primarily related to new loan originations. For the nine months ended September 30, 2021, the net decrease in the allowance for credit losses on commercial mortgage and other loans was primarily related to the improving credit environment, partially offset by net addition due to the acquisition of loans. For the nine months ended September 30, 2020, the net increase in the allowance for credit losses on commercial mortgage and other loans was primarily related to the cumulative effect of adoption of ASU 2016-13. The following tables set forth key credit quality indicators based upon the recorded investment gross of allowance for credit losses, as of the dates indicated: September 30, 2021 Amortized Cost by Origination Year 2021 2020 2019 2018 2017 Prior Total (in thousands) Commercial mortgage loans Loan-to-Value Ratio: 0%-59.99% $ 47,163 $ 16,342 $ 87,397 $ 65,975 $ 136,869 $ 526,833 $ 880,579 60%-69.99% 76,864 194,700 121,550 99,339 77,051 146,574 716,078 70%-79.99% 64,690 67,271 64,170 22,384 108,233 60,845 387,593 80% or greater 0 0 0 0 963 1,178 2,141 Total $ 188,717 $ 278,313 $ 273,117 $ 187,698 $ 323,116 $ 735,430 $ 1,986,391 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 171,349 $ 186,140 $ 245,018 $ 178,068 $ 307,561 $ 667,944 $ 1,756,080 1.0 - 1.2x 17,368 88,712 12,174 0 7,155 20,573 145,982 Less than 1.0x 0 3,461 15,925 9,630 8,400 46,913 84,329 Total $ 188,717 $ 278,313 $ 273,117 $ 187,698 $ 323,116 $ 735,430 $ 1,986,391 Agricultural property loans Loan-to-Value Ratio: 0%-59.99% $ 24,696 $ 0 $ 2,050 $ 5,096 $ 8,571 $ 20,104 $ 60,517 60%-69.99% 0 0 0 0 0 0 0 70%-79.99% 0 0 0 0 0 0 0 80% or greater 0 0 0 0 0 0 0 Total $ 24,696 $ 0 $ 2,050 $ 5,096 $ 8,571 $ 20,104 $ 60,517 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 24,696 $ 0 $ 2,050 $ 5,096 $ 8,571 $ 19,289 $ 59,702 1.0 - 1.2x 0 0 0 0 0 0 0 Less than 1.0x 0 0 0 0 0 815 815 Total $ 24,696 $ 0 $ 2,050 $ 5,096 $ 8,571 $ 20,104 $ 60,517 December 31, 2020 Amortized Cost by Origination Year 2020 2019 2018 2017 2016 Prior Total (in thousands) Commercial mortgage loans Loan-to-Value Ratio: 0%-59.99% $ 10,645 $ 47,284 $ 33,443 $ 92,410 $ 162,030 $ 251,903 $ 597,715 60%-69.99% 69,819 95,331 141,260 52,710 80,875 43,823 483,818 70%-79.99% 63,783 36,099 22,431 32,476 21,178 15,342 191,309 80% or greater 0 0 0 979 0 0 979 Total $ 144,247 $ 178,714 $ 197,134 $ 178,575 $ 264,083 $ 311,068 $ 1,273,821 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 128,839 $ 159,476 $ 177,098 $ 171,255 $ 238,010 $ 290,741 $ 1,165,419 1.0 - 1.2x 15,408 10,334 7,134 7,320 26,073 16,418 82,687 Less than 1.0x 0 8,904 12,902 0 0 3,909 25,715 Total $ 144,247 $ 178,714 $ 197,134 $ 178,575 $ 264,083 $ 311,068 $ 1,273,821 Agricultural property loans Loan-to-Value Ratio: 0%-59.99% $ 0 $ 0 $ 0 $ 6,486 $ 0 $ 13,091 $ 19,577 60%-69.99% 0 0 0 0 0 0 0 70%-79.99% 0 0 0 0 0 0 0 80% or greater 0 0 0 0 0 0 0 Total $ 0 $ 0 $ 0 $ 6,486 $ 0 $ 13,091 $ 19,577 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 0 $ 0 $ 0 $ 6,486 $ 0 $ 12,276 $ 18,762 1.0 - 1.2x 0 0 0 0 0 0 0 Less than 1.0x 0 0 0 0 0 815 815 Total $ 0 $ 0 $ 0 $ 6,486 $ 0 $ 13,091 $ 19,577 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, 2020 for additional information about the Company’s commercial mortgage and other loans credit quality monitoring process. 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: September 30, 2021 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 $ 1,986,391 $ 0 $ 0 $ 0 $ 1,986,391 $ 0 Agricultural property loans 60,517 0 0 0 60,517 0 Total $ 2,046,908 $ 0 $ 0 $ 0 $ 2,046,908 $ 0 (1) As of September 30, 2021, 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, 2020. December 31, 2020 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 $ 1,273,821 $ 0 $ 0 $ 0 $ 1,273,821 $ 0 Agricultural property loans 19,577 0 0 0 19,577 0 Total $ 1,293,398 $ 0 $ 0 $ 0 $ 1,293,398 $ 0 (1) As of December 31, 2020, 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, 2020. The Company did not have any commercial mortgage and other loans purchased with credit deterioration, as of both September 30, 2021 and December 31, 2020. For the three months ended September 30, 2021 and 2020, there were $806 million and $0 million of commercial mortgage loans acquired, other than those through direct origination. For the three months ended September 30, 2021 and 2020, there were $69 million and $0 million, respectively, of commercial mortgage and other loans sold. For the nine months ended September 30, 2021 and 2020, there were $806 million and $0 million, respectively, of commercial mortgage loans acquired, other than those through direct origination. For the nine months ended September 30, 2021 and 2020, there were $69 million and $0 million, respectively, of 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: September 30, 2021 December 31, 2020 (in thousands) Company’s investment in separate accounts $ 50,150 $ 44,018 LPs/LLCs: Equity method: Private equity 263,763 241,493 Hedge funds 557,844 77,311 Real estate-related 78,376 63,194 Subtotal equity method 899,983 381,998 Fair value: Private equity 66,936 65,436 Hedge funds 468 499 Real estate-related 10,144 10,857 Subtotal fair value 77,548 76,792 Total LPs/LLCs 977,531 458,790 Derivative instruments 224,841 18,147 Total other invested assets $ 1,252,522 $ 520,955 Accrued Investment Income The following table sets forth the composition of “Accrued investment income,” as of the dates indicated: September 30, 2021 December 31, 2020 (in thousands) Fixed maturities $ 97,915 $ 54,565 Equity securities 163 1 Commercial mortgage and other loans 5,196 3,610 Policy loans 35,423 35,374 Other(1) 243 0 Short-term investments and cash equivalents 415 63 Total accrued investment income $ 139,355 $ 93,613 (1) Primarily includes affiliated accrued income. There were no write-downs on accrued investment income for both the three months and nine months ended September 30, 2021 and 2020. Net Investment Income The following table sets forth “Net investment income” by investment type, for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) Fixed maturities, available-for-sale $ 85,160 $ 54,494 $ 208,748 $ 163,957 Fixed maturities, trading 18,458 471 19,533 1,264 Equity securities 163 102 368 307 Commercial mortgage and other loans 17,098 11,921 43,846 38,019 Policy loans 17,748 17,716 52,097 52,642 Other invested assets 47,685 13,890 66,493 12,146 Short-term investments and cash equivalents 303 376 463 2,988 Gross investment income 186,615 98,970 391,548 271,323 Less: investment expenses (7,505) (4,978) (18,271) (14,288) Net investment income $ 179,110 $ 93,992 $ 373,277 $ 257,035 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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) Fixed maturities(1) $ 3,183 $ (88) $ 1,814 $ (6,826) Commercial mortgage and other loans 2,538 (82) 3,686 (314) Other invested assets (6,452) 14 (5,543) (296) Derivatives(2) (5,007,888) (1,395) (5,054,459) 15,709 Short-term investments and cash equivalents 7 4 (4) (156) Realized investment gains (losses), net $ (5,008,612) $ (1,547) $ (5,054,506) $ 8,117 (1) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading. (2) Includes the impact of the 2021 Variable Annuities Recapture. See Note 1 for additional information. Net Unrealized Gains (Losses) on Investments within AOCI The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated: September 30, 2021 December 31, 2020 (in thousands) Fixed maturity securities, available-for-sale with an allowance $ 975 $ 0 Fixed maturity securities, available-for-sale without an allowance 568,021 857,599 Derivatives designated as cash flow hedges(1) 32,216 (8,112) Affiliated notes, available-for-sale 1,413 4,024 Other investments(2) 558 (4,162) Net unrealized gains (losses) on investments $ 603,183 $ 849,349 (1) For more information on cash flow hedges, see Note 4. (2) Includes net unrealized gains (losses) on certain joint ventures that are strategic in nature and are included in "other assets". 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 both September 30, 2021 and December 31, 2020, 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: September 30, 2021 December 31, 2020 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) Foreign public corporate securities $ 0 $ 0 $ 0 $ 2,725 $ 0 $ 2,725 Total cash collateral for loaned securities(1) $ 0 $ 0 $ 0 $ 2,725 $ 0 $ 2,725 (1) The Company did not have any agreements with remaining contractual maturities greater than thirty days, as of the dates indicated. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 4. DERIVATIVES AND HEDGING 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, 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, 2020. 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 and cash collateral. September 30, 2021 December 31, 2020 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 Interest Rate Swaps $ 3,383 $ 73 $ 0 $ 3,486 $ 203 $ 0 Foreign Currency Swaps 839,726 36,260 (10,309) 861,074 27,336 (49,316) Total Derivatives Designated as Hedge Accounting Instruments $ 843,109 $ 36,333 $ (10,309) $ 864,560 $ 27,539 $ (49,316) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 132,732,910 $ 5,889,729 $ (10,791,716) $ 663,050 $ 57,024 $ (11,117) Interest Rate Options 9,898,000 186,499 (169,030) 0 0 0 Interest Rate Futures 3,660,200 3,384 (19) 57,700 198 0 Interest Rate Forwards 178,122 130 (3,846) 0 0 0 Foreign Currency Foreign Currency Forwards 84,434 1,392 (33) 55,292 5 (1,322) Credit Credit Default Swaps 100,000 9,341 0 2,313 0 (18) Currency/Interest Rate Foreign Currency Swaps 1,320,211 45,930 (20,820) 143,011 6,584 (7,286) Equity Total Return Swaps 14,491,104 297,046 (25,762) 0 0 0 Equity Options 36,153,823 421,403 (702,796) 3,244,900 306,196 (196,767) Equity Futures 2,864,672 87 (30,460) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments $ 201,483,476 $ 6,854,941 $ (11,744,482) $ 4,166,266 $ 370,007 $ (216,510) Total Derivatives(1)(2) $ 202,326,585 $ 6,891,274 $ (11,754,791) $ 5,030,826 $ 397,546 $ (265,826) (1) Excludes embedded derivatives and associated reinsurance recoverables which contain multiple underlying risks. The fair value of these embedded derivatives was a net liability of $9,208 million and $13,228 million as of September 30, 2021 and December 31, 2020, respectively included in "Future policy benefits" and $1,154 million and $1,155 million as of September 30, 2021 and December 31, 2020, respectively included in "Policyholders' account balances". The fair value of the related reinsurance, included in "Reinsurance recoverables" or "Other liabilities" was an asset of $940 million and $13,240 million as of September 30, 2021 and December 31, 2020, respectively. (2) Recorded in “Other invested assets” and “Payables to parent and affiliates” on the Unaudited Interim Consolidated Statements of Financial Position. 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. September 30, 2021 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 6,891,274 $ (6,666,433) $ 224,841 $ 0 $ 224,841 Securities purchased under agreements to resell 50,000 0 50,000 (50,000) 0 Total Assets $ 6,941,274 $ (6,666,433) $ 274,841 $ (50,000) $ 224,841 Offsetting of Financial Liabilities: Derivatives $ 11,754,791 $ (11,724,418) $ 30,373 $ (30,373) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 11,754,791 $ (11,724,418) $ 30,373 $ (30,373) $ 0 December 31, 2020 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 397,546 $ (379,399) $ 18,147 $ (14,572) $ 3,575 Securities purchased under agreements to resell 0 0 0 0 0 Total Assets $ 397,546 $ (379,399) $ 18,147 $ (14,572) $ 3,575 Offsetting of Financial Liabilities: Derivatives $ 265,826 $ (265,826) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 265,826 $ (265,826) $ 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, 2020. Cash Flow Hedges The primary derivative instruments used by the Company in its cash flow hedge accounting relationships are currency swaps and interest rate 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, or equity 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 September 30, 2021 Realized Net Other AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ 0 $ 12 $ 0 $ (20) Currency/Interest Rate 928 5,211 10,053 19,988 Total cash flow hedges 928 5,223 10,053 19,968 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (283,767) 0 0 0 Currency 1,428 0 0 0 Currency/Interest Rate 35,346 0 42 0 Credit (190) 0 0 0 Equity (104,815) 0 0 0 Embedded Derivatives(2) (4,656,818) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (5,008,816) 0 42 0 Total $ (5,007,888) $ 5,223 $ 10,095 $ 19,968 Nine Months Ended September 30, 2021 Realized Net Other AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ 2 $ 35 $ 0 $ (119) Currency/Interest Rate 834 10,002 11,174 40,447 Total cash flow hedges 836 10,037 11,174 40,328 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (304,420) 0 0 0 Currency 2,261 0 0 0 Currency/Interest Rate 38,437 0 28 0 Credit (202) 0 0 0 Equity (69,558) 0 0 0 Embedded Derivatives(2) (4,721,813) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (5,055,295) 0 28 0 Total $ (5,054,459) $ 10,037 $ 11,202 $ 40,328 Three Months Ended September 30, 2020 Realized Net Other AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ 0 $ 11 $ 0 $ (15) Currency/Interest Rate 70 2,699 (5,994) (39,642) Total cash flow hedges 70 2,710 (5,994) (39,657) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (4,439) 0 0 0 Currency (1,557) 0 0 0 Currency/Interest Rate (7,669) 0 (67) 0 Credit (4) 0 0 0 Equity 30,813 0 0 0 Embedded Derivatives (18,609) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (1,465) 0 (67) 0 Total $ (1,395) $ 2,710 $ (6,061) $ (39,657) Nine Months Ended September 30, 2020 Realized Net Other AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ (44) $ 9 $ 0 $ 313 Currency/Interest Rate 841 8,073 (853) 27,772 Total cash flow hedges 797 8,082 (853) 28,085 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 25,270 0 0 0 Currency (531) 0 0 0 Currency/Interest Rate 7,004 0 (19) 0 Credit (229) 0 0 0 Equity (1,305) 0 0 0 Embedded Derivatives (15,297) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments 14,912 0 (19) 0 Total $ 15,709 $ 8,082 $ (872) $ 28,085 (1) Net change in AOCI. (2) Includes the impact from 2021 Variable Annuities Recapture, see Note 1 for further details. Presented below is a rollforward of current period cash flow hedges in AOCI before taxes: (in thousands) Balance, December 31, 2020 $ (8,112) Amount recorded in AOCI Interest Rate (82) Currency/Interest Rate 62,457 Total amount recorded in AOCI 62,375 Amount reclassified from AOCI to income Interest Rate (37) Currency/Interest Rate (22,010) Total amount reclassified from AOCI to income (22,047) Balance, September 30, 2021 $ 32,216 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 September 30, 2021 values, it is estimated that a pre-tax gain of $9 million is expected to be reclassified from AOCI to earnings during the subsequent twelve months ending September 30, 2022. 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 Credit Derivatives, where the Company has written credit protection on certain index references, had outstanding notional amounts of $100 million and $0 million as of September 30, 2021 and December 31, 2020, respectively. These credit derivatives are reported at fair value as an asset of $9 million and $0 million as of September 30, 2021 and December 31, 2020, respectively. As of September 30, 2021 the notional amount of these credit derivatives had the following NAIC rating: $100 million in NAIC 6. 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 million and $2 million reported as of September 30, 2021 and December 31, 2020, respectively with a fair value of $0 million for both periods. Counterparty Credit Risk The Company is exposed to credit-related losses in the event of non-performance by counterparties 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 | 9 Months Ended |
Sep. 30, 2021 | |
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, 2020. 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. September 30, 2021 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 $ 325,930 $ 55,000 $ $ 380,930 Obligations of U.S. states and their political subdivisions 0 529,390 0 529,390 Foreign government bonds 0 298,158 152 298,310 U.S. corporate public securities 0 4,420,329 0 4,420,329 U.S. corporate private securities 0 1,422,947 78,100 1,501,047 Foreign corporate public securities 0 785,394 8,942 794,336 Foreign corporate private securities 0 1,746,088 195,595 1,941,683 Asset-backed securities(2) 0 305,153 33,328 338,481 Commercial mortgage-backed securities 0 476,560 0 476,560 Residential mortgage-backed securities 0 21,089 0 21,089 Subtotal 0 10,331,038 371,117 10,702,155 Fixed maturities, trading 0 3,751,472 0 3,751,472 Equity securities 135 40,687 12,356 53,178 Short-term investments 39,997 42,553 1,690 84,240 Cash equivalents 528,975 204,000 1,230 734,205 Other invested assets(3) 143,289 6,747,985 0 (6,666,433) 224,841 Reinsurance recoverables 0 0 939,489 939,489 Receivables from parent and affiliates 0 164,293 0 164,293 Subtotal excluding separate account assets 712,396 21,282,028 1,325,882 (6,666,433) 16,653,873 Separate account assets(4)(5) 52,942 141,198,669 0 141,251,611 Total assets $ 765,338 $ 162,480,697 $ 1,325,882 $ (6,666,433) $ 157,905,484 Future policy benefits(6) $ 0 $ 0 $ 9,208,188 $ $ 9,208,188 Policyholders' account balances 0 0 1,154,423 1,154,423 Payables to parent and affiliates 0 11,721,872 0 (11,721,872) 0 Other liabilities 32,919 0 0 (2,546) 30,373 Total liabilities $ 32,919 $ 11,721,872 $ 10,362,611 $ (11,724,418) $ 10,392,984 December 31, 2020 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 $ 22,855 $ 55,000 $ $ 77,855 Obligations of U.S. states and their political subdivisions 0 517,951 0 517,951 Foreign government bonds 0 250,692 163 250,855 U.S. corporate public securities 0 2,929,431 3 2,929,434 U.S. corporate private securities 0 977,423 34,633 1,012,056 Foreign corporate public securities 0 311,407 9,323 320,730 Foreign corporate private securities 0 961,113 130,817 1,091,930 Asset-backed securities(2) 0 235,573 2,065 237,638 Commercial mortgage-backed securities 0 520,947 0 520,947 Residential mortgage-backed securities 0 53,235 0 53,235 Subtotal 0 6,780,627 232,004 7,012,631 Fixed maturities, trading 0 81,727 755 82,482 Equity securities 100,268 300 7,889 108,457 Short-term investments 49,997 0 0 49,997 Cash equivalents 49,996 347,330 0 397,326 Other invested assets(3) 198 397,348 0 (379,399) 18,147 Reinsurance recoverables 0 0 13,239,539 13,239,539 Receivables from parent and affiliates 0 111,970 0 111,970 Subtotal excluding separate account assets 200,459 7,719,302 13,480,187 (379,399) 21,020,549 Separate account assets(4)(5) 0 140,583,009 0 140,583,009 Total assets $ 200,459 $ 148,302,311 $ 13,480,187 $ (379,399) $ 161,603,558 Future policy benefits(6) $ 0 $ 0 $ 13,227,814 $ $ 13,227,814 Policyholders' account balances 0 0 1,155,274 1,155,274 Payables to parent and affiliates 0 265,826 0 (265,826) 0 Other liabilities 0 0 0 0 0 Total liabilities $ 0 $ 265,826 $ 14,383,088 $ (265,826) $ 14,383,088 (1) “Netting” amounts represent cash collateral of $(5,058.0) million and $113.6 million as of September 30, 2021 and December 31, 2020, respectively. (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 September 30, 2021 and December 31, 2020, the fair values of such investments were $78 million and $77 million, respectively. (4) 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. (5) 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). At September 30, 2021 and December 31, 2020, the fair value of such investments was $5,574 million and $5,157 million, respectively. (6) As of September 30, 2021, the net embedded derivative liability position of $9,208 million includes $616 million of embedded derivatives in an asset position and $9,824 million of embedded derivatives in a liability position. As of December 31, 2020, the net embedded derivative liability position of $13,228 million includes $483 million of embedded derivatives in an asset position and $13,711 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. September 30, 2021 Fair Value Valuation Unobservable Inputs Minimum Maximum Weighted Average Impact of (in thousands) Assets: Corporate securities(2) $ 217,167 Discounted cash flow Discount rate 1.44 % 12.89 % 3.63 % Decrease Market Comparables EBITDA multiples(3) 3.8 X 10.3 X 7.6 X Increase Liquidation Liquidation value 62.58 % 62.58 % 62.58 % Increase Reinsurance recoverables $ 939,489 Fair values are determined using the same unobservable inputs as future policy benefits. Liabilities: Future policy benefits(4) $ 9,208,188 Discounted cash flow Lapse rate(6) 1 % 20 % Decrease Spread over LIBOR(7) 0.05 % 1.05 % Decrease Utilization rate(8) 39 % 96 % Increase Withdrawal rate See table footnote (9) below. Mortality rate(10) 0 % 15 % Decrease Equity volatility curve 17 % 26 % Increase Policyholders' account balances(5) $ 1,154,423 Discounted cash flow Lapse rate(6) 1 % 6 % Decrease Spread over LIBOR(7) 0.05 % 1.07 % Decrease Mortality rate(10) 0 % 23 % Decrease Equity volatility curve 13 % 30 % Increase December 31, 2020 Fair Value Valuation Unobservable Minimum Maximum Weighted Impact of (in thousands) Assets: Corporate securities(2) $ 151,554 Discounted cash flow Discount rate 0.99 % 11.38 % 3.44 % Decrease Reinsurance recoverables $ 13,239,539 Fair values are determined using the same unobservable inputs as future policy benefits. Liabilities: Future policy benefits(4) $ 13,227,814 Discounted cash flow Lapse rate(6) 1 % 20 % Decrease Spread over LIBOR(7) 0.06 % 1.17 % Decrease Utilization rate(8) 39 % 96 % Increase Withdrawal rate See table footnote (9) below. Mortality rate(10) 0 % 15 % Decrease Equity volatility curve 18 % 26 % Increase Policyholders' account balances(5) $ 1,155,274 Discounted cash flow Lapse rate(6) 1 % 6 % Decrease Spread over LIBOR(7) 0.06 % 1.17 % Decrease Mortality rate(10) 0 % 24 % Decrease Equity volatility curve 15 % 30 % 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 September 30, 2021 and December 31, 2020, the minimum withdrawal rate assumption is 76% 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 may 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. Examples of such interrelationships for significant internally-priced Level 3 assets and liabilities are as follows: Corporate Securities – The rate used to discount future cash flows reflects current risk-free rates plus credit and liquidity spread requirements that market participants would use to value an asset. The discount rate may be influenced by many factors, including market cycles, expectations of default, collateral, term, and asset complexity. Each of these factors can influence discount rates, either in isolation, or in response to other factors. During weaker economic cycles, as the expectations of default increases, credit spreads widen, which results in a decrease in fair value. Future Policy Benefits – The Company expects efficient benefit utilization and withdrawal rates to generally be correlated with lapse rates. However, behavior is highly dependent on the facts and circumstances surrounding the individual contractholder, such as their liquidity needs or tax situation, which could drive lapse behavior independent of other contractholder behavior assumptions. To the extent that more efficient contractholder behavior results in greater in-the-moneyness at the contract level, lapse rates may decline for those contracts. Similarly, to the extent that increases in equity volatility are correlated with overall declines in the capital markets, lapse rates may decline as contracts become more in-the-money. 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. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate. Three Months Ended September 30, 2021 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 $ 55,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 55,000 $ 0 Foreign government 156 (4) 0 0 0 0 0 0 0 152 (5) Corporate securities(4) 170,830 (6,783) 3,173 0 0 (7,907) 119,218 4,106 0 282,637 (6,710) Structured securities(5) 27,179 (452) 12,500 0 0 (308) 19,859 0 (25,450) 33,328 (449) Other assets: Fixed maturities, trading 801 0 0 0 0 0 0 0 (801) 0 0 Equity securities 8,005 477 0 0 0 0 3,874 0 0 12,356 477 Other invested assets 0 0 0 0 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 1,690 0 0 1,690 0 Cash equivalents 0 0 0 0 0 0 1,230 0 0 1,230 0 Reinsurance recoverables 9,275,523 (8,372,926) 36,892 0 0 0 0 0 0 939,489 (32,262) Receivables from parent and affiliates 0 0 0 0 0 0 0 0 0 0 0 Liabilities: Future policy benefits (9,263,516) 331,967 0 0 (276,639) 0 0 0 0 (9,208,188) 218,025 Policyholders' account balances(6) (1,156,610) 5,389 0 0 (3,202) 0 0 0 0 (1,154,423) 21,559 Three Months Ended September 30, 2021 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) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ (1,656) $ 0 $ (5,768) $ 185 $ (1,678) $ 0 $ (5,486) Other assets: Fixed maturities, trading 0 0 0 0 0 0 0 Equity securities 0 477 0 0 0 477 0 Other invested assets 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 Reinsurance recoverables (8,372,926) 0 0 0 (32,262) 0 0 Receivables from parent and affiliates 0 0 0 0 0 0 0 Liabilities: Future policy benefits 331,967 0 0 0 218,025 0 0 Policyholders' account balances 5,389 0 0 0 21,559 0 0 Nine Months Ended September 30, 2021 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 $ 55,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 55,000 $ 0 Foreign government 163 (11) 0 0 0 0 0 0 0 152 (13) Corporate securities(4) 174,776 (13,815) 5,515 0 0 (12,280) 119,218 9,223 0 282,637 (13,811) Structured securities(5) 2,065 (465) 38,450 0 0 (1,131) 19,859 0 (25,450) 33,328 (462) Other assets: Fixed maturities, trading 755 46 0 0 0 0 0 0 (801) 0 46 Equity securities 7,889 593 0 0 0 0 3,874 0 0 12,356 593 Other invested assets 0 0 0 0 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 1,690 0 0 1,690 0 Cash equivalents 0 0 0 0 0 0 1,230 0 0 1,230 0 Reinsurance recoverables 13,239,539 (12,892,808) 592,758 0 0 0 0 0 0 939,489 (524,521) Receivables from parent and affiliates 0 0 0 0 0 0 0 0 0 0 0 Liabilities: Future policy benefits (13,227,814) 4,848,168 0 0 (828,542) 0 0 0 0 (9,208,188) 4,365,984 Policyholders' account balances(6) (1,155,274) (31,278) 0 0 0 32,129 0 0 0 (1,154,423) 21,234 Nine Months Ended September 30, 2021 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) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ 152 $ 0 $ (14,678) $ 235 $ 121 $ 0 $ (14,407) Other assets: Fixed maturities, trading 0 46 0 0 0 46 0 Equity securities 0 593 0 0 0 593 0 Other invested assets 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 Reinsurance recoverables (12,892,808) 0 0 0 (524,521) 0 0 Receivables from parent and affiliates 0 0 0 0 0 0 0 Liabilities: Future policy benefits 4,848,168 0 0 0 4,365,984 0 0 Policyholders' account balances (31,278) 0 0 0 21,234 0 0 Three Months Ended September 30, 2020 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 $ 44,792 $ 0 $ 3,667 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 48,459 $ 0 Foreign government 161 3 0 0 0 0 0 0 0 164 2 Corporate securities(4) 156,972 3,941 2,436 0 0 (538) (1,914) 0 0 160,897 3,920 Structured securities(5) 1,507 (3) 1,299 0 0 (262) 0 0 0 2,541 (4) Other assets: Fixed maturities, trading 644 54 0 0 0 0 0 0 0 698 55 Equity securities 9,150 1,762 0 0 0 0 0 0 0 10,912 1,762 Other invested assets 0 0 0 0 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 0 0 0 Reinsurance recoverables 19,028,138 (2,631,208) 278,413 0 0 0 0 0 0 16,675,343 (2,473,607) Receivables from parent and affiliates 0 0 0 0 0 0 0 0 0 0 0 Liabilities: Future policy benefits (19,014,066) 2,629,271 0 0 (276,460) 0 0 0 0 (16,661,255) 2,475,638 Policyholders' account balances(6) (1,045,483) (2,053) 0 0 (29,368) 0 0 0 0 (1,076,904) 11,350 Three Months Ended September 30, 2020 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) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ (1,084) $ 0 $ 5,003 $ 22 $ (1,086) $ 0 $ 5,004 Other assets: Fixed maturities, trading 0 54 0 0 0 55 0 Equity securities 0 1,762 0 0 0 1,762 0 Other invested assets 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 Reinsurance recoverables (2,631,208) 0 0 0 (2,473,607) 0 0 Receivables from parent and affiliates 0 0 0 0 0 0 0 Liabilities: Future policy benefits 2,629,271 0 0 0 2,475,638 0 0 Policyholders' account balances (2,053) 0 0 0 11,350 0 0 Nine Months Ended September 30, 2020 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 $ 38,671 $ 0 $ 9,788 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 48,459 $ 0 Foreign government 163 1 0 0 0 0 0 0 0 164 0 Corporate securities(4) 50,083 2,409 11,100 (3,680) 0 (6,873) (1,914) 109,772 0 160,897 3,113 Structured securities(5) 2,001 (478) 7,444 0 0 (790) 0 0 (5,636) 2,541 (478) Other assets: Fixed maturities, trading 668 30 0 0 0 0 0 0 0 698 30 Equity securities 9,898 1,014 0 0 0 0 0 0 0 10,912 1,014 Other invested assets 4 (4) 0 0 0 0 0 0 0 0 (4) Short-term investments 0 0 0 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 0 0 0 Reinsurance recoverables 8,539,671 7,319,752 815,920 0 0 0 0 0 0 16,675,343 7,534,062 Receivables from parent and affiliates 3,135 23 0 0 0 (3,158) 0 0 0 0 0 Liabilities: Future policy benefits (8,529,566) (7,321,642) 0 0 (810,047) 0 0 0 0 (16,661,255) (7,535,951) Policyholders' account balances(6) (962,351) 37,907 0 0 (152,460) 0 0 0 0 (1,076,904) 53,610 Nine Months Ended September 30, 2020 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) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ (5,224) $ 0 $ 7,034 $ 122 $ (4,780) $ 0 $ 7,415 Other assets: Fixed maturities, trading 0 30 0 0 0 30 0 Equity securities 0 1,014 0 0 0 1,014 0 Other invested assets (4) 0 0 0 (4) 0 0 Short-term investments 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 Reinsurance recoverables 7,319,752 0 0 0 7,534,062 0 0 Receivables from parent and affiliates 0 0 0 23 0 0 0 Liabilities: Future policy benefits (7,321,642) 0 0 0 (7,535,951) 0 0 Policyholders' account balances 37,907 0 0 0 53,610 0 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. Refer to Note 1 for impacts to Realized investments gains (losses), net related to the 2021 Variable Annuities Recapture. (2) For current year "Other" represents noncash transfers related to the 2021 Variable Annuities Recapture. Refer to Note 1 for additional information. Prior year 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 and residential mortgage-backed securities. (6) Issuances and settlements for Policyholders' account balances are presented net in the rollforward. 