Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 11, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Transition Report | false | |
Entity File Number | 033-37587 | |
Entity Registrant Name | PRUCO LIFE INSURANCE CO | |
Entity Central Index Key | 0000777917 | |
Entity Incorporation, State or Country Code | AZ | |
Entity Tax Identification Number | 22-1944557 | |
Entity Address, Address Line One | 213 Washington Street | |
Entity Address, City or Town | Newark | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07102 | |
City Area Code | 973 | |
Local Phone Number | 802-6000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 250,000 |
Unaudited Interim Consolidated
Unaudited Interim Consolidated Statements of Financial Position - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Fixed maturities, available for sale, at fair value (allowance for credit losses: 2022-$4,810; 2021-$4,149) (amortized cost: 2022–$16,197,708; 2021–$12,737,749) | $ 14,438,956 | $ 13,278,166 |
Fixed maturities, trading, at fair value (amortized cost: 2022–$2,352,770; 2021–$3,319,660) | 1,814,999 | 3,302,392 |
Equity securities, at fair value (cost: 2022– $238,300; 2021–$106,174) | 229,268 | 111,267 |
Policy loans | 489,592 | 1,327,485 |
Short-term investments | 270,881 | 182,437 |
Commercial mortgage and other loans (net of $9,924 and $5,951 allowance for credit losses at June 30, 2022 and December 31, 2021, respectively) | 3,066,931 | 2,832,560 |
Other invested assets (includes $114,134 and $348,004 of assets measured at fair value at June 30, 2022 and December 31, 2021, respectively) | 964,752 | 1,209,925 |
Total investments | 21,275,379 | 22,244,232 |
Cash and cash equivalents | 1,789,752 | 918,931 |
Deferred policy acquisition costs | 6,310,935 | 6,830,972 |
Accrued investment income | 161,703 | 160,027 |
Reinsurance recoverables | 38,809,510 | 38,598,767 |
Receivables from parent and affiliates | 197,904 | 278,131 |
Deferred sales inducements | 297,772 | 374,649 |
Income tax assets | 1,813,748 | 1,316,879 |
Other assets | 986,295 | 1,140,948 |
Separate account assets | 118,792,119 | 149,797,828 |
TOTAL ASSETS | 190,435,117 | 221,661,364 |
LIABILITIES | ||
Future policy benefits | 24,112,142 | 27,927,029 |
Policyholders’ account balances | 39,025,034 | 35,361,795 |
Cash collateral for loaned securities | 150,666 | 3,004 |
Long-term debt to affiliates | 315,807 | 320,362 |
Payables to parent and affiliates | 72,102 | 31,775 |
Other liabilities | 3,203,069 | 2,264,477 |
Separate account liabilities | 118,792,119 | 149,797,828 |
Total liabilities | 185,670,939 | 215,706,270 |
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 | 6,040,341 | 6,042,491 |
Retained earnings / (accumulated deficit) | (107,081) | (437,332) |
Accumulated other comprehensive income (loss) | (1,171,582) | 347,435 |
Total equity | 4,764,178 | 5,955,094 |
TOTAL LIABILITIES AND EQUITY | $ 190,435,117 | $ 221,661,364 |
Unaudited Interim Consolidate_2
Unaudited Interim Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Fixed Maturities, Available-for-sale, allowance for credit losses | $ 4,810 | $ 4,149 |
Fixed Maturities, Available-for-sale, amortized cost | 16,197,708 | 12,737,749 |
Fixed maturities, trading, amortized cost | 2,352,770 | 3,319,660 |
Equity securities, at cost | 238,300 | 106,174 |
Commercial mortgage and other loans, allowance for credit losses | 9,924 | 5,951 |
Other invested assets, at fair value | $ 114,134 | $ 348,004 |
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
REVENUES | ||||
Premiums | $ 57,421 | $ 44,862 | $ 131,666 | $ 89,267 |
Policy charges and fee income | 625,812 | 180,200 | 817,374 | 332,065 |
Net investment income | 192,128 | 95,300 | 371,428 | 194,167 |
Asset administration fees | 71,790 | 6,276 | 151,022 | 12,487 |
Other income (loss) | (312,016) | 25,630 | (639,620) | 43,874 |
Realized investment gains (losses), net | 714,709 | (122,502) | 1,498,816 | (45,894) |
TOTAL REVENUES | 1,349,844 | 229,766 | 2,330,686 | 625,966 |
BENEFITS AND EXPENSES | ||||
Policyholders’ benefits | 158,106 | 78,076 | 377,870 | 171,989 |
Interest credited to policyholders’ account balances | 122,944 | 47,400 | 286,470 | 103,570 |
Amortization of deferred policy acquisition costs | 276,173 | 35,115 | 635,720 | 86,955 |
General, administrative and other expenses | 286,447 | 95,444 | 554,144 | 231,640 |
TOTAL BENEFITS AND EXPENSES | 843,670 | 256,035 | 1,854,204 | 594,154 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest, Total | 506,174 | (26,269) | 476,482 | 31,812 |
Income tax expense (benefit) | 75,774 | 6,993 | 71,073 | (38,316) |
INCOME (LOSS) FROM OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURE | 430,400 | (33,262) | 405,409 | 70,128 |
Equity in earnings of operating joint venture, net of taxes | (75,162) | 168 | (75,158) | 155 |
NET INCOME (LOSS) | 355,238 | (33,094) | 330,251 | 70,283 |
Other comprehensive income (loss), before tax: | ||||
Foreign currency translation adjustments | (6,200) | 424 | (7,870) | (4,781) |
Net unrealized investment gains (losses) | (897,661) | 215,967 | (1,913,659) | (134,235) |
Total | (903,861) | 216,391 | (1,921,529) | (139,016) |
Less: Income tax expense (benefit) related to other comprehensive income (loss) | (189,054) | 45,396 | (402,512) | (28,335) |
Other comprehensive income (loss), net of taxes | (714,807) | 170,995 | (1,519,017) | (110,681) |
Comprehensive income (loss) | $ (359,569) | $ 137,901 | $ (1,188,766) | $ (40,398) |
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) |
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) | 70,283 | ||||
Other comprehensive income (loss), net of tax | (110,681) | ||||
Ending Balance at Jun. 30, 2021 | 4,079,127 | 2,500 | 1,798,499 | 1,842,681 | 435,447 |
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] | |||||
Contributed 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 |
Beginning Balance at Dec. 31, 2021 | 5,955,094 | 2,500 | 6,042,491 | (437,332) | 347,435 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Contributed capital | 8,160 | 8,160 | |||
Comprehensive income (loss): | |||||
NET INCOME (LOSS) | (24,987) | (24,987) | |||
Other comprehensive income (loss), net of tax | (804,210) | (804,210) | |||
Total comprehensive income (loss) | (829,197) | ||||
Ending Balance at Mar. 31, 2022 | 5,134,057 | 2,500 | 6,050,651 | (462,319) | (456,775) |
Beginning Balance at Dec. 31, 2021 | 5,955,094 | 2,500 | 6,042,491 | (437,332) | 347,435 |
Comprehensive income (loss): | |||||
NET INCOME (LOSS) | 330,251 | ||||
Other comprehensive income (loss), net of tax | (1,519,017) | ||||
Ending Balance at Jun. 30, 2022 | 4,764,178 | 2,500 | 6,040,341 | (107,081) | (1,171,582) |
Beginning Balance at Mar. 31, 2022 | 5,134,057 | 2,500 | 6,050,651 | (462,319) | (456,775) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Contributed capital | 3,194 | 3,194 | |||
Contributed (distributed) capital-parent/child asset transfers | (13,504) | (13,504) | |||
Comprehensive income (loss): | |||||
NET INCOME (LOSS) | 355,238 | 355,238 | |||
Other comprehensive income (loss), net of tax | (714,807) | (714,807) | |||
Total comprehensive income (loss) | (359,569) | ||||
Ending Balance at Jun. 30, 2022 | $ 4,764,178 | $ 2,500 | $ 6,040,341 | $ (107,081) | $ (1,171,582) |
Unaudited Interim Consolidate_5
Unaudited Interim Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 330,251 | $ 70,283 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Policy charges and fee income | (104,864) | (22,018) |
Interest credited to policyholders’ account balances | 286,470 | 103,570 |
Realized investment (gains) losses, net | (1,498,816) | 45,894 |
Amortization and other non-cash items | 114,365 | (31,361) |
Change in: | ||
Future policy benefits | 1,476,307 | 924,447 |
Reinsurance recoverables | (651,569) | (934,329) |
Accrued investment income | (22,745) | (3,714) |
Net payables to/receivables from parent and affiliates | 72,538 | 84,598 |
Deferred policy acquisition costs | 147,096 | (337,488) |
Income taxes | (90,806) | (71,050) |
Derivatives, net | (1,186,480) | (40,879) |
Other, net | 1,911,271 | 70,192 |
Cash flows from (used in) operating activities | 783,018 | (141,855) |
Proceeds from the sale/maturity/prepayment of: | ||
Fixed maturities, available-for-sale | 877,701 | 470,550 |
Fixed maturities, trading | 858,989 | 0 |
Equity securities | 109,213 | 99,345 |
Policy loans | 83,894 | 86,862 |
Ceded policy loans | (54,926) | (7,292) |
Short-term investments | 195,709 | 78,980 |
Commercial mortgage and other loans | 113,924 | 85,893 |
Other invested assets | 58,993 | 30,518 |
Payments for the purchase/origination of: | ||
Fixed maturities, available-for-sale | (3,522,783) | (997,806) |
Fixed maturities, trading | (67,781) | (1,370) |
Equity securities | (232,161) | (41,074) |
Policy loans | (74,108) | (60,691) |
Ceded policy loans | 35,490 | 5,139 |
Short-term investments | (278,180) | (28,991) |
Commercial mortgage and other loans | (403,331) | (85,567) |
Other invested assets | (64,361) | (31,094) |
Notes receivable from parent and affiliates, net | 278 | (57) |
Derivatives, net | (259,219) | (5,011) |
Other, net | 52,879 | (2,305) |
Cash flows from (used in) investing activities | (2,569,780) | (403,971) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Policyholders’ account deposits | 5,275,227 | 2,103,227 |
Ceded policyholders’ account deposits | (608,678) | (1,683,933) |
Policyholders’ account withdrawals | (2,381,708) | (1,594,433) |
Ceded policyholders’ account withdrawals | 288,895 | 1,386,684 |
Net change in securities sold under agreement to repurchase and cash collateral for loaned securities | 147,670 | 0 |
Contributed capital | 0 | 100,000 |
Contributed (distributed) capital - parent/child asset transfers | (165) | 0 |
Drafts outstanding | (58,729) | 47,280 |
Other, net | (4,929) | (1,765) |
Cash flows from (used in) financing activities | 2,657,583 | 357,060 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 870,821 | (188,766) |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 918,931 | 426,979 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 1,789,752 | 238,213 |
Significant Non-Cash Transactions | ||
Non-cash activities | $ 0 | |
Lotus Re | ||
Significant Non-Cash Transactions | ||
Non-cash activities | 525,000 | |
FLIAC | ||
Significant Non-Cash Transactions | ||
Non-cash activities | $ 811,000 |
Business and Basis of Presentat
Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
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. Prudential Financial Sale of PALAC Effective April 1, 2022, Prudential Financial completed the sale of Prudential Annuities Life Assurance Corporation (“PALAC”) to Fortitude Group Holdings, LLC (“Fortitude”). As such, PALAC is no longer an affiliate of Prudential Financial or the Company. Fortitude subsequently renamed the company Fortitude Life Insurance & Annuity Company (“FLIAC”) . 2021 Variable Annuities Recapture 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 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 are being managed within the Company. This transaction is referred to as the "2021 Variable Annuities Recapture". See Note 1 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021, for more details. Reinsurance Agreement with FLIAC Effective December 1, 2021, the Company entered into a reinsurance agreement with FLIAC (previously named PALAC) under which the Company assumed all of its variable and fixed indexed annuities and fixed annuities with a guaranteed lifetime withdrawal income feature from FLIAC. 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, 2021. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining deferred policy acquisition costs ("DAC") and related amortization; policyholders' account balances and reinsurance related to the fair value of embedded derivative instruments associated with the index-linked features of certain universal life and annuity 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 subsequently 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 have manifested, and may continue to manifest, in the Company's financial statements in the areas of, among others, i) 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.) and; ii) investments: increased risk of loss on our investments due to default or deterioration in credit quality or value. 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. Out of Period Adjustments During the three and six months ending June 30, 2022, the Company recorded out of period adjustments resulting in an aggregate net benefit of $32 million and $50 million, respectively, to “Income (loss) from operations before income taxes and equity in earnings of operating joint venture”. These adjustments related to reserves for certain universal and variable life products and certain portions of variable life and annuities reinsurance activity, of which $48 million was recorded in the first quarter of 2022. Management has evaluated the impact of all out of period adjustments, both individually and in the aggregate, and concluded that they are not material to any current or previously reported quarterly or annual financial statements. |
Significant Accounting Policies
Significant Accounting Policies and Pronouncements | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022, 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 June 30, 2022 — ASU 2018-12 ASU 2018-12 , Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, was issued by the FASB on August 15, 2018, and was amended by ASU 2019-09, Financial Services - Insurance (Topic 944): Effective Date , issued in October 2019, and ASU 2020-11, Financial Services-Insurance (Topic 944): Effective Date and Early Application , issued in November 2020. The Company will adopt ASU 2018-12 effective January 1, 2023 using the modified retrospective transition method where permitted, and apply the guidance as of January 1, 2021 (and record transition adjustments as of January 1, 2021) in the 2023 financial statements. 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 increase disclosures. In addition to the significant impacts to the balance sheet, 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 policy 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 will adopt this guidance effective January 1, 2023 using the modified retrospective transition method. As a result of the modified retrospective transition method, the Company expects the vast majority of the impact of updating cash flow assumptions as of the transition date to be reflected in the pattern of earnings in subsequent periods. 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 will adopt the guidance for the liability for future policy benefits effective January 1, 2023 using the modified retrospective transition method. The Company expects a decrease to AOCI as a result of remeasuring in force contract liabilities using upper-medium grade fixed income instrument yields as of the adoption date. The adjustment will largely reflect the difference between discount rates locked-in at contract inception versus discount rates as of the adoption date. 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 deferred sales inducements, 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 will adopt this guidance effective January 1, 2023 using the modified retrospective transition method. Under the modified retrospective transition method, the Company does 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 will adopt this guidance effective January 1, 2023 using the retrospective transition method. Upon adoption, the Company expects a decrease to “Retained earnings” and an offsetting increase to AOCI from reclassifying the cumulative effect of changes in NPR from retained earnings to AOCI. The Company also expects an impact to "Retained earnings" related to 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). The magnitude of such adjustments is currently being assessed. Other ASU issued but not yet adopted as of June 30, 2022 Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosure This ASU eliminates the accounting guidance for Troubled Debt Restructurings (“TDR”) for creditors and adds enhanced disclosure requirements for certain loan refinancings and restructurings by creditors made to borrowers experiencing financial difficulty. Following adoption of the ASU, all loan refinancings and restructurings are subject to the modification guidance in ASC 310-20. This ASU also amends the guidance on the vintage disclosures to require disclosure of current-period gross write-offs by year of origination. January 1, 2023 using the prospective method with an option to apply a modified retrospective transition method for the recognition and measurement of TDRs which will include a cumulative effect adjustment on the balance sheet in the period of adoption. Early adoption is permitted beginning January 1, 2022, including adoption in an interim period provided guidance is applied as of the beginning of the year. The Company does not expect the adoption of the ASU to have a significant impact on the Consolidated Financial Statements and Notes to the Consolidated Financial Statements. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2022 | |
Investments [Abstract] | |
Investments | INVESTMENTS Fixed Maturity Securities The following tables set forth the composition of fixed maturity securities (excluding investments classified as trading), as of the dates indicated: June 30, 2022 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 $ 636,878 $ 1,921 $ 44,925 $ 0 $ 593,874 Obligations of U.S. states and their political subdivisions 569,296 5,347 20,633 0 554,010 Foreign government bonds 319,719 705 51,864 116 268,444 U.S. public corporate securities 6,034,911 29,418 736,312 0 5,328,017 U.S. private corporate securities 2,509,630 6,792 228,868 1,831 2,285,723 Foreign public corporate securities 1,222,452 2,629 136,018 0 1,089,063 Foreign private corporate securities 3,140,859 190 503,503 2,863 2,634,683 Asset-backed securities(1) 925,707 322 31,476 0 894,553 Commercial mortgage-backed securities 740,060 723 46,095 0 694,688 Residential mortgage-backed securities(2) 98,196 526 2,821 0 95,901 Total fixed maturities, available-for-sale $ 16,197,708 $ 48,573 $ 1,802,515 $ 4,810 $ 14,438,956 (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, 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 $ 303,040 $ 31,011 $ 111 $ 0 $ 333,940 Obligations of U.S. states and their political subdivisions 584,244 46,978 701 0 630,521 Foreign government bonds 324,454 29,299 3,271 11 350,471 U.S. public corporate securities 4,794,878 366,764 29,770 0 5,131,872 U.S. private corporate securities 1,964,767 59,037 16,880 2,049 2,004,875 Foreign public corporate securities 906,031 34,234 10,363 0 929,902 Foreign private corporate securities 2,741,449 62,932 48,381 2,089 2,753,911 Asset-backed securities(1) 547,549 860 1,099 0 547,310 Commercial mortgage-backed securities 552,653 25,928 3,397 0 575,184 Residential mortgage-backed securities(2) 18,684 1,501 5 0 20,180 Total fixed maturities, available-for-sale $ 12,737,749 $ 658,544 $ 113,978 $ 4,149 $ 13,278,166 (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. 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: June 30, 2022 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 $ 446,399 $ 44,627 $ 1,909 $ 298 $ 448,308 $ 44,925 Obligations of U.S. states and their political subdivisions 332,051 20,633 0 0 332,051 20,633 Foreign government bonds 222,423 42,170 23,269 9,688 245,692 51,858 U.S. public corporate securities 4,343,243 670,173 170,150 66,139 4,513,393 736,312 U.S. private corporate securities 2,062,339 215,192 100,094 13,676 2,162,433 228,868 Foreign public corporate securities 825,007 119,741 60,464 16,277 885,471 136,018 Foreign private corporate securities 2,441,224 466,582 162,515 36,921 2,603,739 503,503 Asset-backed securities 592,720 26,070 53,576 5,406 646,296 31,476 Commercial mortgage-backed securities 490,544 36,875 46,379 9,220 536,923 46,095 Residential mortgage-backed securities 37,902 2,821 0 0 37,902 2,821 Total fixed maturities, available-for-sale $ 11,793,852 $ 1,644,884 $ 618,356 $ 157,625 $ 12,412,208 $ 1,802,509 December 31, 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 $ 0 $ 0 $ 2,119 $ 111 $ 2,119 $ 111 Obligations of U.S. states and their political subdivisions 104,621 701 0 0 104,621 701 Foreign government bonds 59,550 2,826 6,473 371 66,023 3,197 U.S. public corporate securities 1,681,201 23,160 180,249 6,610 1,861,450 29,770 U.S. private corporate securities 972,796 14,036 16,409 2,844 989,205 16,880 Foreign public corporate securities 532,445 8,255 29,718 2,108 562,163 10,363 Foreign private corporate securities 1,253,739 42,392 57,637 5,616 1,311,376 48,008 Asset-backed securities 288,971 1,099 0 0 288,971 1,099 Commercial mortgage-backed securities 157,355 1,622 40,689 1,775 198,044 3,397 Residential mortgage-backed securities 1,393 5 0 0 1,393 5 Total fixed maturities, available-for-sale $ 5,052,071 $ 94,096 $ 333,294 $ 19,435 $ 5,385,365 $ 113,531 As of June 30, 2022 and December 31, 2021, the gross unrealized losses on fixed maturity available-for-sale securities without an allowance were composed of $1,627.8 million and $95.1 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 $174.7 million and $18.4 million, respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. As of June 30, 2022, the $157.6 million of gross unrealized losses of twelve months or more were concentrated in the Company’s corporate securities within the finance, consumer non-cyclical and utility sectors. As of December 31, 2021, the $19.4 million of gross unrealized losses of twelve months or more were concentrated in the Company's corporate securities within the utility, finance and consumer non-cyclical sectors. In accordance with its policy described in Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, the Company concluded that an adjustment to earnings for credit losses related to these fixed maturity securities was not warranted at June 30, 2022. 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 June 30, 2022, the Company did not intend to sell these securities, and it was not more likely than not that the Company would be required to sell these securities before the anticipated recovery of the remaining amortized cost basis. The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated: June 30, 2022 Amortized Cost Fair Value (in thousands) Fixed maturities, available-for-sale: Due in one year or less $ 404,018 $ 389,373 Due after one year through five years 3,869,672 3,619,474 Due after five years through ten years 4,198,773 3,645,235 Due after ten years 5,961,282 5,099,732 Asset-backed securities 925,707 894,553 Commercial mortgage-backed securities 740,060 694,688 Residential mortgage-backed securities 98,196 95,901 Total fixed maturities, available-for-sale $ 16,197,708 $ 14,438,956 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 403,660 $ 283,241 $ 678,089 $ 316,990 Proceeds from maturities/prepayments 110,426 96,373 230,787 170,458 Gross investment gains from sales and maturities (652) 8,156 (1,358) 8,508 Gross investment losses from sales and maturities (22,461) (9,087) (41,903) (11,656) Write-downs recognized in earnings(2) (19,519) 0 (19,516) (2) (Addition to) release of allowance for credit losses 15,915 2,300 (661) 1,781 (1) Excludes activities from non-cash related proceeds due to the timing of trade settlements of $(31.2) million and $(16.9) million for the six months ended June 30, 2022 and 2021, respectively. (2) Amounts represent write-downs of credit adverse securities and securities actively marketed for sale. 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 June 30, 2022 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 $ 399 $ 20,326 $ 0 $ 0 $ 0 $ 20,725 Additions to allowance for credit losses not previously recorded 0 0 2,904 0 0 0 2,904 Reductions for securities sold during the period 0 (1) (1,202) 0 0 0 (1,203) Reductions for securities with intent to sell 0 (324) (16,666) 0 0 0 (16,990) Addition (reductions) on securities with previous allowance 0 42 (668) 0 0 0 (626) Balance, end of period $ 0 $ 116 $ 4,694 $ 0 $ 0 $ 0 $ 4,810 Three Months Ended June 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 $ 2,858 $ 0 $ 0 $ 0 $ 2,858 Reductions for securities sold during the period 0 0 (14) 0 0 0 (14) Addition (reductions) on securities with previous allowance 0 0 (2,286) 0 0 0 (2,286) Balance, end of period $ 0 $ 0 $ 558 $ 0 $ 0 $ 0 $ 558 Six Months Ended June 30, 2022 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 $ 11 $ 4,138 $ 0 $ 0 $ 0 $ 4,149 Additions to allowance for credit losses not previously recorded 0 329 12,162 0 0 0 12,491 Reductions for securities sold during the period 0 (4) (1,202) 0 0 0 (1,206) Reductions for securities with intent to sell 0 (324) (16,666) 0 0 0 (16,990) Addition (reductions) on securities with previous allowance 0 104 6,262 0 0 0 6,366 Balance, end of period $ 0 $ 116 $ 4,694 $ 0 $ 0 $ 0 $ 4,810 Six Months Ended June 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 Reductions for securities sold during the period 0 0 (25) 0 0 0 (25) Addition (reductions) on securities with previous allowance 0 0 (1,756) 0 0 0 (1,756) Balance, end of period $ 0 $ 0 $ 558 $ 0 $ 0 $ 0 $ 558 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, 2021 for additional information about the Company’s methodology for developing our allowance for credit losses. For the three months ended June 30, 2022, the net decrease in the allowance for credit losses on available-for-sale securities was primarily related to the communications sector within corporate securities. For the three months ended June 30, 2021, the net decrease in the allowance for credit losses on available-for-sale securities was primarily related to the improving credit environment in the communications and utility sectors within private corporate securities. For the six months ended June 30, 2022, the net increase in the allowance for credit losses on available-for-sale securities was primarily related to adverse projected cash flows in the capital goods and utility sectors within corporate securities, partially offset by an increase in the communications sector. For the six months ended June 30, 2021, the net decrease in the allowance for credit losses on available-for-sale securities was primarily related to the improving credit environment in the communications and utility sectors within private corporate securities. The Company did not have any fixed maturity securities purchased with credit deterioration, as of both June 30, 2022 and December 31, 2021. 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 $(184.1) million and $0.2 million during the three months ended June 30, 2022 and 2021, respectively, and $(520.5) million and $(2.5) million during the six months ended June 30, 2022 and 2021, respectively. Equity Securities The net change in unrealized gains (losses) from equity securities still held at period end, recorded within “Other income (loss)”, was $(10.0) million and $0.5 million during the three months ended June 30, 2022 and 2021, respectively, and $(14.1) million and less than $0.1 million during the six months ended June 30, 2022 and 2021, respectively. Commercial Mortgage and Other Loans The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: June 30, 2022 December 31, 2021 Amount % of Amount % of Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 792,222 25.8 % $ 748,414 26.4 % Hospitality 83,476 2.7 48,141 1.7 Industrial 1,064,620 34.6 916,398 32.2 Office 459,646 14.9 445,055 15.7 Other 254,714 8.3 252,590 8.9 Retail 228,494 7.4 255,577 9.0 Total commercial mortgage loans 2,883,172 93.7 2,666,175 93.9 Agricultural property loans 193,683 6.3 172,336 6.1 Total commercial mortgage and agricultural property loans 3,076,855 100.0 % 2,838,511 100.0 % Allowance for credit losses (9,924) (5,951) Total net commercial mortgage and agricultural property loans $ 3,066,931 $ 2,832,560 As of June 30, 2022, the commercial mortgage and agricultural property loans were secured by properties geographically dispersed throughout the United States (with the largest concentrations in California (23%), Texas (12%) and New York (6%)) and included loans secured by properties in Europe (13%), Australia (3%) and Mexico (2%). 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 June 30, 2022 2021 Commercial Mortgage Loans Agricultural Property Loans Total Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance, beginning of period $ 6,324 $ 122 $ 6,446 $ 4,309 $ 5 $ 4,314 Addition to (release of) allowance for expected losses 3,380 98 3,478 (929) 19 (910) Allowance, end of period $ 9,704 $ 220 $ 9,924 $ 3,380 $ 24 $ 3,404 Six Months Ended June 30, 2022 2021 Commercial Mortgage Loans Agricultural Property Loans Total Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance, beginning of period $ 5,847 $ 104 $ 5,951 $ 4,546 $ 6 $ 4,552 Addition to (release of) allowance for expected losses 3,857 116 3,973 (1,166) 18 (1,148) Allowance, end of period $ 9,704 $ 220 $ 9,924 $ 3,380 $ 24 $ 3,404 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, 2021 for additional information about the Company's methodology for developing our allowance and expected losses. For the three months ended June 30, 2022, the net increase in the allowance for credit losses on commercial mortgage and other loans was primarily related to an increase in the general allowance due to current market conditions. For the three months ended June 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. For the six months ended June 30, 2022, the net increase in the allowance for credit losses on commercial mortgage and other loans was primarily related to an increase in the general allowance due to current market conditions and loan originations. For the six months ended June 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. 