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. September 30, 2021 Fair Value Carrying Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 2,120,345 $ 2,120,345 $ 2,042,654 Policy loans 0 0 1,324,335 1,324,335 1,324,335 Cash and cash equivalents 316,730 50,000 0 366,730 366,730 Accrued investment income 0 139,355 0 139,355 139,355 Reinsurance recoverables 0 0 29,201 29,201 27,971 Receivables from parent and affiliates 0 197,201 0 197,201 197,201 Other assets 0 81,126 0 81,126 81,126 Total assets $ 316,730 $ 467,682 $ 3,473,881 $ 4,258,293 $ 4,179,372 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 1,404,725 $ 296,918 $ 1,701,643 $ 1,695,222 Cash collateral for loaned securities 0 0 0 0 0 Long-term debt to affiliates 0 321,828 0 321,828 322,631 Payables to parent and affiliates 0 133,353 0 133,353 133,353 Other liabilities 0 464,793 34,091 498,884 498,884 Total liabilities $ 0 $ 2,324,699 $ 331,009 $ 2,655,708 $ 2,650,090 December 31, 2020 Fair Value Carrying Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 1,359,422 $ 1,359,422 $ 1,288,846 Policy loans 0 0 1,323,681 1,323,681 1,323,681 Cash and cash equivalents 29,653 0 0 29,653 29,653 Accrued investment income 0 93,613 0 93,613 93,613 Reinsurance recoverables 0 0 227,993 227,993 217,637 Receivables from parent and affiliates 0 154,503 0 154,503 154,503 Other assets 0 27,120 0 27,120 27,120 Total assets $ 29,653 $ 275,236 $ 2,911,096 $ 3,215,985 $ 3,135,053 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 1,428,043 $ 286,533 $ 1,714,576 $ 1,704,220 Cash collateral for loaned securities 0 2,725 0 2,725 2,725 Long-term debt to affiliates 0 0 0 0 0 Payables to parent and affiliates 0 75,990 0 75,990 75,990 Other liabilities 0 415,889 0 415,889 415,889 Total liabilities $ 0 $ 1,922,647 $ 286,533 $ 2,209,180 $ 2,198,824 (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 out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXESThe 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 $(782.3) million, or 24.73% of income (loss) from operations before income taxes and equity in earnings of operating joint venture, in the first nine months of 2021, compared to $(174.3) million, or (206.21)%, in the first nine months of 2020. 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.On March 27, 2020, the CARES Act was enacted into law. One provision of the CARES Act amended the Tax Cuts and Jobs Act (“TCJA”) and allowed companies with net operating losses (“NOLs”) originating in 2018, 2019 or 2020 to carry back those losses for five years. The Company has incorporated into the full year projected 2020 effective tax rate an income tax benefit of $48 million that resulted from carrying the estimated 2020 NOL back to tax years that have a 35% tax rate. |
Reinsurance
Reinsurance | 9 Months Ended |
Sep. 30, 2021 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | REINSURANCE The Company participates in reinsurance with its affiliates 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"), Dryden Arizona Reinsurance Term Company (“DART”), and Prudential Life Insurance Company of Taiwan Inc. (“Prudential of Taiwan”), a subsidiary of Prudential Financial that was sold to a third-party on June 30, 2021, as discussed below. As of July 1, 2021, the Company ended its reinsurance agreement with PALAC as a result of the 2021 Variable Annuities Recapture, which is discussed below and in Note 1. The Company also participates in reinsurance with 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 which was recaptured as part of the 2021 Variable Annuities Recapture, and 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 September 30, 2021 and December 31, 2020 were as follows: September 30, 2021 December 31, 2020 (in thousands) Reinsurance recoverables $ 30,904,877 $ 48,367,096 Policy loans (157,409) (153,869) Deferred policy acquisition costs (3,039,546) (6,574,020) Deferred sales inducements (38,335) (445,493) Other assets(1) 120,985 233,364 Policyholders’ account balances 4,620,765 4,773,439 Future policy benefits(2) 5,169,657 5,069,353 Other liabilities(3) 1,041,919 1,099,318 (1) Includes $0.0 million of unaffiliated activity as of both September 30, 2021 and December 31, 2020, respectively. (2) Includes $0.0 million of unaffiliated activity as of both September 30, 2021 and December 31, 2020, respectively. (3) Includes $52 million and $43 million of unaffiliated activity as of September 30, 2021 and December 31, 2020, respectively. Reinsurance recoverables by counterparty are broken out below: September 30, 2021 December 31, 2020 (in thousands) PAR U $ 13,380,530 $ 13,352,845 PALAC 0 15,941,123 PURC 5,652,790 5,368,831 PARCC 2,464,059 2,572,428 GUL Re 2,652,663 2,573,609 PAR Term 1,974,167 1,913,265 Prudential Insurance 2,006,562 2,421,226 Prudential of Taiwan 0 1,649,998 Term Re 1,900,805 1,766,978 DART 624,071 502,770 Unaffiliated 249,230 304,023 Total reinsurance recoverables $ 30,904,877 $ 48,367,096 Reinsurance amounts, included in the Company’s Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and nine months ended September 30, were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) Premiums: Direct $ 487,010 $ 475,017 $ 1,459,895 $ 1,435,080 Assumed(1) 41 45 125 140 Ceded(2) (435,514) (450,755) (1,319,216) (1,373,498) Net premiums 51,537 24,307 140,804 61,722 Policy charges and fee income: Direct 919,203 882,373 2,722,548 2,600,632 Assumed 146,257 131,877 432,907 395,960 Ceded(3) (455,359) (863,170) (2,213,289) (2,544,508) Net policy charges and fee income 610,101 151,080 942,166 452,084 Net investment income: Direct 180,642 95,266 377,942 261,304 Assumed (55) 390 675 1,184 Ceded (1,477) (1,664) (5,340) (5,453) Net investment income 179,110 93,992 373,277 257,035 Asset administration fees: Direct 101,105 91,953 296,542 265,612 Assumed 0 0 0 0 Ceded (9,167) (86,989) (192,117) (251,958) Net asset administration fees 91,938 4,964 104,425 13,654 Other income: Direct 24,609 28,529 66,286 49,817 Assumed(4) (6) (112) (66) (141) Ceded 35,687 3 35,793 128 Amortization of reinsurance income 1,119 1,162 3,270 3,506 Net other income 61,409 29,582 105,283 53,310 Realized investment gains (losses), net: Direct 3,362,148 2,646,206 7,864,422 (7,254,543) Assumed 0 0 0 0 Ceded(5) (8,370,760) (2,647,753) (12,918,928) 7,262,660 Realized investment gains (losses), net (5,008,612) (1,547) (5,054,506) 8,117 Policyholders’ benefits (including change in reserves): Direct 975,500 879,729 2,775,018 2,691,447 Assumed(6) 222,418 196,502 639,927 766,272 Ceded(7) (811,915) (1,020,403) (2,856,953) (3,229,715) Net policyholders’ benefits (including change in reserves) 386,003 55,828 557,992 228,004 Interest credited to policyholders’ account balances: Direct 150,269 148,411 430,494 420,163 Assumed 30,540 33,974 95,658 102,230 Ceded (485,215) (130,119) (726,988) (348,664) Net interest credited to policyholders’ account balances (304,406) 52,266 (200,836) 173,729 Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization (1,398,529) (448,254) (2,159,809) (1,330,501) (1) Includes $0.0 million of unaffiliated activity for both the three months ended September 30, 2021 and 2020, respectively and $0.1 million and $0.2 million for the nine months ended September 30, 2021 and 2020. (2) Includes $(6.1) million and $(2.4) million of unaffiliated activity for the three months ended September 30, 2021, and 2020, respectively and $(19.7) million and $(7.5) million for the nine months ended September 30, 2021 and 2020, respectively. (3) Includes $(24) million and $(18) million of unaffiliated activity for the three months ended September 30, 2021 and 2020, respectively and $(54) million and $(39) million for the nine months ended September 30, 2021 and 2020, respectively. (4) Includes $0.0 million and $0.1 million of unaffiliated activity for the three months ended September 30, 2021 and 2020, respectively and $0 million and $0.1 million for the nine months ended September 30, 2021 and 2020. (5) Includes $(10) million and $(68) million of unaffiliated activity for the three months ended September 30, 2021 and 2020, respectively and $(120) million and $160 million for the nine months ended September 30, 2021 and 2020, respectively. (6) Includes $0.1 million of unaffiliated activity for both the three months ended September 30, 2021 and 2020, respectively and $0.4 million and $0.7 million for the nine months ended September 30, 2021 and 2020, respectively. (7) Includes $(38) million and $(20) million of unaffiliated activity for the three months ended September 30, 2021 and 2020, respectively and $(169) million and $(44) million for the nine months ended September 30, 2021 and 2020, respectively. The gross and net amounts of life insurance face amount in force as of September 30, 2021 and 2020 were as follows: 2021 2020 (in thousands) Direct gross life insurance face amount in force $ 1,071,060,317 $ 1,031,639,923 Assumed gross life insurance face amount in force 38,117,216 39,135,248 Reinsurance ceded (991,290,617) (981,522,009) Net life insurance face amount in force $ 117,886,916 $ 89,253,162 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, with effective dates through December 31, 2019, excluding those policies that are subject to principle-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. As of December 31, 2020, the Company discontinued the sales of traditional variable annuities with guaranteed living benefit riders. This discontinuation has no impact on the reinsurance agreement between PALAC, Prudential Insurance, and the Company. Effective July 1, 2021, the Company recaptured the risks related to its business, as discussed above, that had previously been reinsured to PALAC from April 1, 2016 through June 30, 2021. The recapture does not impact PLNJ, which will continue to reinsure its new and in force business to Prudential Insurance. The product risks related to the previously reinsured business that were being managed in PALAC, were transferred to the Company. In addition, the living benefit hedging program related to the previously reinsured living benefit riders will be managed within the Company. See Note 1 for additional information. 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 Prior to July 1, 2019, the Company reinsured 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. Effective July 1, 2019, the Company amended the coinsurance agreement to increase the percentage from 90% to 100% of the policy risk amount reinsured , which resulted in an initial transfer of $476 million in premiums and $409 million in expenses ceded with the difference being deferred and subsequently amortized through income. 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 through December 31, 2019, excluding those policies that are subject to principle-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 Prior to July 1, 2019, 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. Effective July 1, 2019, the Company amended the coinsurance agreement to increase the percentage from 95% to 100% of the policy risk amount reinsured , which resulted in an initial transfer of $150 million in premiums and $115 million in expenses ceded with the difference being deferred and subsequently amortized through income. 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. 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 remained on the books of Pruco Life and an offsetting reinsurance recoverable was established. These assets and liabilities were denominated in U.S. dollars. On August 11, 2020, Prudential International Insurance Holdings, Ltd. (“PIIH”), a subsidiary of Prudential Financial, entered into a Share Purchase Agreement with Taishin Financial Holding Co., Ltd. (the “Buyer”) pursuant to which PIIH has agreed to sell to the Buyer all of the issued and outstanding capital stock of Prudential of Taiwan. The Share Purchase Agreement contains customary warranties and covenants of PIIH and the Buyer. On June 30, 2021, PIIH completed the sale of Prudential of Taiwan to the Buyer. This resulted in the removal of the insurance related liabilities and offsetting reinsurance recoverables previously on the books of Pruco Life. The Buyer provided Pruco Life a backstop indemnification and Pruco Life provided a guarantee to stand ready to perform in the event of default by both Prudential of Taiwan and the Buyer. Refer to Note 10 for details on the guarantee. 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. As of January 1, 2020, the remaining portions of new business (specifically Term policies) ceased being reinsured by the Company to Prudential Insurance. 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. Effective July 1, 2019, this agreement has been recaptured for certain term life insurance policies which are now reinsured to PARCC and PAR Term as noted above. 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 was 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 was no impact to the Company's reinsurance arrangements with respect to such GUL business as a result of this change in control. In January 2021, there was a definitive agreement announced to subsequently sell the two counterparties mentioned above. We anticipate there will be no impact to the terms, rights or obligations of the Company, or operation of these reinsurance arrangements, as a result of this change in control of such counterparties. 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. 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 through December 31, 2019, excluding those policies that are subject to principle-based reserving. Information regarding significant third-party reinsurance arrangements is described below. Union Hamilton Between April 1, 2015 and December 31, 2016, the Company, excluding its subsidiary, 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 Reinsurance Ltd. ("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 September 30, 2021, $3.2 billion of HDI v.3.0 account values are reinsured to Union Hamilton. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Equity | EQUITY Accumulated Other Comprehensive Income (Loss) AOCI represents the cumulative OCI items that are reported separate from net income and detailed on the Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss). The balance of and changes in each component of AOCI as of and for the nine months ended September 30, 2021 and 2020, are as follows: Accumulated Other Comprehensive Income (Loss) Foreign Net Unrealized Total Accumulated (in thousands) Balance, December 31, 2020 $ (7,797) $ 553,925 $ 546,128 Change in OCI before reclassifications (3,904) (181,041) (184,945) Amounts reclassified from AOCI 0 (23,861) (23,861) Income tax benefit (expense) 313 43,029 43,342 Balance, September 30, 2021 $ (11,388) $ 392,052 $ 380,664 Accumulated Other Comprehensive Income (Loss) Foreign Net Unrealized Total Accumulated (in thousands) Balance, December 31, 2019 $ (7,917) $ 289,359 $ 281,442 Change in OCI before reclassifications (8,007) 233,906 225,899 Amounts reclassified from AOCI 0 (1,200) (1,200) Income tax benefit (expense) (2,189) (48,869) (51,058) Balance, September 30, 2020 $ (18,113) $ 473,196 $ 455,083 (1) Includes cash flow hedges of $32 million and $(8) million as of September 30, 2021 and December 31, 2020, respectively, and $54 million and $26 million as of September 30, 2020 and December 31, 2019, respectively . Reclassifications out of Accumulated Other Comprehensive Income (Loss) Three Months Ended Nine Months Ended 2021 2020 2021 2020 (in thousands) Amounts reclassified from AOCI (1)(2): Net unrealized investment gains (losses): Cash flow hedges - Currency/Interest rate(3) $ 16,205 $ (3,214) $ 22,047 $ 8,026 Net unrealized investment gains (losses) on available-for-sale securities 3,183 (88) 1,814 (6,826) Total net unrealized investment gains (losses)(4) 19,388 (3,302) 23,861 1,200 Total reclassifications for the period $ 19,388 $ (3,302) $ 23,861 $ 1,200 (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 DAC and other costs, future policy benefits, policyholders’ account balances and other liabilities. Net Unrealized Investment Gains (Losses) Net unrealized investment gains (losses) on available-for-sale fixed maturity securities 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 net unrealized investment gains (losses) on available-for-sale fixed maturity securities on which an allowance for credit losses has been recognized, and all other net unrealized investment gains (losses), are as follows: Net Unrealized Gains (Losses) on Investments on Available-for-Sale Fixed Maturity Securities on which an allowance for credit losses has been recognized Net Unrealized DAC and Other Costs(2) Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(3) Income Tax Accumulated (in thousands) Balance, December 31, 2020 $ 0 $ 849,349 $ 1,200,048 $ (1,348,231) $ (147,241) $ 553,925 Net investment gains (losses) on investments arising during the period 623 (222,928) 0 0 46,684 (175,621) Reclassification adjustment for (gains) losses included in net income 0 (23,861) 0 0 5,011 (18,850) Reclassification due to allowance for credit losses recorded during the period 352 (352) 0 0 0 0 Impact of net unrealized investment (gains) losses 0 0 (279,391) 320,655 (8,666) 32,598 Balance, September 30, 2021 $ 975 $ 602,208 $ 920,657 $ (1,027,576) $ (104,212) $ 392,052 (1) Includes cash flow hedges. See Note 4 for information on cash flow hedges. (2) "Other costs" primarily includes reinsurance recoverables and deferred reinsurance losses. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
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 The majority 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 $0.0 million and $0.4 million for the three months ended September 30, 2021 and 2020, respectively, and $0.4 million and $0.9 million for the nine months ended September 30, 2021 and 2020, respectively. The expense charged to the Company for the deferred compensation program was $0.6 million and $1.3 million for the three months ended September 30, 2021 and 2020, respectively, and $2.9 million and $4.3 million for the nine months ended September 30, 2021 and 2020, respectively. The Company is charged for its share of employee benefit expenses. These expenses include costs for funded and non-funded, 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 $2 million and $4 million for the three months ended September 30, 2021 and 2020, respectively, and $8 million and $13 million for the nine months ended September 30, 2021 and 2020, 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 $3 million and $5 million for the three months ended September 30, 2021 and 2020, respectively, and $9 million and $14 million for the nine months ended September 30, 2021 and 2020, 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 $1 million and $2 million for the three months ended September 30, 2021 and 2020, respectively, and $3 million and $6 million for the nine months ended September 30, 2021 and 2020, respectively. 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 $98 million and $115 million for the three months ended September 30, 2021 and 2020, respectively, and $291 million and $413 million for the nine months ended September 30, 2021 and 2020, 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 $17 million and $19 million for the three months ended September 30, 2021 and 2020, respectively, and $49 million and $44 million for the nine months ended September 30, 2021 and 2020, respectively. 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 $5,112 million at September 30, 2021 and $4,757 million at December 31, 2020. Fees related to these COLI policies were $15 million and $12 million for the three months ended September 30, 2021 and 2020, respectively, and $42 million and $37 million for the nine months ended September 30, 2021 and 2020, 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 $6 million and $4 million for the three months ended September 30, 2021 and 2020, respectively, and $13 million and $11 million for the nine months ended September 30, 2021 and 2020, respectively. 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 $590 million and $111 million as of September 30, 2021 and December 31, 2020, respectively. "Net investment income" related to these ventures includes gains of $20 million and $7 million for the three months ended September 30, 2021 and 2020, respectively, and gains of $27 million and $5 million for the nine months ended September 30, 2021 and 2020, 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 $95 million and $88 million for the three months ended September 30, 2021 and 2020, respectively, and $280 million and $254 million for the nine months ended September 30, 2021 and 2020, 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 $4 million and $3 million for the three months ended September 30, 2021 and 2020, respectively, and $11 million and $8 million for the nine months ended September 30, 2021 and 2020, respectively. 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 September 30, 2021 and December 31, 2020 were as follows: Maturity Dates Interest Rates September 30, 2021 December 31, 2020 (in thousands) U.S. dollar fixed rate notes 2022 - 2027 0.00% - 14.85 % $ 164,293 $ 111,970 Total notes receivable - affiliated(1) $ 164,293 $ 111,970 (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 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 September 30, 2021 and December 31, 2020, and is included in “Other assets”. Revenues related to these loans were $1 million for both the three months ended September 30, 2021 and 2020, and $3 million for both the nine months ended September 30, 2021 and 2020 and are included in “Other income”. Affiliated Commercial Mortgage Loan The affiliated commercial mortgage loan included in "Commercial mortgage and other loans" at September 30, 2021 was as follows: Maturity Date Interest Rate September 30, 2021 (in thousands) Affiliated Commercial Mortgage Loan 2025 4.58% $ 73,709 This affiliated commercial mortgage loan was transferred from PALAC as part of the 2021 Variable Annuities Recapture. See Note 1 for details. The Company did not have any affiliated commercial mortgage loans outstanding at December 31, 2020. The commercial mortgage loan shown above is carried at unpaid principal balance, net of unamortized deferred loan origination fees and expenses, and net of an allowance for losses. The Company reviews the performance and credit quality of the commercial mortgage on an on-going basis. Accrued interest receivable related to the loan was $0.2 million at September 30, 2021 and is included in "Accrued investment income". Revenues were $0.9 million for both the three months ended and nine months ended September 30, 2021 and are included in "Net investment 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 nine months ended September 30, 2021 and for the year ended December 31, 2020, excluding those related to the 2021 Variable Annuities Recapture effective July 1, 2021, as described in Note 1. Affiliate Date Transaction Security Type Fair Value Book Value APIC, Net of Tax Increase/(Decrease) Realized (in thousands) Prudential Insurance March 2020 Purchase Other Invested Assets $ 1,390 $ 1,390 $ 0 $ 0 Prudential Insurance April 2020 Purchase Fixed Maturities $ 61,953 $ 59,659 $ (1,812) $ 0 Prudential Insurance April 2020 Purchase Fixed Maturities $ 3,485 $ 3,320 $ (130) $ 0 GA BV LLC July 2020 Transfer Out Fixed Maturities $ 1,914 $ 1,914 $ 0 $ 0 PALAC June 2021 Purchase Equities $ 40,284 $ 40,284 $ 0 $ 0 Prudential Insurance September 2021 Purchase Fixed Maturities $ 64,374 $ 59,642 $ (3,739) $ 0 Prudential Insurance September 2021 Sale Fixed Maturities $ 37,887 $ 35,264 $ 2,073 $ 0 Hirakata LLC September 2021 Purchase Fixed Maturities $ 13,944 $ 13,944 $ 0 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Purchase Fixed Maturities $ 120,256 $ 120,256 $ 0 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Sale Fixed Maturities $ 173,590 $ 166,427 $ 0 $ 7,163 Prudential Insurance September 2021 Purchase Commercial Mortgage and Other Loans $ 45,358 $ 42,127 $ (2,553) $ 0 Prudential Insurance September 2021 Sale Commercial Mortgage and Other Loans $ 22,796 $ 21,780 $ 802 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Purchase Commercial Mortgage and Other Loans $ 29,483 $ 29,483 $ 0 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Sale Commercial Mortgage and Other Loans $ 51,005 $ 47,020 $ 0 $ 3,985 Prudential Insurance September 2021 Purchase Derivatives $ 600 $ 494 $ (84) $ 0 Prudential Insurance September 2021 Sale Derivatives $ 335 $ 175 $ 127 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Purchase Derivatives $ (1,243) $ (1,243) $ 0 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Sale Derivatives $ 2,846 $ 770 $ 0 $ 2,076 Debt Agreements The Company is authorized to borrow funds up to $2.2 billion from affiliates to meet its capital and other funding needs. The following table provides the breakout of the Company's short and long-term debt to affiliates as of September 30, 2021: Affiliate Date Amount of Notes - September 30, 2021 Interest Rate Date of Maturity (in thousands) Prudential Insurance 8/13/2021 $ 100,540 4.39 % 12/15/2023 Prudential Insurance 8/13/2021 30,162 4.39 % 12/15/2023 Prudential Insurance 8/13/2021 101,015 3.95 % 6/20/2024 Prudential Insurance 8/13/2021 40,406 3.95 % 6/20/2024 Prudential Insurance 8/13/2021 50,508 3.95 % 6/20/2024 Total Loans Payable to Affiliates $ 322,631 Effective August 2021, the affiliated long-term debt was transferred to the Company from PALAC based on the market value of $324 million. The Company recorded a premium of $24 million which will be amortized into earnings over the life of the loans. As of December 31, 2020, there was no debt outstanding. The total interest expense to the Company related to affiliated loans and cash collateral with PGF was $0.2 million and $0.1 million for the three months ended September 30, 2021 and 2020, respectively, and $0.2 million and $0.7 million for the nine months ended September 30, 2021 and 2020, respectively. Contributed Capital and Dividends In January and July 2021, the Company received capital contributions in the amount of $106 million and $3,813 million, respectively, from Prudential Insurance. See Note 1 for additional information on the July contributions. In June, September and December of 2020, the Company received a capital contribution in the amount of $325 million, $75 million and $175 million, respectively, from Prudential Insurance. In June 2021, there was a $34 million return of capital to Prudential Insurance associated with the financial guarantee related to the sale of Prudential of Taiwan. In 2020 the Company did not return capital. Through September 2021 and December 2020, the Company did not pay any dividends to Prudential Insurance. 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 | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 and December 31, 2020, the outstanding balances on these commitments were $20 million and $30 million, respectively. These amounts include unfunded commitments that are not unconditionally cancellable. For related credit exposure, there was an allowance for credit losses o f $0.0 million as of both September 30, 2021 and December 31, 2020. There was a change in allowance of $0.0 million for both the three and nine months ended September 30, 2021 and 2020. The Company also made commitments to purchase or fund investments, mostly private fixed maturities. As of September 30, 2021 and December 31, 2020, $345 million and $354 million, respectively, of these commitments were outstanding. These amounts include unfunded commitments that are not unconditionally cancellable. There were no related charges for credit losses for either the three or nine months ended September 30, 2021 or 2020. 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. Since 2001, the Company entered into an arrangement with Prudential of Taiwan as discussed in Note 6. In June 2021, PIIH completed the sale of Prudential of Taiwan. As a result of the sale, the Company has a financial guarantee to stand ready to perform in an event that both Prudential of Taiwan and the Buyer default and fail to perform their obligations to make payments to the policyholders. The Company has a liability of $34 million as of September 30, 2021, which represents the fair value of the guarantee and is amortized in revenue over a period which approximates the life of the underlying insurance in force. Since this obligation is not subject to limitations, it is not possible to determine the maximum potential amount due under this 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 its 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 September 30, 2021, 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, 2020, and should be read in conjunction with the complete descriptions provided in the Form 10-K. Behfarin v. Pruco Life This matter is now closed. Moreland, Socorro v. PICA, et al. In June 2020, a putative class action complaint entitled Socorro Moreland v. The Prudential Insurance Company of America; Pruco Life Insurance Company, was filed in the United States District Court for the Northern District of California, alleging that the Company failed to comply with California laws requiring that life insurance policies issued and delivered in California: (i) provide for a 60-day grace period pre-lapse during which a policy must stay in force; (ii) provide a 30 day written notice of pending lapse; and (iii) notify policyowners of their right to designate additional recipients for lapse notices. The complaint asserts claims for violation of California law, breach of contract, unfair competition, and bad faith violation of the implied covenant of good faith and fair dealing, and seeks unspecified damages, declaratory and injunctive relief. In August 2020, defendants filed an answer to the complaint and a motion to stay the action pending the California Supreme Court’s decision, in McHugh v. Protective Life Insurance, on the question of whether the California lapse statutes apply to policies that were in force when the statutes went into effect on January 1, 2013, or solely to policies issued after that date. The Moreland court granted defendants’ motion to stay in October 2020. Subsequently, in August 2021, the California Supreme Court in McHugh determined that the California lapse statutes apply to policies that were in force as of January 1, 2013. In October 2021, the Moreland court lifted the stay order. Other Matters Doyle C. Stone v. PFI, et al. In April 2021, defendants filed a motion to dismiss the complaint. In June 2021, plaintiff filed a notice of voluntary dismissal of the complaint, without prejudice. In August 2021, plaintiff filed a new putative class action complaint in the United States District Court for the District of New Jersey (the “Second Complaint”), asserting claims against Prudential Financial, Inc. and Pruco Life Insurance Company for violation of the New Jersey Consumer Fraud Act, breach of fiduciary duty, unjust enrichment and common law fraud. The putative class includes all Plan Participants from January 2015 until the present. In September 2021, defendants filed a motion to dismiss the Second Complaint. Regulatory Variable Products The Company has received regulatory inquiries and requests for information from state and federal regulators, including a subpoena from the U.S. Securities and Exchange Commission, concerning the appropriateness of variable product sales and replacement activity. The Company is cooperating with regulators and may become subject to additional regulatory inquiries and other actions related to this matter. 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 statements. 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 statements. |
Significant Accounting Polici_2
Significant Accounting Policies and Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles 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. |
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 DAC and related amortization; policyholders' account balances related to the fair value of embedded derivative instruments associated with the index-linked features of certain universal life products; valuation of investments including derivatives, measurement of allowance for credit losses, and the recognition of other-than-temporary impairments; 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 ("ASUs") to the FASB Accounting Standards Codification ("ASC"). The Company considers the applicability and impact of all ASUs. ASUs 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 September 30, 2021, and as of the date of this filing. ASUs not listed below were assessed and determined to be either not applicable or not material. |
Future Adoption Of New Accounting Pronouncements | ASU issued but not yet adopted as of September 30, 2021 — 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. In October 2019, the FASB issued ASU 2019-09, Financial Services - Insurance (Topic 944): Effective Date to affirm its decision to defer the effective date of ASU 2018-12 to January 1, 2022 (with early adoption permitted), representing a one year extension from the original effective date of January 1, 2021. As a result of the COVID-19 pandemic, in November 2020, the FASB issued ASU 2020-11, Financial Services-Insurance (Topic 944): Effective Date and Early Application to defer for an additional one year the effective date of ASU 2018-12 from January 1, 2022 to January 1, 2023, and to provide transition relief to facilitate the early adoption of the ASU. The transition relief would allow large calendar-year public companies that early adopt ASU 2018-12 to apply the guidance either as of January 1, 2020 or January 1, 2021 (and record transition adjustments as of January 1, 2020 or January 1, 2021, respectively) in the 2022 financial statements. Companies that do not early adopt ASU 2018-12 would apply the guidance as of January 1, 2021 (and record transition adjustments as of January 1, 2021) in the 2023 financial statements. The Company currently intends to adopt ASU 2018-12 effective January 1, 2023 using the modified retrospective transition method where permitted. ASU 2018-12 will impact, at least to some extent, the accounting and disclosure requirements for all long-duration insurance and investment contracts issued by the Company. The Company expects the standard to have a significant financial impact on the Consolidated Financial Statements and will significantly enhance disclosures. In addition to the significant impacts to the balance sheet upon adoption, the Company also expects an impact to the pattern of earnings emergence following the transition date. Outlined below are four key areas of change, although there are other less significant changes not noted below. 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 may choose to apply the amendments to contracts in force as of the beginning of the prior year (if early adoption is elected) or 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 Accumulated other comprehensive income (loss) ("AOCI") or (2) a full retrospective transition method. The Company currently intends to adopt this guidance effective January 1, 2023 using the modified retrospective transition method. The impacts of electing such method are currently 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, which will be updated each quarter with the impact recorded through OCI. An entity shall maximize the use of relevant observable information and minimize the use of unobservable information in determining the discount rate assumptions. 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 either the beginning of the prior year (if early adoption is elected) or the beginning of the earliest period presented with the impact recorded as a cumulative effect adjustment to AOCI. As noted above, the Company currently intends to adopt the guidance for the liability for future policy benefits effective January 1, 2023 using the modified retrospective transition method. Upon adoption, 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 discount rates 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 may choose to apply the amendments to contracts in force as of the beginning of the prior year (if early adoption is elected) or 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 liability for future policy benefits, as described above, it is required to also use a full retrospective transition method for DAC and other balances. The Company currently intends to adopt this guidance effective January 1, 2023 using the modified retrospective transition method. 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 ("MRB") Requires an entity to measure all market risk benefits (e.g., living benefit and death benefit guarantees associated with variable annuities) at fair value, and record MRB assets and liabilities separately on the Statements of Financial Position. Changes in fair value of market risk benefits are recorded in net income, except for the portion of the change in MRB liabilities attributable to changes in an entity’s non-performance risk ("NPR"), which is recognized in OCI. An entity shall adopt the guidance for market risk benefits using the retrospective transition method, which includes a cumulative-effect adjustment on the balance sheet as of either the beginning of prior year (if early adoption is elected) or the beginning of the earliest period presented. An entity shall maximize the use of relevant observable information and minimize the use of unobservable information in determining the balance of the market risk benefits upon adoption. The Company currently intends to adopt this guidance effective January 1, 2023 using the retrospective transition method. 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. |
Business and Basis of Present_2
Business and Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Effects of Reinsurance | The financial statement impacts of this transaction are as follows: Unaudited Interim Consolidated Statement of Financial Position Balance as of June 30, 2021 Impacts of Recapture Total as of July 1, 2021 (in millions) ASSETS Total investments(1)(2) $ 10,705 $ 8,324 $ 19,029 Cash and cash equivalents 238 414 652 Deferred policy acquisition costs 2,790 3,286 6,076 Accrued investment income 97 42 139 Reinsurance recoverables 42,956 (12,307) 30,649 Deferred sales inducements 0 388 388 Receivable from parent and affiliates 280 0 280 Income taxes receivable 274 765 1,039 Other assets 403 (84) 319 Separate account assets 150,165 0 150,165 TOTAL ASSETS $ 207,908 $ 828 $ 208,736 LIABILITIES AND EQUITY LIABILITIES Future policy benefits $ 27,399 $ 0 $ 27,399 Policyholders’ account balances 24,326 0 24,326 Cash collateral for loaned securities 3 0 3 Payables to parent and affiliates 176 (106) 70 Other liabilities 1,760 0 1,760 Separate account liabilities 150,165 0 150,165 Total Liabilities 203,829 (106) 203,723 EQUITY Common stock 3 0 3 Additional paid-in capital(3) 1,798 3,786 5,584 Retained earnings 1,843 (2,797) (954) Accumulated other comprehensive income 435 (55) 380 Total equity 4,079 934 5,013 TOTAL LIABILITIES AND EQUITY $ 207,908 $ 828 $ 208,736 Significant non-cash transactions (1) The increase in total investments includes non-cash activities of $8.3 billion related to the recapture transaction. (2) The Company incurred a loss related to ceding commissions of $2 billion. (3) The increase in Additional paid-in capital includes non-cash activities of $3.4 billion in invested assets related to capital contributions from Prudential Insurance. Unaudited Interim Consolidated Statement of Operations and Comprehensive Income (Loss) For the three and nine months ended September 30, 2021 Impacts of Recapture (in millions) REVENUES Other income (loss) $ (1) Realized investment gains (losses), net (4,953) TOTAL REVENUES (4,954) BENEFITS AND EXPENSES Policyholders’ benefits 257 Interest credited to policyholders’ account balances (399) General, administrative and other expenses (1,272) TOTAL BENEFITS AND EXPENSES (1,414) INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES (3,540) Income tax expense (benefit) (743) NET INCOME (LOSS) $ (2,797) Affiliated Asset Transfers Affiliate Period Transaction Security Type Fair Value Book Value APIC/ Retained Earnings Increase/(Decrease) Realized Investment Gain/(Loss), Net Derivative Gain/(Loss) (in millions) PALAC July 1, 2021 Purchase Derivatives, Fixed Maturities, Equity Securities, Commercial Mortgages and JV/LP Investments $ 4,908 $ 4,908 $ 0 $ 0 $ 0 Prudential Insurance July 1, 2021 Contributed Capital Fixed Maturities $ 3,420 $ 3,420 $ 3,420 $ 0 $ 0 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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: September 30, 2021 Amortized Gross Gross Allowance for Credit Losses Fair (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 358,184 $ 22,847 $ 101 $ 0 $ 380,930 Obligations of U.S. states and their political subdivisions 481,474 48,044 128 0 529,390 Foreign government bonds 275,756 25,679 3,125 0 298,310 U.S. public corporate securities 4,086,880 358,688 25,239 0 4,420,329 U.S. private corporate securities 1,445,143 65,984 8,522 1,558 1,501,047 Foreign public corporate securities 767,349 33,121 6,134 0 794,336 Foreign private corporate securities 1,909,870 63,187 30,695 679 1,941,683 Asset-backed securities(1) 338,088 974 581 0 338,481 Commercial mortgage-backed securities 453,399 25,153 1,992 0 476,560 Residential mortgage-backed securities(2) 19,253 1,836 0 0 21,089 Total fixed maturities, available-for-sale $ 10,135,396 $ 645,513 $ 76,517 $ 2,237 $ 10,702,155 (1) Includes credit-tranched securities collateralized by loan obligations, education loans, auto loans and other asset types. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. December 31, 2020 Amortized Gross Gross Allowance for Credit Losses Fair (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 74,946 $ 2,931 $ 22 $ 0 $ 77,855 Obligations of U.S. states and their political subdivisions 460,003 57,948 0 0 517,951 Foreign government bonds 206,633 44,254 32 0 250,855 U.S. public corporate securities 2,473,440 456,581 587 0 2,929,434 U.S. private corporate securities 919,316 95,793 2,198 855 1,012,056 Foreign public corporate securities 278,717 42,899 886 0 320,730 Foreign private corporate securities 977,539 123,006 7,131 1,484 1,091,930 Asset-backed securities(1) 236,909 1,115 386 0 237,638 Commercial mortgage-backed securities 480,412 40,660 125 0 520,947 Residential mortgage-backed securities(2) 49,456 3,779 0 0 53,235 Total fixed maturities, available-for-sale $ 6,157,371 $ 868,966 $ 11,367 $ 2,339 $ 7,012,631 (1) Includes credit-tranched securities collateralized by loan obligations, credit cards, auto loans, education loans and sub-prime mortgages. (2) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. |
Duration Of Gross Unrealized Losses On Fixed Maturity Securities | The following tables set forth the fair value and gross unrealized losses on available-for-sale fixed maturity securities without an allowance for credit 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: September 30, 2021 Less Than Twelve Months Twelve Months or More Total Fair Value Gross Fair Value Gross Fair Value Gross (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 0 $ 2,141 $ 101 $ 2,141 $ 101 Obligations of U.S. states and their political subdivisions 17,997 128 0 0 17,997 128 Foreign government bonds 86,349 3,123 81 2 86,430 3,125 U.S. public corporate securities 1,497,660 24,875 7,527 364 1,505,187 25,239 U.S. private corporate securities 483,604 5,782 16,458 2,740 500,062 8,522 Foreign public corporate securities 406,354 4,734 7,510 1,400 413,864 6,134 Foreign private corporate securities 953,235 23,099 62,258 7,116 1,015,493 30,215 Asset-backed securities 110,654 581 0 0 110,654 581 Commercial mortgage-backed securities 73,101 1,285 16,846 707 89,947 1,992 Residential mortgage-backed securities 0 0 0 0 0 0 Total fixed maturities, available-for-sale $ 3,628,954 $ 63,607 $ 112,821 $ 12,430 $ 3,741,775 $ 76,037 December 31, 2020 Less Than Twelve Months Twelve Months or More Total Fair Value Gross Fair Value Gross Fair Value Gross (in thousands) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of $ 2,255 $ 22 $ 0 $ 0 $ 2,255 $ 22 Foreign government bonds 2,270 32 0 0 2,270 32 U.S. public corporate securities 33,295 341 2,754 246 36,049 587 U.S. private corporate securities 33,806 771 6,659 1,427 40,465 2,198 Foreign public corporate securities 6,432 97 6,464 789 12,896 886 Foreign private corporate securities 2,931 131 85,340 6,657 88,271 6,788 Asset-backed securities 51,914 183 70,503 203 122,417 386 Commercial mortgage-backed securities 17,443 125 0 0 17,443 125 Residential mortgage-backed securities 0 0 0 0 0 0 Total fixed maturities, available-for-sale $ 150,346 $ 1,702 $ 171,720 $ 9,322 $ 322,066 $ 11,024 |
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: September 30, 2021 Amortized Cost Fair Value (in thousands) Fixed maturities, available-for-sale: Due in one year or less $ 138,773 $ 138,226 Due after one year through five years 1,825,519 1,858,235 Due after five years through ten years 2,355,010 2,396,158 Due after ten years 5,005,354 5,473,406 Asset-backed securities 338,088 338,481 Commercial mortgage-backed securities 453,399 476,560 Residential mortgage-backed securities 19,253 21,089 Total fixed maturities, available-for-sale $ 10,135,396 $ 10,702,155 |
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 write-downs and the allowance for credit losses of fixed maturities, for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 268,215 $ 55,657 $ 585,205 $ 68,598 Proceeds from maturities/prepayments 180,569 51,892 351,027 189,646 Gross investment gains from sales and maturities 7,853 1,245 16,361 1,837 Gross investment losses from sales and maturities (2,991) (82) (14,647) (1,818) Write-downs recognized in earnings(2) (1) (3,290) (3) (4,312) (Addition to) release of allowance for credit losses (1,678) 2,039 103 (2,533) (1) Includes $3.5 million of non-cash related proceeds due to the timing of trade settlements for both the nine months ended September 30, 2021 and 2020. (2) Amounts represent write-downs on securities actively marketed for sale and write-downs on securities approaching maturity related to foreign exchange movements. |
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 tables set forth the activity in the allowance for credit losses for fixed maturity securities, as of the dates indicated: Three Months Ended September 30, 2021 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of period $ 0 $ 0 $ 558 $ 0 $ 0 $ 0 $ 558 Additions to allowance for credit losses not previously recorded 0 0 1,558 0 0 0 1,558 Reductions for securities sold during the period 0 0 (3) 0 0 0 (3) Addition (reductions) on securities with previous allowance 0 0 124 0 0 0 124 Balance, end of period $ 0 $ 0 $ 2,237 $ 0 $ 0 $ 0 $ 2,237 Three Months Ended September 30, 2020 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of period $ 0 $ 0 $ 4,572 $ 0 $ 0 $ 0 $ 4,572 Additions to allowance for credit losses not previously recorded 0 0 781 0 0 0 781 Reductions for securities sold during the period 0 0 (2,701) 0 0 0 (2,701) Addition (reductions) on securities with previous allowance 0 0 (119) 0 0 0 (119) Balance, end of period $ 0 $ 0 $ 2,533 $ 0 $ 0 $ 0 $ 2,533 Nine Months Ended September 30, 2021 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of period $ 0 $ 0 $ 2,339 $ 0 $ 0 $ 0 $ 2,339 Additions to allowance for credit losses not previously recorded 0 0 1,558 0 0 0 1,558 Reductions for securities sold during the period 0 0 (28) 0 0 0 (28) Addition (reductions) on securities with previous allowance 0 0 (1,632) 0 0 0 (1,632) Balance, end of period $ 0 $ 0 $ 2,237 $ 0 $ 0 $ 0 $ 2,237 Nine Months Ended September 30, 2020 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in thousands) Fixed maturities, available-for-sale: Balance, beginning of period $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Additions to allowance for credit losses not previously recorded 0 0 5,672 0 0 0 5,672 Reductions for securities sold during the period 0 0 (2,710) 0 0 0 (2,710) Addition (reductions) on securities with previous allowance 0 0 (429) 0 0 0 (429) Write-downs charged against the allowance 0 0 0 0 0 0 0 Balance, end of period $ 0 $ 0 $ 2,533 $ 0 $ 0 $ 0 $ 2,533 |
Commercial Mortgage and Other Loans | The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: September 30, 2021 December 31, 2020 Amount % of Amount % of Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 546,483 26.7 % $ 364,549 28.2 % Hospitality 37,345 1.8 34,069 2.6 Industrial 693,418 33.9 399,017 30.9 Office 320,973 15.6 195,443 15.1 Other 195,986 9.6 138,477 10.7 Retail 192,186 9.4 142,266 11.0 Total commercial mortgage loans 1,986,391 97.0 1,273,821 98.5 Agricultural property loans 60,517 3.0 19,577 1.5 Total commercial mortgage and agricultural property loans 2,046,908 100.0 % 1,293,398 100.0 % Allowance for credit losses (4,254) (4,552) Total net commercial mortgage and agricultural property loans $ 2,042,654 $ 1,288,846 |
Allowance for Credit Losses | The following tables set forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated: Three Months Ended September 30, 2021 2020 Commercial Mortgage Loans Agricultural Property Loans Total Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance, beginning of period $ 3,380 $ 24 $ 3,404 $ 4,549 $ 10 $ 4,559 Addition to (release of) allowance for expected losses 850 0 850 84 (2) 82 Allowance, end of period $ 4,230 $ 24 $ 4,254 $ 4,633 $ 8 $ 4,641 Nine Months Ended September 30, 2021 2020 Commercial Mortgage Loans Agricultural Property Loans Total Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance, beginning of period $ 4,546 $ 6 $ 4,552 $ 1,743 $ 25 $ 1,768 Cumulative effect of adoption of ASU 2016-13 0 0 0 2,495 (8) 2,487 Addition to (release of) allowance for expected losses (316) 18 (298) 395 (9) 386 Allowance, end of period $ 4,230 $ 24 $ 4,254 $ 4,633 $ 8 $ 4,641 |
Financing Receivable Credit Quality Indicators | The following tables set forth key credit quality indicators based upon the recorded investment gross of allowance for credit losses, as of the dates indicated: September 30, 2021 Amortized Cost by Origination Year 2021 2020 2019 2018 2017 Prior Total (in thousands) Commercial mortgage loans Loan-to-Value Ratio: 0%-59.99% $ 47,163 $ 16,342 $ 87,397 $ 65,975 $ 136,869 $ 526,833 $ 880,579 60%-69.99% 76,864 194,700 121,550 99,339 77,051 146,574 716,078 70%-79.99% 64,690 67,271 64,170 22,384 108,233 60,845 387,593 80% or greater 0 0 0 0 963 1,178 2,141 Total $ 188,717 $ 278,313 $ 273,117 $ 187,698 $ 323,116 $ 735,430 $ 1,986,391 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 171,349 $ 186,140 $ 245,018 $ 178,068 $ 307,561 $ 667,944 $ 1,756,080 1.0 - 1.2x 17,368 88,712 12,174 0 7,155 20,573 145,982 Less than 1.0x 0 3,461 15,925 9,630 8,400 46,913 84,329 Total $ 188,717 $ 278,313 $ 273,117 $ 187,698 $ 323,116 $ 735,430 $ 1,986,391 Agricultural property loans Loan-to-Value Ratio: 0%-59.99% $ 24,696 $ 0 $ 2,050 $ 5,096 $ 8,571 $ 20,104 $ 60,517 60%-69.99% 0 0 0 0 0 0 0 70%-79.99% 0 0 0 0 0 0 0 80% or greater 0 0 0 0 0 0 0 Total $ 24,696 $ 0 $ 2,050 $ 5,096 $ 8,571 $ 20,104 $ 60,517 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 24,696 $ 0 $ 2,050 $ 5,096 $ 8,571 $ 19,289 $ 59,702 1.0 - 1.2x 0 0 0 0 0 0 0 Less than 1.0x 0 0 0 0 0 815 815 Total $ 24,696 $ 0 $ 2,050 $ 5,096 $ 8,571 $ 20,104 $ 60,517 December 31, 2020 Amortized Cost by Origination Year 2020 2019 2018 2017 2016 Prior Total (in thousands) Commercial mortgage loans Loan-to-Value Ratio: 0%-59.99% $ 10,645 $ 47,284 $ 33,443 $ 92,410 $ 162,030 $ 251,903 $ 597,715 60%-69.99% 69,819 95,331 141,260 52,710 80,875 43,823 483,818 70%-79.99% 63,783 36,099 22,431 32,476 21,178 15,342 191,309 80% or greater 0 0 0 979 0 0 979 Total $ 144,247 $ 178,714 $ 197,134 $ 178,575 $ 264,083 $ 311,068 $ 1,273,821 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 128,839 $ 159,476 $ 177,098 $ 171,255 $ 238,010 $ 290,741 $ 1,165,419 1.0 - 1.2x 15,408 10,334 7,134 7,320 26,073 16,418 82,687 Less than 1.0x 0 8,904 12,902 0 0 3,909 25,715 Total $ 144,247 $ 178,714 $ 197,134 $ 178,575 $ 264,083 $ 311,068 $ 1,273,821 Agricultural property loans Loan-to-Value Ratio: 0%-59.99% $ 0 $ 0 $ 0 $ 6,486 $ 0 $ 13,091 $ 19,577 60%-69.99% 0 0 0 0 0 0 0 70%-79.99% 0 0 0 0 0 0 0 80% or greater 0 0 0 0 0 0 0 Total $ 0 $ 0 $ 0 $ 6,486 $ 0 $ 13,091 $ 19,577 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 0 $ 0 $ 0 $ 6,486 $ 0 $ 12,276 $ 18,762 1.0 - 1.2x 0 0 0 0 0 0 0 Less than 1.0x 0 0 0 0 0 815 815 Total $ 0 $ 0 $ 0 $ 6,486 $ 0 $ 13,091 $ 19,577 |
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: September 30, 2021 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 $ 1,986,391 $ 0 $ 0 $ 0 $ 1,986,391 $ 0 Agricultural property loans 60,517 0 0 0 60,517 0 Total $ 2,046,908 $ 0 $ 0 $ 0 $ 2,046,908 $ 0 (1) As of September 30, 2021, 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, 2020. December 31, 2020 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 $ 1,273,821 $ 0 $ 0 $ 0 $ 1,273,821 $ 0 Agricultural property loans 19,577 0 0 0 19,577 0 Total $ 1,293,398 $ 0 $ 0 $ 0 $ 1,293,398 $ 0 (1) As of December 31, 2020, 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, 2020. |