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: June 30, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total (in thousands) Commercial mortgage loans Loan-to-Value Ratio: 0%-59.99% $ 36,935 $ 47,157 $ 5,584 $ 164,712 $ 83,681 $ 619,216 $ 957,285 60%-69.99% 176,681 324,556 237,578 273,374 165,783 250,876 1,428,848 70%-79.99% 129,179 146,541 71,275 72,099 2,728 74,270 496,092 80% or greater 0 0 0 0 0 947 947 Total $ 342,795 $ 518,254 $ 314,437 $ 510,185 $ 252,192 $ 945,309 $ 2,883,172 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 342,795 $ 501,528 $ 199,237 $ 448,221 $ 245,427 $ 843,926 $ 2,581,134 1.0 - 1.2x 0 16,726 108,998 39,097 6,765 45,452 217,038 Less than 1.0x 0 0 6,202 22,867 0 55,931 85,000 Total $ 342,795 $ 518,254 $ 314,437 $ 510,185 $ 252,192 $ 945,309 $ 2,883,172 Agricultural property loans Loan-to-Value Ratio: 0%-59.99% $ 27,995 $ 99,101 $ 26,184 $ 16,121 $ 6,343 $ 17,939 $ 193,683 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 $ 27,995 $ 99,101 $ 26,184 $ 16,121 $ 6,343 $ 17,939 $ 193,683 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 27,995 $ 99,101 $ 26,184 $ 16,121 $ 6,343 $ 17,151 $ 192,895 1.0 - 1.2x 0 0 0 0 0 0 0 Less than 1.0x 0 0 0 0 0 788 788 Total $ 27,995 $ 99,101 $ 26,184 $ 16,121 $ 6,343 $ 17,939 $ 193,683 December 31, 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% $ 47,161 $ 0 $ 179,682 $ 76,656 $ 126,934 $ 553,022 $ 983,455 60%-69.99% 307,999 225,330 289,322 170,444 126,159 116,654 1,235,908 70%-79.99% 163,451 86,083 75,185 13,728 55,032 51,203 444,682 80% or greater 0 0 0 0 958 1,172 2,130 Total $ 518,611 $ 311,413 $ 544,189 $ 260,828 $ 309,083 $ 722,051 $ 2,666,175 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 501,456 $ 195,164 $ 481,289 $ 253,938 $ 289,443 $ 638,092 $ 2,359,382 1.0 - 1.2x 17,155 109,862 39,577 6,890 7,100 39,213 219,797 Less than 1.0x 0 6,387 23,323 0 12,540 44,746 86,996 Total $ 518,611 $ 311,413 $ 544,189 $ 260,828 $ 309,083 $ 722,051 $ 2,666,175 Agricultural property loans Loan-to-Value Ratio: 0%-59.99% $ 98,579 $ 26,581 $ 16,226 $ 6,463 $ 8,372 $ 16,115 $ 172,336 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 $ 98,579 $ 26,581 $ 16,226 $ 6,463 $ 8,372 $ 16,115 $ 172,336 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 98,579 $ 26,581 $ 16,226 $ 6,463 $ 8,372 $ 15,300 $ 171,521 1.0 - 1.2x 0 0 0 0 0 0 0 Less than 1.0x 0 0 0 0 0 815 815 Total $ 98,579 $ 26,581 $ 16,226 $ 6,463 $ 8,372 $ 16,115 $ 172,336 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, 2021 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: June 30, 2022 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 $ 2,883,172 $ 0 $ 0 $ 0 $ 2,883,172 $ 0 Agricultural property loans 193,683 0 0 0 193,683 0 Total $ 3,076,855 $ 0 $ 0 $ 0 $ 3,076,855 $ 0 (1) As of June 30, 2022, 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, 2021. December 31, 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 $ 2,666,175 $ 0 $ 0 $ 0 $ 2,666,175 $ 0 Agricultural property loans 172,336 0 0 0 172,336 0 Total $ 2,838,511 $ 0 $ 0 $ 0 $ 2,838,511 $ 0 (1) As of December 31, 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, 2021. For both the three and six months ended June 30, 2022, there were $27.6 million of commercial mortgage and other loans acquired, other than those through direct origination, and there were $24.8 million of commercial mortgage and other loans sold. For both the three and six months ended June 30, 2021, there were no commercial mortgage and other loans acquired, other than those through direct origination, and there were no commercial mortgage and other loans sold. The Company did not have any commercial mortgage and other loans purchased with credit deterioration, as of both June 30, 2022 and December 31, 2021. Other Invested Assets The following table sets forth the composition of “Other invested assets,” as of the dates indicated: June 30, 2022 December 31, 2021 (in thousands) Company’s investment in separate accounts $ 716 $ 53,694 LPs/LLCs: Equity method: Private equity 306,449 286,141 Hedge funds 440,632 432,749 Real estate-related 102,821 89,337 Subtotal equity method 849,902 808,227 Fair value: Private equity 66,186 69,137 Hedge funds 456 481 Real estate-related 9,726 9,861 Subtotal fair value 76,368 79,479 Total LPs/LLCs 926,270 887,706 Derivative instruments 37,766 268,525 Total other invested assets $ 964,752 $ 1,209,925 Accrued Investment Income The following table sets forth the composition of “Accrued investment income,” as of the dates indicated: June 30, 2022 December 31, 2021 (in thousands) Fixed maturities $ 137,177 $ 117,216 Equity securities 236 2 Commercial mortgage and other loans 8,517 7,025 Policy loans 14,749 35,153 Other invested assets 50 254 Short-term investments and cash equivalents 974 377 Total accrued investment income $ 161,703 $ 160,027 There were no significant write-downs on accrued investment income for both the three months and six months ended June 30, 2022 and 2021. Net Investment Income The following table sets forth “Net investment income” by investment type, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Fixed maturities, available-for-sale $ 121,986 $ 63,630 $ 231,177 $ 123,588 Fixed maturities, trading 12,479 544 28,044 1,075 Equity securities 1,190 102 1,352 205 Commercial mortgage and other loans 22,801 13,322 45,049 26,748 Policy loans 5,153 17,315 10,219 34,349 Other invested assets 38,243 5,735 75,033 18,808 Short-term investments and cash equivalents 3,441 33 4,089 160 Gross investment income 205,293 100,681 394,963 204,933 Less: investment expenses (13,165) (5,381) (23,535) (10,766) Net investment income $ 192,128 $ 95,300 $ 371,428 $ 194,167 Realized Investment Gains (Losses), Net The following table sets forth “Realized investment gains (losses), net” by investment type, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Fixed maturities(1) $ (26,717) $ 1,369 $ (63,438) $ (1,369) Commercial mortgage and other loans (5,756) 910 (6,359) 1,148 Other invested assets 1,894 887 3,536 909 Derivatives 745,236 (125,662) 1,565,289 (46,571) Short-term investments and cash equivalents 52 (6) (212) (11) Realized investment gains (losses), net $ 714,709 $ (122,502) $ 1,498,816 $ (45,894) (1) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading. . Net Unrealized Gains (Losses) on Investments within AOCI The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated: June 30, 2022 December 31, 2021 (in thousands) Fixed maturity securities, available-for-sale with an allowance $ 3,518 $ 3,685 Fixed maturity securities, available-for-sale without an allowance (1,757,460) 540,881 Derivatives designated as cash flow hedges(1) 144,390 39,896 Affiliated notes (10,756) 73 Other investments(2) 1,846 1,854 Net unrealized gains (losses) on investments $ (1,618,462) $ 586,389 (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 June 30, 2022 and December 31, 2021, the Company had no repurchase agreements. The following table sets forth the composition of “Cash collateral for loaned securities,” which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated: June 30, 2022 December 31, 2021 Remaining Contractual Maturities of the Agreements Remaining Contractual Maturities of the Agreements Overnight & Continuous Up to 30 Days Total Overnight & Continuous Up to 30 Days Total (in thousands) U.S. public corporate securities $ 5,528 $ 0 $ 5,528 $ 3,004 $ 0 $ 3,004 Foreign public corporate securities 2,163 0 2,163 0 0 0 Equity securities 142,975 0 142,975 0 0 0 Total cash collateral for loaned securities(1) $ 150,666 $ 0 $ 150,666 $ 3,004 $ 0 $ 3,004 (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 | 6 Months Ended |
Jun. 30, 2022 | |
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, 2021. 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 of the netting effects of master netting agreements and cash collateral. June 30, 2022 December 31, 2021 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 $ 3,267 $ 0 $ (190) $ 3,344 $ 55 $ 0 Foreign Currency Swaps 1,376,431 156,102 (9) 886,552 37,259 (6,900) Total Derivatives Designated as Hedge Accounting Instruments $ 1,379,698 $ 156,102 $ (199) $ 889,896 $ 37,314 $ (6,900) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 135,289,710 $ 5,468,843 $ (13,071,332) $ 130,358,860 $ 5,698,740 $ (10,348,130) Interest Rate Options 9,193,000 85,071 (253,193) 9,883,000 280,323 (173,863) Interest Rate Futures 1,670,300 34,624 (14,782) 4,109,300 2,876 (2,709) Interest Rate Forwards 115,000 0 (5,002) 195,000 3,760 (991) Foreign Currency Foreign Currency Forwards 259,344 8,765 (605) 119,653 842 (1,063) Credit Credit Default Swaps 2,079,750 0 (3,238) 306,900 24,789 0 Currency/Interest Rate Foreign Currency Swaps 1,926,100 180,430 (4,517) 2,139,523 68,477 (23,251) Equity Total Return Swaps 12,393,180 854,969 (159,232) 15,129,666 66,627 (475,209) Equity Options 36,440,892 564,881 (970,460) 19,461,881 902,050 (1,535,272) Equity Futures 2,993,322 1,611 (21,453) 5,015,002 736 (6,595) Total Derivatives Not Qualifying as Hedge Accounting Instruments $ 202,360,598 $ 7,199,194 $ (14,503,814) $ 186,718,785 $ 7,049,220 $ (12,567,083) Total Derivatives(1)(2) $ 203,740,296 $ 7,355,296 $ (14,504,013) $ 187,608,681 $ 7,086,534 $ (12,573,983) (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 $5,707 million and $9,048 million as of June 30, 2022 and December 31, 2021, respectively included in "Future policy benefits" and $3,428 million and $3,246 million as of June 30, 2022 and December 31, 2021, respectively included in "Policyholders' account balances". Other assets included $76 million and $73 million as of June 30, 2022 and December 31, 2021, respectively. Other liabilities included $24 million and $13 million as of June 30, 2022 and December 31, 2021, respectively. The fair value of the related reinsurance, included in "Reinsurance recoverables" and/or "Reinsurance payables" was an asset of $555 million and $931 million as of June 30, 2022 and December 31, 2021, 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. June 30, 2022 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 7,355,296 $ (7,317,530) $ 37,766 $ 0 $ 37,766 Securities purchased under agreements to resell 0 0 0 0 0 Total Assets $ 7,355,296 $ (7,317,530) $ 37,766 $ 0 $ 37,766 Offsetting of Financial Liabilities: Derivatives $ 14,504,013 $ (14,428,241) $ 75,772 $ (75,772) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 14,504,013 $ (14,428,241) $ 75,772 $ (75,772) $ 0 December 31, 2021 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 7,086,534 $ (6,818,009) $ 268,525 $ 0 $ 268,525 Securities purchased under agreements to resell 185,000 0 185,000 (185,000) 0 Total Assets $ 7,271,534 $ (6,818,009) $ 453,525 $ (185,000) $ 268,525 Offsetting of Financial Liabilities: Derivatives $ 12,573,983 $ (12,568,082) $ 5,901 $ (5,901) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 12,573,983 $ (12,568,082) $ 5,901 $ (5,901) $ 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, 2021. 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 June 30, 2022 Realized Net Other Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ 0 $ 4 $ 0 $ (64) Currency/Interest Rate 417 8,717 33,483 91,734 Total cash flow hedges 417 8,721 33,483 91,670 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (1,670,415) 0 0 0 Currency 15,504 0 0 0 Currency/Interest Rate 114,645 0 290 0 Credit (38,726) 0 0 0 Equity 933,277 0 0 0 Embedded Derivatives 1,390,534 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments 744,819 0 290 0 Total $ 745,236 $ 8,721 $ 33,773 $ 91,670 Six Months Ended June 30, 2022 Realized Net Other Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ 1 $ 16 $ 0 $ (221) Currency/Interest Rate (354) 16,566 40,183 104,715 Total cash flow hedges (353) 16,582 40,183 104,494 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (3,296,352) 0 0 0 Currency 19,801 0 0 0 Currency/Interest Rate 112,937 0 0 0 Credit (41,449) 0 403 0 Equity 1,324,537 0 0 0 Embedded Derivatives 3,446,168 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments 1,565,642 0 403 0 Total $ 1,565,289 $ 16,582 $ 40,586 $ 104,494 Three Months Ended June 30, 2021 Realized Net Other Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ 0 $ 12 $ 0 $ 26 Currency/Interest Rate 69 2,330 (595) 15,635 Total cash flow hedges 69 2,342 (595) 15,661 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 16,719 0 0 0 Currency (203) 0 0 0 Currency/Interest Rate 2,898 0 (3) 0 Credit 0 0 0 0 Equity 19,694 0 0 0 Embedded Derivatives (164,839) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (125,731) 0 (3) 0 Total $ (125,662) $ 2,342 $ (598) $ 15,661 Six Months Ended June 30, 2021 Realized Net Other Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ 1 $ 23 $ 0 $ (99) Currency/Interest Rate (94) 4,791 1,121 20,459 Total cash flow hedges (93) 4,814 1,121 20,360 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (20,652) 0 0 0 Currency 834 0 0 0 Currency/Interest Rate 3,090 0 (14) 0 Credit (12) 0 0 0 Equity 35,256 0 0 0 Embedded Derivatives (64,994) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (46,478) 0 (14) 0 Total $ (46,571) $ 4,814 $ 1,107 $ 20,360 Presented below is a rollforward of current period cash flow hedges in AOCI before taxes: (in thousands) Balance, December 31, 2021 $ 39,896 Amount recorded in AOCI Interest Rate (204) Currency/Interest Rate 161,110 Total amount recorded in AOCI 160,906 Amount reclassified from AOCI to income Interest Rate (17) Currency/Interest Rate (56,395) Total amount reclassified from AOCI to income (56,412) Balance, June 30, 2022 $ 144,390 The changes in fair value of cash flow hedges are deferred in AOCI and are included in "Net unrealized investment gains (losses)" in the Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss); these amounts are then reclassified to earnings when the hedged item affects earnings. Using June 30, 2022 values, it is estimated that a pre-tax gain of $18 million is expected to be reclassified from AOCI to earnings during the subsequent twelve months ending June 30, 2023. 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, have outstanding notional amounts of $2,080 million and $157 million as of June 30, 2022 and December 31, 2021, respectively. These credit derivatives are reported at fair value as a liability of $3 million and as an asset of $11 million as of June 30, 2022 and December 31, 2021, respectively. As of June 30, 2022 the notional amount of these credit derivatives had the following NAIC rating: $1,981 million in NAIC 3 and $99 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 $150 million reported as of June 30, 2022 and December 31, 2021, respectively. These credit derivatives are reported at fair value as an asset of $0 million and $14 million as of June 30, 2022 and December 31, 2021, respectively. 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 regulated derivatives exchanges for exchange traded derivatives and its affiliate, Prudential Global Funding LLC (“PGF”), related to its over-the-counter ("OTC") derivatives. PGF, in turn, manages its credit risk by: (i) entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties governed by master netting agreement, as applicable; (ii) trading through central clearing and OTC parties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single-party credit exposures which are subject to periodic management review. Substantially all of the Company’s derivative agreements have zero thresholds which require daily full collateralization by the party in a liability position. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
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, 2021. 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. June 30, 2022 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 $ 593,874 $ 0 $ $ 593,874 Obligations of U.S. states and their political subdivisions 0 554,010 0 554,010 Foreign government bonds 0 268,309 135 268,444 U.S. corporate public securities 0 5,328,017 0 5,328,017 U.S. corporate private securities 0 2,112,731 172,992 2,285,723 Foreign corporate public securities 0 1,081,970 7,093 1,089,063 Foreign corporate private securities 0 2,496,890 137,793 2,634,683 Asset-backed securities(2) 0 860,209 34,344 894,553 Commercial mortgage-backed securities 0 605,744 88,944 694,688 Residential mortgage-backed securities 0 95,901 0 95,901 Subtotal 0 13,997,655 441,301 14,438,956 Fixed maturities, trading 0 1,814,999 0 1,814,999 Equity securities 184,148 15,337 29,783 229,268 Short-term investments 0 139,109 2,772 141,881 Cash equivalents 0 917,443 0 917,443 Other invested assets(3) 36,359 7,318,937 0 (7,317,530) 37,766 Other assets 0 0 75,858 75,858 Reinsurance recoverables 0 0 555,053 555,053 Receivables from parent and affiliates 0 150,946 0 150,946 Subtotal excluding separate account assets 220,507 24,354,426 1,104,767 (7,317,530) 18,362,170 Separate account assets(4)(5) 68,279 113,591,798 0 113,660,077 Total assets $ 288,786 $ 137,946,224 $ 1,104,767 $ (7,317,530) $ 132,022,247 Future policy benefits(6) $ 0 $ 0 $ 5,706,968 $ $ 5,706,968 Policyholders' account balances 0 0 3,427,667 3,427,667 Payables to parent and affiliates 0 14,467,750 0 (14,424,444) 43,306 Other liabilities 36,235 (24,189) 0 (3,797) 8,249 Total liabilities $ 36,235 $ 14,443,561 $ 9,134,635 $ (14,428,241) $ 9,186,190 December 31, 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 $ 333,940 $ 0 $ $ 333,940 Obligations of U.S. states and their political subdivisions 0 630,521 0 630,521 Foreign government bonds 0 350,321 150 350,471 U.S. corporate public securities 0 5,131,872 0 5,131,872 U.S. corporate private securities 0 1,873,370 131,505 2,004,875 Foreign corporate public securities 0 921,008 8,894 929,902 Foreign corporate private securities 0 2,508,676 245,235 2,753,911 Asset-backed securities(2) 0 484,861 62,449 547,310 Commercial mortgage-backed securities 0 463,689 111,495 575,184 Residential mortgage-backed securities 0 20,180 0 20,180 Subtotal 0 12,718,438 559,728 13,278,166 Fixed maturities, trading 0 3,302,392 0 3,302,392 Equity securities 58,160 40,635 12,472 111,267 Short-term investments 9,997 135,440 0 145,437 Cash equivalents 13,999 422,633 0 436,632 Other invested assets(3) 246,097 6,840,437 0 (6,818,009) 268,525 Other assets 0 0 72,937 72,937 Reinsurance recoverables 0 0 931,207 931,207 Receivables from parent and affiliates 0 162,045 0 162,045 Subtotal excluding separate account assets 328,253 23,622,020 1,576,344 (6,818,009) 18,708,608 Separate account assets(4)(5) 52,100 144,059,558 0 144,111,658 Total assets $ 380,353 $ 167,681,578 $ 1,576,344 $ (6,818,009) $ 162,820,266 Future policy benefits(6) $ 0 $ 0 $ 9,047,956 $ $ 9,047,956 Policyholders' account balances 0 0 3,245,773 3,245,773 Payables to parent and affiliates 0 12,563,253 0 (12,563,253) 0 Other liabilities 10,730 12,624 0 (4,829) 18,525 Total liabilities $ 10,730 $ 12,575,877 $ 12,293,729 $ (12,568,082) $ 12,312,254 (1) “Netting” amounts represent cash collateral of $(7,111) million and $(5,750) million as of June 30, 2022 and December 31, 2021, 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 June 30, 2022 and December 31, 2021, the fair values of such investments were $76 million and $79 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 June 30, 2022 and December 31, 2021, the fair value of such investments was $5,132 million and $5,686 million, respectively. (6) As of June 30, 2022, the net embedded derivative liability position of $5,707 million includes $714 million of embedded derivatives in an asset position and $6,421 million of embedded derivatives in a liability position. As of December 31, 2021, the net embedded derivative liability position of $9,048 million includes $610 million of embedded derivatives in an asset position and $9,658 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. June 30, 2022 Fair Value Valuation Unobservable Inputs Minimum Maximum Weighted Average Impact of (in thousands) Assets: Corporate securities(2) $ 237,632 Discounted cash flow Discount rate 10.26 % 20 % 12.67 % Decrease Market Comparables EBITDA multiples(3) 1.8 X 18.5 X 7.5 X Increase Reinsurance recoverables $ 555,053 Fair values are determined using the same unobservable inputs as future policy benefits. Liabilities: Future policy benefits(4) $ 5,706,968 Discounted cash flow Lapse rate(6) 1 % 20 % Decrease Spread over SOFR(7) 0.51 % 2.14 % Decrease Utilization rate(8) 38 % 95 % Increase Withdrawal rate See table footnote (9) below. Mortality rate(10) 0 % 15 % Decrease Equity volatility curve 18 % 28 % Increase Policyholders' account balances(5) $ 3,427,667 Discounted cash flow Lapse rate(6) 1 % 80 % Decrease Spread over SOFR(7) 0.24 % 2.14 % Decrease Mortality rate(10) 0 % 23 % Decrease Equity volatility curve 6 % 36 % Increase December 31, 2021 Fair Value Valuation Unobservable Minimum Maximum Weighted Impact of (in thousands) Assets: Corporate securities(2) $ 312,139 Discounted cash flow Discount rate 1.65 % 20 % 4.57 % Decrease Market Comparables EBITDA multiples(3) 4.9X 19.2X 9.0X Increase Liquidation Liquidation value 62.58 % 62.58 % 62.58 % Increase Reinsurance recoverables $ 931,207 Fair values are determined using the same unobservable inputs as future policy benefits. Liabilities: Future policy benefits(4) $ 9,047,956 Discounted cash flow Lapse rate(6) 1 % 20 % Decrease Spread over LIBOR(7) 0.03 % 1.13 % Decrease Utilization rate(8) 39 % 96 % Increase Withdrawal rate See table footnote (9) below. Mortality rate(10) 0 % 15 % Decrease Equity volatility curve 16 % 25 % Increase Policyholders' account balances(5) $ 3,245,773 Discounted cash flow Lapse rate(6) 1 % 42 % Decrease Spread over LIBOR(7) 0.03 % 1.13 % Decrease Mortality rate(10) 0 % 23 % Decrease Equity volatility curve 6 % 31 % 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 and annuity 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 a 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 Secured Overnight Financing Rate (“SOFR”) swap curve and the London Inter-Bank Offered Rate (“LIBOR”) swap curve represents the premium added to the proxy for the risk-free rate (SOFR or LIBOR, as applicable) 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 as of June 30, 2022 and December 31, 2021, respectively. This spread includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because funding agreements, living benefit guarantees, and index-linked interest crediting guarantees are insurance liabilities and are therefore senior to debt. (8) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits. (9) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of June 30, 2022 and December 31, 2021, the minimum withdrawal rate assumption is 77% and 76%, respectively. As of June 30, 2022 and December 31, 2021, 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 June 30, 2022 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 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Foreign government 140 (5) 0 0 0 0 0 0 0 135 (5) Corporate securities(4) 385,358 (12,845) 83,901 (11,217) 0 (21,195) 0 0 (106,124) 317,878 (10,577) Structured securities(5) 112,116 (10,352) 33,490 0 0 (571) 0 0 (11,395) 123,288 (10,305) Other assets: Fixed maturities, trading 0 0 0 0 0 0 0 0 0 0 0 Equity securities 11,463 (1,111) 10,000 (230) 0 0 9,661 0 0 29,783 (1,129) Short-term investments 0 5 2,766 0 0 (54) 0 55 0 2,772 0 Other assets 75,201 8,050 (6,574) 0 0 (819) 0 0 0 75,858 7,231 Reinsurance recoverables 700,700 (179,685) 34,038 0 0 0 0 0 0 555,053 (174,545) Liabilities: Future policy benefits (6,964,587) 1,510,153 0 0 (252,534) 0 0 0 0 (5,706,968) 1,460,746 Policyholders' account balances(6) (3,260,195) 71,103 0 0 0 (238,575) 0 0 0 (3,427,667) (341,035) Three Months Ended June 30, 2022 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 $ (1,909) $ 0 $ (21,240) $ (53) $ 631 $ 0 $ (21,518) Other assets: Fixed maturities, trading 0 0 0 0 0 0 0 Equity securities 0 (1,111) 0 0 0 (1,129) 0 Short-term investments 0 0 0 5 0 0 0 Other assets 8,050 0 0 0 7,231 0 0 Reinsurance recoverables (179,685) 0 0 0 (174,545) 0 0 Liabilities: Future policy benefits 1,510,153 0 0 0 1,460,746 0 0 Policyholders' account balances 71,103 0 0 0 (341,035) 0 0 Six Months Ended June 30, 2022 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 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Foreign government 150 (15) 0 0 0 0 0 0 0 135 (15) Corporate securities(4) 385,634 (49,220) 133,311 (12,388) 0 (33,335) 0 0 (106,124) 317,878 (47,042) Structured securities(5) 173,944 (22,328) 33,490 0 0 (1,073) 0 0 (60,745) 123,288 (22,280) Other assets: Fixed maturities, trading 0 0 0 0 0 0 0 0 0 0 0 Equity securities 12,472 (2,120) 10,000 (230) 0 0 9,661 0 0 29,783 (2,138) Short-term investments 0 5 2,766 0 0 (54) 0 55 0 2,772 0 Other assets 72,937 4,337 1,241 0 0 (2,657) 0 0 0 75,858 1,679 Reinsurance recoverables 931,207 (445,494) 69,340 0 0 0 0 0 0 555,053 (430,193) Liabilities: Future policy benefits (9,047,956) 3,856,540 0 0 (515,552) 0 0 0 0 (5,706,968) 3,702,735 Policyholders' account balances(6) (3,245,773) (29,550) 0 0 0 (391,366) 239,022 0 0 (3,427,667) (492,251) Six Months Ended June 30, 2022 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 $ (16,812) $ 0 $ (55,081) $ 330 $ (14,380) $ 0 $ (54,957) Other assets: Fixed maturities, trading 0 0 0 0 0 0 0 Equity securities 0 (2,120) 0 0 0 (2,138) 0 Short-term investments 0 0 0 5 0 0 0 Other assets 4,337 0 0 0 1,679 0 0 Reinsurance recoverables (445,494) 0 0 0 (430,193) 0 0 Liabilities: Future policy benefits 3,856,540 0 0 0 3,702,735 0 0 Policyholders' account balances (29,550) 0 0 0 (492,251) 0 0 Three Months Ended June 30, 2021 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other 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 157 (1) 0 0 0 0 0 0 0 156 (1) Corporate securities(4) 165,491 5,050 23 0 0 (2,208) 0 2,474 0 170,830 5,000 Structured securities(5) 2,134 2 25,450 0 0 (407) 0 0 0 27,179 1 Other assets: Fixed maturities, trading 767 34 0 0 0 0 0 0 0 801 33 Equity securities 7,678 327 0 0 0 0 0 0 0 8,005 327 Short-term investments 0 0 0 0 0 0 0 0 0 0 0 Other assets 0 0 0 0 0 0 0 0 0 0 0 Reinsurance recoverables 7,447,863 1,550,027 277,633 0 0 0 0 0 0 9,275,523 1,638,970 Liabilities: Future policy benefits (7,435,081) (1,552,781) 0 0 (275,654) 0 0 0 0 (9,263,516) (1,640,666) Policyholders' account balances(6) (1,031,525) (146,924) 0 0 0 21,839 0 0 0 (1,156,610) (128,815) Three Months Ended June 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 $ 2,316 $ 0 $ 2,708 $ 27 $ 2,300 $ 0 $ 2,700 Other assets: Fixed maturities, trading 0 34 0 0 0 33 0 Equity securities 0 327 0 0 0 327 0 Other assets 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 0 Reinsurance recoverables 1,550,027 0 0 0 1,638,970 0 0 Liabilities: Future policy benefits (1,552,781) 0 0 0 (1,640,666) 0 0 Policyholders' account balances (146,924) 0 0 0 (128,815) 0 0 Six Months Ended June 30, 2021 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other 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 (7) 0 0 0 0 0 0 0 156 (8) Corporate securities(4) 174,776 (7,032) 2,342 0 0 (4,373) 0 5,117 0 170,830 (7,101) Structured securities(5) 2,065 (13) 25,950 0 0 (823) 0 0 0 27,179 (13) Other assets: Fixed maturities, trading 755 46 0 0 0 0 0 0 0 801 46 Equity securities 7,889 116 0 0 0 0 0 0 0 8,005 116 Short-term investments 0 0 0 0 0 0 0 0 0 0 0 Other assets 0 0 0 0 0 0 0 0 0 0 0 Reinsurance recoverables 13,239,539 (4,519,882) 555,866 0 0 0 0 0 0 9,275,523 (4,201,349) Liabilities: Future policy benefits (13,227,814) 4,516,201 0 0 (551,903) 0 0 0 0 (9,263,516) 4,197,669 Policyholders' account balances(6) (1,155,274) (36,667) 0 0 0 35,331 0 0 0 (1,156,610) (325) Six Months Ended June 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 $ 1,808 $ 0 $ (8,910) $ 50 $ 1,799 $ 0 $ (8,921) Other assets: Fixed maturities, trading 0 46 0 0 0 46 0 Equity securities 0 116 0 0 0 116 0 Short-term investments 0 0 0 0 0 0 0 Other assets 0 0 0 0 0 0 0 Reinsurance recoverables (4,519,882) 0 0 0 (4,201,349) 0 0 Liabilities: Future policy benefits 4,516,201 0 0 0 4,197,669 0 0 Policyholders' account balances (36,667) 0 0 0 (325) 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. (2) Other largely represents an out of period adjustment related to certain portions of reinsurance activity that had been incorrectly recorded on the balance sheet during the fourth quarter of 2021. (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 and foreign government bonds. (5) Includes asset-backed and commercial mortgage-backed securities. (6) Issuances and settlements for Policyholders' account balances are presented net in the rollforward. Nonrecurring Fair Value Measurements - The following tables represent information for assets measured at fair value on a nonrecurring basis. The fair value measurement is nonrecurring as these assets are measured at fair value only when there is a triggering event (e.g., an evidence of impairment). Assets included in the table are those that were impaired during the respective reporting periods and that are still held as of the reporting date. The estimated fair values for these amounts were determined using significant unobservable inputs (Level 3). Three Month Ended June 30, Six Month Ended June 30, 2022 2021 2022 2021 (in thousands) Equity in earnings of operating joint venture, net of taxes Investment in joint venture $ (75,000) $ 0 $ (75,000) $ 0 June 30, 2022 December 31, 2021 (in thousands) Carrying value after measurement as of period end: Investment in joint venture $ 60,456 $ 0 Fair Value of Financial Instruments The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Unaudited Interim Consolidated Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value. June 30, 2022 Fair Value Carrying Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 2,852,215 $ 2,852,215 $ 3,066,931 Policy loans 0 0 489,592 489,592 489,592 Short-term investments 129,000 0 0 129,000 129,000 Cash and cash equivalents 872,309 0 0 872,309 872,309 Accrued investment income 0 161,703 0 161,703 161,703 Reinsurance recoverables 0 0 26,248 26,248 27,938 Receivables from parent and affiliates 0 46,958 0 46,958 46,958 Other assets 0 43,201 480,772 523,973 523,973 Total assets $ 1,001,309 $ 251,862 $ 3,848,827 $ 5,101,998 $ 5,318,404 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 1,285,380 $ 2,619,853 $ 3,905,233 $ 3,920,807 Cash collateral for loaned securities 0 150,666 0 150,666 150,666 Long-term debt to affiliates 0 297,877 0 297,877 315,807 Payables to parent and affiliates 0 28,796 0 28,796 28,796 Other liabilities 0 813,143 33,250 846,393 846,393 Total liabilities $ 0 $ 2,575,862 $ 2,653,103 $ 5,228,965 $ 5,262,469 December 31, 2021 Fair Value Carrying Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 2,883,710 $ 2,883,710 $ 2,832,560 Policy loans 0 0 1,327,485 1,327,485 1,327,485 Short-term investments 37,000 0 0 37,000 37,000 Cash and cash equivalents 297,299 185,000 0 482,299 482,299 Accrued investment income 0 160,027 0 160,027 160,027 Reinsurance recoverables 0 0 29,931 29,931 28,883 Receivables from parent and affiliates 0 116,086 0 116,086 116,086 Other assets 0 134,598 434,383 568,981 568,981 Total assets $ 334,299 $ 595,711 $ 4,675,509 $ 5,605,519 $ 5,553,321 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 1,356,850 $ 2,590,487 $ 3,947,337 $ 3,941,822 Cash collateral for loaned securities 0 3,004 0 3,004 3,004 Long-term debt to affiliates 0 319,225 0 319,225 320,362 Payables to parent and affiliates 0 31,775 0 31,775 31,775 Other liabilities 0 864,788 34,091 898,879 898,879 Total liabilities $ 0 $ 2,575,642 $ 2,624,578 $ 5,200,220 $ 5,195,842 (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 | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company uses a full year projected effective tax rate approach to calculate year-to-date taxes. In determining the full year projected tax rate, the Company considers the realizability of deferred tax assets, including those associated with unrealized investment losses, and has determined based upon the weight of available evidence that no valuation allowance is necessary related to unrealized investment losses. 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 operating joint ventures are recorded within “Equity in earnings of operating joint ventures, 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 expense of $71.1 million, or 14.92% of income (loss) from operations before income taxes and equity in earnings of operating joint venture, in the first six months of 2022, compared to an income tax benefit of $(38.3) million, or (120.44)%, in the first six months of 2021. The Company's current and prior effective tax rates differed from the U.S. statutory tax rate of 21% primarily due to non-taxable investment income and tax credits. |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2022 | |