Other Invested Assets | The following table sets forth the composition of “Other invested assets,” as of the dates indicated: September 30, 2021 December 31, 2020 (in thousands) Company’s investment in separate accounts $ 50,150 $ 44,018 LPs/LLCs: Equity method: Private equity 263,763 241,493 Hedge funds 557,844 77,311 Real estate-related 78,376 63,194 Subtotal equity method 899,983 381,998 Fair value: Private equity 66,936 65,436 Hedge funds 468 499 Real estate-related 10,144 10,857 Subtotal fair value 77,548 76,792 Total LPs/LLCs 977,531 458,790 Derivative instruments 224,841 18,147 Total other invested assets $ 1,252,522 $ 520,955 |
Accrued Investment Income | The following table sets forth the composition of “Accrued investment income,” as of the dates indicated: September 30, 2021 December 31, 2020 (in thousands) Fixed maturities $ 97,915 $ 54,565 Equity securities 163 1 Commercial mortgage and other loans 5,196 3,610 Policy loans 35,423 35,374 Other(1) 243 0 Short-term investments and cash equivalents 415 63 Total accrued investment income $ 139,355 $ 93,613 |
Net Investment Income | The following table sets forth “Net investment income” by investment type, for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) Fixed maturities, available-for-sale $ 85,160 $ 54,494 $ 208,748 $ 163,957 Fixed maturities, trading 18,458 471 19,533 1,264 Equity securities 163 102 368 307 Commercial mortgage and other loans 17,098 11,921 43,846 38,019 Policy loans 17,748 17,716 52,097 52,642 Other invested assets 47,685 13,890 66,493 12,146 Short-term investments and cash equivalents 303 376 463 2,988 Gross investment income 186,615 98,970 391,548 271,323 Less: investment expenses (7,505) (4,978) (18,271) (14,288) Net investment income $ 179,110 $ 93,992 $ 373,277 $ 257,035 |
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 September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) Fixed maturities(1) $ 3,183 $ (88) $ 1,814 $ (6,826) Commercial mortgage and other loans 2,538 (82) 3,686 (314) Other invested assets (6,452) 14 (5,543) (296) Derivatives(2) (5,007,888) (1,395) (5,054,459) 15,709 Short-term investments and cash equivalents 7 4 (4) (156) Realized investment gains (losses), net $ (5,008,612) $ (1,547) $ (5,054,506) $ 8,117 (1) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading. (2) Includes the impact of the 2021 Variable Annuities Recapture. See Note 1 for additional information. |
Net Unrealized Gains and (Losses) on Investments | The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated: September 30, 2021 December 31, 2020 (in thousands) Fixed maturity securities, available-for-sale with an allowance $ 975 $ 0 Fixed maturity securities, available-for-sale without an allowance 568,021 857,599 Derivatives designated as cash flow hedges(1) 32,216 (8,112) Affiliated notes, available-for-sale 1,413 4,024 Other investments(2) 558 (4,162) Net unrealized gains (losses) on investments $ 603,183 $ 849,349 (1) For more information on cash flow hedges, see Note 4. (2) Includes net unrealized gains (losses) on certain joint ventures that are strategic in nature and are included in "other assets". |
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: September 30, 2021 December 31, 2020 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) Foreign public corporate securities $ 0 $ 0 $ 0 $ 2,725 $ 0 $ 2,725 Total cash collateral for loaned securities(1) $ 0 $ 0 $ 0 $ 2,725 $ 0 $ 2,725 (1) The Company did not have any agreements with remaining contractual maturities greater than thirty days, as of the dates indicated. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 and cash collateral. September 30, 2021 December 31, 2020 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 Interest Rate Swaps $ 3,383 $ 73 $ 0 $ 3,486 $ 203 $ 0 Foreign Currency Swaps 839,726 36,260 (10,309) 861,074 27,336 (49,316) Total Derivatives Designated as Hedge Accounting Instruments $ 843,109 $ 36,333 $ (10,309) $ 864,560 $ 27,539 $ (49,316) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 132,732,910 $ 5,889,729 $ (10,791,716) $ 663,050 $ 57,024 $ (11,117) Interest Rate Options 9,898,000 186,499 (169,030) 0 0 0 Interest Rate Futures 3,660,200 3,384 (19) 57,700 198 0 Interest Rate Forwards 178,122 130 (3,846) 0 0 0 Foreign Currency Foreign Currency Forwards 84,434 1,392 (33) 55,292 5 (1,322) Credit Credit Default Swaps 100,000 9,341 0 2,313 0 (18) Currency/Interest Rate Foreign Currency Swaps 1,320,211 45,930 (20,820) 143,011 6,584 (7,286) Equity Total Return Swaps 14,491,104 297,046 (25,762) 0 0 0 Equity Options 36,153,823 421,403 (702,796) 3,244,900 306,196 (196,767) Equity Futures 2,864,672 87 (30,460) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments $ 201,483,476 $ 6,854,941 $ (11,744,482) $ 4,166,266 $ 370,007 $ (216,510) Total Derivatives(1)(2) $ 202,326,585 $ 6,891,274 $ (11,754,791) $ 5,030,826 $ 397,546 $ (265,826) (1) Excludes embedded derivatives and associated reinsurance recoverables which contain multiple underlying risks. The fair value of these embedded derivatives was a net liability of $9,208 million and $13,228 million as of September 30, 2021 and December 31, 2020, respectively included in "Future policy benefits" and $1,154 million and $1,155 million as of September 30, 2021 and December 31, 2020, respectively included in "Policyholders' account balances". The fair value of the related reinsurance, included in "Reinsurance recoverables" or "Other liabilities" was an asset of $940 million and $13,240 million as of September 30, 2021 and December 31, 2020, respectively. (2) Recorded in “Other invested assets” and “Payables to parent and affiliates” 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. September 30, 2021 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 6,891,274 $ (6,666,433) $ 224,841 $ 0 $ 224,841 Securities purchased under agreements to resell 50,000 0 50,000 (50,000) 0 Total Assets $ 6,941,274 $ (6,666,433) $ 274,841 $ (50,000) $ 224,841 Offsetting of Financial Liabilities: Derivatives $ 11,754,791 $ (11,724,418) $ 30,373 $ (30,373) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 11,754,791 $ (11,724,418) $ 30,373 $ (30,373) $ 0 December 31, 2020 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 397,546 $ (379,399) $ 18,147 $ (14,572) $ 3,575 Securities purchased under agreements to resell 0 0 0 0 0 Total Assets $ 397,546 $ (379,399) $ 18,147 $ (14,572) $ 3,575 Offsetting of Financial Liabilities: Derivatives $ 265,826 $ (265,826) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 265,826 $ (265,826) $ 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. September 30, 2021 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 6,891,274 $ (6,666,433) $ 224,841 $ 0 $ 224,841 Securities purchased under agreements to resell 50,000 0 50,000 (50,000) 0 Total Assets $ 6,941,274 $ (6,666,433) $ 274,841 $ (50,000) $ 224,841 Offsetting of Financial Liabilities: Derivatives $ 11,754,791 $ (11,724,418) $ 30,373 $ (30,373) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 11,754,791 $ (11,724,418) $ 30,373 $ (30,373) $ 0 December 31, 2020 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 397,546 $ (379,399) $ 18,147 $ (14,572) $ 3,575 Securities purchased under agreements to resell 0 0 0 0 0 Total Assets $ 397,546 $ (379,399) $ 18,147 $ (14,572) $ 3,575 Offsetting of Financial Liabilities: Derivatives $ 265,826 $ (265,826) $ 0 $ 0 $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 265,826 $ (265,826) $ 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 September 30, 2021 Realized Net Other AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ 0 $ 12 $ 0 $ (20) Currency/Interest Rate 928 5,211 10,053 19,988 Total cash flow hedges 928 5,223 10,053 19,968 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (283,767) 0 0 0 Currency 1,428 0 0 0 Currency/Interest Rate 35,346 0 42 0 Credit (190) 0 0 0 Equity (104,815) 0 0 0 Embedded Derivatives(2) (4,656,818) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (5,008,816) 0 42 0 Total $ (5,007,888) $ 5,223 $ 10,095 $ 19,968 Nine Months Ended September 30, 2021 Realized Net Other AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ 2 $ 35 $ 0 $ (119) Currency/Interest Rate 834 10,002 11,174 40,447 Total cash flow hedges 836 10,037 11,174 40,328 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (304,420) 0 0 0 Currency 2,261 0 0 0 Currency/Interest Rate 38,437 0 28 0 Credit (202) 0 0 0 Equity (69,558) 0 0 0 Embedded Derivatives(2) (4,721,813) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (5,055,295) 0 28 0 Total $ (5,054,459) $ 10,037 $ 11,202 $ 40,328 Three Months Ended September 30, 2020 Realized Net Other AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ 0 $ 11 $ 0 $ (15) Currency/Interest Rate 70 2,699 (5,994) (39,642) Total cash flow hedges 70 2,710 (5,994) (39,657) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (4,439) 0 0 0 Currency (1,557) 0 0 0 Currency/Interest Rate (7,669) 0 (67) 0 Credit (4) 0 0 0 Equity 30,813 0 0 0 Embedded Derivatives (18,609) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (1,465) 0 (67) 0 Total $ (1,395) $ 2,710 $ (6,061) $ (39,657) Nine Months Ended September 30, 2020 Realized Net Other AOCI(1) (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ (44) $ 9 $ 0 $ 313 Currency/Interest Rate 841 8,073 (853) 27,772 Total cash flow hedges 797 8,082 (853) 28,085 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 25,270 0 0 0 Currency (531) 0 0 0 Currency/Interest Rate 7,004 0 (19) 0 Credit (229) 0 0 0 Equity (1,305) 0 0 0 Embedded Derivatives (15,297) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments 14,912 0 (19) 0 Total $ 15,709 $ 8,082 $ (872) $ 28,085 (1) Net change in AOCI. (2) Includes the impact from 2021 Variable Annuities Recapture, see Note 1 for further details. |
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, 2020 $ (8,112) Amount recorded in AOCI Interest Rate (82) Currency/Interest Rate 62,457 Total amount recorded in AOCI 62,375 Amount reclassified from AOCI to income Interest Rate (37) Currency/Interest Rate (22,010) Total amount reclassified from AOCI to income (22,047) Balance, September 30, 2021 $ 32,216 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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. September 30, 2021 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 $ 325,930 $ 55,000 $ $ 380,930 Obligations of U.S. states and their political subdivisions 0 529,390 0 529,390 Foreign government bonds 0 298,158 152 298,310 U.S. corporate public securities 0 4,420,329 0 4,420,329 U.S. corporate private securities 0 1,422,947 78,100 1,501,047 Foreign corporate public securities 0 785,394 8,942 794,336 Foreign corporate private securities 0 1,746,088 195,595 1,941,683 Asset-backed securities(2) 0 305,153 33,328 338,481 Commercial mortgage-backed securities 0 476,560 0 476,560 Residential mortgage-backed securities 0 21,089 0 21,089 Subtotal 0 10,331,038 371,117 10,702,155 Fixed maturities, trading 0 3,751,472 0 3,751,472 Equity securities 135 40,687 12,356 53,178 Short-term investments 39,997 42,553 1,690 84,240 Cash equivalents 528,975 204,000 1,230 734,205 Other invested assets(3) 143,289 6,747,985 0 (6,666,433) 224,841 Reinsurance recoverables 0 0 939,489 939,489 Receivables from parent and affiliates 0 164,293 0 164,293 Subtotal excluding separate account assets 712,396 21,282,028 1,325,882 (6,666,433) 16,653,873 Separate account assets(4)(5) 52,942 141,198,669 0 141,251,611 Total assets $ 765,338 $ 162,480,697 $ 1,325,882 $ (6,666,433) $ 157,905,484 Future policy benefits(6) $ 0 $ 0 $ 9,208,188 $ $ 9,208,188 Policyholders' account balances 0 0 1,154,423 1,154,423 Payables to parent and affiliates 0 11,721,872 0 (11,721,872) 0 Other liabilities 32,919 0 0 (2,546) 30,373 Total liabilities $ 32,919 $ 11,721,872 $ 10,362,611 $ (11,724,418) $ 10,392,984 December 31, 2020 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 $ 22,855 $ 55,000 $ $ 77,855 Obligations of U.S. states and their political subdivisions 0 517,951 0 517,951 Foreign government bonds 0 250,692 163 250,855 U.S. corporate public securities 0 2,929,431 3 2,929,434 U.S. corporate private securities 0 977,423 34,633 1,012,056 Foreign corporate public securities 0 311,407 9,323 320,730 Foreign corporate private securities 0 961,113 130,817 1,091,930 Asset-backed securities(2) 0 235,573 2,065 237,638 Commercial mortgage-backed securities 0 520,947 0 520,947 Residential mortgage-backed securities 0 53,235 0 53,235 Subtotal 0 6,780,627 232,004 7,012,631 Fixed maturities, trading 0 81,727 755 82,482 Equity securities 100,268 300 7,889 108,457 Short-term investments 49,997 0 0 49,997 Cash equivalents 49,996 347,330 0 397,326 Other invested assets(3) 198 397,348 0 (379,399) 18,147 Reinsurance recoverables 0 0 13,239,539 13,239,539 Receivables from parent and affiliates 0 111,970 0 111,970 Subtotal excluding separate account assets 200,459 7,719,302 13,480,187 (379,399) 21,020,549 Separate account assets(4)(5) 0 140,583,009 0 140,583,009 Total assets $ 200,459 $ 148,302,311 $ 13,480,187 $ (379,399) $ 161,603,558 Future policy benefits(6) $ 0 $ 0 $ 13,227,814 $ $ 13,227,814 Policyholders' account balances 0 0 1,155,274 1,155,274 Payables to parent and affiliates 0 265,826 0 (265,826) 0 Other liabilities 0 0 0 0 0 Total liabilities $ 0 $ 265,826 $ 14,383,088 $ (265,826) $ 14,383,088 (1) “Netting” amounts represent cash collateral of $(5,058.0) million and $113.6 million as of September 30, 2021 and December 31, 2020, respectively. (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 September 30, 2021 and December 31, 2020, the fair values of such investments were $78 million and $77 million, respectively. (4) 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. (5) 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). At September 30, 2021 and December 31, 2020, the fair value of such investments was $5,574 million and $5,157 million, respectively. (6) As of September 30, 2021, the net embedded derivative liability position of $9,208 million includes $616 million of embedded derivatives in an asset position and $9,824 million of embedded derivatives in a liability position. As of December 31, 2020, the net embedded derivative liability position of $13,228 million includes $483 million of embedded derivatives in an asset position and $13,711 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. September 30, 2021 Fair Value Valuation Unobservable Inputs Minimum Maximum Weighted Average Impact of (in thousands) Assets: Corporate securities(2) $ 217,167 Discounted cash flow Discount rate 1.44 % 12.89 % 3.63 % Decrease Market Comparables EBITDA multiples(3) 3.8 X 10.3 X 7.6 X Increase Liquidation Liquidation value 62.58 % 62.58 % 62.58 % Increase Reinsurance recoverables $ 939,489 Fair values are determined using the same unobservable inputs as future policy benefits. Liabilities: Future policy benefits(4) $ 9,208,188 Discounted cash flow Lapse rate(6) 1 % 20 % Decrease Spread over LIBOR(7) 0.05 % 1.05 % Decrease Utilization rate(8) 39 % 96 % Increase Withdrawal rate See table footnote (9) below. Mortality rate(10) 0 % 15 % Decrease Equity volatility curve 17 % 26 % Increase Policyholders' account balances(5) $ 1,154,423 Discounted cash flow Lapse rate(6) 1 % 6 % Decrease Spread over LIBOR(7) 0.05 % 1.07 % Decrease Mortality rate(10) 0 % 23 % Decrease Equity volatility curve 13 % 30 % Increase December 31, 2020 Fair Value Valuation Unobservable Minimum Maximum Weighted Impact of (in thousands) Assets: Corporate securities(2) $ 151,554 Discounted cash flow Discount rate 0.99 % 11.38 % 3.44 % Decrease Reinsurance recoverables $ 13,239,539 Fair values are determined using the same unobservable inputs as future policy benefits. Liabilities: Future policy benefits(4) $ 13,227,814 Discounted cash flow Lapse rate(6) 1 % 20 % Decrease Spread over LIBOR(7) 0.06 % 1.17 % Decrease Utilization rate(8) 39 % 96 % Increase Withdrawal rate See table footnote (9) below. Mortality rate(10) 0 % 15 % Decrease Equity volatility curve 18 % 26 % Increase Policyholders' account balances(5) $ 1,155,274 Discounted cash flow Lapse rate(6) 1 % 6 % Decrease Spread over LIBOR(7) 0.06 % 1.17 % Decrease Mortality rate(10) 0 % 24 % Decrease Equity volatility curve 15 % 30 % 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 September 30, 2021 and December 31, 2020, the minimum withdrawal rate assumption is 76% 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 may 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. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate. Three Months Ended September 30, 2021 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 $ 55,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 55,000 $ 0 Foreign government 156 (4) 0 0 0 0 0 0 0 152 (5) Corporate securities(4) 170,830 (6,783) 3,173 0 0 (7,907) 119,218 4,106 0 282,637 (6,710) Structured securities(5) 27,179 (452) 12,500 0 0 (308) 19,859 0 (25,450) 33,328 (449) Other assets: Fixed maturities, trading 801 0 0 0 0 0 0 0 (801) 0 0 Equity securities 8,005 477 0 0 0 0 3,874 0 0 12,356 477 Other invested assets 0 0 0 0 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 1,690 0 0 1,690 0 Cash equivalents 0 0 0 0 0 0 1,230 0 0 1,230 0 Reinsurance recoverables 9,275,523 (8,372,926) 36,892 0 0 0 0 0 0 939,489 (32,262) Receivables from parent and affiliates 0 0 0 0 0 0 0 0 0 0 0 Liabilities: Future policy benefits (9,263,516) 331,967 0 0 (276,639) 0 0 0 0 (9,208,188) 218,025 Policyholders' account balances(6) (1,156,610) 5,389 0 0 (3,202) 0 0 0 0 (1,154,423) 21,559 Three Months Ended September 30, 2021 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) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ (1,656) $ 0 $ (5,768) $ 185 $ (1,678) $ 0 $ (5,486) Other assets: Fixed maturities, trading 0 0 0 0 0 0 0 Equity securities 0 477 0 0 0 477 0 Other invested assets 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 Reinsurance recoverables (8,372,926) 0 0 0 (32,262) 0 0 Receivables from parent and affiliates 0 0 0 0 0 0 0 Liabilities: Future policy benefits 331,967 0 0 0 218,025 0 0 Policyholders' account balances 5,389 0 0 0 21,559 0 0 Nine Months Ended September 30, 2021 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 $ 55,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 55,000 $ 0 Foreign government 163 (11) 0 0 0 0 0 0 0 152 (13) Corporate securities(4) 174,776 (13,815) 5,515 0 0 (12,280) 119,218 9,223 0 282,637 (13,811) Structured securities(5) 2,065 (465) 38,450 0 0 (1,131) 19,859 0 (25,450) 33,328 (462) Other assets: Fixed maturities, trading 755 46 0 0 0 0 0 0 (801) 0 46 Equity securities 7,889 593 0 0 0 0 3,874 0 0 12,356 593 Other invested assets 0 0 0 0 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 1,690 0 0 1,690 0 Cash equivalents 0 0 0 0 0 0 1,230 0 0 1,230 0 Reinsurance recoverables 13,239,539 (12,892,808) 592,758 0 0 0 0 0 0 939,489 (524,521) Receivables from parent and affiliates 0 0 0 0 0 0 0 0 0 0 0 Liabilities: Future policy benefits (13,227,814) 4,848,168 0 0 (828,542) 0 0 0 0 (9,208,188) 4,365,984 Policyholders' account balances(6) (1,155,274) (31,278) 0 0 0 32,129 0 0 0 (1,154,423) 21,234 Nine Months Ended September 30, 2021 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) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ 152 $ 0 $ (14,678) $ 235 $ 121 $ 0 $ (14,407) Other assets: Fixed maturities, trading 0 46 0 0 0 46 0 Equity securities 0 593 0 0 0 593 0 Other invested assets 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 Reinsurance recoverables (12,892,808) 0 0 0 (524,521) 0 0 Receivables from parent and affiliates 0 0 0 0 0 0 0 Liabilities: Future policy benefits 4,848,168 0 0 0 4,365,984 0 0 Policyholders' account balances (31,278) 0 0 0 21,234 0 0 Three Months Ended September 30, 2020 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 $ 44,792 $ 0 $ 3,667 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 48,459 $ 0 Foreign government 161 3 0 0 0 0 0 0 0 164 2 Corporate securities(4) 156,972 3,941 2,436 0 0 (538) (1,914) 0 0 160,897 3,920 Structured securities(5) 1,507 (3) 1,299 0 0 (262) 0 0 0 2,541 (4) Other assets: Fixed maturities, trading 644 54 0 0 0 0 0 0 0 698 55 Equity securities 9,150 1,762 0 0 0 0 0 0 0 10,912 1,762 Other invested assets 0 0 0 0 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 0 0 0 Reinsurance recoverables 19,028,138 (2,631,208) 278,413 0 0 0 0 0 0 16,675,343 (2,473,607) Receivables from parent and affiliates 0 0 0 0 0 0 0 0 0 0 0 Liabilities: Future policy benefits (19,014,066) 2,629,271 0 0 (276,460) 0 0 0 0 (16,661,255) 2,475,638 Policyholders' account balances(6) (1,045,483) (2,053) 0 0 (29,368) 0 0 0 0 (1,076,904) 11,350 Three Months Ended September 30, 2020 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) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ (1,084) $ 0 $ 5,003 $ 22 $ (1,086) $ 0 $ 5,004 Other assets: Fixed maturities, trading 0 54 0 0 0 55 0 Equity securities 0 1,762 0 0 0 1,762 0 Other invested assets 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 Reinsurance recoverables (2,631,208) 0 0 0 (2,473,607) 0 0 Receivables from parent and affiliates 0 0 0 0 0 0 0 Liabilities: Future policy benefits 2,629,271 0 0 0 2,475,638 0 0 Policyholders' account balances (2,053) 0 0 0 11,350 0 0 Nine Months Ended September 30, 2020 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 $ 38,671 $ 0 $ 9,788 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 48,459 $ 0 Foreign government 163 1 0 0 0 0 0 0 0 164 0 Corporate securities(4) 50,083 2,409 11,100 (3,680) 0 (6,873) (1,914) 109,772 0 160,897 3,113 Structured securities(5) 2,001 (478) 7,444 0 0 (790) 0 0 (5,636) 2,541 (478) Other assets: Fixed maturities, trading 668 30 0 0 0 0 0 0 0 698 30 Equity securities 9,898 1,014 0 0 0 0 0 0 0 10,912 1,014 Other invested assets 4 (4) 0 0 0 0 0 0 0 0 (4) Short-term investments 0 0 0 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 0 0 0 Reinsurance recoverables 8,539,671 7,319,752 815,920 0 0 0 0 0 0 16,675,343 7,534,062 Receivables from parent and affiliates 3,135 23 0 0 0 (3,158) 0 0 0 0 0 Liabilities: Future policy benefits (8,529,566) (7,321,642) 0 0 (810,047) 0 0 0 0 (16,661,255) (7,535,951) Policyholders' account balances(6) (962,351) 37,907 0 0 (152,460) 0 0 0 0 (1,076,904) 53,610 Nine Months Ended September 30, 2020 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) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ (5,224) $ 0 $ 7,034 $ 122 $ (4,780) $ 0 $ 7,415 Other assets: Fixed maturities, trading 0 30 0 0 0 30 0 Equity securities 0 1,014 0 0 0 1,014 0 Other invested assets (4) 0 0 0 (4) 0 0 Short-term investments 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 Reinsurance recoverables 7,319,752 0 0 0 7,534,062 0 0 Receivables from parent and affiliates 0 0 0 23 0 0 0 Liabilities: Future policy benefits (7,321,642) 0 0 0 (7,535,951) 0 0 Policyholders' account balances 37,907 0 0 0 53,610 0 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. Refer to Note 1 for impacts to Realized investments gains (losses), net related to the 2021 Variable Annuities Recapture. (2) For current year "Other" represents noncash transfers related to the 2021 Variable Annuities Recapture. Refer to Note 1 for additional information. Prior year 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 and residential mortgage-backed securities. (6) Issuances and settlements for Policyholders' account balances are presented net in the rollforward. |
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. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate. Three Months Ended September 30, 2021 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 $ 55,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 55,000 $ 0 Foreign government 156 (4) 0 0 0 0 0 0 0 152 (5) Corporate securities(4) 170,830 (6,783) 3,173 0 0 (7,907) 119,218 4,106 0 282,637 (6,710) Structured securities(5) 27,179 (452) 12,500 0 0 (308) 19,859 0 (25,450) 33,328 (449) Other assets: Fixed maturities, trading 801 0 0 0 0 0 0 0 (801) 0 0 Equity securities 8,005 477 0 0 0 0 3,874 0 0 12,356 477 Other invested assets 0 0 0 0 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 1,690 0 0 1,690 0 Cash equivalents 0 0 0 0 0 0 1,230 0 0 1,230 0 Reinsurance recoverables 9,275,523 (8,372,926) 36,892 0 0 0 0 0 0 939,489 (32,262) Receivables from parent and affiliates 0 0 0 0 0 0 0 0 0 0 0 Liabilities: Future policy benefits (9,263,516) 331,967 0 0 (276,639) 0 0 0 0 (9,208,188) 218,025 Policyholders' account balances(6) (1,156,610) 5,389 0 0 (3,202) 0 0 0 0 (1,154,423) 21,559 Three Months Ended September 30, 2021 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) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ (1,656) $ 0 $ (5,768) $ 185 $ (1,678) $ 0 $ (5,486) Other assets: Fixed maturities, trading 0 0 0 0 0 0 0 Equity securities 0 477 0 0 0 477 0 Other invested assets 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 Reinsurance recoverables (8,372,926) 0 0 0 (32,262) 0 0 Receivables from parent and affiliates 0 0 0 0 0 0 0 Liabilities: Future policy benefits 331,967 0 0 0 218,025 0 0 Policyholders' account balances 5,389 0 0 0 21,559 0 0 Nine Months Ended September 30, 2021 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 $ 55,000 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 55,000 $ 0 Foreign government 163 (11) 0 0 0 0 0 0 0 152 (13) Corporate securities(4) 174,776 (13,815) 5,515 0 0 (12,280) 119,218 9,223 0 282,637 (13,811) Structured securities(5) 2,065 (465) 38,450 0 0 (1,131) 19,859 0 (25,450) 33,328 (462) Other assets: Fixed maturities, trading 755 46 0 0 0 0 0 0 (801) 0 46 Equity securities 7,889 593 0 0 0 0 3,874 0 0 12,356 593 Other invested assets 0 0 0 0 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 1,690 0 0 1,690 0 Cash equivalents 0 0 0 0 0 0 1,230 0 0 1,230 0 Reinsurance recoverables 13,239,539 (12,892,808) 592,758 0 0 0 0 0 0 939,489 (524,521) Receivables from parent and affiliates 0 0 0 0 0 0 0 0 0 0 0 Liabilities: Future policy benefits (13,227,814) 4,848,168 0 0 (828,542) 0 0 0 0 (9,208,188) 4,365,984 Policyholders' account balances(6) (1,155,274) (31,278) 0 0 0 32,129 0 0 0 (1,154,423) 21,234 Nine Months Ended September 30, 2021 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) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ 152 $ 0 $ (14,678) $ 235 $ 121 $ 0 $ (14,407) Other assets: Fixed maturities, trading 0 46 0 0 0 46 0 Equity securities 0 593 0 0 0 593 0 Other invested assets 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 Reinsurance recoverables (12,892,808) 0 0 0 (524,521) 0 0 Receivables from parent and affiliates 0 0 0 0 0 0 0 Liabilities: Future policy benefits 4,848,168 0 0 0 4,365,984 0 0 Policyholders' account balances (31,278) 0 0 0 21,234 0 0 Three Months Ended September 30, 2020 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 $ 44,792 $ 0 $ 3,667 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 48,459 $ 0 Foreign government 161 3 0 0 0 0 0 0 0 164 2 Corporate securities(4) 156,972 3,941 2,436 0 0 (538) (1,914) 0 0 160,897 3,920 Structured securities(5) 1,507 (3) 1,299 0 0 (262) 0 0 0 2,541 (4) Other assets: Fixed maturities, trading 644 54 0 0 0 0 0 0 0 698 55 Equity securities 9,150 1,762 0 0 0 0 0 0 0 10,912 1,762 Other invested assets 0 0 0 0 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 0 0 0 Reinsurance recoverables 19,028,138 (2,631,208) 278,413 0 0 0 0 0 0 16,675,343 (2,473,607) Receivables from parent and affiliates 0 0 0 0 0 0 0 0 0 0 0 Liabilities: Future policy benefits (19,014,066) 2,629,271 0 0 (276,460) 0 0 0 0 (16,661,255) 2,475,638 Policyholders' account balances(6) (1,045,483) (2,053) 0 0 (29,368) 0 0 0 0 (1,076,904) 11,350 Three Months Ended September 30, 2020 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) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ (1,084) $ 0 $ 5,003 $ 22 $ (1,086) $ 0 $ 5,004 Other assets: Fixed maturities, trading 0 54 0 0 0 55 0 Equity securities 0 1,762 0 0 0 1,762 0 Other invested assets 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 Reinsurance recoverables (2,631,208) 0 0 0 (2,473,607) 0 0 Receivables from parent and affiliates 0 0 0 0 0 0 0 Liabilities: Future policy benefits 2,629,271 0 0 0 2,475,638 0 0 Policyholders' account balances (2,053) 0 0 0 11,350 0 0 Nine Months Ended September 30, 2020 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 $ 38,671 $ 0 $ 9,788 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 48,459 $ 0 Foreign government 163 1 0 0 0 0 0 0 0 164 0 Corporate securities(4) 50,083 2,409 11,100 (3,680) 0 (6,873) (1,914) 109,772 0 160,897 3,113 Structured securities(5) 2,001 (478) 7,444 0 0 (790) 0 0 (5,636) 2,541 (478) Other assets: Fixed maturities, trading 668 30 0 0 0 0 0 0 0 698 30 Equity securities 9,898 1,014 0 0 0 0 0 0 0 10,912 1,014 Other invested assets 4 (4) 0 0 0 0 0 0 0 0 (4) Short-term investments 0 0 0 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 0 0 0 Reinsurance recoverables 8,539,671 7,319,752 815,920 0 0 0 0 0 0 16,675,343 7,534,062 Receivables from parent and affiliates 3,135 23 0 0 0 (3,158) 0 0 0 0 0 Liabilities: Future policy benefits (8,529,566) (7,321,642) 0 0 (810,047) 0 0 0 0 (16,661,255) (7,535,951) Policyholders' account balances(6) (962,351) 37,907 0 0 (152,460) 0 0 0 0 (1,076,904) 53,610 Nine Months Ended September 30, 2020 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) Included in other comprehensive income (loss) (in thousands) Fixed maturities, available-for-sale $ (5,224) $ 0 $ 7,034 $ 122 $ (4,780) $ 0 $ 7,415 Other assets: Fixed maturities, trading 0 30 0 0 0 30 0 Equity securities 0 1,014 0 0 0 1,014 0 Other invested assets (4) 0 0 0 (4) 0 0 Short-term investments 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 Reinsurance recoverables 7,319,752 0 0 0 7,534,062 0 0 Receivables from parent and affiliates 0 0 0 23 0 0 0 Liabilities: Future policy benefits (7,321,642) 0 0 0 (7,535,951) 0 0 Policyholders' account balances 37,907 0 0 0 53,610 0 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. Refer to Note 1 for impacts to Realized investments gains (losses), net related to the 2021 Variable Annuities Recapture. (2) For current year "Other" represents noncash transfers related to the 2021 Variable Annuities Recapture. Refer to Note 1 for additional information. Prior year 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 and residential mortgage-backed securities. (6) Issuances and settlements for Policyholders' account balances are presented net in the rollforward. |
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. September 30, 2021 Fair Value Carrying Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 2,120,345 $ 2,120,345 $ 2,042,654 Policy loans 0 0 1,324,335 1,324,335 1,324,335 Cash and cash equivalents 316,730 50,000 0 366,730 366,730 Accrued investment income 0 139,355 0 139,355 139,355 Reinsurance recoverables 0 0 29,201 29,201 27,971 Receivables from parent and affiliates 0 197,201 0 197,201 197,201 Other assets 0 81,126 0 81,126 81,126 Total assets $ 316,730 $ 467,682 $ 3,473,881 $ 4,258,293 $ 4,179,372 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 1,404,725 $ 296,918 $ 1,701,643 $ 1,695,222 Cash collateral for loaned securities 0 0 0 0 0 Long-term debt to affiliates 0 321,828 0 321,828 322,631 Payables to parent and affiliates 0 133,353 0 133,353 133,353 Other liabilities 0 464,793 34,091 498,884 498,884 Total liabilities $ 0 $ 2,324,699 $ 331,009 $ 2,655,708 $ 2,650,090 December 31, 2020 Fair Value Carrying Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 1,359,422 $ 1,359,422 $ 1,288,846 Policy loans 0 0 1,323,681 1,323,681 1,323,681 Cash and cash equivalents 29,653 0 0 29,653 29,653 Accrued investment income 0 93,613 0 93,613 93,613 Reinsurance recoverables 0 0 227,993 227,993 217,637 Receivables from parent and affiliates 0 154,503 0 154,503 154,503 Other assets 0 27,120 0 27,120 27,120 Total assets $ 29,653 $ 275,236 $ 2,911,096 $ 3,215,985 $ 3,135,053 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 1,428,043 $ 286,533 $ 1,714,576 $ 1,704,220 Cash collateral for loaned securities 0 2,725 0 2,725 2,725 Long-term debt to affiliates 0 0 0 0 0 Payables to parent and affiliates 0 75,990 0 75,990 75,990 Other liabilities 0 415,889 0 415,889 415,889 Total liabilities $ 0 $ 1,922,647 $ 286,533 $ 2,209,180 $ 2,198,824 (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 out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments. |
Reinsurance (Tables)
Reinsurance (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 and December 31, 2020 were as follows: September 30, 2021 December 31, 2020 (in thousands) Reinsurance recoverables $ 30,904,877 $ 48,367,096 Policy loans (157,409) (153,869) Deferred policy acquisition costs (3,039,546) (6,574,020) Deferred sales inducements (38,335) (445,493) Other assets(1) 120,985 233,364 Policyholders’ account balances 4,620,765 4,773,439 Future policy benefits(2) 5,169,657 5,069,353 Other liabilities(3) 1,041,919 1,099,318 (1) Includes $0.0 million of unaffiliated activity as of both September 30, 2021 and December 31, 2020, respectively. (2) Includes $0.0 million of unaffiliated activity as of both September 30, 2021 and December 31, 2020, respectively. |
Reinsurance Recoverable by Counterparty | Reinsurance recoverables by counterparty are broken out below: September 30, 2021 December 31, 2020 (in thousands) PAR U $ 13,380,530 $ 13,352,845 PALAC 0 15,941,123 PURC 5,652,790 5,368,831 PARCC 2,464,059 2,572,428 GUL Re 2,652,663 2,573,609 PAR Term 1,974,167 1,913,265 Prudential Insurance 2,006,562 2,421,226 Prudential of Taiwan 0 1,649,998 Term Re 1,900,805 1,766,978 DART 624,071 502,770 Unaffiliated 249,230 304,023 Total reinsurance recoverables $ 30,904,877 $ 48,367,096 |
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 nine months ended September 30, were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) Premiums: Direct $ 487,010 $ 475,017 $ 1,459,895 $ 1,435,080 Assumed(1) 41 45 125 140 Ceded(2) (435,514) (450,755) (1,319,216) (1,373,498) Net premiums 51,537 24,307 140,804 61,722 Policy charges and fee income: Direct 919,203 882,373 2,722,548 2,600,632 Assumed 146,257 131,877 432,907 395,960 Ceded(3) (455,359) (863,170) (2,213,289) (2,544,508) Net policy charges and fee income 610,101 151,080 942,166 452,084 Net investment income: Direct 180,642 95,266 377,942 261,304 Assumed (55) 390 675 1,184 Ceded (1,477) (1,664) (5,340) (5,453) Net investment income 179,110 93,992 373,277 257,035 Asset administration fees: Direct 101,105 91,953 296,542 265,612 Assumed 0 0 0 0 Ceded (9,167) (86,989) (192,117) (251,958) Net asset administration fees 91,938 4,964 104,425 13,654 Other income: Direct 24,609 28,529 66,286 49,817 Assumed(4) (6) (112) (66) (141) Ceded 35,687 3 35,793 128 Amortization of reinsurance income 1,119 1,162 3,270 3,506 Net other income 61,409 29,582 105,283 53,310 Realized investment gains (losses), net: Direct 3,362,148 2,646,206 7,864,422 (7,254,543) Assumed 0 0 0 0 Ceded(5) (8,370,760) (2,647,753) (12,918,928) 7,262,660 Realized investment gains (losses), net (5,008,612) (1,547) (5,054,506) 8,117 Policyholders’ benefits (including change in reserves): Direct 975,500 879,729 2,775,018 2,691,447 Assumed(6) 222,418 196,502 639,927 766,272 Ceded(7) (811,915) (1,020,403) (2,856,953) (3,229,715) Net policyholders’ benefits (including change in reserves) 386,003 55,828 557,992 228,004 Interest credited to policyholders’ account balances: Direct 150,269 148,411 430,494 420,163 Assumed 30,540 33,974 95,658 102,230 Ceded (485,215) (130,119) (726,988) (348,664) Net interest credited to policyholders’ account balances (304,406) 52,266 (200,836) 173,729 Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization (1,398,529) (448,254) (2,159,809) (1,330,501) (1) Includes $0.0 million of unaffiliated activity for both the three months ended September 30, 2021 and 2020, respectively and $0.1 million and $0.2 million for the nine months ended September 30, 2021 and 2020. (2) Includes $(6.1) million and $(2.4) million of unaffiliated activity for the three months ended September 30, 2021, and 2020, respectively and $(19.7) million and $(7.5) million for the nine months ended September 30, 2021 and 2020, respectively. (3) Includes $(24) million and $(18) million of unaffiliated activity for the three months ended September 30, 2021 and 2020, respectively and $(54) million and $(39) million for the nine months ended September 30, 2021 and 2020, respectively. (4) Includes $0.0 million and $0.1 million of unaffiliated activity for the three months ended September 30, 2021 and 2020, respectively and $0 million and $0.1 million for the nine months ended September 30, 2021 and 2020. (5) Includes $(10) million and $(68) million of unaffiliated activity for the three months ended September 30, 2021 and 2020, respectively and $(120) million and $160 million for the nine months ended September 30, 2021 and 2020, respectively. (6) Includes $0.1 million of unaffiliated activity for both the three months ended September 30, 2021 and 2020, respectively and $0.4 million and $0.7 million for the nine months ended September 30, 2021 and 2020, respectively. (7) Includes $(38) million and $(20) million of unaffiliated activity for the three months ended September 30, 2021 and 2020, respectively and $(169) million and $(44) million for the nine months ended September 30, 2021 and 2020, respectively. |
Gross and Net Life Insurance in Force | The gross and net amounts of life insurance face amount in force as of September 30, 2021 and 2020 were as follows: 2021 2020 (in thousands) Direct gross life insurance face amount in force $ 1,071,060,317 $ 1,031,639,923 Assumed gross life insurance face amount in force 38,117,216 39,135,248 Reinsurance ceded (991,290,617) (981,522,009) Net life insurance face amount in force $ 117,886,916 $ 89,253,162 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | The balance of and changes in each component of AOCI as of and for the nine months ended September 30, 2021 and 2020, are as follows: Accumulated Other Comprehensive Income (Loss) Foreign Net Unrealized Total Accumulated (in thousands) Balance, December 31, 2020 $ (7,797) $ 553,925 $ 546,128 Change in OCI before reclassifications (3,904) (181,041) (184,945) Amounts reclassified from AOCI 0 (23,861) (23,861) Income tax benefit (expense) 313 43,029 43,342 Balance, September 30, 2021 $ (11,388) $ 392,052 $ 380,664 Accumulated Other Comprehensive Income (Loss) Foreign Net Unrealized Total Accumulated (in thousands) Balance, December 31, 2019 $ (7,917) $ 289,359 $ 281,442 Change in OCI before reclassifications (8,007) 233,906 225,899 Amounts reclassified from AOCI 0 (1,200) (1,200) Income tax benefit (expense) (2,189) (48,869) (51,058) Balance, September 30, 2020 $ (18,113) $ 473,196 $ 455,083 (1) Includes cash flow hedges of $32 million and $(8) million as of September 30, 2021 and December 31, 2020, respectively, and $54 million and $26 million as of September 30, 2020 and December 31, 2019, respectively . |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of Accumulated Other Comprehensive Income (Loss) Three Months Ended Nine Months Ended 2021 2020 2021 2020 (in thousands) Amounts reclassified from AOCI (1)(2): Net unrealized investment gains (losses): Cash flow hedges - Currency/Interest rate(3) $ 16,205 $ (3,214) $ 22,047 $ 8,026 Net unrealized investment gains (losses) on available-for-sale securities 3,183 (88) 1,814 (6,826) Total net unrealized investment gains (losses)(4) 19,388 (3,302) 23,861 1,200 Total reclassifications for the period $ 19,388 $ (3,302) $ 23,861 $ 1,200 (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. |
Net Unrealized Investment Gains (Losses) on AFS Fixed Maturity Securities wit Allowance for credit losses and All Other Investments AOCI Rollforward | The amounts for the periods indicated below, split between amounts related to net unrealized investment gains (losses) on available-for-sale fixed maturity securities on which an allowance for credit losses has been recognized, and all other net unrealized investment gains (losses), are as follows: Net Unrealized Gains (Losses) on Investments on Available-for-Sale Fixed Maturity Securities on which an allowance for credit losses has been recognized Net Unrealized DAC and Other Costs(2) Future Policy Benefits, Policyholders' Account Balances and Other Liabilities(3) Income Tax Accumulated (in thousands) Balance, December 31, 2020 $ 0 $ 849,349 $ 1,200,048 $ (1,348,231) $ (147,241) $ 553,925 Net investment gains (losses) on investments arising during the period 623 (222,928) 0 0 46,684 (175,621) Reclassification adjustment for (gains) losses included in net income 0 (23,861) 0 0 5,011 (18,850) Reclassification due to allowance for credit losses recorded during the period 352 (352) 0 0 0 0 Impact of net unrealized investment (gains) losses 0 0 (279,391) 320,655 (8,666) 32,598 Balance, September 30, 2021 $ 975 $ 602,208 $ 920,657 $ (1,027,576) $ (104,212) $ 392,052 (1) Includes cash flow hedges. See Note 4 for information on cash flow hedges. (2) "Other costs" primarily includes reinsurance recoverables and deferred reinsurance losses. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transaction [Line Items] | |
Affiliated Commercial Mortgage Loan | The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: September 30, 2021 December 31, 2020 Amount % of Amount % of Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 546,483 26.7 % $ 364,549 28.2 % Hospitality 37,345 1.8 34,069 2.6 Industrial 693,418 33.9 399,017 30.9 Office 320,973 15.6 195,443 15.1 Other 195,986 9.6 138,477 10.7 Retail 192,186 9.4 142,266 11.0 Total commercial mortgage loans 1,986,391 97.0 1,273,821 98.5 Agricultural property loans 60,517 3.0 19,577 1.5 Total commercial mortgage and agricultural property loans 2,046,908 100.0 % 1,293,398 100.0 % Allowance for credit losses (4,254) (4,552) Total net commercial mortgage and agricultural property loans $ 2,042,654 $ 1,288,846 |
Affiliated Asset Transfers | The table below shows affiliated asset trades for the nine months ended September 30, 2021 and for the year ended December 31, 2020, excluding those related to the 2021 Variable Annuities Recapture effective July 1, 2021, as described in Note 1. Affiliate Date Transaction Security Type Fair Value Book Value APIC, Net of Tax Increase/(Decrease) Realized (in thousands) Prudential Insurance March 2020 Purchase Other Invested Assets $ 1,390 $ 1,390 $ 0 $ 0 Prudential Insurance April 2020 Purchase Fixed Maturities $ 61,953 $ 59,659 $ (1,812) $ 0 Prudential Insurance April 2020 Purchase Fixed Maturities $ 3,485 $ 3,320 $ (130) $ 0 GA BV LLC July 2020 Transfer Out Fixed Maturities $ 1,914 $ 1,914 $ 0 $ 0 PALAC June 2021 Purchase Equities $ 40,284 $ 40,284 $ 0 $ 0 Prudential Insurance September 2021 Purchase Fixed Maturities $ 64,374 $ 59,642 $ (3,739) $ 0 Prudential Insurance September 2021 Sale Fixed Maturities $ 37,887 $ 35,264 $ 2,073 $ 0 Hirakata LLC September 2021 Purchase Fixed Maturities $ 13,944 $ 13,944 $ 0 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Purchase Fixed Maturities $ 120,256 $ 120,256 $ 0 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Sale Fixed Maturities $ 173,590 $ 166,427 $ 0 $ 7,163 Prudential Insurance September 2021 Purchase Commercial Mortgage and Other Loans $ 45,358 $ 42,127 $ (2,553) $ 0 Prudential Insurance September 2021 Sale Commercial Mortgage and Other Loans $ 22,796 $ 21,780 $ 802 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Purchase Commercial Mortgage and Other Loans $ 29,483 $ 29,483 $ 0 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Sale Commercial Mortgage and Other Loans $ 51,005 $ 47,020 $ 0 $ 3,985 Prudential Insurance September 2021 Purchase Derivatives $ 600 $ 494 $ (84) $ 0 Prudential Insurance September 2021 Sale Derivatives $ 335 $ 175 $ 127 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Purchase Derivatives $ (1,243) $ (1,243) $ 0 $ 0 Prudential Retirement Insurance & Annuity Co September 2021 Sale Derivatives $ 2,846 $ 770 $ 0 $ 2,076 |
Affiliated Entity | |
Related Party Transaction [Line Items] | |
Affiliated Notes Receivable | Affiliated notes receivable included in “Receivables from parent and affiliates” at September 30, 2021 and December 31, 2020 were as follows: Maturity Dates Interest Rates September 30, 2021 December 31, 2020 (in thousands) U.S. dollar fixed rate notes 2022 - 2027 0.00% - 14.85 % $ 164,293 $ 111,970 Total notes receivable - affiliated(1) $ 164,293 $ 111,970 (1) All notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances. |
Affiliated Commercial Mortgage Loan | The affiliated commercial mortgage loan included in "Commercial mortgage and other loans" at September 30, 2021 was as follows: Maturity Date Interest Rate September 30, 2021 (in thousands) Affiliated Commercial Mortgage Loan 2025 4.58% $ 73,709 |
Debt Agreements | The following table provides the breakout of the Company's short and long-term debt to affiliates as of September 30, 2021: Affiliate Date Amount of Notes - September 30, 2021 Interest Rate Date of Maturity (in thousands) Prudential Insurance 8/13/2021 $ 100,540 4.39 % 12/15/2023 Prudential Insurance 8/13/2021 30,162 4.39 % 12/15/2023 Prudential Insurance 8/13/2021 101,015 3.95 % 6/20/2024 Prudential Insurance 8/13/2021 40,406 3.95 % 6/20/2024 Prudential Insurance 8/13/2021 50,508 3.95 % 6/20/2024 Total Loans Payable to Affiliates $ 322,631 |
Business and Basis Presentation
Business and Basis Presentation (Unaudited Interim Consolidated Statement of Financial Position) (Details) - USD ($) $ in Thousands | Jul. 01, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 |
ASSETS | |||||||
Total investments | $ 19,210,556 | $ 19,210,556 | $ 10,705,000 | $ 10,387,049 | |||
Cash and cash equivalents | 1,100,935 | 1,100,935 | 238,000 | 426,979 | |||
Deferred policy acquisition costs | 6,210,116 | 6,210,116 | 2,790,000 | 2,433,936 | |||
Accrued investment income | 139,355 | 139,355 | 97,000 | 93,613 | |||
Reinsurance recoverables | 30,904,877 | 30,904,877 | 42,956,000 | 48,367,096 | |||
Deferred sales inducements | 378,870 | 378,870 | 0 | 0 | |||
Receivables from parent and affiliates | 361,494 | 361,494 | 280,000 | 266,473 | |||
Income taxes receivable | 1,064,825 | 1,064,825 | 274,000 | 175,024 | |||
Other assets | 356,981 | 356,981 | 403,000 | 417,508 | |||
Separate account assets | 146,825,583 | 146,825,583 | 150,165,000 | 145,740,422 | |||
TOTAL ASSETS | 206,553,592 | 206,553,592 | 207,908,000 | 208,308,100 | |||
LIABILITIES | |||||||
Future policy benefits | 27,817,818 | 27,817,818 | 27,399,000 | 32,889,181 | |||
Policyholders’ account balances | 24,399,646 | 24,399,646 | 24,326,000 | 23,857,574 | |||
Cash collateral for loaned securities | 0 | 0 | 3,000 | 2,725 | |||
Payables to parent and affiliates | 133,353 | 133,353 | 176,000 | 75,990 | |||
Other Liabilities | 1,692,610 | 1,692,610 | 1,760,000 | 1,694,492 | |||
Separate account liabilities | 146,825,583 | 146,825,583 | 150,165,000 | 145,740,422 | |||
Total Liabilities | 201,191,641 | 201,191,641 | 203,829,000 | 204,260,384 | |||
EQUITY | |||||||
Common stock | 2,500 | 2,500 | 3,000 | 2,500 | |||
Additional paid-in capital | 5,587,195 | 5,587,195 | 1,798,000 | 1,726,690 | |||
Retained earnings | (608,408) | (608,408) | 1,843,000 | 1,772,398 | |||
Accumulated other comprehensive income | 380,664 | 380,664 | 435,000 | 546,128 | |||
Total equity | 5,361,951 | 5,361,951 | 4,079,000 | 4,047,716 | |||
TOTAL LIABILITIES AND EQUITY | 206,553,592 | 206,553,592 | $ 207,908,000 | $ 208,308,100 | |||
Loss related to ceding commissions | $ 610,101 | $ 151,080 | $ 942,166 | $ 452,084 | |||
Impacts of Recapture | |||||||
ASSETS | |||||||
Total investments | $ 19,029,000 | ||||||
Cash and cash equivalents | 652,000 | ||||||
Deferred policy acquisition costs | 6,076,000 | ||||||
Accrued investment income | 139,000 | ||||||
Reinsurance recoverables | 30,649,000 | ||||||
Deferred sales inducements | 388,000 | ||||||
Receivables from parent and affiliates | 280,000 | ||||||
Income taxes receivable | 1,039,000 | ||||||
Other assets | 319,000 | ||||||
Separate account assets | 150,165,000 | ||||||
TOTAL ASSETS | 208,736,000 | ||||||
LIABILITIES | |||||||
Future policy benefits | 27,399,000 | ||||||
Policyholders’ account balances | 24,326,000 | ||||||
Cash collateral for loaned securities | 3,000 | ||||||
Payables to parent and affiliates | 70,000 | ||||||
Other Liabilities | 1,760,000 | ||||||
Separate account liabilities | 150,165,000 | ||||||
Total Liabilities | 203,723,000 | ||||||
EQUITY | |||||||
Common stock | 3,000 | ||||||
Additional paid-in capital | 5,584,000 | ||||||
Retained earnings | (954,000) | ||||||
Accumulated other comprehensive income | 380,000 | ||||||
Total equity | 5,013,000 | ||||||
TOTAL LIABILITIES AND EQUITY | 208,736,000 | ||||||
Variable annuity | Total investments | |||||||
EQUITY | |||||||
Loss related to ceding commissions | (2,000,000) | ||||||
Variable annuity | Prudential Insurance | Additional paid-in capital | |||||||
EQUITY | |||||||
Non-cash activities | 3,400,000 | ||||||
Variable annuity | Impacts of Recapture | |||||||
ASSETS | |||||||
Total investments | 8,324,000 | ||||||
Cash and cash equivalents | 414,000 | ||||||
Deferred policy acquisition costs | 3,286,000 | ||||||
Accrued investment income | 42,000 | ||||||
Reinsurance recoverables | (12,307,000) | ||||||
Deferred sales inducements | 388,000 | ||||||
Receivables from parent and affiliates | 0 | ||||||
Income taxes receivable | 765,000 | ||||||
Other assets | (84,000) | ||||||
Separate account assets | 0 | ||||||
TOTAL ASSETS | 828,000 | ||||||
LIABILITIES | |||||||
Future policy benefits | 0 | ||||||
Policyholders’ account balances | 0 | ||||||
Cash collateral for loaned securities | 0 | ||||||
Payables to parent and affiliates | (106,000) | ||||||
Other Liabilities | 0 | ||||||
Separate account liabilities | 0 | ||||||
Total Liabilities | (106,000) | ||||||
EQUITY | |||||||
Common stock | 0 | ||||||
Additional paid-in capital | 3,786,000 | ||||||
Retained earnings | (2,797,000) | ||||||
Accumulated other comprehensive income | (55,000) | ||||||
Total equity | 934,000 | ||||||
TOTAL LIABILITIES AND EQUITY | 828,000 | ||||||
Variable annuity | Impacts of Recapture | Total investments | |||||||
EQUITY | |||||||
Non-cash activities | $ 8,300,000 |
Business and Basis Presentati_2
Business and Basis Presentation (Unaudited Interim Consolidated Statement of Operations and Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
REVENUES | ||||||||
Other Income (loss) | $ 61,409 | $ 29,582 | $ 105,283 | $ 53,310 | ||||
Realized investment gains (losses) | (5,008,612) | (1,547) | (5,054,506) | 8,117 | ||||
TOTAL REVENUES | (4,014,517) | 302,378 | (3,388,551) | 845,922 | ||||
BENEFITS AND EXPENSES | ||||||||
Policyholders’ benefits | 386,003 | 55,828 | 557,992 | 228,004 | ||||
Interest credited to policyholders’ account balances | (304,406) | 52,266 | (200,836) | 173,729 | ||||
Amortization of deferred policy acquisition costs | 138,794 | 42,299 | 225,749 | 105,246 | ||||
General, administrative and other expenses | (1,039,337) | 119,379 | (807,697) | 254,411 | ||||
TOTAL BENEFITS AND EXPENSES | (818,946) | 269,772 | (224,792) | 761,390 | ||||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | (3,195,571) | 32,606 | (3,163,759) | 84,532 | ||||
Income tax expense (benefit) | (744,016) | (117,796) | (782,332) | (174,314) | ||||
NET INCOME (LOSS) | (2,451,089) | $ (33,094) | $ 103,377 | $ 150,078 | $ 9,532 | $ 97,612 | (2,380,806) | $ 257,222 |
Variable annuity | Impacts of Recapture | ||||||||
REVENUES | ||||||||
Other Income (loss) | (1,000) | (1,000) | ||||||
Realized investment gains (losses) | (4,953,000) | (4,953,000) | ||||||
TOTAL REVENUES | (4,954,000) | (4,954,000) | ||||||
BENEFITS AND EXPENSES | ||||||||
Policyholders’ benefits | 257,000 | 257,000 | ||||||
Interest credited to policyholders’ account balances | (399,000) | (399,000) | ||||||
General, administrative and other expenses | (1,272,000) | |||||||
TOTAL BENEFITS AND EXPENSES | (1,414,000) | (1,414,000) | ||||||
INCOME (LOSS) FROM OPERATIONS BEFORE INCOME TAXES | (3,540,000) | (3,540,000) | ||||||
Income tax expense (benefit) | (743,000) | (743,000) | ||||||
NET INCOME (LOSS) | $ (2,797,000) | $ (2,797,000) |
Business and Basis Presentati_3
Business and Basis Presentation (Affiliated Asset Transfers) (Details) - USD ($) $ in Thousands | Jul. 01, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Effects of Reinsurance [Line Items] | |||||
Realized investment gains (losses), net | $ (5,008,612) | $ (1,547) | $ (5,054,506) | $ 8,117 | |
Variable annuity | Impacts of Recapture | |||||
Effects of Reinsurance [Line Items] | |||||
Realized investment gains (losses), net | $ (4,953,000) | $ (4,953,000) | |||
Variable annuity | Impacts of Recapture | Affiliated Entity | PALAC July 2021 Purchase | |||||
Effects of Reinsurance [Line Items] | |||||
Fair Value | $ 4,908,000 | ||||
Book Value | 4,908,000 | ||||
APIC Retained Earnings Increase/(Decrease) | 0 | ||||
Realized investment gains (losses), net | 0 | ||||
Derivative Gain/(Loss) | 0 | ||||
Variable annuity | Impacts of Recapture | Affiliated Entity | Prudential Insurance July 2021 Contributed Capital | |||||
Effects of Reinsurance [Line Items] | |||||
Fair Value | 3,420,000 | ||||
Book Value | 3,420,000 | ||||
APIC Retained Earnings Increase/(Decrease) | 3,420,000 | ||||
Realized investment gains (losses), net | 0 | ||||
Derivative Gain/(Loss) | $ 0 |
Business and Basis of Present_3
Business and Basis of Presentation (Narrative) (Details) $ in Thousands | Jul. 01, 2021USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)subsidiary | Sep. 30, 2020USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Number Of Subsidiaries | subsidiary | 1 | ||||
Effects of Reinsurance [Line Items] | |||||
Loss related to ceding commissions | $ 610,101 | $ 151,080 | $ 942,166 | $ 452,084 | |
Reinsurance recoverable | 1,031,339 | 1,813,912 | |||
Capital contributions received | $ 493,756 | $ 400,000 | |||
Variable annuity | Investments | |||||
Effects of Reinsurance [Line Items] | |||||
Loss related to ceding commissions | $ (2,000,000) | ||||
Variable annuity | Prudential Insurance | Additional Paid-in Capital | |||||
Effects of Reinsurance [Line Items] | |||||
Non-cash activities | 3,400,000 | ||||
Cash | 400,000 | ||||
Variable annuity | Impacts of Recapture | |||||
Effects of Reinsurance [Line Items] | |||||
Reinsurance recoverable | (12,300,000) | ||||
Net deferred reinsurance loss | (100,000) | ||||
Pre-tax loss | (3,500,000) | ||||
Variable annuity | Impacts of Recapture | Investments | |||||
Effects of Reinsurance [Line Items] | |||||
Non-cash activities | 8,300,000 | ||||
Variable annuity | Impacts of Recapture | Prudential Insurance | |||||
Effects of Reinsurance [Line Items] | |||||
Capital contributions received | 3,800,000 | ||||
Variable annuity | PALAC | Impacts of Recapture | |||||
Effects of Reinsurance [Line Items] | |||||
Invested assets received | $ 6,800,000 |
Investments (Fixed Maturities S
Investments (Fixed Maturities Securities Excluding Investments Classified as Trading) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 10,135,396 | $ 6,157,371 |
Allowance for Credit Losses | 2,237 | 2,339 |
Fair Value | 10,702,155 | 7,012,631 |
Fixed maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 10,135,396 | 6,157,371 |
Gross Unrealized Gain | 645,513 | 868,966 |
Gross Unrealized Losses | 76,517 | 11,367 |
Allowance for Credit Losses | 2,237 | 2,339 |
Fair Value | 10,702,155 | 7,012,631 |
Fixed maturities | US Treasury securities and obligations of U.S. government authorities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 358,184 | 74,946 |
Gross Unrealized Gain | 22,847 | 2,931 |
Gross Unrealized Losses | 101 | 22 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 380,930 | 77,855 |
Fixed maturities | Obligations of U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 481,474 | 460,003 |
Gross Unrealized Gain | 48,044 | 57,948 |
Gross Unrealized Losses | 128 | 0 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 529,390 | 517,951 |
Fixed maturities | Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 275,756 | 206,633 |
Gross Unrealized Gain | 25,679 | 44,254 |
Gross Unrealized Losses | 3,125 | 32 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 298,310 | 250,855 |
Fixed maturities | U.S. public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,086,880 | 2,473,440 |
Gross Unrealized Gain | 358,688 | 456,581 |