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”), Gibraltar Universal Life Reinsurance Company ("GUL Re"), Dryden Arizona Reinsurance Term Company (“DART”), Lotus Reinsurance Company Ltd. ("Lotus Re"), PALAC, a former subsidiary of Prudential Financial that was sold to Fortitude on April 1, 2022, which is discussed in Note 1, 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 recaptured the risks related to its business that had been previously reinsured to 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. Reinsurance agreements that do not expose the Company to a reasonable possibility of a significant loss from insurance risk are recorded using the deposit method of accounting. The deposit assets on reinsurance are recorded within “Other assets” and the corresponding funds withheld liability for assets retained under these reinsurance agreements are recorded within “Other liabilities.” Balances associated with these agreements are included in the tables below. Realized investment gains and losses include the impact of reinsurance agreements, particularly reinsurance agreements involving living benefit guarantees and index-linked features of certain annuity products. 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 June 30, 2022 and December 31, 2021 were as follows: June 30, 2022 December 31, 2021 (in thousands) Reinsurance recoverables $ 38,809,510 $ 38,598,767 Policy loans (1,012,829) (156,749) Deferred policy acquisition costs(1) (3,203,610) (2,575,232) Deferred sales inducements (34,354) (37,905) Other assets(2)(3) 854,974 850,681 Policyholders’ account balances (2)(4) 13,655,630 14,386,443 Future policy benefits(5) 5,167,591 5,286,252 Other liabilities(2)(6) 2,616,417 1,642,413 (1) Includes $481 million and $0 million of unaffiliated activity as of June 30, 2022 and December 31, 2021, respectively. (2) Prior period has been reclassified to conform to the current period presentation to include reinsurance agreements using the deposit method of accounting. (3) Includes $742 million and $497 million of unaffiliated activity as of June 30, 2022 and December 31, 2021, respectively. (4) Includes $9,209 million and $0 million of unaffiliated activity as of June 30, 2022 and December 31, 2021, respectively. (5) Includes $2 million and $0.0 million of unaffiliated activity as of June 30, 2022 and December 31, 2021, respectively. (6) Includes $599 million and $467 million of unaffiliated activity as of June 30, 2022 and December 31, 2021, respectively. The deposit assets on reinsurance totaled $521 million and $497 million at June 30, 2022 and December 31, 2021, respectively. The funds withheld liabilities totaled $458 million and $419 million at June 30, 2022 and December 31, 2021, respectively. Reinsurance recoverables by counterparty are broken out below: June 30, 2022 December 31, 2021 (in thousands) PAR U $ 13,365,163 $ 13,523,832 PALAC(1) 0 7,198,504 PURC 5,760,428 5,830,441 PARCC 2,282,435 2,371,491 GUL Re 2,666,661 2,710,926 PAR Term 1,998,500 1,972,339 Prudential Insurance 1,378,191 2,082,551 Term Re 2,006,812 1,953,063 Lotus Re 1,986,321 32,039 DART 708,366 644,101 Unaffiliated(1) 6,656,633 279,480 Total reinsurance recoverables $ 38,809,510 $ 38,598,767 (1) Due to the sale of PALAC on April 1, 2022 the reinsurance recoverable balance has become unaffiliated. Reinsurance amounts, included in the Company’s Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, were as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Premiums: Direct $ 471,343 $ 486,008 $ 945,271 $ 972,885 Assumed(1) (9,474) 41 (8,077) 84 Ceded(2) (404,448) (441,187) (805,528) (883,702) Net premiums 57,421 44,862 131,666 89,267 Policy charges and fee income: Direct 900,644 893,456 1,802,968 1,803,345 Assumed(3) 161,372 146,537 312,193 286,650 Ceded(4) (436,204) (859,793) (1,297,787) (1,757,930) Net policy charges and fee income 625,812 180,200 817,374 332,065 Net investment income: Direct 195,480 96,905 390,991 197,300 Assumed 365 371 818 730 Ceded(5) (3,717) (1,976) (20,381) (3,863) Net investment income 192,128 95,300 371,428 194,167 Asset administration fees: Direct 88,655 98,823 186,112 195,437 Assumed 0 0 0 0 Ceded (16,865) (92,547) (35,090) (182,950) Net asset administration fees 71,790 6,276 151,022 12,487 Other income (loss): Direct (325,563) 24,577 (674,251) 41,677 Assumed(6) (2,548) 13 (2,509) (60) Ceded (60) 41 (438) 106 Amortization of reinsurance income 16,155 999 37,578 2,151 Net Other income (loss) (312,016) 25,630 (639,620) 43,874 Realized investment gains (losses), net: Direct 1,148,607 (1,655,473) 2,355,755 4,502,274 Assumed(7) (281,646) 0 (485,630) 0 Ceded(8) (152,252) 1,532,971 (371,309) (4,548,168) Realized investment gains (losses), net 714,709 (122,502) 1,498,816 (45,894) Policyholders’ benefits (including change in reserves): Direct 1,421,515 801,694 2,326,652 1,799,518 Assumed(9) 761,610 225,704 1,000,277 417,509 Ceded(10) (2,025,019) (949,322) (2,949,059) (2,045,038) Net policyholders’ benefits (including change in reserves) 158,106 78,076 377,870 171,989 Interest credited to policyholders’ account balances: Direct 202,814 100,790 404,840 280,225 Assumed(11) 29,601 32,132 102,103 65,118 Ceded (109,471) (85,522) (220,473) (241,773) Net interest credited to policyholders’ account balances 122,944 47,400 286,470 103,570 Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization (80,230) (292,845) (216,082) (761,280) (1) Includes $(13) million and $0.1 million of unaffiliated activity for the three months ended June 30, 2022 and 2021, respectively, and $(13) million and $0.1 million for the six months ended June 30, 2022 and 2021, respectively. (2) Includes $(9) million and $(7) million of unaffiliated activity for the three months ended June 30, 2022 and 2021, respectively, and $(16) million and $(14) million for the six months ended June 30, 2022 and 2021, respectively. (3) Includes $11 million and $0 million of unaffiliated activity for the three months ended June 30, 2022 and 2021, respectively, and $11 million and $0 million for the six months ended June 30, 2022 and 2021, respectively. (4) Includes $(20) million and $(16) million of unaffiliated activity for the three months ended June 30, 2022 and 2021, respectively, and $(38) million and $(30) million for the six months ended June 30, 2022 and 2021, respectively. (5) Includes $9 million and $0 million of unaffiliated activity for the three months ended June 30, 2022 and 2021, respectively, and $4 million and $0 million for the six months ended June 30, 2022 and 2021, respectively. (6) Includes $(3) million and $0 million of unaffiliated activity for the three months ended June 30, 2022 and 2021, respectively, and $(3) million and $0 million for the six months ended June 30, 2022 and 2021, respectively. (7) Includes $(282) million and $0 million of unaffiliated activity for the three months ended June 30, 2022 and 2021, respectively, and $(282) million and $0 million for the six months ended June 30, 2022 and 2021, respectively. (8) Includes $(9) million and $31 million of unaffiliated activity for the three months ended June 30, 2022 and 2021, respectively, and $(14) million and $(110) million for the six months ended June 30, 2022 and 2021, respectively. (9) Includes $1 million and $0.2 million of unaffiliated activity for the three months ended June 30, 2022 and 2021, respectively, and $1 million and $0.3 million for the six months ended June 30, 2022 and 2021, respectively. (10) Includes $(18) million and $(50) million of unaffiliated activity for the three months ended June 30, 2022 and 2021, respectively, and $(38) million and $(131) million for the six months ended June 30, 2022 and 2021, respectively. (11) Includes $(3) million and $0 million of unaffiliated activity for the three months ended June 30, 2022 and 2021, respectively, and $(3) million and $0 million for the six months ended June 30, 2022 and 2021, respectively. The gross and net amounts of life insurance face amount in force as of June 30, 2022 and 2021 were as follows: 2022 2021 (in thousands) Direct gross life insurance face amount in force $ 1,086,899,612 $ 1,068,336,643 Assumed gross life insurance face amount in force 37,151,725 38,300,008 Reinsurance ceded (1,012,351,998) (993,562,545) Net life insurance face amount in force $ 111,699,339 $ 113,074,106 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 had 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 are being managed within the Company. See Note 1 for additional information. On April 1, 2022, PALAC was sold to Fortitude as discussed in Note 1 and is no longer considered an affiliate of the Company. 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. The amended agreement does not impact contracts issued by PLNJ, which remain at the original percentage. 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. The amended agreement does not impact contracts issued by PLNJ, which remain at the original percentage. 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 ("YRT") reinsurance agreement with Prudential Insurance and reinsures the majority of all mortality risks not otherwise reinsured. This agreement was terminated for new business effective January 1, 2020, with certain new business (primarily Universal Life policies) terminated as early as 2017. The Company now 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, certain term life insurance policies were recaptured and subsequently reinsured to PARCC and PAR Term as noted above. As of January 1, 2022, most of the variable life insurance policies were recaptured resulting in a $305 million loss recorded through "Policy charges and fee income." Those policies were then reinsured to Lotus Re as mentioned below. 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, which were then acquired by Sixth Street in July 2021. There was 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. Lotus Re Effective October 1, 2021, the Company entered into an automatic coinsurance agreement with Lotus Re to reinsure $32 million worth of liabilities associated with the risks associated with a portion of its Variable Life policies in the extended term policy status. Effective January 1, 2022 the Company recaptured the risks that were previously ceded to Lotus Re from October 1, 2021 through December 31, 2021. Immediately thereafter, the Company entered into a reinsurance agreement with Lotus Re to cede 100% of the risks associated with a closed block of Variable Life business on a coinsurance and modified coinsurance basis including policies in the extended term policy status. The amount of the net liabilities associated with the transaction for coinsurance and modified coinsurance were $1,381 million and $14,037 million, respectively. As part of the consideration, the Company also ceded to Lotus Re $855 million of policy loan assets associated with the reinsured policies while receiving $820 million in cash from Lotus Re. As a result, the Company recorded a $1,346 million deferred gain, which will be recognized over the remaining life of the underlying policies. In tandem with the transaction, effective January 1, 2022, Lotus Re established an automatic YRT agreement with the Company to cede back a portion of the mortality risks associated with the reinsured policies for the purposes of the Company maintaining YRT reinsurance with external counterparties. 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. FLIAC Effective December 1, 2021, the Company entered into a reinsurance agreement with FLIAC under which the Company assumed all of its variable indexed annuities. The reinsurance of the variable indexed annuities transfers all significant risks, including mortality risk, embedded in the reinsured contracts. As a result of the agreement, Reinsurance recoverables includes the assumed modified coinsurance arrangement, which reflects the value of the invested assets retained by FLIAC and the associated asset returns. The Company also assumed all of FLIAC’s fixed indexed annuities and fixed annuities with a guaranteed lifetime withdrawal income feature which are accounted for under deposit accounting. The reinsurance agreement offers the policyholders the opportunity to novate their contracts from FLIAC to the Company and any such novated contracts shall cease to be reinsured contracts under this reinsurance agreement. As of June 30, 2022, the total account value of contracts novated from FLIAC to the Company were $957 million for variable indexed annuities contracts and $315 million for fixed indexed annuities contracts, which is approximately 13% of the total reinsured block. 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 June 30, 2022, $2.7 billion of HDI v.3.0 account values are reinsured to Union Hamilton. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2022 | |
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 six months ended June 30, 2022 and 2021, are as follows: Accumulated Other Comprehensive Income (Loss) Foreign Net Unrealized Total Accumulated (in thousands) Balance, December 31, 2021 $ (11,274) $ 358,709 $ 347,435 Change in OCI before reclassifications (7,870) (1,920,685) (1,928,555) Amounts reclassified from AOCI 0 7,026 7,026 Income tax benefit (expense) 735 401,777 402,512 Balance, June 30, 2022 $ (18,409) $ (1,153,173) $ (1,171,582) 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 (4,781) (129,762) (134,543) Amounts reclassified from AOCI 0 (4,473) (4,473) Income tax benefit (expense) 149 28,186 28,335 Balance, June 30, 2021 $ (12,429) $ 447,876 $ 435,447 (1) Includes cash flow hedges of $144 million and $40 million as of June 30, 2022 and December 31, 2021, respectively, and $12 million and $(8) million as of June 30, 2021 and December 31, 2020, respectively . Reclassifications out of Accumulated Other Comprehensive Income (Loss) Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands) Amounts reclassified from AOCI (1)(2): Net unrealized investment gains (losses): Cash flow hedges - Currency/Interest rate(3) $ 42,622 $ 1,816 $ 56,412 $ 5,842 Net unrealized investment gains (losses) on available-for-sale securities (26,717) 1,369 (63,438) (1,369) Total net unrealized investment gains (losses)(4) 15,905 3,185 (7,026) 4,473 Total reclassifications for the period $ 15,905 $ 3,185 $ (7,026) $ 4,473 (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 recorded 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, 2021 $ 3,685 $ 582,704 $ 983,085 $ (1,115,484) $ (95,281) $ 358,709 Net investment gains (losses) on investments arising during the period (1,592) (2,210,285) 0 0 464,388 (1,747,489) Reclassification adjustment for (gains) losses included in net income 727 6,299 0 0 (1,475) 5,551 Reclassification due to allowance for credit losses recorded during the period 698 (698) 0 0 0 0 Impact of net unrealized investment (gains) losses 0 0 (1,798,631) 2,089,823 (61,136) 230,056 Balance, June 30, 2022 $ 3,518 $ (1,621,980) $ (815,546) $ 974,339 $ 306,496 $ (1,153,173) (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 | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 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 $78 million and $94 million for the three months ended June 30, 2022 and 2021, respectively, and $163 million and $185 million for the six months ended June 30, 2022 and 2021, 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 $9 million and $4 million for the three months ended June 30, 2022 and 2021, respectively, and $19 million and $7 million for the six months ended June 30, 2022 and 2021, 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 June 30, 2022 and December 31, 2021 were as follows: Maturity Dates Interest Rates June 30, 2022 December 31, 2021 (in thousands) U.S. dollar fixed rate notes 2022 - 2027 0.00% - 14.85 % $ 150,946 $ 162,045 Total notes receivable - affiliated(1) $ 150,946 $ 162,045 (1) All notes receivable may be called for prepayment prior to the respective maturity dates under specified circumstances. The affiliated notes receivable shown above are classified as available-for-sale securities and other trading assets carried at fair value. The Company monitors the internal and external credit ratings of these loans and loan performance. The Company also considers any guarantees made by Prudential Insurance for loans due from affiliates. Accrued interest receivable related to these loans was $1 million at both June 30, 2022 and December 31, 2021, and is included in “Other assets”. Revenues related to these loans were $1 million for both the three months ended June 30, 2022 and 2021, and $2 million for both the six months ended June 30, 2022 and 2021, and are included in “Other income (loss)”. Affiliated Commercial Mortgage Loan The affiliated commercial mortgage loan included in "Commercial mortgage and other loans" at June 30, 2022 and December 31, 2021 were as follows: Maturity Date Interest Rate June 30, 2022 December 31, 2021 (in thousands) Affiliated Commercial Mortgage Loan 2025 5.62% $ 72,818 $ 73,412 This affiliated commercial mortgage loan was transferred from PALAC as part of the 2021 Variable Annuities Recapture. See Note 1 for details. 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 $0.3 million at June 30, 2022 and is included in "Accrued investment income". Revenues were $1 million for the three months ended June 30, 2022 and $1 million for the six months ended June 30, 2022, 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 six months ended June 30, 2022 and for the year ended December 31, 2021, excluding those related to the 2021 Variable Annuities Recapture effective July 1, 2021, as described in Note 1 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021. Affiliate Date Transaction Security Type Fair Value Book Value APIC, Net of Tax Increase/(Decrease) Realized (in thousands) 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 Affiliate Date Transaction Security Type Fair Value Book Value APIC, Net of Tax Increase/(Decrease) Realized (in thousands) 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 PAR U November 2021 Purchase Fixed Maturities $ 41,021 $ 41,021 $ 0 $ 0 PALAC November 2021 Purchase Derivatives $ 1,112 $ 1,112 $ 0 $ 0 PALAC December 2021 Transfer In Fixed Maturities $ 2,037,320 $ 2,037,320 $ 0 $ 0 PURC December 2021 Purchase Fixed Maturities $ 48,041 $ 48,041 $ 0 $ 0 PALAC December 2021 Purchase Fixed Maturities $ 57,087 $ 57,087 $ 0 $ 0 PALAC December 2021 Transfer In Commercial Mortgage and Other Loans $ 517,309 $ 517,309 $ 0 $ 0 Prudential Insurance December 2021 Contributed Capital Fixed Maturities $ 166,676 $ 166,676 $ 0 $ 0 Prudential Retirement Insurance & Annuity Co December 2021 Sale Derivatives $ 31,567 $ 0 $ 0 $ 31,567 Prudential Retirement Insurance & Annuity Co December 2021 Purchase Derivatives $ 73,572 $ 73,572 $ 0 $ 0 PALAC December 2021 Purchase Derivatives $ 8,455 $ 8,455 $ 0 $ 0 PALAC January 2022 Purchase Fixed Maturities $ 4,432 $ 4,432 $ 0 $ 0 PALAC January 2022 Purchase Derivatives $ 404 $ 404 $ 0 $ 0 PALAC February 2022 Purchase Fixed Maturities $ 128,909 $ 128,909 $ 0 $ 0 Affiliate Date Transaction Security Type Fair Value Book Value APIC, Net of Tax Increase/(Decrease) Realized (in thousands) PAR U April 2022 Purchase Fixed Maturities $ 48,970 $ 48,970 $ 0 $ 0 Prudential Insurance May 2022 Purchase Fixed Maturities $ 233,426 $ 241,128 $ 6,085 $ 0 Prudential Insurance June 2022 Purchase Fixed Maturities $ 88,754 $ 81,216 $ (5,955) $ 0 Prudential Insurance June 2022 Transfer In Fixed Maturities $ 52,089 $ 45,031 $ (5,577) $ 0 Prudential Insurance June 2022 Transfer Out Fixed Maturities $ 48,786 $ 58,984 $ (8,057) $ 0 PAR U June 2022 Purchase Commercial Mortgage and Other Loans $ 6,492 $ 6,492 $ 0 $ 0 PAR U June 2022 Sale Commercial Mortgage and Other Loans $ 14,853 $ 15,725 $ 0 $ (872) GUL Re June 2022 Purchase Commercial Mortgage and Other Loans $ 13,551 $ 13,551 $ 0 $ 0 GUL Re June 2022 Sale Commercial Mortgage and Other Loans $ 8,692 $ 9,033 $ 0 $ (341) PURC June 2022 Purchase Commercial Mortgage and Other Loans $ 4,403 $ 4,403 $ 0 $ 0 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 long-term debt to affiliates as of June 30, 2022 and December 31, 2021: Affiliate Date Amount of Notes - June 30, 2022 Amount of Notes - December 31, 2021 Interest Rate Date of Maturity (in thousands) Prudential Insurance 8/13/2021 $ 98,222 $ 99,770 4.39 % 12/15/2023 Prudential Insurance 8/13/2021 29,466 29,931 4.39 % 12/15/2023 Prudential Insurance 8/13/2021 99,010 100,348 3.95 % 6/20/2024 Prudential Insurance 8/13/2021 39,604 40,139 3.95 % 6/20/2024 Prudential Insurance 8/13/2021 49,505 50,174 3.95 % 6/20/2024 Total Loans Payable to Affiliates $ 315,807 $ 320,362 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 is amortized into earnings over the life of the loans. The total interest expense to the Company related to affiliated loans and cash collateral with PGF was $(5) million and $0 million for the three months ended June 30, 2022 and 2021, respectively, and $(5) million and $0 million for the six months ended June 30, 2022 and 2021, respectively. Contributed Capital and Dividends In March and June 2022, the Company received a capital contribution in the amount of $8 million and $3 million, respectively, from Prudential Insurance. In January, July and December of 2021, the Company received capital contributions in the amount of $106 million, $3,813 million and $457 million, respectively, from Prudential Insurance. The December 2021 capital contribution includes $167 million of invested assets related to the Reinsurance Agreement with PALAC. 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. Through June 2022 and December 2021, 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 | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | COMMITMENTS AND CONTINGENT LIABILITIES Commitments The Company has made commitments to fund commercial mortgage loans. As of June 30, 2022 and December 31, 2021, the outstanding balances on these commitments were $121 million and $121 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 June 30, 2022 and December 31, 2021. There was a change in allowance of $0.0 million for both the three and six months ended June 30, 2022 and 2021. The Company also made commitments to purchase or fund investments, mostly private fixed maturities. As of June 30, 2022 and December 31, 2021, $586 million and $753 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 six months ended June 30, 2022 or 2021. 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 $33 million as of June 30, 2022 and had a liability of $34 million as of December 31, 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 June 30, 2022, 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, 2021, and should be read in conjunction with the complete descriptions provided in the Form 10-K. There are no material developments in previously reported matters disclosed as of December 31, 2021. 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) | 6 Months Ended |
Jun. 30, 2022 | |
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. 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, 2021. |
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. |
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 June 30, 2022, 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 June 30, 2022 — ASU 2018-12 ASU 2018-12 , Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, was issued by the FASB on August 15, 2018, and was amended by ASU 2019-09, Financial Services - Insurance (Topic 944): Effective Date , issued in October 2019, and ASU 2020-11, Financial Services-Insurance (Topic 944): Effective Date and Early Application , issued in November 2020. The Company will adopt ASU 2018-12 effective January 1, 2023 using the modified retrospective transition method where permitted, and apply the guidance as of January 1, 2021 (and record transition adjustments as of January 1, 2021) in the 2023 financial statements. 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 increase disclosures. In addition to the significant impacts to the balance sheet, 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 policy 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 will adopt this guidance effective January 1, 2023 using the modified retrospective transition method. As a result of the modified retrospective transition method, the Company expects the vast majority of the impact of updating cash flow assumptions as of the transition date to be reflected in the pattern of earnings in subsequent periods. 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 will adopt the guidance for the liability for future policy benefits effective January 1, 2023 using the modified retrospective transition method. The Company expects a decrease to AOCI as a result of remeasuring in force contract liabilities using upper-medium grade fixed income instrument yields as of the adoption date. The adjustment will largely reflect the difference between discount rates locked-in at contract inception versus discount rates as of the adoption date. 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 deferred sales inducements, 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 will adopt this guidance effective January 1, 2023 using the modified retrospective transition method. Under the modified retrospective transition method, the Company does 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 will adopt this guidance effective January 1, 2023 using the retrospective transition method. Upon adoption, the Company expects a decrease to “Retained earnings” and an offsetting increase to AOCI from reclassifying the cumulative effect of changes in NPR from retained earnings to AOCI. The Company also expects an impact to "Retained earnings" related to 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). The magnitude of such adjustments is currently being assessed. Other ASU issued but not yet adopted as of June 30, 2022 Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosure This ASU eliminates the accounting guidance for Troubled Debt Restructurings (“TDR”) for creditors and adds enhanced disclosure requirements for certain loan refinancings and restructurings by creditors made to borrowers experiencing financial difficulty. Following adoption of the ASU, all loan refinancings and restructurings are subject to the modification guidance in ASC 310-20. This ASU also amends the guidance on the vintage disclosures to require disclosure of current-period gross write-offs by year of origination. January 1, 2023 using the prospective method with an option to apply a modified retrospective transition method for the recognition and measurement of TDRs which will include a cumulative effect adjustment on the balance sheet in the period of adoption. Early adoption is permitted beginning January 1, 2022, including adoption in an interim period provided guidance is applied as of the beginning of the year. The Company does not expect the adoption of the ASU to have a significant impact on the Consolidated Financial Statements and Notes to the Consolidated Financial Statements. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments [Abstract] | |