Gross Unrealized Losses | 25,239 | 587 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 4,420,329 | 2,929,434 |
Fixed maturities | U.S. private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,445,143 | 919,316 |
Gross Unrealized Gain | 65,984 | 95,793 |
Gross Unrealized Losses | 8,522 | 2,198 |
Allowance for Credit Losses | 1,558 | 855 |
Fair Value | 1,501,047 | 1,012,056 |
Fixed maturities | Foreign public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 767,349 | 278,717 |
Gross Unrealized Gain | 33,121 | 42,899 |
Gross Unrealized Losses | 6,134 | 886 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 794,336 | 320,730 |
Fixed maturities | Foreign private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,909,870 | 977,539 |
Gross Unrealized Gain | 63,187 | 123,006 |
Gross Unrealized Losses | 30,695 | 7,131 |
Allowance for Credit Losses | 679 | 1,484 |
Fair Value | 1,941,683 | 1,091,930 |
Fixed maturities | Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 338,088 | 236,909 |
Gross Unrealized Gain | 974 | 1,115 |
Gross Unrealized Losses | 581 | 386 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 338,481 | 237,638 |
Fixed maturities | Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 453,399 | 480,412 |
Gross Unrealized Gain | 25,153 | 40,660 |
Gross Unrealized Losses | 1,992 | 125 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 476,560 | 520,947 |
Fixed maturities | Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 19,253 | 49,456 |
Gross Unrealized Gain | 1,836 | 3,779 |
Gross Unrealized Losses | 0 | 0 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | $ 21,089 | $ 53,235 |
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 | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | $ 3,628,954 | $ 150,346 |
Less than Twelve Months, Gross Unrealized Losses | 63,607 | 1,702 |
Twelve Months or More, Fair Value | 112,821 | 171,720 |
Twelve Months or More, Gross Unrealized Losses | 12,430 | 9,322 |
Total, Fair Value | 3,741,775 | 322,066 |
Total, Gross Unrealized Losses | 76,037 | 11,024 |
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 | 2,255 |
Less than Twelve Months, Gross Unrealized Losses | 0 | 22 |
Twelve Months or More, Fair Value | 2,141 | 0 |
Twelve Months or More, Gross Unrealized Losses | 101 | 0 |
Total, Fair Value | 2,141 | 2,255 |
Total, Gross Unrealized Losses | 101 | 22 |
Obligations of U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 17,997 | |
Less than Twelve Months, Gross Unrealized Losses | 128 | |
Twelve Months or More, Fair Value | 0 | |
Twelve Months or More, Gross Unrealized Losses | 0 | |
Total, Fair Value | 17,997 | |
Total, Gross Unrealized Losses | 128 | |
Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 86,349 | 2,270 |
Less than Twelve Months, Gross Unrealized Losses | 3,123 | 32 |
Twelve Months or More, Fair Value | 81 | 0 |
Twelve Months or More, Gross Unrealized Losses | 2 | 0 |
Total, Fair Value | 86,430 | 2,270 |
Total, Gross Unrealized Losses | 3,125 | 32 |
U.S. public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 1,497,660 | 33,295 |
Less than Twelve Months, Gross Unrealized Losses | 24,875 | 341 |
Twelve Months or More, Fair Value | 7,527 | 2,754 |
Twelve Months or More, Gross Unrealized Losses | 364 | 246 |
Total, Fair Value | 1,505,187 | 36,049 |
Total, Gross Unrealized Losses | 25,239 | 587 |
U.S. private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 483,604 | 33,806 |
Less than Twelve Months, Gross Unrealized Losses | 5,782 | 771 |
Twelve Months or More, Fair Value | 16,458 | 6,659 |
Twelve Months or More, Gross Unrealized Losses | 2,740 | 1,427 |
Total, Fair Value | 500,062 | 40,465 |
Total, Gross Unrealized Losses | 8,522 | 2,198 |
Foreign public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 406,354 | 6,432 |
Less than Twelve Months, Gross Unrealized Losses | 4,734 | 97 |
Twelve Months or More, Fair Value | 7,510 | 6,464 |
Twelve Months or More, Gross Unrealized Losses | 1,400 | 789 |
Total, Fair Value | 413,864 | 12,896 |
Total, Gross Unrealized Losses | 6,134 | 886 |
Foreign private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 953,235 | 2,931 |
Less than Twelve Months, Gross Unrealized Losses | 23,099 | 131 |
Twelve Months or More, Fair Value | 62,258 | 85,340 |
Twelve Months or More, Gross Unrealized Losses | 7,116 | 6,657 |
Total, Fair Value | 1,015,493 | 88,271 |
Total, Gross Unrealized Losses | 30,215 | 6,788 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 110,654 | 51,914 |
Less than Twelve Months, Gross Unrealized Losses | 581 | 183 |
Twelve Months or More, Fair Value | 0 | 70,503 |
Twelve Months or More, Gross Unrealized Losses | 0 | 203 |
Total, Fair Value | 110,654 | 122,417 |
Total, Gross Unrealized Losses | 581 | 386 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 73,101 | 17,443 |
Less than Twelve Months, Gross Unrealized Losses | 1,285 | 125 |
Twelve Months or More, Fair Value | 16,846 | 0 |
Twelve Months or More, Gross Unrealized Losses | 707 | 0 |
Total, Fair Value | 89,947 | 17,443 |
Total, Gross Unrealized Losses | 1,992 | 125 |
Residential mortgage-backed securities | ||
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 | 0 |
Twelve Months or More, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 0 | 0 |
Total, Gross Unrealized Losses | $ 0 | $ 0 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Schedule of Investments [Line Items] | |||||
Loans acquired | $ 806,000 | $ 0 | $ 806,000 | $ 0 | |
Loans Sold | 69,000 | 0 | 69,000 | 0 | |
Fixed Maturity Purchased with Credit Deterioration | 0 | $ 0 | |||
Accrued Investment Income Write Down | 0 | 0 | 0 | 0 | |
Securities sold under agreements to repurchase | $ 0 | $ 0 | $ 0 | ||
Commercial mortgage loans, Percentage | 100.00% | 100.00% | 100.00% | ||
Commercial Mortgage and other loans purchased with Credit Deterioration | $ 0 | $ 0 | |||
Fixed maturities | |||||
Schedule of Investments [Line Items] | |||||
Gross Unrealized Losses | $ 76,037 | 76,037 | 11,024 | ||
Twelve Months or More, Gross Unrealized Losses | 12,430 | 12,430 | 9,322 | ||
NAIC high or highest quality rating | Fixed maturities | |||||
Schedule of Investments [Line Items] | |||||
Gross Unrealized Losses | 62,800 | 62,800 | 5,000 | ||
NAIC other than high or highest quality rating | Fixed maturities | |||||
Schedule of Investments [Line Items] | |||||
Gross Unrealized Losses | $ 13,200 | $ 13,200 | 6,000 | ||
California | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 28.00% | 28.00% | |||
Texas | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 9.00% | 9.00% | |||
New York | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 8.00% | 8.00% | |||
Europe | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 14.00% | 14.00% | |||
Mexico | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 4.00% | 4.00% | |||
Australia | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 4.00% | 4.00% | |||
Other Income | Fixed maturities | |||||
Schedule of Investments [Line Items] | |||||
Unrealized Gain (Loss) on Investments | $ (2,600) | 5,800 | $ (5,100) | 2,600 | |
Other Income | Equity securities | |||||
Schedule of Investments [Line Items] | |||||
Unrealized Gain (Loss) on Investments | 400 | $ 1,800 | 400 | $ 1,000 | |
Fixed maturities | |||||
Schedule of Investments [Line Items] | |||||
Twelve Months or More, Gross Unrealized Losses | $ 12,400 | $ 12,400 | $ 9,300 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturities) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Due in one year or less | $ 138,773 | |
Due after one year through five years | 1,825,519 | |
Due after five years through ten years | 2,355,010 | |
Due after ten years | 5,005,354 | |
Amortized Cost | 10,135,396 | $ 6,157,371 |
Fair Value | ||
Due in one year or less | 138,226 | |
Due after one year through five years | 1,858,235 | |
Due after five years through ten years | 2,396,158 | |
Due after ten years | 5,473,406 | |
Fair Value | 10,702,155 | 7,012,631 |
Asset-backed securities | ||
Amortized Cost | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 338,088 | |
Fair Value | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 338,481 | |
Commercial mortgage-backed securities | ||
Amortized Cost | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 453,399 | |
Fair Value | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 476,560 | |
Residential mortgage-backed securities | ||
Amortized Cost | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 19,253 | |
Fair Value | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 21,089 | |
Fixed maturities | ||
Amortized Cost | ||
Amortized Cost | 10,135,396 | 6,157,371 |
Fair Value | ||
Fair Value | 10,702,155 | 7,012,631 |
Fixed maturities | Asset-backed securities | ||
Amortized Cost | ||
Amortized Cost | 338,088 | 236,909 |
Fair Value | ||
Fair Value | 338,481 | 237,638 |
Fixed maturities | Commercial mortgage-backed securities | ||
Amortized Cost | ||
Amortized Cost | 453,399 | 480,412 |
Fair Value | ||
Fair Value | 476,560 | 520,947 |
Fixed maturities | Residential mortgage-backed securities | ||
Amortized Cost | ||
Amortized Cost | 19,253 | 49,456 |
Fair Value | ||
Fair Value | $ 21,089 | $ 53,235 |
Investments (Fixed Maturities_2
Investments (Fixed Maturities Securities Proceeds) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from maturities/prepayments | $ 932,746 | $ 254,708 | ||
Available-for-sale | Fixed maturities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Noncash or Part Noncash Divestiture, Amount of Consideration Received | 3,500 | |||
Fixed maturities | Available-for-sale | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from Sale of Debt Securities, Available-for-sale | $ 268,215 | $ 55,657 | 585,205 | 68,598 |
Proceeds from maturities/prepayments | 180,569 | 51,892 | 351,027 | 189,646 |
Gross investment gains from sales and maturities | 7,853 | 1,245 | 16,361 | 1,837 |
Gross investment losses from sales and maturities | (2,991) | (82) | (14,647) | (1,818) |
Write-downs recognized in earnings | (1) | (3,290) | (3) | (4,312) |
(Addition to) release of allowance for credit losses | $ (1,678) | $ 2,039 | $ 103 | $ (2,533) |
Investments (Credit Losses Reco
Investments (Credit Losses Recognized In Earnings on Fixed Maturity Securities Held by the Company) (Details) - Fixed maturities - Available-for-sale - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Balance, beginning of period | $ 558 | $ 4,572 | $ 2,339 | $ 0 |
Additions to allowance for credit losses not previously recorded | 1,558 | 781 | 1,558 | 5,672 |
Reductions for securities sold during the period | (3) | (2,701) | (28) | (2,710) |
Addition (reductions) on securities with previous allowance | 124 | (119) | (1,632) | (429) |
Write-downs charged against the allowance | 0 | |||
Balance, end of period | 2,237 | 2,533 | 2,237 | 2,533 |
US Treasury securities and obligations of U.S. government authorities and agencies | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Balance, beginning of period | 0 | 0 | 0 | 0 |
Additions to allowance for credit losses not previously recorded | 0 | 0 | 0 | 0 |
Reductions for securities sold during the period | 0 | 0 | 0 | 0 |
Addition (reductions) on securities with previous allowance | 0 | 0 | 0 | 0 |
Write-downs charged against the allowance | 0 | |||
Balance, end of period | 0 | 0 | 0 | 0 |
Foreign government bonds | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Balance, beginning of period | 0 | 0 | 0 | 0 |
Additions to allowance for credit losses not previously recorded | 0 | 0 | 0 | 0 |
Reductions for securities sold during the period | 0 | 0 | 0 | 0 |
Addition (reductions) on securities with previous allowance | 0 | 0 | 0 | 0 |
Write-downs charged against the allowance | 0 | |||
Balance, end of period | 0 | 0 | 0 | 0 |
U.S. and Foreign Corporate Securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Balance, beginning of period | 558 | 4,572 | 2,339 | 0 |
Additions to allowance for credit losses not previously recorded | 1,558 | 781 | 1,558 | 5,672 |
Reductions for securities sold during the period | (3) | (2,701) | (28) | (2,710) |
Addition (reductions) on securities with previous allowance | 124 | (119) | (1,632) | (429) |
Write-downs charged against the allowance | 0 | |||
Balance, end of period | 2,237 | 2,533 | 2,237 | 2,533 |
Asset-backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Balance, beginning of period | 0 | 0 | 0 | 0 |
Additions to allowance for credit losses not previously recorded | 0 | 0 | 0 | 0 |
Reductions for securities sold during the period | 0 | 0 | 0 | 0 |
Addition (reductions) on securities with previous allowance | 0 | 0 | 0 | 0 |
Write-downs charged against the allowance | 0 | |||
Balance, end of period | 0 | 0 | 0 | 0 |
Commercial mortgage-backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Balance, beginning of period | 0 | 0 | 0 | 0 |
Additions to allowance for credit losses not previously recorded | 0 | 0 | 0 | 0 |
Reductions for securities sold during the period | 0 | 0 | 0 | 0 |
Addition (reductions) on securities with previous allowance | 0 | 0 | 0 | 0 |
Write-downs charged against the allowance | 0 | |||
Balance, end of period | 0 | 0 | 0 | 0 |
Residential mortgage-backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Balance, beginning of period | 0 | 0 | 0 | 0 |
Additions to allowance for credit losses not previously recorded | 0 | 0 | 0 | 0 |
Reductions for securities sold during the period | 0 | 0 | 0 | 0 |
Addition (reductions) on securities with previous allowance | 0 | 0 | 0 | 0 |
Write-downs charged against the allowance | 0 | |||
Balance, end of period | $ 0 | $ 0 | $ 0 | $ 0 |
Investments (Commercial Mortgag
Investments (Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 2,046,908 | $ 1,293,398 |
Commercial mortgage loans, Percentage | 100.00% | 100.00% |
Allowance for Credit Losses | $ (4,254) | $ (4,552) |
Commercial Mortgage Loans | 2,042,654 | 1,288,846 |
Commercial Mortgage and Agricultural Loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial Mortgage Loans | 2,042,654 | 1,288,846 |
Apartments and multi-family | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 546,483 | $ 364,549 |
Commercial mortgage loans, Percentage | 26.70% | 28.20% |
Hospitality | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 37,345 | $ 34,069 |
Commercial mortgage loans, Percentage | 1.80% | 2.60% |
Industrial | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 693,418 | $ 399,017 |
Commercial mortgage loans, Percentage | 33.90% | 30.90% |
Office | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 320,973 | $ 195,443 |
Commercial mortgage loans, Percentage | 15.60% | 15.10% |
Other | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 195,986 | $ 138,477 |
Commercial mortgage loans, Percentage | 9.60% | 10.70% |
Retail | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 192,186 | $ 142,266 |
Commercial mortgage loans, Percentage | 9.40% | 11.00% |
Commercial mortgage loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 1,986,391 | $ 1,273,821 |
Commercial mortgage loans, Percentage | 97.00% | 98.50% |
Agricultural property loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 60,517 | $ 19,577 |
Commercial mortgage loans, Percentage | 3.00% | 1.50% |
Investments (Allowance for Cred
Investments (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of year | $ 3,404 | $ 4,559 | $ 4,552 | $ 1,768 |
Cumulative effect of adoption of ASU 2016-13 | 0 | 2,487 | ||
Addition to (release of) allowance for expected losses | 850 | 82 | (298) | 386 |
Total ending balance | 4,254 | 4,641 | 4,254 | 4,641 |
Commercial Mortgage Loans | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of year | 3,380 | 4,549 | 4,546 | 1,743 |
Cumulative effect of adoption of ASU 2016-13 | 0 | 2,495 | ||
Addition to (release of) allowance for expected losses | 850 | 84 | (316) | 395 |
Total ending balance | 4,230 | 4,633 | 4,230 | 4,633 |
Agricultural Property Loans | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of year | 24 | 10 | 6 | 25 |
Cumulative effect of adoption of ASU 2016-13 | 0 | (8) | ||
Addition to (release of) allowance for expected losses | 0 | (2) | 18 | (9) |
Total ending balance | $ 24 | $ 8 | $ 24 | $ 8 |
Investments (Credit Quality Ind
Investments (Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 2,046,908 | $ 1,293,398 |
Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 188,717 | 144,247 |
One Year Prior | 278,313 | 178,714 |
Two Year Prior | 273,117 | 197,134 |
Three Year Prior | 187,698 | 178,575 |
Four Year Prior | 323,116 | 264,083 |
Prior | 735,430 | 311,068 |
Recording investment gross of allowance for credit losses | 1,986,391 | 1,273,821 |
Commercial mortgage loans | ≥ 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 171,349 | 128,839 |
One Year Prior | 186,140 | 159,476 |
Two Year Prior | 245,018 | 177,098 |
Three Year Prior | 178,068 | 171,255 |
Four Year Prior | 307,561 | 238,010 |
Prior | 667,944 | 290,741 |
Recording investment gross of allowance for credit losses | 1,756,080 | 1,165,419 |
Commercial mortgage loans | 1.0X to 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 17,368 | 15,408 |
One Year Prior | 88,712 | 10,334 |
Two Year Prior | 12,174 | 7,134 |
Three Year Prior | 0 | 7,320 |
Four Year Prior | 7,155 | 26,073 |
Prior | 20,573 | 16,418 |
Recording investment gross of allowance for credit losses | 145,982 | 82,687 |
Commercial mortgage loans | Less than 1.0X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Year Prior | 3,461 | 8,904 |
Two Year Prior | 15,925 | 12,902 |
Three Year Prior | 9,630 | 0 |
Four Year Prior | 8,400 | 0 |
Prior | 46,913 | 3,909 |
Recording investment gross of allowance for credit losses | 84,329 | 25,715 |
Agricultural Property Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 24,696 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 2,050 | 0 |
Three Year Prior | 5,096 | 6,486 |
Four Year Prior | 8,571 | 0 |
Prior | 20,104 | 13,091 |
Recording investment gross of allowance for credit losses | 60,517 | 19,577 |
Agricultural Property Loans | ≥ 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 24,696 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 2,050 | 0 |
Three Year Prior | 5,096 | 6,486 |
Four Year Prior | 8,571 | 0 |
Prior | 19,289 | 12,276 |
Recording investment gross of allowance for credit losses | 59,702 | 18,762 |
Agricultural Property Loans | 1.0X to 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 0 | 0 |
Recording investment gross of allowance for credit losses | 0 | 0 |
Agricultural Property Loans | Less than 1.0X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 815 | 815 |
Recording investment gross of allowance for credit losses | 815 | 815 |
0%-59.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 47,163 | 10,645 |
One Year Prior | 16,342 | 47,284 |
Two Year Prior | 87,397 | 33,443 |
Three Year Prior | 65,975 | 92,410 |
Four Year Prior | 136,869 | 162,030 |
Prior | 526,833 | 251,903 |
Recording investment gross of allowance for credit losses | 880,579 | 597,715 |
0%-59.99% | Agricultural Property Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 24,696 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 2,050 | 0 |
Three Year Prior | 5,096 | 6,486 |
Four Year Prior | 8,571 | 0 |
Prior | 20,104 | 13,091 |
Recording investment gross of allowance for credit losses | 60,517 | 19,577 |
60%-69.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 76,864 | 69,819 |
One Year Prior | 194,700 | 95,331 |
Two Year Prior | 121,550 | 141,260 |
Three Year Prior | 99,339 | 52,710 |
Four Year Prior | 77,051 | 80,875 |
Prior | 146,574 | 43,823 |
Recording investment gross of allowance for credit losses | 716,078 | 483,818 |
60%-69.99% | Agricultural Property Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 0 | 0 |
Recording investment gross of allowance for credit losses | 0 | 0 |
70%-79.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 64,690 | 63,783 |
One Year Prior | 67,271 | 36,099 |
Two Year Prior | 64,170 | 22,431 |
Three Year Prior | 22,384 | 32,476 |
Four Year Prior | 108,233 | 21,178 |
Prior | 60,845 | 15,342 |
Recording investment gross of allowance for credit losses | 387,593 | 191,309 |
70%-79.99% | Agricultural Property Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 0 | 0 |
Recording investment gross of allowance for credit losses | 0 | 0 |
80% or greater | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 979 |
Four Year Prior | 963 | 0 |
Prior | 1,178 | 0 |
Recording investment gross of allowance for credit losses | 2,141 | 979 |
80% or greater | Agricultural Property Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Year Prior | 0 | 0 |
Two Year Prior | 0 | 0 |
Three Year Prior | 0 | 0 |
Four Year Prior | 0 | 0 |
Prior | 0 | 0 |
Recording investment gross of allowance for credit losses | $ 0 | $ 0 |
Investments (Analysis of Past D
Investments (Analysis of Past Due Commercial Mortgage, Agricultural and Other Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 2,046,908 | $ 1,293,398 |
Non-Accrual Status | 0 | 0 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 2,046,908 | 1,293,398 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Commercial mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 1,986,391 | 1,273,821 |
Non-Accrual Status | 0 | 0 |
Commercial mortgage loans | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 1,986,391 | 1,273,821 |
Commercial mortgage loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Commercial mortgage loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Commercial mortgage loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Agricultural Loan | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 60,517 | 19,577 |
Non-Accrual Status | 0 | 0 |
Agricultural Loan | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 60,517 | 19,577 |
Agricultural Loan | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Agricultural Loan | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Agricultural Loan | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Commercial mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 1,986,391 | 1,273,821 |
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 | Sep. 30, 2021 | Dec. 31, 2020 |
Other Invested Assets [Line Items] | ||
Other invested assets | $ 1,252,522 | $ 520,955 |
Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 977,531 | 458,790 |
Company’s investment in separate accounts | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 50,150 | 44,018 |
Derivative Instruments | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 224,841 | 18,147 |
Equity Method | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 899,983 | 381,998 |
Equity Method | Private equity | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 263,763 | 241,493 |
Equity Method | Hedge funds | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 557,844 | 77,311 |
Equity Method | Real estate-related | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 78,376 | 63,194 |
Fair Value | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 77,548 | 76,792 |
Fair Value | Private equity | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 66,936 | 65,436 |
Fair Value | Hedge funds | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 468 | 499 |
Fair Value | Real estate-related | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | $ 10,144 | $ 10,857 |
Investments (Accrued Investment
Investments (Accrued Investment Income) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Net Investment Income | |||
Accrued investment income | $ 139,355 | $ 97,000 | $ 93,613 |
Fixed maturities | |||
Net Investment Income | |||
Accrued investment income | 97,915 | 54,565 | |
Equity securities | |||
Net Investment Income | |||
Accrued investment income | 163 | 1 | |
Commercial mortgage and other loans | |||
Net Investment Income | |||
Accrued investment income | 5,196 | 3,610 | |
Policy loans | |||
Net Investment Income | |||
Accrued investment income | 35,423 | 35,374 | |
Other invested assets | |||
Net Investment Income | |||
Accrued investment income | 243 | 0 | |
Short-term investments and cash equivalents | |||
Net Investment Income | |||
Accrued investment income | $ 415 | $ 63 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | $ 186,615 | $ 98,970 | $ 391,548 | $ 271,323 |
Less: investment expenses | (7,505) | (4,978) | (18,271) | (14,288) |
Net investment income | 179,110 | 93,992 | 373,277 | 257,035 |
Equity securities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 163 | 102 | 368 | 307 |
Commercial mortgage and other loans | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 17,098 | 11,921 | 43,846 | 38,019 |
Policy loans | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 17,748 | 17,716 | 52,097 | 52,642 |
Other invested assets | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 47,685 | 13,890 | 66,493 | 12,146 |
Short-term investments and cash equivalents | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 303 | 376 | 463 | 2,988 |
Available-for-sale | Fixed maturities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 85,160 | 54,494 | 208,748 | 163,957 |
Trading | Fixed maturities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | $ 18,458 | $ 471 | $ 19,533 | $ 1,264 |
Investments (Realized Investmen
Investments (Realized Investment Gains Losses, Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | $ (5,008,612) | $ (1,547) | $ (5,054,506) | $ 8,117 |
Fixed maturities | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | 3,183 | (88) | 1,814 | (6,826) |
Commercial mortgage and other loans | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | 2,538 | (82) | 3,686 | (314) |
Other invested assets | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | (6,452) | 14 | (5,543) | (296) |
Derivatives | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | (5,007,888) | (1,395) | (5,054,459) | 15,709 |
Short-term investments and cash equivalents | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | $ 7 | $ 4 | $ (4) | $ (156) |
Investments (Net Unrealized Gai
Investments (Net Unrealized Gains Losses on Investments by Asset Class) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Gain (Loss) on Securities [Line Items] | ||
Net Unrealized Gains (Losses) on Investments | $ 603,183 | $ 849,349 |
Fixed maturities | Available-for-sale | With an allowance | ||
Gain (Loss) on Securities [Line Items] | ||
Net Unrealized Gains (Losses) on Investments | 975 | 0 |
Fixed maturities | Available-for-sale | Without an allowance | ||
Gain (Loss) on Securities [Line Items] | ||
Net Unrealized Gains (Losses) on Investments | 568,021 | 857,599 |
Derivatives designated as cash flow hedges | ||
Gain (Loss) on Securities [Line Items] | ||
Net Unrealized Gains (Losses) on Investments | 32,216 | (8,112) |
Affiliated notes | ||
Gain (Loss) on Securities [Line Items] | ||
Net Unrealized Gains (Losses) on Investments | 1,413 | 4,024 |
Other investments | ||
Gain (Loss) on Securities [Line Items] | ||
Net Unrealized Gains (Losses) on Investments | $ 558 | $ (4,162) |
Investments (Repurchase Agreeme
Investments (Repurchase Agreement and Securities Lending) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | $ 0 | $ 2,725 |
Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 2,725 |
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 |
Foreign public corporate securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 2,725 |
Foreign public corporate securities | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 2,725 |
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 | Sep. 30, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Assets | $ 6,891,274 | $ 397,546 |
Liabilities | (11,754,791) | (265,826) |
Derivative, Notional Amount | 202,326,585 | 5,030,826 |
Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Assets | 36,333 | 27,539 |
Liabilities | (10,309) | (49,316) |
Derivative, Notional Amount | 843,109 | 864,560 |
Derivatives Designated as Hedge Accounting Instruments: | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Assets | 73 | 203 |
Liabilities | 0 | 0 |
Derivative, Notional Amount | 3,383 | 3,486 |
Derivatives Designated as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Assets | 36,260 | 27,336 |
Liabilities | (10,309) | (49,316) |