Fixed Maturities, Available-for-sale Securities | The following tables set forth the composition of fixed maturity securities (excluding investments classified as trading), as of the dates indicated: June 30, 2022 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 $ 636,878 $ 1,921 $ 44,925 $ 0 $ 593,874 Obligations of U.S. states and their political subdivisions 569,296 5,347 20,633 0 554,010 Foreign government bonds 319,719 705 51,864 116 268,444 U.S. public corporate securities 6,034,911 29,418 736,312 0 5,328,017 U.S. private corporate securities 2,509,630 6,792 228,868 1,831 2,285,723 Foreign public corporate securities 1,222,452 2,629 136,018 0 1,089,063 Foreign private corporate securities 3,140,859 190 503,503 2,863 2,634,683 Asset-backed securities(1) 925,707 322 31,476 0 894,553 Commercial mortgage-backed securities 740,060 723 46,095 0 694,688 Residential mortgage-backed securities(2) 98,196 526 2,821 0 95,901 Total fixed maturities, available-for-sale $ 16,197,708 $ 48,573 $ 1,802,515 $ 4,810 $ 14,438,956 (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, 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 $ 303,040 $ 31,011 $ 111 $ 0 $ 333,940 Obligations of U.S. states and their political subdivisions 584,244 46,978 701 0 630,521 Foreign government bonds 324,454 29,299 3,271 11 350,471 U.S. public corporate securities 4,794,878 366,764 29,770 0 5,131,872 U.S. private corporate securities 1,964,767 59,037 16,880 2,049 2,004,875 Foreign public corporate securities 906,031 34,234 10,363 0 929,902 Foreign private corporate securities 2,741,449 62,932 48,381 2,089 2,753,911 Asset-backed securities(1) 547,549 860 1,099 0 547,310 Commercial mortgage-backed securities 552,653 25,928 3,397 0 575,184 Residential mortgage-backed securities(2) 18,684 1,501 5 0 20,180 Total fixed maturities, available-for-sale $ 12,737,749 $ 658,544 $ 113,978 $ 4,149 $ 13,278,166 (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. |
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: June 30, 2022 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 $ 446,399 $ 44,627 $ 1,909 $ 298 $ 448,308 $ 44,925 Obligations of U.S. states and their political subdivisions 332,051 20,633 0 0 332,051 20,633 Foreign government bonds 222,423 42,170 23,269 9,688 245,692 51,858 U.S. public corporate securities 4,343,243 670,173 170,150 66,139 4,513,393 736,312 U.S. private corporate securities 2,062,339 215,192 100,094 13,676 2,162,433 228,868 Foreign public corporate securities 825,007 119,741 60,464 16,277 885,471 136,018 Foreign private corporate securities 2,441,224 466,582 162,515 36,921 2,603,739 503,503 Asset-backed securities 592,720 26,070 53,576 5,406 646,296 31,476 Commercial mortgage-backed securities 490,544 36,875 46,379 9,220 536,923 46,095 Residential mortgage-backed securities 37,902 2,821 0 0 37,902 2,821 Total fixed maturities, available-for-sale $ 11,793,852 $ 1,644,884 $ 618,356 $ 157,625 $ 12,412,208 $ 1,802,509 December 31, 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 $ 0 $ 0 $ 2,119 $ 111 $ 2,119 $ 111 Obligations of U.S. states and their political subdivisions 104,621 701 0 0 104,621 701 Foreign government bonds 59,550 2,826 6,473 371 66,023 3,197 U.S. public corporate securities 1,681,201 23,160 180,249 6,610 1,861,450 29,770 U.S. private corporate securities 972,796 14,036 16,409 2,844 989,205 16,880 Foreign public corporate securities 532,445 8,255 29,718 2,108 562,163 10,363 Foreign private corporate securities 1,253,739 42,392 57,637 5,616 1,311,376 48,008 Asset-backed securities 288,971 1,099 0 0 288,971 1,099 Commercial mortgage-backed securities 157,355 1,622 40,689 1,775 198,044 3,397 Residential mortgage-backed securities 1,393 5 0 0 1,393 5 Total fixed maturities, available-for-sale $ 5,052,071 $ 94,096 $ 333,294 $ 19,435 $ 5,385,365 $ 113,531 |
Fixed Maturities Classified by Contractual Maturity Date | The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated: June 30, 2022 Amortized Cost Fair Value (in thousands) Fixed maturities, available-for-sale: Due in one year or less $ 404,018 $ 389,373 Due after one year through five years 3,869,672 3,619,474 Due after five years through ten years 4,198,773 3,645,235 Due after ten years 5,961,282 5,099,732 Asset-backed securities 925,707 894,553 Commercial mortgage-backed securities 740,060 694,688 Residential mortgage-backed securities 98,196 95,901 Total fixed maturities, available-for-sale $ 16,197,708 $ 14,438,956 |
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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 403,660 $ 283,241 $ 678,089 $ 316,990 Proceeds from maturities/prepayments 110,426 96,373 230,787 170,458 Gross investment gains from sales and maturities (652) 8,156 (1,358) 8,508 Gross investment losses from sales and maturities (22,461) (9,087) (41,903) (11,656) Write-downs recognized in earnings(2) (19,519) 0 (19,516) (2) (Addition to) release of allowance for credit losses 15,915 2,300 (661) 1,781 (1) Excludes activities from non-cash related proceeds due to the timing of trade settlements of $(31.2) million and $(16.9) million for the six months ended June 30, 2022 and 2021, respectively. (2) Amounts represent write-downs of credit adverse securities and securities actively marketed for sale. |
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 June 30, 2022 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 $ 399 $ 20,326 $ 0 $ 0 $ 0 $ 20,725 Additions to allowance for credit losses not previously recorded 0 0 2,904 0 0 0 2,904 Reductions for securities sold during the period 0 (1) (1,202) 0 0 0 (1,203) Reductions for securities with intent to sell 0 (324) (16,666) 0 0 0 (16,990) Addition (reductions) on securities with previous allowance 0 42 (668) 0 0 0 (626) Balance, end of period $ 0 $ 116 $ 4,694 $ 0 $ 0 $ 0 $ 4,810 Three Months Ended June 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 $ 2,858 $ 0 $ 0 $ 0 $ 2,858 Reductions for securities sold during the period 0 0 (14) 0 0 0 (14) Addition (reductions) on securities with previous allowance 0 0 (2,286) 0 0 0 (2,286) Balance, end of period $ 0 $ 0 $ 558 $ 0 $ 0 $ 0 $ 558 Six Months Ended June 30, 2022 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 $ 11 $ 4,138 $ 0 $ 0 $ 0 $ 4,149 Additions to allowance for credit losses not previously recorded 0 329 12,162 0 0 0 12,491 Reductions for securities sold during the period 0 (4) (1,202) 0 0 0 (1,206) Reductions for securities with intent to sell 0 (324) (16,666) 0 0 0 (16,990) Addition (reductions) on securities with previous allowance 0 104 6,262 0 0 0 6,366 Balance, end of period $ 0 $ 116 $ 4,694 $ 0 $ 0 $ 0 $ 4,810 Six Months Ended June 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 Reductions for securities sold during the period 0 0 (25) 0 0 0 (25) Addition (reductions) on securities with previous allowance 0 0 (1,756) 0 0 0 (1,756) Balance, end of period $ 0 $ 0 $ 558 $ 0 $ 0 $ 0 $ 558 |
Commercial Mortgage and Other Loans | The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: June 30, 2022 December 31, 2021 Amount % of Amount % of Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 792,222 25.8 % $ 748,414 26.4 % Hospitality 83,476 2.7 48,141 1.7 Industrial 1,064,620 34.6 916,398 32.2 Office 459,646 14.9 445,055 15.7 Other 254,714 8.3 252,590 8.9 Retail 228,494 7.4 255,577 9.0 Total commercial mortgage loans 2,883,172 93.7 2,666,175 93.9 Agricultural property loans 193,683 6.3 172,336 6.1 Total commercial mortgage and agricultural property loans 3,076,855 100.0 % 2,838,511 100.0 % Allowance for credit losses (9,924) (5,951) Total net commercial mortgage and agricultural property loans $ 3,066,931 $ 2,832,560 |
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 June 30, 2022 2021 Commercial Mortgage Loans Agricultural Property Loans Total Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance, beginning of period $ 6,324 $ 122 $ 6,446 $ 4,309 $ 5 $ 4,314 Addition to (release of) allowance for expected losses 3,380 98 3,478 (929) 19 (910) Allowance, end of period $ 9,704 $ 220 $ 9,924 $ 3,380 $ 24 $ 3,404 Six Months Ended June 30, 2022 2021 Commercial Mortgage Loans Agricultural Property Loans Total Commercial Mortgage Loans Agricultural Property Loans Total (in thousands) Allowance, beginning of period $ 5,847 $ 104 $ 5,951 $ 4,546 $ 6 $ 4,552 Addition to (release of) allowance for expected losses 3,857 116 3,973 (1,166) 18 (1,148) Allowance, end of period $ 9,704 $ 220 $ 9,924 $ 3,380 $ 24 $ 3,404 |
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: June 30, 2022 Amortized Cost by Origination Year 2022 2021 2020 2019 2018 Prior Total (in thousands) Commercial mortgage loans Loan-to-Value Ratio: 0%-59.99% $ 36,935 $ 47,157 $ 5,584 $ 164,712 $ 83,681 $ 619,216 $ 957,285 60%-69.99% 176,681 324,556 237,578 273,374 165,783 250,876 1,428,848 70%-79.99% 129,179 146,541 71,275 72,099 2,728 74,270 496,092 80% or greater 0 0 0 0 0 947 947 Total $ 342,795 $ 518,254 $ 314,437 $ 510,185 $ 252,192 $ 945,309 $ 2,883,172 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 342,795 $ 501,528 $ 199,237 $ 448,221 $ 245,427 $ 843,926 $ 2,581,134 1.0 - 1.2x 0 16,726 108,998 39,097 6,765 45,452 217,038 Less than 1.0x 0 0 6,202 22,867 0 55,931 85,000 Total $ 342,795 $ 518,254 $ 314,437 $ 510,185 $ 252,192 $ 945,309 $ 2,883,172 Agricultural property loans Loan-to-Value Ratio: 0%-59.99% $ 27,995 $ 99,101 $ 26,184 $ 16,121 $ 6,343 $ 17,939 $ 193,683 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 $ 27,995 $ 99,101 $ 26,184 $ 16,121 $ 6,343 $ 17,939 $ 193,683 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 27,995 $ 99,101 $ 26,184 $ 16,121 $ 6,343 $ 17,151 $ 192,895 1.0 - 1.2x 0 0 0 0 0 0 0 Less than 1.0x 0 0 0 0 0 788 788 Total $ 27,995 $ 99,101 $ 26,184 $ 16,121 $ 6,343 $ 17,939 $ 193,683 December 31, 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% $ 47,161 $ 0 $ 179,682 $ 76,656 $ 126,934 $ 553,022 $ 983,455 60%-69.99% 307,999 225,330 289,322 170,444 126,159 116,654 1,235,908 70%-79.99% 163,451 86,083 75,185 13,728 55,032 51,203 444,682 80% or greater 0 0 0 0 958 1,172 2,130 Total $ 518,611 $ 311,413 $ 544,189 $ 260,828 $ 309,083 $ 722,051 $ 2,666,175 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 501,456 $ 195,164 $ 481,289 $ 253,938 $ 289,443 $ 638,092 $ 2,359,382 1.0 - 1.2x 17,155 109,862 39,577 6,890 7,100 39,213 219,797 Less than 1.0x 0 6,387 23,323 0 12,540 44,746 86,996 Total $ 518,611 $ 311,413 $ 544,189 $ 260,828 $ 309,083 $ 722,051 $ 2,666,175 Agricultural property loans Loan-to-Value Ratio: 0%-59.99% $ 98,579 $ 26,581 $ 16,226 $ 6,463 $ 8,372 $ 16,115 $ 172,336 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 $ 98,579 $ 26,581 $ 16,226 $ 6,463 $ 8,372 $ 16,115 $ 172,336 Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 98,579 $ 26,581 $ 16,226 $ 6,463 $ 8,372 $ 15,300 $ 171,521 1.0 - 1.2x 0 0 0 0 0 0 0 Less than 1.0x 0 0 0 0 0 815 815 Total $ 98,579 $ 26,581 $ 16,226 $ 6,463 $ 8,372 $ 16,115 $ 172,336 |
Aging of Past Due Commercial Mortgage and Other Loans and Nonaccrual Status | The following tables set forth an aging of past due commercial mortgage and other loans based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated: June 30, 2022 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 $ 2,883,172 $ 0 $ 0 $ 0 $ 2,883,172 $ 0 Agricultural property loans 193,683 0 0 0 193,683 0 Total $ 3,076,855 $ 0 $ 0 $ 0 $ 3,076,855 $ 0 (1) As of June 30, 2022, 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, 2021. December 31, 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 $ 2,666,175 $ 0 $ 0 $ 0 $ 2,666,175 $ 0 Agricultural property loans 172,336 0 0 0 172,336 0 Total $ 2,838,511 $ 0 $ 0 $ 0 $ 2,838,511 $ 0 (1) As of December 31, 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, 2021. |
Other Invested Assets | The following table sets forth the composition of “Other invested assets,” as of the dates indicated: June 30, 2022 December 31, 2021 (in thousands) Company’s investment in separate accounts $ 716 $ 53,694 LPs/LLCs: Equity method: Private equity 306,449 286,141 Hedge funds 440,632 432,749 Real estate-related 102,821 89,337 Subtotal equity method 849,902 808,227 Fair value: Private equity 66,186 69,137 Hedge funds 456 481 Real estate-related 9,726 9,861 Subtotal fair value 76,368 79,479 Total LPs/LLCs 926,270 887,706 Derivative instruments 37,766 268,525 Total other invested assets $ 964,752 $ 1,209,925 |
Accrued Investment Income | The following table sets forth the composition of “Accrued investment income,” as of the dates indicated: June 30, 2022 December 31, 2021 (in thousands) Fixed maturities $ 137,177 $ 117,216 Equity securities 236 2 Commercial mortgage and other loans 8,517 7,025 Policy loans 14,749 35,153 Other invested assets 50 254 Short-term investments and cash equivalents 974 377 Total accrued investment income $ 161,703 $ 160,027 |
Net Investment Income | The following table sets forth “Net investment income” by investment type, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Fixed maturities, available-for-sale $ 121,986 $ 63,630 $ 231,177 $ 123,588 Fixed maturities, trading 12,479 544 28,044 1,075 Equity securities 1,190 102 1,352 205 Commercial mortgage and other loans 22,801 13,322 45,049 26,748 Policy loans 5,153 17,315 10,219 34,349 Other invested assets 38,243 5,735 75,033 18,808 Short-term investments and cash equivalents 3,441 33 4,089 160 Gross investment income 205,293 100,681 394,963 204,933 Less: investment expenses (13,165) (5,381) (23,535) (10,766) Net investment income $ 192,128 $ 95,300 $ 371,428 $ 194,167 |
Realized Investment Gains (Losses), Net | The following table sets forth “Realized investment gains (losses), net” by investment type, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Fixed maturities(1) $ (26,717) $ 1,369 $ (63,438) $ (1,369) Commercial mortgage and other loans (5,756) 910 (6,359) 1,148 Other invested assets 1,894 887 3,536 909 Derivatives 745,236 (125,662) 1,565,289 (46,571) Short-term investments and cash equivalents 52 (6) (212) (11) Realized investment gains (losses), net $ 714,709 $ (122,502) $ 1,498,816 $ (45,894) (1) Includes fixed maturity securities classified as available-for-sale and excludes fixed maturity securities classified as trading. |
Net Unrealized Gains and (Losses) on Investments | The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated: June 30, 2022 December 31, 2021 (in thousands) Fixed maturity securities, available-for-sale with an allowance $ 3,518 $ 3,685 Fixed maturity securities, available-for-sale without an allowance (1,757,460) 540,881 Derivatives designated as cash flow hedges(1) 144,390 39,896 Affiliated notes (10,756) 73 Other investments(2) 1,846 1,854 Net unrealized gains (losses) on investments $ (1,618,462) $ 586,389 (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: June 30, 2022 December 31, 2021 Remaining Contractual Maturities of the Agreements Remaining Contractual Maturities of the Agreements Overnight & Continuous Up to 30 Days Total Overnight & Continuous Up to 30 Days Total (in thousands) U.S. public corporate securities $ 5,528 $ 0 $ 5,528 $ 3,004 $ 0 $ 3,004 Foreign public corporate securities 2,163 0 2,163 0 0 0 Equity securities 142,975 0 142,975 0 0 0 Total cash collateral for loaned securities(1) $ 150,666 $ 0 $ 150,666 $ 3,004 $ 0 $ 3,004 (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) | 6 Months Ended |
Jun. 30, 2022 | |
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 of the netting effects of master netting agreements and cash collateral. June 30, 2022 December 31, 2021 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 $ 3,267 $ 0 $ (190) $ 3,344 $ 55 $ 0 Foreign Currency Swaps 1,376,431 156,102 (9) 886,552 37,259 (6,900) Total Derivatives Designated as Hedge Accounting Instruments $ 1,379,698 $ 156,102 $ (199) $ 889,896 $ 37,314 $ (6,900) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 135,289,710 $ 5,468,843 $ (13,071,332) $ 130,358,860 $ 5,698,740 $ (10,348,130) Interest Rate Options 9,193,000 85,071 (253,193) 9,883,000 280,323 (173,863) Interest Rate Futures 1,670,300 34,624 (14,782) 4,109,300 2,876 (2,709) Interest Rate Forwards 115,000 0 (5,002) 195,000 3,760 (991) Foreign Currency Foreign Currency Forwards 259,344 8,765 (605) 119,653 842 (1,063) Credit Credit Default Swaps 2,079,750 0 (3,238) 306,900 24,789 0 Currency/Interest Rate Foreign Currency Swaps 1,926,100 180,430 (4,517) 2,139,523 68,477 (23,251) Equity Total Return Swaps 12,393,180 854,969 (159,232) 15,129,666 66,627 (475,209) Equity Options 36,440,892 564,881 (970,460) 19,461,881 902,050 (1,535,272) Equity Futures 2,993,322 1,611 (21,453) 5,015,002 736 (6,595) Total Derivatives Not Qualifying as Hedge Accounting Instruments $ 202,360,598 $ 7,199,194 $ (14,503,814) $ 186,718,785 $ 7,049,220 $ (12,567,083) Total Derivatives(1)(2) $ 203,740,296 $ 7,355,296 $ (14,504,013) $ 187,608,681 $ 7,086,534 $ (12,573,983) (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 $5,707 million and $9,048 million as of June 30, 2022 and December 31, 2021, respectively included in "Future policy benefits" and $3,428 million and $3,246 million as of June 30, 2022 and December 31, 2021, respectively included in "Policyholders' account balances". Other assets included $76 million and $73 million as of June 30, 2022 and December 31, 2021, respectively. Other liabilities included $24 million and $13 million as of June 30, 2022 and December 31, 2021, respectively. The fair value of the related reinsurance, included in "Reinsurance recoverables" and/or "Reinsurance payables" was an asset of $555 million and $931 million as of June 30, 2022 and December 31, 2021, 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. June 30, 2022 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 7,355,296 $ (7,317,530) $ 37,766 $ 0 $ 37,766 Securities purchased under agreements to resell 0 0 0 0 0 Total Assets $ 7,355,296 $ (7,317,530) $ 37,766 $ 0 $ 37,766 Offsetting of Financial Liabilities: Derivatives $ 14,504,013 $ (14,428,241) $ 75,772 $ (75,772) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 14,504,013 $ (14,428,241) $ 75,772 $ (75,772) $ 0 December 31, 2021 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 7,086,534 $ (6,818,009) $ 268,525 $ 0 $ 268,525 Securities purchased under agreements to resell 185,000 0 185,000 (185,000) 0 Total Assets $ 7,271,534 $ (6,818,009) $ 453,525 $ (185,000) $ 268,525 Offsetting of Financial Liabilities: Derivatives $ 12,573,983 $ (12,568,082) $ 5,901 $ (5,901) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 12,573,983 $ (12,568,082) $ 5,901 $ (5,901) $ 0 (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. |
Offsetting Of Financial Liabilities | The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position. June 30, 2022 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 7,355,296 $ (7,317,530) $ 37,766 $ 0 $ 37,766 Securities purchased under agreements to resell 0 0 0 0 0 Total Assets $ 7,355,296 $ (7,317,530) $ 37,766 $ 0 $ 37,766 Offsetting of Financial Liabilities: Derivatives $ 14,504,013 $ (14,428,241) $ 75,772 $ (75,772) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 14,504,013 $ (14,428,241) $ 75,772 $ (75,772) $ 0 December 31, 2021 Gross Gross Net Amounts Financial Net (in thousands) Offsetting of Financial Assets: Derivatives $ 7,086,534 $ (6,818,009) $ 268,525 $ 0 $ 268,525 Securities purchased under agreements to resell 185,000 0 185,000 (185,000) 0 Total Assets $ 7,271,534 $ (6,818,009) $ 453,525 $ (185,000) $ 268,525 Offsetting of Financial Liabilities: Derivatives $ 12,573,983 $ (12,568,082) $ 5,901 $ (5,901) $ 0 Securities sold under agreements to repurchase 0 0 0 0 0 Total Liabilities $ 12,573,983 $ (12,568,082) $ 5,901 $ (5,901) $ 0 (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables provide the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship. Three Months Ended June 30, 2022 Realized Net Other Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ 0 $ 4 $ 0 $ (64) Currency/Interest Rate 417 8,717 33,483 91,734 Total cash flow hedges 417 8,721 33,483 91,670 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (1,670,415) 0 0 0 Currency 15,504 0 0 0 Currency/Interest Rate 114,645 0 290 0 Credit (38,726) 0 0 0 Equity 933,277 0 0 0 Embedded Derivatives 1,390,534 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments 744,819 0 290 0 Total $ 745,236 $ 8,721 $ 33,773 $ 91,670 Six Months Ended June 30, 2022 Realized Net Other Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ 1 $ 16 $ 0 $ (221) Currency/Interest Rate (354) 16,566 40,183 104,715 Total cash flow hedges (353) 16,582 40,183 104,494 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (3,296,352) 0 0 0 Currency 19,801 0 0 0 Currency/Interest Rate 112,937 0 0 0 Credit (41,449) 0 403 0 Equity 1,324,537 0 0 0 Embedded Derivatives 3,446,168 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments 1,565,642 0 403 0 Total $ 1,565,289 $ 16,582 $ 40,586 $ 104,494 Three Months Ended June 30, 2021 Realized Net Other Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ 0 $ 12 $ 0 $ 26 Currency/Interest Rate 69 2,330 (595) 15,635 Total cash flow hedges 69 2,342 (595) 15,661 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 16,719 0 0 0 Currency (203) 0 0 0 Currency/Interest Rate 2,898 0 (3) 0 Credit 0 0 0 0 Equity 19,694 0 0 0 Embedded Derivatives (164,839) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (125,731) 0 (3) 0 Total $ (125,662) $ 2,342 $ (598) $ 15,661 Six Months Ended June 30, 2021 Realized Net Other Change in AOCI (in thousands) Derivatives Designated as Hedge Accounting Instruments: Cash flow hedges Interest Rate $ 1 $ 23 $ 0 $ (99) Currency/Interest Rate (94) 4,791 1,121 20,459 Total cash flow hedges (93) 4,814 1,121 20,360 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (20,652) 0 0 0 Currency 834 0 0 0 Currency/Interest Rate 3,090 0 (14) 0 Credit (12) 0 0 0 Equity 35,256 0 0 0 Embedded Derivatives (64,994) 0 0 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments (46,478) 0 (14) 0 Total $ (46,571) $ 4,814 $ 1,107 $ 20,360 |
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, 2021 $ 39,896 Amount recorded in AOCI Interest Rate (204) Currency/Interest Rate 161,110 Total amount recorded in AOCI 160,906 Amount reclassified from AOCI to income Interest Rate (17) Currency/Interest Rate (56,395) Total amount reclassified from AOCI to income (56,412) Balance, June 30, 2022 $ 144,390 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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. June 30, 2022 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 $ 593,874 $ 0 $ $ 593,874 Obligations of U.S. states and their political subdivisions 0 554,010 0 554,010 Foreign government bonds 0 268,309 135 268,444 U.S. corporate public securities 0 5,328,017 0 5,328,017 U.S. corporate private securities 0 2,112,731 172,992 2,285,723 Foreign corporate public securities 0 1,081,970 7,093 1,089,063 Foreign corporate private securities 0 2,496,890 137,793 2,634,683 Asset-backed securities(2) 0 860,209 34,344 894,553 Commercial mortgage-backed securities 0 605,744 88,944 694,688 Residential mortgage-backed securities 0 95,901 0 95,901 Subtotal 0 13,997,655 441,301 14,438,956 Fixed maturities, trading 0 1,814,999 0 1,814,999 Equity securities 184,148 15,337 29,783 229,268 Short-term investments 0 139,109 2,772 141,881 Cash equivalents 0 917,443 0 917,443 Other invested assets(3) 36,359 7,318,937 0 (7,317,530) 37,766 Other assets 0 0 75,858 75,858 Reinsurance recoverables 0 0 555,053 555,053 Receivables from parent and affiliates 0 150,946 0 150,946 Subtotal excluding separate account assets 220,507 24,354,426 1,104,767 (7,317,530) 18,362,170 Separate account assets(4)(5) 68,279 113,591,798 0 113,660,077 Total assets $ 288,786 $ 137,946,224 $ 1,104,767 $ (7,317,530) $ 132,022,247 Future policy benefits(6) $ 0 $ 0 $ 5,706,968 $ $ 5,706,968 Policyholders' account balances 0 0 3,427,667 3,427,667 Payables to parent and affiliates 0 14,467,750 0 (14,424,444) 43,306 Other liabilities 36,235 (24,189) 0 (3,797) 8,249 Total liabilities $ 36,235 $ 14,443,561 $ 9,134,635 $ (14,428,241) $ 9,186,190 December 31, 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 $ 333,940 $ 0 $ $ 333,940 Obligations of U.S. states and their political subdivisions 0 630,521 0 630,521 Foreign government bonds 0 350,321 150 350,471 U.S. corporate public securities 0 5,131,872 0 5,131,872 U.S. corporate private securities 0 1,873,370 131,505 2,004,875 Foreign corporate public securities 0 921,008 8,894 929,902 Foreign corporate private securities 0 2,508,676 245,235 2,753,911 Asset-backed securities(2) 0 484,861 62,449 547,310 Commercial mortgage-backed securities 0 463,689 111,495 575,184 Residential mortgage-backed securities 0 20,180 0 20,180 Subtotal 0 12,718,438 559,728 13,278,166 Fixed maturities, trading 0 3,302,392 0 3,302,392 Equity securities 58,160 40,635 12,472 111,267 Short-term investments 9,997 135,440 0 145,437 Cash equivalents 13,999 422,633 0 436,632 Other invested assets(3) 246,097 6,840,437 0 (6,818,009) 268,525 Other assets 0 0 72,937 72,937 Reinsurance recoverables 0 0 931,207 931,207 Receivables from parent and affiliates 0 162,045 0 162,045 Subtotal excluding separate account assets 328,253 23,622,020 1,576,344 (6,818,009) 18,708,608 Separate account assets(4)(5) 52,100 144,059,558 0 144,111,658 Total assets $ 380,353 $ 167,681,578 $ 1,576,344 $ (6,818,009) $ 162,820,266 Future policy benefits(6) $ 0 $ 0 $ 9,047,956 $ $ 9,047,956 Policyholders' account balances 0 0 3,245,773 3,245,773 Payables to parent and affiliates 0 12,563,253 0 (12,563,253) 0 Other liabilities 10,730 12,624 0 (4,829) 18,525 Total liabilities $ 10,730 $ 12,575,877 $ 12,293,729 $ (12,568,082) $ 12,312,254 (1) “Netting” amounts represent cash collateral of $(7,111) million and $(5,750) million as of June 30, 2022 and December 31, 2021, 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 June 30, 2022 and December 31, 2021, the fair values of such investments were $76 million and $79 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 June 30, 2022 and December 31, 2021, the fair value of such investments was $5,132 million and $5,686 million, respectively. (6) As of June 30, 2022, the net embedded derivative liability position of $5,707 million includes $714 million of embedded derivatives in an asset position and $6,421 million of embedded derivatives in a liability position. As of December 31, 2021, the net embedded derivative liability position of $9,048 million includes $610 million of embedded derivatives in an asset position and $9,658 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. June 30, 2022 Fair Value Valuation Unobservable Inputs Minimum Maximum Weighted Average Impact of (in thousands) Assets: Corporate securities(2) $ 237,632 Discounted cash flow Discount rate 10.26 % 20 % 12.67 % Decrease Market Comparables EBITDA multiples(3) 1.8 X 18.5 X 7.5 X Increase Reinsurance recoverables $ 555,053 Fair values are determined using the same unobservable inputs as future policy benefits. Liabilities: Future policy benefits(4) $ 5,706,968 Discounted cash flow Lapse rate(6) 1 % 20 % Decrease Spread over SOFR(7) 0.51 % 2.14 % Decrease Utilization rate(8) 38 % 95 % Increase Withdrawal rate See table footnote (9) below. Mortality rate(10) 0 % 15 % Decrease Equity volatility curve 18 % 28 % Increase Policyholders' account balances(5) $ 3,427,667 Discounted cash flow Lapse rate(6) 1 % 80 % Decrease Spread over SOFR(7) 0.24 % 2.14 % Decrease Mortality rate(10) 0 % 23 % Decrease Equity volatility curve 6 % 36 % Increase December 31, 2021 Fair Value Valuation Unobservable Minimum Maximum Weighted Impact of (in thousands) Assets: Corporate securities(2) $ 312,139 Discounted cash flow Discount rate 1.65 % 20 % 4.57 % Decrease Market Comparables EBITDA multiples(3) 4.9X 19.2X 9.0X Increase Liquidation Liquidation value 62.58 % 62.58 % 62.58 % Increase Reinsurance recoverables $ 931,207 Fair values are determined using the same unobservable inputs as future policy benefits. Liabilities: Future policy benefits(4) $ 9,047,956 Discounted cash flow Lapse rate(6) 1 % 20 % Decrease Spread over LIBOR(7) 0.03 % 1.13 % Decrease Utilization rate(8) 39 % 96 % Increase Withdrawal rate See table footnote (9) below. Mortality rate(10) 0 % 15 % Decrease Equity volatility curve 16 % 25 % Increase Policyholders' account balances(5) $ 3,245,773 Discounted cash flow Lapse rate(6) 1 % 42 % Decrease Spread over LIBOR(7) 0.03 % 1.13 % Decrease Mortality rate(10) 0 % 23 % Decrease Equity volatility curve 6 % 31 % 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 and annuity 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 a 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 Secured Overnight Financing Rate (“SOFR”) swap curve and the London Inter-Bank Offered Rate (“LIBOR”) swap curve represents the premium added to the proxy for the risk-free rate (SOFR or LIBOR, as applicable) 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 as of June 30, 2022 and December 31, 2021, respectively. This spread includes an estimate of NPR, which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because funding agreements, living benefit guarantees, and index-linked interest crediting guarantees are insurance liabilities and are therefore senior to debt. (8) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits. (9) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of June 30, 2022 and December 31, 2021, the minimum withdrawal rate assumption is 77% and 76%, respectively. As of June 30, 2022 and December 31, 2021, 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 June 30, 2022 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 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Foreign government 140 (5) 0 0 0 0 0 0 0 135 (5) Corporate securities(4) 385,358 (12,845) 83,901 (11,217) 0 (21,195) 0 0 (106,124) 317,878 (10,577) Structured securities(5) 112,116 (10,352) 33,490 0 0 (571) 0 0 (11,395) 123,288 (10,305) Other assets: Fixed maturities, trading 0 0 0 0 0 0 0 0 0 0 0 Equity securities 11,463 (1,111) 10,000 (230) 0 0 9,661 0 0 29,783 (1,129) Short-term investments 0 5 2,766 0 0 (54) 0 55 0 2,772 0 Other assets 75,201 8,050 (6,574) 0 0 (819) 0 0 0 75,858 7,231 Reinsurance recoverables 700,700 (179,685) 34,038 0 0 0 0 0 0 555,053 (174,545) Liabilities: Future policy benefits (6,964,587) 1,510,153 0 0 (252,534) 0 0 0 0 (5,706,968) 1,460,746 Policyholders' account balances(6) (3,260,195) 71,103 0 0 0 (238,575) 0 0 0 (3,427,667) (341,035) Three Months Ended June 30, 2022 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 $ (1,909) $ 0 $ (21,240) $ (53) $ 631 $ 0 $ (21,518) Other assets: Fixed maturities, trading 0 0 0 0 0 0 0 Equity securities 0 (1,111) 0 0 0 (1,129) 0 Short-term investments 0 0 0 5 0 0 0 Other assets 8,050 0 0 0 7,231 0 0 Reinsurance recoverables (179,685) 0 0 0 (174,545) 0 0 Liabilities: Future policy benefits 1,510,153 0 0 0 1,460,746 0 0 Policyholders' account balances 71,103 0 0 0 (341,035) 0 0 Six Months Ended June 30, 2022 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 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Foreign government 150 (15) 0 0 0 0 0 0 0 135 (15) Corporate securities(4) 385,634 (49,220) 133,311 (12,388) 0 (33,335) 0 0 (106,124) 317,878 (47,042) Structured securities(5) 173,944 (22,328) 33,490 0 0 (1,073) 0 0 (60,745) 123,288 (22,280) Other assets: Fixed maturities, trading 0 0 0 0 0 0 0 0 0 0 0 Equity securities 12,472 (2,120) 10,000 (230) 0 0 9,661 0 0 29,783 (2,138) Short-term investments 0 5 2,766 0 0 (54) 0 55 0 2,772 0 Other assets 72,937 4,337 1,241 0 0 (2,657) 0 0 0 75,858 1,679 Reinsurance recoverables 931,207 (445,494) 69,340 0 0 0 0 0 0 555,053 (430,193) Liabilities: Future policy benefits (9,047,956) 3,856,540 0 0 (515,552) 0 0 0 0 (5,706,968) 3,702,735 Policyholders' account balances(6) (3,245,773) (29,550) 0 0 0 (391,366) 239,022 0 0 (3,427,667) (492,251) Six Months Ended June 30, 2022 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 $ (16,812) $ 0 $ (55,081) $ 330 $ (14,380) $ 0 $ (54,957) Other assets: Fixed maturities, trading 0 0 0 0 0 0 0 Equity securities 0 (2,120) 0 0 0 (2,138) 0 Short-term investments 0 0 0 5 0 0 0 Other assets 4,337 0 0 0 1,679 0 0 Reinsurance recoverables (445,494) 0 0 0 (430,193) 0 0 Liabilities: Future policy benefits 3,856,540 0 0 0 3,702,735 0 0 Policyholders' account balances (29,550) 0 0 0 (492,251) 0 0 Three Months Ended June 30, 2021 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other 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 157 (1) 0 0 0 0 0 0 0 156 (1) Corporate securities(4) 165,491 5,050 23 0 0 (2,208) 0 2,474 0 170,830 5,000 Structured securities(5) 2,134 2 25,450 0 0 (407) 0 0 0 27,179 1 Other assets: Fixed maturities, trading 767 34 0 0 0 0 0 0 0 801 33 Equity securities 7,678 327 0 0 0 0 0 0 0 8,005 327 Short-term investments 0 0 0 0 0 0 0 0 0 0 0 Other assets 0 0 0 0 0 0 0 0 0 0 0 Reinsurance recoverables 7,447,863 1,550,027 277,633 0 0 0 0 0 0 9,275,523 1,638,970 Liabilities: Future policy benefits (7,435,081) (1,552,781) 0 0 (275,654) 0 0 0 0 (9,263,516) (1,640,666) Policyholders' account balances(6) (1,031,525) (146,924) 0 0 0 21,839 0 0 0 (1,156,610) (128,815) Three Months Ended June 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 $ 2,316 $ 0 $ 2,708 $ 27 $ 2,300 $ 0 $ 2,700 Other assets: Fixed maturities, trading 0 34 0 0 0 33 0 Equity securities 0 327 0 0 0 327 0 Other assets 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 0 Reinsurance recoverables 1,550,027 0 0 0 1,638,970 0 0 Liabilities: Future policy benefits (1,552,781) 0 0 0 (1,640,666) 0 0 Policyholders' account balances (146,924) 0 0 0 (128,815) 0 0 Six Months Ended June 30, 2021 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other 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 (7) 0 0 0 0 0 0 0 156 (8) Corporate securities(4) 174,776 (7,032) 2,342 0 0 (4,373) 0 5,117 0 170,830 (7,101) Structured securities(5) 2,065 (13) 25,950 0 0 (823) 0 0 0 27,179 (13) Other assets: Fixed maturities, trading 755 46 0 0 0 0 0 0 0 801 46 Equity securities 7,889 116 0 0 0 0 0 0 0 8,005 116 Short-term investments 0 0 0 0 0 0 0 0 0 0 0 Other assets 0 0 0 0 0 0 0 0 0 0 0 Reinsurance recoverables 13,239,539 (4,519,882) 555,866 0 0 0 0 0 0 9,275,523 (4,201,349) Liabilities: Future policy benefits (13,227,814) 4,516,201 0 0 (551,903) 0 0 0 0 (9,263,516) 4,197,669 Policyholders' account balances(6) (1,155,274) (36,667) 0 0 0 35,331 0 0 0 (1,156,610) (325) Six Months Ended June 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 $ 1,808 $ 0 $ (8,910) $ 50 $ 1,799 $ 0 $ (8,921) Other assets: Fixed maturities, trading 0 46 0 0 0 46 0 Equity securities 0 116 0 0 0 116 0 Short-term investments 0 0 0 0 0 0 0 Other assets 0 0 0 0 0 0 0 Reinsurance recoverables (4,519,882) 0 0 0 (4,201,349) 0 0 Liabilities: Future policy benefits 4,516,201 0 0 0 4,197,669 0 0 Policyholders' account balances (36,667) 0 0 0 (325) 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. (2) Other largely represents an out of period adjustment related to certain portions of reinsurance activity that had been incorrectly recorded on the balance sheet during the fourth quarter of 2021. (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 and foreign government bonds. (5) Includes asset-backed and commercial 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 June 30, 2022 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 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Foreign government 140 (5) 0 0 0 0 0 0 0 135 (5) Corporate securities(4) 385,358 (12,845) 83,901 (11,217) 0 (21,195) 0 0 (106,124) 317,878 (10,577) Structured securities(5) 112,116 (10,352) 33,490 0 0 (571) 0 0 (11,395) 123,288 (10,305) Other assets: Fixed maturities, trading 0 0 0 0 0 0 0 0 0 0 0 Equity securities 11,463 (1,111) 10,000 (230) 0 0 9,661 0 0 29,783 (1,129) Short-term investments 0 5 2,766 0 0 (54) 0 55 0 2,772 0 Other assets 75,201 8,050 (6,574) 0 0 (819) 0 0 0 75,858 7,231 Reinsurance recoverables 700,700 (179,685) 34,038 0 0 0 0 0 0 555,053 (174,545) Liabilities: Future policy benefits (6,964,587) 1,510,153 0 0 (252,534) 0 0 0 0 (5,706,968) 1,460,746 Policyholders' account balances(6) (3,260,195) 71,103 0 0 0 (238,575) 0 0 0 (3,427,667) (341,035) Three Months Ended June 30, 2022 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 $ (1,909) $ 0 $ (21,240) $ (53) $ 631 $ 0 $ (21,518) Other assets: Fixed maturities, trading 0 0 0 0 0 0 0 Equity securities 0 (1,111) 0 0 0 (1,129) 0 Short-term investments 0 0 0 5 0 0 0 Other assets 8,050 0 0 0 7,231 0 0 Reinsurance recoverables (179,685) 0 0 0 (174,545) 0 0 Liabilities: Future policy benefits 1,510,153 0 0 0 1,460,746 0 0 Policyholders' account balances 71,103 0 0 0 (341,035) 0 0 Six Months Ended June 30, 2022 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 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Foreign government 150 (15) 0 0 0 0 0 0 0 135 (15) Corporate securities(4) 385,634 (49,220) 133,311 (12,388) 0 (33,335) 0 0 (106,124) 317,878 (47,042) Structured securities(5) 173,944 (22,328) 33,490 0 0 (1,073) 0 0 (60,745) 123,288 (22,280) Other assets: Fixed maturities, trading 0 0 0 0 0 0 0 0 0 0 0 Equity securities 12,472 (2,120) 10,000 (230) 0 0 9,661 0 0 29,783 (2,138) Short-term investments 0 5 2,766 0 0 (54) 0 55 0 2,772 0 Other assets 72,937 4,337 1,241 0 0 (2,657) 0 0 0 75,858 1,679 Reinsurance recoverables 931,207 (445,494) 69,340 0 0 0 0 0 0 555,053 (430,193) Liabilities: Future policy benefits (9,047,956) 3,856,540 0 0 (515,552) 0 0 0 0 (5,706,968) 3,702,735 Policyholders' account balances(6) (3,245,773) (29,550) 0 0 0 (391,366) 239,022 0 0 (3,427,667) (492,251) Six Months Ended June 30, 2022 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 $ (16,812) $ 0 $ (55,081) $ 330 $ (14,380) $ 0 $ (54,957) Other assets: Fixed maturities, trading 0 0 0 0 0 0 0 Equity securities 0 (2,120) 0 0 0 (2,138) 0 Short-term investments 0 0 0 5 0 0 0 Other assets 4,337 0 0 0 1,679 0 0 Reinsurance recoverables (445,494) 0 0 0 (430,193) 0 0 Liabilities: Future policy benefits 3,856,540 0 0 0 3,702,735 0 0 Policyholders' account balances (29,550) 0 0 0 (492,251) 0 0 Three Months Ended June 30, 2021 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other 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 157 (1) 0 0 0 0 0 0 0 156 (1) Corporate securities(4) 165,491 5,050 23 0 0 (2,208) 0 2,474 0 170,830 5,000 Structured securities(5) 2,134 2 25,450 0 0 (407) 0 0 0 27,179 1 Other assets: Fixed maturities, trading 767 34 0 0 0 0 0 0 0 801 33 Equity securities 7,678 327 0 0 0 0 0 0 0 8,005 327 Short-term investments 0 0 0 0 0 0 0 0 0 0 0 Other assets 0 0 0 0 0 0 0 0 0 0 0 Reinsurance recoverables 7,447,863 1,550,027 277,633 0 0 0 0 0 0 9,275,523 1,638,970 Liabilities: Future policy benefits (7,435,081) (1,552,781) 0 0 (275,654) 0 0 0 0 (9,263,516) (1,640,666) Policyholders' account balances(6) (1,031,525) (146,924) 0 0 0 21,839 0 0 0 (1,156,610) (128,815) Three Months Ended June 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 $ 2,316 $ 0 $ 2,708 $ 27 $ 2,300 $ 0 $ 2,700 Other assets: Fixed maturities, trading 0 34 0 0 0 33 0 Equity securities 0 327 0 0 0 327 0 Other assets 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 0 Reinsurance recoverables 1,550,027 0 0 0 1,638,970 0 0 Liabilities: Future policy benefits (1,552,781) 0 0 0 (1,640,666) 0 0 Policyholders' account balances (146,924) 0 0 0 (128,815) 0 0 Six Months Ended June 30, 2021 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other 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 (7) 0 0 0 0 0 0 0 156 (8) Corporate securities(4) 174,776 (7,032) 2,342 0 0 (4,373) 0 5,117 0 170,830 (7,101) Structured securities(5) 2,065 (13) 25,950 0 0 (823) 0 0 0 27,179 (13) Other assets: Fixed maturities, trading 755 46 0 0 0 0 0 0 0 801 46 Equity securities 7,889 116 0 0 0 0 0 0 0 8,005 116 Short-term investments 0 0 0 0 0 0 0 0 0 0 0 Other assets 0 0 0 0 0 0 0 0 0 0 0 Reinsurance recoverables 13,239,539 (4,519,882) 555,866 0 0 0 0 0 0 9,275,523 (4,201,349) Liabilities: Future policy benefits (13,227,814) 4,516,201 0 0 (551,903) 0 0 0 0 (9,263,516) 4,197,669 Policyholders' account balances(6) (1,155,274) (36,667) 0 0 0 35,331 0 0 0 (1,156,610) (325) Six Months Ended June 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 $ 1,808 $ 0 $ (8,910) $ 50 $ 1,799 $ 0 $ (8,921) Other assets: Fixed maturities, trading 0 46 0 0 0 46 0 Equity securities 0 116 0 0 0 116 0 Short-term investments 0 0 0 0 0 0 0 Other assets 0 0 0 0 0 0 0 Reinsurance recoverables (4,519,882) 0 0 0 (4,201,349) 0 0 Liabilities: Future policy benefits 4,516,201 0 0 0 4,197,669 0 0 Policyholders' account balances (36,667) 0 0 0 (325) 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. (2) Other largely represents an out of period adjustment related to certain portions of reinsurance activity that had been incorrectly recorded on the balance sheet during the fourth quarter of 2021. (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 and foreign government bonds. (5) Includes asset-backed and commercial mortgage-backed securities. (6) Issuances and settlements for Policyholders' account balances are presented net in the rollforward. |
Fair Value Measurements, Nonrecurring | Nonrecurring Fair Value Measurements - The following tables represent information for assets measured at fair value on a nonrecurring basis. The fair value measurement is nonrecurring as these assets are measured at fair value only when there is a triggering event (e.g., an evidence of impairment). Assets included in the table are those that were impaired during the respective reporting periods and that are still held as of the reporting date. The estimated fair values for these amounts were determined using significant unobservable inputs (Level 3). Three Month Ended June 30, Six Month Ended June 30, 2022 2021 2022 2021 (in thousands) Equity in earnings of operating joint venture, net of taxes Investment in joint venture $ (75,000) $ 0 $ (75,000) $ 0 June 30, 2022 December 31, 2021 (in thousands) Carrying value after measurement as of period end: Investment in joint venture $ 60,456 $ 0 |
Fair Value Disclosure Financial Instruments Not Carried at Fair Value | The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Unaudited Interim Consolidated Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value. June 30, 2022 Fair Value Carrying Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 2,852,215 $ 2,852,215 $ 3,066,931 Policy loans 0 0 489,592 489,592 489,592 Short-term investments 129,000 0 0 129,000 129,000 Cash and cash equivalents 872,309 0 0 872,309 872,309 Accrued investment income 0 161,703 0 161,703 161,703 Reinsurance recoverables 0 0 26,248 26,248 27,938 Receivables from parent and affiliates 0 46,958 0 46,958 46,958 Other assets 0 43,201 480,772 523,973 523,973 Total assets $ 1,001,309 $ 251,862 $ 3,848,827 $ 5,101,998 $ 5,318,404 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 1,285,380 $ 2,619,853 $ 3,905,233 $ 3,920,807 Cash collateral for loaned securities 0 150,666 0 150,666 150,666 Long-term debt to affiliates 0 297,877 0 297,877 315,807 Payables to parent and affiliates 0 28,796 0 28,796 28,796 Other liabilities 0 813,143 33,250 846,393 846,393 Total liabilities $ 0 $ 2,575,862 $ 2,653,103 $ 5,228,965 $ 5,262,469 December 31, 2021 Fair Value Carrying Level 1 Level 2 Level 3 Total Total (in thousands) Assets: Commercial mortgage and other loans $ 0 $ 0 $ 2,883,710 $ 2,883,710 $ 2,832,560 Policy loans 0 0 1,327,485 1,327,485 1,327,485 Short-term investments 37,000 0 0 37,000 37,000 Cash and cash equivalents 297,299 185,000 0 482,299 482,299 Accrued investment income 0 160,027 0 160,027 160,027 Reinsurance recoverables 0 0 29,931 29,931 28,883 Receivables from parent and affiliates 0 116,086 0 116,086 116,086 Other assets 0 134,598 434,383 568,981 568,981 Total assets $ 334,299 $ 595,711 $ 4,675,509 $ 5,605,519 $ 5,553,321 Liabilities: Policyholders’ account balances - investment contracts $ 0 $ 1,356,850 $ 2,590,487 $ 3,947,337 $ 3,941,822 Cash collateral for loaned securities 0 3,004 0 3,004 3,004 Long-term debt to affiliates 0 319,225 0 319,225 320,362 Payables to parent and affiliates 0 31,775 0 31,775 31,775 Other liabilities 0 864,788 34,091 898,879 898,879 Total liabilities $ 0 $ 2,575,642 $ 2,624,578 $ 5,200,220 $ 5,195,842 (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) | 6 Months Ended |
Jun. 30, 2022 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Impact on Statements of Financial Position | Reinsurance amounts included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as of June 30, 2022 and December 31, 2021 were as follows: June 30, 2022 December 31, 2021 (in thousands) Reinsurance recoverables $ 38,809,510 $ 38,598,767 Policy loans (1,012,829) (156,749) Deferred policy acquisition costs(1) (3,203,610) (2,575,232) Deferred sales inducements (34,354) (37,905) Other assets(2)(3) 854,974 850,681 Policyholders’ account balances (2)(4) 13,655,630 14,386,443 Future policy benefits(5) 5,167,591 5,286,252 Other liabilities(2)(6) 2,616,417 1,642,413 (1) Includes $481 million and $0 million of unaffiliated activity as of June 30, 2022 and December 31, 2021, respectively. (2) Prior period has been reclassified to conform to the current period presentation to include reinsurance agreements using the deposit method of accounting. (3) Includes $742 million and $497 million of unaffiliated activity as of June 30, 2022 and December 31, 2021, respectively. (4) Includes $9,209 million and $0 million of unaffiliated activity as of June 30, 2022 and December 31, 2021, respectively. (5) Includes $2 million and $0.0 million of unaffiliated activity as of June 30, 2022 and December 31, 2021, respectively. |
Reinsurance Recoverable by Counterparty | Reinsurance recoverables by counterparty are broken out below: June 30, 2022 December 31, 2021 (in thousands) PAR U $ 13,365,163 $ 13,523,832 PALAC(1) 0 7,198,504 PURC 5,760,428 5,830,441 PARCC 2,282,435 2,371,491 GUL Re 2,666,661 2,710,926 PAR Term 1,998,500 1,972,339 Prudential Insurance 1,378,191 2,082,551 Term Re 2,006,812 1,953,063 Lotus Re 1,986,321 32,039 DART 708,366 644,101 Unaffiliated(1) 6,656,633 279,480 Total reinsurance recoverables $ 38,809,510 $ 38,598,767 (1) Due to the sale of PALAC on April 1, 2022 the reinsurance recoverable balance has become unaffiliated. |
Reinsurance Impact on Statements of Operations and Comprehensive Income (Loss) | Reinsurance amounts, included in the Company’s Unaudited Interim Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, were as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (in thousands) Premiums: Direct $ 471,343 $ 486,008 $ 945,271 $ 972,885 Assumed(1) (9,474) 41 (8,077) 84 Ceded(2) (404,448) (441,187) (805,528) (883,702) Net premiums 57,421 44,862 131,666 89,267 Policy charges and fee income: Direct 900,644 893,456 1,802,968 1,803,345 Assumed(3) 161,372 146,537 312,193 286,650 Ceded(4) (436,204) (859,793) (1,297,787) (1,757,930) Net policy charges and fee income 625,812 180,200 817,374 332,065 Net investment income: Direct 195,480 96,905 390,991 197,300 Assumed 365 371 818 730 Ceded(5) (3,717) (1,976) (20,381) (3,863) Net investment income 192,128 95,300 371,428 194,167 Asset administration fees: Direct 88,655 98,823 186,112 195,437 Assumed 0 0 0 0 Ceded (16,865) (92,547) (35,090) (182,950) Net asset administration fees 71,790 6,276 151,022 12,487 Other income (loss): Direct (325,563) 24,577 (674,251) 41,677 Assumed(6) (2,548) 13 (2,509) (60) Ceded (60) 41 (438) 106 Amortization of reinsurance income 16,155 999 37,578 2,151 Net Other income (loss) (312,016) 25,630 (639,620) 43,874 Realized investment gains (losses), net: Direct 1,148,607 (1,655,473) 2,355,755 4,502,274 Assumed(7) (281,646) 0 (485,630) 0 Ceded(8) (152,252) 1,532,971 (371,309) (4,548,168) Realized investment gains (losses), net 714,709 (122,502) 1,498,816 (45,894) Policyholders’ benefits (including change in reserves): Direct 1,421,515 801,694 2,326,652 1,799,518 Assumed(9) 761,610 225,704 1,000,277 417,509 Ceded(10) (2,025,019) (949,322) (2,949,059) (2,045,038) Net policyholders’ benefits (including change in reserves) 158,106 78,076 377,870 171,989 Interest credited to policyholders’ account balances: Direct 202,814 100,790 404,840 280,225 Assumed(11) 29,601 32,132 102,103 65,118 Ceded (109,471) (85,522) (220,473) (241,773) Net interest credited to policyholders’ account balances 122,944 47,400 286,470 103,570 Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization (80,230) (292,845) (216,082) (761,280) (1) Includes $(13) million and $0.1 million of unaffiliated activity for the three months ended June 30, 2022 and 2021, respectively, and $(13) million and $0.1 million for the six months ended June 30, 2022 and 2021, respectively. (2) Includes $(9) million and $(7) million of unaffiliated activity for the three months ended June 30, 2022 and 2021, respectively, and $(16) million and $(14) million for the six months ended June 30, 2022 and 2021, respectively. (3) Includes $11 million and $0 million of unaffiliated activity for the three months ended June 30, 2022 and 2021, respectively, and $11 million and $0 million for the six months ended June 30, 2022 and 2021, respectively. (4) Includes $(20) million and $(16) million of unaffiliated activity for the three months ended June 30, 2022 and 2021, respectively, and $(38) million and $(30) million for the six months ended June 30, 2022 and 2021, respectively. (5) Includes $9 million and $0 million of unaffiliated activity for the three months ended June 30, 2022 and 2021, respectively, and $4 million and $0 million for the six months ended June 30, 2022 and 2021, respectively. (6) Includes $(3) million and $0 million of unaffiliated activity for the three months ended June 30, 2022 and 2021, respectively, and $(3) million and $0 million for the six months ended June 30, 2022 and 2021, respectively. (7) Includes $(282) million and $0 million of unaffiliated activity for the three months ended June 30, 2022 and 2021, respectively, and $(282) million and $0 million for the six months ended June 30, 2022 and 2021, respectively. (8) Includes $(9) million and $31 million of unaffiliated activity for the three months ended June 30, 2022 and 2021, respectively, and $(14) million and $(110) million for the six months ended June 30, 2022 and 2021, respectively. (9) Includes $1 million and $0.2 million of unaffiliated activity for the three months ended June 30, 2022 and 2021, respectively, and $1 million and $0.3 million for the six months ended June 30, 2022 and 2021, respectively. (10) Includes $(18) million and $(50) million of unaffiliated activity for the three months ended June 30, 2022 and 2021, respectively, and $(38) million and $(131) million for the six months ended June 30, 2022 and 2021, respectively. (11) Includes $(3) million and $0 million of unaffiliated activity for the three months ended June 30, 2022 and 2021, respectively, and $(3) million and $0 million for the six months ended June 30, 2022 and 2021, respectively. |
Gross and Net Life Insurance in Force | The gross and net amounts of life insurance face amount in force as of June 30, 2022 and 2021 were as follows: 2022 2021 (in thousands) Direct gross life insurance face amount in force $ 1,086,899,612 $ 1,068,336,643 Assumed gross life insurance face amount in force 37,151,725 38,300,008 Reinsurance ceded (1,012,351,998) (993,562,545) Net life insurance face amount in force $ 111,699,339 $ 113,074,106 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | The balance of and changes in each component of AOCI as of and for the six months ended June 30, 2022 and 2021, are as follows: Accumulated Other Comprehensive Income (Loss) Foreign Net Unrealized Total Accumulated (in thousands) Balance, December 31, 2021 $ (11,274) $ 358,709 $ 347,435 Change in OCI before reclassifications (7,870) (1,920,685) (1,928,555) Amounts reclassified from AOCI 0 7,026 7,026 Income tax benefit (expense) 735 401,777 402,512 Balance, June 30, 2022 $ (18,409) $ (1,153,173) $ (1,171,582) 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 (4,781) (129,762) (134,543) Amounts reclassified from AOCI 0 (4,473) (4,473) Income tax benefit (expense) 149 28,186 28,335 Balance, June 30, 2021 $ (12,429) $ 447,876 $ 435,447 (1) Includes cash flow hedges of $144 million and $40 million as of June 30, 2022 and December 31, 2021, respectively, and $12 million and $(8) million as of June 30, 2021 and December 31, 2020, respectively . |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of Accumulated Other Comprehensive Income (Loss) Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands) Amounts reclassified from AOCI (1)(2): Net unrealized investment gains (losses): Cash flow hedges - Currency/Interest rate(3) $ 42,622 $ 1,816 $ 56,412 $ 5,842 Net unrealized investment gains (losses) on available-for-sale securities (26,717) 1,369 (63,438) (1,369) Total net unrealized investment gains (losses)(4) 15,905 3,185 (7,026) 4,473 Total reclassifications for the period $ 15,905 $ 3,185 $ (7,026) $ 4,473 (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 recorded 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, 2021 $ 3,685 $ 582,704 $ 983,085 $ (1,115,484) $ (95,281) $ 358,709 Net investment gains (losses) on investments arising during the period (1,592) (2,210,285) 0 0 464,388 (1,747,489) Reclassification adjustment for (gains) losses included in net income 727 6,299 0 0 (1,475) 5,551 Reclassification due to allowance for credit losses recorded during the period 698 (698) 0 0 0 0 Impact of net unrealized investment (gains) losses 0 0 (1,798,631) 2,089,823 (61,136) 230,056 Balance, June 30, 2022 $ 3,518 $ (1,621,980) $ (815,546) $ 974,339 $ 306,496 $ (1,153,173) (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) | 6 Months Ended |
Jun. 30, 2022 | |
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: June 30, 2022 December 31, 2021 Amount % of Amount % of Commercial mortgage and agricultural property loans by property type: Apartments/Multi-Family $ 792,222 25.8 % $ 748,414 26.4 % Hospitality 83,476 2.7 48,141 1.7 Industrial 1,064,620 34.6 916,398 32.2 Office 459,646 14.9 445,055 15.7 Other 254,714 8.3 252,590 8.9 Retail 228,494 7.4 255,577 9.0 Total commercial mortgage loans 2,883,172 93.7 2,666,175 93.9 Agricultural property loans 193,683 6.3 172,336 6.1 Total commercial mortgage and agricultural property loans 3,076,855 100.0 % 2,838,511 100.0 % Allowance for credit losses (9,924) (5,951) Total net commercial mortgage and agricultural property loans $ 3,066,931 $ 2,832,560 |
Affiliated Asset Transfers | The table below shows affiliated asset trades for the six months ended June 30, 2022 and for the year ended December 31, 2021, excluding those related to the 2021 Variable Annuities Recapture effective July 1, 2021, as described in Note 1 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021. Affiliate Date Transaction Security Type Fair Value Book Value APIC, Net of Tax Increase/(Decrease) Realized (in thousands) 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 Affiliate Date Transaction Security Type Fair Value Book Value APIC, Net of Tax Increase/(Decrease) Realized (in thousands) 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 PAR U November 2021 Purchase Fixed Maturities $ 41,021 $ 41,021 $ 0 $ 0 PALAC November 2021 Purchase Derivatives $ 1,112 $ 1,112 $ 0 $ 0 PALAC December 2021 Transfer In Fixed Maturities $ 2,037,320 $ 2,037,320 $ 0 $ 0 PURC December 2021 Purchase Fixed Maturities $ 48,041 $ 48,041 $ 0 $ 0 PALAC December 2021 Purchase Fixed Maturities $ 57,087 $ 57,087 $ 0 $ 0 PALAC December 2021 Transfer In Commercial Mortgage and Other Loans $ 517,309 $ 517,309 $ 0 $ 0 Prudential Insurance December 2021 Contributed Capital Fixed Maturities $ 166,676 $ 166,676 $ 0 $ 0 Prudential Retirement Insurance & Annuity Co December 2021 Sale Derivatives $ 31,567 $ 0 $ 0 $ 31,567 Prudential Retirement Insurance & Annuity Co December 2021 Purchase Derivatives $ 73,572 $ 73,572 $ 0 $ 0 PALAC December 2021 Purchase Derivatives $ 8,455 $ 8,455 $ 0 $ 0 PALAC January 2022 Purchase Fixed Maturities $ 4,432 $ 4,432 $ 0 $ 0 PALAC January 2022 Purchase Derivatives $ 404 $ 404 $ 0 $ 0 PALAC February 2022 Purchase Fixed Maturities $ 128,909 $ 128,909 $ 0 $ 0 Affiliate Date Transaction Security Type Fair Value Book Value APIC, Net of Tax Increase/(Decrease) Realized (in thousands) PAR U April 2022 Purchase Fixed Maturities $ 48,970 $ 48,970 $ 0 $ 0 Prudential Insurance May 2022 Purchase Fixed Maturities $ 233,426 $ 241,128 $ 6,085 $ 0 Prudential Insurance June 2022 Purchase Fixed Maturities $ 88,754 $ 81,216 $ (5,955) $ 0 Prudential Insurance June 2022 Transfer In Fixed Maturities $ 52,089 $ 45,031 $ (5,577) $ 0 Prudential Insurance June 2022 Transfer Out Fixed Maturities $ 48,786 $ 58,984 $ (8,057) $ 0 PAR U June 2022 Purchase Commercial Mortgage and Other Loans $ 6,492 $ 6,492 $ 0 $ 0 PAR U June 2022 Sale Commercial Mortgage and Other Loans $ 14,853 $ 15,725 $ 0 $ (872) GUL Re June 2022 Purchase Commercial Mortgage and Other Loans $ 13,551 $ 13,551 $ 0 $ 0 GUL Re June 2022 Sale Commercial Mortgage and Other Loans $ 8,692 $ 9,033 $ 0 $ (341) PURC June 2022 Purchase Commercial Mortgage and Other Loans $ 4,403 $ 4,403 $ 0 $ 0 |
Affiliated Entity | |
Related Party Transaction [Line Items] | |
Affiliated Notes Receivable | Affiliated notes receivable included in “Receivables from parent and affiliates” at June 30, 2022 and December 31, 2021 were as follows: Maturity Dates Interest Rates June 30, 2022 December 31, 2021 (in thousands) U.S. dollar fixed rate notes 2022 - 2027 0.00% - 14.85 % $ 150,946 $ 162,045 Total notes receivable - affiliated(1) $ 150,946 $ 162,045 (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 June 30, 2022 and December 31, 2021 were as follows: Maturity Date Interest Rate June 30, 2022 December 31, 2021 (in thousands) Affiliated Commercial Mortgage Loan 2025 5.62% $ 72,818 $ 73,412 |