Derivative, Notional Amount | 839,726 | 861,074 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Assets | 6,854,941 | 370,007 |
Liabilities | (11,744,482) | (216,510) |
Derivative, Notional Amount | 201,483,476 | 4,166,266 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Assets | 5,889,729 | 57,024 |
Liabilities | (10,791,716) | (11,117) |
Derivative, Notional Amount | 132,732,910 | 663,050 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Future | ||
Derivative [Line Items] | ||
Assets | 3,384 | 198 |
Liabilities | (19) | 0 |
Derivative, Notional Amount | 3,660,200 | 57,700 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Forwards | ||
Derivative [Line Items] | ||
Assets | 1,392 | 5 |
Liabilities | (33) | (1,322) |
Derivative, Notional Amount | 84,434 | 55,292 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Default Swaps | ||
Derivative [Line Items] | ||
Assets | 9,341 | 0 |
Liabilities | 0 | (18) |
Derivative, Notional Amount | 100,000 | 2,313 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Assets | 45,930 | 6,584 |
Liabilities | (20,820) | (7,286) |
Derivative, Notional Amount | 1,320,211 | 143,011 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Options | ||
Derivative [Line Items] | ||
Assets | 421,403 | 306,196 |
Liabilities | (702,796) | (196,767) |
Derivative, Notional Amount | 36,153,823 | 3,244,900 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Option | ||
Derivative [Line Items] | ||
Assets | 186,499 | 0 |
Liabilities | (169,030) | 0 |
Derivative, Notional Amount | 9,898,000 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Forward | ||
Derivative [Line Items] | ||
Assets | 130 | 0 |
Liabilities | (3,846) | 0 |
Derivative, Notional Amount | 178,122 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Total Return Swap | ||
Derivative [Line Items] | ||
Assets | 297,046 | 0 |
Liabilities | (25,762) | 0 |
Derivative, Notional Amount | 14,491,104 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Future | ||
Derivative [Line Items] | ||
Assets | 87 | 0 |
Liabilities | (30,460) | 0 |
Derivative, Notional Amount | $ 2,864,672 | $ 0 |
Derivative Instruments (Offsett
Derivative Instruments (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Derivatives Assets | ||
Gross Amounts of Recognized Financial Instruments | $ 6,891,274 | $ 397,546 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (6,666,433) | (379,399) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 224,841 | 18,147 |
Financial Instruments/Collateral | 0 | (14,572) |
Net Amount | 224,841 | 3,575 |
Securities Purchased under Agreements to Resell | ||
Gross Amounts of Recognized Financial Instruments | 50,000 | 0 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Consolidated Statement of Financial Position | 50,000 | 0 |
Financial Instruments/Collateral | (50,000) | 0 |
Net Amount | 0 | 0 |
Total Assets | ||
Gross Amounts of Recognized Financial Instruments | 6,941,274 | 397,546 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (6,666,433) | (379,399) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 274,841 | 18,147 |
Financial Instruments/Collateral | (50,000) | (14,572) |
Net Amount | 224,841 | 3,575 |
Derivatives Liabilities | ||
Gross Amounts of Recognized Financial Instruments | 11,754,791 | 265,826 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (11,724,418) | (265,826) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 30,373 | 0 |
Financial Instruments/Collateral | (30,373) | 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 | 11,754,791 | 265,826 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (11,724,418) | (265,826) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 30,373 | 0 |
Financial Instruments/Collateral | (30,373) | 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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | $ (5,007,888) | $ (1,395) | $ (5,054,459) | $ 15,709 |
Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 5,223 | 2,710 | 10,037 | 8,082 |
Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 10,095 | (6,061) | 11,202 | (872) |
AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 19,968 | (39,657) | 40,328 | 28,085 |
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 | 928 | 70 | 836 | 797 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 5,223 | 2,710 | 10,037 | 8,082 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 10,053 | (5,994) | 11,174 | (853) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 19,968 | (39,657) | 40,328 | 28,085 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate | Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 2 | (44) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 12 | 11 | 35 | 9 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 0 | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate | AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | (20) | (15) | (119) | 313 |
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 | 928 | 70 | 834 | 841 |
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 | 5,211 | 2,699 | 10,002 | 8,073 |
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 | 10,053 | (5,994) | 11,174 | (853) |
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 | 19,988 | (39,642) | 40,447 | 27,772 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | (5,008,816) | (1,465) | (5,055,295) | 14,912 |
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 | 42 | (67) | 28 | (19) |
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 | (283,767) | (4,439) | (304,420) | 25,270 |
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 | 1,428 | (1,557) | 2,261 | (531) |
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 | 35,346 | (7,669) | 38,437 | 7,004 |
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 | 42 | (67) | 28 | (19) |
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 | (190) | (4) | (202) | (229) |
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 | (104,815) | 30,813 | (69,558) | (1,305) |
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 | (4,656,818) | (18,609) | (4,721,813) | (15,297) |
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) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Cash flow hedgers in AOCI | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |
Balance, beginning | $ (8,112) |
Amount Recorded in AOCI | 62,375 |
Amounts reclassified into current period earnings | (22,047) |
Balance, ending | 32,216 |
Interest Rate | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |
Amount Recorded in AOCI | (82) |
Amounts reclassified into current period earnings | (37) |
Currency/Interest Rate | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |
Amount Recorded in AOCI | 62,457 |
Amounts reclassified into current period earnings | $ (22,010) |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 9 | |
Credit Default Swaps Referencing Indices, Sell Protection | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 100 | $ 0 |
Credit Risk Derivatives, at Fair Value, Net | 9 | 0 |
Credit Default Swaps Referencing Indices, Sell Protection | NAIC 6 | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 100 | |
Credit Default Swap, Buying Protection | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 0 | 2 |
Credit Risk Derivatives, at Fair Value, Net | 0 | 0 |
Future Policy Benefits | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net | (9,208) | (13,228) |
Reinsurance Recoverables | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net | 940 | 13,240 |
Policyholders' account balances | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net | $ (1,154) | $ (1,155) |
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 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | $ 10,702,155 | $ 7,012,631 | |
Fixed maturities, trading | 3,751,472 | 82,482 | |
Equity securities | 53,178 | 108,457 | |
Other invested assets | 1,252,522 | 520,955 | |
Reinsurance recoverables | 30,904,877 | $ 42,956,000 | 48,367,096 |
Receivables from parent and affiliates | 361,494 | 280,000 | 266,473 |
Separate account assets | 146,825,583 | 150,165,000 | 145,740,422 |
TOTAL ASSETS | 206,553,592 | 207,908,000 | 208,308,100 |
Future policy benefits | 27,817,818 | 27,399,000 | 32,889,181 |
Payables to parent and affiliates | 133,353 | 176,000 | 75,990 |
Other Liabilities | 1,692,610 | 1,760,000 | 1,694,492 |
Total liabilities | 201,191,641 | $ 203,829,000 | 204,260,384 |
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 | 9,208,000 | 13,228,000 | |
Embedded Derivative, Fair Value of Embedded Derivative Gross Asset | 616,000 | 483,000 | |
Embedded Derivative, Fair Value of Embedded Derivative Gross Liability | 9,824,000 | 13,711,000 | |
Fair Value, Measurements, Recurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 10,702,155 | 7,012,631 | |
Fixed maturities, trading | 3,751,472 | 82,482 | |
Equity securities | 53,178 | 108,457 | |
Short-term Investments | 84,240 | 49,997 | |
Cash equivalents | 734,205 | 397,326 | |
Other invested assets | 224,841 | 18,147 | |
Reinsurance recoverables | 939,489 | 13,239,539 | |
Receivables from parent and affiliates | 164,293 | 111,970 | |
Subtotal excluding separate account assets | 16,653,873 | 21,020,549 | |
Separate account assets | 141,251,611 | 140,583,009 | |
TOTAL ASSETS | 157,905,484 | 161,603,558 | |
Future policy benefits | 9,208,188 | 13,227,814 | |
Policyholders’ account balances | 1,154,423 | 1,155,274 | |
Payables to parent and affiliates | 0 | 0 | |
Other Liabilities | 30,373 | 0 | |
Total liabilities | 10,392,984 | 14,383,088 | |
Asset Netting | (6,666,433) | (379,399) | |
Liability Netting | (11,724,418) | (265,826) | |
Netting | 5,058,000 | (113,600) | |
Fair Value, Measurements, Recurring | Other invested assets | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Asset Netting | (6,666,433) | (379,399) | |
Fair Value, Measurements, Recurring | Payables to parent and affiliates | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Liability Netting | (11,721,872) | (265,826) | |
Fair Value, Measurements, Recurring | Other Liabilities | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Liability Netting | (2,546) | 0 | |
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 | 380,930 | 77,855 | |
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 | 529,390 | 517,951 | |
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 | 298,310 | 250,855 | |
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 | 4,420,329 | 2,929,434 | |
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 | 1,501,047 | 1,012,056 | |
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 | 794,336 | 320,730 | |
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 | 1,941,683 | 1,091,930 | |
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 | 338,481 | 237,638 | |
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 | 476,560 | 520,947 | |
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 | 21,089 | 53,235 | |
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 | 135 | 100,268 | |
Short-term Investments | 39,997 | 49,997 | |
Cash equivalents | 528,975 | 49,996 | |
Other invested assets | 143,289 | 198 | |
Reinsurance recoverables | 0 | 0 | |
Receivables from parent and affiliates | 0 | 0 | |
Subtotal excluding separate account assets | 712,396 | 200,459 | |
Separate account assets | 52,942 | 0 | |
TOTAL ASSETS | 765,338 | 200,459 | |
Future policy benefits | 0 | 0 | |
Policyholders’ account balances | 0 | 0 | |
Payables to parent and affiliates | 0 | 0 | |
Other Liabilities | 32,919 | 0 | |
Total liabilities | 32,919 | 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 | 10,331,038 | 6,780,627 | |
Fixed maturities, trading | 3,751,472 | 81,727 | |
Equity securities | 40,687 | 300 | |
Short-term Investments | 42,553 | 0 | |
Cash equivalents | 204,000 | 347,330 | |
Other invested assets | 6,747,985 | 397,348 | |
Reinsurance recoverables | 0 | 0 | |
Receivables from parent and affiliates | 164,293 | 111,970 | |
Subtotal excluding separate account assets | 21,282,028 | 7,719,302 | |
Separate account assets | 141,198,669 | 140,583,009 | |
TOTAL ASSETS | 162,480,697 | 148,302,311 | |
Future policy benefits | 0 | 0 | |
Policyholders’ account balances | 0 | 0 | |
Payables to parent and affiliates | 11,721,872 | 265,826 | |
Other Liabilities | 0 | 0 | |
Total liabilities | 11,721,872 | 265,826 | |
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 | 325,930 | 22,855 | |
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 | 529,390 | 517,951 | |
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 | 298,158 | 250,692 | |
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 | 4,420,329 | 2,929,431 | |
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 | 1,422,947 | 977,423 | |
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 | 785,394 | 311,407 | |
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 | 1,746,088 | 961,113 | |
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 | 305,153 | 235,573 | |
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 | 476,560 | 520,947 | |
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 | 21,089 | 53,235 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 371,117 | 232,004 | |
Fixed maturities, trading | 0 | 755 | |
Equity securities | 12,356 | 7,889 | |
Short-term Investments | 1,690 | 0 | |
Cash equivalents | 1,230 | 0 | |
Other invested assets | 0 | 0 | |
Reinsurance recoverables | 939,489 | 13,239,539 | |
Receivables from parent and affiliates | 0 | 0 | |
Subtotal excluding separate account assets | 1,325,882 | 13,480,187 | |
Separate account assets | 0 | 0 | |
TOTAL ASSETS | 1,325,882 | 13,480,187 | |
Future policy benefits | 9,208,188 | 13,227,814 | |
Policyholders’ account balances | 1,154,423 | 1,155,274 | |
Payables to parent and affiliates | 0 | 0 | |
Other Liabilities | 0 | 0 | |
Total liabilities | 10,362,611 | 14,383,088 | |
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 | 55,000 | 55,000 | |
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 | 152 | 163 | |
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 | 0 | 3 | |
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 | 78,100 | 34,633 | |
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 | 8,942 | 9,323 | |
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 | 195,595 | 130,817 | |
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 | 33,328 | 2,065 | |
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 | 0 | 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 | 78,000 | 77,000 | |
Separate Account Assets | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value investment measured at NAV per share | $ 5,574,000 | $ 5,157,000 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities (Quantitative Info for Level 3 Inputs) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | |
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Corporate securities | $ 49,875 | $ 105,508 | |
Future policy benefits | 27,817,818 | 32,889,181 | $ 27,399,000 |
Fair Value, Measurements, Recurring | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Future policy benefits | 9,208,188 | 13,227,814 | |
Policyholders’ account balances | $ 1,154,423 | 1,155,274 | |
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 | $ 9,208,188 | 13,227,814 | |
Policyholders’ account balances | $ 1,154,423 | $ 1,155,274 | |
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 | 0.05% | 0.06% | |
Utilization rate | 39.00% | 39.00% | |
Withdrawal rate (greater than maximum range) | 76.00% | 76.00% | |
Mortality rate | 0.00% | 0.00% | |
Equity volatility curve | 17.00% | 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% | 1.00% | |
Spread over LIBOR | 0.05% | 0.06% | |
Mortality rate | 0.00% | 0.00% | |
Equity volatility curve | 13.00% | 15.00% | |
Level 3 | Internal | Minimum | Discounted cash flow | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Discount Rate | 1.44% | 0.99% | |
Level 3 | Internal | Minimum | Market comparables | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
EBITDA multiples | 3.8 | ||
Level 3 | Internal | Minimum | Cost approach | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Liquidation value | 62.58% | ||
Level 3 | Internal | Maximum | Discounted cash flow | Future policy benefits | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Lapse rate | 20.00% | 20.00% | |
Spread over LIBOR | 1.05% | 1.17% | |
Utilization rate | 96.00% | 96.00% | |
Withdrawal rate (greater than maximum range) | 100.00% | 100.00% | |
Mortality rate | 15.00% | 15.00% | |
Equity volatility curve | 26.00% | 26.00% | |
Level 3 | Internal | Maximum | Discounted cash flow | Policyholders' account balances | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Lapse rate | 6.00% | 6.00% | |
Spread over LIBOR | 1.07% | 1.17% | |
Mortality rate | 23.00% | 24.00% | |
Equity volatility curve | 30.00% | 30.00% | |
Level 3 | Internal | Maximum | Discounted cash flow | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Discount Rate | 12.89% | 11.38% | |
Level 3 | Internal | Maximum | Market comparables | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
EBITDA multiples | 10.3 | ||
Level 3 | Internal | Maximum | Cost approach | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Liquidation value | 62.58% | ||
Level 3 | Internal | Weighted Average | Discounted cash flow | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Discount Rate | 3.63% | 3.44% | |
Level 3 | Internal | Weighted Average | Market comparables | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
EBITDA multiples | 7.6 | ||
Level 3 | Internal | Weighted Average | Cost approach | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Liquidation value | 62.58% | ||
Level 3 | Internal | Fair Value, Measurements, Recurring | Future policy benefits | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Future policy benefits | $ 9,208,188 | $ 13,227,814 | |
Level 3 | Internal | Fair Value, Measurements, Recurring | Policyholders' account balances | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Policyholders’ account balances | 1,154,423 | 1,155,274 | |
Level 3 | Internal | Fair Value, Measurements, Recurring | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Corporate securities | 217,167 | 151,554 | |
Level 3 | Internal | Fair Value, Measurements, Recurring | Reinsurance recoverables | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Reinsurance recoverables | $ 939,489 | $ 13,239,539 |
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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Equity securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | $ 8,005 | $ 9,150 | $ 7,889 | $ 9,898 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 3,874 | 0 | 3,874 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 12,356 | 10,912 | 12,356 | 10,912 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 477 | 1,762 | 593 | 1,014 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 477 | 1,762 | 593 | 1,014 |
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 | 477 | 1,762 | 593 | 1,014 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 477 | 1,762 | 593 | 1,014 |
Equity securities | Included in other comprehensive income (loss) | ||||
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 | 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 | 0 | 0 | 0 | 4 |
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 | 0 | 0 | 0 | 0 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | (4) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | (4) |
Other invested assets | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | (4) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 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 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
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 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 1,690 | 0 | 1,690 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 1,690 | 0 | 1,690 | 0 |
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 | 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 |
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 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
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 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 1,230 | 0 | 1,230 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 1,230 | 0 | 1,230 | 0 |
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 |
Cash equivalents | 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 |
Cash equivalents | 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 |
Cash equivalents | Included in other comprehensive income (loss) | ||||
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 |
Cash equivalents | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Reinsurance recoverables | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 9,275,523 | 19,028,138 | 13,239,539 | 8,539,671 |
Purchases | 36,892 | 278,413 | 592,758 | 815,920 |
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 | 939,489 | 16,675,343 | 939,489 | 16,675,343 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (8,372,926) | (2,631,208) | (12,892,808) | 7,319,752 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (32,262) | (2,473,607) | (524,521) | 7,534,062 |
Reinsurance recoverables | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (8,372,926) | (2,631,208) | (12,892,808) | 7,319,752 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (32,262) | (2,473,607) | (524,521) | 7,534,062 |
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 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
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 | 0 | 0 | 0 | 3,135 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | (3,158) |
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 | 0 | 0 | 0 | 0 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 23 |
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 | 0 |
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 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Receivables from parents and affiliates | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 23 |
Future policy benefits | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | (9,263,516) | (19,014,066) | (13,227,814) | (8,529,566) |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | (276,639) | (276,460) | (828,542) | (810,047) |
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 | (9,208,188) | (16,661,255) | (9,208,188) | (16,661,255) |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 331,967 | 2,629,271 | 4,848,168 | (7,321,642) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 218,025 | 2,475,638 | 4,365,984 | (7,535,951) |
Future policy benefits | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 331,967 | 2,629,271 | 4,848,168 | (7,321,642) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 218,025 | 2,475,638 | 4,365,984 | (7,535,951) |
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 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
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 | (1,156,610) | (1,045,483) | (1,155,274) | (962,351) |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | (3,202) | (29,368) | 0 | (152,460) |
Settlements | 0 | 0 | 32,129 | 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 | (1,154,423) | (1,076,904) | (1,154,423) | (1,076,904) |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 5,389 | (2,053) | (31,278) | 37,907 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 21,559 | 11,350 | 21,234 | 53,610 |
Policyholders' account balances | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 5,389 | (2,053) | (31,278) | 37,907 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 21,559 | 11,350 | 21,234 | 53,610 |
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 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
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 |
Available-for-sale | Fixed maturities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (1,656) | (1,084) | 152 | (5,224) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (1,678) | (1,086) | 121 | (4,780) |
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 | (5,768) | 5,003 | (14,678) | 7,034 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (5,486) | 5,004 | (14,407) | 7,415 |
Available-for-sale | Fixed maturities | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 185 | 22 | 235 | 122 |
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 | 55,000 | 44,792 | 55,000 | 38,671 |
Purchases | 0 | 3,667 | 0 | 9,788 |
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 | 55,000 | 48,459 | 55,000 | 48,459 |
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 | 156 | 161 | 163 | 163 |
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 | 152 | 164 | 152 | 164 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (4) | 3 | (11) | 1 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (5) | 2 | (13) | 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 | 170,830 | 156,972 | 174,776 | 50,083 |
Purchases | 3,173 | 2,436 | 5,515 | 11,100 |
Sales | 0 | 0 | 0 | (3,680) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (7,907) | (538) | (12,280) | (6,873) |
Other | 119,218 | (1,914) | 119,218 | (1,914) |
Transfers into Level 3 | 4,106 | 0 | 9,223 | 109,772 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 282,637 | 160,897 | 282,637 | 160,897 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (6,783) | 3,941 | (13,815) | 2,409 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (6,710) | 3,920 | (13,811) | 3,113 |
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 | 27,179 | 1,507 | 2,065 | 2,001 |
Purchases | 12,500 | 1,299 | 38,450 | 7,444 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (308) | (262) | (1,131) | (790) |
Other | 19,859 | 0 | 19,859 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | (25,450) | 0 | (25,450) | (5,636) |
Fair Value, end of period | 33,328 | 2,541 | 33,328 | 2,541 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (452) | (3) | (465) | (478) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (449) | (4) | (462) | (478) |
Trading | Fixed maturities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 801 | 644 | 755 | 668 |
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 | (801) | 0 | (801) | 0 |
Fair Value, end of period | 0 | 698 | 0 | 698 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 54 | 46 | 30 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 55 | 46 | 30 |
Trading | Fixed maturities | 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 |
Trading | Fixed maturities | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 54 | 46 | 30 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 55 | 46 | 30 |
Trading | Fixed maturities | Included in other comprehensive income (loss) | ||||
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 |
Trading | Fixed maturities | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | $ 0 | $ 0 | $ 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 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
ASSETS | |||
Policy loans | $ 1,324,335 | $ 1,323,681 | |
Cash and cash equivalents | 1,100,935 | $ 238,000 | 426,979 |
Accrued investment income | 139,355 | 97,000 | 93,613 |
Reinsurance recoverables | 30,904,877 | 42,956,000 | 48,367,096 |
Receivables from parent and affiliates | 361,494 | 280,000 | 266,473 |
Liabilities: | |||
Cash collateral for loaned securities | 0 | $ 3,000 | 2,725 |
Fair Value | |||
ASSETS | |||
Commercial mortgage and other loans | 2,120,345 | 1,359,422 | |
Policy loans | 1,324,335 | 1,323,681 | |
Cash and cash equivalents | 366,730 | 29,653 | |
Accrued investment income | 139,355 | 93,613 | |
Reinsurance recoverables | 29,201 | 227,993 | |
Receivables from parent and affiliates | 197,201 | 154,503 | |
Other assets | 81,126 | 27,120 | |
Total assets | 4,258,293 | 3,215,985 | |
Liabilities: | |||
Policyholders’ account balances - investment contracts | 1,701,643 | 1,714,576 | |
Cash collateral for loaned securities | 0 | 2,725 | |
Long-term debt to affiliates | 321,828 | 0 | |
Payables to parent and affiliates | 133,353 | 75,990 | |
Other liabilities | 498,884 | 415,889 | |