Debt Agreements | The following table provides the breakout of the Company's long-term debt to affiliates as of June 30, 2022 and December 31, 2021: Affiliate Date Amount of Notes - June 30, 2022 Amount of Notes - December 31, 2021 Interest Rate Date of Maturity (in thousands) Prudential Insurance 8/13/2021 $ 98,222 $ 99,770 4.39 % 12/15/2023 Prudential Insurance 8/13/2021 29,466 29,931 4.39 % 12/15/2023 Prudential Insurance 8/13/2021 99,010 100,348 3.95 % 6/20/2024 Prudential Insurance 8/13/2021 39,604 40,139 3.95 % 6/20/2024 Prudential Insurance 8/13/2021 49,505 50,174 3.95 % 6/20/2024 Total Loans Payable to Affiliates $ 315,807 $ 320,362 |
Business and Basis of Present_2
Business and Basis of Presentation (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) subsidiary | Jun. 30, 2021 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Number Of Subsidiaries | subsidiary | 1 | |||
Realized investment gains (losses), net | $ 714,709 | $ (122,502) | $ 1,498,816 | $ (45,894) |
Income (loss) from operations before income taxes and equity in earnings of operating joint venture | 506,174 | $ (26,269) | 476,482 | $ 31,812 |
Out of period adjustment | ||||
Income (loss) from operations before income taxes and equity in earnings of operating joint venture | 32,000 | 50,000 | ||
Out of period adjustment | Universal and variable life products | Variable life and annuities | ||||
Adjustments related to reserves | $ 48,000 | $ 48,000 |
Investments (Fixed Maturities S
Investments (Fixed Maturities Securities Excluding Investments Classified as Trading) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 16,197,708 | $ 12,737,749 |
Allowance for Credit Losses | 4,810 | 4,149 |
Fair Value | 14,438,956 | 13,278,166 |
Fixed maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 16,197,708 | 12,737,749 |
Gross Unrealized Gain | 48,573 | 658,544 |
Gross Unrealized Losses | 1,802,515 | 113,978 |
Allowance for Credit Losses | 4,810 | 4,149 |
Fair Value | 14,438,956 | 13,278,166 |
Fixed maturities | US Treasury securities and obligations of U.S. government authorities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 636,878 | 303,040 |
Gross Unrealized Gain | 1,921 | 31,011 |
Gross Unrealized Losses | 44,925 | 111 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 593,874 | 333,940 |
Fixed maturities | Obligations of U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 569,296 | 584,244 |
Gross Unrealized Gain | 5,347 | 46,978 |
Gross Unrealized Losses | 20,633 | 701 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 554,010 | 630,521 |
Fixed maturities | Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 319,719 | 324,454 |
Gross Unrealized Gain | 705 | 29,299 |
Gross Unrealized Losses | 51,864 | 3,271 |
Allowance for Credit Losses | 116 | 11 |
Fair Value | 268,444 | 350,471 |
Fixed maturities | U.S. public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 6,034,911 | 4,794,878 |
Gross Unrealized Gain | 29,418 | 366,764 |
Gross Unrealized Losses | 736,312 | 29,770 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 5,328,017 | 5,131,872 |
Fixed maturities | U.S. private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,509,630 | 1,964,767 |
Gross Unrealized Gain | 6,792 | 59,037 |
Gross Unrealized Losses | 228,868 | 16,880 |
Allowance for Credit Losses | 1,831 | 2,049 |
Fair Value | 2,285,723 | 2,004,875 |
Fixed maturities | Foreign public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,222,452 | 906,031 |
Gross Unrealized Gain | 2,629 | 34,234 |
Gross Unrealized Losses | 136,018 | 10,363 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 1,089,063 | 929,902 |
Fixed maturities | Foreign private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,140,859 | 2,741,449 |
Gross Unrealized Gain | 190 | 62,932 |
Gross Unrealized Losses | 503,503 | 48,381 |
Allowance for Credit Losses | 2,863 | 2,089 |
Fair Value | 2,634,683 | 2,753,911 |
Fixed maturities | Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 925,707 | 547,549 |
Gross Unrealized Gain | 322 | 860 |
Gross Unrealized Losses | 31,476 | 1,099 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 894,553 | 547,310 |
Fixed maturities | Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 740,060 | 552,653 |
Gross Unrealized Gain | 723 | 25,928 |
Gross Unrealized Losses | 46,095 | 3,397 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | 694,688 | 575,184 |
Fixed maturities | Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 98,196 | 18,684 |
Gross Unrealized Gain | 526 | 1,501 |
Gross Unrealized Losses | 2,821 | 5 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | $ 95,901 | $ 20,180 |
Investments (Fair Value and Los
Investments (Fair Value and Losses by Investment Category and Length of Time in a Loss Position) (Details) - Fixed maturities - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | $ 11,793,852 | $ 5,052,071 |
Less than Twelve Months, Gross Unrealized Losses | 1,644,884 | 94,096 |
Twelve Months or More, Fair Value | 618,356 | 333,294 |
Twelve Months or More, Gross Unrealized Losses | 157,625 | 19,435 |
Total, Fair Value | 12,412,208 | 5,385,365 |
Total, Gross Unrealized Losses | 1,802,509 | 113,531 |
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 | 446,399 | 0 |
Less than Twelve Months, Gross Unrealized Losses | 44,627 | 0 |
Twelve Months or More, Fair Value | 1,909 | 2,119 |
Twelve Months or More, Gross Unrealized Losses | 298 | 111 |
Total, Fair Value | 448,308 | 2,119 |
Total, Gross Unrealized Losses | 44,925 | 111 |
Obligations of U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 332,051 | 104,621 |
Less than Twelve Months, Gross Unrealized Losses | 20,633 | 701 |
Twelve Months or More, Fair Value | 0 | 0 |
Twelve Months or More, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 332,051 | 104,621 |
Total, Gross Unrealized Losses | 20,633 | 701 |
Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 222,423 | 59,550 |
Less than Twelve Months, Gross Unrealized Losses | 42,170 | 2,826 |
Twelve Months or More, Fair Value | 23,269 | 6,473 |
Twelve Months or More, Gross Unrealized Losses | 9,688 | 371 |
Total, Fair Value | 245,692 | 66,023 |
Total, Gross Unrealized Losses | 51,858 | 3,197 |
U.S. public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 4,343,243 | 1,681,201 |
Less than Twelve Months, Gross Unrealized Losses | 670,173 | 23,160 |
Twelve Months or More, Fair Value | 170,150 | 180,249 |
Twelve Months or More, Gross Unrealized Losses | 66,139 | 6,610 |
Total, Fair Value | 4,513,393 | 1,861,450 |
Total, Gross Unrealized Losses | 736,312 | 29,770 |
U.S. private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 2,062,339 | 972,796 |
Less than Twelve Months, Gross Unrealized Losses | 215,192 | 14,036 |
Twelve Months or More, Fair Value | 100,094 | 16,409 |
Twelve Months or More, Gross Unrealized Losses | 13,676 | 2,844 |
Total, Fair Value | 2,162,433 | 989,205 |
Total, Gross Unrealized Losses | 228,868 | 16,880 |
Foreign public corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 825,007 | 532,445 |
Less than Twelve Months, Gross Unrealized Losses | 119,741 | 8,255 |
Twelve Months or More, Fair Value | 60,464 | 29,718 |
Twelve Months or More, Gross Unrealized Losses | 16,277 | 2,108 |
Total, Fair Value | 885,471 | 562,163 |
Total, Gross Unrealized Losses | 136,018 | 10,363 |
Foreign private corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 2,441,224 | 1,253,739 |
Less than Twelve Months, Gross Unrealized Losses | 466,582 | 42,392 |
Twelve Months or More, Fair Value | 162,515 | 57,637 |
Twelve Months or More, Gross Unrealized Losses | 36,921 | 5,616 |
Total, Fair Value | 2,603,739 | 1,311,376 |
Total, Gross Unrealized Losses | 503,503 | 48,008 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 592,720 | 288,971 |
Less than Twelve Months, Gross Unrealized Losses | 26,070 | 1,099 |
Twelve Months or More, Fair Value | 53,576 | 0 |
Twelve Months or More, Gross Unrealized Losses | 5,406 | 0 |
Total, Fair Value | 646,296 | 288,971 |
Total, Gross Unrealized Losses | 31,476 | 1,099 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 490,544 | 157,355 |
Less than Twelve Months, Gross Unrealized Losses | 36,875 | 1,622 |
Twelve Months or More, Fair Value | 46,379 | 40,689 |
Twelve Months or More, Gross Unrealized Losses | 9,220 | 1,775 |
Total, Fair Value | 536,923 | 198,044 |
Total, Gross Unrealized Losses | 46,095 | 3,397 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than Twelve Months, Fair Value | 37,902 | 1,393 |
Less than Twelve Months, Gross Unrealized Losses | 2,821 | 5 |
Twelve Months or More, Fair Value | 0 | 0 |
Twelve Months or More, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 37,902 | 1,393 |
Total, Gross Unrealized Losses | $ 2,821 | $ 5 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Schedule of Investments [Line Items] | |||||
Loans acquired | $ 27,600 | $ 0 | $ 27,600 | $ 0 | |
Loans Sold | 24,800 | 0 | 24,800 | 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% | 100% | 100% | ||
Commercial Mortgage and other loans purchased with Credit Deterioration | $ 0 | $ 0 | |||
Fixed maturities | |||||
Schedule of Investments [Line Items] | |||||
Gross Unrealized Losses | $ 1,802,509 | 1,802,509 | 113,531 | ||
Twelve Months or More, Gross Unrealized Losses | 157,625 | 157,625 | 19,435 | ||
NAIC high or highest quality rating | Fixed maturities | |||||
Schedule of Investments [Line Items] | |||||
Gross Unrealized Losses | 1,627,800 | 1,627,800 | 95,100 | ||
NAIC other than high or highest quality rating | Fixed maturities | |||||
Schedule of Investments [Line Items] | |||||
Gross Unrealized Losses | $ 174,700 | $ 174,700 | 18,400 | ||
California | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 23% | 23% | |||
Texas | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 12% | 12% | |||
Europe | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 13% | 13% | |||
Australia | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 3% | 3% | |||
Mexico | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 2% | 2% | |||
New York | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, Percentage | 6% | 6% | |||
Other Income | Fixed maturities | Trading | |||||
Schedule of Investments [Line Items] | |||||
Unrealized Gain (Loss) on Investments | $ (184,100) | 200 | $ (520,500) | (2,500) | |
Other Income | Equity securities | |||||
Schedule of Investments [Line Items] | |||||
Unrealized Gain (Loss) on Investments | (10,000) | $ 500 | (14,100) | $ 100 | |
Fixed maturities | |||||
Schedule of Investments [Line Items] | |||||
Twelve Months or More, Gross Unrealized Losses | $ 157,600 | $ 157,600 | $ 19,400 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturities) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Due in one year or less | $ 404,018 | |
Due after one year through five years | 3,869,672 | |
Due after five years through ten years | 4,198,773 | |
Due after ten years | 5,961,282 | |
Amortized Cost | 16,197,708 | $ 12,737,749 |
Fair Value | ||
Due in one year or less | 389,373 | |
Due after one year through five years | 3,619,474 | |
Due after five years through ten years | 3,645,235 | |
Due after ten years | 5,099,732 | |
Fair Value | 14,438,956 | 13,278,166 |
Asset-backed securities | ||
Amortized Cost | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 925,707 | |
Fair Value | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 894,553 | |
Commercial mortgage-backed securities | ||
Amortized Cost | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 740,060 | |
Fair Value | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 694,688 | |
Residential mortgage-backed securities | ||
Amortized Cost | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 98,196 | |
Fair Value | ||
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 95,901 | |
Fixed maturities | ||
Amortized Cost | ||
Amortized Cost | 16,197,708 | 12,737,749 |
Fair Value | ||
Fair Value | 14,438,956 | 13,278,166 |
Fixed maturities | Asset-backed securities | ||
Amortized Cost | ||
Amortized Cost | 925,707 | 547,549 |
Fair Value | ||
Fair Value | 894,553 | 547,310 |
Fixed maturities | Commercial mortgage-backed securities | ||
Amortized Cost | ||
Amortized Cost | 740,060 | 552,653 |
Fair Value | ||
Fair Value | 694,688 | 575,184 |
Fixed maturities | Residential mortgage-backed securities | ||
Amortized Cost | ||
Amortized Cost | 98,196 | 18,684 |
Fair Value | ||
Fair Value | $ 95,901 | $ 20,180 |
Investments (Fixed Maturities_2
Investments (Fixed Maturities Securities Proceeds) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from maturities/prepayments | $ 877,701 | $ 470,550 | ||
Fixed maturities | Available-for-sale | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from Sale of Debt Securities, Available-for-sale | $ 403,660 | $ 283,241 | 678,089 | 316,990 |
Proceeds from maturities/prepayments | 110,426 | 96,373 | 230,787 | 170,458 |
Gross investment gains from sales and maturities | (652) | 8,156 | (1,358) | 8,508 |
Gross investment losses from sales and maturities | (22,461) | (9,087) | (41,903) | (11,656) |
Write-downs recognized in earnings | (19,519) | 0 | (19,516) | (2) |
(Addition to) release of allowance for credit losses | $ 15,915 | $ 2,300 | (661) | 1,781 |
Noncash or Part Noncash Divestiture, Amount of Consideration Received | $ (31,200) | $ (16,900) |
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Balance, beginning of period | $ 20,725 | $ 2,858 | $ 4,149 | $ 2,339 |
Additions to allowance for credit losses not previously recorded | 2,904 | 12,491 | ||
Reductions for securities sold during the period | (1,203) | (14) | (1,206) | (25) |
Reductions for securities with intent to sell | (16,990) | (16,990) | ||
Addition (reductions) on securities with previous allowance | (626) | (2,286) | 6,366 | (1,756) |
Balance, end of period | 4,810 | 558 | 4,810 | 558 |
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 | ||
Reductions for securities sold during the period | 0 | 0 | 0 | 0 |
Reductions for securities with intent to sell | 0 | 0 | ||
Addition (reductions) on securities with previous allowance | 0 | 0 | 0 | 0 |
Balance, end of period | 0 | 0 | 0 | 0 |
Foreign government bonds | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Balance, beginning of period | 399 | 0 | 11 | 0 |
Additions to allowance for credit losses not previously recorded | 0 | 329 | ||
Reductions for securities sold during the period | (1) | 0 | (4) | 0 |
Reductions for securities with intent to sell | (324) | (324) | ||
Addition (reductions) on securities with previous allowance | 42 | 0 | 104 | 0 |
Balance, end of period | 116 | 0 | 116 | 0 |
U.S. and Foreign Corporate Securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Balance, beginning of period | 20,326 | 2,858 | 4,138 | 2,339 |
Additions to allowance for credit losses not previously recorded | 2,904 | 12,162 | ||
Reductions for securities sold during the period | (1,202) | (14) | (1,202) | (25) |
Reductions for securities with intent to sell | (16,666) | (16,666) | ||
Addition (reductions) on securities with previous allowance | (668) | (2,286) | 6,262 | (1,756) |
Balance, end of period | 4,694 | 558 | 4,694 | 558 |
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 | ||
Reductions for securities sold during the period | 0 | 0 | 0 | 0 |
Reductions for securities with intent to sell | 0 | 0 | ||
Addition (reductions) on securities with previous allowance | 0 | 0 | 0 | 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 | ||
Reductions for securities sold during the period | 0 | 0 | 0 | 0 |
Reductions for securities with intent to sell | 0 | 0 | ||
Addition (reductions) on securities with previous allowance | 0 | 0 | 0 | 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 | ||
Reductions for securities sold during the period | 0 | 0 | 0 | 0 |
Reductions for securities with intent to sell | 0 | 0 | ||
Addition (reductions) on securities with previous allowance | 0 | 0 | 0 | 0 |
Balance, end of period | $ 0 | $ 0 | $ 0 | $ 0 |
Investments (Commercial Mortgag
Investments (Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 3,076,855 | $ 2,838,511 |
Commercial mortgage loans, Percentage | 100% | 100% |
Allowance for Credit Losses | $ (9,924) | $ (5,951) |
Commercial Mortgage Loans | 3,066,931 | 2,832,560 |
Commercial Mortgage and Agricultural Loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial Mortgage Loans | 3,066,931 | 2,832,560 |
Apartments and multi-family | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 792,222 | $ 748,414 |
Commercial mortgage loans, Percentage | 25.80% | 26.40% |
Hospitality | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 83,476 | $ 48,141 |
Commercial mortgage loans, Percentage | 2.70% | 1.70% |
Industrial | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 1,064,620 | $ 916,398 |
Commercial mortgage loans, Percentage | 34.60% | 32.20% |
Office | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 459,646 | $ 445,055 |
Commercial mortgage loans, Percentage | 14.90% | 15.70% |
Other | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 254,714 | $ 252,590 |
Commercial mortgage loans, Percentage | 8.30% | 8.90% |
Retail | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 228,494 | $ 255,577 |
Commercial mortgage loans, Percentage | 7.40% | 9% |
Commercial mortgage loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 2,883,172 | $ 2,666,175 |
Commercial mortgage loans, Percentage | 93.70% | 93.90% |
Agricultural property loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans | $ 193,683 | $ 172,336 |
Commercial mortgage loans, Percentage | 6.30% | 6.10% |
Investments (Allowance for Cred
Investments (Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of year | $ 6,446 | $ 4,314 | $ 5,951 | $ 4,552 |
Addition to (release of) allowance for expected losses | 3,478 | (910) | 3,973 | (1,148) |
Total ending balance | 9,924 | 3,404 | 9,924 | 3,404 |
Commercial mortgage loans | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of year | 6,324 | 4,309 | 5,847 | 4,546 |
Addition to (release of) allowance for expected losses | 3,380 | (929) | 3,857 | (1,166) |
Total ending balance | 9,704 | 3,380 | 9,704 | 3,380 |
Agricultural Property Loans | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance, beginning of year | 122 | 5 | 104 | 6 |
Addition to (release of) allowance for expected losses | 98 | 19 | 116 | 18 |
Total ending balance | $ 220 | $ 24 | $ 220 | $ 24 |
Investments (Credit Quality Ind
Investments (Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 3,076,855 | $ 2,838,511 |
Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 342,795 | 518,611 |
One Year Prior | 518,254 | 311,413 |
Two Year Prior | 314,437 | 544,189 |
Three Year Prior | 510,185 | 260,828 |
Four Year Prior | 252,192 | 309,083 |
Prior | 945,309 | 722,051 |
Recording investment gross of allowance for credit losses | 2,883,172 | 2,666,175 |
Commercial mortgage loans | ≥ 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 342,795 | 501,456 |
One Year Prior | 501,528 | 195,164 |
Two Year Prior | 199,237 | 481,289 |
Three Year Prior | 448,221 | 253,938 |
Four Year Prior | 245,427 | 289,443 |
Prior | 843,926 | 638,092 |
Recording investment gross of allowance for credit losses | 2,581,134 | 2,359,382 |
Commercial mortgage loans | 1.0X to 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 17,155 |
One Year Prior | 16,726 | 109,862 |
Two Year Prior | 108,998 | 39,577 |
Three Year Prior | 39,097 | 6,890 |
Four Year Prior | 6,765 | 7,100 |
Prior | 45,452 | 39,213 |
Recording investment gross of allowance for credit losses | 217,038 | 219,797 |
Commercial mortgage loans | Less than 1.0X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 0 | 0 |
One Year Prior | 0 | 6,387 |
Two Year Prior | 6,202 | 23,323 |
Three Year Prior | 22,867 | 0 |
Four Year Prior | 0 | 12,540 |
Prior | 55,931 | 44,746 |
Recording investment gross of allowance for credit losses | 85,000 | 86,996 |
Agricultural Property Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 27,995 | 98,579 |
One Year Prior | 99,101 | 26,581 |
Two Year Prior | 26,184 | 16,226 |
Three Year Prior | 16,121 | 6,463 |
Four Year Prior | 6,343 | 8,372 |
Prior | 17,939 | 16,115 |
Recording investment gross of allowance for credit losses | 193,683 | 172,336 |
Agricultural Property Loans | ≥ 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 27,995 | 98,579 |
One Year Prior | 99,101 | 26,581 |
Two Year Prior | 26,184 | 16,226 |
Three Year Prior | 16,121 | 6,463 |
Four Year Prior | 6,343 | 8,372 |
Prior | 17,151 | 15,300 |
Recording investment gross of allowance for credit losses | 192,895 | 171,521 |
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 | 788 | 815 |
Recording investment gross of allowance for credit losses | 788 | 815 |
0%-59.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 36,935 | 47,161 |
One Year Prior | 47,157 | 0 |
Two Year Prior | 5,584 | 179,682 |
Three Year Prior | 164,712 | 76,656 |
Four Year Prior | 83,681 | 126,934 |
Prior | 619,216 | 553,022 |
Recording investment gross of allowance for credit losses | 957,285 | 983,455 |
0%-59.99% | Agricultural Property Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 27,995 | 98,579 |
One Year Prior | 99,101 | 26,581 |
Two Year Prior | 26,184 | 16,226 |
Three Year Prior | 16,121 | 6,463 |
Four Year Prior | 6,343 | 8,372 |
Prior | 17,939 | 16,115 |
Recording investment gross of allowance for credit losses | 193,683 | 172,336 |
60%-69.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current Year | 176,681 | 307,999 |
One Year Prior | 324,556 | 225,330 |
Two Year Prior | 237,578 | 289,322 |
Three Year Prior | 273,374 | 170,444 |
Four Year Prior | 165,783 | 126,159 |
Prior | 250,876 | 116,654 |
Recording investment gross of allowance for credit losses | 1,428,848 | 1,235,908 |
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 | 129,179 | 163,451 |
One Year Prior | 146,541 | 86,083 |
Two Year Prior | 71,275 | 75,185 |
Three Year Prior | 72,099 | 13,728 |
Four Year Prior | 2,728 | 55,032 |
Prior | 74,270 | 51,203 |
Recording investment gross of allowance for credit losses | 496,092 | 444,682 |
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 | 0 |
Four Year Prior | 0 | 958 |
Prior | 947 | 1,172 |
Recording investment gross of allowance for credit losses | 947 | 2,130 |
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 | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 3,076,855 | $ 2,838,511 |
Non-Accrual Status | 0 | 0 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 3,076,855 | 2,838,511 |
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 | 2,883,172 | 2,666,175 |
Non-Accrual Status | 0 | 0 |
Commercial mortgage loans | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 2,883,172 | 2,666,175 |
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 | 193,683 | 172,336 |
Non-Accrual Status | 0 | 0 |
Agricultural Loan | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Recording investment gross of allowance for credit losses | 193,683 | 172,336 |
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 | 2,883,172 | 2,666,175 |
Loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Interest | $ 0 | $ 0 |
Investments (Other Invested Ass
Investments (Other Invested Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Other Invested Assets [Line Items] | ||
Other invested assets | $ 964,752 | $ 1,209,925 |
Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 926,270 | 887,706 |
Company’s investment in separate accounts | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 716 | 53,694 |
Derivative Instruments | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 37,766 | 268,525 |
Equity Method | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 849,902 | 808,227 |
Equity Method | Private equity | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 306,449 | 286,141 |
Equity Method | Hedge funds | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 440,632 | 432,749 |
Equity Method | Real estate-related | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 102,821 | 89,337 |
Fair Value | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 76,368 | 79,479 |
Fair Value | Private equity | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 66,186 | 69,137 |
Fair Value | Hedge funds | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | 456 | 481 |
Fair Value | Real estate-related | Total LPs/LLCs | ||
Other Invested Assets [Line Items] | ||
Other invested assets | $ 9,726 | $ 9,861 |
Investments (Accrued Investment
Investments (Accrued Investment Income) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Net Investment Income | ||
Accrued investment income | $ 161,703 | $ 160,027 |
Fixed maturities | ||
Net Investment Income | ||
Accrued investment income | 137,177 | 117,216 |
Equity securities | ||
Net Investment Income | ||
Accrued investment income | 236 | 2 |
Commercial mortgage and other loans | ||
Net Investment Income | ||
Accrued investment income | 8,517 | 7,025 |
Policy loans | ||
Net Investment Income | ||
Accrued investment income | 14,749 | 35,153 |
Other invested assets | ||
Net Investment Income | ||
Accrued investment income | 50 | 254 |
Short-term investments and cash equivalents | ||
Net Investment Income | ||
Accrued investment income | $ 974 | $ 377 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | $ 205,293 | $ 100,681 | $ 394,963 | $ 204,933 |
Less: investment expenses | (13,165) | (5,381) | (23,535) | (10,766) |
Net investment income | 192,128 | 95,300 | 371,428 | 194,167 |
Equity securities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 1,190 | 102 | 1,352 | 205 |
Commercial mortgage and other loans | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 22,801 | 13,322 | 45,049 | 26,748 |
Policy loans | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 5,153 | 17,315 | 10,219 | 34,349 |
Other invested assets | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 38,243 | 5,735 | 75,033 | 18,808 |
Short-term investments and cash equivalents | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 3,441 | 33 | 4,089 | 160 |
Available-for-sale | Fixed maturities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 121,986 | 63,630 | 231,177 | 123,588 |
Trading | Fixed maturities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | $ 12,479 | $ 544 | $ 28,044 | $ 1,075 |
Investments (Realized Investmen
Investments (Realized Investment Gains Losses, Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | $ 714,709 | $ (122,502) | $ 1,498,816 | $ (45,894) |
Fixed maturities | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | (26,717) | 1,369 | (63,438) | (1,369) |
Commercial mortgage and other loans | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | (5,756) | 910 | (6,359) | 1,148 |
Other invested assets | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | 1,894 | 887 | 3,536 | 909 |
Derivatives | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | 745,236 | (125,662) | 1,565,289 | (46,571) |
Short-term investments and cash equivalents | ||||
Schedule Of Gain Loss On Investments [Line Items] | ||||
Realized investment gains (losses), net | $ 52 | $ (6) | $ (212) | $ (11) |
Investments (Net Unrealized Gai
Investments (Net Unrealized Gains Losses on Investments by Asset Class) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Gain (Loss) on Securities [Line Items] | ||
Net Unrealized Gains (Losses) on Investments | $ (1,618,462) | $ 586,389 |
Fixed maturities | Available-for-sale | With an allowance | ||
Gain (Loss) on Securities [Line Items] | ||
Net Unrealized Gains (Losses) on Investments | 3,518 | 3,685 |
Fixed maturities | Available-for-sale | Without an allowance | ||
Gain (Loss) on Securities [Line Items] | ||
Net Unrealized Gains (Losses) on Investments | (1,757,460) | 540,881 |
Derivatives designated as cash flow hedges | ||
Gain (Loss) on Securities [Line Items] | ||
Net Unrealized Gains (Losses) on Investments | 144,390 | 39,896 |
Affiliated notes | ||
Gain (Loss) on Securities [Line Items] | ||
Net Unrealized Gains (Losses) on Investments | (10,756) | 73 |
Other investments | ||
Gain (Loss) on Securities [Line Items] | ||
Net Unrealized Gains (Losses) on Investments | $ 1,846 | $ 1,854 |
Investments (Repurchase Agreeme
Investments (Repurchase Agreement and Securities Lending) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | $ 150,666 | $ 3,004 |
Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 150,666 | 3,004 |
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 |
U.S. public corporate securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 5,528 | 3,004 |
U.S. public corporate securities | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 5,528 | 3,004 |
U.S. public corporate securities | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 0 |
Foreign public corporate securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 2,163 | 0 |
Foreign public corporate securities | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 2,163 | 0 |
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 |
Equity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 142,975 | 0 |
Equity securities | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 142,975 | 0 |
Equity securities | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | $ 0 | $ 0 |
Derivative Instruments (Gross N
Derivative Instruments (Gross Notional Amount and Fair Value of Derivatives Contracts) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Assets | $ 7,355,296 | $ 7,086,534 |
Liabilities | (14,504,013) | (12,573,983) |
Derivative, Notional Amount | 203,740,296 | 187,608,681 |
Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Assets | 156,102 | 37,314 |
Liabilities | (199) | (6,900) |
Derivative, Notional Amount | 1,379,698 | 889,896 |
Derivatives Designated as Hedge Accounting Instruments: | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Assets | 0 | 55 |
Liabilities | (190) | 0 |
Derivative, Notional Amount | 3,267 | 3,344 |
Derivatives Designated as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Assets | 156,102 | 37,259 |
Liabilities | (9) | (6,900) |
Derivative, Notional Amount | 1,376,431 | 886,552 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Assets | 7,199,194 | 7,049,220 |
Liabilities | (14,503,814) | (12,567,083) |
Derivative, Notional Amount | 202,360,598 | 186,718,785 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Assets | 5,468,843 | 5,698,740 |
Liabilities | (13,071,332) | (10,348,130) |
Derivative, Notional Amount | 135,289,710 | 130,358,860 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Future | ||
Derivative [Line Items] | ||
Assets | 34,624 | 2,876 |
Liabilities | (14,782) | (2,709) |
Derivative, Notional Amount | 1,670,300 | 4,109,300 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Forwards | ||
Derivative [Line Items] | ||
Assets | 8,765 | 842 |
Liabilities | (605) | (1,063) |
Derivative, Notional Amount | 259,344 | 119,653 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Default Swaps | ||
Derivative [Line Items] | ||
Assets | 0 | 24,789 |
Liabilities | (3,238) | 0 |
Derivative, Notional Amount | 2,079,750 | 306,900 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Assets | 180,430 | 68,477 |
Liabilities | (4,517) | (23,251) |
Derivative, Notional Amount | 1,926,100 | 2,139,523 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Options | ||
Derivative [Line Items] | ||
Assets | 564,881 | 902,050 |
Liabilities | (970,460) | (1,535,272) |
Derivative, Notional Amount | 36,440,892 | 19,461,881 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Option | ||
Derivative [Line Items] | ||
Assets | 85,071 | 280,323 |
Liabilities | (253,193) | (173,863) |
Derivative, Notional Amount | 9,193,000 | 9,883,000 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Forward | ||
Derivative [Line Items] | ||
Assets | 0 | 3,760 |
Liabilities | (5,002) | (991) |
Derivative, Notional Amount | 115,000 | 195,000 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Total Return Swap | ||
Derivative [Line Items] | ||
Assets | 854,969 | 66,627 |
Liabilities | (159,232) | (475,209) |
Derivative, Notional Amount | 12,393,180 | 15,129,666 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Future | ||
Derivative [Line Items] | ||
Assets | 1,611 | 736 |
Liabilities | (21,453) | (6,595) |
Derivative, Notional Amount | $ 2,993,322 | $ 5,015,002 |
Derivative Instruments (Offsett
Derivative Instruments (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Derivatives Assets | ||
Gross Amounts of Recognized Financial Instruments | $ 7,355,296 | $ 7,086,534 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (7,317,530) | (6,818,009) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 37,766 | 268,525 |
Financial Instruments/Collateral | 0 | 0 |
Net Amount | 37,766 | 268,525 |
Securities Purchased under Agreements to Resell | ||
Gross Amounts of Recognized Financial Instruments | 0 | 185,000 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Consolidated Statement of Financial Position | 0 | 185,000 |
Financial Instruments/Collateral | 0 | (185,000) |
Net Amount | 0 | 0 |
Total Assets | ||
Gross Amounts of Recognized Financial Instruments | 7,355,296 | 7,271,534 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (7,317,530) | (6,818,009) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 37,766 | 453,525 |
Financial Instruments/Collateral | 0 | (185,000) |
Net Amount | 37,766 | 268,525 |
Derivatives Liabilities | ||
Gross Amounts of Recognized Financial Instruments | 14,504,013 | 12,573,983 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (14,428,241) | (12,568,082) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 75,772 | 5,901 |
Financial Instruments/Collateral | (75,772) | (5,901) |
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 | 14,504,013 | 12,573,983 |
Gross Amounts Offset in the Consolidated Statement of Financial Position | (14,428,241) | (12,568,082) |
Net Amounts Presented in the Consolidated Statement of Financial Position | 75,772 | 5,901 |
Financial Instruments/Collateral | (75,772) | (5,901) |
Net Amount | $ 0 | $ 0 |
Derivative Instruments (Financi
Derivative Instruments (Financial Statement Classification and Impact of Derivatives Used in Qualifying and Non-qualifying Hedge Relationships) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | $ 745,236 | $ (125,662) | $ 1,565,289 | $ (46,571) |
Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 8,721 | 2,342 | 16,582 | 4,814 |
Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 33,773 | (598) | 40,586 | 1,107 |
AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 91,670 | 15,661 | 104,494 | 20,360 |
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 | 417 | 69 | (353) | (93) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 8,721 | 2,342 | 16,582 | 4,814 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 33,483 | (595) | 40,183 | 1,121 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 91,670 | 15,661 | 104,494 | 20,360 |
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 | 1 | 1 |
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 | 4 | 12 | 16 | 23 |
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 | (64) | 26 | (221) | (99) |
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 | 417 | 69 | (354) | (94) |
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 | 8,717 | 2,330 | 16,566 | 4,791 |
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 | 33,483 | (595) | 40,183 | 1,121 |
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 | 91,734 | 15,635 | 104,715 | 20,459 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, gain (loss) on derivatives, net | 744,819 | (125,731) | 1,565,642 | (46,478) |
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 | 290 | (3) | 403 | (14) |
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 | (1,670,415) | 16,719 | (3,296,352) | (20,652) |
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 | 15,504 | (203) | 19,801 | 834 |
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 | 114,645 | 2,898 | 112,937 | 3,090 |
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 | 290 | (3) | 0 | (14) |
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 | (38,726) | 0 | (41,449) | (12) |
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 | 403 | 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 | 933,277 | 19,694 | 1,324,537 | 35,256 |
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 | 1,390,534 | (164,839) | 3,446,168 | (64,994) |
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 | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Cash flow hedgers in AOCI | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |
Balance, beginning | $ 39,896 |
Amount Recorded in AOCI | 160,906 |
Amounts reclassified into current period earnings | (56,412) |
Balance, ending | 144,390 |
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 | (204) |
Amounts reclassified into current period earnings | (17) |
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 | 161,110 |
Amounts reclassified into current period earnings | $ (56,395) |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 18 | |
Credit Default Swaps Referencing Indices, Sell Protection | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 2,080 | $ 157 |
Credit Risk Derivatives, at Fair Value, Net | 11 | |
Credit Risk Derivative Liabilities, at Fair Value | 3 | |
Credit Default Swaps Referencing Indices, Sell Protection | NAIC 3 | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 1,981 | |
Credit Default Swaps Referencing Indices, Sell Protection | NAIC 6 | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 99 | |
Credit Default Swap, Buying Protection | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 0 | 150 |
Credit Risk Derivatives, at Fair Value, Net | 0 | 14 |
Future Policy Benefits | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net | (5,707) | (9,048) |
Reinsurance Recoverables | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net | 555 | 931 |
Policyholders' account balances | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net | (3,428) | (3,246) |
Other assets | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net | 76 | 73 |
Other Liabilities | ||
Derivative [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset (Liability), Net | $ (24) | $ (13) |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities (Balances of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | $ 14,438,956 | $ 13,278,166 |
Fixed maturities, trading | 1,814,999 | 3,302,392 |
Equity securities | 229,268 | 111,267 |
Other invested assets | 964,752 | 1,209,925 |
Other assets | 986,295 | 1,140,948 |
Reinsurance recoverables | 38,809,510 | 38,598,767 |
Receivables from parent and affiliates | 197,904 | 278,131 |
Separate account assets | 118,792,119 | 149,797,828 |
TOTAL ASSETS | 190,435,117 | 221,661,364 |
Future policy benefits | 24,112,142 | 27,927,029 |
Payables to parent and affiliates | 72,102 | 31,775 |
Other Liabilities | 3,203,069 | 2,264,477 |
Total liabilities | 185,670,939 | 215,706,270 |
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 | 5,707,000 | 9,048,000 |
Embedded Derivative, Fair Value of Embedded Derivative Gross Asset | 714,000 | 610,000 |
Embedded Derivative, Fair Value of Embedded Derivative Gross Liability | 6,421,000 | 9,658,000 |
Other Liabilities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net Liability | 24,000 | 13,000 |
Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 14,438,956 | 13,278,166 |
Fixed maturities, trading | 1,814,999 | 3,302,392 |
Equity securities | 229,268 | 111,267 |
Short-term Investments | 141,881 | 145,437 |
Cash equivalents | 917,443 | 436,632 |
Other invested assets | 37,766 | 268,525 |
Other assets | 75,858 | 72,937 |
Reinsurance recoverables | 555,053 | 931,207 |
Receivables from parent and affiliates | 150,946 | 162,045 |
Subtotal excluding separate account assets | 18,362,170 | 18,708,608 |
Separate account assets | 113,660,077 | 144,111,658 |
TOTAL ASSETS | 132,022,247 | 162,820,266 |
Future policy benefits | 5,706,968 | 9,047,956 |
Policyholders’ account balances | 3,427,667 | 3,245,773 |
Payables to parent and affiliates | 43,306 | 0 |
Other Liabilities | 8,249 | 18,525 |
Total liabilities | 9,186,190 | 12,312,254 |
Asset Netting | (7,317,530) | (6,818,009) |
Liability Netting | (14,428,241) | (12,568,082) |
Netting | (7,111,000) | (5,750,000) |
Fair Value, Measurements, Recurring | Other invested assets | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Asset Netting | (7,317,530) | (6,818,009) |
Fair Value, Measurements, Recurring | Payables to parent and affiliates | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liability Netting | (14,424,444) | (12,563,253) |
Fair Value, Measurements, Recurring | Other Liabilities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liability Netting | (3,797) | (4,829) |
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 | 593,874 | 333,940 |
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 | 554,010 | 630,521 |
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 | 268,444 | 350,471 |
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 | 5,328,017 | 5,131,872 |
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 | 2,285,723 | 2,004,875 |
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 | 1,089,063 | 929,902 |
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 | 2,634,683 | 2,753,911 |
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 | 894,553 | 547,310 |
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 | 694,688 | 575,184 |
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 | 95,901 | 20,180 |
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 | 184,148 | 58,160 |
Short-term Investments | 0 | 9,997 |
Cash equivalents | 0 | 13,999 |
Other invested assets | 36,359 | 246,097 |
Other assets | 0 | 0 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 0 | 0 |
Subtotal excluding separate account assets | 220,507 | 328,253 |
Separate account assets | 68,279 | 52,100 |
TOTAL ASSETS | 288,786 | 380,353 |
Future policy benefits | 0 | 0 |
Policyholders’ account balances | 0 | 0 |
Payables to parent and affiliates | 0 | 0 |
Other Liabilities | 36,235 | 10,730 |
Total liabilities | 36,235 | 10,730 |
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 | 13,997,655 | 12,718,438 |
Fixed maturities, trading | 1,814,999 | 3,302,392 |
Equity securities | 15,337 | 40,635 |
Short-term Investments | 139,109 | 135,440 |
Cash equivalents | 917,443 | 422,633 |
Other invested assets | 7,318,937 | 6,840,437 |
Other assets | 0 | 0 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 150,946 | 162,045 |
Subtotal excluding separate account assets | 24,354,426 | 23,622,020 |
Separate account assets | 113,591,798 | 144,059,558 |
TOTAL ASSETS | 137,946,224 | 167,681,578 |
Future policy benefits | 0 | 0 |
Policyholders’ account balances | 0 | 0 |
Payables to parent and affiliates | 14,467,750 | 12,563,253 |
Other Liabilities | (24,189) | 12,624 |
Total liabilities | 14,443,561 | 12,575,877 |
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 | 593,874 | 333,940 |
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 | 554,010 | 630,521 |
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 | 268,309 | 350,321 |
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 | 5,328,017 | 5,131,872 |
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 | 2,112,731 | 1,873,370 |
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 | 1,081,970 | 921,008 |
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 | 2,496,890 | 2,508,676 |
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 | 860,209 | 484,861 |
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 | 605,744 | 463,689 |
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 | 95,901 | 20,180 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities, available-for-sale | 441,301 | 559,728 |
Fixed maturities, trading | 0 | 0 |
Equity securities | 29,783 | 12,472 |
Short-term Investments | 2,772 | 0 |
Cash equivalents | 0 | 0 |
Other invested assets | 0 | 0 |
Other assets | 75,858 | 72,937 |
Reinsurance recoverables | 555,053 | 931,207 |
Receivables from parent and affiliates | 0 | 0 |
Subtotal excluding separate account assets | 1,104,767 | 1,576,344 |
Separate account assets | 0 | 0 |
TOTAL ASSETS | 1,104,767 | 1,576,344 |
Future policy benefits | 5,706,968 | 9,047,956 |
Policyholders’ account balances | 3,427,667 | 3,245,773 |
Payables to parent and affiliates | 0 | 0 |
Other Liabilities | 0 | 0 |
Total liabilities | 9,134,635 | 12,293,729 |
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 | 0 | 0 |
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 | 135 | 150 |
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 | 0 |
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 | 172,992 | 131,505 |
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 | 7,093 | 8,894 |
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 | 137,793 | 245,235 |
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 | 34,344 | 62,449 |
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 | 88,944 | 111,495 |
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 | 76,000 | 79,000 |
Separate Account Assets | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value investment measured at NAV per share | $ 5,132,000 | $ 5,686,000 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities (Quantitative Info for Level 3 Inputs) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Corporate securities | $ 238,300 | $ 106,174 |
Future policy benefits | 24,112,142 | 27,927,029 |
Fair Value, Measurements, Recurring | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Future policy benefits | 5,706,968 | 9,047,956 |
Policyholders’ account balances | $ 3,427,667 | 3,245,773 |
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% | |
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 | $ 5,706,968 | 9,047,956 |
Policyholders’ account balances | $ 3,427,667 | $ 3,245,773 |
Level 3 | Internal | Minimum | Discounted cash flow | Future policy benefits | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 1% | 1% |
Spread over LIBOR | 0.51% | 0.03% |
Utilization rate | 38% | 39% |
Withdrawal rate (greater than maximum range) | 77% | 76% |
Mortality rate | 0% | 0% |
Equity volatility curve | 18% | 16% |
Level 3 | Internal | Minimum | Discounted cash flow | Policyholders' account balances | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 1% | 1% |
Spread over LIBOR | 0.24% | 0.03% |
Mortality rate | 0% | 0% |
Equity volatility curve | 6% | 6% |
Level 3 | Internal | Minimum | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount Rate | 10.26% | 1.65% |
Level 3 | Internal | Minimum | Market comparables | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA multiples | 1.8 | 4.9 |
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% | 20% |
Spread over LIBOR | 2.14% | 1.13% |
Utilization rate | 95% | 96% |
Withdrawal rate (greater than maximum range) | 100% | 100% |
Mortality rate | 15% | 15% |
Equity volatility curve | 28% | 25% |
Level 3 | Internal | Maximum | Discounted cash flow | Policyholders' account balances | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 80% | 42% |
Spread over LIBOR | 2.14% | 1.13% |
Mortality rate | 23% | 23% |
Equity volatility curve | 36% | 31% |
Level 3 | Internal | Maximum | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount Rate | 20% | 20% |
Level 3 | Internal | Maximum | Market comparables | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA multiples | 18.5 | 19.2 |
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 | 12.67% | 4.57% |
Level 3 | Internal | Weighted Average | Market comparables | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA multiples | 7.5 | 9 |
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 | $ 5,706,968 | $ 9,047,956 |
Level 3 | Internal | Fair Value, Measurements, Recurring | Policyholders' account balances | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Policyholders’ account balances | 3,427,667 | 3,245,773 |
Level 3 | Internal | Fair Value, Measurements, Recurring | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Corporate securities | 237,632 | 312,139 |
Level 3 | Internal | Fair Value, Measurements, Recurring | Reinsurance recoverables | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Reinsurance recoverables | $ 555,053 | $ 931,207 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities (Changes in Level 3 Assets and Liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Equity securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | $ 11,463 | $ 7,678 | $ 12,472 | $ 7,889 |
Purchases | 10,000 | 0 | 10,000 | 0 |
Sales | (230) | 0 | (230) | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 9,661 | 0 | 9,661 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 29,783 | 8,005 | 29,783 | 8,005 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (1,111) | 327 | (2,120) | 116 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (1,129) | 327 | (2,138) | 116 |
Equity securities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Equity securities | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (1,111) | 327 | (2,120) | 116 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (1,129) | 327 | (2,138) | 116 |
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 |
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 | 2,766 | 0 | 2,766 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (54) | 0 | (54) | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 55 | 0 | 55 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 2,772 | 0 | 2,772 | 0 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 5 | 0 | 5 | 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 | 5 | 0 | 5 | 0 |
Other assets | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 75,201 | 0 | 72,937 | 0 |
Purchases | (6,574) | 0 | 1,241 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (819) | 0 | (2,657) | 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 | 75,858 | 0 | 75,858 | 0 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 8,050 | 0 | 4,337 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 7,231 | 0 | 1,679 | 0 |
Other assets | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 8,050 | 0 | 4,337 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 7,231 | 0 | 1,679 | 0 |
Other 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 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 assets | 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 | 700,700 | 7,447,863 | 931,207 | 13,239,539 |
Purchases | 34,038 | 277,633 | 69,340 | 555,866 |
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 | 555,053 | 9,275,523 | 555,053 | 9,275,523 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (179,685) | 1,550,027 | (445,494) | (4,519,882) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (174,545) | 1,638,970 | (430,193) | (4,201,349) |
Reinsurance recoverables | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (179,685) | 1,550,027 | (445,494) | (4,519,882) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (174,545) | 1,638,970 | (430,193) | (4,201,349) |
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 |
Future policy benefits | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | (6,964,587) | (7,435,081) | (9,047,956) | (13,227,814) |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | (252,534) | (275,654) | (515,552) | (551,903) |
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 | (5,706,968) | (9,263,516) | (5,706,968) | (9,263,516) |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 1,510,153 | (1,552,781) | 3,856,540 | 4,516,201 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 1,460,746 | (1,640,666) | 3,702,735 | 4,197,669 |
Future policy benefits | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 1,510,153 | (1,552,781) | 3,856,540 | 4,516,201 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 1,460,746 | (1,640,666) | 3,702,735 | 4,197,669 |
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 | (3,260,195) | (1,031,525) | (3,245,773) | (1,155,274) |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (238,575) | 21,839 | (391,366) | 35,331 |
Other | 0 | 0 | 239,022 | 0 |
Transfers Into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | (3,427,667) | (1,156,610) | (3,427,667) | (1,156,610) |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 71,103 | (146,924) | (29,550) | (36,667) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (341,035) | (128,815) | (492,251) | (325) |
Policyholders' account balances | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 71,103 | (146,924) | (29,550) | (36,667) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (341,035) | (128,815) | (492,251) | (325) |
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 | (1,909) | 2,316 | (16,812) | 1,808 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 631 | 2,300 | (14,380) | 1,799 |
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 | (21,240) | 2,708 | (55,081) | (8,910) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (21,518) | 2,700 | (54,957) | (8,921) |
Available-for-sale | Fixed maturities | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (53) | 27 | 330 | 50 |
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 | 0 | 55,000 | 0 | 55,000 |
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 | 55,000 | 0 | 55,000 |
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 | 140 | 157 | 150 | 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 | 135 | 156 | 135 | 156 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (5) | (1) | (15) | (7) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (5) | (1) | (15) | (8) |
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 | 385,358 | 165,491 | 385,634 | 174,776 |
Purchases | 83,901 | 23 | 133,311 | 2,342 |
Sales | (11,217) | 0 | (12,388) | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (21,195) | (2,208) | (33,335) | (4,373) |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 2,474 | 0 | 5,117 |
Transfers out of Level 3 | (106,124) | 0 | (106,124) | 0 |
Fair Value, end of period | 317,878 | 170,830 | 317,878 | 170,830 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (12,845) | 5,050 | (49,220) | (7,032) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (10,577) | 5,000 | (47,042) | (7,101) |
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 | 112,116 | 2,134 | 173,944 | 2,065 |
Purchases | 33,490 | 25,450 | 33,490 | 25,950 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (571) | (407) | (1,073) | (823) |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | (11,395) | 0 | (60,745) | 0 |
Fair Value, end of period | 123,288 | 27,179 | 123,288 | 27,179 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (10,352) | 2 | (22,328) | (13) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (10,305) | 1 | (22,280) | (13) |
Trading | Fixed maturities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 0 | 767 | 0 | 755 |
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 | 801 | 0 | 801 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 34 | 0 | 46 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 33 | 0 | 46 |
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 | 34 | 0 | 46 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 33 | 0 | 46 |
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 (Nonrecurring Fair Value Measurements) (Details) - Level 3 - Fair Value, Nonrecurring - Investment in JV/LP - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Realized investment gains (losses) net | $ (75,000) | $ 0 | $ (75,000) | $ 0 | |
Carrying value after measurement as of period end | $ 60,456 | $ 60,456 | $ 0 |
Fair Value of Assets and Liab_7
Fair Value of Assets and Liabilities (Financial Instruments where Carrying Amounts and Fair Values May Differ) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets [Abstract] | ||
Policy loans | $ 489,592 | $ 1,327,485 |
Cash and cash equivalents | 1,789,752 | 918,931 |
Accrued investment income | 161,703 | 160,027 |
Reinsurance recoverables | 38,809,510 | 38,598,767 |
Receivables from parent and affiliates | 197,904 | 278,131 |
Liabilities: | ||
Cash collateral for loaned securities | 150,666 | 3,004 |
Fair Value | ||
Assets [Abstract] | ||
Commercial mortgage and other loans | 2,852,215 | 2,883,710 |
Policy loans | 489,592 | 1,327,485 |
Short-term Investments | 129,000 | 37,000 |
Cash and cash equivalents | 872,309 | 482,299 |
Accrued investment income | 161,703 | 160,027 |
Reinsurance recoverables | 26,248 | 29,931 |
Receivables from parent and affiliates | 46,958 | 116,086 |
Other assets | 523,973 | 568,981 |
Total assets | 5,101,998 | 5,605,519 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 3,905,233 | 3,947,337 |
Cash collateral for loaned securities | 150,666 | 3,004 |
Long-term debt to affiliates | 297,877 | 319,225 |
Payables to parent and affiliates | 28,796 | 31,775 |
Other liabilities | 846,393 | 898,879 |
Total liabilities | 5,228,965 | 5,200,220 |
Carrying Amount | ||
Assets [Abstract] | ||
Commercial mortgage and other loans | 3,066,931 | 2,832,560 |
Policy loans | 489,592 | 1,327,485 |
Short-term Investments | 129,000 | 37,000 |
Cash and cash equivalents | 872,309 | 482,299 |
Accrued investment income | 161,703 | 160,027 |
Reinsurance recoverables | 27,938 | 28,883 |
Receivables from parent and affiliates | 46,958 | 116,086 |
Other assets | 523,973 | 568,981 |
Total assets | 5,318,404 | 5,553,321 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 3,920,807 | 3,941,822 |
Cash collateral for loaned securities | 150,666 | 3,004 |
Long-term debt to affiliates | 315,807 | 320,362 |
Payables to parent and affiliates | 28,796 | 31,775 |
Other liabilities | 846,393 | 898,879 |
Total liabilities | 5,262,469 | 5,195,842 |
Level 1 | Fair Value | ||
Assets [Abstract] | ||
Commercial mortgage and other loans | 0 | 0 |
Policy loans | 0 | 0 |
Short-term Investments | 129,000 | 37,000 |
Cash and cash equivalents | 872,309 | 297,299 |
Accrued investment income | 0 | 0 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 1,001,309 | 334,299 |
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 [Abstract] | ||
Commercial mortgage and other loans | 0 | 0 |
Policy loans | 0 | 0 |
Short-term Investments | 0 | 0 |
Cash and cash equivalents | 0 | 185,000 |
Accrued investment income | 161,703 | 160,027 |
Reinsurance recoverables | 0 | 0 |
Receivables from parent and affiliates | 46,958 | 116,086 |
Other assets | 43,201 | 134,598 |
Total assets | 251,862 | 595,711 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 1,285,380 | 1,356,850 |
Cash collateral for loaned securities | 150,666 | 3,004 |
Long-term debt to affiliates | 297,877 | 319,225 |
Payables to parent and affiliates | 28,796 | 31,775 |
Other liabilities | 813,143 | 864,788 |
Total liabilities | 2,575,862 | 2,575,642 |
Level 3 | Fair Value | ||
Assets [Abstract] | ||
Commercial mortgage and other loans | 2,852,215 | 2,883,710 |
Policy loans | 489,592 | 1,327,485 |
Short-term Investments | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Accrued investment income | 0 | 0 |