Total liabilities | 2,655,708 | 2,209,180 | |
Carrying Amount | |||
ASSETS | |||
Commercial mortgage and other loans | 2,042,654 | 1,288,846 | |
Policy loans | 1,324,335 | 1,323,681 | |
Cash and cash equivalents | 366,730 | 29,653 | |
Accrued investment income | 139,355 | 93,613 | |
Reinsurance recoverables | 27,971 | 217,637 | |
Receivables from parent and affiliates | 197,201 | 154,503 | |
Other assets | 81,126 | 27,120 | |
Total assets | 4,179,372 | 3,135,053 | |
Liabilities: | |||
Policyholders’ account balances - investment contracts | 1,695,222 | 1,704,220 | |
Cash collateral for loaned securities | 0 | 2,725 | |
Long-term debt to affiliates | 322,631 | 0 | |
Payables to parent and affiliates | 133,353 | 75,990 | |
Other liabilities | 498,884 | 415,889 | |
Total liabilities | 2,650,090 | 2,198,824 | |
Level 1 | Fair Value | |||
ASSETS | |||
Commercial mortgage and other loans | 0 | 0 | |
Policy loans | 0 | 0 | |
Cash and cash equivalents | 316,730 | 29,653 | |
Accrued investment income | 0 | 0 | |
Reinsurance recoverables | 0 | 0 | |
Receivables from parent and affiliates | 0 | 0 | |
Other assets | 0 | 0 | |
Total assets | 316,730 | 29,653 | |
Liabilities: | |||
Policyholders’ account balances - investment contracts | 0 | 0 | |
Cash collateral for loaned securities | 0 | 0 | |
Long-term debt to affiliates | 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 | 50,000 | 0 | |
Accrued investment income | 139,355 | 93,613 | |
Reinsurance recoverables | 0 | 0 | |
Receivables from parent and affiliates | 197,201 | 154,503 | |
Other assets | 81,126 | 27,120 | |
Total assets | 467,682 | 275,236 | |
Liabilities: | |||
Policyholders’ account balances - investment contracts | 1,404,725 | 1,428,043 | |
Cash collateral for loaned securities | 0 | 2,725 | |
Long-term debt to affiliates | 321,828 | 0 | |
Payables to parent and affiliates | 133,353 | 75,990 | |
Other liabilities | 464,793 | 415,889 | |
Total liabilities | 2,324,699 | 1,922,647 | |
Level 3 | Fair Value | |||
ASSETS | |||
Commercial mortgage and other loans | 2,120,345 | 1,359,422 | |
Policy loans | 1,324,335 | 1,323,681 | |
Cash and cash equivalents | 0 | 0 | |
Accrued investment income | 0 | 0 | |
Reinsurance recoverables | 29,201 | 227,993 | |
Receivables from parent and affiliates | 0 | 0 | |
Other assets | 0 | 0 | |
Total assets | 3,473,881 | 2,911,096 | |
Liabilities: | |||
Policyholders’ account balances - investment contracts | 296,918 | 286,533 | |
Cash collateral for loaned securities | 0 | 0 | |
Long-term debt to affiliates | 0 | 0 | |
Payables to parent and affiliates | 0 | 0 | |
Other liabilities | 34,091 | 0 | |
Total liabilities | $ 331,009 | $ 286,533 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2018 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense (benefit) | $ (744,016) | $ (117,796) | $ (782,332) | $ (174,314) | |
Effective Income Tax Rate, Percent | 24.73% | (206.21%) | |||
Federal Statutory Income Tax Rate, Percent | 35.00% | 21.00% | |||
CARES Act NOL Carryback | $ 48,000 |
Reinsurance (Reinsurance amount
Reinsurance (Reinsurance amounts included in the Statements of Financial Position) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Effects of Reinsurance [Line Items] | |||
Reinsurance recoverables | $ 30,904,877 | $ 42,956,000 | $ 48,367,096 |
Policy loans | 1,324,335 | 1,323,681 | |
Deferred policy acquisition costs | 6,210,116 | 2,790,000 | 2,433,936 |
Deferred sales inducements | 378,870 | 0 | 0 |
Other assets | 356,981 | 403,000 | 417,508 |
Future policy benefits | 27,817,818 | 27,399,000 | 32,889,181 |
Other liabilities | 1,692,610 | $ 1,760,000 | 1,694,492 |
Impacts of Reinsurance | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance recoverables | 30,904,877 | 48,367,096 | |
Policy loans | (157,409) | (153,869) | |
Deferred policy acquisition costs | (3,039,546) | (6,574,020) | |
Deferred sales inducements | (38,335) | (445,493) | |
Other assets | 120,985 | 233,364 | |
Policyholders’ account balances | 4,620,765 | 4,773,439 | |
Future policy benefits | 5,169,657 | 5,069,353 | |
Other liabilities | 1,041,919 | 1,099,318 | |
Unaffiliated activity | |||
Effects of Reinsurance [Line Items] | |||
Other assets | 0 | 0 | |
Future policy benefits | 0 | 0 | |
Other liabilities | $ 52,000 | $ 43,000 |
Reinsurance (Reinsurance Recove
Reinsurance (Reinsurance Recoverable by Counterparty) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | $ 30,904,877 | $ 42,956,000 | $ 48,367,096 |
PAR U | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | 13,380,530 | 13,352,845 | |
PALAC | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | 0 | 15,941,123 | |
PURC | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | 5,652,790 | 5,368,831 | |
PARCC | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | 2,464,059 | 2,572,428 | |
GUL Re | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | 2,652,663 | 2,573,609 | |
PAR Term | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | 1,974,167 | 1,913,265 | |
Prudential Insurance | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | 2,006,562 | 2,421,226 | |
Prudential of Taiwan | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | 0 | 1,649,998 | |
Term Re | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | 1,900,805 | 1,766,978 | |
DART | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | 624,071 | 502,770 | |
Unaffiliated | |||
Effects of Reinsurance [Line Items] | |||
Total reinsurance recoverables | $ 249,230 | $ 304,023 |
Reinsurance (Reinsurance amou_2
Reinsurance (Reinsurance amounts included in the Statement of Operations and Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Premiums: | ||||
Direct | $ 487,010 | $ 475,017 | $ 1,459,895 | $ 1,435,080 |
Assumed | 41 | 45 | 125 | 140 |
Ceded | (435,514) | (450,755) | (1,319,216) | (1,373,498) |
Net premiums | 51,537 | 24,307 | 140,804 | 61,722 |
Policy charges and fee income: | ||||
Direct | 919,203 | 882,373 | 2,722,548 | 2,600,632 |
Assumed | 146,257 | 131,877 | 432,907 | 395,960 |
Ceded | (455,359) | (863,170) | (2,213,289) | (2,544,508) |
Net policy charges and fee income | 610,101 | 151,080 | 942,166 | 452,084 |
Net investment income: | ||||
Direct | 180,642 | 95,266 | 377,942 | 261,304 |
Assumed | (55) | 390 | 675 | 1,184 |
Ceded | (1,477) | (1,664) | (5,340) | (5,453) |
Net investment income | 179,110 | 93,992 | 373,277 | 257,035 |
Asset administration fees: | ||||
Direct | 101,105 | 91,953 | 296,542 | 265,612 |
Assumed | 0 | 0 | 0 | 0 |
Ceded | (9,167) | (86,989) | (192,117) | (251,958) |
Net asset administration fees | 91,938 | 4,964 | 104,425 | 13,654 |
Other income: | ||||
Direct | 24,609 | 28,529 | 66,286 | 49,817 |
Assumed | (6) | (112) | (66) | (141) |
Ceded | 35,687 | 3 | 35,793 | 128 |
Amortization of reinsurance income | 1,119 | 1,162 | 3,270 | 3,506 |
Net other income | 61,409 | 29,582 | 105,283 | 53,310 |
Realized investment gains (losses), net: | ||||
Direct | 3,362,148 | 2,646,206 | 7,864,422 | (7,254,543) |
Assumed | 0 | 0 | 0 | 0 |
Ceded | (8,370,760) | (2,647,753) | (12,918,928) | 7,262,660 |
Realized investment gains (losses), net | (5,008,612) | (1,547) | (5,054,506) | 8,117 |
Policyholders’ benefits (including change in reserves): | ||||
Direct | 975,500 | 879,729 | 2,775,018 | 2,691,447 |
Assumed | 222,418 | 196,502 | 639,927 | 766,272 |
Ceded | (811,915) | (1,020,403) | (2,856,953) | (3,229,715) |
Net policyholders’ benefits (including change in reserves) | 386,003 | 55,828 | 557,992 | 228,004 |
Interest credited to policyholders’ account balances: | ||||
Direct | 150,269 | 148,411 | 430,494 | 420,163 |
Assumed | 30,540 | 33,974 | 95,658 | 102,230 |
Ceded | (485,215) | (130,119) | (726,988) | (348,664) |
Net interest credited to policyholders’ account balances | (304,406) | 52,266 | (200,836) | 173,729 |
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization | (1,398,529) | (448,254) | (2,159,809) | (1,330,501) |
Unaffiliated activity | ||||
Premiums: | ||||
Assumed | 0 | 0 | 100 | 200 |
Ceded | (6,100) | (2,400) | (19,700) | (7,500) |
Policy charges and fee income: | ||||
Ceded | (24,000) | (18,000) | (54,000) | (39,000) |
Other income: | ||||
Assumed | 0 | 100 | 0 | 100 |
Realized investment gains (losses), net: | ||||
Ceded | (10,000) | (68,000) | (120,000) | 160,000 |
Policyholders’ benefits (including change in reserves): | ||||
Assumed | 100 | 100 | 400 | 700 |
Ceded | $ (38,000) | $ (20,000) | $ (169,000) | $ (44,000) |
Reinsurance (Life Insurance In
Reinsurance (Life Insurance In Force) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Reinsurance Disclosures [Abstract] | ||
Direct gross life insurance face amount in force | $ 1,071,060,317 | $ 1,031,639,923 |
Assumed gross life insurance face amount in force | 38,117,216 | 39,135,248 |
Reinsurance ceded | (991,290,617) | (981,522,009) |
Net life insurance face amount in force | $ 117,886,916 | $ 89,253,162 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - USD ($) $ in Thousands | Jul. 01, 2019 | Dec. 31, 2013 | Jul. 01, 2012 | Dec. 31, 2010 | Dec. 31, 2009 | Jan. 31, 2001 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2016 | Dec. 31, 2013 | Dec. 31, 2017 | Dec. 31, 2013 | Jun. 30, 2021 | Dec. 31, 2020 |
Effects of Reinsurance [Line Items] | |||||||||||||||||||
Ceded Premiums | $ (435,514) | $ (450,755) | $ (1,319,216) | $ (1,373,498) | |||||||||||||||
Reinsurance recoverables | 30,904,877 | 30,904,877 | $ 42,956,000 | $ 48,367,096 | |||||||||||||||
PAR U | |||||||||||||||||||
Effects of Reinsurance [Line Items] | |||||||||||||||||||
Reinsurance recoverables | 13,380,530 | 13,380,530 | 13,352,845 | ||||||||||||||||
PURC | |||||||||||||||||||
Effects of Reinsurance [Line Items] | |||||||||||||||||||
Reinsurance recoverables | 5,652,790 | 5,652,790 | 5,368,831 | ||||||||||||||||
PARCC | |||||||||||||||||||
Effects of Reinsurance [Line Items] | |||||||||||||||||||
Reinsurance recoverables | 2,464,059 | 2,464,059 | 2,572,428 | ||||||||||||||||
GUL Re | |||||||||||||||||||
Effects of Reinsurance [Line Items] | |||||||||||||||||||
Reinsurance recoverables | 2,652,663 | 2,652,663 | 2,573,609 | ||||||||||||||||
PAR Term | |||||||||||||||||||
Effects of Reinsurance [Line Items] | |||||||||||||||||||
Reinsurance recoverables | 1,974,167 | 1,974,167 | 1,913,265 | ||||||||||||||||
Prudential of Taiwan | |||||||||||||||||||
Effects of Reinsurance [Line Items] | |||||||||||||||||||
Reinsurance recoverables | 0 | 0 | 1,649,998 | ||||||||||||||||
Term Re | |||||||||||||||||||
Effects of Reinsurance [Line Items] | |||||||||||||||||||
Reinsurance recoverables | 1,900,805 | 1,900,805 | 1,766,978 | ||||||||||||||||
Prudential Insurance | |||||||||||||||||||
Effects of Reinsurance [Line Items] | |||||||||||||||||||
Reinsurance recoverables | 2,006,562 | 2,006,562 | 2,421,226 | ||||||||||||||||
DART | |||||||||||||||||||
Effects of Reinsurance [Line Items] | |||||||||||||||||||
Reinsurance recoverables | 624,071 | 624,071 | $ 502,770 | ||||||||||||||||
Union Hamilton Reinsurance, Ltd. | |||||||||||||||||||
Effects of Reinsurance [Line Items] | |||||||||||||||||||
Reinsurance recoverables | $ 3,200,000 | $ 3,200,000 | |||||||||||||||||
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 | 100.00% | 90.00% | |||||||||||||||||
Ceded Premiums | $ (476,000) | ||||||||||||||||||
Ceded Expenses | $ (409,000) | ||||||||||||||||||
Affiliated Entity | GUL Re | |||||||||||||||||||
Effects of Reinsurance [Line Items] | |||||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 30.00% | 95.00% | |||||||||||||||||
Affiliated Entity | PAR Term | |||||||||||||||||||
Effects of Reinsurance [Line Items] | |||||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 100.00% | 95.00% | |||||||||||||||||
Ceded Premiums | $ (150,000) | ||||||||||||||||||
Ceded Expenses | $ (115,000) | ||||||||||||||||||
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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 435,000 | $ 546,128 | ||
Income tax benefit (expense) | 15,007 | $ (10,954) | 43,342 | $ (51,058) |
Ending Balance | 380,664 | 380,664 | ||
Foreign Currency Translation Adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (7,797) | (7,917) | ||
Change in OCI before reclassifications | (3,904) | (8,007) | ||
Amounts reclassified from AOCI | 0 | 0 | ||
Income tax benefit (expense) | 313 | (2,189) | ||
Ending Balance | (11,388) | (18,113) | (11,388) | (18,113) |
Net unrealized investment gains (losses) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 553,925 | 289,359 | ||
Change in OCI before reclassifications | (181,041) | 233,906 | ||
Amounts reclassified from AOCI | (23,861) | (1,200) | ||
Income tax benefit (expense) | 43,029 | (48,869) | ||
Ending Balance | 392,052 | 473,196 | 392,052 | 473,196 |
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 546,128 | 281,442 | ||
Change in OCI before reclassifications | (184,945) | 225,899 | ||
Amounts reclassified from AOCI | (23,861) | (1,200) | ||
Income tax benefit (expense) | 43,342 | (51,058) | ||
Ending Balance | 380,664 | 455,083 | 380,664 | 455,083 |
Cash flow hedges | Net unrealized investment gains (losses) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (8,000) | 26,000 | ||
Ending Balance | $ 32,000 | $ 54,000 | $ 32,000 | $ 54,000 |
Equity (Reclassification out of
Equity (Reclassification out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net unrealized investment gains (losses) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | $ (23,861) | $ (1,200) | ||
Total reclassifications for the period | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | (23,861) | (1,200) | ||
Amounts reclassified from AOCI | Net unrealized investment gains (losses) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | $ 19,388 | $ (3,302) | 23,861 | 1,200 |
Amounts reclassified from AOCI | Total reclassifications for the period | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | 19,388 | (3,302) | 23,861 | 1,200 |
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) | 3,183 | (88) | 1,814 | (6,826) |
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) | $ 16,205 | $ (3,214) | $ 22,047 | $ 8,026 |
Equity (Net Unrealized Investme
Equity (Net Unrealized Investment Gains (Losses) in AOCI on AFS Fixed Maturity Securities with Allowance for Credit Losses and All Other Investments) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | $ 546,128 |
Ending Balance | 380,664 |
Net Unrealized Investment Gains (Losses) on Available-for-Sale Fixed Maturity Securities on which an allowance for credit losses has been recognized | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | 0 |
Net investment gains (losses) on investments arising during the period | 623 |
Reclassification adjustment for (gains) losses included in net income | 0 |
Reclassification due to allowance for credit losses recorded during the period | 352 |
Impact of net unrealized investment (gains) losses | 0 |
Ending Balance | 975 |
Net Unrealized Investment Gains (Losses) on All Other Investments | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | 849,349 |
Net investment gains (losses) on investments arising during the period | (222,928) |
Reclassification adjustment for (gains) losses included in net income | (23,861) |
Reclassification due to allowance for credit losses recorded during the period | (352) |
Impact of net unrealized investment (gains) losses | 0 |
Ending Balance | 602,208 |
Deferred Policy Acquisition Costs and Other Costs | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | 1,200,048 |
Net investment gains (losses) on investments arising during the period | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 |
Reclassification due to allowance for credit losses recorded during the period | 0 |
Impact of net unrealized investment (gains) losses | (279,391) |
Ending Balance | 920,657 |
Future Policy Benefits and Policyholders’ Account Balances and other liabilities | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (1,348,231) |
Net investment gains (losses) on investments arising during the period | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 |
Reclassification due to allowance for credit losses recorded during the period | 0 |
Impact of net unrealized investment (gains) losses | 320,655 |
Ending Balance | (1,027,576) |
Income Tax Benefit (Expense) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (147,241) |
Net investment gains (losses) on investments arising during the period | 46,684 |
Reclassification adjustment for (gains) losses included in net income | 5,011 |
Reclassification due to allowance for credit losses recorded during the period | 0 |
Impact of net unrealized investment (gains) losses | (8,666) |
Ending Balance | (104,212) |
Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | 553,925 |
Net investment gains (losses) on investments arising during the period | (175,621) |
Reclassification adjustment for (gains) losses included in net income | (18,850) |
Reclassification due to allowance for credit losses recorded during the period | 0 |
Impact of net unrealized investment (gains) losses | 32,598 |
Ending Balance | $ 392,052 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2021USD ($)policy | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Related Party Transaction [Line Items] | |||||||||
Commissions and fees | $ 610,101,000 | $ 151,080,000 | $ 942,166,000 | $ 452,084,000 | |||||
Other invested assets | 1,252,522,000 | $ 520,955,000 | 1,252,522,000 | $ 520,955,000 | |||||
Net investment income | 179,110,000 | 93,992,000 | 373,277,000 | 257,035,000 | |||||
Fee income from revenue sharing agreement | 91,938,000 | 4,964,000 | 104,425,000 | 13,654,000 | |||||
Accrued investment income | 139,355,000 | $ 97,000,000 | 93,613,000 | 139,355,000 | 93,613,000 | ||||
Debt Outstanding | 0 | 0 | |||||||
Prudential Insurance | |||||||||
Related Party Transaction [Line Items] | |||||||||
Contributed Capital | 3,813,000,000 | $ 106,000,000 | 175,000,000 | 75,000,000 | $ 325,000,000 | ||||
Return of Capital | $ 34,000,000 | 0 | |||||||
Dividends | 0 | 0 | |||||||
PALAC | |||||||||
Related Party Transaction [Line Items] | |||||||||
Market value of loan | 324,000,000 | 324,000,000 | |||||||
Premium | 24,000,000 | ||||||||
Prudential Insurance | |||||||||
Related Party Transaction [Line Items] | |||||||||
Stock option program plan expense | 0 | 400,000 | 400,000 | 900,000 | |||||
Deferred compensation program expense | 600,000 | 1,300,000 | 2,900,000 | 4,300,000 | |||||
Pension plan expense | 2,000,000 | 4,000,000 | 8,000,000 | 13,000,000 | |||||
Welfare plan expense | 3,000,000 | 5,000,000 | $ 9,000,000 | 14,000,000 | |||||
Defined contribution plan, employer matching contribution, percent (up to) | 4.00% | ||||||||
Defined contribution plan, cost recognized | 1,000,000 | 2,000,000 | $ 3,000,000 | 6,000,000 | |||||
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 | 5,112,000,000 | 4,757,000,000 | $ 5,112,000,000 | 4,757,000,000 | |||||
Fees related to Life Insurance, Corporate or Bank Owned, amount | 15,000,000 | 12,000,000 | 42,000,000 | 37,000,000 | |||||
Maximum amount of mortality risk | 3,500,000 | 3,500,000 | |||||||
Prudential Financial | |||||||||
Related Party Transaction [Line Items] | |||||||||
Company's share of corporate expenses | 17,000,000 | 19,000,000 | $ 49,000,000 | 44,000,000 | |||||
Number of Corporate Owned Life Insurance policies sold | policy | 1 | ||||||||
Affiliated Entity | |||||||||
Related Party Transaction [Line Items] | |||||||||
Net investment income | 900,000 | $ 900,000 | |||||||
Accrued interest receivable related to long-term notes receivable | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | |||||
Revenues related to long-term notes receivable | 1,000,000 | 1,000,000 | 3,000,000 | ||||||
Accrued investment income | 200,000 | 200,000 | |||||||
Line of credit facility, maximum borrowing capacity | 2,200,000,000 | 2,200,000,000 | |||||||
Interest expense related to loans payable | 200,000 | 100,000 | 200,000 | 700,000 | |||||
Affiliated Entity | PAD | |||||||||
Related Party Transaction [Line Items] | |||||||||
Commissions and fees | 98,000,000 | 115,000,000 | 291,000,000 | 413,000,000 | |||||
Affiliated Entity | ASTISI and PGIM Investments | |||||||||
Related Party Transaction [Line Items] | |||||||||
Fee income from revenue sharing agreement | 95,000,000 | 88,000,000 | 280,000,000 | 254,000,000 | |||||
Affiliated Entity | PGIM Investments | |||||||||
Related Party Transaction [Line Items] | |||||||||
Fee income from revenue sharing agreement | 4,000,000 | 3,000,000 | 11,000,000 | 8,000,000 | |||||
Affiliated Entity | PGIM | |||||||||
Related Party Transaction [Line Items] | |||||||||
Net investment income | 6,000,000 | 4,000,000 | 13,000,000 | 11,000,000 | |||||
Prudential Financial Joint Ventures | |||||||||
Related Party Transaction [Line Items] | |||||||||
Other invested assets | 590,000,000 | $ 111,000,000 | 590,000,000 | $ 111,000,000 | |||||
Net investment income | $ 20,000,000 | $ 7,000,000 | $ 27,000,000 | $ 5,000,000 |
Related Party Transactions (Aff
Related Party Transactions (Affiliated Notes Receivable) (Details) - Affiliated Entity - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Total notes receivable - affiliated | $ 164,293 | $ 111,970 |
U.S. Dollar fixed rate notes | ||
Related Party Transaction [Line Items] | ||
Total notes receivable - affiliated | $ 164,293 | $ 111,970 |
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 Transaction (Affi
Related Party Transaction (Affiliated Commercial Mortgage Loan) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Commercial Mortgage Loans | $ 2,042,654 | $ 1,288,846 |
Affiliated Entity | Commercial mortgage loans | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 4.58% | |
Commercial Mortgage Loans | $ 73,709 |
Related Party Transactions (A_2
Related Party Transactions (Affiliated Asset Transfers) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Related Party Transaction [Line Items] | ||||
Realized investment gains (losses) | $ (5,008,612) | $ (1,547) | $ (5,054,506) | $ 8,117 |
Affiliated Entity | Prudential Insurance March 2020 - Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 1,390 | 1,390 | ||
Book Value | 1,390 | 1,390 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | Prudential Insurance April 2020 - Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 61,953 | 61,953 | ||
Book Value | 59,659 | 59,659 | ||
APIC, Net of Tax Increase/(Decrease) | (1,812) | (1,812) | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | Prudential Insurance April 2020 - Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 3,485 | 3,485 | ||
Book Value | 3,320 | 3,320 | ||
APIC, Net of Tax Increase/(Decrease) | (130) | (130) | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | GA BV LLC July 2020 - Transfer Out | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 1,914 | 1,914 | ||
Book Value | 1,914 | 1,914 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | PALAC June 2021 - Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 40,284 | 40,284 | ||
Book Value | 40,284 | 40,284 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | Prudential Insurance September 2021 - Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 64,374 | 64,374 | ||
Book Value | 59,642 | 59,642 | ||
APIC, Net of Tax Increase/(Decrease) | (3,739) | (3,739) | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | Prudential Insurance September 2021 Sale | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 37,887 | 37,887 | ||
Book Value | 35,264 | 35,264 | ||
APIC, Net of Tax Increase/(Decrease) | 2,073 | 2,073 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | Hirakata LLC September 2021 - Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 13,944 | 13,944 | ||
Book Value | 13,944 | 13,944 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | Prudential Retirement Insurance and Annuity Co September 2021 - Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 120,256 | 120,256 | ||
Book Value | 120,256 | 120,256 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | Prudential Retirement Insurance and Annuity Co September 2021 - Sale | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 173,590 | 173,590 | ||
Book Value | 166,427 | 166,427 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 7,163 | |||
Affiliated Entity | Prudential Insurance September 2021 - Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 45,358 | 45,358 | ||
Book Value | 42,127 | 42,127 | ||
APIC, Net of Tax Increase/(Decrease) | (2,553) | (2,553) | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | Prudential Insurance September 2021 - Sale | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 22,796 | 22,796 | ||
Book Value | 21,780 | 21,780 | ||
APIC, Net of Tax Increase/(Decrease) | 802 | 802 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | Prudential Retirement Insurance and Annuity Co September 2021 - Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 29,483 | 29,483 | ||
Book Value | 29,483 | 29,483 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | Prudential Retirement Insurance and Annuity Co September 2021 - Sale | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 51,005 | 51,005 | ||
Book Value | 47,020 | 47,020 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 3,985 | |||
Affiliated Entity | Prudential Insurance September 2021 - Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 600 | 600 | ||
Book Value | 494 | 494 | ||
APIC, Net of Tax Increase/(Decrease) | (84) | (84) | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | Prudential Insurance September 2021 - Sale | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 335 | 335 | ||
Book Value | 175 | 175 | ||
APIC, Net of Tax Increase/(Decrease) | 127 | 127 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | Prudential Retirement Insurance and Annuity Co September 2021 - Purchase | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | (1,243) | (1,243) | ||
Book Value | (1,243) | (1,243) | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | Prudential Retirement Insurance and Annuity Co September 2021 - Sale | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 2,846 | 2,846 | ||
Book Value | 770 | 770 | ||
APIC, Net of Tax Increase/(Decrease) | $ 0 | 0 | ||
Realized investment gains (losses) | $ 2,076 |
Related Party Transactions Rela
Related Party Transactions Related Party Transactions (Debt Agreements) (Details) - Affiliated Entity $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Related Party Transaction [Line Items] | |
Short-term and Long-term debt | $ 322,631 |
Prudential Insurance Loan Issued 8/13/2021 | |
Related Party Transaction [Line Items] | |
Short-term and Long-term debt | $ 100,540 |
Interest Rates | 4.39% |
Prudential Insurance Loan Issued 8/13/2021 | |
Related Party Transaction [Line Items] | |
Short-term and Long-term debt | $ 30,162 |
Interest Rates | 4.39% |
Prudential Insurance Loan Issued 8/13/2021 | |
Related Party Transaction [Line Items] | |
Short-term and Long-term debt | $ 101,015 |
Interest Rates | 3.95% |
Prudential Insurance Loan Issued 8/13/2021 | |
Related Party Transaction [Line Items] | |
Short-term and Long-term debt | $ 40,406 |
Interest Rates | 3.95% |
Prudential Insurance Loan Issued 8/13/2021 | |
Related Party Transaction [Line Items] | |
Short-term and Long-term debt | $ 50,508 |
Interest Rates | 3.95% |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Jul. 31, 2017 | |
Commitments and Contingent Liabilities [Line Items] | ||||||
Litigation and regulatory matters loss contingency, range of possible loss, maximum (less than) | $ 100 | $ 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 | 20 | 20 | $ 30 | |||
Allowance for credit losses | 0 | 0 | 0 | |||
Change in allowance for credit losses | 0 | $ 0 | 0 | $ 0 | ||
Commitments | Investments | ||||||
Commitments and Contingent Liabilities [Line Items] | ||||||
Commitments to Purchase Investment (excluding Commercial Mortgage Loans) | 345 | 345 | $ 354 | |||
Purchase Commitment | ||||||
Commitments and Contingent Liabilities [Line Items] | ||||||
Change in allowance for credit losses | 0 | $ 0 | 0 | $ 0 | ||
Other Guarantees | ||||||
Commitments and Contingent Liabilities [Line Items] | ||||||
Recorded a liability associated with guarantee | $ 34 | $ 34 |