Reinsurance recoverables | 26,248 | 29,931 |
Receivables from parent and affiliates | 0 | 0 |
Other assets | 480,772 | 434,383 |
Total assets | 3,848,827 | 4,675,509 |
Liabilities: | ||
Policyholders’ account balances - investment contracts | 2,619,853 | 2,590,487 |
Cash collateral for loaned securities | 0 | 0 |
Long-term debt to affiliates | 0 | 0 |
Payables to parent and affiliates | 0 | 0 |
Other liabilities | 33,250 | 34,091 |
Total liabilities | $ 2,653,103 | $ 2,624,578 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ 75,774 | $ 6,993 | $ 71,073 | $ (38,316) |
Effective Income Tax Rate, Percent | 14.92% | (120.44%) | ||
Federal Statutory Income Tax Rate, Percent | 21% |
Reinsurance (Reinsurance amount
Reinsurance (Reinsurance amounts included in the Statements of Financial Position) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Effects of Reinsurance [Line Items] | ||
Reinsurance recoverables | $ 38,809,510 | $ 38,598,767 |
Policy loans | (489,592) | (1,327,485) |
Deferred policy acquisition costs | 6,310,935 | 6,830,972 |
Deferred sales inducements | (297,772) | (374,649) |
Other assets | 986,295 | 1,140,948 |
Future policy benefits | 24,112,142 | 27,927,029 |
Other liabilities | 3,203,069 | 2,264,477 |
Impacts of Reinsurance | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance recoverables | 38,809,510 | 38,598,767 |
Policy loans | (1,012,829) | (156,749) |
Deferred policy acquisition costs | 3,203,610 | 2,575,232 |
Deferred sales inducements | (34,354) | (37,905) |
Other assets | 854,974 | 850,681 |
Policyholders' account balance | 13,655,630 | 14,386,443 |
Future policy benefits | 5,167,591 | 5,286,252 |
Other liabilities | 2,616,417 | 1,642,413 |
Unaffiliated activity | ||
Effects of Reinsurance [Line Items] | ||
Deferred policy acquisition costs | 481,000 | 0 |
Other assets | 742,000 | 497,000 |
Policyholders' account balance | 9,209,000 | 0 |
Future policy benefits | 2,000 | 0 |
Other liabilities | $ 599,000 | $ 467,000 |
Reinsurance (Reinsurance Recove
Reinsurance (Reinsurance Recoverable by Counterparty) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | $ 38,809,510 | $ 38,598,767 |
PAR U | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 13,365,163 | 13,523,832 |
PALAC | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 0 | 7,198,504 |
PURC | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 5,760,428 | 5,830,441 |
PARCC | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 2,282,435 | 2,371,491 |
GUL Re | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 2,666,661 | 2,710,926 |
PAR Term | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 1,998,500 | 1,972,339 |
Prudential Insurance | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 1,378,191 | 2,082,551 |
Term Re | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 2,006,812 | 1,953,063 |
Lotus Re | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 1,986,321 | 32,039 |
DART | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 708,366 | 644,101 |
Unaffiliated | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | $ 6,656,633 | $ 279,480 |
Reinsurance (Reinsurance amou_2
Reinsurance (Reinsurance amounts included in the Statement of Operations and Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Premiums: | ||||
Direct | $ 471,343 | $ 486,008 | $ 945,271 | $ 972,885 |
Assumed | (9,474) | 41 | (8,077) | 84 |
Ceded | (404,448) | (441,187) | (805,528) | (883,702) |
Net premiums | 57,421 | 44,862 | 131,666 | 89,267 |
Policy charges and fee income: | ||||
Direct | 900,644 | 893,456 | 1,802,968 | 1,803,345 |
Assumed | 161,372 | 146,537 | 312,193 | 286,650 |
Ceded | (436,204) | (859,793) | (1,297,787) | (1,757,930) |
Net policy charges and fee income | 625,812 | 180,200 | 817,374 | 332,065 |
Net investment income: | ||||
Direct | 195,480 | 96,905 | 390,991 | 197,300 |
Assumed | 365 | 371 | 818 | 730 |
Ceded | (3,717) | (1,976) | (20,381) | (3,863) |
Net investment income | 192,128 | 95,300 | 371,428 | 194,167 |
Asset administration fees: | ||||
Direct | 88,655 | 98,823 | 186,112 | 195,437 |
Assumed | 0 | 0 | 0 | 0 |
Ceded | (16,865) | (92,547) | (35,090) | (182,950) |
Net asset administration fees | 71,790 | 6,276 | 151,022 | 12,487 |
Other income (loss): | ||||
Direct | (325,563) | 24,577 | (674,251) | 41,677 |
Assumed | (2,548) | 13 | (2,509) | (60) |
Ceded | (60) | 41 | (438) | 106 |
Amortization of reinsurance income | 16,155 | 999 | 37,578 | 2,151 |
Net Other income (loss) | (312,016) | 25,630 | (639,620) | 43,874 |
Realized investment gains (losses), net: | ||||
Direct | 1,148,607 | (1,655,473) | 2,355,755 | 4,502,274 |
Assumed | (281,646) | 0 | (485,630) | 0 |
Ceded | (152,252) | 1,532,971 | (371,309) | (4,548,168) |
Realized investment gains (losses), net | 714,709 | (122,502) | 1,498,816 | (45,894) |
Policyholders’ benefits (including change in reserves): | ||||
Direct | 1,421,515 | 801,694 | 2,326,652 | 1,799,518 |
Assumed | 761,610 | 225,704 | 1,000,277 | 417,509 |
Ceded | (2,025,019) | (949,322) | (2,949,059) | (2,045,038) |
Net policyholders’ benefits (including change in reserves) | 158,106 | 78,076 | 377,870 | 171,989 |
Interest credited to policyholders’ account balances: | ||||
Direct | 202,814 | 100,790 | 404,840 | 280,225 |
Assumed | 29,601 | 32,132 | 102,103 | 65,118 |
Ceded | (109,471) | (85,522) | (220,473) | (241,773) |
Net interest credited to policyholders’ account balances | 122,944 | 47,400 | 286,470 | 103,570 |
Reinsurance expense allowances and general and administrative expenses, net of capitalization and amortization | (80,230) | (292,845) | (216,082) | (761,280) |
Unaffiliated activity | ||||
Premiums: | ||||
Assumed | (13,000) | 100 | (13,000) | 100 |
Ceded | (9,000) | (7,000) | (16,000) | (14,000) |
Policy charges and fee income: | ||||
Assumed | 11,000 | 0 | 11,000 | 0 |
Ceded | (20,000) | (16,000) | (38,000) | (30,000) |
Net investment income: | ||||
Ceded | 9,000 | 0 | 4,000 | 0 |
Other income (loss): | ||||
Assumed | (3,000) | 0 | (3,000) | 0 |
Realized investment gains (losses), net: | ||||
Assumed | (282,000) | 0 | (282,000) | 0 |
Ceded | (9,000) | 31,000 | (14,000) | (110,000) |
Policyholders’ benefits (including change in reserves): | ||||
Assumed | 1,000 | 200 | 1,000 | 300 |
Ceded | (18,000) | (50,000) | (38,000) | (131,000) |
Interest credited to policyholders’ account balances: | ||||
Assumed | $ (3,000) | $ 0 | $ (3,000) | $ 0 |
Reinsurance (Life Insurance In
Reinsurance (Life Insurance In Force) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Reinsurance Disclosures [Abstract] | ||
Direct gross life insurance face amount in force | $ 1,086,899,612 | $ 1,068,336,643 |
Assumed gross life insurance face amount in force | 37,151,725 | 38,300,008 |
Reinsurance ceded | (1,012,351,998) | (993,562,545) |
Net life insurance face amount in force | $ 111,699,339 | $ 113,074,106 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 21 Months Ended | 24 Months Ended | 36 Months Ended | 48 Months Ended | ||||||||||||||
Jan. 01, 2022 USD ($) | Jul. 01, 2019 | Jul. 01, 2017 | Jul. 01, 2012 | Dec. 31, 2010 | Dec. 31, 2009 | Jan. 31, 2001 | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2016 | Dec. 31, 2013 | Dec. 31, 2017 | Dec. 31, 2013 | Oct. 01, 2021 USD ($) | |
Effects of Reinsurance [Line Items] | ||||||||||||||||||||
Deposit assets on reinsurance | $ 521,000 | $ 497,000 | $ 521,000 | |||||||||||||||||
Funds witheld liabilities | 458,000 | 419,000 | 458,000 | |||||||||||||||||
Ceded Premiums | (404,448) | $ (441,187) | (805,528) | $ (883,702) | ||||||||||||||||
Policy loan assets | 489,592 | 1,327,485 | 489,592 | |||||||||||||||||
Reinsurance recoverables | 38,809,510 | 38,598,767 | 38,809,510 | |||||||||||||||||
Impacts of Reinsurance | ||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||
Policy loan assets | 1,012,829 | 156,749 | 1,012,829 | |||||||||||||||||
Reinsurance recoverables | 38,809,510 | 38,598,767 | 38,809,510 | |||||||||||||||||
PAR U | ||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||
Reinsurance recoverables | 13,365,163 | 13,523,832 | 13,365,163 | |||||||||||||||||
PURC | ||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||
Reinsurance recoverables | 5,760,428 | 5,830,441 | 5,760,428 | |||||||||||||||||
PARCC | ||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||
Reinsurance recoverables | 2,282,435 | 2,371,491 | 2,282,435 | |||||||||||||||||
GUL Re | ||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||
Reinsurance recoverables | 2,666,661 | 2,710,926 | 2,666,661 | |||||||||||||||||
PAR Term | ||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||
Reinsurance recoverables | 1,998,500 | 1,972,339 | 1,998,500 | |||||||||||||||||
Term Re | ||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||
Reinsurance recoverables | 2,006,812 | 1,953,063 | 2,006,812 | |||||||||||||||||
Prudential Insurance | ||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||
Reinsurance recoverables | 1,378,191 | 2,082,551 | 1,378,191 | |||||||||||||||||
Lotus Re | ||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||
Reinsurance recoverables | 1,986,321 | 32,039 | 1,986,321 | |||||||||||||||||
DART | ||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||
Reinsurance recoverables | 708,366 | $ 644,101 | 708,366 | |||||||||||||||||
Union Hamilton Reinsurance, Ltd. | ||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||
Reinsurance recoverables | 2,700,000 | 2,700,000 | ||||||||||||||||||
Union Hamilton Reinsurance, Ltd. | Quote Share Reinsurance | ||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 50% | |||||||||||||||||||
Variable annuity | FLIAC | ||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||
Reinsurance contracts | 957,000 | 957,000 | ||||||||||||||||||
Fixed annuity | FLIAC | ||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||
Reinsurance contracts | $ 315,000 | $ 315,000 | ||||||||||||||||||
Percent of total reinsured block | 0.13 | 0.13 | ||||||||||||||||||
Affiliated Entity | PAR U | ||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95% | 70% | ||||||||||||||||||
Affiliated Entity | PURC | ||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95% | 70% | ||||||||||||||||||
Affiliated Entity | PARCC | ||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 100% | 90% | ||||||||||||||||||
Affiliated Entity | GUL Re | ||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 30% | 95% | ||||||||||||||||||
Affiliated Entity | PAR Term | ||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 100% | 95% | ||||||||||||||||||
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% | |||||||||||||||||||
Affiliated Entity | Prudential Insurance | ||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 100% | |||||||||||||||||||
Affiliated Entity | Prudential Insurance | Impacts of Reinsurance | ||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||
Reinsurance agreement loss | $ 305,000 | |||||||||||||||||||
Affiliated Entity | Lotus Re | Impacts of Reinsurance | ||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||
Reinsurance liabilities associated with the risks of the coinsurance agreement | $ 32,000 | |||||||||||||||||||
Reinsurance agreement ceded risk | 100% | |||||||||||||||||||
Net liabilities associated with the transaction for coinsurance | $ 1,381,000 | |||||||||||||||||||
Net liabilities associated with the transaction for modified coinsurance | 14,037,000 | |||||||||||||||||||
Policy loan assets | 855,000 | |||||||||||||||||||
Cash received | 820,000 | |||||||||||||||||||
Recognized gain | $ 1,346,000 | |||||||||||||||||||
Affiliated Entity | DART | ||||||||||||||||||||
Effects of Reinsurance [Line Items] | ||||||||||||||||||||
Reinsurance Retention Policy, Reinsured Risk, Percentage | 95% |
Equity (Accumulated Other Compr
Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 347,435 | |||
Income tax benefit (expense) | $ 189,054 | $ (45,396) | 402,512 | $ 28,335 |
Ending Balance | (1,171,582) | (1,171,582) | ||
Foreign Currency Translation Adjustments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (11,274) | (7,797) | ||
Change in OCI before reclassifications | (7,870) | (4,781) | ||
Amounts reclassified from AOCI | 0 | 0 | ||
Income tax benefit (expense) | 735 | 149 | ||
Ending Balance | (18,409) | (12,429) | (18,409) | (12,429) |
Net unrealized investment gains (losses) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 358,709 | 553,925 | ||
Change in OCI before reclassifications | (1,920,685) | (129,762) | ||
Amounts reclassified from AOCI | 7,026 | (4,473) | ||
Income tax benefit (expense) | 401,777 | 28,186 | ||
Ending Balance | (1,153,173) | 447,876 | (1,153,173) | 447,876 |
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 347,435 | 546,128 | ||
Change in OCI before reclassifications | (1,928,555) | (134,543) | ||
Amounts reclassified from AOCI | 7,026 | (4,473) | ||
Income tax benefit (expense) | 402,512 | 28,335 | ||
Ending Balance | (1,171,582) | 435,447 | (1,171,582) | 435,447 |
Cash flow hedges | Net unrealized investment gains (losses) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 40,000 | (8,000) | ||
Ending Balance | $ 144,000 | $ 12,000 | $ 144,000 | $ 12,000 |
Equity (Reclassification out of
Equity (Reclassification out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net unrealized investment gains (losses) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | $ 7,026 | $ (4,473) | ||
Total reclassifications for the period | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | 7,026 | (4,473) | ||
Amounts reclassified from AOCI | Net unrealized investment gains (losses) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | $ 15,905 | $ 3,185 | (7,026) | 4,473 |
Amounts reclassified from AOCI | Total reclassifications for the period | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | 15,905 | 3,185 | (7,026) | 4,473 |
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) | (26,717) | 1,369 | (63,438) | (1,369) |
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) | $ 42,622 | $ 1,816 | $ 56,412 | $ 5,842 |
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 | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | $ 347,435 |
Ending Balance | (1,171,582) |
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 | 3,685 |
Net investment gains (losses) on investments arising during the period | (1,592) |
Reclassification adjustment for (gains) losses included in net income | 727 |
Reclassification due to allowance for credit losses recorded during the period | 698 |
Impact of net unrealized investment (gains) losses | 0 |
Ending Balance | 3,518 |
Net Unrealized Investment Gains (Losses) on All Other Investments | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | 582,704 |
Net investment gains (losses) on investments arising during the period | (2,210,285) |
Reclassification adjustment for (gains) losses included in net income | 6,299 |
Reclassification due to allowance for credit losses recorded during the period | (698) |
Impact of net unrealized investment (gains) losses | 0 |
Ending Balance | (1,621,980) |
Deferred Policy Acquisition Costs and Other Costs | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | 983,085 |
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 | (1,798,631) |
Ending Balance | (815,546) |
Future Policy Benefits and Policyholders’ Account Balances and other liabilities | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (1,115,484) |
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 | 2,089,823 |
Ending Balance | 974,339 |
Income Tax Benefit (Expense) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (95,281) |
Net investment gains (losses) on investments arising during the period | 464,388 |
Reclassification adjustment for (gains) losses included in net income | (1,475) |
Reclassification due to allowance for credit losses recorded during the period | 0 |
Impact of net unrealized investment (gains) losses | (61,136) |
Ending Balance | 306,496 |
Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | 358,709 |
Net investment gains (losses) on investments arising during the period | (1,747,489) |
Reclassification adjustment for (gains) losses included in net income | 5,551 |
Reclassification due to allowance for credit losses recorded during the period | 0 |
Impact of net unrealized investment (gains) losses | 230,056 |
Ending Balance | $ (1,153,173) |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Jun. 30, 2022 USD ($) policy | Jun. 30, 2021 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Related Party Transaction [Line Items] | ||||||||||
Commissions and fees | $ 625,812,000 | $ 180,200,000 | $ 817,374,000 | $ 332,065,000 | ||||||
Net investment income | 192,128,000 | 95,300,000 | 371,428,000 | 194,167,000 | ||||||
Other invested assets | 964,752,000 | $ 1,209,925,000 | 964,752,000 | $ 1,209,925,000 | ||||||
Fee income from revenue sharing agreement | 71,790,000 | 6,276,000 | 151,022,000 | 12,487,000 | ||||||
Accrued investment income | 161,703,000 | 160,027,000 | 161,703,000 | 160,027,000 | ||||||
Prudential Insurance | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Contributed Capital | 3,000,000 | $ 8,000,000 | 457,000,000 | $ 3,813,000,000 | $ 106,000,000 | |||||
Return of Capital | 34,000,000 | |||||||||
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 | 400,000 | 300,000 | 500,000 | 400,000 | ||||||
Deferred compensation program expense | 500,000 | 800,000 | 3,200,000 | 2,300,000 | ||||||
Pension plan expense | 5,000,000 | 3,000,000 | 10,000,000 | 6,000,000 | ||||||
Welfare plan expense | 3,000,000 | 3,000,000 | $ 7,000,000 | 6,000,000 | ||||||
Defined contribution plan, employer matching contribution, percent (up to) | 4% | |||||||||
Defined contribution plan, cost recognized | 2,000,000 | 1,000,000 | $ 4,000,000 | 2,000,000 | ||||||
Number of Corporate Owned Life Insurance policies sold | policy | 5 | |||||||||
Prudential Insurance and Prudential Financial | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Life Insurance, Corporate or Bank Owned, amount | 4,431,000,000 | 5,248,000,000 | $ 4,431,000,000 | 5,248,000,000 | ||||||
Fees related to Life Insurance, Corporate or Bank Owned, amount | 13,000,000 | 14,000,000 | 27,000,000 | 27,000,000 | ||||||
Prudential Financial | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Company's share of corporate expenses | 21,000,000 | 14,000,000 | $ 34,000,000 | 32,000,000 | ||||||
Number of Corporate Owned Life Insurance policies sold | policy | 1 | |||||||||
Affiliated Entity | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Net investment income | 1,000,000 | $ 1,000,000 | ||||||||
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 | 2,000,000 | 2,000,000 | ||||||
Accrued investment income | 300,000 | 300,000 | ||||||||
Line of credit facility, maximum borrowing capacity | 2,200,000,000 | 2,200,000,000 | ||||||||
Interest expense related to loans payable | (5,000,000) | 0 | (5,000,000) | 0 | ||||||
Invested Assets | 167,000,000 | 167,000,000 | ||||||||
Affiliated Entity | PAD | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Commissions and fees | 162,000,000 | 97,000,000 | 332,000,000 | 193,000,000 | ||||||
Affiliated Entity | PGIM | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Net investment income | 10,000,000 | 3,000,000 | 18,000,000 | 7,000,000 | ||||||
Affiliated Entity | ASTISI and PGIM Investments | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Fee income from revenue sharing agreement | 78,000,000 | 94,000,000 | 163,000,000 | 185,000,000 | ||||||
Affiliated Entity | PGIM Investments | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Fee income from revenue sharing agreement | 9,000,000 | 4,000,000 | 19,000,000 | 7,000,000 | ||||||
Prudential Financial Joint Ventures | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Net investment income | 6,000,000 | $ 4,000,000 | 19,000,000 | $ 7,000,000 | ||||||
Other invested assets | $ 475,000,000 | $ 466,000,000 | $ 475,000,000 | $ 466,000,000 |
Related Party Transactions (Aff
Related Party Transactions (Affiliated Notes Receivable) (Details) - Affiliated Entity - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | ||
Total notes receivable - affiliated | $ 150,946 | $ 162,045 |
U.S. Dollar fixed rate notes | ||
Related Party Transaction [Line Items] | ||
Total notes receivable - affiliated | $ 150,946 | $ 162,045 |
U.S. Dollar fixed rate notes | Minimum | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 0% | |
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 | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | ||
Commercial Mortgage Loans | $ 3,066,931 | $ 2,832,560 |
Affiliated Entity | Commercial mortgage loans | ||
Related Party Transaction [Line Items] | ||
Interest Rates | 5.62% | |
Commercial Mortgage Loans | $ 72,818 | $ 73,412 |
Related Party Transactions (A_2
Related Party Transactions (Affiliated Asset Transfers) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | ||||
Realized investment gains (losses) | $ 714,709 | $ (122,502) | $ 1,498,816 | $ (45,894) |
Affiliated Entity | PALAC - June 2021 - Purchase - Equities | ||||
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 - Fixed Maturities | ||||
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 - Fixed Maturities | ||||
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 - Fixed Maturities | ||||
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 - Fixed Maturities | ||||
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 - Fixed Maturities | ||||
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 - Commercial Mortgage and Other Loans | ||||
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 - Commercial Mortgage and Other Loans | ||||
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 - Commercial Mortgage and Other Loans | ||||
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 - Commercial Mortgage and Other Loans | ||||
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 - Derivatives | ||||
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 - Derivatives | ||||
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 - Derivatives | ||||
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 - Derivatives | ||||
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 | |||
Affiliated Entity | PAR U - November 2021 - Purchase - Fixed Maturities | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 41,021 | 41,021 | ||
Book Value | 41,021 | 41,021 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | PALAC - November 2021 - Purchase - Derivatives | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 1,112 | 1,112 | ||
Book Value | 1,112 | 1,112 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | PALAC - December 2021 - Transfer In - Fixed Maturities | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 2,037,320 | 2,037,320 | ||
Book Value | 2,037,320 | 2,037,320 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | PURC - December 2021 - Purchase - Fixed Maturities | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 48,041 | 48,041 | ||
Book Value | 48,041 | 48,041 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | PALAC - December 2021 - Purchase - Fixed Maturities | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 57,087 | 57,087 | ||
Book Value | 57,087 | 57,087 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | PALAC - December 2021 - Transfer In - Commercial Mortgage and Other Loans | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 517,309 | 517,309 | ||
Book Value | 517,309 | 517,309 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | Prudential Insurance - December 2021 - Contributed Capital - Fixed Maturities | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 166,676 | 166,676 | ||
Book Value | 166,676 | 166,676 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | Prudential Retirement Insurance & Annuity Co - December 2021 - Sale - Derivatives | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 31,567 | 31,567 | ||
Book Value | 0 | 0 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 31,567 | |||
Affiliated Entity | Prudential Retirement Insurance and Annuity Co- December 2021 - Purchase - Derivatives | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 73,572 | 73,572 | ||
Book Value | 73,572 | 73,572 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | PALAC - December 2021 - Purchase - Derivatives | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 8,455 | 8,455 | ||
Book Value | 8,455 | 8,455 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | PALAC - January 2022 - Purchase - Fixed Maturities | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 4,432 | 4,432 | ||
Book Value | 4,432 | 4,432 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | PALAC - January 2022 - Purchase - Derivatives | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 404 | 404 | ||
Book Value | 404 | 404 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | PALAC - February 2022 - Purchase - Fixed Maturities | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 128,909 | 128,909 | ||
Book Value | 128,909 | 128,909 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | PAR U - April 2022 - Purchase - Fixed Maturities | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 48,970 | 48,970 | ||
Book Value | 48,970 | 48,970 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | Prudential Insurance - May 2022 - Purchase - Fixed Maturities | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 233,426 | 233,426 | ||
Book Value | 241,128 | 241,128 | ||
APIC, Net of Tax Increase/(Decrease) | 6,085 | 6,085 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | Prudential Insurance - June 2022 - Purchase - Fixed Maturities | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 88,754 | 88,754 | ||
Book Value | 81,216 | 81,216 | ||
APIC, Net of Tax Increase/(Decrease) | (5,955) | (5,955) | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | Prudential Insurance - June 2022 - Transfer In - Fixed Maturities | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 52,089 | 52,089 | ||
Book Value | 45,031 | 45,031 | ||
APIC, Net of Tax Increase/(Decrease) | (5,577) | (5,577) | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | Prudential Insurance - June 2022 - Transfer Out - Fixed Maturities | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 48,786 | 48,786 | ||
Book Value | 58,984 | 58,984 | ||
APIC, Net of Tax Increase/(Decrease) | (8,057) | (8,057) | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | PAR U - June 2022 - Purchase - Commercial Mortgage and Other Loans | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 6,492 | 6,492 | ||
Book Value | 6,492 | 6,492 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | PAR U - June 2022 - Sale - Commercial Mortgage and Other Loans | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 14,853 | 14,853 | ||
Book Value | 15,725 | 15,725 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | (872) | |||
Affiliated Entity | GUL Re - June 2022 - Purchase - Commercial Mortgage and Other Loans | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 13,551 | 13,551 | ||
Book Value | 13,551 | 13,551 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | 0 | |||
Affiliated Entity | GUL Re - June 2022 - Sale - Commercial Mortgage and Other Loans | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 8,692 | 8,692 | ||
Book Value | 9,033 | 9,033 | ||
APIC, Net of Tax Increase/(Decrease) | 0 | 0 | ||
Realized investment gains (losses) | (341) | |||
Affiliated Entity | PURC - June 2022 - Purchase - Commercial Mortgage and Other Loans | ||||
Related Party Transaction [Line Items] | ||||
Fair Value | 4,403 | 4,403 | ||
Book Value | 4,403 | 4,403 | ||
APIC, Net of Tax Increase/(Decrease) | $ 0 | 0 | ||
Realized investment gains (losses) | $ 0 |
Related Party Transactions Rela
Related Party Transactions Related Party Transactions (Debt Agreements) (Details) - Affiliated Entity - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 315,807 | $ 320,362 |
Prudential Insurance Loan Issued 8/13/2021 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 98,222 | 99,770 |
Interest Rates | 4.39% | |
Prudential Insurance Loan Issued 8/13/2021 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 29,466 | 29,931 |
Interest Rates | 4.39% | |
Prudential Insurance Loan Issued 8/13/2021 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 99,010 | 100,348 |
Interest Rates | 3.95% | |
Prudential Insurance Loan Issued 8/13/2021 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 39,604 | 40,139 |
Interest Rates | 3.95% | |
Prudential Insurance Loan Issued 8/13/2021 | ||
Related Party Transaction [Line Items] | ||
Short-term and Long-term debt | $ 49,505 | $ 50,174 |
Interest Rates | 3.95% |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | 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% | |||||
Commitments | Commercial mortgage loans | ||||||
Commitments and Contingent Liabilities [Line Items] | ||||||
Total outstanding mortgage loan commitments | 121 | 121 | $ 121 | |||
Allowance for credit losses | 0 | 0 | 0 | |||
Change in allowance for credit loss expense (reversal) | 0 | $ 0 | 0 | $ 0 | ||
Commitments | Investments | ||||||
Commitments and Contingent Liabilities [Line Items] | ||||||
Commitments to purchase investment (excluding commercial mortgage loans) | 586 | 586 | 753 | |||
Purchase Commitment | ||||||
Commitments and Contingent Liabilities [Line Items] | ||||||
Change in allowance for credit loss expense (reversal) | 0 | $ 0 | 0 | $ 0 | ||
Other Guarantees | ||||||
Commitments and Contingent Liabilities [Line Items] | ||||||
Accrued liabilities | $ 33 | $ 33 | $ 34 |